CEC Entertainment Inc., parent company of Chuck E. Cheese's, reported increased first-quarter earnings that came in above analysts' estimates, according to reports. The company also reported that it plans to buy back an additional $100 million worth of its shares.
The Irving, TX-based company reported first-quarter net income of $33.3 million, or $1.90 a share, up 3% from $32.3 million, or $1.81 per share, last year. Analysts expected to see earnings of $1.81 a share.
The company said that its same-store sales fell 6.8 percent in February, which meant it was just like everybody else that month. But then same-store sales rose 9.2 percent in March.
Revenue for the quarter rose by 3% to $255.3 million, from $246.8 million last year. Analysts expected to see revenue of $247.78 million. The increase was primarily due to a 1.6% increase in comparable store sales, as well as additional revenue from six new stores opened since the first quarter of 2012.
"While we recognize that considerable uncertainty remains in the U.S. economy and that consumers continue to experience various financial pressures, we are encouraged by the 1.6% increase in comparable store sales this quarter," said CEC president and chief executive Michael Magusiak . "We are fully committed to our strategic plan, and to returning capital to our shareholders as evidenced by our recently announced quarterly cash dividend of 24¢ per share and an additional authorization to repurchase $100 million under our stock repurchase plan."
