[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]

Accessibility StatementSkip Navigation Two heritage brands, Crown Royal and Starter have seamlessly merged to celebrate the unique spirit of New Orleans through the limited-edition Crown Royal x Starter NFL Super Bowl LIX Satin Jacket - exclusively available in New Orleans over Super Bowl LIX weekend. The jacket features key details that mark this moment in time: The collectible piece boasts a satin black body, adorned with the iconic Crown Royal logo and NFL shield on the front chest. In classic Starter f ...

Following my coverage on Bowlero Corp. (NYSE: BOWL ) in Sept'24, for which I recommended a buy rating due to my expectation that growth will remain robust given the positive traction BOWL is seeing regarding its growthI take a fundamentals-based approach to value investing.I disagree with the common misconception held by many investors that low multiple stocks must be cheap. I look for companies that offer the best long-term durability at the most affordable prices. Consequently, I have a propensity to be d ...

Bowlero Corp. (BOWL) has opened two new Lucky Strike locations in Colorado — Lucky Strike Southlands in Aurora and Lucky Strike Northfield in Denver. These new locations mark the third and fourth new builds under the Lucky Strike brand since its acquisition last September.These openings are part of the company's expansion strategy under the Lucky Strike brand, demonstrating its commitment to growth and innovation in the entertainment space. Lucky Strike Southlands offers 38,000 square feet of space with 36 ...

Bowlero Corp. (BOWL) closed the last trading session at $11.75, gaining 0.3% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $17.35 indicates a 47.7% upside potential.The average comprises 10 short-term price targets ranging from a low of $12 to a high of $29, with a standard deviation of $4.50. While the lowest estimate indicates an increase of 2.1% from the current price level, t ...

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $260 million, up from $226 million in the previous year, representing a year-over-year growth of 15% [14] - Adjusted EBITDA increased to $62.9 million, a 21% rise from $52.1 million year-over-year, with an EBITDA margin of 24.2%, expanding by 130 basis points [14] - Same-store sales growth was positive at 0.4%, while total location revenue grew by 17.5% year-over-year [14] Business Line Data and Key Metrics Changes - Food and beverage sales rose by 18% year-over-year, with a key performance indicator (KPI) of retail F&B to bowling reaching $0.80 across the portfolio [11] - In the top 50 Bowlero locations, the F&B per bowl metric reached $1.10, up $0.18 from the previous year [11][46] - The company has implemented mobile ordering across all properties to enhance labor efficiencies and customer satisfaction [11][42] Market Data and Key Metrics Changes - The company has seen a significant increase in event bookings, with December pacing up 10% year-over-year for corporate and adult events [70] - The acquisition of Boomers and Raging Waves is expected to contribute to revenue but will initially have a negative EBITDA impact until peak season [15][50] Company Strategy and Development Direction - The company is focusing on M&A opportunities, having recently acquired Raging Waves for $49 million and Boomers for $9 million, with plans to optimize and expand these assets [7][8] - A robust new build pipeline is in place, with two new Lucky Strike locations opened in Denver and plans for additional locations in Beverly Hills and Orange County [9] - The company aims to balance internal optimization with high-return capital deployment [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business, increasing the bottom end of the FY 2025 revenue guidance by $10 million [15] - The macro environment is viewed as providing increasing opportunities for capital deployment beyond bowling [7] - Management noted that the third quarter is expected to show the greatest margin expansion due to seasonal factors [18][24] Other Important Information - The company has hired a Chief Procurement Officer to drive efficiencies and manage inflation, which has been a significant cost factor [29] - The company is becoming more data-driven, expanding the use of Power BI for daily sales tracking across various levels of management [29] Q&A Session Summary Question: Can you elaborate on the cadence of same-center comps in the first quarter and trends in October? - Management noted that hurricanes impacted September results, costing about $2 million, but October event tracking is positive at plus 10% for P6 [17] Question: What are the drivers of first-quarter EBITDA margin expansion? - Management indicated that the greatest margin expansion is expected in the third quarter due to the shift of New Year's from Q2 to Q3, which is significant for revenue [18][24] Question: How is the acquisition environment and focus on potential assets? - Management stated that they are spending time on both core bowling assets and other entertainment assets, with a division of labor among executives [25] Question: Can you unpack the utilization of data and the role of the Chief Procurement Officer? - Management emphasized becoming a data-driven organization and the Chief Procurement Officer's role in managing inflation and driving efficiencies [29] Question: What is the outlook for event bookings and average event revenue? - December is pacing up 10% year-over-year for events, indicating strong demand [70] Question: How are new build openings performing? - All new centers are profitable, with recent openings outperforming expectations [66]