Bowlero Corp. (NYSE:BOWL) Q1 2023 Earnings Call Transcript

Thomas Shannon: I don’t think there’s been any change in that. But I will say that the acquisitions we’ve done year-to-date have been extremely good acquisitions. So Strikes at Rocklin in California, a center doing $6 million as an independent, which is an extremely high number for an independent. We just closed on the Mark in Omaha yesterday. You might have see in the press release or on Monday, I guess. Again, another center and independent doing $6 million. We think those centers have potential under our ownership to get to $8 million or $9 million. And when you’re at those levels, they’re extremely profitable. We also acquired Mel’s Lone Star Lanes in Georgetown, outside of Austin, Texas, the Alley in Wichita. So not just a lot of deal activity, but a lot of really high quality deal activity, which is great.

And then the rest of the centers are all very good, quite good. But this last couple of months was unusual in that we did so many deals of really, really high quality centers. I would say that the outlook going forward is about the same. And we have a very robust pipeline. We have five leases signed for new builds construction will start in after the first of the year, and these centers will probably average, I would guess, $7 million to $8 million so far, far higher than our fleet average. So it’s a combination of deal volume, but also deal quality and the deal quality keeps going up. But just to answer your question the most simple form, we haven’t really seen any change in the volume, the volume remains really good. I think the volume is driven more by the demographics of the sellers.

You have an elderly independent proprietor base. And thus far, we’re really the only acquirers of any scale.

Michael Kupinski : Right. Thanks for all the color. Appreciate that.

Thomas Shannon: Sure. My pleasure.

Operator: Thank you. There are no further questions at this time, I’d like to turn the floor back over to management for any closing comments.

Brett Parker : I think this is Brett Parker. I would just thank everybody for joining and giving us the opportunity to share our thoughts on what was a really robust performance in this quarter. And we look forward to talking again in a few months.

Operator: This concludes today’s conference. You may disconnect your lines at this time. Thank you for your participation.