Dave & Buster's, Inc. Reports Fourth Quarter and Fiscal 2004 Results.DALLAS Dallas, city (1990 pop. 1,006,877), seat of Dallas co., N Tex., on the Trinity River near the junction of its three forks; inc. 1871. The second largest Texas city, after Houston, and the eighth largest U.S. -- Dave & Buster's, Inc. (NYSE NYSE See: New York Stock Exchange :DAB (Digital Audio Broadcasting) The digital radio standard in most countries except for the U.S., which uses iBiquity's HD Radio, and Japan, which uses Terrestrial Integrated Services Digital Broadcasting (ISDB-T). ), a leading operator of upscale restaurant/entertainment complexes, today announced its results for the fourth quarter and fiscal year ended January January: see month. 30, 2005. Total revenue for the quarter increased 21.4 percent, or $21.4 million, to $121.4 million from $100.0 million in the prior year's comparable quarter. Food and beverage F&B is a common abbreviation in the United States and Commonwealth countries, including Hong Kong. F&B is typically the widely accepted abbreviation for "Food and Beverage," which is the sector/industry that specializes in the conceptualization, the making of, and delivery of foods. revenue increased 26.0 percent and amusement Amusement is the state of experiencing humorous and usually entertaining events or situations, and is associated with enjoyment, happiness, laughter and pleasure. Amusement may also be experienced through the recollection of events which have given rise to amusement in the past. and other revenue increased 15.9 percent. Revenue from comparable stores decreased 1.6 percent over last year's fourth quarter. As previously announced, we believe the major snowstorms in January 2005 reduced revenues by approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $2.0 million. We estimate that the comparable store revenue impact was approximately 1.3 percentage points for the quarter. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the period increased 11.7 percent to $13.3 million compared to $11.9 million last year. Net income for the quarter rose 2.8 percent to $7.2 million, or $0.46 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to $7.0 million, or $0.46 per diluted share, in the prior year's fourth quarter. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become increased 13.9 percent to $23.0 million from $20.2 million last year. Special event revenue, on a comparable store basis, was 23.4 percent of total revenue compared to 22.2 percent of total revenue last year. We estimate the impact of the severe weather in the fourth quarter was approximately $0.05 per diluted share. The earnings for the quarter were also impacted by approximately $0.02 per share related to higher than anticipated costs of completing the requirements of Sarbanes-Oxley testing and compliance. Overall, for the year, the company incurred costs related to Sarbanes-Oxley compliance of approximately $1 million. The number of diluted shares outstanding increased 3.9 percent to 16.562 million, for the fourth quarter compared to 15.944 million last year. For the fiscal year ended January 30, 2005, total revenue was $390.3 million compared to $362.8 million last year, a 7.6 percent increase. Food and beverage revenue increased 9.3 percent and amusement and other revenue increased 5.6 percent for the fiscal year. Revenue from comparable stores for the year was essentially flat. Operating income improved 8.2 percent to $25.4 million compared to $23.5 million in the prior year. Net income was $12.9 million, or $0.87 per diluted share, compared to $10.9 million, or $0.79 per diluted share, in the prior year. EBITDA increased 6.1 percent to $59.6 million from $56.2 million last year. Special event revenue, on a comparable store basis, was 16.2 percent of total revenue for the fiscal year compared to 15.3 percent of total revenue last year. As previously announced, the financial statements for periods prior to the fourth quarter of 2004 have been restated to reflect changes in the company's lease accounting for landlord allowances and rent holidays related to the construction period for our complexes. The impact of the lease accounting adjustments on the fiscal year results was $0.01 per diluted share. The number of diluted shares outstanding increased 12.9 percent to 16.540 million, for the 52 weeks compared to 14.646 million last year. Non-GAAP Financial Measures A reconciliation of EBITDA to net income, the most directly comparable financial measure presented in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). , is set forth in the attachment See attach a file. to this release. "We continue to see improvement in the profitability of the company," stated Buster Corley Corley (or Corley Ash) is a village and civil parish in the North Warwickshire district of Warwickshire, England. It is located about five miles north west of Coventry and is adjacent to Fillongley. , the company's CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "Our D&B store management teams continue to improve their operating contributions and we are making good progress with our newly acquired Jillian's Jillian's is a restaurant and arcade chain with about 20 locations in the United States. Jillian's is currently owned and operated by JCB Entertainment Corporation, a subsidiary of Dave & Buster's. Its slogan is "Eat, Drink, Play". stores in their revitalization re·vi·tal·ize tr.v. re·vi·tal·ized, re·vi·tal·iz·ing, re·vi·tal·iz·es To impart new life or vigor to: plans to revitalize inner-city neighborhoods; tried to revitalize a flagging economy. ." "We have signed the lease for our third Dave & Buster's opening for 2005. The store will open in Buffalo, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of late in the second half of the year," said Dave Corriveau, the company's President. "This location, along with our Omaha, Nebraska “Omaha” redirects here. For other uses, see Omaha (disambiguation). Omaha is the largest city in the State of Nebraska, United States. It is the county seat of Douglas County.GR6 As of the 2000 census, the city had a population of 390,007. location will be a smaller version of our intermediate size store. The stores will have approximately 60 percent of the square footage, construction cost and revenue of our larger mega-size store. We expect to see returns on our investment similar to those of a typical store since we anticipate lower fixed operating costs operating costs npl → gastos mpl operacionales for this size store. We are also planning to open in Kansas City, Kansas Kansas City, Kansas (KCK) is the third largest city in the U.S. state of Kansas and the county seat of Wyandotte County (WyCo); it is part of the "Unified Government"[2] which also includes the cities of Bonner Springs and Edwardsville. in the second half of the year." "We were successful in continuing the quarterly profit improvement trend even with the impact of the severe weather in January and the costs of Sarbanes-Oxley compliance," commented W. C. Hammett Ham·mett , Dashiell 1894-1961. American writer of highly acclaimed detective fiction, including The Maltese Falcon (1930) and The Thin Man (1932). Noun 1. , the company's CFO See Chief Financial Officer. . "We do not anticipate similar cost impact from Sarbanes-Oxley compliance efforts during fiscal 2005. We currently expect to adopt FAS 123R, "Share Based Payment" in the third quarter of fiscal 2005. If adopted, we expect the effect of this change in accounting for stock options to be approximately $0.04 per diluted share for the year ending January 29, 2006. This would change our previously announced annual earnings guidance to a range of $1.11 to $1.19 per diluted share." The company will hold a conference call on Thursday Thursday: see week. , April 14 at 11:30 a.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT (10:30 a.m. CDT CDT abbr. Central Daylight Time CDT Central Daylight Time CDT n abbr (US) (= Central Daylight Time) → hora de verano del centro; (BRIT ) to discuss the results. The call will be Webcast by both CCBN CCBN Central Coast Bancorp CCBN Charles County Business Network and Vcall and can be accessed via Dave & Buster's Web site, www.daveandbusters.com. Individual investors can listen to the call through CCBN's individual investor center, www.companyboardrom.com, or PrecisionIR's Webcast site, www.vcall.com. In addition, investors can access the call by visiting any of the investor sites in the CCBN or PrecisionIR Individual Investor Network. Institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. can access the call via CCBN's password-protected event management site, www.streetevents.com. The Webcast will be archived on the company's Web site and available for replay through April 28, 2005. Celebrating over 22 years of operations, Dave & Buster's was founded in 1982 and is one of the country's leading upscale, restaurant/entertainment concepts with 43 locations throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of . "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statements Under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 Certain information contained in this press release includes forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . Forward-looking statements include statements regarding our expectations, beliefs, intentions, plans, projections, objectives, goals, strategies, future events or performance and underlying assumptions and other statements which are other than statements of historical facts. These statements may be identified, without limitations, by the use of forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. terminology The terminology used in the computer and telecommunications field adds tremendous confusion not only for the lay person, but for the technicians themselves. What many do not realize is that terms are made up by anybody and everybody in a nonchalant, casual manner without any regard or such as "may," "will," "anticipates," "expects," "projects," "believes," "intends," "should," or comparable terms or the negative thereof. All forward-looking statements included in this press release are based on information available to us on the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" . Such statements speak only as of the date hereof. These statements involve risks and uncertainties that could cause actual results to differ materially from those described in the statements. These risks and uncertainties include, but are not limited to, the following: our ability to open new high-volume restaurant/entertainment complexes; our ability to raise and access sufficient capital in the future; changes in consumer preferences, general economic conditions or consumer discretionary spending; the outbreak outbreak see epidemic. or continuation continuation - continuation passing style of war or other hostilities hos·til·i·ty n. pl. hos·til·i·ties 1. The state of being hostile; antagonism or enmity. See Synonyms at enmity. 2. a. A hostile act. b. hostilities Acts of war; overt warfare. involving the United States; potential fluctuation Fluctuation A price or interest rate change. in our quarterly operating result due to seasonality and other factors; the continued service of key management personnel; our ability to attract, motivate and retain qualified personnel; the impact of federal, state or local government regulations relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc our personnel or the sale of food or alcoholic beverages
When a person begins a civil lawsuit, the person enters into a process called litigation. ; the effect of competition in our industry; additional costs associated with compliance with the Sarbanes-Oxley Act See SOX. and related regulations and requirements; and other risk factors described from time to time in our reports filed with the SEC.
DAVE & BUSTER'S, INC.
Condensed Consolidated Balance Sheets
(in thousands)
January 30, 2005 February 1, 2004
---------------- ----------------
ASSETS (as restated)
Current assets
Cash and cash equivalents $ 7,624 $ 3,897
Other current assets 34,581 31,460
---------------- ----------------
Total current assets 42,205 35,357
Property and equipment, net 331,478 291,473
Other assets and deferred charges 23,725 13,371
---------------- ----------------
$ 397,408 $ 340,201
================ ================
LIABILITIES AND STOCKHOLDERS' EQUITY
Total current liabilities $ 49,862 $ 35,577
Other long-term liabilities 70,251 74,639
Long-term debt 80,351 50,201
Stockholders' equity
Common stock 135 132
Paid in capital 122,173 118,669
Restricted stock awards 1,454 905
Accumulated comprehensive income 225 -
Retained earnings 74,804 61,924
---------------- ----------------
198,791 181,630
Less: Treasury stock (1,846) (1,846)
---------------- ----------------
Total stockholders' equity 196,945 179,784
---------------- ----------------
$ 397,408 $ 340,201
================ ================
DAVE & BUSTER'S, INC.
Consolidated Statements of Income
(dollars in thousands, except per share amounts)
(unaudited)
13 Weeks Ended 13 Weeks Ended
January 30,2005 February 1,2004
--------------- ---------------
(as restated)
Food and beverage revenues $ 68,243 56.2% $ 54,158 54.1%
Amusement and other revenues 53,171 43.8% 45,887 45.9%
------- ------ ------- ------
Total revenues 121,414 100.0% 100,045 100.0%
Cost of food and beverage 16,303 13.4% 12,969 13.0%
Cost of amusement and other 5,737 4.7% 6,057 6.0%
------- ------ ------- ------
Total cost of product 22,040 18.1% 19,026 19.0%
Operating payroll and benefits 33,366 27.5% 26,705 26.7%
Other store operating expenses 34,842 28.7% 26,996 27.0%
General and administrative expenses 7,868 6.5% 7,102 7.1%
Depreciation and amortization expense 9,755 8.0% 8,342 8.3%
Preopening costs 280 0.2% -- 0.0%
------- ------ ------- ------
Total operating expenses 86,111 70.9% 69,145 69.1%
Operating income 13,263 10.9% 11,874 11.9%
Interest expense, net 2,174 1.8% 1,316 1.3%
------- ------ ------- ------
Income before provision for income
taxes 11,089 9.1% 10,558 10.6%
Provision for income taxes 3,923 3.2% 3,589 3.6%
------- ------ ------- ------
Net income $ 7,166 5.9% $ 6,969 7.0%
======= ====== ======= ======
Net income per share
Basic $ 0.53 $ 0.54
Diluted $ 0.46 $ 0.46
Weighted average shares outstanding
Basic weighted average shares
outstanding 13,418 13,161
Diluted weighted average shares
outstanding 16,562 15,944
Other information:
Company operated stores open 43 33
EBITDA, which is earnings before interest, taxes, depreciation
and amortization, is used by management, bankers and investors
to evaluate a company's ability to repay debt and for compliance
of certain debt covenants.
Total net income $ 7,166 $ 6,969
Add back: depreciation and
amortization 9,755 8,342
interest expense,
net 2,174 1,316
provision for
income taxes 3,923 3,589
-------- --------
EBITDA $ 23,018 $ 20,216
======== ========
DAVE & BUSTER'S, INC.
Consolidated Statements of Income
(dollars in thousands, except per share amounts)
52 Weeks Ended 52 Weeks Ended
January 30, 2005 February 1, 2004
---------------- -----------------
(as restated)
Food and beverage revenues $209,689 53.7% $191,881 52.9%
Amusement and other revenues 180,578 46.3% 170,941 47.1%
-------- ------ -------- ------
Total revenues 390,267 100.0% 362,822 100.0%
Cost of food and beverage 51,367 13.1% 46,354 12.8%
Cost of amusement and other 21,704 5.6% 21,788 6.0%
-------- ------ -------- ------
Total cost of product 73,071 18.7% 68,142 18.8%
Operating payroll and benefits 110,542 28.3% 105,027 28.9%
Other store operating expenses 119,509 30.6% 108,413 30.0%
General and administrative expenses 26,221 6.7% 25,033 6.9%
Depreciation and amortization
expense 34,238 8.8% 32,741 9.0%
Pre-opening costs 1,295 0.3% -- 0.0%
-------- ------ -------- ------
Total operating expenses 364,876 93.5% 339,356 93.5%
Operating income 25,391 6.5% 23,466 6.5%
Interest expense, net 5,586 1.4% 6,926 1.9%
-------- ------ -------- ------
Income before provision for income
taxes 19,805 5.1% 16,540 4.6%
Provision for income taxes 6,925 1.8% 5,619 1.6%
-------- ------ -------- ------
Net income $ 12,880 3.3% $ 10,921 3.0%
======== ====== ======== ======
Net income per share - basic $ 0.97 $ 0.83
Net income per share - diluted $ 0.87 $ 0.79
Weighted average shares outstanding
Basic weighted average shares
outstanding 13,331 13,128
Diluted weighted average
shares outstanding 16,540 14,646
Other information:
Company operated stores open 43 33
EBITDA, which is earnings before interest, taxes, depreciation
and amortization, is used by management, bankers and investors
to evaluate a company's ability to repay debt and for compliance
of certain debt covenants.
Total net income (loss) $ 12,880 $ 10,921
Add back: depreciation and
amortization 34,238 32,741
interest expense,
net 5,586 6,926
provision for
income taxes 6,925 5,619
-------- --------
EBITDA $ 59,629 $ 56,207
======== ========
DAVE & BUSTER'S, INC.
Consolidated Statements of Cash Flow
(dollars in thousands)
13 Weeks Ended 52 Weeks Ended
January 30, January 30,
2005 2005
-------------- --------------
(Unaudited)
Cash flows from operating activities:
Net income $ 7,166 $ 12,880
Adjustments to reconcile to net cash
provided by operating activities:
Depreciation and amortization
expense 9,755 34,238
Deferred income tax expense (1,791) (3,820)
Tax benefit related to stock
options 180 705
Restricted stock awards 163 549
Warrants related to convertible
debt 63 254
Other, net 174 314
Changes in operating assets and
liabilities, net of effect of
business acquisitions
Inventories (1,064) (2,069)
Prepaid expenses 1,134 (325)
Other current assets (1,397) (94)
Other assets and deferred
charges (4,433) (1,884)
Accounts payable (1,554) (1,200)
Accrued liabilities 2,574 3,535
Income taxes payable 5,502 2,914
Deferred rent liability 4,276 2,154
Other liabilities (3,973) 188
------------- -----------
Net cash provided by operating
activities 16,775 48,339
Cash flows from investing activities:
Capital expenditures (5,599) (34,234)
Business acquisition, net cash
acquired (43,187) (47,876)
Proceeds from sale of property and
equipment (181) 338
------------- -----------
Net cash used in investing
activities (48,967) (81,772)
Cash flows from financing activities:
Borrowings under long-term debt 71,196 78,446
Repayments of long-term debt (36,833) (43,250)
Debt costs (841) (841)
Proceeds from exercises of common
stock options 701 2,805
------------- -----------
Net cash provided by financing activities 34,223 37,160
------------- -----------
Increase in cash and cash equivalents 2,031 3,727
Beginning cash and cash equivalents 5,593 3,897
------------- -----------
Ending cash and cash equivalents $ 7,624 $ 7,624
============= ===========
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