![](/cdn/assets/images/search/clock.png)
We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Bowlero Corp | NYSE:BOWL | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-0.03 | -0.23% | 13.20 | 13.25 | 12.7601 | 13.06 | 393,825 | 21:33:48 |
Reiterates FY24 Guidance and Provides 2Q24 Guidance
Bowlero Corp. (NYSE: BOWL) (“Bowlero” or the “Company”), the world’s largest owner and operator of bowling centers, today provided financial results for the first quarter of the 2024 Fiscal Year, which ended on October 1, 2023.
First Quarter Highlights:
“First quarter fiscal year 2024 met our expectations. Because our first quarter is typically our seasonally lowest quarter, we used this time to test a variety of promotions and new bundled pricing structures. This experimentation drove a meaningful reduction in same-store revenue from late July through early September. Based on what we learned, we quickly struck the right balance between mid-week and weekend pricing and got a deeper understanding of our different customer segments. Same-store revenue turned positive in mid-October. We are happy with those results and continue to push forward with our plan to ensure double-digit revenue growth this year,” said Thomas Shannon, Chief Executive Officer and President.
Mr. Shannon continued, “In addition to strong momentum on dynamic pricing, this quarter saw transformational changes to our business. We entered into a partnership with VICI Properties in a sale-leaseback of 38 properties for $432.9 million of value. VICI will be an important partner as we continue our proven capital efficiency model of self-funding bowling center acquisitions through sale-leasebacks. We acquired the Lucky Strike brand and all 14 of Lucky Strike’s centers. We also acquired two premium centers in Scottsdale, with Mavrix and Octane Raceway, and three additional centers. Year to date we have spent $130 million on acquisitions. We remain confident with a robust M&A pipeline, new build activity in marquee markets, accelerated center conversions, and the continued rollout of initiatives to enhance the customer experience and increase wallet share.”
Share Repurchase Program
During the quarter, the Company repurchased 12.1 million shares of Class A common stock, bringing the total common shares acquired under the program to 23.4 million. Pro forma for additional Class A common stock repurchased subsequent to quarter end, the total Class A and Class B shares outstanding as of November 1, 2023 are 151,287,782.
Fiscal Year 2024 and Second Quarter 2024 Guidance
The Company reiterated financial guidance for fiscal year 2024 provided on September 11, 2023. The Company expects Revenue to be up 10% to 15% at the end of fiscal year 2024, excluding the $21 million of Service Fee Revenue from prior year revenue, which equates to $1.14 billion to $1.19 billion of Revenue. Adjusted EBITDA margin is expected to be 32% to 34%, which equates to Adjusted EBITDA of $365 million to $405 million. The Company expects second quarter fiscal year 2024 to have Revenue Excluding Service Fee Revenue of $295 million to $310 million and Adjusted EBITDA of $100 million to $110 million. The Company expects to heavily reinvest in the business in fiscal year 2024, with more than $160 million allocated to acquisitions, $40 million to new builds, and $75 million to conversions.
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 November 7, 2023 in the Events & Presentations section of the Bowlero Investor Relations website at https://ir.bowlerocorp.com/overview/default.aspx.
About Bowlero Corp.
Bowlero is the global leader in bowling entertainment. With approximately 350 bowling centers across North America, Bowlero serves more than 30 million guests each year through a family of brands that includes Bowlero, Lucky Strike and AMF. In 2019, Bowlero acquired the Professional Bowlers Association, the major league of bowling, which boasts thousands of members and millions of fans across 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 second quarter and 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 Centers, Foreign Currency Exchange Loss (Gain), Asset Disposition Loss (Gain), Transactional and other advisory costs, changes in the value of earnouts and warrants and settlement costs, 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:
GAAP Financial Information
Bowlero Corp.
Condensed Consolidated Balance Sheets
(Amounts in thousands, except share and per share amounts)
(Unaudited)
October 1, 2023
July 2, 2023
Assets
Current assets:
Cash and cash equivalents
$
40,088
$
195,633
Accounts and notes receivable, net of allowance for doubtful accounts
4,087
3,092
Inventories, net
13,183
11,470
Prepaid expenses and other current assets
19,393
18,395
Assets held-for-sale
2,069
2,069
Total current assets
78,820
230,659
Property and equipment, net
773,057
697,850
Internal use software, net
20,792
17,914
Operating lease right of use assets, net
550,113
449,085
Finance lease right of use assets, net
540,186
515,339
Intangible assets, net
100,087
90,986
Goodwill
825,522
753,538
Deferred income tax asset
86,237
73,807
Other assets
12,582
12,096
Total assets
$
2,987,396
$
2,841,274
Liabilities, Temporary Equity and Stockholders’ Equity
Current liabilities:
Accounts payable and accrued expenses
$
141,164
$
121,226
Current maturities of long-term debt
9,595
9,338
Current obligations of operating lease liabilities
26,194
23,866
Other current liabilities
16,650
14,281
Total current liabilities
193,603
168,711
Long-term debt, net
1,276,371
1,138,687
Long-term obligations of operating lease liabilities
541,937
431,295
Long-term obligations of financing lease liabilities
678,720
652,450
Earnout liability
71,364
112,041
Other long-term liabilities
35,220
34,380
Deferred income tax liabilities
4,079
4,160
Total liabilities
2,801,294
2,541,724
Commitments and Contingencies
October 1, 2023
July 2, 2023
Temporary Equity
Series A preferred stock
$
144,329
$
144,329
Stockholders’ Equity
Class A common stock
10
11
Class B common stock
6
6
Additional paid-in capital
507,935
506,112
Treasury stock, at cost
(268,063
)
(135,401
)
Accumulated deficit
(201,440
)
(219,659
)
Accumulated other comprehensive income
3,325
4,152
Total stockholders’ equity
41,773
155,221
Total liabilities, temporary equity and stockholders’ equity
$
2,987,396
$
2,841,274
Bowlero Corp.
Condensed Consolidated Statements of Operations
(Amounts in thousands)
(Unaudited)
Three Months Ended
October 1, 2023
October 2, 2022
Revenues
$
227,405
$
230,260
Costs of revenues
182,921
165,202
Gross profit
44,484
65,058
Operating (income) expenses:
Selling, general and administrative expenses
37,765
32,494
Asset impairment
26
84
Gain on sale or disposal of assets
(27
)
(155
)
Other operating expense
1,364
1,362
Total operating expense
39,128
33,785
Operating profit
5,356
31,273
Other (income) expenses:
Interest expense, net
37,449
23,570
Change in fair value of earnout liability
(40,682
)
40,760
Other expense
53
48
Total other (income) expense
(3,180
)
64,378
Income (loss) before income tax (benefit) expense
8,536
(33,105
)
Income tax (benefit) expense
(9,683
)
429
Net income (loss)
$
18,219
$
(33,534
)
Bowlero Corp.
Condensed Consolidated Statements of Cash Flows
(Amounts in thousands)
(Unaudited)
Three Months Ended
October 1, 2023
October 2, 2022
Net cash provided by operating activities
$
16,083
$
35,573
Net cash used in investing activities
(176,576
)
(62,492
)
Net cash provided by financing activities
5,091
5,167
Effect of exchange rate changes on cash
(143
)
(123
)
Net decrease in cash and cash equivalents
(155,545
)
(21,875
)
Cash and cash equivalents at beginning of period
195,633
132,236
Cash and cash equivalents at end of period
$
40,088
$
110,361
GAAP to non-GAAP Reconciliations
FY24 vs. FY20
FY24 vs. FY23
(in thousands)
September 29, 2019
October 1, 2023
October 2, 2022
October 1, 2023
Total Revenue - Reported
$
148,570
$
227,405
$
230,260
$
227,405
less: Service Fee Revenue
—
(1,556
)
(4,975
)
(1,556
)
Revenue excluding Service Fee Revenue
$
148,570
$
225,849
$
225,285
$
225,849
less: Non-Center Related (including Closed Centers)
(5,693
)
(7,419
)
(5,245
)
(7,419
)
Total Bowling Center Revenue
$
142,877
$
218,430
$
220,040
$
218,430
less: Acquired Revenue
(541
)
(37,497
)
(347
)
(10,784
)
Same Store Revenue
$
142,336
$
180,933
$
219,693
$
207,646
% Year-over-Year Change
Total Revenue – Reported
53.1
%
(1.2
)%
Total Revenue excluding Service Fee Revenue
52.0
%
0.3
%
Total Bowling Center Revenue
52.9
%
(0.7
)%
Same Store Revenue
27.1
%
(5.5
)%
Adjusted EBITDA Reconciliation
Three Months Ended
(in thousands)
October 1, 2023
October 2, 2022
September 29, 2019
Consolidated
Revenue
$
227,405
$
230,260
$
148,570
Net income (loss) - GAAP
18,219
(33,534
)
(19,719
)
Net income (loss) margin
8.0
%
(14.6
)%
(13.3
)%
Adjustments:
Interest expense
39,032
23,570
19,665
Income tax (benefit) expense
(9,683
)
429
153
Depreciation, amortization and impairment charges
32,026
26,351
21,102
Share-based compensation
1,911
3,648
869
Closed center EBITDA (1)
2,462
379
1,116
Foreign currency exchange loss (gain)
79
(71
)
—
Asset disposition gain
(27
)
(155
)
66
Transactional and other advisory costs (2)
8,398
4,166
1,308
Changes in the value of earnouts (3)
(40,682
)
40,760
—
Other, net (4)
399
(234
)
371
Adjusted EBITDA
$
52,134
$
65,309
$
24,931
Adjusted EBITDA Margin
22.9
%
28.4
%
16.8
%
View source version on businesswire.com: https://www.businesswire.com/news/home/20231107461461/en/
Bowlero Corp. Investor Relations IRSupport@BowleroCorp.com
1 Year Bowlero Chart |
1 Month Bowlero Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions