Dave & Buster's(PLAY)2025-04-07 20:11Financial Performance - Revenue for fiscal 2024 was 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 1.46 per diluted share, down from 2.88 per diluted share in fiscal 2023[164]. - Adjusted EBITDA decreased by 506.2 million, representing 23.7% of revenues, compared to 25.2% of revenues in fiscal 2023[164]. - Operating income decreased to 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 138.5 million (9.7%) in fiscal 2023[185]. - The cost of food and beverage was 214.5 million (27.8%) in fiscal 2023[185]. - The total cost of products was 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 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].