| | EXHIBIT 99 |
News Release | |
| | For further information contact: |
| | Jeff Elliott or Geralyn DeBusk |
| | Halliburton Investor Relations |
| | 972-458-8000 |
Dave & Buster’s, Inc. Reports a 3.1 Percent Increase in Comparable Store Sales
and a 7.8 Percent Increase in Adjusted EBITDA for its Fiscal 2007 Third Quarter
DALLAS—December 18, 2007—Dave & Buster's, Inc., a leading operator of upscale restaurant/entertainment complexes, today announced results for its 2007 third quarter ended November 4, 2007.
Total revenues increased 6.4% to $123.7 million in the third quarter of 2007, compared to $116.3 million in the third quarter of 2006. This revenue growth was comprised primarily of a 3.1% increase in comparable store sales (a 4.5% increase on a comparable calendar week basis). Total Food and Beverage revenues increased 3.6%, while revenues from Amusements and Other increased 9.9%.
EBITDA (Modified) for the third quarter of 2007 of $11.5 million exceeded prior year EBITDA (Modified) of $10.4 million by 10.5%. Adjusted EBITDA, which excludes Startup costs and other non-recurring charges, increased 7.8% to $12.4 million, versus $11.5 million in the third quarter of fiscal 2006.
Total revenues for the 39-week period increased 6.7% to $390.8 million from $366.3 million for the comparable period last year. This revenue growth was comprised primarily of a 4.0% increase in comparable store sales (a 4.1% increase on a comparable calendar week basis). Total Food and Beverage revenues increased 5.0%, while revenues from Amusements and Other increased 8.8%.
EBITDA (Modified) for the 39-week period of $48.7 million exceeded prior year EBITDA (Modified) of $37.0 million by 31.6%. Adjusted EBITDA, which excludes Startup costs and other non-recurring charges, increased 22.6% to $53.7 million, versus $43.8 million for the comparable period last year.
“Our unique offering of food and games again combined to produce outstanding results for the Third Quarter,” said Steve King , the Company’s Chief Executive Officer. “Strong calendar comp store sales growth of 4.5% during the Third Quarter and ongoing leverage of our primary operating costs reinforces our expectations for 2007.”
Non-GAAP Financial Measures
A reconciliation of EBITDA (Modified) and Adjusted 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 third quarter results on Tuesday, December 18, 2007, at 10:00 a.m. Central Time (11:00 a.m. Eastern Time). To participate in the conference call, please dial (866) 765-2661 a few minutes prior to the start time and reference code # 27120766. Additionally, a live and archived webcast of the conference call will be available on the Company's Web site, www.daveandbusters.com.
Celebrating over 25 years of operations, Dave & Buster's was founded in 1982 and is one of the country's leading upscale restaurant/entertainment concepts in the United States and in Canada. The Company operates 49 stores in North America. More information on the Company is available on the Company's Web site, www.daveandbusters.com.
The statements contained in this release that are not historical facts are forward-looking statements. These forward-looking statements involve risks and uncertainties and, consequently, could be affected by our level of indebtedness, general business and economic conditions, the impact of competition, the seasonality of the company’s business, adverse weather conditions, future commodity prices, guest and employee complaints and litigation, fuel and utility costs, labor costs and availability, changes in consumer spending, changes in demographic trends, unfavorable publicity, our ability to open new complexes, acts of God, and governmental regulations.
DAVE & BUSTER’S, INC.
Condensed Consolidated Balance Sheets
(in thousands)
ASSETS | | November 4, 2007 | | February 4, 2007 | |
| | | (unaudited) | | (audited) | |
| Current assets: | | | | | | | |
| Cash and cash equivalents | | $ | 13,502 | | $ | 10,372 | |
| Other current assets | | | 32,490 | | | 28,338 | |
| Total current assets | | | 45,992 | | | 38,710 | |
| | | | | | | | |
| Property and equipment, net | | | 302,629 | | | 316,840 | |
| | | | | | | | |
| Intangible and other assets, net | | | 149,500 | | | 151,263 | |
| | | | | | | | |
| Total assets | | $ | 498,121 | | $ | 506,813 | |
| | | | | | | | |
| | | | | | | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | |
| | | | | | | | |
| Total current liabilities | | $ | 71,845 | | $ | 70,140 | |
| | | | | | | | |
| Other long-term liabilities | | | 84,588 | | | 86,593 | |
| | | | | | | | |
| Long-term debt, less current liabilities | | | 254,625 | | | 253,375 | |
| | | | | | | | |
| Stockholders’ equity | | | 87,063 | | | 96,705 | |
| | | | | | | | |
| Total liabilities and stockholders’ equity | | $ | 498,121 | | $ | 506,813 | |
DAVE & BUSTER’S, INC.
Consolidated Statements of Operations
(dollars in thousands)
(unaudited)
| | | 13 Weeks Ended November 4, 2007 | | 13 Weeks Ended October 29, 2006 | |
| | | | | | | | | | |
| Food and beverage revenues | | $ | 67,079 | | | 54.2 | % | $ | 64,727 | | | 55.7 | % |
| Amusement and other revenues | | | 56,642 | | | 45.8 | % | | 51,543 | | | 44.3 | % |
| Total revenues | | | 123,721 | | | 100.0 | % | | 116,270 | | | 100.0 | % |
| | | | | | | | | | | | | | |
| Cost of products | | | 24,986 | | | 20.2 | % | | 24,153 | | | 20.8 | % |
| Store operating expenses | | | 78,729 | | | 63.6 | % | | 72,340 | | | 62.2 | % |
| General and administrative expenses | | | 8,725 | | | 7.1 | % | | 8,450 | | | 7.3 | % |
| Depreciation and amortization | | | 12,943 | | | 10.5 | % | | 11,972 | | | 10.3 | % |
| Startup costs | | | 675 | | | 0.5 | % | | 814 | | | 0.7 | % |
| Total operating expenses | | | 126,058 | | | 101.9 | % | | 117,729 | | | 101.3 | % |
| | | | | | | | | | | | | | |
| Operating loss | | | (2,337 | ) | | (1.9 | )% | | (1,459 | ) | | (1.3 | )% |
| Interest expense, net | | | 7,644 | | | 6.2 | % | | 7,200 | | | 6.2 | % |
| | | | | | | | | | | | | | |
| Loss before provision for income taxes | | | (9,981 | ) | | (8.1 | )% | | (8,659 | ) | | (7.5 | )% |
| Provision (benefit) for income taxes | | | 1,298 | | | 1.0 | % | | (3,442 | ) | | (3.0 | )% |
| Net loss | | $ | (11,279 | ) | | (9.1 | )% | $ | (5,217 | ) | | (4.5 | )% |
| | | | | | | | | | | | | | |
| Other information: | | | | | | | | | | | | | |
| Company operated stores open at end of period | | | 49 | | | | | | 47 | | | | |
| | | | | | | | | | | | | | |
| The following table sets forth a reconciliation of net loss to EBITDA (Modified) and Adjusted EBIDTA for the periods shown: |
| | | | | | | | | | |
| Total net loss | | $ | (11,279 | ) | | | | $ | (5,217 | ) | | | |
| Add back: Provision (benefit) for income taxes | | | 1,298 | | | | | | (3,442 | ) | | | |
| Interest expense, net | | | 7,644 | | | | | | 7,200 | | | | |
| Depreciation and amortization | | | 12,943 | | | | | | 11,972 | | | | |
| Loss (gain) on asset disposal | | | 545 | | | | | | (108 | ) | | | |
| Stock-based compensation | | | 344 | | | | | | - | | | | |
| EBITDA (Modified) (1) | | | 11,495 | | | | | | 10,405 | | | | |
| Add back: Startup costs | | | 675 | | | | | | 814 | | | | |
| Wellspring expense reimbursement | | | 188 | | | | | | 188 | | | | |
| Non-recurring Expenses: | | | | | | | | | | | | | |
| Transaction costs | | | - | | | | | | 65 | | | | |
| Change in control expense | | | - | | | | | | (6 | ) | | | |
| Adjusted EBITDA (1) | | $ | 12,358 | | | | | $ | 11,466 | | | | |
DAVE & BUSTER’S, INC.
Consolidated Statements of Operations
(dollars in thousands)
(unaudited)
| | | 39 Weeks Ended November 4, 2007 (Successor) | | 39 Weeks Ended October 29, 2006 | |
| | | | | | | | | | | | | | |
| Food and beverage revenues | | $ | 211,253 | | | 54.0 | % | $ | 201,166 | | | 54.9 | % |
| Amusement and other revenues | | | 179,596 | | | 46.0 | % | | 165,098 | | | 45.1 | % |
| Total revenues | | | 390,849 | | | 100.0 | % | | 366,264 | | | 100.0 | % |
| | | | | | | | | | | | | | |
| Cost of products | | | 77,881 | | | 19.9 | % | | 75,658 | | | 20.6 | % |
| Store operating expenses | | | 235,331 | | | 60.3 | % | | 221,873 | | | 60.6 | % |
| General and administrative expenses | | | 30,224 | | | 7.7 | % | | 27,697 | | | 7.5 | % |
| Depreciation and amortization | | | 38,355 | | | 9.8 | % | | 34,495 | | | 9.4 | % |
| Startup costs | | | 1,032 | | | 0.3 | % | | 3,921 | | | 1.1 | % |
| Total operating expenses | | | 382,823 | | | 98.0 | % | | 363,644 | | | 99.2 | % |
| | | | | | | | | | | | | | |
| Operating income | | | 8,026 | | | 2.0 | % | | 2,620 | | | 0.8 | % |
| Interest expense, net | | | 21,565 | | | 5.5 | % | | 19,618 | | | 5.4 | % |
| | | | | | | | | | | | | | |
| Loss before provision for income taxes | | | (13,539 | ) | | (3.5 | )% | | (16,998 | ) | | (4.6 | )% |
| Benefit for income taxes | | | (746 | ) | | (0.2 | )% | | (6,366 | ) | | (1.7 | )% |
| Net loss | | $ | (12,793 | ) | | (3.3 | )% | $ | (10,632 | ) | | (2.9 | )% |
| | | | | | | | | | | | | | |
| Other information: | | | | | | | | | | | | | |
| Company operated stores open at end of period | | | 49 | | | | | | 47 | | | | |
| | | | | | | | | | | | | | |
| The following table sets forth a reconciliation of net loss to EBITDA (Modified) and Adjusted EBIDTA for the periods shown: |
| | | | | | | | | | | | | | |
| Total net loss | | $ | (12,793 | ) | | | | $ | (10,632 | ) | | | |
| Add back: Benefit for income taxes | | | (746 | ) | | | | | (6,366 | ) | | | |
| Interest expense, net | | | 21,565 | | | | | | 19,618 | | | | |
| Depreciation and amortization | | | 38,355 | | | | | | 34,495 | | | | |
| Loss (gain) on asset disposal | | | 1,183 | | | | | | (141 | ) | | | |
| Stock-based compensation | | | 1,170 | | | | | | 61 | | | | |
| EBITDA (Modified) (1) | | | 48,734 | | | | | | 37,035 | | | | |
| Add back: Startup costs | | | 1,032 | | | | | | 3,921 | | | | |
| Wellspring expense reimbursement | | | 563 | | | | | | 491 | | | | |
| Non-recurring Expenses: | | | | | | | | | | | | | |
| Transaction costs | | | - | | | | | | 1,061 | | | | |
| Change in control expense | | | 3,337 | | | | | | 1,277 | | | | |
| Adjusted EBITDA (1) | | $ | 53,666 | | | | | $ | 43,785 | | | | |
NOTE
(1) EBITDA (Modified), a non-GAAP measure, is defined as net income (loss) before income tax expense (benefit), interest expense (net), depreciation, amortization, loss (gain) on asset disposal and stock-based compensation expense. Adjusted EBITDA, also a non-GAAP measure, is defined as EBITDA (Modified) plus startup costs, Wellspring expense reimbursement, non-cash and non-recurring charges. The company believes that EBITDA (Modified) and Adjusted EBITDA (collectively, “EBITDA - Based Measures”) provide useful information to debt holders regarding the Company’s operating performance and its capacity to incur and service debt and fund capital expenditures. The Company believes that the EBITDA - Based Measures are used by many investors, analysts and rating agencies as a measure of performance. In addition, Adjusted EBITDA is approximately equal to “Consolidated EBITDA” as defined in our Senior Credit Facility and indentures relating to the Company’s senior notes. Neither of the EBITDA - Based Measures is defined by GAAP and neither should be considered in isolation or as an alternative to other financial data prepared in accordance with GAAP or as an indicator of the Company’s operating performance. EBITDA (Modified) and Adjusted EBITDA as defined in this release may differ from similarly titled measures presented by other companies.
