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For more than 30 years, Cabling Installation & Maintenance has provided useful, practical information to professionals responsible for the specification, design, installation and management of structured cabling systems serving enterprise, data center and other environments. These professionals are challenged to stay informed of constantly evolving standards, system-design and installation approaches, product and system capabilities, technologies, as well as applications that rely on high-performance structured cabling systems. Our editors synthesize these complex issues into multiple information products. This portfolio of information products provides concrete detail that improves the efficiency of day-to-day operations, and equips cabling professionals with the perspective that enables strategic planning for networks’ optimum long-term performance.

Throughout our annual magazine, weekly email newsletters and 24/7/365 website, Cabling Installation & Maintenance digs into the essential topics our audience focuses on.

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Dave & Buster’s (NASDAQ: PLAY) Q1 2023 Financial Results Show Record Revenue and Net Income, Announces International Expansion

Dave & Buster’s Entertainment, Inc. (NASDAQ: PLAY), an esteemed operator of dining and entertainment venues, recently reported remarkable financial results for the first quarter ending April 30, 2023. The company posted record revenue, marking a significant increase from the corresponding quarter in 2022, and also recorded a surge in net income.

Dave & Buster’s: Q1 2023 Record Revenue and Net Income

Dave & Buster’s posted a record revenue of $597.3 million in Q1 2023, marking a 32.4% increase from the first quarter of 2022. Accounting for the contribution of Main Event in Q1 2022, the year-on-year growth stood at $21.8 million, or 3.8%. In addition to the significant revenue growth, the company also registered a record net income of $70.1 million or $1.45 per diluted share, an increase from the $67.0 million, or $1.35 per diluted share in Q1 2022.

Pro Forma Sales and EBITDA Growth

Despite a slight decrease in pro forma combined comparable store sales (including Main Event branded stores) by 4.1% compared with Q1 2022, there was an encouraging increase of 10.3% compared with Q1 2019. Record Adjusted EBITDA for the quarter stood at $182.1 million, a 29.8% rise from Q1 2022. Including the pro forma contribution from Main Event, the year-on-year Adjusted EBITDA growth was $7.9 million, or 4.6%.

Share Repurchases and Liquidity Position

The company repurchased 3.6 million shares in Q1 at a total cost of $125.5 million. Subsequent to the end of the quarter, Dave & Buster’s purchased an additional 2.1 million shares at a cost of $74.5 million. These transactions brought total repurchases in fiscal 2023 to 5.7 million shares worth $200.0 million, representing 11.8% of the outstanding shares as of the end of fiscal 2022. The company ended the quarter with a substantial liquidity of $581.7 million.

Dave & Buster’s Announces Expansion and Future Growth

In the quarter under review, Dave & Buster’s opened a new store in Puerto Rico, alongside three new Main Event stores in Little Rock, AR, Tucson, AZ, and Lexington, KY. It also signed two international franchise agreements for up to 15 stores in India and 5 stores in Australia. The company’s CEO, Chris Morris, expressed confidence in their strategies to unlock significant revenue growth and cost efficiency opportunities, which will drive value creation for all stakeholders.

Strong Balance Sheet and Capital Return

The company maintained a strong balance sheet, generating $92.4 million in operating cash flow during Q1. With a net total leverage ratio of 2.0x, the company is well within its credit agreement’s maximum permitted net total leverage ratio of 3.5x. Dave & Buster’s CFO, Michael Quartieri, emphasized their significant strides in optimizing their business model to drive revenue, achieve meaningful cost savings, and deploy capital in high ROI opportunities.

In conclusion, Dave & Buster’s Q1 2023 financial results are marked by significant revenue growth, solid net income, and strategic expansions. The company is poised for further growth and is committed to delivering enhanced value to its shareholders.

Disclosure: No position. Spotlight Growth has no relationships with any of the companies mentioned in this article and did not receive payment in any form for its creation. This is an opinion article and is not meant to be financial advise. We are not broker-dealers or investment professionals. Please conduct your own due diligence. For more information on our disclosures, please visit: https://spotlightgrowth.com/disclosures/

The post Dave & Buster’s (NASDAQ: PLAY) Q1 2023 Financial Results Show Record Revenue and Net Income, Announces International Expansion appeared first on Spotlight Growth.

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