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 14, 2010

 
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 December 14, 2010, Dave & Buster’s, Inc. issued a press release announcing its third quarter 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 14, 2010.



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 20, 2010
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 2010 Third Quarter
 
DALLAS—December 14 2010—Dave & Buster's, Inc., a leading operator of high volume entertainment/dining complexes, today announced results for its third quarter ended October 31, 2010.
 
Total revenues decreased 0.5% to $116.6 million in the third quarter of 2010, compared to $117.2 million in the third quarter of 2009. The year-over-year revenue decline was driven by a 1.3% decline in comparable store sales and the loss of $2.3 million in revenues associated with the flood-related closure of our store in Nashville, Tennessee. These revenue declines were partially offset by a $3.1 million increase in revenues from non-comparable stores and other revenue sources. Total Food and Beverage revenues decreased 1.6%, while revenues from Amusements and Other decreased 0.6%.
 
Adjusted EBITDA increased 14.6% to $13.1 million versus $11.4 million in the third quarter of fiscal 2009.
 
Total revenues for the 39-week period decreased 0.3% to $386.1 million from $387.1 million for the comparable period last year. This revenue reduction was comprised of a 3.0% decline in comparable store sales and the loss of $4.7 million in revenues associated with the flood-related closure of the Company’s store in Nashville, Tennessee. These revenue declines were partially offset by an $14.6 million increase in revenues from non-comparable stores and other revenue sources. Total Food and Beverage revenues decreased 1.3%, while revenues from Amusements and Other increased 0.8%.
 
Adjusted EBITDA for the 39-week period increased 0.1% to $58.3 million versus $58.2 million for the comparable period last year. The Adjusted EBITDA for the quarter and year-to-date was not adversely affected by the closure of our Nashville store as the result of coverage under our business interruption insurance policy.
 
"We have seen a strengthening in both our walk-in and special events business, and the improved profitability for the third quarter reflects this trend.” said Steve King, Chief Executive Officer. “We're also encouraged by early fourth quarter results.”
 
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 third quarter results on Tuesday, December 14, 2010, 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 conference ID# 30468102. 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 57 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 24 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
 
October 31, 2010
   
January 31, 2010
 
   
(unaudited)
   
(audited)
 
Current assets:
           
Cash and cash equivalents
  $ 18,886     $ 16,682  
Other current assets
    38,965       30,104  
Total current assets
  $ 57,851     $ 46,786  
Property and equipment, net
    306,072       294,151  
Intangible and other assets, net
    378,860       142,703  
Total assets
  $ 742,783     $ 483,640  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY
               
                 
Total current liabilities
  $ 73,064     $ 74,805  
Other long-term liabilities
    88,370       89,775  
Long-term debt, less current liabilities, net unamortized discount
    346,355       226,414  
Stockholders' equity
    234,994       92,646  
Total liabilities and stockholders' equity
  $ 742,783     $ 483,640  
 
 
 

 
 
DAVE & BUSTER’S, INC.
Consolidated Statements of Operations
(dollars in thousands)
(unaudited)
 
   
13 Weeks Ended
   
13 Weeks Ended
 
   
October 31, 2010
   
November 1, 2009
 
Food and beverage revenues
  $ 59,594       51.1     $ 60,549       51.7  
Amusement and other revenues
    56,996       48.9       56,636       48.3  
Total revenues
    116,590       100.0       117,185       100.0  
                                 
Cost of products
    23,378       20.1       23,636       20.2  
Store operating expenses
    73,663       63.1       75,842       64.7  
General and administrative expenses
    8,379       7.2       7,202       6.2  
Depreciation and amortization
    11,896       10.2       13,932       11.9  
Pre-opening costs
    371       0.3       983       0.8  
Total operating expenses
    117,687       100.9       121,595       103.8  
                                 
Operating income (loss)
    (1,097 )     -0.9       (4,410 )     -3.8  
Interest expense, net
    8,388       7.2       5,598       4.8  
                                 
Income (loss) before provision for income taxes
    (9,485 )     -8.1       (10,008 )     -8.6  
Income tax provision (benefit)
    (3,257 )     -2.8       (4,518 )     -3.9  
Net income (loss)
  $ (6,228 )     -5.3     $ (5,490 )     -4.7  
                                 
Other information:
                               
Stores open at end of period (1)
    58               56          
 
The following table sets forth a reconciliation of net income (loss) to EBITDA and Adjusted EBITDA for the periods shown:
 
Total net income
  $ (6,228 )   $ (5,490 )
Add back: Provision for income taxes     (3,257 )     (4,518 )
Interest expense, net
    8,388       5,598  
Depreciation and amortization
    11,896       13,932  
EBITDA
    10,799       9,522  
                 
Add back:
Loss on asset disposal
    357       414  
 
Gain on Acquisition of limited partnership
    -       (18  
 
Share-based compensation
    382       261  
 
Currency translation (gain) loss
    (55 )     11  
 
Pre-opening costs.
    370       983  
 
Affiliate expense reimbursement
    65       188  
 
Severance
    967       (24 )
 
Amusement revenue deferral and
               
 
redemption liability adjustments
    155       104  
 
Transaction costs….
    74       -  
Adjusted EBITDA (2)
  $ 13,114     $ 11,441  
 
 
 

 
 
DAVE & BUSTER’S, INC.
Consolidated Statements of Operations
(dollars in thousands)
(unaudited)
 
   
39 Weeks Ended
   
39 Weeks Ended
 
   
October 31, 2010
   
November 1, 2009
 
Food and beverage revenues
  $ 195,502       50.6     $ 198,140       51.2  
Amusement and other revenues
    190,579       49.4       188,998       48.8  
Total revenues
    386,081       100.0       387,138       100.0  
                                 
Cost of products
    77,456       20.1       76,797       19.8  
Store operating expenses
    229,237       59.4       232,187       60.0  
General and administrative expenses
    34,573       9.0       22,279       5.8  
Depreciation and amortization
    37,112       9.6       39,833       10.3  
Pre-opening costs
    1,837       0.4       3,181       0.8  
Total operating expenses
    380,215       98.5       374,277       96.7  
                                 
Operating income (loss)
    5,866       1.5       12,861       3.3  
Interest expense, net
    24,141       6.2       16,782       4.3  
                                 
Income (loss) before provision for income taxes
    (18,275 )     -4.7       (3,921 )     -1.0  
Income tax provision (benefit)
    (6,479       -1.6       (3,661 )     -0.9  
Net income (loss)
  $ (11,796 )     -3.1     $ (260 )     -0.1  
                                 
Other information:
                               
Stores open at end of period (1)
    58               56          
 
The following table sets forth a reconciliation of net income (loss) to EBITDA and Adjusted EBITDA for the periods shown:
 
Total net income
  $ (11,796 )   $ (260 )
Add back:
Provision for income taxes
    (6,479 )     (3,661 )
 
Interest expense, net
    24,141       16,782  
 
Depreciation and amortization
    37,112       39,833  
EBITDA
    42,978       52,694  
                 
Add back:
Loss on asset disposal
    930       1,031  
 
Gain on Acquisition of limited partnership
    -       (357 )
 
Share-based compensation
    2,228       475  
 
Currency translation (gain) loss
    (89 )     (124 )
 
Pre-opening costs
    1,836       3,181  
 
Affiliate expense reimbursement
    422       563  
 
Severance
    967       194  
 
Amusement revenue deferral and
               
 
redemption liability adjustments
    583       587  
 
Transaction costs.
    8,454       -  
Adjusted EBITDA (2)
  $ 58,309     $ 58,244  
 

 
NOTE
 
(1) The number of stores open at October 31, 2010 includes our stores in Roseville, California and Wauwatosa, Wisconsin which opened on May 3, 2010 and March 1, 2010, respectively. Also included in the store count is one franchise location in Canada and our location in Nashville, Tennessee, which temporarily closed on May 2, 2010 due to flooding. The Nashville location remains closed as of October 31, 2010.
 
(2) EBITDA, a non-GAAP measure, is defined as net income (loss) before income tax expense (benefit), interest expense (net) and depreciation and amortization. Adjusted EBITDA, also a non-GAAP measure, is defined as EBITDA plus share-based compensation expense, pre-opening costs, Affiliate expense reimbursement, loss on asset disposal 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 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.