Bowlero Corp. filed SEC Form 8-K: Results of Operations and Financial Condition, Financial Statements and Exhibits, Regulation FD Disclosure
$BOWL
Services-Misc. Amusement & Recreation
Consumer Discretionary
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
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CURRENT REPORT
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Item 2.02 - Results of Operations and Financial Condition
On November 4, 2024, Bowlero Corp. (the “Company”) issued a press release announcing its preliminary financial results for the first quarter of fiscal year 2025, which ended on September 29, 2024. A copy of the Company’s press release is being furnished herewith as Exhibit 99.1.
The information furnished with this Item 2.02 (including the preliminary financial results and related information included in Exhibit 99.1 referenced under Item 9.01 below) of this Current Report on Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any other filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 7.01 - Regulation FD Disclosure
The Company will host a webcast on November 4, 2024 at 4:30 p.m. Eastern Time to review its results for the first quarter of fiscal year 2025, which ended on September 29, 2024.
The presentation to be used for the webcast, any future investor presentations or updates thereto will be available on the Company’s website at https://ir.bowlerocorp.com/overview/default.aspx. These presentations will be accessible by the public on such website for a limited period of time.
Change in Consolidated Statements of Operations Presentation
In the first quarter of fiscal year 2025, the Company made a change to its consolidated statements of operations presentation in order to enhance our disclosures by disaggregating previously combined revenues and costs of revenues, reclassifying depreciation and amortization to be a separate financial statement line item, and reclassifying certain amounts to selling, general, and administrative expenses. The change in presentation will enhance the comparability of our financial statements with industry peers and present a more detailed picture of our operations.
The financial results for the preceding two fiscal years and corresponding eight fiscal quarters presented below have been updated to conform with the change in consolidated statements of operations presentation. The reclassifications to conform certain prior period amounts had no impact to revenue, income (loss) from operations, net income (loss), earnings (loss) per share, retained earnings or other components of equity or net assets for any of the periods presented below.
| Unaudited | ||||||||||||||||||||||||||||||||
| Three Months Ended | Fiscal Year Ended | |||||||||||||||||||||||||||||||
| October 1, 2023 | December 31, 2023 | March 31, 2024 | June 30, 2024 | June 30, 2024 | ||||||||||||||||||||||||||||
| Revenues | ||||||||||||||||||||||||||||||||
| Bowling | $ | 116,430 | $ | 145,295 | $ | 165,528 | $ | 130,709 | $ | 557,962 | ||||||||||||||||||||||
| Food & beverage | 74,913 | 111,192 | 118,032 | 97,246 | 401,383 | |||||||||||||||||||||||||||
| Amusement & other | 36,062 | 49,184 | 54,110 | 55,913 | 195,269 | |||||||||||||||||||||||||||
| Total revenues | 227,405 | 305,671 | 337,670 | 283,868 | 1,154,614 | |||||||||||||||||||||||||||
| Costs and expenses | ||||||||||||||||||||||||||||||||
| Location operating costs, excluding depreciation and amortization | 73,373 | 78,837 | 86,766 | 89,575 | 328,551 | |||||||||||||||||||||||||||
| Location payroll and benefit costs | 63,054 | 77,742 | 78,645 | 67,765 | 287,206 | |||||||||||||||||||||||||||
| Location food and beverage costs | 16,685 | 23,920 | 27,178 | 22,969 | 90,752 | |||||||||||||||||||||||||||
| Selling, general and administrative expenses, excluding depreciation and amortization | 38,124 | 35,835 | 37,121 | 36,927 | 148,007 | |||||||||||||||||||||||||||
| Depreciation and amortization | 31,352 | 37,071 | 36,327 | 40,614 | 145,364 | |||||||||||||||||||||||||||
| (Gain) loss on impairment and disposal of fixed assets, net | (1) | 50 | 1,011 | 60,373 | 61,433 | |||||||||||||||||||||||||||
| Other operating (income) expense | (538) | 2,739 | (390) | (100) | 1,711 | |||||||||||||||||||||||||||
| Total costs and expenses | 222,049 | 256,194 | 266,658 | 318,123 | 1,063,024 | |||||||||||||||||||||||||||
| Operating income (loss) | 5,356 | 49,477 | 71,012 | (34,255) | 91,590 | |||||||||||||||||||||||||||
| Other (income) expenses | ||||||||||||||||||||||||||||||||
| Interest expense, net | 37,449 | 46,236 | 46,890 | 47,036 | 177,611 | |||||||||||||||||||||||||||
| Change in fair value of earnout liability | (40,682) | 64,091 | (8,868) | 10,915 | 25,456 | |||||||||||||||||||||||||||
| Other expense | 53 | 10 | 3 | 10 | 76 | |||||||||||||||||||||||||||
| Total other (income) expense | (3,180) | 110,337 | 38,025 | 57,961 | 203,143 | |||||||||||||||||||||||||||
| Income (loss) before income tax (benefit) expense | 8,536 | (60,860) | 32,987 | (92,216) | (111,553) | |||||||||||||||||||||||||||
| Income tax (benefit) expense | (9,683) | 2,609 | 9,141 | (30,039) | (27,972) | |||||||||||||||||||||||||||
| Net income (loss) | $ | 18,219 | $ | (63,469) | $ | 23,846 | $ | (62,177) | $ | (83,581) | ||||||||||||||||||||||
| Unaudited | ||||||||||||||||||||||||||||||||
| Three Months Ended | Fiscal Year Ended | |||||||||||||||||||||||||||||||
| October 2, 2022 | January 1, 2023 | April 2, 2023 | July 2, 2023 | July 2, 2023 | ||||||||||||||||||||||||||||
| Revenues | ||||||||||||||||||||||||||||||||
| Bowling | $ | 115,327 | $ | 131,426 | $ | 154,960 | $ | 116,715 | $ | 518,428 | ||||||||||||||||||||||
| Food & beverage | 79,023 | 100,657 | 111,708 | 81,219 | 372,607 | |||||||||||||||||||||||||||
| Amusement & other | 35,910 | 41,302 | 49,057 | 41,486 | 167,755 | |||||||||||||||||||||||||||
| Total revenues | 230,260 | 273,385 | 315,725 | 239,420 | 1,058,790 | |||||||||||||||||||||||||||
| Costs and expenses | ||||||||||||||||||||||||||||||||
| Location operating costs, excluding depreciation and amortization | 62,796 | 65,088 | 65,236 | 75,365 | 268,485 | |||||||||||||||||||||||||||
| Location payroll and benefit costs | 59,812 | 65,229 | 71,736 | 65,550 | 262,327 | |||||||||||||||||||||||||||
| Location food and beverage costs | 18,215 | 21,720 | 24,618 | 18,492 | 83,045 | |||||||||||||||||||||||||||
| Selling, general and administrative expenses, excluding depreciation and amortization | 32,296 | 34,102 | 35,306 | 35,579 | 137,283 | |||||||||||||||||||||||||||
| Depreciation and amortization | 26,267 | 29,303 | 29,444 | 24,391 | 109,405 | |||||||||||||||||||||||||||
| (Gain) loss on impairment and disposal of fixed assets, net | (71) | (1,823) | 297 | 958 | (639) | |||||||||||||||||||||||||||
| Other operating (income) expense | (328) | (670) | (496) | (422) | (1,916) | |||||||||||||||||||||||||||
| Total costs and expenses | 198,987 | 212,949 | 226,141 | 219,913 | 857,990 | |||||||||||||||||||||||||||
| Operating income (loss) | 31,273 | 60,436 | 89,584 | 19,507 | 200,800 | |||||||||||||||||||||||||||
| Other (income) expenses | ||||||||||||||||||||||||||||||||
| Interest expense, net | 23,570 | 27,379 | 29,117 | 30,785 | 110,851 | |||||||||||||||||||||||||||
| Change in fair value of earnout liability | 40,760 | 30,776 | 87,222 | (73,406) | 85,352 | |||||||||||||||||||||||||||
| Other expense | 48 | (678) | 5,986 | 1,436 | 6,792 | |||||||||||||||||||||||||||
| Total other (income) expense | 64,378 | 57,477 | 122,325 | (41,185) | 202,995 | |||||||||||||||||||||||||||
| Income (loss) before income tax (benefit) expense | (33,105) | 2,959 | (32,741) | 60,692 | (2,195) | |||||||||||||||||||||||||||
| Income tax (benefit) expense | 429 | 1,524 | (668) | (85,528) | (84,243) | |||||||||||||||||||||||||||
| Net income (loss) | $ | (33,534) | $ | 1,435 | $ | (32,073) | $ | 146,220 | $ | 82,048 | ||||||||||||||||||||||
The information referenced under Item 7.01 of this Current Report on Form 8-K is being “furnished” under “Item 7.01. Regulation FD Disclosure” and, as such, shall not be deemed to be “filed” for the purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section, nor shall the information be deemed incorporated by reference in any filings under the Securities Act or the Exchange Act.
Item 9.01 - Financial Statements and Exhibits
(d) Exhibits:
| Exhibit No. | Description | |||||||
| 99.1 | ||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: November 4, 2024 | By: | /s/ Robert M. Lavan | ||||||
Name: | Robert M. Lavan | |||||||
Title: | Chief Financial Officer | |||||||