Dave & Buster's Reports Third Quarter 2001 Results.Business Editors DALLAS--(BUSINESS WIRE)--Dec. 5, 2001 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). ) reported results for its third quarter ended November November: see month. 4, 2001. This period included the September September: see month. 11 tragedy and eight subsequent weeks of depressed market Depressed market Market in which supply overwhelms demand, leading to weak and lower prices. conditions, resulting in substantially lower than anticipated revenue for the quarter. Prior to the tragedy, Dave & Buster's comparable store sales were meeting expectations and walk-in walk-in A new brokerage customer who simply walks into the office. Although walk-ins are generally assigned to brokers, they have the right to specify a preferred broker. traffic was exceeding expectations. While the Company had previously predicted that comparable store sales would be down 2 to 3 percent, the weeks impacted by the September 11 tragedy caused comparable store sales for the quarter to be down 6.7 percent, compared to an 8.4% increase in the same period in 2000. There are 20 stores in the 2001 comp comp See comparison. store base as compared to 14 stores in 2000. For the third quarter ended November 4, 2001, the Company reported total revenues of $81.4 million. Operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. for the quarter was ($1.3) million and net loss was ($1.9) million, or $(0.14) 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. For the 39 weeks ended November 4, 2001, total revenues were $253.2 million. 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 was $10.6 million and net income was $2.9 million, or $0.22 per diluted share. The revenues for the third quarter were approximately $4 million less than guidance given after our second quarter, $3 million of this shortfall Shortfall The amount by which the capital required to fulfill a financial obligation exceeds available capital. Notes: Shortfall risk is often combated with an efficient hedging strategy created by a fund, group, institution, or individual. occurred in the week of September 11th and the subsequent three weeks. "Like many companies, the September 11 tragedy greatly impacted our business. However, our recent weeks of results have shown strong recovery trends," 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. , cofounder co·found tr.v. co·found·ed, co·found·ing, co·founds To establish or found in concert with another or others. co·found of Dave & Buster's. "We are entering what has historically been one of our strongest quarters. We continue to work to maximize our business, and even in these challenging times, our management teams have achieved efficiencies in our operations. Based on our November results, we believe that much of the business effects of the September 11 tragedy are substantially behind us." "In October October: see month. we opened our Honolulu Honolulu (hŏn'əl  `l, hōnō–), city (1990 pop. Dave & Buster's
which set all Company records for its first 60 days of operations,"
stated Dave Corriveau, cofounder of Dave & Buster's. "One
month later later, we opened our fourth 2001 new Dave &
Buster's in Cleveland Cleveland, former county, EnglandCleveland, former county, NE England, created under the Local Government Act of 1972 (effective 1974). It was composed of the county boroughs of Hartlepool and Teeside and parts of the former counties of Durham and whose opening store results were among the best in the Company's history. But in light of the uncertain economic times, we have amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. our new store development schedule to one new store for next year. This action coupled with a sale/leaseback program will allow us to reduce debt and enhance the financial strength of our Company." "I was pleased to see that management was able to react quickly to prevent costs from getting out of control. Further, it is important to note that pre-opening costs related to the three stores which opened in the third quarter and the beginning of the fourth quarter represented ($.09) per diluted share of the ($0.14) net loss," 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. , Jr., Chief Financial Officer. The Company will hold a conference call with management to discuss its results and current outlook. The call will be held on Thursday morning, December 6 at 7:30 am 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 conference 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 the Dave & Buster's website www.daveandbusters.com. To listen to the live call, please access the web site at least fifteen minutes early 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 shortly after the call on the website. The archived call will be available for two weeks. Founded in 1982, Dave & Buster's is one of the country's leading upscale, restaurant/ entertainment concepts and currently operates 31 Dave & Buster's 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, the Middle East and Mexico. This release contains 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. that involve assumptions regarding Company operations and future prospects. Although the Company believes its expectations are based on reasonable assumptions, such statements are subject to risk and uncertainty, including, among other things, certain economic conditions, competition, development factors and operating costs operating costs npl → gastos mpl operacionales . Caution should be taken that these factors could cause the actual results to differ from those stated or implied in this and other Company communications.
DAVE & BUSTER'S, INC.
Consolidated Statements of Income
(dollars in thousands, except per share amounts)
(unaudited)
13 Weeks Ended 13 Weeks Ended
November 4, 2001 October 29, 2000
---------------- ----------------
Food and beverage revenues $ 41,171 50.6% $ 39,782 50.2%
Amusement and other revenues 40,200 49.4% 39,462 49.8%
--------- ---------
Total revenues 81,371 100.0% 79,244 100.0%
Cost of revenues 15,248 18.7% 14,783 18.6%
Operating payroll and benefits 26,573 32.6% 24,780 31.3%
Other store operating expenses 26,426 32.5% 22,500 28.4%
General and administrative
expenses 5,120 6.3% 4,811 6.1%
Depreciation and amortization
expense 7,407 9.1% 6,706 8.5%
Preopening costs 1,850 2.3% 709 0.9%
--------- ---------
Total costs and expenses 82,624 101.5% 74,289 93.8%
Operating income (loss) (1,253) (1.5)% 4,955 6.2%
Interest expense, net 1,683 2.1% 2,587 3.2%
--------- ---------
Income (loss) before provision
for income taxes (2,936) (3.6)% 2,368 3.0%
Provision for income taxes (1,063) (1.3)% 869 1.1%
--------- ---------
Net income (loss) $ (1,873) (2.3)% $ 1,499 1.9%
========= =========
Net income (loss) per share:
Basic $ (0.14) $ 0.12
Diluted $ (0.14) $ 0.12
Weighted average shares
outstanding:
Basic 12,956 12,953
Diluted 12,956 12,974
Other information:
Company operated stores open 30 26
DAVE & BUSTER'S, INC.
Consolidated Statements of Income
(dollars in thousands, except per share amounts)
(unaudited)
39 Weeks Ended 39 Weeks Ended
November 4, 2001 October 29, 2000
---------------- ----------------
Food and beverage revenues $126,325 49.9% $117,252 50.0%
Amusement and other revenues 126,878 50.1% 117,407 50.0%
-------- --------
Total revenues 253,203 100.0% 234,659 100.0%
Cost of revenues 47,504 18.7% 43,337 18.4%
Operating payroll and benefits 79,207 31.3% 71,336 30.4%
Other store operating expenses 75,417 29.8% 66,111 28.2%
General and administrative expenses 15,374 6.1% 14,465 6.2%
Depreciation and amortization expense 21,315 8.4% 18,688 8.0%
Preopening costs 3,750 1.5% 4,266 1.8%
-------- --------
Total costs and expenses 242,567 95.8% 218,203 93.0%
Operating income 10,636 4.2% 16,456 7.0%
Interest expense, net 6,063 2.4% 6,126 2.6%
-------- --------
Income before provision for income
taxes 4,573 1.8% 10,330 4.4%
Provision for income taxes 1,655 0.6% 3,791 1.6%
-------- --------
Net income $2,918 1.2% $6,539 2.8%
======== ========
Net income per share:
Basic $ 0.23 $ 0.50
Diluted $ 0.22 $ 0.50
Weighted average shares outstanding:
Basic 12,955 12,953
Diluted 13,016 12,963
Other information:
Company operated stores open 30 26
DAVE & BUSTER'S, INC.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
November 4, 2001 February 4, 2001
---------------- ----------------
ASSETS
Current assets
Cash and cash equivalents $3,379 $3,179
Other current assets 31,032 27,208
-------- --------
Total current assets 34,411 30,387
Property and equipment, net 267,380 260,467
Other assets 11,664 13,021
-------- --------
$313,455 $303,875
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Total current liabilities 37,515 25,261
Other long-term liabilities 14,461 12,367
Long-term debt 96,065 103,860
Stockholders' equity
Common stock 131 131
Paid in capital 115,675 115,659
Restricted stock awards 336 243
Retained earnings 51,118 48,200
-------- --------
167,260 164,233
Less: Treasury stock 1,846 1,846
-------- --------
Total stockholders' equity 165,414 162,387
-------- --------
$313,455 $303,875
======== ========
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