CEC Entertainment, Inc. Reports Financial Results for the 2018 Second Quarter
Company Added
Company Removed
Apply to Request List

CEC Entertainment, Inc. Reports Financial Results for the 2018 Second Quarter

IRVING, Texas - August 9, 2018 // PRNewswire // - CEC Entertainment, Inc. (the "Company") today announced financial results for its second quarter ended July 1, 2018.

Second quarter Results (1)

Comparable venue sales increased 1% in the second quarter of 2018 compared to the second quarter of 2017, and total revenues increased $5.6 million to $217.4 million in the second quarter. Revenue would have increased only $1.0 million after adjusting for $4.6 million less deferred amusement revenue compared to the second quarter of 2017. Deferred amusement revenue has no impact on comparable venue sales.

The Company reported a net loss of $9.0 million for the second quarter of 2018, compared to a net loss of $5.9 million for the second quarter of 2017. Adjusted EBITDA during the second quarter of 2018 was $34.2 million, a decrease of $6.1 million from the second quarter of 2017.

Contributing to the change in the net loss and Adjusted EBITDA were increased operating costs, including a $2.3 million increase in labor from wage inflation, approximately $0.6 million in increased liability insurance expenses and increased merchandise costs resulting from our All You Can Play and more tickets tests. Additionally, the net loss was impacted by a $1.5 million impairment charge related to the closure of one of our locations and a $2.1 million increase in interest expense, partially offset by decreased general and administrative expenses.

"While we continued to feel the impact of several challenges to our business in the second quarter, we were encouraged to be able to increase comparable venue sales," said Tom Leverton, Chief Executive Officer. "We were excited by the impact of several of our tests, including All You Can Play game packages, and therefore on July 9th we launched All You Can Play nationwide. While All You Can Play has raised the excitement level throughout all our venues, we continue to push forward with other initiatives that are under testing."

Balance Sheet and Liquidity

As of July 1, 2018, the Company had cash and cash equivalents of $88.9 million and $982.7 million principal outstanding on its debt, with net availability of $141.0 million on the undrawn revolving credit facility. During the second quarter of 2018, the Company extended the maturity of $95.0 million of its revolving credit facility through November 16, 2020. The maturity date of the revolving credit facility that was not extended remains February 14, 2019.

During the second quarter of 2018, the Company made $19.3 million of capital expenditures, of which $5.5 million related to growth initiatives, $0.7 million related to IT initiatives, and $13.1 million related to maintenance capital expenditures, primarily consisting of game enhancements and general venue capital expenditures.



For our definition of Adjusted EBITDA, see the financial table "Reconciliation of Non-GAAP Financial Measures" included within this press release.

As of July 1, 2018, the Company's system-wide portfolio consisted of:


Chuck E. Cheese's


Peter Piper Pizza



Company operated







Domestic franchised







International franchised














Conference Call Information:

The Company will host a conference call beginning at 9:00 a.m. Central Time on Friday, August 10, 2018. The call can be accessed by dialing (855) 743-8451 or (330) 968-0151 for international participants and conference code 1289744.

A replay of the call will be available from 12:00 p.m. Central Time on August 10, 2018 through 10:59 p.m. Central Time on August 26, 2018. The replay of the call can be accessed by dialing (800) 585-8367 or (404) 537-3406 for international participants and conference code 1289744.

About CEC Entertainment, Inc.

For 40 years, CEC Entertainment has served as the nationally recognized leader in family dining and entertainment with both its Chuck E. Cheese's and Peter Piper Pizza venues. As America's #1 place for birthdays, Chuck E. Cheese's goal is to create positive, lifelong memories for families through fun, food, and play and is the place Where A Kid Can Be A Kid ®. Committed to providing a fun, safe environment, Chuck E. Cheese's helps protect families through industry-leading programs such as Kid Check®. As a strong advocate for its local communities, Chuck E. Cheese's has donated more than $14 million to schools through its fundraising programs and supports its new national charity partner, Boys and Girls Clubs of America. Peter Piper Pizza, with its neighborhood pizzeria feel, features dining, entertainment and carryout. The solution to 'the family night out', Peter Piper Pizza takes pride in delivering a food first, parent friendly experience that reconnects family and friends. As of July 1, 2018, the Company and its franchisees operated a system of 608 Chuck E. Cheese's and 147 Peter Piper Pizza venues, with locations in 47 states and 14 foreign countries and territories. For more information, visit chuckecheese.com and peterpiperpizza.com.


Dale R. Black
Investor Inquiries
CEC Entertainment, Inc.
(972) 258-4525

Erin Gordon
Media Inquiries
Current Marketing
CEC Entertainment, Inc.
(312) 929-0514

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 31, 2017, filed with the Securities and Exchange Commission on March 28, 2018. 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;
  • 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;
  • our ability to successfully integrate the operations of companies we acquire;
  • impairment charges for goodwill, indefinite-lived intangible assets or other long-lived assets;
  • 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 31, 2017, filed with the SEC on March 28, 2018.

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.

For full spreadsheet report, please go to: https://www.prnewswire.com/news-releases/cec-entertainment-inc-reports-financial-results-for-the-2018-second-quarter-300695237.html

SOURCE CEC Entertainment, Inc.



comments powered by Disqus

Franchise News Room »

News By Industry »

Featured Opportunities

True REST Float Spa
Be on the ground floor of taking this movement mainstream by joining the established market leader today!
WineStyles Tasting Station
Turn your passion for wine, craft beer and gourmet food into a rewarding business opportunity. WineStyles Tasting Station is the largest wine...
Sonic Drive-In
Here's your chance to own a SONICĀ® Drive-in Franchise Restaurant. As the nation's largest drive-in chain, SONICĀ® has successfully served up hot,...
Jersey Mike's Subs
Jersey Mike's, a fast-casual sub sandwich franchise with more than 1,500 locations open and under development nationwide, believes that making a sub...
Oxi Fresh
OXI FRESH is a GREEN Carpet Cleaning Franchise and one of Entrepreneur's "101 Best Franchises to Run From Home." Excellent recurring...
Share This Page

Subscribe to Our Newsletters

A Franchise Update Media Production
Franchise Update Media
P.O. Box 20547
San Jose, CA 95160
PH. (408) 402-5681
In Loving Memory Of Timothy Gardner (1987-2014)

Copyright © 2001 - 2019.
All Rights Reserved.