Dave & Buster's, Inc. Announces Preliminary Second Quarter Results of Operations and Changes to Jillian's Store Strategy
24 Agosto 2005 - 4:15PM
Business Wire
Dave & Buster's, Inc. (NYSE:DAB) a leading operator of upscale
restaurant/entertainment complexes, today announced that the
company's second quarter results of operations will fall short of
prevailing estimates, primarily as a result of disappointing
performance at its nine recently acquired Jillian's stores. The
company further announced that it plans to convert most of the
Jillian's locations to its core Dave & Buster's brand and that
its subsidiary has closed the acquired Jillian's complex located in
metro Minneapolis Mall of America. Total revenue for the second
quarter is expected to be approximately $111 million, an increase
of $16 million, from the $95.0 million in the prior year's
comparable quarter. Net loss for the quarter is expected to range
from ($.08) to ($.09) per basic share, compared to $.16 of net
income per diluted share in the same period last year. Net loss for
the second quarter includes an estimated pretax charge of $2.5
million or an estimated $.12 per basic share, relating to the
closure of the Mall of America location. In addition, the company
expects pretax store closing costs related to this location in the
third quarter of approximately $0.5 million. During the quarter,
revenues from the 33 comparable stores, all of which operate under
the Dave & Buster's core brand, increased 0.2% as compared to
the same period last year. "Although the performance of the
Jillian's units overshadowed our Dave & Buster's same store
sales gains during the second quarter, it is important to note that
our Dave & Buster's core brand accounts for approximately 85%
of our consolidated revenues and continues to show comparable store
sales gains of 3% for the first three weeks of the third quarter,"
said Dave Corriveau, the company's President. "We hoped that,
despite Jillian's protracted bankruptcy proceedings, there would be
significant opportunities to revitalize the Jillian's brand upon
our acquisition of these stores," stated Buster Corley, the
company's CEO. "However, we purchased these locations with the
knowledge that we could convert the stores to the Dave &
Buster's brand if it became advantageous or necessary to do so. We
believe that the conversion of these stores to the Dave &
Buster's brand will enhance and accelerate our efforts to improve
the results of operations of these stores from the disappointing
levels achieved during the first nine months since completion of
the acquisition. As the Minneapolis Jillian's location accounts for
such a significant portion of this year's shortfall in anticipated
results and approximately 40% of the Jillian's store level losses,
we do not believe that the capital expenditures necessary to
re-brand that store would be justified." The company has already
completed many of the improvements necessary to convert most of the
Jillian's stores to the Dave & Buster's brand, including
facilities enhancements, product quality improvements, equipment
upgrades and additions, new games and significant store level
management changes. The company's advertising of the Jillian's
stores has been at minimal maintenance levels since the beginning
of the year. "Our goal was to make much needed improvements to
Jillian's before we began re-marketing the brand. We will now
aggressively advertise and market these stores as they convert to
the stronger Dave and Buster's brand," continued Mr. Corley. The
company estimates that an additional $5 million in capital
expenditures will be required to complete the re-branding of these
stores during this fiscal year. "We will re-brand the first
Jillian's to Dave and Buster's next month," stated Dave Corriveau,
the company's President. "With our scheduled 2005 new store
openings in tandem with most of the Jillian's stores converting and
the addition of at least two new stores in 2006, our current plan
is to have 10-12 more stores operating under the Dave and Buster's
brand within a year from today." The company has lowered its
previously announced earnings guidance for the current fiscal year
from a range of $1.15 to $1.23 per diluted share to an estimated
range of $.64 to $.70 per diluted share. The revised estimate
includes the approximate $3.0 million pretax charge associated with
the closure of the Mall of America location during the fiscal year.
The company has also decided to reduce its new store openings in
fiscal 2006 to two or three new stores from three or four new
stores, attributable in part to the additional capital expenditures
associated with the re-branding program. Separately, the company
has announced that it has agreed to purchase the general partner
interest in the Jillian's store located at the Discover Mills Mall
in metropolitan Atlanta. The purchase price for this interest, sold
pursuant to an auction held by the bankruptcy court, is $900,000.
The company will also receive a quarterly management fee from the
partnership. The company will hold a special conference call to
discuss these developments tomorrow, August 25, 2005, at 9:00 a.m.
Eastern Time (8:00 a.m. Central Time). The company plans to release
earnings for the second quarter 2005 before the market opens on
September 8, 2005 and will hold a conference call at 11:30 a.m.
Eastern time (10:30 a.m. Central time) that same day. The call will
be Webcast by CCBN and can be accessed at Dave & Buster's Web
site, www.daveandbusters.com. Individual investors can listen to
the call through CCBN's individual investor center,
www.companyboardroom.com. In addition, investors can access the
call by visiting any of the investor sites in the CCBN Individual
Investor Network. Institutional investors can access the call via
CCBN's password-protected event management site,
www.streetevents.com. The Webcast will be archived on the company's
Web site and available for replay through September 8, 2005.
Celebrating over 22 years of operations, Dave & Buster's was
founded in 1982 and is one of the country's leading upscale,
restaurant/entertainment concepts with 43 locations throughout the
United States and in Canada. More information on the company,
including the latest investor presentation is available on the
company's Website, www.daveandbusters.com. "Safe Harbor" Statements
Under the Private Securities Litigation Reform Act of 1995 Certain
information contained in this press release includes
forward-looking statements. Forward-looking statements include
statements regarding our expectations, beliefs, intentions, plans,
projections, objectives, goals, strategies, future events or
performance and underlying assumptions and other statements which
are other than statements of historical facts. These statements may
be identified, without limitations, by the use of forward-looking
terminology such as "may," "will," "anticipates," "expects,"
"projects," "believes," "intends," "should," or comparable terms or
the negative thereof. All forward-looking statements included in
this press release are based on information available to us on the
date hereof. Such statements speak only as of the date hereof.
These statements involve risks and uncertainties that could cause
actual results to differ materially from those described in the
statements. These risks and uncertainties include, but are not
limited to, the following: our ability to open new high-volume
restaurant/entertainment complexes; our ability to raise and access
sufficient capital in the future; changes in consumer preferences,
general economic conditions or consumer discretionary spending; the
outbreak or continuation of war or other hostilities involving the
United States; potential fluctuation in our quarterly operating
result due to seasonality and other factors; the continued service
of key management personnel; our ability to attract, motivate and
retain qualified personnel; the impact of federal, state or local
government regulations relating to our personnel or the sale of
food or alcoholic beverages; the impact of litigation; the effect
of competition in our industry; additional costs associated with
compliance with the Sarbanes-Oxley Act and related regulations and
requirements; and other risk factors described from time to time in
our reports filed with the SEC.
Dave & Busters (NYSE:DAB)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Dave & Busters (NYSE:DAB)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024