Lucky Strike Entertainment Corporation · NYSE:LUCK
Lucky Strike Entertainment — Q3 FY2024 Earnings Presentation
21 slides from Lucky Strike Entertainment's earnings presentation, May 2024
Slide 1: Q3 2024 Investor Presentation, May 2024
Boole \CKY STRIKE GB 3024 INVESTOR PRESENTATION MAY 2024
Slide 2: Forward-looking statements and Non-GAAP Financial Measures
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, that involve risk, assumptions and uncerta
Slide 3: 352 operating locations across North America
352 operating locations as of May 6, 2024 Well positioned in highly attractive markets across North America Robust acquisition pipeline supports unit growth Three core brands Bowlero Lucky Strike AMF/Other
Slide 4: Scaled operator with new builds in marquee markets
SCALED OPERATOR WITH NEW BUILDS IN MARQUEE MARKETS TYSONS CORNER NEW BUILD OPPORTUNITIES ORANGE COUNTY CLEAR PATH TO LONG-TERM, COMPOUNDED TOPLINE GROWTH
Slide 5: Acquisitions and new builds provide avenue for continued location growth
Acquisitions + New Builds provide avenue for continued location growth over the long-term Opportunity to roll up ~500-1,000 locations + ~200 new build opportunities FY22 FY23 May 6, 2024 Future Potential
Slide 6: 2018-2023 Location Additions
asd 2018-2023 Location Additions 1 Acquisitions 41 $299M ~$60M 4.9x Chain 28 $134M ~$40M 3.4x Acquisitions New Builds 11 $80M ~$37M 2.2x Bowlero Lucky Strike AMF/Other Note: $ in millions (1) Excludes sale-leaseback proceeds. (2) Illustrative. Annualized EBITDA for acquisitions completed in FY23.
Slide 7: Maintenance capex is 3%-4% of revenue
Maintenance capex is 3%-4% of revenue 86% 67% 64% 31% 31% 46% 19% 19% includes 25% growth capex Live Live Theme Parks FECs Theme Parks FECs Entertainment Entertainment LTM 3Q24 EBITDA margin LTM 3Q24 (EBITDA – total capital expenditures) / Adj. EBITDA Note: Bars in chart represent average of peer se
Slide 8: Self-funding model: acquisition and sale-leaseback
Purchase independent locations with land ownership Sale-leaseback of that land at reasonable cap rates that imply 12-15x EBITDA Bowlero Self Funding Model Sale-Leaseback 50% of Overlay QMS and EBITDAR at 12-15x Multiple Bowlero Optimization: Day 1-90 EBITDAR Margin Lift Acquire Location with Land at
Slide 9: Average Unit Volumes have reset to a new base
($ in millions) $3.2 $2.8 $2.3 Ordering Kiosk FY19 FY22 FY23 Average Unit Volumes have reset to a new base driven by higher Average Revenue Per Customer Contribution Margin Contribution Margin Contribution Margin
Slide 10: Powerful and reinforcing growth flywheel
Powerful and reinforcing growth flywheel Significant value creation Ownership of PBA creates strong opportunity through acquisitions and brand equity and prestige amongst go-forward optionality bowlers, which maximizes standalone profitability and drives traffic and spend. Potential media partnershi
Slide 11: Location conversion: arcade, flooring, lighting, screens
– update and/or add an arcade | – Flooring, paint (interior and exterior), and lighting – Video screens at the end of the lanes and upgraded sound system
Slide 12: Location conversion: rebrand, kitchen and bar, layout
– Rebrand name, including signage – Kitchen/bar replacement, front desk, changes to layout (e.g., lane additions)
Slide 13: Illustrative examples of converted locations
ILLUSTRATIVE EXAMPLES OF CONVERTED LOCATIONS BOWLERO MANTECA — CHECK IN B
Slide 14: Illustrative example of a new build
ILLUSTRATIVE EXAMPLE OF A NEW BUILD BOWLERO DANIA BEACH 4
Slide 15: PBA media and viewership highlights
↗ Over 72 hours of original first-run linear programming in 2024 ↗ Record for most live hours on broadcast in PBA history ↗ Media rights contract with FOX Sports ↗ Additional media rights fees from CBS Sports Network and OTT platform, BowlTV ↗ 13.6M total viewership in 2023 ↗ 10% ratings increase on
Slide 16: Fully diluted share count reduced by ~48 million shares
Since going public, the fully diluted share count has been reduced by ~48 million shares or 20%+ 250 215.3 200 168.1 150 100 50 0 Dec 31, 2021 May 3, 2024 (1) Excludes 11.1M earnout shares priced at $17.50. Assumes stock price of $11.60 as of February 2, 2024 for dilution from stock options.
Slide 17: Revenue reconciliation by quarter
3Q FY19 3Q FY24 3Q FY22 3Q FY23 4Q FY22 1Q FY23 2Q FY23 3Q FY23 4Q FY23 1Q FY24 2Q FY24 3Q FY24 (in thousands) 3/31/19 3/31/24 3/27/22 04/02/23 07/03/22 10/02/22 01/01/23 04/02/23 07/02/23 10/01/23 12/31/23 3/31/2024 Total Revenue - Reported $205,023 $337,670 $257,820 $315,725 $267,717 $230,260 $273
Slide 18: Same store revenue reconciliation FY22-FY23
FY22 FY23 (in thousands) 07/03/2022 07/02/2023 Total Revenue - Reported $911,705 $1,058,790 less: Service Fee Revenue -14,796 -21,019 Revenue excluding Service Fee Revenue $896,909 $1,037,771 less: Non-Center Related -25,287 -21,613 (including Closed Centers) less: 53rd Week / Calendar Shift -20,663
Slide 19: Quarterly revenue and Adjusted Center EBITDA
Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 (in millions) 9/26/21 12/26/21 3/27/22 7/3/22 10/2/22 1/1/23 4/2/23 7/2/23 10/1/23 12/31/23 3/31/24 Consolidated Revenue Retail $140 $136 $184 $192 $166 $170 $216 $163 $152 $180 $220 Event 22 40 40 46 41 69 60 48
Slide 20: Net income to Adjusted EBITDA reconciliation
Fiscal Year Ended Three Months Ended (in thousands) July 2, 2023 July 3, 2022 March 31, 2024 April 2, 2023 March 31, 2019 Consolidated Revenues $1,058,790 $911,705 $337,670 $315,725 $205,023 Net income (loss) - GAAP 82,048 -29,934 23,846 -32,073 27,432 Net income (loss) margin 7.7% -3.3% 7.1% -10.2%
Slide 21: A premium consumer experience with opportunity for significant value creation
Bowlero: A premium consumer experience with opportunity for significant value creation The industry leader in massive Well-positioned to benefit from Highly profitable business addressable market of $100bn+ for secular shift in consumer spending model with industry leading out-of-home entertainment
Lucky Strike Entertainment — Q3 FY2024 Earnings Presentation on 6ix