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): December 15, 2009


DAVE & BUSTER’S, INC.
(Exact name of registrant as specified in its charter)


Missouri
 
001-15007
 
43-1532756
 (State of incorporation)
 
 (Commission File Number)
 
 (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 December 15, 2009, Dave & Buster’s, Inc. issued a press release announcing its third quarter fiscal 2009 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 December 15, 2009.


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: December 17, 2009     
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 Financial Results for its Fiscal 2009 Third Quarter

DALLAS—December 15, 2009—Dave & Buster's, Inc., a leading operator of high volume entertainment/dining complexes, today announced results for its third quarter ended November 1, 2009.
 
Total revenues decreased 2.1% to $117.2 million in the third quarter of 2009, compared to $119.7 million in the third quarter of 2008.  This revenue decline was comprised primarily of a 7.4% decrease in comparable store sales offset by a $5.9 million increase in revenues from non-comparable operations.  Total Food and Beverage revenues decreased 5.3%, while revenues from Amusements and Other increased 1.4%.
 
 
EBITDA (Modified) for the third quarter of 2009 of $10.2 million was less than prior year EBITDA (Modified) of $10.9 million by 6.9%.  Adjusted EBITDA, which excludes Pre-opening costs, expense reimbursements to affiliates and non-recurring charges, decreased 3.6% to $11.3 million versus $11.8 million in the third quarter of fiscal 2008.
 
 
Total revenues for the 39-week period decreased 2.8% to $387.1 million from $398.4 million for the comparable period last year.  This revenue reduction was comprised of an 8.5% decrease in comparable store sales partially offset by a $21.7 million increase in revenues from non-comparable operations.  Total Food and Beverage revenues decreased 5.8%, while revenues from Amusements and Other increased 0.5%.
 
EBITDA (Modified) for the 39-week period of $53.7 million was less than prior year EBITDA (Modified) of $57.8 million by 7.0%.  Adjusted EBITDA decreased 4.2% to $57.7 million, versus $60.2 million for the comparable period last year.

“We are encouraged that the key differentiator of the Dave & Buster's brand, our Amusements business, has remained relatively strong during this economic downturn,” said Steve King, Chief Executive Officer.  “This gives us confidence that as the economy recovers, we are well positioned to take advantage of renewed discretionary spending”

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 third quarter results on Tuesday, December 15, 2009, 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 # 43366078.  Additionally, a live and archived webcast of the conference call will be available on the Company's Web site, www.daveandbusters.com.

Celebrating over 27 years of operations, Dave & Buster's was founded in 1982 and is one of the country's premier entertainment/dining concepts.  We operate 55 locations and franchise one location in the United States and in Canada.  More information on the Company is available on the Company's Web site, 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, unfavorable publicity, our ability to open new complexes, acts of God, and governmental regulations.

 
DAVE & BUSTER’S, INC.
Condensed Consolidated Balance Sheets
(in thousands)

 
ASSETS
 
November 1, 2009
   
February 1, 2009
 
   
(unaudited)
   
(audited)
 
Current assets:
           
Cash and cash equivalents                                                                                   
  $ 6,440     $ 8,534  
Other current assets                                                                                   
    28,936       30,619  
Total current assets                                                                             
    35,376       39,153  
                 
Property and equipment, net                                                                                        
    291,878       296,805  
                 
Intangible and other assets, net                                                                                        
    143,381       144,978  
                 
Total assets                                                                             
  $ 470,635     $ 480,936  
                 
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
                 
Total current liabilities                                                                                        
  $ 63,282     $ 74,349  
                 
Other long-term liabilities                                                                                        
    82,360       85,314  
                 
Long-term debt, less current liabilities                                                                                        
    232,559       229,250  
                 
Stockholders’ equity                                                                                        
    92,434       92,023  
                 
Total liabilities and stockholders’ equity                                                                             
  $ 470,635     $ 480,936  
 
 
 

 
 
DAVE & BUSTER’S, INC.
Consolidated Statements of Operations
(dollars in thousands)
(unaudited)
 
   
13 Weeks Ended
November 1, 2009
   
13 Weeks Ended
November 2, 2008
 
                         
Food and beverage revenues
  $ 60,549       51.7 %   $ 63,910       53.4 %
Amusement and other revenues
    56,636       48.3 %     55,829       46.6 %
Total revenues
    117,185       100.0 %     119,739       100.0 %
                                 
Cost of products
    23,636       20.2 %     24,419       20.4 %
Store operating expenses
    75,842       64.7 %     76,856       64.2 %
General and administrative expenses
    7,202       6.2 %     7,693       6.4 %
Depreciation and amortization
    13,932       11.9 %     12,449       10.4 %
Pre-opening costs
    983       0.8 %     625       0.5 %
Total operating expenses
    121,595       103.8 %     122,042       101.9 %
                                 
Operating loss
    (4,410 )     (3.8 )%     (2,303 )     (1.9 )%
Interest expense, net
    5,598       4.8 %     6,996       5.8 %
                                 
Loss before provision for income taxes
    (10,008 )     (8.6 )%     (9,299 )     (7.7 )%
Income tax benefit
    (4,518 )     (3.9 )%     (3,573 )     (3.0 )%
Net loss
  $ (5,490 )     (4.7 )%   $ (5,726 )     (4.7 )%
                                 
Other information:
                               
Stores open at end of period (1)
    56               50          
 
The following table sets forth a reconciliation of net income (loss) to EBITDA (Modified) and Adjusted EBITDA for the periods shown:
 
 
Total net loss
  $ (5,490 )           $ (5,726 )        
 
Add back:  Income tax benefit
    (4,518 )             (3,573 )        
 
Interest expense, net
    5,598               6,996          
 
Depreciation and amortization
    13,932               12,449          
 
Loss on asset disposal
    414               437          
 
Gain on acquisition of limited partnership
    (18 )             -          
 
Share-based compensation
    261               255          
 
Currency transaction loss
    11               108          
 
EBITDA (Modified) (2)
    10,190               10,946          
 
Add back:  Pre-opening costs
    983               625          
 
Wellspring expense reimbursement
    188               188          
 
Severance
    (24 )             -          
 
Adjusted EBITDA (2)
  $ 11,337             $ 11,759          

 
 
 

 

 
DAVE & BUSTER’S, INC.
Consolidated Statements of Operations
(dollars in thousands)
(unaudited)
 
   
39 Weeks Ended
November 1, 2009
   
39 Weeks Ended
November 2, 2008
 
                         
Food and beverage revenues
  $ 198,140       51.2 %   $ 210,431       52.8 %
Amusement and other revenues
    188,998       48.8 %     188,009       47.2 %
Total revenues
    387,138       100.0 %     398,440       100.0 %
                                 
Cost of products
    76,797       19.8 %     78,316       19.7 %
Store operating expenses
    232,187       60.0 %     237,887       59.7 %
General and administrative expenses
    22,279       5.8 %     24,804       6.2 %
Depreciation and amortization
    39,833       10.3 %     36,786       9.2 %
Pre-opening costs
    3,181       0.8 %     1,867       0.5 %
Total operating expenses
    374,277       96.7 %     379,660       95.3 %
                                 
Operating income
    12,861       3.3 %     18,780       4.7 %
Interest expense, net
    16,782       4.3 %     18,953       4.7 %
                                 
Loss before provision for income taxes
    (3,921 )     (1.0 )%     (173 )     (0.0 )%
Income tax benefit
    (3,661 )     (0.9 )%     (427 )     (0.1 )%
Net income (loss)
  $ (260 )     (0.1 ) %   $ 254       0.1 %
                                 
Other information:
                               
Stores open at end of period (1)
    56               50          
 
The following table sets forth a reconciliation of net income (loss) to EBITDA (Modified) and Adjusted EBITDA for the periods shown:
 
 
Total net income (loss)
  $ (260 )           $ 254          
 
Add back:  Income tax benefit
    (3,661 )             (427 )        
 
Interest expense, net
    16,782               18,953          
 
Depreciation and amortization
    39,833               36,786          
 
Loss on asset disposal
    1,031               1,286          
 
Gain on acquisition of limited    partnership
    (357 )             -          
 
Share-based compensation
    475               806          
 
Currency transaction (gain) loss
    (124 )             108          
 
EBITDA (Modified) (2)
    53,719               57,766          
 
Add back: Pre-opening costs
    3,181               1,867          
 
Wellspring expense reimbursement
    563               563          
 
Severance
    194               -          
 
Adjusted EBITDA (2)
  $ 57,657             $ 60,196          
  
 
 

 
 
NOTE

(1) The number of stores open at November 1, 2009 includes our stores in Plymouth Meeting, Pennsylvania; Arlington, Texas; and Tulsa, Oklahoma, which opened on July 21, 2008, November 24, 2008 and January 12, 2009, respectively.  Also included are our stores in Richmond, Virginia, Indianapolis, Indiana, and Columbus, Ohio, which opened on April 20, 2009, June 15, 2009, and October 12, 2009, respectively, as well as a franchise location in Niagara Falls, Ontario, Canada, which opened on June 25, 2009.

(2) EBITDA (Modified), a non-GAAP measure, is defined as net income (loss) before income tax expense (benefit), interest expense (net), depreciation, amortization, loss on asset disposal, gain on acquisition of limited partnership and stock-based compensation expense.  Adjusted EBITDA, also a non-GAAP measure, is defined as EBITDA (Modified) plus pre-opening 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.