NYSE$LUCK

Lucky Strike Entertainment Corp · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported double-digit total growth and strategic acquisitions.

Bowlero Corp. reported an 11.8% increase in revenue to $305.7 million for the second quarter of fiscal year 2024. The company's acquisition of Lucky Strike contributed to this growth, and the event business saw a 30% increase. However, the company reported a net loss of $63.5 million, which includes $64.1 million of expense from the non-cash impact of the earnouts for the current period.

  • Revenue increased by 11.8% to $305.7 million compared to the prior year.
  • Adjusted EBITDA reached $103.1 million, up from $97.0 million in the prior year.
  • Three locations were added during the quarter, including two acquisitions and one new build-out.
  • The company repurchased approximately 7.5 million shares of Class A common stock for around $80 million during the quarter.

Headline financials

Total Revenue

$306M

Previous: $273M+11.8%
EPS

-$0.44

Previous: $0.20-320.0%
Capital Expenditures

-$114M

Previous: -$78.1M-45.4%
Free Cash Flow

-$177M

Previous: -$76.7M-130.9%
Net Income

-$63.5M

Previous: $1.44M-4522.9%
Operating Income

$49.5M

Previous: $60.4M-18.1%
Gross Profit

$90.6M

Previous: $93.7M-3.3%
Cash & Equivalents

$190M

Previous: $79.4M+139.1%
Total Assets

$3.19B

Previous: $1.94B+64.4%
Stock-Based Comp

$3.69M

Previous: $4.04M-8.6%

Revenue & EPS history

Lucky Cement Ltd · Revenue · Quarterly

$306M

Q2 2024+11.8%vs Q2 2023
Beat estimate in 7 of 13 quarters(54%)
ActualEstimate

Revenue by segment

Lucky Cement Ltd · $284M total across 3 segments · Q4 2024

  • Bowling
    $131M
  • Food & beverage
    $97.2M
  • Amusement & other
    $55.9M

Forward guidance

The Company expects Revenue to be up 10% to 15% in fiscal year 2024, excluding the $21 million of Service Fee Revenue1 from prior year revenue, equating to $1.14 billion to $1.19 billion. Adjusted EBITDA margin is expected to be 32% to 34%, which equates to Adjusted EBITDA of $365 million to $405 million. The Company expects the third quarter of fiscal year 2024 to have Revenue Excluding Service Fee Revenue of $335 million to $350 million and Adjusted EBITDA of $128 million to $143 million.

Tailwinds

  • Revenue is expected to increase by 10% to 15% in fiscal year 2024.
  • Adjusted EBITDA margin is projected to be between 32% and 34% for fiscal year 2024.
  • Revenue Excluding Service Fee Revenue for Q3 2024 is expected to be $335 million to $350 million.
  • Adjusted EBITDA for Q3 2024 is anticipated to be $128 million to $143 million.
  • Significant reinvestment in the business is planned for fiscal year 2024, including acquisitions, new builds, and conversions and growth initiatives.

Headwinds

  • Meaningful weather headwinds in the first three weeks of January are expected to impact the third quarter.
  • The company experienced a net loss of $63.5 million for the quarter.
  • The net loss includes a $64.1 million expense from the non-cash impact of earnouts.
  • Cautious approach to the third quarter due to weather headwinds.
  • The company is reinvesting heavily in the business in fiscal year 2024, with more than $190 million allocated to acquisitions (up from $160 million), $40 million to new builds, and $80 million to conversions and growth (up from $75 million).

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

+2.0%

Avg return

Earnings day

+4.5%

Avg return

5 days after

+7.3%

Avg return

30 days after

55%

11 / 20 earnings

Positive

+16.1%

Q2 2024

Best reaction

-15.0%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026-1.6%+0.4%-2.5%
Q2 2026-13.5%+3.0%+16.5%
Q1 2026-0.7%-1.7%+5.5%
Q3 2025-11.9%-4.3%-4.9%
Q2 2025-1.3%+10.1%-12.4%
Q1 2025+12.5%+11.3%+12.9%
Q4 2024+2.6%-5.3%+6.6%
Q3 2024-9.8%-12.1%+5.2%
Q2 2024+16.1%+29.2%+10.3%
Q1 2024+12.9%+9.9%+16.6%
Q4 2023+3.4%+5.7%+9.5%
Q3 2023-15.0%-14.3%-12.6%
Q2 2023+4.2%+8.3%+4.8%
Q1 2023-0.8%-4.5%-8.5%
Q4 2022+3.4%+7.4%+8.1%
Q3 2022+14.4%+23.4%+12.1%
Q4 2021+13.6%+12.8%+39.9%
Q2 2022+13.6%+12.8%+39.9%
Q1 2022+0.9%+0.7%+0.0%
Q3 2021-2.8%-2.8%-0.5%

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