SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

Current Report Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934 

 

Date of Report (Date of earliest event reported): August 30, 2012 

 

DAVE & BUSTER’S, INC.

(Exact name of registrant as specified in its charter) 

 

Missouri

(State of

incorporation)

001-15007

(Commission File

Number)

43-1532756

(IRS Employer

Identification Number)

  

2481 Manana Drive

Dallas TX 75220

(Address of principal executive offices)

  

Registrant’s telephone number, including area code: (214) 357-9588

 

Check the appropriate box if the Form 8-K filing is intended to simultaneously satisfy the reporting obligation of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act

¨ Soliciting material pursuant to Rule 14a-12 of the Exchange Act

¨ Pre-commencement communications pursuant to Rule 14d-2(b) Exchange Act

¨ Pre-commencement communications pursuant to Rule 13e-4(c) Exchange Act 

 
 

Item 2.02. Results of Operations and Financial Condition.

 

The information contained in Item 2.02 of this Current Report on Form 8-K, including the Exhibit attached hereto, is being furnished and shall not deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. Furthermore, the information contained in Item 2.02 of this Current Report on Form 8-K shall not be deemed to be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended.

 

On August 30, 2012, Dave & Buster’s, Inc. issued a press release announcing its second quarter 2012 results. A copy of this Press Release is attached hereto as Exhibit 99.

 

Item 9.01. Financial Statements and Exhibits.

 

(d)   Exhibits.

 

99Press release dated August 30, 2012.

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  DAVE & BUSTER’S, INC.
     
Date: August 31, 2012 By: /s/ Jay L. Tobin  _                         _
    Jay L. Tobin
    Senior Vice President, General Counsel
    and Secretary

 

 

  

    EXHIBIT 99 
  News Release  
   

For further information contact:

Geralyn DeBusk

Halliburton Investor Relations

972-458-8000

 

 

Dave & Buster’s, Inc. Reports a 36% Adjusted EBITDA Increase for its

Second Quarter Ended July 29, 2012

 

DALLAS—August 30, 2012—Dave & Buster's, Inc., a leading operator of high volume entertainment/dining complexes, today announced results for its second quarter ended July 29, 2012.

 

Total revenues increased 15.0% to $147.9 million in the second quarter of 2012 compared to $128.7 million in the second quarter of 2011. The revenue increase was comprised of a 5.4% increase in comparable store sales along with a $12.6 million increase in revenues from non-comparable stores. Across all stores, Food and Beverage revenues increased 11.8% and Amusements and Other revenues increased 18.1%.

 

Adjusted EBITDA increased 36.0% to $26.7 million in the second quarter of 2012 from $19.7 million in the second quarter of 2011.

 

Total revenues for the 26-week period increased 12.3% to $311.4 million compared to $277.3 million for the 26-week period last year. The revenue increase was comprised of a 2.4% increase in comparable store sales along with a $28.7 million increase in revenues from non-comparable stores. This was partially offset by a $0.9 million revenue reduction related to the May 2, 2011 closure of a store in Dallas, Texas. Across all stores, Food and Beverage revenues increased 9.0% and Amusement and Other revenues increased 15.6%.

 

Adjusted EBITDA for the 26-week period increased 24.6% to $66.4 million from $53.3 million for the comparable period last year.

 

“We delivered an outstanding second quarter performance and attribute our success in driving higher sales and profitability to several factors,” said CEO Steve King. “Specifically, we introduced several new food and beverage items, which were well received by our guests, and featured our most significant new games launch ever in our television advertising, all of which positively impacted our revenues. We also benefited from strong contributions of stores opened in 2011 and 2012, further demonstrating the soundness of our real estate strategy and broad-based appeal of our concept. We are pleased with the momentum achieved through the first half of the year.”

 

Non-GAAP Financial Measures

A reconciliation of EBITDA and Adjusted EBITDA to net income, the most directly comparable financial measure presented in accordance with GAAP, is set forth in the attachment to this release.

 
 

 

The Company will hold a conference call to discuss second quarter results on Thursday, August 30, 2012, at 10:00 a.m. Central Time (11:00 a.m. Eastern Time). To participate in the conference call please dial (877) 317-6789 a few minutes before call start time and reference conference ID# 10017607. Canadian callers should dial (866) 605-3852; callers from all other international locations should dial 1 (412) 317-6789 to participate in the call. Additionally, a live and archived webcast of the conference call will be available on the Company's website, www.daveandbusters.com.

 

Founded in 1982 and headquartered in Dallas, Texas, Dave & Buster’s is the premier national owner and operator of 59 high-volume venues that offer interactive entertainment options for adults and families, such as skill/sports-oriented redemption games and technologically advanced video and simulation games, combined with a full menu of high quality food and beverages. Dave & Buster’s currently has stores in 25 states and Canada. For additional information on Dave & Buster’s, please visit www.daveandbusters.com.

 

The statements contained in this release that are not historical facts are forward-looking statements. These forward-looking statements involve risks and uncertainties and, consequently, could be affected by our level of indebtedness, general business and economic conditions, the impact of competition, the seasonality of the company’s business, adverse weather conditions, future commodity prices, guest and employee complaints and litigation, fuel and utility costs, labor costs and availability, changes in consumer and corporate spending, changes in demographic trends, changes in governmental regulations, unfavorable publicity, our ability to open new stores, and acts of God.

 
 

 

DAVE & BUSTER’S, INC.

Condensed Consolidated Balance Sheets

(in thousands)

 

ASSETS  July 29, 2012   January 29, 2012 
   (unaudited)   (audited) 
Current assets:        
           
Cash and cash equivalents  $54,725   $33,684 
           
Other current assets   37,011    41,310 
           
Total current assets  $91,736   $74,994 
           
Property and equipment, net   318,031    323,342 
           
Intangible and other assets, net   378,867    380,326 
           
Total assets  $788,634   $778,662 
           
           
LIABILITIES AND STOCKHOLDERS' EQUITY          
           
Total current liabilities  $87,270   $86,643 
           
Other long-term liabilities   102,752    104,987 
           
Long-term debt, less current liabilities, net unamortized discount   344,576    345,167 
           
Stockholders' equity   254,036    241,865 
           
Total liabilities and stockholders' equity  $788,634   $778,662 

 

 
 

DAVE & BUSTER’S, INC.

Consolidated Statements of Operations

(dollars in thousands)

(unaudited)

 

   13 Weeks Ended   13 Weeks Ended 
   July 29, 2012   July 31, 2011 
                 
Food and beverage revenues  $71,431    48.3%  $63,877    49.6%
Amusement and other revenues   76,510    51.7%   64,787    50.4%
Total revenues   147,941    100.0%   128,664    100.0%
                     
Cost of products   29,388    19.9%   25,745    20.0%
Store operating expenses   85,756    57.9%   76,242    59.3%
General and administrative expenses   8,840    6.0%   8,614    6.7%
Depreciation and amortization   15,032    10.1%   13,225    10.3%
Pre-opening costs   559    0.4%   1,431    1.1%
Total operating expenses   139,575    94.3%   125,257    97.4%
                     
Operating income   8,366    5.7%   3,407    2.6%
Interest expense, net   8,051    5.5%   8,213    6.3%
                     
Income (loss) before income tax benefit   315    0.2%   (4,806)   -3.7%
Income tax benefit   (372)   -0.3%   (1,688)   -1.3%
Net income (loss)  $687    0.5%  $(3,118)   -2.4%
                     
Other information:                    
Company-owned and operated stores open at end of period (1)   59         57      
                     
The following table sets forth a reconciliation of net income to EBITDA and Adjusted EBITDA for the periods shown: 

 

   13 Weeks Ended   13 Weeks Ended 
   July 29, 2012   July 31, 2011 
           
Total net income (loss)  $687   $(3,118)
Add back:  Interest expense, net   8,051    8,213 
Income tax benefit   (372)   (1,688)
Depreciation and amortization   15,032    13,225 
EBITDA   23,398    16,632 
Add back:  Loss on asset disposal   1,603    549 
Share-based compensation   212    262 
Currency transaction loss   51    38 
Pre-opening costs   559    1,431 
Reimbursement of affiliate expenses   173    175 
Deferred amusement revenue and ticket          
  redemption liability adjustments   637    350 
Transaction and other costs   101    214 
Adjusted EBITDA (2)  $26,734   $19,651 

 
 

 

DAVE & BUSTER’S, INC.

Consolidated Statements of Operations

(dollars in thousands)

(unaudited)

 

   26 Weeks Ended   26 Weeks Ended 
   July 29, 2012   July 31, 2011 
                 
Food and beverage revenues  $150,575    48.4%  $138,139    49.8%
Amusement and other revenues   160,840    51.6%   139,128    50.2%
Total revenues   311,415    100.0%   277,267    100.0%
                     
Cost of products   60,342    19.4%   54,044    19.5%
Store operating expenses   171,247    55.0%   155,613    56.1%
General and administrative expenses   17,857    5.7%   17,425    6.3%
Depreciation and amortization   29,827    9.6%   26,295    9.5%
Pre-opening costs   709    0.2%   2,171    0.8%
Total operating expenses   279,982    89.9%   255,548    92.2%
                     
Operating income   31,433    10.1%   21,719    7.8%
Interest expense, net   16,393    5.3%   16,456    5.9%
                     
Income before income tax provision   15,040    4.8%   5,263    1.9%
Income tax provision   3,369    1.1%   1,663    0.6%
Net income  $11,671    3.7%  $3,600    1.3%
                     
Other information:                    
Company-owned and operated stores open at end of period (1)   59         57      
                     
The following table sets forth a reconciliation of net income to EBITDA and Adjusted EBITDA for the periods shown:

 

   26 Weeks Ended   26 Weeks Ended 
   July 29, 2012   July 31, 2011 
           
Total net income  $11,671   $3,600 
Add back:  Interest expense, net   16,393    16,456 
Provision for income taxes   3,369    1,663 
Depreciation and amortization   29,827    26,295 
EBITDA   61,260    48,014 
Add back:  Loss on asset disposal   1,939    977 
Share-based compensation   504    622 
Currency transaction (loss) gain   4    (157)
Pre-opening costs   709    2,171 
Reimbursement of affiliate expenses   374    240 
Deferred amusement revenue and ticket          
  redemption liability adjustments   1,416    968 
Transaction and other costs   202    451 
Adjusted EBITDA (2)  $66,408   $53,286 
           

 
 


NOTE

 

(1) The store count excludes one franchise location in Canada.

 

(2) EBITDA, a non-GAAP measure, is defined as net income (loss) before income tax provision (benefit), interest expense (net) and depreciation and amortization. Adjusted EBITDA, also a non-GAAP measure, is defined as EBITDA plus (gain) loss on asset disposal, share-based compensation expense, pre-opening costs, reimbursement of affiliate expenses, and other non-cash or non-recurring charges. The company believes that EBITDA and Adjusted EBITDA (collectively, “EBITDA – Based Measures”) provide useful information to debt holders regarding the Company’s operating performance and its capacity to incur and service debt and fund capital expenditures. The Company believes that the EBITDA – Based Measures are used by many investors, analysts and rating agencies as a measure of performance. In addition, Adjusted EBITDA is approximately equal to “Consolidated EBITDA” as defined in our senior secured credit facility and indentures relating to the Company’s senior notes. Neither of the EBITDA – Based Measures is defined by GAAP and neither should be considered in isolation or as an alternative to other financial data prepared in accordance with GAAP or as an indicator of the Company’s operating performance. EBITDA and Adjusted EBITDA as defined in this release may differ from similarly titled measures presented by other companies.