Document_and_Entity_Informatio
Document and Entity Information | 12 Months Ended |
Feb. 01, 2015 | |
Document And Entity Information [Abstract] | |
Document Type | S-1/A |
Amendment Flag | FALSE |
Document Period End Date | 1-Feb-15 |
Trading Symbol | PLAY |
Entity Registrant Name | Dave & Buster's Entertainment, Inc. |
Entity Central Index Key | 1525769 |
Entity Filer Category | Non-accelerated Filer |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Feb. 01, 2015 | Feb. 02, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $70,876 | $38,080 |
Inventories (Note 2) | 18,457 | 15,354 |
Prepaid expenses | 10,641 | 9,670 |
Deferred income taxes (Note 7) | 30,962 | 24,802 |
Income taxes receivable | 2,421 | 2,445 |
Other current assets | 9,923 | 8,993 |
Total current assets | 143,280 | 99,344 |
Property and equipment (net of $252,160 and $195,339 accumulated depreciation as of February 1, 2015 and February 2, 2014, respectively) (Note 3) | 436,048 | 388,093 |
Tradenames (Note 4) | 79,000 | 79,000 |
Goodwill (Note 4) | 272,592 | 272,428 |
Other assets and deferred charges | 19,769 | 22,893 |
Total assets | 950,689 | 861,758 |
Current liabilities: | ||
Current installments of long-term debt (Note 6) | 1,500 | |
Accounts payable | 35,001 | 36,092 |
Accrued liabilities (Note 5) | 89,198 | 74,379 |
Income taxes payable | 1,570 | 1,073 |
Deferred income taxes (Note 7) | 371 | |
Total current liabilities | 126,140 | 113,044 |
Deferred income taxes | 27,828 | 23,654 |
Deferred occupancy costs | 99,847 | 81,743 |
Other liabilities | 9,157 | 8,692 |
Long-term debt, less current installments, net of unamortized discount (Note 6) | 429,020 | 484,177 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock, $0.01 par value, 400,000,000 shares authorized shares: 40,217,640 and 33,452,684 issued shares as of February 1, 2015 and February 2, 2014, respectively | 402 | 334 |
Preferred stock, 50,000,000 shares authorized; none issued | ||
Paid-in capital | 253,685 | 152,661 |
Treasury stock, 248,412 shares as of February 1, 2015 and February 2, 2014 | -1,189 | -1,189 |
Accumulated other comprehensive loss | -646 | -167 |
Retained earnings (accumulated deficit) | 6,445 | -1,191 |
Total stockholders' equity | 258,697 | 150,448 |
Total liabilities and stockholders' equity | $950,689 | $861,758 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Feb. 01, 2015 | Feb. 02, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Property and equipment, accumulated depreciation | $252,160 | $195,339 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, shares issued | 40,217,640 | 33,452,684 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Treasury stock, shares | 248,412 | 248,412 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Loss (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 |
Statement of Comprehensive Income [Abstract] | |||
Food and beverage revenues | $359,125 | $310,111 | $298,421 |
Amusement and other revenues | 387,626 | 325,468 | 309,646 |
Total revenues | 746,751 | 635,579 | 608,067 |
Cost of food and beverage | 92,122 | 77,577 | 73,019 |
Cost of amusement and other | 54,353 | 47,437 | 46,098 |
Total cost of products | 146,475 | 125,014 | 119,117 |
Operating payroll and benefits | 175,709 | 150,172 | 145,571 |
Other store operating expenses | 225,763 | 199,537 | 192,792 |
General and administrative expenses | 44,574 | 36,440 | 40,356 |
Depreciation and amortization expense | 70,868 | 66,337 | 63,457 |
Pre-opening costs | 9,501 | 7,040 | 3,060 |
Total operating costs | 672,890 | 584,540 | 564,353 |
Operating income | 73,861 | 51,039 | 43,714 |
Interest expense, net (Note 6) | 34,789 | 47,809 | 47,634 |
Loss on debt retirement (Note 6) | 27,578 | ||
Income (loss) before provision (benefit) for income taxes | 11,494 | 3,230 | -3,920 |
Provision (benefit) for income taxes (Note 7) | 3,858 | 1,061 | -12,702 |
Net income | 7,636 | 2,169 | 8,782 |
Unrealized foreign currency translation gain (loss) | -479 | -419 | 15 |
Total comprehensive income | $7,157 | $1,750 | $8,797 |
Net Income per share: | |||
Basic | $0.22 | $0.07 | $0.26 |
Diluted | $0.21 | $0.06 | $0.26 |
Weighted average shares used in per share calculations: | |||
Basic shares | 35,314,884 | 33,187,776 | 33,186,426 |
Diluted shares | 37,126,048 | 34,030,115 | 33,747,535 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock [Member] | Paid-in capital [Member] | Treasury stock at cost [Member] | Accumulated other comprehensive income (loss) [Member] | Accumulated deficit [Member] |
In Thousands, except Share data | ||||||
Beginning balance at Jan. 29, 2012 | $137,515 | $334 | $150,275 | ($1,189) | $237 | ($12,142) |
Beginning balance, shares at Jan. 29, 2012 | 33,434,685 | 248,412 | ||||
Net income | 8,782 | 8,782 | ||||
Unrealized foreign currency translation gain (loss) | 15 | 15 | ||||
Stock-based compensation | 1,099 | 1,099 | ||||
Ending balance at Feb. 03, 2013 | 147,411 | 334 | 151,374 | -1,189 | 252 | -3,360 |
Ending balance, shares at Feb. 03, 2013 | 33,434,685 | 248,412 | ||||
Net income | 2,169 | 2,169 | ||||
Unrealized foreign currency translation gain (loss) | -419 | -419 | ||||
Stock-based compensation | 1,207 | 1,207 | ||||
Sale of stock (Note 9) | 80 | 80 | ||||
Sale of Stock , shares | 17,999 | |||||
Ending balance at Feb. 02, 2014 | 150,448 | 334 | 152,661 | -1,189 | -167 | -1,191 |
Ending balance, shares at Feb. 02, 2014 | 33,452,684 | 248,412 | ||||
Net income | 7,636 | 7,636 | ||||
Unrealized foreign currency translation gain (loss) | -479 | -479 | ||||
Stock-based compensation | 2,212 | 2,212 | ||||
Stock-based compensation , shares | 251 | |||||
Proceeds from the issuance of common stock | 100,659 | 68 | 100,591 | |||
Proceeds from the issuance of common stock, shares | 6,764,705 | |||||
Costs associated with the issuance of common stock | -1,779 | -1,779 | ||||
Ending balance at Feb. 01, 2015 | $258,697 | $402 | $253,685 | ($1,189) | ($646) | $6,445 |
Ending balance, shares at Feb. 01, 2015 | 40,217,640 | 248,412 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 |
Cash flows from operating activities: | |||
Net income | $7,636 | $2,169 | $8,782 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization expense | 70,868 | 66,337 | 63,457 |
Debt cost and discount amortization (Note 6) | 2,295 | 3,189 | 2,946 |
Payment of accreted interest (Note 6) | -50,193 | ||
Accretion of note discount (Note 6) | 8,341 | 15,881 | 14,141 |
Deferred income tax benefit (Note 7) | -1,615 | -801 | -13,548 |
Loss on disposal of fixed assets | 1,771 | 2,631 | 2,640 |
Loss on debt retirement (Note 6) | 8,580 | ||
Share-based compensation charges | 2,212 | 1,207 | 1,099 |
Other, net | -73 | 676 | -1,181 |
Changes in assets and liabilities: | |||
Inventories | -3,103 | -505 | -9 |
Prepaid expenses | -892 | -157 | 1,502 |
Income tax receivable | 25 | -1,325 | -1,120 |
Other current assets | -911 | 3,015 | -8,461 |
Other assets and deferred charges | 4 | -364 | 924 |
Accounts payable | 8,720 | -1,774 | -96 |
Accrued liabilities | 14,869 | 6,782 | 1,574 |
Income taxes payable | 497 | 291 | -711 |
Deferred occupancy costs | 16,919 | 12,214 | 6,691 |
Other liabilities | 765 | 412 | 4,166 |
Net cash provided by operating activities | 86,715 | 109,878 | 82,796 |
Cash flows from investing activities: | |||
Capital expenditures | -129,688 | -105,894 | -78,689 |
Proceeds from sales of property and equipment | 115 | 217 | 201 |
Net cash used in investing activities | -129,573 | -105,677 | -78,488 |
Cash flows from financing activities: | |||
Paydown of new senior credit facility (Note 6) | -144,375 | -1,500 | -1,875 |
Repayment of senior notes (Note 6) | -200,000 | ||
Repayment of senior discount notes (Note 6) | -100,000 | ||
Borrowings under new senior credit facility (Note 6) | 528,675 | ||
Debt issuance costs (Note 6) | -8,212 | -818 | |
Proceeds from the issuance of common stock, net of underwriter fees | 100,659 | ||
Payment of costs associated with the issuance of common stock | -1,093 | ||
Sale of common stock (Note 9) | 80 | ||
Net cash provided by (used in) financing activities | 75,654 | -2,238 | -1,875 |
Increase in cash and cash equivalents | 32,796 | 1,963 | 2,433 |
Beginning cash and cash equivalents | 38,080 | 36,117 | 33,684 |
Ending cash and cash equivalents | 70,876 | 38,080 | 36,117 |
Supplemental disclosures of cash flow information: | |||
Cash paid for income taxes, net | 4,937 | 2,151 | 2,515 |
Cash paid for interest and related debt fees, net of amounts capitalized | 28,510 | 29,096 | 32,435 |
Cash paid for interest and related debt fees, related to debt retirement | 18,998 | ||
Cash paid for settlement of accreted interest on senior discount notes | 50,193 | ||
Senior Secured Credit Facility [Member] | |||
Cash flows from financing activities: | |||
Paydown of new senior credit facility (Note 6) | ($100,000) |
Description_of_Business_and_Su
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||||||||||
Feb. 01, 2015 | |||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||
Description of Business and Summary of Significant Accounting Policies | Note 1: Description of Business and Summary of Significant Accounting Policies | ||||||||||||||||||||
Description of business and basis of presentation—Dave & Buster’s Entertainment, Inc. (“D&B Entertainment”), is a Delaware corporation headquartered in Dallas, Texas. As of February 1, 2015, Oak Hill Capital Partners III, L.P. and Oak Hill Capital Management Partners, III, L.P. (collectively, the “Oak Hill Funds”) beneficially owned approximately 79.2% of the Company’s outstanding stock. | |||||||||||||||||||||
D&B Entertainment owns no significant assets or operations other than the ownership of all the common stock of Dave & Buster’s Holdings, Inc. (“D&B Holdings”). D&B Holdings owns no significant assets or operations other than the ownership of all the common stock of Dave & Buster’s, Inc. (“D&B Inc”) References to the “Company”, “we”, “us”, and “our” refers to D&B Entertainment and its subsidiaries and any predecessor companies. All material intercompany accounts and transactions have been eliminated in consolidation. The Company’s activities are conducted through D&B Inc. D&B Inc owns and operates high-volume venues in North America that combine dining and entertainment for both adults and families. | |||||||||||||||||||||
On October 9, 2014, we amended our certificate of incorporation to increase our authorized share count to 450,000,000 shares of stock, including 400,000,000 shares of common stock and 50,000,000 shares of preferred stock, each with a par value $0.01 per share and to split our common stock 224.9835679 for 1. On October 16, 2014, we amended and restated our certificate of incorporation in its entirety. | |||||||||||||||||||||
On October 9, 2014, we completed our initial public offering of 5,882,353 shares of common stock at a price to the public of $16.00 per share. On October 10, 2014, the Company’s common stock began trading on the NASDAQ Global Market (“NASDAQ”) under the ticker symbol “PLAY”. We had granted the underwriters an option for a period of 30 days to purchase an additional 882,352 shares of our common stock which was exercised in full on October 21, 2014. After underwriting discounts and commissions and offering expenses, we received net proceeds from the initial public offering (the “IPO”) of approximately $98,573. We used these proceeds to prepay a portion of the principal amount of term loan debt outstanding under the new senior secured credit facility. | |||||||||||||||||||||
On February 5, 2015, subsequent to our fiscal 2014 year end, we completed a follow-on offering of 6,600,000 shares of our common stock at a price of $29.50 per share. We granted the underwriters an option to purchase an additional 990,000 shares of our common stock which was exercised in full on February 20, 2015. All of these shares were offered by the selling stockholders. In connection with the offering, 300,151 options were exercised at a weighted average price of $4.49. We issued new shares in satisfaction of this exercise. We received $1,346 upon the exercise of options which were sold as part of this offering. | |||||||||||||||||||||
We operate our business as one operating and one reportable segment. Our one industry segment is the operation and licensing of high-volume entertainment and dining venues under the names “Dave & Buster’s” and “Dave & Buster’s Grand Sports Café”. We operate on a 52 or 53 week fiscal year that ends on the Sunday after the Saturday closest to January 31. Each quarterly period has 13 weeks, except for a 53 week year when the fourth quarter has 14 weeks. Our fiscal years ended February 1, 2015 and February 2, 2014, both consist of 52 weeks. Our fiscal year ended February 3, 2013 consists of 53 weeks. | |||||||||||||||||||||
The accompanying audited financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States as prescribed by the Securities and Exchange Commission. All dollar amounts are presented in thousands, unless otherwise noted, except share and per share amounts. | |||||||||||||||||||||
During fiscal 2014, we opened eight new stores. As of February 1, 2015, there were 73 stores in the United States and Canada. On August 12, 2014, we permanently closed our location in Kensington/Bethesda, Maryland (“Bethesda”). Revenues for our Bethesda store were $5,416 and $12,036 in fiscal 2014 and fiscal 2013, respectively. Operating income for the store was $823 for fiscal 2014 and $2,896 for fiscal 2013. Included in our fiscal 2014 store count is our location in Farmingdale (Long Island), New York (“Farmingdale”) which closed on February 8, 2015 due to the expiration of our lease. All our fixed assets from the Farmingdale store were either fully depreciated as of the end of the lease term or were transferred to other locations. With past store closures, we have experienced customer migration to stores within the same market. We currently have two other stores in the Long Island market. | |||||||||||||||||||||
Reclassifications—All share and per-share data herein have been retroactively adjusted to reflect the 224.9835679 for 1 stock split as though it had occurred prior to the earliest data presented. One reclassification has been made to the fiscal year 2013 Consolidated Balance Sheets to conform to the fiscal year 2014 presentation. We reclassified $333 of Paid-in capital as of January 29, 2012, February 3, 2013 and February 2, 2014, to Common stock to affect the 224.9835679 for 1 stock split. | |||||||||||||||||||||
Related party transaction—Funds managed by Oak Hill Advisors, L.P. (the “OHA Funds”) comprise one of the creditors participating in the term loan portion of our new senior secured credit facility. As of February 1, 2015, the OHA Funds held approximately 8.3% or $35,626 of our total term loan obligation. Oak Hill Advisors, L.P. is an independent investment firm that is not an affiliate of the Oak Hill Funds and is not under common control with the Oak Hill Funds. Certain employees of the Oak Hill Funds, in their individual capacities, have passive investments in Oak Hill Advisors, L.P. and/or the funds it manages. | |||||||||||||||||||||
As of February 1, 2015, Oak Hill Funds beneficially owned approximately 79.2% of our outstanding stock and certain members of our Board of Directors and our management beneficially owned approximately 3.7% of our outstanding stock. The remaining 17.1% was owned by the public. Subsequent to the follow-on offering transactions, the Oak Hill Funds beneficially own approximately 62.1% of our outstanding stock and certain members of our Board of Directors and our management beneficially own approximately 2.2% of our outstanding stock. The remaining 35.7% is owned by the public. The Oak Hill Funds continue to own a majority of the voting power of our outstanding common stock. As a result, we are a “controlled company” within the meaning of the corporate governance standards of NASDAQ. | |||||||||||||||||||||
We have an expense reimbursement agreement with Oak Hill Capital Management, LLC (“Oak Hill Capital”), which provides for the reimbursement of certain costs and expenses. We made payments to Oak Hill Capital of $41, $115 and $76 during fiscal 2014, 2013 and 2012, respectively. We paid compensation of $155, $235 and $235 in fiscal 2014, 2013 and 2012, respectively, to David Jones who serves as a senior advisor to the Oak Hill Funds, and Alan Lacy, who served as a senior advisor to the Oak Hill Funds until December 2014. | |||||||||||||||||||||
Seasonality—Our revenues and operations are influenced by seasonal shifts in consumer spending. Revenues associated with spring and year-end holidays during our first and fourth quarters have historically been higher as compared to the other quarters and will continue to be susceptible to the impact of severe spring and winter weather on customer traffic and sales during those periods. Our third quarter, which encompasses the back-to-school fall season, has historically had lower revenues as compared to the other quarters. | |||||||||||||||||||||
Use of estimates—The preparation of financial statements in conformity with GAAP requires us to make certain estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. The Company’s significant estimates include estimates for impairment of goodwill, useful lives of property and equipment, fair value of equity-based compensation, self-insurance reserves, deferred revenue on our Power Cards and gift cards, reserve for outstanding tickets and deferred tax valuation allowances. | |||||||||||||||||||||
Cash and cash equivalents—We consider transaction settlements in process from credit card companies and all highly liquid temporary investments with original maturities of three months or less to be cash equivalents. | |||||||||||||||||||||
Concentration of credit risk—Financial instruments which potentially subject us to a concentration of credit risk are cash and cash equivalents. We currently maintain our day-to-day operating cash balances with major financial institutions. At times, our operating cash balances may be in excess of the Federal Deposit Insurance Corporation (“FDIC”) insurance limit. From time to time, we invest temporary excess cash in overnight investments with expected minimal volatility, such as money market funds. Although we maintain balances that exceed the FDIC insured limit, we have not experienced any losses related to this balance, and we believe credit risk to be minimal. | |||||||||||||||||||||
Inventories—Inventories of food, beverages, merchandise and other supplies needed for our food service and amusement operations are stated at the lower of cost or market determined on a first-in, first-out method. | |||||||||||||||||||||
Deferred tax assets—A deferred income tax asset or liability is established for the expected future consequences resulting from temporary differences in the financial reporting and tax basis of assets and liabilities. As of February 1, 2015, we had recorded $931 as a valuation allowance against a portion of our deferred tax assets. The valuation allowance was established in accordance with accounting guidance for income taxes. If we generate taxable income in future periods or if the facts and circumstances on which our estimates and assumptions are based were to change, thereby impacting the likelihood of realizing the deferred tax assets, judgment would have to be applied in determining the amount of valuation allowance no longer required or if an addition to the allowance would be required. | |||||||||||||||||||||
Property and equipment—Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is charged to operations using the straight-line method over the assets’ estimated useful lives, which are as follows: | |||||||||||||||||||||
ESTIMATED DEPRECIABLE | |||||||||||||||||||||
LIVES (IN YEARS) | |||||||||||||||||||||
Buildings and building improvements | Shorter of 40 or expected | ||||||||||||||||||||
ground lease term | |||||||||||||||||||||
Leasehold improvements | Shorter of 20 or | ||||||||||||||||||||
expected lease term | |||||||||||||||||||||
Furniture, fixtures and equipment | 10-Mar | ||||||||||||||||||||
Games | 20-May | ||||||||||||||||||||
Expenditures that substantially increase the useful lives of the property and equipment are capitalized, whereas costs incurred to maintain the appearance and functionality of such assets are charged to repair and maintenance expense. Interest costs and other site specific costs incurred during construction are capitalized and depreciated based on the estimated useful life of the underlying asset. | |||||||||||||||||||||
We review our property and equipment annually, on a store-by-store basis to determine whether facts or circumstances exist that may indicate the carrying values of these long-lived assets are impaired. We compare store-level undiscounted operating cash flows (which exclude interest, general and administrative and other allocated expenses) to the carrying amount of property and equipment allocated to each store. If the expected future cash flows are less than the asset carrying amount (an indication that the carrying amount may not be recoverable), we may recognize an impairment loss. Any impairment loss recognized equals the amount by which the asset carrying amount exceeds its fair value. No impairment charges were recognized in fiscal years 2014, 2013 or 2012. | |||||||||||||||||||||
Goodwill and other intangible assets—In accordance with accounting guidance for goodwill and other intangible assets, goodwill and indefinite lived intangibles, such as tradenames, are not amortized, but are reviewed for impairment at least annually. We perform step one of the impairment test in our fourth quarter unless circumstances require this analysis to be completed sooner. Step one of the impairment test is based upon a comparison of the carrying value of our net assets, including goodwill balances, to the fair value of our net assets. The fair value of our net assets, including goodwill are estimated using a combination of market earnings multiples and discounted cash flow methodologies. Key assumptions used in our testing include future store openings, revenue growth, operating expenses and discount rate. Estimates of revenue growth and operating expenses are based on internal projections considering our past performance and forecasted growth, market economics and the business environment impacting our Company’s performance. Discount rates are determined by using a weighted average cost of capital (“WACC”). The WACC considers market and industry data as well as Company-specific risk factors. These estimates are highly subjective judgments and can be significantly impacted by changes in the business or economic conditions. Our estimates used in the income approach are consistent with the plans and estimates used to manage operations. We evaluate all methods to ensure reasonably consistent results. Based on the completion of the step one test, we determined that goodwill was not impaired. | |||||||||||||||||||||
The evaluation of the carrying amount of other intangible assets with indefinite lives is made at least annually by comparing the carrying amount of these assets to their estimated fair value. The estimated fair value is generally determined on the basis of discounted future cash flows. If the estimated fair value is less than the carrying amount of the other intangible assets with indefinite lives, then an impairment charge is recorded to reduce the asset to its estimated fair value. | |||||||||||||||||||||
Based on our analysis, we determined that our intangible assets with an indefinite life, our tradename, was not impaired. | |||||||||||||||||||||
We have developed and acquired certain trademarks that are utilized in our business and have been determined to have finite lives. We also have intangible assets related to our non-compete agreements and customer relationships. These intangible assets are included in “Other assets and deferred charges” on the Consolidated Balance Sheets and are amortized over their useful lives. | |||||||||||||||||||||
Deferred debt issuance costs—The Company capitalizes costs incurred in connection with borrowings or establishment of credit facilities. These costs are included in “Other assets and deferred charges” in the Consolidated Balance Sheets, and are amortized as an adjustment to interest expense over the life of the borrowing or life of the credit facility. In the case of early debt principal repayments, the Company adjusts the value of the corresponding deferred financing costs with a charge to interest expense, and similarly adjusts the future amortization expense. The following table details amounts relating to those assets: | |||||||||||||||||||||
FISCAL YEAR ENDED | FISCAL YEAR ENDED | FISCAL YEAR ENDED | |||||||||||||||||||
FEBRUARY 1, 2015 | FEBRUARY 2, 2014 | FEBRUARY 3, 2013 | |||||||||||||||||||
Balance at beginning of period | $ | 7,954 | $ | 10,076 | $ | 12,735 | |||||||||||||||
New debt issuance payments | 8,212 | — | — | ||||||||||||||||||
Write off of unamortized debt issuance cost—refinancing | (6,559 | ) | — | — | |||||||||||||||||
Additional deferred financing costs | — | 726 | — | ||||||||||||||||||
Write off of unamortized debt issuance cost—early prepayment | (1,347 | ) | — | — | |||||||||||||||||
Amortization during period | (2,074 | ) | (2,848 | ) | (2,659 | ) | |||||||||||||||
Balance at end of period | $ | 6,186 | $ | 7,954 | $ | 10,076 | |||||||||||||||
Self-insurance accruals—We are self-insured for certain losses related to workers’ compensation claims, general liability matters and our Company sponsored employee health insurance programs. We estimate the accrued liabilities for our self-insurance programs using historical claims experience and loss reserves, assisted by independent third-party actuaries. To limit our exposure to losses, we maintain stop-loss coverage through third-party insurers. | |||||||||||||||||||||
Fair value disclosures—Fair value is defined as the price that we would receive to sell an asset or pay to transfer a liability (an exit price) in an orderly transaction between market participants on the measurement date. In determining fair value, GAAP establishes a three-level hierarchy used in measuring fair value, as follows: | |||||||||||||||||||||
n | Level 1 inputs are quoted prices available for identical assets and liabilities in active markets. | ||||||||||||||||||||
n | Level 2 inputs are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets and liabilities in active markets or other inputs that are observable or can be corroborated by observable market data. | ||||||||||||||||||||
n | Level 3 inputs are less observable and reflect our own assumptions. | ||||||||||||||||||||
Our financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, and our senior secured credit facility. The carrying amount of cash and cash equivalents, accounts receivable and accounts payable approximates fair value because of their short maturities. We believe that the carrying amount of our term credit facility approximates its fair value because the interest rates are adjusted regularly based on current market conditions. | |||||||||||||||||||||
We may adjust the carrying amount of certain nonfinancial assets to fair value on a non-recurring basis when they are impaired. No such adjustments were made in fiscal year 2014, 2013 or 2012. | |||||||||||||||||||||
Comprehensive income (loss)—Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. In addition to net income, unrealized foreign currency translation gain (loss) is included in comprehensive income (loss). Unrealized translation loss for fiscal 2014 was $479. Unrealized translation loss for fiscal 2013 was $419 and unrealized translation gain for fiscal 2012 was $15. | |||||||||||||||||||||
Foreign currency translation—The consolidated financial statements are presented in US dollars, which is our functional and reporting currency. The financial statements related to the operations of our Toronto store are prepared in Canadian dollars. Income statement amounts are translated at average exchange rates for each period, while the assets and liabilities are translated at year-end exchange rates. Translation adjustments for assets and liabilities are included in stockholder’s equity as a component of comprehensive income (loss). | |||||||||||||||||||||
Share-based expense—The expense associated with share-based equity awards granted as more fully described in Note 9 has been calculated as required by current accounting standards related to stock compensation. The grant date fair values of the options granted in 2014, 2013 and 2012 have been determined based on the option pricing method prescribed in AICPA Practice Aid, Valuation of privately-Held-Company Equity Securities Issued as Compensation. The expected term of the options were based on the weighted average of anticipated exercise dates. Since we did not have publicly traded equity securities prior to our IPO, the volatility of our options has been estimated using peer group volatility information. The risk-free interest rate was based on the implied yield on U.S. Treasury zero-coupon issues with a remaining term equivalent to the expected term. The significant assumptions used in determining the underlying fair value of the weighted-average options granted in fiscal 2014, 2013 and 2012 were as follows: | |||||||||||||||||||||
2014 STOCK | 2010 STOCK INCENTIVE PLAN | ||||||||||||||||||||
INCENTIVE PLAN | |||||||||||||||||||||
FISCAL 2014 | FISCAL 2013 | FISCAL 2012 | |||||||||||||||||||
SERVICE | SERVICE | PERFORMANCE | SERVICE | PERFORMANCE | |||||||||||||||||
BASED | BASED | BASED | BASED | BASED | |||||||||||||||||
Volatility | 51.3 | % | 48.2 | % | 47 | % | 44.7 | % | 50 | % | |||||||||||
Risk free interest rate | 1.96 | % | 1.15 | % | 1.06 | % | 0.78 | % | 0.33 | % | |||||||||||
Expected dividend yield | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | |||||||||||
Expected term—in years | 6.8 | 6.5 | 6.5 | 4.9 | 3 | ||||||||||||||||
Weighted average calculated value | $ | 8.45 | $ | 4.72 | $ | 4.16 | $ | 2.43 | $ | 2.25 | |||||||||||
The options granted in fiscal 2014 were issued pursuant to the terms of the 2014 Omnibus Incentive Plan (“2014 Stock Incentive Plan”). The options granted in fiscal years 2013 and 2012 have been issued pursuant to the terms of the Dave & Buster’s Entertainment, Inc. 2010 Management Incentive Plan (“2010 Stock Incentive Plan “). See future discussion of these plans in Note 9: Equity-based Compensation. | |||||||||||||||||||||
Revenue recognition—Food and beverage revenues are recorded at point of service. Amusement revenues consist primarily of game play credits on Power Cards purchased and used by customers to activate most of the video and redemption games in our midway. Amusement revenues are primarily recognized upon utilization of these game play credits. We have recognized a liability for the estimated amount of unused game play credits which we believe our customers will utilize in the future based on credits remaining on Power Cards, historic utilization patterns and revenue per game play credit sold. | |||||||||||||||||||||
Amusements costs of products—Certain midway games allow customers to earn coupons, which may be redeemed for prizes. The cost of these prizes is included in the cost of amusement products and is generally recorded when coupons are utilized by the customer by redeeming the coupons for a prize in our “Winner’s Circle”. Customers may also store the coupon value on a Power Card for future redemption. We have accrued a liability for the estimated amount of outstanding coupons that we believe will be redeemed in subsequent periods based on coupons outstanding, historic redemption patterns and the estimated redemption cost of products per coupon. | |||||||||||||||||||||
Advertising costs—Advertising costs are recorded as an expense in the period in which we incur the costs or the first time the advertising takes place. Advertising costs expensed were $29,144, $27,475 and $28,502 in fiscal years 2014, 2013 and 2012, respectively. Advertising costs are included in “Other store operating expenses” in the Consolidated Statements of Comprehensive Income. | |||||||||||||||||||||
Lease accounting—Rent expense is recorded on a straight-line basis over the lease term. The lease term commences on the date when we take possession and have the right to control the use of the leased premises. The lease term includes the initial non-cancelable lease term plus any periods covered by renewal options that we consider reasonably assured of exercising. Certain leases contain annual escalation clauses based on fixed escalation terms. The excess of cumulative rent expense, as determined on a straight-line basis, over cumulative rent payments made on leases with fixed escalation terms is recognized as “Deferred occupancy costs” in the Consolidated Balance Sheets. Also included in “Deferred occupancy costs” are construction allowances we receive from the lessor to reimburse us for the cost of leasehold improvements. The amortization related to these allowances is recorded as a reduction to rent expense over the term of the lease. | |||||||||||||||||||||
Additionally, certain of our operating leases contain clauses that provide additional contingent rent based on a percentage of sales greater than certain specified target amounts. We recognize contingent rent expense provided the achievement of that target is considered probable. | |||||||||||||||||||||
We had construction allowance receivables of $6,839 and $5,677 as of February 1, 2015 and February 2, 2014, respectively, related to our new store openings. Such balances are included in “Other current assets” in the Company’s Consolidated Balance Sheets. All receivable amounts are expected to be collected. | |||||||||||||||||||||
Pre-opening costs—Pre-opening costs include costs associated with the opening and organizing of new stores, including the cost of feasibility studies, pre-opening rent, training and recruiting and travel costs for employees engaged in such pre-opening activities. All pre-opening costs are expensed as incurred. | |||||||||||||||||||||
Income taxes—We file consolidated returns with all our domestic subsidiaries. We use the asset/liability method for recording income taxes, which recognizes the amount of current and deferred taxes payable or refundable at the date of the financial statements as a result of all events that are recognized in the financial statements and as measured by the provisions of enacted tax laws. We also recognize liabilities for uncertain income tax positions for those items that meet the “more likely than not” threshold. | |||||||||||||||||||||
The calculation of tax liabilities involves significant judgment and evaluation of uncertainties in the interpretation of federal and state tax regulations. As a result, we have established accruals for taxes that may become payable in future years as a result of audits by tax authorities. Tax accruals are reviewed regularly pursuant to accounting guidance for uncertainty in income taxes. Tax accruals are adjusted as events occur that affect the potential liability for taxes such as the expiration of statutes of limitations, conclusion of tax audits, identification of additional exposure based on current calculations, identification of new issues, or the issuance of statutory or administrative guidance or rendering of a court decision affecting a particular issue. Accordingly, we may experience significant changes in tax accruals in the future, if or when such events occur. | |||||||||||||||||||||
As of February 1, 2015, we have accrued approximately $905 of unrecognized tax benefits, including approximately $338 of penalties and interest. During fiscal 2014, we recognized approximately $90 of tax benefits and an additional $48 of benefits related to penalties and interest based upon lapsing of time and settlement with taxing jurisdictions. Future recognition of potential interest or penalties, if any, will be recorded as a component of income tax expense. Because of the impact of deferred income tax accounting, $439 of unrecognized tax benefits, if recognized, would impact the effective tax rate. | |||||||||||||||||||||
Recent accounting pronouncements—In February 2015, the Financial Accounting Standards board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-02, “Consolidation: Amendment to the Consolidation Analysis.” This revised standard improves targeted areas of the consolidation guidance and reduces the number of consolidation models. This update is effective for annual and interim periods in fiscal years beginning after December 15, 2015, with early adoption permitted. We do not expect the adoption of ASU 2015-02 to have a material impact on our consolidated financial position or results of operations. | |||||||||||||||||||||
In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements — Going Concern: Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern”, which requires the Company’s management to evaluate whether there is substantial doubt about the Company’s ability to continue as a going concern. This update is effective for the annual period after December 15, 2016, and for annual and interim periods thereafter. We do not expect the adoption of ASU 2014-15 to have a material impact on our consolidated financial position or results of operations. | |||||||||||||||||||||
In May 2014, the FASB issued guidance in ASU No. 2014-09, outlining a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. This guidance requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, this guidance expands related disclosure requirements. This guidance is effective for reporting periods beginning after December 15, 2016. We are currently evaluating the impact this guidance will have on our consolidated financial position and results of operations. |
Inventories
Inventories | 12 Months Ended | ||||||||
Feb. 01, 2015 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventories | Note 2: Inventories | ||||||||
Inventories consist of the following: | |||||||||
FEBRUARY 1, | FEBRUARY 2, | ||||||||
2015 | 2014 | ||||||||
Operating store—food and beverage | $ | 4,494 | $ | 3,961 | |||||
Operating store—amusement | 6,497 | 6,214 | |||||||
Corporate supplies, warehouse and other | 7,466 | 5,179 | |||||||
$ | 18,457 | $ | 15,354 | ||||||
Amusement inventory includes electronic equipment, stuffed animals and small novelty items used as redemption prizes for certain midway games, as well as supplies needed for midway operations. |
Property_and_Equipment
Property and Equipment | 12 Months Ended | ||||||||
Feb. 01, 2015 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property and Equipment | Note 3: Property and Equipment | ||||||||
Property and equipment consist of the following: | |||||||||
FEBRUARY 1, | FEBRUARY 2, | ||||||||
2015 | 2014 | ||||||||
Buildings and building improvements | $ | 14,305 | $ | 14,176 | |||||
Leasehold improvements | 379,468 | 330,641 | |||||||
Furniture, fixtures and equipment | 150,280 | 117,194 | |||||||
Games | 111,166 | 88,310 | |||||||
Construction in progress | 32,989 | 33,111 | |||||||
Total cost | 688,208 | 583,432 | |||||||
Accumulated depreciation | (252,160 | ) | (195,339 | ) | |||||
Property and equipment, net | $ | 436,048 | $ | 388,093 | |||||
Interest costs capitalized during the construction of facilities were $535 for fiscal 2014, $602 for fiscal 2013, and $510 for fiscal 2012. | |||||||||
Property and equipment are depreciated using the straight-line method over the estimated useful life of the assets. Depreciation expense totaled $69,466 for fiscal 2014, $64,933 for fiscal 2013, and $61,957 for fiscal 2012. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 12 Months Ended | ||||||||||||||||||||
Feb. 01, 2015 | |||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||
Goodwill and Other Intangible Assets | Note 4: Goodwill and Other Intangible Assets | ||||||||||||||||||||
Changes in the carrying amount of goodwill for the year ended February 1, 2015 and February 2, 2014 are as follows: | |||||||||||||||||||||
GROSS AMOUNT | |||||||||||||||||||||
Goodwill Balance at February 3, 2013 | $ | 272,278 | |||||||||||||||||||
Foreign exchange differences | 150 | ||||||||||||||||||||
Goodwill Balance at February 2, 2014 | 272,428 | ||||||||||||||||||||
Foreign exchange differences | 164 | ||||||||||||||||||||
Goodwill Balance at February 1, 2015 | $ | 272,592 | |||||||||||||||||||
The following table presents our goodwill and intangible assets at: | |||||||||||||||||||||
FEBRUARY 1, 2015 | FEBRUARY 2, 2014 | ||||||||||||||||||||
USEFUL LIVES | GROSS CARRYING | ACCUMULATED | GROSS CARRYING | ACCUMULATED | |||||||||||||||||
AMOUNT | AMORTIZATION | AMOUNT | AMORTIZATION | ||||||||||||||||||
Not subject to amortization: | |||||||||||||||||||||
Goodwill | $ | 272,592 | $ | — | $ | 272,428 | $ | — | |||||||||||||
Tradenames | 79,000 | — | 79,000 | — | |||||||||||||||||
Total not subject to amortization | 351,592 | — | 351,428 | — | |||||||||||||||||
Subject to amortization: | |||||||||||||||||||||
Trademarks | 7 years | 8,500 | (5,681 | ) | 8,500 | (4,471 | ) | ||||||||||||||
Customer relationships | 9 years | 1,700 | (883 | ) | 1,700 | (694 | ) | ||||||||||||||
Non-compete agreements | 2 years | 500 | (500 | ) | 500 | (500 | ) | ||||||||||||||
Total subject to amortization | 10,700 | (7,064 | ) | 10,700 | (5,665 | ) | |||||||||||||||
Total goodwill and intangibles | $ | 362,292 | $ | (7,064 | ) | $ | 362,128 | $ | (5,665 | ) | |||||||||||
Intangible assets subject to amortization are included in “Other assets and deferred charges”, net of accumulated amortization, on the Consolidated Balance Sheets. The remaining weighted-average amortization period for intangibles subject to amortization is 2.8 years. Amortization expense was $1,402, $1,404, and $1,500 for the fiscal years 2014, 2013, and 2012, respectively. Estimated amortization expense relating to intangible assets subject to amortization for each of the five succeeding years and beyond is as follows: | |||||||||||||||||||||
AMORTIZATION | |||||||||||||||||||||
EXPENSE | |||||||||||||||||||||
2015 | $ | 1,399 | |||||||||||||||||||
2016 | 1,399 | ||||||||||||||||||||
2017 | 588 | ||||||||||||||||||||
2018 | 188 | ||||||||||||||||||||
2019 | 62 | ||||||||||||||||||||
Thereafter | — | ||||||||||||||||||||
Total future amortization expense | $ | 3,636 | |||||||||||||||||||
Accrued_Liabilities
Accrued Liabilities | 12 Months Ended | ||||||||
Feb. 01, 2015 | |||||||||
Text Block [Abstract] | |||||||||
Accrued Liabilities | Note 5: Accrued Liabilities | ||||||||
Accrued liabilities consist of the following as of: | |||||||||
FEBRUARY 1, | FEBRUARY 2, | ||||||||
2015 | 2014 | ||||||||
Compensation and benefits | $ | 22,735 | $ | 14,459 | |||||
Deferred amusement revenue | 17,037 | 14,047 | |||||||
Rent | 10,874 | 9,040 | |||||||
Amusement redemption liability | 10,815 | 9,707 | |||||||
Deferred gift card revenue | 6,162 | 4,709 | |||||||
Sales and use taxes | 5,244 | 4,408 | |||||||
Property taxes | 3,827 | 3,159 | |||||||
Current portion of long term insurance reserves | 3,361 | 3,358 | |||||||
Customer deposits | 2,086 | 2,241 | |||||||
Interest | 185 | 4,214 | |||||||
Other | 6,872 | 5,037 | |||||||
Total accrued liabilities | $ | 89,198 | $ | 74,379 | |||||
LongTerm_Debt
Long-Term Debt | 12 Months Ended | ||||||||||||
Feb. 01, 2015 | |||||||||||||
Debt Disclosure [Abstract] | |||||||||||||
Long-Term Debt | Note 6: Long-Term Debt | ||||||||||||
Long-term debt consisted of the following as of: | |||||||||||||
FEBRUARY 1, | FEBRUARY 2, | ||||||||||||
2015 | 2014 | ||||||||||||
New senior secured credit facility—term | $ | 430,000 | $ | — | |||||||||
Repaid Debt: | |||||||||||||
Senior secured credit facility—term | — | 144,375 | |||||||||||
Senior notes | — | 200,000 | |||||||||||
Senior discount notes | — | 180,790 | |||||||||||
Total debt outstanding | 430,000 | 525,165 | |||||||||||
Less: | |||||||||||||
Unamortized debt discount—new senior secured credit facility | (980 | ) | — | ||||||||||
Unamortized debt discount—senior secured credit facility | — | (550 | ) | ||||||||||
Unamortized debt discount—senior discount notes | — | (38,938 | ) | ||||||||||
Current installments | — | (1,500 | ) | ||||||||||
Long-term debt, less current installments, net of unamortized discount | $ | 429,020 | $ | 484,177 | |||||||||
New senior secured credit facility—On July 25, 2014, D&B Holdings together with D&B Inc entered into a senior secured credit facility that provides a $530,000 term loan facility with a maturity date of July 25, 2020 and a $50,000 revolving credit facility with a maturity date of July 25, 2019. The $50,000 revolving credit facility includes a $20,000 letter of credit sub-facility and a $5,000 swingline sub-facility. The revolving credit facility will be used to provide financing for general purposes. | |||||||||||||
The interest rates per annum applicable to loans, other than swingline loans, under our new senior secured credit facility are currently set based on a defined LIBOR rate plus an applicable margin. Swingline loans bear interest at a base rate plus an applicable margin. The loans bear interest subject to a pricing grid based on a secured leveraged ratio, at LIBOR plus a spread ranging from 3.25% to 3.5% for the term loans and LIBOR plus a spread ranging from 3.0% to 3.5% for the revolving loans. The interest rate on the term loan facility at February 1, 2015 was 4.25%. | |||||||||||||
The senior secured credit facility is secured by the assets of D&B Inc and is unconditionally guaranteed by each of its direct and indirect, existing and future domestic subsidiaries (with certain agreed-upon exceptions). The Company originally received proceeds from the term loan facility of $528,675, net of a $1,325 discount. The discount is being amortized to interest expense over the six-year life of the term loan facility. | |||||||||||||
Proceeds from the new senior secured credit facility were used as follows: | |||||||||||||
Repayment of Dave & Buster’s, Inc. senior credit facility | |||||||||||||
Outstanding principal | $ | 143,509 | |||||||||||
Accrued and unpaid interest | 460 | ||||||||||||
Legal expenses | 41 | ||||||||||||
144,010 | |||||||||||||
Repayment of Dave & Buster’s, Inc. 11% senior notes | |||||||||||||
Outstanding principal | 200,000 | ||||||||||||
Accrued and unpaid interest | 3,239 | ||||||||||||
Premium for early redemption | 11,000 | ||||||||||||
Additional interest paid to trustee | 1,833 | ||||||||||||
216,072 | |||||||||||||
Repayment of Dave & Buster’s Parent, Inc. (now known as D&B Entertainment) 12.25% senior discount notes | |||||||||||||
Issue price outstanding, net of original issue discount | 100,000 | ||||||||||||
Previously accreted interest expense | 41,852 | ||||||||||||
Current year interest accretion included in interest expense, net | 8,341 | ||||||||||||
Premium for early redemption | 4,646 | ||||||||||||
Additional interest paid to trustee | 1,478 | ||||||||||||
156,317 | |||||||||||||
Total payments to retire prior debt | 516,399 | ||||||||||||
Payments of costs associated with new debt issuance | 8,212 | ||||||||||||
Administrative fee paid to administrative agent | 31 | ||||||||||||
8,243 | |||||||||||||
Retained cash | 4,033 | ||||||||||||
Total proceeds | $ | 528,675 | |||||||||||
Following the IPO, we prepaid $100,000 principal amount of term loan facility. This payment was applied to the future quarterly payments required by the credit agreement. No principal payments are required until the maturity of the credit facility. In conjunction with the prepayment, we incurred a loss on extinguishment charge of $1,586, consisting of the write-off of unamortized deferred debt issuance cost and unamortized discount related to the portion of the term loan that was prepaid. This loss is included in the “Loss on debt retirement” in the Consolidated Statements of Comprehensive Income. | |||||||||||||
As a result of the repayment of all of our prior outstanding debt and the early prepayment of a portion of our new senior secured credit facility, we incurred a loss on debt retirement. The loss on debt retirement is comprised of the following: | |||||||||||||
FISCAL YEAR | |||||||||||||
ENDED | |||||||||||||
FEBRUARY 1, | |||||||||||||
2015 | |||||||||||||
Non-cash charges | |||||||||||||
Write-off of unamortized debt issuance cost—early prepayment | $ | 1,347 | |||||||||||
Write-off of unamortized debt discount—early prepayment | 239 | ||||||||||||
Write-off of unamortized debt issuance cost—refinancing | 6,559 | ||||||||||||
Write-off of unamortized debt discount—refinancing | 435 | ||||||||||||
8,580 | |||||||||||||
Direct costs associated with debt retirement | |||||||||||||
Premium for early redemption: | |||||||||||||
D&B Inc senior notes | 11,000 | ||||||||||||
D&B Entertainment senior discount notes | 4,646 | ||||||||||||
Additional interest paid to trustee: | |||||||||||||
D&B Inc senior notes | 1,833 | ||||||||||||
D&B Entertainment senior discount notes | 1,478 | ||||||||||||
Legal expenses | 41 | ||||||||||||
18,998 | |||||||||||||
Loss on debt retirement | $ | 27,578 | |||||||||||
As of February 1, 2015, we had no borrowings under the revolving credit facility, borrowings of $430,000 ($429,020, net of discount) under the term facility and $5,822 in letters of credit outstanding. We believe that the carrying amount of our term loan facility approximates its fair value because the interest rates are adjusted regularly based on current market conditions. The fair value of the Company’s new senior secured credit facility was determined to be a Level Two instrument as defined by GAAP. | |||||||||||||
Our senior secured credit facility contains restrictive covenants that, among other things, limit our ability and the ability of our subsidiaries to: incur additional indebtedness, make loans or advances to subsidiaries and other entities, make initial capital expenditures in relation to new stores, declare dividends, acquire other businesses or sell assets. In addition, under our senior secured credit facility, we are required to meet a maximum total leverage ratio if outstanding revolving loans and letters of credit (other than letters of credit that have been backstopped or cash collateralized) are in excess of 30% of the outstanding revolving commitments. As of February 1, 2015, we were not required to maintain any of the financial ratios under the senior secured credit facility and we were in compliance with the other restrictive covenants. | |||||||||||||
The following tables set forth our recorded interest expense, net for the periods indicated: | |||||||||||||
FISCAL YEAR | FISCAL YEAR | FISCAL YEAR | |||||||||||
ENDED | ENDED | ENDED | |||||||||||
FEBRUARY 1, | FEBRUARY 2, | FEBRUARY 3, | |||||||||||
2015 | 2014 | 2013 | |||||||||||
D&B Inc, old debt structure interest expense | $ | 13,562 | $ | 29,675 | $ | 31,393 | |||||||
D&B Inc, new debt structure interest expense | 11,455 | — | — | ||||||||||
D&B Entertainment interest accretion | 8,341 | 15,881 | 14,141 | ||||||||||
Amortization of issuance cost and discount | 2,295 | 3,189 | 2,946 | ||||||||||
Interest income | (329 | ) | (334 | ) | (336 | ) | |||||||
Less capitalized interest | (535 | ) | (602 | ) | (510 | ) | |||||||
Total interest expense, net | $ | 34,789 | $ | 47,809 | $ | 47,634 | |||||||
Future debt obligations—The following table sets forth our future debt principal payment obligations as of: | |||||||||||||
FEBRUARY 1, | |||||||||||||
2015 | |||||||||||||
1 year or less | $ | — | |||||||||||
2 years | — | ||||||||||||
3 years | — | ||||||||||||
4 years | — | ||||||||||||
5 years | — | ||||||||||||
Thereafter | 430,000 | ||||||||||||
Total future payments | $ | 430,000 | |||||||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Feb. 01, 2015 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | Note 7: Income Taxes | ||||||||||||
The following table sets forth our provision (benefit) for income taxes for the periods indicated: | |||||||||||||
FISCAL YEAR ENDED | FISCAL YEAR ENDED | FISCAL YEAR ENDED | |||||||||||
FEBRUARY 1, 2015 | FEBRUARY 2, 2014 | FEBRUARY 3, 2013 | |||||||||||
Current expense | |||||||||||||
Federal | $ | 739 | $ | 615 | $ | 536 | |||||||
Foreign | 117 | 97 | 361 | ||||||||||
State and local | 4,617 | 1,150 | (51 | ) | |||||||||
Deferred benefit | (1,615 | ) | (801 | ) | (13,548 | ) | |||||||
Total provision (benefit) for income taxes | $ | 3,858 | $ | 1,061 | $ | (12,702 | ) | ||||||
The following tables set forth the significant components of our deferred tax liabilities and assets as of: | |||||||||||||
FEBRUARY 1, | FEBRUARY 2, | ||||||||||||
2015 | 2014 | ||||||||||||
Deferred tax assets: | |||||||||||||
Deferred revenue and redemption ticket liability | $ | 11,610 | $ | 9,540 | |||||||||
Tax credit carryovers | 8,862 | 10,297 | |||||||||||
Leasing transactions | 8,036 | 5,585 | |||||||||||
Accrued liabilities | 4,305 | 1,985 | |||||||||||
Workers’ compensation and general liability insurance | 3,863 | 3,429 | |||||||||||
Deferred compensation | 2,553 | 1,610 | |||||||||||
State net operating loss carryovers | 2,133 | 3,503 | |||||||||||
Other | 1,958 | 1,567 | |||||||||||
Smallware supplies | 738 | 714 | |||||||||||
Indirect benefit of unrecognized tax benefits | 272 | 225 | |||||||||||
Total deferred tax assets | 44,330 | 38,455 | |||||||||||
Valuation allowance for deferred tax assets—US | (931 | ) | (1,388 | ) | |||||||||
Total deferred tax assets, net | 43,399 | 37,067 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Trademark/tradename | 32,268 | 31,578 | |||||||||||
Property and equipment | 7,997 | 4,109 | |||||||||||
Prepaid expenses | 371 | 232 | |||||||||||
Total deferred tax liabilities | 40,636 | 35,919 | |||||||||||
Net deferred tax assets | $ | 2,763 | $ | 1,148 | |||||||||
The net deferred tax assets are presented in the Consolidated Balance Sheets as follows: | |||||||||||||
FEBRUARY 1, | FEBRUARY 2, | ||||||||||||
2015 | 2014 | ||||||||||||
Deferred income taxes—current | $ | 30,962 | $ | 24,802 | |||||||||
Deferred tax assets | 30,962 | 24,802 | |||||||||||
Deferred income taxes—current | 371 | — | |||||||||||
Deferred income taxes—non current | 27,828 | 23,654 | |||||||||||
Deferred tax liabilities | 28,199 | 23,654 | |||||||||||
Net deferred tax assets | $ | 2,763 | $ | 1,148 | |||||||||
At February 1, 2015, we had a valuation allowance of $931 against our deferred tax assets. The ultimate realization of our deferred tax assets is dependent on the generation of future taxable income during periods in which temporary differences become deductible. In assessing the realizability of our deferred tax assets, at February 1, 2015 we considered whether it is more likely than not that some or all of the deferred tax assets will not be realized. Based on the level of recent historical taxable income; consistent generation of annual taxable income, and estimations of future taxable income we have concluded that it is more likely than not that we will realize the federal tax benefits associated with our deferred tax assets. We assessed the realizability of the deferred tax assets associated with state taxes, foreign taxes and uncertain tax positions and have concluded that it is more likely than not that we will realize only a portion of these benefits. Accordingly, we have established a valuation allowance to reduce those deferred tax assets to an amount which we believe will ultimately be realized. During fiscal year 2014, as a result of our assessment, we reduced our valuation allowance by $457. | |||||||||||||
As of February 1, 2015, we had available $8,814 federal tax credit carryovers, including $8,751 of general business credits and $63 of AMT credit carryovers, and $21,904 of state net operating loss carryforwards. There is a 20 year carry-forward on general business credits and AMT credits can be carried forward indefinitely. The general business credits do not begin to expire until 2030 and are expected to be utilized in 2015 based on current enacted tax laws. As of February 1, 2015, we have no federal net operating loss carryforwards. Generally, state net operating losses can be carried forward 20 years. State net operating loss carryforwards do not begin to expire until 2024. As of February 1, 2015, we could not conclude that it was more likely than not that all of our state net operating loss carryforwards, when considered on a state by state basis, will be fully utilized prior to their expiration. Included in our total valuation allowance is $735 related to state net operating losses that may not be realized. | |||||||||||||
The State of Texas has enacted legislation which established a tax based on taxable margin. As a result of the legislation and in accordance with accounting guidance for income taxes, we recorded an income tax expense of $284, $246 and $269 for the fiscal years 2014, 2013 and 2012, respectively. | |||||||||||||
The following table sets forth the change in unrecognized tax benefits excluding interest, penalties and related income tax benefits for the periods indicated: | |||||||||||||
FISCAL YEAR | FISCAL YEAR | FISCAL YEAR | |||||||||||
ENDED | ENDED | ENDED | |||||||||||
FEBRUARY 1, | FEBRUARY 2, | FEBRUARY 3, | |||||||||||
2015 | 2014 | 2013 | |||||||||||
Balance at beginning of year | $ | 476 | $ | 471 | $ | 940 | |||||||
Additions for tax positions of prior years | 90 | 176 | 108 | ||||||||||
Reductions for tax positions of prior years | — | (32 | ) | (1 | ) | ||||||||
Settlements | — | — | (576 | ) | |||||||||
Lapse of statute of limitations | — | (139 | ) | — | |||||||||
Balance at end of year | $ | 566 | $ | 476 | $ | 471 | |||||||
As of February 1, 2015 and February 2, 2014, the accrued interest and penalties on the unrecognized tax benefits were $338 and $291, respectively, excluding any related income tax benefits. The Company recorded accrued interest related to the unrecognized tax benefits and penalties as a component of the provision for income taxes recognized in the Consolidated Statements of Comprehensive Income. | |||||||||||||
We currently anticipate that approximately $14 of unrecognized tax benefits will be settled through federal and state audits or will be recognized as a result of the expiration of statute of limitations during fiscal 2015. Future recognition of potential interest or penalties, if any, will be recorded as a component of income tax expense. Because of the impact of deferred tax accounting, $439 of unrecognized tax benefits, if recognized, would affect the effective tax rate. | |||||||||||||
The following table sets forth the reconciliation of the federal statutory rate to the effective income tax rate for the periods indicated: | |||||||||||||
FISCAL YEAR | FISCAL YEAR | FISCAL YEAR | |||||||||||
ENDED | ENDED | ENDED | |||||||||||
FEBRUARY 1, | FEBRUARY 2, | FEBRUARY 3, | |||||||||||
2015 | 2014 | 2013 | |||||||||||
Federal corporate statutory rate | 35 | % | 35 | % | 35 | % | |||||||
State and local income taxes, net of federal income tax benefit | 20.7 | % | 30.8 | % | 1.2 | % | |||||||
Foreign taxes | — | % | 1.8 | % | 0.9 | % | |||||||
Nondeductible expenses | 11.3 | % | 24.9 | % | (23.5 | )% | |||||||
Tax credits | (31.4 | )% | (74.8 | )% | 65.8 | % | |||||||
Valuation allowance | (4.0 | )% | 7.1 | % | 257.4 | % | |||||||
Change in reserve | 1.2 | % | 0.2 | % | 32.9 | % | |||||||
Other | 0.9 | % | 1.7 | % | (45.7 | )% | |||||||
Effective tax rate | 33.7 | % | 26.7 | % | 324 | % | |||||||
We file income tax returns, which are periodically audited by various federal, state and foreign jurisdictions. We are generally no longer subject to federal, state, or foreign income tax examinations for years prior to 2010. |
Leases
Leases | 12 Months Ended | ||||||||||||
Feb. 01, 2015 | |||||||||||||
Leases [Abstract] | |||||||||||||
Leases | Note 8: Leases | ||||||||||||
We lease certain property and equipment under various non-cancelable operating leases. Some of the leases include options for renewal or extension on various terms. Most of the leases require us to pay property taxes, insurance and maintenance of the leased assets. Certain leases also have provisions for additional contingent rentals based on revenues. Rent expense is included in “Other store operating expenses” in the Consolidated Statements of Comprehensive Income. For fiscal 2014, rent expense for operating leases was $61,174, including contingent rentals of $3,310. For fiscal 2013, rent expense for operating leases was $54,450, including contingent rentals of $2,858. For fiscal 2012, rent expense for operating leases was $50,561, including contingent rentals of $2,620. At February 1, 2015 future minimum lease payments, including any periods covered by renewal options we are reasonably assured of exercising (including the sale/leaseback transactions described below), are: | |||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | THEREAFTER | TOTAL | |||||||
$63,282 | $62,142 | $60,937 | $57,239 | $51,790 | $366,670 | $662,060 | |||||||
At February 1, 2015, we also had lease commitments on equipment as follows: | |||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | THEREAFTER | TOTAL | |||||||
$778 | $336 | $107 | $2 | $— | $— | $1,223 | |||||||
We have signed operating lease agreements for future sites in Euless (Dallas), Texas, Pelham (Long Island), New York, Woburn (Boston), Massachusetts and Kentwood (Grand Rapids), Michigan which are expected to open in the first half of fiscal 2015. The landlord has fulfilled the obligations to commit us to the lease terms under these agreements and therefore, the future obligations related to these locations are included in the table above. | |||||||||||||
As of February 1, 2015 we have signed thirteen additional lease agreements for future sites. Our commitments under these agreements are contingent upon among other things, the landlord’s delivery of access to the premises for construction. Future obligations related to these agreements are not included in the table. Subsequently, our future site located in Edina (Minneapolis), Minnesota, included in the thirteen lease agreements noted above, has been delivered by the landlord resulting in future commitments of approximately $19,603. | |||||||||||||
During 2000 and 2001, we completed the sale/leaseback of three stores and the corporate headquarters. Cash proceeds of $24,774 were received along with two twenty-year notes aggregating $6,750. The notes bear interest of 7.0% to 7.5%. At the end of fiscal years 2014 and 2013, the aggregate balance of the notes receivable due from the lessors under the sale/leaseback agreements was $2,651 and $2,936, respectively. Future minimum principal and interest payments due to us under these notes are as follows: | |||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | THEREAFTER | TOTAL | |||||||
$489 | $489 | $489 | $489 | $489 | $937 | $3,382 | |||||||
Equitybased_Compensation
Equity-based Compensation | 12 Months Ended | ||||||||||||||||
Feb. 01, 2015 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||
Equity-based Compensation | Note 9: Equity-based Compensation | ||||||||||||||||
2014 Stock Incentive Plan | |||||||||||||||||
The 2014 Stock Incentive Plan allows the granting of incentive and nonqualified stock options, stock appreciation rights, restricted stock, other stock-based awards and cash-based awards to employees, directors, and consultants of the Company. The maximum number of shares of common stock issuable under the 2014 Stock Incentive Plan is 3,100,000 shares. The term of service-based stock options is determined at the date of grant. Performance-based stock options can be based upon a variety of performance measures as defined in the plan document. Each award agreement will specify the effect of a holder’s termination of employment with, or service for, the Company. Options granted under the 2014 Stock Incentive Plan terminate on the ten-year anniversary of the grants. | |||||||||||||||||
Transactions during fiscal year 2014 under the 2014 Stock Incentive Plan were as follows: | |||||||||||||||||
SERVICE BASED OPTIONS | |||||||||||||||||
NUMBER | WEIGHTED | ||||||||||||||||
OF OPTIONS | AVERAGE | ||||||||||||||||
EXERCISE PRICE | |||||||||||||||||
Options outstanding at beginning of year | — | $ | — | ||||||||||||||
Granted | 444,969 | 16 | |||||||||||||||
Exercised | — | — | |||||||||||||||
Forfeited | — | — | |||||||||||||||
Options outstanding at end of year | 444,969 | $ | 16 | ||||||||||||||
Options exercisable at end of year | — | $ | — | ||||||||||||||
2010 Stock Incentive Plan | |||||||||||||||||
The 2010 Stock Incentive Plan provides for the granting of options to acquire stock in D&B Entertainment to certain of our employees, outside directors and consultants. The options are subject to either time-based vesting or performance-based vesting. Options granted under the 2010 Stock Incentive Plan terminate on the ten-year anniversary of the grants. | |||||||||||||||||
Options provided for in the 2010 Stock Incentive Plan are subject to the grantee’s continued employment with or service to D&B Entertainment or its subsidiaries (subject to certain conditions in the event of grantee termination). Service-based options contain a service-based (or time-based) vesting provision, whereby the options will vest annually in equal amounts. | |||||||||||||||||
Performance based options contain various performance-based vesting provisions depending on the type of performance option granted. As a result of the IPO, all unvested performance-based shares were modified and became fully vested. We recognized compensation expense of $859 during fiscal 2014 related to the accelerated vesting of these performance-based options. All time-based options will continue to vest under the existing vesting schedule. As a result of the performance-based options fully vesting, we re-evaluated our forfeiture assumptions and recognized additional compensation expense of $221. | |||||||||||||||||
Additionally as a result of the IPO, all stock option awards granted prior to the IPO were adjusted to affect the 224.9835679 for 1 stock split on both number of outstanding options and the exercise price. No further equity or other awards will be made under the 2010 Stock Incentive Plan. | |||||||||||||||||
Transactions during fiscal year 2014 under the 2010 Stock Incentive Plan were as follows: | |||||||||||||||||
SERVICE BASED OPTIONS | PERFORMANCE BASED OPTIONS | ||||||||||||||||
NUMBER | WEIGHTED | NUMBER | WEIGHTED | ||||||||||||||
OF OPTIONS | AVERAGE | OF OPTIONS | AVERAGE | ||||||||||||||
EXERCISE PRICE | EXERCISE PRICE | ||||||||||||||||
Options outstanding at beginning of year | 1,303,236 | $ | 5.39 | 2,690,812 | $ | 4.54 | |||||||||||
Granted | — | — | — | — | |||||||||||||
Exercised | — | — | — | — | |||||||||||||
Forfeited | — | — | — | — | |||||||||||||
Options outstanding at end of year | 1,303,236 | 5.39 | 2,690,812 | 4.54 | |||||||||||||
Options exercisable at end of year | 835,802 | $ | 4.89 | 2,690,812 | $ | 4.54 | |||||||||||
We recorded share-based compensation expense related to our stock option plans of $2,212, $1,207 and $1,099 during the fiscal year ended February 1, 2015, February 2, 2014 and February 3, 2013 respectively. The unrecognized expense related to our stock option plan totaled approximately $3,661 as of February 1, 2015 and will be expensed over a weighted average 3.2 years. The weighted average grant date fair value per option granted in fiscal year 2014 was $8.45. The average remaining term for all options outstanding at February 1, 2015 is 6.0 years. | |||||||||||||||||
In the event that vesting of the previously unvested options is accelerated for any reason, the remaining unamortized share-based compensation would be accelerated. In addition, assumptions made regarding forfeitures in determining the remaining unamortized share-based compensation would be re-evaluated to determine if additional share-based compensation expense would be required for any changes in the underlying assumptions. | |||||||||||||||||
On January 6, 2014, a former member of management exercised his option to purchase 17,999 shares of common stock at a strike price of $4.44. D&B Entertainment issued new shares in satisfaction of this exercise. |
Employee_Benefit_Plan
Employee Benefit Plan | 12 Months Ended |
Feb. 01, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plan | Note 10: Employee Benefit Plan |
We sponsor a plan to provide retirement benefits under the provisions of Section 401(k) of the Internal Revenue Code (the “401(k) Plan”) for all employees who have completed a specified term of service. We provide for a guaranteed matching of 25% of employee contributions, up to a maximum of 6% of eligible employee compensation, as defined by the 401(k) Plan. The Company also has a discretionary contribution dependent upon attaining certain performance targets. Should the Company achieve the performance target, it would contribute an additional 25% of qualified employee contributions. Employees may elect to contribute up to 50% of their eligible compensation on a pretax basis. Benefits under the 401(k) Plan are limited to the assets of the 401(k) Plan. Expenses related to our contributions to the 401(k) Plan were $648, $370, and $382 for fiscal 2014, 2013, and 2012, respectively. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Feb. 01, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 11: Commitments and Contingencies |
We are subject to certain legal proceedings and claims that arise in the ordinary course of our business, including claims resulting from employment related matters. In the opinion of management, based upon consultation with legal counsel, the amount of ultimate liability with respect to such legal proceedings and claims will not materially affect the consolidated results of our operations or our financial condition. | |
We are subject to the terms of a settlement agreement with the Federal Trade Commission (FTC) that requires us, on an ongoing basis, to establish, implement, and maintain a comprehensive information security program that is reasonably designed to protect the security, confidentiality, and integrity of personal information collected from or about consumers. The agreement does not require us to pay any fines or other monetary assessments and we do not believe that the terms of the agreement will have a material adverse effect on our business, operations, or financial performance. |
Earnings_per_share
Earnings per share | 12 Months Ended | ||||||||||||
Feb. 01, 2015 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Earnings per share | Note 12: Earnings per share | ||||||||||||
Basic earnings per share (“EPS”) represents net income divided by the weighted average number of common shares outstanding during the period. Diluted EPS represents net income divided by the basic weighted average number of common shares plus, if dilutive, potential common shares outstanding during the period. Potential common shares consist of incremental common shares issuable upon the exercise of outstanding stock options. The dilutive effect of potential common shares is determined using the treasury stock method, whereby outstanding stock options are assumed exercised at the beginning of the reporting period and the exercise proceeds from such stock options are assumed to be used to repurchase our common stock at the average market price during the period. | |||||||||||||
The following table sets forth the computation of EPS, basic and diluted for the periods indicated: | |||||||||||||
(in thousands, except per share data) | FISCAL YEAR | FISCAL YEAR | FISCAL YEAR | ||||||||||
ENDED | ENDED | ENDED | |||||||||||
FEBRUARY 1, 2015 | FEBRUARY 2, 2014 | FEBRUARY 3, 2013 | |||||||||||
Numerator: | |||||||||||||
Net income | $ | 7,636 | $ | 2,169 | $ | 8,782 | |||||||
Denominator: | |||||||||||||
Basic weighted average common shares outstanding | 35,314,884 | 33,187,776 | 33,186,426 | ||||||||||
Potential common shares for stock options | 1,811,164 | 842,339 | 561,109 | ||||||||||
Diluted weighted average common shares outstanding | 37,126,048 | 34,030,115 | 33,747,535 | ||||||||||
Earnings (loss) per shares: | |||||||||||||
Basic | $ | 0.22 | $ | 0.07 | $ | 0.26 | |||||||
Diluted | $ | 0.21 | $ | 0.06 | $ | 0.26 | |||||||
We had approximately 4,439,017 and 2,091,411 time-based and vested performance-based stock option awards outstanding under our stock option plans as of February 1, 2015 and February 2, 2014, respectively, which were included in the computation of potential common shares. Unvested performance-based stock options under our stock option plans were not included in the calculation of potential common shares as they did not meet the criteria for inclusion per GAAP guidance. |
Quarterly_Financial_Informatio
Quarterly Financial Information (unaudited) | 12 Months Ended | ||||||||||||||||
Feb. 01, 2015 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Quarterly Financial Information (unaudited) | Note 13: Quarterly Financial Information (unaudited) | ||||||||||||||||
FISCAL YEAR ENDED FEBRUARY 1, 2015 | |||||||||||||||||
FIRST | SECOND | THIRD | FOURTH | ||||||||||||||
QUARTER | QUARTER | QUARTER | QUARTER | ||||||||||||||
5/4/14 | 8/3/14 | 11/2/14 | 2/1/15 | ||||||||||||||
Total revenues | $ | 194,823 | $ | 181,385 | $ | 163,474 | $ | 207,069 | |||||||||
Income (loss) before provision (benefit) for income taxes | 16,219 | (20,923 | ) | (6,814 | ) | 23,012 | |||||||||||
Net income (loss) | 11,461 | (13,878 | ) | (4,607 | ) | 14,660 | |||||||||||
Net income (loss) per share of common stock: | |||||||||||||||||
Basic | $ | 0.35 | $ | (0.42 | ) | $ | (0.13 | ) | $ | 0.37 | |||||||
Diluted | $ | 0.34 | $ | (0.42 | ) | $ | (0.13 | ) | $ | 0.34 | |||||||
Weighted average number of shares outstanding: | |||||||||||||||||
Basic | 33,204,272 | 33,204,272 | 34,881,763 | 39,969,230 | |||||||||||||
Diluted | 34,136,340 | 33,204,272 | 34,881,763 | 43,341,818 | |||||||||||||
Stores open at end of period | 68 | 69 | 70 | 73 | |||||||||||||
FISCAL YEAR ENDED FEBRUARY 2, 2014 | |||||||||||||||||
FIRST | SECOND | THIRD | FOURTH | ||||||||||||||
QUARTER | QUARTER | QUARTER | QUARTER | ||||||||||||||
5/5/13 | 8/4/13 | 11/3/13 | 2/2/14 | ||||||||||||||
Total revenues | $ | 168,155 | $ | 153,723 | $ | 142,330 | $ | 171,371 | |||||||||
Income (loss) before provision (benefit) for income taxes | 10,554 | (794 | ) | (12,910 | ) | 6,380 | |||||||||||
Net income (loss) | 7,550 | (98 | ) | (10,160 | ) | 4,877 | |||||||||||
Net income (loss) per share of common stock: | |||||||||||||||||
Basic | $ | 0.23 | $ | — | $ | (0.31 | ) | $ | 0.15 | ||||||||
Diluted | $ | 0.22 | $ | — | $ | (0.31 | ) | $ | 0.14 | ||||||||
Weighted average number of shares outstanding: | |||||||||||||||||
Basic | 33,186,273 | 33,186,273 | 33,186,273 | 33,191,811 | |||||||||||||
Diluted | 33,916,570 | 33,186,273 | 33,186,273 | 34,034,149 | |||||||||||||
Stores open at end of period | 61 | 62 | 64 | 66 | |||||||||||||
During 2014, we opened eight locations: Westchester (Los Angeles), California and Vernon Hills (Chicago), Illinois in the first quarter, Panama City Beach, Florida in the second quarter, Los Angeles, California and Manchester (Hartford), Connecticut in the third quarter, and Albuquerque, New Mexico, Clackamas (Portland), Oregon, and Greenville, South Carolina in the fourth quarter. During 2013, we opened five locations: Virginia Beach, Virginia, in the second quarter, Syracuse, New York and Albany, New York, in the third quarter, Cary (Raleigh), North Carolina and Livonia (Detroit), Michigan in the fourth quarter Additionally, during the third quarter of fiscal 2014, we permanently closed our Bethesda location. Pre-opening costs incurred in fiscal 2014 were $2,444, $1,848, $3,650 and $1,559 in the first, second, third and fourth quarters, respectively. Pre-opening costs incurred in fiscal 2013 were $872, $1,970, $2,333 and $1,865 in the first, second, third and fourth quarters, respectively. We recognized a loss on debt retirement of $25,986 in the second quarter of fiscal 2014 due to the refinancing of our prior outstanding debt and $1,592 in the third quarter of fiscal 2014 due primarily to the early prepayment of a portion of our new term loan facility. |
Description_of_Business_and_Su1
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||||||||||
Feb. 01, 2015 | |||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||
Description of business and basis of presentation | Description of business and basis of presentation — Dave & Buster’s Entertainment, Inc. (“D&B Entertainment”), is a Delaware corporation headquartered in Dallas, Texas. As of February 1, 2015, Oak Hill Capital Partners III, L.P. and Oak Hill Capital Management Partners, III, L.P. (collectively, the “Oak Hill Funds”) beneficially owned approximately 79.2% of the Company’s outstanding stock. | ||||||||||||||||||||
D&B Entertainment owns no significant assets or operations other than the ownership of all the common stock of Dave & Buster’s Holdings, Inc. (“D&B Holdings”). D&B Holdings owns no significant assets or operations other than the ownership of all the common stock of Dave & Buster’s, Inc. (“D&B Inc”) References to the “Company”, “we”, “us”, and “our” refers to D&B Entertainment and its subsidiaries and any predecessor companies. All material intercompany accounts and transactions have been eliminated in consolidation. The Company’s activities are conducted through D&B Inc. D&B Inc owns and operates high-volume venues in North America that combine dining and entertainment for both adults and families. | |||||||||||||||||||||
On October 9, 2014, we amended our certificate of incorporation to increase our authorized share count to 450,000,000 shares of stock, including 400,000,000 shares of common stock and 50,000,000 shares of preferred stock, each with a par value $0.01 per share and to split our common stock 224.9835679 for 1. On October 16, 2014, we amended and restated our certificate of incorporation in its entirety. | |||||||||||||||||||||
On October 9, 2014, we completed our initial public offering of 5,882,353 shares of common stock at a price to the public of $16.00 per share. On October 10, 2014, the Company’s common stock began trading on the NASDAQ Global Market (“NASDAQ”) under the ticker symbol “PLAY”. We had granted the underwriters an option for a period of 30 days to purchase an additional 882,352 shares of our common stock which was exercised in full on October 21, 2014. After underwriting discounts and commissions and offering expenses, we received net proceeds from the initial public offering (the “IPO”) of approximately $98,573. We used these proceeds to prepay a portion of the principal amount of term loan debt outstanding under the new senior secured credit facility. | |||||||||||||||||||||
On February 5, 2015, subsequent to our fiscal 2014 year end, we completed a follow-on offering of 6,600,000 shares of our common stock at a price of $29.50 per share. We granted the underwriters an option to purchase an additional 990,000 shares of our common stock which was exercised in full on February 20, 2015. All of these shares were offered by the selling stockholders. In connection with the offering, 300,151 options were exercised at a weighted average price of $4.49. We issued new shares in satisfaction of this exercise. We received $1,346 upon the exercise of options which were sold as part of this offering. | |||||||||||||||||||||
We operate our business as one operating and one reportable segment. Our one industry segment is the operation and licensing of high-volume entertainment and dining venues under the names “Dave & Buster’s” and “Dave & Buster’s Grand Sports Café”. We operate on a 52 or 53 week fiscal year that ends on the Sunday after the Saturday closest to January 31. Each quarterly period has 13 weeks, except for a 53 week year when the fourth quarter has 14 weeks. Our fiscal years ended February 1, 2015 and February 2, 2014, both consist of 52 weeks. Our fiscal year ended February 3, 2013 consists of 53 weeks. | |||||||||||||||||||||
The accompanying audited financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States as prescribed by the Securities and Exchange Commission. All dollar amounts are presented in thousands, unless otherwise noted, except share and per share amounts. | |||||||||||||||||||||
During fiscal 2014, we opened eight new stores. As of February 1, 2015, there were 73 stores in the United States and Canada. On August 12, 2014, we permanently closed our location in Kensington/Bethesda, Maryland (“Bethesda”). Revenues for our Bethesda store were $5,416 and $12,036 in fiscal 2014 and fiscal 2013, respectively. Operating income for the store was $823 for fiscal 2014 and $2,896 for fiscal 2013. Included in our fiscal 2014 store count is our location in Farmingdale (Long Island), New York (“Farmingdale”) which closed on February 8, 2015 due to the expiration of our lease. All our fixed assets from the Farmingdale store were either fully depreciated as of the end of the lease term or were transferred to other locations. With past store closures, we have experienced customer migration to stores within the same market. We currently have two other stores in the Long Island market. | |||||||||||||||||||||
Reclassifications | Reclassifications — All share and per-share data herein have been retroactively adjusted to reflect the 224.9835679 for 1 stock split as though it had occurred prior to the earliest data presented. One reclassification has been made to the fiscal year 2013 Consolidated Balance Sheets to conform to the fiscal year 2014 presentation. We reclassified $333 of Paid-in capital as of January 29, 2012, February 3, 2013 and February 2, 2014, to Common stock to affect the 224.9835679 for 1 stock split. | ||||||||||||||||||||
Related party transaction | Related party transaction — Funds managed by Oak Hill Advisors, L.P. (the “OHA Funds”) comprise one of the creditors participating in the term loan portion of our new senior secured credit facility. As of February 1, 2015, the OHA Funds held approximately 8.3% or $35,626 of our total term loan obligation. Oak Hill Advisors, L.P. is an independent investment firm that is not an affiliate of the Oak Hill Funds and is not under common control with the Oak Hill Funds. Certain employees of the Oak Hill Funds, in their individual capacities, have passive investments in Oak Hill Advisors, L.P. and/or the funds it manages. | ||||||||||||||||||||
As of February 1, 2015, Oak Hill Funds beneficially owned approximately 79.2% of our outstanding stock and certain members of our Board of Directors and our management beneficially owned approximately 3.7% of our outstanding stock. The remaining 17.1% was owned by the public. Subsequent to the follow-on offering transactions, the Oak Hill Funds beneficially own approximately 62.1% of our outstanding stock and certain members of our Board of Directors and our management beneficially own approximately 2.2% of our outstanding stock. The remaining 35.7% is owned by the public. The Oak Hill Funds continue to own a majority of the voting power of our outstanding common stock. As a result, we are a “controlled company” within the meaning of the corporate governance standards of NASDAQ. | |||||||||||||||||||||
We have an expense reimbursement agreement with Oak Hill Capital Management, LLC (“Oak Hill Capital”), which provides for the reimbursement of certain costs and expenses. We made payments to Oak Hill Capital of $41, $115 and $76 during fiscal 2014, 2013 and 2012, respectively. We paid compensation of $155, $235 and $235 in fiscal 2014, 2013 and 2012, respectively, to David Jones who serves as a senior advisor to the Oak Hill Funds, and Alan Lacy, who served as a senior advisor to the Oak Hill Funds until December 2014. | |||||||||||||||||||||
Seasonality | Seasonality — Our revenues and operations are influenced by seasonal shifts in consumer spending. Revenues associated with spring and year-end holidays during our first and fourth quarters have historically been higher as compared to the other quarters and will continue to be susceptible to the impact of severe spring and winter weather on customer traffic and sales during those periods. Our third quarter, which encompasses the back-to-school fall season, has historically had lower revenues as compared to the other quarters. | ||||||||||||||||||||
Use of estimates | Use of estimates — The preparation of financial statements in conformity with GAAP requires us to make certain estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. The Company’s significant estimates include estimates for impairment of goodwill, useful lives of property and equipment, fair value of equity-based compensation, self-insurance reserves, deferred revenue on our Power Cards and gift cards, reserve for outstanding tickets and deferred tax valuation allowances. | ||||||||||||||||||||
Cash and cash equivalents | Cash and cash equivalents — We consider transaction settlements in process from credit card companies and all highly liquid temporary investments with original maturities of three months or less to be cash equivalents. | ||||||||||||||||||||
Concentration of credit risk | Concentration of credit risk — Financial instruments which potentially subject us to a concentration of credit risk are cash and cash equivalents. We currently maintain our day-to-day operating cash balances with major financial institutions. At times, our operating cash balances may be in excess of the Federal Deposit Insurance Corporation (“FDIC”) insurance limit. From time to time, we invest temporary excess cash in overnight investments with expected minimal volatility, such as money market funds. Although we maintain balances that exceed the FDIC insured limit, we have not experienced any losses related to this balance, and we believe credit risk to be minimal. | ||||||||||||||||||||
Inventories | Inventories — Inventories of food, beverages, merchandise and other supplies needed for our food service and amusement operations are stated at the lower of cost or market determined on a first-in, first-out method. | ||||||||||||||||||||
Deferred tax assets | Deferred tax assets — A deferred income tax asset or liability is established for the expected future consequences resulting from temporary differences in the financial reporting and tax basis of assets and liabilities. As of February 1, 2015, we had recorded $931 as a valuation allowance against a portion of our deferred tax assets. The valuation allowance was established in accordance with accounting guidance for income taxes. If we generate taxable income in future periods or if the facts and circumstances on which our estimates and assumptions are based were to change, thereby impacting the likelihood of realizing the deferred tax assets, judgment would have to be applied in determining the amount of valuation allowance no longer required or if an addition to the allowance would be required. | ||||||||||||||||||||
Property and equipment | Property and equipment — Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is charged to operations using the straight-line method over the assets’ estimated useful lives, which are as follows: | ||||||||||||||||||||
Estimated Depreciable | |||||||||||||||||||||
Lives (In Years) | |||||||||||||||||||||
Buildings and building improvements | Shorter of 40 or expected | ||||||||||||||||||||
ground lease term | |||||||||||||||||||||
Leasehold improvements | Shorter of 20 or | ||||||||||||||||||||
expected lease term | |||||||||||||||||||||
Furniture, fixtures and equipment | 10-Mar | ||||||||||||||||||||
Games | 20-May | ||||||||||||||||||||
Expenditures that substantially increase the useful lives of the property and equipment are capitalized, whereas costs incurred to maintain the appearance and functionality of such assets are charged to repair and maintenance expense. Interest costs and other site specific costs incurred during construction are capitalized and depreciated based on the estimated useful life of the underlying asset. | |||||||||||||||||||||
We review our property and equipment annually, on a store-by-store basis to determine whether facts or circumstances exist that may indicate the carrying values of these long-lived assets are impaired. We compare store-level undiscounted operating cash flows (which exclude interest, general and administrative and other allocated expenses) to the carrying amount of property and equipment allocated to each store. If the expected future cash flows are less than the asset carrying amount (an indication that the carrying amount may not be recoverable), we may recognize an impairment loss. Any impairment loss recognized equals the amount by which the asset carrying amount exceeds its fair value. No impairment charges were recognized in fiscal years 2014, 2013 or 2012. | |||||||||||||||||||||
Goodwill and other intangible assets | Goodwill and other intangible assets — In accordance with accounting guidance for goodwill and other intangible assets, goodwill and indefinite lived intangibles, such as tradenames, are not amortized, but are reviewed for impairment at least annually. We perform step one of the impairment test in our fourth quarter unless circumstances require this analysis to be completed sooner. Step one of the impairment test is based upon a comparison of the carrying value of our net assets, including goodwill balances, to the fair value of our net assets. The fair value of our net assets, including goodwill are estimated using a combination of market earnings multiples and discounted cash flow methodologies. Key assumptions used in our testing include future store openings, revenue growth, operating expenses and discount rate. Estimates of revenue growth and operating expenses are based on internal projections considering our past performance and forecasted growth, market economics and the business environment impacting our Company’s performance. Discount rates are determined by using a weighted average cost of capital (“WACC”). The WACC considers market and industry data as well as Company-specific risk factors. These estimates are highly subjective judgments and can be significantly impacted by changes in the business or economic conditions. Our estimates used in the income approach are consistent with the plans and estimates used to manage operations. We evaluate all methods to ensure reasonably consistent results. Based on the completion of the step one test, we determined that goodwill was not impaired. | ||||||||||||||||||||
The evaluation of the carrying amount of other intangible assets with indefinite lives is made at least annually by comparing the carrying amount of these assets to their estimated fair value. The estimated fair value is generally determined on the basis of discounted future cash flows. If the estimated fair value is less than the carrying amount of the other intangible assets with indefinite lives, then an impairment charge is recorded to reduce the asset to its estimated fair value. | |||||||||||||||||||||
Based on our analysis, we determined that our intangible assets with an indefinite life, our tradename, was not impaired. | |||||||||||||||||||||
We have developed and acquired certain trademarks that are utilized in our business and have been determined to have finite lives. We also have intangible assets related to our non-compete agreements and customer relationships. These intangible assets are included in “Other assets and deferred charges” on the Consolidated Balance Sheets and are amortized over their useful lives. | |||||||||||||||||||||
Deferred debt issuance costs | Deferred debt issuance costs — The Company capitalizes costs incurred in connection with borrowings or establishment of credit facilities. These costs are included in “Other assets and deferred charges” in the Consolidated Balance Sheets, and are amortized as an adjustment to interest expense over the life of the borrowing or life of the credit facility. In the case of early debt principal repayments, the Company adjusts the value of the corresponding deferred financing costs with a charge to interest expense, and similarly adjusts the future amortization expense. The following table details amounts relating to those assets: | ||||||||||||||||||||
Fiscal Year Ended | Fiscal Year Ended | Fiscal Year Ended | |||||||||||||||||||
February 1, 2015 | February 2, 2014 | February 3, 2013 | |||||||||||||||||||
Balance at beginning of period | $ | 7,954 | $ | 10,076 | $ | 12,735 | |||||||||||||||
New debt issuance payments | 8,212 | — | — | ||||||||||||||||||
Write off of unamortized debt issance cost—refinancing | (6,559 | ) | — | — | |||||||||||||||||
Additional deferred financing costs | — | 726 | — | ||||||||||||||||||
Write off of unamortized debt issuance cost—early prepayment | (1,347 | ) | — | — | |||||||||||||||||
Amortization during period | (2,074 | ) | (2,848 | ) | (2,659 | ) | |||||||||||||||
Balance at end of period | $ | 6,186 | $ | 7,954 | $ | 10,076 | |||||||||||||||
Self-insurance accruals | Self-insurance accruals — We are self-insured for certain losses related to workers’ compensation claims, general liability matters and our Company sponsored employee health insurance programs. We estimate the accrued liabilities for our self-insurance programs using historical claims experience and loss reserves, assisted by independent third-party actuaries. To limit our exposure to losses, we maintain stop-loss coverage through third-party insurers. | ||||||||||||||||||||
Fair value disclosures | Fair value disclosures — Fair value is defined as the price that we would receive to sell an asset or pay to transfer a liability (an exit price) in an orderly transaction between market participants on the measurement date. In determining fair value, GAAP establishes a three-level hierarchy used in measuring fair value, as follows: | ||||||||||||||||||||
• | Level 1 inputs are quoted prices available for identical assets and liabilities in active markets. | ||||||||||||||||||||
• | Level 2 inputs are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets and liabilities in active markets or other inputs that are observable or can be corroborated by observable market data. | ||||||||||||||||||||
• | Level 3 inputs are less observable and reflect our own assumptions. | ||||||||||||||||||||
Our financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, and our senior secured credit facility. The carrying amount of cash and cash equivalents, accounts receivable and accounts payable approximates fair value because of their short maturities. We believe that the carrying amount of our term credit facility approximates its fair value because the interest rates are adjusted regularly based on current market conditions. | |||||||||||||||||||||
We may adjust the carrying amount of certain nonfinancial assets to fair value on a non-recurring basis when they are impaired. No such adjustments were made in fiscal year 2014, 2013 or 2012. | |||||||||||||||||||||
Comprehensive income (loss) | Comprehensive income (loss) — Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. In addition to net income, unrealized foreign currency translation gain (loss) is included in comprehensive income (loss). Unrealized translation loss for fiscal 2014 was $479. Unrealized translation loss for fiscal 2013 was $419 and unrealized translation gain for fiscal 2012 was $15. | ||||||||||||||||||||
Foreign currency translation | Foreign currency translation — The consolidated financial statements are presented in US dollars, which is our functional and reporting currency. The financial statements related to the operations of our Toronto store are prepared in Canadian dollars. Income statement amounts are translated at average exchange rates for each period, while the assets and liabilities are translated at year-end exchange rates. Translation adjustments for assets and liabilities are included in stockholder’s equity as a component of comprehensive income (loss). | ||||||||||||||||||||
Share-based expense | Share-based expense — The expense associated with share-based equity awards granted as more fully described in Note 9 has been calculated as required by current accounting standards related to stock compensation. The grant date fair values of the options granted in 2014, 2013 and 2012 have been determined based on the option pricing method prescribed in AICPA Practice Aid, Valuation of privately-Held-Company Equity Securities Issued as Compensation. The expected term of the options were based on the weighted average of anticipated exercise dates. Since we did not have publicly traded equity securities prior to our IPO, the volatility of our options has been estimated using peer group volatility information. The risk-free interest rate was based on the implied yield on U.S. Treasury zero-coupon issues with a remaining term equivalent to the expected term. The significant assumptions used in determining the underlying fair value of the weighted-average options granted in fiscal 2014, 2013 and 2012 were as follows: | ||||||||||||||||||||
2014 Stock | 2010 Stock Incentive Plan | ||||||||||||||||||||
Incentive Plan | |||||||||||||||||||||
Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | |||||||||||||||||||
Service | Service | Performance | Service | Performance | |||||||||||||||||
Based | Based | Based | Based | Based | |||||||||||||||||
Volatility | 51.3 | % | 48.2 | % | 47 | % | 44.7 | % | 50 | % | |||||||||||
Risk free interest rate | 1.96 | % | 1.15 | % | 1.06 | % | 0.78 | % | 0.33 | % | |||||||||||
Expected dividend yield | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | |||||||||||
Expected term – in years | 6.8 | 6.5 | 6.5 | 4.9 | 3 | ||||||||||||||||
Weighted average calculated value | $ | 8.45 | $ | 4.72 | $ | 4.16 | $ | 2.43 | $ | 2.25 | |||||||||||
The options granted in fiscal 2014 were issued pursuant to the terms of the 2014 Omnibus Incentive Plan (“2014 Stock Incentive Plan”). The options granted in fiscal years 2013 and 2012 have been issued pursuant to the terms of the Dave & Buster’s Entertainment, Inc. 2010 Management Incentive Plan (“2010 Stock Incentive Plan “). See future discussion of these plans in Note 9: Equity-based Compensation. | |||||||||||||||||||||
Revenue recognition | Revenue recognition — Food and beverage revenues are recorded at point of service. Amusement revenues consist primarily of game play credits on Power Cards purchased and used by customers to activate most of the video and redemption games in our midway. Amusement revenues are primarily recognized upon utilization of these game play credits. We have recognized a liability for the estimated amount of unused game play credits which we believe our customers will utilize in the future based on credits remaining on Power Cards, historic utilization patterns and revenue per game play credit sold. | ||||||||||||||||||||
Amusements costs of products | Amusements costs of products — Certain midway games allow customers to earn coupons, which may be redeemed for prizes. The cost of these prizes is included in the cost of amusement products and is generally recorded when coupons are utilized by the customer by redeeming the coupons for a prize in our Winner’s Circle. Customers may also store the coupon value on a Power Card for future redemption. We have accrued a liability for the estimated amount of outstanding coupons that we believe will be redeemed in subsequent periods based on coupons outstanding, historic redemption patterns and the estimated redemption cost of products per coupon. | ||||||||||||||||||||
Advertising costs | Advertising costs — Advertising costs are recorded as an expense in the period in which we incur the costs or the first time the advertising takes place. Advertising costs expensed were $29,144, $27,475 and $28,502 in fiscal years 2014, 2013 and 2012, respectively. Advertising costs are included in “Other store operating expenses” in the Consolidated Statements of Comprehensive Income. | ||||||||||||||||||||
Lease accounting | Lease accounting — Rent expense is recorded on a straight-line basis over the lease term. The lease term commences on the date when we take possession and have the right to control the use of the leased premises. The lease term includes the initial non-cancelable lease term plus any periods covered by renewal options that we consider reasonably assured of exercising. Certain leases contain annual escalation clauses based on fixed escalation terms. The excess of cumulative rent expense, as determined on a straight-line basis, over cumulative rent payments made on leases with fixed escalation terms is recognized as “Deferred occupancy costs” in the Consolidated Balance Sheets. Also included in “Deferred occupancy costs” are construction allowances we receive from the lessor to reimburse us for the cost of leasehold improvements. The amortization related to these allowances is recorded as a reduction to rent expense over the term of the lease. | ||||||||||||||||||||
Additionally, certain of our operating leases contain clauses that provide additional contingent rent based on a percentage of sales greater than certain specified target amounts. We recognize contingent rent expense provided the achievement of that target is considered probable. | |||||||||||||||||||||
We had construction allowance receivables of $6,839 and $5,677 as of February 1, 2015 and February 2, 2014, respectively, related to our new store openings. Such balances are included in “Other current assets” in the Company’s Consolidated Balance Sheets. All receivable amounts are expected to be collected. | |||||||||||||||||||||
Pre-opening costs | Pre-opening costs — Pre-opening costs include costs associated with the opening and organizing of new stores, including the cost of feasibility studies, pre-opening rent, training and recruiting and travel costs for employees engaged in such pre-opening activities. All pre-opening costs are expensed as incurred. | ||||||||||||||||||||
Income taxes | Income taxes — We file consolidated returns with all our domestic subsidiaries. We use the asset/liability method for recording income taxes, which recognizes the amount of current and deferred taxes payable or refundable at the date of the financial statements as a result of all events that are recognized in the financial statements and as measured by the provisions of enacted tax laws. We also recognize liabilities for uncertain income tax positions for those items that meet the “more likely than not” threshold. | ||||||||||||||||||||
The calculation of tax liabilities involves significant judgment and evaluation of uncertainties in the interpretation of federal and state tax regulations. As a result, we have established accruals for taxes that may become payable in future years as a result of audits by tax authorities. Tax accruals are reviewed regularly pursuant to accounting guidance for uncertainty in income taxes. Tax accruals are adjusted as events occur that affect the potential liability for taxes such as the expiration of statutes of limitations, conclusion of tax audits, identification of additional exposure based on current calculations, identification of new issues, or the issuance of statutory or administrative guidance or rendering of a court decision affecting a particular issue. Accordingly, we may experience significant changes in tax accruals in the future, if or when such events occur. | |||||||||||||||||||||
As of February 1, 2015, we have accrued approximately $905 of unrecognized tax benefits, including approximately $338 of penalties and interest. During fiscal 2014, we recognized approximately $90 of tax benefits and an additional $48 of benefits related to penalties and interest based upon lapsing of time and settlement with taxing jurisdictions. Future recognition of potential interest or penalties, if any, will be recorded as a component of income tax expense. Because of the impact of deferred income tax accounting, $439 of unrecognized tax benefits, if recognized, would impact the effective tax rate. | |||||||||||||||||||||
Recent accounting pronouncements | Recent accounting pronouncements — In February 2015, the Financial Accounting Standards board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-02, “Consolidation: Amendment to the Consolidation Analysis.” This revised standard improves targeted areas of the consolidation guidance and reduces the number of consolidation models. This update is effective for annual and interim periods in fiscal years beginning after December 15, 2015, with early adoption permitted. We do not expect the adoption of ASU 2015-02 to have a material impact on our consolidated financial position or results of operations. | ||||||||||||||||||||
In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements – Going Concern: Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern”, which requires the Company’s management to evaluate whether there is substantial doubt about the Company’s ability to continue as a going concern. This update is effective for the annual period after December 15, 2016, and for annual and interim periods thereafter. We do not expect the adoption of ASU 2014-15 to have a material impact on our consolidated financial position or results of operations. | |||||||||||||||||||||
In May 2014, the FASB issued guidance in ASU No. 2014-09, outlining a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. This guidance requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, this guidance expands related disclosure requirements. This guidance is effective for reporting periods beginning after December 15, 2016. We are currently evaluating the impact this guidance will have on our consolidated financial position and results of operations. |
Description_of_Business_and_Su2
Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||||||
Feb. 01, 2015 | |||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||
Estimated Useful Lives of Assets | Depreciation is charged to operations using the straight-line method over the assets’ estimated useful lives, which are as follows: | ||||||||||||||||||||
ESTIMATED DEPRECIABLE | |||||||||||||||||||||
LIVES (IN YEARS) | |||||||||||||||||||||
Buildings and building improvements | Shorter of 40 or expected | ||||||||||||||||||||
ground lease term | |||||||||||||||||||||
Leasehold improvements | Shorter of 20 or | ||||||||||||||||||||
expected lease term | |||||||||||||||||||||
Furniture, fixtures and equipment | 10-Mar | ||||||||||||||||||||
Games | 20-May | ||||||||||||||||||||
Deferred Financing Costs Relating to Other Assets | The following table details amounts relating to those assets: | ||||||||||||||||||||
FISCAL YEAR ENDED | FISCAL YEAR ENDED | FISCAL YEAR ENDED | |||||||||||||||||||
FEBRUARY 1, 2015 | FEBRUARY 2, 2014 | FEBRUARY 3, 2013 | |||||||||||||||||||
Balance at beginning of period | $ | 7,954 | $ | 10,076 | $ | 12,735 | |||||||||||||||
New debt issuance payments | 8,212 | — | — | ||||||||||||||||||
Write off of unamortized debt issuance cost—refinancing | (6,559 | ) | — | — | |||||||||||||||||
Additional deferred financing costs | — | 726 | — | ||||||||||||||||||
Write off of unamortized debt issuance cost—early prepayment | (1,347 | ) | — | — | |||||||||||||||||
Amortization during period | (2,074 | ) | (2,848 | ) | (2,659 | ) | |||||||||||||||
Balance at end of period | $ | 6,186 | $ | 7,954 | $ | 10,076 | |||||||||||||||
Significant Assumptions Used in Determining Underlying Fair Value of Weighted-Average Options Granted | The significant assumptions used in determining the underlying fair value of the weighted-average options granted in fiscal 2014, 2013 and 2012 were as follows: | ||||||||||||||||||||
2014 STOCK | 2010 STOCK INCENTIVE PLAN | ||||||||||||||||||||
INCENTIVE PLAN | |||||||||||||||||||||
FISCAL 2014 | FISCAL 2013 | FISCAL 2012 | |||||||||||||||||||
SERVICE | SERVICE | PERFORMANCE | SERVICE | PERFORMANCE | |||||||||||||||||
BASED | BASED | BASED | BASED | BASED | |||||||||||||||||
Volatility | 51.3 | % | 48.2 | % | 47 | % | 44.7 | % | 50 | % | |||||||||||
Risk free interest rate | 1.96 | % | 1.15 | % | 1.06 | % | 0.78 | % | 0.33 | % | |||||||||||
Expected dividend yield | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | |||||||||||
Expected term—in years | 6.8 | 6.5 | 6.5 | 4.9 | 3 | ||||||||||||||||
Weighted average calculated value | $ | 8.45 | $ | 4.72 | $ | 4.16 | $ | 2.43 | $ | 2.25 | |||||||||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||
Feb. 01, 2015 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventories | Inventories consist of the following: | ||||||||
FEBRUARY 1, | FEBRUARY 2, | ||||||||
2015 | 2014 | ||||||||
Operating store—food and beverage | $ | 4,494 | $ | 3,961 | |||||
Operating store—amusement | 6,497 | 6,214 | |||||||
Corporate supplies, warehouse and other | 7,466 | 5,179 | |||||||
$ | 18,457 | $ | 15,354 | ||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | ||||||||
Feb. 01, 2015 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property and Equipment | Property and equipment consist of the following: | ||||||||
FEBRUARY 1, | FEBRUARY 2, | ||||||||
2015 | 2014 | ||||||||
Buildings and building improvements | $ | 14,305 | $ | 14,176 | |||||
Leasehold improvements | 379,468 | 330,641 | |||||||
Furniture, fixtures and equipment | 150,280 | 117,194 | |||||||
Games | 111,166 | 88,310 | |||||||
Construction in progress | 32,989 | 33,111 | |||||||
Total cost | 688,208 | 583,432 | |||||||
Accumulated depreciation | (252,160 | ) | (195,339 | ) | |||||
Property and equipment, net | $ | 436,048 | $ | 388,093 | |||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||||||
Feb. 01, 2015 | |||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||
Changes in Carrying Amount of Goodwill | Changes in the carrying amount of goodwill for the year ended February 1, 2015 and February 2, 2014 are as follows: | ||||||||||||||||||||
GROSS AMOUNT | |||||||||||||||||||||
Goodwill Balance at February 3, 2013 | $ | 272,278 | |||||||||||||||||||
Foreign exchange differences | 150 | ||||||||||||||||||||
Goodwill Balance at February 2, 2014 | 272,428 | ||||||||||||||||||||
Foreign exchange differences | 164 | ||||||||||||||||||||
Goodwill Balance at February 1, 2015 | $ | 272,592 | |||||||||||||||||||
Goodwill and Intangible Assets | The following table presents our goodwill and intangible assets at: | ||||||||||||||||||||
FEBRUARY 1, 2015 | FEBRUARY 2, 2014 | ||||||||||||||||||||
USEFUL LIVES | GROSS CARRYING | ACCUMULATED | GROSS CARRYING | ACCUMULATED | |||||||||||||||||
AMOUNT | AMORTIZATION | AMOUNT | AMORTIZATION | ||||||||||||||||||
Not subject to amortization: | |||||||||||||||||||||
Goodwill | $ | 272,592 | $ | — | $ | 272,428 | $ | — | |||||||||||||
Tradenames | 79,000 | — | 79,000 | — | |||||||||||||||||
Total not subject to amortization | 351,592 | — | 351,428 | — | |||||||||||||||||
Subject to amortization: | |||||||||||||||||||||
Trademarks | 7 years | 8,500 | (5,681 | ) | 8,500 | (4,471 | ) | ||||||||||||||
Customer relationships | 9 years | 1,700 | (883 | ) | 1,700 | (694 | ) | ||||||||||||||
Non-compete agreements | 2 years | 500 | (500 | ) | 500 | (500 | ) | ||||||||||||||
Total subject to amortization | 10,700 | (7,064 | ) | 10,700 | (5,665 | ) | |||||||||||||||
Total goodwill and intangibles | $ | 362,292 | $ | (7,064 | ) | $ | 362,128 | $ | (5,665 | ) | |||||||||||
Estimates of Amortization Expense Relating to Intangible Assets Subject to Amortization | Estimated amortization expense relating to intangible assets subject to amortization for each of the five succeeding years and beyond is as follows: | ||||||||||||||||||||
AMORTIZATION | |||||||||||||||||||||
EXPENSE | |||||||||||||||||||||
2015 | $ | 1,399 | |||||||||||||||||||
2016 | 1,399 | ||||||||||||||||||||
2017 | 588 | ||||||||||||||||||||
2018 | 188 | ||||||||||||||||||||
2019 | 62 | ||||||||||||||||||||
Thereafter | — | ||||||||||||||||||||
Total future amortization expense | $ | 3,636 | |||||||||||||||||||
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 12 Months Ended | ||||||||
Feb. 01, 2015 | |||||||||
Text Block [Abstract] | |||||||||
Accrued Liabilities | Accrued liabilities consist of the following as of: | ||||||||
FEBRUARY 1, | FEBRUARY 2, | ||||||||
2015 | 2014 | ||||||||
Compensation and benefits | $ | 22,735 | $ | 14,459 | |||||
Deferred amusement revenue | 17,037 | 14,047 | |||||||
Rent | 10,874 | 9,040 | |||||||
Amusement redemption liability | 10,815 | 9,707 | |||||||
Deferred gift card revenue | 6,162 | 4,709 | |||||||
Sales and use taxes | 5,244 | 4,408 | |||||||
Property taxes | 3,827 | 3,159 | |||||||
Current portion of long term insurance reserves | 3,361 | 3,358 | |||||||
Customer deposits | 2,086 | 2,241 | |||||||
Interest | 185 | 4,214 | |||||||
Other | 6,872 | 5,037 | |||||||
Total accrued liabilities | $ | 89,198 | $ | 74,379 | |||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | ||||||||||||
Feb. 01, 2015 | |||||||||||||
Debt Disclosure [Abstract] | |||||||||||||
Long-Term Debt | Long-term debt consisted of the following as of: | ||||||||||||
FEBRUARY 1, | FEBRUARY 2, | ||||||||||||
2015 | 2014 | ||||||||||||
New senior secured credit facility—term | $ | 430,000 | $ | — | |||||||||
Repaid Debt: | |||||||||||||
Senior secured credit facility—term | — | 144,375 | |||||||||||
Senior notes | — | 200,000 | |||||||||||
Senior discount notes | — | 180,790 | |||||||||||
Total debt outstanding | 430,000 | 525,165 | |||||||||||
Less: | |||||||||||||
Unamortized debt discount—new senior secured credit facility | (980 | ) | — | ||||||||||
Unamortized debt discount—senior secured credit facility | — | (550 | ) | ||||||||||
Unamortized debt discount—senior discount notes | — | (38,938 | ) | ||||||||||
Current installments | — | (1,500 | ) | ||||||||||
Long-term debt, less current installments, net of unamortized discount | $ | 429,020 | $ | 484,177 | |||||||||
Proceed from New Senior Secured Credit Facility | Proceeds from the new senior secured credit facility were used as follows: | ||||||||||||
Repayment of Dave & Buster’s, Inc. senior credit facility | |||||||||||||
Outstanding principal | $ | 143,509 | |||||||||||
Accrued and unpaid interest | 460 | ||||||||||||
Legal expenses | 41 | ||||||||||||
144,010 | |||||||||||||
Repayment of Dave & Buster’s, Inc. 11% senior notes | |||||||||||||
Outstanding principal | 200,000 | ||||||||||||
Accrued and unpaid interest | 3,239 | ||||||||||||
Premium for early redemption | 11,000 | ||||||||||||
Additional interest paid to trustee | 1,833 | ||||||||||||
216,072 | |||||||||||||
Repayment of Dave & Buster’s Parent, Inc. (now known as D&B Entertainment) 12.25% senior discount notes | |||||||||||||
Issue price outstanding, net of original issue discount | 100,000 | ||||||||||||
Previously accreted interest expense | 41,852 | ||||||||||||
Current year interest accretion included in interest expense, net | 8,341 | ||||||||||||
Premium for early redemption | 4,646 | ||||||||||||
Additional interest paid to trustee | 1,478 | ||||||||||||
156,317 | |||||||||||||
Total payments to retire prior debt | 516,399 | ||||||||||||
Payments of costs associated with new debt issuance | 8,212 | ||||||||||||
Administrative fee paid to administrative agent | 31 | ||||||||||||
8,243 | |||||||||||||
Retained cash | 4,033 | ||||||||||||
Total proceeds | $ | 528,675 | |||||||||||
Loss on Debt Retirement | The loss on debt retirement is comprised of the following: | ||||||||||||
FISCAL YEAR | |||||||||||||
ENDED | |||||||||||||
FEBRUARY 1, | |||||||||||||
2015 | |||||||||||||
Non-cash charges | |||||||||||||
Write-off of unamortized debt issuance cost—early prepayment | $ | 1,347 | |||||||||||
Write-off of unamortized debt discount—early prepayment | 239 | ||||||||||||
Write-off of unamortized debt issuance cost—refinancing | 6,559 | ||||||||||||
Write-off of unamortized debt discount—refinancing | 435 | ||||||||||||
8,580 | |||||||||||||
Direct costs associated with debt retirement | |||||||||||||
Premium for early redemption: | |||||||||||||
D&B Inc senior notes | 11,000 | ||||||||||||
D&B Entertainment senior discount notes | 4,646 | ||||||||||||
Additional interest paid to trustee: | |||||||||||||
D&B Inc senior notes | 1,833 | ||||||||||||
D&B Entertainment senior discount notes | 1,478 | ||||||||||||
Legal expenses | 41 | ||||||||||||
18,998 | |||||||||||||
Loss on debt retirement | $ | 27,578 | |||||||||||
Recorded Interest Expense, Net | The following tables set forth our recorded interest expense, net for the periods indicated: | ||||||||||||
FISCAL YEAR | FISCAL YEAR | FISCAL YEAR | |||||||||||
ENDED | ENDED | ENDED | |||||||||||
FEBRUARY 1, | FEBRUARY 2, | FEBRUARY 3, | |||||||||||
2015 | 2014 | 2013 | |||||||||||
D&B Inc, old debt structure interest expense | $ | 13,562 | $ | 29,675 | $ | 31,393 | |||||||
D&B Inc, new debt structure interest expense | 11,455 | — | — | ||||||||||
D&B Entertainment interest accretion | 8,341 | 15,881 | 14,141 | ||||||||||
Amortization of issuance cost and discount | 2,295 | 3,189 | 2,946 | ||||||||||
Interest income | (329 | ) | (334 | ) | (336 | ) | |||||||
Less capitalized interest | (535 | ) | (602 | ) | (510 | ) | |||||||
Total interest expense, net | $ | 34,789 | $ | 47,809 | $ | 47,634 | |||||||
Future Debt Payment Obligation | Future debt obligations—The following table sets forth our future debt principal payment obligations as of: | ||||||||||||
FEBRUARY 1, | |||||||||||||
2015 | |||||||||||||
1 year or less | $ | — | |||||||||||
2 years | — | ||||||||||||
3 years | — | ||||||||||||
4 years | — | ||||||||||||
5 years | — | ||||||||||||
Thereafter | 430,000 | ||||||||||||
Total future payments | $ | 430,000 | |||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Feb. 01, 2015 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Provision (Benefit) for Income Taxes | The following table sets forth our provision (benefit) for income taxes for the periods indicated: | ||||||||||||
FISCAL YEAR ENDED | FISCAL YEAR ENDED | FISCAL YEAR ENDED | |||||||||||
FEBRUARY 1, 2015 | FEBRUARY 2, 2014 | FEBRUARY 3, 2013 | |||||||||||
Current expense | |||||||||||||
Federal | $ | 739 | $ | 615 | $ | 536 | |||||||
Foreign | 117 | 97 | 361 | ||||||||||
State and local | 4,617 | 1,150 | (51 | ) | |||||||||
Deferred benefit | (1,615 | ) | (801 | ) | (13,548 | ) | |||||||
Total provision (benefit) for income taxes | $ | 3,858 | $ | 1,061 | $ | (12,702 | ) | ||||||
Components of Deferred Tax Liabilities and Assets | The following tables set forth the significant components of our deferred tax liabilities and assets as of: | ||||||||||||
FEBRUARY 1, | FEBRUARY 2, | ||||||||||||
2015 | 2014 | ||||||||||||
Deferred tax assets: | |||||||||||||
Deferred revenue and redemption ticket liability | $ | 11,610 | $ | 9,540 | |||||||||
Tax credit carryovers | 8,862 | 10,297 | |||||||||||
Leasing transactions | 8,036 | 5,585 | |||||||||||
Accrued liabilities | 4,305 | 1,985 | |||||||||||
Workers’ compensation and general liability insurance | 3,863 | 3,429 | |||||||||||
Deferred compensation | 2,553 | 1,610 | |||||||||||
State net operating loss carryovers | 2,133 | 3,503 | |||||||||||
Other | 1,958 | 1,567 | |||||||||||
Smallware supplies | 738 | 714 | |||||||||||
Indirect benefit of unrecognized tax benefits | 272 | 225 | |||||||||||
Total deferred tax assets | 44,330 | 38,455 | |||||||||||
Valuation allowance for deferred tax assets—US | (931 | ) | (1,388 | ) | |||||||||
Total deferred tax assets, net | 43,399 | 37,067 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Trademark/tradename | 32,268 | 31,578 | |||||||||||
Property and equipment | 7,997 | 4,109 | |||||||||||
Prepaid expenses | 371 | 232 | |||||||||||
Total deferred tax liabilities | 40,636 | 35,919 | |||||||||||
Net deferred tax assets | $ | 2,763 | $ | 1,148 | |||||||||
Net Deferred Tax Liability | The net deferred tax assets are presented in the Consolidated Balance Sheets as follows: | ||||||||||||
FEBRUARY 1, | FEBRUARY 2, | ||||||||||||
2015 | 2014 | ||||||||||||
Deferred income taxes—current | $ | 30,962 | $ | 24,802 | |||||||||
Deferred tax assets | 30,962 | 24,802 | |||||||||||
Deferred income taxes—current | 371 | — | |||||||||||
Deferred income taxes—non current | 27,828 | 23,654 | |||||||||||
Deferred tax liabilities | 28,199 | 23,654 | |||||||||||
Net deferred tax assets | $ | 2,763 | $ | 1,148 | |||||||||
Change in Unrecognized Tax Benefits | The following table sets forth the change in unrecognized tax benefits excluding interest, penalties and related income tax benefits for the periods indicated: | ||||||||||||
FISCAL YEAR | FISCAL YEAR | FISCAL YEAR | |||||||||||
ENDED | ENDED | ENDED | |||||||||||
FEBRUARY 1, | FEBRUARY 2, | FEBRUARY 3, | |||||||||||
2015 | 2014 | 2013 | |||||||||||
Balance at beginning of year | $ | 476 | $ | 471 | $ | 940 | |||||||
Additions for tax positions of prior years | 90 | 176 | 108 | ||||||||||
Reductions for tax positions of prior years | — | (32 | ) | (1 | ) | ||||||||
Settlements | — | — | (576 | ) | |||||||||
Lapse of statute of limitations | — | (139 | ) | — | |||||||||
Balance at end of year | $ | 566 | $ | 476 | $ | 471 | |||||||
Reconciliation of Federal Statutory Rate to Effective Income Tax Rate | The following table sets forth the reconciliation of the federal statutory rate to the effective income tax rate for the periods indicated: | ||||||||||||
FISCAL YEAR | FISCAL YEAR | FISCAL YEAR | |||||||||||
ENDED | ENDED | ENDED | |||||||||||
FEBRUARY 1, | FEBRUARY 2, | FEBRUARY 3, | |||||||||||
2015 | 2014 | 2013 | |||||||||||
Federal corporate statutory rate | 35 | % | 35 | % | 35 | % | |||||||
State and local income taxes, net of federal income tax benefit | 20.7 | % | 30.8 | % | 1.2 | % | |||||||
Foreign taxes | — | % | 1.8 | % | 0.9 | % | |||||||
Nondeductible expenses | 11.3 | % | 24.9 | % | (23.5 | )% | |||||||
Tax credits | (31.4 | )% | (74.8 | )% | 65.8 | % | |||||||
Valuation allowance | (4.0 | )% | 7.1 | % | 257.4 | % | |||||||
Change in reserve | 1.2 | % | 0.2 | % | 32.9 | % | |||||||
Other | 0.9 | % | 1.7 | % | (45.7 | )% | |||||||
Effective tax rate | 33.7 | % | 26.7 | % | 324 | % | |||||||
Leases_Tables
Leases (Tables) | 12 Months Ended | ||||||||||||
Feb. 01, 2015 | |||||||||||||
Future Minimum Lease Payments | At February 1, 2015 future minimum lease payments, including any periods covered by renewal options we are reasonably assured of exercising (including the sale/leaseback transactions described below), are: | ||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | THEREAFTER | TOTAL | |||||||
$63,282 | $62,142 | $60,937 | $57,239 | $51,790 | $366,670 | $662,060 | |||||||
Future Minimum Principal and Interest Payments | Future minimum principal and interest payments due to us under these notes are as follows: | ||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | THEREAFTER | TOTAL | |||||||
$489 | $489 | $489 | $489 | $489 | $937 | $3,382 | |||||||
Equipment [Member] | |||||||||||||
Future Minimum Lease Payments | At February 1, 2015, we also had lease commitments on equipment as follows: | ||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | THEREAFTER | TOTAL | |||||||
$778 | $336 | $107 | $2 | $— | $— | $1,223 | |||||||
Equitybased_Compensation_Table
Equity-based Compensation (Tables) | 12 Months Ended | ||||||||||||||||
Feb. 01, 2015 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||
Transactions Related to Stock Options | Transactions during fiscal year 2014 under the 2014 Stock Incentive Plan were as follows: | ||||||||||||||||
SERVICE BASED OPTIONS | |||||||||||||||||
NUMBER | WEIGHTED | ||||||||||||||||
OF OPTIONS | AVERAGE | ||||||||||||||||
EXERCISE PRICE | |||||||||||||||||
Options outstanding at beginning of year | — | $ | — | ||||||||||||||
Granted | 444,969 | 16 | |||||||||||||||
Exercised | — | — | |||||||||||||||
Forfeited | — | — | |||||||||||||||
Options outstanding at end of year | 444,969 | $ | 16 | ||||||||||||||
Options exercisable at end of year | — | $ | — | ||||||||||||||
Transactions during fiscal year 2014 under the 2010 Stock Incentive Plan were as follows: | |||||||||||||||||
SERVICE BASED OPTIONS | PERFORMANCE BASED OPTIONS | ||||||||||||||||
NUMBER | WEIGHTED | NUMBER | WEIGHTED | ||||||||||||||
OF OPTIONS | AVERAGE | OF OPTIONS | AVERAGE | ||||||||||||||
EXERCISE PRICE | EXERCISE PRICE | ||||||||||||||||
Options outstanding at beginning of year | 1,303,236 | $ | 5.39 | 2,690,812 | $ | 4.54 | |||||||||||
Granted | — | — | — | — | |||||||||||||
Exercised | — | — | — | — | |||||||||||||
Forfeited | — | — | — | — | |||||||||||||
Options outstanding at end of year | 1,303,236 | 5.39 | 2,690,812 | 4.54 | |||||||||||||
Options exercisable at end of year | 835,802 | $ | 4.89 | 2,690,812 | $ | 4.54 | |||||||||||
Earnings_per_share_Tables
Earnings per share (Tables) | 12 Months Ended | ||||||||||||
Feb. 01, 2015 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Summary of Calculation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of EPS, basic and diluted for the periods indicated: | ||||||||||||
(in thousands, except per share data) | FISCAL YEAR | FISCAL YEAR | FISCAL YEAR | ||||||||||
ENDED | ENDED | ENDED | |||||||||||
FEBRUARY 1, 2015 | FEBRUARY 2, 2014 | FEBRUARY 3, 2013 | |||||||||||
Numerator: | |||||||||||||
Net income | $ | 7,636 | $ | 2,169 | $ | 8,782 | |||||||
Denominator: | |||||||||||||
Basic weighted average common shares outstanding | 35,314,884 | 33,187,776 | 33,186,426 | ||||||||||
Potential common shares for stock options | 1,811,164 | 842,339 | 561,109 | ||||||||||
Diluted weighted average common shares outstanding | 37,126,048 | 34,030,115 | 33,747,535 | ||||||||||
Earnings (loss) per shares: | |||||||||||||
Basic | $ | 0.22 | $ | 0.07 | $ | 0.26 | |||||||
Diluted | $ | 0.21 | $ | 0.06 | $ | 0.26 | |||||||
Quarterly_Financial_Informatio1
Quarterly Financial Information (unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Feb. 01, 2015 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Quarterly Financial Information | |||||||||||||||||
FISCAL YEAR ENDED FEBRUARY 1, 2015 | |||||||||||||||||
FIRST | SECOND | THIRD | FOURTH | ||||||||||||||
QUARTER | QUARTER | QUARTER | QUARTER | ||||||||||||||
5/4/14 | 8/3/14 | 11/2/14 | 2/1/15 | ||||||||||||||
Total revenues | $ | 194,823 | $ | 181,385 | $ | 163,474 | $ | 207,069 | |||||||||
Income (loss) before provision (benefit) for income taxes | 16,219 | (20,923 | ) | (6,814 | ) | 23,012 | |||||||||||
Net income (loss) | 11,461 | (13,878 | ) | (4,607 | ) | 14,660 | |||||||||||
Net income (loss) per share of common stock: | |||||||||||||||||
Basic | $ | 0.35 | $ | (0.42 | ) | $ | (0.13 | ) | $ | 0.37 | |||||||
Diluted | $ | 0.34 | $ | (0.42 | ) | $ | (0.13 | ) | $ | 0.34 | |||||||
Weighted average number of shares outstanding: | |||||||||||||||||
Basic | 33,204,272 | 33,204,272 | 34,881,763 | 39,969,230 | |||||||||||||
Diluted | 34,136,340 | 33,204,272 | 34,881,763 | 43,341,818 | |||||||||||||
Stores open at end of period | 68 | 69 | 70 | 73 | |||||||||||||
FISCAL YEAR ENDED FEBRUARY 2, 2014 | |||||||||||||||||
FIRST | SECOND | THIRD | FOURTH | ||||||||||||||
QUARTER | QUARTER | QUARTER | QUARTER | ||||||||||||||
5/5/13 | 8/4/13 | 11/3/13 | 2/2/14 | ||||||||||||||
Total revenues | $ | 168,155 | $ | 153,723 | $ | 142,330 | $ | 171,371 | |||||||||
Income (loss) before provision (benefit) for income taxes | 10,554 | (794 | ) | (12,910 | ) | 6,380 | |||||||||||
Net income (loss) | 7,550 | (98 | ) | (10,160 | ) | 4,877 | |||||||||||
Net income (loss) per share of common stock: | |||||||||||||||||
Basic | $ | 0.23 | $ | — | $ | (0.31 | ) | $ | 0.15 | ||||||||
Diluted | $ | 0.22 | $ | — | $ | (0.31 | ) | $ | 0.14 | ||||||||
Weighted average number of shares outstanding: | |||||||||||||||||
Basic | 33,186,273 | 33,186,273 | 33,186,273 | 33,191,811 | |||||||||||||
Diluted | 33,916,570 | 33,186,273 | 33,186,273 | 34,034,149 | |||||||||||||
Stores open at end of period | 61 | 62 | 64 | 66 | |||||||||||||
Description_of_Business_Basis_
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | |||||||||||||
In Thousands, except Share data, unless otherwise specified | Oct. 09, 2014 | Feb. 02, 2014 | Feb. 03, 2013 | Jan. 29, 2012 | Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 | Feb. 05, 2015 | Oct. 21, 2014 | Feb. 20, 2015 | Nov. 02, 2014 | Aug. 03, 2014 | 4-May-14 | Nov. 03, 2013 | Aug. 04, 2013 | 5-May-13 |
Store | Store | Store | Store | Store | Store | Store | Store | |||||||||
Segment | ||||||||||||||||
Description Of Business And Basis Of Presentation [Line Items] | ||||||||||||||||
Increase in authorized share amendment description | On October 9, 2014, we amended our certificate of incorporation to increase our authorized share count to 450,000,000 shares of stock, including 400,000,000 shares of common stock and 50,000,000 shares of preferred stock, each with a par value $0.01 per share and to split our common stock 224.9835679 for 1. | |||||||||||||||
Increased authorized shares | 450,000,000 | |||||||||||||||
Common stock, shares authorized | 400,000,000 | 400,000,000 | 400,000,000 | 400,000,000 | ||||||||||||
Common stock, par value | $0.01 | $0.01 | $0.01 | $0.01 | ||||||||||||
Stock split ratio | 224.9835679 | |||||||||||||||
Preferred stock, shares authorized | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | ||||||||||||
Preferred stock, par value | $0.01 | |||||||||||||||
Underwriters option exercised period for purchasing additional shares | 30 days | |||||||||||||||
Expiration date of Underwriters option to purchase additional shares | 21-Oct-14 | |||||||||||||||
Proceeds from IPO | $100,659 | |||||||||||||||
Number of operating segments | 1 | |||||||||||||||
Number of reportable segments | 1 | |||||||||||||||
Number of stores opened | 8 | |||||||||||||||
Number of stores opened | 66 | 73 | 66 | 70 | 69 | 68 | 64 | 62 | 61 | |||||||
Operating income | 73,861 | 51,039 | 43,714 | |||||||||||||
Reclassification of paid-in capital | 333 | 333 | 333 | |||||||||||||
Valuation allowance for deferred tax assets - US | 1,388 | 931 | 1,388 | |||||||||||||
Long lived asset impairment loss | 0 | 0 | 0 | |||||||||||||
Unrealized foreign currency translation gain (loss) | -479 | -419 | 15 | |||||||||||||
Advertising costs expensed | 29,144 | 27,475 | 28,502 | |||||||||||||
Unrecognized tax benefits | 905 | |||||||||||||||
Tax penalties and interest | 338 | |||||||||||||||
Tax benefits recognized to penalties and interest | 90 | |||||||||||||||
Tax benefits recognized to penalties and interest | 48 | |||||||||||||||
Unrecognized tax benefits if recognized, would impact the effective tax rate | 439 | |||||||||||||||
Oak Hill Capital Management LLC [Member] | ||||||||||||||||
Description Of Business And Basis Of Presentation [Line Items] | ||||||||||||||||
Percentage of term loan held by Oak Hill Advisors, L.P. | 8.30% | |||||||||||||||
Term loan held by Oak Hill Advisors, L.P. | 35,626 | |||||||||||||||
Percentage of outstanding common stock owned | 79.20% | |||||||||||||||
Reimbursement expenses | 41 | 115 | 76 | |||||||||||||
Oak Hill Capital Management LLC [Member] | Director [Member] | ||||||||||||||||
Description Of Business And Basis Of Presentation [Line Items] | ||||||||||||||||
Board members compensation | 155 | 235 | 235 | |||||||||||||
Board Members [Member] | ||||||||||||||||
Description Of Business And Basis Of Presentation [Line Items] | ||||||||||||||||
Percentage of outstanding common stock owned | 3.70% | |||||||||||||||
Public [Member] | ||||||||||||||||
Description Of Business And Basis Of Presentation [Line Items] | ||||||||||||||||
Percentage of outstanding common stock owned | 17.10% | |||||||||||||||
Long Island Market [Member] | ||||||||||||||||
Description Of Business And Basis Of Presentation [Line Items] | ||||||||||||||||
Number of stores opened | 2 | |||||||||||||||
United States and Canada [Member] | ||||||||||||||||
Description Of Business And Basis Of Presentation [Line Items] | ||||||||||||||||
Number of stores opened | 73 | |||||||||||||||
Maryland [Member] | ||||||||||||||||
Description Of Business And Basis Of Presentation [Line Items] | ||||||||||||||||
Revenue | 5,416 | 12,036 | ||||||||||||||
Operating income | 823 | 2,896 | ||||||||||||||
Subsequent Event [Member] | ||||||||||||||||
Description Of Business And Basis Of Presentation [Line Items] | ||||||||||||||||
Expiration date of Underwriters option to purchase additional shares | 20-Feb-15 | |||||||||||||||
IPO [Member] | ||||||||||||||||
Description Of Business And Basis Of Presentation [Line Items] | ||||||||||||||||
Common stock issued | 5,882,353 | |||||||||||||||
Common stock price per share | $16 | |||||||||||||||
Proceeds from IPO | 98,573 | |||||||||||||||
Under Writer Exercise Option [Member] | ||||||||||||||||
Description Of Business And Basis Of Presentation [Line Items] | ||||||||||||||||
Common stock issued | 882,352 | |||||||||||||||
Common stock exercised | 882,352 | |||||||||||||||
Follow-on Offering [Member] | Oak Hill Capital Management LLC [Member] | ||||||||||||||||
Description Of Business And Basis Of Presentation [Line Items] | ||||||||||||||||
Percentage of outstanding common stock owned | 62.10% | |||||||||||||||
Follow-on Offering [Member] | Board Members [Member] | ||||||||||||||||
Description Of Business And Basis Of Presentation [Line Items] | ||||||||||||||||
Percentage of outstanding common stock owned | 2.20% | |||||||||||||||
Follow-on Offering [Member] | Public [Member] | ||||||||||||||||
Description Of Business And Basis Of Presentation [Line Items] | ||||||||||||||||
Percentage of outstanding common stock owned | 35.70% | |||||||||||||||
Follow-on Offering [Member] | Subsequent Event [Member] | ||||||||||||||||
Description Of Business And Basis Of Presentation [Line Items] | ||||||||||||||||
Common stock issued | 6,600,000 | |||||||||||||||
Common stock price per share | 29.5 | |||||||||||||||
Common stock exercised | 300,151 | 990,000 | ||||||||||||||
Weighted average exercise price of exercised options | 4.49 | |||||||||||||||
Proceed from exercise of options | 1,346 | |||||||||||||||
Over-Allotment Option [Member] | Subsequent Event [Member] | ||||||||||||||||
Description Of Business And Basis Of Presentation [Line Items] | ||||||||||||||||
Common stock issued | 990,000 | |||||||||||||||
Construction [Member] | ||||||||||||||||
Description Of Business And Basis Of Presentation [Line Items] | ||||||||||||||||
Construction allowance receivables | $5,677 | $6,839 | $5,677 |
Description_of_Business_and_Su3
Description of Business and Summary of Significant Accounting Policies - Estimated Useful Lives of Assets (Detail) | 12 Months Ended |
Feb. 01, 2015 | |
Buildings and Building Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Depreciable Lives (In Years), description | Shorter of 40 or expected ground lease term |
Buildings and Building Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Depreciable Lives (In Years) | 40 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Depreciable Lives (In Years), description | Shorter of 20 or expected lease term |
Leasehold Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Depreciable Lives (In Years) | 20 years |
Furniture, Fixtures and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Depreciable Lives (In Years) | 10 years |
Furniture, Fixtures and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Depreciable Lives (In Years) | 3 years |
Games [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Depreciable Lives (In Years) | 20 years |
Games [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Depreciable Lives (In Years) | 5 years |
Description_of_Business_and_Su4
Description of Business and Summary of Significant Accounting Policies - Deferred Financing Costs Relating to Other Assets (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Balance at beginning of period | $7,954 | $10,076 | $12,735 |
New debt issuance payments | 8,212 | 818 | |
Write off of unamortized debt issuance cost - refinancing | -6,559 | ||
Additional deferred financing costs | 726 | ||
Write off of unamortized debt issuance cost - early prepayment | -1,347 | ||
Amortization during period | -2,074 | -2,848 | -2,659 |
Balance at end of period | $6,186 | $7,954 | $10,076 |
Description_of_Business_and_Su5
Description of Business and Summary of Significant Accounting Policies - Significant Assumptions Used in Determining Underlying Fair Value of Weighted-Average Options Granted (Detail) (USD $) | 12 Months Ended | ||
Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average calculated value | $8.45 | ||
2014 Stock Incentive Plan [Member] | Service based option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility | 51.30% | ||
Risk free interest rate | 1.96% | ||
Expected dividend yield | 0.00% | ||
Expected term - in years | 6 years 9 months 18 days | ||
Weighted average calculated value | $8.45 | ||
2010 Stock Incentive Plan [Member] | Service based option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility | 48.20% | 44.70% | |
Risk free interest rate | 1.15% | 0.78% | |
Expected dividend yield | 0.00% | 0.00% | |
Expected term - in years | 6 years 6 months | 4 years 10 months 24 days | |
Weighted average calculated value | $4.72 | $2.43 | |
2010 Stock Incentive Plan [Member] | Performance Based Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility | 47.00% | 50.00% | |
Risk free interest rate | 1.06% | 0.33% | |
Expected dividend yield | 0.00% | 0.00% | |
Expected term - in years | 6 years 6 months | 3 years | |
Weighted average calculated value | $4.16 | $2.25 |
Inventories_Inventories_Detail
Inventories - Inventories (Detail) (USD $) | Feb. 01, 2015 | Feb. 02, 2014 |
In Thousands, unless otherwise specified | ||
Inventory [Line Items] | ||
Inventory | $18,457 | $15,354 |
Operating Store - Food and Beverage [Member] | ||
Inventory [Line Items] | ||
Inventory | 4,494 | 3,961 |
Operating Store - Amusement [Member] | ||
Inventory [Line Items] | ||
Inventory | 6,497 | 6,214 |
Corporate Supplies, Warehouse and Other [Member] | ||
Inventory [Line Items] | ||
Inventory | $7,466 | $5,179 |
Property_and_Equipment_Propert
Property and Equipment - Property and Equipment (Detail) (USD $) | Feb. 01, 2015 | Feb. 02, 2014 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $688,208 | $583,432 |
Accumulated depreciation | -252,160 | -195,339 |
Property and equipment, net | 436,048 | 388,093 |
Buildings and Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 14,305 | 14,176 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 379,468 | 330,641 |
Furniture, Fixtures and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 150,280 | 117,194 |
Games [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 111,166 | 88,310 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $32,989 | $33,111 |
Property_and_Equipment_Capital
Property and Equipment Capitalized and Depreciated - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 |
Property, Plant and Equipment [Abstract] | |||
Capitalized interest cost | $535 | $602 | $510 |
Depreciation expense | $69,466 | $64,933 | $61,957 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets - Changes in Carrying Amount of Goodwill (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Feb. 01, 2015 | Feb. 02, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Beginning Balance | $272,428 | $272,278 |
Foreign exchange differences | 164 | 150 |
Ending Balance | $272,592 | $272,428 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets - Goodwill and Intangible Assets (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 |
Goodwill And Intangible Assets [Line Items] | |||
Useful Lives | 2 years 9 months 18 days | ||
Goodwill | $272,592 | $272,428 | $272,278 |
Tradenames | 79,000 | 79,000 | |
Total goodwill and intangibles | 362,292 | 362,128 | |
Accumulated Amortization | -7,064 | -5,665 | |
Indefinite-Lived Intangible Assets [Member] | |||
Goodwill And Intangible Assets [Line Items] | |||
Total goodwill and intangibles | 351,592 | 351,428 | |
Trademarks [Member] | |||
Goodwill And Intangible Assets [Line Items] | |||
Useful Lives | 7 years | ||
Gross Carrying Amount | 8,500 | 8,500 | |
Accumulated Amortization | -5,681 | -4,471 | |
Customer Relationships [Member] | |||
Goodwill And Intangible Assets [Line Items] | |||
Useful Lives | 9 years | ||
Gross Carrying Amount | 1,700 | 1,700 | |
Accumulated Amortization | -883 | -694 | |
Non-Compete Agreements [Member] | |||
Goodwill And Intangible Assets [Line Items] | |||
Useful Lives | 2 years | ||
Gross Carrying Amount | 500 | 500 | |
Accumulated Amortization | -500 | -500 | |
Finite Lived Intangible Assets Subject to Amortization [Member] | |||
Goodwill And Intangible Assets [Line Items] | |||
Gross Carrying Amount | 10,700 | 10,700 | |
Accumulated Amortization | ($7,064) | ($5,665) |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Remaining weighted-average amortization period for intangibles subject to amortization | 2 years 9 months 18 days | ||
Amortization expense | $1,402 | $1,404 | $1,500 |
Goodwill_and_Other_Intangible_5
Goodwill and Other Intangible Assets - Estimated Amortization Expense Relating to Intangible Assets Subject to Amortization (Detail) (USD $) | Feb. 01, 2015 |
In Thousands, unless otherwise specified | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2015 | $1,399 |
2016 | 1,399 |
2017 | 588 |
2018 | 188 |
2019 | 62 |
Thereafter | 0 |
Total future amortization expense | $3,636 |
Accrued_Liabilities_Accrued_Li
Accrued Liabilities - Accrued Liabilities (Detail) (USD $) | Feb. 01, 2015 | Feb. 02, 2014 |
In Thousands, unless otherwise specified | ||
Accrued Liabilities, Current [Abstract] | ||
Compensation and benefits | $22,735 | $14,459 |
Deferred amusement revenue | 17,037 | 14,047 |
Rent | 10,874 | 9,040 |
Amusement redemption liability | 10,815 | 9,707 |
Deferred gift card revenue | 6,162 | 4,709 |
Sales and use taxes | 5,244 | 4,408 |
Property taxes | 3,827 | 3,159 |
Current portion of long term insurance reserves | 3,361 | 3,358 |
Customer deposits | 2,086 | 2,241 |
Interest | 185 | 4,214 |
Other | 6,872 | 5,037 |
Total accrued liabilities | $89,198 | $74,379 |
LongTerm_Debt_LongTerm_Debt_De
Long-Term Debt - Long-Term Debt (Detail) (USD $) | Feb. 01, 2015 | Feb. 02, 2014 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Debt outstanding | $430,000 | $525,165 |
Current installments | -1,500 | |
Long-term debt, less current installments, net of unamortized discount | 429,020 | 484,177 |
New Senior Secured Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt outstanding | 430,000 | |
Unamortized debt discount | -980 | |
Senior Secured Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt outstanding | 144,375 | |
Unamortized debt discount | -550 | |
11% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt outstanding | 200,000 | |
12.25% Senior Discount Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt outstanding | 180,790 | |
Unamortized debt discount | ($38,938) |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | ||
Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 | Jul. 25, 2014 | |
Line of Credit Facility [Line Items] | ||||
Proceeds from term loan facility | $528,675,000 | |||
Repayment of principal amount of term loan facility | 144,375,000 | 1,500,000 | 1,875,000 | |
Credit facility, current borrowing | 430,000,000 | 525,165,000 | ||
Credit facility, current borrowing, net of discount | 430,000,000 | |||
New Senior Secured Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt issuance discount cost | 980,000 | |||
Credit facility, current borrowing | 430,000,000 | |||
Credit facility, current borrowing, net of discount | 429,020,000 | |||
Letter of credit facility outstanding | 5,822,000 | |||
Percentage of excess outstanding debt to excess of revolving commitments | 30.00% | |||
Debt Instrument, covenant compliance | Our senior secured credit facility contains restrictive covenants that, among other things, limit our ability and the ability of our subsidiaries to: incur additional indebtedness, make loans or advances to subsidiaries and other entities, make initial capital expenditures in relation to new stores, declare dividends, acquire other businesses or sell assets. In addition, under our senior secured credit facility, we are required to meet a maximum total leverage ratio if outstanding revolving loans and letters of credit (other than letters of credit that have been backstopped or cash collateralized) are in excess of 30% of the outstanding revolving commitments. As of February 1, 2015, we were not required to maintain any of the financial ratios under the senior secured credit facility and we were in compliance with the other restrictive covenants. | |||
New Senior Secured Credit Facility [Member] | Term Loan Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
New senior secured credit facility | 530,000,000 | |||
Maturity Date | 25-Jul-20 | |||
Interest rate on the term loan facility | 4.25% | |||
Proceeds from term loan facility | 528,675,000 | |||
Debt issuance discount cost | 1,325,000 | |||
Secured term loan maturity period | 6 years | |||
Repayment of principal amount of term loan facility | 100,000,000 | |||
Loss on extinguishment charge | 1,586,000 | |||
New Senior Secured Credit Facility [Member] | Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
New senior secured credit facility | 50,000,000 | |||
Maturity Date | 25-Jul-19 | |||
Credit facility outstanding | 0 | |||
New Senior Secured Credit Facility [Member] | Letter of Credit Sub-Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
New senior secured credit facility | 20,000,000 | |||
New Senior Secured Credit Facility [Member] | Swingline Sub-Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
New senior secured credit facility | $5,000,000 | |||
New Senior Secured Credit Facility [Member] | Minimum [Member] | Term Loan Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument interest rate | 3.25% | |||
New Senior Secured Credit Facility [Member] | Minimum [Member] | Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument interest rate | 3.00% | |||
New Senior Secured Credit Facility [Member] | Maximum [Member] | Term Loan Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument interest rate | 3.50% | |||
New Senior Secured Credit Facility [Member] | Maximum [Member] | Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument interest rate | 3.50% |
Long_Term_Debt_Proceed_from_Ne
Long Term Debt - Proceed from New Senior Secured Credit Facility (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 |
Debt Instrument [Line Items] | |||
Outstanding principal, senior notes/ senior discount notes | $200,000 | ||
Outstanding principal | 144,375 | 1,500 | 1,875 |
Legal expenses | 41 | ||
Total payments to retire prior debt | 100,000 | ||
Total payments to retire prior debt | 516,399 | ||
Payments of costs associated with new debt issuance | 8,212 | 818 | |
Administrative fee paid to administrative agent | 31 | ||
Payments of financing costs, total | 8,243 | ||
Retained cash | 4,033 | ||
Total proceeds | 528,675 | ||
Senior Secured Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding principal | 143,509 | ||
Accrued and unpaid interest | 460 | ||
Legal expenses | 41 | ||
Total payments to retire prior debt | 144,010 | ||
11% Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding principal, senior notes/ senior discount notes | 200,000 | ||
Accrued and unpaid interest | 3,239 | ||
Premium for early redemption | 11,000 | ||
Additional interest paid to trustee | 1,833 | ||
Total payments to retire prior debt | 216,072 | ||
12.25% Senior Discount Notes [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding principal, senior notes/ senior discount notes | 100,000 | ||
Previously accreted interest expense | 41,852 | ||
Current year interest accretion included in interest expense, net | 8,341 | ||
Premium for early redemption | 4,646 | ||
Additional interest paid to trustee | 1,478 | ||
Total payments to retire prior debt | $156,317 |
Long_Term_Debt_Loss_on_Debt_Re
Long Term Debt - Loss on Debt Retirement (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Nov. 02, 2014 | Aug. 03, 2014 | Feb. 01, 2015 |
Debt Disclosure [Line Items] | |||
Write-off of unamortized debt issuance cost - early prepayment | $1,347 | ||
Write-off of unamortized debt discount - early prepayment | 239 | ||
Write-off of unamortized debt issuance cost - refinancing | 6,559 | ||
Write-off of unamortized debt discount - refinancing | 435 | ||
Non-cash charges, Total | 8,580 | ||
Legal expenses | 41 | ||
Direct costs associated with debt retirement, Total | 18,998 | ||
Loss on debt retirement | 1,592 | 25,986 | 27,578 |
11% Senior Notes [Member] | |||
Debt Disclosure [Line Items] | |||
Premium for early redemption | 11,000 | ||
Additional interest paid to trustee | 1,833 | ||
12.25% Senior Discount Notes [Member] | |||
Debt Disclosure [Line Items] | |||
Premium for early redemption | 4,646 | ||
Additional interest paid to trustee | $1,478 |
Long_Term_Debt_Recorded_Intere
Long Term Debt - Recorded Interest Expense, Net (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 |
Debt Disclosure [Line Items] | |||
D&B Entertainment interest accretion | $8,341 | $15,881 | $14,141 |
Amortization of issuance cost and discount | 2,295 | 3,189 | 2,946 |
Interest income | -329 | -334 | -336 |
Less capitalized interest | -535 | -602 | -510 |
Total interest expense, net | 34,789 | 47,809 | 47,634 |
D & B Inc. Old Debt Structure [Member] | |||
Debt Disclosure [Line Items] | |||
D&B Inc, debt structure interest expense | 13,562 | 29,675 | 31,393 |
D & B Inc. New Debt Structure [Member] | |||
Debt Disclosure [Line Items] | |||
D&B Inc, debt structure interest expense | $11,455 |
Long_Term_Debt_Future_Debt_Pay
Long Term Debt - Future Debt Payment Obligation (Detail) (USD $) | Feb. 01, 2015 |
In Thousands, unless otherwise specified | |
Debt Disclosure [Abstract] | |
1 year or less | $0 |
2 years | 0 |
3 years | 0 |
4 years | 0 |
5 years | 0 |
Thereafter | 430,000 |
Total future payments | $430,000 |
Income_Taxes_Provision_Benefit
Income Taxes - Provision (Benefit) for Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 |
Current expense | |||
Federal | $739 | $615 | $536 |
Foreign | 117 | 97 | 361 |
State and local | 4,617 | 1,150 | -51 |
Deferred benefit | -1,615 | -801 | -13,548 |
Total provision (benefit) for income taxes | $3,858 | $1,061 | ($12,702) |
Income_Taxes_Significant_Compo
Income Taxes - Significant Components of Deferred Tax Liabilities and Assets (Detail) (USD $) | Feb. 01, 2015 | Feb. 02, 2014 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Deferred revenue and redemption ticket liability | $11,610 | $9,540 |
Tax credit carryovers | 8,862 | 10,297 |
Leasing transactions | 8,036 | 5,585 |
Accrued liabilities | 4,305 | 1,985 |
Workers' compensation and general liability insurance | 3,863 | 3,429 |
Deferred compensation | 2,553 | 1,610 |
State net operating loss carryovers | 2,133 | 3,503 |
Other | 1,958 | 1,567 |
Smallware supplies | 738 | 714 |
Indirect benefit of unrecognized tax benefits | 272 | 225 |
Total deferred tax assets | 44,330 | 38,455 |
Valuation allowance for deferred tax assets-US | -931 | -1,388 |
Total deferred tax assets, net | 43,399 | 37,067 |
Deferred tax liabilities: | ||
Trademark/tradename | 32,268 | 31,578 |
Property and equipment | 7,997 | 4,109 |
Prepaid expenses | 371 | 232 |
Total deferred tax liabilities | 40,636 | 35,919 |
Net deferred tax assets | $2,763 | $1,148 |
Income_Taxes_Net_Deferred_Tax_
Income Taxes - Net Deferred Tax Liability (Detail) (USD $) | Feb. 01, 2015 | Feb. 02, 2014 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ||
Deferred income taxes-current | $30,962 | $24,802 |
Total deferred tax assets | 30,962 | 24,802 |
Deferred income taxes-current | 371 | |
Deferred income taxes - non current | 27,828 | 23,654 |
Total deferred tax liabilities | 28,199 | 23,654 |
Net deferred tax assets | $2,763 | $1,148 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 | |
Income Taxes [Line Items] | |||
Valuation allowance against deferred tax assets - US | $931,000 | $1,388,000 | |
Change in valuation allowance | 457,000 | ||
Federal tax credit carryforwards | 8,862,000 | 10,297,000 | |
Number of years carryforward on general business credits | 20 years | ||
Carryforward period, AMT credits | Indefinitely | ||
Beginning year for state net operating loss carry forward expiry | 2024 | ||
State and local tax expense | 4,617,000 | 1,150,000 | -51,000 |
Unrecognized tax benefits will be settled through federal and state audits or will be recognized as a result of the expiration of statute of limitations | 14,000 | ||
Unrecognized tax benefits, if recognized, would affect the effective tax rate | 439,000 | ||
Accrued interest on unrecognized tax benefits | 338,000 | 291,000 | |
Federal [Member] | |||
Income Taxes [Line Items] | |||
Federal tax credit carryforwards | 8,814,000 | ||
General business credits | 8,751,000 | ||
Alternative minimum tax "AMT" credit carryforwards | 63,000 | ||
Net operating loss carryforwards | 0 | ||
State and Local Jurisdiction [Member] | |||
Income Taxes [Line Items] | |||
Valuation allowance against deferred tax assets - US | 735,000 | ||
Net operating loss carryforwards | 21,904,000 | ||
Dallas Texas [Member] | |||
Income Taxes [Line Items] | |||
State and local tax expense | $284,000 | $246,000 | $269,000 |
Income_Taxes_Change_in_Unrecog
Income Taxes - Change in Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of year | $476 | $471 | $940 |
Additions for tax positions of prior years | 90 | 176 | 108 |
Reductions for tax positions of prior years | -32 | -1 | |
Settlements | -576 | ||
Lapse of statute of limitations | -139 | ||
Balance at end of year | $566 | $476 | $471 |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Federal Statutory Rate to Effective Income Tax Rate (Detail) | 12 Months Ended | ||
Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 | |
Income Tax Disclosure [Abstract] | |||
Federal corporate statutory rate | 35.00% | 35.00% | 35.00% |
State and local income taxes, net of federal income tax benefit | 20.70% | 30.80% | 1.20% |
Foreign taxes | 1.80% | 0.90% | |
Nondeductible expenses | 11.30% | 24.90% | -23.50% |
Tax credits | -31.40% | -74.80% | 65.80% |
Valuation allowance | -4.00% | 7.10% | 257.40% |
Change in reserve | 1.20% | 0.20% | 32.90% |
Other | 0.90% | 1.70% | -45.70% |
Effective tax rate | 33.70% | 26.70% | 324.00% |
Leases_Additional_Information_
Leases - Additional Information (Detail) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 | Feb. 02, 2001 |
Leases Disclosure [Line Items] | ||||
Rent expense for operating leases | $61,174 | $54,450 | $50,561 | |
Contingent rentals | 3,310 | 2,858 | 2,620 | |
Operating leases future minimum payments due | 662,060 | |||
Completed sale/leaseback cash proceed | 24,774 | |||
Notes receivable due from the lessors | 2,651 | 2,936 | 6,750 | |
Thirteen Lease Agreements [Member] | ||||
Leases Disclosure [Line Items] | ||||
Operating leases future minimum payments due | $19,603 | |||
Minimum [Member] | ||||
Leases Disclosure [Line Items] | ||||
Interest rate on notes | 7.00% | |||
Maximum [Member] | ||||
Leases Disclosure [Line Items] | ||||
Interest rate on notes | 7.50% |
Leases_Future_Minimum_Lease_Pa
Leases - Future Minimum Lease Payments (Detail) (USD $) | Feb. 01, 2015 |
In Thousands, unless otherwise specified | |
Leases [Abstract] | |
2015 | $63,282 |
2016 | 62,142 |
2017 | 60,937 |
2018 | 57,239 |
2019 | 51,790 |
Thereafter | 366,670 |
Total | $662,060 |
Leases_Lease_Commitments_on_Eq
Leases - Lease Commitments on Equipment (Detail) (USD $) | Feb. 01, 2015 |
In Thousands, unless otherwise specified | |
Operating Leased Assets [Line Items] | |
2015 | $63,282 |
2016 | 62,142 |
2017 | 60,937 |
2018 | 57,239 |
2019 | 51,790 |
Thereafter | 366,670 |
Total | 662,060 |
Operating Lease Amendment [Member] | |
Operating Leased Assets [Line Items] | |
2015 | 778 |
2016 | 336 |
2017 | 107 |
2018 | 2 |
2019 | 0 |
Thereafter | 0 |
Total | $1,223 |
Leases_Future_Minimum_Principa
Leases - Future Minimum Principal and Interest Payments Due to Us (Detail) (USD $) | Feb. 01, 2015 |
In Thousands, unless otherwise specified | |
Leases [Abstract] | |
2015 | $489 |
2016 | 489 |
2017 | 489 |
2018 | 489 |
2019 | 489 |
Thereafter | 937 |
Total | $3,382 |
Equitybased_Compensation_Addit
Equity-based Compensation - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | ||
Oct. 09, 2014 | Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 | Jan. 06, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expiration period of Incentive plan | 10 years | ||||
Stock split ratio | 224.9835679 | ||||
Share-based compensation expense related to stock option | $2,212,000 | $1,207,000 | $1,099,000 | ||
Unrecognized expense related to stock option plan | 3,661,000 | ||||
Unrecognized expense, weighted average years | 3 years 2 months 12 days | ||||
Weighted average grant date fair value per option granted | $8.45 | ||||
Average remaining term for all options outstanding | 6 years | ||||
2014 Stock Incentive Plan [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares of common stock available for issuance | 3,100,000 | ||||
2010 Stock Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expiration period of Incentive plan | 10 years | ||||
2010 Stock Incentive Plan [Member] | IPO [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock split ratio | 224.9835679 | ||||
Number of equity or other awards issued | 0 | ||||
2010 Stock Incentive Plan [Member] | Performance Based Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | 859 | ||||
Additional share based compensation expense | $221 | ||||
Weighted average grant date fair value per option granted | $4.16 | $2.25 | |||
Number of stock options exercised | 0 | ||||
Strike price of stock options exercised | $0 | ||||
Dave And Busters Entertainment Inc [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of stock options exercised | 17,999 | ||||
Strike price of stock options exercised | $4.44 |
Equitybased_Compensation_Trans
Equity-based Compensation - Transactions Related to Stock Options (Detail) (USD $) | 12 Months Ended |
Feb. 01, 2015 | |
2010 Stock Incentive Plan [Member] | Service based option [Member] | |
Number of Options | |
Options outstanding at beginning of year | 1,303,236 |
Granted | 0 |
Exercised | 0 |
Forfeited | 0 |
Options outstanding at end of year | 1,303,236 |
Options exercisable at end of year | 835,802 |
Weighted Average Exercise Price | |
Options outstanding at beginning of year | $5.39 |
Granted | $0 |
Exercised | $0 |
Forfeited | $0 |
Options outstanding at end of year | $5.39 |
Options exercisable at end of year | $4.89 |
2010 Stock Incentive Plan [Member] | Performance Based Options [Member] | |
Number of Options | |
Options outstanding at beginning of year | 2,690,812 |
Granted | 0 |
Exercised | 0 |
Forfeited | 0 |
Options outstanding at end of year | 2,690,812 |
Options exercisable at end of year | 2,690,812 |
Weighted Average Exercise Price | |
Options outstanding at beginning of year | $4.54 |
Granted | $0 |
Exercised | $0 |
Forfeited | $0 |
Options outstanding at end of year | $4.54 |
Options exercisable at end of year | $4.54 |
2014 Stock Incentive Plan [Member] | Service based option [Member] | |
Number of Options | |
Options outstanding at beginning of year | 0 |
Granted | 444,969 |
Exercised | 0 |
Forfeited | 0 |
Options outstanding at end of year | 444,969 |
Options exercisable at end of year | 0 |
Weighted Average Exercise Price | |
Options outstanding at beginning of year | $0 |
Granted | $16 |
Exercised | $0 |
Forfeited | $0 |
Options outstanding at end of year | $16 |
Options exercisable at end of year | $0 |
Employee_Benefit_Plan_Addition
Employee Benefit Plan - Additional Information (Detail) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 | Jan. 29, 2012 |
Defined Benefit Plan Disclosure [Line Items] | ||||
Guaranteed percentage of employee contribution | 25.00% | |||
Percentage of discretionary contribution | 25.00% | |||
Percentage of maximum employee eligible compensation on pretax basis that can be contributed | 50.00% | |||
Expenses related to contributions to the 401k plan | $648 | $370 | $382 | |
Maximum [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Maximum eligibility of employee compensation | 6.00% |
Earnings_Per_Share_Summary_of_
Earnings Per Share - Summary of Calculation of Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Feb. 01, 2015 | Nov. 02, 2014 | Aug. 03, 2014 | 4-May-14 | Feb. 02, 2014 | Nov. 03, 2013 | Aug. 04, 2013 | 5-May-13 | Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 |
Numerator: | |||||||||||
Net income | $7,636 | $2,169 | $8,782 | ||||||||
Denominator: | |||||||||||
Basic weighted average common shares outstanding | 39,969,230 | 34,881,763 | 33,204,272 | 33,204,272 | 33,191,811 | 33,186,273 | 33,186,273 | 33,186,273 | 35,314,884 | 33,187,776 | 33,186,426 |
Potential common shares for stock options | 1,811,164 | 842,339 | 561,109 | ||||||||
Diluted weighted average common shares outstanding | 43,341,818 | 34,881,763 | 33,204,272 | 34,136,340 | 34,034,149 | 33,186,273 | 33,186,273 | 33,916,570 | 37,126,048 | 34,030,115 | 33,747,535 |
Earnings (loss) per shares: | |||||||||||
Basic | $0.37 | ($0.13) | ($0.42) | $0.35 | $0.15 | ($0.31) | $0.23 | $0.22 | $0.07 | $0.26 | |
Diluted | $0.34 | ($0.13) | ($0.42) | $0.34 | $0.14 | ($0.31) | $0.22 | $0.21 | $0.06 | $0.26 |
Earnings_Per_share_Additional_
Earnings Per share - Additional Information (Detail) (Time Based Option Award [Member]) | Feb. 01, 2015 | Feb. 02, 2014 |
Time Based Option Award [Member] | ||
Earnings Per Share [Line Items] | ||
Stock option awards outstanding | 4,439,017 | 2,091,411 |
Quarterly_Financial_Informatio2
Quarterly Financial Information - Quarterly Financial Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Feb. 01, 2015 | Nov. 02, 2014 | Aug. 03, 2014 | 4-May-14 | Feb. 02, 2014 | Nov. 03, 2013 | Aug. 04, 2013 | 5-May-13 | Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 |
Store | Store | Store | Store | Store | Store | Store | Store | Store | Store | ||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenues | $207,069 | $163,474 | $181,385 | $194,823 | $171,371 | $142,330 | $153,723 | $168,155 | $746,751 | $635,579 | $608,067 |
Income (loss) before provision (benefit) for income taxes | 23,012 | -6,814 | -20,923 | 16,219 | 6,380 | -12,910 | -794 | 10,554 | 11,494 | 3,230 | -3,920 |
Net income (loss) | $14,660 | ($4,607) | ($13,878) | $11,461 | $4,877 | ($10,160) | ($98) | $7,550 | |||
Net income (loss) per share of common stock: | |||||||||||
Basic | $0.37 | ($0.13) | ($0.42) | $0.35 | $0.15 | ($0.31) | $0.23 | $0.22 | $0.07 | $0.26 | |
Diluted | $0.34 | ($0.13) | ($0.42) | $0.34 | $0.14 | ($0.31) | $0.22 | $0.21 | $0.06 | $0.26 | |
Denominator: | |||||||||||
Basic | 39,969,230 | 34,881,763 | 33,204,272 | 33,204,272 | 33,191,811 | 33,186,273 | 33,186,273 | 33,186,273 | 35,314,884 | 33,187,776 | 33,186,426 |
Diluted | 43,341,818 | 34,881,763 | 33,204,272 | 34,136,340 | 34,034,149 | 33,186,273 | 33,186,273 | 33,916,570 | 37,126,048 | 34,030,115 | 33,747,535 |
Stores open at end of period | 73 | 70 | 69 | 68 | 66 | 64 | 62 | 61 | 73 | 66 |
Quarterly_Financial_Informatio3
Quarterly Financial Information - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Feb. 01, 2015 | Nov. 02, 2014 | Aug. 03, 2014 | 4-May-14 | Feb. 02, 2014 | Nov. 03, 2013 | Aug. 04, 2013 | 5-May-13 | Feb. 01, 2015 | Feb. 02, 2014 | Feb. 03, 2013 |
Location | Location | ||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Number of locations opened | 8 | 5 | |||||||||
Pre-opening costs incurred | $1,559 | $3,650 | $1,848 | $2,444 | $1,865 | $2,333 | $1,970 | $872 | $9,501 | $7,040 | $3,060 |
Loss on debt retirement | $1,592 | $25,986 | $27,578 |