Bowlero (US:BOWL)2025-11-04 21:10Revenue and Income - Total revenue for the three months ended September 28, 2025, was $292,278, representing an increase of $32,083, or 12%, compared to the same period last fiscal year[110] - Operating income increased to $28,246, a significant rise of $15,300 compared to the previous year[110] - Adjusted EBITDA for the three months ended September 28, 2025, was $72,654, compared to $62,943 for the same period in 2024, reflecting an increase of approximately 15%[126] Expenses and Costs - Location operating costs increased by $11,598, or 13%, primarily due to acquisitions of water parks and family entertainment centers[115] - Location payroll and benefit costs rose by $7,808, or 12%, driven by acquisitions and higher wages[117] - SG&A expenses increased by $534, or 2%, while as a percentage of revenues decreased from 13% to 12%[119] - Depreciation and amortization decreased by $3,788, or 10%, due to changes in estimated useful lives of fixed assets[120] - Interest expense increased by $4,727, or 10%, primarily due to the amortization of $3,300 of deferred financing costs and increased debt since Q1 fiscal 2025[121] Cash Flow and Financing - Net cash used in operating activities was $(6,408) for the three months ended September 28, 2025, a decrease of $35,821 compared to $29,413 provided in the same period of the prior year[131] - Investing activities used $315,147 in cash, significantly higher than $39,924 in the same period of the prior year, primarily due to increased acquisition activity[133] - Financing activities provided $292,671, a substantial increase from $(17,806) used in the same period of the prior year, mainly due to proceeds from the Fifteenth Amendment to the First Lien Credit Agreement[134] Acquisitions and Agreements - The Company acquired 58 existing properties for $306,000, reducing annual rent obligations and enhancing financial flexibility[108] - The Company signed a definitive agreement to acquire Raging Waters Los Angeles, expected to be completed in fiscal 2026[108] Tax and Cash Position - The effective tax rate for the quarter ended September 28, 2025, was 48%, influenced by changes in the fair value of the earnout liability and unrealizable interest limitations[123] - At September 28, 2025, the company had approximately $31,032 in available cash and cash equivalents[129] - The company plans to use available cash-on-hand to fund its share repurchase program, aimed at returning value to shareholders[128] Market Risks - An increase or decrease of 1.0% in the effective interest rate would result in a change of approximately $12,000 in interest expense over a twelve-month period[141] - The company is exposed to market risks including interest rates, credit risk, and commodity price fluctuations, which could impact its financial condition[140] Same-Store Performance - Same-store revenues remained relatively flat, with walk-in business for bowling locations contributing approximately $3,200[113]