Document
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
  
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): August 14, 2019  
CEC ENTERTAINMENT, INC.
(Exact name of registrant as specified in charter)
 
 
 
 
 
Kansas
 
1-13687
 
48-0905805
(State or other jurisdiction
of incorporation)
 
(Commission
File Number)
 
(IRS Employer
Identification No.)
1707 Market Place Blvd, Suite 200
Irving, Texas
 
75063
(Address of principal executive offices)
 
(Zip Code)
(972) 258-8507
(Registrant’s telephone number, including area code)
Not applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

1


Item 2.02. Results of Operations and Financial Condition.
On August 14, 2019, the Company issued a press release announcing its financial results for the second quarter ended June 30, 2019. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
Item 9.01. Financial Statements and Exhibits.
(d)
Exhibits
 
 
Exhibit
Number
Description
 
 

2


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
 
 
 
 
 
 
 
 
 
CEC ENTERTAINMENT, INC.
 
 
 
 
Date: August 14, 2019
 
 
 
By:
 
/s/ James A. Howell
 
 
 
 
 
 
James A. Howell
 
 
 
 
 
 
Executive Vice President and Chief Financial Officer 

3


EXHIBIT INDEX
 
 
 
 
Exhibit
Number
  
Description
 
 
  


4


Exhibit 99.1
                    https://cdn.kscope.io/3698dfe5e17ae11a3554bda4c1708432-ceclogoa05.jpg
CEC ENTERTAINMENT, INC. REPORTS FIFTH CONSECUTIVE QUARTER OF COMPARABLE VENUE SALES GROWTH

IRVING, Texas - August 14, 2019 - CEC Entertainment, Inc. (“CEC” or the “Company”), a nationally recognized leader in family entertainment and dining, today announced financial results for its second quarter ended June 30, 2019.

First Half and Second Quarter Results (1)  
For the six-month period ended June 30, 2019, comparable venue sales increased 4.5% over the prior year period. Total revenues for the six-month period ended June 30, 2019 increased from $472.3 million to $488.5 million. Our second quarter 2019 results were negatively impacted by the shift of the Easter holiday and several spring breaks into the second quarter in 2019 instead of the first quarter in 2018. Comparable venue sales increased 0.5% in the second quarter of 2019 compared to the second quarter of 2018. For the second quarter of 2019, total revenues decreased $2.2 million, or 1.0%, to $215.2 million, compared to $217.4 million in the second quarter of 2018. The decrease in revenues for the second quarter was primarily attributable to net breakage related to PlayPass of $1.3 million for the second quarter of 2019 compared to $5.2 million for the second quarter of 2018, declining as a result of the third quarter 2018 introduction of All You Can Play, our time-based play offering.
The Company reported a net loss of $8.7 million for the second quarter of 2019, compared to a net loss of $9.0 million for the second quarter of 2018. The net loss for the current quarter was positively impacted by the increase in Company-operated venue sales and lower food and beverage costs, driven by favorability in commodity prices and volume. These favorable impacts were partially offset by an increase in interest expense, driven by the increase in LIBOR rates on our variable rate debt.
“We posted our fifth consecutive quarter of comparable venue sales growth in the second quarter of 2019, driven by the positive impact of the All You Can Play and More Tickets initiatives,” said Tom Leverton, Chief Executive Officer. “We are pleased with our results for the first half of 2019 and our flow through to earnings despite continued pressures from wage growth. We remain optimistic about the growth prospects in the business going forward.”
Adjusted EBITDA (1) for the six-month period ended June 30, 2019 increased $8.8 million, or 8.4%, to $114.5 million from $105.7 million for the six-month period ended July 1, 2018. For the second quarter of 2019, Adjusted EBITDA decreased $1.0 million, or 2.5%, to $38.4 million from $39.4 million for the second quarter of 2018.
Balance Sheet and Liquidity
As of June 30, 2019, the Company had cash and cash equivalents of $113.6 million with net availability of $86.5 million on the undrawn revolving credit facility. There is $975.1 million of principal outstanding on the Company’s long-term debt.
On August 1, 2019, the Company announced that it is seeking to obtain a new first lien senior secured credit facility to refinance in full its existing secured credit facilities.
During the second quarter of 2019, the Company made $16.3 million of capital expenditures, of which $6.5 million related to growth initiatives, $0.4 million related to IT initiatives, and $9.4 million related to maintenance capital expenditures, primarily consisting of game enhancements and general venue capital expenditures.
________________
(1)
For our definition of Adjusted EBITDA, see the financial table “Reconciliation of Non-GAAP Financial Measures” included within this press release.

1



As of June 30, 2019, the Company’s system-wide portfolio consisted of:
 
 
Chuck E. Cheese
 
Peter Piper Pizza
 
Total
Company operated
 
516

 
38

 
554

Domestic franchised
 
25

 
61

 
86

International franchised
 
67

 
42

 
109

Total
 
608

 
141

 
749

Conference Call Information
Tom Leverton, Chief Executive Officer, and Jim Howell, Chief Financial Officer, will host a conference call beginning this morning at 7:00 a.m. Central Time. The call can be accessed by dialing (201) 689-8263 and conference code 13693114.
A replay of the call will be available from 10:00 a.m. Central Time on August 14, 2019 through 10:59 p.m. Central Time on August 28, 2019 and can be accessed by dialing (412) 317-6671 and conference code 13693114. Investors and interested parties may also listen to a live and archived webcast of the conference call by visiting www.chuckecheese.com under the link “Investor Relations.”
About CEC Entertainment, Inc.
CEC Entertainment, Inc. is the nationally recognized leader in family dining and entertainment with both its Chuck E. Cheese and Peter Piper Pizza venues. As America's #1 place for birthdays and the place Where A Kid Can Be A Kid®, Chuck E. Cheese’s goal is to create positive, lifelong memories for families through fun, play and delicious handmade pizza. With the first-of-its-kind gaming experience, All You Can Play, kids have access to play every game at Chuck E. Cheese, as many times as they want on any day, without any restrictions. Committed to providing a fun, safe environment, Chuck E. Cheese helps protect families through industry-leading programs such as Kid Check®. As a strong advocate for its local communities, Chuck E. Cheese has donated more than $16 million to schools through its fundraising programs and supports its new national charity partner, Boys and Girls Clubs of America. Peter Piper Pizza features dining, entertainment and carryout with a neighborhood pizzeria feel and “pizza made fresh, families made happy” culture. Peter Piper Pizza takes pride in delivering quality food and fun that reconnects family and friends. With a bold design and contemporary layout, an open kitchen revealing much of their handcrafted food preparation, the latest technology and games, and beer and wine for adults, Peter Piper Pizza restaurants appeal to parents and kids alike. As of June 30, 2019, the Company and its franchisees operated a system of 608 Chuck E. Cheese and 141 Peter Piper Pizza venues, with locations in 47 states and 14 foreign countries and territories. For more information, visit chuckecheese.com and peterpiperpizza.com.

Investor Inquiries:                        Media Inquiries:
Jim Howell                            Current Marketing for Chuck E. Cheese
Chief Financial Officer                        Sara Spencer
CEC Entertainment, Inc.                        (312) 935-1223
(972) 258-4525                            Current@cecentertainment.com
jhowell@cecentertainment.com
                    


                        
                    

2


Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements, which involve risks and uncertainties. These forward-looking statements are generally identified by the use of forward-looking terminology, including the terms “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and, in each case, their negative or other various or comparable terminology. All statements other than statements of historical facts contained in this press release, including statements regarding our strategy, future operations, objectives of management and expected market growth, are forward-looking statements. Forward-looking statements are made based on management’s current expectations and beliefs concerning future events and, therefore, involve a number of assumptions, risks and uncertainties, including the risk factors described in Part I, Item 1A. “Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended December 30, 2018, filed with the Securities and Exchange Commission on March 12, 2019. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may differ from those anticipated, estimated or expected. There are a number of important factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including but not limited to:
our strategy, outlook and growth prospects;
our operational and financial targets and dividend policy;
our planned expansion of the venue base and the implementation of the new design in our existing venues;
general economic trends and trends in the industry and markets; and
the competitive environment in which we operate.
These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Important factors that could cause our results to vary from expectations include, but are not limited to:
negative publicity and changes in consumer preferences;
our ability to successfully expand and update our current venue base;
our ability to successfully implement our marketing strategy;
our ability to compete effectively in an environment of intense competition;
our ability to weather economic uncertainty and changes in consumer discretionary spending;
increases in food, labor and other operating costs;
the impact of labor scheduling legislation;
our ability to successfully open international franchises and to operate under the United States and foreign anti-corruption laws that govern those international ventures;
risks related to our substantial indebtedness;
failure of our information technology systems to support our current and growing businesses;
disruptions to our commodity distribution system;
our dependence on third-party vendors to provide us with sufficient quantities of new entertainment-related equipment, prizes and merchandise at acceptable prices;
risks from product liability claims and product recalls;
the impact of governmental laws and regulations and the outcomes of legal proceedings;
potential liability under certain state property laws;
fluctuations in our financial results due to new venue openings;
local conditions, natural disasters, terrorist attacks and other events and public health issues;
the seasonality of our business;
inadequate insurance coverage;
labor shortages and immigration reform;
loss of certain personnel;
our ability to protect our trademarks or other proprietary rights;
risks associated with owning and leasing real estate, as well as the risks from any forced venue relocation or closure;
impairment charges for goodwill, indefinite-lived intangible assets or other long-lived assets;
our ability to successfully integrate the operations of companies we acquire;

3


our failure to maintain adequate internal controls over our financial and management systems; and
other risks, uncertainties and factors set forth in Part I, Item 1A. “Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended December 30, 2018, filed with the SEC on March 12, 2019.
The forward-looking statements made in this press release reflect our views with respect to future events as of the date of this press release and are based on assumptions and subject to risks and uncertainties. Given these uncertainties, undue reliance should not be placed on these forward-looking statements. These forward-looking statements represent our estimates and assumptions only as of the date of this press release and, except as required by law, we undertake no obligation to update or review publicly any forward-looking statements, whether as a result of new information, future events or otherwise after the date of this report. We anticipate that subsequent events and developments will cause our views to change. Our forward-looking statements do not reflect the potential impact of any future acquisitions, merger, dispositions, joint ventures or investments we may undertake. We qualify all of our forward-looking statements by these cautionary statements.


4


CEC ENTERTAINMENT, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(in thousands, except percentages)



 
Three Months Ended
 
 
Six Months Ended
 
June 30,
2019
 
July 1,
2018
 
 
June 30,
2019
 
July 1,
2018
 
 
REVENUES:
 
 
 
 
 
 
 
 
 
 
 
 
Food and beverage sales
$
91,650

 
42.6
 %
 
$
96,258

 
44.3
 %
 
 
$
209,466

 
42.9
%
 
$
214,635

 
45.4
%
Entertainment and merchandise sales
117,413

 
54.6
 %
 
115,904

 
53.3
 %
 
 
267,090

 
54.7
%
 
247,021

 
52.3
%
Total company venue sales
209,063

 
97.2
 %
 
212,162

 
97.6
 %
 
 
476,556

 
97.6
%
 
461,656

 
97.8
%
Franchise fees and royalties
6,113

 
2.8
 %
 
5,196

 
2.4
 %
 
 
11,933

 
2.4
%
 
10,606

 
2.2
%
Total revenues
215,176

 
100.0
 %
 
217,358

 
100.0
 %
 
 
488,489

 
100.0
%
 
472,262

 
100.0
%
OPERATING COSTS AND EXPENSES:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Company venue operating costs and expenses (excluding Depreciation and amortization):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of food and beverage (1)
21,285

 
23.2
 %
 
22,894

 
23.8
 %
 
 
47,937

 
22.9
%
 
50,254

 
23.4
%
Cost of entertainment and merchandise (2)
9,452

 
8.1
 %
 
8,421

 
7.3
 %
 
 
21,198

 
7.9
%
 
17,802

 
7.2
%
Total cost of food, beverage, entertainment and merchandise (3)
30,737

 
14.7
 %
 
31,315

 
14.8
 %
 
 
69,135

 
14.5
%
 
68,056

 
14.7
%
Labor expenses (3)
63,975

 
30.6
 %
 
62,618

 
29.5
 %
 
 
136,480

 
28.6
%
 
129,966

 
28.2
%
Lease costs (3)
27,516

 
13.2
 %
 
24,714

 
11.6
 %
 
 
54,543

 
11.4
%
 
48,764

 
10.6
%
Other venue operating expenses (3)
32,653

 
15.6
 %
 
37,069

 
17.5
 %
 
 
67,950

 
14.3
%
 
75,132

 
16.3
%
Total company venue operating costs and expenses (3)
154,881

 
74.1
 %
 
155,716

 
73.4
 %
 
 
328,108

 
68.8
%
 
321,918

 
69.7
%
Other costs and expenses:

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Advertising expense
10,977

 
5.1
 %
 
12,977

 
6.0
 %
 
 
23,230

 
4.8
%
 
26,952

 
5.7
%
General and administrative expenses
14,649

 
6.8
 %
 
13,416

 
6.2
 %
 
 
29,893

 
6.1
%
 
26,325

 
5.6
%
Depreciation and amortization
24,118

 
11.2
 %
 
25,493

 
11.7
 %
 
 
48,452

 
9.9
%
 
52,065

 
11.0
%
Transaction, severance and related litigation costs
8

 
 %
 
191

 
0.1
 %
 
 
31

 
%
 
725

 
0.2
%
Asset impairments
1,285

 
0.6
 %
 
1,591

 
0.7
 %
 
 
1,285

 
0.3
%
 
1,591

 
0.3
%
Total operating costs and expenses
205,918

 
95.7
 %
 
209,384

 
96.3
 %
 
 
430,999

 
88.2
%
 
429,576

 
91.0
%
Operating income
9,258

 
4.3
 %
 
7,974

 
3.7
 %
 
 
57,490

 
11.8
%
 
42,686

 
9.0
%
Interest expense
19,979

 
9.3
 %
 
19,113

 
8.8
 %
 
 
39,787

 
8.1
%
 
37,671

 
8.0
%
Income (loss) before income taxes
(10,721
)
 
(5.0
)%
 
(11,139
)
 
(5.1
)%
 
 
17,703

 
3.6
%
 
5,015

 
1.1
%
Income tax expense (benefit)
(1,987
)
 
(0.9
)%
 
(2,174
)
 
(1.0
)%
 
 
5,191

 
1.1
%
 
1,759

 
0.4
%
Net income (loss)
$
(8,734
)
 
(4.1
)%
 
$
(8,965
)
 
(4.1
)%
 
 
$
12,512

 
2.6
%
 
$
3,256

 
0.7
%
________________
Percentages are expressed as a percent of total revenues (except as otherwise noted).
(1)    Percentage amount expressed as a percentage of food and beverage sales.
(2)    Percentage amount expressed as a percentage of entertainment and merchandise sales.
(3)    Percentage amount expressed as a percentage of total company venue sales.
Due to rounding, percentages presented in the table above may not sum to total. The percentage amounts for the components of cost of food and beverage and the cost of entertainment and merchandise may not sum to total due to the fact that cost of food and beverage and cost of entertainment and merchandise are expressed as a percentage of related food and beverage sales and entertainment and merchandise sales, as opposed to total company venue sales.

5


CEC ENTERTAINMENT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands, except share information)

 
 
June 30,
2019
 
December 30,
2018
ASSETS
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
 
$
113,636

 
$
63,170

Restricted cash
 
182

 
151

Other current assets
 
67,393

 
83,411

Total current assets
 
181,211

 
146,732

Property and equipment, net
 
523,617

 
539,185

Operating lease right-of-use assets, net (1)

 
537,031

 

Goodwill
 
484,438

 
484,438

Intangible assets, net
 
469,730

 
477,085

Other noncurrent assets
 
17,781

 
18,725

Total assets
 
$
2,213,808

 
$
1,666,165

LIABILITIES AND STOCKHOLDER’S EQUITY
 
 
 
 
Current liabilities:
 
 
 
 
Bank indebtedness and other long-term debt, current portion
 
$
7,600

 
$
7,600

Operating lease obligations, current portion (1)
 
48,381

 

Other current liabilities
 
113,258

 
98,982

Total current liabilities
 
169,239

 
106,582

Operating lease obligations, less current portion (1)
 
523,598

 

Bank indebtedness and other long-term debt, net of deferred financing costs, less current portion
 
959,874

 
961,514

Deferred tax liability
 
106,646

 
107,058

Other noncurrent liabilities
 
199,356

 
248,440

Total liabilities
 
1,958,713

 
1,423,594

Stockholder’s equity:
 
 
 
 
Common stock, $0.01 par value; authorized 1,000 shares; 200 shares issued as of June 30, 2019 and December 30, 2018
 

 

Capital in excess of par value
 
359,867

 
359,570

Accumulated deficit
 
(103,148
)
 
(115,660
)
Accumulated other comprehensive loss
 
(1,624
)
 
(1,339
)
Total stockholder’s equity
 
255,095

 
242,571

Total liabilities and stockholder’s equity
 
$
2,213,808

 
$
1,666,165

________________
(1) Effective December 31, 2018. the Company adopted ASC 842 using the modified retrospective approach. Under the modified retrospective approach, the comparative information has not been restated and continues to be reported under the accounting standards in effect for that period.



6


CEC ENTERTAINMENT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)

 
 
Six Months Ended
 
 
June 30,
2019
 
July 1,
2018
CASH FLOWS FROM OPERATING ACTIVITIES:
 
Net income
 
$
12,512

 
$
3,256

Adjustments to reconcile net income to net cash provided by operating activities:
 

 

  Depreciation and amortization
 
48,452

 
52,065

  Asset impairments
 
1,285

 
1,591

  Deferred income taxes
 
(309
)
 
(3,626
)
  Stock-based compensation expense
 
2,096

 
227

  Amortization of lease related liabilities
 

 
(508
)
  Amortization of original issue discount and deferred debt financing costs
 
2,117

 
2,226

  Loss on asset disposals, net
 
1,983

 
2,038

  Non-cash lease costs
 
1,663

 
2,931

  Change in operating lease liabilities
 
(945
)
 

  Other adjustments
 
(270
)
 
348

  Changes in operating assets and liabilities:
 
 
 
 
 Operating assets
 
504

 
(3,736
)
 Operating liabilities
 
21,984

 
8,213

Net cash provided by operating activities
 
91,072

 
65,025

CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
  Purchases of property and equipment
 
(34,342
)
 
(36,808
)
  Development of internal use software
 
(609
)
 
(1,022
)
  Proceeds from sale of property and equipment
 
141

 
412

Net cash used in investing activities
 
(34,810
)
 
(37,418
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
  Repayments on senior term loan
 
(3,800
)
 
(3,800
)
  Other financing activities
 
(1,963
)
 
(2,074
)
Net cash used in financing activities
 
(5,763
)
 
(5,874
)
Effect of foreign exchange rate changes on cash
 
(2
)
 
49

Change in cash, cash equivalents and restricted cash
 
50,497

 
21,782

Cash, cash equivalents and restricted cash at beginning of period
 
63,321

 
67,312

Cash, cash equivalents and restricted cash at end of period
 
$
113,818

 
$
89,094


7


CEC ENTERTAINMENT, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Unaudited)
(in thousands, except percentages)


Non-GAAP Financial Measures
Certain financial measures presented in this press release, such as Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”) and Adjusted EBITDA as a percentage of revenues (“Adjusted EBITDA Margin”) are not recognized terms under accounting principles generally accepted in the United States (“GAAP”). The Company’s management believes that the presentation of these measures is appropriate to provide useful information to investors regarding its operating performance and its capacity to incur and service debt and fund capital expenditures. Further, the Company believes that Adjusted EBITDA is used by many investors, analysts and rating agencies as a measure of performance. The Company also presents Adjusted EBITDA because it is substantially similar to Credit Agreement EBITDA, a measure used in calculating financial ratios and other calculations under our debt agreements, except for excluding the annualized full year effect of Company-operated and franchised venues that were opened and closed during the year. By reporting Adjusted EBITDA, the Company provides a basis for comparison of its business operations between current, past and future periods by excluding items that we do not believe are indicative of our core operating performance.
The Company’s definition of Adjusted EBITDA allows for the exclusion of certain non-cash and other income and expense items that are used in calculating net income from continuing operations. However, these are items that may recur, vary greatly and can be difficult to predict. They can represent the effect of long-term strategies as opposed to short-term results. In addition, certain of these items can represent the reduction of cash that could be used for other corporate purposes. These measures should not be considered as alternatives to operating income, cash flows from operating activities or any other performance measures derived in accordance with GAAP as measures of operating performance, or cash flows as measures of liquidity. These measures have important limitations as analytical tools, and users should not consider them in isolation or as a substitute for analysis of our results as reported under GAAP. Because of these limitations, the Company relies primarily on its GAAP results and uses Adjusted EBITDA and Adjusted EBITDA Margin only supplementally.
The following table sets forth a reconciliation of net income (loss) to Adjusted EBITDA and Adjusted EBITDA Margin for the periods shown:
 
 
Three Months Ended

Six Months Ended
 
 
June 30,
2019

July 1,
2018

June 30,
2019

July 1,
2018
 
 
 
 
 
 
 
 
 
Total revenues
 
$
215,176

 
$
217,358

 
$
488,489

 
$
472,262

Net income (loss) as reported
 
$
(8,734
)
 
$
(8,965
)
 
$
12,512

 
$
3,256

Interest expense
 
19,979

 
19,113

 
39,787

 
37,671

Income tax expense (benefit)
 
(1,987
)
 
(2,174
)
 
5,191

 
1,759

Depreciation and amortization
 
24,118

 
25,493

 
48,452

 
52,065

EBITDA
 
33,376

 
33,467

 
105,942

 
94,751

Asset impairments
 
1,285

 
1,591

 
1,285

 
1,591

Loss on asset disposals, net
 
1,028

 
801

 
1,983

 
2,038

Unrealized (gain) loss on foreign exchange
 
(295
)
 
339

 
(637
)
 
695

Non-cash stock-based compensation
 
949

 
163

 
2,111

 
227

Lease costs book to cash
 
966

 
2,015

 
1,698

 
4,188

Franchise revenue, net cash received
 
472

 
322

 
1,170

 
742

Venue pre-opening costs
 
151

 
2

 
216

 
25

One-time and unusual items
 
485

 
702

 
785

 
1,467

Adjusted EBITDA
 
$
38,417

 
$
39,402

 
$
114,553

 
$
105,724

Adjusted EBITDA Margin
 
17.9
%
 
18.1
%
 
23.5
%
 
22.4
%


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