☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 35-2382255 | |
(State of Incorporation) | (I.R.S. Employer ID) | |
2481 Mañana Drive, Dallas, | (214) | |
(Address of principal executive offices) (Zip Code) | (Registrant’s telephone number) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||
Common Stock $0.01 par value | PLAY | NASDAQ Global Select Market | ||||
Preferred Stock Purchase Rights | PLAY | NASDAQ Global Select Market |
Large accelerated filer | ☒ | Accelerated filer | ☐ | |||
☐ | ||||||
Emerging Growth Company | ||||||
☐ | ||||||
PART I | ||||||||||
ITEM 1. | 3 | |||||||||
ITEM 1A. | 15 | |||||||||
ITEM 1B. | 29 | |||||||||
ITEM 2. | 30 | |||||||||
ITEM 3. | 31 | |||||||||
ITEM 4. | 31 | |||||||||
PART II | ||||||||||
ITEM 5. | ||||||||||
ITEM 6. | ||||||||||
ITEM 7. | ||||||||||
ITEM 7A. | ||||||||||
ITEM 8. | ||||||||||
ITEM 9. | ||||||||||
ITEM 9A. | ||||||||||
ITEM 9B. | ||||||||||
PART III | ||||||||||
ITEM 10. | ||||||||||
ITEM 11. | ||||||||||
ITEM 12. | ||||||||||
ITEM 13. | ||||||||||
ITEM 14. | ||||||||||
PART IV | ||||||||||
ITEM 15. | 54 | |||||||||
ITEM 1. |
Male | Female | Total | ||||||||||
White | 23.9 | % | 22.6 | % | 46.5 | % | ||||||
Black or African American | 14.4 | % | 11.7 | % | 26.1 | % | ||||||
Hispanic | 12.3 | % | 9.6 | % | 21.9 | % | ||||||
Asian/American Indian/Pacific Islander | 2.1 | % | 1.4 | % | 3.5 | % | ||||||
Two or more races | 1.2 | % | 0.8 | % | 2.0 | % | ||||||
Total | 53.9 | % | 46.1 | % | 100.0 | % | ||||||
ITEM 1A. | Risk Factors |
ITEM 1B. | Unresolved Staff Comments |
ITEM 2. | Properties |
Location | Total | |||
Alabama | 2 | |||
Alaska | 1 | |||
Arizona | 4 | |||
Arkansas | 2 | |||
California | 16 | |||
Colorado | 2 | |||
Connecticut | 2 | |||
Florida | 8 | |||
Georgia | 4 | |||
Hawaii | 1 | |||
Idaho | 1 | |||
Illinois | ||||
Indiana | ||||
Kansas | 3 | |||
Kentucky | 2 | |||
Louisiana | 1 | |||
Maryland | 5 | |||
Massachusetts | 3 | |||
Michigan | 3 | |||
Minnesota | 2 | |||
Missouri | 1 |
Nebraska | 1 | |||
Nevada | 1 | |||
1 | ||||
New Jersey | ||||
New Mexico | 1 | |||
New York | 11 | |||
North Carolina | 4 | |||
Ohio | 6 | |||
Oklahoma | 2 | |||
Oregon | 1 | |||
Pennsylvania | ||||
Rhode Island | 1 | |||
South Carolina | 3 | |||
Tennessee | ||||
Texas | ||||
Utah | 1 | |||
Virginia | 4 | |||
Washington | 1 | |||
Wisconsin | ||||
Puerto Rico | 1 | |||
Ontario, Canada | 2 | |||
Total |
ITEM 3. |
ITEM 4. |
ITEM 5. |
Period Ended | ||||||||||||||||||||||||
2/1/2015 | 1/31/2016 | 1/29/2019 | 2/4/2018 | 2/3/2019 | 2/2/2020 | |||||||||||||||||||
PLAY | $ | 100.00 | $ | 126.20 | $ | 190.68 | $ | 165.97 | $ | 178.64 | $ | 153.65 | ||||||||||||
S&P 600 Small Cap | $ | 100.00 | $ | 95.31 | $ | 128.67 | $ | 146.79 | $ | 147.31 | $ | 157.07 | ||||||||||||
S&P 600 Consumer Discretionary | $ | 100.00 | $ | 88.69 | $ | 103.97 | $ | 123.49 | $ | 125.84 | $ | 131.48 | ||||||||||||
NASDAQ Composite | $ | 100.00 | $ | 99.54 | $ | 122.12 | $ | 156.22 | $ | 156.71 | $ | 209.97 |
ITEM 6. |
Fiscal Year Ended | ||||||||||||||||||||
February 2, 2020 | February 3, 2019 | February 4, 2018 | January 29, 2017 | January 31, 2016 | ||||||||||||||||
Statement of Operations Data: | ||||||||||||||||||||
Total revenues | $ | 1,354,691 | $ | 1,265,301 | $ | 1,139,791 | $ | 1,005,158 | $ | 866,982 | ||||||||||
Operating income | 148,079 | 161,000 | 165,772 | 150,516 | 110,036 | |||||||||||||||
Net income | 100,263 | 117,221 | 120,949 | 90,795 | 59,619 | |||||||||||||||
Balance sheet data (as of end of period): | ||||||||||||||||||||
Cash and cash equivalents | 24,655 | 21,585 | 18,795 | 20,083 | 25,495 | |||||||||||||||
Working capital (deficit) (1) | (211,888 | ) | (153,297 | ) | (112,918 | ) | (102,193 | ) | (46,567 | ) | ||||||||||
Property and equipment, net | 900,637 | 805,337 | 726,455 | 606,865 | 523,891 | |||||||||||||||
Total assets (2) | 2,370,139 | 1,273,187 | 1,197,030 | 1,052,733 | 1,003,701 | |||||||||||||||
Total debt, net (2) | 647,689 | 393,469 | 366,249 | 264,128 | 337,416 | |||||||||||||||
Stockholders’ equity | 169,650 | 387,837 | 421,646 | 439,452 | 346,338 | |||||||||||||||
Other data: | ||||||||||||||||||||
Capital expenditures | $ | 228,091 | $ | 216,286 | $ | 219,901 | $ | 180,577 | $ | 162,892 | ||||||||||
Stores open at end of period | 136 | 121 | 106 | 92 | 81 | |||||||||||||||
Stores closed during period | 1 | — | — | — | 2 | |||||||||||||||
Cash dividends declared per share | $ | 0.62 | 0.30 | — | — | — | ||||||||||||||
Net income per share of common stock: | ||||||||||||||||||||
Basic | $ | 3.00 | $ | 3.00 | $ | 2.93 | $ | 2.16 | $ | 1.46 | ||||||||||
Diluted | $ | 2.94 | $ | 2.93 | $ | 2.84 | $ | 2.10 | $ | 1.39 | ||||||||||
Weighted average number of shares outstanding: | ||||||||||||||||||||
Basic | 33,450,217 | 39,047,106 | 41,276,314 | 41,951,770 | 40,968,455 | |||||||||||||||
Diluted | 34,099,378 | 39,975,122 | 42,583,009 | 43,288,592 | 42,783,905 |
Fiscal Year Ended | ||||||||||||||||||||
January 31, 2021 | February 2, 2020 | February 3, 2019 | February 4, 2018 | January 29, 2017 | ||||||||||||||||
Statement of Operations Data: | ||||||||||||||||||||
Total revenues | $ | 436,512 | $ | 1,354,691 | $ | 1,265,301 | $ | 1,139,791 | $ | 1,005,158 | ||||||||||
Operating income (loss) | (252,612 | ) | 148,079 | 161,000 | 165,772 | 150,516 | ||||||||||||||
Net income (loss) | (206,974 | ) | 100,263 | 117,221 | 120,949 | 90,795 | ||||||||||||||
Balance sheet data (as of end of period): | ||||||||||||||||||||
Cash and cash equivalents | 11,891 | 24,655 | 21,585 | 18,795 | 20,083 | |||||||||||||||
Working capital (deficit) (1) | (152,765 | ) | (211,888 | ) | (153,297 | ) | (112,918 | ) | (102,193 | ) | ||||||||||
Property and equipment, net | 815,027 | 900,637 | 805,337 | 726,455 | 606,865 | |||||||||||||||
Total assets | 2,352,824 | 2,370,139 | 1,273,187 | 1,197,030 | 1,052,733 | |||||||||||||||
Total debt, net | 596,388 | 647,689 | 393,469 | 366,249 | 264,128 | |||||||||||||||
Stockholders’ equity | 153,232 | 169,650 | 387,837 | 421,646 | 439,452 | |||||||||||||||
Other data: | ||||||||||||||||||||
Capital expenditures | $ | 83,016 | $ | 228,091 | $ | 216,286 | $ | 219,901 | $ | 180,577 | ||||||||||
Company-owned stores at end of period | 140 | 136 | 121 | 106 | 92 | |||||||||||||||
Stores closed during period | 2 | 1 | — | — | — | |||||||||||||||
Cash dividends declared per share | $ | — | $ | 0.62 | $ | 0.30 | $ | — | $ | — | ||||||||||
Net income (loss) per share of common stock: | ||||||||||||||||||||
Basic | $ | (4.75 | ) | $ | 3.00 | $ | 3.00 | $ | 2.93 | $ | 2.16 | |||||||||
Diluted | $ | (4.75 | ) | $ | 2.94 | $ | 2.93 | $ | 2.84 | $ | 2.10 | |||||||||
Weighted average number of shares outstanding: | ||||||||||||||||||||
Basic | 43,549,887 | 33,450,217 | 39,047,106 | 41,276,314 | 41,951,770 | |||||||||||||||
Diluted | 43,549,887 | 34,099,378 | 39,975,122 | 42,583,009 | 43,288,592 |
(1) | Defined as total current assets minus total current liabilities. |
ITEM 7. |
Fiscal Year Ended | Fiscal Year Ended | |||||||||||||||
February 2, 2020 | February 3, 2019 | |||||||||||||||
Food and beverage revenues | $ | 563,576 | 41.6 | % | $ | 536,469 | 42.4 | % | ||||||||
Amusement and other revenues | 791,115 | 58.4 | 728,832 | 57.6 | ||||||||||||
Total revenues | 1,354,691 | 100.0 | 1,265,301 | 100.0 | ||||||||||||
Cost of food and beverage (as a percentage of food and beverage revenues) | 148,196 | 26.3 | 139,199 | 25.9 | ||||||||||||
Cost of amusement and other (as a percentage of amusement and other revenues) | 85,115 | 10.8 | 81,064 | 11.1 | ||||||||||||
Total cost of products | 233,311 | 17.2 | 220,263 | 17.4 | ||||||||||||
Operating payroll and benefits | 322,970 | 23.8 | 296,924 | 23.5 | ||||||||||||
Other store operating expenses | 429,431 | 31.8 | 384,155 | 30.4 | ||||||||||||
General and administrative expenses | 69,469 | 5.1 | 61,521 | 4.9 | ||||||||||||
Depreciation and amortization expense | 132,460 | 9.8 | 118,275 | 9.3 | ||||||||||||
Pre-opening costs | 18,971 | 1.4 | 23,163 | 1.8 | ||||||||||||
Total operating costs | 1,206,612 | 89.1 | 1,104,301 | 87.3 | ||||||||||||
Operating income | 148,079 | 10.9 | 161,000 | 12.7 | ||||||||||||
Interest expense, net | 20,937 | 1.5 | 13,113 | 1.0 | ||||||||||||
Income before provision for income taxes | 127,142 | 9.4 | 147,887 | 11.7 | ||||||||||||
Provision for income taxes | 26,879 | 2.0 | 30,666 | 2.4 | ||||||||||||
Net income | $ | 100,263 | 7.4 | % | $ | 117,221 | 9.3 | % | ||||||||
Change in comparable store sales | (2.6 | )% | (1.6 | )% | ||||||||||||
Company-owned stores open at end of period (1) | 136 | 121 | ||||||||||||||
Comparable stores open at end of period (1) | 99 | 86 |
Fiscal Year Ended | Fiscal Year Ended | |||||||||||||||
January 31, 2021 | February 2, 2020 | |||||||||||||||
Food and beverage revenues | $ | 159,501 | 36.5 | % | $ | 563,576 | 41.6 | % | ||||||||
Amusement and other revenues | 277,011 | 63.5 | 791,115 | 58.4 | ||||||||||||
Total revenues | 436,512 | 100.0 | 1,354,691 | 100.0 | ||||||||||||
Cost of food and beverage (as a percent of food and beverage revenues) | 45,207 | 28.3 | 148,196 | 26.3 | ||||||||||||
Cost of amusement and other (as a percent of amusement and other revenues) | 29,698 | 10.7 | 85,115 | 10.8 | ||||||||||||
Total cost of products | 74,905 | 17.2 | 233,311 | 17.2 | ||||||||||||
Operating payroll and benefits | 117,475 | 26.9 | 322,970 | 23.8 | ||||||||||||
Other store operating expenses | 299,464 | 68.6 | 429,431 | 31.8 | ||||||||||||
General and administrative expenses | 47,215 | 10.8 | 69,469 | 5.1 | ||||||||||||
Depreciation and amortization expense | 138,789 | 31.8 | 132,460 | 9.8 | ||||||||||||
Pre-opening costs | 11,276 | 2.6 | 18,971 | 1.4 | ||||||||||||
Total operating costs | 689,124 | 157.9 | 1,206,612 | 89.1 | ||||||||||||
Operating income (loss) | (252,612 | ) | (57.9 | ) | 148,079 | 10.9 | ||||||||||
Interest expense, net | 36,890 | 8.4 | 20,937 | 1.5 | ||||||||||||
Loss on debt refinance | 904 | 0.2 | — | — | ||||||||||||
Income (loss) before provision (benefit) for income taxes | (290,406 | ) | (66.5 | ) | 127,142 | 9.4 | ||||||||||
Provision (benefit) for income taxes | (83,432 | ) | (19.1 | ) | 26,879 | 2.0 | ||||||||||
Net income (loss) | $ | (206,974 | ) | (47.4 | )% | $ | 100,263 | 7.4 | % | |||||||
Change in comparable store sales | (70.2 | )% | (2.6 | )% | ||||||||||||
Company-owned stores at end of period (1) | 140 | 136 | ||||||||||||||
Comparable stores at end of period (1) | 114 | 99 |
(1) | As of January 31, 2021, 107 of our 140 stores were open and 84 of our 114 comparable stores were open. Our total and comparable store counts as of the end of fiscal 2020 exclude a store in Chicago, Illinois and a store in Houston, Texas which are at or near the end of their respective lease terms which the Company has decided not to re-open. Our store in Duluth (Atlanta), Georgia permanently closed on March 3, 2019 as we did not exercise the renewal option and is excluded from fiscal 2019 store counts and comparable store sales. We opened six new stores during fiscal 2020 and 16 new stores during fiscal 2019. |
Fiscal Year Ended | Fiscal Year Ended | |||||||||||||||
January 31, 2021 | February 2, 2020 | |||||||||||||||
Net income (loss) | $ | (206,974 | ) | -47.4 | % | $ | 100,263 | 7.4 | % | |||||||
Interest expense, net | 36,890 | 20,937 | ||||||||||||||
Loss on debt refinance | 904 | — | ||||||||||||||
Provision (benefit) for income tax | (83,432 | ) | 26,879 | |||||||||||||
Depreciation and amortization expense | 138,789 | 132,460 | ||||||||||||||
EBITDA | (113,823 | ) | -26.1 | % | 280,539 | 20.7 | % | |||||||||
Loss on asset disposal | 577 | 1,813 | ||||||||||||||
Impairment of long-lived assets and lease termination costs | 13,727 | — | ||||||||||||||
Share-based compensation | 6,985 | 6,857 | ||||||||||||||
Pre-opening costs | 11,276 | 18,971 | ||||||||||||||
Other costs (1) | (15 | ) | 42 | |||||||||||||
Adjusted EBITDA | $ | (81,273 | ) | -18.6 | % | $ | 308,222 | 22.8 | % | |||||||
(1) | Primarily represents costs related to currency transaction (gains) or losses. |
Fiscal Year Ended | Fiscal Year Ended | |||||||||||||||
January 31, 2021 | February 2, 2020 | |||||||||||||||
Operating income (loss) | $ | (252,612 | ) | -57.9 | % | $ | 148,079 | 10.9 | % | |||||||
General and administrative expenses | 47,215 | 69,469 | ||||||||||||||
Depreciation and amortization expense | 138,789 | 132,460 | ||||||||||||||
Pre-opening costs | 11,276 | 18,971 | ||||||||||||||
Store Operating Income Before Depreciation and Amortization | $ | (55,332 | ) | -12.7 | % | $ | 368,979 | 27.2 | % | |||||||
Fiscal Year Ended | Fiscal Year Ended | |||||||
January 31, 2021 | February 3, 2020 | |||||||
New store and operating initiatives | $ | 51,572 | $ | 183,897 | ||||
Games | 8,795 | 19,749 | ||||||
Maintenance capital | 3,266 | 27,351 | ||||||
Total capital additions | $ | 63,633 | $ | 230,997 | ||||
Payments from landlords | $ | 12,923 | $ | 33,544 |
Fiscal year ended January 31, 2021 | Fiscal year ended February 2, 2020 | Change | ||||||||||
Total revenues | $ | 436,512 | $ | 1,354,691 | $ | (918,179 | ) | |||||
Total store operating weeks | 3,922 | 6,769 | (2,847 | ) | ||||||||
Comparable store revenues | $ | 358,395 | $ | 1,200,983 | $ | (842,588 | ) | |||||
Comparable store operating weeks | 3,157 | 5,928 | (2,771 | ) | ||||||||
Noncomparable store revenues | $ | 81,272 | 162,467 | $ | (81,195 | ) | ||||||
Noncomparable store operating weeks | 765 | 841 | (76 | ) | ||||||||
Other revenues | $ | (3,155 | ) | $ | (8,759 | ) | $ | 5,604 |
Fiscal Year Ended | Fiscal Year Ended | |||||||||||||||
February 2, 2020 | February 3, 2019 | |||||||||||||||
Food and beverage revenues | $ | 563,576 | 41.6 | % | $ | 536,469 | 42.4 | % | ||||||||
Amusement and other revenues | 791,115 | 58.4 | 728,832 | 57.6 | ||||||||||||
Total revenues | 1,354,691 | 100.0 | 1,265,301 | 100.0 | ||||||||||||
Cost of food and beverage (as a percentage of food and beverage revenues) | 148,196 | 26.3 | 139,199 | 25.9 | ||||||||||||
Cost of amusement and other (as a percentage of amusement and other revenues) | 85,115 | 10.8 | 81,064 | 11.1 | ||||||||||||
Total cost of products | 233,311 | 17.2 | 220,263 | 17.4 | ||||||||||||
Operating payroll and benefits | 322,970 | 23.8 | 296,924 | 23.5 | ||||||||||||
Other store operating expenses | 429,431 | 31.8 | 384,155 | 30.4 | ||||||||||||
General and administrative expenses | 69,469 | 5.1 | 61,521 | 4.9 | ||||||||||||
Depreciation and amortization expense | 132,460 | 9.8 | 118,275 | 9.3 | ||||||||||||
Pre-opening costs | 18,971 | 1.4 | 23,163 | 1.8 | ||||||||||||
Total operating costs | 1,206,612 | 89.1 | 1,104,301 | 87.3 | ||||||||||||
Operating income | 148,079 | 10.9 | 161,000 | 12.7 | ||||||||||||
Interest expense, net | 20,937 | 1.5 | 13,113 | 1.0 | ||||||||||||
Income before provision for income taxes | 127,142 | 9.4 | 147,887 | 11.7 | ||||||||||||
Provision for income taxes | 26,879 | 2.0 | 30,666 | 2.4 | ||||||||||||
Net income | $ | 100,263 | 7.4 | % | $ | 117,221 | 9.3 | % | ||||||||
Change in comparable store sales | (2.6 | )% | (1.6 | )% | ||||||||||||
Company-owned stores open at end of period (1) | 136 | 121 | ||||||||||||||
Comparable stores open at end of period (1) | 99 | 86 |
(1) | Our store in Duluth (Atlanta), Georgia permanently closed on March 3, 2019, as we did not exercise the renewal option, and has been excluded from fiscal 2019 store counts and comparable store sales. The number of new store openings during the last two fiscal years were as follows: |
Fiscal Year Ended | Fiscal Year Ended | |||||||
February 2, 2020 | February 3, 2019 | |||||||
First Quarter | 7 | 6 | ||||||
Second Quarter | 3 | 5 | ||||||
Third Quarter | 4 | 1 | ||||||
Fourth Quarter | 2 | 3 | ||||||
16 | 15 |
Fiscal Year Ended | Fiscal Year Ended | |||||||
February 2, 2020 | February 3, 2019 | |||||||
First Quarter | 7 | 6 | ||||||
Second Quarter | 3 | 5 | ||||||
Third Quarter | 4 | 1 | ||||||
Fourth Quarter | 2 | 3 | ||||||
16 | 15 |
Fiscal Year Ended | Fiscal Year Ended | |||||||||||||||
February 2, 2020 | February 3, 2019 | |||||||||||||||
Net income | $ | 100,263 | 7.4 | % | $ | 117,221 | 9.3 | % | ||||||||
Interest expense, net | 20,937 | 13,113 | ||||||||||||||
Provision for income tax | 26,879 | 30,666 | ||||||||||||||
Depreciation and amortization expense | 132,460 | 118,275 | ||||||||||||||
EBITDA | 280,539 | 20.7 | % | 279,275 | 22.1 | % | ||||||||||
Loss on asset disposal | 1,813 | 1,121 | ||||||||||||||
Share-based compensation | 6,857 | 7,422 | ||||||||||||||
Pre-opening costs | 18,971 | 23,163 | ||||||||||||||
Other costs (1) | 42 | 136 | ||||||||||||||
Adjusted EBITDA | $ | 308,222 | 22.8 | % | $ | 311,117 | 24.6 | % | ||||||||
Fiscal Year Ended | Fiscal Year Ended | |||||||||||||||
February 2, 2020 | February 3, 2019 | |||||||||||||||
Net income | $ | 100,263 | 7.4 | % | $ | 117,221 | 9.3 | % | ||||||||
Interest expense, net | 20,937 | 13,113 | ||||||||||||||
Provision for income tax | 26,879 | 30,666 | ||||||||||||||
Depreciation and amortization expense | 132,460 | 118,275 | ||||||||||||||
EBITDA | 280,539 | 20.7 | % | 279,275 | 22.1 | % | ||||||||||
Loss on asset disposal | 1,813 | 1,121 | ||||||||||||||
Share-based compensation | 6,857 | 7,422 | ||||||||||||||
Pre-opening costs | 18,971 | 23,163 | ||||||||||||||
Other costs (1) | 42 | 136 | ||||||||||||||
Adjusted EBITDA | $ | 308,222 | 22.8 | % | $ | 311,117 | 24.6 | % | ||||||||
(1) | Primarily represents costs related to currency transaction (gains) or losses. |
Fiscal Year Ended | Fiscal Year Ended | |||||||||||||||
February 2, 2020 | February 3, 2019 | |||||||||||||||
Operating income | $ | 148,079 | 10.9 | % | $ | 161,000 | 12.7 | % | ||||||||
General and administrative expenses | 69,469 | 61,521 | ||||||||||||||
Depreciation and amortization expense | 132,460 | 118,275 | ||||||||||||||
Pre-opening costs | 18,971 | 23,163 | ||||||||||||||
Store Operating Income Before Depreciation and Amortization | $ | 368,979 | 27.2 | % | $ | 363,959 | 28.8 | % | ||||||||
Fiscal Year Ended | Fiscal Year Ended | |||||||||||||||
February 2, 2020 | February 3, 2019 | |||||||||||||||
Operating income | $ | 148,079 | 10.9 | % | $ | 161,000 | 12.7 | % | ||||||||
General and administrative expenses | 69,469 | 61,521 | ||||||||||||||
Depreciation and amortization expense | 132,460 | 118,275 | ||||||||||||||
Pre-opening costs | 18,971 | 23,163 | ||||||||||||||
Store Operating Income Before Depreciation and Amortization | $ | 368,979 | 27.2 | % | $ | 363,959 | 28.8 | % | ||||||||
Fiscal Year Ended | Fiscal Year Ended | |||||||
February 3, 2020 | February 3, 2019 | |||||||
New store and operating initiatives | $ | 183,897 | $ | 162,763 | ||||
Games | 19,749 | 27,381 | ||||||
Maintenance capital | 27,351 | 20,821 | ||||||
Total capital additions | $ | 230,997 | $ | 210,965 | ||||
Payments from landlords | $ | 33,544 | $ | 52,099 |
Fiscal Year Ended | Fiscal Year Ended | |||||||
February 3, 2020 | February 3, 2019 | |||||||
New store and operating initiatives | $ | 183,897 | $ | 162,763 | ||||
Games | 19,749 | 27,381 | ||||||
Maintenance capital | 27,351 | 20,821 | ||||||
Total capital additions | $ | 230,997 | $ | 210,965 | ||||
Payments from landlords | $ | 33,544 | $ | 52,099 |
Comparable stores | $ | (28,408 | ) | |
Non-comparable stores | 117,592 | |||
Other | 206 | |||
Total | $ | 89,390 | ||
Comparable stores | $ | (28,408 | ) | |
Non-comparable stores | 117,592 | |||
Other | 206 | |||
Total | $ | 89,390 | ||
Fiscal Year Ended | Fiscal Year Ended | |||||||||||||||
February 3, 2019 | February 4, 2018 | |||||||||||||||
Food and beverage revenues | $ | 536,469 | 42.4 | % | $ | 494,816 | 43.4 | % | ||||||||
Amusement and other revenues | 728,832 | 57.6 | 644,975 | 56.6 | ||||||||||||
Total revenues | 1,265,301 | 100.0 | 1,139,791 | 100.0 | ||||||||||||
Cost of food and beverage (as a percentage of food and beverage revenues) | 139,199 | 25.9 | 127,600 | 25.8 | ||||||||||||
Cost of amusement and other (as a percentage of amusement and other revenues) | 81,064 | 11.1 | 69,072 | 10.7 | ||||||||||||
Total cost of products | 220,263 | 17.4 | 196,672 | 17.3 | ||||||||||||
Operating payroll and benefits | 296,924 | 23.5 | 256,724 | 22.5 | ||||||||||||
Other store operating expenses | 384,155 | 30.4 | 334,546 | 29.4 | ||||||||||||
General and administrative expenses | 61,521 | 4.9 | 59,565 | 5.2 | ||||||||||||
Depreciation and amortization expense | 118,275 | 9.3 | 102,766 | 9.0 | ||||||||||||
Pre-opening costs | 23,163 | 1.8 | 23,746 | 2.1 | ||||||||||||
Total operating costs | 1,104,301 | 87.3 | 974,019 | 85.5 | ||||||||||||
Operating income | 161,000 | 12.7 | 165,772 | 14.5 | ||||||||||||
Interest expense, net | 13,113 | 1.0 | 8,665 | 0.7 | ||||||||||||
Loss on debt retirement | — | — | 718 | 0.1 | ||||||||||||
Income before provision for income taxes | 147,887 | 11.7 | 156,389 | 13.7 | ||||||||||||
Provision for income taxes | 30,666 | 2.4 | 35,440 | 3.1 | ||||||||||||
Net income | $ | 117,221 | 9.3 | % | $ | 120,949 | 10.6 | % | ||||||||
Change in comparable store sales (1) | (1.6 | )% | (0.9 | )% | ||||||||||||
Company-owned stores open at end of period (2) | 121 | 106 | ||||||||||||||
Comparable stores open at end of period | 86 | 76 |
Fiscal Year Ended | Fiscal Year Ended | |||||||
February 3, 2019 | February 4, 2018 | |||||||
First Quarter | 6 | 4 | ||||||
Second Quarter | 5 | 4 | ||||||
Third Quarter | 1 | 1 | ||||||
Fourth Quarter | 3 | 5 | ||||||
15 | 14 |
Fiscal Year Ended | Fiscal Year Ended | |||||||||||||||
February 3, 2019 | February 4, 2018 | |||||||||||||||
Net income | $ | 117,221 | 9.3 | % | $ | 120,949 | 10.6 | % | ||||||||
Interest expense, net | 13,113 | 8,665 | ||||||||||||||
Loss on debt retirement | — | 718 | ||||||||||||||
Provision for income tax | 30,666 | 35,440 | ||||||||||||||
Depreciation and amortization expense | 118,275 | 102,766 | ||||||||||||||
EBITDA | 279,275 | 22.1 | % | 268,538 | 23.6 | % | ||||||||||
Loss on asset disposal | 1,121 | 1,863 | ||||||||||||||
Share-based compensation | 7,422 | 8,916 | ||||||||||||||
Pre-opening costs | 23,163 | 23,746 | ||||||||||||||
Other costs (1) | 136 | (333 | ) | |||||||||||||
Adjusted EBITDA | $ | 311,117 | 24.6 | % | $ | 302,730 | 26.6 | % | ||||||||
Fiscal Year Ended | Fiscal Year Ended | |||||||||||||||
February 3, 2019 | February 4, 2018 | |||||||||||||||
Operating income | 161,000 | 12.7 | % | $ | 165,772 | 14.5 | % | |||||||||
General and administrative expenses | 61,521 | 59,565 | ||||||||||||||
Depreciation and amortization expense | 118,275 | 102,766 | ||||||||||||||
Pre-opening costs | 23,163 | 23,746 | ||||||||||||||
Store Operating Income Before Depreciation and Amortization | 363,959 | 28.8 | % | $ | 351,849 | 30.9 | % | |||||||||
Fiscal Year Ended | Fiscal Year Ended | |||||||
February 3, 2019 | February 4, 2018 | |||||||
New store and operating initiatives | $ | 162,763 | $ | 185,449 | ||||
Games | 27,381 | 18,712 | ||||||
Maintenance capital | 20,821 | 19,160 | ||||||
Total capital additions | $ | 210,965 | $ | 223,321 | ||||
Payments from landlords | $ | 52,099 | $ | 40,334 |
Comparable stores | $ | (15,250 | ) | |
Comparable stores - impact of one less week | (17,551 | ) | ||
Non-comparable stores | 163,250 | |||
Other | (4,939 | ) | ||
Total | $ | 125,510 | ||
Fiscal Year Ended | ||||||||||||
February 2, 2020 | February 3, 2019 | February 4, 2018 | ||||||||||
Net cash provided by (used in): | ||||||||||||
Operating activities | $ | 288,946 | $ | 337,616 | $ | 264,672 | ||||||
Investing activities | (227,291 | ) | (203,808 | ) | (216,623 | ) | ||||||
Financing activities | (58,585 | ) | (131,018 | ) | (49,337 | ) |
1 Year | After 5 | |||||||||||||||||||
Total | or Less | 2-3 Years | 4-5 Years | Years | ||||||||||||||||
Credit Facility (1) | $ | 648,250 | $ | 15,000 | $ | 633,250 | $ | — | $ | — | ||||||||||
Interest requirements (2) | 56,251 | 22,481 | 33,770 | — | — | |||||||||||||||
Operating leases (3) | 2,023,656 | 125,624 | 259,664 | 243,373 | 1,394,995 | |||||||||||||||
Total | $ | 2,728,157 | $ | 163,105 | $ | 926,684 | $ | 243,373 | $ | 1,394,995 | ||||||||||
1 Year | After 5 | |||||||||||||||||||
Total | or Less | 2-3 Years | 4-5 Years | Years | ||||||||||||||||
Debt (1) | $ | 610,000 | $ | — | $ | — | $ | 610,000 | $ | — | ||||||||||
Interest requirements (2) | 216,067 | 47,753 | 93,041 | 75,273 | — | |||||||||||||||
Operating leases (3) | 2,049,535 | 132,037 | 273,801 | 269,403 | 1,374,294 | |||||||||||||||
Total | $ | 2,875,602 | $ | 179,790 | $ | 366,842 | $ | 954,676 | $ | 1,374,294 | ||||||||||
(1) | Available commitments under the revolving credit |
(2) | The cash obligations for the variable interest requirements on the outstanding balance of the revolving credit facility and the unused commitment are based on |
(3) | Our operating leases generally provide for one or more renewal options. These renewal options allow us to extend the term of the lease for a specified time at an established annual lease payment. Future obligations related to lease renewal options that have been exercised or were reasonably |
ITEM 7A. |
ITEM 8. |
ITEM 9. |
ITEM 9A. |
ITEM 9B. |
ITEM 10. |
ITEM 11. |
ITEM 12. |
ITEM 13. |
ITEM 14. |
ITEM 15. | Exhibits and Financial Statement Schedules |
(1) | Financial Statements |
(2) | Financial Statement Schedules |
Exhibit Number | Description | ||||
10.7 | |||||
10.8 | |||||
10.9 | |||||
10.10 | |||||
10.11 |
Exhibit Number | Description | ||||
10.18 | |||||
10.20 | Form of Restricted Stock Unit Agreement, by and between Dave & Buster’s Entertainment, Inc. and various employees of the Company (incorporated by reference to Exhibit 10.2 of the Registrant’s Current Report on Form 8-K filed on May 4, 2020 (No. 001-35664)) | ||||
21.1* | Subsidiaries of the Registrant | ||||
23.1* | Consent of KPMG LLP, Independent Registered Public Accounting Firm | ||||
24.1* | |||||
31.1* | |||||
31.2* | |||||
32.1* | |||||
32.2* | |||||
101.INS | XBRL Inline Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | ||||
XBRL | |||||
101.CAL | XBRL Inline Taxonomy Extension Calculation Linkbase Document | ||||
XBRL Inline Taxonomy Extension | |||||
101.LAB | XBRL Inline Taxonomy Extension Label Linkbase Document | ||||
XBRL Inline Taxonomy Extension | |||||
104 | |||||
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
* | Filed herein |
DAVE & BUSTER’S ENTERTAINMENT, INC., a Delaware Corporation | ||||||
Date: March 31, 2021 | By: | |||||
/s/ Scott J. Bowman | ||||||
Scott J. Bowman | ||||||
Chief Financial Officer |
By: | /s/ Brian A. Jenkins | Chief Executive Officer and Director | ||||||
Brian A. Jenkins | (Principal Executive Officer) | |||||||
By: | /s/ Scott J. Bowman | Chief Financial Officer | ||||||
Scott J. Bowman | (Principal Financial and Accounting Officer) | |||||||
By: | /s/ Stephen M. King | Chairman of the Board | ||||||
Stephen M. King | ||||||||
By: | /s/ | Director | ||||||
James Chambers | ||||||||
By: | /s/ Hamish A. Dodds | Director | ||||||
Hamish A. Dodds | ||||||||
By: | /s/ Michael J. Griffith | Director | ||||||
Michael J. Griffith | ||||||||
By: | /s/ Jonathan S. Halkyard | Director | ||||||
Jonathan S. Halkyard | ||||||||
By: | Director | |||||||
John C. Hockin |
By: | /s/ Patricia H. Mueller | Director | ||||||
Patricia H. Mueller | ||||||||
By: | /s/ Kevin M. Sheehan | Director | ||||||
Kevin M. Sheehan | ||||||||
By: | /s/ Jennifer Storms | Director | ||||||
Jennifer Storms |
February 2, 2020 | February 3, 2019 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 24,655 | $ | 21,585 | ||||
Inventories | 34,477 | 27,315 | ||||||
Prepaid expenses | 14,269 | 20,713 | ||||||
Income taxes receivable | 2,331 | 1,880 | ||||||
Other current assets | 3,245 | 19,600 | ||||||
Total current assets | 78,977 | 91,093 | ||||||
Property and equipment (net of $686,824 and $578,178 accumulated depreciation as of February 2, 2020 and February 3, 2019, respectively) | 900,637 | 805,337 | ||||||
Operating l ease right of use assets, net | 1,011,568 | — | ||||||
Deferred tax assets | 7,639 | 6,736 | ||||||
Tradenames | 79,000 | 79,000 | ||||||
Goodwill | 272,636 | 272,625 | ||||||
Other assets and deferred charges | 19,682 | 18,396 | ||||||
Total assets | $ | 2,370,139 | $ | 1,273,187 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Current installments of long-term debt | $ | 15,000 | $ | 15,000 | ||||
Accounts payable | 65,359 | 60,427 | ||||||
Accrued liabilities | 207,452 | 157,164 | ||||||
Income taxes payable | 3,054 | 11,799 | ||||||
Total current liabilities | 290,865 | 244,390 | ||||||
Deferred income taxes | 19,102 | 14,634 | ||||||
Deferred occupancy costs | — | 223,678 | ||||||
Operating lease liabilities | 1,222,054 | — | ||||||
Other liabilities | 35,779 | 24,179 | ||||||
Long-term debt, net | 632,689 | 378,469 | ||||||
Commitments and contingencies | ||||||||
Stockholders’ equity: | ||||||||
Common stock, par value $0.01; authorized: 400,000,000 shares; issued: 43,386,852 shares at February 2, 2020 and 43,177,476 shares at February 3, 2019; outstanding: 30,603,340 shares at February 2, 2020 and 37,522,085 shares at February 3, 2019 | 434 | 432 | ||||||
Preferred stock, 50,000,000 authorized; NaN issued | — | — | ||||||
Paid-in capital | 339,161 | 331,255 | ||||||
Treasury stock, 12,783,512 and 5,655,391 shares as of February 2, 2020 and February 3, 2019, respectively | (595,041 | ) | (297,129 | ) | ||||
Accumulated other comprehensive loss | (8,369 | ) | (683 | ) | ||||
Retained earnings | 433,465 | 353,962 | ||||||
Total stockholders’ equity | 169,650 | 387,837 | ||||||
Total liabilities and stockholders’ equity | $ | 2,370,139 | $ | 1,273,187 | ||||
January 31, | February 2, | |||||||
2021 | 2020 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 11,891 | $ | 24,655 | ||||
Inventories | 23,807 | 34,477 | ||||||
Prepaid expenses | 11,878 | 14,269 | ||||||
Income taxes receivable | 70,064 | 2,331 | ||||||
Other current assets | 1,231 | 3,245 | ||||||
Total current assets | 118,871 | 78,977 | ||||||
Property and equipment (net of $798,804 and $686,824 accumulated depreciation as of January 31, 2021 and February 2, 2020, respectively) | 815,027 | 900,637 | ||||||
Operating lease right of use assets, net | 1,037,569 | 1,011,568 | ||||||
Deferred tax assets | 5,874 | 7,639 | ||||||
Tradenames | 79,000 | 79,000 | ||||||
Goodwill | 272,597 | 272,636 | ||||||
Other assets and deferred charges | 23,886 | 19,682 | ||||||
Total assets | $ | 2,352,824 | $ | 2,370,139 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Current installments of long-term debt | $ | — | $ | 15,000 | ||||
Accounts payable | 36,400 | 65,359 | ||||||
Accrued liabilities | 234,790 | 207,452 | ||||||
Income taxes payable | 446 | 3,054 | ||||||
Total current liabilities | 271,636 | 290,865 | ||||||
Deferred income taxes | 13,658 | 19,102 | ||||||
Operating lease liabilities | 1,267,791 | 1,222,054 | ||||||
Other liabilities | 50,119 | 35,779 | ||||||
Long-term debt, net | 596,388 | 632,689 | ||||||
Commitments and contingencies | ||||||||
Stockholders’ equity: | ||||||||
Common stock, par value $0.01; authorized: 400,000,000 shares; issued: 60,488,833 shares at January 31, 2021 and 43,386,852 shares at February 2, 2020; outstanding: 47,646,606 shares at January 31, 2021 and 30,603,340 shares at February 2, 2020 | 605 | 434 | ||||||
Preferred stock, 50,000,000 authorized; NaN issued | — | — | ||||||
Paid-in capital | 531,191 | 339,161 | ||||||
Treasury stock, 12,842,227 and 12,783,512 shares as of January 31, 2021 and February 2, 2020, respectively | (595,970 | ) | (595,041 | ) | ||||
Accumulated other comprehensive loss | (9,085 | ) | (8,369 | ) | ||||
Retained earnings | 226,491 | 433,465 | ||||||
Total stockholders’ equity | 153,232 | 169,650 | ||||||
Total liabilities and stockholders’ equity | $ | 2,352,824 | $ | 2,370,139 | ||||
Fiscal Year Ended February 2, 2020 | Fiscal Year Ended February 3, 2019 | Fiscal Year Ended Fe 4,bruary 2018 | ||||||||||
Food and beverage revenues | $ | 563,576 | $ | 536,469 | $ | 494,816 | ||||||
Amusement and other revenues | 791,115 | 728,832 | 644,975 | |||||||||
Total revenues | 1,354,691 | 1,265,301 | 1,139,791 | |||||||||
Cost of food and beverage | 148,196 | 139,199 | 127,600 | |||||||||
Cost of amusement and other | 85,115 | 81,064 | 69,072 | |||||||||
Total cost of products | 233,311 | 220,263 | 196,672 | |||||||||
Operating payroll and benefits | 322,970 | 296,924 | 256,724 | |||||||||
Other store operating expenses | 429,431 | 384,155 | 334,546 | |||||||||
General and administrative expenses | 69,469 | 61,521 | 59,565 | |||||||||
Depreciation and amortization expense | 132,460 | 118,275 | 102,766 | |||||||||
Pre-opening costs | 18,971 | 23,163 | 23,746 | |||||||||
Total operating costs | 1,206,612 | 1,104,301 | 974,019 | |||||||||
Operating income | 148,079 | 161,000 | 165,772 | |||||||||
Interest expense, net | 20,937 | 13,113 | 8,665 | |||||||||
Loss on debt retirement | — | — | 718 | |||||||||
Income before provision for income taxes | 127,142 | 147,887 | 156,389 | |||||||||
Provision for income taxes | 26,879 | 30,666 | 35,440 | |||||||||
Net income | 100,263 | 117,221 | 120,949 | |||||||||
Unrealized foreign currency translation gain (loss) | (65 | ) | (434 | ) | 474 | |||||||
Unrealized loss of derivatives, net of tax | (7,621 | ) | — | — | ||||||||
Total other comprehensive income ( loss) | (7,686 | ) | (434 | ) | 474 | |||||||
Total comprehensive income | $ | 92,577 | $ | 116,787 | $ | 121,423 | ||||||
Net i ncome per share: | ||||||||||||
Basic | $ | 3.00 | $ | 3.00 | $ | 2.93 | ||||||
Diluted | $ | 2.94 | $ | 2.93 | $ | 2.84 | ||||||
Weighted average shares used in per share calculations: | ||||||||||||
Basic | 33,450,217 | 39,047,106 | 41,276,314 | |||||||||
Diluted | 34,099,378 | 39,975,122 | 42,583,009 |
Fiscal Year Ended January 31, 2021 | Fiscal Year Ended February 2, 2020 | Fiscal Year Ended February 3, 2019 | ||||||||||
Food and beverage revenues | $ | 159,501 | $ | 563,576 | $ | 536,469 | ||||||
Amusement and other revenues | 277,011 | 791,115 | 728,832 | |||||||||
Total revenues | 436,512 | 1,354,691 | 1,265,301 | |||||||||
Cost of food and beverage | 45,207 | 148,196 | 139,199 | |||||||||
Cost of amusement and other | 29,698 | 85,115 | 81,064 | |||||||||
Total cost of products | 74,905 | 233,311 | 220,263 | |||||||||
Operating payroll and benefits | 117,475 | 322,970 | 296,924 | |||||||||
Other store operating expenses | 299,464 | 429,431 | 384,155 | |||||||||
General and administrative expenses | 47,215 | 69,469 | 61,521 | |||||||||
Depreciation and amortization expense | 138,789 | 132,460 | 118,275 | |||||||||
Pre-opening costs | 11,276 | 18,971 | 23,163 | |||||||||
Total operating costs | 689,124 | 1,206,612 | 1,104,301 | |||||||||
Operating income (loss) | (252,612 | ) | 148,079 | 161,000 | ||||||||
Interest expense, net | 36,890 | 20,937 | 13,113 | |||||||||
Loss on debt refinance | 904 | — | — | |||||||||
Income (loss) before provision (benefit) for income taxes | (290,406 | ) | 127,142 | 147,887 | ||||||||
Provision (benefit) for income taxes | (83,432 | ) | 26,879 | 30,666 | ||||||||
Net income (loss) | (206,974 | ) | 100,263 | 117,221 | ||||||||
Unrealized foreign currency translation gain (loss) | 119 | (65 | ) | (434 | ) | |||||||
Unrealized loss on derivatives, net of tax | (835 | ) | (7,621 | ) | — | |||||||
Total other comprehensive loss | (716 | ) | (7,686 | ) | (434 | ) | ||||||
Total comprehensive income (loss) | $ | (207,690 | ) | $ | 92,577 | $ | 116,787 | |||||
Net income (loss) per share: | ||||||||||||
Basic | $ | (4.75 | ) | $ | 3.00 | $ | 3.00 | |||||
Diluted | $ | (4.75 | ) | $ | 2.94 | $ | 2.93 | |||||
Weighted average shares used in per share calculations: | ||||||||||||
Basic | 43,549,887 | 33,450,217 | 39,047,106 | |||||||||
Diluted | 43,549,887 | 34,099,378 | 39,975,122 |
Common Stock | Paid-In Capital | Treasury Stock At Cost | Accumulated Other Comprehensive Income (loss) | Retained Earnings | Total | |||||||||||||||||||||||||||
Shares | Amt. | Shares | Amt. | |||||||||||||||||||||||||||||
Balance January 29, 2017 | 42,469,570 | $ | 425 | $ | 310,230 | 264,983 | $ | (14,817 | ) | $ | (723 | ) | $ | 144,337 | $ | 439,452 | ||||||||||||||||
Net income | — | — | — | — | — | — | 120,949 | 120,949 | ||||||||||||||||||||||||
Unrealized foreign currency translation gain | — | — | — | — | — | 474 | — | 474 | ||||||||||||||||||||||||
Share-based compensation | — | — | 8,916 | — | — | — | — | 8,916 | ||||||||||||||||||||||||
Cumulative effect of a change in accounting principle | — | — | — | — | 782 | 782 | ||||||||||||||||||||||||||
Issuance of common stock | 191,236 | 2 | 1,342 | — | — | — | — | 1,344 | ||||||||||||||||||||||||
Repurchase of common stock | — | — | — | 2,636,616 | (151,913 | ) | — | — | (151,913 | ) | ||||||||||||||||||||||
Issuance of treasury stock | — | — | (342,878 | ) | 19,399 | — | (17,757 | ) | 1,642 | |||||||||||||||||||||||
Balance February 4, 2018 | 42,660,806 | 427 | 320,488 | 2,558,721 | (147,331 | ) | (249 | ) | 248,311 | 421,646 | ||||||||||||||||||||||
Net income | — | — | — | — | — | — | 117,221 | 117,221 | ||||||||||||||||||||||||
Unrealized foreign currency translation loss | — | — | — | — | — | (434 | ) | — | (434 | ) | ||||||||||||||||||||||
Dividends declared ($0.30 per share) | — | — | — | — | — | — | (11,570 | ) | (11,570 | ) | ||||||||||||||||||||||
Share-based compensation | — | — | 7,422 | — | — | — | — | 7,422 | ||||||||||||||||||||||||
Issuance of common stock | 516,670 | 5 | 3,345 | — | — | — | — | 3,350 | ||||||||||||||||||||||||
Repurchase of common stock | — | — | — | 3,096,670 | (149,798 | ) | — | — | (149,798 | ) | ||||||||||||||||||||||
Balance February 3, 2019 | 43,177,476 | 432 | 331,255 | 5,655,391 | (297,129 | ) | (683 | ) | 353,962 | 387,837 | ||||||||||||||||||||||
Cumulative effect of a change in accounting principle, net of tax | — | — | — | — | — | — | (145 | ) | (145 | ) | ||||||||||||||||||||||
Net income | — | — | — | — | — | — | 100,263 | 100,263 | ||||||||||||||||||||||||
Unrealized foreign currency translation loss | — | — | — | — | — | (65 | ) | — | (65 | ) | ||||||||||||||||||||||
Unrealized loss of derivatives, net of tax | — | — | — | — | — | (7,621 | ) | — | (7,621 | ) | ||||||||||||||||||||||
Dividends declared ($0.62 per share) | — | — | — | — | — | — | (20,615 | ) | (20,615 | ) | ||||||||||||||||||||||
Share-based compensation | — | — | 6,857 | — | — | — | — | 6,857 | ||||||||||||||||||||||||
Issuance of common stock | 209,376 | 2 | 1,049 | — | — | — | — | 1,051 | ||||||||||||||||||||||||
Repurchase of common stock | — | — | — | 7,128,121 | (297,912 | ) | — | — | (297,912 | ) | ||||||||||||||||||||||
Balance February 2, 2020 | 43,386,852 | $ | 434 | $ | 339,161 | 12,783,512 | $ | (595,041 | ) | $ | (8,369 | ) | $ | 433,465 | $ | 169,650 | ||||||||||||||||
Common Stock | Paid-In Capital | Treasury Stock At Cost | Accumulated Other Comprehensive Income (loss) | Retained Earnings | Total | |||||||||||||||||||||||||||
Shares | Amt. | Shares | Amt. | |||||||||||||||||||||||||||||
Balance February 4, 2018 | 42,660,806 | $ | 427 | $ | 320,488 | 2,558,721 | (147,331 | ) | (249 | ) | 248,311 | 421,646 | ||||||||||||||||||||
Net income | — | — | — | — | — | — | 117,221 | 117,221 | ||||||||||||||||||||||||
Unrealized foreign currency translation loss | — | — | — | — | — | (434 | ) | — | (434 | ) | ||||||||||||||||||||||
Dividends declared ($0.30 per share) | — | — | — | — | — | — | (11,570 | ) | (11,570 | ) | ||||||||||||||||||||||
Share-based compensation | — | — | 7,422 | — | — | — | — | 7,422 | ||||||||||||||||||||||||
Issuance of common stock | 516,670 | 5 | 3,345 | — | — | — | — | 3,350 | ||||||||||||||||||||||||
Repurchase of common stock | — | — | — | 3,096,670 | (149,798 | ) | — | — | (149,798 | ) | ||||||||||||||||||||||
Balance February 3, 2019 | 43,177,476 | 432 | 331,255 | 5,655,391 | (297,129 | ) | (683 | ) | 353,962 | 387,837 | ||||||||||||||||||||||
Cumulative effect of a change in accounting principle, net of tax | — | — | — | — | — | — | (145 | ) | (145 | ) | ||||||||||||||||||||||
Net income | — | — | — | — | — | — | 100,263 | 100,263 | ||||||||||||||||||||||||
Unrealized foreign currency translation loss | — | — | — | — | — | (65 | ) | — | (65 | ) | ||||||||||||||||||||||
Unrealized loss on derivatives, net of tax | — | — | — | — | — | (7,621 | ) | — | (7,621 | ) | ||||||||||||||||||||||
Dividends declared ($0.62 per share) | — | — | — | — | — | — | (20,615 | ) | (20,615 | ) | ||||||||||||||||||||||
Share-based compensation | — | — | 6,857 | — | — | — | — | 6,857 | ||||||||||||||||||||||||
Issuance of common stock | 209,376 | 2 | 1,049 | — | — | — | — | 1,051 | ||||||||||||||||||||||||
Repurchase of common stock | — | — | — | 7,128,121 | (297,912 | ) | — | — | (297,912 | ) | ||||||||||||||||||||||
Balance February 2, 2020 | 43,386,852 | 434 | 339,161 | 12,783,512 | (595,041 | ) | (8,369 | ) | 433,465 | 169,650 | ||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (206,974 | ) | (206,974 | ) | ||||||||||||||||||||||
Unrealized foreign currency translation gain | — | — | — | — | — | 119 | — | 119 | ||||||||||||||||||||||||
Unrealized loss on derivatives, net of tax | — | — | — | — | — | (835 | ) | — | (835 | ) | ||||||||||||||||||||||
Share-based compensation | — | — | 6,985 | — | — | — | — | 6,985 | ||||||||||||||||||||||||
Issuance of common stock | 17,101,981 | 171 | 185,045 | — | — | — | — | 185,216 | ||||||||||||||||||||||||
Repurchase of common stock | — | — | — | 58,715 | (929 | ) | — | — | (929 | ) | ||||||||||||||||||||||
Balance January 31, 2021 | 60,488,833 | $ | 605 | $ | 531,191 | 12,842,227 | $ | (595,970 | ) | $ | (9,085 | ) | $ | 226,491 | $ | 153,232 | ||||||||||||||||
Fiscal Year Ended February 2, 2020 | Fiscal Year Ended February 3, 2019 | Fiscal Year Ended February 4, 2018 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net income | $ | 100,263 | $ | 117,221 | $ | 120,949 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Depreciation and amortization expense | 132,460 | 118,275 | 102,766 | |||||||||
Deferred taxes | 6,473 | 5,474 | (8,845 | ) | ||||||||
Loss on debt refinancing | — | — | 718 | |||||||||
Loss on disposal of fixed assets | 1,813 | 1,121 | 1,863 | |||||||||
Share-based compensation | 6,857 | 7,422 | 8,916 | |||||||||
Other, net | 1,070 | 1,049 | 881 | |||||||||
Changes in assets and liabilities: | ||||||||||||
Inventories | (7,162 | ) | 245 | (5,700 | ) | |||||||
Prepaid expenses | (2,162 | ) | (1,661 | ) | (3,224 | ) | ||||||
Income tax receivable | (451 | ) | 2,987 | 1,034 | ||||||||
Other current assets | 5,320 | 4,705 | (13,361 | ) | ||||||||
Other assets and deferred charges | (1,017 | ) | (2,523 | ) | (224 | ) | ||||||
Accounts payable | 2,026 | 11,122 | (4,071 | ) | ||||||||
Accrued liabilities | 47,896 | 21,329 | 22,394 | |||||||||
Income taxes payable | (8,745 | ) | 8,762 | 345 | ||||||||
Deferred occupancy costs | — | 38,958 | 37,702 | |||||||||
Other liabilities | 4,305 | 3,130 | 2,529 | |||||||||
Net cash provided by operating activities | 288,946 | 337,616 | 264,672 | |||||||||
Cash flows from investing activities: | ||||||||||||
Capital expenditures | (228,091 | ) | (216,286 | ) | (219,901 | ) | ||||||
Proceeds from sale-leaseback transactions | — | 11,571 | — | |||||||||
Proceeds from insurance | — | 541 | — | |||||||||
Proceeds from sales of property and equipment | 800 | 366 | 78 | |||||||||
Collections on notes receivable | — | — | 3,200 | |||||||||
Net cash used in investing activities | (227,291 | ) | (203,808 | ) | (216,623 | ) | ||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from debt | 406,000 | 265,000 | 509,000 | |||||||||
Payments of debt | (152,000 | ) | (238,000 | ) | (406,500 | ) | ||||||
Debt issuance costs | — | — | (2,910 | ) | ||||||||
Repurchase of common stock | (297,317 | ) | (149,125 | ) | (151,913 | ) | ||||||
Repurchases of common stock to satisfy employee withholding tax obligations | (595 | ) | (673 | ) | — | |||||||
Dividends paid | (15,724 | ) | (11,570 | ) | — | |||||||
Proceeds from the exercise of stock options | 1,051 | 3,350 | 1,344 | |||||||||
Proceeds from issuance of treasury stock | — | — | 1,642 | |||||||||
Net cash used in financing activities | (58,585 | ) | (131,018 | ) | (49,337 | ) | ||||||
Increase (decrease) in cash and cash equivalents | 3,070 | 2,790 | (1,288 | ) | ||||||||
Beginning cash and cash equivalents | 21,585 | 18,795 | 20,083 | |||||||||
Ending cash and cash equivalents | $ | 24,655 | $ | 21,585 | $ | 18,795 | ||||||
Supplemental disclosures of cash flow information: | ||||||||||||
Increase (decrease) in fixed asset accounts payable | $ | 2,906 | $ | (5,321 | ) | $ | 3,420 | |||||
Cash paid for income taxes, net | $ | 27,245 | $ | 13,464 | $ | 43,072 | ||||||
Cash paid for interest, net | $ | 20,115 | $ | 12,247 | $ | 7,853 | ||||||
Dividend s declared, not paid | $ | 4,891 | $ | — | $ | — |
Fiscal Year Ended January 31, 2021 | Fiscal Year Ended February 2, 2020 | Fiscal Year Ended February 3, 2019 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net income (loss) | $ | (206,974 | ) | $ | 100,263 | $ | 117,221 | |||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||
Depreciation and amortization expense | 138,789 | 132,460 | 118,275 | |||||||||
Non-cash interest expense | 5,974 | — | — | |||||||||
Impairment of long-lived assets | 12,248 | — | — | |||||||||
Deferred taxes | (3,365 | ) | 6,473 | 5,474 | ||||||||
Loss on debt refinance | 904 | — | — | |||||||||
Loss on disposal of fixed assets | 577 | 1,813 | 1,121 | |||||||||
Share-based compensation | 6,985 | 6,857 | 7,422 | |||||||||
Other, net | 2,033 | 1,070 | 1,049 | |||||||||
Changes in assets and liabilities: | ||||||||||||
Inventories | 10,670 | (7,162 | ) | 245 | ||||||||
Prepaid expenses | 2,993 | (2,162 | ) | (1,661 | ) | |||||||
Income tax receivable | (67,733 | ) | (451 | ) | 2,987 | |||||||
Other current assets | 2,014 | 5,320 | 4,705 | |||||||||
Other assets and deferred charges | 484 | (1,017 | ) | (2,523 | ) | |||||||
Accounts payable | (9,576 | ) | 2,026 | 11,122 | ||||||||
Accrued liabilities | 56,757 | 47,896 | 21,329 | |||||||||
Income taxes payable | (2,608 | ) | (8,745 | ) | 8,762 | |||||||
Deferred occupancy costs | — | — | 38,958 | |||||||||
Other liabilities | 604 | 4,305 | 3,130 | |||||||||
Net cash provided by (used in) operating activities | (49,224 | ) | 288,946 | 337,616 | ||||||||
Cash flows from investing activities: | ||||||||||||
Capital expenditures | (83,016 | ) | (228,091 | ) | (216,286 | ) | ||||||
Proceeds from sale-leaseback transactions | — | — | 11,571 | |||||||||
Proceeds from insurance | 595 | — | 541 | |||||||||
Proceeds from sales of property and equipment | 461 | 800 | 366 | |||||||||
Net cash used in investing activities | (81,960 | ) | (227,291 | ) | (203,808 | ) | ||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from debt | 732,000 | 406,000 | 265,000 | |||||||||
Payments of debt | (770,250 | ) | (152,000 | ) | (238,000 | ) | ||||||
Debt issuance costs | (20,209 | ) | — | — | ||||||||
Net proceeds from the issuance of common stock | 182,207 | — | — | |||||||||
Repurchase of common stock under share repurchase program | — | (297,317 | ) | (149,125 | ) | |||||||
Repurchases of common stock to satisfy employee withholding tax obligations | (929 | ) | (595 | ) | (673 | ) | ||||||
Dividends paid | (4,891 | ) | (15,724 | ) | (11,570 | ) | ||||||
Proceeds from the exercise of stock options | 492 | 1,051 | 3,350 | |||||||||
Net cash provided by (used in) financing activities | 118,420 | (58,585 | ) | (131,018 | ) | |||||||
Increase (decrease) in cash and cash equivalents | (12,764 | ) | 3,070 | 2,790 | ||||||||
Beginning cash and cash equivalents | 24,655 | 21,585 | 18,795 | |||||||||
Ending cash and cash equivalents | $ | 11,891 | $ | 24,655 | $ | 21,585 | ||||||
Supplemental disclosures of cash flow information: | ||||||||||||
Increase (decrease) for capital expenditures in accounts payable | $ | (19,383 | ) | $ | 2,906 | $ | (5,321 | ) | ||||
Cash paid (received) for income taxes, net | $ | (9,352 | ) | $ | 27,245 | $ | 13,464 | |||||
Cash paid for interest, net | $ | 17,916 | $ | 20,115 | $ | 12,247 | ||||||
Dividends declared, not paid | $ | — | $ | 4,891 | $ | — |
Estimated Depreciable Lives (In Years) | ||||
Building and building improvements | 5-40 | |||
Leasehold improvements | 5-20 | |||
Furniture, fixtures and equipment | 3-10 | |||
Games | 3-20 |
Fair Value | ||||||||
February 2, | ||||||||
Derivatives designated as hedging instruments: | ||||||||
Interest rate swaps | Accrued liabilities | $ | (3,518 | ) | ||||
Interest rate swaps | Other liabilities | (6,967 | ) | |||||
Total derivatives | $ | (10,485 | ) | |||||
Fair Value | ||||||||||||
Balance Sheet Location | January 31, 2021 | February 2, 2020 | ||||||||||
Derivatives designated as hedging instruments: | ||||||||||||
Interest rate swaps | Accrued liabilities | $ | (8,350 | ) | $ | (3,518 | ) | |||||
Interest rate swaps | Other liabilities | (4,416 | ) | (6,967 | ) | |||||||
Total derivatives (1) | $ | (12,766 | ) | $ | (10,485 | ) | ||||||
(1) | The balance at January 31, 2021 relates to our swap agreements after hedge accounting was discontinued. |
February 2, | ||||
Loss recognized in accumulated other comprehensive loss | $ | (10,485 | ) | |
Loss reclassified from accumulated other comprehensive loss into net earnings | $ | 969 | ||
Income tax benefit of interest rate swaps in accumulated other comprehensive loss | $ | 2,864 |
January 31, 2021 | February 2, 2020 | |||||||
Amount of loss recorded in accumulated other comprehensive income | $ | 7,602 | $ | 11,454 | ||||
Amount of loss reclassified into income (1) | $ | (6,453 | ) | $ | (969 | ) | ||
Income tax expense (benefit) in accumulated other comprehensive income | $ | (314 | ) | $ | (2,864 | ) |
(1) | Amounts reclassified into |
January 31, 2021 | February 2, 2020 | February 3, 2019 | ||||||||||
Basic weighted average shares outstanding | 43,549,887 | 33,450,217 | 39,047,106 | |||||||||
Weighted average dilutive impact of awards (1) | — | 649,161 | 928,016 | |||||||||
Diluted weighted average shares outstanding | 43,549,887 | 34,099,378 | 39,975,122 |
(1) | Amounts exclude all potential common and common equivalent shares for periods when there is a net loss. |
February 2, | February 3, | |||||||
Operating store - food and beverage | $ | 7,950 | $ | 7,617 | ||||
Operating store - amusement | 9,585 | 9,258 | ||||||
Corporate - | 16,942 | 10,440 | ||||||
$ | 34,477 | $ | 27,315 | |||||
January 31, 2021 | February 2, 2020 | |||||||
Operating store—food and beverage | $ | 4,175 | $ | 7,950 | ||||
Operating store—amusement | 8,640 | 9,585 | ||||||
Corporate—amusement, supplies and other | 10,992 | 16,942 | ||||||
$ | 23,807 | $ | 34,477 | |||||
February 2, | February 3, | |||||||
Land | $ | 9,021 | $ | 2,444 | ||||
Buildings and building improvements | 23,484 | 17,153 | ||||||
Leasehold improvements | 793,698 | 698,328 | ||||||
Furniture, fixtures and equipment | 412,716 | 338,605 | ||||||
Games | 286,195 | 251,819 | ||||||
Construction in progress | 62,347 | 75,166 | ||||||
Total cost | 1,587,461 | 1,383,515 | ||||||
Accumulated depreciation | (686,824 | ) | (578,178 | ) | ||||
Property and equipment, net | $ | 900,637 | $ | 805,337 | ||||
January 31, 2021 | February 2, 2020 | |||||||
Land | $ | 12,302 | $ | 9,021 | ||||
Buildings and building improvements | 37,417 | 23,484 | ||||||
Leasehold improvements | 805,229 | 793,698 | ||||||
Furniture, fixtures and equipment | 430,331 | 412,716 | ||||||
Games | 295,170 | 286,195 | ||||||
Construction in progress | 33,382 | 62,347 | ||||||
Total cost | 1,613,831 | 1,587,461 | ||||||
Accumulated depreciation | (798,804 | ) | (686,824 | ) | ||||
Property and equipment, net | $ | 815,027 | $ | 900,637 | ||||
February 2, | February 3, | |||||||
Deferred amusement revenue | $ | 75,113 | $ | 64,143 | ||||
Current portion of operating lease liabilities, net ( 1 ) | 45,611 | — | ||||||
Current portion of deferred occupancy costs | — | 15,737 | ||||||
Compensation and benefits | 23,421 | 24,280 | ||||||
Deferred gift card revenue | 11,253 | 9,450 | ||||||
Property taxes | 7,226 | 7,278 | ||||||
Current portion of long-term insurance | 6,500 | 5,900 | ||||||
Dividend payable | 4,891 | — | ||||||
Utilities | 4,442 | 4,032 | ||||||
Customer deposits | 4,324 | 3,731 | ||||||
Sales and use taxes | 4,000 | 5,226 | ||||||
Current portion of derivatives | 3,518 | — | ||||||
Inventory liabilities | 2,179 | 2,876 | ||||||
Variable rent liabilities | 1,331 | 2,245 | ||||||
Other (Note 10) | 13,643 | 12,266 | ||||||
Total accrued liabilities | $ | 207,452 | $ | 157,164 | ||||
January 31, 2021 | February 2, 2020 | |||||||
Deferred amusement revenue | $ | 78,852 | $ | 75,113 | ||||
Current portion of operating lease liabilities, net (1) | 46,471 | 45,611 | ||||||
Current portion of deferred occupancy costs | 36,121 | 0 | ||||||
Compensation and benefits | 13,846 | 23,421 | ||||||
Accrued interest | 11,321 | 648 | ||||||
Deferred gift card revenue | 10,918 | 11,253 | ||||||
Current portion of derivatives | 8,350 | 3,518 | ||||||
Property taxes | 8,149 | 7,226 | ||||||
Current portion of long-term insurance | 5,100 | 6,500 | ||||||
Utilities | 4,151 | 4,442 | ||||||
Sales and use taxes | 1,385 | 4,000 | ||||||
Customer deposits | 1,373 | 4,324 | ||||||
Dividend payable | 0 | 4,891 | ||||||
Other (Note 10) | 8,753 | 16,505 | ||||||
Total accrued liabilities | $ | 234,790 | $ | 207,452 | ||||
(1) | The balance of leasehold incentive receivables of $8,763 and $6,339 at January 31, 2021 and February 2, 2020, respectively, is reflected as a reduction of the current portion of operating lease liabilities. |
February 2, | February 3, | |||||||
Credit Facility - term | $ | 266,250 | $ | 281,250 | ||||
Credit Facility - revolver | 382,000 | 113,000 | ||||||
Total debt outstanding | 648,250 | 394,250 | ||||||
Less current installments - term | (15,000 | ) | (15,000 | ) | ||||
Less debt issuance costs - term | (561 | ) | (781 | ) | ||||
Long-term debt, net | $ | 632,689 | $ | 378,469 | ||||
January 31, 2021 | February 2, 2020 | |||||||
Credit Facility—term | $ | 0 | $ | 266,250 | ||||
Credit Facility—revolver | 60,000 | 382,000 | ||||||
Senior secured notes | 550,000 | 0 | ||||||
Total debt outstanding | 610,000 | 648,250 | ||||||
Less current installments | — | (15,000 | ) | |||||
Less debt issuance costs | (13,612 | ) | (561 | ) | ||||
Long-term debt, net | $ | 596,388 | $ | 632,689 | ||||
2020 | $ | 15,000 | ||
2021 | 15,000 | |||
2022 | 618,250 | |||
Total future payments | $ | 648,250 | ||
2024 | $ | 60,000 | ||
2025 | 550,000 | |||
Total future payments | $ | 610,000 | ||
February 2, | February 3, | February 4, | ||||||||||
Interest expense on credit facilities | $ | 21,246 | $ | 13,408 | $ | 8,697 | ||||||
Amortization of issuance cost | 792 | 792 | 739 | |||||||||
Interest income | (119 | ) | (136 | ) | (224 | ) | ||||||
Capitalized interest | (982 | ) | (1,009 | ) | (786 | ) | ||||||
Change in fair value of interest rate cap | — | 58 | 239 | |||||||||
Total interest expense, net | $ | 20,937 | $ | 13,113 | $ | 8,665 | ||||||
January 31, 2021 | February 2, 2020 | February 3, 2019 | ||||||||||
Interest expense on debt | $ | 29,124 | $ | 20,277 | $ | 13,408 | ||||||
Interest associated with swap agreements | 6,453 | 969 | 0 | |||||||||
Amortization of issuance cost | 2,184 | 792 | 792 | |||||||||
Interest income | (22 | ) | (119 | ) | (136 | ) | ||||||
Capitalized interest | (849 | ) | (982 | ) | (1,009 | ) | ||||||
Change in fair value of interest rate cap | 0 | 0 | 58 | |||||||||
Total interest expense, net | $ | 36,890 | $ | 20,937 | $ | 13,113 | ||||||
February 2, | February 3 ,9 | February 4, | ||||||||||
Current provision: | ||||||||||||
Federal | $ | 11,744 | $ | 13,456 | $ | 35,195 | ||||||
State and local | 8,562 | 10,730 | 9,112 | |||||||||
Foreign | 100 | 1,006 | (22 | ) | ||||||||
Total current provision | 20,406 | 25,192 | 44,285 | |||||||||
Deferred provision (benefit): | ||||||||||||
Federal | 7,109 | 5,029 | (5,697 | ) | ||||||||
State and local | (365 | ) | (228 | ) | (2,885 | ) | ||||||
Foreign | (271 | ) | 673 | (263 | ) | |||||||
Total deferred provision (benefit) | 6,473 | 5,474 | (8,845 | ) | ||||||||
Provision for income taxes | $ | 26,879 | $ | 30,666 | $ | 35,440 | ||||||
January 31, 2021 | February 2, 2020 | February 3, 2019 | ||||||||||
Current provision: | ||||||||||||
Federal | $ | (78,629 | ) | $ | 11,744 | $ | 13,456 | |||||
State and local | (1,360 | ) | 8,562 | 10,730 | ||||||||
Foreign | (78 | ) | 100 | 1,006 | ||||||||
Total current provision | (80,067 | ) | 20,406 | 25,192 | ||||||||
Deferred provision (benefit): | ||||||||||||
Federal | (5,415 | ) | 7,109 | 5,029 | ||||||||
State and local | 1,951 | (365 | ) | (228 | ) | |||||||
Foreign | 99 | (271 | ) | 673 | ||||||||
Total deferred provision (benefit) | (3,365 | ) | 6,473 | 5,474 | ||||||||
Provision for income taxes | $ | (83,432 | ) | $ | 26,879 | $ | 30,666 | |||||
February 2, 2020 | February 3, 2019 | February 4, 2018 | ||||||||||
Federal corporate statutory rate | 21.0 | % | 21.0 | % | 33.7 | % | ||||||
State and local income taxes, net of federal benefit | 5.4 | % | 5.3 | % | 3.8 | % | ||||||
Permanent differences | 1.5 | % | 1.2 | % | 1.4 | % | ||||||
Tax credits | (6.4 | )% | (5.0 | )% | (4.0 | )% | ||||||
Share-based compensation | (0.9 | )% | (3.4 | )% | (7.3 | )% | ||||||
Impacts related to the Tax Act | — | % | — | % | (5.1 | )% | ||||||
Other | 0.5 | % | 1.6 | % | 0.2 | % | ||||||
Effective tax rate | 21.1 | % | 20.7 | % | 22.7 | % | ||||||
January 31, 2021 | February 2, 2020 | February 3, 2019 | ||||||||||
Federal income tax rate | 21.0 | % | 21.0 | % | 21.0 | % | ||||||
State and local income taxes, net of federal benefit | 2.7 | % | 5.4 | % | 5.3 | % | ||||||
Permanent differences | (0.2 | ) % | 1.5 | % | 1.2 | % | ||||||
Tax credits | 0.7 | % | (6.4 | )% | (5.0 | )% | ||||||
Share-based compensation | (0.2 | ) % | (0.9 | )% | (3.4 | )% | ||||||
Impact of net operating loss carryback | 7.5 | % | — | % | — | % | ||||||
Other | (2.8 | ) % | 0.5 | % | 1.6 | % | ||||||
Effective tax rate | 28.7 | % | 21.1 | % | 20.7 | % | ||||||
February 2, 2020 | February 3, 2019 | |||||||
Deferred tax assets: | ||||||||
Deferred revenu e | $ | 21,961 | $ | 18,503 | ||||
Operating lease liability | 355,566 | 16,678 | ||||||
Accrued liabilities | 3,744 | 5,510 | ||||||
Workers compensation and general liability insurance | 4,397 | 4,103 | ||||||
Share-based compensation | 6,740 | 5,991 | ||||||
Hedging transactions | 2,864 | — | ||||||
Net operating loss carryovers | 2,817 | 3,177 | ||||||
Indirect benefit of unrecognized tax benefits | 525 | 574 | ||||||
Other | 3,209 | 2,431 | ||||||
Total | 401,823 | 56,967 | ||||||
Valuation allowance | (2,620 | ) | (1,341 | ) | ||||
Total deferred tax assets, net of valuation allowance | 399,203 | 55,626 | ||||||
Deferred tax liabilities: | ||||||||
Trademark/tradename | (21,583 | ) | (21,498 | ) | ||||
Property and equipment | (108,685 | ) | (40,171 | ) | ||||
Operating lease right of use asset | (279,812 | ) | — | |||||
Other | (586 | ) | (1,855 | ) | ||||
Total deferred tax liabilities | (410,666 | ) | (63,524 | ) | ||||
Net deferred income tax liability | $ | (11,463 | ) | $ | (7,898 | ) | ||
Reported as: | ||||||||
Deferred tax assets, net - noncurrent | 7,639 | 6,736 | ||||||
Deferred tax liabilities, net - noncurrent | (19,102 | ) | (14,634 | ) | ||||
Net deferred income tax liability | $ | (11,463 | ) | $ | (7,898 | ) | ||
January 31, 2021 | February 2, 2020 | |||||||
Deferred revenue | $ | 24,136 | $ | 21,961 | ||||
Operating lease liability | 383,378 | 355,566 | ||||||
Accrued liabilities | 1,332 | 3,744 | ||||||
Workers compensation and general liability insurance | 3,923 | 4,397 | ||||||
Share-based compensation | 7,236 | 6,740 | ||||||
Hedging transactions | 3,488 | 2,864 | ||||||
Net operating loss carryovers | 10,303 | 2,817 | ||||||
Tax credit carryovers | 3,054 | 810 | ||||||
Indirect benefit of unrecognized tax benefits | 639 | 525 | ||||||
Other | 5,549 | 2,399 | ||||||
Total deferred tax assets | 443,038 | 401,823 | ||||||
Trademark/tradename | (21,583 | ) | (21,583 | ) | ||||
Property and equipment | (127,969 | ) | (108,685 | ) | ||||
Operating lease right of use asset | (287,030 | ) | (279,812 | ) | ||||
Other | (493 | ) | (586 | ) | ||||
Total deferred tax liabilitie s | (437,075 | ) | (410,666 | ) | ||||
Net deferred tax asset (liability) before valuation allowance | 5,963 | (8,843 | ) | |||||
Valuation allowanc e | (13,747 | ) | (2,620 | ) | ||||
Net deferred tax liability | $ | (7,784 | ) | $ | (11,463 | ) | ||
February 2, 2020 | February 3, 2019 | February 4, 2018 | ||||||||||
Balance at beginning of year | $ | 2,333 | $ | 1,568 | $ | 1,348 | ||||||
Additions for tax positions of prior years | 463 | 435 | — | |||||||||
Reductions for tax positions of prior years | (44 | ) | (30 | ) | (31 | ) | ||||||
Additions for tax positions of current year | 450 | 437 | 290 | |||||||||
Settlements with taxing authorities | (390 | ) | — | — | ||||||||
Lapse of statute of limitations | (732 | ) | (77 | ) | (39 | ) | ||||||
Balance at end of year | $ | 2,080 | $ | 2,333 | $ | 1,568 |
January 31, 2021 | February 2, 2020 | February 3, 2019 | ||||||||||
Balance at beginning of year | $ | 2,080 | $ | 2,333 | $ | 1,568 | ||||||
Additions for tax positions of prior years | 28 | 463 | 435 | |||||||||
Reductions for tax positions of prior years | — | (44 | ) | (30 | ) | |||||||
Additions for tax positions of current year | 660 | 450 | 437 | |||||||||
Settlements with taxing authorities | — | (390 | ) | — | ||||||||
Lapse of statute of limitations | (204 | ) | (732 | ) | (77 | ) | ||||||
Balance at end of year | $ | 2,564 | $ | 2,080 | $ | 2,333 | ||||||
February 2, | ||||
Operating lease cost | $ | 124,065 | ||
Variable lease cost | 30,009 | |||
Short-term lease cost (1) | 435 | |||
Total lease cost | $ | 154,509 | ||
January 31, 2021 | February 2, 2020 | |||||||
Operating lease cost | $ | 132,658 | $ | 124,065 | ||||
Variable lease cost | 25,360 | 30,009 | ||||||
Short-term lease cost (1) | 457 | 435 | ||||||
Total lease cost | $ | 158,475 | $ | 154,509 | ||||
(1) | We have elected the short-term lease recognition exemption for all applicable classes of underlying assets. Leases with an initial term of 12 months or less, that do not include a purchase option that we are reasonably certain to exercise, are not recorded on the Consolidated Balance Sheet. |
February 2, | ||||
Cash paid for operating lease liabilities | $ | 123,748 | ||
ROU assets obtained in exchange for new operating lease liabilities (1) | $ | 220,648 | ||
Weighted-average remaining lease term - operating leases (in years) | 15.7 | |||
Weighted-average discount rate - operating leases | 5.90 | % |
2021 | $ | 125,624 | ||
2022 | 133,289 | |||
2023 | 126,375 | |||
2024 | 122,836 | |||
2025 | 120,537 | |||
Thereafter | 1,394,995 | |||
Total future operating lease liability | $ | 2,023,656 | ||
Less: amount representing interest | 749,652 | |||
Present value of operating lease liabilities | $ | 1,274,004 |
February 3, 2019 | February 4, 2018 | |||||||
Base rentals | $ | 109,481 | $ | 93,387 | ||||
Contingent rentals | 3,526 | 3,427 | ||||||
Total rent expense | $ | 113,007 | $ | 96,814 | ||||
January 31, 2021 | February 2, 2020 | |||||||
Cash paid for operating lease liabilities | $ | 77,292 | $ | 123,748 | ||||
ROU assets obtained in exchange for new operating lease liabilities (1) | $ | 98,218 | $ | 220,648 | ||||
Weighted-average remaining lease term - operating leases (in years) | 14.8 | 15.7 | ||||||
Weighted-average discount rate - operating leases | 5.94 | % | 5.90 | % |
(1) | Excludes the transition adjustment at adoption of Topic 842 in fiscal 2019. |
2019 | $ | 122,501 | ||
2020 | 117,908 | |||
2021 | 111,642 | |||
2022 | 104,195 | |||
2023 | 100,779 | |||
Ther e after | 1,229,803 | |||
Total | $ | 1,786,828 | ||
2022 | $ | 132,037 | ||
2023 | 138,413 | |||
2024 | 135,388 | |||
2025 | 134,488 | |||
2026 | 134,915 | |||
Thereafter | 1,374,294 | |||
Total future operating lease liability | $ | 2,049,535 | ||
Less: interest | (726,510 | ) | ||
Present value of operating lease liabilities | $ | 1,323,025 | ||
Fiscal 2019 | Fiscal 2018 | Fiscal 2017 | ||||||||||
Total number of shares repurchased | 7,116,585 | 3,080,419 | 2,636,616 | |||||||||
Average price paid per share | $ | 41.78 | $ | 48.41 | $ | 57.62 | ||||||
To t al cash paid for share repurchases | $ | 297,317 | $ | 149,125 | $ | 151,913 |
Fiscal 2019 | Fiscal 2018 | Fiscal 2017 | ||||||||||
Volatility | 34.2 | % | 32.7 | % | 32.9 | % | ||||||
Risk free interest rate | 2.34 | % | 2.73 | % | 2.00 | % | ||||||
Expected dividend yield | 1.15 | % | 0.00 | % | 0.00 | % | ||||||
Expected term – in years | 6.0 | 6.0 | 6.0 | |||||||||
Weighted average grant-date fair value | $ | 16.93 | $ | 15.36 | $ | 20.54 |
Fiscal 2019 | Fiscal 2018 | |||||||
Volatility | 34.2 | % | 32.7 | % | ||||
Risk free interest rate | 2.34 | % | 2.73 | % | ||||
Expected dividend yield | 1.15 | % | 0.00 | % | ||||
Expected term – in years | 6.0 | 6.0 | ||||||
Weighted average grant-date fair value | $ | 16.93 | $ | 15.36 |
2014 Stock Incentive Plan | 2010 Stock Incentive Plan | |||||||||||||||
Number of Options | Weighted Average Exercise Price | Number of Options | Weighted Average Exercise Price | |||||||||||||
Outstanding at February 3, 2019 | 1,134,218 | $ | 34.22 | 359,984 | $ | 6.48 | ||||||||||
Granted | 222,266 | 52.04 | — | — | ||||||||||||
Exercised | (13,887 | ) | 36.87 | (93,084 | ) | 5.79 | ||||||||||
Forfeited | (19,102 | ) | 49.43 | — | — | |||||||||||
Outstanding at February 2, 2020 | 1,323,495 | 36.97 | 266,900 | 6.72 | ||||||||||||
Exercisable at February 2, 2020 | 922,734 | $ | 31.49 | 266,900 | $ | 6.72 | ||||||||||
2014 Stock Incentive Plan | 2010 Stock Incentive Plan | |||||||||||||||
Number of Options | Weighted Average Exercise Price | Number of Options | Weighted Average Exercise Price | |||||||||||||
Outstanding at February 2, 2020 | 1,323,495 | $ | 36.97 | 266,900 | $ | 6.72 | ||||||||||
Granted | — | — | — | — | ||||||||||||
Exercised | — | — | (93,337 | ) | 5.27 | |||||||||||
Forfeited | (91,894 | ) | 39.56 | — | — | |||||||||||
Outstanding at January 31, 2021 | 1,231,601 | 36.77 | 173,563 | 7.51 | ||||||||||||
Exercisable at January 31, 2021 | 1,043,759 | $ | 34.60 | 173,563 | $ | 7.51 | ||||||||||
Shares | Weighted Avg Grant Date Fair Value | |||||||
Outstanding at February 3, 2019 | 220,830 | $ | 47.79 | |||||
Granted | 76,602 | 51.44 | ||||||
Change in units based on performance | 27,372 | 39.10 | ||||||
Vested | (102,405 | ) | 40.08 | |||||
Forfeited | (5,584 | ) | 49.53 | |||||
Outstanding at February 2, 2020 | 216,815 | $ | 51.58 | |||||
Shares | Weighted Avg Grant Date Fair Value | |||||||
Outstanding at February 2, 2020 | 216,815 | $ | 51.58 | |||||
Granted | 1,064,336 | 12.75 | ||||||
Change in units based on performance | 4,352 | 59.67 | ||||||
Vested | (104,752 | ) | 38.50 | |||||
Forfeited | (64,410 | ) | 25.58 | |||||
Outstanding at January 31, 202 1 | 1,116,341 | $ | 17.32 | |||||
February 2, 2020 | February 3, 2019 | Februa r y 4, 2018 | ||||||||||
Numerator: | ||||||||||||
Net income | $ | 100,263 | $ | 117,221 | $ | 120,949 | ||||||
Denominator: | ||||||||||||
Weighted average number of common shares outstanding (basic) | 33,450,217 | 39,047,106 | 41,276,314 | |||||||||
Weighted average dilutive impact of equity-based awards | 649,161 | 928,016 | 1,306,695 | |||||||||
Weighted average number of common and common equivalent shares outstanding (dilutive) | 34,099,378 | 39,975,122 | 42,583,009 | |||||||||
Net income per share: | ||||||||||||
Basic | $ | 3.00 | $ | 3.00 | $ | 2.93 | ||||||
Diluted | $ | 2.94 | $ | 2.93 | $ | 2.84 |
Fiscal 2019 Quarters Ended | ||||||||||||||||
5/5/2019 | 8/4/2019 | 11/3/2019 | 2/2/2020 | |||||||||||||
Total revenues | $ | 363,582 | $ | 344,599 | $ | 299,352 | $ | 347,158 | ||||||||
Total cost of products | 61,725 | 59,623 | 52,180 | 59,783 | ||||||||||||
Operating income | 57,750 | 46,214 | 6,499 | 37,616 | ||||||||||||
Net income | 42,443 | 32,356 | 482 | 24,982 | ||||||||||||
Net income per share of common stock: | ||||||||||||||||
Basic | $ | 1.15 | $ | 0.91 | $ | 0.02 | $ | 0.82 | ||||||||
Diluted | $ | 1.13 | $ | 0.90 | $ | 0.02 | $ | 0.80 | ||||||||
Weighted average number of shares outstanding: | ||||||||||||||||
Basic | 36,827,665 | 35,407,965 | 30,980,878 | 30,584,360 | ||||||||||||
Diluted | 37,591,944 | 36,015,710 | 31,515,454 | 31,158,919 | ||||||||||||
Stores open at end of period | 127 | 130 | 134 | 136 |
Fiscal 2018 Quarters Ended | ||||||||||||||||
5/6/2018 | 8/5/2018 | 11/4/2018 | 2/3/2019 | |||||||||||||
Total revenues | $ | 332,190 | $ | 319,188 | $ | 282,139 | $ | 331,784 | ||||||||
Total cost of products | 57,139 | 55,556 | 48,734 | 58,834 | ||||||||||||
Operating income | 58,604 | 45,930 | 15,472 | 40,994 | ||||||||||||
Net income | 42,150 | 33,779 | 11,856 | 29,436 | ||||||||||||
Net income per share of common stock: | ||||||||||||||||
Basic | $ | 1.06 | $ | 0.86 | $ | 0.30 | $ | 0.77 | ||||||||
Diluted | $ | 1.04 | $ | 0.84 | $ | 0.30 | $ | 0.75 | ||||||||
Weighted average number of shares outstanding: | ||||||||||||||||
Basic | 39,695,421 | 39,355,105 | 38,892,288 | 38,245,612 | ||||||||||||
Diluted | 40,612,388 | 40,280,301 | 39,855,648 | 39,065,459 | ||||||||||||
Stores open at end of period | 112 | 117 | 118 | 121 |
Fiscal 2020 Quarters Ended | ||||||||||||||||
5/3/2020 | 8/2/2020 | 11/1/2020 | 1/31/2021 | |||||||||||||
Total revenues | $ | 159,806 | $ | 50,833 | $ | 109,052 | $ | 116,821 | ||||||||
Total cost of products | 28,072 | 8,684 | 17,908 | 20,241 | ||||||||||||
Operating loss | (61,413 | ) | (81,115 | ) | (56,043 | ) | (54,041 | ) | ||||||||
Net loss | (43,544 | ) | (58,602 | ) | (48,043 | ) | (56,785 | ) | ||||||||
Net loss per share of common stock: | ||||||||||||||||
Basic | $ | (1.37 | ) | $ | (1.24 | ) | $ | (1.01 | ) | $ | (1.19 | ) | ||||
Diluted | $ | (1.37 | ) | $ | (1.24 | ) | $ | (1.01 | ) | $ | (1.19 | ) | ||||
Weighted average number of shares outstanding: | ||||||||||||||||
Basic | 31,829,985 | 47,111,763 | 47,613,741 | 47,644,062 | ||||||||||||
Diluted | 31,829,985 | 47,111,763 | 47,613,741 | 47,644,062 | ||||||||||||
Company-owned stores at end of period | 137 | 137 | 137 | 140 |
Fiscal 2019 Quarters Ended | ||||||||||||||||
5/5/2019 | 8/4/2019 | 11/3/2019 | 2/2/2020 | |||||||||||||
Total revenues | $ | 363,582 | $ | 344,599 | $ | 299,352 | $ | 347,158 | ||||||||
Total cost of products | 61,725 | 59,623 | 52,180 | 59,783 | ||||||||||||
Operating income | 57,750 | 46,214 | 6,499 | 37,616 | ||||||||||||
Net income | 42,443 | 32,356 | 482 | 24,982 | ||||||||||||
Net income per share of common stock: | ||||||||||||||||
Basic | $ | 1.15 | $ | 0.91 | $ | 0.02 | $ | 0.82 | ||||||||
Diluted | $ | 1.13 | $ | 0.90 | $ | 0.02 | $ | 0.80 | ||||||||
Weighted average number of shares outstanding: | ||||||||||||||||
Basic | 36,827,665 | 35,407,965 | 30,980,878 | 30,584,360 | ||||||||||||
Diluted | 37,591,944 | 36,015,710 | 31,515,454 | 31,158,919 | ||||||||||||
Company-owned stores at end of period | 127 | 130 | 134 | 136 |