Dave & Buster's(US:PLAY)2025-06-10 20:11Financial Performance - First quarter revenue of $567.7 million decreased 3.5% from the first quarter of 2024[78] - Net income totaled $21.7 million, or $0.62 per diluted share, compared to $41.4 million, or $0.99 per diluted share in the first quarter of 2024[78] - Adjusted EBITDA of $136.1 million decreased 14.5%, or $23.0 million, from the first quarter of 2024[78] - Total revenues for the three months ended May 6, 2025, decreased by $20.4 million, or 3.5%, to $567.7 million compared to $588.1 million for the same period in 2024[98] - Comparable store revenues decreased by $46.6 million to $513.1 million, while noncomparable store revenues increased by $15.7 million to $47.4 million[98] - Adjusted EBITDA for the three months ended May 6, 2025, was $136.1 million, representing 24.0% of total revenues, compared to $159.1 million, or 27.1%, for the same period in 2024[96] Operating Costs and Expenses - Total operating costs increased to $504.5 million, representing 88.9% of total revenues, compared to 85.5% in the previous year[95] - Operating income decreased to $63.2 million, or 11.1% of total revenues, down from 14.5% in the prior year[95] - Interest expense increased to $36.8 million, representing 6.5% of total revenues, compared to 5.6% in the previous year[95] - Operating payroll and benefits decreased to $135.0 million, representing 23.8% of total revenues, compared to $141.6 million, or 24.1%, in the previous year[102] - General and administrative expenses decreased to $24.4 million, or 4.3% of total revenues, from $28.0 million, or 4.8%, in the prior year[104] - Pre-opening costs increased to $6.1 million in the 2025 period compared to $3.3 million in the 2024 period, primarily due to the timing of costs for new stores[106] Store Operations - Comparable store sales decreased 8.3% compared to the same period in 2024, with a comparable store base of 210 stores[78][79] - Company-owned stores increased to 234 at the end of the period, up from 224 in the previous year[95] - Two new Dave & Buster's branded stores were opened during the three months ended May 6, 2025[80] Cash Flow and Capital Expenditures - Cash flow from operating activities decreased to $95.8 million for the 2025 period compared to $108.8 million for the 2024 period, primarily due to a decrease in net income[127] - Cash flow used in investing activities increased to $154.6 million for the 2025 period from $112.8 million for the 2024 period, driven by higher capital expenditures[129] - Total capital additions for the three months ended May 6, 2025, amounted to $115.2 million, up from $102 million for the same period in 2024[131] Debt and Financing - As of May 6, 2025, the company reported financing liabilities of $263.4 million in long-term outstanding liabilities and $0.5 million in current outstanding liabilities[118] - Total interest expense for the three months ended May 6, 2025, was $36.8 million, significantly up from $3 million for the same period in 2024[119] - The Net Total Leverage Ratio as of May 6, 2025, was 3, calculated with net debt of $1,578 million and Credit Adjusted EBITDA of $513 million[122] Shareholder Actions - The company repurchased 1.04 million shares for a total of $23.9 million during the fiscal 2025 period, with a remaining authorization limit of $104.1 million[123] Tax and Interest Rate Risk - The effective tax rate for the 2025 period was 17.8%, down from 21.0% in the 2024 period, influenced by a significant reduction in pre-tax book income[109] - The company is exposed to interest rate risk, with a potential impact of approximately $16.1 million on annual results from a hypothetical one percentage point interest rate change on the outstanding balance of the Credit Facility[136]