Business
Dave & Buster’s Provides Business Update Through First Nine Weeks of Fiscal Fourth Quarter and Offers Fourth Quarter Revenue Outlook
DALLAS, Jan. 11, 2021 (GLOBE NEWSWIRE) -- Dave & Buster's Entertainment, Inc., (NASDAQ:PLAY), ("Dave & Buster's" or "the Company"), an owner and operator of
About this update from Dave & Buster's Entertainment, Inc.
[{"type":"text","content":"DALLAS, Jan. 11, 2021 (GLOBE NEWSWIRE) -- Dave & Buster's Entertainment, Inc., (NASDAQ:PLAY), (\"Dave & Buster's\" or \"the Company\"), an owner and operator of entertainment and dining venues, today provided an update on business trends through January 3, 2021, representing the first nine weeks of its fiscal fourth quarter, which began November 2, 2020 and ends January 31, 2021. As expected, the Company’s fourth quarter financial results have continued to be negatively affected by the COVID-19 pandemic. The Company began the fourth quarter with 104 open stores, or approximately 75 percent of its total store base. Due to renewed operating restrictions imposed by local jurisdictions during November and December in response to the COVID-19 resurgence, the Company had 89 stores open as of January 3, or approximately 65 percent of its total store base. Key highlights through the first nine weeks of the fourth quarter (ending January 3, 2021) Preliminary revenue of $69.4 million, reflecting a 75% decline in comparable store salesPreliminary EBITDA loss of $22 millionPreliminary weekly cash burn rate of $3.7 millionAs of January 3, 2021, the Company had approximately $12 million in cash and equivalents and $277 million of availability under its revolving credit agreement, net of a $150 million minimum liquidity covenant and $10 million in letters of credit. Chief Executive Officer Brian Jenkins said, “Fourth quarter business trends have been consistent with commentary we provided in December in conjunction with our third quarter results. After a strong recovery through the end of the third quarter, we experienced a temporary setback with the recent COVID resurgence, which resulted in the re-closure of 15 stores, and a reduction in the sales index of open stores and overall comparable store sales. Early January sales trends are improving, and we have resumed store re-openings as certain local jurisdictions have lifted operating restrictions.” The Company currently expects more than 100 stores to be open by mid-January, continuing through the end of the fourth quarter, all operating under various limitations, and for its 27 stores in California and New York to remain closed for the remainder of the quarter. Based upon the above preliminary results through the first nine weeks of the fourth quarter, expectations for additional store open...