Bowlero Corp.

Thank you for standing by. My name is John and I'll be your conference operator for today. At this time, I would like to welcome everyone to the Bolvaro First Quarter 2035 Earnings Conference Call. All lines have been placed in mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. I would now like to turn the call over to Bobby Lavin, Chief Financial Officer. Please go ahead.

Good afternoon to everyone on the call. This is Bobby Lavin, Bolero's Chief Financial Officer. Welcome to our conference call to discuss Bolero's first quarter 2025 earnings. Today, we issued a press release announcing our financial results for the period ended, September 29, 2024. A copy of the press release is available in the investor relations section of our website. Joining me on the call today are Thomas Shannon, our founder and chief executive officer, and Lev Exer, our president. I'd like to remind you that during today's conference call, you may make certain forward-looking statements about the company's performance. Such forward-looking statements are not guarantees of future performance, and therefore one should not place undue reliance on them. Forward-looking statements are also subject to inherent risks and uncertainties that could cause actual results to differ materially from those expected. additional information concerning factors that could cause actual results to differ from those discussed in our forward-looking statement you should refer to the cautionary statements contained in our press release as well as the risk factors contained in the company's filings the securities and exchange commission bolero corporation undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances that occur after today's call Also, during today's call, the company may discuss certain non-GAAP financial measures as defined by SEC Regulation G. The GAAP financial measures most directly comparable to each non-GAAP financial measure discussed and the reconciliation of the differences between each non-GAAP financial measure and the comparable GAAP financial measure can be found on the company's website. I will now turn the call over to Tom.

Good afternoon. Thank you for joining us today. I am Thomas Shannon, founder and CEO of Bolero Corp. Total location revenue grew 17.5% year over year in the quarter. Our company's share of customer wallets continues to increase. Our locations get better every day through operational excellence and investments. After our superb quarter with 20 plus percent EBITDA growth and strong cash flow conversion, let me elaborate on our secret sauce. Almost 28 years ago, I found this company focusing on superior returns. We underwrite all decisions for relative financial returns and steadily focus on the highest returns. Since inception, I have focused the team on what generates the most significant impact on the business. From M&A decisions to capital investments to using data to drive labor pricing and supplier decisions, the team has held accountable for results in cash flow. As we grow, the results speak for themselves, and our ability to deploy capital and utilize data-driven processes is accelerating. The current macro environment has provided increasing opportunities to deploy capital beyond bowling. This spring, we acquired Raging Waves, the largest water park in Illinois, for $49 million, which included 52 acres of land. Through our early efforts, the business had double-digit revenue growth and will have $8 million of EBITDA in its first year under our ownership. At six times EBITDA, this deal is already a home run, and we have opportunities to expand the park and, if we choose so, monetize the land. Last month, we acquired Boomers, an underappreciated business with six family entertainment locations and two water parks. Within the first few weeks, we had begun shuttering unprofitable parts of the portfolio and introducing our labor model. We bought that business with $9 million of four wall EBITDA and expect meaningful upside in the short term from operations and longer term once we deploy capital. Today, we close on the acquisition of Spectrum Entertainment Complex in Grand Rapids, Michigan. This asset has revenues significantly above our center average and will be our sixth location in Michigan as we continue to drive scale. The market for M&A is the most opportunistic we have ever seen, and we look forward to continuing to deploy capital accretively, bringing attractive locations with significant upside into our portfolio. In October, we opened two Lucky Strike locations in Denver. In the coming months, Lucky Strike Beverly Hills will open as the first bowling alley in Beverly Hills in nearly a century. and it will be followed by Lucky Strike Ladera Ranch in Orange County, California, which will have 42 lanes and a very attractive demographic. Our new build pipeline is very robust for the next few years. Our focus is a balance of internal optimization and high return capital deployment. To discuss recent organic performance in our internal initiatives, let me hand it over to the company's president, Lev Ekster.