Dave & Buster’s Provides Business Update Through First Nine Weeks of Fiscal Fourth Quarter and Offers Fourth Quarter Revenue Outlook
As expected, the Company’s fourth quarter financial results have continued to be negatively affected by the COVID-19 pandemic. The Company began the fourth quarter with 104 open stores, or approximately 75 percent of its total store base. Due to renewed operating restrictions imposed by local jurisdictions during November and December in response to the COVID-19 resurgence, the Company had 89 stores open as of
Key highlights through the first nine weeks of the fourth quarter (ending
- Preliminary revenue of
$69.4 million, reflecting a 75% decline in comparable store sales
- Preliminary EBITDA loss of
- Preliminary weekly cash burn rate of
- As of
January 3, 2021, the Company had approximately $12 millionin cash and equivalents and $277 millionof availability under its revolving credit agreement, net of a $150 millionminimum liquidity covenant and $10 millionin letters of credit.
Chief Executive Officer
The Company currently expects more than 100 stores to be open by mid-January, continuing through the end of the fourth quarter, all operating under various limitations, and for its 27 stores in
Based upon the above preliminary results through the first nine weeks of the fourth quarter, expectations for additional store openings during January, and historical seasonal patterns, the Company currently expects fourth quarter revenues to be in the range of
Chief Executive Officer
The Company expects to report final fourth quarter and fiscal year 2020 financial results in early
About Dave & Buster’s
Founded in 1982 and headquartered in
The Company cautions that this release contains forward-looking statements, including, without limitation, statements relating to the impact on our business and operations of the global spread of the novel coronavirus outbreak. These forward-looking statements involve risks and uncertainties and, consequently, could be affected by the uncertain and unprecedented impact of the coronavirus on our business and operations and the related impact on our liquidity needs; our ability to satisfy covenant requirements under our revolving credit facility; the duration of government-mandated and voluntary shutdowns; the speed with which our stores safely can be reopened and the level of customer demand following reopening; the economic impact of the coronavirus and related disruptions on the communities we serve; our overall level of indebtedness; general business and economic conditions, including as a result of the coronavirus; 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, including as a result of the coronavirus; changes in demographic trends; changes in governmental regulations; unfavorable publicity, our ability to open new stores, and acts of God. Accordingly, actual results may differ materially from the forward-looking statements, and the Company therefore cautions you against relying on such forward-looking statements.
To supplement its consolidated financial statements, which are prepared and presented in accordance with GAAP, the Company occasionally uses the following non-GAAP financial measures: EBITDA, EBITDA margin, Adjusted EBITDA, Adjusted EBITDA margin, Store operating income before depreciation and amortization, and store operating income before depreciation and amortization margin (collectively the "non-GAAP financial measures"). The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. The Company uses these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. The Company believes that they provide useful information about operating results, enhance the overall understanding of our operating performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making. The non-GAAP measures used by the Company in this press release may be different from the measures used by other companies.
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Dave & Buster’s
Source: Dave & Buster's Entertainment, Inc.