BOWL - Earnings call 1 2024 | Lucky Strike Entertainment Corporation

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Operator

Greetings, and welcome to Bowlero First Quarter Fiscal Year 2024 Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your holds and turn the call over to Bobby Lavan, of Bowlero. Please go ahead, sir.

Robert Lavan

Thanks, operator. on everyone to morning the call. Good Bobby is Lavan, Bowlero's Officer. Financial Chief This to discuss XXXX to conference first Welcome call year our our quarter fiscal earnings. results issued announcing October we press XXXX. for financial X, morning, ended the This period a our release available A Relations the section release Investor website. in copy our press of the is of

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

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

non-GAAP and over found most its call each measure directly financial financial may by non-GAAP directly turn differences GAAP discuss the SEC. factors results the to company's measures the as on press on cause in well be between as each could discussed financial those the information our website. call. to non-GAAP from risk no measure defined Tom. circumstances to statements forward-looking contained additional comparable statements, during should company's revise actual call, in measures GAAP our release contained occur in obligation that today's reconciliation events can of the .I'll and as For with factors certain update discussed you SEC those a today's to company The forward-looking G. the differ most cautionary after reflect statements refer Bowlero that Regulation comparable that to or to certain undertakes financial Also are financial measure now or any the filings

Thomas Shannon

us Good Bowlero morning, CEO and President and you Shannon, of Founder, Corporation. joining today. I Thomas for am thank

and sales quarter in-center optimize XXXX journey building fiscal a proactively expectations. seasonally our in pricing, selling of our XXX the by to centers began cross dynamic quarter fleet. slow during culture worked met We hard first the First

in jump my want I associates our centers. prepared the XX,XXX I Before into remarks, to thank

of then began to a same-store one-size-fits-all simplify week comp we third opportunities. removed for first gift the and period. was To July, sales Games, program building The program, our $X that a a with tinker started game price providing upsell find sales with in positive. culture, worth upselling $X revenue $X and of card. the million bowing Summer a was at least We of family We

You Saturday. times changes share Can We drivers. All that and The wallet Bowl were also of drove Friday pulled premium our in midweek traffic fixed-price specials pickup

all as this life, And runs days that Bowlero midweek the love week serving we down Day, dramatically Monday not offer. that worse. Thursday in of same-store And did with had I our reversed October, of positive. dynamic is the returned a Labor classes second like being midweek. different. to business to comp However, on that customer you for By our learned when I double course was We customers. pricing consumers through comp digits X serve something from looking built all nationally have everyone week, a

they We fill they are customers our to continuing want. lanes this what want journey provide and our when

consumers a have entertain Bowl they to week their All Can price family. the Some want during fixed where You

Customers and their to pay we entertained schedule. On a than a different want to have is out deliver. as subset the be of for weekends, years, And consumers we value in on will the to restaurant a so willing night better done more continue movie. XX selling a

dollars pricing, with our XXXX, tempering our quarter saw with XX%, price first year the over that we XX% and first optimize we first is will and quarter, learned XX% up We and is come. up efforts. lot, a into but help comp will only XXXX. continue our In business of over earnings the to with quarter to and total the and rest Our maximize the years volatility revenue

fiscal is events of XX% quarter, XXXX. shiny league platform. fiscal This XX% of our quarter is comps events in XXXX, Events results. up XX%. resiliency our comped from star and which model The plus is those up Our first is started X%. September Leagues,

This quarter, XXX already we of with crossed events happy and Lucky higher-end profile. I on of am our we very customer the fully their proprietary CRM, team Strike. on benefits events and the They are world-class centers, are integration our seeing

in from we built XX-plus in in new growth the We the Jose, also results double-digit a we earnings new new the evolving is is have are cash-on-cash We better The currently builds facility opened values getting builds. Mall more Bowlero day. insightful and intact. proven every XX business long-term getting model. California, San our Bigger Valley into and we underscore that Fair percent early is of unit and and revenue as pipeline. push average higher formula returns

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

announced, underscore we VICE properties in recently As that sale XX properties. paid $XXX leasebacks for to which XXX the for with XXX $XXX acquisitions. We incremental a million of believe a sale-leaseback The generate entered with the started approximately those opportunity pipeline is we will US self-funding million. more partnership returns have location, model we and for for

Bobby on turn unique will it now scale space. Bowlero's over in Bobby? provide and quarter's to worthiness the the CFO, are to out-of-home results. more I Lavan, Our credit back entertainment details

Robert Lavan

first Last ex quarter million. In service generated of $XXX.X we comparable fee XXXX, the million total $XXX.X of we revenue reported of revenue. year, Tom. Thanks,

X.X%. we $X guidance million second down down We EBITDA X%, comp quarter. is internal hit slightly The was employee, revenue was out. a comp through phased our the excluding mostly previous As Total a issue our up fee was being service service down fee below Revenue bowling center a non-contributor up down X.X% earnings reminder, due to mandatory pass X.X%. revenue in revenue and the a is that picked budget. timing our kit to is and X.X% to of

approximately low course price the We a been we being changes will test almost New active benefit get season. perfect of trend on of extending been volatile holiday the are has with delta September this by than resilient us reversed X% to As will strong Tom a line centers. the Hurricane to first season at EBITDA a XXXX, minus was in but week The week the to a comp discussed was We week in as traffic of compared to greater earlier with investors October. as XX%. forecasting positive Ian other quarter second Halloween not but our second would negative, center we in hit quarter. that year million in the holiday seen some positive in with off the we the look York flooding and to in savings October had quickly quarter positive structures quarter used our the we people appear storm timing more and Halloween negative previously minus the pivot of started $XX million did We have the $XX.X data also early returns seasonally disclosed, comps, Adjusted investment. a the million. on $XX.X we of last mode cost Thanksgiving year-over-year, very August, with getting of in

quarter. million. payroll up quarter high million was of and in second up our in comp $X is the year-over-year, Comp tune the by was Utilities centers down Corporate EBITDA. of continue annual XX% the event million million revenue team. in $X $X of we the $XX make third Non-comp while reminder, expenses to approximately seasonally of quarter. our a in and revenue contributed the As are on million sales invest centers $XX down EBITDA

quarter million First of comp in had million revenue quarter $XX up revenue, and comp be the approximately should sequentially. revenue $XXX second

the line. structure entirely fall should to in With bottom the that cost almost place,

have have of we starting are to million million revenue The to fiscal in revenue that year adjusted expects $XXX million quarter of of through XXXX $XX million Additionally, ex company fee service EBITDA $XXX $XXX flow second million. to $XXX the and acquisitions quarter. from to

to December. $XX is we we if strong spent with on shares builds million smaller bookings on being CapEx, until for now our $XX start new and million event quarter. quarter, at in and The spent and The in end maintenance. from million incremental of we results The quarter, for we the repurchased and $X.X to top in We up the right comp year-over-year In until million quarter. up revenues about week us continue summer will comp once and corporate plus million the Leagues event weekly business go second confidence corporate. cut on XX gives on $XXX In X% March. in the the the the bookings acquisitions, this of leagues $XXX $X have of mid-September, plus Events $XX and the timing day space. million XX. growth million We the third costs of a start

capital combination We in program return. as will are of balanced continue to confident we have shareholder growth a and our

XX, October a on our into announced we accelerate we properties BC strategy. self-funding As sale-leaseback to partnership entered with

lease Post a have characteristics. airtime should properties and We only EBITDA our million type of multiple improve a the focus with price, half The costs. XX that Once capitalization centers to is we X or are of creation we but month-to-month leases that look a We This long-term land underpinned value current do Xx compares times. slide for sale done shorter. have of years. a on is have our we value company at might net the lot and together $XX buy such proprietary created leases days, deck, how we the our That can will viewed topic we to Bowlero multiples story completed, of that have [indiscernible]. more The to then We XXX into and to can leases, leases. transaction, X enter is within by by a be to per we with purchase we VC investor back significant tools has implement for When lease is credit. property VICI unencumbered XX put on XXx of XXX gotten SLB and capitalization acquisitions straightforward, cash to of EBITDA project in of is EBITDA. One the do. XXx. of this than average, they lease margins

EBITDA net to of X. that leverage of FY of interest and versus included XX-Q at less the BG the lease costs. gave acquisition, amounts We of a EBITDA annualized have million lease of debt. 'XX rent midpoint net in our less annualize VICI liabilities. There $XX.X cash million measurement is about This are $XXX debt gets capitalized this paid you in acquisitions million. builds Our rent. we for of million method of X.Xx target $XXX acquisitions $XX Pro lot cash on cash new should disclosure looking and for $XX our for forma approximately million is leverage net under you to

We manage to will the are In several exciting evolve we innovate. and closing, macro especially into underway leverage environment. have to continue initiatives conservatively, and unknown continuing

team We high are for have execute. right prepared and the seasonal period to structure and oncoming the

over to Now let's the operator turn for it questions.

Operator

[Operator Instructions].

question of first from Our comes for JPMorgan. Boss Matthew

Matthew Boss

inflection And the congrats mid-quarter. on

approach. spot from to you So sweet And sales maybe, with test the what in drive Tom, in think differences view? same-store And how positive on the could tying elaborate the demand lift comps your any events? and best Maybe mid-October. forward to you versus the moving about have walk-in conversions tap, on to that was retail just learn in inflection

Thomas Shannon

weekend. customer game an to weekend, and not Bowl there's All There's learned is used beverage to deal, price-sensitive relative that's a normal You more that where or So there then we upsell. And underpriced exclusive largely a special of better to And right? then customers. Could the cheap types we opportunity getting price who pricing. -- basically customer is have meaningful food a the was what retail and X to Well, but the weekend there's

could on based we had winter out spring, the price. really and the volume so that we aggressive into of on get coming And of the we amount thought

decreased so And revenue eliminated opportunities, weekends weekends, upsell increased able offerings. the the increased simultaneously capture on which to but during revenue a lower-priced we and the That the week. lot on we're the of

pizza had we that what made And basically, comp we them got positive in customer like things other weekends comp, to tinkered in and that ways that continued pretty that, is same-store bundles back center. sense, other this increase add went We So the to to opportunities and have them that middle of are the month, with week. the during reinstituted to them, much the like modified everywhere upsell picture did we are meant October. we by spend on back and promotions

So are we customers that what are sensitive. price-sensitive is are more who learned and there are price customers less there that

realization important but difference, the appreciated that's knowing enables because us the And fully model know. forward. really hadn't now going we think we to the I an mindset consumer optimize

The up digits has in for business been As the remarks, long been a single time. digits. business league has event very up high I my mentioned double

strength. independent, of So of in. in those of sort are pillars well are decisions people weather also of those They're coming our right? the making advance So day

with had of And this not so was weather of weather a with and then we widespread everyone rain long, in their dry when New year no flooding in comping where like you rain had you a and where summers a one-stone lot lot have things that last there have event canceled then events, we Northeast the sort York generation of headwinds. like

our event of overall business. not is the you retail things like numbers, The that volatility and I retail business reflected think weather. think league and or a business strong will is the on the I strength so of business in is lot the have but how an more that partially indication customer the in fact of the strength then the business based strong, gives

now either up seeing a little we're consistently or a positive down as busiest move our However, into season. we little

it I us for very year. of rest bodes the for well the think

Matthew Boss

Bobby, And new rank next pipeline what's think you sheet speak visibility to could of months investment capital opportunities How the then, to That's builds? from here? unit the the you maybe would just of you XX versus great balance health And today? level as about acquisitions for your color.

Robert Lavan

closer that X sheet balance turn $XXX looking to million cash, upsizing have EBITDA. to healthy. the $XXX undrawn more million be mean at more very revolver I of of than we And is we're

So We is acquisitions, very We new math new we but got are in done, builds. the stronger. are evaluating math deal builds and accelerating right the sheet balance healthy. VC right is that that is much on for just conversions. the think The coming for

looking this dramatically X are now, increase at but we're that next doing year, we got year. we've Right So accelerating. could that

builds visibility the visibility the on So new on sort I'll of let Tom M&A. good. is comment on

Thomas Shannon

strong, been. very as pipeline The it's is ever strong as

ago. So doing Valley we than we've months done. opened Fair more builds new We now are X ever about

Park, February. December. in of November Center in about open that open We in or to north are which Miami open more -- late World ME is will so L.A. Valley early

X about that. we've locations are Ladera and We our construction just California, a others which behind Hills, Denver in then of in County, Orange got Beverly is Ranch, handful

cash-on-cash new about activity, returning So great had because investments. much which return so build significant on never we've is are new our builds a XX%

that couple coming in and it's to the And dropping really So the that years have acquisition bottom same big last line. are seeing the dollars on we're we level of side. the of for activity

Matthew Boss

of Great. Best luck.

Operator

The next Konik question Jeffries. comes from with Randy

Randal Konik

a promotionality or down flattish that business, on then the positive. nicely kind like powering comps just flavor that through turned in some fiscal and stability, and for midweek break made the just in the Maybe of the maybe should have to on type a bit think weekend just stability positive continued mid-single-digit a about to it think how and to function really based up becoming and continuing low- business should -- of comp we weekend be up rate positive. those league, little Just balance we you've us year? to the those a of how that? stay trends changes give then Is do nicely And at the midweek sounds

Robert Lavan

the balanced pretty we that the a X the on bookings the of the very but the the be in of down sort business -- be where When giving comp made single It's double of going we're of bit the is XX% little through needed comp, really We've we're is had little on you kind rejected are we December. we're that quarter. more the -- a revenue percent not up said right? quarter with Monday to Yes. mean a to happy basis, our up about the ourselves, of or full of we is expecting and -- the little think with of I corporate going a of is guidance is but much get bit for are date. period sort digits, event, price last to weeks in for so of the ahead We're summer Thursday. because leagues, the potential which balance. which which XX% goes down the is And retail issue upside upsell bit, XX-plus customers is up to all digits business, the a to business is of

through percent. Saturday and was So were down sort It up. wasn't Thursday really flat of maximum was at -- XX-plus it Monday pain. mean Friday I to Mondays

so XX% it when down Thursdays retail, So on are comp. are even down through though just dragging of big our Mondays those business, was the

So we've optimized them. in, back we've promotions the put

promotion kind you So of went hate have ways resiliency the is a sort us in And from little we The the loved around it's the now expect reviews we worked was see Thursday in numbers, the we we're did bit. loser. falls. it we'll Yelp a and promotions with because New of put back love this to that the have that money business bounce comp to to the that But to favorable like did just again. that a not just -- in and Year's year in Christmas seasonality

good the But is break fourth December. up the feeling business. about quarter make in we're So pretty

ourselves, point. So but we're at we get not flattish going to confident feel in of ahead pretty this

Randal Konik

it is have very you aggressive capital quarter. very Stock is share might That's missed cheap. you on nicely You how left, And I authorization? the in us good. can just it helpful. repurchase on basically, where remind back allocation, Super have much were

What capital then is would down M&A, by -- coming versus flavor price changing on builds. repurchase there get super desired the of anything or about where M&A And anything M&A of what's balancing how are of changing kind some owners of prices just back from operators towards flavor the centers. share be bowling thinking or helpful. be around is Just alleys you're and out that would

Robert Lavan

Yes.

So but to to the we've our of as got levels, $XX million authorization, these stock. we'll needed. continue re-up that to on buy meet kind Board is left willing our At

transparent million -- isn't significant XQ it's got these significantly. with have slowly in when Lucky will the dynamic XQ new change. Lucky's. machines on, changes Boston We and we're then string We're pretty investing And But builds when $XX in a market, the which Lucky numbers November, the lucky with in you've numbers. into we've been turn into come like putting

So these the whether not is really the builds guiding short-term year, not whether my it's X I the focused what the would very 'XX, on FY going really very get come get market we're we that but -- lucky, from are builds. call it's gains, like Mavri-tock new of comp FY where doing, is it's whether and sort on and much this to 'XX when growth strong into that inorganic to are builds new then we're we play new strength how focused

And the the M&A, so again. these market the refill on pipeline, new short-term SLB what advantage just focused being synergies. the market, not so and we comp our M&A the builds, focused on we being it do way, by and the and we're of when taking Oh,

do stock because undervalued. feel at continue we'll these back we're buying we like dramatically So our levels

Randal Konik

you're down price? price the prices Bowling Just -- And things make Are curious M&A it. kind even other just are there. to seeing That's are more changes center in what in coming there proprietors commanded, on they what the of attractive?

Robert Lavan

getting better. are Things

And much think coming recently the everybody multiple done a at down. on, but I multiples. few acquisitions that unlucky better focused is we've

Thomas Shannon

understand math really think Lucky our I multiple. people on Well, the didn't

at We overhead being consolidated very $XX So would incremental XXs. that EBITDA as from the level trailing it very, little at Lucky like center in looked at the million us. at need spend of they Strike looked earnings more somewhere

potentially the upside somewhere $XX $XX in million million So million to EBITDA. to $XX of range with

We million, it EBITDA. So get $XX by you're and for our math, think million anticipate to of $XX looking million, in can $XX another $XXX we forward, we million. paid so it investing

almost or there. we revenue That's a then said, Chicago. forward a figuring closer We're we paying another. the bought profit all Strikes, much million Xx. figured were how Octane, and was coming we're coming basis, bought. revenue bought bought and okay. thought $XX Bobby were Maverick a of doing incremental Scottsdale, we to and asset we outside about But that independence So XX to we market is wrong. venture very joint a as newbuilds in Michigan. a of at other understanding the X right on pretty Xx. Lucky people And property disconnect we There aren't when markets online We're which big the was The X from profitable really centers paying out We close on in or

Bobby I there's it our down in double which bullish So incremental a to from than of had lot said, comp bought of quarter on it's added properties the in important year year in forward, really amount a market been focused EBITDA reflected did the We're and million significant we epic or of least was And very basis. what been so. revenue stock very, last will was on $XX back. and think going but about done And result peak, XXXX, incremental EBITDA. we business just more was this as an compared we

Operator

Stifel. question Wieczynski with Our from comes Steven next

Steven Wieczynski

how guest into to in that Have trended rates? amusements? and better pretty maybe be freedom maybe I'm a want any Are seen them bull beverage there Any spend or the you detachment ask seen have in, that has would trended trying spending you've back come I they about changes or changes be of seen in as just rates coming you in-center in pull your helpful. resilient? the they the attachment that recently? properties, sense yet to What meaning folks get quarter how come through as

Robert Lavan

Yes.

a then the is Friday, on quarter, as seen weight the colder we no is We of probably get will Amusements third ultimately, back detachment Saturday, amusements. best there play saw we saw that but reverse change. amusements the course worst, the that, food. was people second on arcade. quarter, in and when think a down into midweek, Again, sort we think more we've I detachment of traffic proxy the traffic and will

think I percent food, over because with margin, So attachment past and been food the we were years, margin because very pictures, programs, new different because things pizza that of that happy unique focused we're been margin a we've out few now trying on and on we've the like dollars lot focused pretty dollars.

And the pretty results happy so there. we're with

only on the seen the little be that think more detachment amusement I place we've side. a of on bit would

Steven Wieczynski

great Got but question, was Okay. That's that it's want And structure color. the other and should well. of remainder then you I as of labor be cost whether maybe wondering maybe And of the and second how at reasons in this it you. it mitigating for obviously, thinking also to details from for just kind point, you, we called Tom, the you other during year, mentioned, your Bobby or of those the But about a about quarter. inflated the out into number the now some about look second and quarter flow-through headwinds? cost we you're maybe ask how XX-Q as some here

Robert Lavan

Yes.

XX% structure, is XQ. at effectively about So XQ, payroll payroll. payroll will cost MAX be we've structure our you think is if -- That been running sequentially XX% is our the that cost flat to

And things than of on supply repairs, second have Utilities the did quarter rest bit to sequentially to the little few of maintenance. sworn services, back structure, opportunity quarter to air of clean peak-ish more major really kind then pull of but sort spend down probably a $X third we Another into we million probably a use slower cost. that of and it's bunch million fourth just up a about the is the actually we quarter, time needed the and We conditioning be quarter should. utilities. cost goes a fixed, is sort

getting out the I is So cost the structure should year. confident the $XX are sequentially structure better. the is of that our about understanding structure and we spent about it flat very feel you months the look we taken -- the at The we really that. throughout into digging cost way corporate. business corporate. And just of past is one look rest of We've cutting And X million cost that on at

So is we is far, benefits that quarter, corporate cost and second and should our quarter. that down, see to more million third coming $XX $XX but of in roughly the a million

Steven Wieczynski

luck. Really of Okay. appreciate it. Best

Operator

next question Jason Tilchen with comes The from Canaccord.

Jason Tilchen

on Strike. when cost Lucky be Tom pulled of sort to consolidating want of time just just of is to expect those mentioned the that out some sort your synergies what going of for were touch the some I'm I you to by curious business. line to brands Strike, Lucky of being sort plans see through sort also on that medium different what P&L? some then the into How the And do term, flow expand the the brand? are you within to your of use of of the over portfolio used?

Thomas Shannon

I on on this of opposed as the the viewed we EBITDA than the to elimination That XX. their cost talked about Well, I XX XX revenue When side. really more of the opportunity is to side as think overhead. was

event Chicago, L.A. Downtown going locations see Denver, in locations in and absolutely a in forward, we the downtown in Downtown So savings. Boston, drive obviously the They phenomenal cost suburban downtown suburban Washington, in sort of as sales But that's San in Hollywood to Francisco. have their downtown and key. Honolulu Bellevue, Orange ability County,

And brand Bowlero. analysis really and We do we're found love get about their think versus did strength have I that early the they survey. the bullish.We Nielsen that We very set of We to brand to are was -- hired an had a name. of strength So irreplaceable their them. excited they very assets indications XX% more.

they obviously, build as Lucky as will impossible, Strikes And perform. It's and locations handful to of decided versus open opening our how a so next Bowlero we'll done have of they they we've try would bullish opening new that know like see determination But of brand. result a be Strike. are stronger or a we that make as brand. they'll a certainly Lucky whether feel were how that and not we We'll as on how

Park Strikes. more will that the X first open as and Miami, be So will Lucky newbuilds

in of capital. distress a been I while. financial As a of we're investing mentioned, Lucky lot sort Strike had for

and assets right I And downtown so of had in failed well. pretty Philly become in, have dilapidated. Philly the to mention the heart underinvested been they as

in to sort revenue return ever. upgrade maybe And Strikes as better them capital facilities Lucky in of putting you're so we're going to And beyond. and those lot think performance out of to calendar a we the make of than that I now speak, them their XXXX see to luster,

Steven Wieczynski

Great. one helpful. really just other And That's then question.

during if in into comps. bringing about give of flow expect bit same-store that sort could you lot talked update remarks to those benefits sales of maybe a you the culture had you center, prepared that's of when mentioned a You how in on some about was through last and that the going sort wondering I of sales the little call.

Thomas Shannon

Well, we X.X they already our of pushing because the weekend were special, the testing an per was an increase a it sales when all right, games we got which indicated on That's income X.X, have. people -- bowling were third was and about why game visit.

no philosophy profit. And to given a the can is part that all that game the so cost revenue of bowling, game, any we there of is behind variable incremental the get special third of is if

And card goods sold profits. for revenue cost a perceived in game $X incremental XX% There's game, game that, as that charging card. a higher. because did $X for the we're for of Arcade guest the well if free way, a and found the almost give as is spend. getting Arcade on to a move third all and it's we the they're Arcade $X you card, I'll about bowling So $X What again, that incremental $X

and them doesn't can which a it was a a that associates opportunity instituted doing were they but it, card the that and in centers phenomenal. heard arcade the in then the across a consistently of sell-through And Arcade all this selling front XX% before. We rate, desk really selling we refill special, of that is found flow So hundreds as that have impetus card. to center. had the result had never seed card gets the view you the which We never

very would different added the hundreds think over been coming the be. memory not very was rate success, could but it the of throughout mean validating. seen back. centers than us have all Had it's week, retail the we've customers of muscle sell-through eliminated to I you now thought result, any those promotions a So we And week success a in we've low-cost sell. I better previously of XX% during much got

offering And price of and special, results which both to a soda we're seeing is beer, as retail, of one XX% and pizza reduced initially good one topping from either pizza and and picture over about a that picture normal so a topping well. pizza increased the we've the picture for a or

Operator

question comes Our Ian next Oppenheimer. with Zaffino from

Ian Zaffino

late, bit little have repeat a you're on new seems sorry if hopped it so But on to like just you accelerating the yourself. builds, I this. obviously

more seeing What You're Are ability are Is just there now? excitement. that? much that kind you space? -- that's much the is sale-leaseback opportunities you -- do driving is driving others less more What new that? from Are of more basically builds? exactly is going competition or to buying a seeing on for

Thomas Shannon

all a firm and happened are a Those is the these out more. leasebacks X sale hired make source on builds. seen been about lot how our go change terms years Well, flow, we deals. of made And new in What we more that a to able Miami-based don't and malls. leased, we've in consequence, increased has a we ago, mostly national deals. as do contacts lot We a really we've so deal that's

a being helped landlord's I a we're think has bankable tenant. public from perspective,

XXX-pound We drill the the space. are in

record. We have a XX-year track

to we mall, have. logical a opportunities we seeing way. choice looking that the if lot an ever we're landlord consequently, and and you're do your more So are a to offering than are landlords acting add you're experiential And

of or took period landlord for the permitting time in for they or to got it time, up long extended whether deals have a of deliver out held Some of stretched period these whatever.

So seeing flurry now a might than for but imagine. you you're set a on deal time longer we've here, period of this been activity working

open them they We're next then of So was didn't of would it's pretty that. sort all in the I now, at but that They happen. going same X cycle, the constrictor. about through more a a this of we to open now, the one are weren't think pool aggressive year. that of after built. get X fortunately But little opened X sourced year deals the And to lag should all the X there It's are just happening construction more, or bit time. seeing Bowlero throes right in a bulge

Ian Zaffino

then question maybe Okay. And a Bobby. for

help just other far expecting that? any holistic be of Is of type going guidance? giving that And CFO? you're And there of sort around forward? us guidance, should this as maybe conversation the what philosophy the as As understand this just used to we a

Robert Lavan

I'm I quarter. $XX I my going Yes. follow tell the EBITDA internal had you model of for million to sword, our would mean first

-- the Street. signal we So just didn't we that were to

we earnings highs I clarity credibility building and do So investors on to numbers signaled more quarter are giving I just and going to what we be. only are the is with them And a lows that is our that months go EBITDA. and little our are is didn't ago, bit the should lower call, to which going where have at our think numbers X.X happen fourth partnering going about higher guess, on probably

And just so I'm more clarity. giving

you seeing looks I'm as And we what for investors will my at, telling numbers, what such. is us key. reward we we're these So think transparency hit model

Operator

The with Craig-Hallum. Hamblin next question from comes Jeremy

Jeremy Hamblin

here about And I and the follow just COGS cost of understood. up last on sure to wanted point I make operations,

only just with is slightly terms addition flat you you're to think in sequential but would going In Strike I And Lucky little sure, higher a next other sounds the few these with want the bit COGS to like make up And flattish these going the maybe acquisitions. you've it about color? operations, that a of sequentially. the cost even cost as somewhat quarters, expect thinking thinking units I we that the and some forward, revenue indicated XX deal of of move you to be up on through that, be of seen of typically, or just that Any COGS skew quarters?

Robert Lavan

flow come a better, We cost similar as and EBITDA, through -- be you what bit was did the a model other put smaller those we We have X EBITDA to Maverick, or come to acquisitions as gross Yes. going Lucky Octane, will call you the like add-ons, basis, have take they and Center very profit. the out like worse. going center sort COGS as to in, are M&A you bigger through. but those up, COGS growth. I deck new inorganic and quarterly, all obviously, did Those of structures, those comp, balance mean investor as comp are the builds little we on, a sequential in the the in flow quarter our

come do So is it's and the in But about cost deals layer transparent to the into the structure model have very what company, comp cost so structure. forward. the those as can in, you for you total that

Ian Zaffino

Got it.

just Okay. noise kind other cost structure. And then of of the terms in some around

So million quarter. of I transaction and $X.X you had think expenses the advisory in

I flows think your SG&A. through that

obviously, with You've be your costs in had, VICI But here costs thinking the transactional I'm how some should deal, advisory associated we sure about like that. QX?

Robert Lavan

mean, a going you because so that deal from color will so perspective. a VICI just was years. financing a have Yes. VICI I on X deal Strike, for considered be is capitalized Lucky

tune bill quarter massive $X legal first So in all million of in. to about the the

So has Lucky passed. Strike

forecast would going backs, that don't we costs add to you advisory dramatically I that or tell but think I be it's lower. So

Ian Zaffino

terms equal? just the here with of leaseback basis, we What expense, in in on sale Got -- a all here, go-forward then else $XX.X are your QX. it. right, million And being so the at interest looking

Robert Lavan

mean I annualize Yes. million. you should $XX.X

paid we closed the so XX. October deal we -- in on And

the right months they're in So in rates, just then by it I'm now going not be market to but and on quarter be XX.X% speculate divided to you'll subject and X mean going have down. going do X. we'll XX forward, saying the SOFR, days would fluctuations but I second interest to is

Operator

from B. with comes question Eric next Wold Riley. The

Eric Wold

what the place testing potentially place questions. couple given options in Should to to comps expect promotional you coming I that busy you Do the added Are haven't kind test the the have you are of season? be likely pulled, could confident boost? yet around be additional in with levers learned off, but cadence in that more but positive you turn and that guess, launched you could a now in through pricing first months? Just October. what's of be

Robert Lavan

Yes.

I think there's primary focuses. going to be X

some give bowling the you to We're are So was going F&B not until be those numbers. XX quarter, happy let revenue revenue going In context. each other was round equal up. to numbers million, me $XXX F&B right? first by

to want we attach there. So

the centers. people there, be in we having menu dinner that positive be the should a multiyear food. think So changed that is to but journey, We the think has more buying dramatically people should

from that of some our is be selling. to And employees going

holy to will games, games X keep multipronged grail selling the we're continue So from approach. and to that, getting X is people going Bowling Obviously, but to we pushing going. a of it's go

Eric Wold

Got it.

of versus the the what also Okay. Maybe And at of size number in that could? commitment commitments the events is increasing? Or terms you average of events are events then down, second question seeing average terms you of bookings if business, break on in similar the pricing? more or

Robert Lavan

Yes.

down upscale are we for to a viewed a little But sizes are, I for event us as that and the always But we've top XX relative we the opportunities, events XX brand. other seen, we've overall, value the because coming a more are ourselves think top we up. bit. that's community why premium and flagged better

so lot seeing we of a more are And events.

sort strong. of we're about be excited So But generally, business that. the continues to

Operator

from CJS The question comes Daniel with Moore Securities. next

Dan Moore

tweak Most does experience impact not or promotions how promotional during learnings activity experimented might largely midweek going answered, of family bit forward? just a the relates that have second, but It And back. just been come to the as test yet of Any tailwind. that kind bowlers a come they've fully it how you little with sounds of quarter. back like your create the those from

Thomas Shannon

more there's to come. Yes,

late So Friday Monday We we back only brought only week night. back and brought third in of the September.

those mid-October, and to So a few we still didn't full until take bring the special weeks back system. the through percolate

in definitely coming the a weeks. tailwind see we few So

Dan Moore

that about it. And of or them how you promotions kind going would forward? implementing or think is your then tweak mindset pulling changed back on Got

Thomas Shannon

was and on a know, mean XX, don't to another it, it worth off And we customer it promotions college XX right? be we I that base. had be centers, subset turned in to fair, I the Thursdays. of about, have night So had

on right nights didn't night we now Thursdays the of college So week. our bring best back

be on will it. we So very tactical

lanes be filling have are and to I think going when priorities them. empty we analyzing

Dan Moore

sense. Makes

any update in on MoneyBowl throughout quarter. penetration the Lastly, just that trended

Thomas Shannon

Yes.

So XX centers into we're experience. in have turning out-of operating, an MoneyBowl, but still -- we it we center are it

-- sure to months will so MoneyBowl this I'm how guys start like the advertisements download on few you'll And because are get tracking that's in call works. just probably who next all the

change, will sort calendar that center significantly technology actually to for to really to do quarter, everything huge of center out be the business. website at are enact going of upselling. will point, We're use out as a going platform well. game and to the the become with center. And to it in sort huge And projects roll the to it's in we're more MoneyBowl platform people bring of centers. and loyalty we'll trying that it's changer first into updating lot our We and a the be done

that us there. on track still website MoneyBowl to more world tool you progress journey we we're to use I for because in you -- see the I is your website the go pull to can think, is where into We're center, it's be We're to excited the a can powerful the be pretty going -- website a and into the just future. and the to very So up still waiting for it. about think

Operator

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

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

Lucky Strike Entertainment (LUCK) 7 Nov 232024 Q1 Earnings call transcript