Financial Data and Key Metrics Changes - The company reported total revenue of $301.2 million for fiscal year 2025, a 6.1% increase from $283.9 million in the previous year [18] - Adjusted EBITDA for the year was $88.7 million, up from $83.4 million, reflecting a positive trend in profitability [18] - Same store sales declined by 4.1%, but showed sequential improvement each month in the fourth quarter [18] Business Line Data and Key Metrics Changes - The retail business remained steady, while league operations experienced low single-digit growth, and the events business faced a high single-digit decline [18] - The acquisition of Boomers and two new water parks contributed an additional $7 million in EBITDA [19] - Food and beverage revenue showed positive same store comps, with food revenue up 2.5% and alcohol comps down 2.7%, indicating a shift in consumer preferences [12][19] Market Data and Key Metrics Changes - California, which accounts for approximately 20% of total sales, contributed $6 million to the same store sales decline [19] - New York is showing positive trends, with marketing efforts yielding favorable results [56] Company Strategy and Development Direction - The company is focused on building a premier location-based entertainment platform in North America, with significant investments in water parks and family entertainment centers [9] - The strategy includes enhancing guest experiences, expanding operating cash flow, and increasing free cash flow [21] - The company aims to reach 100 Lucky Strike locations by year-end, up from 55 [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of the business, particularly in July, which saw double-digit growth year-over-year [6][21] - The company anticipates total revenue growth of 5% to 9% for fiscal year 2026, translating to $1.26 billion to $1.31 billion in revenue [21] - Management highlighted the importance of marketing investments to capture additional market share and improve brand awareness [47] Other Important Information - The company acquired 58 properties for $36 million, which will enhance its operational flexibility and is expected to be accretive to earnings [9][20] - The liquidity position remains strong at $342 million, with $60 million in cash [22] Q&A Session Summary Question: Can you walk us through the assumptions embedded in the new targets for 2026? - Management indicated that July's positive performance and increased marketing investments are key components of the guidance [25] Question: How do you see the cadence playing out between the quarters in 2026? - Management expects good double-digit growth in September, with the fourth quarter projected to be $10 million to $20 million higher than the second quarter [29] Question: What is the outlook for the events side of the business? - Management noted that the comp gets easier starting in September, and they are focusing on increasing marketing spend to capture market share [33] Question: How are you approaching the water parks and family entertainment centers compared to bowling? - The same operational playbook is applied, focusing on improving asset quality and enhancing food and beverage offerings [36] Question: What is the expected trajectory for location operating costs? - Management indicated that location operating costs are expected to return to historical trends after accounting for non-cash charges [65] Question: Can you provide insights on the impact of marketing investments on recent performance? - Management noted that increased marketing spend has driven significant results, particularly in the successful summer season pass program [46] Question: What is the expected annualized cost to operate Boomers? - Boomers is currently running close to a 25% EBITDA margin, with revenue expectations to increase over the next twelve months [80] Question: What is the non-acquisition CapEx guidance for FY 2026? - Non-acquisition CapEx is expected to be around $130 million, down from previous levels as the company focuses on high ROI initiatives [82]