Dave & Buster’s Entertainment Inc (NASDAQ: PLAY) stock slightly recovers post a deep fall

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Dave & Buster’s Entertainment Inc (NASDAQ: PLAY) stock plunged 15.48% on June 11th, 2020 but recovered over 7.3% on June 12th, 2020 (as of 11:51 am GMT-4 ; Source: Google finance) after the company swung to loss & posted lower than expected results for the first quarter of FY 20. The company has reported a loss of $43.5 million compared to net income of $42.4 million, in the year-ago quarter. During the first quarter, the Company opened one new store in Chattanooga, Tennessee on March 16, 2020, which was however temporarily closed on March 20 through the remainder of the first quarter. Due to the continuing unprecedented degree of uncertainty, the company did not provide fiscal 2020 financial guidance at this time.

Moreover, the company generated approximately $16.8 million in operating cash flow during the first quarter and raised $75 million in gross proceeds through an At-The-Market equity offering of 6.1 million shares of common share at $12.20 per share, ending the period with about $157 million in cash and equivalents and about $750.3 million outstanding under its credit facility. Further, at the end of the first quarter, on May 6, 2020 the Company has completed a $100 million private placement of 9.6 million common shares at a issue price of $10.44 per share, after a $10.6 million Over-Allotment option completed on May 20, 2020 of 1 million shares at a price of $10.44 per share.

PLAY in the first quarter of FY 20 has reported the adjusted loss per share of $1.37, missing the analysts’ estimates for the adjusted loss per share of 77 cents, according to analysts surveyed by FactSet. The company had reported 56 percent fall in the adjusted revenue to $159.8 million in the first quarter of FY 20, missing the analysts’ estimates for revenue of $167.8 million. Comparable store sales has declined by 58.6%, including a comparable store sales decrease of 8.6% in February as the COVID-19 threat began to affect consumer behavior, and a comparable store sales decrease of 82.2% over the remainder of the first quarter. This is due to the temporary closure of the Company’s 137 stores on March 20, 2020 through the remainder of the quarter. Non-comparable store revenue has decreased to $22.6 million compared to $27.3 million. First quarter 2019 comparable store sales have fallen 0.3%. The company has delivered Adjusted EBITDA loss of $(10.8) million, or (6.7)% of revenues, compared to adjusted EBITDA of $98.2 million, or 27.0% or revenues.

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