US entertainment venue operator Dave & Buster's has announced results for its third quarter ended October 30, 2011.
Total revenues increased 3.2 per cent to $120.3m in the third quarter of 2011, compared to $116.6m in the third quarter of 2010. The year-over-year revenue increase was driven by a $4.7m increase in revenues from non-comparable stores and other revenue sources and was partially offset by a 0.9 per cent decrease in comparable store sales. Across all stores, amusements and other revenues increased $3.8m or 6.6 per cent on a year-over-year basis and food and beverage revenues declined slightly from the third quarter of 2010.
Adjusted EBITDA increased 15.4 per cent to $15.1m in the third quarter of 2011 versus $13.1m in the third quarter of fiscal 2010.
Total revenues for the 39-week period increased three per cent to $397.6m from $386.1m for the comparable period last year. This revenue increase was made up of a 2.7 per cent increase in comparable store sales, as well as an increase of $5.9m in revenues from non-comparable stores and other revenue sources, and was partially offset by a $2.7m revenue reduction associated with the late first quarter 2010 flood-related closure of the company's store in Nashville, Tennessee, and a $1.5m revenue reduction related to the second quarter 2011 closure of a store in Dallas, Texas. Total food and beverage revenues increased $2.2m or 1.1 per cent and revenues from amusements and other increased $9.3m or 4.9 per cent. Adjusted EBITDA for the 39-week period increased 17.4 per cent to $68.4m versus $58.3m for the comparable period last year.
"Given the current economic backdrop, our ability to deliver more than 15 per cent adjusted EBITDA growth during the quarter was extremely impressive," said Steve King, Dave &Buster's CEO. "We are very excited that we are continuing to expand the Dave & Buster's brand with our recent openings in Nashville, Tennessee, and Braintree, Massachusetts, as well as our upcoming 2012 opening in Oklahoma City."
