Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $339.9 million, a modest increase of 0.7% compared to $337.7 million in the previous year [16] - Adjusted EBITDA decreased to $117.3 million from $122.8 million, with same store sales declining by 5.6% [16][19] - Same store sales acted as a $19 million headwind to the bottom line, despite improvements in payroll and cost reductions [16][17] Business Line Data and Key Metrics Changes - Retail business remained steady, league operations experienced low single-digit growth, while the events business faced high single-digit decline [16] - Comparable food sales rose by 1%, with total food sales up 8% year over year, indicating a positive consumer response to food initiatives [13][60] - The league business is described as sticky, high frequency, and loyal, continuing a multi-year growth trajectory [8][12] Market Data and Key Metrics Changes - California, accounting for 21% of total sales, contributed nearly 50% of the same store sales decline, primarily due to softness in the Los Angeles market and declines in corporate events [17][18] - Early sales of summer season passes were up over 200% year over year, indicating a shift in consumer preference towards local entertainment [10][48] Company Strategy and Development Direction - The company is focused on adjusting its cost structure to increase operating leverage while investing in growth through acquisitions and new builds [12][18] - A recent acquisition of Shipwreck Island for $30 million is expected to enhance the company's portfolio and long-term potential [18] - The company is committed to a disciplined approach to capital investments, prioritizing high-return remodels and rebranding initiatives [56][60] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a rebound in corporate events and overall business performance as macroeconomic conditions improve [9][24] - The sentiment among management is positive, with expectations for improved performance starting in the summer as they cycle past tougher comparisons [18][49] - Management highlighted the importance of proactive sales strategies and returning sales personnel to the office to enhance corporate engagement [45][75] Other Important Information - The company has maintained a strong liquidity position with $391 million in total liquidity and no borrowings on its revolver [19] - Capital expenditures year to date are down $40 million compared to last year, reflecting a focus on cost efficiency [19][90] Q&A Session Summary Question: Could you elaborate on walk-in versus corporate trends? - Management noted that corporate events have been significantly impacted by macroeconomic conditions, while other business segments have shown surprising strength [22][26] Question: What caused the negative same store sales? - The corporate business deteriorated in February and March, primarily due to external factors such as the California fires and broader economic uncertainty [39][40] Question: Why was guidance removed? - Management indicated that it was challenging to provide meaningful guidance due to the short-cycle nature of the business and external uncertainties [44][49] Question: How is the rebranding initiative performing? - The rebranding has led to increased foot traffic and consumer excitement, with plans to continue rebranding efforts [56][58] Question: What are the expectations for SG&A costs? - SG&A costs are expected to decrease, with a focus on maintaining flat or reduced costs while growing revenue [96][97]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $339.9 million, a modest increase of 0.7% compared to $337.7 million in the previous year [15] - Adjusted EBITDA decreased to $117.3 million from $122.8 million, reflecting a decline in same store sales by 5.6% [15][19] - Same store sales acted as a $19 million headwind to the bottom line, despite improvements in payroll and cost reductions [15][16] Business Line Data and Key Metrics Changes - Retail business remained steady, while league operations experienced low single-digit growth [15] - Events business faced high single-digit decline, primarily due to corporate event cancellations [15] - Comparable food sales rose by 1%, with total food sales up 8% year over year, indicating a positive response to revamped food initiatives [13][15] Market Data and Key Metrics Changes - California, accounting for 21% of total sales, contributed nearly 50% of the same store sales decline, primarily due to softness in the Los Angeles market [16] - Early sales of summer season passes were up over 200% year over year, indicating a shift in consumer preferences towards local entertainment [9][49] Company Strategy and Development Direction - The company is focused on adjusting its cost structure to increase operating leverage while investing in growth through acquisitions and new builds [10][18] - A recent acquisition of Shipwreck Island for $30 million is expected to enhance the company's portfolio and long-term potential [18] - The company plans to continue its rebranding initiatives, with 15 rebrands completed and a goal of 75 by the end of the year, which are expected to drive foot traffic and revenue [58][60] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a rebound in corporate events as macroeconomic conditions improve, expecting a turnaround by the third calendar quarter [25][50] - The company is proactively addressing challenges in the corporate events segment by returning salespeople to the office and enhancing customer engagement [76] - Management remains confident in the growth potential of water parks and family entertainment centers, anticipating significant revenue contributions during peak summer months [84][85] Other Important Information - The company has maintained a strong liquidity position with $391 million in total liquidity and no borrowings on its revolver [19] - Capital expenditures year to date are down $40 million compared to last year, reflecting a disciplined approach to spending [18][19] Q&A Session Summary Question: Could you elaborate on walk-in versus corporate trends? - Management noted that corporate events have been significantly impacted by macroeconomic conditions, with a notable decline in California, but they expect a rebound as conditions improve [24][25] Question: What are the areas of expense flexibility near term? - The company has reduced payroll and maintenance costs, with expectations for further benefits in upcoming quarters [32] Question: What caused the negative same store sales in Q3? - The corporate business deteriorated significantly in February and March, primarily due to external factors such as the California fires and broader economic uncertainty [40][41] Question: How is the company addressing SG&A costs? - Management indicated that SG&A costs were impacted by a non-cash charge but expect overall costs to decrease as they focus on efficiency [97][98] Question: What is the outlook for corporate events and tariffs? - Management believes the current downturn in corporate events is temporary and linked to broader economic concerns, including tariffs, but expects a return to normalcy in the near future [75][80]

Financial Performance & Metrics - Total Revenue increased by 9.1% from $1,058.8 million in FY23 to $1,154.6 million in FY24[52] - Revenue excluding Service Fee Revenue grew by 10.7% from $1,037.7 million in FY23 to $1,149.2 million in FY24[52] - Total Location Revenue increased by 11.5% from $1,012.4 million in FY23 to $1,128.6 million in FY24[52] - Same Store Revenue remained relatively flat, decreasing by 0.0% from $985.9 million in FY23 to $985.9 million in FY24[52] - Adjusted EBITDA increased from $354.3 million in FY23 to $361.5 million in FY24, with a margin of 31.3%[54] Strategic Acquisitions & Growth - The company acquired AMF in 2013 for $310 million, with Lucky Strike contributing $20 million in equity[16] - Brunswick locations were acquired in 2014 for $260 million, followed by a Sale-Leaseback transaction for $200 million, reducing the net purchase price to $60 million[19, 20] - Bowl America was acquired in 2021 for a net $19 million, followed by a Sale-Leaseback in 2023 for $63 million[23, 24] Operational Improvements & Expansion - Average Unit Volumes (AUV) have increased, driven by higher Average Revenue Per Customer[35] - The company had 367 operating locations as of May 2025, strategically positioned in attractive markets across North America[26] - The company is focused on acquiring locations with land at 4-7x EBITDAR and utilizing Sale-Leasebacks to fund acquisitions[32]

[Form 10-Q Filing Information](index=1&type=section&id=Form%2010-Q%20Filing%20Information) This section provides key administrative details regarding the Form 10-Q filing, including registrant information, filing period, and stock outstanding data - **Registrant**: **Lucky Strike Entertainment Corporation** (formerly **Bowlero Corporation**), Delaware incorporation[3](index=3&type=chunk)[29](index=29&type=chunk) | Detail | Value | | :--- | :--- | | Filing Period Ended | March 30, 2025 | | Commission File Number | 001-40142 | | Trading Symbol | LUCK | | Exchange | The New York Stock Exchange | | Filer Status | Accelerated filer, Emerging growth company | | Class A Common Stock Outstanding (as of April 30, 2025) | **81,685,637 shares** | | Class B Common Stock Outstanding (as of April 30, 2025) | **58,519,437 shares** | | Series A Preferred Stock Outstanding (as of April 30, 2025) | **117,087 shares** | [Table of Contents](index=2&type=section&id=Table%20of%20Contents) The report is structured into two main parts: Financial Information and Other Information, concluding with Signatures - The report is divided into two main parts: Part I - Financial Information and Part II - Other Information, followed by Signatures[8](index=8&type=chunk) [Part I - Financial Information](index=2&type=section&id=Part%20I%20-%20Financial%20Information) This part presents the company's unaudited condensed consolidated financial statements and management's discussion and analysis of financial condition and results of operations - The financial statements are **unaudited** and prepared in accordance with **U.S. GAAP** for interim financial information[31](index=31&type=chunk) - The company changed its name from **Bowlero Corporation** to **Lucky Strike Entertainment Corporation** and its stock ticker symbol from **NYSE: BOWL** to **NYSE: LUCK**, effective **December 12, 2024**, to reflect its broader entertainment focus and commitment to offering a broader range of entertainment experiences[29](index=29&type=chunk) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section provides the unaudited condensed consolidated financial statements, including balance sheets, statements of operations, comprehensive income (loss), changes in equity, cash flows, and detailed notes to the financial statements [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheets show the company's financial position as of March 30, 2025, compared to June 30, 2024, indicating an increase in total assets and liabilities, and a larger stockholders' deficit | Metric (in thousands) | March 30, 2025 | June 30, 2024 | Change | % Change | | :-------------------- | :------------- | :------------ | :----- | :------- | | Total Assets | **$3,195,717** | **$3,114,035** | **$81,682** | **2.62%** | | Total Liabilities | **$3,282,121** | **$3,163,887** | **$118,234** | **3.74%** | | Total Stockholders' Deficit | **$(213,729)** | **$(177,262)** | **$(36,467)** | **20.57%** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the nine months ended March 30, 2025, the company reported a significant turnaround from a net loss to a net income, driven by revenue growth and a favorable change in the fair value of earnout liability, despite increased interest and depreciation expenses | Metric (in thousands) | Nine Months Ended March 30, 2025 | Nine Months Ended March 31, 2024 | Change | % Change | | :-------------------- | :------------------------------- | :------------------------------- | :----- | :------- | | Total Revenues | **$900,151** | **$870,746** | **$29,405** | **3.38%** | | Operating Income | **$122,004** | **$125,845** | **$(3,841)** | **(3.05)%** | | Net Income (Loss) | **$64,694** | **$(21,404)** | **$86,098** | * | | Basic EPS | **$0.38** | **$(0.18)** | **$0.56** | * | | Diluted EPS | **$0.36** | **$(0.18)** | **$0.54** | * | | Interest Expense, net | **$146,879** | **$130,575** | **$16,304** | **12.49%** | | Change in fair value of earnout liability | **$(87,489)** | **$14,541** | **$(102,030)** | * | - The company reclassified depreciation and amortization as a separate line item and disaggregated revenues and costs of revenues to enhance comparability with industry peers[32](index=32&type=chunk) [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) For the nine months ended March 30, 2025, total comprehensive income was positive, a significant improvement from a loss in the prior year, primarily due to the net income turnaround, despite other comprehensive losses from derivatives and foreign currency translation | Metric (in thousands) | Nine Months Ended March 30, 2025 | Nine Months Ended March 31, 2024 | Change | | :-------------------- | :------------------------------- | :------------------------------- | :----- | | Net income (loss) | **$64,694** | **$(21,404)** | **$86,098** | | Other comprehensive income (loss) | **$(2,037)** | **$(2,020)** | **$(17)** | | Total comprehensive income (loss) | **$62,657** | **$(23,424)** | **$86,081** | [Condensed Consolidated Statements of Changes in Temporary Equity and Stockholders' (Deficit) Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Temporary%20Equity%20and%20Stockholders'%20(Deficit)%20Equity) The company's stockholders' deficit increased from June 30, 2024, to March 30, 2025, primarily due to share repurchases, cash dividends, and settlement of equity awards, partially offset by net income | Metric (in thousands) | March 30, 2025 | June 30, 2024 | Change | | :-------------------- | :------------- | :------------ | :----- | | Total Stockholders' Deficit | **$(213,729)** | **$(177,262)** | **$(36,467)** | | Treasury stock, at cost | **$(450,856)** | **$(385,015)** | **$(65,841)** | | Accumulated deficit | **$(238,465)** | **$(303,159)** | **$64,694** | - Repurchased **5,980,510 shares of Class A common stock** for **$65,147 thousand** during the nine months ended **March 30, 2025**, at an average purchase price per share of **$10.89**[87](index=87&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended March 30, 2025, operating activities provided cash, while investing activities used cash, and financing activities provided a reduced amount of cash compared to the prior year, resulting in a net increase in cash and cash equivalents | Metric (in thousands) | Nine Months Ended March 30, 2025 | Nine Months Ended March 31, 2024 | Change | % Change | | :-------------------- | :------------------------------- | :------------------------------- | :----- | :------- | | Net cash provided by operating activities | **$154,767** | **$148,098** | **$6,669** | **4.50%** | | Net cash used in investing activities | **$(166,412)** | **$(285,960)** | **$119,548** | **41.81%** | | Net cash provided by financing activities | **$23,925** | **$154,287** | **$(130,362)** | **(84.49)%** | | Net increase in cash and cash equivalents | **$12,116** | **$16,796** | **$(4,680)** | **(27.86)%** | | Cash and cash equivalents at end of period | **$79,088** | **$212,429** | **$(133,341)** | **(62.77)%** | [Index for Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Index%20for%20Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides an index to the detailed notes accompanying the condensed consolidated financial statements, covering various accounting policies, assets, liabilities, equity, and other financial disclosures [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed explanations and disclosures for the condensed consolidated financial statements, covering significant accounting policies, business acquisitions, goodwill, property and equipment, leases, debt, income taxes, commitments, earnouts, fair value measurements, equity, share-based compensation, and net income per share [Note 1 Description of Business and Significant Accounting Policies](index=12&type=section&id=Note%201%20Description%20of%20Business%20and%20Significant%20Accounting%20Policies) This note describes **Lucky Strike Entertainment Corporation's** business as a premier operator of location-based entertainment, its recent rebranding, and outlines the significant accounting policies used in preparing the financial statements, including basis of presentation, principles of consolidation, use of estimates, fair-value estimates, derivatives, net income per share calculation, and emerging growth company status, also detailing recently issued accounting standards - The company changed its name from **Bowlero Corporation** to **Lucky Strike Entertainment Corporation** and its stock ticker symbol from **NYSE: BOWL** to **NYSE: LUCK**, effective **December 12, 2024**, to reflect its broader entertainment focus beyond traditional bowling[29](index=29&type=chunk) - The company operates various location-based entertainment venues, including traditional bowling centers (**AMF**, **Bowl America**) and upscale concepts (**Bowlero**, **Lucky Strike**), as well as other entertainment forms like **Octane Raceway**, **Raging Waves water park**, and **Boomers Parks**[30](index=30&type=chunk) - The company is an "**emerging growth company**" and has elected to use the **extended transition period** for complying with new or revised financial accounting standards, which may affect comparability with other public companies[41](index=41&type=chunk)[43](index=43&type=chunk) - New accounting standards issued include **ASU 2023-07 (Segment Reporting)**, **ASU 2023-09 (Income Taxes)**, and **ASU 2024-03 (Income Statement–Reporting Comprehensive Income–Expense Disaggregation Disclosures)**, with adoption planned for **fiscal years 2025, 2025, and 2027** respectively[44](index=44&type=chunk)[45](index=45&type=chunk)[46](index=46&type=chunk) [Note 2 Business Acquisitions](index=14&type=section&id=Note%202%20Business%20Acquisitions) During the nine months ended March 30, 2025, **Lucky Strike** completed three acquisitions, adding nine locations for a total consideration of **$50,565 thousand**, expanding its market share and leveraging fixed costs, with valuation analyses still being finalized - The company continually evaluates potential acquisitions that strategically fit its growth strategy to expand market share and leverage fixed costs[47](index=47&type=chunk) | Acquisition Details (Nine Months Ended March 30, 2025) | Value (in thousands) | | :----------------------------------------------------- | :------------------- | | Number of Acquisitions | **3** | | Number of Locations Acquired | **9** | | Total Consideration | **$50,565** | | Total Assets Acquired | **$120,023** | | Total Liabilities Assumed | **$(69,458)** | | Goodwill from Acquisitions | **$7,589** | [Note 3 Goodwill and Other Intangible Assets](index=15&type=section&id=Note%203%20Goodwill%20and%20Other%20Intangible%20Assets) Goodwill increased to **$841,550 thousand** as of March 30, 2025, primarily due to fiscal year 2025 acquisitions, while total intangible assets decreased to **$44,653 thousand**, with a notable shift in the composition of finite-lived assets due to amortization and changes in trade names | Metric (in thousands) | March 30, 2025 | June 30, 2024 | Change | | :-------------------- | :------------- | :------------ | :----- | | Goodwill | **$841,550** | **$833,888** | **$7,662** | | Total Intangible Assets, net | **$44,653** | **$47,051** | **$(2,398)** | | Amortization expense (Nine Months Ended) | **$5,528** | **$5,315** | **$213** | [Note 4 Property and Equipment](index=16&type=section&id=Note%204%20Property%20and%20Equipment) Net property and equipment increased to **$933,532 thousand** as of March 30, 2025, driven by additions to buildings, equipment, and land, including a significant land purchase adjacent to **Raging Waves water park** | Metric (in thousands) | March 30, 2025 | June 30, 2024 | Change | % Change | | :-------------------- | :------------- | :------------ | :----- | :------- | | Property and equipment, net | **$933,532** | **$887,738** | **$45,794** | **5.16%** | | Land | **$120,239** | **$108,442** | **$11,797** | **10.88%** | | Depreciation expense (Nine Months Ended) | **$97,817** | **$86,554** | **$11,263** | **13.01%** | - Purchased **66 acres of land** adjacent to **Raging Waves water park** for **$9,400 thousand** on **December 16, 2024**[52](index=52&type=chunk) [Note 5 Leases](index=17&type=section&id=Note%205%20Leases) The company leases various assets under operating and finance leases, with total lease costs increasing for the nine months ended March 30, 2025, and operating lease ROU assets and liabilities increasing, while finance lease ROU assets decreased slightly | Metric (in thousands) | Nine Months Ended March 30, 2025 | Nine Months Ended March 31, 2024 | Change | % Change | | :-------------------- | :------------------------------- | :------------------------------- | :----- | :------- | | Total Operating Lease Costs | **$67,676** | **$62,557** | **$5,119** | **8.18%** | | Total Finance Lease Costs | **$50,295** | **$49,831** | **$464** | **0.93%** | | Total Financing Obligation Costs | **$30,488** | **$18,266** | **$12,222** | **66.80%** | | Total Lease Costs, Net | **$196,686** | **$175,666** | **$21,020** | **11.97%** | | Metric (in thousands) | March 30, 2025 | June 30, 2024 | Change | % Change | | :-------------------- | :------------- | :------------ | :----- | :------- | | Operating lease ROU assets, net | **$583,094** | **$559,168** | **$23,926** | **4.28%** | | Operating lease liabilities, ST | **$32,228** | **$28,460** | **$3,768** | **13.24%** | | Operating lease liabilities, LT | **$596,851** | **$561,916** | **$34,935** | **6.22%** | | Finance lease ROU assets, net | **$512,106** | **$524,392** | **$(12,286)** | **(2.34)%** | | Finance lease liabilities, LT | **$682,169** | **$680,213** | **$1,956** | **0.29%** | | Long-term financing obligations | **$447,099** | **$440,875** | **$6,224** | **1.41%** | [Note 6 Accounts Payable and Accrued Expenses](index=19&type=section&id=Note%206%20Accounts%20Payable%20and%20Accrued%20Expenses) Total accounts payable and accrued expenses increased to **$154,740 thousand** as of March 30, 2025, primarily driven by significant increases in customer deposits and interest payable, partially offset by a decrease in accounts payable | Metric (in thousands) | March 30, 2025 | June 30, 2024 | Change | % Change | | :-------------------- | :------------- | :------------ | :----- | :------- | | Total accounts payable and accrued expenses | **$154,740** | **$135,784** | **$18,956** | **13.96%** | | Accounts payable | **$34,379** | **$50,457** | **$(16,078)** | **(31.87)%** | | Customer deposits | **$30,717** | **$14,006** | **$16,711** | **119.31%** | | Interest | **$9,000** | **$1,113** | **$7,887** | **708.63%** | | Other | **$15,670** | **$5,658** | **$10,012** | **176.95%** | [Note 7 Debt](index=20&type=section&id=Note%207.%20Debt) The company's total long-term debt increased to **$1,273,231 thousand** as of March 30, 2025, primarily due to a **$150,000 incremental term loan** obtained in December 2024, with the company remaining in compliance with all debt covenants and using interest rate collars to manage interest rate risk | Metric (in thousands) | March 30, 2025 | June 30, 2024 | Change | % Change | | :-------------------- | :------------- | :------------ | :----- | :------- | | First Lien Credit Facility Term Loan | **$1,282,370** | **$1,138,500** | **$143,870** | **12.64%** | | Total long-term debt | **$1,273,231** | **$1,129,523** | **$143,708** | **12.72%** | - On **December 17, 2024**, the company entered into a **Twelfth Amendment** to the **First Lien Credit Agreement**, providing for an **incremental term loan of $150,000 thousand**, used to repay outstanding Revolver amounts and for general corporate purposes[62](index=62&type=chunk) - The company was **in compliance with all debt covenants** as of **March 30, 2025**[66](index=66&type=chunk) - The company uses **interest rate collars** with a **notional amount of $800,000 thousand** to stabilize interest rate fluctuations, establishing a **SOFR floor of approximately 0.94%** and a **cap of 5.50%**, expiring **March 31, 2026**[67](index=67&type=chunk)[68](index=68&type=chunk) [Note 8 Income Taxes](index=21&type=section&id=Note%208.%20Income%20Taxes) The company's **effective tax rate** for the nine months ended March 30, 2025, was **(5)%**, differing from the **US federal statutory rate of 21%** primarily due to the change in fair value of the earnout liability, permanent differences, and other discrete tax items - The **effective tax rate** for the nine months ended March 30, 2025, was **(5)%**, compared to **(11)%** for the same period in 2024[70](index=70&type=chunk) - The difference from the **US federal statutory rate of 21%** is mainly attributed to the change in fair value of the earnout liability, permanent differences, and other discrete tax items[70](index=70&type=chunk) [Note 9 Commitments and Contingencies](index=21&type=section&id=Note%209.%20Commitments%20and%20Contingencies) The company is involved in various legal proceedings incidental to its business, but management believes their ultimate disposition will **not have a material adverse effect** on its financial position, results of operations, or cash flows - The company faces various inquiries, investigations, claims, lawsuits, and other legal proceedings common to the retail, restaurant, and entertainment industries[71](index=71&type=chunk) - Management believes the ultimate disposition of these matters should **not have a material adverse effect** on the company's consolidated financial position, results of operations, or cash flows[71](index=71&type=chunk) [Note 10 Earnouts](index=21&type=section&id=Note%2010.%20Earnouts) As of March 30, 2025, there were **11,418,357 unvested earnout shares** outstanding, which vest if the **Class A common stock** price reaches **$17.50** for **10 trading days** within a consecutive **20-trading-day period** by **December 15, 2026**, with most earnout shares classified as a liability and changes in fair value recognized in the statement of operations | Metric | Value | | :----- | :---- | | Unvested Earnout Shares Outstanding (as of March 30, 2025) | **11,418,357** | | Vesting Condition | **Class A common stock** price ≥ **$17.50** for **10 trading days** within any consecutive **20 trading day period** | | Vesting Deadline | **December 15, 2026** | [Note 11 Fair Value of Financial Instruments](index=21&type=section&id=Note%2011.%20Fair%20Value%20of%20Financial%20Instruments) The fair value of the company's debt was **$1,290,499 thousand** as of March 30, 2025, and the earnout liability significantly decreased to **$50,172 thousand**, primarily due to a decrease in the company's stock price, as estimated using a **Monte Carlo simulation model** | Metric (in thousands) | March 30, 2025 | June 30, 2024 | Change | | :-------------------- | :------------- | :------------ | :----- | | Carrying value of debt | **$1,295,308** | **$1,152,200** | **$143,108** | | Fair value of debt | **$1,290,499** | **$1,152,200** | **$138,299** | | Earnout shares liability | **$50,172** | **$137,636** | **$(87,464)** | - The fair value of earnout shares is estimated using a **Monte Carlo simulation model (Level 3 inputs)**, with key inputs including an **expected term of 1.71 years**, **expected volatility of 50%**, and a **stock price of $9.91** as of **March 30, 2025**[77](index=77&type=chunk) [Note 12 Common Stock, Preferred Stock and Stockholders' Equity](index=22&type=section&id=Note%2012.%20Common%20Stock,%20Preferred%20Stock%20and%20Stockholders'%20Equity) The company has **Class A common stock**, **Class B common stock**, and **Series A preferred stock**, with **3,300 Series A Preferred Stock shares** converted to **Class A Common Stock** during the nine months ended March 30, 2025, and the Board declared quarterly cash dividends and authorized a **share repurchase program** with **$99,215 thousand** remaining as of March 30, 2025 - The company is authorized to issue **2,000,000,000 shares of Class A common stock**, **200,000,000 shares of Class B common stock**, and **200,000,000 shares of Series A preferred stock**[85](index=85&type=chunk) - **Series A preferred stock** has a **fixed dividend rate of 5.5% per annum** on a **liquidation preference of $1,000 per share**, with **accumulated dividends of $3,407 thousand** added to liquidation preference for the nine months ended March 30, 2025[80](index=80&type=chunk) | Common Stock Dividends Paid (Nine Months Ended March 30, 2025) | Amount (in thousands) | | :------------------------------------------------------------- | :-------------------- | | Total | **$25,283** | - The **share repurchase program**, **extended indefinitely on February 2, 2024**, had a **remaining balance of $99,215 thousand** as of **March 30, 2025**[84](index=84&type=chunk)[87](index=87&type=chunk) [Note 13 Share-Based Compensation](index=24&type=section&id=Note%2013.%20Share-Based%20Compensation) Total unrecognized share-based compensation cost was **$27,426 thousand** as of March 30, 2025, with share-based compensation expense for the nine months ended March 30, 2025, significantly increasing to **$17,955 thousand**, primarily due to a **non-recurring $4,809 thousand expense** from the cash settlement of equity awards related to an executive's retirement | Metric (in thousands) | March 30, 2025 | June 30, 2024 | Change | | :-------------------- | :------------- | :------------ | :----- | | Total unrecognized compensation cost | **$27,426** | **$25,800** | **$1,626** | | Share-Based Compensation Expense (in thousands) | Nine Months Ended March 30, 2025 | Nine Months Ended March 31, 2024 | Change | % Change | | :---------------------------------------------- | :------------------------------- | :------------------------------- | :----- | :------- | | Total share-based compensation expense | **$17,955** | **$9,743** | **$8,212** | **84.29%** | - The increase in share-based compensation expense includes a **non-recurring $4,809 thousand expense** from the **cash settlement of equity awards** for a retiring executive[89](index=89&type=chunk) [Note 14 Net Income (Loss) Per Share](index=25&type=section&id=Note%2014.%20Net%20Income%20(Loss)%20Per%20Share) For the nine months ended March 30, 2025, basic and diluted net income per share attributable to common stockholders were **$0.38** and **$0.36**, respectively, a significant improvement from a **loss per share** in the prior year | Metric | Nine Months Ended March 30, 2025 | Nine Months Ended March 31, 2024 | Change | | :----- | :------------------------------- | :------------------------------- | :----- | | Basic EPS | **$0.38** | **$(0.18)** | **$0.56** | | Diluted EPS | **$0.36** | **$(0.18)** | **$0.54** | | Weighted-average shares outstanding (Basic) | **143,630,881** | **152,945,921** | **(9,315,040)** | | Weighted-average shares outstanding (Diluted) | **150,982,706** | **152,945,921** | **(1,963,215)** | - In periods of **net loss**, potentially dilutive securities are excluded from diluted EPS calculation as their effect is **antidilutive**, making basic and diluted EPS the same[40](index=40&type=chunk) [Note 15 Supplemental Cash Flow Information](index=27&type=section&id=Note%2015.%20Supplemental%20Cash%20Flow%20Information) Supplemental cash flow information for the nine months ended March 30, 2025, shows cash paid for interest of **$129,066 thousand** and income taxes of **$1,848 thousand**, along with noncash investing and financing transactions | Metric (in thousands) | Nine Months Ended March 30, 2025 | Nine Months Ended March 31, 2024 | Change | | :-------------------- | :------------------------------- | :------------------------------- | :----- | | Cash paid for interest | **$129,066** | **$127,067** | **$1,999** | | Cash paid for income taxes, net of refunds | **$1,848** | **$3,118** | **$(1,270)** | | Capital expenditures in accounts payable | **$14,476** | **$25,640** | **$(11,164)** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial performance, condition, and future outlook, highlighting revenue growth, strategic initiatives, and key financial trends for the three and nine months ended March 30, 2025 [Overview](index=28&type=section&id=Overview) **Lucky Strike Entertainment** is a premier operator of location-based entertainment, focused on organic growth, upgrading locations, opening new venues, and acquisitions to create long-term shareholder value - **Lucky Strike Entertainment** operates traditional bowling locations, upscale entertainment concepts with lounge seating, arcades, enhanced food and beverage, and other location-based entertainment like **Octane Raceway**, **Raging Waves water park**, and **Boomers Parks**[99](index=99&type=chunk) - The company's long-term strategy focuses on organic growth, converting and upgrading locations, opening new venues, and acquisitions to improve operating profit margins and leverage fixed costs[100](index=100&type=chunk) [Recent Developments](index=28&type=section&id=Recent%20Developments) Recent developments for the nine months ended March 30, 2025, include **3% total revenue growth**, rebranding to **Lucky Strike Entertainment**, opening **four new locations**, completing three acquisitions (**Boomers Parks, Spectrum Entertainment Complex, Adventure Park**), acquiring land for expansion, and increasing the **term loan by $150,000 thousand** - **Total revenue growth of 3%** for the nine months ended March 30, 2025[103](index=103&type=chunk) - **Rebranded** the company from **Bowlero** to **Lucky Strike Entertainment**[103](index=103&type=chunk) - **Opened four newly-built Lucky Strike locations** and completed acquisitions of **Boomers Parks, Spectrum Entertainment Complex, and Adventure Park**. Also **acquired 66 acres of land** adjacent to **Raging Waves water park**[103](index=103&type=chunk) - **Increased term loan by $150,000 thousand**[103](index=103&type=chunk) [Trends](index=28&type=section&id=Trends) Future profitability is influenced by changing economic conditions, debt levels, interest rates, and increasing labor and inventory costs, with the business being seasonal and highest sales volumes typically in the **third fiscal quarter** due to holidays and weather - Factors affecting future profitability include economic conditions, debt levels, interest rates, and increasing labor and inventory costs (food and beverage)[101](index=101&type=chunk) - Operating results fluctuate seasonally, with the highest sales volumes typically generated during the **third fiscal quarter** due to leagues, holidays, and changing weather conditions[102](index=102&type=chunk) [Presentation of Results of Operations](index=29&type=section&id=Presentation%20of%20Results%20of%20Operations) The company reports on a fiscal year with quarters generally comprising **one 5-week and two 4-week periods** - The company's fiscal year is divided into quarters, each typically consisting of **one 5-week period and two 4-week periods**[104](index=104&type=chunk) [Results of Operations (Three Months Ended March 30, 2025 Compared to March 31, 2024)](index=29&type=section&id=Results%20of%20Operations%20(Three%20Months%20Ended%20March%2030,%202025%20Compared%20to%20March%2031,%202024)) For the three months ended March 30, 2025, total revenues increased slightly by **1%**, driven by new locations, but net income decreased by **44%** due to higher operating costs, increased depreciation, and a significant increase in income tax expense, despite a favorable change in earnout liability | Metric (in thousands) | March 30, 2025 | March 31, 2024 | Change | % Change | | :-------------------- | :------------- | :------------- | :----- | :------- | | Total Revenues | **$339,882** | **$337,670** | **$2,212** | **1%** | | Operating Income | **$62,185** | **$71,012** | **$(8,827)** | **(12)%** | | Net Income | **$13,292** | **$23,846** | **$(10,554)** | **(44)%** | | Income Tax Expense | **$18,348** | **$9,141** | **$9,207** | * | | Change in fair value of earnout liability | **$(18,886)** | **$(8,868)** | **$(10,018)** | * | - **Same-store revenues decreased by 6%** due to a reduction in corporate event business[108](index=108&type=chunk)[109](index=109&type=chunk) - **Location operating costs increased by 7%** due to location count growth from acquisitions and lease agreements, with **Raging Waves water park** and **Boomers Parks** contributing **$4,300 thousand** to the increase[111](index=111&type=chunk) - **Selling, general and administrative (SG&A) expenses increased by 11%**, primarily due to a **non-recurring $4,809 thousand share-based compensation expense** from an executive's retirement settlement[114](index=114&type=chunk) [Results of Operations (Nine Months Ended March 30, 2025 Compared to March 31, 2024)](index=32&type=section&id=Results%20of%20Operations%20(Nine%20Months%20Ended%20March%2030,%202025%20Compared%20to%20March%2031,%202024)) For the nine months ended March 30, 2025, total revenues increased by **3%**, leading to a significant turnaround from a **net loss of $21,404 thousand** to a **net income of $64,694 thousand**, largely driven by a favorable change in the fair value of earnout liability and increased revenue from new locations | Metric (in thousands) | March 30, 2025 | March 31, 2024 | Change | % Change | | :-------------------- | :------------- | :------------- | :----- | :------- | | Total Revenues | **$900,151** | **$870,746** | **$29,405** | **3%** | | Operating Income | **$122,004** | **$125,845** | **$(3,841)** | **(3)%** | | Net Income (Loss) | **$64,694** | **$(21,404)** | **$86,098** | * | | Change in fair value of earnout liability | **$(87,489)** | **$14,541** | **$(102,030)** | * | - **Same-store revenues decreased by 4%** due to a reduction in corporate event business[123](index=123&type=chunk)[124](index=124&type=chunk) - **Location operating costs increased by 9%** due to location count growth from acquisitions and lease agreements, with **Raging Waves water park** and **Boomers Parks** contributing **$10,600 thousand** to the increase[125](index=125&type=chunk) - **Selling, general and administrative (SG&A) expenses decreased by 1%**, primarily due to a **$10,000 thousand decrease** in professional fees, partially offset by an **$8,200 thousand increase** in **share-based compensation expense** (including a **$4,809 thousand non-recurring executive retirement settlement**)[128](index=128&type=chunk) [Non-GAAP measure (Adjusted EBITDA)](index=34&type=section&id=Non-GAAP%20measure%20(Adjusted%20EBITDA)) **Adjusted EBITDA** for the nine months ended March 30, 2025, was **$278,960 thousand**, a slight increase of **0.32%** from the prior year, reflecting adjustments for non-cash and non-recurring items to provide a clearer view of core operating performance - **Adjusted EBITDA** is a **non-GAAP financial measure** used by management to analyze operating performance by excluding items not indicative of core operations, such as interest expense, income taxes, depreciation, amortization, impairment charges, share-based compensation, and changes in earnout value[133](index=133&type=chunk) | Metric (in thousands) | Nine Months Ended March 30, 2025 | Nine Months Ended March 31, 2024 | Change | % Change | | :-------------------- | :------------------------------- | :------------------------------- | :----- | :------- | | Net income (loss) | **$64,694** | **$(21,404)** | **$86,098** | * | | Adjusted EBITDA | **$278,960** | **$278,066** | **$894** | **0.32%** | [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) The company manages liquidity through available cash, cash generation, and access to capital, believing its financial position, operating cash flows, existing credit facility, and potential additional financing will be sufficient to meet future operational requirements, capital expenditures, and commitments - As of **March 30, 2025**, the company had approximately **$79,088 thousand of available cash and cash equivalents**[137](index=137&type=chunk) - The company's long-term strategy includes capital expenditures for new locations and upgrading existing ones, funded by available cash, operating cash flows, existing credit facilities, and potential sale-lease-back transactions[136](index=136&type=chunk) - **Operating activities provided $154,767 thousand**, **investing activities used $166,412 thousand**, and **financing activities provided $23,925 thousand** for the nine months ended March 30, 2025[138](index=138&type=chunk)[139](index=139&type=chunk)[140](index=140&type=chunk)[141](index=141&type=chunk) [Critical Accounting Estimates](index=35&type=section&id=Critical%20Accounting%20Estimates) There have been **no significant changes** to the company's critical accounting estimates during the quarter ended March 30, 2025, as previously discussed in its fiscal year 2024 Form 10-K - **No significant changes** in critical accounting estimates occurred during the quarter ended March 30, 2025[143](index=143&type=chunk) [Recently Issued Accounting Standards](index=36&type=section&id=Recently%20Issued%20Accounting%20Standards) Information regarding new accounting pronouncements is detailed in **Note 1** of the Condensed Consolidated Financial Statements - Refer to **Note 1** for details on recently issued accounting standards[145](index=145&type=chunk) [Emerging Growth Company Accounting Election](index=36&type=section&id=Emerging%20Growth%20Company%20Accounting%20Election) As an **emerging growth company**, **Lucky Strike** has elected to use the **extended transition period** for new accounting standards, which may result in financial statements not being comparable to companies that comply with public company effective dates - The company, as an **emerging growth company**, has elected to use the **extended transition period** for complying with new or revised accounting standards[146](index=146&type=chunk) - This election may lead to **non-comparability** of financial statements with other public companies that do not use the **extended transition period**[146](index=146&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section discusses the company's exposure to market risks, including interest rate risk, credit risk, commodity price risk, and inflation, and how it attempts to manage these risks through operating and financing activities [Interest Rate Risk](index=36&type=section&id=Interest%20Rate%20Risk) The company is exposed to interest rate risk on its variable-rate debt, where a **1.0% increase or decrease** in the effective interest rate would impact **annual interest expense** by approximately **$12,824 thousand**, and **interest rate collars** are used to hedge **$800,000 thousand** of the Term Loan, setting a **SOFR floor of approximately 0.94%** and a **cap of 5.50%** until **March 31, 2026** - A **1.0% increase or decrease** in the effective interest rate would cause an approximate **$12,824 thousand change in annual interest expense** on outstanding debt[148](index=148&type=chunk) - The company uses **interest rate collars** for an aggregate **notional amount of $800,000 thousand** of its Term Loan, with a **SOFR floor of approximately 0.94%** and a **cap of 5.50%**, maturing **March 31, 2026**[148](index=148&type=chunk) [Credit Risk](index=36&type=section&id=Credit%20Risk) The company's **Credit risk** primarily relates to cash and temporary investments held with high-quality financial institutions, which it monitors while prioritizing safety and liquidity of principal - **Credit risk** is concentrated in cash and temporary investments, which are placed with high-quality financial institutions[149](index=149&type=chunk) - The company monitors third-party depository institutions and prioritizes safety and liquidity of principal over maximizing yield[149](index=149&type=chunk) [Commodity Price Risk](index=36&type=section&id=Commodity%20Price%20Risk) The company is exposed to **market price fluctuations** in food, beverage, supplies, and energy costs, where volatility in commodity prices can **materially impact food costs**, and the ability to pass these increases to customers may be **limited by the competitive environment** - The company is exposed to **market price fluctuations** in food, beverage, supplies, and energy[150](index=150&type=chunk) - Price volatility in commodities like proteins, produce, dairy, and cooking oil can **materially impact food costs**, and the ability to pass these costs to customers is **limited by the competitive environment**[150](index=150&type=chunk) [Inflation](index=36&type=section&id=Inflation) The company experiences **inflation** in product purchases, which can **materially impact its financial condition**, and while it monitors prices and may adjust its own pricing, competitive pressures can **limit its ability to fully recover higher costs** - The company experiences **inflation** in the purchase of products necessary for its business operations[151](index=151&type=chunk) - Price volatility from **inflation** could **materially impact financial condition and results of operations**, and the ability to recover higher costs through increased pricing may be **limited by the competitive environment**[151](index=151&type=chunk) [Item 4. Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the **effectiveness** of the company's **Disclosure controls and procedures** as of March 30, 2025, and reports **no material changes** in **internal control over financial reporting** during the quarter [Evaluation of Disclosure Controls and Procedures](index=37&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) The Chief Executive Officer and Chief Financial Officer concluded that the company's **Disclosure controls and procedures** were **effective** as of **March 30, 2025** - **Disclosure controls and procedures** are designed to ensure timely and proper reporting of information to management[152](index=152&type=chunk) - The CEO and CFO concluded that these controls and procedures were **effective** as of **March 30, 2025**[152](index=152&type=chunk) [Changes in Internal Control Over Financial Reporting](index=37&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) There were **no material changes to internal control over financial reporting** that materially affected, or are reasonably likely to materially affect, **internal control over financial reporting** during the **third quarter** ended **March 30, 2025** - **No material changes to internal control over financial reporting** occurred during the **third quarter** ended **March 30, 2025**[153](index=153&type=chunk) [Part II - Other Information](index=37&type=section&id=Part%20II%20-%20Other%20Information) This part includes disclosures on legal proceedings, risk factors, unregistered sales of equity securities, and exhibits [Item 1. Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) For a description of all **Material pending legal proceedings**, refer to **Note 9 - Commitments and Contingencies** in the notes to the Condensed Consolidated Financial Statements - **Material pending legal proceedings** are described in **Note 9 - Commitments and Contingencies**[155](index=155&type=chunk) [Item 1A. Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) There have been **no material changes to risk factors** previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended June 30, 2024 - **No material changes to risk factors** since the Annual Report on Form 10-K for the fiscal year ended June 30, 2024[156](index=156&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's purchases of its own equity securities, specifically **Class A common stock**, during the quarter ended March 30, 2025, including both publicly announced repurchase program activities and an **employment separation agreement** repurchase [Issuer Purchases of Equity Securities](index=37&type=section&id=Issuer%20Purchases%20of%20Equity%20Securities) During the quarter ended March 30, 2025, the company repurchased a total of **3,690,774 Class A shares** at an average price of **$10.81**, including **1,943,340 shares** under its publicly announced program and **1,747,434 shares** as part of an **employment separation agreement** | Period | Total Number of Class A Shares Purchased | Average Price Paid per Class A Share | Total Number of Shares Purchased as Part of Publicly Announced Programs | Dollar Value of Shares That May Yet Be Purchased Under The Publicly Announced Repurchase Program (in thousands) | | :----- | :--------------------------------------- | :----------------------------------- | :-------------------------------------------------------------------- | :------------------------------------------------------------------------------------------------------------ | | Dec 30, 2024 to Feb 2, 2025 | **1,733,144** | **$10.26** | **1,733,144** | **$101,154** | | Feb 3, 2025 to Mar 2, 2025 | **500** | **$10.44** | **500** | **$101,149** | | Mar 3, 2025 to Mar 30, 2025 | **1,957,130** | **$11.29** | **209,696** | **$99,215** | | **Total** | **3,690,774** | **$10.81** | **1,943,340** | | - The company repurchased **1,747,434 shares of Class A common stock** at **$11.54 per share** as part of an **employment separation agreement**, which was not part of the publicly announced repurchase program[159](index=159&type=chunk) [Item 6. Exhibits and Financial Statement Schedules](index=38&type=section&id=Item%206.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all exhibits filed with the Form 10-Q, including employment agreements, certifications of principal officers, and **XBRL interactive data files** - Exhibits include an amendment to an employment agreement, certifications of the **Principal Executive Officer** and **Principal Financial Officer**, and **XBRL interactive data files**[160](index=160&type=chunk) [Signatures](index=39&type=section&id=Signatures) This section contains the required signatures for the Form 10-Q filing - The report was signed by **Robert M. Lavan**, **Chief Financial Officer (Principal Financial Officer)**, on **May 8, 2025**[165](index=165&type=chunk)

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) Lucky Strike Entertainment's Q3 FY2025 results show mixed performance, strategic acquisitions, capital returns, and no forward guidance [Quarter Highlights](index=1&type=section&id=Quarter%20Highlights) Q3 FY2025 saw slight revenue growth, but declines in Same Store Revenue, Net Income, and Adjusted EBITDA, alongside strategic acquisitions and strong Summer Season Pass sales - Retail and Leagues businesses remained stable, Food sales grew by **high single digits**, while Corporate Events business declined, most notably in tech-aligned markets (California and Seattle)[3](index=3&type=chunk) - Summer Season Pass program sales are over **200% higher** than the prior year, indicating strong consumer demand for high-value entertainment[4](index=4&type=chunk) - The company acquired three water parks (including Shipwreck Island) and seven family entertainment centers this year, expecting greater scale during slower summer months[4](index=4&type=chunk) - Capital expenditures are down **20% year-to-date**, reflecting a disciplined approach to expense management and prioritization of high-return capital investments[4](index=4&type=chunk) Q3 FY2025 Financial Highlights (vs. Prior Year) | Metric | Q3 FY2025 (in millions) | Q3 FY2024 (in millions) | Change (%) | | :--------------------- | :---------------------- | :---------------------- | :--------- | | Total Revenue | $339.9 | $337.7 | +0.7% | | Same Store Revenue | - | - | -5.6% | | Net Income | $13.3 | $23.8 | -44.2% | | Adjusted EBITDA | $117.3 | $122.8 | -4.5% | - As of May 8, 2025, the company operates **367 locations**, having acquired one family entertainment center and one water park between December 30, 2024, and May 8, 2025, with 34 current Lucky Strike locations progressing on rebrand initiatives[5](index=5&type=chunk) [Share Repurchase and Capital Return Program Update](index=2&type=section&id=Share%20Repurchase%20and%20Capital%20Return%20Program%20Update) Lucky Strike Entertainment updated on its capital return program, detailing recent share repurchases and the declaration of a quarterly cash dividend for the fourth quarter of fiscal year 2025 Share Repurchase Activity (Dec 30, 2024 - May 5, 2025) | Metric | Value | | :-------------------------------- | :----------- | | Shares Repurchased (Class A common stock) | 4.5 million | | Total Cost | ~$47 million | | Remaining under program | $92 million | - The Board of Directors declared a quarterly cash dividend of **$0.055 per share** of common stock for the fourth quarter of fiscal year 2025, payable on June 6, 2025, to stockholders of record on May 23, 2025[6](index=6&type=chunk) [Guidance](index=2&type=section&id=Guidance) Due to increasing economic uncertainty, Lucky Strike Entertainment is not issuing forward-looking guidance at this time but plans to reassess later in the year, expressing confidence in its long-term resilience and growth strategies - The Company will not be issuing guidance at this time due to increasing economic uncertainty, with an intention to reassess later in the year[7](index=7&type=chunk) - Management remains confident in the Company's resiliency and its ability to drive revenue growth through strategic initiatives, targeted capital investments, and selective acquisitions[7](index=7&type=chunk) [Company Overview](index=3&type=section&id=Company%20Overview) This section provides an overview of Lucky Strike Entertainment's business, operations, and investor webcast details [About Lucky Strike Entertainment](index=3&type=section&id=About%20Lucky%20Entertainment) Lucky Strike Entertainment is a leading location-based entertainment platform operating over 360 locations across North America, offering diverse experiential entertainment and owning the Professional Bowlers Association - Lucky Strike Entertainment is one of the world's premier location-based entertainment platforms with over **360 locations** across North America[8](index=8&type=chunk) - The company provides experiential offerings in bowling, amusements, water parks, and family entertainment centers[8](index=8&type=chunk) - Lucky Strike Entertainment also owns the Professional Bowlers Association (PBA), a major league of bowling[8](index=8&type=chunk) [Investor Webcast Information](index=3&type=section&id=Investor%20Webcast%20Information) Information regarding the investor webcast for Lucky Strike Entertainment's Q3 FY2025 results, including access details - An investor webcast hosted by Lucky Strike Entertainment was accessible at 9:00 AM ET on May 8, 2025, in the Events & Presentations section of its Investor Relations website[8](index=8&type=chunk) [Financial Performance (GAAP)](index=6&type=section&id=Financial%20Performance%20(GAAP)) This section presents Lucky Strike Entertainment's GAAP financial statements, including balance sheets, statements of operations, and cash flows [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The condensed consolidated balance sheets provide a snapshot of Lucky Strike Entertainment's financial position as of March 30, 2025, compared to June 30, 2024, detailing assets, liabilities, temporary equity, and stockholders' deficit Condensed Consolidated Balance Sheets (Amounts in thousands) | Item | March 30, 2025 (in thousands) | June 30, 2024 (in thousands) | | :----------------------------------- | :---------------------------- | :--------------------------- | | **Assets** | | | | Total current assets | $128,386 | $113,962 | | Property and equipment, net | $933,532 | $887,738 | | Operating lease right of use assets | $583,094 | $559,168 | | Finance lease right of use assets, net | $512,106 | $524,392 | | Goodwill | $841,550 | $833,888 | | Total assets | $3,195,717 | $3,114,035 | | **Liabilities, Temporary Equity and Stockholders' Deficit** | | | | Total current liabilities | $201,800 | $182,806 | | Long-term debt, net | $1,273,231 | $1,129,523 | | Long-term obligations of operating lease liabilities | $596,851 | $561,916 | | Long-term obligations of finance lease liabilities | $682,169 | $680,213 | | Earnout liability | $50,172 | $137,636 | | Total liabilities | $3,282,121 | $3,163,887 | | Series A preferred stock | $127,325 | $127,410 | | Total stockholders' deficit | $(213,729) | $(177,262) | | Total liabilities, temporary equity and stockholders' deficit | $3,195,717 | $3,114,035 | [Condensed Consolidated Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The condensed consolidated statements of operations present Lucky Strike Entertainment's revenues, costs, and net income for the three and nine months ended March 30, 2025, compared to the corresponding periods in the prior fiscal year Condensed Consolidated Statements of Operations (Amounts in thousands) | Item | Three Months Ended March 30, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | Nine Months Ended March 30, 2025 (in thousands) | Nine Months Ended March 31, 2024 (in thousands) | | :------------------------------------------------ | :----------------------------------------------- | :----------------------------------------------- | :---------------------------------------------- | :---------------------------------------------- | | **Revenues** | | | | | | Bowling | $159,756 | $165,528 | $420,926 | $427,253 | | Food & beverage | $120,452 | $118,032 | $319,393 | $304,137 | | Amusement & other | $59,674 | $54,110 | $159,832 | $139,356 | | **Total revenues** | **$339,882** | **$337,670** | **$900,151** | **$870,746** | | **Costs and expenses** | | | | | | Total costs and expenses | $277,697 | $266,658 | $778,147 | $744,901 | | **Operating income** | **$62,185** | **$71,012** | **$122,004** | **$125,845** | | **Other (income) expenses** | | | | | | Interest expense, net | $49,414 | $46,890 | $146,879 | $130,575 | | Change in fair value of earnout liability | $(18,886) | $(8,868) | $(87,489) | $14,541 | | Total other expense | $30,545 | $38,025 | $60,207 | $145,182 | | Income (loss) before income tax expense (benefit) | $31,640 | $32,987 | $61,797 | $(19,337) | | Income tax expense (benefit) | $18,348 | $9,141 | $(2,897) | $2,067 | | **Net income (loss)** | **$13,292** | **$23,846** | **$64,694** | **$(21,404)** | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The condensed consolidated statements of cash flows illustrate the movement of cash from operating, investing, and financing activities for the three and nine months ended March 30, 2025, and their impact on the company's cash and cash equivalents Condensed Consolidated Statements of Cash Flows (Amounts in thousands) | Item | Three Months Ended March 30, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | Nine Months Ended March 30, 2025 (in thousands) | Nine Months Ended March 31, 2024 (in thousands) | | :------------------------------------------ | :----------------------------------------------- | :----------------------------------------------- | :---------------------------------------------- | :---------------------------------------------- | | Net cash provided by operating activities | $86,620 | $76,899 | $154,767 | $148,098 | | Net cash used in investing activities | $(33,198) | $(39,294) | $(166,412) | $(285,960) | | Net cash (used in) provided by financing activities | $(55,174) | $(15,451) | $23,925 | $154,287 | | Effect of exchange rate changes on cash | $85 | $320 | $(164) | $371 | | Net (decrease) increase in cash and cash equivalents | $(1,667) | $22,474 | $12,116 | $16,796 | | Cash and cash equivalents at beginning of period | $80,755 | $189,955 | $66,972 | $195,633 | | Cash and cash equivalents at end of period | $79,088 | $212,429 | $79,088 | $212,429 | [Liquidity and Capital Resources](index=10&type=section&id=Liquidity%20and%20Capital%20Resources) This section details Lucky Strike Entertainment's net debt and available liquidity, including cash and revolving borrowing capacity [Balance Sheet and Liquidity](index=10&type=section&id=Balance%20Sheet%20and%20Liquidity) This section details Lucky Strike Entertainment's net debt and available liquidity, including cash on hand and revolving borrowing capacity, as of March 30, 2025, and June 30, 2024 Net Debt (in thousands) | Item | March 30, 2025 (in thousands) | June 30, 2024 (in thousands) | | :------------------ | :---------------------------- | :--------------------------- | | Cash and cash equivalents | $79,088 | $66,972 | | Bank debt and loans | $1,295,308 | $1,152,200 | | Net debt | $1,216,220 | $1,085,228 | Cash on Hand and Revolving Borrowing Capacity (in thousands) | Item | March 30, 2025 (in thousands) | June 30, 2024 (in thousands) | | :---------------------------------------- | :---------------------------- | :--------------------------- | | Cash and cash equivalents | $79,088 | $66,972 | | Revolver Capacity | $335,000 | $285,000 | | Revolver capacity committed to letters of credit | $(22,422) | $(15,834) | | Total cash on hand and revolving borrowing capacity | $391,666 | $336,138 | [Non-GAAP Financial Measures & Reconciliations](index=4&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Reconciliations) This section defines Lucky Strike Entertainment's non-GAAP financial measures and provides reconciliations for Same Store Revenue and Adjusted EBITDA [Non-GAAP Measures Definitions](index=4&type=section&id=Non-GAAP%20Measures%20Definitions) This section defines Lucky Strike Entertainment's non-GAAP financial measures, including Revenue Excluding Service Fee Revenue, Total Location Revenue, Same Store Revenue, and Adjusted EBITDA, explaining their utility for investors and management, as well as their inherent limitations - Non-GAAP measures (Revenue Excluding Service Fee Revenue, Total Location Revenue, Same Store Revenue, Adjusted EBITDA) are used to assist investors and management in analyzing and benchmarking business performance and value[11](index=11&type=chunk) - Definitions: Revenue Excluding Service Fee Revenue (Total Revenue less Service Fee Revenue), Total Location Revenue (Total Revenue less Non-Location Related Revenue, Revenue from Closed Locations, and Service Fee Revenue), Same Store Revenue (Total Location Revenue less Acquired Revenue), and Adjusted EBITDA (Net Income (Loss) before various non-operating and non-cash items)[12](index=12&type=chunk) - Adjusted EBITDA has limitations as an analytical tool, as it does not reflect capital expenditures, changes in working capital, interest expense, income tax, non-cash equity compensation, or the impact of non-ongoing operations[14](index=14&type=chunk)[15](index=15&type=chunk) [Same Store Revenue Reconciliation](index=11&type=section&id=Same%20Store%20Revenue%20Reconciliation) This reconciliation details the calculation of Same Store Revenue for the three months ended March 30, 2025, showing a 5.6% year-over-year decrease, despite a slight increase in reported total revenue Same Store Revenue Reconciliation (in thousands) | Item | Three Months Ended March 30, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | | :------------------------------------ | :----------------------------------------------- | :----------------------------------------------- | | Total Revenue - Reported | $339,882 | $337,670 | | less: Service Fee Revenue | $(636) | $(1,270) | | Revenue Excluding Service Fee Revenue | $339,246 | $336,400 | | less: Non-Location Related (including Closed Centers) | $(4,746) | $(4,096) | | Total Location Revenue | $334,500 | $332,304 | | less: Acquired Revenue | $(21,191) | $(320) | | **Same Store Revenue** | **$313,309** | **$331,984** | | **% Year-over-Year Change** | | | | Total Revenue – Reported | 0.7% | | | Same Store Revenue | (5.6)% | | [Adjusted EBITDA Reconciliation](index=12&type=section&id=Adjusted%20EBITDA%20Reconciliation) The Adjusted EBITDA reconciliation provides a detailed breakdown from GAAP Net Income to Adjusted EBITDA for the three months ended March 30, 2025, showing a decrease in Adjusted EBITDA and its margin compared to the prior year Adjusted EBITDA Reconciliation (in thousands) | Item | Three Months Ended March 30, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | | :------------------------------------------ | :----------------------------------------------- | :----------------------------------------------- | | Consolidated Revenue | $339,882 | $337,670 | | Net income - GAAP | $13,292 | $23,846 | | Net income margin | 3.9% | 7.1% | | **Adjustments:** | | | | Interest expense | $49,414 | $49,177 | | Income tax expense | $18,348 | $9,141 | | Depreciation and amortization | $40,741 | $36,765 | | Loss on impairment, disposals, and other charges, net | $648 | $1,011 | | Share-based compensation (1) | $8,788 | $4,143 | | Closed location EBITDA (2) | $251 | $2,159 | | Transactional and other advisory costs (3) | $4,485 | $3,813 | | Changes in the value of earnouts (4) | $(18,886) | $(8,868) | | Other, net (5) | $179 | $1,619 | | **Adjusted EBITDA** | **$117,260** | **$122,806** | | **Adjusted EBITDA Margin** | **34.5%** | **36.4%** | - Adjustments to Net Income include a non-recurring settlement of equity awards related to an executive's retirement, contributing an additional **$4,809 thousand** to share-based compensation expense[25](index=25&type=chunk) - Adjustments also account for EBITDA from closed locations, transactional and other advisory costs, and changes in the fair value of earnout liabilities[26](index=26&type=chunk)[27](index=27&type=chunk)[28](index=28&type=chunk) [Legal & Disclaimers](index=3&type=section&id=Legal%20%26%20Disclaimers) This section outlines the company's forward-looking statements disclaimer, highlighting inherent risks and uncertainties [Forward Looking Statements](index=3&type=section&id=Forward%20Looking%20Statements) This section serves as a standard disclaimer, indicating that certain statements in the press release are forward-looking and involve risks, assumptions, and uncertainties that could cause actual results to differ materially from expectations - The press release contains forward-looking statements subject to risks, assumptions, and uncertainties, which are identified by terms such as 'anticipate,' 'believe,' 'expect,' etc[9](index=9&type=chunk) - These statements reflect management's current views but offer no assurance that expectations will be correct, as future events or results could differ materially due to factors largely outside the company's control[9](index=9&type=chunk) - Risks include, but are not limited to, business strategy execution, consumer preferences, competition, publicity, leases, key personnel retention, indebtedness, expansion plans, litigation, intellectual property, employee retention, commodity costs, cybersecurity, catastrophic events, regulatory changes, operating results fluctuations, and economic conditions (interest rates, inflation, recession)[9](index=9&type=chunk) - The company disclaims any obligation to publicly update or review forward-looking statements, except as required by applicable law[10](index=10&type=chunk) [Company Information](index=13&type=section&id=Company%20Information) This section provides contact information for Lucky Strike Entertainment's investor relations [Contacts](index=13&type=section&id=Contacts) This section provides the contact information for Lucky Strike Entertainment's Investor Relations - For investor relations inquiries, contact IR@LSEnt.com[30](index=30&type=chunk)

Core Insights - Crown Holdings, Inc. has partnered with San Juan Beverage Company to exclusively provide packaging for SAN JUAN BAMMARITA, a premium ready-to-drink cocktail created with former NFL player Kam Chancellor [1][2] - BAMMARITA is positioned as a gluten-free, lower-calorie alternative to traditional margaritas, featuring four flavors: Lime, Cadillac, Mango, and Kiwi Strawberry, each with 6% alcohol by volume [3][2] - A portion of BAMMARITA's sales will be donated to charity: water, supporting clean water access projects globally [2] Company Overview - Crown Holdings, Inc. is a leading global supplier of rigid packaging products, headquartered in Tampa, Florida, and serves various consumer marketing companies [5] - San Juan Beverage Company, founded in 2017, is known for its small-batch hard seltzers and has launched the first production Seltzery® in the nation [4][7] - West Coast Container will collaborate with Crown to support the new product launch, leveraging their experience in new product development [8] Market Context - The ready-to-drink (RTD) market is rapidly growing, and the partnership aims to capitalize on this trend by bringing innovative products to consumers [2] - The launch of BAMMARITA is strategically timed with seasonal promotions, such as Cinco de Mayo and Memorial Day, to maximize visibility and sales [3]

Part I [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company's financial statements for the period ended December 29, 2024, reflect increased revenue, positive net income, and growth in total assets [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of December 29, 2024, total assets increased to **$3.24 billion** and total liabilities to **$3.30 billion**, primarily due to growth in property and long-term debt Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 29, 2024 | June 30, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$3,239,985** | **$3,114,035** | | Cash and cash equivalents | $80,755 | $66,972 | | Property and equipment, net | $935,854 | $887,738 | | Goodwill | $841,269 | $833,888 | | **Total Liabilities** | **$3,295,725** | **$3,163,887** | | Long-term debt, net | $1,275,757 | $1,129,523 | | Long-term obligations of operating lease liabilities | $603,986 | $561,916 | | **Total stockholders' deficit** | **($179,658)** | **($177,262)** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the six months ended December 29, 2024, total revenues increased to **$560.3 million**, with net income turning positive to **$51.4 million**, largely due to fair value changes Quarterly Performance (in thousands, except per share data) | Metric | Q2 FY2025 (ended Dec 29, 2024) | Q2 FY2024 (ended Dec 31, 2023) | | :--- | :--- | :--- | | Total Revenues | $300,074 | $305,671 | | Operating Income | $46,873 | $49,477 | | Net Income (Loss) | $28,307 | ($63,469) | | Diluted EPS | $0.16 | ($0.44) | Six-Month Performance (in thousands, except per share data) | Metric | H1 FY2025 (ended Dec 29, 2024) | H1 FY2024 (ended Dec 31, 2023) | | :--- | :--- | :--- | | Total Revenues | $560,269 | $533,076 | | Operating Income | $59,819 | $54,833 | | Net Income (Loss) | $51,402 | ($45,250) | | Diluted EPS | $0.29 | ($0.32) | - A significant driver of the improved net income was the change in fair value of earnout liability, which contributed a gain of **$68.6 million** in the first six months of fiscal 2025, compared to a loss of **$23.4 million** in the same period of the prior year[14](index=14&type=chunk) [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20%28Loss%29) For the six months ended December 29, 2024, the company reported a total comprehensive income of **$49.3 million**, primarily from net income offset by other comprehensive losses Comprehensive Income (Loss) Summary (in thousands) | Description | Six Months Ended Dec 29, 2024 | Six Months Ended Dec 31, 2023 | | :--- | :--- | :--- | | Net income (loss) | $51,402 | ($45,250) | | Other comprehensive loss | ($2,117) | ($3,271) | | **Total comprehensive income (loss)** | **$49,285** | **($48,521)** | [Condensed Consolidated Statements of Changes in Temporary Equity and Stockholders' (Deficit) Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Temporary%20Equity%20and%20Stockholders'%20%28Deficit%29%20Equity) During the six months ended December 29, 2024, the stockholders' deficit increased, influenced by net income, share repurchases, and dividend payments - For the six months ended December 29, 2024, the company recorded net income of **$51.4 million**, which increased the accumulated deficit[14](index=14&type=chunk)[19](index=19&type=chunk) - The company repurchased Class A common stock for treasury at a cost of **$45.8 million** (**$38.1 million** in Q2, **$7.7 million** in Q1) and paid cash dividends of **$17.0 million** (**$8.5 million** in Q2, **$8.5 million** in Q1) during the six-month period[19](index=19&type=chunk)[23](index=23&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended December 29, 2024, operating activities provided **$68.1 million** in cash, while investing and financing activities significantly impacted overall cash flow Cash Flow Summary (in thousands) | Activity | Six Months Ended Dec 29, 2024 | Six Months Ended Dec 31, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $68,147 | $71,199 | | Net cash used in investing activities | ($133,214) | ($246,666) | | Net cash provided by financing activities | $79,099 | $169,738 | | **Net increase (decrease) in cash** | **$13,783** | **($5,678)** | - Investing activities included **$92.0 million** for purchases of property and equipment and **$42.9 million** for acquisitions[22](index=22&type=chunk) - Financing activities were highlighted by **$150.0 million** in proceeds from an Incremental Term Loan, offset by **$45.4 million** in share repurchases and **$17.0 million** in dividend payments[23](index=23&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail significant events including the company's name change, **$42.9 million** in acquisitions, a **$150 million** incremental term loan, and **$45.4 million** in share repurchases - Effective December 12, 2024, the company changed its name from Bowlero Corporation to Lucky Strike Entertainment Corporation and its stock ticker from BOWL to LUCK[28](index=28&type=chunk) - During the six months ended December 29, 2024, the Company acquired eight locations in two separate transactions for a total consideration of **$42.9 million**[46](index=46&type=chunk) - On December 17, 2024, the company entered into an amendment to its First Lien Credit Agreement, which provided for an incremental term loan of **$150 million**[61](index=61&type=chunk) - For the six months ended December 29, 2024, the company repurchased **4,037,170 shares** of Class A common stock for **$45.4 million**, with **$118.9 million** remaining available under the repurchase program[84](index=84&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a **5%** revenue increase, strategic rebranding and acquisitions, and a **$150 million** term loan increase, with Adjusted EBITDA reaching **$161.7 million** for the six-month period - Recent strategic developments include: - Rebranding from Bowlero to Lucky Strike Entertainment - Completing and opening four new Lucky Strike locations - Acquiring Boomers Parks and Spectrum Entertainment Complex - Acquiring 66 acres of land adjacent to Raging Waves water park for expansion - Increasing the term loan by **$150 million**[100](index=100&type=chunk) Same-Store Revenue Comparison (in thousands) | Period | Same-Store Revenue | % Change | | :--- | :--- | :--- | | Three Months Ended Dec 29, 2024 | $280,530 | (6)% | | Six Months Ended Dec 29, 2024 | $471,074 | (3)% | Adjusted EBITDA Reconciliation (in thousands) | Period | Net Income (Loss) | Adjusted EBITDA | | :--- | :--- | :--- | | Three Months Ended Dec 29, 2024 | $28,307 | $98,757 | | Three Months Ended Dec 31, 2023 | ($63,469) | $103,126 | | Six Months Ended Dec 29, 2024 | $51,402 | $161,700 | | Six Months Ended Dec 31, 2023 | ($45,250) | $155,260 | - The company believes its financial position, cash generation, and access to capital will provide sufficient resources to fund operations, capital expenditures, acquisitions, and the share repurchase program[133](index=133&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company faces market risks including interest rate, credit, and commodity price fluctuations, mitigating interest rate risk with collars on **$800 million** of its term loan - The company is exposed to interest rate risk on its term and revolving credit facilities, where a **1.0%** change in the effective interest rate would impact annual interest expense by approximately **$12.9 million**, before considering hedging[144](index=144&type=chunk) - To manage interest rate risk, the company has interest rate collars on **$800 million** of its Term Loan, with a SOFR cap of **5.50%** and a floor around **0.94%**, maturing March 31, 2026[144](index=144&type=chunk) - The company faces commodity price risk from fluctuations in food, beverage, and energy costs, which can impact operating results if not passed on to customers[146](index=146&type=chunk) [Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of December 29, 2024, with no material changes to internal controls - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures are effective as of December 29, 2024[148](index=148&type=chunk) - No changes were made to internal control over financial reporting during the second quarter that materially affected, or are reasonably likely to materially affect, these controls[149](index=149&type=chunk) Part II [Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine legal proceedings, which management believes will not materially adversely affect its financial position or operations - The company is involved in various inquiries, claims, and lawsuits incidental to its business, but management believes their disposition will not have a material adverse effect on the company's financials[70](index=70&type=chunk)[151](index=151&type=chunk) [Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred in the company's risk factors since the filing of its Annual Report on Form 10-K for the fiscal year ended June 30, 2024 - No material changes have occurred in the company's risk factors since the filing of its Annual Report on Form 10-K for the year ended June 30, 2024[152](index=152&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the quarter ended December 29, 2024, the company repurchased **3,334,976 shares** of Class A common stock, with **$118.9 million** remaining for future repurchases Issuer Purchases of Equity Securities (Quarter Ended Dec 29, 2024) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Sep 30 - Nov 3, 2024 | 242,700 | $10.75 | | Nov 4 - Dec 1, 2024 | 2,559,561 | $11.48 | | Dec 2 - Dec 29, 2024 | 532,715 | $10.87 | | **Total** | **3,334,976** | **$11.33** | - As of December 29, 2024, the remaining value of shares that may be purchased under the repurchase program is **$118,941,000**[154](index=154&type=chunk) [Exhibits](index=38&type=section&id=Item%206.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists exhibits filed with the Form 10-Q, including documents related to the corporate name change, credit agreement amendments, and officer certifications - Filed exhibits include documents related to the corporate name change, an amendment to the credit agreement for an incremental term loan, and officer certifications[156](index=156&type=chunk)

Revenue Performance - Revenue decreased 1.8% to $300.1 million from $305.7 million in the previous year[4] - Same Store Revenue decreased 6.2% versus the prior year[4] - Total revenues for the three months ended December 29, 2024, were $300.074 million, a decrease of 1.8% compared to $305.671 million for the same period in 2023[20] - Same store revenue decreased by 6.2% year-over-year, from $299.065 million in December 31, 2023, to $280.530 million in December 29, 2024[24] Net Income and EBITDA - Net income of $28.3 million compared to a loss of $63.5 million in the prior year[4] - Net income for the three months ended December 29, 2024, was $28.307 million, compared to a net loss of $63.469 million for the same period in 2023[20] - Adjusted EBITDA of $98.8 million versus $103.1 million in the prior year[4] - Adjusted EBITDA for the three months ended December 29, 2024, was $98.757 million, with an adjusted EBITDA margin of 32.9%, compared to $103.126 million and 33.7% in the same period of 2023[25] Future Guidance - Fiscal Year 2025 guidance expects total Revenue to increase mid-single digits to over 10%, equating to $1.23 billion to $1.28 billion[7] - Adjusted EBITDA margin is expected to be between 32% to 34%, translating to $390 million to $430 million[7] Shareholder Returns - The company repurchased 5.1 million shares for approximately $56 million, with $101 million remaining under the share repurchase program[5] - A quarterly cash dividend of $0.055 per share was declared for the second quarter of fiscal year 2025[6] Cash and Debt Position - Cash and cash equivalents at the end of the period on December 29, 2024, were $80.755 million, an increase from $66.972 million at June 30, 2024[23] - Net cash provided by operating activities for the six months ended December 29, 2024, was $68.147 million, compared to $71.199 million for the same period in 2023[22] - The company reported a net debt of $1.218 billion as of December 29, 2024, compared to $1.085 billion as of June 30, 2024[23] - Interest expense for the three months ended December 29, 2024, was $48.795 million, compared to $46.236 million for the same period in 2023[20] - The company had a total cash on hand and revolving borrowing capacity of $397.171 million as of December 29, 2024[23] Expansion and Acquisitions - Four new Lucky Strike centers opened, generating over $1 million in revenue each within their first 30 days[3] - The company acquired Boomer's, adding six family entertainment centers and one water park to its portfolio[3]

Core Insights - Numerator's analysis reveals consumer behavior trends related to Super Bowl LIX, highlighting changes in viewing habits, party planning, and brand preferences among fans [1][2] Consumer Behavior and Viewing Trends - 65% of U.S. consumers plan to watch Super Bowl LIX, an increase of 4 percentage points from the previous year [4] - Popular viewing options include watching at home (77%, -5 points), hosting gatherings (29%, +12 points), and attending gatherings (17%, +1 point) [4] - 46% of viewers support the Philadelphia Eagles, while 39% back the Kansas City Chiefs [4] - Interest in the halftime show has decreased, with only 42% looking forward to it, down 6 points from last year [4] Demographics and Psychographics - NFL fans are predominantly older, high-income males, with a 16% higher likelihood of earning over $125k compared to average consumers [4] - Philadelphia Eagles fans are younger and more diverse, with 60% more likelihood of being Black and 24% more likely to be Millennials [4][5] Brand Preferences and Consumption Patterns - Budweiser is the most anticipated brand for commercials, with 44% of respondents looking forward to their ads [4] - Soda is the most popular beverage choice for Super Bowl celebrations (48%), followed by beer (40%) [4] - Easy-to-eat foods are preferred, with chips (47%) and dips (42%) being the most popular choices [4] Advertising and Media Consumption - NFL fans watch TV for over three hours daily, with 50% exceeding this duration [8] - NFL fans are 30% more likely to watch live programming and 72% more likely to tune into ESPN [8] - Social media is heavily utilized, with 82% of NFL fans using Facebook and 56% using Instagram [8] Beer Brand Preferences - Chiefs fans prefer Michelob Ultra (28%) and Coors (23.9%), while Eagles fans favor Miller (23.9%) and Corona (21%) [6][8] - Local breweries also have significant popularity among fans, with Boulevard Brewing being five times more popular with Chiefs fans [8]

Core Insights - The collaboration between Crown Royal and Starter celebrates New Orleans through a limited-edition NFL Super Bowl LIX Satin Jacket, with net proceeds benefiting the Foundation for Louisiana [1][4][10] - The jacket is exclusively available in New Orleans during Super Bowl LIX weekend, priced at $250 plus tax, and features unique designs that reflect the city's culture [3][7] Product Details - The jacket has a satin black body with the Crown Royal logo and NFL shield, unique patches commemorating the 2024 Crown Royal Rig Tour, and the Super Bowl LIX logo with Mardi Gras-inspired colors [7] - It will be sold at the Starter x NFL Shop Presented by Visa from February 5 to 8, 2025, while supplies last [3] Community Engagement - Crown Royal's "Kick Off with Crown" program has been active for four years, focusing on supporting local communities, with this initiative continuing during the Super Bowl [4] - The Crown Royal Station will offer a high-energy tailgate experience, featuring local flavors and performances, while also promoting the Purple Bag Project, where each wellness essentials bag packed triggers a $1 donation to the Foundation for Louisiana [5][6] Celebrity Involvement - New Orleans rapper Juvenile and hip-hop artist Mannie Fresh are involved in promoting the jacket, with a special event showcasing the jacket alongside a private performance [2][3] Donation Mechanism - The donation to the Foundation for Louisiana is based on jacket sales, participation in the Purple Bag Project, and social media engagement, with a maximum donation cap of $50,000 [10]