Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Aug. 04, 2019 | Sep. 04, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Aug. 4, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | PLAY | |
Entity Registrant Name | Dave & Buster’s Entertainment, Inc. | |
Entity Central Index Key | 0001525769 | |
Entity Filer Category | Large Accelerated Filer | |
Current Fiscal Year End Date | --02-02 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes | |
Entity File Number | 001-35664 | |
Entity Incorporation, State or Country Code | DE | |
Entity Common Stock, Shares Outstanding | 30,831,297 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Address, Address Line One | 2481 Mañana Drive | |
Entity Address, City or Town | Dallas | |
Entity Address, State or Province | TX | |
City Area Code | 214 | |
Entity Address, Postal Zip Code | 75220 | |
Local Phone Number | 357-9588 | |
Entity Current Reporting Status | Yes | |
Entity Tax Identification Number | 35-2382255 | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Stock | |
Security Exchange Name | NASDAQ |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Aug. 04, 2019 | Feb. 03, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 23,318 | $ 21,585 |
Inventories | 27,409 | 27,315 |
Prepaid expenses | 16,918 | 20,713 |
Income taxes receivable | 1,569 | 1,880 |
Other current assets | 9,001 | 19,600 |
Total current assets | 78,215 | 91,093 |
Property and equipment (net of $627,036 and $578,178 accumulated depreciation as of August 4, 2019 and February 3, 2019, respectively) | 851,715 | 805,337 |
Operating lease right of use assets | 924,461 | |
Deferred tax assets | 8,529 | 6,736 |
Tradenames | 79,000 | 79,000 |
Goodwill | 272,633 | 272,625 |
Other assets and deferred charges | 19,524 | 18,396 |
Total assets | 2,234,077 | 1,273,187 |
Current liabilities: | ||
Current installments of long-term debt | 15,000 | 15,000 |
Accounts payable | 53,898 | 60,427 |
Accrued liabilities | 183,306 | 157,164 |
Income taxes payable | 4,437 | 11,799 |
Total current liabilities | 256,641 | 244,390 |
Deferred income taxes | 18,822 | 14,634 |
Deferred occupancy costs | 223,678 | |
Operating lease liabilities | 1,125,874 | |
Other liabilities | 31,359 | 24,179 |
Long-term debt, net | 552,079 | 378,469 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock, par value $0.01; authorized: 400,000,000 shares; issued: 43,337,125 shares at August 4, 2019 and 43,177,476 shares at February 3, 2019; outstanding: 32,978,834 shares at August 4, 2019 and 37,522,085 shares at February 3, 2019 | 433 | 432 |
Preferred stock, 50,000,000 authorized; none issued | 0 | 0 |
Paid-in capital | 335,599 | 331,255 |
Treasury stock, 10,358,291 and 5,655,391 shares as of August 4, 2019 and February 3, 2019, respectively | (497,862) | (297,129) |
Accumulated other comprehensive loss | (6,647) | (683) |
Retained earnings | 417,779 | 353,962 |
Total stockholders' equity | 249,302 | 387,837 |
Total liabilities and stockholders' equity | $ 2,234,077 | $ 1,273,187 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Aug. 04, 2019 | Feb. 03, 2019 |
Statement of Financial Position [Abstract] | ||
Property and equipment, accumulated depreciation | $ 627,036 | $ 578,178 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, shares issued | 43,337,125 | 43,177,476 |
Common stock, shares outstanding | 32,978,834 | 37,522,085 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Treasury stock, shares | 10,358,291 | 5,655,391 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2019 | Aug. 05, 2018 | Aug. 04, 2019 | Aug. 05, 2018 | |
Total revenues | $ 344,599 | $ 319,188 | $ 708,181 | $ 651,378 |
Total cost of products | 59,623 | 55,556 | 121,348 | 112,695 |
Operating payroll and benefits | 80,927 | 73,736 | 163,800 | 146,630 |
Other store operating expenses | 104,376 | 94,825 | 210,621 | 188,165 |
General and administrative expenses | 15,991 | 14,764 | 32,837 | 30,418 |
Depreciation and amortization expense | 32,745 | 29,049 | 63,886 | 56,555 |
Pre-opening costs | 4,723 | 5,328 | 11,725 | 12,381 |
Total operating costs | 298,385 | 273,258 | 604,217 | 546,844 |
Operating income | 46,214 | 45,930 | 103,964 | 104,534 |
Interest expense, net | 4,605 | 3,228 | 8,661 | 6,085 |
Income before provision for income taxes | 41,609 | 42,702 | 95,303 | 98,449 |
Provision for income taxes | 9,253 | 8,923 | 20,504 | 22,520 |
Net income | 32,356 | 33,779 | 74,799 | 75,929 |
Unrealized foreign currency translation gain (loss) | 134 | (93) | (57) | (362) |
Change in fair value of derivatives, net of tax | (3,373) | (5,907) | ||
Total other comprehensive loss | (3,239) | (93) | (5,964) | (362) |
Total comprehensive income | $ 29,117 | $ 33,686 | $ 68,835 | $ 75,567 |
Net income per share: | ||||
Basic | $ 0.91 | $ 0.86 | $ 2.07 | $ 1.92 |
Diluted | $ 0.90 | $ 0.84 | $ 2.03 | $ 1.88 |
Weighted average shares used in per share calculations: | ||||
Basic | 35,407,965 | 39,355,105 | 36,117,815 | 39,525,263 |
Diluted | 36,015,710 | 40,280,301 | 36,803,001 | 40,444,201 |
Cash dividends declared per share | $ 0.15 | $ 0.30 | ||
Amusement and Other Revenues [Member] | ||||
Total revenues | $ 206,678 | $ 188,946 | $ 422,039 | $ 381,381 |
Cost of amusement and other | 22,689 | 21,558 | 45,660 | 42,677 |
Food and Beverage [Member] | ||||
Total revenues | 137,921 | 130,242 | 286,142 | 269,997 |
Cost of food and beverage | $ 36,934 | $ 33,998 | $ 75,688 | $ 70,018 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Paid-In Capital [Member] | Treasury Stock at Cost [Member] | Accumulated Other Comprehensive Loss [Member] | Retained Earnings [Member] |
Beginning balance at Feb. 04, 2018 | $ 421,646 | $ 427 | $ 320,488 | $ (147,331) | $ (249) | $ 248,311 |
Beginning balance, shares at Feb. 04, 2018 | 42,660,806 | 2,558,721 | ||||
Net income | 75,929 | 75,929 | ||||
Unrealized foreign currency translation gain (loss) | (362) | (362) | ||||
Share-based compensation | 4,014 | 4,014 | ||||
Issuance of common stock | 1,451 | $ 2 | 1,449 | |||
Issuance of common stock, shares | 277,182 | |||||
Repurchase of common stock | (61,753) | $ (61,753) | ||||
Repurchase of common stock, shares | 1,351,312 | |||||
Ending balance at Aug. 05, 2018 | 440,925 | $ 429 | 325,951 | $ (209,084) | (611) | 324,240 |
Ending balance, shares at Aug. 05, 2018 | 42,937,988 | 3,910,033 | ||||
Beginning balance at May. 06, 2018 | 438,210 | $ 428 | 323,211 | $ (175,372) | (518) | 290,461 |
Beginning balance, shares at May. 06, 2018 | 42,801,006 | 3,181,280 | ||||
Net income | 33,779 | 33,779 | ||||
Unrealized foreign currency translation gain (loss) | (93) | (93) | ||||
Share-based compensation | 1,626 | 1,626 | ||||
Issuance of common stock | 1,115 | $ 1 | 1,114 | |||
Issuance of common stock, shares | 136,982 | |||||
Repurchase of common stock | (33,712) | $ (33,712) | ||||
Repurchase of common stock, shares | 728,753 | |||||
Ending balance at Aug. 05, 2018 | 440,925 | $ 429 | 325,951 | $ (209,084) | (611) | 324,240 |
Ending balance, shares at Aug. 05, 2018 | 42,937,988 | 3,910,033 | ||||
Beginning balance at Feb. 03, 2019 | 387,837 | $ 432 | 331,255 | $ (297,129) | (683) | 353,962 |
Beginning balance, shares at Feb. 03, 2019 | 43,177,476 | 5,655,391 | ||||
Cumulative effect of a change in accounting principle, net of tax | (145) | (145) | ||||
Net income | 74,799 | 74,799 | ||||
Unrealized foreign currency translation gain (loss) | (57) | (57) | ||||
Change in fair value of derivatives, net of tax | (5,907) | (5,907) | ||||
Share-based compensation | 3,732 | 3,732 | ||||
Issuance of common stock | 613 | $ 1 | 612 | |||
Issuance of common stock, shares | 159,649 | |||||
Repurchase of common stock | $ (200,733) | $ (200,733) | ||||
Repurchase of common stock, shares | 4,691,564 | 4,702,900 | ||||
Dividends declared | $ (10,837) | (10,837) | ||||
Ending balance at Aug. 04, 2019 | 249,302 | $ 433 | 335,599 | $ (497,862) | (6,647) | 417,779 |
Ending balance, shares at Aug. 04, 2019 | 43,337,125 | 10,358,291 | ||||
Beginning balance at May. 05, 2019 | 360,125 | $ 433 | 333,515 | $ (361,186) | (3,408) | 390,771 |
Beginning balance, shares at May. 05, 2019 | 43,323,049 | 6,958,291 | ||||
Net income | 32,356 | 32,356 | ||||
Unrealized foreign currency translation gain (loss) | 134 | 134 | ||||
Change in fair value of derivatives, net of tax | (3,373) | (3,373) | ||||
Share-based compensation | 1,907 | 1,907 | ||||
Issuance of common stock | 177 | 177 | ||||
Issuance of common stock, shares | 14,076 | |||||
Repurchase of common stock | $ (136,676) | $ (136,676) | ||||
Repurchase of common stock, shares | 3,400,000 | 3,400,000 | ||||
Dividends declared | $ (5,348) | (5,348) | ||||
Ending balance at Aug. 04, 2019 | $ 249,302 | $ 433 | $ 335,599 | $ (497,862) | $ (6,647) | $ 417,779 |
Ending balance, shares at Aug. 04, 2019 | 43,337,125 | 10,358,291 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended |
Aug. 04, 2019 | Aug. 04, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared per share | $ 0.15 | $ 0.30 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Aug. 04, 2019 | Aug. 05, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 74,799 | $ 75,929 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization expense | 63,886 | 56,555 |
Deferred taxes | 4,659 | 5,508 |
Loss on disposal of fixed assets | 826 | 693 |
Share-based compensation | 3,732 | 4,014 |
Other, net | 376 | 717 |
Changes in assets and liabilities: | ||
Inventories | (94) | 2,567 |
Prepaid expenses | (4,811) | (1,457) |
Income tax receivable | 311 | 3,498 |
Other current assets | (444) | (8,536) |
Other assets and deferred charges | (1,163) | (939) |
Accounts payable | (428) | 2,766 |
Accrued liabilities | 22,057 | 10,566 |
Income taxes payable | (7,362) | 4,156 |
Deferred occupancy costs | 28,403 | |
Other liabilities | 346 | 471 |
Net cash provided by operating activities | 156,690 | 184,911 |
Cash flows from investing activities: | ||
Capital expenditures | (117,875) | (116,624) |
Proceeds from sales of property and equipment | 375 | 118 |
Net cash used in investing activities | (117,500) | (116,506) |
Cash flows from financing activities: | ||
Proceeds from debt | 233,000 | 117,000 |
Payments of debt | (59,500) | (121,500) |
Proceeds from the exercise of stock options | 613 | 1,451 |
Repurchase of common stock under share repurchase program | (200,147) | (61,080) |
Dividends paid | (10,837) | |
Repurchases of common stock to satisfy employee withholding tax obligations | (586) | (673) |
Net cash used in financing activities | (37,457) | (64,802) |
Increase in cash and cash equivalents | 1,733 | 3,603 |
Beginning cash and cash equivalents | 21,585 | 18,795 |
Ending cash and cash equivalents | 23,318 | 22,398 |
Supplemental disclosures of cash flow information: | ||
Decrease in fixed asset accounts payable | (6,101) | (8,830) |
Cash paid for income taxes, net | 22,850 | 9,338 |
Cash paid for interest, net | $ 8,050 | $ 5,714 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Aug. 04, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1: Summary of Significant Accounting Policies Basis of presentation The accompanying unaudited consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Company’s financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States for interim financial information as prescribed by the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all the information and notes required by GAAP for complete financial statements. In the opinion of management, these financial statements contain all adjustments, consisting of normal recurring accruals, necessary to present fairly the financial position, results of operations and cash flows for the periods indicated. The preparation of consolidated financial statements in conformity with GAAP requires us to make certain estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Operating results for the twenty-six 10-K We operate on a 52 or 53-week fiscal year that ends on the Sunday after the Saturday closest to January 31. Each quarterly period reported has 13 weeks. Fiscal 2019 and 2018, which end on February 2, 2020 and February 3, 2019, contain 52 weeks. Cash and cash equivalents Fair value of financial instruments The carrying amounts of cash and cash equivalents, accounts and notes receivable, accounts payable, and other current liabilities approximate fair value because of their short-term nature. We believe that the carrying amount of our credit facility approximates its fair value because the interest rates are adjusted regularly based on current market conditions. The fair value of the Company’s credit facility was determined to be a Level Two instrument as defined by GAAP. The fair value of the Company’s interest rate swap is determined based upon Level Two inputs which includes valuation models as reported by our counterparties. These valuation models are based on the present value of expected cash flows using forward rate curves. Non-financial twenty-six no Interest rate swaps one-month notional amount of the swap agreements total $350,000 and the fixed rate of interest for all agreements is 2.47% plus the applicable spread. The agreements became effective on February 28, 2019 and mature on August 17, 2022, which is the maturity date of our credit facility. The Company has designated its interest rate swap agreements as a cash flow hedge and accounts for the underlying activity in accordance with hedge accounting. To the extent that the swaps are effective in offsetting the variability of the hedged cash flows, changes in the fair value of the derivatives are not included in earnings but are included in other comprehensive loss. These changes in fair value are subsequently reclassified into net earnings as a component of interest expense as the hedged interest payments are made on our variable rate debt. Cash flows related to the interest rate swaps are included as component of interest expense and in operating activities. Any portion of the fair value of the swaps determined to be ineffective will be recognized currently in earnings. The following derivative instruments were outstanding as of the end of the period: Fair Value Balance Sheet Location August 4, 2019 Derivatives designated as hedging instruments: Interest rate swaps Accrued liabilities $ (1,977 ) Interest rate swaps Other liabilities (6,151 ) Total derivatives $ (8,128 ) The following table summarizes the activity in accumulated other comprehensive loss related to our interest rate swap derivative instruments: Thirteen Twenty-six Gain (loss) recognized in accumulated other comprehensive loss $ (4,668 ) $ (8,140 ) Loss reclassified from accumulated other comprehensive loss into net $ 27 $ 12 Income tax (expense) benefit of interest rate swaps on accumulated $ 1,268 $ 2,221 (1) Amounts reclassified into net earnings included in “Interest expense, net” in the Consolidated Statements of Comprehensive Income. Revenue recognition twenty-six In jurisdictions where we do not have a legal obligation to remit unredeemed gift card balances to a legal authority, we recognize revenue on unredeemed gift cards in proportion to the pattern of redemption by the customers. During the thirteen and twenty-six weeks ended August 4, 2019, we recognized revenue of approximately $200 and $1,300, respectively, related to the amount in deferred gift card revenue as of the end of fiscal 2018, of which approximately $140 and $430 was gift card breakage revenue. Stockholders’ equity The share repurchase program may be modified, suspended or discontinued at any time. share repurchase authorization to $ . The share repurchase authorization expires at the end of fiscal 2020. During the thirteen and twenty-six weeks ended August 4, 2019, the Company purchased and shares of common stock at an average cost of $ and $ per share, respectively. Since the inception of the repurchase program, the Company has purchased shares of common stock at an average cost of $ per share. As of August 4, 2019, we have approximately $ of share repurchase authorization remaining under the current plan. In our consolidated financial statements, the Company treats shares withheld for tax purposes on behalf of our employees in connection with the vesting of performance restricted stock units as common stock repurchases because they reduce the number of shares that would have been issued upon vesting. These withheld shares of common stock are not considered common stock repurchases under our authorized common stock repurchase plan. During the twenty-six 586 Recently adopted accounting guidance 2016-02, right-of-use Upon adoption of ASU 2016-02, non-lease Recent accounting pronouncements 2017-04, In August 2018, the FASB issued ASU 2018-13, |
Accrued Liabilities
Accrued Liabilities | 6 Months Ended |
Aug. 04, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Accrued Liabilities | Note 2: Accrued Liabilities Accrued liabilities consist of the following as of the end of each period: August 4, 2019 February 3, 2019 Current portion of operating lease liabilities, net (refer to Note 4) $ 31,754 $ — Current portion of deferred occupancy costs — 15,737 Deferred amusement revenue 48,939 44,232 Compensation and benefits 24,555 24,280 Amusement redemption liability 20,717 19,911 Property taxes 9,089 7,278 Deferred gift card revenue 8,195 9,450 Current portion of long-term insurance 5,900 5,900 Sales and use taxes 4,903 5,226 Customer deposits 4,373 3,731 Utilities 4,247 4,032 Inventory liabilities 2,480 2,876 Variable rent liabilities 2,310 2,245 Current portion of derivatives 1,977 — Other (refer to Note 5) 13,867 12,266 Total accrued liabilities $ 183,306 $ 157,164 |
Debt
Debt | 6 Months Ended |
Aug. 04, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Note 3: Debt Long-term debt consists of the following as of: August 4, 2019 February 3, 2019 Credit facility - term $ 273,750 $ 281,250 Credit facility - revolver 294,000 113,000 Total debt outstanding 567,750 394,250 Less: Current installments - term (15,000 ) (15,000 ) Debt issuance costs - term (671 ) (781 ) Long-term debt, net $ 552,079 $ 378,469 On August 17, 2017, we entered into a senior secured credit facility that provides a $300,000 term loan facility and a $500,000 revolving credit facility with a maturity date of August 17, 2022. The $500,000 revolving credit facility includes a $35,000 letter of credit sub-facility sub-facility. quarter The interest rates per annum applicable to loans, other than swing loans, under our existing credit facility are currently set based on a defined LIBOR rate plus an applicable margin. Swing loans bear interest at a base rate plus an applicable margin. The loans bear interest subject to a pricing grid based on a total leverage ratio, at one-month one-month Our credit facility contains restrictive covenants that, among other things, place certain limitations on our ability to: incur additional indebtedness, make loans or advances to subsidiaries and other entities, pay dividends, acquire other businesses or sell assets. In addition, our credit facility requires us to maintain certain financial ratio covenants. As of August 4, 2019, we were in compliance with our restrictive and financial ratio covenants of our credit facility. Interest expense, net Thirteen Weeks Ended August 4, 2019 Thirteen Weeks Ended August 5, 2018 Interest expense on credit facilities $ 4,735 $ 3,255 Amortization of issuance cost 198 198 Interest income (25 ) (28 ) Capitalized interest (303 ) (201 ) Change in fair value of interest rate cap — 4 Total interest expense, net $ 4,605 $ 3,228 Twenty-six Ended Twenty-six Ended Interest expense on credit facilities $ 8,915 $ 6,278 Amortization of issuance cost 396 396 Interest income (51 ) (56 ) Capitalized interest (599 ) (527 ) Change in fair value of interest rate cap — (6 ) Total interest expense, net $ 8,661 $ 6,085 |
Leases
Leases | 6 Months Ended |
Aug. 04, 2019 | |
Leases | |
Leases | Note 4: Leases We currently lease the building or site for our stores, corporate office and warehouse space under facility operating leases. These leases typically have initial terms ranging from ten to twenty years and include one or more options to renew. When determining the lease term, we include option periods for which renewal is reasonably certain. Most of the leases require us to pay property taxes, insurance and maintenance of the leased assets. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Operating leases also includes certain equipment leases that have a term in excess of one year. Certain facility leases also have provisions for additional contingent rentals based on revenues. Contingent rent and other variable rent are included as variable lease costs in the table below. Lease expense consisted of the following: Thirteen Weeks Ended August 4, 2019 Twenty-six August 4, 2019 Operating $ 30,448 $ 60,240 Variable 774 1,992 Short-term 116 217 Total $ 31,338 $ 62,449 Store lease expense is included in “Other store operating expenses” or “Pre-opening Operating leases are included within the “Operating lease right of use assets”, “Accrued liabilities” and “Operating lease liabilities” in the Consolidated Balance Sheets. Operating lease ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term and include both facility and equipment leases. The operating lease ROU asset is reduced by leasehold improvement incentives as the incentives are earned. As of August 4, 2019, the balance of leasehold improvement incentive receivables was $17,482 and is reflected as a reduction of the current portion of operating lease liabilities. The Company uses its incremental borrowing rate at commencement date in determining the present value of lease payments. The Company uses judgment in determining its incremental borrowing rate, which includes selecting a yield curve based on a hypothetical credit rating. Other information related to leases is as follows: Twenty-six Ended August 4, 2019 Cash paid for amounts included in the measurement of lease liabities Operating cash flows from operating leases $ 60,148 ROU assets obtained in exchange for new operating lease liabilities $ 94,059 Weighted-average remaining lease term - operating leases (in years) 15.8 Weighted-average discount rate - operating leases 6.0 % The maturities of our operating lease liabilities are as follows as of August 4, 2019: Remainder of 2019 $ 54,285 2020 127,561 2021 122,026 2022 114,033 2023 110,512 Thereafter 1,356,431 Total $ 1,884,848 Less: Interest 709,738 Total discounted operating lease liabilities $ 1,175,110 Operating lease payments in the table above includes minimum lease payments for five future sites for which the lease has commenced, and the stores are expected to open in fiscal 2019. Operating lease payments exclude minimum lease payments for eighteen executed facility leases that we have not yet taken possession. At February 3, 2019, aggregate minimum annual lease payments under facility and equipment operating leases were as follows: 2019 $ 122,501 2020 117,908 2021 111,642 2022 104,195 2023 100,779 Thereafter 1,229,803 Total $ 1,786,828 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Aug. 04, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 5: Commitments and Contingencies We are subject to certain legal proceedings and claims that arise in the ordinary course of our business, including claims alleging violations of federal and state law regarding workplace and employment matters, discrimination, slip-and-fall and other guest-related incidents, and similar matters. In the opinion of management, based upon consultation with legal counsel, the amount of ultimate liability with respect to such legal proceedings and claims will not materially affect the consolidated results of our operations or our financial condition. On June 30, 2017, we agreed to settle litigation related to alleged violations of the Employee Retirement Income Security Act. The settlement agreement was preliminarily approved by the court on December 7, 2018 with final approval on July 19, 2019. To cover the estimated net costs of settlement, including estimated payment to any opt-in members and class attorneys, as well as related settlement administration costs, we recorded a net charge of $2,550 (representing $7,500 of gross settlement costs less $4,950 of insurance recoveries) during fiscal 2017. Subsequent to August 4, 2019, all funds required to be paid under the final settlement and release agreement were remitted to a settlement fund as directed by the court. The Company is currently a defendant in several lawsuits filed in courts in California alleging violations of California Business and Professions Code, industry wage orders, wage-and-hour laws and rules and regulations pertaining primarily to the failure to pay proper regular and overtime wages, failure to pay for missed meals and rest periods, pay stub violations, failure to pay all wages due at the time of termination and other employment related claims (the “California Cases”). Some of the California Cases purport or may be determined to be class actions or Private Attorney General Act representative actions and seek substantial damages and penalties. With respect to these California Cases, where the Company has determined that a loss is reasonably possible but not probable, the Company is unable to estimate the amount or range of the reasonably possible loss due to the inherent difficulty of predicting the outcome of uncertainties regarding legal proceedings. The Company’s assessments are based on estimates and assumptions that have been deemed reasonable by management, but that may prove to be incomplete or inaccurate, and unanticipated events and circumstances may occur that might cause the Company to change those estimates and assumptions. Management’s assessment of these California Cases could change because of future determinations or the discovery of facts that are not presently known. Accordingly, the ultimate costs of resolving these cases may be substantially higher or lower than estimated. The Company is aggressively defending these cases. |
Earnings per share
Earnings per share | 6 Months Ended |
Aug. 04, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per share | Note 6: Earnings per share Potential dilutive shares consist of the incremental common shares issuable upon the exercise of outstanding stock options (both vested and unvested), unvested time-based restricted stock units (RSU’s) and unvested performance RSU’s to the extent performance measures were attained as of the end of the reporting period, calculated using the treasury-stock method. Potential dilutive shares are excluded from the computation of earnings per share (“EPS”) if their effect is anti-dilutive. Stock options for which the exercise price exceeds the average market price over the period are anti-dilutive and, accordingly, are excluded from the calculation. The weighted average anti-dilutive options excluded from the calculation of common equivalent shares were 160,967 and 90,143 in the thirteen weeks ended August 4, 2019 and August 5, 2018, respectively, and 97,502 and 99,331 in the twenty-six The following table sets forth the computation of EPS, basic and diluted for the periods indicated: Thirteen Weeks Ended August 4, 2019 Thirteen Weeks Ended August 5, 2018 Numerator: Net income $ 32,356 $ 33,779 Denominator: Weighted average number of common shares outstanding (basic) 35,407,965 39,355,105 Weighted average dilutive impact of equity-based awards 607,745 925,196 Weighted average number of common and common equivalent shares outstanding (diluted) 36,015,710 40,280,301 Net income per share: Basic $ 0.91 $ 0.86 Diluted $ 0.90 $ 0.84 Twenty- s Ended August 4, 2019 Twenty-six Weeks Ended August 5, 2018 Numerator: Net income $ 74,799 $ 75,929 Denominator: Weighted average number of common shares outstanding (basic) 36,117,815 39,525,263 Weighted average dilutive impact of equity-based awards 685,186 918,938 Weighted average number of common and common equivalent shares outstanding (diluted) 36,803,001 40,444,201 Net income per share: Basic $ 2.07 $ 1.92 Diluted $ 2.03 $ 1.88 |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Aug. 04, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Note 7: Share-Based Compensation Compensation expense related to stock options, time-based and performance-based RSU’s and restricted stock are included in general and administrative expenses and were as follows: Thirteen Weeks Ended Twenty-six August 4, 2019 August 5, 2018 August 4, 2019 August 5, 2018 Stock options $ 804 660 $ 1,563 $ 2,018 RSU’s and restricted stock 1,103 966 2,169 1,996 Total share-based compensation expense $ 1,907 $ 1,626 $ 3,732 $ 4,014 Transactions related to stock option awards during the twenty-six 2014 Stock Incentive Plan 2010 Stock Incentive Plan Number Weighted Number Weighted Outstanding at February 3, 2019 1,134,218 $ 34.22 359,984 $ 6.48 Granted 222,266 52.04 — — Exercised (8,390 ) 37.86 (52,135 ) 5.67 Forfeited (2,882 ) 49.62 — — Outstanding at August 4, 2019 1,345,212 $ 37.11 307,849 $ 6.62 Exercisable at August 4, 2019 920,104 $ 31.35 307,849 $ 6.62 The total intrinsic value of options exercised during the twenty-six Transactions related to time-based and performance-based twenty-six Shares Weighted Outstanding at February 3, 2019 220,830 $ 47.79 Granted 72,768 52.09 Change in units based on performance 27,372 39.10 Vested (99,124 ) 39.64 Forfeited (1,562 ) 49.34 Outstanding at August 4, 2019 220,284 $ 51.79 Fair value of our time-based and performance-based RSU’s and restricted stock is based on our closing stock price on the date of grant. The unrecognized expense related to our time-based and performance-based RSU’s and unvested restricted stock was $6,911 as of August 4, 2019 and will be expensed over a weighted average period of 2.2 years. During the twenty-six Forfeitures are estimated at the time of grant and adjusted if necessary, in subsequent periods, if actual forfeitures differ from those estimates. The forfeiture rate is based on historical experience. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Aug. 04, 2019 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompanying unaudited consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Company’s financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States for interim financial information as prescribed by the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all the information and notes required by GAAP for complete financial statements. In the opinion of management, these financial statements contain all adjustments, consisting of normal recurring accruals, necessary to present fairly the financial position, results of operations and cash flows for the periods indicated. The preparation of consolidated financial statements in conformity with GAAP requires us to make certain estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Operating results for the twenty-six 10-K We operate on a 52 or 53-week fiscal year that ends on the Sunday after the Saturday closest to January 31. Each quarterly period reported has 13 weeks. Fiscal 2019 and 2018, which end on February 2, 2020 and February 3, 2019, contain 52 weeks. |
Cash and cash equivalents | Cash and cash equivalents |
Fair value of financial instruments | Fair value of financial instruments The carrying amounts of cash and cash equivalents, accounts and notes receivable, accounts payable, and other current liabilities approximate fair value because of their short-term nature. We believe that the carrying amount of our credit facility approximates its fair value because the interest rates are adjusted regularly based on current market conditions. The fair value of the Company’s credit facility was determined to be a Level Two instrument as defined by GAAP. The fair value of the Company’s interest rate swap is determined based upon Level Two inputs which includes valuation models as reported by our counterparties. These valuation models are based on the present value of expected cash flows using forward rate curves. Non-financial twenty-six no Interest rate swaps one-month |
Interest rate swap | notional amount of the swap agreements total $350,000 and the fixed rate of interest for all agreements is 2.47% plus the applicable spread. The agreements became effective on February 28, 2019 and mature on August 17, 2022, which is the maturity date of our credit facility. The Company has designated its interest rate swap agreements as a cash flow hedge and accounts for the underlying activity in accordance with hedge accounting. To the extent that the swaps are effective in offsetting the variability of the hedged cash flows, changes in the fair value of the derivatives are not included in earnings but are included in other comprehensive loss. These changes in fair value are subsequently reclassified into net earnings as a component of interest expense as the hedged interest payments are made on our variable rate debt. Cash flows related to the interest rate swaps are included as component of interest expense and in operating activities. Any portion of the fair value of the swaps determined to be ineffective will be recognized currently in earnings. The following derivative instruments were outstanding as of the end of the period: Fair Value Balance Sheet Location August 4, 2019 Derivatives designated as hedging instruments: Interest rate swaps Accrued liabilities $ (1,977 ) Interest rate swaps Other liabilities (6,151 ) Total derivatives $ (8,128 ) The following table summarizes the activity in accumulated other comprehensive loss related to our interest rate swap derivative instruments: Thirteen Twenty-six Gain (loss) recognized in accumulated other comprehensive loss $ (4,668 ) $ (8,140 ) Loss reclassified from accumulated other comprehensive loss into net $ 27 $ 12 Income tax (expense) benefit of interest rate swaps on accumulated $ 1,268 $ 2,221 (1) Amounts reclassified into net earnings included in “Interest expense, net” in the Consolidated Statements of Comprehensive Income. |
Revenue recognition | Revenue recognition twenty-six In jurisdictions where we do not have a legal obligation to remit unredeemed gift card balances to a legal authority, we recognize revenue on unredeemed gift cards in proportion to the pattern of redemption by the customers. During the thirteen and twenty-six weeks ended August 4, 2019, we recognized revenue of approximately $200 and $1,300, respectively, related to the amount in deferred gift card revenue as of the end of fiscal 2018, of which approximately $140 and $430 was gift card breakage revenue. |
Stockholders' equity | Stockholders’ equity The share repurchase program may be modified, suspended or discontinued at any time. share repurchase authorization to $ . The share repurchase authorization expires at the end of fiscal 2020. During the thirteen and twenty-six weeks ended August 4, 2019, the Company purchased and shares of common stock at an average cost of $ and $ per share, respectively. Since the inception of the repurchase program, the Company has purchased shares of common stock at an average cost of $ per share. As of August 4, 2019, we have approximately $ of share repurchase authorization remaining under the current plan. In our consolidated financial statements, the Company treats shares withheld for tax purposes on behalf of our employees in connection with the vesting of performance restricted stock units as common stock repurchases because they reduce the number of shares that would have been issued upon vesting. These withheld shares of common stock are not considered common stock repurchases under our authorized common stock repurchase plan. During the twenty-six 586 |
Recently adopted accounting guidance | Recently adopted accounting guidance 2016-02, right-of-use Upon adoption of ASU 2016-02, non-lease |
Recent accounting pronouncements | Recent accounting pronouncements 2017-04, In August 2018, the FASB issued ASU 2018-13, |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Aug. 04, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The following derivative instruments were outstanding as of the end of the period: Fair Value Balance Sheet Location August 4, 2019 Derivatives designated as hedging instruments: Interest rate swaps Accrued liabilities $ (1,977 ) Interest rate swaps Other liabilities (6,151 ) Total derivatives $ (8,128 ) |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block] | The following table summarizes the activity in accumulated other comprehensive loss related to our interest rate swap derivative instruments: Thirteen Twenty-six Gain (loss) recognized in accumulated other comprehensive loss $ (4,668 ) $ (8,140 ) Loss reclassified from accumulated other comprehensive loss into net $ 27 $ 12 Income tax (expense) benefit of interest rate swaps on accumulated $ 1,268 $ 2,221 (1) Amounts reclassified into net earnings included in “Interest expense, net” in the Consolidated Statements of Comprehensive Income. |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 6 Months Ended |
Aug. 04, 2019 | |
Text Block [Abstract] | |
Accrued Liabilities | Accrued liabilities consist of the following as of the end of each period: August 4, 2019 February 3, 2019 Current portion of operating lease liabilities, net (refer to Note 4) $ 31,754 $ — Current portion of deferred occupancy costs — 15,737 Deferred amusement revenue 48,939 44,232 Compensation and benefits 24,555 24,280 Amusement redemption liability 20,717 19,911 Property taxes 9,089 7,278 Deferred gift card revenue 8,195 9,450 Current portion of long-term insurance 5,900 5,900 Sales and use taxes 4,903 5,226 Customer deposits 4,373 3,731 Utilities 4,247 4,032 Inventory liabilities 2,480 2,876 Variable rent liabilities 2,310 2,245 Current portion of derivatives 1,977 — Other (refer to Note 5) 13,867 12,266 Total accrued liabilities $ 183,306 $ 157,164 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Aug. 04, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-term debt consists of the following as of: August 4, 2019 February 3, 2019 Credit facility - term $ 273,750 $ 281,250 Credit facility - revolver 294,000 113,000 Total debt outstanding 567,750 394,250 Less: Current installments - term (15,000 ) (15,000 ) Debt issuance costs - term (671 ) (781 ) Long-term debt, net $ 552,079 $ 378,469 |
Recorded Interest Expense, Net | Interest expense, net Thirteen Weeks Ended August 4, 2019 Thirteen Weeks Ended August 5, 2018 Interest expense on credit facilities $ 4,735 $ 3,255 Amortization of issuance cost 198 198 Interest income (25 ) (28 ) Capitalized interest (303 ) (201 ) Change in fair value of interest rate cap — 4 Total interest expense, net $ 4,605 $ 3,228 Twenty-six Ended Twenty-six Ended Interest expense on credit facilities $ 8,915 $ 6,278 Amortization of issuance cost 396 396 Interest income (51 ) (56 ) Capitalized interest (599 ) (527 ) Change in fair value of interest rate cap — (6 ) Total interest expense, net $ 8,661 $ 6,085 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Aug. 04, 2019 | |
Lessee, Operating Lease, Disclosure | Lease expense consisted of the following: Thirteen Weeks Ended August 4, 2019 Twenty-six August 4, 2019 Operating $ 30,448 $ 60,240 Variable 774 1,992 Short-term 116 217 Total $ 31,338 $ 62,449 |
Disclosure of Other information related to leases | Other information related to leases is as follows: Twenty-six Ended August 4, 2019 Cash paid for amounts included in the measurement of lease liabities Operating cash flows from operating leases $ 60,148 ROU assets obtained in exchange for new operating lease liabilities $ 94,059 Weighted-average remaining lease term - operating leases (in years) 15.8 Weighted-average discount rate - operating leases 6.0 % |
Lessee, Operating Lease, Liability, Maturity | The maturities of our operating lease liabilities are as follows as of August 4, 2019: Remainder of 2019 $ 54,285 2020 127,561 2021 122,026 2022 114,033 2023 110,512 Thereafter 1,356,431 Total $ 1,884,848 Less: Interest 709,738 Total discounted operating lease liabilities $ 1,175,110 |
Schedule of Future Minimum Rental Payments for Operating Leases | At February 3, 2019, aggregate minimum annual lease payments under facility and equipment operating leases were as follows: 2019 $ 122,501 2020 117,908 2021 111,642 2022 104,195 2023 100,779 Thereafter 1,229,803 Total $ 1,786,828 |
Earnings per share (Tables)
Earnings per share (Tables) | 6 Months Ended |
Aug. 04, 2019 | |
Earnings Per Share [Abstract] | |
Summary of Calculation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of EPS, basic and diluted for the periods indicated: Thirteen Weeks Ended August 4, 2019 Thirteen Weeks Ended August 5, 2018 Numerator: Net income $ 32,356 $ 33,779 Denominator: Weighted average number of common shares outstanding (basic) 35,407,965 39,355,105 Weighted average dilutive impact of equity-based awards 607,745 925,196 Weighted average number of common and common equivalent shares outstanding (diluted) 36,015,710 40,280,301 Net income per share: Basic $ 0.91 $ 0.86 Diluted $ 0.90 $ 0.84 Twenty- s Ended August 4, 2019 Twenty-six Weeks Ended August 5, 2018 Numerator: Net income $ 74,799 $ 75,929 Denominator: Weighted average number of common shares outstanding (basic) 36,117,815 39,525,263 Weighted average dilutive impact of equity-based awards 685,186 918,938 Weighted average number of common and common equivalent shares outstanding (diluted) 36,803,001 40,444,201 Net income per share: Basic $ 2.07 $ 1.92 Diluted $ 2.03 $ 1.88 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Aug. 04, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block] | Compensation expense related to stock options, time-based and performance-based RSU’s and restricted stock are included in general and administrative expenses and were as follows: Thirteen Weeks Ended Twenty-six August 4, 2019 August 5, 2018 August 4, 2019 August 5, 2018 Stock options $ 804 660 $ 1,563 $ 2,018 RSU’s and restricted stock 1,103 966 2,169 1,996 Total share-based compensation expense $ 1,907 $ 1,626 $ 3,732 $ 4,014 |
Share-based Compensation, Stock Options, Activity [Table Text Block] | Transactions related to stock option awards during the twenty-six 2014 Stock Incentive Plan 2010 Stock Incentive Plan Number Weighted Number Weighted Outstanding at February 3, 2019 1,134,218 $ 34.22 359,984 $ 6.48 Granted 222,266 52.04 — — Exercised (8,390 ) 37.86 (52,135 ) 5.67 Forfeited (2,882 ) 49.62 — — Outstanding at August 4, 2019 1,345,212 $ 37.11 307,849 $ 6.62 Exercisable at August 4, 2019 920,104 $ 31.35 307,849 $ 6.62 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | Transactions related to time-based and performance-based twenty-six Shares Weighted Outstanding at February 3, 2019 220,830 $ 47.79 Granted 72,768 52.09 Change in units based on performance 27,372 39.10 Vested (99,124 ) 39.64 Forfeited (1,562 ) 49.34 Outstanding at August 4, 2019 220,284 $ 51.79 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | 32 Months Ended | ||||
Aug. 04, 2019USD ($)StatesStoresProvince$ / sharesshares | Aug. 04, 2019USD ($)StatesStoresSegmentProvince$ / sharesshares | Aug. 05, 2018USD ($) | Aug. 04, 2019USD ($)StatesStoresProvince$ / sharesshares | Jul. 12, 2019USD ($) | Feb. 04, 2019USD ($) | Feb. 03, 2019USD ($) | |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||
Number of stores | Stores | 130 | 130 | 130 | ||||
Number of states store operates | States | 39 | 39 | 39 | ||||
Number of operating segment | Segment | 1 | ||||||
Number of reportable segment | Segment | 1 | ||||||
Book overdrafts reclassified to accounts payable | $ 12,757,000 | $ 12,757,000 | $ 12,757,000 | $ 12,782,000 | |||
Long lived asset impairment loss | $ 0 | ||||||
Repurchase of common stock, shares | shares | 3,400,000 | 4,691,564 | 10,975,355 | ||||
Share repurchase program authorized amount | $ 800,000,000 | ||||||
Repurchase of common stock, price per shares | $ / shares | $ 40.20 | $ 42.66 | $ 48.29 | ||||
Share repurchase program remaining authorized amount | $ 269,990,000 | $ 269,990,000 | $ 269,990,000 | ||||
Operating lease liability | 1,175,110,000 | 1,175,110,000 | 1,175,110,000 | ||||
Right of use assets | 924,461,000 | 924,461,000 | 924,461,000 | ||||
Notional amount of the swap agreement | $ 350,000,000 | $ 350,000,000 | $ 350,000,000 | ||||
Derivative, Average Fixed Interest Rate | 2.47% | 2.47% | 2.47% | ||||
Shares Paid for Tax Withholding for Share Based Compensation | shares | 11,336 | ||||||
Payments Related to Tax Withholding for Share-based Compensation | $ 586,000 | $ 673,000 | |||||
Dave And Busters Holdings Inc [Member] | |||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||
Percentage of outstanding common stock owned | 100.00% | 100.00% | 100.00% | ||||
Canada [Member] | |||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||
Number of canadian province | Province | 1 | 1 | 1 | ||||
Amusement Revenue [Member] | |||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||
Deferred revenue recognized | $ 5,000,000 | $ 17,000,000 | |||||
Gift Card Revenue [Member] | |||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||
Gift card breakage revenue | 140,000 | 430,000 | |||||
Deferred revenue recognized | $ 200,000 | $ 1,300,000 | |||||
Recently Adopted Accounting Standard 2016-02 [Member] | |||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||||
Operating lease liability | $ 1,116,252,000 | ||||||
Right of use assets | 877,714,000 | ||||||
Cumulative effect adjustment of retained earnings | 145,000 | ||||||
Favorable Lease Asset | 878,000 | ||||||
Deferred Rent Creditand Unfavorable Lease Liability | $ 239,416,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Derivative Instruments Outstanding (Details) $ in Thousands | Aug. 04, 2019USD ($) |
Derivatives designated as hedging instruments: | |
Current portion of derivatives | $ (1,977) |
Non-current portion of derivatives | (6,151) |
Total derivatives | $ (8,128) |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Accumulated Other Comprehensive Loss (Details) - Interest Rate Swap [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Aug. 04, 2019 | Aug. 04, 2019 | ||
Gain (loss) recognized in accumulated other comprehensive loss | $ (4,668) | $ (8,140) | |
Income tax (expense) benefit of interest rate swaps on accumulated other comprehensive loss | 1,268 | 2,221 | |
Interest Expense [Member] | |||
Loss reclassified from accumulated other comprehensive loss into net earnings | [1] | $ 27 | $ 12 |
[1] | Amounts reclassified into net earnings included in “Interest expense, net” in the Consolidated Statements of Comprehensive Income. |
Accrued Liabilities - Accrued L
Accrued Liabilities - Accrued Liabilities (Detail) - USD ($) $ in Thousands | Aug. 04, 2019 | Feb. 03, 2019 |
Accrued Liabilities, Current [Abstract] | ||
Current portion of operating lease liabilities, net (refer to Note 4) | $ 31,754 | |
Current portion of deferred occupancy costs | $ 15,737 | |
Deferred amusement revenue | 48,939 | 44,232 |
Compensation and benefits | 24,555 | 24,280 |
Amusement redemption liability | 20,717 | 19,911 |
Property taxes | 9,089 | 7,278 |
Deferred gift card revenue | 8,195 | 9,450 |
Current portion of long-term insurance | 5,900 | 5,900 |
Sales and use taxes | 4,903 | 5,226 |
Customer deposits | 4,373 | 3,731 |
Utilities | 4,247 | 4,032 |
Inventory liabilities | 2,480 | 2,876 |
Variable rent liabilities | 2,310 | 2,245 |
Current portion of derivatives | 1,977 | |
Other (refer to Note 5) | 13,867 | 12,266 |
Total accrued liabilities | $ 183,306 | $ 157,164 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | Aug. 17, 2017 | Aug. 04, 2019 |
Debt Instrument [Line Items] | ||
Debt instrument, description of variable rate basis | LIBOR plus 1.25% | |
Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 1.25% | |
Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 2.00% | |
Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Senior secured credit facility | $ 300,000,000 | |
Revolving credit facility, maximum borrowing capacity | $ 500,000,000 | |
Maturity date | Aug. 17, 2022 | |
Revolving credit facility, letter of credit sub-facility maximum borrowing capacity | $ 35,000,000 | |
Revolving credit facility, swing loan sub-facility maximum borrowing capacity | 15,000,000 | |
Term loan repayment of principal | $ 3,750,000 | |
Frequency of periodic payment | quarter | |
Letter of credit facility outstanding | $ 8,147,000 | |
Borrowing available | $ 197,853,000 | |
Weighted average effective interest | 4.11% | |
Debt instrument, description of variable rate basis | The loans bear interest subject to a pricing grid based on a total leverage ratio, at one-month LIBOR plus a spread ranging from 1.25% to 2.00% for the term loans and the revolving loans. | |
Debt Instrument, covenant compliance | Our credit facility contains restrictive covenants that, among other things, place certain limitations on our ability to: incur additional indebtedness, make loans or advances to subsidiaries and other entities, pay dividends, acquire other businesses or sell assets. In addition, our credit facility requires us to maintain certain financial ratio covenants. As of August 4, 2019, we were in compliance with our restrictive and financial ratio covenants of our credit facility. |
Debt - Long-Term Debt (Detail)
Debt - Long-Term Debt (Detail) - USD ($) $ in Thousands | Aug. 04, 2019 | Feb. 03, 2019 |
Debt Instrument [Line Items] | ||
Total debt outstanding | $ 567,750 | $ 394,250 |
Less current installments—term | (15,000) | (15,000) |
Long-term debt, net | 552,079 | 378,469 |
Credit Facility—term [Member] | ||
Debt Instrument [Line Items] | ||
Total debt outstanding | 273,750 | 281,250 |
Less current installments—term | (15,000) | (15,000) |
Less debt issuance costs—term | (671) | (781) |
Credit Facility—revolver [Member] | ||
Debt Instrument [Line Items] | ||
Total debt outstanding | $ 294,000 | $ 113,000 |
Debt - Recorded Interest Expens
Debt - Recorded Interest Expense, Net (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2019 | Aug. 05, 2018 | Aug. 04, 2019 | Aug. 05, 2018 | |
Debt Disclosure [Abstract] | ||||
Interest expense on credit facilities | $ 4,735 | $ 3,255 | $ 8,915 | $ 6,278 |
Amortization of issuance cost | 198 | 198 | 396 | 396 |
Interest income | (25) | (28) | (51) | (56) |
Capitalized interest | (303) | (201) | (599) | (527) |
Change in fair value of interest rate cap | 4 | (6) | ||
Total interest expense, net | $ 4,605 | $ 3,228 | $ 8,661 | $ 6,085 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Thousands | 6 Months Ended |
Aug. 04, 2019USD ($) | |
Leases | |
Leasehold Improvement Incentive Receivables | $ 17,482 |
Leases - Lease Expense (Detail)
Leases - Lease Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Aug. 04, 2019 | Aug. 04, 2019 | |
Leases | ||
Operating | $ 30,448 | $ 60,240 |
Variable | 774 | 1,992 |
Short-term | 116 | 217 |
Total | $ 31,338 | $ 62,449 |
Leases - Other Information Rela
Leases - Other Information Related to Leases (Detail) $ in Thousands | 6 Months Ended |
Aug. 04, 2019USD ($) | |
Leases | |
Operating cash flows from operating leases | $ 60,148 |
ROU assets obtained in exchange for new operating lease liabilities | $ 94,059 |
Weighted-average remaining lease term - operating leases (in years) | 15 years 9 months 18 days |
Weighted-average discount rate - operating leases | 6.00% |
Leases - Maturities of Our Oper
Leases - Maturities of Our Operating Lease Liabilities (Detail) $ in Thousands | Aug. 04, 2019USD ($) |
Leases | |
Remainder of 2019 | $ 54,285 |
2020 | 127,561 |
2021 | 122,026 |
2022 | 114,033 |
2023 | 110,512 |
Thereafter | 1,356,431 |
Total | 1,884,848 |
Less: Interest | 709,738 |
Total discounted operating lease liabilities | $ 1,175,110 |
Leases - Minimum Annual Lease P
Leases - Minimum Annual Lease Payments (Detail) $ in Thousands | Feb. 03, 2019USD ($) |
Leases | |
2019 | $ 122,501 |
2020 | 117,908 |
2021 | 111,642 |
2022 | 104,195 |
2023 | 100,779 |
Thereafter | 1,229,803 |
Total | $ 1,786,828 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Thousands | 12 Months Ended |
Feb. 04, 2018USD ($) | |
Other Commitments [Line Items] | |
Litigation charge | $ 2,550 |
Legal gross settlement cost | 7,500 |
Insurance recoveries | $ 4,950 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2019 | Aug. 05, 2018 | Aug. 04, 2019 | Aug. 05, 2018 | |
Earnings Per Share [Abstract] | ||||
Weighted average anti-dilutive options excluded from calculation of common equivalent shares | 160,967 | 90,143 | 97,502 | 99,331 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Calculation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2019 | Aug. 05, 2018 | Aug. 04, 2019 | Aug. 05, 2018 | |
Numerator: | ||||
Net income | $ 32,356 | $ 33,779 | $ 74,799 | $ 75,929 |
Denominator: | ||||
Weighted average number of common shares outstanding (basic) | 35,407,965 | 39,355,105 | 36,117,815 | 39,525,263 |
Weighted average dilutive impact of equity-based awards | 607,745 | 925,196 | 685,186 | 918,938 |
Weighted average number of common and common equivalent shares outstanding (diluted) | 36,015,710 | 40,280,301 | 36,803,001 | 40,444,201 |
Net income per share: | ||||
Basic | $ 0.91 | $ 0.86 | $ 2.07 | $ 1.92 |
Diluted | $ 0.90 | $ 0.84 | $ 2.03 | $ 1.88 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Aug. 04, 2019 | Aug. 05, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Excess income tax benefit related to stock-based compensation plans | $ 884 | $ 1,919 |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total intrinsic value of stock options exercised | 2,505 | |
Unrecognized expense related to stock option plan | $ 3,916 | |
Unrecognized compensation expense, weighted average years | 2 years 6 months | |
Restricted Stock Units (RSU's) and Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation expense, weighted average years | 2 years 2 months 12 days | |
Unrecognized expense related to unvested restricted stock and RSUs | $ 6,911 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Compensation Expenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 04, 2019 | Aug. 05, 2018 | Aug. 04, 2019 | Aug. 05, 2018 | |
Share-based Compensation [Abstract] | ||||
Stock options | $ 804 | $ 660 | $ 1,563 | $ 2,018 |
RSU's and restricted stock | 1,103 | 966 | 2,169 | 1,996 |
Total share-based compensation expense | $ 1,907 | $ 1,626 | $ 3,732 | $ 4,014 |
Share-Based Compensation - Tran
Share-Based Compensation - Transactions Related to Stock Option Awards (Detail) | 6 Months Ended |
Aug. 04, 2019$ / sharesshares | |
2014 Stock Incentive Plan [Member] | |
Number of Options | |
Options outstanding at February 3, 2019 | shares | 1,134,218 |
Granted | shares | 222,266 |
Exercised | shares | (8,390) |
Forfeited | shares | (2,882) |
Options outstanding at Aug 4, 2019 | shares | 1,345,212 |
Options exercisable at Aug 4, 2019 | shares | 920,104 |
Weighted Average Exercise Price | |
Options outstanding at February 3, 2019 | $ / shares | $ 34.22 |
Granted | $ / shares | 52.04 |
Exercised | $ / shares | 37.86 |
Forfeited | $ / shares | 49.62 |
Options outstanding at Aug 4, 2019 | $ / shares | 37.11 |
Options exercisable at Aug 4, 2019 | $ / shares | $ 31.35 |
2010 Stock Incentive Plan [Member] | |
Number of Options | |
Options outstanding at February 3, 2019 | shares | 359,984 |
Exercised | shares | (52,135) |
Options outstanding at Aug 4, 2019 | shares | 307,849 |
Options exercisable at Aug 4, 2019 | shares | 307,849 |
Weighted Average Exercise Price | |
Options outstanding at February 3, 2019 | $ / shares | $ 6.48 |
Exercised | $ / shares | 5.67 |
Options outstanding at Aug 4, 2019 | $ / shares | 6.62 |
Options exercisable at Aug 4, 2019 | $ / shares | $ 6.62 |
Share-Based Compensation - Tr_2
Share-Based Compensation - Transactions Related to Time-based and Performance-based RSU's and Restricted Stock (Detail) - Time-Based and Performance-Based RSU's [Member] | 6 Months Ended |
Aug. 04, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted Stock Awards, February 3, 2019 | shares | 220,830 |
Restricted Stock Awards, Granted | shares | 72,768 |
Restricted Stock Awards, Change in units based on performance | shares | 27,372 |
Restricted Stock Awards, Vested | shares | (99,124) |
Restricted Stock Awards, Forfeited | shares | (1,562) |
Restricted Stock Awards, August 4, 2019 | shares | 220,284 |
Weighted Average Grant Date Fair Value, February 3, 2019 | $ / shares | $ 47.79 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 52.09 |
Weighted Average Fair Value Grant Date, Change in units based on performance | $ / shares | 39.10 |
Weighted Average Fair Value, Vested | $ / shares | 39.64 |
Weighted Average Fair Value, Forfeited | $ / shares | 49.34 |
Weighted Average Fair Value, August 4, 2019 | $ / shares | $ 51.79 |