Monday, November 14, 2022
Bowlero Corp. is the worldwide leader in bowling entertainment, media, and events. With more than 300 bowling centers across North America, Bowlero Corp. serves more than 26 million guests each year through a family of brands that includes Bowlero, Bowlmor Lanes, and AMF. In 2019, Bowlero Corp. acquired the Professional Bowlers Association, the major league of bowling, which boasts thousands of members and millions of fans across the globe. For more information on Bowlero Corp., please visit BowleroCorp.com.
Michael Kupinski, Director of Research, Noble Capital Markets, Inc.
Patrick McCann, Research Associate, Noble Capital Markets, Inc.
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Previewing Fiscal Q1. We are adjusting our forecast for Bowlero ahead of the company’s Q1 earnings release next Wednesday, November 16. For Q1, we are lowering our adj. EBITDA estimate, as we anticipate lower gross profit margins compared with the prior year period. We believe staffing costs in centers will be up over the prior year period, which was affected by COVID related staffing issues.
Building in more seasonality. In our updated model, we are giving more credence to the seasonality of the business. Notably, the reduction in our adj. EBITDA forecast for fiscal Q1 is offset by a higher adj. EBITDA forecast in fiscal Q2. Our Q1 adj. EBITDA forecast is lowered from $72.0 million to $63.9 million and our Q2 adj. EBITDA forecast is raised from $73.1 million to $81.2 million, illustrated in Figure #1 Forecast Revisions.
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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.