Dave & Buster's(PLAY) - 2026 Q3 - Quarterly Results

Financial Performance - Third quarter revenue was $448.2 million, a 1.1% decrease compared to the third quarter of fiscal 2024[8] - Third quarter comparable store sales decreased 4.0% compared to the same calendar period in fiscal 2024[8] - Net loss totaled $42.1 million, or $1.22 per diluted share, compared to a net loss of $32.7 million, or $0.84 per diluted share in the third quarter of fiscal 2024[8] - Adjusted EBITDA was $59.4 million compared to $68.3 million in the third quarter of fiscal 2024[8] - Adjusted net income for the three months ended November 4, 2025, was $(39.4) million, resulting in an adjusted net income per diluted share of $(1.14) [28] - For the nine months ended November 4, 2025, adjusted net income was $74.7 million, with an adjusted net income per diluted share of $1.84 [28] - The net income (loss) for the three months ended November 4, 2025, was $(42.1) million, or $(1.22) per diluted share [28] - The adjusted net income (loss) per diluted share for the three months ended November 5, 2024, was $(0.45) [28] - The adjusted net income (loss) for the three months ended November 5, 2024, was $(17.5) million [28] Store Operations - The Company opened one new domestic Dave & Buster's store and three new Main Event stores in the third quarter[8] - The Company expects to open at least four additional international franchise stores over the next six months[8] - The Company commenced remodels of three Dave & Buster's stores in the third quarter[8] - The Company has 241 stores in North America, including 177 Dave & Buster's stores and 64 Main Event stores[11] Cash Flow and Liquidity - Operating cash generated during the third quarter was $58.0 million, ending with $441.9 million of available liquidity[9] - Net cash provided by operating activities for the three months ended November 4, 2025, was $58.0 million, a significant recovery from a cash outflow of $7.2 million in the same period last year[20] - Cash and cash equivalents rose to $13.6 million as of November 4, 2025, up from $6.9 million on February 4, 2025, indicating improved liquidity[19] Assets and Liabilities - Total assets increased to $4,130.7 million as of November 4, 2025, up from $4,015.8 million on February 4, 2025, representing a growth of 2.9%[19] - Total current liabilities decreased to $377.6 million as of November 4, 2025, from $433.9 million on February 4, 2025, indicating improved short-term financial stability[19] - Long-term debt increased to $1,552.8 million as of November 4, 2025, compared to $1,479.1 million on February 4, 2025, reflecting ongoing financing activities[19] Financial Ratios and Metrics - Adjusted EBITDA for the three months ended November 4, 2025, was $59.4 million, accounting for 13.3% of total revenues, compared to $68.3 million or 15.1% in the prior year[23] - Store Operating Income Before Depreciation and Amortization for the three months ended November 4, 2025, was $85.0 million, representing 19.0% of total revenues, down from $93.3 million or 20.6% in the same period last year[25] - Credit Adjusted EBITDA for the trailing four quarters ended November 4, 2025, was $483.1 million, providing insight into the company's financial health and compliance with credit agreements[26] - The Net Total Leverage Ratio as of November 4, 2025, was 3.0, calculated using net debt of $1,593 million against Credit Adjusted EBITDA of $483 million[27] Special Items and Adjustments - Loss on debt refinancing for the nine months ended November 4, 2025, was $15.2 million, contributing $0.37 to the adjusted net income per diluted share [28] - System implementation costs for the three months ended November 4, 2025, amounted to $0.6 million, with a per diluted share impact of $0.02 [28] - Transaction and integration costs for the nine months ended November 4, 2025, totaled $1.4 million, impacting adjusted net income per diluted share by $0.03 [28] - The tax impact of special items for the nine months ended November 4, 2025, was $(8.9) million, or $(0.22) per diluted share [28] - Other items, net, contributed $10.4 million to adjusted net income for the nine months ended November 4, 2025, with a per diluted share impact of $0.30 [28]