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Dave & Buster's Entertainment, Inc. announced financial results for its third quarter 2020, which ended November 1, 2020, showing a 64% annual decline in revenue to $109.1 million. Comparable store sales declined 66% for the third quarter. Operating loss totalled $56.0 million, or (51.4)% of revenues, compared with operating income of $6.5 million, or 2.2% of revenues. Net loss totalled $48.0 million, or $1.01 per share (47.6 million share base) compared with net income of $0.5 million, or $0.02 per diluted share (31.5 million diluted share base). On October 27, 2020, the Company completed a private offering of $550 million 7.625% senior secured notes due November 2025, which included modifications to certain debt covenants through 2022 and a two-year term extension on the current credit facility to August, 2024. Proceeds of the offering were used to repay all amounts previously outstanding under its term loan facility and to partially repay drawings under its revolving credit facility, the undrawn portion of which will be available to be drawn in the future for general corporate purposes, subject to its specific terms.
The Company began the third quarter with 84 open stores, or approximately 60 percent of its total store base. As of November 1, the Company had 104 open stores, or approximately 75 percent of its total store base. In light of these developments and the Company’s projected cash flows from operations, the Company believes “it has alleviated the substantial doubt about the Company's ability to continue as a going concern, and the Company has sufficient liquidity to satisfy its obligations over the next twelve-month period.”
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