EXHIBIT 99
News Release
| | For further information contact: |
| | Jeff Elliott or Geralyn DeBusk |
| | Halliburton Investor Relations |
| | 972-458-8000 |
Dave & Buster’s, Inc. Reports 5.6 Percent Increase in
Same Store Sales for the Fiscal 2006 Second Quarter
DALLAS—September 8, 2006—Dave & Buster’s, Inc., a leading operator of upscale restaurant/entertainment complexes, today announced results for its second quarter ended July 30, 2006.
Total revenue for the second quarter increased 11.1 percent, or $12.3 million, to $123.2 million from $110.8 million in the prior year’s comparable quarter. Food and beverage revenue increased 11.6 percent, and amusement and other revenue increased 10.6 percent. In addition, the Company reported a 5.6 percent increase in same store sales for the second quarter, and a 5.2 percent increase in same store sales for its previously acquired Jillian’s stores. EBITDA remained flat on a year over year basis at $12.0 million for the second fiscal quarter. Results for the quarter were impacted by $2.4 million in pre-opening and merger related costs compared to $1.4 million of pre-opening and non-recurring Jillian’s costs in the second quarter of 2005.
Total revenues for the 26-week period increased 10.3 percent to $250.0 million from $226.6 million for the comparable period last year. Food and beverage revenue increased 12.0 percent, and amusement and other revenue increased 8.4 percent. Year to date, same store sales for the Dave and Buster’s concept increased by 5.4 percent, while same store sales for the previously acquired Jillian’s stores increased by 2.7 percent. Year to date EBITDA decreased 13.3 percent to $26.6 million from $30.7 million last year. Year to date results were impacted by $5.9 million in pre-opening and merger related costs versus $2.8 million in pre-opening and non-recurring Jillian’s costs in the prior year.
“We are extremely encouraged by our team’s ability to deliver such outstanding sales increases in spite of an uncertain economic environment,” stated Steve King, the Company’s Chief Financial Officer. “While we made progress in our EBITDA growth during the quarter, excluding pre-opening and merger costs, we remain focused on improving margins and maintaining our sales momentum.”
Non-GAAP Financial Measures
A reconciliation of EBITDA to net income, the most directly comparable financial measure presented in accordance with GAAP, is set forth in the attachment to this release.
The Company will hold a conference call to discuss second quarter results on Tuesday, September 12, 2006, at 2:30 PM Central time. To participate in the conference call, please dial 877-598-7022 a few minutes prior to the start time and reference code # 6093572. An archived replay of the teleconference will be available approximately two hours following the call and will be posted on the Company’s Web site. To access the replay call 800-642-1687 and reference the same confirmation code as listed above.
Celebrating over 23 years of operations, Dave & Buster’s was founded in 1982 and is one of the country’s leading upscale restaurant/entertainment concepts with 47 locations throughout the United States and in Canada. More information on the Company is available on the Company’s Web site, www.daveandbusters.com.
“Safe Harbor” Statements Under the Private Securities Litigation Reform Act of 1995 Certain information contained in this press release includes forward-looking statements. Forward-looking statements include statements regarding our expectations, beliefs, intentions, plans, projections, objectives, goals, strategies, future events or performance and underlying assumptions and other statements which are other than statements of historical facts. These statements may be identified, without limitations, by the use of forward-looking terminology such as “may,” “will,” “anticipates,” “expects,” “projects,” “believes,” “intends,” “should,” or comparable terms or the negative thereof. All forward-looking statements included in this press release are based on information available to us on the date hereof. Such statements speak only as of the date hereof. These statements involve risks and uncertainties that could cause actual results to differ materially from those described in the statements. These risks and uncertainties include, but are not limited to, the following: our ability to open new high-volume restaurant/entertainment complexes; our ability to raise and access sufficient capital in the future; changes in consumer preferences, general economic conditions or consumer discretionary spending; the outbreak or continuation of war or other hostilities involving the United States; potential fluctuation in our quarterly operating results due to seasonality and other factors; the continued service of key management personnel; our ability to attract, motivate and retain qualified personnel; the impact of federal, state or local government regulations relating to our personnel or the sale of food or alcoholic beverages; the impact of litigation; the effect of competition in our industry; additional costs associated with compliance with the Sarbanes-Oxley Act and related regulations and requirements; and other risk factors described from time to time in our reports filed with the SEC.
News Release
| | For more information contact: |
| | Jeff Elliott or Geralyn DeBusk |
Halliburton Investor Relations | | |
972-458-8000 | | |
DAVE & BUSTER’S, INC.
Condensed Consolidated Balance Sheets
(in thousands)
| | July 30, 2006 | | January 29, 2006 | |
| | (unaudited) | | (audited) | |
ASSETS | | | | | |
Current assets: | | | | | |
Cash and cash equivalents | | $ | 653 | | $ | 7,582 | |
Other current assets | | 26,237 | | 19,648 | |
Total current assets | | 26,890 | | 27,230 | |
Property and equipment, net | | 342,282 | | 374,616 | |
Intangible and other assets | | 153,414 | | 21,216 | |
Total assets | | $ | 522,586 | | $ | 423,062 | |
| | | | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | |
Total current liabilities | | $ | 49,486 | | $ | 64,436 | |
Other long-term liabilities | | 91,525 | | 82,856 | |
Long-term debt (including payable to dissenters) | | 279,311 | | 70,550 | |
Stockholders’ equity | | 102,264 | | 205,220 | |
Total liabilities and stockholders’ equity | | $ | 522,586 | | $ | 423,062 | |
DAVE & BUSTER’S, INC.
Consolidated Statements of Operations
(dollars in thousands)
(unaudited)
| | 13 Weeks Ended | | 13 Weeks Ended | |
| | July 30, 2006 | | July 31, 2005 | |
| | (Combined) | | (pre Merger) | |
Food and beverage revenues | | $ | 67,374 | | 54.7 | % | $ | 60,378 | | 54.5 | % |
Amusement and other revenues | | 55,777 | | 45.3 | % | 50,451 | | 45.5 | % |
Total revenues | | 123,151 | | 100.0 | % | 110,829 | | 100.0 | % |
Cost of products | | 25,427 | | 20.6 | % | 22,650 | | 20.4 | % |
Store operating expenses | | 75,968 | | 61.7 | % | 68,170 | | 61.5 | % |
General and administrative expenses | | 8,959 | | 7.3 | % | 7,204 | | 6.5 | % |
Depreciation and amortization | | 11,455 | | 9.3 | % | 12,317 | | 11.1 | % |
Startup costs | | 821 | | 0.7 | % | 804 | | 0.7 | % |
Total operating expenses | | 122,630 | | 99.6 | % | 111,145 | | 100.2 | % |
| | | | | | | | | |
Operating income (loss) | | 521 | | 0.4 | % | (316 | ) | (0.2 | )% |
Interest expense, net | | 6,525 | | 5.3 | % | 1,661 | | 1.5 | % |
Income (loss) before provision for income taxes | | (6,004 | ) | (4.9 | )% | (1,977 | ) | (1.8 | )% |
Provision (benefit) for income taxes | | (2,129 | ) | (1.7 | )% | (721 | ) | (0.7 | )% |
Net income (loss) | | $ | (3,875 | ) | (3.1 | )% | $ | (-1,256 | ) | (1.1 | )% |
| | | | | | | | | |
Other information: | | | | | | | | | |
Company operated stores open | | | | | | | | | |
| | 47 | | | | 44 | | | |
EBITDA, which is earnings before interest, taxes, depreciation and amortization, is used by management, bankers and investors to evaluate a company’s ability to repay debt and for compliance of certain debt covenants.
| | | | | |
Total net income (loss) | | $ | (3,875 | ) | $ | (1,256 | ) |
Add back: depreciation and amortization | | 11,455 | | 12,317 | |
interest expense, net | | 6,525 | | 1,661 | |
provision for income taxes | | (2,129 | ) | (721 | ) |
| | $ | 11,976 | | $ | 12,001 | |
DAVE & BUSTER’S, INC.
Consolidated Statements of Operations
(dollars in thousands,)
(unaudited)
| | 26 Weeks Ended | | 26 Weeks Ended | |
| | July 30, 2006 | | July 31, 2005 | |
| | (Combined) | | (pre Merger) | |
Food and beverage revenues | | $ | 136,438 | | 54.2 | % | $ | 121,769 | | 53.7 | % |
Amusement and other revenues | | 113,556 | | 45.8 | % | 104,795 | | 46.3 | % |
Total revenues | | 249,994 | | 100.0 | % | 226,564 | | 100.0 | % |
Cost of products | | 51,135 | | 19.0 | % | 45,155 | | 19.9 | % |
Store operating expenses | | 151,439 | | 60.5 | % | 134,932 | | 59.6 | % |
General and administrative expenses | | 17,711 | | 7.1 | % | 14,893 | | 6.6 | % |
Depreciation and amortization | | 22,524 | | 9.0 | % | 22,058 | | 9.7 | % |
Startup costs | | 3,107 | | 1.2 | % | 885 | | 0.4 | % |
Total operating expenses | | 245,916 | | 98.3 | % | 217,923 | | 96.2 | % |
Operating income (loss) | | 4,078 | | 1.7 | % | 8,641 | | 3.8 | % |
Interest expense, net | | 12,418 | | 5.0 | % | 3,434 | | 1.5 | % |
Income(loss)before provision for income taxes | | (8,340 | ) | (3.3 | )% | 5,207 | | 2.3 | % |
Provision (benefit) for income taxes | | (2,923 | ) | (1.1 | )% | 1,901 | | 0.8 | % |
Net income (loss) | | $ | (5,417 | ) | (2.2 | )% | $ | 3,306 | | 1.5 | % |
| | | | | | | | | |
| | | | | | | | | |
Other information: | | | | | | | | | |
Company operated stores open | | 47 | | | | 44 | | | |
EBITDA, which is earnings before interest, taxes, depreciation and amortization, is used by management, bankers and investors to evaluate a company’s ability to repay debt and for compliance of certain debt covenants.
Total net income (loss) | | $ | (5,417 | ) | $ | 3,306 | |
Add back: depreciation and amortization | | 22,524 | | 22,058 | |
interest expense, net | | 12,418 | | 3,434 | |
provision for income taxes | | (2,923 | ) | 1,901 | |
| | $ | 26,602 | | $ | 30,699 | |
DAVE & BUSTER’S, INC.
Consolidates Statements of Cash Flow
(dollars in thousands)
(unaudited)
| | 26 Weeks Ended | | 26 Weeks Ended | |
| | July 30, 2006 | | July 31, 2005 | |
| | (Combined) | | (pre-Merger) | |
Cash flows from operating activities: | | | | | |
Net income (loss) | | $ | (5,417 | ) | $ | 3,306 | |
Adjustments to reconcile income to net cash provided by operating activities: | | | | | |
Depreciation and amortization | | 22,524 | | 22,058 | |
Changes in operating assets and liabilities | | 4,448 | | (1,378 | ) |
Other, net | | (2,264 | ) | 962 | |
Net cash provided by operating activities | | 19,291 | | 24,948 | |
Capital expenditures | | (25,342 | ) | (22,556 | ) |
Purchase of Predecessor common stock and other | | (274,542 | ) | 111 | |
Net cash used in investing activities | | (299,884 | ) | (22,445 | ) |
Net cash provided by (used in) financing activities | | 273,664 | | (3,341 | ) |
Increase (decrease) in cash and cash equivalents | | (6,929 | ) | (838 | ) |
Beginning cash and cash equivalents | | 7,582 | | 7,624 | |
Ending cash and cash equivalents | | $ | 653 | | $ | 6,786 | |
