Lucky Strike Entertainment Corporation · NYSE:LUCK
Lucky Strike Entertainment — Q1 FY2025 Earnings Presentation
25 slides from Lucky Strike Entertainment's earnings presentation, November 2024
Slide 1: Investor Presentation November 2024
Foleo LUCKY X STRIKE GB 1925 INVESTOR PRESENTATION NOVEMBER 2024
Slide 2: Forward-looking statements
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: First quarter highlights
• Total Location Revenue increased +17.5% Y/Y • Adjusted EBITDA grew 20.7% Y/Y to $62.9M • Adjusted EBITDA Margin expanded to 24.2% or +130bps in seasonally slowest quarter • Acquired Boomers with 5 FECs and 1 Waterpark(1) on September 30, 2024 • Upside as we invest capital, implement operational ef
Slide 4: A location-based entertainment platform with proven history of superior returns
A location-based entertainment platform with proven history of superior returns The industry leader in massive Proven history of improving addressable market of $100bn+ acquired assets’ margins and for out-of-home entertainment above industry sales growth Consistent and proven track Best in class ma
Slide 5: Revenue growth FY19 to FY25 midpoint
$1,250M $1,149M $1,038M $897M $672M FY19 FY22 FY23 FY24 FY25 - Midpoint
Slide 6: AMF acquisition returns
↗ Acquired AMF at Enterprise Value of $310M. ↗ Grew revenue 4% Revenue CAGR over 11 Bowlero put up $20M equity funding in 2013 years despite closing 18% of centers ↗ Bowlero best practices implemented in acquired ↗ 6% Revenue CAGR when adjusting for closed centers drove dramatic performance centers
Slide 7: Brunswick acquisition returns
↗ Bowlero acquired 85 Brunswick locations from ↗ Grew revenue 4% Revenue CAGR over 10 Brunswick in 2014 for $260M. In the same years despite closing 14% of centers year entered Sale-Leaseback for $200M, ↗ 5% Revenue CAGR when adjusting for closed reducing the purchase price to $60M centers with AUV
Slide 8: Bowl America acquisition returns
↗ Bowlero acquired Bowl America with 17 ↗ Grew revenue 19% Revenue CAGR over first locations in 2021 for $44 million. Sold off 6 3 years despite selling 35% of centers underperforming locations for $25M for net ↗ Incremental upside expected as we continue purchase price of $19M to invest in growth i
Slide 9: 361 operating locations across North America
361 operating locations as of November 4, 2024 Well positioned in highly attractive markets across North America Robust acquisition pipeline supports unit growth Acquired Boomers which provides platform for FECs Bowlero Lucky Strike AMF/Other
Slide 10: 2018-2024 Location Additions
Asd 2018-2024 Location Additions 1 Acquisitions 41 $299M ~$60M 4.9x Chain 28 $134M ~$40M 3.4x Acquisitions New Builds 12 $90M ~$40M 2.3x Bowlero Lucky Strike AMF/Other Note: $ in millions (1) Excludes sale-leaseback proceeds. (2) Illustrative. Annualized EBITDA for acquisitions completed in FY24.
Slide 11: Acquire locations with land at 4-7x EBITDAR
Acquire Locations with Land at 4-7x EBITDAR ↗ We continue to add to our unencumbered land portfolio Bowlero ↗ Sale-Leasebacks are Bowlero Optimization: a proven funding Self Funding Year 1 EBITDAR mechanism for Model Margin Lift acquisitions in the location-based entertainment industry to drive long
Slide 12: Average unit volumes reset to new base
$3.2M $3.3M $2.8M $2.4M FY19 FY22 FY23 FY24 Average Unit Volumes have reset to a new base driven by higher Average Revenue Per Customer
Slide 13: Center update and renovation elements
– 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 14: Rebrand and remodel elements
– Rebrand name, including signage – Kitchen/bar replacement, front desk, changes to layout (e.g., lane additions)
Slide 15: Illustrative example of a new build
ILLUSTRATIVE EXAMPLE OF A NEW BUILD BOWLERO DANIA BEACH
Slide 16: Raging Waves acquisition success
• Raging Waves acquisition was a success driven by season pass initiative with 88k season passes sold vs PY of 39k • Investing $2-3M of capex before FY25 season to drive revenue per cap increases with better foods and leaning into Event Sales
Slide 17: Boomers acquisition included Big Kahuna's in Destin
ACQUISITION OF BOOMERS INCLUDED BIG KAHUNA’S IN DESTIN, FLORIDA
Slide 18: Fully diluted share count reduced by ~50 million
Since going public, the fully diluted share count has been reduced by ~50 million shares or 20%+ 250 215 200 164 150 100 50 0 Dec 31, 2021 Nov 4, 2024 (1) Excludes 11.1M earnout shares priced at $17.50. Assumes stock price of $10.33 as of November 1, 2024 for dilution from stock options.
Slide 19: Cumulative $ Return
Cumulative $ Return ($ in millions) $600 $500 $400 $300 $200 $100 $0 YE July 3, 2022 YE July 2, 2023 YE June 30, 2024 QE Sept 29, 2024 Year Ended Three Months Ended ($ in millions) July 3, 2022 July 2, 2023 June 30, 2024 Sept 29, 2024 Repurchase of Treasury Stock $31 $96 $254 $8 Repurchase Warrants
Slide 20: Revenue reconciliation
FY 23 FY 24 2Q FY23 3Q FY23 4Q FY23 1Q FY24 2Q FY24 3Q FY24 4Q FY24 1Q FY25 (in thousands) 07/02/23 6/30/2024 01/01/23 04/02/23 07/02/23 10/01/23 12/31/23 3/31/2024 6/30/2024 9/29/2024 Total Revenue - Reported $1,058,790 $1,154,614 $273,385 $315,725 $239,420 $227,405 $305,671 $337,670 $283,868 $260,
Slide 21: Quarterly revenue and Adjusted EBITDA
Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 (in millions) 10/2/22 1/1/23 4/2/23 7/2/23 10/1/23 12/31/23 3/31/24 6/30/24 9/29/24 Consolidated Revenue Retail $166 $170 $216 $162 $152 $180 $220 $189 $180 Event 41 69 60 48 46 90 76 66 55 League & tournaments 19 29 34 22 22 33
Slide 22: Adjusted EBITDA reconciliation
Fiscal Year Ended Three Months Ended (in thousands) June 30, 2024 July 2, 2023 September 29, 2024 October 1, 2023 Consolidated Revenues $1,154,614 $1,058,790 $260,195 $227,405 Net (loss) income - GAAP -83,581 82,048 23,095 18,219 Net (loss) income margin -7.2% 7.7% 8.9% 8.0% Adjustments: Interest ex
Slide 23: Lease reconciliation fiscal year
Reduction of operating lease right of use assets (amortization) 34.8 30.8 Consolidated Statement of Cash Flows (Operating activities) Change in operating lease liabilities (payments less interest) (26.2) (19.9) Consolidated Statement of Cash Flows (Operating activities) Note 6 - Leases – disclosed i
Slide 24: Lease reconciliation quarter
Reduction of operating lease right of use assets (amortization) 8.5 7.8 Condensed Consolidated Statement of Cash Flows (Operating activities) Change in operating lease liabilities (payments less interest) 6.0 (7.1) Condensed Consolidated Statement of Cash Flows (Operating activities) Note 4 - Leases
Slide 25: New and old income statement presentation
New Presentation Old Presentation Three Months Ended Three Months Ended September 29, 2024 October 1, 2023 September 29, 2024 October 1, 2023 Revenues Revenues $ 260,195 $ 227,405 Bowling $ 122,203 $ 116,430 Costs of revenues 208,565 182,921 Food & beverage 88,039 74,913 Gross profit 51,630 44,484 A
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