Good afternoon, everyone and welcome to the Dave & Buster’s Inc. Second Quarter 2015 Earnings Conference Call. Today’s call is being hosted by Steve King, Chief Executive Officer. I would like to remind everyone that this call is being recorded and will be available for replay beginning later today. Now, I would like to turn the conference over to Jay Tobin, Senior Vice President and General Counsel for opening remarks. Sir, please go ahead.

Thank you, Shannon and thank you all for joining us for the Dave & Buster’s Entertainment Incorporated quarterly conference call. On the call today are Steve King, Chief Executive Officer and Brian Jenkins, Chief Financial Officer. After comments from both Mr. King and Mr. Jenkins, we will open the call for your questions. This call is being recorded on behalf of the company and is copyrighted. Before we begin our discussion of the company’s results, I would like to call your attention to the fact that in our remarks and our responses to your questions, certain items may be discussed, which are not based entirely on historical facts. Any such items should be considered forward-looking statements and relate to future events within the meaning of the Private Securities Litigation Reform Act of 1995. All such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ from those anticipated. Information on the various risk factors and uncertainties has been published in our filings with the SEC, which are available on our website at www.daveandbusters.com under the Investor Relations section. In addition, our remarks today will include references to adjusted EBITDA, store level EBITDA and pro forma net income, which are financial measures that are not defined under Generally Accepted Accounting Principles. Investors should review the reconciliation of these non-GAAP measures to the comparable GAAP results contained in our earnings announcement released this afternoon, which is also available on our website. Now, I will turn the call over to Steve.

Thanks, Jay and good afternoon everyone. We appreciate your participation in today’s conference call and interest in our company. Once again, we are excited to be sharing with you another record-setting second quarter at Dave & Buster’s. As the numbers demonstrate, we leveraged our robust comparable store sales increases and strong revenue contributions from newer stores into our best store level EBITDA and adjusted EBITDA margins today. In addition, we are gratified that our 8 non-comparable store sales in the 2014 class are generating returns far above our 35% targeted year 1 cash-on-cash and that our 2015 class of stores is off to a good start. Our stellar performance during the recent three-month period on top of a solid beginning to the year in the first quarter has positive implications from our – for our full year guidance as Brian will explain. But for now, my takeaway is that we are driving exceptional results through effective execution of our strategic plan and that our brand is truly seemed as highly differentiated from conventional casual dining. This is because our guests can take advantage of multiple entertainment options and customize their experience in a mirror that cannot be replicated elsewhere thereby maximizing their fun. Comparable store sales rose 11% against a 5.7% increase in the prior year. And we continue to expand our outperformance relative to Knapp-Track with an approximate 1,000 basis points differential over the effective 13-week period. We have now outperformed this industry benchmark for 13 consecutive quarters and we were the top performing brand in Knapp-Track for each of the first six months of our fiscal year. On a 2-year basis, we accelerated comparable store sales relative to the first quarter with a 16.7% gain compared to about 14.6% in the first quarter and 11% in the third…

Thank you, Steve and good afternoon. Before I review our second quarter financials and raise our annual outlook, I want to discuss several recent events that will impact our pro forma earnings guidance for fiscal 2015. First, as I mentioned on our last earnings call, during our second quarter, we closed on a 5-year $500 million senior credit facility. The new credit facility bears a more favorable interest rate compared to our previous facility and we expect to save in excess of $9 million in annualized cash interest based on current LIBOR rates and debt levels at the time of the refinance. However, you will note in today’s earnings release, we incurred a $6.8 million pre-tax non-cash write-off of debt issuance cost as a result of that transaction. During the quarter, we also priced a secondary public offering resulting in transaction cost that along with the previously mentioned debt cost write-off have been excluded in our pro forma earnings estimates. And finally, we recently sold a $1.2 million note receivable that was being held on our balance sheet at a discount to its full value upon settlement of the note was paid in full and resulted in approximately $500,000 in non-cash interest income, which was netted out of our interest expense line. Therefore, I would caution you not to not extrapolate our Q2 net interest expense to subsequent quarter since this non-cash interest income was a one-time gain and is non-recurring. Turning now to our second quarter results, total revenues increased 19.8% to $217.3 million, up from $181.4 million in the prior year. Revenues from our comparable stores increased 11% to $176.8 million, up from $159.3 million while revenues from our non-comparable stores increased 84% to $41.6 million, up from $22.6 million in the prior year. Recall that a store…

Thank you, Brian. We are very pleased with our solid results for the first half of 2015 and we are very enthusiastic about the road ahead for us at Dave & Buster’s. As Brian mentioned, we now expect to open 8 to 9 stores this year, slightly ahead of our prior 7, 8 store guidance. During the second quarter, we opened 2 stores, one in Kentwood, Michigan it’s outside of Grand Rapid and one in Woburn, Massachusetts, which is northwest of Boston. After the end of the quarter, we opened the store in Edina, Minnesota, which is in the Twin Cities. As a reminder, the store relocation in the third quarter planned for Buffalo, New York is not included in the 8 to 9 new store guidance. In the fourth quarter, we will open in Friendswood, Texas, which is outside of Houston and Glendale, Arizona, home of last year’s Super Bowl, which is west of Phoenix as well as Springfield, Virginia, which is in the Greater DC area. All of these locations are under construction. We also anticipate the possibility of one additional location opening before year end. That store is also under construction in San Antonio, Texas and we are in the process of confirming whether that opening will fall into this fiscal year. Looking ahead, we have great visibility with respect to development. We have 16 signed leases for stores to open in 2016 and thereafter. I should also note that even as we are opening new stores as part of our objective to reach 200 stores in North America – more than 200 stores in North America, we are also investing back in our current store base. This year, we are substantially remodeling three locations and creating D&B Sports lounges in five additional units, those are all completed. These efforts are designed to strengthen our positioning as the destination of choice for one-of-a-kind dining entertainment and should enable us to better serve our existing guests and attract new guests to our brand. And finally, we believe that we are extremely close to signing a definitive agreement to open Dave & Buster’s stores internationally and we hope to have something to announce soon. We look forward to expanding our brand beyond North America and believe our Eat Drink Play and Watch positioning should resonate far beyond our borders. So, on that exciting note, we are now ready to take your questions. Operator, please open the lines.

Thank you. [Operator Instructions] And we will take our first question from Sharon Zackfia with William Blair.

Hi, good afternoon. Couple of questions. First, congratulations on a great quarter. When you talk about the 2016 pipeline, I know this year is going to be primarily the large format stores. I don’t know if you can give us any insight into what 2016 might look like? And then secondarily on G&A, obviously some nice bonus accruals happening and you guys deserve it, but wondering if you could give us any update on kind of what the right G&A range might be for this year?

Okay, let me take the first one. And for 2016 the stores that we have signed are more balanced between compared to what they were this year. As you look at this year, we are highly skewed towards the large stores. It looks like 8 of the 9 if we open 9 will be large stores. We have opened that one in Grand Rapids. Outside of Grand Rapids is a small store. But next year, we are anticipating they are going to be much more balanced. And we think there will be even a little better spread throughout the year. They are pretty even this year now. We think we can get even a little better next year.

Sharon, on the G&A question, yes, we did have an increase in G&A in the quarter and also year-to-date largely driven by bonus accruals, particularly in the second quarter. I think a reasonable number to think about is $52 million to $53 million of G&A and I think on the last call, we were talking about in the neighborhood of $48 million to $49 million. So, we do anticipate a bit higher G&A this year due to incentive compensation and as well as cost associated with being a public company. In particular, we did trigger the need to be Sarbanes-Oxley, SOX 404 compliance this year and so we are part at work on that and we are encouraged from additional cost associated with that.

Okay, great. Thank you.

Thanks, Sharon.

And we will move to our next question Nicole Miller with Piper Jaffray.

Thank you. Good afternoon.

Good afternoon.

You also made a note in the press release about remodeling a few more stores in the quarter, can you give us an update of how much of the system is remodeled and how the planned definition of system, please?

I think we talked about – we did three complete remodels this year. That’s the kind of $2 plus million remodel scope. In addition to that – that includes a D&B Sports component. In addition to that, we touched 5 additional stores with the D&B Sports branding and improved the sports viewing venue in a number of stores. We are going to be about 70%. As we sit here today, we are about 70% of the store base has the D&B Sports branding in it, which is the major component of the remodel, not the only thing, but clearly a marking part of it. We will continue to look at and are looking at a number of stores that we will do next year. We had to block down on the final number to the folks here on this call today, but we do anticipate doing a few more stores next year.

Thank you. And then also, you made note that you are coming close to working some – with some international partners, how is that coming along and when can we expect an opening and maybe where, please?

I think at this point, given the timing, opening wise it would be either very, very late 2016, but much more like will be into 2017. That would have an opening. And until we sign it, we really not going to talk a lot more about the terms and where and all the rest of that, but I would anticipate openings sometime in 2017.

And just the last quick one for me, please. There is lot of pent up demand or hype around Star Wars in the retail world, did that help you in your current – for this just reported or do you see it helping you at any point for the remainder of the year? Thanks.

I think that all the games that we have we tend to put into advertising that features multiple games and so on the margin, anything that has a branded tie-in that is whether that’s Star Wars or something like that, we view that as a beneficial. But its – we also don’t do it as the primary driver if you will but it has to be something that’s connected to a movie property or something like that, but those are helpful. They are the things we put on TV, there are the things that we promote, but we don’t intend to promote that through the rest of the year. We are going to go shortly here, I guess starting on Thursday or so with the football promotion and we will be running that, we anticipate through November.

Thank you.

Thank you. Thanks Nicole.

[Operator Instructions] And we will take our next question from Paul Westra with Stifel.

Can you guys help us out with a little bit on I guess the second half marketing calendar how should we think about it you mentioned some same store sales headwinds with respect to some of the calendar shifts, but how should we think about calendar flight doing to detail about some more way through some more flights in 2Q, should we think what the year-over-year calendar look like for the second half?

Yes. It’s pretty similar. We are adding one week of television versus prior year in the third quarter. And that was really, we had a gap in our calendar during the football season we have started to narrow that gap a bit, so we will be on for 10 weeks during the third quarter, which is slightly different than where we have been in the past. The remainder of it is more about reallocation and there are more weeks and whatnot and kind of what networks we run on and how we have chosen to puff some of advertising on the younger audience, on the kids advertising. So we will be coming back again with that sort of promotion and targeted advertising in the holiday season as well.

Was the 2Q spend as a percentage of sales was the same in 2Q last year or is it just being allocated more efficiently it sounds like…?

It is very similar in dollars. As Steve mentioned, we did reallocate some of the media into Nickelodeon kid focused advertising over the summer. Steve mentioned in his remarks, we advertised seven weeks on Nickelodeon versus four in the prior quarter, now with essentially a reallocation we did for national radio in the prior year, so really not anymore dollars spent to speak out as a bit of an allocation. But I would say one thing there about the kind of the differences in the back half, we are advertising some kid focused advertising as we kick off the third quarter, in August we do have some weeks of advertising that we didn’t do previously in the prior year.

Okay. And then maybe a little more color on D&B Sports packages, you have 70% this year, what do you have in the second half last year roughly and I guess season NFL kicking off can you talk about that being last year was the big noticeable impact, do you see the impact during the summer on the sports as well sort of giving up impact in the second half of year kicking of shortly?

Yes. I want to come back to one thing that we said that a numbers of times and that is we believe we have really good viewing across the entire system. It will be as high as Brian said its right around 70% now, and we believe it’s going to be a bit over that as we build the last couple of stores during the course of this year. I don’t have that stat right in front of me of what it was last year and it was clearly lower, I think it was in the mid-50s, it’s 55% or something like that.

And then you are putting some more – maybe media or ad spend around packages this year – for the install?

I am sorry, could you repeat that, you broke up.

Anymore advertising about the sports packages, anymore regional and national TV ads – it’s in the vast majority of your stores?

Yes. So last year, there is probably the biggest difference in terms of our football advertising this year versus last year is it gets skewed a little later because the calendar is later. But we are on in the third quarter, I mentioned one additional week during the third quarter of national advertising. We are not going to – we don’t do that much local advertising in terms of – we don’t do any spot buys on a regional basis.

And my last question, your 3.7% pricing, can you just remind me what the last day versus the year or is there some…?

We are still, that’s 2.7% is quarter food pricing statistic is 2.7%, we were about 2.8% year-to-date. We are going to be – we are shooting for somewhere between 2.5% to 3% on the food front for the full year. So we expect to sort of maintain that general level for the balance of the year.

Okay, thank you. Congrats on a good quarter.

Thanks, Paul.

And there are no additional questions at this time. I will turn the call back to management for any additional remarks.

Thank you very much for joining us. We look forward to seeing you with another good quarter hopefully in December. Thank you.

That does conclude today’s conference. Thank you for your participation.