Dave & Buster's, Inc. Reports Second Quarter Earnings Increase.Business Editors DALLAS--(BUSINESS WIRE)--Sept. 4, 2003 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, announced earnings for its second quarter and 26 weeks ended August 3, 2003. Net income for the quarter was $1.5 million, or $0.11 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 $0.9 million, or $0.07 per diluted share for the same period last year. 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 quarter was $4.0 million compared to $3.2 million in the prior year. Total revenues decreased 4.2 percent to $88.3 million from $92.2 million in the prior year's comparable quarter. The decrease was due to softness in the 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. portion of the business, which declined just over 7.0 percent for the 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 for the period declined slightly more than 1 percent compared to last year's second quarter. Revenues from comparable stores decreased 6.3 percent from the prior year. During the quarter we incurred costs related to our efficiency studies and our proxy contest Proxy contest A battle for the control of a firm in which a dissident group seeks, from the firm's other shareholders, the right to vote those shareholders' shares in favor of the dissident group's slate of directors. Also called proxy fights. totaling $.8 million, or $0.04 per diluted share. In the same period last year, one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charges related to the proposed merger were $1.2 million, or $0.06 per diluted share. Without these charges, operating income would have been $4.7 million compared to $4.4 million in the prior year. Net income would have been $2.0 million, or $0.15 per diluted share compared to $1.7 million, or $0.13 per diluted share. For the 26 weeks ended August 3, 2003, net income was $4.5 million, or $0.34 per diluted share, compared to a net loss in the same period last year of $(3.3) million, or $(0.24) per diluted share. The Company applied the new standards on accounting for goodwill and other intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. during the first quarter of 2002, which resulted in a one-time charge of $(7.1) million, or $(0.53) per diluted share. Without the effect of the accounting change, net income for the same period last year was $3.8 million, or $0.29 per diluted share. Total revenues for the 26-week period decreased 5.0 percent to $179.9 million from $189.4 million for the comparable period last year. Revenues from the amusement portion of the business decreased 8.4 percent, while revenues from the food and beverage portion declined 1.7 percent. Revenues from comparable stores decreased 6.9 percent from the prior year. Operating income was $10.6 million compared to $9.8 million for the 2002 period. "We believe these results indicate that our strategic cost reduction initiatives are continuing to yield results," 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. , 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. of Dave & Buster's. "Even in this challenging economic environment, we have continued to improve our bottom line. We are moving forward with our acquisition of our Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. licensee licensee n. a person given a license by government or under private agreement. (See: license, licensor) LICENSEE. One to whom a license has been given. 1 M. Q. & S. 699 n. , which we anticipate will close during the third quarter and will contribute approximately $0.02 to $0.04 per diluted share in its first full year of operations." "We believe the amusements revenue decline has begun to slow as the economy has slightly improved and as we continue to aggressively roll out new amusement game products," stated Dave Corriveau, Dave & Buster's President. "As we previously announced, after the end of the second quarter, we closed a $30 million private placement of 5.0 percent convertible subordinated notes," said 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. , CFO See Chief Financial Officer. of Dave & Buster's. "The $27.8 million in net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from the offering were to be used to reduce outstanding debt and to complete the purchase of the Canadian licensee. We expect to announce an amendment to our bank credit agreement within a few days which will give us more flexibility to add new entertainment complexes beginning in 2004." The Company will hold a conference call on Thursday Thursday: see week. , September September: see month. 4 at 4:15 p.m. CDT CDT abbr. Central Daylight Time CDT Central Daylight Time CDT n abbr (US) (= Central Daylight Time) → hora de verano del centro; (BRIT . Interested parties may listen to the call over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the through Dave & Buster's Web site, www.daveandbusters.com. To listen to the live call, please access the Web site at least fifteen minutes before the call to register, download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. , and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available on the Web site shortly after the call. The archived call will be available for two weeks. Celebrating over 20 years of operations, Dave & Buster's was founded in 1982 and is one of the country's leading upscale, restaurant/entertainment concepts with 32 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. . Additionally, Dave & Buster's has international agreements for the Pacific Rim Pacific Rim, term used to describe the nations bordering the Pacific Ocean and the island countries situated in it. In the post–World War II era, the Pacific Rim has become an increasingly important and interconnected economic region. , 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 , the Middle East and Mexico Mexico, city, Mexico Mexico or Mexico City, Span. Ciudad de México (Méjico), city (1990 pop. 8,236,960; 1991 met. area est. 20,899,000), central Mexico, capital and largest city of Mexico. . "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 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 or continuation 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.
Consolidated Balance Sheet
(in thousands)
(unaudited)
August 3, 2003 February 2, 2003
-------------- ----------------
ASSETS
Current Assets
Cash and cash equivalents $ 6,209 $ 2,530
Other current assets 29,956 30,819
--------- ---------
Total current assets 36,165 33,349
Property and equipment, net 248,157 249,451
Other assets 8,124 8,412
--------- ---------
$ 292,446 $ 291,212
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Total current liabilities $ 40,024 $ 37,580
Other long-term liabilities 25,468 24,536
Long-term debt 52,269 59,494
Stockholders' equity
Common stock 133 132
Paid in capital 117,098 116,678
Restricted stock 757 608
Retained earnings 58,543 54,030
--------- ---------
176,531 171,448
Less: Treasury stock (1,846) (1,846)
--------- ---------
Total stockholders' equity 174,685 169,602
$ 292,446 $ 291,212
========= =========
DAVE & BUSTER'S, INC.
Consolidated Statements of Income
(dollars in thousands, except per share amounts)
(unaudited)
13 Weeks Ended 13 Weeks Ended
August 3, 2003 August 4, 2002
--------------- ---------------
Food and beverage revenues $ 45,613 51.7% $ 46,156 50.1%
Amusements and other revenues 42,696 48.3% 45,994 49.9%
-------- --------
Total revenues 88,309 100.0% 92,150 100.0%
Cost of revenues 16,544 18.7% 16,715 18.1%
Operating payroll and benefits 25,951 29.4% 28,583 31.0%
Other store operating expenses 28,058 31.8% 28,199 30.6%
General and administrative expenses 6,396 7.2% 7,601 8.3%
Depreciation and amortization expense 7,394 8.4% 7,561 8.2%
Preopening costs - 0.0% 248 0.3%
-------- --------
Total other expenses 84,343 95.5% 88,907 96.5%
Operating income 3,966 4.5% 3,243 3.5%
Interest expense, net 1,748 2.0% 1,792 1.9%
-------- --------
Income before provision for
income taxes and cumulative
effect of a change in
an accounting principle 2,218 2.5% 1,451 1.6%
Provision for income taxes 754 0.8% 530 0.6%
-------- --------
Income before cumulative effect
of a change in an accounting
principle 1,464 1.7% 921 1.0%
Cumulative effect of a change
in an accounting principle - 0.0% - 0.0%
-------- --------
Net income $ 1,464 1.7% $ 921 1.0%
======== ========
Net income per share - basic
Before cumulative effect
of a change in an
accounting principle $ 0.11 $ 0.07
Cumulative effect of a change
in an accounting principle - -
-------- --------
$ 0.11 $ 0.07
======== ========
Net income per share - diluted
Before cumulative effect of
a change in an accounting
principle $ 0.11 $ 0.07
Cumulative effect of a change
in an accounting principle - -
-------- --------
$ 0.11 $ 0.07
======== ========
Basic weighted average shares
outstanding 13,113 12,986
Diluted weighted average shares
outstanding 13,455 13,435
Other information: Company operated
stores open 32 31
EBITDA (Earnings before interest,
taxes, depreciation and
amortization)
Total net income $ 1,464 $ 921
Add back: depreciation and
amortization 7,394 7,561
interest expense, net 1,748 1,792
provision for income
taxes 754 530
-------- --------
EBITDA $ 11,360 $ 10,804
DAVE & BUSTER'S, INC.
Consolidated Statements of Income
(dollars in thousands, except per share amounts)
(unaudited)
26 Weeks Ended 26 Weeks Ended
August 3, 2003 August 4, 2002
--------------- ---------------
Food and beverage revenues $ 93,277 51.9% $ 94,899 50.1%
Amusements and other revenues 86,619 48.1% 94,493 49.9%
-------- --------
Total revenues 179,896 100.0% 189,392 100.0%
Cost of revenues 33,215 18.5% 34,831 18.4%
Operating payroll and benefits 52,750 29.3% 58,962 31.1%
Other store operating expenses 56,250 31.2% 56,527 29.9%
General and administrative expenses 12,335 6.9% 13,712 7.2%
Depreciation and amortization expense 14,701 8.2% 15,116 8.0%
Preopening costs - 0.0% 401 0.2%
-------- --------
Total other expenses 169,251 94.1% 179,549 94.8%
Operating income 10,645 5.9% 9,843 5.2%
Interest expense, net 3,808 2.1% 3,800 2.0%
-------- --------
Income before provision for income
taxes and cumulative effect of a
change in an accounting principle 6,837 3.8% 6,043 3.2%
Provision for income taxes 2,324 1.3% 2,206 1.2%
-------- --------
Income before cumulative effect of a
change in an accounting principle 4,513 2.5% 3,837 2.0%
Cumulative effect of a change in
an accounting principle - 0.0% (7,096) (3.7)%
-------- --------
Net income (loss) $ 4,513 2.5% $(3,259) (1.7)%
======== ========
Net income (loss) per share - basic
Before cumulative effect of a
change in an accounting
principle $ 0.34 $ 0.30
Cumulative effect of a change in an
accounting principle - (0.55)
-------- --------
$ 0.34 $ (0.25)
======== ========
Net income (loss) per share - diluted
Before cumulative effect of a change
in an accounting principle $ 0.34 $ 0.29
Cumulative effect of a change in an
accounting principle - (0.53)
-------- --------
$ 0.34 $ (0.24)
======== ========
Basic weighted average shares
outstanding 13,102 12,978
Diluted weighted average shares
outstanding 13,382 13,382
Other information: Company operated
stores open 32 31
EBITDA (Earnings before interest,
taxes, depreciation and
Amortization and cumulative
effect of a change in an accounting
principle)
Total net income $ 4,513 $ (3,259)
Add back: depreciation and
amortization 14,701 15,116
interest expense, net 3,808 3,800
provision for income
taxes 2,324 2,206
cumulative effect of
a change in an
accounting
principle - 7,096
-------- --------
EBITDA $ 25,346 $ 24,959
|
|
Printer friendly
Cite/link
Email
Feedback
Reader Opinion