In this articleBOWLThe Bowlero location at Chelsea Piers in New York City.CNBCA former executive at Bowlero, the world's largest owner and operator of bowling centers, has asked a court's permission to countersue his former employer for extortion and retaliation, after an executive on a recorded call threatened to report him to the FBI if he didn't admit to spilling company secrets, according to a transcript of the conversation filed in court.The allegations by Bowlero's former chief information officer, Th ...

Bowlero Corp. (BOWL) reported second-quarter fiscal 2024 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. The top line increased year over year, but the bottom line declined from the prior-year quarter's figure.During the fiscal second quarter, the company reported benefits from the Lucky Strike acquisition and robust event business performance. It reported positive same-store revenue backed by adjustments in promotions and pricing dynamics. During the quarter, acqu ...

Financial Data and Key Metrics Changes - The company reported total revenue of $304 million for Q2 2024, a 13.4% increase from $268.1 million in the previous year, with adjusted EBITDA rising to $103.1 million from $97 million [39][52][70] - Same-store sales comp turned positive at 0.2%, indicating a slight improvement in performance compared to previous periods [70] - The company announced a quarterly dividend of $0.055, with an expected annual rate of $0.22, and increased share repurchase authorization to $200 million [41][54] Business Line Data and Key Metrics Changes - The Lucky Strike brand outperformed expectations, contributing over $6 million to EBITDA in the quarter, compared to $4 million in the previous year [52][66] - Event revenue increased by 30% year-over-year, driven by strong corporate demand and holiday celebrations [67] - The amusements business generated $100 million in revenue, showing significant growth from previous years [37] Market Data and Key Metrics Changes - The company expanded its center count from 327 to 350 within the year, with plans for at least five new builds annually in the coming years [35][39] - Average revenue per unit increased by 6% year-over-year, with unit count rising by 8% [67] - The company is experiencing strong demand for corporate events and birthday parties, benefiting from a trade-down effect in the current economic environment [27][67] Company Strategy and Development Direction - The company is focusing on dynamic pricing strategies to optimize revenue across different times and products, aiming to fill centers at the highest price during weekends and at reasonable prices during weekdays [58][90] - There is a significant emphasis on enhancing the Lucky Strike brand and expanding its presence, with new locations planned in Moorpark and Miami [38][66] - The company is committed to investing in its workforce and improving operational efficiencies through data-driven decision-making and process standardization [83][109] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the business's trajectory, highlighting a strong rebound in customer traffic and positive trends in January following a challenging start to the year [71][76] - The company anticipates continued growth in the third quarter, despite weather-related challenges in January, with expectations for total revenue to increase by around 20% in the fourth quarter [71][76] - Management acknowledged the need for ongoing adjustments to pricing and promotional strategies based on consumer response and market conditions [90][127] Other Important Information - The company is increasing its capital guidance for M&A spending from $160 million to $190 million, reflecting a focus on growth opportunities [72] - The implementation of a robust inventory management system for food and beverage is expected to enhance profitability [84] - The company is also working on a website update to facilitate dynamic pricing and improve customer engagement [84][132] Q&A Session Summary Question: How is the company managing guidance amid weather-related challenges? - Management noted that January's weather impacted revenue by approximately $7 million to $8 million, but they are comfortable with their guidance based on recent trends [76][77] Question: What initiatives will the new president focus on? - The new president aims to enhance execution across food and beverage and amusement offerings, leveraging data to improve processes and maximize profitability [78] Question: Can you elaborate on the food and beverage system being implemented? - The company is focusing on reducing variance across centers and implementing a robust inventory management system to improve margins [83][84] Question: How is the Lucky Strike brand performing relative to expectations? - The Lucky Strike brand has significantly outperformed initial expectations, with a 50% increase in profitability compared to the previous year under prior ownership [66][104] Question: What is the outlook for new unit pipeline and acquisitions? - The company is building dry powder for future acquisitions while monitoring market conditions, with a focus on capitalizing on opportunities as they arise [121]

Shares of bowling company Bowlero (BOWL 17.63%) popped on Monday, even though the market was down. The company reported strong financial results for its fiscal second quarter of 2024 and announced some shareholder-friendly moves. And that's why Bowlero stock was up almost 14% as of 11:45 a.m. ET.Bowlero is looking to give back to shareholdersBowlero's Q2 ended on Dec. 31. The company owns 350 bowling centers and also owns the Professional Bowlers Association.In Q2, Bowlero generated revenue of $306 million, ...

Bowlero Corp. (BOWL) came out with a quarterly loss of $0.01 per share versus the Zacks Consensus Estimate of $0.12. This compares to earnings of $0.18 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -108.33%. A quarter ago, it was expected that this company would post a loss of $0.04 per share when it actually produced a loss of $0.10, delivering a surprise of -150%.Over the last four quarters, the company has not been able t ...

Shares of Bowlero Corp. were on a roll Monday after the bowling-center operator and owner of the Professional Bowlers Association said it would start paying a dividend to shareholders and reported fiscal second-quarter revenue that rose above expectations.The company said it will pay out a cash dividend of 5.5 cents a share on March 8 to shareholders of record on Feb. 23.Based on the stock’s BOWL, +8.21% Friday closing price of $11.60, the annual dividend rate of 22 cents a share implies a dividend yield of ...

RICHMOND, Va.--(BUSINESS WIRE)--Bowlero Corp. (NYSE: BOWL) (“Bowlero” or the “Company”), one of the world’s premier operators of location-based entertainment, today provided financial results for the second quarter of the 2024 Fiscal Year, which ended on December 31, 2023. Quarter Highlights: Revenue increased 11.8% to $305.7 million versus the prior year and increased 65.4% versus 2QFY20 (quarter ended December 29, 2019) Revenue excluding Service Fee Revenue increased 13.4% to $304.0 million versus th ...

Part I - Financial Information This section provides a comprehensive overview of the company's financial performance, condition, and related disclosures [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents Bowlero Corp.'s unaudited condensed consolidated financial statements and accompanying notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet reflects increased assets and liabilities, primarily due to acquisitions and financing, resulting in an equity deficit Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 31, 2023 | Jul 2, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$3,192,162** | **$2,841,274** | | Cash and cash equivalents | $189,955 | $195,633 | | Property and equipment, net | $806,096 | $697,850 | | Goodwill | $826,619 | $753,538 | | **Total Liabilities** | **$3,152,806** | **$2,541,724** | | Long-term debt, net | $1,134,076 | $1,138,687 | | Long-term financing obligations | $436,790 | $9,005 | | Earnout liability | $135,479 | $112,041 | | **Total stockholders' (deficit) equity** | **($104,973)** | **$155,221** | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Revenues increased for both periods, but the company reported net losses due to higher costs, increased expenses, and non-cash charges Three Months Ended Financial Performance (in thousands) | Metric | Dec 31, 2023 | Jan 1, 2023 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $305,671 | $273,385 | 11.8% | | Gross Profit | $90,581 | $93,679 | (3.3)% | | Operating Profit | $49,477 | $60,436 | (18.1)% | | Net (Loss) Income | ($63,469) | $1,435 | N/A | Six Months Ended Financial Performance (in thousands) | Metric | Dec 31, 2023 | Jan 1, 2023 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $533,076 | $503,645 | 5.8% | | Gross Profit | $135,065 | $158,737 | (14.9)% | | Operating Profit | $54,833 | $91,709 | (40.2)% | | Net Loss | ($45,250) | ($32,099) | (41.0)% | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash flows show decreased operating cash, increased investing for acquisitions, and financing from a sale-leaseback and share repurchases Six Months Ended Cash Flow Summary (in thousands) | Cash Flow Category | Dec 31, 2023 | Jan 1, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $71,199 | $115,879 | | Net cash used in investing activities | ($246,666) | ($163,005) | | Net cash provided by financing activities | $169,738 | $5,126 | | **Net decrease in cash** | **($5,678)** | **($42,427)** | - Financing activities were primarily driven by **$408.5 million** in proceeds from a sale-leaseback financing transaction, offset by **$218.7 million** in share repurchases[91](index=91&type=chunk) - Investing activities included **$132.9 million** for acquisitions (net of cash acquired) and **$113.6 million** for purchases of property and equipment[89](index=89&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, acquisitions, a major sale-leaseback, ongoing litigation, share repurchases, and debt structure with risk management - During the six months ended December 31, 2023, the Company acquired Lucky Strike Entertainment, LLC, which includes **14** bowling centers, for a total consideration of **$90.475 million**[134](index=134&type=chunk) - On October 19, 2023, the Company completed a sale-leaseback transaction with VICI Properties Inc. for **38** bowling centers, valued at **$432.9 million**, receiving cash proceeds of **$408.5 million**[5](index=5&type=chunk) - The Company is defending against approximately **73** pending age discrimination claims filed with the EEOC between 2016 and 2019. The company cannot estimate a reasonably possible range of loss[15](index=15&type=chunk) - The Board of Directors declared a regular quarterly cash dividend of **$0.055** per share of common stock, payable on March 8, 2024[59](index=59&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=25&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, revenue growth from acquisitions, increased costs leading to net loss, and strategic growth initiatives supported by strong liquidity [Overview and Recent Developments](index=26&type=section&id=Overview%20and%20Recent%20Developments) Bowlero focuses on long-term value through organic growth, acquisitions, and new center openings, including a major sale-leaseback and multiple center additions - The company's strategy focuses on organic growth, converting/upgrading centers, opening new centers, and acquisitions[33](index=33&type=chunk) - Completed a sale-leaseback transaction with VICI for **38** centers, valued at **$432.9 million**[62](index=62&type=chunk) - Acquired **19** bowling centers in **five** separate transactions[239](index=239&type=chunk) - Completed and opened **two** new build-outs, with **seven** more signed[34](index=34&type=chunk) - Renovations are underway at **15** centers, with about **30** more planned[211](index=211&type=chunk) [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Q2 revenues increased due to acquisitions, but profitability declined due to rising costs, interest expenses, and non-cash charges, leading to a net loss Q2 Revenue Breakdown (in thousands) | Revenue Source | Q2 FY2024 | Q2 FY2023 | % Change | | :--- | :--- | :--- | :--- | | Same-store center revenues | $260,178 | $259,582 | 0.2% | | Media, new & closed centers | $43,860 | $8,454 | 418.8% | | Service fee revenue | $1,633 | $5,349 | (69.5)% | | **Total Revenues** | **$305,671** | **$273,385** | **11.8%** | Six-Month Revenue Breakdown (in thousands) | Revenue Source | H1 FY2024 | H1 FY2023 | % Change | | :--- | :--- | :--- | :--- | | Same-store center revenues | $465,763 | $476,945 | (2.3)% | | Media, new & closed centers | $64,059 | $16,376 | 291.2% | | Service fee revenue | $3,254 | $10,324 | (68.5)% | | **Total Revenues** | **$533,076** | **$503,645** | **5.8%** | - For the six months ended Dec 31, 2023, interest expense increased by **64%** to **$83.7 million**, primarily due to higher interest rates and increased debt levels compared to the prior year[43](index=43&type=chunk) [Liquidity and Capital Resources](index=31&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains sufficient liquidity from cash, operating cash flows, and capital markets to meet obligations and fund growth initiatives including acquisitions and share repurchases - The company had approximately **$189.955 million** of available cash and cash equivalents at December 31, 2023[74](index=74&type=chunk) - Management believes current liquidity sources are adequate to meet contractual obligations, fund working capital, planned capital expenditures, center acquisitions, and execute the share repurchase program[47](index=47&type=chunk) [Non-GAAP Financial Measures](index=30&type=section&id=Non-GAAP%20Financial%20Measures) Adjusted EBITDA, a non-GAAP measure, provides supplemental operating performance insights, showing an increase for Q2 but a decrease for the six-month period Adjusted EBITDA Reconciliation (in thousands) | Period | Net (Loss) Income | Adjusted EBITDA | | :--- | :--- | :--- | | **Three Months Ended** | | | | Dec 31, 2023 | ($63,469) | $103,126 | | Jan 1, 2023 | $1,435 | $96,955 | | **Six Months Ended** | | | | Dec 31, 2023 | ($45,250) | $155,260 | | Jan 1, 2023 | ($32,099) | $162,264 | - Management considers Adjusted EBITDA an important measure of the quality of the company's earnings, as it excludes items not believed to be indicative of core operating performance[44](index=44&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company faces market risks from interest rates, credit, and commodity prices, with interest rate risk partially mitigated by collar agreements - The company is exposed to interest rate risk on its term and revolving credit facilities. A **1.0%** change in the effective interest rate would impact annual interest expense by approximately **$11.4 million**[227](index=227&type=chunk) - To mitigate interest rate risk, the company entered into **two** interest rate collars on an aggregate notional amount of **$800 million** of its Term Loan. The collars establish a floor on SOFR between **0.9355%** and **0.9429%** and a cap of **5.50%**, maturing on March 31, 2026[12](index=12&type=chunk)[227](index=227&type=chunk) - The company faces commodity price risk from fluctuations in food, beverage, and energy costs, which can materially impact operating results if cost increases are not passed on to customers[94](index=94&type=chunk)[229](index=229&type=chunk) [Controls and Procedures](index=33&type=section&id=Item%204.%20Controls%20and%20Procedures) The CEO and CFO concluded that disclosure controls and procedures are effective, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of December 31, 2023[109](index=109&type=chunk) - No material changes were identified in the company's internal control over financial reporting during the quarter ended December 31, 2023[97](index=97&type=chunk) Part II - Other Information This section provides additional information including legal proceedings, risk factors, equity sales, and required exhibits [Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 10 for details on material pending legal proceedings, including ongoing age discrimination claims with the EEOC - For a description of material pending legal proceedings, the report refers to Note **10** - Commitments and Contingencies[119](index=119&type=chunk) [Risk Factors](index=34&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the company's risk factors as previously disclosed in its Annual Report on Form 10-K - There have been no material changes to the company's risk factors as disclosed in the Annual Report on Form 10-K for the year ended July 2, 2023[99](index=99&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=34&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the quarter, the company repurchased 7.5 million shares of Class A common stock, with $54.2 million remaining for future purchases Issuer Purchases of Equity Securities (Q2 FY2024) | Period | Total Shares Purchased | Avg. Price Paid per Share | | :--- | :--- | :--- | | Oct 2 - Nov 5, 2023 | 5,082,260 | $10.55 | | Nov 6 - Dec 3, 2023 | 989,181 | $10.46 | | Dec 4 - Dec 31, 2023 | 1,445,414 | $11.23 | | **Total** | **7,516,855** | **$10.67** | - As of December 31, 2023, the remaining value of shares that may be purchased under the repurchase program was **$54.168 million**[99](index=99&type=chunk) [Exhibits](index=34&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including officer certifications and XBRL data files - The report includes standard exhibits such as CEO and CFO certifications (**31.1**, **31.2**, **32.1**, **32.2**) and XBRL interactive data files[123](index=123&type=chunk)

You want potential short-squeeze stocks that could have the bears running for cover? Great, we got ‘em right here! But first, we need to know the rules of the game. Let’s start with the definitions:Short interest: Number of shares borrowed from brokers to initiate the short trading activity.Short interest percentage of float: The percentage of the publicly available share count being “earmarked” as a short position.Short interest ratio (i.e. days to cover): The number of trading sessions necessary for bears ...

Bowlero Corporation (BOWL) , a global leader in bowling entertainment, continues its impressive growth trajectory with the acquisition of Ten Pin in Hilliard, OH. This buyout marks its 20th center addition in fiscal 2024. This strategic move follows the successful acquisitions of Niles Bowling center in Niles, IL, and BAM! Entertainment Center in Holland, MI, during the second quarter.The company, known for its iconic Lucky Strike brand, recently unveiled Lucky Strike Moorpark in Moorpark, CA. This 43,000 s ...