EXHIBIT 99.1
(DAVE AND BUSTER'S LOGO)
NEWS RELEASE
For Immediate Release
For further information contact:
Investor Relations - 214-904-2288
DAVE & BUSTER'S, INC. REPORTS FOURTH QUARTER
AND FISCAL 2002 RESULTS
DALLAS (APRIL 8, 2003) Dave & Buster's, Inc. (NYSE:DAB), a leading operator of
upscale restaurant/entertainment complexes, announced its results for the fourth
quarter and for the fiscal year ended February 2, 2003.
Total revenues for the fiscal fourth quarter were $99.8 million, a 4.8 percent
decrease compared to the $104.8 million in the same quarter of the prior fiscal
year. Comparable store sales decreased 4.8 percent compared to the fourth
quarter of the prior year. Both total revenues and comparable store sales
continued to be adversely affected during the quarter by the challenging
economic environment impacting the restaurant and entertainment industries.
Operating income for the quarter was $6.7 million compared to $9.1 million in
the same quarter of the prior year, a decrease of 26 percent. Net income for the
quarter was $3.2 million, or $0.24 per diluted share compared to $4.7 million,
or $0.36 per diluted share in prior year fourth quarter.
For the fiscal year ended February 2, 2003, total revenues were $373.8 million,
a 4.4 percent increase over the $358.0 million for fiscal 2001. Same store sales
declined 3.2 percent for the year. Operating income for the year was $15.2
million compared to $19.7 million in the prior fiscal year, a decrease of 22.6
percent. Operating income was affected by a one-time charge of $1.3 million, or
$0.06 per diluted share, relating to the Company's proposed merger that was
terminated on October 24, 2002. Prior to the cumulative effect of a change in an
accounting principle, income for the year was $5.3 million, or $0.40 per diluted
share compared to $7.6 million, or $0.58 per diluted share in the prior year.
The Company applied the new standards of accounting for goodwill and other
intangible assets during the first quarter of fiscal 2002, which resulted in a
one-time charge of $7.1 million, or ($0.53) per diluted share. The cumulative
effect of this change in accounting principle resulted in a net loss for the
year of ($1.7 million), or ($0.13) per diluted share.
The Company amended its credit agreement effective as of February 2, 2003, to be
in compliance with the required EBITDA covenant. EBITDA is generally used by
bankers and investors to evaluate a company's ability to repay debt. In
addition, the fixed charge covenant was amended for the remainder of the term of
the agreement to give the Company more flexibility with regard to capital
expenditures. The Company expects to be in compliance with the credit agreement
covenants going forward.
"We generated more than $45 million of EBITDA for the year, enabling us to
accomplish one of our major objectives, which was the significant reduction of
our long-term debt," commented W. C. Hammett, CFO of Dave & Buster's. "Debt was
reduced by $23 million this year, $17 million of which took place in the fourth
quarter as we focused aggressively on this goal."
"Weak economic conditions and lack of consumer confidence have continued to
affect our top line," stated Buster Corley, co-founder of Dave & Buster's. "We
have taken definitive steps as a result of this business climate, including
suspending our new store expansion, contracting our organization and undergoing
a comprehensive analysis of our operations in order to increase our efficiency
and cut our costs. We believe that these actions will help D&B's team manage the
business in adverse conditions. We will continue to make efficiency and
productivity two of our priorities in fiscal 2003."
"Even with the careful business management that Buster outlined, we have
remained committed to providing a high level of guest experience," stated Dave
Corriveau, co-founder. "Our goal is to achieve the optimum results from our 32
company-operated stores, while keeping Dave & Buster's a destination of choice
for food and fun. To this end, we have undertaken a complete analysis of each of
our facilities, including our Midway layout and game offerings. The enhancements
we have planned during 2003 are designed to raise our guest experience to a new
level."
The Company confirmed its previously announced fiscal year 2003 earnings per
share guidance of $0.77 to $0.85. However, because of the continued uncertain
economic conditions, including the current war with Iraq, the Company has, at
this time, withdrawn any specific guidance for the individual 2003 quarterly
results. For 2003, there will be two stores added to the comparable store base,
bringing the total number of comparable stores to 28.
The Company will hold a conference call with management to discuss its results.
The call will be held on Tuesday, April 8, at 4:15 p.m. local Dallas time.
Interested parties may listen to the conference call over the Internet through
Dave & Buster's website, www.daveandbusters.com. To listen to the live call,
please access the web site at least fifteen minutes early to register, download,
and install any necessary audio software. For those who cannot listen to the
live broadcast, a replay will be available shortly after the call on the
website. The archived call will be available for two weeks.
Celebrating over 20 years of operations, Dave & Buster's was founded in 1982 and
is one of the country's leading upscale, restaurant/entertainment concepts, with
32 Dave & Buster's locations throughout the United States. Additionally, Dave &
Buster's has international agreements for the Pacific Rim, Canada, the Middle
East and Mexico.
FORWARD-LOOKING STATEMENTS
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 result 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.
(tables follow)
DAVE & BUSTER'S, INC.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
<Table>
<Caption>
February 2, 2003 February 3, 2002
---------------- ----------------
ASSETS
Current assets
Cash and cash equivalents $ 2,530 $ 4,521
Other current assets 30,819 29,851
---------------- ----------------
Total current assets 33,349 34,372
Property and equipment, net 249,451 265,398
Other assets 8,412 9,364
---------------- ----------------
$ 291,212 $ 309,134
================ ================
LIABILITIES AND STOCKHOLDERS' EQUITY
Total current liabilities $ 37,580 $ 38,850
Other long-term liabilities 24,536 15,242
Long-term debt 59,494 84,896
Stockholders' equity
Common Stock 132 131
Paid in capital 116,678 115,701
Restricted stock awards 608 382
Retained earnings 54,030 55,778
---------------- ----------------
171,448 171,992
Less:Treasury stock 1,846 1,846
---------------- ----------------
Total stockholders' equity 169,602 170,146
---------------- ----------------
$ 291,212 $ 309,134
================ ================
</Table>
DAVE & BUSTER'S, INC.
Consolidated Statements of Income
(dollars in thousands, except per share amounts)
(unaudited)
<Table>
<Caption>
13 Weeks Ended 13 Weeks Ended
February 2, 2003 February 3, 2002
-------------------- --------------------
Food and beverage revenues $ 54,033 54.1% $ 55,033 52.5%
Amusement and other revenues 45,777 45.9% 49,773 47.5%
-------- --------
Total revenues 99,810 100.0% 104,806 100.0%
Cost of sales 18,338 18.4% 19,435 18.5%
Operating payroll and benefits 28,731 28.8% 31,271 29.8%
Other store operating expenses 32,292 32.4% 31,554 30.1%
General and administrative 5,976 6.0% 5,279 5.0%
Depreciation and amortization 7,536 7.6% 7,378 7.0%
Preopening costs 230 0.2% 828 0.8%
-------- --------
Total operating expenses 93,103 93.3% 95,745 91.4%
Operating income 6,707 6.7% 9,061 8.6%
Interest expense, net 1,887 1.9% 1,757 1.7%
-------- --------
Income before provision for income taxes 4,820 4.8% 7,304 7.0%
Provision for income taxes 1,639 1.6% 2,644 2.5%
-------- --------
Net income $ 3,181 3.2% $ 4,660 4.4%
======== ========
Net income per share:
Basic $ 0.24 $ 0.36
Diluted $ 0.24 $ 0.36
Weighted average shares outstanding:
Basic 13,029 12,957
Diluted 13,219 12,992
Other information:
Company operated stores open 32 31
EBITDA (Earnings before interest, taxes,
depreciation and amortization:
Total operating income $ 6,707 $ 9,061
Add back depreciation and amortization 7,536 7,378
-------- --------
EBITDA $ 14,243 $ 16,439
</Table>
DAVE & BUSTER'S, INC.
Consolidated Statements of Income
(dollars in thousands, except per share amounts)
(unaudited)
<Table>
<Caption>
52 Weeks Ended 52 Weeks Ended
February 2, 2003 February 3, 2002
-------------------- --------------------
Food and beverage revenues $ 192,882 51.6% $ 181,358 50.7%
Amusement and other revenues 180,870 48.4% 176,651 49.3%
--------- ---------
Total revenues $ 373,752 100.0% 358,009 100.0%
Cost of sales 68,752 18.4% 66,939 18.7%
Operating payroll and benefits 114,904 30.7% 110,478 30.9%
Other store operating expenses 117,666 31.5% 106,971 29.9%
General and administrative 25,640 6.9% 20,653 5.8%
Depreciation and amortization 30,056 8.0% 28,693 8.0%
Preopening costs 1,488 0.4% 4,578 1.3%
--------- ---------
Total costs and expenses 358,506 95.9% 338,312 94.5%
Operating income 15,246 4.1% 19,697 5.5%
Interest expense, net 7,143 1.9% 7,820 2.2%
--------- ---------
Income before provision for income taxes
and cumulative effect of a change in
an accounting principle 8,103 2.2% 11,877 3.3%
Provision for income taxes 2,755 0.7% 4,299 1.2%
--------- ---------
Income before cumulative effect of a
change in an accounting principle $ 5,348 1.4% $ 7,578 2.1%
Cumulative effective of a change in an
accounting principle (7,096) 1.9% -- --
--------- ---------
Net income (loss) $ (1,748) (0.5)% $ 7,578 2.1%
========= =========
Net income (loss) per share - basic
before cumulative effect of a change
in an accounting principle $ 0.41 $ 0.58
Cumulative effect of a change in
an accounting principle (0.55) --
--------- ---------
$ (0.14) $ 0.58
Net income (loss) per share - diluted
before cumulative effect of a change
in an accounting principle $ 0.40 $ 0.58
Cumulative effect of a change in
an accounting principle (0.53) --
--------- ---------
$ (0.13) $ 0.58
Basic weighted average shares outstanding 12,997 12,956
Diluted weighted average shares outstanding 13,404 13,016
EBITDA (Earnings before interest, taxes,
depreciation and amortization):
Operating Income $ 15,246 $ 19,697
Add back depreciation and amortization 30,056 28,693
--------- ---------
EBITDA $ 45,302 $ 48,390
</Table>
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