Lucky Strike Entertainment Corporation Class A

Thank you for standing by. My name is Leslie, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Lucky Strike Entertainment third quarter 2025 earnings conference call. All lines have been placed and muted 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. We ask that you please limit yourself to one question and one follow-up. Thank you. I would now like to turn the call over to Bobby Levin. Please go ahead.

Good morning to everyone on the call. This is Bobby Levin, Lucky Strikes Chief Financial Officer. Welcome to our conference call to discuss Lucky Strikes third quarter 2025 earnings. Today, we issued a press release announcing our financial results for the period ended March 30th, 2025. 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, and Lev Exer, our president. I'd like to remind you that during today's conference call, we 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 the inherent risks and uncertainties that could cause actual results to differ materially from those expressed. For additional information concerning factors that could cause actual results to differ from those discussed in our forward-looking statements, you should refer to cautionary statements contained in our press release, as well as the risk factors contained in the company's filings with the SEC. Lucky Strike Entertainment undertakes no obligation to revise or update any forelooking statements to reflect events or circumstances that could 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 those differences between each non-GAAP financial measure and the comparable GAAP financial measure can be found on the company's website. I'll now turn the call over to Tom.

Good morning. I am Thomas Shannon, founder, chairman, and CEO of Lucky Strike Entertainment. Last quarter, we spoke about the resilience that defines our team and our brands, how we navigate volatility with focus and versatility. This past quarter, that same turbulence persisted, but so did our momentum. In fact, we've been actively calibrating our business to not just withstand the uncertainty, but to thrive in it. Our total revenue rose 0.7% for the quarter, a modest increase that masks meaningful gains in our retail, online, and league segments. While layoffs and corporate austerity, particularly in the tech sector, have impacted our offline, mostly corporate business on the West Coast, we see this as a transitory headwind. We've felt this since summer, but brighter skies are ahead. As we lap those declines in the coming months, we expect the picture to shift. Meanwhile, we are filling available lane capacity by growing our leagues business, which is already up low single digits and continues a multi-year growth trajectory. The league business is sticky, high frequency, loyal, and managed correctly, high margin. Corporate events have been hit by macro uncertainty, but we're already seeing signs of rebounds. Our Boston, Miami, and New Jersey sales groups all comped positive in April, and several more sales groups were close to flat. And with sales driving initiatives coming online ahead of our peak season in September, we're positioned for a strong comeback. In Southern California, the lingering impact of January's devastating fires continues to weigh on our business there. More broadly, Layoffs and corporate caution have created headwinds since summer 2024. But here's what's changing. Consumers are turning towards local, high-value entertainment. As their travel softens, we're ideally positioned to meet demand for convenient and memorable out-of-home experiences. In a clear indication of that, early sales of our summer season passes are already up 200-plus percent year over year. That tells us where the consumer mindset is and it's encouraging. For the first time, we're entering summer with large water parks in Destin and Panama City Beach, Florida, our flagship 54-acre Raging Waves Water Park in Illinois, six Boomers-branded parks in California and Boca Raton, Florida, and our newest family entertainment center, Adventure Park in Visalia, California. Whether it rains or shines, we are becoming more hedged to the climate. Lucky Strike is on track to deliver positive growth this fiscal year, continuing our remarkable streak of consistent revenue gains over the last 12 years. Alongside that growth, our team has adeptly adjusted our cost structure to increase operating leverage. Despite some lumpiness, we've delivered 4% to 5% average annualized same-store sales growth since 2013. Our new builds or properties launched between September and December of 2024 are exceeding expectations, delivering nearly $8 million in revenue and $4 million in EBITDA. These results prove the power of our model and the strength of our team's execution. As we invest in our water parks, family entertainment centers, and upgraded bowling experiences, we expect to not only maintain our industry-leading performance, but to accelerate it. With that, I'll hand it over to Lucky Strike's president, Lev Ekster, to walk you through the exciting organic initiatives ahead.