Dave & Buster's Entertainment (NASDAQ: PLAY) reported Q3 EPS of $0.02, in-line with the analyst estimate of $0.02. Revenue for the quarter came in at $299.4 million versus the consensus estimate of $296.36 million.

Key Highlights (all comparisons to third quarter 2018)

• Total revenues increased 6.1% to $299.4 million from $282.1 million
• Number of stores increased 13.6% to 134 from 118
• Comparable store sales decreased 4.1%
• Net income totaled $0.5 million, or $0.02 per diluted share, vs. net income of $11.9 million, or $0.30 per diluted share.
  • Third quarter 2019 net income was negatively affected by pre-tax charges totaling $3.3 million ($2.6 million, net of tax, or $0.08 per diluted share) related to on-going litigation and corporate restructuring. Third quarter 2018 net income benefited from a $2.3 million pre-tax insurance recovery ($1.4 million net of tax, or $0.03 per diluted share).
• EBITDA decreased 13.5% to $39.8 million from $46.0 million.
  • Both third quarter 2019 and third quarter 2018 EBITDA were affected by pre-tax items described above. Excluding these impacts from the respective third quarter measures, EBITDA in the third quarter of 2019 declined by $0.6 million or 1.4% to $43.2 million from $43.8 million.
• Repurchased 2.4 million shares for approximately $97 million and increased quarterly cash dividend by 7% to $0.16 per share
• Fiscal 2019 guidance updated

“We delivered 6% revenue growth in the third quarter driven by strong new store performance, and are encouraged by our progress advancing our near-term priorities to drive improved performance and sustainable shareholder value,” said Brian Jenkins, Chief Executive Officer. “We are successfully executing our plan to drive growth and position the company for long-term success despite comp sales headwinds from increased competition. We will continue to manage the pace of new store growth to maximize returns and focus on advancing our store revitalization efforts.”

GUIDANCE:

Dave & Buster's Entertainment sees FY2019 revenue of $1.347-1.354 billion, versus the consensus of $1.35 billion.

The Company is updating its fiscal 2019 guidance as follows:

• Total revenues of $1.347 billion to $1.354 billion (vs. $1.338 billion to $1.359 billion)
• Comparable store sales of -3.0% to -2.5% (vs. -3.5% to -2.0%)
• 16 new stores (vs. 15-16 new stores)
• Net income of $94 million to $98 million (vs. $91 million to $100 million)
• Effective tax rate of 21.5% to 22.0% (vs. 22.0% to 22.5%) and diluted share count of approximately 34.0 million (unchanged)
• EBITDA of $275 million to $280 million (vs. $272 million to $282 million)
• Total capital additions (net of tenant improvement allowances and other landlord payments) of $215 million to $220 million (vs. $200 million to $210 million)

For earnings history and earnings-related data on Dave & Buster's Entertainment (PLAY) click here.