Dave & Buster's, Inc. Reports Fourth Quarter and Fiscal Year 2007 Results

Business Wire, April 24, 2008

DALLAS -- Dave & Buster's, Inc., a leading operator of high volume entertainment/dining complexes, today announced results for its fourth quarter and fiscal year ended February 3, 2008.

Highlights for the 13 week fourth quarter of 2007 compared to the 14 week fourth quarter of 2006 were as follows:

* Total revenue increased 1.0% to $145.4 million from $143.9 million in the fourth quarter of 2006.

* Same store sales increased 4.0% over the comparable 13 week period in 2006.

* Operating income increased to $13.1 million from $5.3 million in the fourth quarter of 2006.

Highlights for the 52 week fiscal year 2007 compared to the 53 week fiscal year 2006 were as follows:

* Total revenue increased 5.1% to $536.3 million from $510.2 million.

* Same store sales increased 4.1% compared to a 52 week 2006 period.

* Operating income increased to $21.1 million from $8.0 million.

"We are thrilled that we were able to sustain over 4% same store sales growth throughout Fiscal 2007," said Steve King, Chief Executive Officer. "Our unique combination of food and games, supported by a strong national cable value message in the Eat and Play Combo, provided our guests an opportunity to escape from their everyday routine for a few hours and have fun at Dave & Buster's."

Review of Operating Results

Total reported revenues increased 1.0% to $145.4 million in the fourth quarter of 2007, compared to $143.9 million in the fourth quarter of 2006. Total revenue growth based on the comparable 13 week period in 2006 increased 7.3%, due primarily to a 4.0% increase in comparable store sales. Reported Food and Beverage revenues increased 4.7% while revenues from Amusements and Other increased 10.9%, respectively on a comparable 13 week basis.

Reported revenues for the 52 week fiscal year ended February 3, 2008 increased to $536.3 million from $510.2 million in Fiscal 2006. Total revenue growth based on the 52 week 2006 increased 6.9%, due primarily to a comparable stores sales increase of 4.1%. Reported Food and Beverage revenues increased 3.1%, while revenues from Amusements and Other increased 7.6% (increases of 4.9% and 9.4% respectively on a comparable 52 week basis).

EBITDA (Modified) for the fourth quarter of 2007 increased to $27.1 million from $19.6 in the fourth quarter of 2006. Adjusted EBITDA, which excludes non-recurring charges, increased 2.2% to $27.3 million versus $26.7 million in the fourth quarter of 2006.

For the fiscal year 2007, EBITDA (Modified) of $75.9 million increased by $19.2 million versus $56.7 million in fiscal year 2006. Adjusted EBITDA improved 14.8% to $81.0 million in fiscal 2007 versus $70.5 million in fiscal 2006.

"Our outstanding EBITDA performance in 2007 was fueled by strong sales and our operating team's ability to implement key improvement initiatives throughout the year," said Mr. King, "We are very pleased with the results of this year and believe our momentum is sustainable into 2008."

Non-GAAP Financial Measures

A reconciliation of EBITDA (Modified) and Adjusted EBITDA to net income, the most directly comparable financial measure presented in accordance with GAAP, is set forth in the attachment to this release.

The Company will hold a conference call to discuss fourth quarter and fiscal year 2007 results on Thursday, April 24, 2008, at 10:00 a.m. Central Time (11:00 a.m. Eastern Time). To participate in the conference call, please dial (866) 765-2661 a few minutes prior to the start time and reference code # 43388625. Additionally, a live and archived webcast of the conference call will be available on the Company's Web site, www.daveandbusters.com.

Celebrating over 25 years of operations, Dave & Buster's was founded in 1982 and is one of the country's premier entertainment/dining concepts with 49 locations throughout the United States and in Canada. More information on the Company is available on the Company's website, www.daveandbusters.com.

The statements contained in this release that are not historical facts are forward-looking statements. These forward-looking statements involve risks and uncertainties and, consequently, could be affected by our level of indebtedness, general business and economic conditions, the impact of competition, the seasonality of the company's business, adverse weather conditions, future commodity prices, guest and employee complaints and litigation, fuel and utility costs, labor costs and availability, changes in consumer spending, changes in demographic trends, unfavorable publicity, our ability to open new complexes, acts of God, and governmental regulations.

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(1) EBITDA (Modified), a non-GAAP measure, is defined as net income (loss) before income tax expense (benefit), interest expense (net), depreciation, amortization, loss (gain) on asset disposal and stock-based compensation expense. Adjusted EBITDA, also a non-GAAP measure, is defined as EBITDA (Modified) plus startup costs, Wellspring expense reimbursement, non-cash and non-recurring charges. The company believes that EBITDA (Modified) and Adjusted EBITDA (collectively, "EBITDA - Based Measures") provide useful information to debt holders regarding the Company's operating performance and its capacity to incur and service debt and fund capital expenditures. The Company believes that the EBITDA - Based Measures are used by many investors, analysts and rating agencies as a measure of performance. In addition, Adjusted EBITDA is approximately equal to "Consolidated EBITDA" as defined in our Senior Credit Facility and indentures relating to the Company's senior notes. Neither of the EBITDA - Based Measures is defined by GAAP and neither should be considered in isolation or as an alternative to other financial data prepared in accordance with GAAP or as an indicator of the Company's operating performance. EBITDA (Modified) and Adjusted EBITDA as defined in this release may differ from similarly titled measures presented by other companies.