DALLAS, March 28, 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 fourth quarter and fiscal year ended January 30, 2022.

As of January 30, 2022, all of the Company�s 142 stores in the United States and Puerto Rico were open, including 1 new store opened during the quarter. The Company�s two Canadian stores were required by provincial mandate to temporarily close in early January. Both Canadian stores reopened in early Fiscal 2022.

Key Fourth Quarter 2021 Highlights

• Revenue decreased by 1.2% from the fourth quarter of 2019 to $343.1 million�compared with�$116.8 million�in the fourth quarter of 2020 and�$347.2 million�in the fourth quarter of 2019
• Comparable store sales declined 2.6% compared with the same period in 2019 excluding 14 stores located in markets that had vaccine mandates during the quarter. Including all stores, comparable store sales decreased 6.8% compared with the same period in 2019
• Net income totaled $25.7 million, or�$0.52�per diluted share, compared with net loss of�$56.8 million, or�$(1.19)�per share in the fourth quarter of 2020 and net income of�$25.0 million, or�$0.80�per diluted share in the fourth quarter of 2019
• Adjusted EBITDA increased 12.7% from the fourth quarter of 2019 to $87.7 million, or 25.5% of revenue, compared with Adjusted EBITDA loss of�$16.0 million�in the fourth quarter of 2020 and Adjusted EBITDA of�$77.8 million, or 22.4% of revenue in the fourth quarter of 2019
• During the fourth quarter, the Company redeemed�$55 million�of 7.625% senior secured notes at 103% of principal, saving approximately�$4.2 million�in annualized interest. The Company�s net debt leverage ratio was approximately 1.2x as of January 30, 2022

Key Fiscal Year 2021 Highlights

• Revenue decreased by 3.7% from fiscal year 2019 to $1.30 billion�compared with�$436.5 million�in fiscal year 2020 and�$1.35 billion�in fiscal year 2019
• Overall comparable store sales decreased 10.6% compared with the same period in 2019
• Net income totaled $108.6 million, or�$2.21�per diluted share, compared with net loss of�$207.0 million, or�$(4.75)�per share in fiscal year 2020 and net income of�$100.3 million, or�$2.94�per diluted share in fiscal year 2019
• Adjusted EBITDA increased by 14.1% from fiscal year 2019 to $351.7 million, or 27.0% of revenue, compared with Adjusted EBITDA loss of�$81.3 million�in fiscal year 2020 and Adjusted EBITDA of�$308.2 million, or 22.8% of revenue in fiscal year 2019

�We are pleased to report strong fourth quarter and fiscal year financial results,� said Kevin Sheehan, Dave & Buster�s Board Chair and Interim Chief Executive Officer. �Fiscal 2021 was a demanding year but our store management teams � and all of our team members rose to the challenge working tirelessly to return our stores to fully operational status. Despite continuing headwinds from COVID-19 (including vaccine requirements in certain markets) we saw strong sales across our stores in fiscal 2021. We also generated a double-digit Adjusted EBITDA increase in the year driven, in part, by our strong focus on process improvement and lean initiatives across our business. This Company has significant upside potential and with our continued focus on innovation, growth and value creation, we are driving toward unlocking that value. We are optimistic about the future and look forward to sharing our ongoing progress with everyone.�

Fourth Quarter 2021 Results

Total revenue of�$343.1 million�increased 193.7% from�$116.8 million in the fourth quarter of 2020 and decreased 1.2% from�$347.2 million�in the fourth quarter of 2019. Comparable store sales decreased 6.8% compared with the fourth 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 2.1% while Special Event comparable store sales declined 58.0% compared with the same period in 2019. Non-comparable store revenue totaled�$65.8 million�compared with�$27.3 million�in the fourth quarter of 2020.

Operating income totaled�$46.5 million, or 13.6% of revenue, compared with operating loss of�$54.0 million, or (46.3)% of revenue in the fourth quarter of 2020 and operating income�$37.6 million, or 10.8% of revenue in the fourth quarter of 2019.

Net income totaled�$25.7 million, or�$0.52�per diluted share, compared with net loss of�$56.8 million, or�$(1.19)�per share in the fourth quarter of 2020 and net income of�$25.0 million, or�$0.80�per diluted share in the fourth quarter of 2019.

Adjusted EBITDA totaled�a record $87.7 million, or 25.5% of revenue, compared with Adjusted EBITDA loss of�$16.0 million, or (13.7)% of revenue in the fourth quarter of 2020 and Adjusted EBITDA of�$77.8 million, or 22.4% of revenue in the fourth quarter of 2019.

Store operating income before depreciation and amortization totaled�$101.1 million, or 29.5% of revenue, compared with store operating loss before depreciation and amortization of�$6.0 million, or (5.2)% of revenue in the fourth quarter of 2020 and�store operating income before depreciation and amortization of $96.3 million, or 27.7% of revenue in the fourth quarter of 2019.

Fiscal Year 2021 Results

Total revenue of�$1.30 billion�increased 198.7% from�$436.5 million in fiscal year 2020 and decreased 3.7% from�$1.35 billion�in fiscal year 2019. Comparable store sales decreased 10.6% compared with fiscal year 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 declined 3.6% while Special Event comparable store sales declined 71.6% compared to 2019. Non-comparable store revenue totaled�$250.3 million�compared with�$83.2 million�in fiscal year 2020.

Operating income totaled�$187.2 million, or 14.4% of revenue, compared with operating loss of�$252.6 million, or (57.9)% of revenue in fiscal year 2020 and operating income�$148.1 million, or 10.9% of revenue in fiscal year 2019.

Net income totaled�$108.6 million, or�$2.21�per diluted share, compared with net loss of�$207.0 million, or�$(4.75)�per share in fiscal year 2020 and net income of�$100.3 million, or�$2.94�per diluted share in fiscal year 2019.

Adjusted EBITDA totaled�$351.7 million, or 27.0% of revenue, compared with Adjusted EBITDA loss of�$81.3 million, or (18.6)% of revenue in fiscal year 2020 and Adjusted EBITDA of�$308.2 million, or 22.8% of revenue in fiscal year 2019.

Store operating income before depreciation and amortization totaled�$409.2 million, or 31.4% of revenue, compared with store operating loss before depreciation and amortization of�$55.3 million, or (12.7)% of revenue in fiscal year 2020 and�store operating income before depreciation and amortization of $369.0 million, or 27.2% of revenue in fiscal year 2019.

Balance Sheet, Liquidity and Cash Flow

The Company generated approximately�$84.6 million�in operating cash flow during the fourth quarter, ending the quarter with�$25.9 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.

Total long-term debt consisting of 7.625% senior secured notes maturing in 2025, totaled $440 million�at January 30, 2022. As part of its ongoing capital allocation strategy, the Company redeemed $55 million of its senior secured notes during the fourth quarter utilizing a redemption option in the Company�s�October 2020�indenture agreement, resulting in annualized interest savings of approximately�$4.2 million.

The Company�s net debt leverage ratio was approximately 1.2x as of January 30, 2022.

First Quarter 2022 Business Update and Outlook

The Company�s business has strengthened through the first eight weeks of the first quarter, during which comparable store sales increased 5.4% compared with the same period in 2019. Walk-in comparable store sales increased 9.1% while Special Event comparable store sales declined 42.0% for the eight-week period compared with 2019.

Annual Report on Form 10-K Available

The Company�s Annual Report on Form 10-K, available at www.sec.gov and at the Company�s investor relations website, contains a thorough review of its financial results for the fourth quarter and fiscal year ended January 30, 2022.

Investor Conference Call and Webcast

Management will hold a conference call to report these results on Tuesday, March 29, 2022 at 7:30 a.m. Central Time (8:30 a.m. Eastern Time). The conference call can be accessed over the phone by dialing (720) 543-0302 or toll-free (888) 224-1005. A replay will be available after the call for one year beginning at 10:30 a.m. Central Time (11:30 a.m. Eastern Time) and can be accessed by dialing (412) 317-6671 or toll-free (844) 512-2921; the passcode is 1540828. 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 144 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 40 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, CFO
Dave & Buster�s Entertainment, Inc.
972.813.1151
[email protected]