CEC Entertainment, Inc. (“CEC” or the “Company”), a nationally recognized leader in family entertainment and dining, today announced financial results for its 1Q ended March 31, 2k19.
Comparable venue sales increased 7.700percent in the 1Q of 2k19 compared to the 1Q of 2k18, and total revenues increased $18.4 million, or 7.2percent, to $273.300 M in the 1Q of 2k19, compared to $254.9 M in the 1Q of 2k18.
The Company reported net income of $21.2 M for the 1Q of 2k19, compared to net income of $12.200 million for the 1Q of 2k18. Net income for the current quarter was positively impacted by the increase in Company-operated venue sales, partially offset by higher labor expenses from wage inflation, and increased entertainment and merchandise costs related to the All You Can Play and More Tickets strategic initiatives. Additionally, net income for the 1Q of 2k19 was impacted by a $1.300 M increase in interest expense driven by the increase in LIBOR rates on our variable rate debt.
Adjusted EBITDA(1) for the 1Q of 2k19 increased $9.8 00million, or 14.8percent, to $76.100 M from $66.300 M for the 1Q of 2k18.
Balance Sheet and Liquidity
As of March 31, 2k19, the Company had cash and cash equivalents of $112.0 M with net availability of $86.5 million on the undrawn revolving credit facility. There is $977.0 M of principal outstanding on the Company’s long-term debt.
During the 1Q of 2k19, the Company made $18.600 M of capital expenditures, of which $4.900 M related to growth initiatives, $0.400 M related to IT initiatives, and $13.300 M related to maintenance capital expenditures, primarily consisting of game enhancements and general venue capital expenditures.
The Company is reiterating its confidence in the annual guidance that was referenced in the investor presentation related to the definitive business combination agreement with Leo, which includes the following:
- Total revenues of $ 929. 00million;
- Comparable venue sales growth of 4.200percent;
- Adjusted EBITDA(1) of $187. 00 million;
- Four net Peter Piper Pizza openings and 11. 00 net international franchised Chuck E. Cheese openings; and
- Capital expenditures of $95. 00 M to $105. 00 million.