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• Revenue: $535 million for Q4 fiscal 2024.

• Net Income: $9 million or $0.25 per diluted share.

• Adjusted Net Income: $27 million or $0.69 per diluted share.

• Adjusted EBITDA: $127 million with a margin of 23.8%.

• Comparable Store Sales: Decreased 9.4% on a like-for-like calendar basis versus the prior year period.

• Operating Cash Flow: $108.9 million for Q4.

• Cash and Credit Availability: $6.9 million in cash and $503.5 million available under a $650 million revolving credit facility.

• Net Total Leverage Ratio: 2.8 times.

• Share Repurchases: Nearly 3 million shares for approximately $85 million in Q4; total of 5 million shares repurchased in fiscal 2024.

• Sale-Leaseback Proceeds: $111 million from Q4 transactions, totaling $185 million for fiscal 2024.

• Capital Expenditures: $558 million on a gross basis or $357 million net for fiscal 2024.

• New Store Openings: 5 new stores in Q4, totaling 14 new stores in fiscal 2024.

• Franchise Development: First international franchise location opened in India; 35 franchise partnership agreements in place.

• Fiscal 2025 Capital Expenditure Expectation: Not to exceed $220 million.

• Planned New Store Openings for Fiscal 2025: 10 to 12 new stores.

• Warning! GuruFocus has detected 6 Warning Signs with PLAY.

Release Date: April 07, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Dave & Buster's Entertainment Inc (NASDAQ:PLAY) has identified clear opportunities for improvement and is taking actions to address past mistakes.

• The company has reintroduced TV advertising and returned to its historically successful promotional activities, such as the Eat & Play Combo.

• Financial position remains strong with low leverage, no near-term debt maturities, and significant operating free cash flow generation.

• New store development continues to deliver high returns on investment, with 14 new stores added in fiscal 2024 and plans for further expansion.

• The introduction of new games, including the Human Crane and other premium marquee games, is expected to enhance the customer experience and drive revenue growth.

Negative Points

• Comparable store sales decreased by 9.4% in the fourth quarter of fiscal 2024, indicating ongoing challenges in driving traffic and sales.

• Previous leadership's significant changes to marketing, operations, and menu negatively impacted the business, requiring a back-to-basics approach.

• The company is facing a mixed economic environment, with uncertainties impacting consumer behavior and spending.

• Remodel strategy faced challenges due to improper testing and budget overspending, leading to a more measured pace in 2025.

• The competitive landscape remains a concern, with the need to differentiate and improve brand positioning to better compete in the market.