Earnings call transcript Q4 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings and welcome to the Bowlero Corp’s Fourth Quarter and Full Year 2023 Conference Call. It is now my pleasure to hand the call over to Bobby Lavan of Bowlero. Please go ahead.

Bobby Lavan

Good morning to everyone on this call. This is Bobby Lavan, Bowlero’s Chief Financial Officer. call our conference earnings. quarter our to to fourth discuss XXXX Welcome morning release ending the press issued July our XXXX. This a for announcing we financial results X, period investor press ir.bowlerocorp.com. available of website release copy of our the in A the relations section at is

the are Tom on Executive, Founder, Shannon, Chief Bowlero’s, today Jeff and President, Gliner, call Operating me our Chief Joining and Officer.

not you statements guarantees call, we forward-looking certain forward-looking about I therefore company's not conference statements future one would may place on of today's are like performance, and undue that during to them. Such the remind performance. should make reliance

Forward-looking statements differ that materially to risks to could expressed. those and are uncertainties also subject from results cause actual inherent

our statements could the to factors information For company's forward-looking actual contained additional you in that the cause the contained press factors should filing as in refer well to with release, as SEC. differ our cautionary results the concerning in statements, risk from discussed those

company's statements update undertakes no measures in each Also, and call, each comparable most the Corporation Bowlero financial measure website. GAAP discuss financial after differences non-GAAP comparable the the SEC today's measures defined found Regulation company that certain discussed The during by forward-looking obligation events G. call. directly today's as the non-GAAP may be revise financial the GAAP on or or the circumstances are of measure reconciliation to between financial financial occur non-GAAP can any to measure to reflect

to the I'll over call Tom. now turn

Thomas Shannon

with time, XXXX. revenue $X year center New for of us crossed for Good Bowlero president Thomas company. Bowlero Shannon, milestone bowling morning I'm billion the Founder, in today. started and joining in of we This the first for City you CEO a Corp. York past and thank one

will XXX portfolio. to the approximately acquisition centers in an add brand Lucky have bowling our and iconic September, we of Strike With

which states be Strike add our Lucky we With a acquisition, will XX Hawaii which in the the operate. portfolio, in to will we center

Our never clearer. been path has to growth

We events country. leader entertainment and redefine global not across open of industry. in bowling league continue a and make but premier entertainment family the us the to also company, the location-based play bowling Bowlero's combination only

have We for signed, under continue Bowlero Markets of for currently and four and construction we to attractive locations. already leases those in new seven builds locations Marquee identify new

Our $XX.X Mall in weekend. newest past San in end in California And of Properties this -- the center location Valley August, Octane at million. the the the acquired Westfield Fair a in we Mavrix premier Arizona for open and in Scottsdale, co-located Jose,

to of totaling price month, We approximately revenues. in three $XXX more adding $XXX million Lucky's next annualized expected close including the Strike, purchase acquisitions have more million than and of

and come portfolio Two estate of sources. real the with potential augmenting acquisitions asset sale leaseback funding our

Our plus fiscal comp year-over-year, sales XX.X%. XX.X% plus same-store was year

innovate we Q&A the with a sales the portion business in on year-over-year. swiftly quarter for We slowdown signs of ourselves earnings last to mentioned for retail softening to quarter perpetual the As a year in ‘XX quarter fourth early call, we our X.X% saw negative same-store the increased Nevertheless, of of optimizers total reacted revenue of X.X%. the as consumer and offerings. that fiscal view

past game incremental playing in priority of encourage demand high card or complimentary ancillary called for and a bundled arcade. receive with post-COVID center June, offering food to we in few sell. our and the associates longer this, spending. a prepay no made address encourage to guests allows high buying discounted providers of service To guests order to arcade $X a which it or our centers to Special, a us make most years game our price launched The for requirement example, a at the to in third takers margins bowl, in third our business The stay

XX% with test a thousands new this seeing combinations. of to rate continue plus are AB hundreds offering transactions We over and of take

pitcher of nearing size. extra pizza while promotional the are rolled a discounted We out these These that Early special providing is very we average is up period and of deeply time. short ticket weeks, a value past programs sales pulled X%. results improving million three number nights. consumers games on specials Over and show in dollars a added bold in back

can over we realized Tuesdays strike greater $X promotions. we on However, cult on late-night too all have the and months, midweek was expected. hard past than you pulled back bowl following few The night

results those late we've reinstating of be and Tuesday, summer almost the in So, days and Monday, seen immediately. programs digits are slow Friday off double

and year result consumers become star may year over but still fiscal provide in customers will experimentation were often. brightest want we sales fiscal year, more XX% return confident and in who year XX% who ‘XX Consumer happier alternatives. out Event in up value go the be to ‘XX. few to has The past XX% expensive up up dropping, and business ‘XX over ‘XX, customers I'm will fiscal spend our more years events. been more fiscal loyal better year over discretionary over in year

of affordable conference prior a in are In of to companies for year, provide week. a we Last world in We're businesses a single ‘XX, room Christmas, way. is our there solutions week our million event go season. fiscal to now, Right robust of still $XX team we up booked Vegas events, more in In year their having together holiday associates. team costs, to than bringing we cutting booked sales Las sales bowling $XXX where for with sales the invest national I'm in gearing sales a a in here. event XXX very than more million and growing with people

X% and category. are over up has in fourth accelerated level. from this year We was quarter business recently that event significant year the Our in there upside believe

getting is analytical day. and Bowlero more every insightful

a to the compound self-funded will long us growth by established our top-line in business have We fueled that flywheel enable over term investment.

level, highly sustainable a reinvest offers attractive centers. conversions, the in resulting and on source experience, levels, us customer a center and generation we new cash building return more of existing the flow With including acquisitions, at flow continue cash capital in at additional centers our flywheel. focus will free use momentum to unit to business enhancing the that high Our in our ultimately grow

this Given in double down have on to made fiscal beyond. decision deliberate business dynamic, strong XXXX, fiscal in investment the for growth in our XXXX we us and year positioning year

financial like now for Bobby? financial quarter would and our the the for Bobby to guidance the upcoming year Lavan fiscal review I offer to call over turn to and results year.

Bobby Lavan

revenue revenue Tom. million, and million we you, Happy generated XX.X% Thank margin. total to of here. adjusted Last a year, $XXX.X million we In EBITDA the of fourth $XX.X reported $XXX.X quarter, reflecting of be adjusted million EBITDA shifts fiscal quarter in calendar in of of XX.X in related revenue of EBITDA week the XXXX. Fourth out XXrd and $XX.X million. quarter the year, totaled period last service fourth

to plus to center a revenue year was FY Service ’XX. pass-through million were Excluding these required bowling year. impacts, over that book as X.X% total revenue, employees we revenue was $XX.X in

in You to ‘XX. low few millions should that FY expect be

Additionally, $X of million revenue quarter charges in we period out bottom the that of took the flowed line adjustment. to for

significant and by growth center basis, a grew million walk-in or and EBITDA reported $XXX $X.XX most record grew in revenue quarters, tournaments year second On seasonally and margin. million and offset decline the the XX.X% billion, total was retail. reached in a to revenue XX.X% leagues the third relative Same-store a XX.X%. we at revenue events, by recent fiscal year At prior in $XXX saw level, quarter, adjusted

proving associates raised fourth talent is the center-level ‘XX. $X in to quarter and This In experiences invest and consumer FY $X we a will our million headwind in of enhanced centers also the us bar incremental at people culture retain sales talent to better better our wages $XX effective, and of million quarter, cost wages means to raise and environment. million be the

generate offset We'll saves industry-leading cost general, at flow with unmatched we centers. and cash post-COVID free continue at conversion corporate margins at removing and the In these XX%. some excesses to

For our the The in we underpinned and from robust deferrals. as of cash CapEx fiscal $XXX is cash by roughly available the on revolver. $XXX undrawn on quarter generated over elevated reinvestment sheet COVID finished liquidity capacity balance maintenance company million million $XXX growth for million the flow of year and with

our our story cost and estate, capital cash runway business. funding X% X% of of continued of looking of a We of to to flow, XX% our real long-term including long and a at evaluate the quality sources, versus lower-cost model unique the plus unencumbered trajectory underpins returns

Looking billion of to ahead equates be in fee, terms to total XX% of revenue. the fiscal which $X.XX service $XX year XXXX, billion excluding revenue we expect to $X.XX XX%, to million up

Same-store revenue growth from be FY from we ‘XX ‘XX. XX% and plus comp come flattish XX.X% as plus FY through, will

our promotions debt quarter, third revenue down the the and flat XQ, X% reactivate the are are and Note summer performance We August of important quarter material month, mentioned. expected, July the course rev it. over over but -- very so total time we reported to comp promotions to expect as the ‘XX we year to same-store second in non-peak Tom and tracking late it impact we year with than that addressing year did more quarter, the improve less

XX% in EBITDA We adjusted expect ‘XX. to margin to XX% be FY

for capital, $XX and We have which track a anticipate $XXX million Multi-Pronged new the year, to than conversions. returns. to unlevered have all runway records more producing we long strong allocating addition opportunities a M&A builds for of least million $XX of at In to plus of XX% next with deploy reinvestment strategy in million

to that location. For those a project to conversion the story an transforms a newer upscale multi-phase is experiential center

of we strategy Xth, the more increase XX fully to over by We authorized ‘XX earnings Board million XXth, reduced continued $XXX million. May reinvestment our evaluating million our retiring Directors on buyback third are have X% share call shares Strike approximately In an of Lucky into past company's leaning of on support repurchased the diluted $XXX We XXXX, September quarter count in year. the share brand this Since also come. shares.

and shareholder capital as offering In B, we operating these strategy We continue exciting several are share price and innovate. new Nevertheless, at A, returns part continue fundamental and believe conversion C, driving evaluate and ethos. closing, of underway returns, to our in levels. to build, we our have initiatives evolve particularly acquisition, to continuing or through

Tom trajectory. remain highlighted, As growth our we long-term about enthusiastic

time to it up months. you to on Operator. open road coming We'll your for forward and Thank now we in seeing the look Q&A. you

Operator

your question. Please Boss with [Operator question comes of JP Instructions] Our from Morgan. the first Matthew proceed line with

Matthew Boss

thanks. Great,

demand we could the of to improvement seen the for So, your event traffic pricing, just as FY speak as progression relative in conversions across since what what on Tom, Maybe maybe April? comp well you then retail, traffic trends as outlook, walk-in about elaborate baked and to year have segment you relative as think you've group and to progresses? ‘XX

Thomas Shannon

for Hey question. the Matt, thanks

Bobby, over answer. to a he's because turn to this able give detailed me Let more

Bobby Lavan

Hey, Matt.

up back picked summer, promotional the -- June, activity strong So, one into kind in on got pullback our was April of traffic. in weak, traffic of XQ we doldrums actually the from as July hit in started but and the

low of digits. Sort mid-single say would -- I

stuff, the If summer and about of that those the kind think you week promotions, just the higher our heavy it's revenue, in promotion all happens of but can during you XX% XX% turn off. to is month, we like

those businesses so significantly. down are And

them turned We've week. back this on

From So, is we which X%, first up value. comp a of the is take we effectively increase. quarter, minus be But to delivers the sort consumer quarter. think in the third then second It's expect pricing and the quarter out a special price bundle, quarter, in that the in price. I It's events. down to do the flatten it retail expect perspective, silent be fourth a about to proving up

getting but single price, days digit ultimately, behind increases to mid of high us. some the we are So, are price

in quarter. out third our quarter second flattening So, is it's and event now and traffic the a right having focus strong

Matthew Boss

Great. ‘XX then follow characterize Bobby, release as And as just an year. maybe the so FY you investment up, a in

across side elaborate there's a think beverage to investments If anything relative is staffing obviously then the maybe the in other acquisition. needed costs, So, is you labor of there on it that and way food P&L? and are to the all

million guidance for So, acquisition. the $XXX

XX months. expectations visibility the out pipeline growth, center over and the If you for parse next unit your just could new to

Bobby Lavan

a Yes, we'll that but investment into did million capital an year, investment employees, put $XX from year. so it's cost save. We with offset

we're So, of a the ‘XX. million on of this do XX balance conversions, plus perspective, in FY line to $XXX FY ‘XX, of we going on is could an spend really M&A side. more. sheet From In sight at we we more have least M&A, million $XX

perspective. incremental investment focus sort the that's from focused margin. driving profitability the So on of for an us We're in really

So, investment, it's capital investments. not expense it's

Operator

Our next Wieczynski line question Steve proceed comes question. Please with through with of Stifel. your

Steven Wieczynski

Hi, guys. Good morning.

growth reinvesting year on how guys same-store analog you operating like that think of past, mid-single out of as environment, that kind Tom, kind move laid deck your to same-store metric that But digit, so kind of about fair pretty morning. normalized, that we ‘XX you have in as seems So, slide think five this talked forward metric, this out in the a business into we aggressively low and more the you guys in and about sales to same as sales you growth in about would and beyond? look and

Thomas Shannon

we Well the get was centers a regard retain really slow-down so there sort turnover And investment really the in it's to our reinvestment was look, worked with to well candidate to taken and the are We've that in outlook. seen a work labor accomplished talent. better of best and forward of mission point the right? said, operating That incremental is we've as very spend. growth, and really So, tremendously.

greater over Let it there. me detail into turn go to Bobby to

Bobby Lavan

Yeah.

about it's sort and It's a up comp, conversions. If happens you two really then step from think price it's of that our parts.

you more we So, -- use, $XX and we've goes kitchens, so, [indiscernible] attachment shown the million should consumer, want to million do, if drives to top just special, the better is is the bottom we going to on the The which better metric that on the we're conversions, focusing from get comp. works we spend heavily plus we more want bowling. the whatever to line $XX really get and the to right? to selling money get which close that And line

not mid-single-digit necessarily long-term the on volume, we it's comp, But experience. a at ultimately, and really are increasing it's based right? attachment, price, consumer So

Steven Wieczynski

Bobby how moving excess you of you remarks your use land or prepared guys, plan both Tom in guys that some land forward. type potentially then of And or comment you both excess your to made towards and of

doing bit, a road to a bit that sounds little in like something robust holding. real way down a us of with probably your good more that So, you're long terms estate

guys bit those you what wondering, say, can comments. little maybe a just So, more around

Thomas Shannon

Yeah, we're recently we properties and actually with announced bringing XX more have unencumbered in two acquisitions.

at to for the lower-cost opportunities can but So, look funding if hit we're look now, going debt below get right of that, to can market Like for something X%, we we always we X.X%, sort sources. will.

Operator

from line your Please Our Greenblatt Garrett with next with comes question of question. Jefferies. proceed

Garrett Greenblatt

acquisition about Thanks stuff, given in health on the of wondering how and my was I for the taking you if rates are you follow-up thinking pipeline environment question. interest just to that? the the acquisition all current

Thomas Shannon

property year. or business And this another XX there's Michigan $XX the two never been the in let's closed well, Plan. This it's acquiring That we Phoenix could in that week Octane, today, one close better. a million. behind is XX from we're more And pipeline, say, close Closing month then doing million in next by marquee to Mavrix, pipeline co-located revenue we've a then over and we should And fiscal the Lucky dozen I'd two. that say, announced it. is Well, month, almost which property, in was bought of $XX the far. date Strike best when

seven under now, four six negotiation. to various As another those construction signed I of leases stages of in probably seven mentioned,

we've pipeline, So, the an of extremely seen. one it's healthy ever robust and best

Garrett Greenblatt

And I you a the seeing with Great. give MoneyBowl. [indiscernible] just if engagement call could wonder on Bowlero you're

Bobby Lavan

MoneyBowl, those pushing on centers, Yeah. in centers. I we're is it mean, in XX still

customer acquisition implementing a are in tool MoneyBowl. We

XX XX, people bucks the want to effectively in center. see to And can go spend we we so, bring

of so, the think evolution. I next sort And that's

we You website. know, our at are the same time, updating

generate So, with website from the be exciting ‘XX, consumer. and integrates going incremental MoneyBowl, demand we'll very have in early new that that's a to to in

Garrett Greenblatt

Thank Good. you.

Operator

Please your line question. of Our Zaffino with next with from Ian proceed Oppenheimer. question comes

Ian Zaffino

a M&A can bucketing you to between, and think some do know very to from you I EBITDA, best getting or it then as you you organic, know bridge you're Thank on guys. you maybe guidance? I conversions, far could you ‘XX make. Bobby, you can give ‘XX don't how what if as from much. us there's Hey, might Hi or the get investment want

So out? numbers, but can just have don't you exact to Thanks. us that'd but be direction, by need offset, an help I

Bobby Lavan

right? year Yeah, mean, million you've more Lucky XX% a margin. And than got going this next we that mean, Octane. bit XX% Both got at, year revenue those a it's EBITDA, I we're be so, complicated through are of $XXX flows of like M&A, to Strike, that XX%, And did I you've Mavrix, growth. part little big of it.

the You, M&A throughout know, saying significant of centers are and we'll the have, centers for we is acquired a the ultimately ‘XX. an centers, basis, organic think FY us, that from it's, you be flow our game from and growth we But flat. we though, through will pretty the straightforward core year acquired that then

Ian Zaffino

Thank maybe going are the M&A, Are opportunities? And then, to what if sort holistic one Thanks. other much. Perfect. could is pure forward? interest, you year? be of a it us Maybe thinking expect should how for more, we going if about just I next in cash very what Okay. looking squeeze going you in you sneak I be Thanks. are bowling? could M&A on Bobby doing. kind of And guys we of, give description for like to

Bobby Lavan

the And on XXX in I there take to build probably viable I'll candidates M&A the XXX part. bowling the are opportunities US. front. to mean, acquisition

don't and out made courtyard. a Octane in People expand one a deal two Mavericks beyond it plans we was Scottsdale. bowling. of have shared any with big So, Octane to were acquisition the buildings business, current co-located in

like new. wasn't moving whole we it something into were So, hog

the I business. Octane that that, came line bowling's lately may great bullish we seen in be makes acquisition the but to time number, our that us for was things learn it the a a weakness that comp that and And we we in in did regrets we've largely driven going product to very that things long learned extensions, the have year the Now, come. frankly, the And, some company because on are no power of part slowest that experimentation. by

spend have our We're We in retail the actually products selling from is Incremental specials. for food powerful. company's the very special first basis. history on time now the a

in we As that strong. $XXX add of as order as going continues to just much order. That million mentioned, that's couple announced is of to closing be business very to of stuff over might and of million we're years, next revenue a there short be in the business the event a million the think and on dollars $XXX hundred from upside

the So, very couple peers, than has the feel profitable months. be business, proven resilient bowling much our to is over that business more a bullish. very, certainly we extremely And of last very

So, other we've from every We've the return a perspective. never perspective, margin business in looked space. one a entertainment perspective, that we at stability from from a found liked

And saying so way no that's a beyond bullish of with bowling, extremely long really remain it. to on move we plans

Thomas Shannon

expense XXX. interest And is

Operator

question Our proceed of Jason next Tilchan line from with your Canaccord comes Genuity. Please question. with

Jason Tilchan

some plan investments lot lot You a the you curious, ‘XX. I'm contemplate capital marketing back of talked bundled and getting additional demand stimulating recent about budget have fiscal just for strategies impacted view of digital a few of this or traffic as the the year, how either you the in of offerings past also demand over uptake the some how and Thanks. months.

Thomas Shannon

always business a we've captive Yes, walk-in. is very viewed, our

names evaluating the to and are a investing we some We Strike. in Lucky website are center's changing

probably invest outright customer seen we the place the up more double-triple going go in So, we've profitable. us very change could only return. potentially little to don't a see just, bit we marketing. you're budgeted Like if acquisition that marketing. The is We that, website but is never dollars we'll ramp I think probably

Jason Tilchan

can you. country, on in the trends any and one different since also Thank during Is just And trends across and share in helpful. QX That's both demand traffic there how varied the Great. period then? you color follow-up. regions

Thomas Shannon

Midwest, would you Midwest, the the is look highest in say was if pretty I strong. was region. Yes, which weakest the at The it, requirement northeast probably our probably was promotional

central And the from few little promotions. to the weakness We in so, months. did responds of past see Northeast promotions, heat to responds bit less a more

environment. where means heat mostly So, don't in business people a much in just there central heavy promotional it's heat weakness the for business, go was But really is our too okay our outside.

Jason Tilchan

you, Thank much. Great. very

Operator

next your comes with Moore Daniel Our CJS from of with question Please line proceed question. Securities.

Daniel Moore

about maybe very mine of on cadence ‘XX. Most been QX a helpful. have as but we answered, bit little more guide, fiscal think detail

back expect QX, In same-store flattish would at year, would down margins half getting to remain basis. helpful. an through the and a kind them the of there as on terms of then Thanks. similarly improvement on Any to sales, and we slightly you perhaps color look EBITDA of be the cadence year-over-year

Thomas Shannon

for the quarter, minus Yes, quarter. the first be up in third then in so quarter fourth and flattish second should it's, and five

EBITDA margin, like to follow. relates the year I last it would cadence the As is from one

much fourth -- high and in and the So, it's now and higher about we'll so obviously, incremental, And we that, in XX%, feel and the a margins for EBITDA second quarter we've that's have to do XX% we quarter. than given forward. range we the have third first it's good going and

Daniel Moore

you, helpful. Very Thank again.

Operator

Our from Wold Riley. with B. Eric line next question comes of

Eric Wold

Thanks, good morning.

that couple Strike those? what a structurally, plans some rebranding to leading mentioned us and operationally first Strike I or brand. you acquired as much how about you centers centers needs existing for are the terms into change the either remind So, of Lucky times in off, within potential of guess Lucky

make it? or center change Lucky is over to happen existing that needs determination whether in do be of new center, branding what a more build name what to around if and a Strike. switched within then you would on And really it the terms makes then of that And

Thomas Shannon

is locations. Strike have are unique Lucky portfolio the So, of in in their marquee that they of kind centers most really

L.A. side Denver Washington, center Live, Seattle, of on Bellevue, -- which important Downtown Downtown Hollywood, is Downtown Boston, right So, Chicago, Philly. Downtown tech

it's it, assets an set irreplaceable of So, really

a challenged tired. very financially properties reinvestment lot the of been capital, they long and has haven't for Now the Lucky a Strike so had time sort of are

fix. refreshing that They're capital significant way but impaired. meaningfully got we've an easy properties, in they're So, no we've budget the to allocated just that's tired-looking, a so

that Lucky Bowlero. more back sort we've Strike -- well. Nielsen as do of hired the than brand to came that powerful and was meaningfully intuitive brand sense And done they said study and our a was We've

going we're open of and so, And sort the goes. see brand couple that Strike Lucky centers a of to new under how

eventually right, out when the all intuitive as Bowlero, it, everyone Boleros but we Certainly, have sense Lucky Now, or certainly all then I after rebranding least a to I'm we'll we've to That's as spoken whether but have I as predicting thinks than, got not new a center, come so, the a it, a builds Lucky brand as it of you wouldn't that it's online do as lift. to not strikes. hard at open it think think, that, new strong Strikes. lucky would've rule is would the better says I'm Lucky did tell saying we're, our we're if well. then Strike I sense And better. a Strike

And that roll we're to so, happy out.

Eric Wold

on staffing the a The or question the of training not need in-lane kind kind the been Any any focused and around -- with QX engagement seen that's progressing for have or some of train well going you've On you given there? the if in of ordering call, updates size staff noted improvements follow-up how check you maybe as and kiosks, centers them.

Thomas Shannon

that's the creating selling what talking been we've Well, about and of parcel I with think culture. part

being the was, were from they kiosks the but basically because is we're So, unrelated addressing. the -- and staff not weren't that kiosks using fact was adequately sold the problem key to specifically, the that taught people

important has a it's listeners how and to special, understand I a think, been. with special out started for we just so, successful And

of proposition, with $X.X, which was people full simple a started a per that because bowled out data very suggested $X.X games visit. third our we So, all game

$X for even And we'll On the days demand on time and card. of XX%. and hundreds we've $X because a and even you arcade a been in and sell higher of north $X prepay centers, hot certain $X transactions. over third it's So, than give game The it over we'll you some hundreds take that $X so raised that was to for XX%. has thousands rate of special

no culture selling successful to where selling a was tremendously a gone So, where on we've there is from there going results. culture and

weeks We And and of broadened arcade we of topping and topping which upsell specials, that two and a the pitcher one to pizza a a ago, call pizza three pizza with Up. pitcher Power an actually special, pitcher a the one beer. is or soda with then

order, And domestic an did then pizza slowest first short from, part from of dollars three year. there'll on In a in the be we start, and imported million to pitcher on over weeks a beer upsell premium. in the the the standing

So, we've a selling think literally request gone will with have came that business. which have they really takers basis the building we're from process And have would order impact the a long cultural in we employees a strong now very and when fairly to a on the I that culture. term on meaningful could

Eric Wold

you. helpful, Very thank

Operator

from Jeremy comes line Our next Please question question. with Hamblin of Craig-Hallum. proceed with your

Jeremy Hamblin

what's your included Thanks. just And some congrats in the acquisition for on guidance in the, a strong start year the by getting could last if clarification I year. Wanted year. to for see

thus that noted haven't little that, run would that deals have far. your million rates, you closed or but So, you bit the acquisition higher a annualized closing than hundred a biggest

first You're, nearly done with quarter. the

I than, $XX full-year business? million the you versus guidance. But to the or could the clarify baseline my that is contribute acquired that included couldn't billion, $X.XX to even Bobby, more kind see to organic million $XX within wanted you if you business assumption how of $X.XX that, billion is legacy So, much if of just

Bobby Lavan

is at is its August. end and Those guidance closed conversion’s our the plus kind business the of next M&A, some are of week, biggest Mavrix Octane of year. the flat, Lucky organic acquisitions. Yeah, closes the the two kind of towards end of all

So that's really the fuel and the fire guidance. of the

Jeremy Hamblin

Okay.

of being included on Strikes that range Lucky what So is and full not for year? a portion specific the

Bobby Lavan

quarters three it's business Lucky remember our events be, in second of the mean, and Strike, to you I Strike very like going third quarter. Yeah, Lucky heavy is and

Jeremy Hamblin

Strike performing? in the as in kind have down Lucky then terms a performing Lucky centers mid-single-digit comps, running centers So, And Strike this in the how Great. low how if fallen into guys environment? to, are you of are range, follow-up, down of this single-digit

Thomas Shannon

it's mean, I Yes, similar…

Jeremy Hamblin

talked about you've about the happens a you've how into perform? questions business softer last lot environment. reflected consumer we if quarter. I And as Tom, Okay. can that thing the XX% you're you've does go you what margins a maybe assumption And had out gross of if then degradation you how you have is quarter the in know is my recession, saw And to significantly. much out here noted same see going as pretty SG&A, in down take of some September of the that your you've June

SG&A XX% of savings, if gross of us how within But, that degradation kind expected advisory of split give to Bobby you color versus this to then and thinking wanted is just of costs that transactional how EBITDA for guide, you the on I are your margin much the guidance? performance in included your are year. about some what could kind XX% see margin the

Thomas Shannon

you. Thank

So, are cost cost implementing significant perspective, from we saves. a

there buckets, at I the centers. kind So, two primary are call what of would our excesses

had we're the what security. post-COVID So, That on of sort have a overspending was excess consultants. They sort huge centers one. would of call I

can bring at this And center. we is the so, kind of money in

going AV. people the costs who people are so install These who ramped we, and do are been pull those just have to the back. these Like we're So, maintenance. up

it's to lot a there's to costs, IT, lot going insurance, different of are time, but of there's cut corporate, of it's whether some same whether opportunities the a we opportunities At that. reinvest at

spades. $XX about itself quarters we for one raised have That just talked few So, call annualized wages on It will to through. at the is million we in flow takes centers, on basis. a pay about the

but think end you're you'll at see the up revenue. see to flat, sequentially going I the day, go with gross margin of So, SG&A

Operator

proceed Handler Our with your with question line Please ROTH comes next Eric from of question. MKM.

Eric Handler

that upgrade? then asked. technical of the outlook But And centers something was already I the year? left are spending how suggest, total amount money CapEx how in that glitch your is I'm hopefully you're asking in had so not of a actually to terms portfolio for centers little on this and what many upgrades, does earlier, many

Thomas Shannon

make So, decisions to to about XXX XXX to conscious Like, not full upgrade still there's on upgrade. centers or houses. we league whether

should elevated, M&A, million that CapEx won't sort does as see and like still million. but replenish sort which cap, the lead runway, how strings a total put you do maintenance two CapEx. pipeline. Conversions a investment of bit that but CapEx, buckets $XX you look There's little total us be of million. is a of $XX about corporate So, From ‘XX. about our of, of $XXX into should in There's million, $XX And are CapEx. still long we perspective, those at today, kind that's pin there's primary are about

Operator

Markets. next Our from line your with Michael question comes with Capital Noble Please question. Kupinski of proceed

Michael Kupinski

for you Thank question. my taking

just are of one quick terms that that bit across a you're of of Obviously, patterns, there's I the wondering the affecting that country, resurgence traffic macroeconomic just in the in is current increase and seeing they a are Just was been your patterns? little it here. trends reflective traffic COVID or more

Thomas Shannon

when Yeah, that the I say flat will on for we versus at double the it retail COVID, haven't traffic basis, traffic, promotional we the traffic activity seen any on is look day-to-day a division. is full-time down

vacation with bit. shoots little of back. pulled pulling But are really beneficiary we back particularly is. actually Like the have We a back have on leagues people hard. we about and consumer, pretty feeling we're everyone. a good in think has green too we're happening. getting August impacted come ultimately, It promotions events So, actually everybody the obviously, More taking the more

Bobby Lavan

mentioned, we fall, a bundle. prices add, eliminated leagues effectively of there reduction. We the we that we all price promotions, me going big and with some takeaway in of the we raised we an discounted raised those was very deeply raised Let on events, that Where businesses saw is interesting haven't and into prices the the increased. nights, that

And have a of is price sensitivity. we range terms customers that in wide that of from very the takeaway so,

interested than you very the a That on bowl a the primetime really can less price are of night the we realized. much all cheap people tremendous right? insight, for in So that perhaps Tuesday is example. off customer a retail, But walk-in some week, night, sensitive

part powerful. the these took cost so, of very, And And our them the slowest of insights year. we in are very we them, learning took

three everyone the So, summer, ago the a out weakness a were of when were given through months it traveled of strip elimination what and embarked certainly we process. know, on the peers which we're we flat now we if actually respectable and you the of of results promotions and people were know the the that all see general than smarter impact our hell consumer, we seems effectively lot again, the in pretty that this like

the promotionally the consumers interesting we insight, have least So, in coast, really a the all. the down had most at where where by far on focused the we were weren't down Midwest, we most, really we and

the lot an I'll of have consumer we months. that. couple last so, in about And say behavior learned awful

Operator

you. Thank

time. comments. for now We turn this floor to back management over would the closing to no questions further I have at like

Bobby Lavan

Thanks, talking to you to everyone. We forward look soon.

Operator

this today's and Ladies teleconference. does gentlemen, conclude

wonderful your this you a disconnect time. day. your participation may You lines for and Thank have at

Lucky Strike Entertainment (LUCK) 11 Sep 232023 Q4 Earnings call transcript