Dave & Buster's, Inc. Reports a Twenty Percent Increase in First Quarter 2005 Earnings Per Share.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 earnings for its first quarter ended May 1, 2005. Total revenue for the first quarter increased 21.9 percent, or $20.8 million, to $115.7 million from $95.0 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 25.2 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 18.3 percent. Revenue from comparable stores decreased 1.7 percent 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 29.2 percent to $9.0 million compared to $6.9 million last year. 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 to $18.7 million, or 23.4 percent, from $15.2 million last year. Net income for the quarter was $4.6 million, or $0.30 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 net income in the same period last year of $3.6 million, or $0.25 per diluted share. "We are pleased with our substantial increase in earnings. These results mark our ninth consecutive quarter of year-over-year profitability improvement," 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. . "While making sustained progress in overall profitability, we remain focused on same store sales Same Store Sales A statistic used in retail industry analysis. It compares sales of stores that have been open for a year or more. Notes: This statistic allows investors to determine what portion of new sales has come from sales growth and what portion from the opening of improvement. We believe we have the appropriate strategy in place to accomplish this later in the year." "There were costs associated with the 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". integration which we expect to be non-recurring," stated 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. . "These costs include items such as training labor and additional food costs related to the new menu roll-out, higher than normal freight costs related to game and equipment transfers and severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when and related management relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation. 2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. costs. We estimate that the impact on total operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. for the quarter was approximately $1.0 million." 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 to this release. The Company will hold a conference call to discuss first quarter results on Tuesday, June 7, 2005, at 11:30 a.m. Eastern Time (10:30 a.m. Central Time). The company plans to release earnings the same day before the market opens. The call will be Webcast by both CCBN CCBN Central Coast Bancorp CCBN Charles County Business Network and Vcall and can be accessed at Dave & Buster's Web site, www.daveandbusters.com. Individual investors can listen to the call through CCBN's individual investor center, www.companyboardroom.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 June 21, 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 in Canada. More information on the company, including the latest investor presentation is available on the company's Website, www.daveandbusters.com. "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 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 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 Statements of Income
(dollars in thousands, except per share amounts)
(unaudited)
13 Weeks Ended 13 Weeks Ended
May 1, 2005 May 2, 2004
--------------- ---------------
(as restated)
Food and beverage revenue $ 61,392 53.0% $49,021 51.6%
Amusement and other revenues 54,343 47.0% 45,945 48.4%
------- ------- -------- ------
Total revenues 115,735 100.0% 94,966 100.0%
Cost of food and beverage 15,191 13.1% 12,189 12.9%
Cost of amusement and other 5,816 5.1% 5,532 5.8%
------- ------- -------- ------
Total cost of product 21,007 18.2% 17,721 18.7%
Operating payroll and
benefits 32,725 28.3% 26,928 28.4%
Other store operating
expenses 35,536 30.7% 28,868 30.4%
General and administrative
expenses 7,692 6.6% 6,299 6.6%
Depreciation and
amortization expense 9,741 8.4% 8,220 8.7%
Preopening costs 78 0.1% - 0.0%
------- ------- -------- ------
Total operating expenses 106,779 92.3% 88,036 92.7%
Operating income 8,956 7.7% 6,930 7.3%
Interest expense, net 1,773 1.5% 1,478 1.6%
------- ------- -------- ------
Income before provision for
income taxes 7,183 6.2% 5,452 5.7%
Provision for income taxes 2,622 2.3% 1,852 2.0%
------- ------- -------- ------
Net income $ 4,561 3.9% $ 3,600 3.8%
======= ======= ======== ======
Net income per share
Basic $ 0.34 $ 0.27
Diluted $ 0.30 $ 0.25
Weighted average shares
outstanding
Basic weighted average
shares outstanding 13,472 13,205
Diluted weighted average
shares outstanding 16,576 16,192
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.
Net income $ 4,561 $ 3,600
Add back: depreciation
& amortization 9,741 8,220
interest
expense, net 1,773 1,478
provision for
income taxes 2,622 1,852
-------- ---------
EBITDA $18,697 $15,150
Dave & Buster's Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
May 1, 2005 Jan. 30,2005
------------- -------------
Current assets
Cash and cash equivalents $ 5,177 $ 7,624
Other current assets 37,126 34,581
------------- -------------
Total current assets 42,303 42,205
Property and equipment, net 332,111 331,478
Other assets and deferred charges 23,057 23,725
------------- -------------
$397,471 $397,408
------------- -------------
LIABILITIES AND STOCKHOLDER'S EQUITY
Total current liabilities $ 47,627 $ 49,861
Other long-term liabilities 73,036 70,251
Long-term debt 74,604 80,351
Stockholder's equity
Common stock 135 135
Paid in capital 122,723 122,173
Restricted stock awards 1,632 1,454
Accumulated comprehensive income 195 225
Retained earnings 79,365 74,804
------------- -------------
204,050 198,791
Less: Treasury stock 1,846 1,846
------------- -------------
Total stockholders' equity 202,204 196,945
$397,471 $397,408
------------- -------------
Dave & Buster's, Inc.
Consolidated Statements Of Cash Flows
(in thousands)
(unaudited)
13 Weeks Ended 13 Weeks Ended
May 1, 2005 May 2, 2004
-------------- --------------
(as restated)
Cash flows from operating activities:
Net Income $ 4,561 $ 3,600
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 9,741 8,220
Deferred income tax benefit (166) (152)
Tax benefit related to stock
options 165 140
Restricted stock awards 178 81
Warrants related to convertible
debt 63 63
Other, net (36) (14)
Changes in operating assets and
liabilities
Inventories 280 (700)
Prepaid expenses (891) (1,960)
Other current assets (1,934) 899
Other assets and deferred charges 1,150 246
Accounts payable (385) (847)
Accrued liabilities 825 878
Income taxes payable (2,967) (905)
Deferred rent liability 1,064 (240)
Other liabilities 1,721 (42)
-------------- --------------
Net cash provided by operating
activities 13,369 9,267
Cash flows from investing activities:
Capital expenditures (10,866) (7,067)
Proceeds from sales of property
and equipment 17 325
-------------- --------------
Net cash used in investing
activities (10,849) (6,742)
Cash flows from financing activities:
Borrowings under long-term debt - 1,500
Repayments of long-term debt (5,352) (2,833)
Proceeds from exercises of stock
options 385 761
-------------- --------------
Net cash used in financing
activities (4,967) (572)
-------------- --------------
Increase (decrease) in cash and cash
equivalents (2,447) 1,953
Beginning cash and cash equivalents 7,624 3,897
-------------- --------------
Ending cash and cash equivalents $ 5,177 $ 5,850
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