Dave & Buster's Reports Fourth Quarter and Fiscal Year End 2024 Financial Results; Repurchases $108 Million of Shares and Executes Sale Leaseback of Five Properties for $111 Million

DALLAS, April 07, 2025 (GLOBE NEWSWIRE) -- Dave & Buster's Entertainment, Inc., (NASDAQ:PLAY), ("Dave & Buster's" or "the Company"), an owner and operator of entertainment and dining venues, today announced financial results for its fourth quarter and fiscal year ended February 4, 2025. The Company's fiscal 2024 consisted of 13 weeks in the fourth quarter and 52 weeks in the fiscal year, whereas the Company's prior fiscal year (fiscal 2023) consisted of 14 weeks in the fourth quarter and 53 weeks in the fiscal year. The 14th week in the fourth quarter of fiscal 2023, also the 53rd week in fiscal 2023, contributed $39.5 million in revenue.

Fourth Quarter 2024 Financial Summary

Revenue of $534.5 million decreased 10.8% from the fourth quarter of fiscal 2023.

Comparable store sales decreased 9.4% compared to the same calendar period of fiscal 2023.

Net income totaled $9.3 million, or $0.24 per diluted share, compared with net income of $36.2 million, or $0.88 per diluted share in the fourth quarter of fiscal 2023. Adjusted net income, a non-GAAP measure, totaled $26.8 million, or $0.69 per diluted share, compared with an Adjusted net income of $42.0 million, or $1.03 per diluted share in the fourth quarter of fiscal 2023. See reconciliation of non-GAAP measures below.

Adjusted EBITDA, a non-GAAP measure, of $127.2 million, or 23.8% of revenue, in the quarter decreased 16.2% from the fourth quarter of fiscal 2023. See reconciliation of non-GAAP measures below.

Fiscal 2024 Financial Summary

Revenue of $2.1 billion decreased 3.3% from fiscal 2023.

Comparable store sales decreased 7.2% compared to the same calendar period in fiscal 2023.

Net income totaled $58.3 million, or $1.46 per diluted share, compared with net income of $126.9 million, or $2.88 per diluted share in fiscal 2023. Adjusted net income, a non-GAAP measure, totaled $101.4 million, or $2.53 per diluted share, compared with an Adjusted net income of $156.9 million, or $3.56 per diluted share in fiscal 2023. See reconciliation of non-GAAP measures below.

Adjusted EBITDA, a non-GAAP measure, of $506.2 million, or 23.7% of revenue, decreased 8.9% from fiscal 2023. See reconciliation of non-GAAP measures below.

Additional Events and Commentary

The Company opened five new stores in the fourth quarter for a total of 14 new stores (11 Dave & Buster's and three Main Events) in fiscal 2024.

The Company remodeled an additional 15 Dave & Buster's stores in the fourth quarter of fiscal 2024 and year to date in fiscal 2025. It has completed a total of 44 remodels of Dave & Buster's stores since the start of the remodel program in 2023.

The Company repurchased approximately 5 million shares in fiscal 2024 totaling $172.0 million and representing 12.4% of the Company's outstanding shares as of the end of fiscal 2023. The Company has repurchased approximately 1 million shares to date in fiscal 2025 totaling $23.9 million. As of today, the remaining share repurchase authorization approved by the Board of Directors is approximately $104 million.

In the fourth quarter of fiscal 2024, the Company closed on a sale leaseback transaction for the real estate of three Dave & Buster's stores and two Main Event stores with an institutional real estate investor and generated $111.4 million in proceeds.

In December 2024, the Company opened its first franchise location in Bengaluru, India. To date, the Company has entered into international franchise partnership agreements with over 35 stores committed to development, with sites across five countries under current development and anticipates at least six additional franchise units opening in the next 12 months.

The Company ended the fourth quarter of fiscal 2024 with $510.4 million of liquidity, which included $6.9 million in cash and $503.5 million available under its $650.0 million revolving credit facility, net of letters of credit.

"While we are disappointed by our results in the fourth quarter, we are very encouraged by the clear opportunities we have identified over the past few months and the most recent trends in the business since taking actions to unwind mistakes and make appropriate changes. Previous leadership, while well intentioned, made significant and ill-advised changes to marketing, food and beverage, operations, remodels and games investment that negatively impacted the business. The current leadership team has been systematically unwinding these mistakes and pursuing a "back to basics" strategy while making high confidence improvements to the key areas of the business entirely in line with our previously communicated strategic plan. For the avoidance of doubt, our strategic plan is the right plan; execution against it was flawed. We are highly confident that our current actions will lead to significantly improved revenue, adjusted EBITDA, free cash flow and shareholder value in the months ahead," said Kevin Sheehan, Board Chair and Interim Chief Executive Officer.

Sheehan continued, "Results in March and April have notably improved from the trend of the fourth quarter and February, and we expect results to continue to improve in the coming months. Our financial position remains strong with relatively low leverage, no near-term debt maturities and no operative financial covenants. As you all know, we have an excellent business model with high returns on new unit investment, best in class store level unit economics, disciplined expense management, and significant operating free cash flow generation. Importantly, the current leadership team and the full Board are laser focused on managing this business to drive both revenue growth and free cash flow generation. Our team could not be more excited by the opportunities we see ahead to meaningfully improve the operating performance of the business and shareholder value."

Cash Flow, Liquidity and Leverage

The Company generated $108.9 million in operating cash flow during the fourth quarter, ending the quarter with $510.4 million of available liquidity (cash plus availability under its $650.0 million revolving credit facility). The Company ended the quarter with a Net Total Leverage Ratio of 2.8x.1

_________________________________________1 Net Total Leverage Ratio is defined in the Company's Credit Facility as the ratio of the aggregate principal amount of any Consolidated Debt less Unrestricted Cash and unrestricted Permitted Investments to Credit Adjusted EBITDA.

Outlook for Financial Items in Fiscal 2025

The Company provides its current outlook for certain financial items (which are still under review) for fiscal 2025, which ends on February 3, 2026:

Total capital expenditures of less than $220 million2

Pre-opening expense of approximately $20 million

Cash interest expense of $130 million to $140 million

_________________________________________2 Includes capital expenditures on new stores (net of anticipated payments from landlords), remodels and other initiatives, games and maintenance.

Annual Report on Form 10-K Available

The Company's Annual Report on Form 10-K, which will be available at www.sec.gov and on the Company's investor relations website, contains a review of its financial results for the fiscal year ended February 4, 2025.

Investor Conference Call and Webcast

Management will host a conference call to discuss these results on Monday, April 7, 2025, at 4:00 p.m. Central Time (5:00 p.m. Eastern Time). A live and archived webcast of the conference call will be available under the Investor Relations section of the Company's website at ir.daveandbusters.com. Additionally, participants can access the conference call by dialing toll-free (877) 883-0383. The international dial-in for participants is (412) 902-6506. The participant entry number is 0450839. A replay will be available after the call for one year beginning at 6:00 p.m. Central Time (7:00 p.m. Eastern Time) and can be accessed by dialing toll-free (877) 344-7529 or by the international toll number (412) 317-0088. The replay access code is 2968077.

About Dave & Buster's Entertainment, Inc.

Founded in 1982 and headquartered in Coppell, Texas, Dave & Buster's Entertainment, Inc., is the owner and operator of 232 venues in North America that offer premier entertainment and dining experiences to guests through two distinct brands: Dave & Buster's and Main Event. The Company has 171 Dave & Buster's branded stores in 42 states, Puerto Rico, and Canada and offers guests the opportunity to "Eat Drink Play and Watch," all in one location. Each store offers a full menu of entrées and appetizers, a complete selection of alcoholic and non-alcoholic beverages, and an extensive assortment of entertainment attractions centered around playing games and watching live sports and other televised events. The Company also operates 61 Main Event branded stores in 22 states across the country, and offers state-of-the-art bowling, laser tag, hundreds of arcade games and virtual reality, making it the perfect place for families to connect and make memories. For more information about each brand, visit daveandbusters.com and mainevent.com.

Forward-Looking Statements

The Company cautions that this release contains forward-looking statements. These forward-looking statements involve risks and uncertainties, including: our ability to continue as a going concern; our ability to obtain waivers, and thereafter continue to satisfy covenant requirements under our revolving credit facility; our ability to access other funding sources; our overall 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. Accordingly, actual results may differ materially from the forward-looking statements, and the Company therefore cautions you against relying on such forward-looking statements. The Company intends these forward-looking statements to speak only as of the time of this release and does not undertake to update or revise them as more appropriate information becomes available, except as required by law.

Non-GAAP Measures

To supplement its consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"), the Company uses the following non-GAAP financial measures: Adjusted EBITDA, Credit Adjusted EBITDA (calculated in accordance with the Company's Credit Facility), Net Total Leverage Ratio (calculated in accordance with the Company's Credit Facility), Store operating income before depreciation and amortization, Adjusted net income, and Adjusted net income per share - Diluted, reconciliations of which can be found on the following pages (collectively the "non-GAAP financial measures"). The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. The Company uses these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. The Company believes that they provide useful information about operating results, enhance the overall understanding of our operating performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making. The non-GAAP measures used by the Company in this press release may be different from the measures used by other companies or calculated differently than similar measures used by other companies.

For Investor Relations Inquiries:

Cory Hatton, Head of Entertainment Finance, Investor Relations & TreasurerDave & Buster's Entertainment,

 

 

DAVE & BUSTER'S ENTERTAINMENT, INC.Consolidated Statements of Operations(unaudited in millions, except per share data)

 

 

Quarter Ended

 

Fiscal Year Ended

 

February 4, 2025

 

February 4, 2024

 

February 4, 2025

 

February 4, 2024

Entertainment revenues

$

        335.0

 

 

        62.7

%

 

$

        378.9

 

 

        63.2

%

 

$

        1,391.0

 

 

        65.2

%

 

$

        1,434.8

 

 

        65.1

%

Food and beverage revenues

 

199.5

 

 

        37.3

%

 

 

220.2

 

 

        36.8

%

 

 

741.7

 

 

        34.8

%

 

 

770.5

 

 

        34.9

%

Total revenues

 

        534.5

 

 

        100.0

%

 

 

        599.1

 

 

        100.0

%

 

 

        2,132.7

 

 

        100.0

%

 

 

        2,205.3

 

 

        100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of entertainment (1)(2)

 

        27.4

 

 

        8.2

%

 

 

        37.5

 

 

        9.9

%

 

 

        118.6

 

 

        8.5

%

 

 

        138.5

 

 

        9.7

%

Cost of food and beverage (1)(2)

 

        50.1

 

 

        25.1

%

 

 

        57.8

 

 

        26.2

%

 

 

        195.8

 

 

        26.4

%

 

 

        214.5

 

 

        27.8

%

Total cost of products

 

        77.5

 

 

        14.5

%

 

 

        95.3

 

 

        15.9

%

 

 

        314.4

 

 

        14.7

%

 

 

        353.0

 

 

        16.0

%

Operating payroll and benefits (2)

 

        129.8

 

 

        24.3

%

 

 

        148.5

 

 

        24.8

%

 

 

        523.5

 

 

        24.5

%

 

 

        525.9

 

 

        23.8

%

Other store operating expenses (2)

 

        172.9

 

 

        32.3

%

 

 

        173.6

 

 

        29.0

%

 

 

        690.4

 

 

        32.4

%

 

 

        669.5

 

 

        30.4

%

General and administrative expenses (2)

 

        18.9

 

 

        3.5

%

 

 

        27.8

 

 

        4.6

%

 

 

        99.5

 

 

        4.7

%

 

 

        113.8

 

 

        5.2

%

Depreciation and amortization expense

 

        64.0

 

 

        12.0

%

 

 

        58.6

 

 

        9.8

%

 

 

        238.2

 

 

        11.2

%

 

 

        208.5

 

 

        9.5

%

Pre-opening costs

 

        6.1

 

 

        1.1

%

 

 

        5.7

 

 

        1.0

%

 

 

        18.7

 

 

        0.9

%

 

 

        18.4

 

 

        0.8

%

Other charges and gains (2)

 

        21.2

 

 

        4.0

%

 

 

        —

 

 

        —

%

 

 

        27.6

 

 

        1.3

%

 

 

        9.6

 

 

        0.4

%

Total operating costs

 

        490.4

 

 

        91.7

%

 

 

        509.5

 

 

        85.0

%

 

 

        1,912.3

 

 

        89.7

%

 

 

        1,898.7

 

 

        86.1

%

Operating income

 

        44.1

 

 

        8.3

%

 

 

        89.6

 

 

        15.0

%

 

 

        220.4

 

 

        10.3

%

 

 

        306.6

 

 

        13.9

%

Interest expense, net

 

        35.4

 

 

        6.6

%

 

 

        34.9

 

 

        5.8

%

 

 

        135.3

 

 

        6.3

%

 

 

        127.4

 

 

        5.8

%

Loss on debt refinancing

 

        —

 

 

        —

%

 

 

        4.9

 

 

        0.8

%

 

 

        15.2

 

 

        0.7

%