Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY) Q3 2019 Earnings Conference Call - Final Transcript

Dec 10, 2019 • 05:00 pm ET

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Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY) Q3 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good afternoon, everyone. Welcome to the Dave & Buster's Entertainment, Inc. Third Quarter 2019 Earnings Conference Call. Today's call is being hosted by Brian Jenkins, Chief Executive Officer. I'd like to remind everyone that this call is being recorded and will be available for replay beginning later today.

I would now like to turn the conference over to Mr. Scott Bowman, Chief Financial Officer. Please go ahead with your opening remarks.

Executive
Scott J. Bowman

Thank you, Cody. And thank you all for joining us. Joining me on today's call are Brian Jenkins, Chief Executive Officer. After comments from Mr. Jenkins and myself, we will be happy to take your questions. This call is being recorded on behalf of Dave & Buster's Entertainment, Inc. and is copyrighted.

Before we begin our discussion on the company results, I'd like to call your attention to the fact that in our remarks and our responses to questions, certain items may be discussed, which are not entirely based on historical facts. Any of these items should be considered forward-looking statements relating to future events, within the meaning of the Private Securities Litigation Reform Act of 1995.

All such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ from those anticipated. Information on the various risk factors and uncertainties have been published in our filings with the SEC, which are available on our website at www.daveandbusters.com, under the Investor Relations section.

In addition, our remarks today will include references to EBITDA, adjusted EBITDA and store operating income before depreciation and amortization, which are financial measures that are not defined under generally accepted accounting principles. Investors should review the reconciliation of these non-GAAP measures to the comparable GAAP results contained in our earnings announcement released this afternoon, which is also available on our website.

Now I will turn the call over to Brian.

Executive
Brian A. Jenkins

Good afternoon, and thank you for joining our call today to discuss third quarter results and our outlook for the business. For the quarter, total revenue increased by 6% led by continued strong performance from our new stores. While we continue to drive meaningful progress in our business and overall strategy, our comp sales declined 4.1% in line with the run rate trends we shared on our last earnings call, as we continue to see softer comps in our Amusements business and impacts from increased competition across the markets we serve.

Now I'd like to turn to our near-term priorities, which we outlined on our Q2 earnings call, as we remain laser focused on the execution of these priorities and continue to make progress on many fronts. Although these initiatives will take time to be fully realized, we are encouraged by our progress to date and feel confident the actions we are taking will drive meaningful improvement, value creation and long-term success for the business.

Now, let me share some specific updates on these priorities. We are progressing well on our first priority of revitalizing our existing stores. We have rolled out