Dave & Buster's Entertainment (PLAY) Tops Q4 EPS by 6c, Offers Guidance

Dave & Buster's Entertainment (NASDAQ: PLAY) reported Q4 EPS of ($1.19), $0.06 better than the analyst estimate of ($1.25). Revenue for the quarter came in at $116.8 million versus the consensus estimate of $101.74 million.

GUIDANCE:

Dave & Buster's Entertainment sees Q1 2021 revenue of $210-220 million, versus the consensus of $164.1 million.

• The Company’s business recovery has continued to accelerate during the first quarter. The recent moderation of COVID-19 cases has prompted many local jurisdictions to ease certain operating restrictions, resulting in improved results in open stores and enabling the Company to partially re-open additional stores.
• Through the first eight weeks of the first quarter:
• Preliminary sales totaled approximately $150 million
• Overall comparable store sales were -47% compared to 2019 (comparable store sales for 2021 will continue to be calculated against 2019 results to provide a more meaningful comparison vs. the COVID-affected 2020 results)
• Sales at fully operational comparable stores achieved 74% of 2019 sales levels
• In February, 85 stores, or 80% of those reopened, generated positive store-level operating income before depreciation and amortization
• During March, the Company’s 11 New York stores resumed limited-capacity dine-in and arcade operations and 7 of its 16 California stores resumed limited-capacity dine-in operations, with 8 more expected to reopen by April 5.
• As of March 28, 2021, the Company had approximately $309 million of availability under its revolving credit agreement, net of a $150 million minimum liquidity covenant and $10 million in letters of credit.
• Based on these preliminary results, historical seasonal patterns, and barring renewed operating restrictions or store reclosures during April due to a COVID resurgence, the Company currently expects the following:
• Revenues in the range of $210 million to $220 million in the first quarter;
• Positive enterprise-level EBITDA in the first quarter;
• Four new store openings and the relocation of one existing location during fiscal year 2021; and
• Capital additions of approximately $65 to $70 million in fiscal 2021
• For earnings history and earnings-related data on Dave & Buster's Entertainment (PLAY) click here.

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