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Unassociated Document
 

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): April 24, 2008
 
 
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:

o
Written communications pursuant to Rule 425 under the Securities Act
o
Soliciting material pursuant to Rule 14a-12 of the Exchange Act
o
Pre-commencement communications pursuant to Rule 14d-2(b) Exchange Act
o
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 April 24, 2008, Dave & Buster’s, Inc. issued a press release announcing its fourth quarter and fiscal year-end 2007 results. A copy of this Press Release is attached hereto as Exhibit 99.

Item 9.01. Financial Statements and Exhibits.

(d)
Exhibits.

 
99
Press release dated April 24, 2008.
 

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: April 25, 2008  By:   /s/ Jay L. Tobin 
 
Jay L. Tobin
 
Senior Vice President, General Counsel and Secretary

 
 
Unassociated Document
 
EXHIBIT 99
 
 
News Release
 
 
 
For further information contact:
Jeff Elliott or Geralyn DeBusk
Halliburton Investor Relations
972-458-8000

Dave & Buster’s, Inc. Reports
Fourth Quarter and Fiscal Year 2007 Results

DALLAS—April 24, 2008—Dave & Buster's, Inc., a leading operator of high volume entertainment/dining complexes, today announced results for its fourth quarter and fiscal year ended February 3, 2008.
 
Highlights for the 13 week fourth quarter of 2007 compared to the 14 week fourth quarter of 2006 were as follows:
 
·  
Total revenue increased 1.0% to $145.4 million from $143.9 million in the fourth quarter of 2006.
 
·  
Same store sales increased 4.0% over the comparable 13 week period in 2006.
 
·  
Operating income increased to $13.1 million from $5.3 million in the fourth quarter of 2006.
 
Highlights for the 52 week fiscal year 2007 compared to the 53 week fiscal year 2006 were as follows:
 
·  
Total revenue increased 5.1% to $536.3 million from $510.2 million.
 
·  
Same store sales increased 4.1% compared to a 52 week 2006 period.
 
·  
Operating income increased to $21.1 million from $8.0 million.
 
“We are thrilled that we were able to sustain over 4% same store sales growth throughout Fiscal 2007,” said Steve King, Chief Executive Officer. “Our unique combination of food and games, supported by a strong national cable value message in the Eat and Play Combo, provided our guests an opportunity to escape from their everyday routine for a few hours and have fun at Dave & Buster’s.”
 
Review of Operating Results
 
Total reported revenues increased 1.0% to $145.4 million in the fourth quarter of 2007, compared to $143.9 million in the fourth quarter of 2006. Total revenue growth based on the comparable 13 week period in 2006 increased 7.3%, due primarily to a 4.0% increase in comparable store sales. Reported Food and Beverage revenues increased 4.7% while revenues from Amusements and Other increased 10.9%, respectively on a comparable 13 week basis.
 
Reported revenues for the 52 week fiscal year ended February 3, 2008 increased to $536.3 million from $510.2 million in Fiscal 2006. Total revenue growth based on the52 week 2006 increased 6.9%, due primarily to a comparable stores sales increase of 4.1%. Reported Food and Beverage revenues increased 3.1%, while revenues from Amusements and Other increased 7.6% (increases of 4.9% and 9.4% respectively on a comparable 52 week basis).
 
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EBITDA (Modified) for the fourth quarter of 2007 increased to $27.1 million from $19.6 in the fourth quarter of 2006. Adjusted EBITDA, which excludes non-recurring charges, increased 2.2% to $27.3 million versus $26.7 million in the fourth quarter of 2006.
 
For the fiscal year 2007, EBITDA (Modified) of $75.9 million increased by $19.2 million versus $56.7 million in fiscal year 2006. Adjusted EBITDA improved 14.8% to $81.0 million in fiscal 2007 versus $70.5 million in fiscal 2006.

“Our outstanding EBITDA performance in 2007 was fueled by strong sales and our operating team’s ability to implement key improvement initiatives throughout the year,” said Mr. King, “We are very pleased with the results of this year and believe our momentum is sustainable into 2008”.

Non-GAAP Financial Measures
A reconciliation of EBITDA (Modified) 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 fourth quarter and fiscal year 2007 results on Thursday, April 24, 2008, at 10:00 a.m. Central Time (11:00 a.m. Eastern Time). To participate in the conference call, please dial (866) 765-2661 a few minutes prior to the start time and reference code # 43388625. Additionally, a live and archived webcast of the conference call will be available on the Company's Web site, www.daveandbusters.com.

Celebrating over 25 years of operations, Dave & Buster's was founded in 1982 and is one of the country's premier entertainment/dining concepts with 49 locations throughout the United States and in Canada. More information on the Company is available on the Company's website, 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 spending, changes in demographic trends, unfavorable publicity, our ability to open new complexes, acts of God, and governmental regulations.
 
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DAVE & BUSTER’S, INC.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)


ASSETS
  
February 3, 2008
  
February 4, 2007
  
           
Current assets:
              
Cash and cash equivalents 
  
$
19,046
  
$
10,372
  
Other current assets 
    
31,494
    
28,338
  
Total current assets
    
50,540
    
38,710
  
               
Property and equipment, net 
    
296,974
    
316,840
  
               
Intangible and other assets, net 
    
148,689
    
151,263
  
               
Total assets
  
$
496,203
  
$
506,813
  
               
               
LIABILITIES AND STOCKHOLDERS’ EQUITY
              
               
Total current liabilities 
  
$
81,206
  
$
70,140
  
               
Other long-term liabilities 
    
81,866
    
86,593
  
               
Long-term debt, less current liabilities 
    
242,375
    
253,375
  
               
Stockholders’ equity 
    
90,756
    
96,705
  
               
Total liabilities and stockholders’ equity 
  
$
496,203
  
$
506,813
  

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DAVE & BUSTER’S, INC.
Consolidated Statements of Operations
(dollars in thousands)
(unaudited)

   
13 Weeks Ended
February 3, 2008
  
14 Weeks Ended
February 4, 2007
  
                   
Food and beverage revenues 
  
$
81,844
    
56.3
%
$
83,013
    
57.7
%
Amusement and other revenues 
    
63,580
    
43.7
%
  
60,924
    
42.3
%
Total revenues 
    
145,424
    
100.0
%
  
143,937
    
100.0
%
                           
Cost of products 
    
28,863
    
19.9
%
  
28,268
    
19.6
%
Store operating expenses 
    
81,215
    
55.8
%
  
84,980
    
59.1
%
General and administrative expenses 
    
8,775
    
6.0
%
  
11,189
    
7.8
%
Depreciation and amortization 
    
13,543
    
9.3
%
  
13,724
    
9.5
%
Startup costs  
    
(31
)
  
0.0
%
  
429
    
0.3
%
Total operating expenses 
    
132,365
    
91.0
%
  
138,590
    
96.3
%
                           
Operating income (loss) 
    
13,059
    
9.0
%
  
5,347
    
3.7
%
Interest expense, net 
    
9,618
    
6.6
%
  
8,095
    
5.6
%
                           
Income (loss) before provision for income taxes 
    
3,441
    
2.4
%
  
(2,748
)
  
(1.9
)%
Provision (benefit) for income taxes 
    
(515
)
  
(0.3
)%
  
(1,805
)
  
(1.2
)%
Net income (loss) 
  
$
3,956
    
2.7
%
$
(943
)
  
(0.7
)%
                           
Other information:
                          
Company operated stores open at end of period 
    
49
          
48
        

The following table sets forth a reconciliation of net loss to EBITDA (Modified) and Adjusted EBIDTA for the periods shown:

Total net income (loss)
  
$
3,956
    
 
  
$
(943
)
  
 
  
Add back: Benefit for income taxes
    
(515
)
        
(1,805
)
      
Interest expense, net 
    
9,618
          
8,095
        
Depreciation and amortization
    
13,543
          
13,724
        
Loss on asset disposal
    
186
          
153
        
Stock-based compensation
   
344
          
438
        
EBITDA (Modified) (1)
    
27,132
          
19,662
        
Add back: Startup costs
    
(31
)
        
429
        
Wellspring expense reimbursement
    
187
          
188
        
Non-recurring Expenses:
                          
Amusement revenue deferral
    
-
          
2,367
        
Change in insurance estimate
                         
for prior years policy periods
    
-
          
3,100
        
Transaction costs
    
-
          
57
        
Change in control expense
    
-
          
898
        
Adjusted EBITDA (1)
  
$
27,288
        
$
26,701
        
 
 
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DAVE & BUSTER’S, INC.
Consolidated Statements of Operations
(dollars in thousands)
(unaudited)

   
52 Weeks Ended
February 3, 2008
(Successor)
  
53 Weeks Ended
February 4, 2007
(Combined)
  
                   
Food and beverage revenues 
  
$
293,097
    
54.7
%
$
284,178
    
55.7
%
Amusement and other revenues 
    
243,175
    
45.3
%
  
226,023
    
44.3
%
Total revenues 
    
536,272
    
100.0
%
  
510,201
    
100.0
%
                           
Cost of products 
    
106,745
    
19.9
%
  
103,927
    
20.4
%
Store operating expenses 
    
316,547
    
59.0
%
  
306,854
    
60.2
%
General and administrative expenses 
    
38,999
    
7.3
%
  
38,884
    
7.6
%
Depreciation and amortization 
    
51,898
    
9.7
%
  
48,220
    
9.4
%
Startup costs  
    
1,002
    
0.2
%
  
4,350
    
0.8
%
Total operating expenses 
    
515,191
    
96.1
%
  
502,235
    
98.4
%
                           
Operating income 
    
21,081
    
3.9
%
  
7,966
    
1.6
%
Interest expense, net 
    
31,183
    
5.8
%
  
27,713
    
5.4
%
                           
Loss before provision for income taxes 
    
(10,102
)
  
(1.9
)%
  
(19,747
)
  
(3.8
)%
Benefit for income taxes 
    
(1,261
)
  
(0.2
)%
  
(8,170
)
  
(1.5
)%
Net loss 
  
$
(8,841
)
  
(1.7
)%
$
(11,577
)
  
(2.3
)%
                           
Other information:
                          
Company operated stores open at end of period 
    
49
          
48
        

The following table sets forth a reconciliation of net loss to EBITDA (Modified) and Adjusted EBIDTA for the periods shown:

Total net loss
  
$
(8,841
)
  
 
  
$
(11,577
)
  
 
  
Add back: Benefit for income taxes
    
(1,261
)
        
(8,170
)
      
Interest expense, net 
    
31,183
          
27,713
        
Depreciation and amortization
    
51,898
          
48,220
        
Loss on asset disposal
    
1,369
          
12
        
Stock-based compensation
   
1,514
          
499
        
EBITDA (Modified) (1)
    
75,862
          
56,697
        
Add back: Startup costs
    
1,002
          
4,350
        
Wellspring expense reimbursement
    
750
          
679
        
Non-recurring Expenses:
                          
Amusement revenue deferral
    
-
          
2,367
        
Change in insurance estimate
                         
for prior years policy periods
    
-
          
3,100
        
Transaction costs
    
-
          
1,118
        
Severance / Change in Control
   
3,337
          
2,175
        
Adjusted EBITDA (1)
  
$
80,951
        
$
70,486
        

 
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NOTE

(1) EBITDA (Modified), a non-GAAP measure, is defined as net income (loss) before income tax expense (benefit), interest expense (net), depreciation, amortization, loss (gain) on asset disposal and stock-based compensation expense. Adjusted EBITDA, also a non-GAAP measure, is defined as EBITDA (Modified) plus startup costs, Wellspring expense reimbursement, non-cash and non-recurring charges. The company believes that EBITDA (Modified) 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 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 (Modified) and Adjusted EBITDA as defined in this release may differ from similarly titled measures presented by other companies.


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