Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY) Q1 2017 Earnings Conference Call - Final Transcript

Jun 06, 2017 • 05:00 pm ET


Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY) Q1 2017 Earnings Conference Call - Final Transcript


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Stephen King

comps above the system average for the first time in quite a while. On the heels of a very successful 2016, this year is shaping up to be another exciting year for Amusement segment of our business.

During the early part of the first quarter this year, we introduced two Zombie-themed games including Zombie Snatcher and The Walking Dead, both of which are performing extremely well for us. In addition, we recently launched a game based on the Pirates of the Caribbean license.

Our upcoming Summer of Games lineup includes highly recognized marketable content which we plan to unveil gradually, as we promote those games over the course of the next several months. For example, just this week, we launched a proprietary game based on the Spider-Man license and we believe the game will resonate well with our guests.

Meanwhile, after a somewhat rocky start, the uptime for our proprietary title Rock'Em Sock'Em Robots continues to improve and the game remains extremely popular.

With our new and compelling content, including games based on some of the world's best-known movie properties, the year will underscore the further evolution of our Amusement strategy, as we continue to collaborate with our many game manufacturing partners to deliver our strategy.

From a food standpoint, we introduced several new items, including two shareable appetizers with an additional sandwich and burger options as well as crispy Nashville-style hot chicken. With our beverage lineup, we added three new on-trend flavors to our signature Smashtails platform of whiskey-based cocktail.

Menu innovation remains a hallmark of our brand, particularly in a more challenging casual dining environment. We recently introduced four new signature rum-based punches served with a giveaway sea monster figures. This monster isle punch platform, as we call it, has quickly become popular with our guests and is performing extremely well for us.

Amusements continues to be our focus from a promotional standpoint and continues to be our strongest sales channel. Once guests are in our stores, we want to sell them the complete experience, including our Food and Beverage offerings. As we mentioned before, we drive traffic by featuring games as well as great looking Food and Beverage items on national cable television, typically coupled with an immediate call to action, including an element of free gameplay.

As an additional note, the number of weeks of national cable advertising as well as spending during the first quarter was comparable to that of the same period last year.

In terms of our guidance for 2017, broadly speaking, we continue to expect low to mid teen growth in revenue and EBITDA. That said, we've increased our guidance, and Brian will elaborate on that change in his prepared remarks.

Now let's hear from Brian, who'll provide a more detailed financial update.

Brian Jenkins

Well, thank you Steve, and good afternoon, everyone. Before walking through the numbers, I just want to thank our many team members across the country who have made D&B one of the best experiential brands for consumers today.