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 12, 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 April 12, 2012, Dave & Buster’s, Inc. issued a press release announcing its fourth quarter and fiscal year-end 2011 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 12, 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: April 16, 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. Achieves Record Setting

Fiscal Year 2011 Adjusted EBITDA of $98.4 million

 

DALLAS—April 12, 2012—Dave & Buster's, Inc., a leading operator of high volume entertainment/dining complexes, today announced results for its fiscal year and fourth quarter ended January 29, 2012.

 

Total revenues increased 6.3% to $144 million in the fourth quarter of 2011, compared to $135.5 million in the fourth quarter of 2010. The year-over-year revenue increase was driven by a $1 million increase in comparable store sales and a net $7.5 million increase in revenues from non-comparable stores and other revenue sources. Across all stores, Food and Beverage revenues increased $2.9 million or 4% and Amusements and Other revenues increased $5.6 million or 8.8% compared to the fourth quarter of 2010.

 

Adjusted EBITDA increased 7.1% to $29.9 million in the fourth quarter of 2011 versus $28.0 million in the fourth quarter of fiscal 2010.

 

Total revenues for the 52-week period increased 3.8% to $541.5 million from $521.5 million for the comparable period last year. This revenue increase was comprised of a 2.2% increase in comparable store sales, and a net $11.6 million increase in revenues from non-comparable stores and other revenue sources. Our positive revenue gains were partially offset by a $2.4 million revenue reduction related to the second quarter 2011 closure of a store in Dallas, Texas. Total Food and Beverage revenues increased $5.1 million or 1.9% and revenues from Amusements and Other increased $14.9 million or 5.9%.

 

Adjusted EBITDA for the 52-week period increased 14% to $98.4 million versus $86.3 million for the comparable period last year.

 

"We are extremely pleased with our performance in 2011" said Steve King, Chief Executive Officer. "A return to positive comparable store sales, diligent management of our costs and an outstanding group of new stores combined for our best Adjusted EBITDA year ever."

 

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 fourth quarter results on Thursday, April 12, 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 “The Dave & Buster’s Conference Call” (conference ID# 10011980). 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 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 owns and operates 59 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)

 

   January 29, 2012   January 30, 2011 
   (audited)   (audited) 
ASSETS        
Current assets:          
Cash and cash equivalents  $33,684   $34,407 
Other current assets   41,310    42,284 
Total current assets  $74,994   $76,691 
           
Property and equipment, net   323,342    304,819 
           
Intangible and other assets, net   380,326    383,032 
Total assets  $778,662   $764,542 
           
LIABILITIES AND STOCKHOLDERS' EQUITY          
Total current liabilities  $86,643   $81,877 
           
Other long-term liabilities   104,987    96,417 
           
Long-term debt, less current liabilities, net unamortized discount   345,167    346,418 
           
Stockholders' equity   241,865    239,830 
Total liabilities and stockholders' equity  $778,662   $764,542 

 

 
 

 

DAVE & BUSTER’S, INC.

Consolidated Statements of Operations

(dollars in thousands)

(unaudited)

 

   13 Weeks Ended   13 Weeks Ended 
   January 29, 2012   January 30, 2011 
                 
Food and beverage revenues  $74,900    52.0%  $72,012    53.2%
Amusement and other revenues   69,056    48.0%   63,446    46.8%
Total revenues   143,956    100.0%   135,458    100.0%
                     
Cost of products   29,043    20.2%   26,525    19.6%
Store operating expenses   77,984    54.2%   71,261    52.7%
General and administrative expenses   9,192    6.3%   8,161    6.0%
Depreciation and amortization   14,404    10.0%   12,906    9.5%
Pre-opening costs   1,428    1.0%   452    0.3%
Total operating expenses   132,051    91.7%   119,305    88.1%
                     
Operating income   11,905    8.3%   16,153    11.9%
Interest expense, net   7,963    5.5%   8,321    6.1%
                     
Income before income tax provision   3,942    2.8%   7,832    5.8%
Income tax provision   2,140    1.5%   3,331    2.5%
Net income  $1,802    1.3%  $4,501    3.3%
                     
Other information:                    
Company-owned and operated stores open at end of period (2)   58         57      

 

The following table sets forth a reconciliation of net income to EBITDA and Adjusted EBITDA for the periods

 

   13 Weeks Ended   13 Weeks Ended 
   January 29, 2012   January 30, 2011 
         
Total net income  $1,802   $4,501 
Add back: Interest expense, net   7,963    8,321 
Income tax benefit   2,140    3,331 
Depreciation and amortization   14,404    12,906 
EBITDA   26,309    29,059 
           
Add back: Loss (gain) on asset disposal   261    (3,326)
Share-based compensation   185    263 
Currency transaction loss (gain)   87    (54)
Pre-opening costs   1,428    452 
Reimbursement of affiliate expenses   133    204 
Deferred amusement revenue and ticket redemption liability adjustments   1,149    693 
Transaction and other costs   394    680 
Adjusted EBITDA (3)  $29,946   $27,971 

 

 
 

 

DAVE & BUSTER’S, INC.

Consolidated Statements of Operations

(dollars in thousands)

(audited)

 

   52 Weeks Ended   52 Weeks Ended 
   January 29, 2012 (1)   January 30, 2011 (1) 
                 
Food and beverage revenues  $272,606    50.3%  $267,514    51.3%
Amusement and other revenues   268,939    49.7%   254,025    48.7%
Total revenues   541,545    100.0%   521,539    100.0%
                     
Cost of products   107,168    19.8%   103,981    19.9%
Store operating expenses   306,868    56.7%   300,498    57.7%
General and administrative expenses   34,896    6.4%   42,734    8.2%
Depreciation and amortization   54,277    10.0%   50,018    9.6%
Pre-opening costs   4,186    0.8%   2,289    0.4%
Total operating expenses   507,395    93.7%   499,520    95.8%
                     
Operating income   34,150    6.3%   22,019    4.2%
Interest expense, net   32,516    6.0%   32,462    6.2%
                     
Income (loss) before income tax provision (benefit)   1,634    0.3%   (10,443)   -2.0%
Income tax provision (benefit)   679    0.1%   (3,148)   -0.6%
Net income (loss)  $955    0.2%  $(7,295)   -1.4%
                     
Other information:                    
Company-owned and operated stores open at end of period (2)   58         57      

 

The following table sets forth a reconciliation of net income to EBITDA and Adjusted EBITDA for the periods

 

   52 Weeks Ended   52 Weeks Ended 
   January 29, 2012 (1)   January 30, 2011 (1) 
         
Total net income (loss)  $955   $(7,295)
Add back: Interest expense, net   32,516    32,462 
Provision (benefit) for income taxes   679    (3,148)
Depreciation and amortization   54,277    50,018 
EBITDA   88,427    72,037 
           
Add back: Loss (gain) on asset disposal   1,279    (2,397)
Share-based compensation   1,038    2,491 
Currency transaction loss (gain)   103    (143)
Pre-opening costs   4,186    2,289 
Reimbursement of affiliate expenses   854    626 
Deferred amusement revenue and ticket redemption liability adjustments   1,539    1,276 
Transaction and other costs   946    10,101 
Adjusted EBITDA (3)  $98,372   $86,280 

 

 
 

 

NOTE

 

(1) As previously reported by the Company, on June 1, 2010, affiliates of Oak Hill Capital Partners acquired all of the outstanding capital stock of our direct parent, Dave & Buster’s Holdings, Inc. Accounting principles generally accepted in the United States require operating results for the Company prior to the June 1, 2010 acquisition to be presented as Predecessor’s results in the historical financial statements. Operating results for the Company subsequent to the June 1, 2010 acquisition are presented or referred to as Successor’s results in our historical financial statements. References to the 52 week period ended January 30, 2011 included in this release, relate to the 244 day period ended January 30, 2011 in the Successor period and the 120 day period ended May 31, 2010 in the Predecessor period. References to the 52 week periods ended January 29, 2012 included in this release, relate to the Successor periods. The results for the Successor periods include the impacts of purchase accounting.

 

(2) The store counts as of the end of both fiscal periods include our location in Nashville, Tennessee, which closed as a result of damages sustained in a flood on May 2, 2010. The store reopened on November 28, 2011. The store count as of January 30, 2011, includes a store in Dallas, Texas, which was permanently closed on May 2, 2011.

 

(3) 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 (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.