Dave & Buster's Entertainment, Inc. Reports Third Quarter 2024 Financial Results
DALLAS, Dec. 10, 2024 (GLOBE NEWSWIRE) -- Dave & Buster's Entertainment, Inc. (NASDAQ: PLAY) announced its financial results for the third quarter ended November 5, 2024.
Financial Overview
The company reported third-quarter revenue of $453.0 million, reflecting a 3.0% decrease from the same period last year. The net loss for the quarter was $32.7 million, translating to a loss of $0.84 per diluted share, compared with a net loss of $5.2 million, or $0.12 per diluted share, in the prior-year quarter.
| Metric | Q3 2024 | Q3 2023 | Year-Over-Year Change |
|---|---|---|---|
| Revenue | $453.0M | $466.9M | -3.0% |
| Net Loss | $(32.7)M | $(5.2)M | N/A |
| Earnings Per Share | $(0.84) | $(0.12) | N/A |
| Adjusted Net Loss | $(17.5)M | $0.4M | N/A |
| Adjusted EPS | $(0.45) | $0.01 | N/A |
| Adjusted EBITDA | $68.3M | $81.6M | -16.3% |
Despite the decrease in revenue and widening net loss, the company stressed that its strategic focus remains on achieving long-term growth, citing adverse weather and calendar mismatches as factors impacting quarterly performance.
Key Developments and Operational Highlights
- CEO Chris Morris has resigned, with Kevin Sheehan stepping in as interim CEO.
- Opened three new stores: two Dave & Buster's locations in Barboursville, WV, and Lombard, IL, and one Main Event in Grand Rapids, MI. An additional store was opened in Clarksville, TN after quarter-end.
- Refinanced debt, raising a new $700.0 million term loan due 2031, and extended revolving credit facility maturity to 2029.
- Sale leaseback transaction completed for a store, generating $28.5 million.
- Repurchased $28.0 million worth of shares, with $112 million remaining under repurchase authorization.
Management Comments
Darin Harper, CFO, noted progress in strategic initiatives, particularly in store remodels and special events business, despite challenges such as fiscal calendar mismatches and adverse weather. The company remains optimistic about the growth potential from these initiatives.
Share Repurchase Program
Dave & Buster's repurchased $28.0 million of its shares during the quarter, totaling $88.0 million year-to-date, representing 5.1% of its outstanding shares as of the end of fiscal 2023. The company has $112.0 million remaining in its share repurchase authorization.
Forward Guidance
No forward guidance was provided in the earnings release.
In conclusion, while Dave & Buster's has encountered setbacks this quarter, its ongoing strategic initiatives and leadership transitions aim to position the company for future growth and improved financial stability.
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