Lucky Strike Entertainment Corporation · NYSE:LUCK
Lucky Strike Entertainment — Q3 FY2023 Earnings Presentation
18 slides from Lucky Strike Entertainment's earnings presentation, May 17, 2023
Slide 1: Quarter 3 Fiscal Year 2023 Results Presentation
44881 Quarter 3 Fiscal Year 2023 Results Presentation May 2023
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: Q3 FY2023 Results Set a New Performance Record
Q3 FY2023 Results Set a New Performance Record ▲Continued track record of strong, consistent top-line growth. ▲Revenue in the third quarter was a record-breaking $316 million. ▲Revenue grew $58 million or 22% year-over-year and $111 million or 54% vs. pre-pandemic performance1. ▲Same-store revenue2
Slide 4: Q3 FY2023 Results Set a New Performance Record (cont'd)
Q3 FY2023 Results Set a New Performance Record (cont'd) ▲ For trailing twelve months ended April 2, 2023, Total Company Revenue was $1.1 billion and TTM Adjusted EBITDA1 was $372 million with a 34.2% Adjusted EBITDA margin1. ▲Generated $118 million in Adjusted Cash from Operating Activities1 in the
Slide 5: 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. ▲Robust acquisition pipeline leading to footprint growth. ▲329 centers currently operating • Since start of
Slide 6: Bowling Center Trailing 13-Week Revenue Growth Trend
Bowling Center Trailing 13-Week Revenue Growth Trend1 Notes: 1Revenue growth is calculated as the growth in Bowling Center Revenue compared to the comparable week during the pre-pandemic 52-week period beginning March 2019 and ending February 2020. Total Bowling Center Revenue (i) excludes media-rel
Slide 7: Calibrating Revenue and Adjusted EBITDA Performance vs. Prior Years
Calibrating Revenue and Adjusted EBITDA Performance vs. Prior Years Total Company Revenue 1 Pre-Pandemic FY2022 FY2023 Normalized FY22 (dollars in millions) $316 Record-Setting Revenue & Adjusted EBITDA2 performance $273 $268 $258 $230 Revenue increased to the largest Quarter ever in Company History
Slide 8: Bowling Center-level Economics Continue to Out-perform Pre-Pandemic and Prior Year
Bowling Center-level Economics Continue to Out-perform Pre-Pandemic and Prior Year THIRD QUARTER Bowling Center Revenue increased $57 million or 23% year- over-year and grew $112 million or 57% compared to pre- Pre- ($MM) '23A '22A1 Pandemic2 pandemic period. Walk in Retail $217 $186 $137 Group Even
Slide 9: 3Q Adjusted EBITDA Grew Materially vs. Prior Year and Pre-Pandemic
3Q Adjusted EBITDA Grew Materially vs. Prior Year and Pre-Pandemic Adjusted EBITDA1 ($mm) Adjusted EBITDA Margin: 32.8% 39.1% 2 40.4% Adjusted EBITDA in the Second Quarter grew $19 million or 18% year-over-year and exceeded pre-pandemic3 levels by $60 million or 89%. The prior year benefited from a
Slide 10: Significant Cash Generated from Operations in Q3 FY2023
Significant Cash Generated from Operations in Q3 FY2023 Operating cash flow 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) April 2, 2023 March 27, 2022 Cash ba
Slide 11: Capital Structure and Related Market Updates
Capital Structure and Related Market Updates ▲Successfully hedged Term Loan B floating rate exposure with zero upfront premium. ▲ 1-month Term SOFR locked into a defined band of ~94bps - 550bps through March 31, 2026. ▲$800 million (~89%) of notional principal hedged. ▲Retired ~32% of notional princ
Slide 12: Bowlero Fully Diluted Share Count
Bowlero Fully Diluted Share Count Since going public, the fully diluted share count has been reduced by 8.7 million shares or 4% while retiring all warrants and 32% of the preferred shares. PF as May 15, 2023 Fully Diluted Share Count (shares in thousands) Q2 FY22 ADJ. PF Q3 FY23 (assumes share pric
Slide 13: Appendix
Appendix
Slide 14: 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 15: Non-GAAP reconciliations (cont'd)
Non-GAAP reconciliations (cont’d) Trailing twelve month Adjusted EBITDA Reconciliation September 26, December 26, (in thousands) 2021 2021 March 27, 2022 July 3, 2022 October 2, 2022 January 1, 2023 April 2, 2023 Consolidated TTM Revenue $526,281 $657,483 $803,091 $911,705 $960,987 $1,029,182 $1,087
Slide 16: Non-GAAP reconciliations (cont'd)
Non-GAAP reconciliations (cont’d) Adjusted Net Income Reconciliation Three Months Ended (in thousands) April 2, 2023 March 27, 2022 Net Loss $(32,073) $(17,987) Change in fair value of earnouts and warrants 87,222 66,617 Share-based compensation — — Transactional and other advisory costs — 3,353 Adj
Slide 17: Non-GAAP reconciliations (cont'd)
Non-GAAP reconciliations (cont’d) 17
Slide 18: Thank You
THANK YOU
Lucky Strike Entertainment — Q3 FY2023 Earnings Presentation on 6ix