So we’re feeling pretty good about the business. But the fourth quarter make or break is in December. So we’re not going to get ahead of ourselves, but we feel pretty confident in flattish at this point.
Randy Konik: Basically, back on capital allocation, can you just remind us how much you have left, I might have missed it, on share repurchase authorization? You were nicely aggressive in the quarter. Stock is where it is, is very cheap. Just kind of get some flavor of how you’re balancing or thinking about share repurchase versus capital towards M&A and builds. And then back on M&A, what’s changing from the price desired by operators or owners of bowling alleys out there, centers? Is anything changing where prices are coming down? Just anything that would be around the flavor of M&A would be super helpful.
Thomas Shannon: We’ve got $90 million left on the authorization, but our board is willing to meet to kind of re-up that as needed. At these levels, we’ll continue to buy our stock. We’ve been pretty transparent with the market, like when these new builds turn on, it’s a significant change. And then you’ve got Lucky. Lucky isn’t in the 1Q numbers and Lucky will slowly come into 2Q numbers. But we’re investing $30 million into Lucky. We’re putting string machines in Boston in November, which changes the dynamic significantly. So the market is really not – is very focused on my short-term comp and not really focused on sort of what I would call the very strong inorganic growth that we’re doing, whether it’s Lucky, whether it’s Mavrix and Octane, whether it’s the four new builds that come into play this year, but then where are the new builds when we get to FY 2025, and we’re guiding FY 2025, like how much strength are we going to get from these new builds.
We’re taking advantage of the market being so focused on the short-term comp and not being focused on what these new builds, the M&A, the M&A synergies – oh, and by the way, when we refill our SLB pipeline, and we just do it again. So we’ll continue buying back our stock at these levels because we do feel like we’re dramatically undervalued.
Randy Konik: And just on the M&A prices commanded, what are the bowling center proprietors kind of – are there changes in price? Are they coming down in price to make things even more attractive? Just curious what you’re seeing there.
Bobby Lavan: Things are getting better. I think the multiple on Lucky everybody focused on, but that is coming down. And we’ve done a few acquisitions recently at much better multiples.
Thomas Shannon: Well, I think people didn’t really understand our math on the Lucky multiple. So they looked at consolidated trailing earnings at Lucky Strike of being somewhere in the 11s. We looked at it as more like $18 million of EBITDA at the center level that would need very, very little incremental overhead spend from us. So somewhere in the $16 million to $17 million range with upside potentially to $30 million of EBITDA. So by our math, looking forward, we paid $90 million. We anticipated investing another $30 million, so you’re in it for $120 million, and we think it can get to $30 million of EBITDA. So on a forward basis, we figured we were paying about 4x. The market thought we were paying closer to 8 or 9x. There was a pretty big disconnect there.
We’re right, market is wrong. That’s okay. But as Bobby said, people really aren’t figuring out or understanding how much incremental revenue and profit is coming from the 14 Lucky Strikes, Mavrix and Octane, which we’re doing almost $20 million of revenue when we bought a very profitable asset in Scottsdale, all the newbuilds coming online and then the other independents we bought. We bought two centers in Michigan. We’re about to close on another. We bought a property that was a joint venture outside of Chicago. So there’s been a lot of incremental properties added, which will result in significant incremental revenue and EBITDA. And as Bobby said, I think the market was really focused on our least important quarter on a comp basis. And we did $52 million of EBITDA compared to – it was more than double what we had done in 2019, down from peak, but last year was just an epic year.
So, we’re very, very bullish about this business going forward, and it’s been reflected in the amount of stock we bought back.
Operator: Our next question comes from Steven Wieczynski with Stifel.
Steven Wieczynski: I want to ask about the in-center spending and maybe how that trended through the quarter or maybe, better yet, how that has trended recently? I’m just trying to get a sense of attachment rates as folks come in your properties, meaning as they come in, have you seen guest spend be pretty resilient? Have you seen any changes in the detachment rates? Are they coming in to bowl, but you’ve seen them pull back in food or beverage or amusements? Any changes there would be helpful.
Bobby Lavan: I think Friday, Saturday, we’ve seen no change. Again, the midweek, we saw detachment on food. We saw the detachment on amusements. Amusements is probably the best proxy as sort of a traffic. Traffic in amusements was down the worst, but we think that that will reverse course when we get back into the colder second quarter, third quarter, and ultimately, there is a weight and then people will play more arcade. So I think that we’re pretty happy with the food attachment because food, we’ve been trying out a lot of different new programs, pizza and pitchers, things like that, because over the past few years, we’ve been very focused on percent margin and now we’re focused on margin dollars because you need margin dollars. And so, we’re pretty happy with the results there. I think the only place that we’ve seen a little bit of detachment on would be more on the amusement side.
