Dave & Busters 8-K Dave & Buster’s, Inc. Reports Financial Results

EXHIBIT 99

News Release   For further information contact: Jeff Elliott or Geralyn DeBusk Halliburton Investor Relations 972-458-8000

Dave & Buster’s, Inc. Reports Financial Results

for its Fiscal 2010 Third Quarter

DALLAS—December 14 2010—Dave & Buster's, Inc., a leading operator of high volume entertainment/dining complexes, today announced results for its third quarter ended October 31, 2010.

Total revenues decreased 0.5% to $116.6 million in the third quarter of 2010, compared to $117.2 million in the third quarter of 2009. The year-over-year revenue decline was driven by a 1.3% decline in comparable store sales and the loss of $2.3 million in revenues associated with the flood-related closure of our store in Nashville, Tennessee. These revenue declines were partially offset by a $3.1 million increase in revenues from non-comparable stores and other revenue sources. Total Food and Beverage revenues decreased 1.6%, while revenues from Amusements and Other decreased 0.6%.

Adjusted EBITDA increased 14.6% to $13.1 million versus $11.4 million in the third quarter of fiscal 2009.

Total revenues for the 39-week period decreased 0.3% to $386.1 million from $387.1 million for the comparable period last year. This revenue reduction was comprised of a 3.0% decline in comparable store sales and the loss of $4.7 million in revenues associated with the flood-related closure of the Company’s store in Nashville, Tennessee. These revenue declines were partially offset by an $14.6 million increase in revenues from non-comparable stores and other revenue sources. Total Food and Beverage revenues decreased 1.3%, while revenues from Amusements and Other increased 0.8%.

Adjusted EBITDA for the 39-week period increased 0.1% to $58.3 million versus $58.2 million for the comparable period last year. The Adjusted EBITDA for the quarter and year-to-date was not adversely affected by the closure of our Nashville store as the result of coverage under our business interruption insurance policy.

"We have seen a strengthening in both our walk-in and special events business, and the improved profitability for the third quarter reflects this trend.” said Steve King, Chief Executive Officer. “We're also encouraged by early fourth quarter results.”

Non-GAAP Financial Measures

A reconciliation of EBITDA 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 14, 2010, 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 conference ID# 30468102. Additionally, a live and archived webcast of the conference call will be available on the Company's website, www.daveandbusters.com.

Founded in 1982 and headquartered in Dallas, Texas, Dave & Buster’s is the premier national owner and operator of 57 high-volume venues that offer interactive entertainment options for adults and families, such as skill/sports-oriented redemption games and technologically advanced video and simulation games, combined with a full menu of high quality food and beverages. Dave & Buster’s currently has stores in 24 states and Canada. For additional information on Dave & Buster’s, please visit 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 and corporate spending, changes in demographic trends, changes in governmental regulations, unfavorable publicity, our ability to open new stores, and acts of God.

DAVE & BUSTER’S, INC.

Condensed Consolidated Balance Sheets

(in thousands)

ASSETS	October 31, 2010		January 31, 2010
	(unaudited)		(audited)
Current assets:
Cash and cash equivalents	$	18,886	$	16,682
Other current assets		38,965		30,104
Total current assets	$	57,851	$	46,786
Property and equipment, net		306,072		294,151
Intangible and other assets, net		378,860		142,703
Total assets	$	742,783	$	483,640
LIABILITIES AND STOCKHOLDERS' EQUITY
Total current liabilities	$	73,064	$	74,805
Other long-term liabilities		88,370		89,775
Long-term debt, less current liabilities, net unamortized discount		346,355		226,414
Stockholders' equity		234,994		92,646
Total liabilities and stockholders' equity	$	742,783	$	483,640

DAVE & BUSTER’S, INC.

Consolidated Statements of Operations

(dollars in thousands)

(unaudited)

	13 Weeks Ended				13 Weeks Ended
	October 31, 2010				November 1, 2009
Food and beverage revenues	$	59,594		51.1	$	60,549		51.7
Amusement and other revenues		56,996		48.9		56,636		48.3
Total revenues		116,590		100.0		117,185		100.0
Cost of products		23,378		20.1		23,636		20.2
Store operating expenses		73,663		63.1		75,842		64.7
General and administrative expenses		8,379		7.2		7,202		6.2
Depreciation and amortization		11,896		10.2		13,932		11.9
Pre-opening costs		371		0.3		983		0.8
Total operating expenses		117,687		100.9		121,595		103.8
Operating income (loss)		(1,097	)	-0.9		(4,410	)	-3.8
Interest expense, net		8,388		7.2		5,598		4.8
Income (loss) before provision for income taxes		(9,485	)	-8.1		(10,008	)	-8.6
Income tax provision (benefit)		(3,257	)	-2.8		(4,518	)	-3.9
Net income (loss)	$	(6,228	)	-5.3	$	(5,490	)	-4.7
Other information:
Stores open at end of period (1)		58				56

The following table sets forth a reconciliation of net income (loss) to EBITDA and Adjusted EBITDA for the periods shown:

Total net income		$	(6,228	)	$	(5,490	)
Add back: Provision for income taxes			(3,257	)		(4,518	)
Interest expense, net			8,388			5,598
Depreciation and amortization			11,896			13,932
EBITDA			10,799			9,522
Add back:	Loss on asset disposal		357			414
	Gain on Acquisition of limited partnership		-			(18
	Share-based compensation		382			261
	Currency translation (gain) loss		(55	)		11
	Pre-opening costs.		370			983
	Affiliate expense reimbursement		65			188
	Severance		967			(24	)
	Amusement revenue deferral and
	redemption liability adjustments		155			104
	Transaction costs….		74			-
Adjusted EBITDA (2)		$	13,114		$	11,441

DAVE & BUSTER’S, INC.

Consolidated Statements of Operations

(dollars in thousands)

(unaudited)

	39 Weeks Ended				39 Weeks Ended
	October 31, 2010				November 1, 2009
Food and beverage revenues	$	195,502		50.6	$	198,140		51.2
Amusement and other revenues		190,579		49.4		188,998		48.8
Total revenues		386,081		100.0		387,138		100.0
Cost of products		77,456		20.1		76,797		19.8
Store operating expenses		229,237		59.4		232,187		60.0
General and administrative expenses		34,573		9.0		22,279		5.8
Depreciation and amortization		37,112		9.6		39,833		10.3
Pre-opening costs		1,837		0.4		3,181		0.8
Total operating expenses		380,215		98.5		374,277		96.7
Operating income (loss)		5,866		1.5		12,861		3.3
Interest expense, net		24,141		6.2		16,782		4.3
Income (loss) before provision for income taxes		(18,275	)	-4.7		(3,921	)	-1.0
Income tax provision (benefit)		(6,479		-1.6		(3,661	)	-0.9
Net income (loss)	$	(11,796	)	-3.1	$	(260	)	-0.1
Other information:
Stores open at end of period (1)		58				56

The following table sets forth a reconciliation of net income (loss) to EBITDA and Adjusted EBITDA for the periods shown:

Total net income		$	(11,796	)	$	(260	)
Add back:	Provision for income taxes		(6,479	)		(3,661	)
	Interest expense, net		24,141			16,782
	Depreciation and amortization		37,112			39,833
EBITDA			42,978			52,694
Add back:	Loss on asset disposal		930			1,031
	Gain on Acquisition of limited partnership		-			(357	)
	Share-based compensation		2,228			475
	Currency translation (gain) loss		(89	)		(124	)
	Pre-opening costs		1,836			3,181
	Affiliate expense reimbursement		422			563
	Severance		967			194
	Amusement revenue deferral and
	redemption liability adjustments		583			587
	Transaction costs.		8,454			-
Adjusted EBITDA (2)		$	58,309		$	58,244

NOTE

(1) The number of stores open at October 31, 2010 includes our stores in Roseville, California and Wauwatosa, Wisconsin which opened on May 3, 2010 and March 1, 2010, respectively. Also included in the store count is one franchise location in Canada and our location in Nashville, Tennessee, which temporarily closed on May 2, 2010 due to flooding. The Nashville location remains closed as of October 31, 2010.

(2) EBITDA, a non-GAAP measure, is defined as net income (loss) before income tax expense (benefit), interest expense (net) and depreciation and amortization. Adjusted EBITDA, also a non-GAAP measure, is defined as EBITDA plus share-based compensation expense, pre-opening costs, Affiliate expense reimbursement, loss on asset disposal and other non-cash or non-recurring charges. The company believes that EBITDA 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 and Adjusted EBITDA as defined in this release may differ from similarly titled measures presented by other companies.