Company Performance - Dave & Buster's reported quarterly earnings of $0.69 per share, exceeding the Zacks Consensus Estimate of $0.64 per share, but down from $1.03 per share a year ago [1] - The earnings surprise for the quarter was 7.81%, while the previous quarter saw a loss of $0.45 per share against an expected loss of $0.42, resulting in a surprise of -7.14% [2] - The company posted revenues of $534.5 million for the quarter, missing the Zacks Consensus Estimate by 1.91%, and down from $599.1 million year-over-year [3] Stock Performance - Dave & Buster's shares have declined approximately 42.3% since the beginning of the year, compared to a 13.7% decline in the S&P 500 [4] - The current Zacks Rank for the stock is 5 (Strong Sell), indicating expectations of underperformance in the near future [7] Future Outlook - The consensus EPS estimate for the upcoming quarter is $1.13 on revenues of $585.07 million, and for the current fiscal year, it is $2.39 on revenues of $2.21 billion [8] - The estimate revisions trend for Dave & Buster's is currently unfavorable, which may impact future stock performance [6][7] Industry Context - The Retail - Restaurants industry, to which Dave & Buster's belongs, is currently ranked in the bottom 33% of over 250 Zacks industries, suggesting potential challenges ahead [9]

Dave & Buster's Entertainment, Inc. (PLAY) Q4 2024 Earnings Conference Call April 07, 2025 05:00 PM ET Company Participants Kevin Sheehan - Chair of the Board & Interim CEOConference Call Moderator - Call HostCorey Haddon - Head of Entertainment Finance, Investor Relations & TreasurerDarren Harper - CFO Conference Call Participants Sharon Zoxia - William Blair AnalystAndy Barrett - Jefferies AnalystBrian Mullen - Piper Sandler AnalystAndrew Strelzik - BMO AnalystJake Bartlett - Truist Securities AnalystDenn ...

Financial Performance - Revenue for fiscal 2024 was $2,132.7 million, a decrease of 3.3% compared to $2,205.3 million in fiscal 2023[164]. - Comparable store sales decreased by 7.2% on a like-for-like calendar basis compared to fiscal 2023[164]. - Net income for fiscal 2024 totaled $58.3 million, or $1.46 per diluted share, down from $126.9 million, or $2.88 per diluted share in fiscal 2023[164]. - Adjusted EBITDA decreased by $49.4 million to $506.2 million, representing 23.7% of revenues, compared to 25.2% of revenues in fiscal 2023[164]. - Operating income decreased to $220.4 million in fiscal 2024, accounting for 10.3% of total revenues, down from 13.9% in the previous year[185]. - The effective tax rate for fiscal 2024 was 16.5%, compared to 22.2% for fiscal 2023[201]. - The company had total debt of $1,486.1 million, resulting in a Net Total Leverage Ratio of 2.8x[213]. Store Operations and Expansion - The company opened eleven Dave & Buster's stores and three Main Event stores in fiscal 2024[33]. - The average size of new Dave & Buster's stores opened in fiscal 2024 was 26,000 square feet[35]. - The average size of new Main Event stores opened in fiscal 2024 was approximately 50,000 square feet[36]. - The company operates a total of 232 stores, including 171 Dave & Buster's and 61 Main Event locations[147]. - The company plans to open 30 to 40 franchised Dave & Buster's locations internationally[37]. Revenue and Cost Management - The cost of entertainment decreased to $118.6 million (8.5% of entertainment revenues) in fiscal 2024 from $138.5 million (9.7%) in fiscal 2023[185]. - The cost of food and beverage was $195.8 million (26.4% of food and beverage revenues) in fiscal 2024, down from $214.5 million (27.8%) in fiscal 2023[185]. - The total cost of products was $314.4 million for fiscal 2024, representing 14.7% of total revenues, down from 16.0% in fiscal 2023[191]. - Operating payroll and benefits decreased to $523.5 million in fiscal 2024, accounting for 24.5% of total revenues, compared to 23.8% in fiscal 2023[194]. - Other store operating expenses increased to $690.4 million in fiscal 2024, or 32.4% of total revenues, up from 30.4% in fiscal 2023[195]. Marketing and Customer Engagement - Dave & Buster's has approximately 90% national brand awareness as an entertainment and dining venue[25]. - The company aims to drive growth in comparable store sales through innovative game offerings and improved food and beverage options[32]. - The company is focused on enhancing customer engagement through strategic marketing and loyalty offerings[38]. - The company’s marketing strategy is evolving to be more data-driven and consumer-centric, aligning investments with changing media consumption trends[57]. Corporate Responsibility and Community Engagement - The company has contributed over $18.5 million to the Make-A-Wish Foundation through fiscal 2024, supporting its commitment to corporate responsibility[55]. Risks and Challenges - The out-of-home entertainment market is highly dependent on consumer discretionary spending, which may be negatively affected by economic conditions such as fluctuations in disposable income and changes in consumer confidence[77]. - The company faces significant competition in the out-of-home entertainment market from larger entities with greater financial resources and name recognition[80]. - The company is subject to risks associated with long-term, non-cancelable leases, which account for a significant portion of its operating expenses[85]. - The company is exposed to risks from adverse weather conditions, natural disasters, and pandemics, which can negatively affect operations and consumer spending[94]. - Rising labor costs due to low unemployment and increased minimum wages could materially affect financial performance[103]. - The company faces challenges in recruiting and retaining qualified personnel, which could delay new store openings and adversely affect existing operations[102]. Compliance and Legal Matters - The company is subject to various federal, state, and local laws affecting its business operations, including health and safety regulations[70]. - The company is subject to extensive laws and regulations that could adversely affect operational efficiencies and cost structure[119]. - Legal proceedings, including class action lawsuits related to employment practices, may adversely affect the company's financial condition[125]. - The company faces potential liabilities related to gift cards under state abandoned and unclaimed property laws, which could increase financial liabilities if laws change[123]. Cybersecurity and Technology - The company has implemented a cybersecurity program to identify and mitigate material cybersecurity risks[139]. - Cybersecurity risks are integrated into the company's overall enterprise risk management process to enhance risk assessment and strategic planning[141]. - Cybersecurity breaches could lead to significant negative publicity, loss of customers, and increased costs, potentially impacting financial performance[97]. - Compliance with cybersecurity and privacy laws may involve significant costs, and failure to comply could result in material civil or criminal liability[101]. Future Outlook - The company anticipates continued pressure on supplier pricing and consumer spending due to economic and environmental conditions[182]. - Future decisions on cash dividends or share repurchases will depend on operating performance and financial condition[216].

Revenue Performance - Revenue for Q4 2024 was $534.5 million, a decrease of 10.8% from Q4 2023[5] - Total revenue for fiscal 2024 was $2.1 billion, a decrease of 3.3% from fiscal 2023[5] - Total revenues for the quarter were $534.5 million, a decrease from $599.1 million in the same quarter last year[19] Comparable Store Sales - Comparable store sales decreased by 9.4% compared to the same period in fiscal 2023[5] Net Income - Net income for Q4 2024 was $9.3 million, or $0.24 per diluted share, down from $36.2 million, or $0.88 per diluted share in Q4 2023[5] - Net income for the quarter was $9.3 million, representing 1.7% of total revenues, down from $36.2 million (6.0%) in the same quarter of 2024[19] - Adjusted net income for the fiscal year ended February 4, 2025, was $101.4 million, with an Adjusted net income per diluted share of $2.53[29] EBITDA - Adjusted EBITDA for Q4 2024 was $127.2 million, representing 23.8% of revenue, a decrease of 16.2% from Q4 2023[5] - Adjusted EBITDA for the quarter was $127.2 million, or 23.8% of total revenues, compared to $151.8 million (25.3%) in the same quarter last year[25] - Credit Adjusted EBITDA for the trailing four quarters ended February 4, 2025, was $533.4 million[28] Operating Income - Operating income for the quarter was $44.1 million, or 8.3% of total revenues, compared to $89.6 million (15.0%) in the prior year[19] - Store Operating Income Before Depreciation and Amortization for the quarter ended February 4, 2025, was $154.3 million, representing 28.9% of total revenues[26] Cash Flow and Liquidity - The company generated $108.9 million in operating cash flow during Q4 2024, ending with $510.4 million in available liquidity[8] - Net cash provided by operating activities for the quarter was $108.9 million, up from $97.2 million in the same quarter last year[22] Debt and Leverage - Long-term debt increased to $1,479.1 million as of February 4, 2025, from $1,284.0 million a year earlier[21] - Total debt as of the latest test period was $1.48 billion, resulting in a Net Total Leverage Ratio of 2.8[28] Store Openings and Franchise Agreements - The company opened five new stores in Q4 2024, totaling 14 new stores for fiscal 2024[5] - The company has entered into international franchise agreements for over 35 stores across five countries, with six additional units expected to open in the next 12 months[11] Other Financial Metrics - General and administrative expenses for the quarter ended February 4, 2025, were $18.9 million[26] - Depreciation and amortization expense for the trailing four quarters was $238.2 million[28] - Pre-opening costs for the quarter ended February 4, 2025, amounted to $6.1 million[26] - Loss on debt refinancing for the quarter ended February 4, 2025, was $15.2 million[29] - Other charges and gains for the quarter ended February 4, 2025, totaled $21.2 million[26] Revenue Breakdown - Entertainment revenues for the quarter ended February 4, 2025, were $335.0 million, representing 62.7% of total revenues, compared to $378.9 million (63.2%) for the same quarter in 2024[19] - Food and beverage revenues for the quarter were $199.5 million, accounting for 37.3% of total revenues, down from $220.2 million (36.8%) in the prior year[19] Asset Management - Total current assets decreased to $94.4 million as of February 4, 2025, from $137.5 million a year earlier[21] - Total assets increased to $4,015.8 million as of February 4, 2025, compared to $3,754.4 million in the previous year[21]

Core Viewpoint - Dave & Buster's Entertainment, Inc. reported disappointing financial results for the fourth quarter and fiscal year 2024, but the current leadership is optimistic about future improvements due to strategic changes and a focus on core operations [5][6]. Financial Summary - Fourth quarter revenue was $534.5 million, a decrease of 10.8% from the same period in fiscal 2023 [8]. - Comparable store sales fell by 9.4% compared to the fourth quarter of fiscal 2023 [8]. - Net income for the fourth quarter was $9.3 million, or $0.24 per diluted share, down from $36.2 million, or $0.88 per diluted share in the fourth quarter of fiscal 2023 [8]. - Adjusted EBITDA for the fourth quarter was $127.2 million, representing 23.8% of revenue, a decrease of 16.2% from the previous year [8]. - For fiscal 2024, total revenue was $2.1 billion, down 3.3% from fiscal 2023 [8]. - Net income for fiscal 2024 was $58.3 million, or $1.46 per diluted share, compared to $126.9 million, or $2.88 per diluted share in fiscal 2023 [8]. Cash Flow and Liquidity - The company generated $108.9 million in operating cash flow during the fourth quarter, ending with $510.4 million in available liquidity [7]. - The Net Total Leverage Ratio was reported at 2.8x [7]. Strategic Initiatives - The company opened five new stores in the fourth quarter, totaling 14 new stores for fiscal 2024 [8]. - A total of 44 remodels of Dave & Buster's stores have been completed since the start of the remodel program in 2023 [8]. - The company repurchased approximately 5 million shares in fiscal 2024, totaling $172.0 million, representing 12.4% of outstanding shares [8]. - The company has entered into international franchise agreements for over 35 stores across five countries, with plans for at least six additional franchise units to open in the next 12 months [8]. Management Commentary - The current leadership team is focused on unwinding previous management mistakes and implementing a "back to basics" strategy to improve revenue and shareholder value [5][6]. - Recent trends in March and April indicate notable improvements compared to the fourth quarter [6].

Core Insights - Dave & Buster's reported a revenue of $534.5 million for Q4 2024, a decrease of 10.8% from Q4 2023, with comparable store sales down 9.4% [6] - The company experienced a net income of $9.3 million, or $0.24 per diluted share, compared to $36.2 million, or $0.88 per diluted share in Q4 2023 [6] - Adjusted EBITDA for Q4 2024 was $127.2 million, representing 23.8% of revenue, down 16.2% from the previous year [6] Financial Performance - Fiscal 2024 total revenue was $2.1 billion, a decrease of 3.3% from fiscal 2023, with comparable store sales down 7.2% [6] - Net income for fiscal 2024 totaled $58.3 million, or $1.46 per diluted share, compared to $126.9 million, or $2.88 per diluted share in fiscal 2023 [6] - Adjusted net income for fiscal 2024 was $101.4 million, or $2.53 per diluted share, down from $156.9 million, or $3.56 per diluted share in fiscal 2023 [6] Operational Developments - The company opened five new stores in Q4 2024, totaling 14 new stores for fiscal 2024 [6] - A total of 44 Dave & Buster's stores have been remodeled since the start of the remodel program in 2023 [6] - The company repurchased approximately 5 million shares in fiscal 2024, totaling $172.0 million, representing 12.4% of outstanding shares [6] Cash Flow and Liquidity - Operating cash flow for Q4 2024 was $108.9 million, with total liquidity at $510.4 million, including $6.9 million in cash [9] - The company ended the quarter with a Net Total Leverage Ratio of 2.8x [9][10] Strategic Outlook - Current leadership is focused on a "back to basics" strategy to improve operational performance and shareholder value [5][8] - Recent trends in March and April 2025 have shown improvement compared to Q4 2024, with expectations for continued growth [8]

Core Insights - PLAY airlines experienced a 16.5% reduction in capacity in March 2025, carrying 111,531 passengers compared to 142,918 in March 2024 [1] - The airline's load factor decreased to 82.0% from 88.1% year-over-year, influenced by a focus on leisure destinations and the timing of Easter [2] - PLAY Europe received its Air Operator Certificate (AOC) from Malta, marking a significant step in the airline's international expansion [4] Passenger and Operational Metrics - In March 2025, 30.7% of passengers were flying from Iceland, 37.5% were traveling to Iceland, and 31.8% were connecting passengers [3] - On-time performance dropped to 83.9% from 94.0% in the previous year, attributed to weather-related disruptions [3] Strategic Developments - PLAY Europe has secured a lease agreement with an Eastern European airline, aiming to operate aircraft outside of Iceland and recruit local pilots and crew [5] - The company plans to launch its first flight to Antalya, Turkey, in April 2025, and will also begin service to Faro, Portugal [6] Future Outlook - The outlook for summer 2025 is positive, with improved seat factors and strong forward bookings to and from Iceland, despite reduced capacity [7] - CEO Einar Örn Ólafsson emphasized the importance of the AOC for financial stability and operational predictability [8]

Group 1 - The Annual General Meeting of Fly Play hf. is scheduled for April 9, 2025, at 16:00 (GMT) in Reykjavik [1] - The deadline for submitting candidacies for the Board of Directors was April 4, 2025, at 16:00 (GMT) [1] - Five individuals have declared their candidacy for the Board of Directors, and all submissions have been accepted in accordance with relevant regulations [1] Group 2 - As no additional candidacies were submitted, the candidates will be elected without a ballot during the meeting [2] - Additional information regarding the candidates is provided in an attachment [2][3]

Core Viewpoint - Play Airlines has accepted a settlement with the Financial Supervisory Authority of the Central Bank of Iceland regarding compliance issues related to revenue disclosure and operating results for the latter half of 2022 [1][4]. Group 1: Settlement Details - The settlement requires Play Airlines to pay a fine of ISK 15,800,000 and acknowledges the violation of Article 17(1) of the Market Abuse Regulation (MAR) [4]. - The investigation focused on whether the draft Q3 2022 interim financial statements contained inside information and if their disclosure was timely [2]. Group 2: Company Position - Play Airlines maintained that the information in question did not constitute inside information, arguing that their initial forecast was broad and not price sensitive [3]. - The company fully cooperated with the FSA during the investigation, providing all relevant documentation [3].

Core Viewpoint - Analysts project that Dave & Buster's (PLAY) will report a quarterly earnings per share (EPS) of $0.66, reflecting a year-over-year decline of 35.9% and revenues of $547.99 million, down 8.5% from the same quarter last year [1]. Group 1: Earnings Projections - The consensus EPS estimate for the quarter has been revised downward by 9.3% over the past 30 days, indicating a collective reassessment by covering analysts [2]. - Revisions to earnings projections are crucial for predicting investor behavior, with empirical studies showing a strong correlation between earnings estimate trends and short-term stock price performance [3]. Group 2: Revenue Estimates - Analysts estimate 'Entertainment revenues' will reach $354.75 million, representing a year-over-year decline of 6.4% [5]. - 'Food and beverage revenues' are projected to be $193.21 million, indicating a year-over-year change of -12.3% [5]. - The consensus for 'Stores Count - End of Period' is 232, an increase from 220 reported in the same quarter last year [5]. Group 3: Market Performance - Shares of Dave & Buster's have returned -4.6% over the past month, compared to a -5.3% change in the Zacks S&P 500 composite [6]. - With a Zacks Rank 5 (Strong Sell), Dave & Buster's is expected to underperform the overall market in the near future [6].