Dave & Buster's Entertainment, Inc. · NASDAQ:PLAY
Dave & Buster's Entertainment — Merger or Acquisition (July 2022)
30 slides from Dave & Buster's Entertainment's merger presentation, Jul 12, 2022
Slide 1: Investor Update July 12, 2022
Investor Update July 12, 2022
Slide 2: Legal Disclaimer
Legal Disclaimer 1 Disclaimer The information contained in this presentation (the "Information") does not purport to contain all of the information that may be required or desired by a recipient to evaluate Dave & Buster's Entertainment, Inc. and its affiliates (collectively, the “Company”). In all
Slide 3: Agenda
2 Agenda 1 Management Introduction 2 Combined Company Overview 3 New Dave & Buster’s Financial Profile 4 Appendix
Slide 4: Management Introduction
Section 1 Management Introduction
Slide 5: Management Presenters
4 Management Presenters Previous exp. Overview Kevin Sheehan Chair of the Board • Interim CEO of Dave & Buster’s 10/21 – 6/22 • 20+ years of Board of Directors and executive experience • Before Dave & Buster’s, served as President and CEO of Scientific Games • Prior to Scientific Games, held roles o
Slide 6: Transaction Rationale
Transaction Rationale The combination of Dave & Buster’s and Main Event creates a market leader in the Family Entertainment Center industry in North America. Key strategic highlights of the transaction include: 1. Creates a leading platform in the attractive and rapidly growing experiential entertai
Slide 7: Combined Company Overview
Section 2 Combined Company Overview
Slide 8: Main Event Overview
Entertainment & Other 71% Food & Beverage 29% Ages 18 -24 11% Ages 25-34 31% Ages 35-44 25% Ages 45-54 21% Ages 55+ 12% 7 Main Event Overview Fast-Growing Player With High Quality Entertainment and Food Strong Footprint with Room to Expand • Leading player in the experiential entertainment sector th
Slide 9: Main Event Overview (Cont.): Historical Standalone Financials
$101 $3 $37 $44 $46 $52 $53 $14 $37 $104 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 LTM May 2022 $413 $8 $144 $175 $226 $279 $297 $233 $267 $422 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 LTM May 2022 8 Main Event Overview (Cont.) Historical Main Event Standalone Financials
Slide 10: Same Store Sales Recovery Continues to Be Very Strong
23% 40% 19% 38% 40% 22% 28% 23% 22% (8%) 10% 28% 31% 40% 26% Mar 2021 Apr 2021 May 2021 Jun 2021 Jul 2021 Aug 2021 Sep 2021 Oct 2021 Nov 2021 Dec 2021 Jan 2022 Feb 2022 Mar 2022 Apr 2022 May 2022 Same Store Sales Recovery Continues to Be Very Strong Note: SSS is not compared to the prior year period
Slide 11: Dave & Buster's Overview
(a) Revenue mix based on LTM April 2022 data. Demographic splits based on 2019 data (b) Represents locations / states as of July 2022 Source: YouGov America, company filings, presentations and websites 10 Amusement 66% Food & Beverage 34% Dave & Buster’s Overview Unique Food & Entertainment Concept
Slide 12: Long-Term History of Success and Performance
$208 $262 $303 $311 $308 ($81) $352 $418 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 LTM Apr 2022 $867 $1,005 $1,140 $1,265 $1,355 $437 $1,304 $1,490 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 LTM Apr 2022 Note: Figures are for Fiscal Year Ending in January of the following
Slide 13: Same Store Sales Recovery Continues to Be Very Strong
3.6% 1.1% (2.6%) 10.9% Q2'21 Q3'21 Q4'21 Q1'22 Same Store Sales Recovery Continues to Be Very Strong Note: SSS is not compared to the prior year period. Dave & Buster’s SSS growth is relative to 2019 for each quarter (a) Q3’21 figure excludes 7 stores located in markets that had vaccine mandates dur
Slide 14: Combined Company Overview
Entertainment & Other 71% Food & Beverage 29% Amusement 66% Food & Beverage 34% Amusement 67% Food & Beverage 33% 13 Combined Company Overview (a) Dave & Buster’s data as of May 1, 2022. Main Event data as of May 31, 2022 Source: Company presentations and materials + Geographic Footprint Combined Re
Slide 15: Enhanced Scale, Profitability and Cash Flow
84% 87% 89% FY 2019 FY 2021 LTM $308 $352 $418 $53 $37 $101 $3 $20 $20 $20 $381 $409 $543 FY 2019 FY 2021 LTM $1,355 $1,304 $1,490 $297 $267 $413 $8 $1,652 $1,571 $1,912 FY 2019 FY 2021 LTM 14 Combined Company Overview (Cont.) Enhanced Scale, Profitability and Cash Flow Revenue Growth Proforma Adj.
Slide 16: Diversified Offering Across Food & Entertainment
15 Diversified Offering Across Food & Entertainment… Entertainment (67% of Net Revenue) Bowling Virtual Reality Laser Tag Billiards Arcade & Games Karaoke Mini Golf Gravity Ropes Mini Escape Rooms & More!! Menu (33% of Net Revenue)
Slide 17: That Resonates for a Wide Variety of Occasions
16 …That Resonates for a Wide Variety of Occasions Kids Birthday Parties Youth / Young Adult Groups School Parties Adult Social Events Corporate Events Team Building Day Outings Multi-location Events
Slide 18: The Combined Entity is a Leading National Platform
The Combined Entity is a Leading National Platform… 17 Key Statistics Note: All Main Event figures shown include the acquisition of The Summit (a) Represents locations / states as of July 2022 (b) Dave & Buster’s Adj. EBITDA are LTM May 1, 2022 figures, Main Event are LTM May 31, 2022 figures that i
Slide 19: In a Rapidly Growing Sector
18 …in a Rapidly Growing Sector Visitor Demographic CAGR (’17-’19) CAGR (’19-’25) Adults (ages 25+) 3.0% 3.6% Young adults (ages 20-25) 5.9% 6.8% Families with children (ages 0-8) 7.7% 8.7% Families with children (ages 9-12) 9.5% 10.2% Teenagers (ages 13-19) 4.5% 5.3% $ in billions 2017 – 2025 North
Slide 20: FECs Are a Fast-Growing Source of Entertainment at an Affordable Price
0%-2% 0%-3% 2%-3% 2%-3% 2%-3% 2%-4% 5%-7% 5-7% 15% Laser Tag Mini Golf Ice Skating Paintball Bowling Go Karting Indoor Rock Climbing Family Entertainment Centers / Eatertainment Trampoline Parks Growth of FECs/ Eatertainment outpaced that of nearly all individual component activities Pre- COVID, and
Slide 21: New Financial Profile
Section 3 New Dave & Buster’s Financial Profile
Slide 22: Businesses That Have Demonstrated Revenue Stability and Growth Through Cycles
$413 $8 $34 $39 $49 $46 $46 $51 $57 $74 $89 $144 $175 $226 $279 $297 $233 $267 $422 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 LTM May 2022 $510 $536 $533 $521 $522 $542 $608 $636 $747 $867 $1,005 $1,140 $1,265 $1,3
Slide 23: Robust Margin Profile Driven by Business Mix
Entertainment & Other 70% Food & Beverage 30% Amusement 67% Food & Beverage 33% 22 Robust Margin Profile Driven by Business Mix Gross Profit vs. Select Comparable Public Peers Store-Level EBITDA Margin vs. Select Comparable Public Peers Note: Dave & Buster’s figures are for FYE January 31, 2022. Mai
Slide 24: Highly Consistent, Profitable Store Base
Note: Dave & Buster’s figures are LTM May 1, 2022 and exclude national marketing allocation. Main Event figures are LTM May 31, 2022. Dave & Buster’s excludes one store slightly negative due to COVID restrictions. Source: Company materials 23 Highly Consistent, Profitable Store Base Highly consisten
Slide 25: Meaningful Cost Synergies with Further Upside Potential
24 Meaningful Cost Synergies with Further Upside Potential Functional Area Amount (per annum) Store-Level Expenses • Cost of goods sold • Store-level labor • Repair and maintenance ~$7 million General and Admin • Corporate labor • Corporate operating expenditure • Marketing ~$13 million Total Cost S
Slide 26: Attractive New Store Model with High Returns on Capital
(a) Excludes pre-opening expenses, national marketing allocation and non-cash charges related to asset disposals, currency transactions and change in non-cash deferred amusement revenue and ticket liability (b) Net development costs include equipment, building, leaseholds and site costs, net of tena
Slide 27: Appendix
Section 4 Appendix
Slide 28: Combined Company Pro Forma Financials
Combined Company Pro Forma Financials 27 ($ in millions) Q2 FY 2021 Q3 FY 2021 Q4 FY 2021 Q1 FY 2022 LTM Q1 FY 2022 Stores Dave & Buster’s 142 143 144 145 145 Main Event(a) 47 48 49 51 51 Total Stores(a) 189 191 193 196 196 Revenues Dave & Buster’s 378 318 343 451 1,490 Main Event 106 83 103 130 422
Slide 29: AEBITDA Reconciliation
AEBITDA Reconciliation 28 ($ in millions) LTM 5/1/22 Net Income $156 Depreciation & amortization 137 Interest expense, net 51 Income tax expense 37 Loss on debt extinguishment / refinance 6 Reported EBITDA $385 Share-based compensation 13 Loss on asset disposal 2 Impairment of long-lived assets and
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