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Dave & Buster's Entertainment, Inc., (NASDAQ: PLAY), an owner and operator of entertainment and dining venues, today announced quarterly revenue, net income, and Adjusted EBITDA for its third quarter of fiscal year 2021, which ended on October 31, 2021.
As of October31, all of the Company’s 143 stores were open, including 1 new store opened during the quarter.
Key Third Quarter 2021Highlights:
· Revenue increased 6.2% from the third quarter of 2019 to $318.0 million, compared with $109.1 million in the third quarter of 2020 and $299.4 million in the third quarter of 2019.
· Comparable store sales increased 1.1% compared with the same period in 2019 excluding 7 stores located in markets that had vaccine mandates during the quarter. Including all stores, comparable store sales decreased 0.4% compared with the same period in 2019.
· Net income totaled $10.6 million, or $0.21 per diluted share, compared with net loss of $48.0 million, or $1.01 per share in the third quarter of 2020 and net income of $0.5 million, or $0.02 per diluted share in the third quarter of 2019.
· Adjusted EBITDA increased 47.4% from the third quarter of 2019 to $68.2 million, or 21.5% of revenue, compared with Adjusted EBITDA loss of $16.0 million in the third quarter of 2020 and Adjusted EBITDA of $46.3 million, or 15.5% of revenue in the third quarter of 2019.
· Ended the quarter with $27 million in cash and approximately $340 million of liquidity available under the Company’s $500 million revolving credit facility, net of a $150 million minimum liquidity covenant and $10 million in letters of credit.
· During the third quarter, the Company redeemed $55 million of 7.625% senior secured notes at 103% of principal. Subsequently, in November 2021, the Company redeemed an additional $55 million of the 7.625% senior secured notes at 103%.
“We are pleased to report strong third quarter financial results,” said Kevin Sheehan, Dave & Buster’s Interim Chief Executive Officer. “Since assuming the role, I have been impressed with our team’s hard work and dedication to operating in this evolving environment. I am excited to be working with them as we look forward to more normalized operations across our stores. We have begun anew phase of innovation, growth and value creation with a focus on realizing the Company’s significant upside potential. I am excited about the future and look forward to sharing our progress with all of our stakeholders.”
Third Quarter 2021 Results:
Total revenue of $318.0 million increased 191.6% from $109.1 in the third quarter of 2020 and increased 6.2% from $299.4million in the third quarter of 2019. Comparable store sales increased 1.1% compared with the same period in 2019 excluding 7 stores located in markets that had vaccine mandates during the quarter. Including all stores, comparable store sales decreased 0.4% comparedwith the same period in 2019. Walk-in comparable store sales increased 6% while Special Event comparable store sales declined 64% comparedwith the same period in 2019. Non-comparable store revenue totaled $55.4 million compared with $20.1 million in the third quarter of 2020.
Operating income totaled $24.5 million, or 7.7% of revenue, compared with operating loss of $56.0 million, or (51.4)% of revenue in the third quarter of 2020 and operating income $6.5 million, or 2.2% of revenue in the third quarter of 2019.
Net income totaled $10.6 million, or $0.21 per diluted share, compared with net loss of $48.0 million, or $1.01 per share in the third quarter of 2020 and net income of $0.5 million, or $0.02 per diluted share in the third quarter of2019.
Adjusted EBITDA increased 47.4% from the third quarter of 2019 to $68.2 million, or 21.5% of revenue, compared with Adjusted EBITDA loss of $16.0 million, or (14.6)% of revenue in the third quarter of 2020 and Adjusted EBITDA of $46.3 million, or 15.5% of revenue in the third quarter of 2019.
Store operating income before depreciation and amortization totaled $83.0 million, or 26.1% of revenue, compared with store operating loss before depreciation and amortization of $7.3 million, or (6.7)% of revenue in the third quarter of 2020 and $60.3 million, or 20.1% of revenue in the third quarter of 2019.