Dave & Buster's Entertainment (PLAY) 10-Q 14 Sep 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Aug. 05, 2018	Sep. 11, 2018
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Aug. 5, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Trading Symbol	PLAY
Entity Registrant Name	Dave & Buster's Entertainment, Inc.
Entity Central Index Key	1,525,769
Current Fiscal Year End Date	--02-03
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		38,830,928

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Aug. 05, 2018	Feb. 04, 2018
Current assets:
Cash and cash equivalents	$ 22,398	$ 18,795
Inventories	24,993	27,560
Prepaid expenses	20,509	19,052
Income taxes receivable	1,369	4,867
Other current assets	33,175	24,633
Total current assets	102,444	94,907
Property and equipment (net of $526,194 and $474,330 accumulated depreciation as of August 5, 2018 and February 4, 2018, respectively)	776,242	726,455
Deferred tax assets	7,134	7,789
Tradenames	79,000	79,000
Goodwill	272,616	272,566
Other assets and deferred charges	17,421	16,313
Total assets	1,254,857	1,197,030
Current liabilities:
Current installments of long-term debt	15,000	15,000
Accounts payable	48,563	54,627
Accrued liabilities	145,889	135,161
Income taxes payable	7,193	3,037
Total current liabilities	216,645	207,825
Deferred income taxes	15,066	10,213
Deferred occupancy costs	213,235	184,994
Other liabilities	22,127	21,103
Long-term debt, net	346,859	351,249
Commitments and contingencies
Stockholders' equity:
Common stock, par value $0.01; authorized: 400,000,000 shares; issued: 42,937,988 shares at August 5, 2018 and 42,660,806 shares at February 4, 2018; outstanding: 39,027,955 shares at August 5, 2018 and 40,102,085 shares at February 4, 2018	429	427
Preferred stock, 50,000,000 authorized; none issued
Paid-in capital	325,951	320,488
Treasury stock, 3,910,033 and 2,558,721 shares as of August 5, 2018 and February 4, 2018, respectively	(209,084)	(147,331)
Accumulated other comprehensive loss	(611)	(249)
Retained earnings	324,240	248,311
Total stockholders' equity	440,925	421,646
Total liabilities and stockholders' equity	$ 1,254,857	$ 1,197,030

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Aug. 05, 2018	Feb. 04, 2018
Statement of Financial Position [Abstract]
Property and equipment, accumulated depreciation	$ 526,194	$ 474,330
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	400,000,000	400,000,000
Common stock, shares issued	42,937,988	42,660,806
Common stock, shares outstanding	39,027,955	40,102,085
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares issued	0	0
Treasury stock, shares	3,910,033	2,558,721

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 05, 2018	Jul. 30, 2017	Aug. 05, 2018	Jul. 30, 2017
Total revenues	$ 319,188	$ 280,751	$ 651,378	$ 584,899
Total cost of products	55,556	48,451	112,695	97,436
Operating payroll and benefits	73,736	64,453	146,630	129,643
Other store operating expenses	94,825	82,529	188,165	164,897
General and administrative expenses	14,764	16,762	30,418	31,740
Depreciation and amortization expense	29,049	24,847	56,555	48,775
Pre-opening costs	5,328	4,546	12,381	9,017
Total operating costs	273,258	241,588	546,844	481,508
Operating income	45,930	39,163	104,534	103,391
Interest expense, net	3,228	2,063	6,085	3,917
Income before provision for income taxes	42,702	37,100	98,449	99,474
Provision for income taxes	8,923	6,744	22,520	26,322
Net income	33,779	30,356	75,929	73,152
Unrealized foreign currency translation gain (loss)	(93)	720	(362)	428
Total comprehensive income	$ 33,686	$ 31,076	$ 75,567	$ 73,580
Net income per share:
Basic	$ 0.86	$ 0.73	$ 1.92	$ 1.75
Diluted	$ 0.84	$ 0.71	$ 1.88	$ 1.69
Weighted average shares used in per share calculations:
Basic	39,355,105	41,460,651	39,525,263	41,744,101
Diluted	40,280,301	42,830,873	40,444,201	43,182,918
Food and Beverage Revenues [Member]
Total revenues	$ 130,242	$ 118,689	$ 269,997	$ 248,500
Cost of food and beverage	33,998	30,473	70,018	63,175
Amusement and Other Revenues [Member]
Total revenues	188,946	162,062	381,381	336,399
Cost of amusement and other	$ 21,558	$ 17,978	$ 42,677	$ 34,261

Consolidated Statement of Stock

Consolidated Statement of Stockholders' Equity - 6 months ended Aug. 05, 2018 - USD ($) $ in Thousands	Total	Common Stock [Member]	Paid-In Capital [Member]	Treasury Stock at Cost [Member]	Accumulated Other Comprehensive Gain (Loss) [Member]	Retained Earnings [Member]
Beginning balance at Feb. 04, 2018	$ 421,646	$ 427	$ 320,488	$ (147,331)	$ (249)	$ 248,311
Beginning balance, shares at Feb. 04, 2018		42,660,806		2,558,721
Net income	75,929					75,929
Unrealized foreign currency translation loss	(362)				(362)
Share-based compensation	4,014		4,014
Issuance of common stock	1,451	$ 2	1,449
Issuance of common stock, shares		277,182
Repurchase of common stock	$ (61,753)			$ (61,753)
Repurchase of common stock, shares	1,335,061			1,351,312
Ending balance at Aug. 05, 2018	$ 440,925	$ 429	$ 325,951	$ (209,084)	$ (611)	$ 324,240
Ending balance, shares at Aug. 05, 2018		42,937,988		3,910,033

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Aug. 05, 2018	Jul. 30, 2017
Cash flows from operating activities:
Net income	$ 75,929	$ 73,152
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	56,555	48,775
Deferred taxes	5,508	(3,070)
Loss on disposal of fixed assets	693	884
Share-based compensation	4,014	4,449
Other, net	717	569
Changes in assets and liabilities:
Inventories	2,567	(1,844)
Prepaid expenses	(1,457)	(415)
Income tax receivable	3,498	4,031
Other current assets	(8,536)	(12,226)
Other assets and deferred charges	(939)	(653)
Accounts payable	2,766	5,480
Accrued liabilities	10,566	13,470
Income taxes payable	4,156	3,956
Deferred occupancy costs	28,403	19,794
Other liabilities	471	1,754
Net cash provided by operating activities	184,911	158,106
Cash flows from investing activities:
Capital expenditures	(116,624)	(99,757)
Proceeds from sales of property and equipment	118	37
Collections of notes receivable		800
Net cash used in investing activities	(116,506)	(98,920)
Cash flows from financing activities:
Proceeds from debt	117,000	95,000
Payments of debt	(121,500)	(57,750)
Proceeds from the exercise of stock options	1,451	721
Proceeds from issuance of treasury stock		1,642
Repurchase of common stock under share repurchase program	(61,080)	(98,286)
Repurchases of common stock to satisfy employee withholding tax obligations	(673)
Net cash used in financing activities	(64,802)	(58,673)
Increase in cash and cash equivalents	3,603	513
Beginning cash and cash equivalents	18,795	20,083
Ending cash and cash equivalents	22,398	20,596
Supplemental disclosures of cash flow information:
Decrease in fixed asset accounts payable	(8,830)	(5,455)
Cash paid for income taxes, net	9,338	21,400
Cash paid for interest, net	$ 5,714	$ 3,396

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Aug. 05, 2018
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 and twenty-six 10-K 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 2018 and 2017, which end on February 3, 2019 and February 4, 2018, contain 52 and 53 weeks, respectively. Cash and cash equivalents As of August 5, 2018, the Company had no restricted cash, and the adoption of Accounting Standards Update (“ASU”) 2016-18, 2016-15, 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 Revenue recognition Food and beverage revenues are recognized when payment is tendered at the point of sale. Amusement revenues are primarily recognized upon utilization of game play credits on Power Cards purchased and used by customers to activate most of the video and redemption games. 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. Total deferred amusement revenue is included in “Accrued liabilities” in our Consolidated Balance Sheets. During the thirteen and twenty-six Proceeds from the sale of gift cards are deferred and recognized as revenue when the holder redeems the card or its likelihood of redemption becomes remote (“breakage”) and the Company determines that there is not a legal obligation to remit the unredeemed gift card balances to the relevant jurisdictions. The determination of the gift card breakage is based on the Company’s specific historical redemption patterns. Recognized gift card breakage revenue is included in “Amusements and other revenues” in the Consolidated Statements of Comprehensive Income. Total deferred revenue related to our gift cards is included in “Accrued liabilities” in our Consolidated Balance Sheets. During the thirteen and twenty-six Certain of our promotional programs include multiple performance obligations that include both a delivered and undelivered component and are discounted from the standalone selling prices of the deliverables. We allocate the entire discount to the amusement deliverable. Revenues are presented net of sales taxes. Sales tax collected is included in “Accrued liabilities” until the taxes are remitted to the appropriate taxing authorities. Share repurchase program 10b5-1 twenty-six In our consolidated financial statements, the Company treats shares withheld for tax purposes on behalf of our employees in connection with the vesting of performance restricted stock units as common stock repurchases because they reduce the number of shares that would have been issued upon vesting. These withheld shares of common stock are not considered common stock repurchases under our authorized common stock repurchase plan. During the twenty-six Recent accounting pronouncements 2016-02, right-of-use In January 2017, the FASB issued ASU 2017-04,

Accrued Liabilities

Accrued Liabilities	6 Months Ended
	Aug. 05, 2018
Text Block [Abstract]
Accrued Liabilities	Note 2: Accrued Liabilities Accrued liabilities consist of the following as of: August 5, 2018 February 4, 2018 Deferred amusement revenue $ 38,690 $ 33,806 Compensation and benefits 22,914 19,959 Amusement redemption liability 19,932 18,041 Rent 18,471 16,478 Property taxes 8,262 6,054 Deferred gift card revenue 6,691 7,583 Sales and use taxes 4,756 5,191 Current portion of long-term insurance 4,600 4,600 Utilities 3,845 3,554 Customer deposits 3,813 3,250 Inventory liabilities 2,453 4,336 Other (refer to Note 4) 11,462 12,309 Total accrued liabilities $ 145,889 $ 135,161

Debt

Debt	6 Months Ended
	Aug. 05, 2018
Debt Disclosure [Abstract]
Debt	Note 3: Debt Long-term debt consists of the following as of: August 5, 2018 February 4, 2018 Credit facility - term $ 288,750 $ 296,250 Credit facility - revolver 74,000 71,000 Total debt outstanding 362,750 367,250 Less: Current installments - term (15,000 ) (15,000 ) Debt issuance costs - term (891 ) (1,001 ) Long-term debt, net $ 346,859 $ 351,249 On August 17, 2017, we entered into a senior secured credit facility that provides a $300,000 term loan facility and a $500,000 revolving credit facility with a maturity date of August 17, 2022. The $500,000 revolving credit facility includes a $35,000 letter of credit sub-facility sub-facility. The interest rates per annum applicable to loans, other than swing loans, under our existing credit facility are currently set based on a defined LIBOR rate plus an applicable margin. Swing 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 1.25% to 2.00% for the term loans and the revolving loans. The stated weighted average interest rate at August 5, 2018 was 3.33%. The year-to-date Our credit facility contains restrictive covenants that, among other things, place 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 August 5, 2018, we were in compliance with our restrictive and financial ratio covenants. Interest expense, net Thirteen Weeks Thirteen Weeks Ended Ended August 5, 2018 July 30, 2017 Interest expense on credit facilities $ 3,255 $ 1,998 Amortization of issuance cost 198 166 Interest income (28 ) (52 ) Capitalized interest (201 ) (115 ) Change in fair value of interest rate cap 4 66 Total interest expense, net $ 3,228 $ 2,063 Twenty-six Weeks Twenty-six Weeks Ended Ended August 5, 2018 July 30, 2017 Interest expense on credit facility $ 6,278 $ 3,706 Amortization of issuance cost 396 333 Interest income (56 ) (135 ) Capitalized interest (527 ) (256 ) Change in fair value of interest rate cap (6 ) 269 Total interest expense, net $ 6,085 $ 3,917

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Aug. 05, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 4: 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. On June 30, 2017, we agreed to settle litigation related to alleged violations of the Employee Retirement Income Security Act. The settlement agreement is subject to court approval. To cover the estimated net costs of settlement, including estimated payment to any opt-in twenty-six During the third quarter of fiscal 2017, three major hurricanes made landfall impacting areas where we operate our stores, which negatively impacted store revenues. During the first quarter of fiscal 2018, we recognized business interruption insurance recoveries of approximately $500 related to one of the events, which are included in “Other store operating expenses” in the Consolidated Statements of Comprehensive Income. We continue to work closely with our insurers to finalize all property and business interruption insurance claims, although the amount of any future recoveries has not yet been determined. We lease certain property and equipment under various non-cancelable The following table sets forth our lease commitments as of August 5, 2018: 1 year or less $ 113,655 2 years 109,973 3 years 104,562 4 years 96,363 5 years 92,205 Thereafter 1,095,195 Total future payments $ 1,611,953 As of August 5, 2018, we have signed operating lease agreements for five future sites which are expected to open in fiscal 2018 and early fiscal 2019. 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 August 5, 2018, we have signed seventeen additional operating 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.

Income Taxes

Income Taxes	6 Months Ended
	Aug. 05, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Note 5: Income Taxes The effective income tax rate for the twenty-six twenty-six non-US We believe we have properly estimated our federal and state income tax liabilities for the impacts of the Tax Act, and our accounting for the income tax effects of the Tax Act related to the deferred tax rate change and the effects on executive compensation has been completed. We continue to evaluate the impact of the Tax Act on the provisional amounts related to the utilization of bonus depreciation. However, given the amount and complexity of the changes in tax law resulting from the Tax Act, including technical amendments and interpretations of regulations by the Department of Treasury and Internal Revenue Service, we continue to analyze the effects of the Tax Act on our income tax provision. We may make further refinements to our calculations considering technical guidance that may be published and will record those adjustments in the period the guidance is issued. As of August 5, 2018, we have not changed the provisional estimates recognized in fiscal 2017.

Earnings per share

Earnings per share	6 Months Ended
	Aug. 05, 2018
Earnings Per Share [Abstract]
Earnings per share	Note 6: Earnings per share Potential dilutive shares consist of the 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, calculated using the treasury-stock method. Potential dilutive shares are excluded from the computation of earnings per share (“EPS”) if their effect is anti-dilutive. Stock options for which the exercise price exceeds the average market price over the period are anti-dilutive and, accordingly, are excluded from the calculation. The weighted average anti-dilutive options excluded from the calculation of common equivalent shares were 90,143 and 99,331 in the thirteen and twenty-six The following table sets forth the computation of EPS, basic and diluted for the periods indicated: Thirteen Weeks Thirteen Weeks Ended Ended August 5, 2018 July 30, 2017 Numerator: Net income $ 33,779 $ 30,356 Denominator: Weighted average number of common shares outstanding (basic) 39,355,105 41,460,651 Weighted average dilutive impact of equity-based awards 925,196 1,370,222 Weighted average number of common and common equivalent shares outstanding (diluted) 40,280,301 42,830,873 Net income per share: Basic $ 0.86 $ 0.73 Diluted $ 0.84 $ 0.71 Twenty-six Weeks Twenty-six Weeks Ended Ended August 5, 2018 July 30, 2017 Numerator: Net income $ 75,929 $ 73,152 Denominator: Weighted average number of common shares outstanding (basic) 39,525,263 41,744,101 Weighted average dilutive impact of equity-based awards 918,938 1,438,817 Weighted average number of common and common equivalent shares outstanding (diluted) 40,444,201 43,182,918 Net income per share: Basic $ 1.92 $ 1.75 Diluted $ 1.88 $ 1.69

Share-Based Compensation

Share-Based Compensation	6 Months Ended
	Aug. 05, 2018
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 are included in general and administrative expenses and were as follows: Thirteen Weeks Ended Twenty-six Weeks Ended August 5, 2018 July 30, 2017 August 5, 2018 July 30, 2017 Stock options $ 660 1,352 $ 2,018 2,656 RSU’s and restricted stock 966 1,034 1,996 1,793 Total share-based compensation expense $ 1,626 $ 2,386 $ 4,014 $ 4,449 Transactions related to stock option awards during the twenty-six 2014 Stock Incentive Plan 2010 Stock Incentive Plan Weighted Weighted Average Average Number Exercise Number Exercise of Options Price of Options Price Outstanding at February 4, 2018 1,001,403 $ 32.55 709,979 $ 5.88 Granted 205,646 41.65 Exercised (18,523 ) 34.28 (143,097 ) 5.71 Forfeited (7,482 ) 51.28 (4,498 ) 9.34 Outstanding at August 5, 2018 1,181,044 $ 33.99 562,384 $ 5.89 Exercisable at August 5, 2018 585,814 $ 31.11 548,354 $ 5.80 The total intrinsic value of options exercised during the twenty-six Transactions related to time-based and performance-based RSU’s and restricted stock during the twenty-six Weighted Average Shares Fair Value Outstanding at February 4, 2018 184,541 $ 44.96 Granted 107,657 45.76 Change in units based on performance 50,452 31.72 Vested (115,562 ) 35.26 Forfeited (8,725 ) 45.69 Outstanding at August 5, 2018 218,363 $ 47.55 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 $7,381 as of August 5, 2018 and will be expensed over a weighted average period of 2.4 years. During the twenty-six Forfeitures are estimated at the time of grant and adjusted if necessary, in subsequent periods if actual forfeitures differ from those estimates. The forfeiture rate is based on historical experience.

Subsequent Events

Subsequent Events	6 Months Ended
	Aug. 05, 2018
Subsequent Events [Abstract]
Subsequent Events	Note 8: Subsequent Events On September 11, 2018, the Company’s Board of Director declared a quarterly cash dividend of $0.15 per share on each of its outstanding common shares, such dividend to be paid on October 10, 2018, to shareholders of record on September 25, 2018. On September 11, 2018, our Board of Directors approved an extension of our share repurchase program through the end of fiscal 2020 and approved an additional $100,000 in common shares repurchases, increasing the total share repurchase authorization to $400,000.

Summary of Significant Accoun15

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Aug. 05, 2018
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 and twenty-six 10-K 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 2018 and 2017, which end on February 3, 2019 and February 4, 2018, contain 52 and 53 weeks, respectively.
Cash and cash equivalents	Cash and cash equivalents As of August 5, 2018, the Company had no restricted cash, and the adoption of Accounting Standards Update (“ASU”) 2016-18, 2016-15,
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
Revenue recognition	Revenue recognition Food and beverage revenues are recognized when payment is tendered at the point of sale. Amusement revenues are primarily recognized upon utilization of game play credits on Power Cards purchased and used by customers to activate most of the video and redemption games. 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. Total deferred amusement revenue is included in “Accrued liabilities” in our Consolidated Balance Sheets. During the thirteen and twenty-six Proceeds from the sale of gift cards are deferred and recognized as revenue when the holder redeems the card or its likelihood of redemption becomes remote (“breakage”) and the Company determines that there is not a legal obligation to remit the unredeemed gift card balances to the relevant jurisdictions. The determination of the gift card breakage is based on the Company’s specific historical redemption patterns. Recognized gift card breakage revenue is included in “Amusements and other revenues” in the Consolidated Statements of Comprehensive Income. Total deferred revenue related to our gift cards is included in “Accrued liabilities” in our Consolidated Balance Sheets. During the thirteen and twenty-six Certain of our promotional programs include multiple performance obligations that include both a delivered and undelivered component and are discounted from the standalone selling prices of the deliverables. We allocate the entire discount to the amusement deliverable. Revenues are presented net of sales taxes. Sales tax collected is included in “Accrued liabilities” until the taxes are remitted to the appropriate taxing authorities.
Share repurchase program	Share repurchase program 10b5-1 twenty-six In our consolidated financial statements, the Company treats shares withheld for tax purposes on behalf of our employees in connection with the vesting of performance restricted stock units as common stock repurchases because they reduce the number of shares that would have been issued upon vesting. These withheld shares of common stock are not considered common stock repurchases under our authorized common stock repurchase plan. During the twenty-six
Recent accounting pronouncements	Recent accounting pronouncements 2016-02, right-of-use In January 2017, the FASB issued ASU 2017-04,

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	6 Months Ended
	Aug. 05, 2018
Text Block [Abstract]
Accrued Liabilities	Accrued liabilities consist of the following as of: August 5, 2018 February 4, 2018 Deferred amusement revenue $ 38,690 $ 33,806 Compensation and benefits 22,914 19,959 Amusement redemption liability 19,932 18,041 Rent 18,471 16,478 Property taxes 8,262 6,054 Deferred gift card revenue 6,691 7,583 Sales and use taxes 4,756 5,191 Current portion of long-term insurance 4,600 4,600 Utilities 3,845 3,554 Customer deposits 3,813 3,250 Inventory liabilities 2,453 4,336 Other (refer to Note 4) 11,462 12,309 Total accrued liabilities $ 145,889 $ 135,161

Debt (Tables)

Debt (Tables)	6 Months Ended
	Aug. 05, 2018
Debt Disclosure [Abstract]
Long-Term Debt	Long-term debt consists of the following as of: August 5, 2018 February 4, 2018 Credit facility - term $ 288,750 $ 296,250 Credit facility - revolver 74,000 71,000 Total debt outstanding 362,750 367,250 Less: Current installments - term (15,000 ) (15,000 ) Debt issuance costs - term (891 ) (1,001 ) Long-term debt, net $ 346,859 $ 351,249
Recorded Interest Expense, Net	Interest expense, net Thirteen Weeks Thirteen Weeks Ended Ended August 5, 2018 July 30, 2017 Interest expense on credit facilities $ 3,255 $ 1,998 Amortization of issuance cost 198 166 Interest income (28 ) (52 ) Capitalized interest (201 ) (115 ) Change in fair value of interest rate cap 4 66 Total interest expense, net $ 3,228 $ 2,063 Twenty-six Weeks Twenty-six Weeks Ended Ended August 5, 2018 July 30, 2017 Interest expense on credit facility $ 6,278 $ 3,706 Amortization of issuance cost 396 333 Interest income (56 ) (135 ) Capitalized interest (527 ) (256 ) Change in fair value of interest rate cap (6 ) 269 Total interest expense, net $ 6,085 $ 3,917

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Aug. 05, 2018
Commitments and Contingencies Disclosure [Abstract]
Lease Commitments	The following table sets forth our lease commitments as of August 5, 2018: 1 year or less $ 113,655 2 years 109,973 3 years 104,562 4 years 96,363 5 years 92,205 Thereafter 1,095,195 Total future payments $ 1,611,953

Earnings per share (Tables)

Earnings per share (Tables)	6 Months Ended
	Aug. 05, 2018
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: Thirteen Weeks Thirteen Weeks Ended Ended August 5, 2018 July 30, 2017 Numerator: Net income $ 33,779 $ 30,356 Denominator: Weighted average number of common shares outstanding (basic) 39,355,105 41,460,651 Weighted average dilutive impact of equity-based awards 925,196 1,370,222 Weighted average number of common and common equivalent shares outstanding (diluted) 40,280,301 42,830,873 Net income per share: Basic $ 0.86 $ 0.73 Diluted $ 0.84 $ 0.71 Twenty-six Weeks Twenty-six Weeks Ended Ended August 5, 2018 July 30, 2017 Numerator: Net income $ 75,929 $ 73,152 Denominator: Weighted average number of common shares outstanding (basic) 39,525,263 41,744,101 Weighted average dilutive impact of equity-based awards 918,938 1,438,817 Weighted average number of common and common equivalent shares outstanding (diluted) 40,444,201 43,182,918 Net income per share: Basic $ 1.92 $ 1.75 Diluted $ 1.88 $ 1.69

Share-Based Compensation (Table

Share-Based Compensation (Tables)	6 Months Ended
	Aug. 05, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of Compensation Expenses	Compensation expense related to stock options, time-based and performance-based RSU’s and restricted stock are included in general and administrative expenses and were as follows: Thirteen Weeks Ended Twenty-six Weeks Ended August 5, 2018 July 30, 2017 August 5, 2018 July 30, 2017 Stock options $ 660 1,352 $ 2,018 2,656 RSU’s and restricted stock 966 1,034 1,996 1,793 Total share-based compensation expense $ 1,626 $ 2,386 $ 4,014 $ 4,449
Transactions Related to Stock Options Awards	Transactions related to stock option awards during the twenty-six 2014 Stock Incentive Plan 2010 Stock Incentive Plan Weighted Weighted Average Average Number Exercise Number Exercise of Options Price of Options Price Outstanding at February 4, 2018 1,001,403 $ 32.55 709,979 $ 5.88 Granted 205,646 41.65 Exercised (18,523 ) 34.28 (143,097 ) 5.71 Forfeited (7,482 ) 51.28 (4,498 ) 9.34 Outstanding at August 5, 2018 1,181,044 $ 33.99 562,384 $ 5.89 Exercisable at August 5, 2018 585,814 $ 31.11 548,354 $ 5.80
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 twenty-six Weighted Average Shares Fair Value Outstanding at February 4, 2018 184,541 $ 44.96 Granted 107,657 45.76 Change in units based on performance 50,452 31.72 Vested (115,562 ) 35.26 Forfeited (8,725 ) 45.69 Outstanding at August 5, 2018 218,363 $ 47.55

Summary of Significant Accoun21

Summary of Significant Accounting Policies - Additional Information (Detail)	3 Months Ended	6 Months Ended	26 Months Ended
	Aug. 05, 2018USD ($)StatesStoresProvince$ / sharesshares	Aug. 05, 2018USD ($)StatesStoresProvinceSegment$ / sharesshares	Aug. 05, 2018USD ($)StatesStoresProvince$ / sharesshares	Feb. 04, 2018USD ($)
Summary Of Significant Accounting Policy [Line Items]
Number of stores | Stores	117	117	117
Number of states store operates | States	38	38	38
Number of operating segment | Segment		1
Number of reportable segment | Segment		1
Book overdrafts reclassified to accounts payable	$ 5,351,000	$ 5,351,000	$ 5,351,000	$ 3,416,000
Construction allowance receivables	23,448,000	$ 23,448,000	$ 23,448,000	$ 14,941,000
Long lived asset impairment loss	$ 0
Repurchase of common stock, shares | shares	728,753	1,335,061	4,538,433
Share repurchase program authorized amount	$ 300,000,000	$ 300,000,000	$ 300,000,000
Repurchase of common stock, price per shares | $ / shares	$ 46.26	$ 45.75	$ 53.28
Share repurchase program remaining authorized amount	$ 58,182,000	$ 58,182,000	$ 58,182,000
Estimated undiscounted future minimum lease commitments	1,611,953,000	1,611,953,000	$ 1,611,953,000
Amusement Revenue [Member]
Summary Of Significant Accounting Policy [Line Items]
Deferred revenue recognized	4,600,000	14,600,000
Gift Card Revenue [Member]
Summary Of Significant Accounting Policy [Line Items]
Deferred revenue recognized	900,000	2,700,000
Gift card breakage revenue	$ 130,000	$ 390,000
Dave And Busters Holdings Inc [Member]
Summary Of Significant Accounting Policy [Line Items]
Percentage of outstanding common stock owned	100.00%	100.00%	100.00%
Canada [Member]
Summary Of Significant Accounting Policy [Line Items]
Number of Canadian province | Province	1	1	1

Accrued Liabilities - Accrued L

Accrued Liabilities - Accrued Liabilities (Detail) - USD ($) $ in Thousands	Aug. 05, 2018	Feb. 04, 2018
Accrued Liabilities, Current [Abstract]
Deferred amusement revenue	$ 38,690	$ 33,806
Compensation and benefits	22,914	19,959
Amusement redemption liability	19,932	18,041
Rent	18,471	16,478
Property taxes	8,262	6,054
Deferred gift card revenue	6,691	7,583
Sales and use taxes	4,756	5,191
Current portion of long-term insurance	4,600	4,600
Utilities	3,845	3,554
Customer deposits	3,813	3,250
Inventory liabilities	2,453	4,336
Other (refer to Note 4)	11,462	12,309
Total accrued liabilities	$ 145,889	$ 135,161

Debt - Long-Term Debt (Detail)

Debt - Long-Term Debt (Detail) - USD ($) $ in Thousands	Aug. 05, 2018	Feb. 04, 2018
Debt Instrument [Line Items]
Total debt outstanding	$ 362,750	$ 367,250
Less current installments - term	(15,000)	(15,000)
Long-term debt, net	346,859	351,249
Credit Facility - Term [Member]
Debt Instrument [Line Items]
Total debt outstanding	288,750	296,250
Less current installments - term	(15,000)	(15,000)
Less debt issuance costs - term	(891)	(1,001)
Credit Facility-Revolver [Member]
Debt Instrument [Line Items]
Total debt outstanding	$ 74,000	$ 71,000

Debt - Additional Information (

Debt - Additional Information (Detail) - USD ($)	Aug. 17, 2017	Aug. 05, 2018
Minimum [Member]
Debt Instrument [Line Items]
Debt instrument interest rate		1.25%
Maximum [Member]
Debt Instrument [Line Items]
Debt instrument interest rate		2.00%
Credit Facility [Member]
Debt Instrument [Line Items]
Senior secured credit facility	$ 300,000,000
Revolving credit facility, maximum borrowing capacity	$ 500,000,000
Maturity date	Aug. 17, 2022
Revolving credit facility, letter of credit sub-facility maximum borrowing capacity	$ 35,000,000
Revolving credit facility, swingline sub-facility maximum borrowing capacity	15,000,000
Term loan repayment of principal	$ 3,750,000
Frequency of periodic payment		Quarterly
Letter of credit facility outstanding		$ 5,047,000
Borrowing available		$ 420,953,000
Weighted average interest rate on the Credit Facility		3.33%
Weighted average effective interest		3.64%
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 1.25% to 2.00% for the term loans and the revolving loans.
Debt Instrument, covenant compliance		Our credit facility contains restrictive covenants that, among other things, place 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 August 5, 2018, we were in compliance with our restrictive and financial ratio covenants.

Debt - Recorded Interest Expens

Debt - Recorded Interest Expense, Net (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 05, 2018	Jul. 30, 2017	Aug. 05, 2018	Jul. 30, 2017
Debt Disclosure [Abstract]
Interest expense on credit facilities	$ 3,255	$ 1,998	$ 6,278	$ 3,706
Amortization of issuance cost	198	166	396	333
Interest income	(28)	(52)	(56)	(135)
Capitalized interest	(201)	(115)	(527)	(256)
Change in fair value of interest rate cap	4	66	(6)	269
Total interest expense, net	$ 3,228	$ 2,063	$ 6,085	$ 3,917

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail)	3 Months Ended		6 Months Ended
	May 06, 2018USD ($)	Jul. 30, 2017USD ($)	Aug. 05, 2018USD ($)Lease_Agreementsite
Commitments and Contingencies Disclosure [Abstract]
Litigation charge		$ 2,550,000	$ 0
Legal gross settlement cost		7,500,000
Insurance recoveries		$ 4,950,000
Insurance recoveries	$ 500,000
Lease commitments for future sites | site			5
Number of additional operating lease agreements signed | Lease_Agreement			17

Commitments and Contingencies27

Commitments and Contingencies - Lease Commitments (Detail) $ in Thousands	Aug. 05, 2018USD ($)
Leases [Abstract]
1 year or less	$ 113,655
2 years	109,973
3 years	104,562
4 years	96,363
5 years	92,205
Thereafter	1,095,195
Total future payments	$ 1,611,953

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail)	6 Months Ended
	Aug. 05, 2018	Jul. 30, 2017
Income Tax Disclosure [Abstract]
Effective tax rate	22.90%	26.50%

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Detail) - shares	3 Months Ended	6 Months Ended
	Aug. 05, 2018	Aug. 05, 2018
Earnings Per Share [Abstract]
Weighted average anti-dilutive options excluded from calculation of common equivalent shares	90,143	99,331

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		6 Months Ended
	Aug. 05, 2018	Jul. 30, 2017	Aug. 05, 2018	Jul. 30, 2017
Numerator:
Net income	$ 33,779	$ 30,356	$ 75,929	$ 73,152
Denominator:
Weighted average number of common shares outstanding (basic)	39,355,105	41,460,651	39,525,263	41,744,101
Weighted average dilutive impact of equity-based awards	925,196	1,370,222	918,938	1,438,817
Weighted average number of common and common equivalent shares outstanding (diluted)	40,280,301	42,830,873	40,444,201	43,182,918
Net income per share:
Basic	$ 0.86	$ 0.73	$ 1.92	$ 1.75
Diluted	$ 0.84	$ 0.71	$ 1.88	$ 1.69

Share-Based Compensation - Summ

Share-Based Compensation - Summary of Compensation Expenses (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 05, 2018	Jul. 30, 2017	Aug. 05, 2018	Jul. 30, 2017
Share-based Compensation [Abstract]
Stock options	$ 660	$ 1,352	$ 2,018	$ 2,656
RSU's and restricted stock	966	1,034	1,996	1,793
Total share-based compensation expense	$ 1,626	$ 2,386	$ 4,014	$ 4,449

Share-Based Compensation - Tran

Share-Based Compensation - Transactions Related to Stock Option Awards (Detail)	6 Months Ended
	Aug. 05, 2018$ / sharesshares
2014 Stock Incentive Plan [Member]
Number of Options
Options outstanding at February 4, 2018 | shares	1,001,403
Granted | shares	205,646
Exercised | shares	(18,523)
Forfeited | shares	(7,482)
Outstanding at August 5, 2018 | shares	1,181,044
Exercisable at August 5, 2018 | shares	585,814
Weighted Average Exercise Price
Options outstanding at February 4, 2018 | $ / shares	$ 32.55
Granted | $ / shares	41.65
Exercised | $ / shares	34.28
Forfeited | $ / shares	51.28
Outstanding at August 5, 2018 | $ / shares	33.99
Exercisable at August 5, 2018 | $ / shares	$ 31.11
2010 Stock Incentive Plan [Member]
Number of Options
Options outstanding at February 4, 2018 | shares	709,979
Exercised | shares	(143,097)
Forfeited | shares	(4,498)
Outstanding at August 5, 2018 | shares	562,384
Exercisable at August 5, 2018 | shares	548,354
Weighted Average Exercise Price
Options outstanding at February 4, 2018 | $ / shares	$ 5.88
Exercised | $ / shares	5.71
Forfeited | $ / shares	9.34
Outstanding at August 5, 2018 | $ / shares	5.89
Exercisable at August 5, 2018 | $ / shares	$ 5.80

Share-Based Compensation - Addi

Share-Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands	6 Months Ended
	Aug. 05, 2018	Jul. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Excess income tax benefit related to stock-based compensation plans	$ 1,919	$ 10,134
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total intrinsic value of stock options exercised	7,061
Unrecognized expense related to stock option plan	$ 2,869
Unrecognized compensation expense, weighted average years	1 year 8 months 12 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 4 months 24 days
Unrecognized expense related to unvested restricted stock and RSUs	$ 7,381

Share-Based Compensation - Tr34

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]	6 Months Ended
	Aug. 05, 2018$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted Stock Awards, February 4, 2018 | shares	184,541
Restricted Stock Awards, Granted | shares	107,657
Change in units based on performance | shares	50,452
Restricted Stock Awards, Vested | shares	(115,562)
Restricted Stock Awards, Forfeited | shares	(8,725)
Restricted Stock Awards, August 5, 2018 | shares	218,363
Weighted Average Fair Value, February 4, 2018 | $ / shares	$ 44.96
Weighted Average Fair Value, Granted | $ / shares	45.76
Change in units based on performance | $ / shares	31.72
Weighted Average Fair Value, Vested | $ / shares	35.26
Weighted Average Fair Value, Forfeited | $ / shares	45.69
Weighted Average Fair Value, August 5, 2018 | $ / shares	$ 47.55

Subsequent Events - Additional

Subsequent Events - Additional Information (Detail) - USD ($)	Sep. 11, 2018	Aug. 05, 2018
Subsequent Events [Line Items]
Share repurchase program authorized amount		$ 300,000,000
Subsequent Events [Member]
Subsequent Events [Line Items]
Dividend declared date	Sep. 11, 2018
Dividend payable date	Oct. 10, 2018
Dividend payable, date of record	Sep. 25, 2018
Cash dividend declared	$ 0.15
Stock Repurchase Program Additional Amount Authorized	$ 100,000,000
Share repurchase program authorized amount	$ 400,000,000