Bowlero Corp.

Greetings and welcome to the Bolero Corp third quarter 2023 conference call. It is now my pleasure to hand over the call to Ashley DeSimone of ICR.

Good afternoon and welcome to the Bolero Corp third quarter fiscal 2023 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 under the Private Securities Litigation Reform Act. 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 statement. For further details concerning these risks and uncertainties, please see our annual report on Form 10-K filed with the SEC on September 15, 2022, as well as other filings that the company will make or has made with the SEC, such as quarterly reports on Form 10-Q and current reports on Form 8-K. 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 law. In addition, during today's call, the company will discuss non-GAAP financial measures, which we believe could be useful in evaluating performance. Definitions and reconciliations for non-GAAP measures can be found in our earnings press release. As a reminder, this conference is being recorded. I would now like to turn the call over to Thomas Shannon, of Bolero Corp. Please go ahead.

Good afternoon and welcome to the Bolero Corp earnings discussion for Q3 of fiscal 2023. Thank you for participating in today's conference call. I am Thomas Shannon, founder, chairman, and CEO of Bolero Corp. I'm joined by Brett Parker, vice chairman and president, and Bobby Lavin, who recently joined as chief financial officer designate Bobby, who will be the company's CFO as of tomorrow, brings extensive experience as a public company CFO and is a natural fit with our team and culture. We're thrilled to welcome him to the Bolero family. During today's prepared remarks, we'll cover several topics as we have many exciting updates to share, starting with our financial performance in the quarter and several important balance sheet optimization transactions we have completed as we continue to focus on ways to create and deliver shareholder value. Beginning with the financial highlights, I am happy to report that we had, by far, the largest quarter in our nearly three-decade history, with revenues reaching $316 million and adjusted EBITDA reaching $128 million, equating to a 40.4% margin for the quarter. Year-over-year revenue growth was 22%, and relative to pre-pandemic, revenue was higher by 54%. This revenue growth was driven by a healthy combination of same-store sales growth and contributions from acquired and newly opened centers, with same-store sales increasing 17% year-over-year and 30% versus pre-pandemic. In addition to continued strong demand across our various business lines, which are walk-in retail, leagues, and events, this new high watermark remains a testament to our operating ethos. We prioritize consistent execution across all levels of the organization. These results reflect the output of our team's efforts, our proprietary technology, and the fundamental strength of our business model. Overall, Bolero's trajectory is shaped by our ability to generate consistent same-store sales growth, our ABC growth strategy, which includes acquisitions, new builds, and conversions, our proprietary technology, and world-class team, and our dedication to continued innovations and excellence in execution. We pioneered upscale experiential bowling, introduced technology and disciplined operational execution to a highly fragmented industry, and continue to focus on the next frontier of the customer experience as exemplified through strategic innovation, such as Money Bowl, which has now been activated in 64 centers or about 20% of our portfolio. The total downloads are over 60,000. Moreover, the free-to-play version is expected to launch in our current fiscal quarter, which will further our reach across the nation and increase access to this differentiated, gamified bowling experience. We appreciate your continued trust in our team and support of our proven strategy. And we're excited to take Bolero to new heights. With that, I would like to hand it off to Brett Parker to lead the balance of the discussion.