Dave & Buster's Entertainment Beats Q4 Estimates

reported better-than-expected financial results for its fourth quarter on Tuesday. The Dallas, Texas-based company posted quarterly net income of $14.7 million, or $0.34 per share, up from $4.9 million, or $0.14 per share, in the year-ago quarter. Pro forma net income jumped to $0.33 per share from $0.18 per share. Its total revenue rose 20.8 percent to $207.1 million, compared to $171.4 million. However, analysts were expecting earnings of $0.28 per share on revenue of $201.38 million. Food and Beverage revenue gained 17.6 percent to $103.0 million, while Amusements and Other revenue rose 24.2 percent to $104.0 million in the latest quarter. Its comparable store sales surged 10.5 percent in the quarter, versus a 0.7 percent gain in the year-ago quarter. Adjusted EBITDA climbed 28.1 percent to $51.5 million versus $40.2 million, while operating income surged to $28.0 million from $18.3 million. During the fourth quarter, the company opened 3 stores. "2014 was a fantastic year for Dave & Buster's. We generated record-setting revenues, Adjusted EBITDA, and Adjusted EBITDA margins and ended on a high note with an exceptional fourth quarter performance. D&B Sports played an important role in our 10.5% comparable store sales growth during the fourth quarter, but our sales growth across geographies, operating days, and day-parts demonstrates that Dave & Buster's brand appeal is much broader than just sports. The synergistic combination of dining, entertainment, and sports viewing in one destination, makes us the first choice for frequent fun," said Steve King, Chief Executive Officer. For 2015, Dave & Buster's projects net income of $36.7 million to $40.4 million, sales of $808 million to $822 million and comparable store sales growth of 3.0 percent to 4.0 percent. Dave & Buster's shares rose 1.17 percent to $31.00 in the after-hours trading session.