Dave & Buster’s Entertainment Inc (NASDAQ:PLAY) stock fell 6.02% (As on September 7, 11:23:19 AM UTC-4, Source: Google Finance) after the company posted mixed result for the second quarter of FY 23. Adjusted net income totaled $40.9 million compared with adjusted net income of $41.9 million in the second quarter of 2022. Adjusted EBITDA of $140.3 million in the quarter increased 21.3% from the second quarter of 2022. Including the pro forma contribution of Main Event in the second quarter of 2022, the year-over-year Adjusted EBITDA growth was $11.5 million, or 8.9%. The Company ended the second quarter with $572.8 million of liquidity, which included $82.6 million in cash and $490.2 million available under its $500 million revolving credit facility. The Company had opened two new Dave & Buster’s stores and one new Main Event store in the second quarter. Further, the Company has opportunistically amended its credit agreement, reducing the interest rate margin applicable to term loans and revolving loans outstanding under the credit agreement by 1.25%. The Company ended the quarter with a Net Total Leverage Ratio of 2.1x

PLAY in the second quarter of FY 23 has reported the adjusted earnings per share of 94 cents, which met the analysts’ estimates for the adjusted earnings per share of 94 cents, according to analysts surveyed by Zacks Investment Research. The company had reported the adjusted revenue growth of 15.7 percent to $542.1 million in the second quarter of FY 23, missing the analysts’ estimates for revenue of $558.1 million. Including the pro forma contribution of Main Event in the second quarter of 2022, year-over-year revenue decreased $2.5 million, or 0.5%. Pro forma combined comparable store sales (including Main Event branded stores) decreased 6.3% compared with the same period in 2022 and increased 5.8% compared with the same period in 2019. Store operating income before depreciation and amortization totaled $162.4 million, or 30.0% of revenue, compared with store operating income before depreciation and amortization of $136.7 million, or 29.2% of revenue in the second quarter of 2022.

Additionally, the company has approved an increase to the Company’s existing share repurchase authorization of $100 million, bringing the total remaining authorization to $200 million. The Company repurchased 2.1 million shares at a total cost of $74.5 million in the second quarter, bringing the total repurchases to date in fiscal 2023 to 5.7 million shares totaling $200.0 million and representing 11.8% of outstanding shares.