Dave & Buster's(PLAY) - 2025 Q3 - Quarterly Results

Financial Performance - Third quarter revenue was $453.0 million, a decrease of 3.0% from $466.9 million in the third quarter of fiscal 2023[5][10] - Comparable store sales decreased by 7.7% compared to the same period in fiscal 2023[5][11] - Net loss totaled $32.7 million, or $(0.84) per diluted share, compared to a net loss of $5.2 million, or $(0.12) per diluted share in the third quarter of fiscal 2023[6][11] - Adjusted EBITDA was $68.3 million, a decrease of 16.3% from $81.6 million in the third quarter of fiscal 2023[6][11] - Operating loss was $6.3 million, or 1.4% of revenue, compared to operating income of $18.6 million, or 4.0% of revenue in the third quarter of fiscal 2023[11] - Net income (loss) for the three months ended November 5, 2024, was $(32.7) million, compared to a loss of $(5.2) million in the prior year, indicating a significant decline in profitability[22] - Adjusted EBITDA for the three months ended November 5, 2024, was $68.3 million, representing 15.1% of total revenues, compared to $81.6 million and 17.5% in the same period last year[30] - Total revenues for the nine months ended November 5, 2024, were $1,598.2 million, a slight decrease from $1,606.3 million in the prior year[22] - Operating income for the three months ended November 5, 2024, was $6.3 million, down from $18.6 million in the same period last year, reflecting a decrease in operating margin from 4.0% to 1.4%[22] Debt and Financing - The Company raised a new $700.0 million term loan due in 2031 and extended the maturity of its revolving credit facility to 2029[7] - Long-term debt increased to $1,444.8 million as of November 5, 2024, compared to $1,284.0 million as of February 4, 2024[26] - The total debt as of November 5, 2024, was $1,451.8 million, with net debt calculated at $1,454.8 million[36] - The company incurred $20.1 million in losses on debt refinancing during the trailing four quarters[36] Cash Flow and Assets - The Company ended the quarter with $8.6 million in cash and $537.4 million available under its revolving credit facility[12] - Total current assets decreased to $112.0 million as of November 5, 2024, from $137.5 million as of February 4, 2024[26] - Net cash provided by operating activities for the three months ended November 5, 2024, was $(7.2) million, a significant decline from $70.8 million in the same period last year[27] Store Operations and Expansion - The Company opened three new stores during the quarter, including two Dave & Buster's and one Main Event store[7] - Store Operating Income Before Depreciation and Amortization for the three months ended November 5, 2024, was $92.6 million, representing a 20.4% increase compared to the same period last year[34] - Store Operating Income Before Depreciation and Amortization for the nine months ended November 5, 2024, was $471.7 million, reflecting a 29.4% increase year-over-year[34] - The company plans to continue focusing on market expansion and new product development to drive future growth[30] Shareholder Actions - The Company repurchased $28.0 million of shares in the third quarter, totaling $88.0 million year-to-date, representing 5.1% of outstanding shares[7] - The Company has $112.0 million remaining on its share repurchase authorization[12] Expenses - General and administrative expenses for the nine months ended November 5, 2024, totaled $89.1 million, slightly down from $92.0 million in the same period last year[34] - Depreciation and amortization expense for the nine months ended November 5, 2024, was $174.2 million, up from $149.9 million in the same period last year[34] - Pre-opening costs for the three months ended November 5, 2024, were $5.2 million, compared to $4.0 million in the same period last year[34] Revenue Breakdown - Entertainment revenues for the three months ended November 5, 2024, were $294.6 million, representing a 65.0% share of total revenues, compared to $302.0 million and 64.7% for the same period in 2023[22] - The company experienced a year-over-year revenue decline of $13.9 million, attributed to factors such as an unfavorable calendar shift and changes in deferred entertainment revenues[32] Adjusted Metrics - Adjusted Net Income for the nine months ended November 5, 2024, was $49.0 million, translating to an Adjusted Net Income per diluted share of $1.21[38] - Credit Adjusted EBITDA for the trailing four quarters ended November 5, 2024, was $549.0 million, with a net total leverage ratio of 2.6x[36]