Bowlero (US:BOWL)2022-05-12 00:48Financial Data and Key Metrics Changes - Revenue increased by 129.8% year-over-year, surpassing pre-pandemic levels by 25.8% [6][7] - Adjusted EBITDA reached $108.4 million, an increase of $81 million or 295.7% year-over-year, and $41 million or 60.9% relative to pre-pandemic performance [7][12] - Cash generated from operations was $83.6 million in Q3 [7][16] Business Line Data and Key Metrics Changes - Strong growth in walk-in retail revenue and event revenue contributed to overall revenue increase [6][10] - Same-store sales rose 12.2% relative to pre-pandemic levels [6] - Gross margin for bowling centers expanded 96 basis points to 70% compared to the pre-pandemic quarter [15] Market Data and Key Metrics Changes - California outperformed with a same-store sales increase of approximately 35%, while the East Coast saw increases of 15% to 20% [44] - The event business has recovered and is comping positively compared to pre-pandemic levels [10][25] Company Strategy and Development Direction - The company is focused on organic growth and center additions, with a robust pipeline of about 30 locations in various stages of development [20][22] - Management is optimistic about the potential for further growth in league pricing and corporate events [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience during potential economic downturns, citing past performance during recessions [34][36] - The company has a recession contingency plan in place to manage through economic challenges [38][39] Other Important Information - The company repurchased 109,754 shares of Class A common stock and nearly 2.7 million warrants during the quarter [8] - The company finished the quarter with nearly $173 million in cash [16] Q&A Session Summary Question: Impact of mask mandate lift on New York City centers - Management indicated that the vaccine mandate had a more significant impact than the mask mandate, with a 50% decline in business during the vaccine mandate [18][19] Question: Update on remodels, new builds, and acquisition pipeline - There are about 30 locations in the pipeline, including new builds and acquisitions, with 25 remodels underway [20][21] Question: Recovery stage of league and event business - League play is back to even, with potential for price increases, while the event business is recovering positively [24][25] Question: Impact of rising inflation on the business - Two-thirds of the business is not significantly impacted by inflation, allowing for price increases in other areas [27][28] Question: Business performance during past recessions - The company has shown resilience during past recessions, with only minor revenue declines [36][37] Question: Update on partnership with Skillz - The partnership is ongoing but not a significant driver of economic performance [40] Question: Recent sales trends and regional performance - Recent sales increases of 45% and 55% in March and April reflect same-store comparisons versus 2019 [42][43] - California is the best-performing region, while the East Coast is lagging behind [44]