Bowlero Corp.

Greetings, and welcome to the Bolero Corp Q4 and Fiscal Year 2022 Earnings Conference Call. At this time, all participants are in listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I'll now turn the conference over to your host, Ashley DeSimone. You may begin.

Good afternoon. I'm Ashley DeSimone from ICR. Welcome to the Bolero Corp fourth quarter and fiscal year 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 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. Reconciliation of adjusted EBITDA to net income calculated under GAAP can be found in our earnings press release and will be included in our Form 10-Q for the fourth quarter and fiscal year 2022. Throughout today's conversation, you will hear the company refer to EBITDA and adjusted EBITDA. At all times, the company is referring to adjusted EBITDA as described therein and reconciled to net income in the associated disclosures. As a reminder, this conference is being recorded today. I would now like to turn the call over to Tom Shannon, Chief Executive Officer of Bolero, and Brett Parker, President and Chief Financial Officer of Bolero. Please go ahead.

Good evening and welcome to the Bolero Corporation earnings discussion for Q4 and the full year of fiscal year 22. I'm Thomas Shannon, Chairman and CEO of Bolero Corp. We appreciate your taking the time to join the call today as we're looking forward to sharing some exciting updates on the state of the company. We value our shareholders and continuously endeavor to create value for all of them. Much has changed in fiscal year 22 as we have recovered from the disruptions of COVID-19 grew and upgraded our center footprint, relentlessly focused on operational improvements, and transitioned from a private company to a publicly held one. In fiscal year 2022, Bolero generated record revenues of nearly $912 million and record adjusted EBITDA of over $316 million. Compared to our pre-pandemic trailing 12-month levels, as of December 2019, of $694 million and $174 million, respectively. Revenue was higher by $218 million, or 31.4%, and adjusted EBITDA expanded by $142 million, or 82%. This massive improvement comes despite the lingering headwinds of COVID-19 and public company transitional costs, which negatively impacted fiscal year 2022. Fiscal year 22 cash produced from operating activities was a record $178 million. In the first nine weeks of Q1 of fiscal year 23, which takes you to September 4th of this year, revenue has remained extremely robust with total revenue growing 53% versus pre-pandemic levels and same store revenue growing 33% on the same basis. When compared to fiscal year 22, revenue for the corresponding nine week period fiscal year 23, total revenues were higher by 23% and same-store revenues were higher by 13%. During fiscal year 2022, we added 29 new centers to our portfolio. And in doing so, grew the center account by approximately 10%. A significant majority of these came with owned real estate as well. 27 of these centers were added by acquisition and two were new builds. Results in these new centers have been strong and anticipated returns are in line with or better than prior center additions. The pipeline for additional deals is robust and we continue to pursue accelerated growth through additional acquisitions and new builds. Adjusted EBITDA margin in fiscal 22 was 34.7%. This figure is higher than pre-pandemic by 960 basis points. And it's a testament to the relentless pursuit of world-class operational performance that lies at the core of our company ethos and continues to deliver margins well in excess of our peers. Ongoing utilization of our proprietary quantitative management solutions tool, known as QMS, bolsters our ability to drive continuous operating improvements. On December 16, 2021, the company began to trade publicly on the NYSE under the ticker BOWL, B-O-W-L. Since then, we have wasted no time in continuing to optimize our capital structure to maximize shareholder returns. As of May 18, 2022, we retired all of the company's outstanding warrants. Furthermore, we began returning capital to shareholders. Under our previously announced $200 million buyback authorization, we repurchased over 3.4 million shares in fiscal year 2022, returning over $34.6 million to shareholders in only five months. All in all, fiscal year 2022 is a transformative year for Bolero. The company has performed very well during that process and is poised for continued success. With that, I will turn it over to our president and CFO, Brett Parker, to provide a more detailed review of the quarter and year, and then we will take questions. Brett?