DALLAS, June 07, 2022 (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 first quarter ended May 1, 2022.

Key First Quarter 2022 Highlights

• Revenue increased 24.1% from the first quarter of 2019 to a record $451.1 million�compared with�$265.3 million�in the first quarter of 2021 and�$363.6 million�in the first quarter of 2019
• Total comparable sales increased 10.9% compared with the same period in 2019
• Net income totaled a record $67.0 million, or�$1.35�per diluted share, compared with net income of�$19.6 million, or�$0.40 per diluted share in the first quarter of 2021 and net income of�$42.4 million, or�$1.13�per diluted share in the first quarter of 2019
• Adjusted EBITDA increased 45.9% from the first quarter of 2019 to a record $143.2 million or 31.8% of revenue, compared with Adjusted EBITDA of�$76.7 million�in the first quarter of 2021 (28.9% of revenue) and Adjusted EBITDA of�$98.2 million, or 27.0% of revenue in the first quarter of 2019
• Ended the quarter with�$139.1 million�in cash, approximately�$492.5 million�of liquidity available under the Company�s�$500 million�revolving credit facility, net of $7.5 million�in letters of credit, and a net debt leverage ratio of 0.7x

�We are pleased to report another quarter of outstanding financial results,� said Kevin Sheehan, Dave & Buster�s Board Chair and Interim Chief Executive Officer. �We set records for revenue, net income and Adjusted EBITDA in the first quarter indicating a return to a normalized operating environment. I am so proud of our teams as they have enthusiastically welcomed back guests to our stores. We are excited about the trajectory of our business and particularly the next few months as we begin our �Summer of Games� roll-out that we hope will drive even more visitation to our stores. As demonstrated by our first quarter results, our teams continue to execute on our initiatives to drive organic growth, improve profitability, and produce significant cash flow from the business. We have significant upside potential and with our continued focus on innovation, growth and value creation, we are determined to deliver on that potential. To that end, we are excited to add Main Event to the Dave & Buster�s team. Their strong management team and strategic fit with our Company provide for even more growth opportunities, for both brands, which will benefit all stakeholders. We expect to close the transaction in a few weeks and we will have more to say about Main Event shortly thereafter. We are optimistic about the future and look forward to sharing our ongoing progress in the coming quarters.�

Michael Quartieri, Dave & Buster�s Chief Financial Officer, said: �Our record first quarter results demonstrate our ability to drive revenue, profitability and strong cash flow despite continued headwinds in the economy.� We are benefiting from a higher mix of amusements and a leaner operating model. While we are still experiencing pressures from wage and commodity inflation, our margins continued to improve as we have offset inflationary costs with a more efficient labor model, costs savings and efficiencies and thoughtful pricing actions. In addition, over the past year we have reduced our net debt ratio to 0.7x and ended the first quarter of 2022 with $139 million of cash on the balance sheet.�

First Quarter 2022 Results

Total revenue was a record $451.1 million, an�increase of 70.0% from�$265.3 million in the first quarter of 2021 and an increase of 24.1% from�$363.6 million�in the first quarter of 2019. Comparable store sales increased 10.9% compared with the first quarter of 2019 (the Company has chosen to continue reporting comparable store sales versus 2019 in order to provide a more meaningful comparison). Walk-in comparable store sales increased 14.7% while Special Event comparable store sales declined 34.6% compared with the same period in 2019. Non-comparable store revenue totaled�$89.2 million�compared with $58.5 million in the first quarter of 2021 and $33.9 million�in the first quarter of 2019.

Operating income totaled�a record $98.7 million, or 21.9% of revenue, compared with operating income of�$37.0 million, or 14.0% of revenue in the first quarter of 2021 and operating income�$57.7 million, or 15.9% of revenue in the first quarter of 2019.

Net income totaled�a record $67.0 million, or�$1.35�per diluted share, compared with net income of�$19.6 million, or�$0.40�per diluted share in the first quarter of 2021 and net income of�$42.4 million, or�$1.13�per diluted share in the first quarter of 2019.

Adjusted EBITDA totaled�a record $143.2 million, or 31.8% of revenue, compared with adjusted EBITDA of�$76.7 million, or 28.9% of revenue in the first quarter of 2021 and adjusted EBITDA of�$98.2 million, or 27.0% of revenue in the first quarter of 2019.

Store operating income before depreciation and amortization totaled�$163.3 million, or 36.2% of revenue, compared with store operating income before depreciation and amortization of�$90.8 million, or 34.2% of revenue in the first quarter of 2021 and�store operating income before depreciation and amortization of $112.7 million, or 31.0% of revenue in the first quarter of 2019.

Balance Sheet, Liquidity and Cash Flow

The Company generated approximately�$148.6 million�in operating cash flow during the first quarter, ending the quarter with�$139.1 million�in cash and approximately�$492.5 million�of availability under its�$500 million�revolving credit facility, net�$7.5 million�in letters of credit.

The Company�s net debt leverage ratio was approximately 0.7x as of May 1, 2022.

Second Quarter 2022 Business Update

The Company�s business has continued to strengthen through the first five weeks of the second quarter, during which comparable store sales increased 12.2% compared with the same period in 2019. Walk-in comparable store sales increased 17.8% while Special Event comparable store sales declined 27.9% for the five-week period compared with 2019.

Quarterly Report on Form 10-Q Available

The Company�s Quarterly Report on Form 10-Q, will be available at www.sec.gov and at the Company�s investor relations website, contains a thorough review of its financial results for the first quarter ended May 1, 2022.

Investor Conference Call and Webcast

Management will hold a conference call to report these results on Tuesday, June 7, 2022, at 7:30 a.m. Central Time (8:30 a.m. Eastern Time). Participants can register for the conference by navigating to https://dpregister.com/sreg/10167749/f310771715. Registered participants will receive their dial in number upon registration. Those who are unable to pre-register can access the conference call by dialing toll-free (877) 270-2148. The international dial-in for unregistered participants is (412) 902-6510. A replay will be available after the call for one year beginning at 9:30 a.m. Central Time (10:30 a.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 2607413. Additionally, a live and archived webcast of the conference call will be available under the Investor Relations section at�www.daveandbusters.com.

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 147 venues in�North America�that combine entertainment and dining and offer customers the opportunity to �Eat Drink Play and Watch,� all in one location. Dave & Buster�s offers a full menu of entr�es 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.�Dave & Buster�s currently has stores in 41 states,�Puerto Rico, and�Canada.

Forward-Looking Statements

The Company cautions that this release contains forward-looking statements, including, without limitation, statements relating to the impact on our business and operations of the coronavirus pandemic. These forward-looking statements involve risks and uncertainties and, consequently, could be affected by the uncertain and unprecedented impact of the pandemic and new coronavirus variants on our business and operations and the related impact on our liquidity needs; 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; the implementation and duration of government-mandated and voluntary shutdowns and restrictions; the speed with which our stores safely can be reopened and fully operated and the level of customer demand following reopening and full operations; the economic impact of the pandemic and related disruptions on the communities we serve; our overall level of indebtedness; general business and economic conditions, including as a result of the pandemic; 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, including as a result of the pandemic; 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. Dave & Buster�s 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 GAAP, the Company uses the following non-GAAP financial measures: EBITDA, EBITDA margin, Adjusted EBITDA, Adjusted EBITDA margin, Store operating income before depreciation and amortization, and store operating income before depreciation and amortization margin (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.

For Investor Relations Inquiries:

Michael Quartieri, SVP & Chief Financial Officer
Dave & Buster�s Entertainment, Inc.
(972) 813-1151
[email protected]