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Research, News, and Market Data on BOWL

09/15/2022

• Revenue in the fourth quarter was nearly $267.7 million, growing $108.6 million, or 68.3%, year-over-year, and $112.2 million, or 72.2%, relative to pre-pandemic performance. Same-store revenue was $78.8 million, or 53.0%, higher than pre-pandemic. ¹
• Revenue in fiscal year 2022 totaled nearly $911.7 million, growing $516.5 million, or 130.7%, year-over-year, and $217.8 million, or 31.4%, relative to pre-pandemic performance. Same-store revenue grew vs. the pre-pandemic performance by $127.4 million, or 19.4%.¹
• Net Income for the quarter was $6.9 million. There was a Net Loss for fiscal year 2022 of $29.9 million was driven primarily by expenses related to the successful de-SPAC transaction.²
• Adjusted EBITDA in the fourth quarter of $82.4 million increased $40.1 million, or 94.8%, vs. the prior year’s quarter, and grew $48.2 million, or 140.9%, relative to pre-pandemic performance. ^{1 2}
• Adjusted EBITDA for fiscal year 2022 of $316.4 million increased $243.3 million, or 332.7%, vs. the prior year, and grew $142.5 million, or 81.9%, relative to pre-pandemic performance.^{1 2}
• The Company repurchased 3,320,913 shares of Class A common stock during the fourth quarter, bringing the fiscal year total shares repurchased to 3,430,667 shares and bringing the total Class A and Class B shares outstanding down to 163.1 million as of July 3, 2022.³
• The Company retired all outstanding publicly traded and privately held warrants as of May 18, 2022.
• The Company added 4 new centers during the quarter, part of the 29 new centers for the fiscal year. As of September 15, 2022, after July 3, 2022, the Company has added 1 more and has signed definitive purchase agreements for an additional 8 new centers. Total centers in operation as of July 3, 2022 were 317.

RICHMOND, Va.–(BUSINESS WIRE)– Bowlero Corp. (NYSE: BOWL) (“Bowlero” or the “Company”), the world’s largest owner and operator of bowling centers, today provided financial results for the fourth quarter of and the full annual results for the 2022 fiscal year, which ended on July 3, 2022. Bowlero announced revenue grew in the quarter to nearly $267.7 million, driven by continued strong growth in walk in retail and accelerated further by significant growth in event revenue. Total revenue grew by 72.2% compared to pre-pandemic performance and by 68.3% on a year-over-year basis. Same-store sales rose by 53.0% relative to pre-pandemic.¹

Total Bowling Center Revenue Performance Trend (Footnote 5) (Graphic: Business Wire)

“We are very pleased with our performance in the fourth quarter and during fiscal year 2022. We achieved world-class results in our first year as a public company, while simultaneously laying important groundwork for sustained growth. We are excited about the future, and we are looking forward to continuing to provide unforgettable experiences for our guests,” said Thomas Shannon, Founder and Chief Executive Officer.

Financial Summary

• Due to the Company’s reporting calendar, Q4 of FY 22 was 14 weeks long and FY 22 was 53 weeks long. During the 53^rd week, we produced $14.9 million in revenue.
• Significant growth in Revenue during the quarter, totaling nearly $267.7 million, up 72.2% relative to pre-pandemic performance and 68.3% on a year-over-year basis; 53.0% on a same-store basis vs. pre-pandemic performance. Adjusting for the 14^th week, Revenue was $252.8 million, increasing 62.6% relative to pre-pandemic performance and 58.9% on a year-over-year basis; 44.3% on a same store basis vs. pre-pandemic performance. ^{1 4}
• Revenue during fiscal year 2022 was nearly $911.7 million, up 31.4% relative to pre-pandemic performance and 130.7% on a year-over-year basis; 19.4% on a same-store basis vs. pre-pandemic performance. Adjusting for the 53^rd week, Revenue was $896.8 million, increasing 29.2% relative to pre-pandemic performance and 126.9% on a year-over-year basis; 17.5% on a same-store basis vs. pre-pandemic performance.^{1 4}
• Net Income for the quarter was $6.9 million, including $8.6 million of non-cash expenses related to the increase in the value of earnouts and warrants. Net Income, adjusted for these items was $15.6 million vs. a Net Loss of $13.5 million in the prior year.²
• Adjusted EBITDA for the quarter grew to $82.4 million, up 140.9% relative to pre-pandemic performance and 94.8% vs. prior year.²
• Net Loss for fiscal year 2022 of $29.9 million was driven primarily by expenses related to the successful de-SPAC transaction, which included $32.5 million in transactional expenses and $42.2 million in share based compensation, as well as $52.8 million of non-cash expenses related to the increase in the value of earnouts and warrants. Net Income for fiscal year 2022, adjusted for these items was $97.6 million vs. a Net Loss of $126.5 million in the prior year.²
• Adjusted EBITDA for fiscal year 2022 was $316.4 million and grew 81.9% relative to pre-pandemic performance and 332.7% vs. prior year.²
• Cash generated from Operations during the quarter and fiscal year 2022 was $34.8 million and $177.7 million, respectively.

“We continue to see very strong demand in our bowling centers, which is driving significant same store sales growth relative to both prior year and pre-pandemic levels,” said Brett Parker, President and CFO of Bowlero Corp. “Additionally, the new units are accelerating our growth rates, as we opened 4 new locations during the quarter. Even more impressive, Adjusted EBITDA margin expanded over 1,000 basis points relative to pre-pandemic levels, demonstrating the inherent operating leverage that exists in the business and management’s strong focus on maximizing profitability despite well-documented macro cost pressures.”

Please refer to the image referencing the Revenue Performance Summary.

^{___________________________
1} Same-store sales are measured by comparing revenues for centers open for the entire duration of both the current and comparable measurement periods. The pre-pandemic comparable period for the quarter ended July 3, 2022 is the quarter ended on June 30, 2019. The pre-pandemic comparable period for the fiscal year ended July 3, 2022 are the trailing twelve months ended on December 29, 2019.
² Adjusted EBITDA, trailing twelve month Adjusted EBITDA and normalized net income are non-GAAP measures. “GAAP” stands for Generally Accepted Accounting Principles in the U.S. Please see the sections of this document titled “GAAP Financial Information” and “GAAP to non-GAAP Reconciliations” for more information on the Company’s GAAP and non-GAAP measures. Certain figures in the tables throughout this document may not foot due to rounding.
³ Class A and Class B shares outstanding excludes 3.2 million shares that are subject to forfeiture contingent on certain stock price thresholds.
⁴ Fourth quarter and fiscal year 2022 represent 14 week and 53 week periods, respectively. As a result, comparisons excluding the impact of extra week are provided.
⁵Total Bowling Center Revenue excludes closed bowling center activity and media revenue, which is also a component of our bowling operations. Data for all weeks following the close of the fiscal year ended on July 3,2022 are preliminary and have not been audited or reviewed and are forward-looking statements based solely on information available to us as of the date of this announcement.

* The revenue performance in individual weeks can be positively or negatively impacted by timing shift of holiday/sporting events, holidays moving to weekends, and extreme weather events.

Investor Webcast Information
Listeners may access an investor webcast hosted by Bowlero. The webcast and results presentation will be accessible at 4:30 ET on September 15, 2022 in the Events & Presentations section of the Bowlero Investor Relations website at https://ir.bowlerocorp.com/overview/default.aspx.

About Bowlero Corp.
Bowlero Corp. is the worldwide leader in bowling entertainment. 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 and AMF. Bowlero Corp. is also home to the Professional Bowlers Association, which boasts thousands of members and millions of fans across the globe. For more information on Bowlero Corp., please visit BowleroCorp.com.

Forward Looking Statements

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. These forward-looking statements are generally identified by the use of words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and, in each case, their negative or other various or comparable terminology and include preliminary results. 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’s current expectations, estimates, forecasts, projections, assumptions, beliefs and information. Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. All such forward-looking statements are subject to risks and uncertainties, many of which are outside of our control, and could cause future events or results to be materially different from those stated or implied in this document. It is not possible to predict or identify all such risks. These risks include, but are not limited to: the impact of COVID-19 or other adverse public health developments on our business; our ability to grow and manage growth profitably, maintain relationships with customers, compete within our industry and retain our key employees; changes in consumer preferences and buying patterns; the possibility that we may be adversely affected by other economic, business, and/or competitive factors; the risk that the market for our entertainment offerings may not develop on the timeframe or in the manner that we currently anticipate; general economic conditions and uncertainties affecting markets in which we operate and economic volatility that could adversely impact our business, including the COVID-19 pandemic and other factors described under the section titled “Risk Factors” in the registration statement on Form S-1 filed with the U.S. Securities and Exchange Commission (the “SEC”) by the Company, as well as other filings that the Company will make, or has made, with the SEC, such as Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this press release and in other filings. We expressly disclaim any obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by applicable law.

For Media:
Bowlero Corp. Public Relations
pr@bowlerocorp.com

For Investors:
ICR, Inc.
Ashley DeSimone
Ashely.desimone@icrinc.com

Source: Bowlero Corp.