Dave & Buster's(PLAY) - 2026 Q1 - Quarterly Results

Financial Performance - First quarter revenue was $567.7 million, a decrease of 3.5% from $588.1 million in the first quarter of fiscal 2024[7] - Comparable store sales decreased 8.3% compared to the same period in fiscal 2024[8] - Net income totaled $21.7 million, or $0.62 per diluted share, down from $41.4 million, or $0.99 per diluted share in the first quarter of fiscal 2024[9] - Adjusted EBITDA was $136.1 million, representing 24.0% of revenue, down 14.5% from $159.1 million, or 27.1% of revenue in the first quarter of fiscal 2024[10] - Operating income decreased to $63.2 million (11.1% of total revenues) from $85.5 million (14.5% of total revenues) year-over-year[29] - Store operating income before depreciation and amortization was $162.2 million, accounting for 28.6% of total revenues, down from $183.2 million or 31.2%[29] - Adjusted net income for the three months ended May 6, 2025, was $26.7 million, with adjusted net income per diluted share at $0.76, compared to $46.4 million and $1.12 in the prior year[32] Liquidity and Debt - The company ended the quarter with $423.2 million of available liquidity, including cash and availability under its revolving credit facility[11] - The net total leverage ratio was 3.1x at the end of the quarter[11] - Net Total Leverage Ratio stood at 3.1 as of May 6, 2025, with total debt at $1,576.5 million[31] - Long-term debt increased to $1,569.5 million from $1,479.1 million year-over-year[24] - Cash and cash equivalents increased by $5.0 million, contrasting with a decrease of $5.2 million in the prior year[25] Operational Activities - The company opened two new stores and relocated one store during the first quarter, with two additional stores opened subsequently[7] - The company completed remodels of 13 stores in the first quarter[7] - The leadership team is focused on driving revenue growth and free cash flow generation, with a clear roadmap for operational improvements[6] Shareholder Actions - The company repurchased $23.9 million of shares, representing 1.0 million shares or 2.9% of outstanding shares as of the end of fiscal 2024[11] - Total current liabilities decreased slightly to $431.4 million from $433.9 million[24] Cash Flow - Net cash provided by operating activities was $95.8 million, down from $108.8 million year-over-year[25] - Credit Adjusted EBITDA for the trailing four quarters ended May 6, 2025, was $513.7 million[30]