Dave & Buster's Entertainment (PLAY) 10-Q 6 Jun 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Apr. 30, 2017	May 31, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Apr. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Trading Symbol	PLAY
Entity Registrant Name	Dave & Buster's Entertainment, Inc.
Entity Central Index Key	1,525,769
Current Fiscal Year End Date	--02-04
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		41,478,780

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Apr. 30, 2017	Jan. 29, 2017
Current assets:
Cash and cash equivalents	$ 19,945	$ 20,083
Inventories	23,019	21,860
Prepaid expenses	17,754	15,828
Income taxes receivable	1,223	5,901
Other current assets	17,409	11,932
Total current assets	79,350	75,604
Property and equipment (net of $407,585 and $387,505 accumulated depreciation as of April 30, 2017 and January 29, 2017, respectively)	625,808	606,865
Deferred tax assets	3,224	2,446
Tradenames	79,000	79,000
Goodwill	272,669	272,629
Other assets and deferred charges	16,665	16,189
Total assets	1,076,716	1,052,733
Current liabilities:
Current installments of long-term debt	7,500	7,500
Accounts payable	56,973	55,278
Accrued liabilities	115,425	112,327
Income taxes payable	16,976	2,692
Total current liabilities	196,874	177,797
Deferred income taxes	13,858	14,497
Deferred occupancy costs	156,681	147,592
Other liabilities	18,079	16,767
Long-term debt, net	236,805	256,628
Commitments and contingencies
Stockholders' equity:
Common stock, par value $0.01; authorized: 400,000,000 shares; issued: 42,469,570 shares at April 30, 2017 and at January 29, 2017; outstanding: 41,825,651 shares at April 30, 2017 and 42,204,587 shares at January 29, 2017	425	425
Preferred stock, 50,000,000 authorized; none issued
Paid-in capital	312,293	310,230
Treasury stock, 643,919 and 264,983 shares as of April 30, 2017 and January 29, 2017, respectively	(37,519)	(14,817)
Accumulated other comprehensive loss	(1,015)	(723)
Retained earnings	180,235	144,337
Total stockholders' equity	454,419	439,452
Total liabilities and stockholders' equity	$ 1,076,716	$ 1,052,733

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Apr. 30, 2017	Jan. 29, 2017
Statement of Financial Position [Abstract]
Property and equipment, accumulated depreciation	$ 407,585	$ 387,505
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	400,000,000	400,000,000
Common stock, shares issued	42,469,570	42,469,570
Common stock, shares outstanding	41,825,651	42,204,587
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares issued	0	0
Treasury stock, shares	643,919	264,983

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2017	May 01, 2016
Statement of Comprehensive Income [Abstract]
Food and beverage revenues	$ 129,811	$ 117,124
Amusement and other revenues	174,337	144,863
Total revenues	304,148	261,987
Cost of food and beverage	32,702	29,639
Cost of amusement and other	16,283	16,512
Total cost of products	48,985	46,151
Operating payroll and benefits	65,190	56,377
Other store operating expenses	82,368	71,530
General and administrative expenses	14,978	13,040
Depreciation and amortization expense	23,928	20,810
Pre-opening costs	4,471	2,905
Total operating costs	239,920	210,813
Operating income	64,228	51,174
Interest expense, net	1,854	2,110
Income before provision for income taxes	62,374	49,064
Provision for income taxes	19,578	17,903
Net income	42,796	31,161
Unrealized foreign currency translation gain (loss)	(292)	440
Total comprehensive income	$ 42,504	$ 31,601
Net Income per share:
Basic	$ 1.02	$ 0.75
Diluted	$ 0.98	$ 0.72
Weighted average shares used in per share calculations:
Basic	42,027,551	41,659,879
Diluted	43,522,403	43,112,141

Consolidated Statement of Stock

Consolidated Statement of Stockholders' Equity - 3 months ended Apr. 30, 2017 - USD ($) $ in Thousands	Total	Common Stock [Member]	Paid-In Capital [Member]	Treasury Stock at Cost [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Retained Earnings (Accumulated Deficit) [Member]
Beginning balance at Jan. 29, 2017	$ 439,452	$ 425	$ 310,230	$ (14,817)	$ (723)	$ 144,337
Beginning balance, shares at Jan. 29, 2017		42,469,570		264,983
Net income	42,796					42,796
Unrealized foreign currency translation gain (loss)	(292)				(292)
Share-based compensation	2,063		2,063
Cumulative effect of a change in accounting principle	782					782
Repurchase of common stock	$ (31,125)			$ (31,125)
Repurchase of common stock, shares	529,176			529,176
Issuance of treasury stock	$ 743			$ 8,423		(7,680)
Issuance of treasury stock, shares				(150,240)
Ending balance at Apr. 30, 2017	$ 454,419	$ 425	$ 312,293	$ (37,519)	$ (1,015)	$ 180,235
Ending balance, shares at Apr. 30, 2017		42,469,570		643,919

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2017	May 01, 2016
Cash flows from operating activities:
Net income	$ 42,796	$ 31,161
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	23,928	20,810
Deferred taxes	(635)	4,722
Excess income tax benefit related to share-based compensation plans		(1,538)
Loss on disposal of fixed assets	645	170
Share-based compensation	2,063	1,360
Other, net	(35)	699
Changes in assets and liabilities:
Inventories	(1,159)	1,032
Prepaid expenses	(1,926)	(1,944)
Income tax receivable	4,678	3,275
Other current assets	(5,347)	(4,231)
Other assets and deferred charges	(613)	465
Accounts payable	4,089	1,671
Accrued liabilities	3,010	223
Income taxes payable	14,284	8,877
Deferred occupancy costs	9,177	9,071
Other liabilities	859	832
Net cash provided by operating activities	95,814	76,655
Cash flows from investing activities:
Capital expenditures	(45,718)	(38,121)
Proceeds from sales of property and equipment	23	1
Net cash used in investing activities	(45,695)	(38,120)
Cash flows from financing activities:
Proceeds from debt	16,000	6,000
Payments of debt	(35,875)	(43,875)
Repurchase of common stock	(31,125)
Proceeds from the exercise of stock options		430
Proceeds from issuance of treasury stock	743
Excess income tax benefit related to share-based compensation plans		1,538
Net cash used in financing activities	(50,257)	(35,907)
Increase (decrease) in cash and cash equivalents	(138)	2,628
Beginning cash and cash equivalents	20,083	25,495
Ending cash and cash equivalents	19,945	28,123
Supplemental disclosures of cash flow information:
Increase (decrease) in fixed asset accounts payable	(2,394)	5,767
Cash paid for income taxes, net	1,258	1,028
Cash paid for interest, net	$ 1,613	$ 1,916

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Apr. 30, 2017
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 1: Summary of Significant Accounting Policies Basis of presentation The accompanying unaudited consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Company’s financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States for interim financial information as prescribed by the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, these financial statements contain all adjustments, consisting of normal recurring accruals, necessary to present fairly the financial position, results of operations and cash flows for the periods indicated. The preparation of consolidated financial statements in conformity with GAAP requires us to make certain estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Operating results for the thirteen weeks ended April 30, 2017 are not necessarily indicative of results that may be expected for any other interim period or for the year ending February 4, 2018. Our quarterly financial data should be read in conjunction with the audited financial statements and notes thereto for the year ended January 29, 2017, included in our Annual Report on Form 10-K as filed with the SEC. 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 in a 53 week year when the fourth quarter has 14 weeks. Fiscal 2017 and 2016, which end on February 4, 2018 and January 29, 2017, contain 53 and 52 weeks, respectively. Cash and cash equivalents Other current assets Fair value of financial instruments Our financial instruments consist of cash and cash equivalents, accounts and notes receivable, accounts payable, and our credit facility. The carrying amount of cash and cash equivalents, accounts and notes receivable and accounts payable approximates fair value because of their short maturities. We believe that the carrying amount of our credit facility approximates its fair value because the interest rates are adjusted regularly based on current market conditions. The fair value of the Company’s credit facility was determined to be a Level Two instrument as defined by GAAP. Non-financial assets and liabilities recognized or disclosed at fair value in the consolidated financial statements on a nonrecurring basis include such items as property and equipment, goodwill, tradenames and other assets. These assets are measured at fair value if determined to be impaired. During the thirteen weeks ended April 30, 2017, there were no impairments recognized. Share repurchase program Recent accounting pronouncements In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), which addresses eight specific cash flow issues and is intended to reduce diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The guidance is effective for interim and annual periods beginning after December 15, 2017, and early adoption is permitted. The adoption of this guidance is not expected to have a material impact on our consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting (Topic 718), which simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, as well as classification in the statement of cash flows. Also, excess tax benefits that were not previously recognized because the related tax deduction had not reduced current taxes payable are to be recorded on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the period in which the new guidance is adopted. The adoption of this guidance will require prospective recognition of excess tax benefits and deficiencies (that result from an increase or decrease in the fair value of an award from grant date to the vesting date or exercise date) on share-based compensation arrangements in the tax provision, instead of in equity as under the current guidance. In addition, these amounts will be classified as an operating activity in the statement of cash flows, instead of as a financing activity, with the change in classification to be applied either retrospectively or prospectively. The ASU’s income tax aspects also impact the calculation of diluted earnings per share by excluding excess tax benefits from the calculation of assumed proceeds available to repurchase shares under the treasury-stock method. The Company adopted the new guidance in the first quarter of fiscal 2017, and the impact of the new guidance was as follows: • During the quarter ended April 30, 2017, excess tax benefits of $3,306 were recognized as a benefit in the “Provision for Income Taxes” in the Consolidated Statement of Comprehensive Income and classified as a source in operating activities in the Consolidated Statement of Cash Flows. The Company elected to prospectively adopt the effect on the statement of cash flows and accordingly, did not restate the Consolidated Statement of Cash Flows for the quarter ended May 1, 2016. • As a result of the adoption, we recorded an adjustment to retained earnings of $782 to recognize deferred tax assets related to certain state net operating loss carryforwards attributable to excess tax benefits in stock compensation that had not been previously recognized in additional paid in capital. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The new guidance requires the present value of committed operating lease payments to be recorded as right-of-use lease assets and lease liabilities on the balance sheet. As of April 30, 2017, the Company had an estimated $1,150,000 in undiscounted future minimum lease commitments. Enhanced disclosures will also be required to give financial statement users the ability to assess the amount, timing and uncertainty of cash flows arising from leases. The guidance is effective for interim and annual periods beginning after December 15, 2018, using a modified retrospective adoption method and early adoption is permitted. We are currently evaluating the impact of the updated guidance on our consolidated financial statements. We expect the adoption of this guidance will result in a material increase in the assets and liabilities on our Consolidated Balance Sheets and will likely have an insignificant impact on our Consolidated Statements of Comprehensive Income. In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory (Topic 330), which changes the subsequent measurement of inventory from lower of cost or market to lower of cost and net realizable value. The Company adopted this standard prospectively, beginning January 30, 2017. The adoption did not have a material impact on the Company’s consolidated results of operations and financial condition. In May 2014, the FASB issued guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes most current revenue recognition guidance and outlines a single comprehensive model for entities to use in accounting for revenue. In August 2015, the FASB issued ASU 2015-14 delaying the effective date for adoption. The update is now effective for interim and annual periods beginning after December 15, 2017. The guidance provides a five step framework to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration it expects to be entitled to receive in exchange for those goods or services. The new guidance may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. We have determined that the new revenue recognition standard will not have a material impact on our recognition of food, beverage or amusement revenues.

Accrued Liabilities

Accrued Liabilities	3 Months Ended
	Apr. 30, 2017
Text Block [Abstract]
Accrued Liabilities	Note 2: Accrued Liabilities Accrued liabilities consist of the following as of: April 30, 2017 January 29, 2017 Deferred amusement revenue $ 30,039 $ 28,305 Compensation and benefits 18,726 20,886 Amusement redemption liability 16,387 15,431 Rent 15,388 14,260 Deferred gift card revenue 5,871 6,957 Property taxes 5,573 4,650 Customer deposits 4,840 3,003 Current portion of long term insurance reserves 4,240 4,460 Sales and use taxes 3,541 3,872 Utilities 3,183 2,969 Inventory received but not invoiced 1,890 1,134 Other 5,747 6,400 Total accrued liabilities $ 115,425 $ 112,327

Debt

Debt	3 Months Ended
	Apr. 30, 2017
Debt Disclosure [Abstract]
Debt	Note 3: Debt Long-term debt consists of the following as of: April 30, 2017 January 29, 2017 Credit Facility - term $ 136,875 $ 138,750 Credit Facility - revolver 108,000 126,000 Total debt outstanding 244,875 264,750 Less: Current installments - term (7,500 ) (7,500 ) Debt issuance costs - term (570 ) (622 ) Long-term debt, net $ 236,805 $ 256,628 Credit Facility— The interest rates per annum applicable to loans, other than swingline loans, under the 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 total leverage ratio, at LIBOR plus a spread ranging from 1.50% to 2.25% for the term loans and the revolving loans. The stated weighted average interest rate on the Credit Facility at April 30, 2017 was 2.49%. The weighted average effective interest rate incurred on our borrowings under the Credit Facility was 2.85%. The weighted average effective rate includes amortization of debt issuance costs, commitment and other fees. Our Credit Facility contains restrictive covenants that, among other things, places certain limitations on our ability to: incur additional indebtedness, make loans or advances to subsidiaries and other entities, pay dividends, acquire other businesses or sell assets. In addition, our Credit Facility requires us to maintain certain financial ratio covenants. As of April 30, 2017, we were in compliance with the restrictive covenants under the Credit Facility. Future debt obligations April 30, 1 year or less $ 7,500 2 years 7,500 3 years 7,500 4 years 222,375 5 years — Thereafter — Total future payments $ 244,875 Interest expense, net Thirteen Weeks Thirteen Weeks Interest expense on Credit Facility $ 1,708 $ 1,932 Amortization of issuance cost 167 169 Interest income (83 ) (66 ) Capitalized interest (141 ) (131 ) Change in fair value of interest rate cap 203 206 Total interest expense, net $ 1,854 $ 2,110 We are exposed to interest rate risk arising from changes in interest rates due to the variable rate indebtedness under our Credit Facility. In October 2015, the Company purchased an interest rate cap agreement for $920 with a notional amount of $200,000 to manage our exposure to interest rate movements on our variable rate credit facility when one-month LIBOR exceeds 3.0%. The interest rate cap agreement matures on October 7, 2019. The derivative is not designated as a hedge and does not qualify for hedge accounting. Accordingly, changes in the fair value of the interest rate cap are recognized as interest expense. The Company’s investment in the interest rate cap, with a fair value of $94 at April 30, 2017, is included in “Other assets and deferred charges” in the Consolidated Balance Sheets and was valued using an analysis based on market observable inputs representing Level Two assets as defined by GAAP. For the thirteen weeks ending April 30, 2017, interest expense includes $203 related to the change in the fair value of the interest rate cap.

Income Taxes

Income Taxes	3 Months Ended
	Apr. 30, 2017
Income Tax Disclosure [Abstract]
Income Taxes	Note 4: Income Taxes The effective income tax rate decreased to 31.4% for the thirteen weeks ended April 30, 2017 compared to 36.5% in the thirteen weeks ended May 1, 2016. The decrease in the effective tax rate for the thirteen weeks reflected a favorable impact from adoption of a new accounting pronouncement related to the tax impact of employee share-based awards (5.3%), slightly offset by the impact of state taxes and reduced leverage of FICA Tip Credits as a result of higher pre-tax income.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Apr. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 5: Commitments and Contingencies We are subject to certain legal proceedings and claims that arise in the ordinary course of our business, including claims alleging violations of federal and state law regarding workplace and employment matters, discrimination and similar 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 lease certain property and equipment under various non-cancelable The following table sets forth our lease commitments as of April 30, 2017: 1 year or less $ 90,253 2 years 86,986 3 years 82,385 4 years 76,065 5 years 69,180 Thereafter 751,456 Total future payments $ 1,156,325 As of April 30, 2017, we have signed operating lease agreements for six future sites which are expected to open in fiscal 2017. 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 April 30, 2017, we have signed twenty 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 above.

Earnings per share

Earnings per share	3 Months Ended
	Apr. 30, 2017
Earnings Per Share [Abstract]
Earnings per share	Note 6: 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 (both vested and unvested), unvested time-based restricted stock units (RSU’s) and unvested performance RSU’s to the extent performance measures were attained as of the end of the reporting period. The effect of dilutive common shares is determined using the treasury-stock method. The following table sets forth the computation of EPS, basic and diluted for the periods indicated: (in thousands, except share and per share data) Thirteen Weeks Thirteen Weeks May 1, 2016 Numerator: Net income $ 42,796 $ 31,161 Denominator: Basic weighted average common shares outstanding 42,027,551 41,659,879 Effect of dilutive common shares for equity-based awards 1,494,852 1,452,262 Diluted weighted average common shares outstanding 43,522,403 43,112,141 Net income per share: Basic $ 1.02 $ 0.75 Diluted $ 0.98 $ 0.72

Share-Based Compensation

Share-Based Compensation	3 Months Ended
	Apr. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-Based Compensation	Note 7: Share-Based Compensation Compensation expense related to stock options, time-based and performance-based RSU’s and restricted stock is as follows: Thirteen Weeks Ended April 30, 2017 Thirteen Weeks Ended May 1, 2016 Stock options $ 1,304 $ 953 RSU’s and restricted stock 759 407 Total share-based compensation expense $ 2,063 $ 1,360 Transactions related to stock option awards during the thirteen weeks ended April 30, 2017 were as follows: 2014 Stock Incentive Plan 2010 Stock Incentive Plan Number Weighted Number Weighted Outstanding at January 29, 2017 833,499 $ 26.93 1,225,053 $ 5.35 Granted 153,088 59.67 — — Exercised (1,368 ) 35.98 (148,872 ) 4.67 Forfeited (400 ) 37.37 — — Outstanding at April 30, 2017 984,819 $ 32.00 1,076,181 $ 5.45 Exercisable at April 30, 2017 251,863 $ 34.69 976,852 $ 5.13 The total intrinsic value of options exercised during the thirteen weeks ended April 30, 2017 and May 1, 2016 was $8,318 and $3,151, respectively. The unrecognized expense related to our stock option plan totaled approximately $4,531 as of April 30, 2017 and will be expensed over a weighted average period of 1.8 years. Transactions related to time-based and performance-based RSU’s and restricted stock during the thirteen weeks ended April 30, 2017 were as follows: Shares Weighted Outstanding at January 29, 2017 128,088 $ 37.19 Granted 63,967 59.67 Vested (8,732 ) 39.50 Forfeited (119 ) 39.14 Outstanding at April 30, 2017 183,204 $ 44.93 Fair value of our time-based and performance-based RSU’s and restricted stock is based on our closing stock price on the date of grant. The unrecognized expense related to our time-based and performance-based RSU’s and unvested restricted stock was $7,130 as of April 30, 2017 and will be expensed over a weighted average period of 2.3 years.

Summary of Significant Accoun14

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Apr. 30, 2017
Accounting Policies [Abstract]
Basis of presentation	Basis of presentation The accompanying unaudited consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Company’s financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States for interim financial information as prescribed by the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, these financial statements contain all adjustments, consisting of normal recurring accruals, necessary to present fairly the financial position, results of operations and cash flows for the periods indicated. The preparation of consolidated financial statements in conformity with GAAP requires us to make certain estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Operating results for the thirteen weeks ended April 30, 2017 are not necessarily indicative of results that may be expected for any other interim period or for the year ending February 4, 2018. Our quarterly financial data should be read in conjunction with the audited financial statements and notes thereto for the year ended January 29, 2017, included in our Annual Report on Form 10-K as filed with the SEC. 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 in a 53 week year when the fourth quarter has 14 weeks. Fiscal 2017 and 2016, which end on February 4, 2018 and January 29, 2017, contain 53 and 52 weeks, respectively.
Cash and cash equivalents	Cash and cash equivalents
Other current assets	Other current assets
Fair value of financial instruments	Fair value of financial instruments Our financial instruments consist of cash and cash equivalents, accounts and notes receivable, accounts payable, and our credit facility. The carrying amount of cash and cash equivalents, accounts and notes receivable and accounts payable approximates fair value because of their short maturities. We believe that the carrying amount of our credit facility approximates its fair value because the interest rates are adjusted regularly based on current market conditions. The fair value of the Company’s credit facility was determined to be a Level Two instrument as defined by GAAP. Non-financial assets and liabilities recognized or disclosed at fair value in the consolidated financial statements on a nonrecurring basis include such items as property and equipment, goodwill, tradenames and other assets. These assets are measured at fair value if determined to be impaired. During the thirteen weeks ended April 30, 2017, there were no impairments recognized.
Share repurchase program	Share repurchase program
Recent accounting pronouncements	Recent accounting pronouncements In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), which addresses eight specific cash flow issues and is intended to reduce diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The guidance is effective for interim and annual periods beginning after December 15, 2017, and early adoption is permitted. The adoption of this guidance is not expected to have a material impact on our consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting (Topic 718), which simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, as well as classification in the statement of cash flows. Also, excess tax benefits that were not previously recognized because the related tax deduction had not reduced current taxes payable are to be recorded on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the period in which the new guidance is adopted. The adoption of this guidance will require prospective recognition of excess tax benefits and deficiencies (that result from an increase or decrease in the fair value of an award from grant date to the vesting date or exercise date) on share-based compensation arrangements in the tax provision, instead of in equity as under the current guidance. In addition, these amounts will be classified as an operating activity in the statement of cash flows, instead of as a financing activity, with the change in classification to be applied either retrospectively or prospectively. The ASU’s income tax aspects also impact the calculation of diluted earnings per share by excluding excess tax benefits from the calculation of assumed proceeds available to repurchase shares under the treasury-stock method. The Company adopted the new guidance in the first quarter of fiscal 2017, and the impact of the new guidance was as follows: • During the quarter ended April 30, 2017, excess tax benefits of $3,306 were recognized as a benefit in the “Provision for Income Taxes” in the Consolidated Statement of Comprehensive Income and classified as a source in operating activities in the Consolidated Statement of Cash Flows. The Company elected to prospectively adopt the effect on the statement of cash flows and accordingly, did not restate the Consolidated Statement of Cash Flows for the quarter ended May 1, 2016. • As a result of the adoption, we recorded an adjustment to retained earnings of $782 to recognize deferred tax assets related to certain state net operating loss carryforwards attributable to excess tax benefits in stock compensation that had not been previously recognized in additional paid in capital. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The new guidance requires the present value of committed operating lease payments to be recorded as right-of-use lease assets and lease liabilities on the balance sheet. As of April 30, 2017, the Company had an estimated $1,150,000 in undiscounted future minimum lease commitments. Enhanced disclosures will also be required to give financial statement users the ability to assess the amount, timing and uncertainty of cash flows arising from leases. The guidance is effective for interim and annual periods beginning after December 15, 2018, using a modified retrospective adoption method and early adoption is permitted. We are currently evaluating the impact of the updated guidance on our consolidated financial statements. We expect the adoption of this guidance will result in a material increase in the assets and liabilities on our Consolidated Balance Sheets and will likely have an insignificant impact on our Consolidated Statements of Comprehensive Income. In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory (Topic 330), which changes the subsequent measurement of inventory from lower of cost or market to lower of cost and net realizable value. The Company adopted this standard prospectively, beginning January 30, 2017. The adoption did not have a material impact on the Company’s consolidated results of operations and financial condition. In May 2014, the FASB issued guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes most current revenue recognition guidance and outlines a single comprehensive model for entities to use in accounting for revenue. In August 2015, the FASB issued ASU 2015-14 delaying the effective date for adoption. The update is now effective for interim and annual periods beginning after December 15, 2017. The guidance provides a five step framework to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration it expects to be entitled to receive in exchange for those goods or services. The new guidance may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. We have determined that the new revenue recognition standard will not have a material impact on our recognition of food, beverage or amusement revenues.

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	3 Months Ended
	Apr. 30, 2017
Text Block [Abstract]
Accrued Liabilities	Accrued liabilities consist of the following as of: April 30, 2017 January 29, 2017 Deferred amusement revenue $ 30,039 $ 28,305 Compensation and benefits 18,726 20,886 Amusement redemption liability 16,387 15,431 Rent 15,388 14,260 Deferred gift card revenue 5,871 6,957 Property taxes 5,573 4,650 Customer deposits 4,840 3,003 Current portion of long term insurance reserves 4,240 4,460 Sales and use taxes 3,541 3,872 Utilities 3,183 2,969 Inventory received but not invoiced 1,890 1,134 Other 5,747 6,400 Total accrued liabilities $ 115,425 $ 112,327

Debt (Tables)

Debt (Tables)	3 Months Ended
	Apr. 30, 2017
Debt Disclosure [Abstract]
Long-Term Debt	Long-term debt consists of the following as of: April 30, 2017 January 29, 2017 Credit Facility - term $ 136,875 $ 138,750 Credit Facility - revolver 108,000 126,000 Total debt outstanding 244,875 264,750 Less: Current installments - term (7,500 ) (7,500 ) Debt issuance costs - term (570 ) (622 ) Long-term debt, net $ 236,805 $ 256,628
Future Debt Payment Obligation	Future debt obligations April 30, 2017 1 year or less $ 7,500 2 years 7,500 3 years 7,500 4 years 222,375 5 years — Thereafter — Total future payments $ 244,875
Recorded Interest Expense, Net	The following tables set forth our recorded interest expense, net for the periods indicated: Thirteen Weeks Thirteen Weeks Interest expense on Credit Facility $ 1,708 $ 1,932 Amortization of issuance cost 167 169 Interest income (83 ) (66 ) Capitalized interest (141 ) (131 ) Change in fair value of interest rate cap 203 206 Total interest expense, net $ 1,854 $ 2,110

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Apr. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Lease Commitments	The following table sets forth our lease commitments as of April 30, 2017: 1 year or less $ 90,253 2 years 86,986 3 years 82,385 4 years 76,065 5 years 69,180 Thereafter 751,456 Total future payments $ 1,156,325

Earnings per share (Tables)

Earnings per share (Tables)	3 Months Ended
	Apr. 30, 2017
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 share and per share data) Thirteen Weeks Thirteen Weeks May 1, 2016 Numerator: Net income $ 42,796 $ 31,161 Denominator: Basic weighted average common shares outstanding 42,027,551 41,659,879 Effect of dilutive common shares for equity-based awards 1,494,852 1,452,262 Diluted weighted average common shares outstanding 43,522,403 43,112,141 Net income per share: Basic $ 1.02 $ 0.75 Diluted $ 0.98 $ 0.72

Share-Based Compensation (Table

Share-Based Compensation (Tables)	3 Months Ended
	Apr. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of Compensation Expense	Compensation expense related to stock options, time-based and performance-based RSU’s and restricted stock is as follows: Thirteen Weeks Ended April 30, 2017 Thirteen Weeks Ended May 1, 2016 Stock options $ 1,304 $ 953 RSU’s and restricted stock 759 407 Total share-based compensation expense $ 2,063 $ 1,360
Transactions Related to Stock Options Awards	Transactions related to stock option awards during the thirteen weeks ended April 30, 2017 were as follows: 2014 Stock Incentive Plan 2010 Stock Incentive Plan Number Weighted Number Weighted Outstanding at January 29, 2017 833,499 $ 26.93 1,225,053 $ 5.35 Granted 153,088 59.67 — — Exercised (1,368 ) 35.98 (148,872 ) 4.67 Forfeited (400 ) 37.37 — — Outstanding at April 30, 2017 984,819 $ 32.00 1,076,181 $ 5.45 Exercisable at April 30, 2017 251,863 $ 34.69 976,852 $ 5.13
Transactions Related to Time-based and Performance-based RSU's and Restricted Stock	Transactions related to time-based and performance-based RSU’s and restricted stock during the thirteen weeks ended April 30, 2017 were as follows: Shares Weighted Outstanding at January 29, 2017 128,088 $ 37.19 Granted 63,967 59.67 Vested (8,732 ) 39.50 Forfeited (119 ) 39.14 Outstanding at April 30, 2017 183,204 $ 44.93

Summary of Significant Accoun20

Summary of Significant Accounting Policies - Additional Information (Detail)	3 Months Ended	8 Months Ended
	Apr. 30, 2017USD ($)StatesStoresProvinceSegment$ / sharesshares	Jan. 29, 2017USD ($)$ / sharesshares	Jul. 29, 2017Stores	Jun. 06, 2017USD ($)	Jun. 07, 2016USD ($)
Summary Of Significant Accounting Policy [Line Items]
Number of stores | Stores	96
Number of states store operates | States	33
Number of operating segment | Segment	1
Number of reportable segment | Segment	1
Book overdrafts reclassified to accounts payable	$ 14,837,000	$ 10,065,000
Construction allowance receivables	12,377,000	$ 7,021,000
Long lived asset impairment loss	0
Share repurchase program authorized amount	$ 200,000				$ 100,000
Repurchase of common stock, shares | shares	529,176	1,095,932
Repurchase of common stock, price per shares | $ / shares	$ 58.82	$ 54.70
Un-recognized deferred tax assets	$ 782,000
Estimated undiscounted future minimum lease commitments	$ 1,156,325,000
Dave And Busters Holdings Inc [Member]
Summary Of Significant Accounting Policy [Line Items]
Percentage of outstanding common stock owned	100.00%
Canada [Member]
Summary Of Significant Accounting Policy [Line Items]
Number of Canadian province | Province	1
Scenario, Forecast [Member]
Summary Of Significant Accounting Policy [Line Items]
Number of stores | Stores			4
Adjustments for New Accounting Pronouncement [Member]
Summary Of Significant Accounting Policy [Line Items]
Excess income tax benefit related to stock-based compensation plans	$ 3,306,000
Additional Share Repurchase Program [Member] | Subsequent Event [Member]
Summary Of Significant Accounting Policy [Line Items]
Share repurchase program authorized amount				$ 100,000

Accrued Liabilities - Accrued L

Accrued Liabilities - Accrued Liabilities (Detail) - USD ($) $ in Thousands	Apr. 30, 2017	Jan. 29, 2017
Accrued Liabilities, Current [Abstract]
Deferred amusement revenue	$ 30,039	$ 28,305
Compensation and benefits	18,726	20,886
Amusement redemption liability	16,387	15,431
Rent	15,388	14,260
Deferred gift card revenue	5,871	6,957
Property taxes	5,573	4,650
Customer deposits	4,840	3,003
Current portion of long term insurance reserves	4,240	4,460
Sales and use taxes	3,541	3,872
Utilities	3,183	2,969
Inventory received but not invoiced	1,890	1,134
Other	5,747	6,400
Total accrued liabilities	$ 115,425	$ 112,327

Debt - Long-Term Debt (Detail)

Debt - Long-Term Debt (Detail) - USD ($) $ in Thousands	Apr. 30, 2017	Jan. 29, 2017
Debt Instrument [Line Items]
Total debt outstanding	$ 244,875	$ 264,750
Current installments - term	(7,500)	(7,500)
Long-term debt, net	236,805	256,628
Credit Facility - Term [Member]
Debt Instrument [Line Items]
Total debt outstanding	136,875	138,750
Current installments - term	(7,500)	(7,500)
Debt issuance costs - term	(570)	(622)
Credit Facility - Revolver [Member]
Debt Instrument [Line Items]
Total debt outstanding	$ 108,000	$ 126,000

Debt - Additional Information (

Debt - Additional Information (Detail) - USD ($)	May 15, 2015	Oct. 31, 2015	Apr. 30, 2017	May 01, 2016	Nov. 01, 2015
Debt Instrument [Line Items]
Purchase of interest rate cap		$ 920,000
Notional amount under interest rate agreement		$ 200,000,000
Interest rate cap Libor rate description			In October 2015, the Company purchased an interest rate cap agreement for $920 with a notional amount of $200,000 to manage our exposure to interest rate movements on our variable rate credit facility when one-month LIBOR exceeds 3.0%. The interest rate cap agreement matures on October 7, 2019. The derivative is not designated as a hedge and does not qualify for hedge accounting. Accordingly, changes in the fair value of the interest rate cap are recognized as interest expense. The Company’s investment in the interest rate cap, with a fair value of $94 at April 30, 2017, is included in “Other assets and deferred charges” in the Consolidated Balance Sheets and was valued using an analysis based on market observable inputs. The fair value of the Company’s interest rate cap represents the amount the Company would receive to terminate the contract. For the thirteen weeks ending April 30, 2017, interest expense includes $203 related to the change in the fair value of the interest rate cap.
Cap interest rate		3.00%
Maturity date of interest rate cap agreement		Oct. 7, 2019
Fair value of interest rate cap			$ 94,000
Change in fair value of interest rate cap			$ 203,000	$ 206,000
Minimum [Member]
Debt Instrument [Line Items]
Debt instrument interest rate			1.50%
Maximum [Member]
Debt Instrument [Line Items]
Debt instrument interest rate			2.25%
Credit Facility [Member]
Debt Instrument [Line Items]
Senior secured credit facility	$ 150,000,000
Revolving credit facility, maximum borrowing capacity	$ 350,000,000
Maturity date	May 15, 2020
Revolving credit facility, letter of credit sub-facility maximum borrowing capacity	$ 20,000,000
Revolving credit facility, swingline sub-facility maximum borrowing capacity	$ 10,000,000
Term loan repayment of principal					$ 1,875,000
Frequency of periodic payment			Quarterly
Letter of credit facility outstanding			$ 5,159,000
Borrowing available			$ 236,841,000
Weighted average interest rate on the Credit Facility			2.49%
Weighted average effective interest			2.85%
Debt instrument, description of variable rate basis			The loans bear interest subject to a pricing grid based on a total leverage ratio, at LIBOR plus a spread ranging from 1.50% to 2.25% for the term loans and the revolving loans.
Debt Instrument, covenant compliance			Our Credit Facility contains restrictive covenants that, among other things, places certain limitations on our ability to incur additional indebtedness, make loans or advances to subsidiaries and other entities, pay dividends, acquire other businesses or sell assets. In addition, our Credit Facility requires us to maintain certain financial ratio covenants. As of April 30, 2017, we were in compliance with the restrictive covenants under the Credit Facility.

Debt - Future Debt Payment Obli

Debt - Future Debt Payment Obligation (Detail) - USD ($) $ in Thousands	Apr. 30, 2017	Jan. 29, 2017
Debt Disclosure [Abstract]
1 year or less	$ 7,500
2 years	7,500
3 years	7,500
4 years	222,375
5 years	0
Thereafter	0
Total debt outstanding	$ 244,875	$ 264,750

Debt - Recorded Interest Expens

Debt - Recorded Interest Expense, Net (Detail) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2017	May 01, 2016
Debt Disclosure [Abstract]
Interest expense on Credit Facilities	$ 1,708	$ 1,932
Amortization of issuance cost	167	169
Interest income	(83)	(66)
Capitalized interest	(141)	(131)
Change in fair value of interest rate cap	203	206
Total interest expense, net	$ 1,854	$ 2,110

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail)	3 Months Ended
	Apr. 30, 2017	May 01, 2016
Income Tax Disclosure [Abstract]
Effective tax rate	31.40%	36.50%
Percentage of tax impact of employee share-based awards	(5.30%)

Commitments and Contingencies -

Commitments and Contingencies - Lease Commitments (Detail) $ in Thousands	Apr. 30, 2017USD ($)
Leases [Abstract]
1 year or less	$ 90,253
2 years	86,986
3 years	82,385
4 years	76,065
5 years	69,180
Thereafter	751,456
Total future payments	$ 1,156,325

Commitments and Contingencies28

Commitments and Contingencies - Additional Information (Detail)	3 Months Ended
	Apr. 30, 2017Lease_Agreementsite
Operating Leased Assets [Line Items]
Lease commitments for future sites | site	6
Additional Lease Agreements [Member]
Operating Leased Assets [Line Items]
Number of additional lease agreements signed | Lease_Agreement	20

Earnings Per Share - Summary of

Earnings Per Share - Summary of Calculation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Apr. 30, 2017	May 01, 2016
Numerator:
Net income	$ 42,796	$ 31,161
Denominator:
Basic weighted average common shares outstanding	42,027,551	41,659,879
Effect of dilutive common shares for equity-based awards	1,494,852	1,452,262
Diluted weighted average common shares outstanding	43,522,403	43,112,141
Net income per share:
Basic	$ 1.02	$ 0.75
Diluted	$ 0.98	$ 0.72

Share-Based Compensation - Summ

Share-Based Compensation - Summary of Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2017	May 01, 2016
Share-based Compensation [Abstract]
Stock options	$ 1,304	$ 953
RSU's and restricted stock	759	407
Total share-based compensation expense	$ 2,063	$ 1,360

Share-Based Compensation - Tran

Share-Based Compensation - Transactions Related to Stock Option Awards (Detail)	3 Months Ended
	Apr. 30, 2017$ / sharesshares
2014 Stock Incentive Plan [Member]
Number of Options
Options outstanding at January 29, 2017 | shares	833,499
Granted | shares	153,088
Exercised | shares	(1,368)
Forfeited | shares	(400)
Options outstanding at April 30, 2017 | shares	984,819
Options exercisable at April 30, 2017 | shares	251,863
Weighted Average Exercise Price
Options outstanding at January 29, 2017 | $ / shares	$ 26.93
Granted | $ / shares	59.67
Exercised | $ / shares	35.98
Forfeited | $ / shares	37.37
Options outstanding at April 30, 2017 | $ / shares	32
Options exercisable at April 30, 2017 | $ / shares	$ 34.69
2010 Stock Incentive Plan [Member]
Number of Options
Options outstanding at January 29, 2017 | shares	1,225,053
Exercised | shares	(148,872)
Options outstanding at April 30, 2017 | shares	1,076,181
Options exercisable at April 30, 2017 | shares	976,852
Weighted Average Exercise Price
Options outstanding at January 29, 2017 | $ / shares	$ 5.35
Exercised | $ / shares	4.67
Options outstanding at April 30, 2017 | $ / shares	5.45
Options exercisable at April 30, 2017 | $ / shares	$ 5.13

Share-Based Compensation - Addi

Share-Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2017	May 01, 2016
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total intrinsic value of stock options exercised	$ 8,318	$ 3,151
Unrecognized expense related to stock option plan	$ 4,531
Unrecognized compensation expense, weighted average years	1 year 9 months 18 days
Restricted Stock Units (RSU's) and Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense, weighted average years	2 years 3 months 19 days
Unrecognized expense related to unvested restricted stock and RSUs	$ 7,130

Share-Based Compensation - Tr33

Share-Based Compensation - Transactions Related to Time-based and Performance-based RSU's and Restricted Stock (Detail) - Time-Based and Performance-Based RSU's and Restricted Shares [Member]	3 Months Ended
	Apr. 30, 2017$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted Stock Awards, January 29, 2017 | shares	128,088
Restricted Stock Awards, Granted | shares	63,967
Restricted Stock Awards, Vested | shares	(8,732)
Restricted Stock Awards, Forfeited | shares	(119)
Restricted Stock Awards, April 30, 2017 | shares	183,204
Weighted Average Fair Value, January 29, 2017 | $ / shares	$ 37.19
Weighted Average Fair Value, Granted | $ / shares	59.67
Weighted Average Fair Value, Vested | $ / shares	39.50
Weighted Average Fair Value, Forfeited | $ / shares	39.14
Weighted Average Fair Value, April 30, 2017 | $ / shares	$ 44.93