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): June 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 June 12, 2012, Dave & Buster’s, Inc. issued a press release announcing its first quarter 2012 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 June 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: June 14, 2012 | By: | /s/ Jay L. Tobin _ _ |
| Jay L. Tobin | ||
| Senior Vice President, General Counsel | ||
| and Secretary | ||
 |
News Release | EXHIBIT 99 |
|---|---|---|
For further information contact: Geralyn DeBusk Halliburton Investor Relations 972-458-8000 |
Dave & Buster’s, Inc. Reports Record Quarterly
Adjusted EBITDA of $39.7 Million
DALLAS—June 12, 2012—Dave & Buster's, Inc., a leading operator of high volume entertainment/dining complexes, today announced results for its first quarter ended April 29, 2012.
Total revenues increased 10% to $163.5 million in the first quarter of 2012, compared to $148.6 million in the first quarter of 2011. The year-over-year revenue increase was primarily driven by a $16.1 million increase in revenues from non-comparable stores. Revenues at our comparable stores were essentially flat compared to the first quarter of 2011. Across all stores, Food and Beverage revenues increased $4.9 million or 6.6% and Amusements and Other revenues increased $10 million or 13.4% compared to the first quarter of 2011.
Adjusted EBITDA increased 18.0% to $39.7 million in the first quarter of 2012 versus $33.6 million in the first quarter of fiscal 2011.
“We achieved record Adjusted EBITDA results, primarily fueled by the stores we opened in 2011 and early 2012,” said Steve King CEO of Dave & Buster's. “While the exceptionally mild winter across the country hurt our comparable store sales, our margin enhancing initiatives enabled us to deliver exceptional 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 first quarter results on Tuesday, June 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# 10015030). 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)
| ASSETS | April 29, 2012 | January 29, 2012 | ||||||
| (unaudited) | (audited) | |||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 58,860 | $ | 33,684 | ||||
| Other current assets | 38,463 | 41,310 | ||||||
| Total current assets | $ | 97,323 | $ | 74,994 | ||||
| Property and equipment, net | 313,720 | 323,342 | ||||||
| Intangible and other assets, net | 379,670 | 380,326 | ||||||
| Total assets | $ | 790,713 | $ | 778,662 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Total current liabilities | $ | 87,618 | $ | 86,643 | ||||
| Other long-term liabilities | 104,975 | 104,987 | ||||||
| Long-term debt, less current liabilities, net unamortized discount | 344,889 | 345,167 | ||||||
| Stockholders' equity | 253,231 | 241,865 | ||||||
| Total liabilities and stockholders' equity | $ | 790,713 | $ | 778,662 |
DAVE & BUSTER’S, INC.
Consolidated Statements of Operations
(dollars in thousands)
(unaudited)
| 13 Weeks Ended | 13 Weeks Ended | |||||||||||||||
| April 29, 2012 | May 1, 2011 | |||||||||||||||
| Food and beverage revenues | $ | 79,144 | 48.4 | % | $ | 74,262 | 50.0 | % | ||||||||
| Amusement and other revenues | 84,330 | 51.6 | % | 74,341 | 50.0 | % | ||||||||||
| Total revenues | 163,474 | 100.0 | % | 148,603 | 100.0 | % | ||||||||||
| Cost of products | 30,954 | 18.9 | % | 28,299 | 19.0 | % | ||||||||||
| Store operating expenses | 85,491 | 52.3 | % | 79,371 | 53.5 | % | ||||||||||
| General and administrative expenses | 9,017 | 5.5 | % | 8,811 | 5.9 | % | ||||||||||
| Depreciation and amortization | 14,795 | 9.1 | % | 13,070 | 8.8 | % | ||||||||||
| Pre-opening costs | 150 | 0.1 | % | 740 | 0.5 | % | ||||||||||
| Total operating expenses | 140,407 | 85.9 | % | 130,291 | 87.7 | % | ||||||||||
| Operating income | 23,067 | 14.1 | % | 18,312 | 12.3 | % | ||||||||||
| Interest expense, net | 8,342 | 5.1 | % | 8,243 | 5.5 | % | ||||||||||
| Income before income tax provision | 14,725 | 9.0 | % | 10,069 | 6.8 | % | ||||||||||
| Income tax provision | 3,741 | 2.3 | % | 3,351 | 2.3 | % | ||||||||||
| Net income | $ | 10,984 | 6.7 | % | $ | 6,718 | 4.5 | % | ||||||||
| Other information: | ||||||||||||||||
| Company-owned and operated stores open at end of period (1) | 59 | 57 | ||||||||||||||
The following table sets forth a reconciliation of net income to EBITDA and Adjusted EBITDA for the periods shown:
| 13 Weeks Ended | 13 Weeks Ended | |||||||
| April 29, 2012 | May 1, 2011 | |||||||
| Total net income | $ | 10,984 | $ | 6,718 | ||||
| Add back: Interest expense, net | 8,342 | 8,243 | ||||||
| Income tax provision | 3,741 | 3,351 | ||||||
| Depreciation and amortization | 14,795 | 13,070 | ||||||
| EBITDA | 37,862 | 31,382 | ||||||
| Add back: Loss on asset disposal | 336 | 428 | ||||||
| Share-based compensation | 292 | 360 | ||||||
| Currency transaction gain | (47 | ) | (195 | ) | ||||
| Pre-opening costs | 150 | 740 | ||||||
| Reimbursement of affiliate expenses | 201 | 65 | ||||||
| Deferred amusement revenue and ticket | ||||||||
| redemption liability adjustments | 779 | 618 | ||||||
| Transaction and other costs | 101 | 237 | ||||||
| Adjusted EBITDA (2) | $ | 39,674 | $ | 33,635 | ||||
NOTE
(1) The store count as of May 1, 2011, includes a store in Dallas, Texas, which was permanently closed on May 2, 2011.
(2) EBITDA, a non-GAAP measure, is defined as net income (loss) before income tax provision (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.