Bowlero Corp. (NYSE:BOWL) Q3 2022 Earnings Conference Call May 11, 2022 5:30 PM ET

Company Participants

Brett Parker - President and CFO

Tom Shannon - Founder and Chief Executive Officer

Conference Call Participants

Eric Handler - MKM Partners

Stefanos Crist - CJS Securities

Michael Kupinski - Noble Capital Markets

Brian Vaccaro - Raymond James

Operator

Good day and welcome to the Bowlero Corp. Q3 2022 Earnings Conference Call. All participants will be in a listen-only mode.

During this call, the company may make certain statements that constitute forward-looking statements. Such statements reflect the company's views with respect to future events as of today and are based on our management's current expectations, estimates, forecasts, projections, assumptions, beliefs and information. These statements are subject to a number of risks and uncertainties that can cause actual events and results to differ materially from those described in the forward-looking statements. For further details concerning these risks and uncertainties, please see our final prospectus filed with the SEC on February 1, 2022.

The company expressly disclaims any obligation to publicly update or review any forward-looking statements whether as a result of new information, future developments or otherwise except as required by applicable law. In addition, during today's call, the company will discuss non-GAAP financial measures, which we believe could be useful in evaluating our performance. Reconciliations of adjusted EBITDA, the net income calculated under GAAP can be found in our earnings press release and will be included in our Form 10-Q for the third quarter of fiscal year 2022.

As a reminder, this conference is being recorded.

I would now like to turn the conference over to Brett Parker, please go ahead.

Brett Parker

Good evening, and welcome to the Bowlero Corp. earnings discussion for Q3 of fiscal year '22. I'm Brett Parker, President and CFO of Bowlero Corp.

Before I begin, I direct you to the disclaimer on Page 2 of the deck as well as the reconciliation for non-GAAP measures in the appendix. Both of which are an integral part of this presentation. In this presentation, you will find a discussion of, among other things, adjusted EBITDA, which is a non-GAAP financial measure that is not in accordance with or an alternative to measures prepared in accordance with GAAP.

We are extremely pleased with our performance in the quarter and the first nine months of the year. Our performance in Q3 resulted in the highest level of revenue and adjusted EBITDA in the company's history. The business is now materially outperforming pre-pandemic performance, both in total and on a same-store basis. We also continue to generate prodigious levels of cash from operations, which positions us favorably to continue to execute our growth strategy. Driving this performance was a very strong growth in revenue, which increased by 129.8% year-over-year, and surpassed pre-pandemic levels by 25.8%. Same-store sales also rose 12.2% relative to pre-pandemic levels. This increase was supported by continued strong performance of walk-in retail revenue, and driven higher by growth in event revenue for the first quarter since the onset of the pandemic. This emerging source of increased revenue has the potential to support continued material growth and has resulted in an acceleration of our revenue expansion through the week ended April 24, 2022.