Earnings Highlights and Review: Dave & Buster's Revenue Jumped 16%; EPS Climbed 36%
Research Desk Line-up: Bob Evans Farms Post Earnings Coverage
LONDON, UK / ACCESSWIRE / June 26, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Dave & Buster's Entertainment, Inc (NASDAQ: PLAY), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=PLAY, following the Company's release of its first quarter fiscal 2017 financial results on June 06, 2017. The entertainment and dining chain surpassed top- and bottom-line expectations. Dave & Buster's raised its financial outlook and also announced repurchase of an additional $100 million of the Company's common stock. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Get more of our free earnings reports coverage from other constituents of the Restaurants industry. Pro-TD has currently selected Bob Evans Farms, Inc. (NASDAQ: BOBE) for due-diligence and potential coverage as the Company announced on June 15, 2017, its financial results for Q4 FY17 which ended on Friday, April 28, 2017. Register for a free membership today, and be among the early birds that get access to our report on Bob Evans Farms when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on PLAY; also brushing on BOBE. With the links below you can directly download the report of your stock of interest free of charge at:
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Earnings Reviewed
For its first quarter 2017, which ended on April 30, 2017, Dave & Buster's total revenues increased 16.1% to $304.1 million compared to $262.0 million in Q1 2016. The Company's revenue numbers came in ahead of analysts' expectations of $300 million. Dave & Buster's comparable store sales increased 2.2% in Q1 2017 compared to a 3.6% increase Q1 2016, driven by a 2.4% increase in walk-in sales and a 0.6% increase in special events sales. Non-comparable store revenues increased $36.5 million in the reported quarter to $57.0 million.
For Q1 2017, Dave & Buster's Food and Beverage revenues increased 10.8% to $129.8 million from $117.1 million in Q1 2016. Food and Beverage represented 42.7% of total revenues in the reported quarter compared to 44.7% in the prior year's same quarter. The Company's Amusement and Other revenues increased 20.3% to $174.3 million in the reported quarter compared to $144.9 million in the prior year's same quarter. Amusements and Other represented 57.3% of total revenues in Q1 2017, up compared to 55.3% of total revenues in Q1 2016.
During Q1 2017, Dave & Buster's operating income increased to $64.2 million from $51.2 million in Q1 2016. As a percentage of total revenues, the Company's operating income increased 160 basis points to 21.1% from 19.5%, or 80 basis points, to 20.3% excluding the use tax settlement.
Dave & Buster's EBITDA increased 22.5% to $88.2 million in Q1 2017 from $72.0 million in Q1 2016. As a percentage of total revenues, the Company's EBITDA increased approximately 150 basis points to 29.0% from 27.5%, or 70 basis points, to 28.2% excluding the use tax settlement in the year ago same quarter.
For Q1 2017, Dave & Buster's store operating income before depreciation and amortization advanced 22.4% to $107.6 million compared to $87.9 million in Q1 2016.As a percentage of total revenues, the Company's store operating income before depreciation and amortization increased 180 basis points to 35.4% from 33.6%, or 100 basis points, to 34.6% excluding the use tax settlement.
Dave & Buster's net income increased to $42.8 million, or $0.98 per diluted share, compared to net income of $31.2 million, or $0.72 per diluted share, in Q1 2016. The Company's net income, excluding the favorable impact of the use tax settlement and ASU 2016-09, was $0.87 per diluted share. Dave & Buster's earnings numbers surpassed Wall Street's expectations of $.81 per share.
Store Update
In Q1 2017, Dave & Buster's opened four stores in Carlsbad, California; Columbia, South Carolina; Overland Park, Kansas; and Tucson, Arizona. During Q2 2017, the Company has already opened three stores in New Orleans, Louisiana, Alpharetta, Georgia, and Myrtle Beach, South Carolina.
Share Repurchase Activity and Additional Repurchase Authorization
During Q1 2017, Dave & Buster's repurchased approximately 529,000 shares for $31.1 million, with an additional 360,000 shares for $23.7 million through May 31, 2017, during Q2 2017. As of the same date, cumulatively, the Company had repurchased 1.46 million shares for $83.6 million under its $100 million share repurchase authorization.
On June 06, 2017, Dave & Buster's board authorized the repurchase of an additional $100 million of the Company's common stock under the existing repurchase program through the end of fiscal 2018.
Financial Outlook
For FY17, Dave & Buster's is forecasting total revenues in the range of $1.160 billion to $1.170 billion from the previous guidance of $1.155 billion to $1.170 billion. The Company's comparable store sales are expected to grow 2% to 3%.
In fiscal 2017, Dave & Buster's intends to open twelve new stores including eight large and four small store formats. The Company has currently five stores under construction.
For FY17, Dave & Buster's is projecting net income in the band of $107 million to $111 million compared to the earlier announcement of $101 million to $105 million. Dave & Buster's total capital additions during fiscal 2017 are expected to be $166 million to $176 million and include development costs for store openings, four remodeling and related projects, new games and maintenance capital.
Stock Performance
At the closing bell, on Friday, June 23, 2017, Dave & Buster's Entertainment's stock marginally climbed 0.51%, ending the trading session at $67.51. A total volume of 1.01 million shares have exchanged hands, which was higher than the 3-month average volume of 820.18 thousand shares. The Company's stock price soared 10.78% in the last three months, 19.36% in the past six months, and 45.12% in the previous twelve months. Moreover, the stock surged 19.91% since the start of the year. The stock is trading at a PE ratio of 28.59 and currently has a market cap of $2.84 billion.
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