☒ | 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 of Incorporation) | (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 | ||
Large accelerated filer | ☒ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||
Emerging Growth Company | ☐ |
Page | |||||||
PART I | |||||||
3 | |||||||
Item 1. | |||||||
3 | |||||||
Item 2. | |||||||
18 | |||||||
Item 3. | |||||||
31 | |||||||
Item 4. | |||||||
32 | |||||||
PART II | |||||||
32 | |||||||
Item 1. | |||||||
32 | |||||||
Item 1A. | |||||||
32 | |||||||
Item 2. | |||||||
33 | |||||||
Item 6. | |||||||
34 | |||||||
Item 1. | Financial Statements |
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 | ||||
October 31, | January 31, | |||||||
2021 | 2021 | |||||||
(unaudited) | (audited) | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 27,005 | $ | 11,891 | ||||
Inventories | 37,256 | 23,807 | ||||||
Prepaid expenses | 12,376 | 11,878 | ||||||
Income taxes receivable | 67,646 | 70,064 | ||||||
Other current assets | 2,101 | 1,231 | ||||||
Total current assets | 146,384 | 118,871 | ||||||
Property and equipment (net of $891,352 and $798,804 accumulated depreciation as of October 31, 2021 and January 31, 2021, respectively) | 779,518 | 815,027 | ||||||
Operating lease right of use assets | 1,038,269 | 1,037,569 | ||||||
Deferred tax assets | 9,467 | 5,874 | ||||||
Tradenames | 79,000 | 79,000 | ||||||
Goodwill | 272,561 | 272,597 | ||||||
Other assets and deferred charges | 25,517 | 23,886 | ||||||
Total assets | $ | 2,350,716 | $ | 2,352,824 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 39,295 | $ | 36,400 | ||||
Accrued liabilities | 250,948 | 234,790 | ||||||
Income taxes payable | 435 | 446 | ||||||
Total current liabilities | 290,678 | 271,636 | ||||||
Deferred income taxes | 12,606 | 13,658 | ||||||
Operating lease liabilities | 1,270,929 | 1,267,791 | ||||||
Other liabilities | 45,267 | 50,119 | ||||||
Long-term debt, net | 484,677 | 596,388 | ||||||
Commitments and contingencies | 0 | 0 | ||||||
Stockholders’ equity: | ||||||||
Common stock, par value $0.01; authorized: 400,000,000 shares; issued: 61,364,015 shares at October 31, 2021 and 60,488,833 shares at January 31, 2021; outstanding: 48,342,301 shares at October 31, 2021 and 47,646,606 shares at January 31, 2021 | 614 | 605 | ||||||
Preferred stock, 50,000,000 authorized; NaN issued | 0— | 0— | ||||||
Paid-in capital | 545,168 | 531,191 | ||||||
Treasury stock, 13,021,714 and 12,842,227 shares as of October 31, 2021 and January 31, 2021, respectively | (603,745 | ) | (595,970 | ) | ||||
Accumulated other comprehensive loss | (4,959 | ) | (9,085 | ) | ||||
Retained earnings | 309,481 | 226,491 | ||||||
Total stockholders’ equity | 246,559 | 153,232 | ||||||
Total liabilities and stockholders’ equity | $ | 2,350,716 | $ | 2,352,824 | ||||
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 |
Thirteen Weeks | Thirteen Weeks | |||||||
Ended | Ended | |||||||
October 31, 2021 | November 1, 2020 | |||||||
Food and beverage revenues | $ | 107,747 | $ | 38,346 | ||||
Amusement and other revenues | 210,229 | 70,706 | ||||||
Total revenues | 317,976 | 109,052 | ||||||
Cost of food and beverage | 30,082 | 10,664 | ||||||
Cost of amusement and other | 22,531 | 7,244 | ||||||
Total cost of products | 52,613 | 17,908 | ||||||
Operating payroll and benefits | 78,995 | 27,704 | ||||||
Other store operating expenses | 103,322 | 70,783 | ||||||
General and administrative expenses | 22,104 | 11,746 | ||||||
Depreciation and amortization expense | 34,381 | 34,384 | ||||||
Pre-opening costs | 2,092 | 2,570 | ||||||
Total operating costs | 293,507 | 165,095 | ||||||
Operating income (loss) | 24,469 | (56,043 | ) | |||||
Interest expense, net | 13,423 | 8,213 | ||||||
Loss on debt extinguishment / refinancing | 2,829 | 904 | ||||||
Income (loss) before benefit for income taxes | 8,217 | (65,160 | ) | |||||
Benefit for income taxes | (2,368 | ) | (17,117 | ) | ||||
Net income (loss) | 10,585 | (48,043 | ) | |||||
Unrealized foreign currency translation gain (loss) | (34 | ) | 34 | |||||
Unrealized gain on derivatives, net of tax | 1,371 | 1,370 | ||||||
Total other comprehensive income | 1,337 | 1,404 | ||||||
Total comprehensive income (loss) | $ | 11,922 | $ | (46,639 | ) | |||
Net income (loss) per share: | ||||||||
Basic | $ | 0.22 | $ | (1.01 | ) | |||
Diluted | $ | 0.21 | $ | (1.01 | ) | |||
Weighted average shares used in per share calculations: | ||||||||
Basic | 48,277,358 | 47,613,741 | ||||||
Diluted | 49,283,503 | 47,613,741 |
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 |
Thirty-Nine Weeks | Thirty-Nine Weeks | |||||||
Ended | Ended | |||||||
October 31, 2021 | November 1, 2020 | |||||||
Food and beverage revenues | $ | 316,511 | $ | 119,268 | ||||
Amusement and other revenues | 644,443 | 200,423 | ||||||
Total revenues | 960,954 | 319,691 | ||||||
Cost of food and beverage | 86,366 | 32,667 | ||||||
Cost of amusement and other | 63,729 | 21,997 | ||||||
Total cost of products | 150,095 | 54,664 | ||||||
Operating payroll and benefits | 209,897 | 85,197 | ||||||
Other store operating expenses | 292,883 | 229,137 | ||||||
General and administrative expenses | 57,665 | 35,587 | ||||||
Depreciation and amortization expense | 104,355 | 104,896 | ||||||
Pre-opening costs | 5,427 | 8,781 | ||||||
Total operating costs | 820,322 | 518,262 | ||||||
Operating income (loss) | 140,632 | (198,571 | ) | |||||
Interest expense, net | 41,971 | 22,491 | ||||||
Loss on debt extinguishment / refinancing | 2,829 | 904 | ||||||
Income (loss) before provision (benefit) for income taxes | 95,832 | (221,966 | ) | |||||
Provision (benefit) for income taxes | 12,842 | (71,777 | ) | |||||
Net income (loss) | 82,990 | (150,189 | ) | |||||
Unrealized foreign currency translation gain (loss) | 12 | (97 | ) | |||||
Unrealized gain (loss) on derivatives, net of tax | 4,114 | (2,207 | ) | |||||
Total other comprehensive income (loss) | 4,126 | (2,304 | ) | |||||
Total comprehensive income (loss) | $ | 87,116 | $ | (152,493 | ) | |||
Net income (loss) per share: | ||||||||
Basic | $ | 1.73 | $ | (3.56 | ) | |||
Diluted | $ | 1.68 | $ | (3.56 | ) | |||
Weighted average shares used in per share calculations: | ||||||||
Basic | 48,050,558 | 42,185,163 | ||||||
Diluted | 49,257,269 | 42,185,163 |
Thirteen Weeks Ended October 31, 2021 | ||||||||||||||||||||||||||||||||
Common Stock | Paid-In Capital | Treasury Stock At Cost | Accumulated Other Comprehensive Loss | Retained Earnings | Total | |||||||||||||||||||||||||||
Shares | Amt. | Shares | Amt. | |||||||||||||||||||||||||||||
Balance August 1, 2021 | 61,276,473 | $ | 613 | $ | 540,348 | 13,020,098 | $ | (603,686 | ) | $ | (6,296 | ) | $ | 298,896 | $ | 229,875 | ||||||||||||||||
Net income | — | — | — | — | — | — | 10,585 | 10,585 | ||||||||||||||||||||||||
Unrealized foreign currency translation loss | — | — | — | — | — | (34 | ) | — | (34 | ) | ||||||||||||||||||||||
Unrealized gain on derivatives, net of tax | — | — | — | — | — | 1,371 | — | 1,371 | ||||||||||||||||||||||||
Share-based compensation | — | — | 3,778 | — | — | — | — | 3,778 | ||||||||||||||||||||||||
Issuance of common stock | 87,542 | 1 | 1,042 | — | — | — | — | 1,043 | ||||||||||||||||||||||||
Repurchase of common stock | — | — | — | 1,616 | (59 | ) | — | — | (59 | ) | ||||||||||||||||||||||
Balance October 31, 2021 | 61,364,015 | $ | 614 | $ | 545,168 | 13,021,714 | $ | (603,745 | ) | $ | (4,959 | ) | $ | 309,481 | $ | 246,559 | ||||||||||||||||
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 | ||||||||||||||||
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 | ||||||||||||||||
Thirty-Nine Weeks Ended October 31, 2021 | ||||||||||||||||||||||||||||||||
Common Stock | Paid-In Capital | Treasury Stock At Cost | Accumulated Other Comprehensive Loss | Retained Earnings | Total | |||||||||||||||||||||||||||
Shares | Amt. | Shares | Amt. | |||||||||||||||||||||||||||||
Balance January 31, 2021 | 60,488,833 | $ | 605 | $ | 531,191 | 12,842,227 | $ | (595,970 | ) | $ | (9,085 | ) | $ | 226,491 | $ | 153,232 | ||||||||||||||||
Net income | — | — | — | — | — | — | 82,990 | 82,990 | ||||||||||||||||||||||||
Unrealized foreign currency translation gain | — | — | — | — | — | 12 | — | 12 | ||||||||||||||||||||||||
Unrealized gain on derivatives, net of tax | — | — | — | — | — | 4,114 | — | 4,114 | ||||||||||||||||||||||||
Share-based compensation | — | — | 9,936 | — | — | — | — | 9,936 | ||||||||||||||||||||||||
Issuance of common stock | 875,182 | 9 | 4,041 | — | — | — | — | 4,050 | ||||||||||||||||||||||||
Repurchase of common stock | — | — | — | 179,487 | (7,775 | ) | — | — | (7,775 | ) | ||||||||||||||||||||||
Balance October 31, 2021 | 61,364,015 | $ | 614 | $ | 545,168 | 13,021,714 | $ | (603,745 | ) | $ | (4,959 | ) | $ | 309,481 | $ | 246,559 | ||||||||||||||||
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 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 October 31, 2021 | Thirty-Nine Weeks Ended November 1, 2020 | |||||||||||||||
November 1, | November 3, | |||||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net income (loss) | $ | (150,189 | ) | $ | 75,281 | $ | 82,990 | $ | (150,189 | ) | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||||||
Depreciation and amortization expense | 104,896 | 97,226 | 104,355 | 104,896 | ||||||||||||
Non-cash interest expense | 4,088 | 0 | 5,660 | 4,088 | ||||||||||||
Impairment of long-lived assets | 13,727 | 0 | — | 13,727 | ||||||||||||
Deferred taxes | (17,730 | ) | 5,309 | (6,191 | ) | (17,730 | ) | |||||||||
Loss on disposal of fixed assets | 541 | 1,284 | 634 | 541 | ||||||||||||
Loss on debt refinance | 904 | 0 | ||||||||||||||
Loss on debt extinguishment or refinancing | 2,829 | 904 | ||||||||||||||
Share-based compensation | 5,344 | 5,479 | 9,936 | 5,344 | ||||||||||||
Other, net | 1,292 | 928 | 3,250 | 1,292 | ||||||||||||
Changes in assets and liabilities: | ||||||||||||||||
Inventories | 7,745 | (5,305 | ) | (13,449 | ) | 7,745 | ||||||||||
Prepaid expenses | 2,761 | (615 | ) | (498 | ) | 2,761 | ||||||||||
Income tax receivable | (42,243 | ) | (996 | ) | 2,418 | (42,243 | ) | |||||||||
Other current assets | 2,580 | 6,050 | (870 | ) | 2,580 | |||||||||||
Other assets and deferred charges | (3 | ) | (1,775 | ) | (1,859 | ) | (3 | ) | ||||||||
Accounts payable | (11,945 | ) | 5,422 | (3,419 | ) | (11,945 | ) | |||||||||
Accrued liabilities | 44,742 | 37,671 | 19,069 | 44,742 | ||||||||||||
Income taxes payable | (2,639 | ) | (10,079 | ) | (11 | ) | (2,639 | ) | ||||||||
Other liabilities | 4,375 | 1,909 | (6,346 | ) | 4,375 | |||||||||||
Net cash provided by (used in) operating activities | (31,754 | ) | 217,789 | 198,498 | (31,754 | ) | ||||||||||
Cash flows from investing activities: | ||||||||||||||||
Capital expenditures | (72,604 | ) | (172,888 | ) | (63,559 | ) | (72,604 | ) | ||||||||
Proceeds from sales of property and equipment | 234 | 615 | 550 | 234 | ||||||||||||
Net cash used in investing activities | (72,370 | ) | (172,273 | ) | (63,009 | ) | (72,370 | ) | ||||||||
Cash flows from financing activities: | ||||||||||||||||
Proceeds from debt | 688,000 | 366,000 | 37,000 | 688,000 | ||||||||||||
Payments of debt | (760,250 | ) | (104,250 | ) | (152,000 | ) | (760,250 | ) | ||||||||
Net proceeds from the issuance of common stock | 182,207 | 0 | — | 182,207 | ||||||||||||
Proceeds from the exercise of stock options | 465 | 778 | 4,050 | 465 | ||||||||||||
Repurchase of common stock under share repurchase program | 0 | (297,317 | ) | |||||||||||||
Dividends paid | (4,891 | ) | (10,837 | ) | — | (4,891 | ) | |||||||||
Debt issuance costs | (16,805 | ) | 0 | |||||||||||||
Repurchases of common stock to satisfy employee withholding tax obligations | (916 | ) | (595 | ) | (7,775 | ) | (16,805 | ) | ||||||||
Debt issuance costs and prepayment premiums | (1,650 | ) | (916 | ) | ||||||||||||
Net cash provided by (used in) financing activities | 87,810 | (46,221 | ) | (120,375 | ) | 87,810 | ||||||||||
Decrease in cash and cash equivalents | (16,314 | ) | (705 | ) | ||||||||||||
Increase (decrease) in cash and cash equivalents | 15,114 | (16,314 | ) | |||||||||||||
Beginning cash and cash equivalents | 24,655 | 21,585 | 11,891 | 24,655 | ||||||||||||
Ending cash and cash equivalents | $ | 8,341 | $ | 20,880 | $ | 27,005 | $ | 8,341 | ||||||||
Supplemental disclosures of cash flow information: | ||||||||||||||||
Decrease in fixed asset accounts payable | $ | (12,315 | ) | $ | (311 | ) | ||||||||||
Increase (decrease) in fixed asset accounts payable | $ | 6,314 | $ | (12,315 | ) | |||||||||||
Cash paid (refund received) for income taxes, net | $ | (9,281 | ) | $ | 26,086 | $ | 16,043 | $ | (9,281 | ) | ||||||
Cash paid for interest, net | $ | 17,306 | $ | 13,920 | $ | 43,910 | $ | 17,306 | ||||||||
Dividend declared, not paid | $ | 0 | $ | 4,887 |
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 | ) | ||||||
Fair Value | ||||||||||||
Balance Sheet Location | October 31, 2021 | January 31, 2021 | ||||||||||
Interest rate swaps | Accrued liabilities | $ | (6,384 | ) | $ | (8,350 | ) | |||||
Interest rate swaps | Other liabilities | — | (4,416 | ) | ||||||||
Total derivatives | $ | (6,384 | ) | $ | (12,766 | ) | ||||||
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 | ) |
Thirteen weeks ended | Thirty-nine weeks ended | |||||||||||||||
October 31, 2021 | November 1, 2020 | October 31, 2021 | November 1, 2020 | |||||||||||||
Loss recorded in accumulated other comprehensive income | $ | 0 | $ | 0 | $ | — | $ | 7,602 | ||||||||
Loss reclassified into income (1) | $ | (1,886 | ) | $ | (1,886 | ) | $ | (5,660 | ) | $ | (4,566 | ) | ||||
Income tax expense (benefit) in accumulated income | $ | 515 | $ | 516 | $ | 1,546 | $ | (829 | ) |
(1) | Amounts reclassified into income are included in “Interest expense, net” in the Consolidated Statements of ComprehensiveIncome (Loss). |
Thirteen weeks ended | Thirty-nine weeks ended | |||||||||||||||
October 31, 2021 | November 1, 2020 | October 31, 2021 | November 1, 2020 | |||||||||||||
Basic weighted average shares outstanding | 48,277,358 | 47,613,741 | 48,050,558 | 42,185,163 | ||||||||||||
Weighted average dilutive impact of awards (1) | 1,006,145 | 0 | 1,206,711 | 0 | ||||||||||||
Diluted weighted average shares outstanding | 49,283,503 | 47,613,741 | 49,257,269 | 42,185,163 |
(1) | Amounts exclude all potential common and common equivalent shares for periods when there is a net loss. |
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 | ||||
October 31, 2021 | January 31, 2021 | |||||||
Deferred amusement revenue | $ | 92,909 | $ | 78,852 | ||||
Current portion of operating lease liabilities, net (1) | 51,735 | 46,471 | ||||||
Compensation and benefits | 24,702 | 13,846 | ||||||
Current portion of deferred occupancy costs | 22,564 | 36,121 | ||||||
Property taxes | 10,449 | 8,149 | ||||||
Deferred gift card revenue | 9,564 | 10,918 | ||||||
Current portion of derivatives | 6,384 | 8,350 | ||||||
Utilities | 5,453 | 4,151 | ||||||
Current portion of long-term insurance | 5,100 | 5,100 | ||||||
Sales and use taxes | 4,177 | 1,385 | ||||||
Customer deposits | 4,130 | 1,373 | ||||||
Accrued interest | 256 | 11,321 | ||||||
Other | 13,525 | 8,753 | ||||||
Total accrued liabilities | $ | 250,948 | $ | 234,790 | ||||
(1) | The balance of leasehold incentive receivables of . |
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 | ||||
October 31, 2021 | January 31, 2021 | |||||||
Senior secured notes | $ | 495,000 | $ | 550,000 | ||||
Credit facility - revolver | 0 | 60,000 | ||||||
Total debt outstanding | 495,000 | 610,000 | ||||||
Less debt issuance costs | (10,323 | ) | (13,612 | ) | ||||
Long-term debt, net | $ | 484,677 | $ | 596,388 | ||||
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | |||||||||||||||||||||||||||||||
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | October 31, 2021 | November 1, 2020 | October 31, 2021 | November 1, 2020 | |||||||||||||||||||||||||||
November 1, 2020 | November 3, 2019 | November 1, 2020 | November 3, 2019 | |||||||||||||||||||||||||||||
Interest expense on debt | $ | 6,092 | 5,769 | $ | 17,255 | 14,672 | $ | 10,782 | $ | 6,092 | $ | 33,921 | $ | 17,255 | ||||||||||||||||||
Interest associated with swap agreements | 1,886 | 326 | 4,566 | 338 | 1,886 | 1,886 | 5,660 | 4,566 | ||||||||||||||||||||||||
Amortization of issuance cost | 427 | 198 | 1,081 | 594 | 1,070 | 427 | 3,275 | 1,081 | ||||||||||||||||||||||||
Interest income | — | (24 | ) | (22 | ) | (75 | ) | — | — | — | (22 | ) | ||||||||||||||||||||
Capitalized interest | (192 | ) | (159 | ) | (389 | ) | (758 | ) | (315 | ) | (192 | ) | (885 | ) | (389 | ) | ||||||||||||||||
Total interest expense, net | $ | 8,213 | $ | 6,110 | $ | 22,491 | $ | 14,771 | $ | 13,423 | $ | 8,213 | $ | 41,971 | $ | 22,491 | ||||||||||||||||
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | |||||||||||||||||||||||||||||||
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | October 31, 2021 | November 1, 2020 | October 31, 2021 | November 1, 2020 | |||||||||||||||||||||||||||
November 1, 2020 | November 3, 2019 | November 1, 2020 | November 3, 2019 | |||||||||||||||||||||||||||||
Operating lease cost | $ | 33,278 | 31,489 | $ | 100,162 | 91,729 | $ | 33,915 | 33,278 | $ | 100,506 | 100,162 | ||||||||||||||||||||
Variable lease cost | 5,351 | 7,692 | 18,405 | 22,335 | 7,862 | 5,351 | 22,492 | 18,405 | ||||||||||||||||||||||||
Short-term lease cost | 102 | 108 | 329 | 324 | 121 | 102 | 431 | 329 | ||||||||||||||||||||||||
Total | $ | 38,731 | $ | 39,289 | $ | 118,896 | $ | 114,388 | $ | 41,898 | $ | 38,731 | $ | 123,429 | $ | 118,896 | ||||||||||||||||
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 |
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 | ||||||||
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | |||||||||||||||
October 31, 2021 | November 1, 2020 | October 31, 2021 | November 1, 2020 | |||||||||||||
Stock options | $ | 88 | 269 | $ | 446 | 1,099 | ||||||||||
Restricted stock units | 3,690 | 2,730 | 9,490 | 4,245 | ||||||||||||
Share-based compensation expense | $ | 3,778 | $ | 2,999 | $ | 9,936 | $ | 5,344 | ||||||||
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 | ||||||||||
2014 Stock Incentive Plan | 2010 Stock Incentive Plan | |||||||||||||||
Number | Wtd. Avg. | Number | Wtd. Avg. | |||||||||||||
of Options | Exercise Price | of Options | Exercise Price | |||||||||||||
Outstanding at January 31, 2021 | 1,231,601 | $ | 36.77 | 173,563 | $ | 7.51 | ||||||||||
Granted | — | — | — | — | ||||||||||||
Exercised | (203,861 | ) | 16.48 | (100,009 | ) | 6.90 | ||||||||||
Forfeited | (13,167 | ) | 45.75 | — | — | |||||||||||
Outstanding at October 31, 2021 | 1,014,573 | $ | 40.73 | 73,554 | $ | 8.33 | ||||||||||
Exercisable at October 31, 2021 | 950,187 | $ | 39.97 | 73,554 | $ | 8.33 | ||||||||||
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 | |||||
Wtd. Avg. | ||||||||
Shares | Fair Value | |||||||
Outstanding at January 31, 2021 | 1,116,341 | $ | 17.32 | |||||
Granted | 301,847 | 47.82 | ||||||
Performance adjusted units | 362,491 | 15.30 | ||||||
Vested | (571,312 | ) | 15.39 | |||||
Forfeited | (51,686 | ) | 38.01 | |||||
Outstanding at October 31, 2021 | 1,157,681 | $ | 24.67 | |||||
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations |
Thirteen Weeks | Thirteen Weeks | |||||||||||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||||||||||
Thirteen Weeks Ended November 1, 2020 | Thirteen Weeks Ended November 3, 2019 | October 31, 2021 | November 1, 2020 | |||||||||||||||||||||||||||||
Food and beverage revenues | $ | 38,346 | 35.2 | % | $ | 124,637 | 41.6 | % | $ | 107,747 | 33.9 | % | $ | 38,346 | 35.2 | % | ||||||||||||||||
Amusement and other revenues | 70,706 | 64.8 | 174,715 | 58.4 | 210,229 | 66.1 | 70,706 | 64.8 | ||||||||||||||||||||||||
Total revenues | 109,052 | 100.0 | 299,352 | 100.0 | 317,976 | 100.0 | 109,052 | 100.0 | ||||||||||||||||||||||||
Cost of food and beverage (as a percentage of food and beverage revenues) | 10,664 | 27.8 | 33,384 | 26.8 | 30,082 | 27.9 | 10,664 | 27.8 | ||||||||||||||||||||||||
Cost of amusement and other (as a percentage of amusement and other revenues) | 7,244 | 10.2 | 18,796 | 10.8 | 22,531 | 10.7 | 7,244 | 10.2 | ||||||||||||||||||||||||
Total cost of products | 17,908 | 16.4 | 52,180 | 17.4 | 52,613 | 16.5 | 17,908 | 16.4 | ||||||||||||||||||||||||
Operating payroll and benefits | 27,704 | 25.4 | 76,165 | 25.4 | 78,995 | 24.8 | 27,704 | 25.4 | ||||||||||||||||||||||||
Other store operating expenses | 70,783 | 64.9 | 110,713 | 37.1 | 103,322 | 32.5 | 70,783 | 64.9 | ||||||||||||||||||||||||
General and administrative expenses | 11,746 | 10.8 | 16,210 | 5.4 | 22,104 | 7.0 | 11,746 | 10.8 | ||||||||||||||||||||||||
Depreciation and amortization expense | 34,384 | 31.5 | 33,340 | 11.1 | 34,381 | 10.8 | 34,384 | 31.5 | ||||||||||||||||||||||||
Pre-opening costs | 2,570 | 2.4 | 4,245 | 1.4 | 2,092 | 0.7 | 2,570 | 2.4 | ||||||||||||||||||||||||
Total operating costs | 165,095 | 151.4 | 292,853 | 97.8 | 293,507 | 92.3 | 165,095 | 151.4 | ||||||||||||||||||||||||
Operating income (loss) | (56,043 | ) | (51.4 | ) | 6,499 | 2.2 | 24,469 | 7.7 | (56,043 | ) | (51.4 | ) | ||||||||||||||||||||
Interest expense, net | 8,213 | 7.6 | 6,110 | 2.1 | 13,423 | 4.2 | 8,213 | 7.6 | ||||||||||||||||||||||||
Loss on debt refinance | 904 | 0.8 | — | — | ||||||||||||||||||||||||||||
Loss on debt extinguishment / refinancing | 2,829 | 0.9 | 904 | 0.8 | ||||||||||||||||||||||||||||
Income (loss) before benefit for income taxes | (65,160 | ) | (59.8 | ) | 389 | 0.1 | 8,217 | 2.6 | (65,160 | ) | (59.8 | ) | ||||||||||||||||||||
Benefit for income taxes | (17,117 | ) | (15.7 | ) | (93 | ) | (0.1 | ) | (2,368 | ) | (0.7 | ) | (17,117 | ) | (15.7 | ) | ||||||||||||||||
Net income (loss) | $ | (48,043 | ) | (44.1 | )% | $ | 482 | 0.2 | % | $ | 10,585 | 3.3 | % | $ | (48,043 | ) | (44.1 | )% | ||||||||||||||
Change in comparable store sales (1) | (65.6 | )% | (4.1 | )% | 189.3 | % | (65.6 | )% | ||||||||||||||||||||||||
Company-owned stores at end of period (1) | 137 | 134 | 143 | 137 | ||||||||||||||||||||||||||||
Comparable stores at end of period (1) | 114 | 99 | 114 | 114 |
(1) | As of the end of the third quarter of fiscal 2020, 104 of our 137 total stores re-open. |
Thirteen Weeks | Thirteen Weeks | |||||||||||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||||||||||
Thirteen Weeks Ended November 1, 2020 | Thirteen Weeks Ended November 3, 2019 | October 31, 2021 | November 1, 2020 | |||||||||||||||||||||||||||||
Net income (loss) | $ | (48,043 | ) | -44.1 | % | $ | 482 | 0.2 | % | $ | 10,585 | 3.3 | % | $ | (48,043 | ) | -44.1 | % | ||||||||||||||
Interest expense, net | 8,213 | 6,110 | 13,423 | 8,213 | ||||||||||||||||||||||||||||
Loss on debt refinance | 904 | — | ||||||||||||||||||||||||||||||
Loss on debt extinguishment / refinancing | 2,829 | 904 | ||||||||||||||||||||||||||||||
Benefit for income taxes | (17,117 | ) | (93 | ) | (2,368 | ) | (17,117 | ) | ||||||||||||||||||||||||
Depreciation and amortization expense | 34,384 | 33,340 | 34,381 | 34,384 | ||||||||||||||||||||||||||||
EBITDA | (21,659 | ) | -19.9 | % | 39,839 | 13.3 | % | 58,850 | 18.5 | % | (21,659 | ) | -19.9 | % | ||||||||||||||||||
Loss on asset disposal | 124 | 458 | 377 | 124 | ||||||||||||||||||||||||||||
Share-based compensation | 2,999 | 1,747 | 3,778 | 2,999 | ||||||||||||||||||||||||||||
Pre-opening costs | 2,570 | 4,245 | 2,092 | 2,570 | ||||||||||||||||||||||||||||
Other costs (1) | (5 | ) | 1 | 3,112 | (5 | ) | ||||||||||||||||||||||||||
Adjusted EBITDA | $ | (15,971 | ) | -14.6 | % | $ | 46,290 | 15.5 | % | $ | 68,209 | 21.5 | % | $ | (15,971 | ) | -14.6 | % | ||||||||||||||
(1) | Primarily represents costs related to currency transaction (gains) or losses. The third quarter of fiscal 2021 includes a $3,230 severance obligation to the Company’s former Chief Executive Officer, who terminated his service in this position effective September 30, 2021. |
Thirteen Weeks | Thirteen Weeks | |||||||||||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||||||||||
Thirteen Weeks Ended November 1, 2020 | Thirteen Weeks Ended November 3, 2019 | October 31, 2021 | November 1, 2020 | |||||||||||||||||||||||||||||
Operating income (loss) | $ | (56,043 | ) | -51.4 | % | $ | 6,499 | 2.2 | % | $ | 24,469 | 7.7 | % | $ | (56,043 | ) | -51.4 | % | ||||||||||||||
General and administrative expenses | 11,746 | 16,210 | 22,104 | 11,746 | ||||||||||||||||||||||||||||
Depreciation and amortization expense | 34,384 | 33,340 | 34,381 | 34,384 | ||||||||||||||||||||||||||||
Pre-opening costs | 2,570 | 4,245 | 2,092 | 2,570 | ||||||||||||||||||||||||||||
Store Operating Income Before Depreciation and Amortization | $ | (7,343 | ) | -6.7 | % | $ | 60,294 | 20.1 | % | $ | 83,046 | 26.1 | % | $ | (7,343 | ) | -6.7 | % | ||||||||||||||
Thirteen Weeks | Thirteen Weeks | |||||||||||||||
Ended | Ended | |||||||||||||||
Thirteen Weeks Ended November 1, 2020 | Thirteen Weeks Ended November 3, 2019 | October 31, 2021 | November 1, 2020 | |||||||||||||
New store and operating initiatives | $ | 7,700 | $ | 52,147 | $ | 20,616 | $ | 7,700 | ||||||||
Games | 361 | 2,825 | 195 | 361 | ||||||||||||
Maintenance capital | 1,208 | 5,831 | 8,402 | 1,208 | ||||||||||||
Total capital additions | $ | 9,269 | $ | 60,803 | $ | 29,213 | $ | 9,269 | ||||||||
Payments from landlords | $ | 4,709 | $ | 7,240 | $ | 5,717 | $ | 4,709 |
Thirteen Weeks Ended | ||||||||||||||||||||||||
Thirteen weeks ended November 1, 2020 | Thirteen weeks ended November 3, 2019 | Change | October 31, 2021 | November 1, 2020 | Change | |||||||||||||||||||
Total revenues | $ | 109,052 | $ | 299,352 | $ | (190,300 | ) | $ | 317,976 | $ | 109,052 | $ | 208,924 | |||||||||||
Total store operating weeks | 1,221 | 1,722 | (501 | ) | 1,854 | 1,221 | 633 | |||||||||||||||||
Comparable store revenues | $ | 89,592 | $ | 260,131 | $ | (170,539 | ) | $ | 259,206 | $ | 89,592 | $ | 169,614 | |||||||||||
Comparable store operating weeks | 993 | 1,482 | (489 | ) | 1,482 | 993 | 489 | |||||||||||||||||
Noncomparable store revenues | $ | 20,092 | 40,131 | $ | (20,039 | ) | $ | 55,356 | 20,092 | $ | 35,264 | |||||||||||||
Noncomparable store operating weeks | 228 | 240 | (12 | ) | 372 | 228 | 144 | |||||||||||||||||
Other revenues | $ | (632 | ) | $ | (910 | ) | $ | 278 | ||||||||||||||||
Other revenues and deferrals | $ | 3,414 | $ | (632 | ) | $ | 4,046 |
Thirty-Nine Weeks | Thirty-Nine Weeks | |||||||||||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||||||||||
Thirty-Nine Weeks Ended November 1, 2020 | Thirty-Nine Weeks Ended November 3, 2019 | October 31, 2021 | November 1, 2020 | |||||||||||||||||||||||||||||
Food and beverage revenues | $ | 119,268 | 37.3 | % | $ | 410,779 | 40.8 | % | $ | 316,511 | 32.9 | % | $ | 119,268 | 37.3 | % | ||||||||||||||||
Amusement and other revenues | 200,423 | 62.7 | 596,754 | 59.2 | 644,443 | 67.1 | 200,423 | 62.7 | ||||||||||||||||||||||||
Total revenues | 319,691 | 100.0 | 1,007,533 | 100.0 | 960,954 | 100.0 | 319,691 | 100.0 | ||||||||||||||||||||||||
Cost of food and beverage (as a percentage of food and beverage revenues) | 32,667 | 27.4 | 109,072 | 26.6 | 86,366 | 27.3 | 32,667 | 27.4 | ||||||||||||||||||||||||
Cost of amusement and other (as a percentage of amusement and other revenues) | 21,997 | 11.0 | 64,456 | 10.8 | 63,729 | 9.9 | 21,997 | 11.0 | ||||||||||||||||||||||||
Total cost of products | 54,664 | 17.1 | 173,528 | 17.2 | 150,095 | 15.6 | 54,664 | 17.1 | ||||||||||||||||||||||||
Operating payroll and benefits | 85,197 | 26.6 | 239,965 | 23.8 | 209,897 | 21.8 | 85,197 | 26.6 | ||||||||||||||||||||||||
Other store operating expenses | 229,137 | 71.8 | 321,334 | 31.9 | 292,883 | 30.5 | 229,137 | 71.8 | ||||||||||||||||||||||||
General and administrative expenses | 35,587 | 11.1 | 49,047 | 4.9 | 57,665 | 6.0 | 35,587 | 11.1 | ||||||||||||||||||||||||
Depreciation and amortization expense | 104,896 | 32.8 | 97,226 | 9.6 | 104,355 | 10.9 | 104,896 | 32.8 | ||||||||||||||||||||||||
Pre-opening costs | 8,781 | 2.7 | 15,970 | 1.6 | 5,427 | 0.6 | 8,781 | 2.7 | ||||||||||||||||||||||||
Total operating costs | 518,262 | 162.1 | 897,070 | 89.0 | 820,322 | 85.4 | 518,262 | 162.1 | ||||||||||||||||||||||||
Operating income (loss) | (198,571 | ) | (62.1 | ) | 110,463 | 11.0 | 140,632 | 14.6 | (198,571 | ) | (62.1 | ) | ||||||||||||||||||||
Interest expense, net | 22,491 | 7.0 | 14,771 | 1.5 | 41,971 | 4.3 | 22,491 | 7.0 | ||||||||||||||||||||||||
Loss on debt refinance | 904 | 0.3 | — | — | ||||||||||||||||||||||||||||
Loss on debt extinguishment / refinancing | 2,829 | 0.3 | 904 | 0.3 | ||||||||||||||||||||||||||||
Income (loss) before provision (benefit) for income taxes | (221,966 | ) | (69.4 | ) | 95,692 | 9.5 | 95,832 | 10.0 | (221,966 | ) | (69.4 | ) | ||||||||||||||||||||
Provision (benefit) for income taxes | (71,777 | ) | (22.4 | ) | 20,411 | 2.0 | 12,842 | 1.4 | (71,777 | ) | (22.4 | ) | ||||||||||||||||||||
Net income (loss) | $ | (150,189 | ) | (47.0 | ) | $ | 75,281 | 7.5 | % | $ | 82,990 | 8.6 | % | $ | (150,189 | ) | (47.0 | )% | ||||||||||||||
Change in comparable store sales (1) | (70.2 | )% | (1.9 | )% | 195.8 | % | (70.2 | )% | ||||||||||||||||||||||||
Company-owned stores at end of period (1) | 137 | 134 | 143 | 137 | ||||||||||||||||||||||||||||
Comparable stores at end of period (1) | 114 | 99 | 114 | 114 |
(1) | As of the end of the third quarter of fiscal 2020, 104 of our 137 total stores re-open. |
Thirty-Nine Weeks | Thirty-Nine Weeks | |||||||||||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||||||||||
Thirty-Nine Weeks Ended November 1, 2020 | Thirty-Nine Weeks Ended November 3, 2019 | October 31, 2021 | November 1, 2020 | |||||||||||||||||||||||||||||
Net income (loss) | $ | (150,189 | ) | -47.0 | % | $ | 75,281 | 7.5 | % | $ | 82,990 | 8.6 | % | $ | (150,189 | ) | -47.0 | % | ||||||||||||||
Interest expense, net | 22,491 | 14,771 | 41,971 | 22,491 | ||||||||||||||||||||||||||||
Loss on debt refinance | 904 | — | ||||||||||||||||||||||||||||||
Loss on debt extinguishment / refinancing | 2,829 | 904 | ||||||||||||||||||||||||||||||
Provision (benefit) for income taxes | (71,777 | ) | 20,411 | 12,842 | (71,777 | ) | ||||||||||||||||||||||||||
Depreciation and amortization expense | 104,896 | 97,226 | 104,355 | 104,896 | ||||||||||||||||||||||||||||
EBITDA | (93,675 | ) | -29.3 | % | 207,689 | 20.6 | % | 244,987 | 25.5 | % | (93,675 | ) | -29.3 | % | ||||||||||||||||||
Loss on asset disposal | 541 | 1,284 | 634 | 541 | ||||||||||||||||||||||||||||
Impairment of long-lived assets | 13,727 | — | ||||||||||||||||||||||||||||||
Impairment of long-lived assets and lease termination costs | — | 13,727 | ||||||||||||||||||||||||||||||
Share-based compensation | 5,344 | 5,479 | 9,936 | 5,344 | ||||||||||||||||||||||||||||
Pre-opening costs | 8,781 | 15,970 | 5,427 | 8,781 | ||||||||||||||||||||||||||||
Other costs (1) | 54 | 34 | 3,082 | 54 | ||||||||||||||||||||||||||||
Adjusted EBITDA | $ | (65,228 | ) | -20.4 | % | $ | 230,456 | 22.9 | % | $ | 264,066 | 27.5 | % | $ | (65,228 | ) | -20.4 | % | ||||||||||||||
(1) | Primarily represents costs related to currency transaction (gains) or losses. The third quarter of fiscal 2021 includes a $3,230 severance obligation to the Company’s former Chief Executive Officer, who terminated his service in this position effective September 30, 2021. |
Thirty-Nine Weeks | Thirty-Nine Weeks | |||||||||||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||||||||||
Thirty-Nine Weeks Ended November 1, 2020 | Thirty-Nine Weeks Ended November 3, 2019 | October 31, 2021 | November 1, 2020 | |||||||||||||||||||||||||||||
Operating income (loss) | $ | (198,571 | ) | -62.1 | % | $ | 110,463 | 11.0 | % | $ | 140,632 | 14.6 | % | $ | (198,571 | ) | -62.1 | % | ||||||||||||||
General and administrative expenses | 35,587 | 49,047 | 57,665 | 35,587 | ||||||||||||||||||||||||||||
Depreciation and amortization expense | 104,896 | 97,226 | 104,355 | 104,896 | ||||||||||||||||||||||||||||
Pre-opening costs | 8,781 | 15,970 | 5,427 | 8,781 | ||||||||||||||||||||||||||||
Store Operating Income Before Depreciation and Amortization | $ | (49,307 | ) | -15.4 | % | $ | 272,706 | 27.1 | % | $ | 308,079 | 32.1 | % | $ | (49,307 | ) | -15.4 | % | ||||||||||||||
Thirty-Nine Weeks | Thirty-Nine Weeks | |||||||||||||||
Ended | Ended | |||||||||||||||
Thirty-Nine Weeks Ended November 1, 2020 | Thirty-Nine Weeks Ended November 3, 2019 | October 31, 2021 | November 1, 2020 | |||||||||||||
New store and operating initiatives | $ | 48,222 | $ | 143,594 | $ | 40,372 | $ | 48,222 | ||||||||
Games | 9,079 | 12,667 | 12,809 | 9,079 | ||||||||||||
Maintenance capital | 2,988 | 16,316 | 16,692 | 2,988 | ||||||||||||
Total capital additions | $ | 60,289 | $ | 172,577 | $ | 69,873 | $ | 60,289 | ||||||||
Payments from landlords | $ | 8,723 | $ | 28,581 | $ | 7,802 | $ | 8,723 |
Thirty-Nine Weeks Ended | ||||||||||||||||||||||||
Thirty-nine weeks ended November 1, 2020 | Thirty-nine weeks ended November 3, 2019 | Change | October 31, 2021 | November 1, 2020 | Change | |||||||||||||||||||
Total revenues | $ | 319,691 | $ | 1,007,533 | $ | (687,842 | ) | $ | 960,954 | $ | 319,691 | $ | 641,263 | |||||||||||
Total store operating weeks | 2,682 | 5,012 | (2,330 | ) | 5,304 | 2,682 | 2,622 | |||||||||||||||||
Comparable store revenues | $ | 268,426 | $ | 901,837 | $ | (633,411 | ) | $ | 794,033 | $ | 268,426 | $ | 525,607 | |||||||||||
Comparable store operating weeks | 2,184 | 4,446 | (2,262 | ) | 4,243 | 2,184 | 2,059 | |||||||||||||||||
Noncomparable store revenues | $ | 54,763 | $ | 110,231 | $ | (55,468 | ) | $ | 179,603 | 54,763 | $ | 124,840 | ||||||||||||
Noncomparable store operating weeks | 498 | 566 | (68 | ) | 1,061 | 498 | 563 | |||||||||||||||||
Other revenues | $ | (3,498 | ) | $ | (4,535 | ) | $ | 1,037 | ||||||||||||||||
Other revenues and deferrals | $ | (12,682 | ) | $ | (3,498 | ) | $ | (9,184 | ) |
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 | $ | — | ||||||||||
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 |
Item 6. | Exhibits |
* | Filed herein |
DAVE & BUSTER’S ENTERTAINMENT, INC., a Delaware corporation | ||||||
Date: December | By: | /s/ | ||||
Kevin Sheehan | ||||||
Interim Chief Executive Officer | ||||||
Date: December | By: | /s/ Scott J. Bowman | ||||
Scott J. Bowman | ||||||
Chief Financial Officer |