Dave & Buster's Entertainment Inc Q2 2020 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Jake Rowland Bartlett - Truist Securities, Inc., Research Division - Analyst : Great. And thanks for all the hard work I know you guys are doing out there. The first is I wanted to make sure I understood the comments about current sales trends at reopened stores and then the comments in the press release about same-store sales in the 68 comparable stores that look to be reopened. I think you said in the press release that they were down 71%. I think what I just heard was that you were down 42% in the last week. So just can you help me understand the difference there?

Question: Jake Rowland Bartlett - Truist Securities, Inc., Research Division - Analyst : Okay. And so why are there only 68 stores in the comparable base, if that's the case? I think it was 116 last quarter.

Question: Jake Rowland Bartlett - Truist Securities, Inc., Research Division - Analyst : Great. That's very helpful. Can you share also -- last quarter, you shared that stores that had reopened were reopening at I think it was roughly down 18% of prior year levels, but then steadily improving. Can you give us any more color around the performance of the stores that have reopened? And just hopefully, the kind of -- the consistent improvement that you're seeing there or maybe not?

Question: Jake Rowland Bartlett - Truist Securities, Inc., Research Division - Analyst : Great. That's very helpful. And I just had 1 last question on the cash burn. Scott, you mentioned on the call and in the release that the cash burn was $3.3 million per week right now. I think before it was $7.2 million, including interest service or debt service as well as rent that was deferred. But I just want to make sure I understand what's included in the $3.3 million of cash burn currently.

Question: Jake Rowland Bartlett - Truist Securities, Inc., Research Division - Analyst : Okay. So is that comparable? Because I think before, it was roughly, if I'm remembering right, it was $3.5 million in cash, and then it was $3 million and change on the -- on rent that was being deferred. So has the underlying cash burn changed much? It seems like it's improved, but maybe not by very much.

Question: Daniel Salmon - BMO Capital Markets Equity Research - Analyst : It's actually Dan on for Andrew today. Hope you guys are well. Just 2 quick ones for me. First, you previously highlighted that you'd begun to potentially see some easing of competitive headwinds within the space. More specifically from competitors, maybe not opening as many new stores as they were before. So I'm just curious if that's persisted or if you've begun to observe any sort of uptick or acceleration in competitive closures and if your broader view of the competitive landscape has evolved at all over the last several months.

Question: Daniel Salmon - BMO Capital Markets Equity Research - Analyst : That makes a lot of sense. And then I appreciate all the color on the comp that you've given so far. And you maybe sort of touched on this a little, but in the stores that are opened, are there any regional differences in comp performance you can give us just in terms of different parts of the country, anything worth noting there?

Question: Jake Rowland Bartlett - Truist Securities, Inc., Research Division - Analyst : Great. My first is really on that last question on New York. And I believe -- and maybe it was even yesterday or the day before that the store in Long Island reopened in Islandia. And so as I look at the stores in New York, the 11 stores, a couple are in the boroughs, but most seem to be in areas that you could reopen. Am I wrong about that? What's the delay in getting the New York stores that makes you think it's going to be more like a December time frame? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 10, 2020 / 9:00PM, PLAY.OQ - Q2 2020 Dave & Buster's Entertainment Inc Earnings Call

Question: Jake Rowland Bartlett - Truist Securities, Inc., Research Division - Analyst : Got it. That makes sense. I didn't realize those were just a food and beverage. My other question is really about the operating efficiencies that you're finding now. I know it's very early, but do you have a sense as to whether when you regain the unit volumes that you had before, how much you think margins might be improved? And that's really just to ask how much of the efficiencies you're finding now in G&A as well as in the store do you think are sustainable?