Lucky Strike Entertainment Corporation · NYSE:LUCK
Lucky Strike Entertainment — Bowlero — Q1 2023 Earnings Presentation
15 slides from Lucky Strike Entertainment's earnings presentation, Nov 16, 2022
Slide 1: Quarter 1 Fiscal Year 2023 Results Presentation
44881 Quarter 1 Fiscal Year 2023 Results Presentation November 2022
Slide 2: Disclaimer
Disclaimer Forward-looking statements Some of the statements contained in this presentation 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
Slide 3: Q1 FY2023 Results Demonstrate Continued Positive Momentum in the Business
Q1 FY2023 Results Demonstrate Continued Positive Momentum in the Business ▲ Continued track record of strong, consistent top-line growth ▲ Revenue in the first quarter was $230.3 million. ▲ Revenue grew $49.3 million or 27.2% year-over-year and $81.7 million or 55.0% vs. pre-pandemic performance1. ▲
Slide 4: Growing Portfolio of Assets in Diversified and Attractive Markets
Growing Portfolio of Assets in Diversified and Attractive Markets ▲ Well positioned in highly attractive markets across North America • ~75% of revenue generated in or adjacent to top 25 MSAs ▲ 325 centers currently operating • Acquired 9 new centers since start of the fiscal 2023 and 38 new centers
Slide 5: Total Bowling Center Revenue Performance Trend
Total Bowling Center Revenue1 Performance Trend REVENUE PERFORMANCE SUMMARY COMPARED TO PRE-PANDEMIC 70% 64.9% 65.4% 64.3% 63.0% 58.3% 57.5% 58.4% 60% 57.3% 56.0% 54.3% 51.5% 49.5% 50% 43.3% 40% 30% 20% 8.8% 10% 0% 22 22 22 22 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 22 2 02 02 02 02 02 02 02 02 02 02 02 0
Slide 6: First Quarter Adjusted EBITDA Grew at a Double-Digit Pace
First Quarter Adjusted EBITDA Grew at a Double-Digit Pace Adjusted EBITDA1 ($mm) Adjusted EBITDA Margin: Adjusted EBITDA1 in Q1 FY23 grew $6.5 million or 11.0% year-over-year and exceeded pre-pandemic2 levels by $40.4 million or 162.0%. 16.8% 32.5% 28.4% $65 Adjusted EBITDA Margin expanded 1,158 bps
Slide 7: Calibrating Revenue and Adjusted EBITDA Performance vs. Prior Years
Calibrating Revenue and Adjusted EBITDA1 Performance vs. Prior Years Total Company Revenue (dollars in millions) Pre-Pandemic FY2022 FY2023 $268 Phenomenal performance in a "typical" seasonally-low volume quarter. $258 $230 $205 $205 Revenue soared to the largest Q1 and 3rd highest Quarter ever. $18
Slide 8: Bowling Center-level Economics Continue to Out-perform Pre-Pandemic Levels
Bowling Center-level Economics Continue to Out-perform Pre-Pandemic Levels FIRST QUARTER Bowling Center Revenue increased $50 million or 28% year-over- year driven by the near doubling of Event Revenue, recovery of Pre- League Business, and solid walk-in retail performance. ($MM) '23A '22A Pandemic1
Slide 9: $35.6mm of Cash Generated from Operations in Q1 FY2023
$35.6mm of Cash Generated from Operations in Q1 FY2023 Significant cash generated from operations provides support for capital investments in center acquisitions, new builds, upgrades to existing centers, and share buybacks Three months ended Three months ended (dollars in thousands) October 2, 2022
Slide 10: Appendix
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Slide 11: Non-GAAP reconciliations
Non-GAAP reconciliations 1 The closed center adjustment is to remove EBITDA for closed centers. Adjusted EBITDA Reconciliation Closed centers are those centers that are closed for a variety of reasons, including permanent closure, newly acquired or built centers prior to Three Months Ended opening,
Slide 12: Non-GAAP reconciliations (cont'd)
Non-GAAP reconciliations (cont’d) Trailing twelve month Adjusted EBITDA Reconciliation Net loss - GAAP and Adjusted EBITDA September 26, December 26, (in thousands) March 28, 2021 June 27, 2021 2021 2021 March 27, 2022 July 3, 2022 October 2, 2022 Consolidated Revenues $247,257 $395,234 $526,281 $65
Slide 13: Non-GAAP reconciliations (cont'd)
Non-GAAP reconciliations (cont’d) NORMALIZED NET INCOME RECONCILIATION Three months (in thousands) October 2, 2022 Net loss - GAAP $(33,534) Change in fair value of earnouts 40,760 Normalized Net Income $7,226 13
Slide 14: Bowlero Fully Diluted Share Count
Bowlero Fully Diluted Share Count @ Current @ Earnout Tranche (shares in thousands) Share Price 1 II Price 2 Presumed Share Price $14.77 $17.50 Class A & B Shares Issued & Outstanding 162,685 162,685 Earnout Shares3 — 22,837 Options & RSUs4 12,196 15,092 Convertible Preferred Stock5 15,846 15,846 Fu
Slide 15: Thank You
THANK YOU