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Summary of Significant Accounting Policies | 3 Months Ended
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May 06, 2025
Accounting Policies [Abstract] |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The accompanying consolidated financial statements include the accounts of Dave & Buster’s Entertainment, Inc. (referred to herein as the “Company,” “we,” “us” and “our”), any predecessor companies and its wholly-owned subsidiaries, Dave & Buster’s Holdings, Inc. (“D&B Holdings”), which owns 100% of the outstanding common stock of Dave & Buster’s, Inc. (“D&B Inc”), the operating company. The Company, headquartered in Coppell, Texas, is a leading operator of high-volume entertainment and dining venues (“stores”) in North America for adults and families. The Company operates its business as one reportable operating segment with two reporting units based on its major brands, Dave & Buster's and Main Event. The Company has one reportable operating segment as both brands provide similar products and services to a similar customer base, are managed together by a single management team and share similar economic characteristics. See further discussion of segment consideration at Note 8 - Segment Information to the consolidated financial statements. During the three months ended May 6, 2025, the Company opened two stores and relocated one store. As of May 6, 2025, the Company owned and operated 234 stores in 44 states, Puerto Rico and one Canadian province. Fiscal Calendar — The Company operates on a 52- or 53-week fiscal year ending on the Tuesday after the Monday closest to January 31. Each quarterly period reported has 13 weeks, except for 53-week fiscal years when the fourth quarter has 14 weeks. Fiscal 2024, which ended on February 4, 2025, followed this calendar and had 52 weeks. The first quarter of both fiscal 2025 and fiscal 2024 had 13 weeks, however the first quarter of 2024 followed our previous fiscal calendar, which ended on a Sunday. Basis of Presentation — The Company’s financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States for interim financial information as prescribed by the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all the information and notes required by GAAP for complete financial statements. In the opinion of management, these financial statements contain all adjustments, consisting of normal recurring accruals, necessary to present fairly the financial position, results of operations and cash flows for the periods indicated. Our quarterly financial data should be read in conjunction with the audited financial statements and notes thereto for the year ended February 4, 2025, included in our Annual Report on Form 10-K as filed with the SEC on April 7, 2025. The preparation of consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosures of contingent assets and liabilities at the date of the consolidated financial statements and for the period then ended. Actual results could differ from those estimates. Operating results for the three months ended May 6, 2025 are not necessarily indicative of results that may be expected for any other interim period or for the full fiscal year ending February 3, 2026. Cash and Cash Equivalents — We consider transaction settlements in process from credit card companies and all highly-liquid investments with original maturities of three months or less to be cash equivalents. Our cash management system provides for the daily funding of all major bank disbursement accounts as checks are presented for payment. Under this system, outstanding checks in excess of the cash balances at certain banks can create book overdrafts. There were no book overdrafts as of May 6, 2025 or as of February 4, 2025. Fair Value of Financial Instruments — Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. In determining fair value, the accounting standards establish a three-level hierarchy for inputs used in measuring fair value. The carrying amounts of cash and cash equivalents, accounts and notes receivable, accounts payable, and other current liabilities approximate fair value because of their short-term nature. The fair value of the Company’s debt is determined based on traded price data as of the measurement date, which we classify as a level two input within the fair value hierarchy as defined under GAAP. The fair value of the Company's debt was as follows as of the periods indicated:
| May 6, 2025 |  | February 4, 2025
Revolving credit facility | $ | 225.0 |  |  | $ | 135.0 |
Term loans | 1,289.9 |  |  | 1,351.1 |
Total debt | $ | 1,514.9 |  |  | $ | 1,486.1 |
Revenues — Our entertainment revenues primarily consist of attractions including redemption and simulation games, bowling, laser tag, billiards and gravity ropes. Our food and beverage revenues consist of full meals, appetizers and both alcoholic and non-alcoholic beverages. The Company's revenue by categories was as follows:
|  |  | Three Months Ended
|  |  |  |  | May 6, 2025 |  | May 5, 2024
Entertainment |  |  |  |  | $ | 359.1 |  |  | $ | 380.8 |
Other (1) |  |  |  |  | 7.5 |  |  | 4.9 |
Entertainment revenues |  |  |  |  | $ | 366.6 |  |  | $ | 385.7 |
Food and non-alcoholic beverages |  |  |  |  | $ | 137.5 |  |  | $ | 135.6 |
Alcoholic beverages |  |  |  |  | 63.6 |  |  | 66.8 |
Food and beverage revenues |  |  |  |  | $ | 201.1 |  |  | $ | 202.4 |
(1) Primarily consists of revenue earned from party rentals and gift card breakage (see Revenue recognition below). Revenue Recognition — Customers purchase cards with game play credits to be used on a variety of redemption and simulation games. Entertainment revenues related to game play primarily consist of game play credits, which are used by customers to activate video and redemption games. Redemption games allow customers to earn tickets, which may be redeemed for prizes. We have deferred a portion of entertainment revenues for the estimated unfulfilled performance obligations related to unredeemed game play credits and tickets. The deferred entertainment revenue is based on an estimated rate of future use by customers of unused game play credits and the material right provided to customers to redeem tickets in the future for prizes. The Company recognizes expected breakage as revenue in proportion to the pattern of redemption by the customers. This breakage is based on the Company’s specific historical redemption patterns and will change as those redemption patterns change over time. Recognized game play credits and tickets breakage revenue is included in entertainment revenues in the statement of comprehensive income. During the three months ended May 6, 2025, we recognized revenue of $38.8 related to the amount in deferred entertainment revenues as of the end of fiscal 2024. Historically, select Company promotional programs include multiple performance obligations that are discounted from the standalone selling prices. We allocate the entire discount to the remaining performance obligation. We recognize revenue on unredeemed gift cards in proportion to the pattern of redemption by the customers. During the three months ended May 6, 2025, we recognized revenue of $3.4 related to the amount in deferred gift card revenue as of the end of fiscal 2024. These revenues are included in Entertainment revenues on the Consolidated Statements of Comprehensive Income. Earnings Per Share — Basic net income per share is computed by dividing net income available to common shareholders by the basic weighted average number of common shares outstanding for the reporting period. Diluted net income per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. For the calculation of diluted net income per share, the basic weighted average shares outstanding is increased by the dilutive effect of stock options and restricted share awards. Stock options and restricted share awards with an anti-dilutive effect are not included in the diluted net income per share calculation. Basic weighted average shares outstanding are reconciled to diluted weighted average shares outstanding as follows:
|  |  | Three Months Ended |  |
|  |  |  |  | May 6, 2025 |  | May 5, 2024 |  |  |  |
Basic weighted average shares outstanding |  |  |  |  | 34.72 |  |  | 40.32 |  |  |  |
Weighted average dilutive impact of awards |  |  |  |  | 0.47 |  |  | 1.32 |  |  |  |
Diluted weighted average shares outstanding |  |  |  |  | 35.19 |  |  | 41.64 |  |  |  |
Weighted average awards excluded as anti-dilutive |  |  |  |  | 0.62 |  |  | 0.10 |  |  |  |
Recent Accounting Pronouncements — We reviewed the accounting pronouncements that became effective for fiscal year 2025 and determined that either they were not applicable, or they did not have a material impact on the consolidated financial statements. See discussion at Note 1 to the consolidated financial statements in the Company's Annual Report on Form 10-K for the year ended February 4, 2025 for previously issued accounting pronouncements that may have an impact to the Company in the future. Accounting reclassifications — We made certain reclassifications of amounts in the Consolidated Statements of Comprehensive Income for the period ende d May 5, 2024 to be consistent with the presentation for the period end ed May 6, 2025. We reclassified certain costs and gains from “Other store operating expenses” and “General and administrative expenses” to “Other charges and gains” for the following reasons: •System implementation costs - These costs are enterprise wide and not specifically attributable to store operations or general and administrative costs. •Asset and currency gains and losses - These costs and gains include the disposal or impairment of assets and the impact of currency revaluation and are not directly attributable to specific store operations or general and administrative costs and may be irregular in nature. A summary of the reclassifications for the three months ended May 5, 2024 is as follows:
| Three Months Ended May 5, 2024
| Previously Reported |  | System Implementation |  | Currency (Gain) Loss |  | Asset (Gain) Loss |  | Adjusted
Other store operating expenses | $ | 176.1 |  |  | $ | (0.3) |  |  | $ | (0.1) |  |  | $ | 0.3 |  |  | $ | 176.0 |
General and administrative expenses | $ | 31.5 |  |  | $ | (3.5) |  |  | $ | — |  |  | $ | — |  |  | $ | 28.0 |
Other charges and gains | $ | — |  |  | $ | 3.8 |  |  | $ | 0.1 |  |  | $ | (0.3) |  |  | $ | 3.6 |

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- Definition The entire disclosure for the general note to the financial statements for the reporting entity which may include, descriptions of the basis of presentation, business description, significant accounting policies, consolidations, reclassifications, new pronouncements not yet adopted and changes in accounting principles. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 235 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/235/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 275 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/275/tableOfContent Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 810 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/810/tableOfContent Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 250 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/250/tableOfContent + Details
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