Shares of bowling center operator Bowlero Corp. traded 7.5% higher and rolled to a new 52-week high after the company reported Q4/22 and FY/22 financial results that included a 130.7% YoY increase in annual revenue.
After US markets closed for trading yesterday, global media and bowling entertainment company Bowlero Corp. (BOWL:NYSE)which operates close to 320 bowling alleys making it the largest owner and operator of bowling centers in the world, announced financial results for the fourth quarter and full year of 2022 ended July 3, 2022.
The company added that for FY/22, total revenue increased by 130.7% to $911.7 million, compared to $395.2 million during FY/21.
The company stated that revenue during Q4/22 increased by 68.3% to $267.7 million, compared to $159.1 million in Q4/21. Bowlero advised that it attributed the gains in the quarter to strong continued growth in walk-in retail traffic and significantly higher revenues earned from hosting events.
The company pointed out that due to the firm’s financial reporting calendar, the Q4/22 and FY/22 results both included one extra week of data versus the results posted in Q4/21 and FY/21. Specifically, the company stated that Q4/22 was 14 weeks long and FY/22 was 53 weeks long and advised that during the extra (53rd) week, it market total revenue of $14.9 million.
Bowlero Corp.’s Founder and CEO Thomas Shannon commented, “We are very pleased with our performance in the fourth quarter and during the fiscal year 2022. We achieved world-class results in our first year as a public company while simultaneously laying important groundwork for sustained growth.”
The firm noted that after making an adjustment for the extra week, revenue in Q4/22 increased by 58.9% on a year-over-year basis to $252.8 million.
The company added that for FY/22, total revenue increased by 130.7% to $911.7 million, compared to $395.2 million during FY/21. The firm stated that after adjusting for the extra week, comparative revenues for FY/22 were $896.8 million, which represented a 126.9% increase over FY/21 and came in 29.2% above pre-pandemic levels.
Bowlero stated that for Q4/22, it registered a net income of $6.9 million versus a net loss of $13.5 million in Q4/21. The firm indicated that adjusted EBITDA in Q4/22 grew by 94.8% to $82.4 million, up from $42.3 million in Q4/21.
For FY/22, the company posted a net loss of $29.9 million, compared to a net loss of $126.5 million in FY/21. The firm explained that much of the recorded losses of FY/22 resulted from expenses related to its “successful de-SPAC transaction.” The company advised that excluding those expenses, net income in FY/22 was $97.6 million.
The company’s President and CFO, Brett Parker, stated, “We continue to see very strong demand in our bowling centers, which is driving significant same-store sales growth relative to both prior year and pre-pandemic levels … Additionally, the new units are accelerating our growth rates, as we opened four new locations during the quarter. Even more impressive, adjusted EBITDA margin expanded over 1,000 basis points relative to pre-pandemic levels, demonstrating the inherent operating leverage that exists in the business and management’s strong focus on maximizing profitability despite well-documented macro cost pressures.”
The company advised that during Q4/22, it repurchased approximately 3.3 million shares of its Class A common stock and, in addition, in May 2022, retired all outstanding publicly traded and privately held warrants.
The firm indicated that during FY/22, it added 29 new bowling centers, including four new centers added in Q4/22, bringing the total centers in operation as of July 3, 2022, to 317.
So far in Q1/23, the company reported that it has already added one additional center and has signed definitive agreements to buy another eight new centers.
Bowlero Corp. is a global media company and the largest owner and operator of bowling centers in the world. The company is headquartered in Richmond, Va. and operates 318 bowling centers in the US, Canada, and Mexico that together offer over 12,000 lanes.
The company listed that it serves over 26 million guests annually under its Bowlero and AMF brand names and stated that “it is also home to the Professional Bowlers Association (PBA).”
Bowlero Corp. started the day with a market cap of around $2.12 billion, with approximately 110.12 million shares outstanding. BOWL shares opened 2% higher today at $12.75 (+$0.26, +2.08%) above yesterday’s $12.49 closing price and reached a new 52-week high price this morning of $13.80. The stock traded today between $12.29 and $13.80 per share and closed for currently trading at $13.43 (+$0.94, +7.53%).
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