Good afternoon, everyone. And welcome to the Dave & Buster’s Incorporated Fourth 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, Rebecca, and thank you all for joining us. On the call today are Steve King, Chief Executive Officer; and Dolf Berle, President and Chief Operating Officer and Brian Jenkins, Chief Financial Officer. After comments from Mr. King, Mr. Berle and Mr. Jenkins, we will be happy to take your questions. This call is being recorded on behalf of Dave & Buster's Entertainment 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 maybe discussed which are not based entirely on historical facts. Any such items should be considered forward-looking statements and relating 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’ll turn the call over to Steve.

Thank you, Jay, and good afternoon, everyone. We appreciate your participation in today's quarterly conference call and your continued interest in Dave & Buster's. 2015 was another record setting year for our brand with revenues, adjusted EBITDA, and adjusted EBITDA margins all reaching new milestones. In fact, the great momentum we experienced for the first three quarters continued through the fourth quarter as well resulting in a performance that was well ahead of our expectations despite tough comparisons and some weather related setbacks. Our fourth quarter and for that matter the entire year is indicative of what sets Dave & Buster's apart from conventional and casual dining. Our uniquely customizable experience that always provides guests something new across our core platforms, Eat, Drink, Play, and Watch. Only at Dave & Buster's can guest enjoy the latest and greatest games, the best viewing areas for live sporting events, great food, and one of a kind beverages under one roof at a great entertainment value. Brian will walk you through the financial details and then provide our guidance for 2016. But first I'd like to discuss fourth quarter highlight and turn the call over to Dolf who will discuss our 2016 plans. On the top line, we grew total revenues by more than 13% inclusive of the 6% increase in comparable store sales, which was at the high end of our implied guidance. Within our comparable store sales gain, our primary driver was walk-in-sales, which grew at 6.9% while our special events business increased 1.8% which we attributed in part to more competition in some of our markets. We are also delighted that the flow through from our comparable store sales teams along with the revenue contributions from newer stores enabled us to set a new bar of performance for store level…

Thanks, Steve. Dave & Buster's clearly has great momentum but we are always looking at different ways to become better across the board. This afternoon, I'd like to touch on what we are doing to build sales and further improve operating margins so that we elevate our brand and business to the next level. More specifically, I am going to discuss how we are going to refine initiatives that have worked so well for us in the past and then layer in new initiative that we believe will drive results in 2016. From a guests-target perspective, our emphasis remains on play-together young adults. From 21 to 39 years old are our core target given their interest in exploring new amusements as well as new food and beverage offerings. They also have a passion for sports viewing in a social setting. In addition to this audience, we try to appeal to two secondary targets which are families who visit us on a walk-in basis and corporations having party events. We will continue our strategy of targeting all of these groups with new news of interests to them .This will involve at least three launches per year of new games, new food, and new drinks that are all marketed on national TV and complemented with a limited time offer to build excitement and a call to action. With respect amusements, we launched a number of new games this past year with a higher emphasis than ever before on links to other entertainment properties such as movies. Examples of this include the Star Wars Battle Pod and Jurassic Park. Whenever possible, we are launching new games under a window of exclusivity which means guests can only enjoy that game at D&B for an exclusive number of weeks or months. We've also run games…

Well, thank you, Dolf. And good afternoon, everyone. Let me begin by just thanking our D&B team members across the US and in Canada for delivering yet another impressive fiscal year and fourth quarter here at Dave & Buster's. Once again through their hard work, they enabled us to exceed our revenue, adjusted EBITDA and pro forma net income guidance in a meaningful way. Further more, despite the weather headwind that Steve mentioned, we were also able to deliver comp sales at the top end of our guidance range. For the quarter, total revenues increased 13.1% to $234.2 million, that’s up from $207.1 million in the prior year. Revenues from our comparable stores increased 6% to $180.3 million, up from $170 million while revenues from our non-comparable stores increased 46.3% to $55.5 million, that’s up from $37.9 million in the prior year. These strong results were despite weather headwinds, softer but still positive comps in the state of Texas and some cannibalization due to the fact that eight of our new stores in 2015 opened in existing market. In addition, the four store openings in the fourth quarter were later this year relative to the three stores opening in the previous year. This resulted in fewer operating weeks from our newest locations on a year-over-year basis. Now as a reminder, a store does not enter the comparable base until it has been open at least 18 months as of the beginning of each fiscal year and store is closed as of the end of the reporting period are removed from the comparable base. We had 59 stores in our comp base during the fourth quarter. With respect to category sales, we continue to experience a total sales mix shift to the more profitable gaming side of our business as total…

Thank you, Brian. I want to touch first on the ongoing remodeling program and then transition into an update on our new store development. In 2015, we completed three comprehensive remodels which include adding D&B sports branding elements along with updates to the exterior or the dining room, the bar and front lobby. We also enhanced some additional five stores with D&B sports lounges and improve the viewing in several other stores. Over 70% of all locations feature this D&B sports branding. By making these changes we are continue to take these facilities to next level, really attracting guest become more often and enticing new guests to experience a one of kind dining and entertainment destination. This year we are looking at six comprehensive remodels and enhancing three additional stores with D&B sports lounges. By the end of 2016, we intend to be substantively complete with our sports related remodeling project. Turning to development in the fourth quarter. We opened four stores, Friendwoods, Texas in the Houston area, Glendale, Arizona in the Phoenix area, Springfield Virginia in the Greater Washington DC Metro and St. Antonio, Texas. For the full year we opened total of 10 stores including the Buffalo New York re-lo. In 2016, our plans call for as Brian mentioned 9 to 10 stores of which one is open and an additional five are under construction. Four store openings will be in markets where we already have a brand presence. And if we get the top end of the range six store openings are in new markets for D&B. In terms of square footage, we will continue to use the entire range between 25,000 and 45,000 square feet, three stores will be 30,000 square feet or less, essentially are small stores, three will be 40,000 square feet or more…

[Operator Instructions] First we will hear from Joshua Long with Piper Jaffray.

Great. Thank you. Wanted to see if we might be able to talk about the new game pipeline or platform that you have. And you mentioned earlier in the call, in terms of being able to tie in with movies, is that something that you will be able to market against and highlight that exclusivity or will it show up in the advertising just in the normal scope of highlighting your amusement offerings?

We do intend to feature those games on television, and we will be able to talk about exclusivity. In fact, we've gotten that organized for any given game. So yes, that's something we intend to expand upon versus what we even did in 2015.

Great. Thanks. And then in terms of the new food and drink introductions, can you talk about the ability or kind of the impact from brand new items to contrast against the platform extensions, it seems like you have done a good job in terms of bringing out not just one item but bringing out something that you can create platform extensions around. So just curious if that’s something we should expect to see going forward in this year as well and any sort of commentary you might be able to provide in terms of how those platform extensions have been working for you as a strategy?

Well, we are extremely pleased with the new platform extensions and we will continue to push forward with those. As I referenced earlier, we have several lined for 2016 and we are confident that they are going to be great additions to the roaster. They complement what is a strong stable of older and more proven items sort of favorites from over the years. But we do not intend to slowdown on the new product introduction because we recognize that that creates fun and excitement and very squarely goes against what play-together young adults are looking for which is something new and experiential each time they come to D&B.

That's helpful. Thank you. And then last one for me. In terms of the remodels plan for 2016, that color was helpful. I was curious if you could remind us what -- you have been spending on each either comprehensive or just an enhancement in terms of CapEx and kind of what’s built into guidance?

Yes. I'll take that. We guided $120 million to $130 million net capital. There is about $24 million of that number that related to what we would call ROI oriented capital. Of that about $15 million is investments we plan to make on fixed full remodels as well as three D&B sports lounges. So we are going to do six full remodels, three D&B sports touches and across the platform this year, so it's little bit higher number than we’ve spent actually in 2015.

Got it. And then going forward, you will be essentially done with your rollout of the D&B Sports, or at least Steve knows that you're going to be touching with that. And so that aspect -- that piece of the CapEx should come down into something more normalized, just more on the R&M side? Is that a good way to think about it?

I think so Josh. I think that we will be substantively complete. There may be a store or two that we elect to do going forward, but I don't think it will be at the same sort of volume that we've done -- that we are planning to do this year or even what we did last year. As I said, just sort of store to -- and then it will roll into on an ongoing maintenance of what we are spending to maintain our stores.

And just little color, I mentioned $15 million of the $24 million, we do plan to continue to invest in the special events space; Dolf mentioned that in his remarks, we touched about 20 of them in 2015. So we've earmarked some dollars to go in and improve a number of other stores next year as well as trying to round out the remodel of our win, winner circle to win conversion which we largely completed but we have a number of additional stores we need to do to kind of finish that out. So those are few other things we are doing to the facilities next year or I guess this year.

In 2016.

Yes

From William Blair we will hear from Sharon Zackfia.

Hi, good afternoon. A couple of questions. I know you mentioned Texas, and I know everybody has been worried about Texas. Just curious if you've seen any stabilization in Texas? And if there's any category, in particular, that you'd call out being more weak,, whether it's amusements or beverages or food? And then secondarily, on the color coding of the games, blue and green, can you talk about when we will start to see advertisements where you try to market the simulation versus the non-simulation? And how we should expect that to evolve?

So I'll take the second one first and let Brian do a few notes here on the former question and let him take that one. But in terms of the color coding of the games, we view that as an opportunity. There are a couple of technical things that we needed to get done in order to facilitate kind of the rapid deployment and changing back and forth of those colors. We've finished that technology enhancement that we needed to do and stand ready to start experimenting with a couple of different ways to utilize that. But I would expect to see testing on that certainly here towards the end of the first quarter or into the second quarter of 2016.

Yes. Just on the Texas question. We don't typically make a practice to talking about states and geographies that much there has been so many questions around the state of Texas and impact of oil and gas in that part of the country. And we felt like we wanted to talk about it little bit here today and reality was in our fourth quarter we were positive. It was not 6% positive, it was a trail the overall change but it was still nose let's say. I would not say that trend has improved. Part of the situation in Texas for us that make a little hard to read whether its oil or something else. We opened three stores in our 2015 class in three of our markets in the state of Texas. One in St. Antonio, one in Houston and one in Dallas. So we know we are impacting our sales a little bit as well as oil and gas but I would not say we've seen it improved.

Next we will hear from Andrew Strelzik with BMO Capital Markets.

Hey, good afternoon, everyone. I am just wondering as I am looking at this year-over-year increases in the store level EBITDA margins. Can you give us a sense for what at the top end of that distribution those store level EBITDA margins looks like and if you continue to see kind of the same levels of improvement there as kind of the consolidated levels?

I think we are seeing improvement across the portfolio. We've never really talked about by ductile or whatever we are getting from our margin improvement standpoint. But we do continue to see improvement across the spectrum. One of the things that drive that in 2015 was the comp store sales performance. And I think we said before we had broad participation in terms of comp store sales performance. And now is one of the key drivers in terms of metric in addition to the e-ticket and some of those sorts of things. But that comp was really very broad in terms of its overall participation both from volume of stores as well geography of stores and days of the week and all that sort of stuff. So we see a lot of -- we see broad participation once again.

And then on the real estate side you know there is lot of commentary within the industry tightening or loosening or whatever. Wondering what you guys are seeing obviously going after a different box size if you are seeing kind of loosening or more sites available or less sites available kind of relative to 12 months ago?

There is a lot of sites available right now especially for our size. And I think that they changes, there are things like kind of sears coming online and saying they are going dispose a 100 stores and while we may not want to go every sears, there is probably of handful sears that would make chance for us to take a portion of and subdivide, you know they are huge spaces so we won't be able to take the whole thing but us in conjunction with few other retailers or entertainment facilities might be willing to take down some of that, some Macy's have come online, sports authority declared bankruptcy, so there is a lot of real estate coming online in our size. The only other thing I will say malls are not dead. Actually our mall stores are performing well. And we get that question periodically but the mall stores are performing well. So I think that mall developers are pivoting towards a bit more entertainment as they are going after trying to replace these folks and so we are an attractive alternative for them.

And then my last question it sounds like in over the last 18 months or so you continue to evolve the marketing strategy in terms of number of spots and where you are focusing some of that. From marketing perspective should we expect any change in the levels of marketing or is it really just a continued evolution of the strategy and the kind of different points within the box that you are highlighting in terms of the strategy there?

I think we are going to continue to focus on new, new. I mean I think those are the -- when we say new, new we are saying we are going to try to introduce new foods, new beverage and new games at the same time and feature those on television. We are adding some additional weight during the course of 2016, it's probably week or two, we haven't locked in for sure and exactly what we are going to do but it's going to be towards the second half of the year for sure. It will be Q3, Q4. Last year we added a one week of television, what I am saying last year 2015, we added one week of television during the football timeframe. And then the only other thing I'd say we are always tweaking what we are spending against and we've been allocating a bit more towards family networks, Nickelodeon and Cartoon Network and some of those sort of things. And we've got good success with that. And it's relatively inexpensive from marketing standpoint, from a point per cost per point endpoint so we continue to do it in a very targeted way, targeted time of the year. We are looking to do it like right now over spring break timeframe, where out there with a kid message but three or four weeks from now we will be off that and we won't be on like kids much, we will come back with it over the summer when you see a lot of kid out of school.

[Operator Instructions] And from Raymond James we will hear from Brian Vaccaro.

Just wanted to circle back on the fourth-quarter comp trends if I could. Can you give some color on, say, the strongest day parts or days of the week? And are you still seeing outsize growth during the peak sports viewing periods? The Saturday/Sunday period, you mentioned that promotion?

Yes. Our strongest day parts are really lunch and afternoon for us and Sunday was a very strong day probably one of the highest percentage days we had for the quarter. And we are actually a little weaker in late night in the fourth quarter and so it stands to reason. I mean we were focused heavily on sports in first part of the quarter and shifted to some of the holiday time so the lunch afternoon day parts were places where we have some strength.

Yes, all right, that's helpful. Shifting gears to the amusement side, I wanted to just ask about the level of promotion on the amusement side, and how you were executing that strategy with your email club users, specifically. Can you speak to the success you've had with things like the winner's circle, and other promotions? And how you're using that, or how you intend to use that as you move through 2016?

We continue to reach out to that loyalty database on a fairly frequent basis, multiple times a month with various offers. As they use them we can do some customization around that but in general we are hitting them fairly consistency in terms of the timing that we are doing across a given month or given quarter. I mean I think we said this before. I mean we tend to lead with amusements promotional activity. We think that's a kind of lowest cost to sales to us, it's sort of least expensive way for us to give a value to the consumer and so they tend to respond well to things like $10 a free game, $5 for 10 -- if you buy $10 or $20 in some cases a free game play, if you buy $20 and so those are the types of promotion that a; have relatively limited cost to us and they generate business are very lucrative.

Yes, understood. Just one more quick one if I could. Brian, sorry if I missed this but the pricing by segment, I think you said 2.2% on food. But what was the pricing in the beverage segment for the quarter? And then if you have a blended, that would be great?

Yes. You got it right on 2.2% for food, 1.7% for beverage, 0% from amusement on a weighted average of one percentage point which is the same for the year-to-date. So quarter and year-to-date were both one percentage point of effective price.

Okay. And how should we think about pricing in 2016 in light of the labor cost trends you mentioned on the call?

I think what we said is we are probably going to -- this year in food we were up 2.6% from our full year basis that we are going to be probably be something in that range 2.5% to little more. But it will be likely be focused on some of these markets by California, New York where we see some of the labor pressure is where we will top spin the pricing up little bit just try cover some of the pressure we see on the wayside.

Yes, understood, okay. And then is there an extra operating week in 2017?

We are in 2016, it ends of January 29, now forgotten the date for 2017, it is 52 week year.

Are you asking about the following year?

I'm asking about 2017, because we all have to publish 2017 estimates. Just wanted to make sure we're all on the same page on an extra week or not. It looks like there might be, but --

2017, yes I am getting the nod that is a 53 week year.

And this time I'd like to turn the conference back over to Mr. King for any additional or concluding remarks.

Well, I just want to thank you again for your continued interest in Dave & Buster's. We look forward to speaking with you again in early June where we will be announcing our first quarter results. Thanks everybody.

Ladies and gentlemen, that does conclude today's presentation. We do thank everyone for your participation.