Bowlero Corp. (NYSE: BOWL) (“Bowlero” or the “Company”), one of
the world’s premier operators of location-based entertainment,
today provided financial results for the third quarter of the 2024
Fiscal Year, which ended on March 31, 2024.
Quarter Highlights:
- Revenue increased 7.0% to $337.7 million versus the prior year
and increased 64.7% versus 3QFY19 (quarter ended March 31,
2019)
- Revenue excluding Service Fee Revenue increased 8.8% to $336.4
million versus the prior year and was up 64.1% versus 3QFY19
- Same Store Revenue declined 2.1% versus the prior year and grew
26.1% versus 3QFY19
- Net income of $23.8 million versus prior year loss of $32.1
million and income of $27.4 million in 3QFY19
- Adjusted EBITDA of $122.8 million versus prior year of $127.6
million and $67.4 million in 3QFY19
- Added 2 locations during the quarter, 1 through acquisitions
and 1 new build-out, bringing year-to-date new locations to 23
- Total locations in operation as of May 6, 2024 is 352
“Third quarter fiscal year 2024 started slowly due to weather.
Post the first three weeks of January, we found a stable footing
and increased investments to drive traffic. After the first three
weeks of the quarter, we achieved a positive same-store-comp and
double-digit total growth. Lucky Strike Miami opened in the quarter
with exciting results, and we expect to have four more new builds
opening in the next nine months with two in the Denver area and two
in California. Summer Season Pass returned this year, and we expect
that our continued investments in traffic will drive results
throughout the spring and fall,” said Thomas Shannon, Founder and
Chief Executive Officer of Bowlero.
“Last week, we closed an acquisition in the water park space by
acquiring Raging Waves, the largest outdoor water park in Illinois.
We bought the park at an attractive price with the opportunity to
partner with a strong operator in the space,” followed Thomas
Shannon. “We will continue to use internal and external investments
to support increasing wallet share from customers in the
out-of-home entertainment space, helping grow our industry-leading
free cash flow generation.”
Bobby Lavan, Chief Financial Officer, added, “We had a strong
cash flow quarter building up cash balances as we focused on
investing capital in new builds and acquisitions. We ended the
quarter with $212 million of cash and $432 million of total
liquidity.”
Positive Update on EEOC Matter
The Company has received positive updates on the status of the
age discrimination claims that had been pending with the EEOC. On
April 12, 2024, the EEOC issued Closure Notices for the individual
age discrimination charges that had been filed, in most cases, many
years ago with the EEOC. The notices provide the claimants, as a
matter of course, with an individual right to sue. The vast
majority of these claims are time-barred. On May 3, 2024, the EEOC
issued an additional Closure Notice for the related pattern and
practice directed investigation. The notice states that the EEOC
has determined not to bring litigation against the Company.
Share Repurchases
From January 1, 2024 through May 6, 2024, the Company
repurchased 1.1 million shares of Class A common stock for
approximately $13 million, bringing current total repurchases in
fiscal year 2024 to approximately 20.8 million. Since 2021, the
Company has spent approximately $446 million retiring all
SPAC-related warrants, repurchasing 32.1 million shares of common
stock, and 5.0 million as-converted preferred shares, reducing
common stock outstanding by about 20%.
Dividend
The Board of Directors declared a quarterly cash dividend of
$0.055 per share of common stock for the fourth quarter of fiscal
year 2024. The dividend will be payable on June 7, 2024, to
stockholders of record on May 24, 2024.
Fiscal Year 2024 Guidance
After completing three fiscal quarters, we now expect to be near
the low end of our fiscal year 2024 Revenue and Adjusted EBITDA
guidance.
Investor Webcast Information
Listeners may access an investor webcast hosted by Bowlero. The
webcast and results presentation will be accessible at 10:00 AM ET
on May 6, 2024 in the Events & Presentations section of the
Bowlero Investor Relations website at
https://ir.bowlerocorp.com/overview/default.aspx.
About Bowlero Corp.
Bowlero Corporation is one of the world’s premier operators of
location-based entertainment. With over 350 locations across North
America, the Company serves more than 40 million guest visits
annually through a family of brands that include Lucky Strike,
Bowlero and AMF. In 2019, Bowlero acquired the Professional Bowlers
Association, the major league of bowling and a growing media
property that boasts millions of fans around the globe. For more
information on Bowlero, please visit BowleroCorp.com.
Forward Looking Statements
Some of the statements contained in this press release are
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, that involve risk,
assumptions and uncertainties, such as statements of our plans,
objectives, expectations, intentions and forecasts. These
forward-looking statements are generally identified by the use of
forward-looking terminology, including the terms "anticipate,"
"believe," “confident,” “continue,” "could," "estimate," "expect,"
"intend," “likely,” "may," "plan," “possible,” "potential,"
"predict," "project," "should," "target," "will," "would" and, in
each case, their negative or other various or comparable
terminology. These forward-looking statements reflect our views
with respect to future events as of the date of this release and
are based on our management’s current expectations, estimates,
forecasts, projections, assumptions, beliefs and information.
Although management believes that the expectations reflected in
these forward-looking statements are reasonable, it can give no
assurance that these expectations will prove to have been correct.
All such forward-looking statements are subject to risks and
uncertainties, many of which are outside of our control, and could
cause future events or results to be materially different from
those stated or implied in this document. It is not possible to
predict or identify all such risks. These risks include, but are
not limited to: our ability to design and execute our business
strategy; changes in consumer preferences and buying patterns; our
ability to compete in our markets; the occurrence of unfavorable
publicity; risks associated with long-term non-cancellable leases
for our centers; our ability to retain key managers; risks
associated with our substantial indebtedness and limitations on
future sources of liquidity; our ability to carry out our expansion
plans; our ability to successfully defend litigation brought
against us; our ability to adequately obtain, maintain, protect and
enforce our intellectual property and proprietary rights and claims
of intellectual property and proprietary right infringement,
misappropriation or other violation by competitors and third
parties; failure to hire and retain qualified employees and
personnel; the cost and availability of commodities and other
products we need to operate our business; cybersecurity breaches,
cyber-attacks and other interruptions to our and our third-party
service providers’ technological and physical infrastructures;
catastrophic events, including war, terrorism and other conflicts;
public health emergencies and pandemics, such as the COVID-19
pandemic, or natural catastrophes and accidents; changes in the
regulatory atmosphere and related private sector initiatives;
fluctuations in our operating results; economic conditions,
including the impact of increasing interest rates, inflation and
recession; and other factors described under the section titled
“Risk Factors” in the Company's Annual Report on Form 10-K filed
with the U.S. Securities and Exchange Commission (the “SEC”) by the
Company on September 11, 2023, as well as other filings that the
Company will make, or has made, with the SEC, such as Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K. These factors
should not be construed as exhaustive and should be read in
conjunction with the other cautionary statements that are included
in this press release and in other filings. We expressly disclaim
any obligation to publicly update or review any forward-looking
statements, whether as a result of new information, future
developments or otherwise, except as required by applicable
law.
Non-GAAP Financial Measures
To provide investors with information in addition to our results
as determined under Generally Accepted Accounting Principles
(“GAAP”), we disclose Revenue Excluding Service Fee Revenue, Total
Bowling Center Revenue, Same Store Revenue and Adjusted EBITDA as
“non-GAAP measures”, which management believes provide useful
information to investors because each measure assists both
investors and management in analyzing and benchmarking the
performance and value of our business. Accordingly, management
believes that these measurements are useful for comparing general
operating performance from period to period, and management relies
on these measures for planning and forecasting of future periods.
Additionally, these measures allow management to compare our
results with those of other companies that have different financing
and capital structures. These measures are not financial measures
calculated in accordance with GAAP and should not be considered as
a substitute for revenue, net income, or any other operating
performance or liquidity measure calculated in accordance with
GAAP, and may not be comparable to a similarly titled measure
reported by other companies. Our fiscal year 2024 guidance measures
(other than revenue) are provided on a non-GAAP basis without a
reconciliation to the most directly comparable GAAP measure because
the Company is unable to predict with a reasonable degree of
certainty certain items contained in the GAAP measures without
unreasonable efforts. For the same reasons, the Company is unable
to address the probable significance of the unavailable
information. Such items include, but are not limited to,
acquisition related expenses, stock-based compensation and other
items not reflective of the company's ongoing operations.
Revenue Excluding Service Fee Revenue represents Total Revenue
less Service Fee Revenue. Total Bowling Center Revenue represents
Total Revenue less Non-Center Related Revenue, Revenue from Closed
Centers (as defined below), and Service Fee Revenue, if applicable.
Same Store Revenue represents Total Revenue less Non-Center Related
Revenue, Revenue from Closed Centers, Service Fee Revenue, if
applicable, and Acquired Revenue. Adjusted EBITDA represents Net
Income (Loss) before Interest Expense, Income Taxes, Depreciation
and Amortization, Share-based Compensation, EBITDA from Closed
Locations, Foreign Currency Exchange Loss (Gain), Asset Disposition
Loss (Gain), Transactional and other advisory costs, changes in the
value of earnouts, and other.
The Company considers Revenue Excluding Service Fee Revenue as
an important financial measure because provides a financial measure
of revenue directly associated with consumer discretionary spending
and Total Bowling Center Revenue as an important financial measure
because it provides a financial measure of revenue directly
associated with bowling center operations. The Company also
considers Same Store Revenue as an important financial measure
because it provides comparable revenue for centers open for the
entire duration of both the current and comparable measurement
periods.
The Company considers Adjusted EBITDA as an important financial
measure because it provides a financial measure of the quality of
the Company’s earnings. Other companies may calculate Adjusted
EBITDA differently than we do, which might limit its usefulness as
a comparative measure. Adjusted EBITDA is used by management in
addition to and in conjunction with the results presented in
accordance with GAAP. We have presented Adjusted EBITDA solely as a
supplemental disclosure because we believe it allows for a more
complete analysis of results of operations and assists investors
and analysts in comparing our operating performance across
reporting periods on a consistent basis by excluding items that we
do not believe are indicative of our core operating performance.
Adjusted EBITDA has limitations as an analytical tool, and you
should not consider it in isolation or as a substitute for analysis
of our results as reported under GAAP. Some of these limitations
are that Adjusted EBITDA:
- do not reflect every expenditure, future requirements for
capital expenditures or contractual commitments;
- do not reflect changes in our working capital needs;
- do not reflect the interest expense, or the amounts necessary
to service interest or principal payments, on our outstanding
debt;
- do not reflect income tax (benefit) expense, and because the
payment of taxes is part of our operations, tax expense is a
necessary element of our costs and ability to operate;
- do not reflect non-cash equity compensation, which will remain
a key element of our overall equity based compensation package;
and
- do not reflect the impact of earnings or charges resulting from
matters we consider not to be indicative of our ongoing
operations.
GAAP Financial Information
Bowlero Corp.
Condensed Consolidated Balance
Sheets
(Amounts in thousands, except
share and per share amounts)
(Unaudited)
March 31,
2024
July 2, 2023
Assets
Current assets:
Cash and cash equivalents
$
212,429
$
195,633
Accounts and notes receivable, net
5,668
3,092
Inventories, net
14,955
11,470
Prepaid expenses and other current
assets
26,723
18,395
Assets held-for-sale
2,069
2,069
Total current assets
261,844
230,659
Property and equipment, net
811,648
697,850
Internal use software, net
24,165
17,914
Operating lease right of use assets
561,655
449,085
Finance lease right of use assets, net
531,985
515,339
Intangible assets, net
97,995
90,986
Goodwill
832,311
753,538
Deferred income tax asset
75,540
73,807
Other assets
34,391
12,096
Total assets
$
3,231,534
$
2,841,274
Liabilities, Temporary Equity and
Stockholders’ (Deficit) Equity
Current liabilities:
Accounts payable and accrued expenses
$
153,810
$
121,226
Current maturities of long-term debt
9,203
9,338
Current obligations of operating lease
liabilities
31,163
23,866
Other current liabilities
9,568
14,281
Total current liabilities
203,744
168,711
Long-term debt, net
1,131,803
1,138,687
Long-term obligations of operating lease
liabilities
559,171
431,295
Long-term obligations of finance lease
liabilities
682,153
652,450
Long-term financing obligations
438,819
9,005
Earnout liability
126,659
112,041
Other long-term liabilities
27,088
25,375
Deferred income tax liabilities
4,321
4,160
Total liabilities
3,173,758
2,541,724
Commitments and Contingencies (Note
10)
March 31,
2024
July 2, 2023
Temporary Equity
Series A preferred stock
$
133,760
$
144,329
Stockholders’ (Deficit) Equity
Class A common stock
9
11
Class B common stock
6
6
Additional paid-in capital
512,621
506,112
Treasury stock, at cost
(349,770
)
(135,401
)
Accumulated deficit
(240,982
)
(219,659
)
Accumulated other comprehensive income
2,132
4,152
Total stockholders’ (deficit) equity
(75,984
)
155,221
Total liabilities, temporary equity and
stockholders’ (deficit) equity
$
3,231,534
$
2,841,274
Bowlero Corp.
Condensed Consolidated Statements
of Operations
(Amounts in thousands)
(Unaudited)
Three Months Ended
Nine Months Ended
March 31,
2024
April 2,
2023
March 31,
2024
April 2,
2023
Revenues
$
337,670
$
315,725
$
870,746
$
819,370
Costs of revenues
225,894
189,304
623,905
534,212
Gross profit
111,776
126,421
246,841
285,158
Operating expenses:
Selling, general and administrative
expenses
39,488
35,891
114,765
102,837
Asset impairment
354
489
409
573
Loss (gain) on sale of assets
657
(192
)
651
(2,170
)
Other operating expense
265
649
5,171
2,625
Total operating expense
40,764
36,837
120,996
103,865
Operating profit
71,012
89,584
125,845
181,293
Other expenses:
Interest expense, net
46,890
29,117
130,575
80,066
Change in fair value of earnout
liability
(8,868
)
87,222
14,541
158,758
Other expense
3
5,986
66
5,356
Total other expense
38,025
122,325
145,182
244,180
Income (loss) before income tax expense
(benefit)
32,987
(32,741
)
(19,337
)
(62,887
)
Income tax expense (benefit)
9,141
(668
)
2,067
1,285
Net income (loss)
$
23,846
$
(32,073
)
$
(21,404
)
$
(64,172
)
Bowlero Corp.
Condensed Consolidated Statements
of Cash Flows
(Amounts in thousands)
(Unaudited)
Three Months Ended
Nine Months Ended
March 31,
2024
April 2, 2023
March 31,
2024
April 2, 2023
Net cash provided by operating
activities
$
76,899
$
92,923
$
148,098
$
208,802
Net cash used in investing activities
(39,294
)
(24,944
)
(285,960
)
(187,949
)
Net cash (used in) provided by financing
activities
(15,451
)
2,838
154,287
7,964
Effect of exchange rate changes on
cash
320
418
371
(9
)
Net increase in cash and cash
equivalents
22,474
71,235
16,796
28,808
Cash and cash equivalents at beginning of
period
189,955
89,809
195,633
132,236
Cash and cash equivalents at end of
period
$
212,429
$
161,044
$
212,429
$
161,044
Balance Sheet and
Liquidity
As of March 31, 2024 and July 2,
2023, our calculation of net debt was as follows:
(in thousands)
March 31,
2024
July 2, 2023
Cash and cash equivalents
$
212,429
$
195,633
Bank debt and loans
1,155,323
1,164,662
Net debt
$
942,894
$
969,029
As of March 31, 2024 and July 2,
2023, our cash on hand and revolving borrowing capacity was as
follows:
(in thousands)
March 31,
2024
July 2, 2023
Cash and cash equivalents
$
212,429
$
195,633
Revolver Capacity
235,000
235,000
Revolver capacity committed to letters of
credit
(15,834
)
(10,386
)
Total cash on hand and revolving borrowing
capacity
$
431,595
$
420,247
GAAP to non-GAAP Reconciliations
FY24 vs. FY19
FY24 vs. FY23
(in thousands)
March 31, 2019
March 31, 2024
April 2, 2023
March 31, 2024
Total Revenue - Reported
$205,023
$337,670
$315,725
$337,670
less: Service Fee Revenue
—
(1,270)
(6,652)
(1,270)
Revenue excluding Service Fee Revenue
$205,023
$336,400
$309,073
$336,400
less: Non-Center Related (including Closed
Centers)
(8,679)
(4,096)
(6,315)
(4,096)
Total Bowling Center Revenue
$196,344
$332,304
$302,758
$332,304
less: Acquired Revenue
(544)
(85,424)
(428)
(36,194)
Same Store Revenue
$195,800
$246,880
$302,330
$296,110
% Year-over-Year
Change
Total Revenue – Reported
64.7%
7.0%
Total Revenue excluding Service Fee
Revenue
64.1%
8.8%
Total Bowling Center Revenue
69.2%
9.8%
Same Store Revenue
26.1%
(2.1)%
Adjusted EBITDA
Reconciliation
Three Months Ended
(in thousands)
March 31, 2024
April 2, 2023
March 31, 2019
Consolidated
Revenue
$337,670
$315,725
$205,023
Net income (loss) - GAAP
23,846
(32,073)
27,432
Net income (loss) margin
7.1%
(10.2)%
13.4%
Adjustments:
Interest expense
49,177
29,117
15,468
Income tax expense (benefit)
9,141
(668)
(291)
Depreciation, amortization and impairment
charges
37,119
29,933
20,490
Share-based compensation
4,143
4,207
847
Closed location EBITDA (1)
2,159
480
588
Foreign currency exchange gain
318
328
5
Asset disposition loss (gain)
657
(192)
2,045
Transactional and other advisory costs
(2)
3,813
8,726
127
Changes in the value of earnouts (3)
(8,868)
87,222
—
Other, net (4)
1,301
508
639
Adjusted EBITDA
$122,806
$127,588
$67,350
Adjusted EBITDA Margin
36.4%
40.4%
32.8%
(1)
The closed location adjustment is
to remove EBITDA for closed locations. Closed locations are those
locations that are closed for a variety of reasons, including
permanent closure, newly acquired or built locations prior to
opening, locations closed for renovation or rebranding and
conversion. If a location is not open on the last day of the
reporting period, it will be considered closed for that reporting
period. If the location is closed on the first day of the reporting
period for permanent closure, the location will be considered
closed for that reporting period.
(2)
The adjustment for transaction
costs and other advisory costs is to remove charges incurred in
connection with any transaction, including mergers, acquisitions,
refinancing, amendment or modification to indebtedness,
dispositions and costs in connection with an initial public
offering, in each case, regardless of whether consummated. Certain
prior year amounts have been reclassified to conform to current
year presentation.
(3)
The adjustment for changes in the
value of earnouts is to remove of the impact of the revaluation of
the earnouts. Changes in the fair value of the earnout liability is
recognized in the statement of operations. Decreases in the
liability will have a favorable impact on the statement of
operations and increases in the liability will have an unfavorable
impact.
(4)
Other includes the following
related to transactions that do not represent ongoing or frequently
recurring activities as part of the Company’s operations: (i)
non-routine expenses, net of recoveries for matters outside the
normal course of business, (ii) costs incurred that have been
expensed associated with obtaining an equity method investment in a
subsidiary of VICI, (iii) severance expense, and (iv) other
individually de minimis expenses. Certain prior year amounts have
been reclassified to conform to current year presentation.
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version on businesswire.com: https://www.businesswire.com/news/home/20240506627478/en/
Bowlero Corp. Investor Relations IR@BowleroCorp.com
Grafico Azioni Bowlero (NYSE:BOWL)
Storico
Da Dic 2024 a Gen 2025
Grafico Azioni Bowlero (NYSE:BOWL)
Storico
Da Gen 2024 a Gen 2025
