☒ | QUARTERLY 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 | (I.R.S. Employer ID) | |
2481 Mañana Drive, Dallas, Texas, 75220 | (214) 357-9588 | |
(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 |
Large accelerated filer | ☒ | Accelerated filer | ☐ | ||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | ||||||
Emerging Growth Company | ☐ |
Page | ||||||||||
PART I | ||||||||||
Item 1. | 3 | |||||||||
Item | 2. | |||||||||
18 | ||||||||||
Item 3. | 33 | |||||||||
Item 4. | 33 | |||||||||
PART II | ||||||||||
Item 1. | 33 | |||||||||
33 | ||||||||||
Item | 2. | |||||||||
36 | ||||||||||
Item 6. | 37 | |||||||||
38 |
Item 1. | Financial Statements |
November 3, 2019 | February 3, 2019 | |||||||
(unaudited) | (audited) | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 20,880 | $ | 21,585 | ||||
Inventories | 32,620 | 27,315 | ||||||
Prepaid expenses | 12,722 | 20,713 | ||||||
Income taxes receivable | 2,876 | 1,880 | ||||||
Other current assets | 2,511 | 19,600 | ||||||
Total current assets | 71,609 | 91,093 | ||||||
Property and equipment (net of $657,348 and $578,178 accumulated depreciation as of November 3, 2019 and February 3, 2019, respectively) | 878,203 | 805,337 | ||||||
Operating lease right of use assets | 967,697 | — | ||||||
Deferred tax assets | 8,934 | 6,736 | ||||||
Tradenames | 79,000 | 79,000 | ||||||
Goodwill | 272,628 | 272,625 | ||||||
Other assets and deferred charges | 20,116 | 18,396 | ||||||
Total assets | $ | 2,298,187 | $ | 1,273,187 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Current installments of long-term debt | $ | 15,000 | $ | 15,000 | ||||
Accounts payable | 65,538 | 60,427 | ||||||
Accrued liabilities | 199,125 | 157,164 | ||||||
Income taxes payable | 1,720 | 11,799 | ||||||
Total current liabilities | 281,383 | 244,390 | ||||||
Deferred income taxes | 19,287 | 14,634 | ||||||
Deferred occupancy costs | — | 223,678 | ||||||
Operating lease liabilities | 1,174,772 | — | ||||||
Other liabilities | 34,240 | 24,179 | ||||||
Long-term debt, net | 640,384 | 378,469 | ||||||
Commitments and contingencies | ||||||||
Stockholders’ equity: | ||||||||
Common stock, par value $0.01; authorized: 400,000,000 shares; issued: 43,350,485 shares at November 3, 2019 and 43,177,476 shares at February 3, 2019; outstanding: 30,566,973 shares at November 3, 2019 and 37,522,085 shares at February 3, 2019 | 434 | 432 | ||||||
Preferred stock, 50,000,000 authorized; NaN issued | — | — | ||||||
Paid-in capital | 337,510 | 331,255 | ||||||
Treasury stock, 12,783,512 and 5,655,391 shares as of November 3, 2019 and February 3, 2019, respectively | (595,041 | ) | (297,129 | ) | ||||
Accumulated other comprehensive loss | (8,156 | ) | (683 | ) | ||||
Retained earnings | 413,374 | 353,962 | ||||||
Total stockholders’ equity | 148,121 | 387,837 | ||||||
Total liabilities and stockholders’ equity | $ | 2,298,187 | $ | 1,273,187 | ||||
November 1, 2020 | February 2, 2020 | |||||||
(unaudited) | (audited) | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 8,341 | $ | 24,655 | ||||
Inventories | 26,732 | 34,477 | ||||||
Prepaid expenses | 12,080 | 14,269 | ||||||
Income taxes receivable | 44,574 | 2,331 | ||||||
Other current assets | 665 | 3,245 | ||||||
Total current assets | 92,392 | 78,977 | ||||||
Property and equipment (net of $767,510 and $686,824 accumulated depreciation as of November 1, 2020 and February 2, 2020, respectively) | 846,056 | 900,637 | ||||||
Operating lease right of use assets | 1,050,878 | 1,011,568 | ||||||
Deferred tax assets | 20,451 | 7,639 | ||||||
Tradenames | 79,000 | 79,000 | ||||||
Goodwill | 272,643 | 272,636 | ||||||
Other assets and deferred charges | 23,641 | 19,682 | ||||||
Total assets | $ | 2,385,061 | $ | 2,370,139 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Current installments of long-term debt | $ | — | $ | 15,000 | ||||
Accounts payable | 42,849 | 65,359 | ||||||
Accrued liabilities | 244,163 | 207,452 | ||||||
Income taxes payable | 415 | 3,054 | ||||||
Total current liabilities | 287,427 | 290,865 | ||||||
Deferred income taxes | 13,355 | 19,102 | ||||||
Operating lease liabilities | 1,277,794 | 1,222,054 | ||||||
Other liabilities | 37,896 | 35,779 | ||||||
Long-term debt, net | 561,815 | 632,689 | ||||||
Commitments and contingencies | ||||||||
Stockholders’ equity: | ||||||||
Common stock, par value $0.01; authorized: 400,000,000 shares; issued: 60,483,730 shares at November 1, 2020 and 43,386,852 shares at February 2, 2020; outstanding: 47,642,029 shares at November 1, 2020 and 30,603,340 shares at February 2, 2020 | 605 | 434 | ||||||
Preferred stock, 50,000,000 authorized; NaN issued | — | — | ||||||
Paid-in capital | 529,523 | 339,161 | ||||||
Treasury stock, 12,841,701 and 12,783,512 shares as of November 1, 2020 and February 2, 2020, respectively | (595,957 | ) | (595,041 | ) | ||||
Accumulated other comprehensive loss | (10,673 | ) | (8,369 | ) | ||||
Retained earnings | 283,276 | 433,465 | ||||||
Total stockholders’ equity | 206,774 | 169,650 | ||||||
Total liabilities and stockholders’ equity | $ | 2,385,061 | $ | 2,370,139 | ||||
Thirteen Weeks Ended November 3, 2019 | Thirteen Weeks Ended November 4, 2018 | |||||||
Food and beverage revenues | $ | 124,637 | $ | 118,807 | ||||
Amusement and other revenues | 174,715 | 163,332 | ||||||
Total revenues | 299,352 | 282,139 | ||||||
Cost of food and beverage | 33,384 | 31,163 | ||||||
Cost of amusement and other | 18,796 | 17,571 | ||||||
Total cost of products | 52,180 | 48,734 | ||||||
Operating payroll and benefits | 76,165 | 71,309 | ||||||
Other store operating expenses | 110,713 | 96,267 | ||||||
General and administrative expenses | 16,210 | 15,043 | ||||||
Depreciation and amortization expense | 33,340 | 30,574 | ||||||
Pre-opening costs | 4,245 | 4,740 | ||||||
Total operating costs | 292,853 | 266,667 | ||||||
Operating income | 6,499 | 15,472 | ||||||
Interest expense, net | 6,110 | 3,321 | ||||||
Income before provision (benefit) for income taxes | 389 | 12,151 | ||||||
Provision (benefit) for income taxes | (93 | ) | 295 | |||||
Net income | 482 | 11,856 | ||||||
Unrealized foreign currency translation gain (loss) | 59 | (76 | ) | |||||
Unreali of derivatives, net of taxzed loss | (1,568 | ) | — | |||||
Total other comprehensive loss | (1,509 | ) | (76 | ) | ||||
Total comprehensive income (loss) | $ | (1,027 | ) | $ | 11,780 | |||
Net income per share: | ||||||||
Basic | $ | 0.02 | $ | 0.30 | ||||
Diluted | $ | 0.02 | $ | 0.30 | ||||
Weighted average shares used in per share calculations: | ||||||||
Basic | 30,980,878 | 38,892,288 | ||||||
Diluted | 31,515,454 | 39,855,648 |
Thirteen Weeks Ended November 1, 2020 | Thirteen Weeks Ended November 3, 2019 | |||||||
Food and beverage revenues | $ | 38,346 | $ | 124,637 | ||||
Amusement and other revenues | 70,706 | 174,715 | ||||||
Total revenues | 109,052 | 299,352 | ||||||
Cost of food and beverage | 10,664 | 33,384 | ||||||
Cost of amusement and other | 7,244 | 18,796 | ||||||
Total cost of products | 17,908 | 52,180 | ||||||
Operating payroll and benefits | 27,704 | 76,165 | ||||||
Other store operating expenses | 70,783 | 110,713 | ||||||
General and administrative expenses | 11,746 | 16,210 | ||||||
Depreciation and amortization expense | 34,384 | 33,340 | ||||||
Pre-opening costs | 2,570 | 4,245 | ||||||
Total operating costs | 165,095 | 292,853 | ||||||
Operating income (loss) | (56,043 | ) | 6,499 | |||||
Interest expense, net | 8,213 | 6,110 | ||||||
Loss on debt refinance | 904 | — | ||||||
Income (loss) before benefit for income taxes | (65,160 | ) | 389 | |||||
Benefit for income taxes | (17,117 | ) | (93 | ) | ||||
Net income (loss) | (48,043 | ) | 482 | |||||
Unrealized foreign currency translation gain | 34 | 59 | ||||||
Unrealized gain (loss) on derivatives, net of tax | 1,370 | (1,568 | ) | |||||
Total other comprehensive income (loss) | 1,404 | (1,509 | ) | |||||
Total comprehensive loss | $ | (46,639 | ) | $ | (1,027 | ) | ||
Net income (loss) per share: | ||||||||
Basic | $ | (1.01 | ) | $ | 0.02 | |||
Diluted | $ | (1.01 | ) | $ | 0.02 | |||
Weighted average shares used in per share calculations: | ||||||||
Basic | 47,613,741 | 30,980,878 | ||||||
Diluted | 47,613,741 | 31,515,454 |
Thirty-nine WeeksEnded November 3, 2019 | Thirty-nine WeeksEnded N ovember 4, 2018 | |||||||
Food and beverage revenues | $ | 410,779 | $ | 388,804 | ||||
Amusement and other revenues | 596,754 | 544,713 | ||||||
Total revenues | 1,007,533 | 933,517 | ||||||
Cost of food and beverage | 109,072 | 101,181 | ||||||
Cost of amusement and other | 64,456 | 60,248 | ||||||
Total cost of products | 173,528 | 161,429 | ||||||
Operating payroll and benefits | 239,965 | 217,939 | ||||||
Other store operating expenses | 321,334 | 284,432 | ||||||
General and administrative expenses | 49,047 | 45,461 | ||||||
Depreciation and amortization expense | 97,226 | 87,129 | ||||||
Pre-opening costs | 15,970 | 17,121 | ||||||
Total operating costs | 897,070 | 813,511 | ||||||
Operating income | 110,463 | 120,006 | ||||||
Interest expense, net | 14,771 | 9,406 | ||||||
Income before provision for income taxes | 95,692 | 110,600 | ||||||
Provision for income taxes | 20,411 | 22,815 | ||||||
Net income | 75,281 | 87,785 | ||||||
Unrealized foreign currency translation gain ( loss) | 2 | (438 | ) | |||||
Unrealized loss of derivatives, net of tax | (7,475 | ) | — | |||||
Total other comprehensive loss | (7,473 | ) | (438 | ) | ||||
Total comprehensive income | $ | 67,808 | $ | 87,347 | ||||
Net income per share: | ||||||||
Basic | $ | 2.19 | $ | 2.23 | ||||
Diluted | $ | 2.15 | $ | 2.18 | ||||
Weighted average shares used in per share calculations: | ||||||||
Basic | 34,405,503 | 39,314,271 | ||||||
Diluted | 35,042,311 | 40,257,231 |
Thirty-Nine Weeks Ended November 1, 2020 | Thirty-Nine Weeks Ended November 3, 2019 | |||||||
Food and beverage revenues | $ | 119,268 | $ | 410,779 | ||||
Amusement and other revenues | 200,423 | 596,754 | ||||||
Total revenues | 319,691 | 1,007,533 | ||||||
Cost of food and beverage | 32,667 | 109,072 | ||||||
Cost of amusement and other | 21,997 | 64,456 | ||||||
Total cost of products | 54,664 | 173,528 | ||||||
Operating payroll and benefits | 85,197 | 239,965 | ||||||
Other store operating expenses | 229,137 | 321,334 | ||||||
General and administrative expenses | 35,587 | 49,047 | ||||||
Depreciation and amortization expense | 104,896 | 97,226 | ||||||
Pre-opening costs | 8,781 | 15,970 | ||||||
Total operating costs | 518,262 | 897,070 | ||||||
Operating income (loss) | (198,571 | ) | 110,463 | |||||
Interest expense, net | 22,491 | 14,771 | ||||||
Loss on debt refinance | 904 | — | ||||||
Income (loss) before provision (benefit) for income taxes | (221,966 | ) | 95,692 | |||||
Provision (benefit) for income taxes | (71,777 | ) | 20,411 | |||||
Net income (loss) | (150,189 | ) | 75,281 | |||||
Unrealized foreign currency translation gain (loss) | (97 | ) | 2 | |||||
Unrealized loss on derivatives, net of tax | (2,207 | ) | (7,475 | ) | ||||
Total other comprehensive loss | (2,304 | ) | (7,473 | ) | ||||
Total comprehensive income (loss) | $ | (152,493 | ) | $ | 67,808 | |||
Net income (loss) per share: | ||||||||
Basic | $ | (3.56 | ) | $ | 2.19 | |||
Diluted | $ | (3.56 | ) | $ | 2.15 | |||
Weighted average shares used in per share calculations: | ||||||||
Basic | 42,185,163 | 34,405,503 | ||||||
Diluted | 42,185,163 | 35,042,311 |
Thirteen Weeks Ended November 3, 2019 | ||||||||||||||||||||||||||||||||
Common Stock | Paid-In Capital | Treasury Stock At Cost | Accumulated Other Comprehensive Loss | Retained Earnings | Total | |||||||||||||||||||||||||||
Shares | Amt. | Shares | Amt. | |||||||||||||||||||||||||||||
Balance August 4, 2019 | 43,337,125 | $ | 433 | $ | 335,599 | 10,358,291 | $ | (497,862 | ) | $ | (6,647 | ) | $ | 417,779 | $ | 249,302 | ||||||||||||||||
Net income | — | — | — | — | — | — | 482 | 482 | ||||||||||||||||||||||||
Unrealized foreign currency translation gain | — | — | — | — | — | 59 | — | 59 | ||||||||||||||||||||||||
Unrealized loss of derivatives, net of tax | — | — | — | — | — | (1,568 | ) | — | (1,568 | ) | ||||||||||||||||||||||
Share-based compensation | — | — | 1,747 | — | — | — | — | 1,747 | ||||||||||||||||||||||||
Issuance of common stock | 13,360 | 1 | 164 | — | — | — | — | 165 | ||||||||||||||||||||||||
Repurchase of common stock | — | — | 2,425,221 | (97,179 | ) | — | — | (97,179 | ) | |||||||||||||||||||||||
Dividends declared ($0.16 per share) | — | — | — | — | — | — | (4,887 | ) | (4,887 | ) | ||||||||||||||||||||||
Balance November 3, 2019 | 43,350,485 | $ | 434 | $ | 337,510 | 12,783,512 | $ | (595,041 | ) | $ | (8,156 | ) | $ | 413,374 | $ | 148,121 | ||||||||||||||||
Thirteen Weeks Ended November 4 , 2018 | ||||||||||||||||||||||||||||||||
Common Stock | Paid-In Capital | Treasury Stock At Cost | Accumulated Other Comprehensive Loss | Retained Earnings | Total | |||||||||||||||||||||||||||
Shares | Amt. | Shares | Amt. | |||||||||||||||||||||||||||||
Balance August 5, 2018 | 42,937,988 | $ | 429 | $ | 325,951 | 3,910,033 | $ | (209,084 | ) | $ | (611 | ) | $ | 324,240 | $ | 440,925 | ||||||||||||||||
Net income | — | — | — | — | — | — | 11,856 | 11,856 | ||||||||||||||||||||||||
Unrealized foreign currency translation | — | — | — | — | — | (76 | ) | — | (76 | ) | ||||||||||||||||||||||
Share-based compensation | — | — | 1,757 | — | — | — | — | 1,757 | ||||||||||||||||||||||||
Issuance of common stock | 199,988 | 2 | 1,686 | — | — | — | — | 1,688 | ||||||||||||||||||||||||
Repurchase of common stock | — | — | — | 436,706 | (24,997 | ) | — | — | (24,997 | ) | ||||||||||||||||||||||
Dividends declared ($0.15 per share) | — | — | — | — | — | — | (5,842 | ) | (5,842 | ) | ||||||||||||||||||||||
Balance November 4, 2018 | 43,137,976 | $ | 431 | $ | 329,394 | 4,346,739 | $ | (234,081 | ) | $ | (687 | ) | $ | 330,254 | $ | 425,311 | ||||||||||||||||
Thirteen Weeks Ended November 1, 2020 | ||||||||||||||||||||||||||||||||
Common Stock | Paid-In Capital | Treasury Stock At Cost | Accumulated Other Comprehensive Loss | Retained Earnings | Total | |||||||||||||||||||||||||||
Shares | Amt. | Shares | Amt. | |||||||||||||||||||||||||||||
Balance August 2, 2020 | 60,422,212 | $ | 604 | $ | 526,253 | 12,827,300 | $ | (595,728 | ) | $ | (12,077 | ) | $ | 331,319 | $ | 250,371 | ||||||||||||||||
Net loss | — | — | — | — | — | — | (48,043 | ) | (48,043 | ) | ||||||||||||||||||||||
Unrealized foreign currency translation gain | — | — | — | — | — | 34 | — | 34 | ||||||||||||||||||||||||
Unrealized gain on derivatives, net of tax | — | — | — | — | — | 1,370 | — | 1,370 | ||||||||||||||||||||||||
Share-based compensation | — | — | 2,999 | — | — | — | — | 2,999 | ||||||||||||||||||||||||
Issuance of common stock | 61,518 | 1 | 271 | — | — | — | — | 272 | ||||||||||||||||||||||||
Repurchase of common stock | — | — | — | 14,401 | (229 | ) | — | — | (229 | ) | ||||||||||||||||||||||
Balance November 1, 2020 | 60,483,730 | $ | 605 | $ | 529,523 | 12,841,701 | $ | (595,957 | ) | $ | (10,673 | ) | $ | 283,276 | $ | 206,774 | ||||||||||||||||
Thirteen Weeks Ended November 3, 2019 | ||||||||||||||||||||||||||||||||
Common Stock | Paid-In Capital | Treasury Stock At Cost | Accumulated Other Comprehensive Loss | Retained Earnings | Total | |||||||||||||||||||||||||||
Shares | Amt. | Shares | Amt. | |||||||||||||||||||||||||||||
Balance August 4, 2019 | 43,337,125 | $ | 433 | $ | 335,599 | 10,358,291 | $ | (497,862 | ) | $ | (6,647 | ) | $ | 417,779 | $ | 249,302 | ||||||||||||||||
Net income | — | — | — | — | — | — | 482 | 482 | ||||||||||||||||||||||||
Unrealized foreign currency translation gain | — | — | — | — | — | 59 | — | 59 | ||||||||||||||||||||||||
Unrealized loss on derivatives, net of tax | — | — | — | — | — | (1,568 | ) | — | (1,568 | ) | ||||||||||||||||||||||
Share-based compensation | — | — | 1,747 | — | — | — | — | 1,747 | ||||||||||||||||||||||||
Issuance of common stock | 13,360 | 1 | 164 | — | — | — | — | 165 | ||||||||||||||||||||||||
Repurchase of common stock | — | — | 2,425,221 | (97,179 | ) | — | — | (97,179 | ) | |||||||||||||||||||||||
Dividends declared ($0.16 per share) | — | — | — | — | — | — | (4,887 | ) | (4,887 | ) | ||||||||||||||||||||||
Balance November 3, 2019 | 43,350,485 | $ | 434 | $ | 337,510 | 12,783,512 | $ | (595,041 | ) | $ | (8,156 | ) | $ | 413,374 | $ | 148,121 | ||||||||||||||||
Thirty-nine Weeks Ended November 3, 2019 | ||||||||||||||||||||||||||||||||
Common Stock | Paid-In Capital | Treasury Stock At Cost | Accumulated Other Comprehensive Loss | Retained Earnings | Total | |||||||||||||||||||||||||||
Shares | Amt. | Shares | Amt. | |||||||||||||||||||||||||||||
Balance February 3, 2019 | 43,177,476 | $ | 432 | $ | 331,255 | 5,655,391 | $ | (297,129 | ) | $ | (683 | ) | $ | $ | 387,837 | |||||||||||||||||
Cumulative effect of a change in accounting principle, net of tax | — | — | — | — | — | — | (145 | ) | (145 | ) | ||||||||||||||||||||||
Net income | — | — | — | — | — | — | 75,281 | 75,281 | ||||||||||||||||||||||||
Unrealized foreign currency translation gain | — | — | — | — | — | 2 | — | 2 | ||||||||||||||||||||||||
Unrealized loss of derivatives, net of tax | — | — | — | — | — | (7,475 | ) | — | (7,475 | ) | ||||||||||||||||||||||
Share-based compensation | — | — | 5,479 | — | — | — | — | 5,479 | ||||||||||||||||||||||||
Issuance of common stock | 173,009 | 2 | 776 | — | — | — | — | 778 | ||||||||||||||||||||||||
Repurchase of common stock | — | — | 7,128,121 | (297,912 | ) | — | — | (297,912 | ) | |||||||||||||||||||||||
Dividends declared ($0.46 per share) | — | — | — | — | — | — | (15,724 | ) | (15,724 | ) | ||||||||||||||||||||||
Balance November 3, 2019 | 43,350,485 | $ | 434 | $ | 337,510 | 12,783,512 | $ | (595,041 | ) | $ | (8,156 | ) | $ | 413,374 | $ | 148,121 | ||||||||||||||||
Thirty-Nine Weeks Ended November 1, 2020 | ||||||||||||||||||||||||||||||||
Common Stock | Paid-In Capital | Treasury Stock At Cost | Accumulated Other Comprehensive Loss | Retained Earnings | Total | |||||||||||||||||||||||||||
Shares | Amt. | Shares | Amt. | |||||||||||||||||||||||||||||
Balance February 2, 2020 | 43,386,852 | $ | 434 | $ | 339,161 | 12,783,512 | $ | (595,041 | ) | $ | (8,369 | ) | $ | 433,465 | $ | 169,650 | ||||||||||||||||
Net loss | — | — | — | — | — | — | (150,189 | ) | (150,189 | ) | ||||||||||||||||||||||
Unrealized foreign currency translation loss | — | — | — | — | — | (97 | ) | — | (97 | ) | ||||||||||||||||||||||
Unrealized loss on derivatives, net of tax | — | — | — | — | — | (2,207 | ) | — | (2,207 | ) | ||||||||||||||||||||||
Share-based compensation | — | — | 5,344 | — | — | — | — | 5,344 | ||||||||||||||||||||||||
Issuance of common stock | 17,096,878 | 171 | 185,018 | — | — | — | — | 185,189 | ||||||||||||||||||||||||
Repurchase of common stock | — | — | — | 58,189 | (916 | ) | — | — | (916 | ) | ||||||||||||||||||||||
Balance November 1, 2020 | 60,483,730 | $ | 605 | $ | 529,523 | 12,841,701 | $ | (595,957 | ) | $ | (10,673 | ) | $ | 283,276 | $ | 206,774 | ||||||||||||||||
Thirty-Nine Weeks Ended November 3, 2019 | ||||||||||||||||||||||||||||||||
Common Stock | Paid-In Capital | Treasury Stock At Cost | Accumulated Other Comprehensive Loss | Retained Earnings | Total | |||||||||||||||||||||||||||
Shares | Amt. | Shares | Amt. | |||||||||||||||||||||||||||||
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 | — | — | — | — | — | — | 75,281 | 75,281 | ||||||||||||||||||||||||
Unrealized foreign currency translation gain | — | — | — | — | — | 2 | — | 2 | ||||||||||||||||||||||||
Unrealized loss on derivatives, net of tax | — | — | — | — | — | (7,475 | ) | — | (7,475 | ) | ||||||||||||||||||||||
Share-based compensation | — | — | 5,479 | — | — | — | — | 5,479 | ||||||||||||||||||||||||
Issuance of common stock | 173,009 | 2 | 776 | — | — | — | — | 778 | ||||||||||||||||||||||||
Repurchase of common stock | — | — | 7,128,121 | (297,912 | ) | — | — | (297,912 | ) | |||||||||||||||||||||||
Dividends declared ($0.46 per share) | — | — | — | — | — | — | (15,724 | ) | (15,724 | ) | ||||||||||||||||||||||
Balance November 3, 2019 | 43,350,485 | $ | 434 | $ | 337,510 | 12,783,512 | $ | (595,041 | ) | $ | (8,156 | ) | $ | 413,374 | $ | 148,121 | ||||||||||||||||
Thirty-nine Weeks Ended November 4 , 2018 | ||||||||||||||||||||||||||||||||
Common Stock | Paid-In Capital | Treasury Stock At Cost | Accumulated Other Comprehensive 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 | — | — | — | — | — | — | 87,785 | 87,785 | ||||||||||||||||||||||||
Unrealized foreign currency translation loss | — | — | — | — | — | (438 | ) | — | (438 | ) | ||||||||||||||||||||||
Share-based compensation | — | — | 5,771 | — | — | — | — | 5,771 | ||||||||||||||||||||||||
Issuance of common stock | 477,170 | 4 | 3,135 | — | — | — | — | 3,139 | ||||||||||||||||||||||||
Repurchase of common stock | — | — | — | 1,788,018 | (86,750 | ) | — | — | (86,750 | ) | ||||||||||||||||||||||
Dividends declared ($0.15 per share) | — | — | — | — | — | — | (5,842 | ) | (5,842 | ) | ||||||||||||||||||||||
Balance November 4, 2018 | 43,137,976 | $ | 431 | $ | 329,394 | 4,346,739 | $ | (234,081 | ) | $ | (687 | ) | $ | 330,254 | $ | 425,311 | ||||||||||||||||
Thirty-nine WeeksEnded November 3, 2019 | Thirty-nine WeeksEnded November 4, 2018 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 75,281 | $ | 87,785 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization expense | 97,226 | 87,129 | ||||||
Deferred taxes | 5,309 | 8,067 | ||||||
Loss on disposal of fixed assets | 1,284 | 813 | ||||||
Share-based compensation | 5,479 | 5,771 | ||||||
Other, net | 928 | 847 | ||||||
Changes in assets and liabilities: | ||||||||
Inventories | (5,305 | ) | (170 | ) | ||||
Prepaid expenses | (615 | ) | (1,436 | ) | ||||
Income tax receivable | (996 | ) | 1,940 | |||||
Other current assets | 6,050 | (6,610 | ) | |||||
Other assets and deferred charges | (1,775 | ) | (1,020 | ) | ||||
Accounts payable | 5,422 | 5,512 | ||||||
Accrued liabilities | 37,671 | 14,260 | ||||||
Income taxes payable | (10,079 | ) | 1,081 | |||||
Deferred occupancy costs | — | 31,155 | ||||||
Other liabilities | 1,909 | 1,876 | ||||||
Net cash provided by operating activities | 217,789 | 237,000 | ||||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (172,888 | ) | (163,745 | ) | ||||
Proceeds from sales of property and equipment | 615 | 263 | ||||||
Proceeds from insurance | — | 107 | ||||||
Net cash used in investing activities | (172,273 | ) | (163,375 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from debt | 366,000 | 191,000 | ||||||
Payments of debt | (104,250 | ) | (174,250 | ) | ||||
Proceeds from the exercise of stock options | 778 | 3,139 | ||||||
Repurchase of common stock under share repurchase program | (297,317 | ) | (86,077 | ) | ||||
Dividends paid | (10,837 | ) | (5,842 | ) | ||||
Repurchases of common stock to satisfy employee withholding tax obligations | (595 | ) | (673 | ) | ||||
Net cash used in financing activities | (46,221 | ) | (72,703 | ) | ||||
Increase (decrease) in cash and cash equivalents | (705 | ) | 922 | |||||
Beginning cash and cash equivalents | 21,585 | 18,795 | ||||||
Ending cash and cash equivalents | $ | 20,880 | $ | 19,717 | ||||
Supplemental disclosures of cash flow information: | ||||||||
Decrease in fixed asset accounts payable | $ | (311 | ) | $ | (474 | ) | ||
Cash paid for income taxes, net | $ | 26,086 | $ | 11,661 | ||||
Cash paid for interest, net | $ | 13,920 | $ | 8,853 | ||||
Dividend declared, not paid | $ | 4,887 | $ | — |
November 1, | November 3, | |||||||
Cash flows from operating activities: | ||||||||
Net income (loss) | $ | (150,189 | ) | $ | 75,281 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization expense | 104,896 | 97,226 | ||||||
Non-cash interest expense | 4,088 | 0 | ||||||
Impairment of long-lived assets | 13,727 | 0 | ||||||
Deferred taxes | (17,730 | ) | 5,309 | |||||
Loss on disposal of fixed assets | 541 | 1,284 | ||||||
Loss on debt refinance | 904 | 0 | ||||||
Share-based compensation | 5,344 | 5,479 | ||||||
Other, net | 1,292 | 928 | ||||||
Changes in assets and liabilities: | ||||||||
Inventories | 7,745 | (5,305 | ) | |||||
Prepaid expenses | 2,761 | (615 | ) | |||||
Income tax receivable | (42,243 | ) | (996 | ) | ||||
Other current assets | 2,580 | 6,050 | ||||||
Other assets and deferred charges | (3 | ) | (1,775 | ) | ||||
Accounts payable | (11,945 | ) | 5,422 | |||||
Accrued liabilities | 44,742 | 37,671 | ||||||
Income taxes payable | (2,639 | ) | (10,079 | ) | ||||
Other liabilities | 4,375 | 1,909 | ||||||
Net cash provided by (used in) operating activities | (31,754 | ) | 217,789 | |||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (72,604 | ) | (172,888 | ) | ||||
Proceeds from sales of property and equipment | 234 | 615 | ||||||
Net cash used in investing activities | (72,370 | ) | (172,273 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from debt | 688,000 | 366,000 | ||||||
Payments of debt | (760,250 | ) | (104,250 | ) | ||||
Net proceeds from the issuance of common stock | 182,207 | 0 | ||||||
Proceeds from the exercise of stock options | 465 | 778 | ||||||
Repurchase of common stock under share repurchase program | 0 | (297,317 | ) | |||||
Dividends paid | (4,891 | ) | (10,837 | ) | ||||
Debt issuance costs | (16,805 | ) | 0 | |||||
Repurchases of common stock to satisfy employee withholding tax obligations | (916 | ) | (595 | ) | ||||
Net cash provided by (used in) financing activities | 87,810 | (46,221 | ) | |||||
Decrease in cash and cash equivalents | (16,314 | ) | (705 | ) | ||||
Beginning cash and cash equivalents | 24,655 | 21,585 | ||||||
Ending cash and cash equivalents | $ | 8,341 | $ | 20,880 | ||||
Supplemental disclosures of cash flow information: | ||||||||
Decrease in fixed asset accounts payable | $ | (12,315 | ) | $ | (311 | ) | ||
Cash paid (refund received) for income taxes, net | $ | (9,281 | ) | $ | 26,086 | |||
Cash paid for interest, net | $ | 17,306 | $ | 13,920 | ||||
Dividend declared, not paid | $ | 0 | $ | 4,887 |
Fair Value | ||||||||
Balance Sheet Location | November 3, 2019 | |||||||
Derivatives designated as hedging instruments: | ||||||||
Interest rate swaps | Accrued liabilities | $ | (3,202 | ) | ||||
Interest rate swaps | Other liabilities | (7,083 | ) | |||||
Total derivatives | $ | (10,285 | ) | |||||
Fair Value | ||||||||||||
Balance Sheet Location | November 1, 2020 | February 2, 2020 | ||||||||||
Interest rate swaps | Accrued liabilities | $ | (8,191 | ) | $ | (3,518 | ) | |||||
Interest rate swaps | Other liabilities | (6,479 | ) | (6,967 | ) | |||||||
Total derivatives (1) | $ | (14,670 | ) | $ | (10,485 | ) | ||||||
(1) | The balance at November 1, 2020 relates to our swap agreements after hedge accounting was discontinued, effective April 14, 2020. |
�� | ||||||||
Thirteen Weeks Ended November 3, 2019 | Thirty-nine Weeks Ended November 3, 2019 | |||||||
Loss recognized in accumulated other comprehensive loss | $ | (2,483 | ) | $ | (10,623 | ) | ||
Loss reclassified from accumulated other comprehensive loss into net earnings (1) | $ | 326 | $ | 338 | ||||
Income tax benefit of interest rate swaps in accumulated other comprehensive loss | $ | 589 | $ | 2,810 |
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | |||||||||||||||
November 1, 2020 | November 3, 2019 | November 1, 2020 | November 3, 2019 | |||||||||||||
Amount of loss recorded in accumulated other comprehensive income | $ | 0 | 2,483 | $ | 7,602 | 10,623 | ||||||||||
Amount of loss reclassified into income (1) | $ | (1,886 | ) | (326 | ) | $ | (4,566 | ) | (338 | ) | ||||||
Income tax expense (benefit) in accumulated other comprehensive income | $ | 516 | (589 | ) | $ | (829 | ) | (2,810 | ) |
(1) | Amounts reclassified into |
November 3, 2019 | February 3, 2019 | |||||||
Current portion of operating lease liabilities, net (refer to Note 4) | $ | 44,666 | $ | — | ||||
Current portion of deferred occupancy costs | — | 15,737 | ||||||
Deferred amusement revenue | 50,331 | 44,232 | ||||||
Amusement redemption liability | 20,341 | 19,911 | ||||||
Compensation and benefits | 19,928 | 24,280 | ||||||
Property taxes | 10,513 | 7,278 | ||||||
Customer deposits | 8,713 | 3,731 | ||||||
Deferred gift card revenue | 8,127 | 9,450 | ||||||
Current portion of long-term insurance | 5,600 | 5,900 | ||||||
Dividend payable | 4,887 | — | ||||||
Utilities | 4,103 | 4,032 | ||||||
Sales and use taxes | 4,037 | 5,226 | ||||||
Inventory liabilities | 3,798 | 2,876 | ||||||
Current portion of derivatives | 3,202 | — | ||||||
Variable rent liabilities | 1,931 | 2,245 | ||||||
Other (refer to Note 5) | 8,948 | 12,266 | ||||||
Total accrued liabilities | $ | 199,125 | $ | 157,164 |
November 1, 2020 | February 2, 2020 | |||||||
Deferred amusement revenue | $ | 79,210 | $ | 75,113 | ||||
Current portion of operating lease liabilities, net (1) | 51,850 | 45,611 | ||||||
Rent payable ( Note 4) | 40,542 | — | ||||||
Variable rent liabilities ( Note 4) | 7,559 | 1,331 | ||||||
Deferred gift card revenue | 10,330 | 11,253 | ||||||
Property taxes | 10,285 | 7,226 | ||||||
Compensation and benefits | 9,914 | 23,421 | ||||||
Current portion of derivatives | 8,191 | 3,518 | ||||||
Current portion of long-term insurance | 5,100 | 6,500 | ||||||
Utilities | 4,111 | 4,442 | ||||||
Customer deposits | 1,594 | 4,324 | ||||||
Inventory liabilities | 1,948 | 2,179 | ||||||
Sales and use taxes | 1,160 | 4,000 | ||||||
Dividend payable | — | 4,891 | ||||||
Other | 12,369 | 13,643 | ||||||
Total accrued liabilities | $ | 244,163 | $ | 207,452 | ||||
(1) | The balance of leasehold incentive receivables of $5,434 and $6,339 at November 1, 2020 and February 2, 2020, respectively, is reflected as a reduction of the current portion of operating lease liabilities. |
November 3, 2019 | February 3, 2019 | |||||||
Credit facility - term | $ | 270,000 | $ | 281,250 | ||||
Credit facility - revolver | 386,000 | 113,000 | ||||||
Total debt outstanding | 656,000 | 394,250 | ||||||
Less: | ||||||||
Current installments - term | (15,000 | ) | (15,000 | ) | ||||
Debt issuance costs - term | (616 | ) | (781 | ) | ||||
Long-term debt, net | $ | 640,384 | $ | 378,469 | ||||
November 1, 2020 | February 2, 2020 | |||||||
Senior Secured Notes | $ | 550,000 | $ | — | ||||
Credit facility - term | — | 266,250 | ||||||
Credit facility - revolver | 26,000 | 382,000 | ||||||
Total debt outstanding | 576,000 | 648,250 | ||||||
Current installments | — | (15,000 | ) | |||||
Debt issuance costs | (14,185 | ) | (561 | ) | ||||
Long-term debt, net | $ | 561,815 | $ | 632,689 | ||||
Thirteen Weeks Ended November 3, 2019 | Thirteen Weeks Ended November 4, 2018 | |||||||
Interest expense on credit facilities | $ | 6,095 | $ | 3,358 | ||||
Amortization of issuance cost | 198 | 198 | ||||||
Interest income | (24 | ) | (27 | ) | ||||
Capitalized interest | (159 | ) | (192 | ) | ||||
Change in fair value of interest rate cap | — | (16 | ) | |||||
Total interest expense, net | $ | 6,110 | $ | 3,321 | ||||
Thirty-nine WeeksEnded November 3, 2019 | Thirty-nine WeeksEnded November 4, 2018 | |||||||
Interest expense on credit facilities | $ | 15,010 | $ | 9,637 | ||||
Amortization of issuance cost | 594 | 594 | ||||||
Interest income | (75 | ) | (83 | ) | ||||
Capitalized interest | (758 | ) | (720 | ) | ||||
Change in fair value of interest rate cap | — | (22 | ) | |||||
Total interest expense, net | $ | 14,771 | $ | 9,406 | ||||
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | |||||||||||||||
November 1, 2020 | November 3, 2019 | November 1, 2020 | November 3, 2019 | |||||||||||||
Interest expense on debt | $ | 6,092 | 5,769 | $ | 17,255 | 14,672 | ||||||||||
Interest associated with swap agreements | 1,886 | 326 | 4,566 | 338 | ||||||||||||
Amortization of issuance cost | 427 | 198 | 1,081 | 594 | ||||||||||||
Interest income | — | (24 | ) | (22 | ) | (75 | ) | |||||||||
Capitalized interest | (192 | ) | (159 | ) | (389 | ) | (758 | ) | ||||||||
Total interest expense, net | $ | 8,213 | $ | 6,110 | $ | 22,491 | $ | 14,771 | ||||||||
Thirteen Weeks Ended November 3, 2019 | Thirty-nine WeeksEnded November 3, 2019 | |||||||
Operating | $ | 31,489 | $ | 91,729 | ||||
Variable | 88 | 2,080 | ||||||
Short-term | 108 | 324 | ||||||
Total | $ | 31,685 | $ | 94,133 | ||||
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | |||||||||||||||
November 1, 2020 | November 3, 2019 | November 1, 2020 | November 3, 2019 | |||||||||||||
Operating lease cost | $ | 33,278 | 31,489 | $ | 100,162 | 91,729 | ||||||||||
Variable lease cost | 5,351 | 7,692 | 18,405 | 22,335 | ||||||||||||
Short-term lease cost | 102 | 108 | 329 | 324 | ||||||||||||
Total | $ | 38,731 | $ | 39,289 | $ | 118,896 | $ | 114,388 | ||||||||
November 3, 2019 | ||||
Cash paid for amounts included in the measurement of lease liabi li ties | ||||
Operating cash flows from operating leases | $ | 91,595 | ||
ROU assets obtained in exchange for new operating lease liabilities | $ | 157,873 | ||
Weighted-average remaining lease term - operating leases (in years) | 15.8 | |||
Weighted-average discount rate - operating leases | 5.9 | % |
Remainder of 2019 | $ | 22,491 | ||
2020 | 132,635 | |||
2021 | 127,769 | |||
2022 | 119,779 | |||
2023 | 116,224 | |||
Thereafter | 1,436,809 | |||
Total | $ | 1,955,707 | ||
Less: Interest | 730,362 | |||
Total discounted operating lease liabilities | $ | 1,225,345 | ||
2019 | $ | 122,501 | ||
2020 | 117,908 | |||
2021 | 111,642 | |||
2022 | 104,195 | |||
2023 | 100,779 | |||
Thereafter | 1,229,803 | |||
Total | $ | 1,786,828 | ||
Thirteen Weeks Ended November 3, 2019 | Thirteen Weeks Ended November 4, 2018 | |||||||
Numerator: | ||||||||
Net income | $ | 482 | $ | 11,856 | ||||
Denominator: | ||||||||
Weighted average number of common shares outstanding (basic) | 30,980,878 | 38,892,288 | ||||||
Weighted average dilutive impact of equity-based awards | 534,576 | 963,360 | ||||||
Weighted average number of common and common equivalent shares outstanding (diluted) | 31,515,454 | 39,855,648 | ||||||
Net income per share: | ||||||||
Basic | $ | 0.02 | $ | 0.30 | ||||
Diluted | $ | 0.02 | $ | 0.30 | ||||
Thirty-nine WeeksEnded November 3, 2019 | Thirty-nine WeeksEnded November 4, 2018 | |||||||
Numerator: | ||||||||
Net income | $ | 75,281 | $ | 87,785 | ||||
Denominator: | ||||||||
Weighted average number of common shares outstanding (basic) | 34,405,503 | 39,314,271 | ||||||
Weighted average dilutive impact of equity-based awards | 636,808 | 942,960 | ||||||
Weighted average number of common and common equivalent shares outstanding (diluted) | 35,042,311 | 40,257,231 | ||||||
Net income per share: | ||||||||
Basic | $ | 2.19 | $ | 2.23 | ||||
Diluted | $ | 2.15 | $ | 2.18 |
Thirteen Weeks Ended November 1, 2020 | Thirteen Weeks Ended November 3, 2019 | |||||||
Numerator: | ||||||||
Net income (loss) | $ | (48,043 | ) | $ | 482 | |||
Denominator: | ||||||||
Weighted average number of common shares outstanding (basic) | 47,613,741 | 30,980,878 | ||||||
Weighted average dilutive impact of equity-based awards (1) | — | 534,576 | ||||||
Weighted average number of common and common equivalent shares outstanding (diluted) | 47,613,741 | 31,515,454 | ||||||
Net income (loss) per share: | ||||||||
Basic | $ | (1.01 | ) | $ | 0.02 | |||
Diluted | $ | (1.01 | ) | $ | 0.02 | |||
Thirty-Nine Weeks Ended November 1, 2020 | Thirty-Nine Weeks Ended November 3, 2019 | |||||||
Numerator: | ||||||||
Net income (loss) | $ | (150,189 | ) | $ | 75,281 | |||
Denominator: | ||||||||
Weighted average number of common shares outstanding (basic) | 42,185,163 | 34,405,503 | ||||||
Weighted average dilutive impact of equity-based awards (1) | — | 636,808 | ||||||
Weighted average number of common and common equivalent shares outstanding (diluted) | 42,185,163 | 35,042,311 | ||||||
Net income (loss) per share: | ||||||||
Basic | $ | (3.56 | ) | $ | 2.19 | |||
Diluted | $ | (3.56 | ) | $ | 2.15 |
(1) | Due to the net loss for the thirteen and thirty-nine weeks ended November 1, 2020, 0 incremental shares are included because the effect would be anti-dilutive. |
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | |||||||||||||||
November 3, 2019 | November 4, 2018 | November 3, 2019 | November 4, 2018 | |||||||||||||
Stock options | $ | 731 | 631 | $ | 2,294 | $ | 2,649 | |||||||||
RSU’s and restricted stock | 1,016 | 1,126 | 3,185 | 3,122 | ||||||||||||
Total share-based compensation expense | $ | 1,747 | $ | 1,757 | $ | 5,479 | $ | 5,771 | ||||||||
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | |||||||||||||||
November 1, 2020 | November 3, 2019 | November 1, 2020 | November 3, 2019 | |||||||||||||
Stock options | $ | 269 | 731 | $ | 1,099 | 2,294 | ||||||||||
RSU’s | 2,730 | 1,016 | 4,245 | 3,185 | ||||||||||||
Share-based compensation expense | $ | 2,999 | $ | 1,747 | $ | 5,344 | $ | 5,479 | ||||||||
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 | (12,220 | ) | 36.30 | (58,384 | ) | 5.73 | ||||||||||
Forfeited | (11,824 | ) | 49.29 | — | — | |||||||||||
Outstanding at November 3, 2019 | 1,332,440 | $ | 37.04 | 301,600 | $ | 6.63 | ||||||||||
Exercisable at November 3, 2019 | 927,447 | $ | 31.57 | 301,600 | $ | 6.63 | ||||||||||
2014 Stock Incentive Plan | 2010 Stock Incentive Plan | |||||||||||||||
Number of Options | Wtd. Avg. Exercise Price | Number of Options | Wtd. Avg. Exercise Price | |||||||||||||
Outstanding at February 2, 2020 | 1,323,495 | $ | 36.97 | 266,900 | $ | 6.72 | ||||||||||
Granted | — | — | — | — | ||||||||||||
Exercised | — | — | (90,391 | ) | 5.14 | |||||||||||
Forfeited | (84,395 | ) | 38.79 | — | — | |||||||||||
Outstanding at November 1, 2020 | 1,239,100 | $ | 36.84 | 176,509 | $ | 7.54 | ||||||||||
Exercisable at November 1, 2020 | 1,047,124 | $ | 34.64 | 176,509 | $ | 7.54 | ||||||||||
Shares | Weighted Average Fair Value | |||||||
Outstanding at February 3, 2019 | 220,830 | $ | 47.79 | |||||
Granted | 72,768 | 52.09 | ||||||
Change in units based on performance | 27,372 | 39.10 | ||||||
Vested | (102,405 | ) | 40.08 | |||||
Forfeited | (4,244 | ) | 49.58 | |||||
Outstanding at November 3, 2019 | 214,321 | $ | 51.79 | |||||
Shares | Wtd. Avg. Fair Value | |||||||
Outstanding at February 2, 2020 | 216,815 | $ | 51.58 | |||||
Granted | 1,063,209 | 12.74 | ||||||
Change in performance units | 4,352 | 59.67 | ||||||
Vested | (102,595 | ) | 38.11 | |||||
Forfeited | (50,736 | ) | 27.72 | |||||
Outstanding at November 1, 2020 | 1,131,045 | $ | 17.39 | |||||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
managers. In addition, effective March 24, 2020, the Company furloughed all but a small team of essential corporate and administrative staff, enacted 12-week salary reductions ranging from 10% to 50%, and suspended all cash board fees through the remainder of fiscal 2020. As stores reopen with a reduced workforce a portion of the furloughed personnel at our stores and corporate office have returned to work; |
Thirteen Weeks Ended | Thirteen Weeks Ended | |||||||||||||||||||||||||||||||
November 3, 2019 | November 4, 2018 | Thirteen Weeks Ended November 1, 2020 | Thirteen Weeks Ended November 3, 2019 | |||||||||||||||||||||||||||||
Food and beverage revenues | $ | 124,637 | 41.6 | % | $ | 118,807 | 42.1 | % | $ | 38,346 | 35.2 | % | $ | 124,637 | 41.6 | % | ||||||||||||||||
Amusement and other revenues | 174,715 | 58.4 | 163,332 | 57.9 | 70,706 | 64.8 | 174,715 | 58.4 | ||||||||||||||||||||||||
Total revenues | 299,352 | 100.0 | 282,139 | 100.0 | 109,052 | 100.0 | 299,352 | 100.0 | ||||||||||||||||||||||||
Cost of food and beverage (as a percentage of food and beverage revenues) | 33,384 | 26.8 | 31,163 | 26.2 | 10,664 | 27.8 | 33,384 | 26.8 | ||||||||||||||||||||||||
Cost of amusement and other (as a percentage of amusement and other revenues) | 18,796 | 10.8 | 17,571 | 10.8 | 7,244 | 10.2 | 18,796 | 10.8 | ||||||||||||||||||||||||
Total cost of products | 52,180 | 17.4 | 48,734 | 17.3 | 17,908 | 16.4 | 52,180 | 17.4 | ||||||||||||||||||||||||
Operating payroll and benefits | 76,165 | 25.4 | 71,309 | 25.3 | 27,704 | 25.4 | 76,165 | 25.4 | ||||||||||||||||||||||||
Other store operating expenses | 110,713 | 37.1 | 96,267 | 34.1 | 70,783 | 64.9 | 110,713 | 37.1 | ||||||||||||||||||||||||
General and administrative expenses | 16,210 | 5.4 | 15,043 | 5.3 | 11,746 | 10.8 | 16,210 | 5.4 | ||||||||||||||||||||||||
Depreciation and amortization expense | 33,340 | 11.1 | 30,574 | 10.8 | 34,384 | 31.5 | 33,340 | 11.1 | ||||||||||||||||||||||||
Pre-opening costs | 4,245 | 1.4 | 4,740 | 1.7 | 2,570 | 2.4 | 4,245 | 1.4 | ||||||||||||||||||||||||
Total operating costs | 292,853 | 97.8 | 266,667 | 94.5 | 165,095 | 151.4 | 292,853 | 97.8 | ||||||||||||||||||||||||
Operating income | 6,499 | 2.2 | 15,472 | 5.5 | ||||||||||||||||||||||||||||
Operating income (loss) | (56,043 | ) | (51.4 | ) | 6,499 | 2.2 | ||||||||||||||||||||||||||
Interest expense, net | 6,110 | 2.1 | 3,321 | 1.2 | 8,213 | 7.6 | 6,110 | 2.1 | ||||||||||||||||||||||||
Loss on debt refinance | 904 | 0.8 | — | — | ||||||||||||||||||||||||||||
Income before provision (benefit) for income taxes | 389 | 0.1 | 12,151 | 4.3 | ||||||||||||||||||||||||||||
Provision (benefit) for income taxes | (93 | ) | (0.1 | ) | 295 | 0.1 | ||||||||||||||||||||||||||
Income (loss) before benefit for income taxes | (65,160 | ) | (59.8 | ) | 389 | 0.1 | ||||||||||||||||||||||||||
Benefit for income taxes | (17,117 | ) | (15.7 | ) | (93 | ) | (0.1 | ) | ||||||||||||||||||||||||
Net income | $ | 482 | 0.2 | % | $ | 11,856 | 4.2 | % | ||||||||||||||||||||||||
Net income (loss) | $ | (48,043 | ) | (44.1 | )% | $ | 482 | 0.2 | % | |||||||||||||||||||||||
Change in comparable store sales (1) | (4.1 | )% | (1.3 | )% | (65.6 | )% | (4.1 | )% | ||||||||||||||||||||||||
Company-owned stores open at end of period (1) | 134 | 118 | ||||||||||||||||||||||||||||||
Comparable stores open at end of period (1) | 99 | 86 | ||||||||||||||||||||||||||||||
Company-owned stores at end of period (1) | 137 | 134 | ||||||||||||||||||||||||||||||
Comparable stores at end of period (1) | 114 | 99 |
(1) As | of the end of the third quarter of fiscal 2020, 104 of our 137 stores were open and 84 of our 114 comparable stores were open. Our total and comparable store counts as of the end of the third quarter of fiscal 2020 exclude a store in Chicago, Illinois and a store in Houston, Texas which are 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 |
Thirteen Weeks | Thirteen Weeks | |||||||||||||||
Ended | Ended | |||||||||||||||
November 3, 2019 | November 4, 2018 | |||||||||||||||
Net income | $ | 482 | 0.2 | % | $ | 11,856 | 4.2 | % | ||||||||
Interest expense, net | 6,110 | 3,321 | ||||||||||||||
Provision (benefit) for income taxes | (93 | ) | 295 | |||||||||||||
Depreciation and amortization expense | 33,340 | 30,574 | ||||||||||||||
EBITDA | 39,839 | 13.3 | % | 46,046 | 16.3 | % | ||||||||||
Loss on asset disposal | 458 | 120 | ||||||||||||||
Share-based compensation | 1,747 | 1,757 | ||||||||||||||
Pre-opening costs | 4,245 | 4,740 | ||||||||||||||
Other costs (1) | 1 | 6 | ||||||||||||||
Adjusted EBITDA | $ | 46,290 | 15.5 | % | $ | 52,669 | 18.7 | % | ||||||||
Thirteen Weeks Ended November 1, 2020 | Thirteen Weeks Ended November 3, 2019 | |||||||||||||||
Net income (loss) | $ | (48,043 | ) | -44.1 | % | $ | 482 | 0.2 | % | |||||||
Interest expense, net | 8,213 | 6,110 | ||||||||||||||
Loss on debt refinance | 904 | — | ||||||||||||||
Benefit for income taxes | (17,117 | ) | (93 | ) | ||||||||||||
Depreciation and amortization expense | 34,384 | 33,340 | ||||||||||||||
EBITDA | (21,659 | ) | -19.9 | % | 39,839 | 13.3 | % | |||||||||
Loss on asset disposal | 124 | 458 | ||||||||||||||
Share-based compensation | 2,999 | 1,747 | ||||||||||||||
Pre-opening costs | 2,570 | 4,245 | ||||||||||||||
Other costs (1) | (5 | ) | 1 | |||||||||||||
Adjusted EBITDA | $ | (15,971 | ) | -14.6 | % | $ | 46,290 | 15.5 | % | |||||||
(1) | Primarily represents costs related to currency transaction (gains) or losses. |
Thirteen Weeks | Thirteen Weeks | |||||||||||||||
Ended | Ended | |||||||||||||||
November 3, 2019 | November 4, 2018 | |||||||||||||||
Operating income | $ | 6,499 | 2.2 | % | $ | 15,472 | 5.5 | % | ||||||||
General and administrative expenses | 16,210 | 15,043 | ||||||||||||||
Depreciation and amortization expense | 33,340 | 30,574 | ||||||||||||||
Pre-opening costs | 4,245 | 4,740 | ||||||||||||||
Store Operating Income Before Depreciation and Amortization | $ | 60,294 | 20.1 | % | $ | 65,829 | 23.3 | % | ||||||||
Thirteen Weeks Ended November 1, 2020 | Thirteen Weeks Ended November 3, 2019 | |||||||||||||||
Operating income (loss) | $ | (56,043 | ) | -51.4 | % | $ | 6,499 | 2.2 | % | |||||||
General and administrative expenses | 11,746 | 16,210 | ||||||||||||||
Depreciation and amortization expense | 34,384 | 33,340 | ||||||||||||||
Pre-opening costs | 2,570 | 4,245 | ||||||||||||||
Store Operating Income Before Depreciation and Amortization | $ | (7,343 | ) | -6.7 | % | $ | 60,294 | 20.1 | % | |||||||
Thirteen Weeks | Thirteen Weeks | |||||||
Ended | Ended | |||||||
November 3, 2019 | November 4, 2018 | |||||||
New store and operating initiatives | $ | 52,147 | $ | 43,431 | ||||
Games | 2,825 | 6,897 | ||||||
Maintenance capital | 5,831 | 5,149 | ||||||
Total capital additions | $ | 60,803 | $ | 55,477 | ||||
Payments from landlords | $ | 7,240 | $ | 2,552 |
Thirteen Weeks Ended November 1, 2020 | Thirteen Weeks Ended November 3, 2019 | |||||||
New store and operating initiatives | $ | 7,700 | $ | 52,147 | ||||
Games | 361 | 2,825 | ||||||
Maintenance capital | 1,208 | 5,831 | ||||||
Total capital additions | $ | 9,269 | $ | 60,803 | ||||
Payments from landlords | $ | 4,709 | $ | 7,240 |
Thirteen weeks ended November 1, 2020 | Thirteen weeks ended November 3, 2019 | Change | ||||||||||
Total revenues | $ | 109,052 | $ | 299,352 | $ | (190,300 | ) | |||||
Total store operating weeks | 1,221 | 1,722 | (501 | ) | ||||||||
Comparable store revenues | $ | 89,592 | $ | 260,131 | $ | (170,539 | ) | |||||
Comparable store operating weeks | 993 | 1,482 | (489 | ) | ||||||||
Noncomparable store revenues | $ | 20,092 | 40,131 | $ | (20,039 | ) | ||||||
Noncomparable store operating weeks | 228 | 240 | (12 | ) | ||||||||
Other revenues | $ | (632 | ) | $ | (910 | ) | $ | 278 |
Comparable stores | $ | (9,718 | ) | |
Non-comparable stores | 26,230 | |||
Other | 701 | |||
Total | $ | 17,213 | ||
Thirty-nine Weeks Ended | Thirty-nine Weeks Ended | |||||||||||||||
November 3, 2019 | November 4, 2018 | |||||||||||||||
Food and beverage revenues | $ | 410,779 | 40.8 | % | $ | 388,804 | 41.6 | % | ||||||||
Amusement and other revenues | 596,754 | 59.2 | 544,713 | 58.4 | ||||||||||||
Total revenues | 1,007,533 | 100.0 | 933,517 | 100.0 | ||||||||||||
Cost of food and beverage (as a percentage of food and beverage revenues) | 109,072 | 26.6 | 101,181 | 26.0 | ||||||||||||
Cost of amusement and other (as a percentage of amusement and other revenues) | 64,456 | 10.8 | 60,248 | 11.1 | ||||||||||||
Total cost of products | 173,528 | 17.2 | 161,429 | 17.3 | ||||||||||||
Operating payroll and benefits | 239,965 | 23.8 | 217,939 | 23.3 | ||||||||||||
Other store operating expenses | 321,334 | 31.9 | 284,432 | 30.5 | ||||||||||||
General and administrative expenses | 49,047 | 4.9 | 45,461 | 4.9 | ||||||||||||
Depreciation and amortization expense | 97,226 | 9.6 | 87,129 | 9.3 | ||||||||||||
Pre-opening costs | 15,970 | 1.6 | 17,121 | 1.8 | ||||||||||||
Total operating costs | 897,070 | 89.0 | 813,511 | 87.1 | ||||||||||||
Operating income | 110,463 | 11.0 | 120,006 | 12.9 | ||||||||||||
Interest expense, net | 14,771 | 1.5 | 9,406 | 1.1 | ||||||||||||
Income before provision for income taxes | 95,692 | 9.5 | 110,600 | 11.8 | ||||||||||||
Provision for income taxes | 20,411 | 2.0 | 22,815 | 2.4 | ||||||||||||
Net income | $ | 75,281 | 7.5 | % | $ | 87,785 | 9.4 | % | ||||||||
Change in comparable store sales (1) | (1.9 | )% | (3.0 | )% | ||||||||||||
Company-owned stores open at end of period (1) | 134 | 118 | ||||||||||||||
Comparable stores open at end of period (1) | 99 | 86 |
Thirty-Nine Weeks Ended November 1, 2020 | Thirty-Nine Weeks Ended November 3, 2019 | |||||||||||||||
Food and beverage revenues | $ | 119,268 | 37.3 | % | $ | 410,779 | 40.8 | % | ||||||||
Amusement and other revenues | 200,423 | 62.7 | 596,754 | 59.2 | ||||||||||||
Total revenues | 319,691 | 100.0 | 1,007,533 | 100.0 | ||||||||||||
Cost of food and beverage (as a percentage of food and beverage revenues) | 32,667 | 27.4 | 109,072 | 26.6 | ||||||||||||
Cost of amusement and other (as a percentage of amusement and other revenues) | 21,997 | 11.0 | 64,456 | 10.8 | ||||||||||||
Total cost of products | 54,664 | 17.1 | 173,528 | 17.2 | ||||||||||||
Operating payroll and benefits | 85,197 | 26.6 | 239,965 | 23.8 | ||||||||||||
Other store operating expenses | 229,137 | 71.8 | 321,334 | 31.9 | ||||||||||||
General and administrative expenses | 35,587 | 11.1 | 49,047 | 4.9 | ||||||||||||
Depreciation and amortization expense | 104,896 | 32.8 | 97,226 | 9.6 | ||||||||||||
Pre-opening costs | 8,781 | 2.7 | 15,970 | 1.6 | ||||||||||||
Total operating costs | 518,262 | 162.1 | 897,070 | 89.0 | ||||||||||||
Operating income (loss) | (198,571 | ) | (62.1 | ) | 110,463 | 11.0 | ||||||||||
Interest expense, net | 22,491 | 7.0 | 14,771 | 1.5 | ||||||||||||
Loss on debt refinance | 904 | 0.3 | — | — | ||||||||||||
Income (loss) before provision (benefit) for income taxes | (221,966 | ) | (69.4 | ) | 95,692 | 9.5 | ||||||||||
Provision (benefit) for income taxes | (71,777 | ) | (22.4 | ) | 20,411 | 2.0 | ||||||||||
Net income (loss) | $ | (150,189 | ) | (47.0 | ) | $ | 75,281 | 7.5 | % | |||||||
Change in comparable store sales (1) | (70.2 | )% | (1.9 | )% | ||||||||||||
Company-owned stores at end of period (1) | 137 | 134 | ||||||||||||||
Comparable stores at end of period (1) | 114 | 99 |
(1) | As of the end of the third quarter of fiscal 2020, 104 of our 137 stores were open and 84 of our 114 comparable stores were open. Our total and comparable store counts as of the end of the third quarter of fiscal 2020 exclude a store in Chicago, Illinois and a store in Houston, Texas which are 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 has been excluded from fiscal 2019 store counts and comparable store sales. |
Thirty-nine Weeks | Thirty-nine Weeks | |||||||||||||||
Ended | Ended | |||||||||||||||
November 3, 2019 | November 4, 2018 | |||||||||||||||
Net income | $ | 75,281 | 7.5 | % | $ | 87,785 | 9.4 | % | ||||||||
Interest expense, net | 14,771 | 9,406 | ||||||||||||||
Provision for income taxes | 20,411 | 22,815 | ||||||||||||||
Depreciation and amortization expense | 97,226 | 87,129 | ||||||||||||||
EBITDA | 207,689 | 20.6 | % | 207,135 | 22.2 | % | ||||||||||
Loss on asset disposal | 1,284 | 813 | ||||||||||||||
Share-based compensation | 5,479 | 5,771 | ||||||||||||||
Pre-opening costs | 15,970 | 17,121 | ||||||||||||||
Other costs (1) | 34 | 127 | ||||||||||||||
Adjusted EBITDA | $ | 230,456 | 22.9 | % | $ | 230,967 | 24.7 | % | ||||||||
Thirty-Nine Weeks Ended November 1, 2020 | Thirty-Nine Weeks Ended November 3, 2019 | |||||||||||||||
Net income (loss) | $ | (150,189 | ) | -47.0 | % | $ | 75,281 | 7.5 | % | |||||||
Interest expense, net | 22,491 | 14,771 | ||||||||||||||
Loss on debt refinance | 904 | — | ||||||||||||||
Provision (benefit) for income taxes | (71,777 | ) | 20,411 | |||||||||||||
Depreciation and amortization expense | 104,896 | 97,226 | ||||||||||||||
EBITDA | (93,675 | ) | -29.3 | % | 207,689 | 20.6 | % | |||||||||
Loss on asset disposal | 541 | 1,284 | ||||||||||||||
Impairment of long-lived assets | 13,727 | — | ||||||||||||||
Share-based compensation | 5,344 | 5,479 | ||||||||||||||
Pre-opening costs | 8,781 | 15,970 | ||||||||||||||
Other costs (1) | 54 | 34 | ||||||||||||||
Adjusted EBITDA | $ | (65,228 | ) | -20.4 | % | $ | 230,456 | 22.9 | % | |||||||
(1) | Primarily represents costs related to currency transaction (gains) or losses. |
Thirty-nine Weeks | Thirty-nine Weeks | |||||||||||||||
Ended | Ended | |||||||||||||||
November 3, 2019 | November 4, 2018 | |||||||||||||||
Operating income | $ | 110,463 | 11.0 | % | $ | 120,006 | 12.9 | % | ||||||||
General and administrative expenses | 49,047 | 45,461 | ||||||||||||||
Depreciation and amortization expense | 97,226 | 87,129 | ||||||||||||||
Pre-opening costs | 15,970 | 17,121 | ||||||||||||||
Store Operating Income Before Depreciation and Amortization | $ | 272,706 | 27.1 | % | $ | 269,717 | 28.9 | % | ||||||||
Thirty-Nine Weeks Ended November 1, 2020 | Thirty-Nine Weeks Ended November 3, 2019 | |||||||||||||||
Operating income (loss) | $ | (198,571 | ) | -62.1 | % | $ | 110,463 | 11.0 | % | |||||||
General and administrative expenses | 35,587 | 49,047 | ||||||||||||||
Depreciation and amortization expense | 104,896 | 97,226 | ||||||||||||||
Pre-opening costs | 8,781 | 15,970 | ||||||||||||||
Store Operating Income Before Depreciation and Amortization | $ | (49,307 | ) | -15.4 | % | $ | 272,706 | 27.1 | % | |||||||
Thirty-nine Weeks | Thirty-nine Weeks | |||||||
Ended | Ended | |||||||
November 3, 2019 | November 4, 2018 | |||||||
New store and operating initiatives | $ | 143,594 | $ | 121,895 | ||||
Games | 12,667 | 25,501 | ||||||
Maintenance capital | 16,316 | 15,875 | ||||||
Total capital additions | $ | 172,577 | $ | 163,271 | ||||
Payments from landlords | $ | 28,581 | $ | 33,097 |
Thirty-Nine Weeks Ended November 1, 2020 | Thirty-Nine Weeks Ended November 3, 2019 | |||||||
New store and operating initiatives | $ | 48,222 | $ | 143,594 | ||||
Games | 9,079 | 12,667 | ||||||
Maintenance capital | 2,988 | 16,316 | ||||||
Total capital additions | $ | 60,289 | $ | 172,577 | ||||
Payments from landlords | $ | 8,723 | $ | 28,581 |
Thirty-nine weeks ended November 1, 2020 | Thirty-nine weeks ended November 3, 2019 | Change | ||||||||||
Total revenues | $ | 319,691 | $ | 1,007,533 | $ | (687,842 | ) | |||||
Total store operating weeks | 2,682 | 5,012 | (2,330 | ) | ||||||||
Comparable store revenues | $ | 268,426 | $ | 901,837 | $ | (633,411 | ) | |||||
Comparable store operating weeks | 2,184 | 4,446 | (2,262 | ) | ||||||||
Noncomparable store revenues | $ | 54,763 | $ | 110,231 | $ | (55,468 | ) | |||||
Noncomparable store operating weeks | 498 | 566 | (68 | ) | ||||||||
Other revenues | $ | (3,498 | ) | $ | (4,535 | ) | $ | 1,037 |
Comparable stores | $ | (15,520 | ) | |
Non-comparable stores | 88,451 | |||
Other | 1,085 | |||
Total | $ | 74,016 | ||
Total | 1 Year | 2-3 Years | 4-5 Years | After 5 Years | ||||||||||||||||
Senior Secured Notes | $ | 550,000 | $ | — | $ | — | $ | 550,000 | $ | — | ||||||||||
Credit Facility - Revolver (1) | 26,000 | — | — | 26,000 | — | |||||||||||||||
Interest requirements (2) | 225,395 | 46,328 | 91,087 | 87,980 | — | |||||||||||||||
Total | $ | 801,395 | $ | 46,328 | $ | 91,087 | $ | 663,980 | $ | — | ||||||||||
(1) | Available commitments under the revolving credit facility were $464,314 as of November 1, 2020, subject to a $150,000 liquidity covenant. |
(2) | The cash obligations for the variable portion of the interest requirements on the outstanding balance of the revolving credit facility and the unused commitment are based on an interest rate of 6.00% and 0.50%, respectively, through the end of the first quarter of fiscal year 2022, reduced to 4.00% and 0.40%, respectively, for the remainder of the term of the credit facility. The interest requirement on the Notes is based on a fixed rate of 7.625%. |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Period (1) | Total Number of Shares Repurchased | Average Price Paid per Share | Total Number of Shares Repurchased as Part of Publicly Announced Plan (2) | Approximate Dollar Value of Shares That May Yet Be Repurchased Under the Plan (3) | ||||||||||||
August 5, 2019 – September 1, 2019 | 2,000,000 | $ | 39.65 | 2,000,000 | $ | 190,683 | ||||||||||
September 2, 2019 – October 6, 2019 | 425,021 | $ | 42.03 | 425,021 | $ | 172,820 | ||||||||||
October 7, 2019 – November 3, 2019 | — | $ | — | — | $ | 172,820 |
Item 6. | Exhibits |
Exhibit Number | Description | |||
10.1* | Dave & Buster’s Select Executive Retirement Plan as amended and restated by Dave & Buster’s Management Corporation, Inc., effective as of January 1, 2017. | |||
31.1* | ||||
31.2* | ||||
32.1* | ||||
32.2* | ||||
101 | ||||
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: December 10, | By: | /s/ Brian A. Jenkins | ||||||
Brian A. Jenkins | ||||||||
Chief Executive Officer | ||||||||
Date: December 10, | By: | /s/ Scott J. Bowman | ||||||
Scott J. Bowman | ||||||||
Chief Financial Officer |