Bowlero Announces 20th Center Acquisition in Fiscal 2024, Opens New California Lucky Strike and Share Repurchase Update

Rhea-AI Summary

Bowlero Corporation (NYSE: BOWL) announced the acquisition of Ten Pin in Hilliard, Ohio, marking its 20th center acquisition in fiscal 2024. The company also completed acquisitions of Niles Bowling center in Niles, IL and BAM! Entertainment Center in Holland, MI. Total investment in acquisitions for FY 2024, including 14 Lucky Strike centers, is $145.9 million. Bowlero Corp. opened Lucky Strike Moorpark, its first new build using the Lucky Strike brand, in Moorpark, CA. The company also provided an update on its ongoing share repurchase program, having repurchased approximately 19.6 million shares of its common stock since the IPO. Bowlero Corp. anticipates further growth and expansion in the coming year.

Positive

• Acquisition of Ten Pin in Hilliard, Ohio, marks the 20th center acquisition in fiscal 2024
• Total investment in acquisitions for FY 2024, including 14 Lucky Strike centers, is $145.9 million
• Repurchased approximately 19.6 million shares of its common stock since the IPO
• Anticipates further growth and expansion in the coming year

Negative

• None.

Market Research Analyst

The acquisition of 20 centers, including the recent addition of Ten Pin in Ohio, signifies Bowlero Corporation's aggressive expansion strategy. This move consolidates their market dominance in the bowling entertainment sector. The investment of $145.9 million in fiscal 2024 for acquisitions indicates a substantial capital allocation towards growth through mergers and acquisitions (M&A). The opening of Lucky Strike Moorpark represents not only geographic expansion but also the leveraging of brand equity post-acquisition. This strategic growth is likely to enhance Bowlero's competitive edge and could potentially increase market share.

From a market research perspective, the expansion into prime markets could cater to an increasing demand for leisure and entertainment post-pandemic. However, the long-term success of these acquisitions will depend on Bowlero's ability to integrate these new centers and maintain operational efficiency. The focus on premium experiences may also attract a more affluent customer base, contributing to higher revenue per customer.

Financial Analyst

Bowlero Corp's aggressive share repurchase program, with approximately 19.6 million shares bought back in the first half of fiscal 2024, reflects a strong commitment to shareholder value. The repurchase of $432 million worth of shares and warrants, reducing the common stock outstanding by about 20%, is a clear signal of management's confidence in the company's intrinsic value. This could be interpreted as a positive indicator by the market, potentially leading to an increase in the stock price due to the reduced share supply and increased earnings per share (EPS).

However, investors should monitor whether these buybacks are being financed through cash flows from operations or through debt, as the latter could increase financial leverage and risk. It is also essential to analyze the opportunity cost of the buybacks versus potential investments in new projects or further acquisitions. The continuation of this program will depend on market conditions and should be viewed in the context of the company's overall capital allocation strategy.

Economist

The strategic expansion of Bowlero Corp, particularly in the context of the current economic climate, suggests a bullish outlook on the leisure industry's recovery and growth. The company's investment in acquisitions and new builds, as well as its share repurchase program, could be seen as a response to the broader economic trends of increasing consumer spending in the entertainment sector. The focus on strategic acquisitions indicates an expectation of sustained demand and a potential increase in discretionary spending as the economy recovers.

However, it's critical to consider the broader macroeconomic factors such as interest rates, inflation and consumer confidence, which can influence discretionary spending. An economic downturn could affect Bowlero's growth trajectory and the performance of its new acquisitions. The company's ability to navigate these economic headwinds and maintain profitability will be crucial for long-term success.

RICHMOND, Va.--(BUSINESS WIRE)-- Bowlero Corporation (NYSE: BOWL), the global leader in bowling entertainment, announced today the signing of Ten Pin in Hilliard, Ohio, the company's 20th center acquisition in fiscal 2024. During the second quarter of fiscal 2024, Bowlero Corp. completed the acquisitions of Niles Bowling center in Niles, IL and BAM! Entertainment Center in Holland, MI. The total FY 2024 investment in acquisitions thus far, including the 14 Lucky Strike centers is $145.9 million.

Bowlero Corp. opened Lucky Strike Moorpark in Moorpark, CA, northwest of Los Angeles, in December. This is Bowlero’s first new build using the Lucky Strike brand since it was acquired in September. Lucky Strike Moorpark, a 43,000 sq. ft. entertainment center in Ventura County, features 40 bowling lanes, an arcade with over 80 games, and a spectacular sports bar. This is Bowlero Corp.'s 52nd center in California and the fifth Lucky Strike branded center in the state.

"These strategic acquisitions and the opening of Lucky Strike in Moorpark underscore our commitment to expanding our presence and enhancing the bowling entertainment experience across prime markets,” stated Thomas Shannon, Founder, Chairman and CEO of Bowlero Corp. “We look forward to continuing the expansion of the iconic Lucky Strike brand, leveraging its established brand equity, and delivering premium experiences to a broad audience."

The company provided an update on its ongoing share repurchase program. Bowlero repurchased approximately 7.5 million shares of its common stock in the second quarter of fiscal 2024, totaling an aggregate purchase price of approximately $80 million. In the first quarter of FY 2024, the company repurchased approximately 12.1 million shares for approximately $131 million, bringing total share repurchases in the first half of fiscal 2024 to approximately 19.6 million. Since Bowlero’s IPO, the company has spent approximately $432 million retiring all SPAC-related warrants, 31.0 million shares of common stock and 4.9 million as-converted preferred shares, reducing common stock outstanding by approximately 20%. Bowlero Corp. anticipates continuing its share repurchase program through the balance of fiscal 2024 and beyond, subject to market and other conditions.

Bowlero Corp. is positioned for continued growth, with a focus on strategic acquisitions, innovative developments, and shareholder value creation. The company anticipates further growth and expansion in the coming year.

About Bowlero Corp

Bowlero is the global leader in bowling entertainment. With approximately 350 bowling centers across North America, Bowlero serves more than 40 million guest visits annually through a family of brands that include Bowlero, Lucky Strike and AMF. In 2019, Bowlero acquired the Professional Bowlers Association, the major league of bowling, which boasts thousands of members and millions of fans across the globe. For more information on Bowlero, please visit BowleroCorp.com.

Forward Looking Statements

Some of the statements contained in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve risk, assumptions and uncertainties, such as statements of our plans, objectives, expectations, intentions and forecasts. These forward-looking statements are generally identified by the use of forward-looking terminology, including the terms "anticipate," "believe," “confident,” “continue,” "could," "estimate," "expect," "intend," “likely,” "may," "plan," “possible,” "potential," "predict," "project," "should," "target," "will," "would" and, in each case, their negative or other various or comparable terminology. These forward-looking statements reflect our views with respect to future events as of the date of this release and are based on our management’s current expectations, estimates, forecasts, projections, assumptions, beliefs and information. Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. All such forward-looking statements are subject to risks and uncertainties, many of which are outside of our control, and could cause future events or results to be materially different from those stated or implied in this document. It is not possible to predict or identify all such risks. These risks include, but are not limited to: our ability to design and execute our business strategy; changes in consumer preferences and buying patterns; our ability to compete in our markets; the occurrence of unfavorable publicity; risks associated with long-term non-cancellable leases for our centers; our ability to retain key managers; risks associated with our substantial indebtedness and limitations on future sources of liquidity; our ability to carry out our expansion plans; our ability to successfully defend litigation brought against us; our ability to adequately obtain, maintain, protect and enforce our intellectual property and proprietary rights and claims of intellectual property and proprietary right infringement, misappropriation or other violation by competitors and third parties; failure to hire and retain qualified employees and personnel; the cost and availability of commodities and other products we need to operate our business; cybersecurity breaches, cyber-attacks and other interruptions to our and our third-party service providers’ technological and physical infrastructures; catastrophic events, including war, terrorism and other conflicts; public health emergencies and pandemics, such as the COVID-19 pandemic, or natural catastrophes and accidents; changes in the regulatory atmosphere and related private sector initiatives; fluctuations in our operating results; economic conditions, including the impact of increasing interest rates, inflation and recession; and other factors described under the section titled “Risk Factors” in the Company's Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the “SEC”) by the Company on September 11, 2023, 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. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this press release and in other filings. We expressly disclaim 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240116126886/en/

For Media:

PR@BowleroCorp.com

Source: Bowlero Corp

FAQ

How many centers has Bowlero Corporation acquired in fiscal 2024?

Bowlero Corporation has acquired 20 centers in fiscal 2024, including Ten Pin in Hilliard, Ohio, Niles Bowling center in Niles, IL, and BAM! Entertainment Center in Holland, MI.

What is the total investment in acquisitions for FY 2024, including Lucky Strike centers?

The total investment in acquisitions for FY 2024, including 14 Lucky Strike centers, is $145.9 million.

How many shares of its common stock has Bowlero Corporation repurchased since the IPO?

Bowlero Corporation has repurchased approximately 19.6 million shares of its common stock since the IPO.

What are Bowlero Corporation's plans for growth and expansion in the coming year?

Bowlero Corporation anticipates further growth and expansion in the coming year, with a focus on strategic acquisitions, innovative developments, and shareholder value creation.