On November 7, 2023, Bowlero Corp (BOWL, Financial), the world's largest owner and operator of bowling centers, released its financial results for the first quarter of the 2024 Fiscal Year, which ended on October 1, 2023. The company reported a slight decrease in revenue, down 1.2% to $227.4 million compared to the prior year. However, the company's net income rebounded to $18.2 million, a significant improvement from the prior year loss of $33.5 million.
Financial Highlights
Despite the slight decrease in revenue, Bowlero Corp (BOWL, Financial) saw a significant improvement in its net income, which stood at $18.2 million, compared to a loss of $33.5 million in the prior year. The company's adjusted EBITDA was $52.1 million, down from $65.3 million in the prior year. The company also reported that it added 18 centers during the quarter, 17 from acquisitions and 1 new build out, bringing the total centers in operation to 350 as of November 7, 2023.
Company's Outlook and Guidance
Despite the challenges faced in the first quarter, Bowlero Corp (BOWL, Financial) remains optimistic about its future performance. The company reiterated its financial guidance for fiscal year 2024, expecting revenue to be up 10% to 15% by the end of the fiscal year, excluding the $21 million of Service Fee Revenue from prior year revenue. This equates to $1.14 billion to $1.19 billion of Revenue. Adjusted EBITDA margin is expected to be 32% to 34%, which equates to Adjusted EBITDA of $365 million to $405 million.
Strategic Initiatives and Partnerships
During the quarter, Bowlero Corp (BOWL, Financial) entered into a transaction with VICI Properties Inc. relating to the transfer of land and real estate assets of 38 bowling entertainment centers for an aggregate value of $432.9 million. The company also acquired the Lucky Strike brand and all 14 of Lucky Strike’s centers, as well as two premium centers in Scottsdale, with Mavrix and Octane Raceway, and three additional centers. The company spent $130 million on acquisitions year to date.
Share Repurchase Program
The company repurchased 12.1 million shares of Class A common stock during the quarter, bringing the total common shares acquired under the program to 23.4 million. As of November 1, 2023, the total Class A and Class B shares outstanding are 151,287,782.
Explore the complete 8-K earnings release (here) from Bowlero Corp for further details.
