PLAY - Dave & Buster's rises after posting record Q1 revenue topping EPS estimates

2023-06-06 16:17:29 ET

Dave & Buster's Entertainment ( NASDAQ: PLAY ) gained in late trading on Tuesday after the entertainment company posted mixed results with its Q1 earnings report .

The Texas-based restaurant and entertainment chain recorded record revenue of $597.3M in sales for the quarter, which was up 3.8% from the prior year on pro forma bais including the contribution from Main Event. Pro forma combined comparable store sales including Main Event branded stores decreased 4.1% during the quarter, but was still up 10.3% compared to the pre-pandemic level in 2019.

Adjusted EBITDA increased 29.8% to $182.1M. Store operating income before depreciation and amortization totaled $206.4 million or 34.6% of revenue vs. 36.2% a year ago. Adjusted EPS was $1.45 vs. $1.28 consensus and $1.35 a year ago.

Dave & Buster's ( PLAY ) ended the quarter with $581.7M of liquidity, which included $91.5M in cash and $490.2M available under its $500M revolving credit facility. The company announced a $100M share buyback plan. On the development front, D&B noted it opened a new Dave & Buster's store in Puerto Rico and three new Main Event stores in Little Rock, Arkansas, Tucson, Arizona, and Lexington, Kentucky.

The company also inked two international franchise agreements for up to 15 stores in India and up to 5 stores in Australia.

CFO update: "Our significant liquidity profile, strong balance sheet, and substantial cash flow provide us the flexibility to invest in the business and opportunistically return capital to shareholders."

Shares of Dave & Buster's ( PLAY ) rose 2.25% postmarket to $34.51 vs. the 52-week trading range of $29.60 to $45.51.

More on Dave & Buster's Entertainment:

• Dave & Buster's Entertainment: Navigating A Broken Balance Sheet
• Growth metrics on Dave & Buster's Entertainment
• Valuation metrics on Dave & Buster's Entertainment
• Dave & Buster's Entertainment compared to sector peers
• Seeking Alpha's Quant Rating for Dave & Buster's Entertainment

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