Lucky Strike Entertainment Corporation · NYSE:LUCK
Lucky Strike Entertainment — Q2 FY2024 Earnings Presentation
23 slides from Lucky Strike Entertainment's earnings presentation, February 2024
Slide 1: 2024 Investor Presentation February 2024
Boole \CKY STRIKE GB 2024 INVESTOR PRESENTATION FEBRUARY 2024
Slide 2: Forward-looking statements; 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: FY24 guidance: revenue and Adjusted EBITDA
32%-34% ~$1,140 - ~$1,190 33.5% ~$365 - ~$405 $1,038 $354 FY23 FY24 Guidance FY23 FY24 Guidance Total revenue growth of 10%-15%(1), Adjusted EBITDA with same store revenue flattish % margin of 32%-34% (1) Excludes $21 million Service Fee Revenue in Fiscal Year 2023. (2) See "Non-GAAP Financial Measu
Slide 4: Average Revenue Per Customer and Conversions
Average Revenue Per Customer Conversions CPI-level annual price increases Bundled offerings drive additional spend locations remaining to be converted to Continual innovation of the customer upscale brand experience/offerings Increase use of technology including online sales and F&B kiosks returns
Slide 5: Scaled operator with new builds in marquee markets
SCALED OPERATOR WITH NEW BUILDS IN MARQUEE MARKETS TYSONS CORNER NEW BUILD OPPORTUNITIES MOORPARK CLEAR PATH TO LONG-TERM, COMPOUNDED TOPLINE GROWTH
Slide 6: 350 operating locations across North America
350 operating locations as of December 31, 2023 Well positioned in highly attractive markets across North America Robust acquisition pipeline supports unit growth Three core brands Bowlero Lucky Strike AMF/Other
Slide 7: Acquisitions and new builds provide 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 Dec 31, 2023 Future Potential
Slide 8: 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 9: Bowlero self-funding model with 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 10: Average Unit Volumes 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 11: 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 12: Conversion upgrades: 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 13: Rebrand and kitchen/bar replacement
– Rebrand name, including signage – Kitchen/bar replacement, front desk, changes to layout (e.g., lane additions)
Slide 14: Illustrative examples of converted locations
ILLUSTRATIVE EXAMPLES OF CONVERTED LOCATIONS BOWLERO MANTECA — CHECK IN
Slide 15: Illustrative example of a new build
ILLUSTRATIVE EXAMPLE OF A NEW BUILD BOWLERO DANIA BEACH
Slide 16: 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 17: Maintenance capex is 3%-4% of revenue
Maintenance capex is 3%-4% of revenue 86% 67% 64% 32% 32% 47% 19% 19% includes 25% growth capex Live Live Theme Parks FECs Theme Parks FECs Entertainment Entertainment LTM 2Q24 EBITDA margin LTM 2Q24 (EBITDA – total capital expenditures) / Adj. EBITDA Note: Bars in chart represent average of peer se
Slide 18: Fully diluted share count reduced by ~47 million
Since going public, the fully diluted share count has been reduced by ~47 million shares or 20%+ 250 215.3 200 168.6 150 100 50 0 Dec 31, 2021 Dec 31, 2023 (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 19: Same store revenue reconciliation by quarter
2Q FY20 2Q FY24 2Q FY22 2Q FY23 3Q FY22 4Q FY22 1Q FY23 2Q FY23 3Q FY23 4Q FY23 1Q FY24 2Q FY24 (in thousands) 12/29/19 12/31/23 12/26/21 01/01/23 3/27/22 07/03/22 10/02/22 01/01/23 04/02/23 07/02/23 10/01/23 12/31/23 Total Revenue - Reported $184,842 $305,671 $205,190 $273,385 $257,820 $267,717 $23
Slide 20: 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 21: 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 (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 Consolidated Revenue Retail $140 $136 $184 $192 $166 $170 $216 $163 $152 $180 Event 22 40 40 46 41 69 60 48 46 90 League & tourn
Slide 22: Net income to Adjusted EBITDA reconciliation
Fiscal Year Ended Three Months Ended (in thousands) July 2, 2023 July 3, 2022 December 31, 2023 January 1, 2023 December 29, 2019 Consolidated Revenues $1,058,790 $911,705 $305,671 $273,385 $184,842 Net income (loss) - GAAP 82,048 -29,934 -63,469 1,435 6,448 Net income (loss) margin 7.7% -3.3% -20.8
Slide 23: Bowlero: A premium consumer experience with opportunity for 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
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