Dave & Buster's Entertainment Inc (NASDAQ:PLAY) reported stronger-than-expected results for its fourth quarter. The company suspended its dividend and buyback program.
The Dallas-based restaurateur reported Thursday that total revenues increased 4.6% to $347.2 million from $331.8 million. Its number of stores increased 12.4% to 136 from 121. Comparable store sales decreased 4.7%
Net income totaled $25.0 million, or $0.80 per diluted share (31.2 million shares outstanding), vs. net income of $29.4 million, or $0.75 per diluted share (39.1 million shares outstanding). EBITDA increased 1% to $72.9 million from $72.1 million
Said CEO Brian Jenkins, "In 2019, our more-than-16,000 dedicated team members worked hard to achieve record revenues and EBITDA. In the fourth quarter, we made meaningful progress on our strategic priorities and exceeded both our sales and EBITDA expectations."
On March 20, the Company temporarily closed all 137 locations in 39 States, Canada and Puerto Rico.
Until the Company is able to begin reopening stores, all of the Company’s more than 15,000 store hourly team members have been placed on temporary furlough, store management and corporate staff have been reduced by nearly 90% compensation of the senior leadership team has been reduced by 50% and the Board of Directors has suspended Directors’ cash compensation for the remainder of the year.
With its recent full drawdown of its revolving credit facility, the Company had approximately $100 million cash on hand as of March 31.
PLAY stocks increased 15 cents, or 1.5%, to open Friday at $10.20
