"We delivered positive same-center sales growth this quarter, marking a clear inflection point for the business," said Thomas Shannon, Chief Executive Officer and Founder of Lucky Strike Entertainment. "Performance was driven by sustained strength in walk-in retail and league play, increased marketing investment to expand brand awareness and build momentum for the remainder of the year, and meaningful progress rebuilding our Events business. Same store Event sales turned positive in January 2026 for the fir ...

Some of the statements contained in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve risk, assumptions, and uncertainties, such as statements of our plans, objectives, expectations, intentions, and forecasts. These forward-looking statements reflect our views with respect to future events as of the date of this release and are based on our management' ...

Core Viewpoint - Alta Fundamental Advisers has significantly reduced its stake in Lucky Strike Entertainment Corporation, indicating potential concerns about the company's financial performance and market position [2][3]. Company Overview - Lucky Strike Entertainment operates in the North American leisure sector, managing bowling centers, amusement parks, and family entertainment venues under various brands [5][8]. - The company reported a total revenue of $1.23 billion and a net income loss of $46.91 million for the trailing twelve months [5]. Recent Financial Performance - In the third quarter, Lucky Strike's revenue increased by 12.3% year over year to $292.3 million, driven by growth in food, beverage, and amusement sectors [9]. - Despite revenue growth, the company reported a net loss of $13.8 million due to high interest expenses and expansion costs [9]. - Adjusted EBITDA rose to $72.7 million from $62.9 million a year prior, with management maintaining full-year guidance of up to $1.31 billion in revenue and $415 million in adjusted EBITDA [10]. Debt and Financial Structure - The company now carries approximately $1.7 billion in net debt, which has implications for its financial stability, especially as discretionary spending softens [10]. - The business model is becoming more leveraged, raising concerns about the impact of flat same-store sales on fixed costs [11]. Market Position and Stock Performance - As of the latest report, Lucky Strike's shares were priced at $9.02, reflecting a 13% decline over the past year, underperforming the S&P 500, which increased by 16% during the same period [4]. - The fund's holding in Lucky Strike now represents 4.78% of reportable assets, down from 10.2% in the previous quarter [4].

Core Viewpoint - Lucky Strike Entertainment has announced a private offering of $500 million in senior secured notes with a 7.250% interest rate, maturing in 2032, through its subsidiary Kingpin Intermediate Holdings LLC [1] Company Summary - The offering consists of $500 million aggregate principal amount of senior secured notes [1] - The notes are set to mature in 2032 and carry an interest rate of 7.250% [1] - The offering is exempt from the registration requirements, indicating a private placement strategy [1]

Financial Performance - Total Revenue increased by 40% from $1154614 thousand in FY24 to $1201333 thousand in FY25[38] - Same Store Revenue decreased by 37% from $1029251 thousand in FY24 to $990678 thousand in FY25[38] - Adjusted EBITDA increased from $361497 thousand in FY24 to $367687 thousand in FY25, with margins of 313% and 306% respectively[43] - Net loss was reduced from $83581 thousand in FY24 to $10022 thousand in FY25[43] Acquisitions and Capital Deployment - The company deployed $700 million of capital into acquisitions over the past three years[23] - Acquired AMF for $310 million in 2013, leading to an estimated value creation of $13-$15 billion[22] - Acquired Brunswick for $260 million in 2014, reducing the purchase price to $60 million after a Sale Leaseback transaction[22, 23, 26] Operational Metrics - The company has 370 operating locations as of August 2025[25] - The company owns 75 properties with an estimated value between $600 million and $700 million[35] - The company sold 260000 Summer Season Passes in FY25[20]

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]