Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Nov. 03, 2013 | Dec. 16, 2013 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 3-Nov-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Entity Registrant Name | 'DAVE & BUSTERS INC | ' |
Entity Central Index Key | '0000943823 | ' |
Current Fiscal Year End Date | '--02-03 | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 100 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Nov. 03, 2013 | Feb. 03, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $45,368 | $36,117 |
Inventories | 15,713 | 14,849 |
Prepaid expenses | 9,837 | 9,371 |
Deferred income taxes | 16,338 | 18,209 |
Income taxes receivable | 284 | 1,120 |
Other current assets | 5,720 | 12,152 |
Total current assets | 93,260 | 91,818 |
Property and equipment (net of $181,199 and $139,457 accumulated depreciation as of November 3, 2013 and February 3, 2013, respectively) | 368,507 | 337,239 |
Tradenames | 79,000 | 79,000 |
Goodwill | 272,341 | 272,278 |
Other assets and deferred charges | 22,399 | 24,218 |
Total assets | 835,507 | 804,553 |
Current liabilities: | ' | ' |
Current installments of long-term debt (Note 3) | 1,500 | 1,500 |
Accounts payable | 36,002 | 23,878 |
Accrued liabilities (Note 2) | 78,021 | 67,124 |
Income taxes payable | 1,641 | 192 |
Deferred income taxes | 498 | 189 |
Total current liabilities | 117,662 | 92,883 |
Deferred income taxes | 21,843 | 24,887 |
Deferred occupancy costs | 72,805 | 69,544 |
Other liabilities | 13,178 | 12,684 |
Long-term debt, less current installments, net of unamortized discount (Note 3) | 342,638 | 343,579 |
Commitments and contingencies (Note 5) | ' | ' |
Stockholder's equity: | ' | ' |
Common stock, $0.01 par value, 1,000 authorized; 100 issued and outstanding as of November 3, 2013 and February 3, 2013 | ' | ' |
Preferred stock, 10,000,000 authorized; none issued | ' | ' |
Paid-in capital | 247,838 | 246,929 |
Accumulated other comprehensive income | 76 | 252 |
Retained earnings | 19,467 | 13,795 |
Total stockholder's equity | 267,381 | 260,976 |
Total liabilities and stockholder's equity | $835,507 | $804,553 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Nov. 03, 2013 | Feb. 03, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Property and equipment, accumulated depreciation | $181,199 | $139,457 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 1,000 | 1,000 |
Common stock, shares issued | 100 | 100 |
Common stock, shares outstanding | 100 | 100 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 03, 2013 | Oct. 28, 2012 | Nov. 03, 2013 | Oct. 28, 2012 |
Food and beverage revenues | $69,236 | $63,159 | $222,508 | $213,734 |
Amusement and other revenues | 73,094 | 67,907 | 241,700 | 228,747 |
Total revenues | 142,330 | 131,066 | 464,208 | 442,481 |
Cost of food and beverage | 17,715 | 15,716 | 55,988 | 52,446 |
Cost of amusement and other | 10,992 | 10,505 | 35,255 | 34,117 |
Total cost of products | 28,707 | 26,221 | 91,243 | 86,563 |
Operating payroll and benefits | 36,170 | 33,735 | 108,716 | 105,704 |
Other store operating expenses | 51,346 | 44,595 | 150,107 | 143,873 |
General and administrative expenses | 8,983 | 12,242 | 26,905 | 30,099 |
Depreciation and amortization expense | 15,683 | 15,746 | 49,333 | 45,573 |
Pre-opening costs | 2,333 | 1,089 | 5,175 | 1,798 |
Total operating costs | 143,222 | 133,628 | 431,479 | 413,610 |
Operating income (loss) | -892 | -2,562 | 32,729 | 28,871 |
Interest expense, net | 7,787 | 7,979 | 23,653 | 24,372 |
Income (loss) before provision (benefit) for income taxes | -8,679 | -10,541 | 9,076 | 4,499 |
Provision (benefit) for income taxes | -1,936 | -8,920 | 3,404 | -5,551 |
Net income (loss) | -6,743 | -1,621 | 5,672 | 10,050 |
Unrealized foreign currency translation gain (loss), net of taxes | -13 | 20 | -176 | 16 |
Total comprehensive income (loss) | ($6,756) | ($1,601) | $5,496 | $10,066 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Nov. 03, 2013 | Oct. 28, 2012 |
Cash flows from operating activities: | ' | ' |
Net income | $5,672 | $10,050 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization expense | 49,333 | 45,573 |
Debt costs and discount amortization | 1,939 | 1,908 |
Deferred income tax expense (benefit) | 630 | -9,320 |
Loss on disposal of fixed assets | 2,185 | 1,952 |
Share-based compensation charges | 909 | 866 |
Other, net | 581 | 133 |
Changes in assets and liabilities: | ' | ' |
Inventories | -864 | -108 |
Prepaid expenses | -364 | 929 |
Income taxes receivable | 836 | ' |
Other current assets | 6,283 | 843 |
Other assets and deferred charges | -72 | 833 |
Accounts payable | 4,665 | 2,387 |
Accrued liabilities | 10,908 | 9,192 |
Income taxes payable | -2,195 | -629 |
Deferred occupancy costs | 3,250 | -634 |
Other liabilities | 2,598 | 3,140 |
Net cash provided by operating activities | 86,294 | 67,115 |
Cash flows from investing activities: | ' | ' |
Capital expenditures | -75,308 | -50,246 |
Proceeds from sales of property and equipment | 208 | 265 |
Net cash used in investing activities | -75,100 | -49,981 |
Cash flows from financing activities: | ' | ' |
Repayments of senior secured credit facility | -1,125 | -1,125 |
Debt issuance costs | -818 | ' |
Net cash used in financing activities | -1,943 | -1,125 |
Increase in cash and cash equivalents | 9,251 | 16,009 |
Beginning cash and cash equivalents | 36,117 | 33,684 |
Ending cash and cash equivalents | 45,368 | 49,693 |
Supplemental disclosures of cash flow information: | ' | ' |
Cash paid for income taxes, net | 2,008 | 1,830 |
Cash paid for interest and related debt fees, net of amounts capitalized | $16,429 | $17,223 |
Description_of_Business_and_Ba
Description of Business and Basis of Presentation | 9 Months Ended |
Nov. 03, 2013 | |
Description of Business and Basis of Presentation | ' |
Note 1: Description of Business and Basis of Presentation | |
Description of Business — Dave & Buster’s, Inc., a Missouri corporation, owns, operates and licenses high-volume venues that combine dining and entertainment in North America for both adults and families. Our venues operate under the names “Dave & Buster’s” and “Dave & Buster’s Grand Sports Café.” As of November 3, 2013, there were 64 company-owned locations in the United States and Canada. Subsequent to November 3, 2013, we opened new stores in Cary, North Carolina and Livonia, Michigan in November and December 2013, respectively. As of December 16, 2013, we had 66 company-owned locations in the United States and Canada. On May 31, 2013, our lone franchise store ceased operation as Dave & Buster’s. This change and the associated termination of the related franchise and development agreements did not have a material impact on our financial position or results of operations. 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 for a 53 week year when the fourth quarter has 14 weeks. Our fiscal year ending February 2, 2014 will consist of 52 weeks. Our fiscal year ended February 3, 2013 consisted of 53 weeks. Dave & Buster’s, Inc. operates its business as one operating and one reportable segment. | |
Dave & Buster’s, Inc. is a wholly owned subsidiary of Dave & Buster’s Holdings, Inc. (“D&B Holdings”), a Delaware corporation. D&B Holdings is a wholly owned subsidiary of Dave & Buster’s Entertainment, Inc. (“D&B Entertainment”), a Delaware corporation owned by Oak Hill Capital Partners III, L.P., Oak Hill Capital Management Partners III, L.P. (collectively “Oak Hill Funds”) and certain members of the Board of Directors and management of Dave & Buster’s, Inc. | |
D&B Entertainment owns no other significant assets or operations other than the ownership of all the common stock of D&B Holdings. D&B Holdings owns no other significant assets or operations other than the ownership of all the common stock of Dave & Buster’s, Inc. References to “Dave & Buster’s,” the “Company,” “we,” “us,” and “our” are references to Dave & Buster’s, Inc. and its subsidiaries. | |
Interim financial statements — The accompanying unaudited 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 financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Operating results for the thirteen and thirty-nine weeks ended November 3, 2013 are not necessarily indicative of results that may be expected for any other interim period or for the year ending February 2, 2014. Our quarterly financial data should be read in conjunction with our Annual Audited Consolidated Financial Statements for the year ended February 3, 2013 (including the notes thereto) as contained in our Annual Report on Form 10-K filed with the SEC. | |
The financial statements include our accounts after elimination of all significant intercompany balances and transactions. All dollar amounts are presented in thousands, unless otherwise noted, except share amounts. | |
Significant accounting policies — There were no significant changes to our critical accounting policies from those disclosed in our Annual Report on Form 10-K filed with the SEC for the year ended February 3, 2013. | |
Related party transactions — From time to time, we temporarily advance funds to D&B Entertainment for payment of expenditures for its corporate purposes. Additionally, we owe D&B Entertainment for certain tax-related matters. We had a net payable of $5,115 and $3,349 as of November 3, 2013 and February 3, 2013, respectively. This payable balance includes $1,739 related to income taxes which is included in “Income taxes payable” with the remaining balance included in “Other liabilities” in the Company’s Consolidated Balance Sheet. | |
Concentration of Credit Risk — Financial instruments which potentially subject us to a concentration of credit risk are cash and cash equivalents. We currently maintain our day-to-day operating cash balances with major financial institutions. At times, our operating cash balances may be in excess of the Federal Deposit Insurance Corporation (“FDIC”) insurance limit. From time to time, we invest temporary excess cash in overnight investments with expected minimal volatility, such as money market funds. Although we maintain balances that exceed the FDIC insured limit, we have not experienced any losses related to this balance, and we believe credit risk to be minimal. | |
Recent Accounting Pronouncements | |
Accounting Guidance Adopted— In February 2013, the FASB issued Accounting Standards Update (“ASU”) No. 2013-02, “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income,” which requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. This guidance requires the disclosure of significant amounts reclassified from each component of accumulated other comprehensive income and the income statement line items affected by the reclassification. ASU No. 2013-02 is effective for the Company prospectively for reporting periods beginning after December 15, 2012. The adoption of ASU No. 2013-02 did not have an impact on the Company’s financial position, results of operations or cash flows. | |
Accounting Guidance Not Yet Adopted—In July 2012, the FASB issued ASU No. 2012-02, “Intangibles-Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment.” The revised standard is intended to reduce the cost and complexity of testing indefinite-lived intangible assets other than goodwill for impairment. It allows companies to perform a “qualitative” assessment to determine whether further impairment testing of indefinite-lived intangible assets is necessary, similar in approach to the goodwill impairment test. This amendment is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. We review our intangible assets for impairment in our fourth quarter unless circumstances require this analysis to be completed sooner. We do not expect the provisions of ASU No. 2012-02 to have a material effect on the Company’s financial position, results of operations or cash flows. | |
In July 2013, the FASB issued ASU No. 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” This amendment requires an unrecognized tax benefit related to a net operating loss carryforward, a similar tax loss or a tax credit carryforward to be presented as a reduction to a deferred tax asset, unless the tax benefit is not available at the reporting date to settle any additional income taxes under the tax law of the applicable tax jurisdiction. The amendment is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted. We do not expect the provisions of ASU No. 2013-11 to have a material effect on the Company’s financial position, results of operations or cash flows. |
Accrued_Liabilities
Accrued Liabilities | 9 Months Ended | ||||||||
Nov. 03, 2013 | |||||||||
Accrued Liabilities | ' | ||||||||
Note 2: Accrued Liabilities | |||||||||
Accrued liabilities consist of the following: | |||||||||
November 3, 2013 | February 3, 2013 | ||||||||
Compensation and benefits | $ | 14,013 | $ | 15,205 | |||||
Deferred amusement revenue | 13,184 | 11,675 | |||||||
Interest | 9,734 | 4,242 | |||||||
Amusement redemption liability | 9,006 | 7,144 | |||||||
Rent | 8,947 | 8,902 | |||||||
Property taxes | 4,411 | 2,884 | |||||||
Deferred gift card revenue | 3,402 | 4,028 | |||||||
Sales and use taxes | 3,319 | 4,282 | |||||||
Current portion of long-term insurance reserves | 3,000 | 3,000 | |||||||
Other | 9,005 | 5,762 | |||||||
Total accrued liabilities | $ | 78,021 | $ | 67,124 | |||||
LongTerm_Debt
Long-Term Debt | 9 Months Ended | ||||||||
Nov. 03, 2013 | |||||||||
Long-Term Debt | ' | ||||||||
Note 3: Long-Term Debt | |||||||||
Long-term debt consisted of the following: | |||||||||
November 3, 2013 | February 3, 2013 | ||||||||
Senior secured credit facility—term | $ | 144,750 | $ | 145,875 | |||||
Senior notes | 200,000 | 200,000 | |||||||
Total debt outstanding | 344,750 | 345,875 | |||||||
Unamortized debt discount | (612 | ) | (796 | ) | |||||
Less current installments | (1,500 | ) | (1,500 | ) | |||||
Long-term debt, less current installments, net of unamortized discount | $ | 342,638 | $ | 343,579 | |||||
Senior Secured Credit Facility — Our senior secured credit facility provides (a) a $150,000 term loan facility with a maturity date of June 1, 2016, and (b) a $50,000 revolving credit facility with a maturity date of June 1, 2015. The $50,000 revolving credit facility includes (i) a $20,000 letter of credit sub-facility (ii) a $5,000 swingline sub-facility and (iii) a $1,000 (in US Dollar equivalent) sub-facility available in Canadian dollars to the Company’s Canadian subsidiary. The revolving credit facility will be used to provide financing for general purposes. The Company originally received proceeds on the term loan facility of $148,500, net of a $1,500 discount. The discount is being amortized to interest expense over the life of the term loan facility. As of November 3, 2013, we had no borrowings under the revolving credit facility, borrowings of $144,750 ($144,138, net of discount) under the term facility and $5,670 in letters of credit outstanding. We believe that the carrying amount of our term credit facility approximates its fair value because the interest rates are adjusted regularly based on current market conditions. The interest rate on the term loan facility at November 3, 2013 was 4.5%. The fair value of the Company’s senior secured credit facility was determined to be a Level Two instrument as defined by GAAP. | |||||||||
The interest rates per annum applicable to loans, other than swingline loans, under our senior secured credit facility are set periodically based on, at our option, either (1) the greatest of (a) the defined prime rate in effect, (b) the Federal Funds Effective Rate in effect plus 1 / 2 of 1% and (c) a Eurodollar rate, which is subject to a minimum (or, in the case of the Canadian revolving credit facility, a Canadian prime rate or Canadian cost of funds rate), for one-, two-, three- or six-months (or, if agreed by the applicable lenders, nine or twelve months) or, in relation to the Canadian revolving credit facility, 30-, 60-, 90- or 180-day interest periods chosen by us or our Canadian subsidiary, as applicable in each case (the “Base Rate”), plus an applicable margin percentage between 2.50% and 4.50% or (2) a defined Eurodollar rate plus an applicable margin. Swingline loans bear interest at the Base Rate plus an applicable margin. | |||||||||
On May 13, 2011, the Company executed an amendment (the “Amendment”) to the senior secured credit facility. The Amendment reduced the applicable term loan margins and LIBOR floor used in setting interest rates, as well as limited the Company’s requirement to meet the covenant ratios, as stipulated in the Amendment, until such time as we make a draw on our revolving credit facility or issue letters of credit in excess of $12,000. As of November 3, 2013, we have had no draws on our revolving credit facility and outstanding letters of credit have not exceeded $12,000, and as such we were not required to maintain financial ratios under our senior secured credit facility. | |||||||||
On May 14, 2013, the Company executed a second amendment (the “Second Amendment”) to the senior secured credit facility. The primary modification included in the Second Amendment is a reduction in the applicable term loan margin by 0.75% per annum based on a consolidated leverage ratio greater than or equal to 2.75:1.00. If our consolidated leverage ratio is less than 2.75:1.00, the applicable term loan margin will be reduced further by 0.25% for periods subsequent to fiscal 2013. Additionally, the Second Amendment reduced the LIBOR floor used in setting rates by 0.25%. | |||||||||
The senior secured credit facility requires compliance with financial covenants including a minimum fixed charge coverage ratio test and a maximum leverage ratio test. The Company is required to maintain a minimum fixed charge coverage ratio of 1.15:1.00 and a maximum leverage ratio of 4.00:1.00 as of November 3, 2013. The financial covenants will become more restrictive over time. The required minimum fixed charge coverage ratio increases annually to a required ratio of 1.30:1.00 in the fourth quarter of fiscal year 2014 and thereafter. The maximum leverage ratio decreases annually to a required ratio of 3.25:1.00 in the fourth quarter of fiscal 2014 and thereafter. In addition, the senior secured credit facility includes negative covenants restricting or limiting D&B Holdings, Dave & Buster’s and its subsidiaries’ ability to, among other things, incur additional indebtedness, pay dividends, make capital expenditures and sell or acquire assets. Virtually all of the Company’s assets are pledged as collateral for the senior secured credit facility. | |||||||||
Our senior secured credit facility also contains certain customary representations and warranties, affirmative covenants and events of default, including: payment defaults, breaches of representations and warranties, covenant defaults, cross-defaults and cross-acceleration to certain indebtedness, certain events of bankruptcy, certain events under the Employee Retirement Income Security Act of 1974 as amended from time to time (“ERISA”), material judgments, actual or asserted failures of any guarantee or security document supporting the senior secured credit facility to be in full force and effect and a change of control. If an event of default occurs, the lenders under the senior secured credit facility would be entitled to take various actions, including acceleration of amounts due under the senior secured credit facility and all other actions permitted to be taken by a secured creditor. | |||||||||
Funds managed by Oak Hill Advisors, L.P. (the “OHA Funds”) comprise one of twenty-three creditors participating in the term loan portion of our senior secured credit facility. As of November 3, 2013, the OHA Funds held approximately 9.97%, or $14,431, of our total term loan obligation. Oak Hill Advisors, L.P. is an independent investment firm that is not an affiliate of Oak Hill Capital Partners and is not under common control with Oak Hill Capital Partners. Oak Hill Advisors, L.P. and an affiliate of Oak Hill Capital Management, LLC co-manage Oak Hill Special Opportunities Fund, L.P., a private fund. Certain employees of Oak Hill Capital Partners, in their individual capacities, have passive investments in Oak Hill Advisors, L.P. and/or the funds it manages. | |||||||||
Senior notes — Our senior notes are general unsecured, unsubordinated obligations of the Company and mature on June 1, 2018. Interest on the notes is paid semi-annually and accrues at the rate of 11.0% per annum. On or after June 1, 2014, the Company may redeem all, or from time-to-time, a part of the senior notes at redemption prices (expressed as a percentage of principal amount) ranging from 105.5% to 100.0% plus accrued and unpaid interest on the senior notes. As of November 3, 2013, our $200,000 of senior notes had an approximate fair value of $219,800 based on quoted market price. The fair value of the Company’s senior notes was determined to be a Level One instrument as defined by GAAP. | |||||||||
The senior notes restrict the Company’s ability to incur indebtedness, outside of the senior secured credit facility, unless the consolidated coverage ratio exceeds 2.00:1.00 or other financial and operational requirements are met. Additionally, the terms of the senior notes restrict the Company’s ability to make certain payments to affiliated entities. The Company was in compliance with the debt covenants as of November 3, 2013. | |||||||||
Future debt obligations — The following table sets forth our future debt principal payment obligations as of November 3, 2013 (excluding repayment obligations under the revolving portion of our senior secured credit facility). | |||||||||
Debt Outstanding | |||||||||
at November 3, 2013 | |||||||||
1 year or less | $ | 1,500 | |||||||
2 years | 1,500 | ||||||||
3 years | 141,750 | ||||||||
4 years | — | ||||||||
5 years | 200,000 | ||||||||
Thereafter | — | ||||||||
Total future payments | $ | 344,750 | |||||||
The following tables set forth our recorded interest expense, net: | |||||||||
Thirteen Weeks | Thirteen Weeks | ||||||||
Ended | Ended | ||||||||
November 3, 2013 | October 28, 2012 | ||||||||
Debt-based interest expense | $ | 7,319 | $ | 7,704 | |||||
Amortization of issuance cost and discount | 635 | 578 | |||||||
Interest income | (69 | ) | (71 | ) | |||||
Less capitalized interest | (98 | ) | (232 | ) | |||||
Total interest expense, net | $ | 7,787 | $ | 7,979 | |||||
Thirty-Nine Weeks | Thirty-Nine Weeks | ||||||||
Ended | Ended | ||||||||
3-Nov-13 | 28-Oct-12 | ||||||||
Debt-based interest expense | $ | 22,363 | $ | 23,116 | |||||
Amortization of issuance cost and discount | 1,939 | 1,908 | |||||||
Interest income | (209 | ) | (213 | ) | |||||
Less capitalized interest | (440 | ) | (439 | ) | |||||
Total interest expense, net | $ | 23,653 | $ | 24,372 | |||||
Income_Taxes
Income Taxes | 9 Months Ended |
Nov. 03, 2013 | |
Income Taxes | ' |
Note 4: Income Taxes | |
We use the asset/liability method for recording income taxes, which recognizes the amount of current and deferred taxes payable or refundable at the date of the financial statements as a result of all events that are recognized in the financial statements and as measured by the provisions of enacted tax laws. We also recognize liabilities for uncertain income tax positions for those items that meet the “more likely than not” threshold. | |
In assessing the realizability of deferred tax assets, at November 3, 2013 we considered whether it is more likely than not that some or all of the deferred tax assets will not be realized. Accordingly, we have established a valuation allowance of $1,164 for deferred tax assets associated with state taxes and uncertain tax positions as of November 3, 2013. The ultimate realization of our deferred tax assets is dependent on the generation of future taxable income during periods in which temporary differences and carryforwards become deductible. | |
The calculation of tax liabilities involves significant judgment and evaluation of uncertainties in the interpretation of state tax regulations. As a result, we have established accruals for taxes that may become payable in future years due to audits by tax authorities. Tax accruals are reviewed regularly pursuant to accounting guidance for uncertainty in income taxes. Tax accruals are adjusted as events occur that affect the potential liability for taxes, such as the expiration of statutes of limitations, conclusion of tax audits, identification of additional exposure based on current calculations, identification of new issues, the issuance of statutory or administrative guidance, or rendering of a court decision affecting a particular issue. Accordingly, we may experience significant changes in tax accruals in the future, if or when such events occur. | |
As of November 3, 2013, we have accrued approximately $659 of unrecognized tax benefits and approximately $323 of penalties and interest. Future recognition of potential interest or penalties, if any, will be recorded as a component of income tax expense. Because of the impact of deferred income tax accounting, $555 of unrecognized tax benefits, if recognized, would affect the effective tax rate. | |
The Company is a member of a consolidated group that includes D&B Entertainment. As of November 3, 2013, the Company owes D&B Entertainment approximately $4,650 of tax-related balances. Included in income tax payable is $666, which the Company anticipates paying to D&B Entertainment in fiscal 2013. In fiscal year 2013, we expect to utilize approximately $3,540 of available stand-alone federal tax credit carryforwards which reduced our estimated stand-alone cash tax liability to D&B Entertainment. As of February 2, 2014, we expect to have approximately $639 of available stand-alone federal tax credit carryforwards. As a result of having less federal tax credit carryforwards available to offset future stand-alone cash tax liabilities, future cash tax requirements may be higher. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | ||||
Nov. 03, 2013 | |||||
Commitments and Contingencies | ' | ||||
Note 5: Commitments and Contingencies | |||||
On November 14, 2013, the Company filed a complaint in federal court seeking declaratory and injunctive relief related to actions taken by a landlord attempting to terminate the lease agreement for our store in Bethesda, Maryland. The landlord has alleged that the Company is in default of certain lease agreement provisions which restrict our ability to operate other D&B facilities within a prescribed distance of the Bethesda location. We believe that the lease provisions cited by the landlord are not legally enforceable and that the Company has the right to operate all facilities for the duration of the original lease term and any available lease extension periods. The Company’s net investment in non-transferrable assets related to this location was less than $1,000 as of November 3, 2013. The timing of a judicial decision on this matter as well as any potential financial impact regarding this matter is unknown at this time. Accordingly, no provision for gain or loss related to the ultimate resolution of this lawsuit has been provided in the accompanying financial statements. All disclosures related to lease obligations included herein do not contemplate early termination of any lease. | |||||
We are subject to certain legal proceedings and claims that arise in the ordinary course of our business. 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 operating leases. Some of the leases include options for renewal or extension on various terms. Most of the leases require us to pay property taxes, insurance, and maintenance of the leased assets. Certain leases also have provisions for additional percentage rentals based on revenues. | |||||
The following table sets forth our lease commitments as of November 3, 2013: | |||||
Operating Lease | |||||
Obligations | |||||
at November 3, 2013 | |||||
1 year or less | $ | 56,603 | |||
2 years | 55,898 | ||||
3 years | 54,137 | ||||
4 years | 52,371 | ||||
5 years | 49,572 | ||||
Thereafter | 277,755 | ||||
Total future payments | $ | 546,336 | |||
We have signed operating lease agreements for our stores located in Cary, North Carolina and Livonia, Michigan, which opened in November and December 2013 respectively, and future sites located in Westchester, CA and Vernon Hills, IL, which are expected to open in early fiscal 2014. 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. | |||||
Additionally, as of November 3, 2013, we have signed nine lease agreements which contain certain landlord obligations which remain unfulfilled as of that date. 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. | |||||
As of December 16, 2013, we have executed an extension to one existing lease and the landlord further fulfilled their obligations in another lease resulting in future commitments of approximately $10,500 related to these agreements that were not included in the table above. |
Condensed_Consolidating_Financ
Condensed Consolidating Financial Information | 9 Months Ended | ||||||||||||||||
Nov. 03, 2013 | |||||||||||||||||
Condensed Consolidating Financial Information | ' | ||||||||||||||||
Note 6: Condensed Consolidating Financial Information | |||||||||||||||||
The senior notes (described in Note 3) are guaranteed on a senior basis by all domestic subsidiaries of the Company. The subsidiaries’ guarantee of the senior notes are full and unconditional and joint and several. | |||||||||||||||||
The accompanying condensed consolidating financial information has been prepared and presented pursuant to SEC Regulation S-X Rule 3-10 “Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered.” No other condensed consolidating financial statements are presented herein. The results of operations and cash flows from operating activities from the non-guarantor subsidiary were $(149) and $(176), respectively, for the thirteen week period ended November 3, 2013. The results of operations and cash flows from operating activities from the non-guarantor subsidiary were $(519) and $723, respectively, for the thirty-nine week period ended November 3, 2013. There are no restrictions on cash distributions from the non-guarantor subsidiary. | |||||||||||||||||
November 3, 2013: | |||||||||||||||||
Issuer and | Subsidiary | Consolidating | Consolidated | ||||||||||||||
Subsidiary | Non- | Adjustments | Dave & Buster’s, Inc. | ||||||||||||||
Guarantors | Guarantors | ||||||||||||||||
Assets: | |||||||||||||||||
Current assets | $ | 87,179 | $ | 6,081 | $ | — | $ | 93,260 | |||||||||
Property and equipment, net | 363,509 | 4,998 | — | 368,507 | |||||||||||||
Tradenames | 79,000 | — | — | 79,000 | |||||||||||||
Goodwill | 273,725 | (1,384 | ) | — | 272,341 | ||||||||||||
Investment in subsidiary | 3,520 | — | (3,520 | ) | — | ||||||||||||
Other assets and deferred charges | 21,996 | 403 | — | 22,399 | |||||||||||||
Total assets | $ | 828,929 | $ | 10,098 | $ | (3,520 | ) | $ | 835,507 | ||||||||
Issuer and | Subsidiary | Consolidating | Consolidated | ||||||||||||||
Subsidiary | Non- | Adjustments | Dave & Buster’s, Inc. | ||||||||||||||
Guarantors | Guarantors | ||||||||||||||||
Liabilities and stockholder’s equity: | |||||||||||||||||
Current liabilities | $ | 111,204 | $ | 6,458 | $ | — | $ | 117,662 | |||||||||
Deferred income taxes | 21,843 | — | — | 21,843 | |||||||||||||
Deferred occupancy costs | 72,685 | 120 | — | 72,805 | |||||||||||||
Other liabilities | 13,178 | — | — | 13,178 | |||||||||||||
Long-term debt, less current installments, net of unamortized discount (Note 3) | 342,638 | — | — | 342,638 | |||||||||||||
Stockholder’s equity | 267,381 | 3,520 | (3,520 | ) | 267,381 | ||||||||||||
Total liabilities and stockholder’s equity | $ | 828,929 | $ | 10,098 | $ | (3,520 | ) | $ | 835,507 | ||||||||
February 3, 2013: | |||||||||||||||||
Issuer and | Subsidiary Non- | Consolidating | Consolidated | ||||||||||||||
Subsidiary | Guarantors | Adjustments | Dave & Buster’s, Inc. | ||||||||||||||
Guarantors | |||||||||||||||||
Assets: | |||||||||||||||||
Current assets | $ | 85,696 | $ | 6,122 | $ | — | $ | 91,818 | |||||||||
Property and equipment, net | 333,018 | 4,221 | — | 337,239 | |||||||||||||
Tradenames | 79,000 | — | — | 79,000 | |||||||||||||
Goodwill | 273,725 | (1,447 | ) | — | 272,278 | ||||||||||||
Investment in subsidiary | 4,215 | — | (4,215 | ) | — | ||||||||||||
Other assets and deferred charges | 23,854 | 364 | — | 24,218 | |||||||||||||
Total assets | $ | 799,508 | $ | 9,260 | $ | (4,215 | ) | $ | 804,553 | ||||||||
Issuer and | Subsidiary | Consolidating | Consolidated | ||||||||||||||
Subsidiary | Non-Guarantors | Adjustments | Dave & Buster’s, Inc. | ||||||||||||||
Guarantors | |||||||||||||||||
Liabilities and stockholder’s equity: | |||||||||||||||||
Current liabilities | $ | 87,936 | $ | 4,947 | $ | — | $ | 92,883 | |||||||||
Deferred income taxes | 24,887 | — | — | 24,887 | |||||||||||||
Deferred occupancy costs | 69,446 | 98 | — | 69,544 | |||||||||||||
Other liabilities | 12,684 | — | — | 12,684 | |||||||||||||
Long-term debt, less current installments, net of unamortized discount (Note 3) | 343,579 | — | — | 343,579 | |||||||||||||
Stockholder’s equity | 260,976 | 4,215 | (4,215 | ) | 260,976 | ||||||||||||
Total liabilities and stockholder’s equity | $ | 799,508 | $ | 9,260 | $ | (4,215 | ) | $ | 804,553 | ||||||||
Description_of_Business_and_Ba1
Description of Business and Basis of Presentation (Policies) | 9 Months Ended |
Nov. 03, 2013 | |
Basis of Accounting and Significant Accounting Policies | ' |
Interim financial statements — The accompanying unaudited 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 financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Operating results for the thirteen and thirty-nine weeks ended November 3, 2013 are not necessarily indicative of results that may be expected for any other interim period or for the year ending February 2, 2014. Our quarterly financial data should be read in conjunction with our Annual Audited Consolidated Financial Statements for the year ended February 3, 2013 (including the notes thereto) as contained in our Annual Report on Form 10-K filed with the SEC. | |
The financial statements include our accounts after elimination of all significant intercompany balances and transactions. All dollar amounts are presented in thousands, unless otherwise noted, except share amounts. | |
Significant accounting policies — There were no significant changes to our critical accounting policies from those disclosed in our Annual Report on Form 10-K filed with the SEC for the year ended February 3, 2013. | |
Related party transactions | ' |
Related party transactions — From time to time, we temporarily advance funds to D&B Entertainment for payment of expenditures for its corporate purposes. Additionally, we owe D&B Entertainment for certain tax-related matters. We had a net payable of $5,115 and $3,349 as of November 3, 2013 and February 3, 2013, respectively. This payable balance includes $1,739 related to income taxes which is included in “Income taxes payable” with the remaining balance included in “Other liabilities” in the Company’s Consolidated Balance Sheet. | |
Concentration of Credit Risk | ' |
Concentration of Credit Risk — Financial instruments which potentially subject us to a concentration of credit risk are cash and cash equivalents. We currently maintain our day-to-day operating cash balances with major financial institutions. At times, our operating cash balances may be in excess of the Federal Deposit Insurance Corporation (“FDIC”) insurance limit. From time to time, we invest temporary excess cash in overnight investments with expected minimal volatility, such as money market funds. Although we maintain balances that exceed the FDIC insured limit, we have not experienced any losses related to this balance, and we believe credit risk to be minimal. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
Accounting Guidance Adopted— In February 2013, the FASB issued Accounting Standards Update (“ASU”) No. 2013-02, “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income,” which requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. This guidance requires the disclosure of significant amounts reclassified from each component of accumulated other comprehensive income and the income statement line items affected by the reclassification. ASU No. 2013-02 is effective for the Company prospectively for reporting periods beginning after December 15, 2012. The adoption of ASU No. 2013-02 did not have an impact on the Company’s financial position, results of operations or cash flows. | |
Accounting Guidance Not Yet Adopted—In July 2012, the FASB issued ASU No. 2012-02, “Intangibles-Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment.” The revised standard is intended to reduce the cost and complexity of testing indefinite-lived intangible assets other than goodwill for impairment. It allows companies to perform a “qualitative” assessment to determine whether further impairment testing of indefinite-lived intangible assets is necessary, similar in approach to the goodwill impairment test. This amendment is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. We review our intangible assets for impairment in our fourth quarter unless circumstances require this analysis to be completed sooner. We do not expect the provisions of ASU No. 2012-02 to have a material effect on the Company’s financial position, results of operations or cash flows. | |
In July 2013, the FASB issued ASU No. 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” This amendment requires an unrecognized tax benefit related to a net operating loss carryforward, a similar tax loss or a tax credit carryforward to be presented as a reduction to a deferred tax asset, unless the tax benefit is not available at the reporting date to settle any additional income taxes under the tax law of the applicable tax jurisdiction. The amendment is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted. We do not expect the provisions of ASU No. 2013-11 to have a material effect on the Company’s financial position, results of operations or cash flows. |
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 9 Months Ended | ||||||||
Nov. 03, 2013 | |||||||||
Accrued Liabilities | ' | ||||||||
Accrued liabilities consist of the following: | |||||||||
November 3, 2013 | February 3, 2013 | ||||||||
Compensation and benefits | $ | 14,013 | $ | 15,205 | |||||
Deferred amusement revenue | 13,184 | 11,675 | |||||||
Interest | 9,734 | 4,242 | |||||||
Amusement redemption liability | 9,006 | 7,144 | |||||||
Rent | 8,947 | 8,902 | |||||||
Property taxes | 4,411 | 2,884 | |||||||
Deferred gift card revenue | 3,402 | 4,028 | |||||||
Sales and use taxes | 3,319 | 4,282 | |||||||
Current portion of long-term insurance reserves | 3,000 | 3,000 | |||||||
Other | 9,005 | 5,762 | |||||||
Total accrued liabilities | $ | 78,021 | $ | 67,124 | |||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 9 Months Ended | ||||||||
Nov. 03, 2013 | |||||||||
Long-Term Debt | ' | ||||||||
Long-term debt consisted of the following: | |||||||||
November 3, 2013 | February 3, 2013 | ||||||||
Senior secured credit facility—term | $ | 144,750 | $ | 145,875 | |||||
Senior notes | 200,000 | 200,000 | |||||||
Total debt outstanding | 344,750 | 345,875 | |||||||
Unamortized debt discount | (612 | ) | (796 | ) | |||||
Less current installments | (1,500 | ) | (1,500 | ) | |||||
Long-term debt, less current installments, net of unamortized discount | $ | 342,638 | $ | 343,579 | |||||
Future Debt Principal Payment Obligations | ' | ||||||||
The following table sets forth our future debt principal payment obligations as of November 3, 2013 (excluding repayment obligations under the revolving portion of our senior secured credit facility). | |||||||||
Debt Outstanding | |||||||||
at November 3, 2013 | |||||||||
1 year or less | $ | 1,500 | |||||||
2 years | 1,500 | ||||||||
3 years | 141,750 | ||||||||
4 years | — | ||||||||
5 years | 200,000 | ||||||||
Thereafter | — | ||||||||
Total future payments | $ | 344,750 | |||||||
Recorded Interest Expense, Net | ' | ||||||||
The following tables set forth our recorded interest expense, net: | |||||||||
Thirteen Weeks | Thirteen Weeks | ||||||||
Ended | Ended | ||||||||
November 3, 2013 | October 28, 2012 | ||||||||
Debt-based interest expense | $ | 7,319 | $ | 7,704 | |||||
Amortization of issuance cost and discount | 635 | 578 | |||||||
Interest income | (69 | ) | (71 | ) | |||||
Less capitalized interest | (98 | ) | (232 | ) | |||||
Total interest expense, net | $ | 7,787 | $ | 7,979 | |||||
Thirty-Nine Weeks | Thirty-Nine Weeks | ||||||||
Ended | Ended | ||||||||
3-Nov-13 | 28-Oct-12 | ||||||||
Debt-based interest expense | $ | 22,363 | $ | 23,116 | |||||
Amortization of issuance cost and discount | 1,939 | 1,908 | |||||||
Interest income | (209 | ) | (213 | ) | |||||
Less capitalized interest | (440 | ) | (439 | ) | |||||
Total interest expense, net | $ | 23,653 | $ | 24,372 | |||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 9 Months Ended | ||||
Nov. 03, 2013 | |||||
Future Minimum Lease Payments | ' | ||||
The following table sets forth our lease commitments as of November 3, 2013: | |||||
Operating Lease | |||||
Obligations | |||||
at November 3, 2013 | |||||
1 year or less | $ | 56,603 | |||
2 years | 55,898 | ||||
3 years | 54,137 | ||||
4 years | 52,371 | ||||
5 years | 49,572 | ||||
Thereafter | 277,755 | ||||
Total future payments | $ | 546,336 | |||
Condensed_Consolidating_Financ1
Condensed Consolidating Financial Information (Tables) | 9 Months Ended | ||||||||||||||||
Nov. 03, 2013 | |||||||||||||||||
Condensed Consolidating Financial Information | ' | ||||||||||||||||
November 3, 2013: | |||||||||||||||||
Issuer and | Subsidiary | Consolidating | Consolidated | ||||||||||||||
Subsidiary | Non- | Adjustments | Dave & Buster’s, Inc. | ||||||||||||||
Guarantors | Guarantors | ||||||||||||||||
Assets: | |||||||||||||||||
Current assets | $ | 87,179 | $ | 6,081 | $ | — | $ | 93,260 | |||||||||
Property and equipment, net | 363,509 | 4,998 | — | 368,507 | |||||||||||||
Tradenames | 79,000 | — | — | 79,000 | |||||||||||||
Goodwill | 273,725 | (1,384 | ) | — | 272,341 | ||||||||||||
Investment in subsidiary | 3,520 | — | (3,520 | ) | — | ||||||||||||
Other assets and deferred charges | 21,996 | 403 | — | 22,399 | |||||||||||||
Total assets | $ | 828,929 | $ | 10,098 | $ | (3,520 | ) | $ | 835,507 | ||||||||
Issuer and | Subsidiary | Consolidating | Consolidated | ||||||||||||||
Subsidiary | Non- | Adjustments | Dave & Buster’s, Inc. | ||||||||||||||
Guarantors | Guarantors | ||||||||||||||||
Liabilities and stockholder’s equity: | |||||||||||||||||
Current liabilities | $ | 111,204 | $ | 6,458 | $ | — | $ | 117,662 | |||||||||
Deferred income taxes | 21,843 | — | — | 21,843 | |||||||||||||
Deferred occupancy costs | 72,685 | 120 | — | 72,805 | |||||||||||||
Other liabilities | 13,178 | — | — | 13,178 | |||||||||||||
Long-term debt, less current installments, net of unamortized discount (Note 3) | 342,638 | — | — | 342,638 | |||||||||||||
Stockholder’s equity | 267,381 | 3,520 | (3,520 | ) | 267,381 | ||||||||||||
Total liabilities and stockholder’s equity | $ | 828,929 | $ | 10,098 | $ | (3,520 | ) | $ | 835,507 | ||||||||
February 3, 2013: | |||||||||||||||||
Issuer and | Subsidiary Non- | Consolidating | Consolidated | ||||||||||||||
Subsidiary | Guarantors | Adjustments | Dave & Buster’s, Inc. | ||||||||||||||
Guarantors | |||||||||||||||||
Assets: | |||||||||||||||||
Current assets | $ | 85,696 | $ | 6,122 | $ | — | $ | 91,818 | |||||||||
Property and equipment, net | 333,018 | 4,221 | — | 337,239 | |||||||||||||
Tradenames | 79,000 | — | — | 79,000 | |||||||||||||
Goodwill | 273,725 | (1,447 | ) | — | 272,278 | ||||||||||||
Investment in subsidiary | 4,215 | — | (4,215 | ) | — | ||||||||||||
Other assets and deferred charges | 23,854 | 364 | — | 24,218 | |||||||||||||
Total assets | $ | 799,508 | $ | 9,260 | $ | (4,215 | ) | $ | 804,553 | ||||||||
Issuer and | Subsidiary | Consolidating | Consolidated | ||||||||||||||
Subsidiary | Non-Guarantors | Adjustments | Dave & Buster’s, Inc. | ||||||||||||||
Guarantors | |||||||||||||||||
Liabilities and stockholder’s equity: | |||||||||||||||||
Current liabilities | $ | 87,936 | $ | 4,947 | $ | — | $ | 92,883 | |||||||||
Deferred income taxes | 24,887 | — | — | 24,887 | |||||||||||||
Deferred occupancy costs | 69,446 | 98 | — | 69,544 | |||||||||||||
Other liabilities | 12,684 | — | — | 12,684 | |||||||||||||
Long-term debt, less current installments, net of unamortized discount (Note 3) | 343,579 | — | — | 343,579 | |||||||||||||
Stockholder’s equity | 260,976 | 4,215 | (4,215 | ) | 260,976 | ||||||||||||
Total liabilities and stockholder’s equity | $ | 799,508 | $ | 9,260 | $ | (4,215 | ) | $ | 804,553 | ||||||||
Description_of_Business_and_Ba2
Description of Business and Basis of Presentation - Additional Information (Detail) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 03, 2013 | Feb. 03, 2013 | Dec. 16, 2013 |
Segment | Subsequent Event | ||
Location | Location | ||
Number of locations | 64 | ' | 66 |
Number of operating segments | 1 | ' | ' |
Number of reportable segments | 1 | ' | ' |
Net D&B Entertainment payable | $5,115 | $3,349 | ' |
Income tax payable, related party | $1,739 | ' | ' |
Accrued_Liabilities_Detail
Accrued Liabilities (Detail) (USD $) | Nov. 03, 2013 | Feb. 03, 2013 |
In Thousands, unless otherwise specified | ||
Accrued Liabilities, Current [Abstract] | ' | ' |
Compensation and benefits | $14,013 | $15,205 |
Deferred amusement revenue | 13,184 | 11,675 |
Interest | 9,734 | 4,242 |
Amusement redemption liability | 9,006 | 7,144 |
Rent | 8,947 | 8,902 |
Property taxes | 4,411 | 2,884 |
Deferred gift card revenue | 3,402 | 4,028 |
Sales and use taxes | 3,319 | 4,282 |
Current portion of long-term insurance reserves | 3,000 | 3,000 |
Other | 9,005 | 5,762 |
Total accrued liabilities | $78,021 | $67,124 |
Long_Term_Debt_Detail
Long Term Debt (Detail) (USD $) | Nov. 03, 2013 | Feb. 03, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Debt outstanding | $344,750 | $345,875 |
Unamortized debt discount | -612 | -796 |
Less current installments | -1,500 | -1,500 |
Long-term debt, less current installments, net of unamortized discount | 342,638 | 343,579 |
Secured Debt | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt outstanding | 144,750 | 145,875 |
Senior Notes | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt outstanding | $200,000 | $200,000 |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Detail) (USD $) | 9 Months Ended | 1 Months Ended | 1 Months Ended | 9 Months Ended | ||||||||||||
In Thousands, unless otherwise specified | Nov. 03, 2013 | Nov. 03, 2013 | Nov. 03, 2013 | Nov. 03, 2013 | 14-May-13 | 14-May-13 | 14-May-13 | 14-May-13 | 14-May-13 | Nov. 03, 2013 | Nov. 03, 2013 | Nov. 03, 2013 | Nov. 03, 2013 | Nov. 03, 2013 | Nov. 03, 2013 | Nov. 03, 2013 |
Person | Minimum | Maximum | Senior Notes | Second Amendment | Second Amendment | Second Amendment | Second Amendment | Second Amendment | Federal Funds Effective Rate plus | Secured Debt | Revolving credit facility | Domestic Line of Credit | Foreign Line of Credit | Swingline sub-facility | Term Loan | |
Scenario 1 | Scenario 1 | Scenario 2 | Scenario 2 | |||||||||||||
Minimum | Maximum | |||||||||||||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior secured credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $150,000 | $50,000 | $20,000 | $1,000 | $5,000 | ' |
Maturity Date | ' | ' | ' | 1-Jun-18 | ' | ' | ' | ' | ' | ' | 1-Jun-16 | 1-Jun-15 | ' | ' | ' | ' |
Proceeds from term loan facility | 148,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt issuance discount cost | 1,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letters of credit outstanding | 5,670 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility, current borrowing | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 144,750 | ' | ' | ' | 144,750 |
Credit facility, current borrowing, net of discount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 144,138 |
Interest Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.50% |
Senior secured credit facility, variable interest rate and interest rate in addition to base rate | ' | 2.50% | 4.50% | ' | ' | ' | ' | ' | ' | 0.50% | ' | ' | ' | ' | ' | ' |
Letters of credit issued, minimum | 12,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letters of credit outstanding, maximum | 12,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduction in term loan margin | ' | ' | ' | ' | ' | 0.75% | ' | 0.25% | ' | ' | ' | ' | ' | ' | ' | ' |
Leverage ratio | ' | ' | 400.00% | ' | ' | ' | 275.00% | ' | 275.00% | ' | ' | ' | ' | ' | ' | ' |
Reduction in LIBOR floor rate | ' | ' | ' | ' | 0.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fixed charge coverage ratio | ' | 115.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Required fixed charge coverage ratio | ' | 130.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Required leverage ratio | ' | ' | 325.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of creditors for senior secured credit facility | 23 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of term loan held by Oak Hill Advisors, L.P. | 9.97% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term loan held by Oak Hill Advisors, L.P. | 14,431 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest Rate | ' | ' | ' | 11.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Frequency of interest payments - Senior Notes | ' | ' | ' | 'Semi-annually | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption price of notes as percentage of principal amount | ' | 100.00% | 105.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption date of notes | 1-Jun-14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior notes | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior notes fair value | $219,800 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consolidated coverage ratio | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future_Debt_Principal_Payment_
Future Debt Principal Payment Obligations (Detail) (USD $) | Nov. 03, 2013 |
In Thousands, unless otherwise specified | |
Debt Instrument [Line Items] | ' |
1 year or less | $1,500 |
2 years | 1,500 |
3 years | 141,750 |
4 years | ' |
5 years | 200,000 |
Thereafter | ' |
Total future payments | $344,750 |
Recorded_Interest_Expense_Net_
Recorded Interest Expense, Net (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 03, 2013 | Oct. 28, 2012 | Nov. 03, 2013 | Oct. 28, 2012 |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Debt-based interest expense | $7,319 | $7,704 | $22,363 | $23,116 |
Amortization of issuance cost and discount | 635 | 578 | 1,939 | 1,908 |
Interest income | -69 | -71 | -209 | -213 |
Less capitalized interest | -98 | -232 | -440 | -439 |
Total interest expense, net | $7,787 | $7,979 | $23,653 | $24,372 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 9 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 03, 2013 | Feb. 02, 2014 | Nov. 03, 2013 | Nov. 03, 2013 |
Subsequent Event | Dave and Buster's Entertainment, Inc. | Internal Revenue Service (IRS) | ||
Income Tax [Line Items] | ' | ' | ' | ' |
Change in valuation allowance | ' | ' | ' | $1,164 |
Unrecognized tax benefits, accrued | 659 | ' | ' | ' |
Penalties and interest, accrued | 323 | ' | ' | ' |
Unrecognized tax benefits if recognized, would impact the effective tax rate | 555 | ' | ' | ' |
Tax related balances | 4,650 | ' | ' | ' |
Income tax payable | 1,739 | ' | 666 | ' |
Available stand alone tax credits | $3,540 | $639 | ' | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 9 Months Ended | 9 Months Ended | |
In Thousands, unless otherwise specified | Nov. 03, 2013 | Nov. 03, 2013 | Dec. 16, 2013 |
Agreement | Maximum | Subsequent Event | |
Agreement | |||
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' |
Operating lease investment | ' | $1,000 | ' |
Lease agreement signed for future site | 9 | ' | 1 |
Operating lease rental future commitments | $546,336 | ' | $10,500 |
Future_Minimum_Lease_Payments_
Future Minimum Lease Payments (Detail) (USD $) | Nov. 03, 2013 |
In Thousands, unless otherwise specified | |
Operating Leased Assets [Line Items] | ' |
Operating Lease Obligations, 1 year or less | $56,603 |
Operating Lease Obligations, 2 years | 55,898 |
Operating Lease Obligations, 3 years | 54,137 |
Operating Lease Obligations, 4 years | 52,371 |
Operating Lease Obligations, 5 years | 49,572 |
Operating Lease Obligations, Thereafter | 277,755 |
Operating Lease Obligations, Total future payments | $546,336 |
Condensed_Consolidating_Financ2
Condensed Consolidating Financial Information - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 03, 2013 | Oct. 28, 2012 | Nov. 03, 2013 | Oct. 28, 2012 |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Result of operation | ($892) | ($2,562) | $32,729 | $28,871 |
Cash flow from operating activities | ' | ' | 86,294 | 67,115 |
Subsidiary Non-Guarantors | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Result of operation | -149 | ' | -176 | ' |
Cash flow from operating activities | ($519) | ' | $723 | ' |
Condensed_Consolidating_Financ3
Condensed Consolidating Financial Information (Detail) (USD $) | Nov. 03, 2013 | Feb. 03, 2013 |
In Thousands, unless otherwise specified | ||
Assets: | ' | ' |
Current assets | $93,260 | $91,818 |
Property and equipment, net | 368,507 | 337,239 |
Tradenames | 79,000 | 79,000 |
Goodwill | 272,341 | 272,278 |
Other assets and deferred charges | 22,399 | 24,218 |
Total assets | 835,507 | 804,553 |
Liabilities and stockholder's equity: | ' | ' |
Current liabilities | 117,662 | 92,883 |
Deferred income taxes | 21,843 | 24,887 |
Deferred occupancy costs | 72,805 | 69,544 |
Other liabilities | 13,178 | 12,684 |
Long-term debt, less current installments, net of unamortized discount (Note 3) | 342,638 | 343,579 |
Stockholder's equity | 267,381 | 260,976 |
Total liabilities and stockholder's equity | 835,507 | 804,553 |
Issuer and Subsidiary Guarantors | ' | ' |
Assets: | ' | ' |
Current assets | 87,179 | 85,696 |
Property and equipment, net | 363,509 | 333,018 |
Tradenames | 79,000 | 79,000 |
Goodwill | 273,725 | 273,725 |
Investment in subsidiary | 3,520 | 4,215 |
Other assets and deferred charges | 21,996 | 23,854 |
Total assets | 828,929 | 799,508 |
Liabilities and stockholder's equity: | ' | ' |
Current liabilities | 111,204 | 87,936 |
Deferred income taxes | 21,843 | 24,887 |
Deferred occupancy costs | 72,685 | 69,446 |
Other liabilities | 13,178 | 12,684 |
Long-term debt, less current installments, net of unamortized discount (Note 3) | 342,638 | 343,579 |
Stockholder's equity | 267,381 | 260,976 |
Total liabilities and stockholder's equity | 828,929 | 799,508 |
Subsidiary Non-Guarantors | ' | ' |
Assets: | ' | ' |
Current assets | 6,081 | 6,122 |
Property and equipment, net | 4,998 | 4,221 |
Goodwill | -1,384 | -1,447 |
Other assets and deferred charges | 403 | 364 |
Total assets | 10,098 | 9,260 |
Liabilities and stockholder's equity: | ' | ' |
Current liabilities | 6,458 | 4,947 |
Deferred occupancy costs | 120 | 98 |
Stockholder's equity | 3,520 | 4,215 |
Total liabilities and stockholder's equity | 10,098 | 9,260 |
Consolidation, Eliminations | ' | ' |
Assets: | ' | ' |
Investment in subsidiary | -3,520 | -4,215 |
Total assets | -3,520 | -4,215 |
Liabilities and stockholder's equity: | ' | ' |
Stockholder's equity | -3,520 | -4,215 |
Total liabilities and stockholder's equity | ($3,520) | ($4,215) |