Prospectus Supplement No. 4 (to prospectus dated February 1, 2022) | Filed pursuant to Rule 424(b)(3) Registration No. 333-262179 |
Bowlero Corp.
216,956,397 Shares of Class A Common Stock
7,296,793 Warrants
7,296,793 Shares of Class A Common Stock Issuable upon Exercise of Warrants
This prospectus supplement is being filed to update and supplement the information contained in the prospectus dated February 1, 2022 (the “Prospectus”), related to: (1) the offer and sale, from time to time, by the selling securityholders identified in the Prospectus, or their permitted transferees, of (i) up to 216,956,397 shares of Class A common stock, par value $0.0001 (the “Class A Common Stock”) and (ii) 7,296,793 warrants to purchase shares of Class A Common Stock (“warrants”), and (2) the issuance by us and the resale by certain of the selling securityholders of up to 7,296,793 shares of Class A Common Stock upon the exercise of outstanding warrants, with the information contained in our Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission (“SEC”) on May 11, 2022 (the “Quarterly Report”). Accordingly, we have attached the Quarterly Report to this prospectus supplement.
This prospectus supplement updates and supplements the information in the Prospectus and is not complete without, and may not be delivered or utilized except in combination with, the Prospectus, including any amendments or supplements thereto. This prospectus supplement should be read in conjunction with the Prospectus and if there is any inconsistency between the information in the Prospectus and this prospectus supplement, you should rely on the information in this prospectus supplement.
Our Class A Common Stock is listed on the New York Stock Exchange (the “NYSE”) under the symbol “BOWL” and our warrants are listed on the NYSE under the symbol “BOWL.WS.” On May 10, 2022, the closing sale price per share of our Class A Common Stock was $8.59 and of our warrants was $2.50.
Investing in our securities involves risks. See “Risk Factors” beginning on page 6 of the Prospectus and in any applicable prospectus supplement.
Neither the SEC nor any state securities commission has approved or disapproved of these securities or passed upon the adequacy or accuracy of the Prospectus or this prospectus supplement. Any representation to the contrary is a criminal offense.
The date of this prospectus supplement is May 11, 2022.
Delaware | 98-1632024 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Class A common stock, par value $0.0001 per share | BOWL | The New York Stock Exchange | ||||||||||||
Redeemable Warrants, each whole warrant exercisable for one share of Class A common stock at an exercise price of $11.50 | BOWL WS | The New York Stock Exchange |
☐ | Large accelerated filer | ☐ | Accelerated filer | ||||||||
☒ | Non-accelerated filer | ☐ | Smaller reporting company | ||||||||
☒ | Emerging growth company |
Page | ||||||||
March 27, 2022 | June 27, 2021 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 172,977 | $ | 187,093 | |||||||
Accounts and notes receivable, net of allowance for doubtful accounts of $327 and $204, respectively | 4,409 | 3,300 | |||||||||
Inventories, net | 10,056 | 8,310 | |||||||||
Prepaid expenses and other current assets | 11,668 | 8,056 | |||||||||
Assets held-for-sale | 14,506 | 686 | |||||||||
Total current assets | 213,616 | 207,445 | |||||||||
Property and equipment, net | 512,343 | 415,661 | |||||||||
Internal use software, net | 10,251 | 9,062 | |||||||||
Property and equipment under capital leases, net | 260,632 | 284,077 | |||||||||
Intangible assets, net | 93,192 | 96,057 | |||||||||
Goodwill | 738,787 | 726,156 | |||||||||
Investment in joint venture | 1,250 | 1,230 | |||||||||
Other assets | 41,491 | 42,550 | |||||||||
Total assets | $ | 1,871,562 | $ | 1,782,238 | |||||||
Liabilities, Temporary Equity and Stockholders’ Deficit | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 29,267 | $ | 29,489 | |||||||
Accrued expenses | 80,113 | 63,650 | |||||||||
Current maturities of long-term debt | 4,944 | 5,058 | |||||||||
Other current liabilities | 6,876 | 9,176 | |||||||||
Total current liabilities | 121,200 | 107,373 | |||||||||
Long-term debt, net | 868,370 | 870,528 | |||||||||
Long-term obligations under capital leases | 394,708 | 374,598 | |||||||||
Earnout liability | 204,416 | — | |||||||||
Warrant liability | 37,952 | — | |||||||||
Other long-term liabilities | 56,991 | 87,749 | |||||||||
Deferred income tax liabilities | 14,346 | 11,867 | |||||||||
Total liabilities | 1,697,983 | 1,452,115 | |||||||||
Temporary Equity | |||||||||||
Series A preferred stock - Old Bowlero | — | 141,162 |
Series A preferred stock | 200,489 | — | |||||||||
Redeemable Class A common stock - Old Bowlero | — | 464,827 | |||||||||
Stockholders’ deficit: | |||||||||||
Class A common stock | 11 | 10 | |||||||||
Class B common stock | 6 | — | |||||||||
Additional paid-in capital | 296,790 | — | |||||||||
Treasury stock, at cost | (1,026) | — | |||||||||
Accumulated deficit | (319,794) | (266,472) | |||||||||
Accumulated other comprehensive loss | (2,897) | (9,404) | |||||||||
Total stockholders’ deficit | (26,910) | (275,866) | |||||||||
Total liabilities, temporary equity and stockholders’ deficit | $ | 1,871,562 | $ | 1,782,238 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
March 27, 2022 | March 28, 2021 | March 27, 2022 | March 28, 2021 | ||||||||||||||||||||
Revenues | $ | 257,820 | $ | 112,212 | $ | 643,988 | $ | 236,131 | |||||||||||||||
Costs of revenues | 156,491 | 94,113 | 424,742 | 253,654 | |||||||||||||||||||
Gross profit (loss) | 101,329 | 18,099 | 219,246 | (17,523) | |||||||||||||||||||
Operating (income) expenses: | |||||||||||||||||||||||
Selling, general and administrative expenses | 30,315 | 17,695 | 145,013 | 49,217 | |||||||||||||||||||
(Gain) loss on sale or disposal of assets | (1,601) | 64 | (1,755) | (77) | |||||||||||||||||||
Income from joint venture | (127) | (69) | (285) | (126) | |||||||||||||||||||
Management fee income | (307) | (25) | (564) | (132) | |||||||||||||||||||
Other operating expense | 2,333 | 1,119 | 6,557 | 721 | |||||||||||||||||||
Business interruption insurance recoveries | — | — | — | (20,188) | |||||||||||||||||||
Total operating expense, net | 30,613 | 18,784 | 148,966 | 29,415 | |||||||||||||||||||
Operating profit (loss) | 70,716 | (685) | 70,280 | (46,938) | |||||||||||||||||||
Other expenses: | |||||||||||||||||||||||
Interest expense, net | 22,293 | 22,303 | 69,101 | 65,729 | |||||||||||||||||||
Change in fair value of earnout shares | 45,778 | — | 23,236 | — | |||||||||||||||||||
Change in fair value of warrant liability | 20,678 | — | 20,748 | — | |||||||||||||||||||
Other expense | 161 | — | 161 | — | |||||||||||||||||||
Total other expense, net | 88,910 | 22,303 | 113,246 | 65,729 | |||||||||||||||||||
Loss before income tax (benefit) expense | (18,194) | (22,988) | (42,966) | (112,667) | |||||||||||||||||||
Income tax (benefit) expense | (207) | 103 | (6,089) | 333 | |||||||||||||||||||
Net loss | $ | (17,987) | $ | (23,091) | $ | (36,877) | $ | (113,000) | |||||||||||||||
Series A preferred stock dividends | (2,818) | (2,012) | (7,290) | (5,998) | |||||||||||||||||||
Net loss attributable to common stockholders | $ | (20,805) | $ | (25,103) | $ | (44,167) | $ | (118,998) | |||||||||||||||
Net loss per share attributable to Class A and B common stockholders, basic and diluted | $ | (0.13) | $ | (0.17) | $ | (0.29) | $ | (0.81) | |||||||||||||||
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted | 162,590,921 | 146,848,329 | 152,731,385 | 146,848,329 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
March 27, 2022 | March 28, 2021 | March 27, 2022 | March 28, 2021 | ||||||||||||||||||||
Net loss | $ | (17,987) | $ | (23,091) | $ | (36,877) | $ | (113,000) | |||||||||||||||
Other comprehensive income (loss), net of income tax: | |||||||||||||||||||||||
Unrealized gain (loss) on derivatives | 97 | (47) | 55 | (330) | |||||||||||||||||||
Reclassification to earnings | 2,205 | 2,266 | 6,610 | 6,798 | |||||||||||||||||||
Foreign currency translation adjustment | 214 | 78 | (158) | 789 | |||||||||||||||||||
Other comprehensive income | 2,516 | 2,297 | 6,507 | 7,257 | |||||||||||||||||||
Total comprehensive loss | $ | (15,471) | $ | (20,794) | $ | (30,370) | $ | (105,743) |
Accumulated | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable Class A | Series A | Class A | Class B | Treasury | Additional | other | stockholders’ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
common stock | preferred stock | Common stock | Common stock | Stock | paid-in | Accumulated | comprehensive | equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | capital | deficit | loss | (deficit) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, June 28, 2020 | 2,069,000 | $ | 160,601 | 106,378 | $ | 133,147 | 3,842,428 | $ | 1 | — | $ | — | — | $ | — | $ | 271,776 | $ | (102,701) | $ | (19,012) | $ | 150,064 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retroactive application of recapitalization | 49,328,025 | — | 2,536,209 | — | 91,608,875 | 9 | — | — | — | — | — | (9) | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted balance, beginning of period | 51,397,025 | 160,601 | 2,642,587 | 133,147 | 95,451,303 | 10 | — | — | — | — | 271,776 | (102,710) | (19,012) | 150,064 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | (40,772) | — | (40,772) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | — | — | — | — | — | — | 216 | 216 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized loss on derivatives | — | — | — | — | — | — | — | — | — | — | — | — | (156) | (156) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification to earnings | — | — | — | — | — | — | — | — | — | — | — | — | 2,266 | 2,266 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued dividends on pre-merger Series A preferred stock | — | — | — | 2,026 | — | — | — | — | — | — | (2,026) | — | — | (2,026) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock based compensation | — | — | — | — | — | — | — | — | — | — | 849 | — | — | 849 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, September 27, 2020 | 51,397,025 | 160,601 | 2,642,587 | 135,173 | 95,451,303 | 10 | — | — | — | — | 270,599 | (143,482) | (16,686) | 110,441 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | (49,137) | — | (49,137) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | — | — | — | — | — | — | 495 | 495 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized loss on derivatives | — | — | — | — | — | — | — | — | — | — | — | — | (127) | (127) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification to earnings | — | — | — | — | — | — | — | — | — | — | — | — | 2,266 | 2,266 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued dividends on pre-merger Series A preferred stock | — | — | — | 1,960 | — | — | — | — | — | — | (1,960) | — | — | (1,960) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock based compensation | — | — | — | — | — | — | — | — | — | — | 696 | — | — | 696 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 27, 2020 | 51,397,025 | 160,601 | 2,642,587 | 137,133 | 95,451,303 | 10 | — | — | — | — | 269,335 | (192,619) | (14,052) | 62,674 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | (23,091) | — | (23,091) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | — | — | — | — | — | — | 78 | 78 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized loss on derivatives | — | — | — | — | — | — | — | — | — | — | — | — | (47) | (47) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification to earnings | — | — | — | — | — | — | — | — | — | — | — | — | 2,266 | 2,266 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued dividends on pre-merger Series A preferred stock | — | — | — | 2,012 | — | — | — | — | — | — | (2,012) | — | — | (2,012) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock based compensation | — | — | — | — | — | — | — | — | 826 | — | — | 826 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 28, 2021 | 51,397,025 | $ | 160,601 | 2,642,587 | $ | 139,145 | 95,451,303 | $ | 10 | — | $ | — | — | $ | — | $ | 268,149 | $ | (215,710) | $ | (11,755) | $ | 40,694 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, June 27, 2021 (retroactively stated for application of recapitalization) | 51,397,025 | $ | 464,827 | 2,642,587 | $ | 141,162 | 95,451,303 | $ | 10 | — | $ | — | — | $ | — | $ | — | $ | (266,472) | $ | (9,404) | $ | (275,866) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | — | — | — | — | 15,564 | — | 15,564 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | — | — | — | — | — | — | (164) | (164) |
Unrealized loss on derivatives | — | — | — | — | — | — | — | — | — | — | — | — | (32) | (32) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification to earnings | — | — | — | — | — | — | — | — | — | — | — | — | 2,202 | 2,202 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued dividends on pre-merger Series A preferred stock | — | — | — | 2,251 | — | — | — | — | — | — | (2,251) | — | — | (2,251) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in fair value of redeemable Class A common stock of Old Bowlero | — | 14,995 | — | — | — | — | — | — | — | — | (14,995) | — | — | (14,995) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock based compensation | — | — | — | — | — | — | — | — | — | — | 801 | — | — | 801 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclass of negative APIC to accumulated deficit | — | — | — | — | — | — | — | — | — | — | 16,445 | (16,445) | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, September 26, 2021 | 51,397,025 | 479,822 | 2,642,587 | 143,413 | 95,451,303 | 10 | — | — | — | — | — | (267,353) | (7,398) | (274,741) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | (34,454) | — | (34,454) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | — | — | — | — | — | — | (208) | (208) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized loss on derivatives | — | — | — | — | — | — | — | — | — | — | — | — | (10) | (10) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification to earnings | — | — | — | — | — | — | — | — | — | — | — | — | 2,203 | 2,203 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued dividends on pre-merger Series A preferred stock | — | — | — | 1,885 | — | — | — | — | — | — | (1,885) | — | — | (1,885) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in fair value of redeemable Class A common stock of Old Bowlero | — | 23,869 | — | — | — | — | — | — | — | — | (23,869) | — | — | (23,869) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Merger induced stock based compensation | — | — | — | — | 2,529,360 | — | 5,839,993 | 1 | — | — | 42,555 | — | — | 42,556 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock and preferred stock in connection with Merger Capitalization, net of Bowlero equity issuance costs and fair value of liability-classified warrants and earnout | — | — | 95,000 | 95,000 | 42,185,233 | 4 | 1,074,185 | — | — | — | 120,805 | — | — | 120,809 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlement of pre-merger Series A preferred stock | — | — | (2,642,587) | (145,298) | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Class A common stock of Old Bowlero to Series A preferred stock | — | — | 105,000 | 105,000 | (10,499,900) | (1) | — | — | — | — | (104,999) | — | — | (105,000) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consideration to existing shareholders of Old Bowlero | — | — | — | — | (22,599,800) | (2) | — | — | — | — | (225,998) | — | — | (226,000) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consideration paid to Old Bowlero optionholders | — | — | — | — | — | — | — | — | — | — | (15,467) | — | — | (15,467) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exchange of redeemable Class A common stock of Old Bowlero for Class B common stock | (51,397,025) | (503,691) | — | — | — | — | 51,397,025 | 5 | — | — | 503,686 | — | — | 503,691 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 26, 2021 | — | — | 200,000 | 200,000 | 107,066,196 | 11 | 58,311,203 | 6 | — | — | 294,828 | (301,807) | (5,413) | (12,375) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | (17,987) | — | (17,987) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | — | — | — | — | — | — | 214 | 214 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized gain on derivatives | — | — | — | — | — | — | — | — | — | — | — | — | 97 | 97 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification to earnings | — | — | — | — | — | — | — | — | — | — | — | — | 2,205 | 2,205 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrual of paid-in-kind dividends on Series A preferred stock | — | — | — | 489 | — | — | — | — | — | — | (489) | — | — | (489) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of Class A common stock into Treasury stock | — | — | — | — | (109,754) | — | — | — | 109,754 | (1,026) | — | — | — | (1,026) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock based compensation | — | — | — | — | 69,086 | — | — | — | — | — | 2,451 | — | — | 2,451 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 27, 2022 | — | $ | — | 200,000 | $ | 200,489 | 107,025,528 | $ | 11 | 58,311,203 | $ | 6 | 109,754 | $ | (1,026) | $ | 296,790 | $ | (319,794) | $ | (2,897) | $ | (26,910) |
Nine Months Ended | |||||||||||
March 27, 2022 | March 28, 2021 | ||||||||||
Operating activities | |||||||||||
Net loss | $ | (36,877) | $ | (113,000) | |||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 78,487 | 67,979 | |||||||||
Gain on sale or disposal of assets, net | (1,755) | (77) | |||||||||
Income from joint venture | (285) | (126) | |||||||||
Loss on refinance of debt | 953 | — | |||||||||
Loss on repurchase of warrants | 161 | — | |||||||||
Amortization of deferred financing costs | 2,769 | 2,529 | |||||||||
Amortization of deferred rent incentive | (281) | 1,338 | |||||||||
Non-cash interest expense on capital lease obligation | 4,514 | 4,603 | |||||||||
Amortization of deferred sale lease-back gain | (770) | (770) | |||||||||
Deferred income taxes | (6,587) | — | |||||||||
Stock based compensation | 46,376 | 2,371 | |||||||||
Distributions from joint venture | 265 | 122 | |||||||||
Change in fair value of earnout liability | 23,236 | — | |||||||||
Change in fair value of warrant liability | 20,748 | — | |||||||||
Changes in assets and liabilities, net of business acquisitions: | |||||||||||
Accounts receivable and notes receivable, net | 23 | 2,563 | |||||||||
Inventories | (1,708) | 460 | |||||||||
Prepaids, other current assets and other assets | (5,723) | 594 | |||||||||
Accounts payable and accrued expenses | 10,777 | 23,608 | |||||||||
Other current liabilities | 4,265 | 5,101 | |||||||||
Other long-term liabilities | 4,273 | 19,828 | |||||||||
Net cash provided by operating activities | 142,861 | 17,123 | |||||||||
Investing activities | |||||||||||
Purchases of property, equipment, and internal use software | (135,548) | (26,598) | |||||||||
Proceeds from sale of property and equipment | 6,160 | 482 | |||||||||
Proceeds from sale of intangibles | — | 60 | |||||||||
Purchases of intangible assets | (2,602) | — | |||||||||
Acquisitions, net of cash acquired | (46,754) | (2,132) | |||||||||
Net cash used in investing activities | (178,744) | (28,188) | |||||||||
Financing activities | |||||||||||
Repurchase of Series A preferred stock - Old Bowlero | (145,298) | — | |||||||||
Proceeds from issuance of Series A preferred stock | 95,000 | — | |||||||||
Proceeds from issuance of Class A common stock to Isos investors | 94,413 | — | |||||||||
Transaction costs related to Merger recapitalization | (20,670) | — | |||||||||
Proceeds from PIPE Investment | 150,604 | — |
Proceeds from Forward Investment | 100,000 | — | |||||||||
Payment to existing shareholders of Old Bowlero | (226,000) | — | |||||||||
Consideration paid to existing option holders of Old Bowlero | (15,467) | — | |||||||||
Repurchase of treasury stock | (1,026) | — | |||||||||
Repurchase of warrants | (5,382) | — | |||||||||
Payment of long-term debt | (6,158) | (6,158) | |||||||||
Payment of First Lien Credit Facility Revolver | (39,853) | — | |||||||||
Proceeds from Incremental Liquidity Facility | — | 45,000 | |||||||||
Payment of Incremental Liquidity Facility | (45,000) | — | |||||||||
Proceeds from New Revolver | 86,434 | — | |||||||||
Payment of deferred financing costs | (977) | (1,984) | |||||||||
Construction allowance receipts | 1,132 | — | |||||||||
Net cash provided by financing activities | 21,752 | 36,858 | |||||||||
Effect of exchange rates on cash | 15 | 71 | |||||||||
Net (decrease) increase in cash and equivalents | (14,116) | 25,864 | |||||||||
Cash and cash equivalents at beginning of period | 187,093 | 140,705 | |||||||||
Cash and cash equivalents at end of period | $ | 172,977 | $ | 166,569 |
Note 1 | ||||||||
Note 2 | ||||||||
Note 3 | ||||||||
Note 4 | ||||||||
Note 5 | ||||||||
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Note 10 | ||||||||
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Note 20 | ||||||||
Note 21 |
March 27, 2022 | June 27, 2021 | ||||||||||
AMF & other | 147 | 136 | |||||||||
Bowlmor | 2 | 14 | |||||||||
Bowlero | 160 | 133 | |||||||||
Total centers in the United States | 309 | 283 | |||||||||
Mexico (AMF) | 6 | 6 | |||||||||
Canada (AMF and Bowlero) | 2 | 2 | |||||||||
Total | 317 | 291 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
March 27, 2022 | % | March 28, 2021 | % | March 27, 2022 | % | March 28, 2021 | % | ||||||||||||||||||||||||||||||||||||||||
Major revenue categories: | |||||||||||||||||||||||||||||||||||||||||||||||
Bowling | $ | 130,394 | 51 | % | $ | 56,826 | 51 | % | $ | 326,536 | 51 | % | $ | 124,351 | 53 | % | |||||||||||||||||||||||||||||||
Food and beverage | 88,187 | 34 | % | 36,866 | 33 | % | 221,206 | 34 | % | 75,653 | 32 | % | |||||||||||||||||||||||||||||||||||
Amusement | 33,781 | 13 | % | 14,146 | 13 | % | 83,967 | 13 | % | 25,699 | 11 | % | |||||||||||||||||||||||||||||||||||
Media | 5,458 | 2 | % | 4,374 | 4 | % | 12,279 | 2 | % | 10,428 | 4 | % | |||||||||||||||||||||||||||||||||||
Total revenues | $ | 257,820 | 100 | % | $ | 112,212 | 100 | % | $ | 643,988 | 100 | % | $ | 236,131 | 100 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
March 27, 2022 | March 28, 2021 | March 27, 2022 | March 28, 2021 | ||||||||||||||||||||
Operating Leases | |||||||||||||||||||||||
Rent expense | $ | 8,041 | $ | 13,969 | $ | 39,979 | $ | 42,669 | |||||||||||||||
Capital Leases | |||||||||||||||||||||||
Interest expense | 9,255 | 8,722 | 28,080 | 26,050 | |||||||||||||||||||
Amortization expense | 3,003 | 3,049 | 9,313 | 9,300 | |||||||||||||||||||
Total Capital Lease Cost | $ | 12,258 | $ | 11,771 | $ | 37,393 | $ | 35,350 |
Operating Leases | Capital Leases | ||||||||||
Remainder of 2022 | $ | 16,003 | $ | 11,159 | |||||||
2023 | 46,450 | 40,879 | |||||||||
2024 | 45,559 | 41,954 | |||||||||
2025 | 47,031 | 42,146 | |||||||||
2026 | 45,090 | 37,353 | |||||||||
Thereafter | 566,291 | 1,030,886 | |||||||||
Total Rental Payments: | $ | 766,424 | $ | 1,204,377 | |||||||
Less imputed interest expense for capital leases: | 809,526 | ||||||||||
Present value: | $ | 394,851 |
Recapitalization | |||||
Cash-Isos Acquisition Corporation Trust | $ | 254,851 | |||
Less: Isos transaction costs paid from Trust | (23,869) | ||||
Less: Redemptions of existing shareholders of Isos | (136,569) | ||||
Net proceeds from SPAC shareholders | 94,413 | ||||
Cash-PIPE | 150,604 | ||||
Cash-PIPE preferred | 95,000 | ||||
Cash-Forward | 100,000 | ||||
Total Cash received | 440,017 | ||||
Less: Bowlero transaction costs | (20,670) | ||||
Total Cash received, net of Bowlero transaction costs | 419,347 | ||||
Earnout liability | (181,113) | ||||
Warrant liability | (22,426) | ||||
New equity, net | 215,808 | ||||
Less: Consideration payment to Bowlero shareholders | (226,000) | ||||
Less: Payoff of preferred stock and accumulated dividends | (145,298) | ||||
Less: Payments for stock options | (15,467) | ||||
Net distributions to existing shareholders | (386,765) | ||||
Net contribution from Business Combination and preferred financing | $ | (170,957) |
Identifiable assets acquired and liabilities assumed | Business Combination Totals | |||||||
Current assets | $ | 2,510 | ||||||
Property and equipment | 29,027 | |||||||
Identifiable intangible assets | 3,080 | |||||||
Goodwill | 12,763 | |||||||
Total assets acquired | $ | 47,380 | ||||||
Current liabilities | (415) | |||||||
Total assumed liabilities | (415) | |||||||
Total consideration transferred, net of cash acquired of $25 | $ | 46,965 | ||||||
Components of consideration transferred | ||||||||
Cash | $ | 44,027 | ||||||
Holdback | 1,468 | |||||||
Contingent consideration | 1,470 | |||||||
Total | $ | 46,965 | ||||||
Transaction expenses included in “other operating expense” in the condensed consolidated statement of operations for the nine months ended March 27, 2022 | $ | 759 |
Identifiable assets acquired and liabilities assumed | Bowl America | Other Asset Acquisition | Total | |||||||||||||||||
Current assets | $ | 2,949 | $ | 5 | $ | 2,954 | ||||||||||||||
Property and equipment | 40,121 | 8,564 | 48,685 | |||||||||||||||||
Identifiable intangible assets | 1,099 | 1,136 | 2,235 | |||||||||||||||||
Assets held for sale | 10,985 | — | 10,985 | |||||||||||||||||
Current liabilities | (1,426) | (81) | (1,507) | |||||||||||||||||
Deferred tax liability | (9,107) | — | (9,107) | |||||||||||||||||
Total consideration transferred | $ | 44,621 | $ | 9,624 | $ | 54,245 |
Balance as of June 27, 2021 | $ | 726,156 | |||
Goodwill resulting from acquisitions | 12,631 | ||||
Balance as of March 27, 2022 | $ | 738,787 |
March 27, 2022 | June 27, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||
Weighted average life (in years) | Gross carrying amount | Accumulated amortization | Net carrying amount | Weighted average life (in years) | Gross carrying amount | Accumulated amortization | Net carrying amount | ||||||||||||||||||||||||||||||||||||||||
Finite-lived intangible assets: | |||||||||||||||||||||||||||||||||||||||||||||||
AMF trade name | 2 | $ | 9,900 | $ | (8,415) | $ | 1,485 | 1 | $ | 9,900 | $ | (7,920) | $ | 1,980 | |||||||||||||||||||||||||||||||||
Bowlmor trade name | 0 | 6,500 | (6,500) | — | 6 | 6,500 | (2,600) | 3,900 | |||||||||||||||||||||||||||||||||||||||
Other acquisition trade names | 5 | 1,610 | (507) | 1,103 | 7 | 1,010 | (173) | 837 | |||||||||||||||||||||||||||||||||||||||
Customer relationships | 2 | 20,652 | (13,017) | 7,635 | 3 | 18,370 | (10,471) | 7,899 | |||||||||||||||||||||||||||||||||||||||
Management contracts | 2 | 1,800 | (1,366) | 434 | 2 | 1,800 | (1,150) | 650 | |||||||||||||||||||||||||||||||||||||||
Non-compete agreements | 4 | 1,921 | (769) | 1,152 | 4 | 1,200 | (514) | 686 | |||||||||||||||||||||||||||||||||||||||
PBA member, sponsor & media relationships | 8 | 1,400 | (456) | 944 | 8 | 1,400 | (322) | 1,078 | |||||||||||||||||||||||||||||||||||||||
Other intangible assets | 4 | 921 | (217) | 704 | — | — | — | ||||||||||||||||||||||||||||||||||||||||
$ | 44,704 | $ | (31,247) | $ | 13,457 | $ | 40,180 | $ | (23,150) | $ | 17,030 | ||||||||||||||||||||||||||||||||||||
Indefinite-lived intangible assets: | |||||||||||||||||||||||||||||||||||||||||||||||
Liquor licenses | 9,735 | — | 9,735 | 9,027 | — | 9,027 | |||||||||||||||||||||||||||||||||||||||||
PBA trade name | 3,100 | — | 3,100 | 3,100 | — | 3,100 | |||||||||||||||||||||||||||||||||||||||||
Bowlero trade name | 66,900 | — | 66,900 | 66,900 | — | 66,900 | |||||||||||||||||||||||||||||||||||||||||
79,735 | — | 79,735 | 79,027 | — | 79,027 | ||||||||||||||||||||||||||||||||||||||||||
$ | 124,439 | $ | (31,247) | $ | 93,192 | $ | 119,207 | $ | (23,150) | $ | 96,057 |
March 27, 2022 | June 27, 2021 | ||||||||||
Land | $ | 71,723 | $ | 19,879 | |||||||
Buildings and improvements | 53,974 | 16,155 | |||||||||
Leasehold improvements | 342,524 | 313,441 | |||||||||
Equipment, furniture, and fixtures | 359,782 | 315,719 | |||||||||
Construction in progress | 15,707 | 27,028 | |||||||||
$ | 843,710 | $ | 692,222 | ||||||||
Accumulated depreciation | (331,367) | (276,561) | |||||||||
Property and equipment, net of accumulated depreciation | $ | 512,343 | $ | 415,661 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
March 27, 2022 | March 28, 2021 | March 27, 2022 | March 28, 2021 | ||||||||||||||||||||
Depreciation expense | $ | 20,578 | $ | 17,036 | $ | 55,525 | $ | 50,408 |
Capitalized internal use software | Balance at June 27, 2021 | Additions | Balance at March 27, 2022 | |||||||||||||||||
Internal use software, gross | $ | 20,420 | $ | 3,534 | $ | 23,954 | ||||||||||||||
Accumulated amortization | (11,358) | (2,345) | (13,703) | |||||||||||||||||
Internal use software, net | $ | 9,062 | $ | 1,189 | $ | 10,251 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
March 27, 2022 | March 28, 2021 | March 27, 2022 | March 28, 2021 | ||||||||||||||||||||
Amortization expense | $ | 1,016 | $ | 625 | $ | 2,345 | $ | 1,712 |
March 27, 2022 | June 27, 2021 | ||||||||||
Customer deposits | $ | 24,258 | $ | 7,114 | |||||||
Compensation | 12,347 | 13,577 | |||||||||
Taxes and licenses | 10,465 | 9,646 | |||||||||
Insurance | 6,238 | 8,285 | |||||||||
Deferred revenue | 4,814 | 5,885 | |||||||||
Deferred rent | 3,950 | 4,384 | |||||||||
Utilities | 3,844 | 3,399 | |||||||||
Interest | 3,839 | 4,693 | |||||||||
Professional fees | 1,752 | 4,473 | |||||||||
Other | 8,606 | 2,194 | |||||||||
Total accrued expenses | $ | 80,113 | $ | 63,650 |
March 27, 2022 | June 27, 2021 | ||||||||||
First Lien Credit Facility Revolver | $ | — | $ | 39,853 | |||||||
First Lien Credit Facility Term Loan (Maturing July 3, 2024 and bearing variable rate interest; 4.50%nd 4.55% at March 27, 2022 and June 27, 2021, respectively, excluding impact of hedging) | 794,376 | 800,534 | |||||||||
Incremental Liquidity Facility | — | 45,000 | |||||||||
New Revolver (Maturing April 4, 2024) | 86,434 | — | |||||||||
$ | 880,810 | $ | 885,387 | ||||||||
Less: | |||||||||||
Unamortized financing costs | (7,496) | (9,800) | |||||||||
Current portion of unamortized financing costs | 3,267 | 3,152 | |||||||||
Current maturities of long-term debt | (8,211) | (8,211) | |||||||||
Total long-term debt | $ | 868,370 | $ | 870,528 |
Class of Warrants | Number Outstanding | |||||||
Public warrants | 9,137,627 | |||||||
Private placement warrants | 3,778,445 | |||||||
Unvested private placement warrants | 1,619,348 | |||||||
14,535,420 |
March 27, 2022 | June 27, 2021 | ||||||||||||||||||||||
Notional Amounts | Expiration | Notional Amounts | Expiration | ||||||||||||||||||||
Interest rate swaps | $ | 552,500 | June 30, 2022 | $ | 552,500 | June 30, 2022 | |||||||||||||||||
Interest rate caps | 97,500 | March 31, 2022 | 97,500 | March 31, 2022 | |||||||||||||||||||
Total notional amounts | $ | 650,000 | $ | 650,000 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
March 27, 2022 | March 28, 2021 | March 27, 2022 | March 28, 2021 | ||||||||||||||||||||
Interest expense reclassified from AOCI into net loss | $ | 2,205 | $ | 2,266 | $ | 6,610 | $ | 6,798 |
March 27, 2022 | June 27, 2021 | ||||||||||
Carrying value | $ | 880,810 | $ | 885,387 | |||||||
Fair value | 874,034 | 887,102 |
March 27, 2022 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Public warrants | $ | 24,123 | $ | — | $ | — | $ | 24,123 | |||||||||||||||
Private placement warrants | — | — | 9,975 | 9,975 | |||||||||||||||||||
Unvested warrants | — | — | 3,854 | 3,854 | |||||||||||||||||||
Earnout shares | — | — | 204,416 | 204,416 | |||||||||||||||||||
Contingent consideration | — | — | 1,470 | 1,470 | |||||||||||||||||||
Derivatives | — | 2,141 | — | 2,141 | |||||||||||||||||||
Total liabilities | $ | 24,123 | $ | 2,141 | $ | 219,715 | $ | 245,979 |
Input | Warrant Liability | Earnout | ||||||||||||
Expected term in years | 4.72 | 4.72 | ||||||||||||
Expected volatility | 28 | % | 55 | % | ||||||||||
Risk-free interest rate | 2.54 | % | 2.54 | % | ||||||||||
Stock price | $ | 10.86 | $ | 10.86 | ||||||||||
Dividend yield | — | — |
June 27, 2021 | Issuances | Settlements | Changes in fair value | March 27, 2022 | |||||||||||||||||||||||||
Earnouts | $ | — | $ | 181,180 | $ | — | $ | 23,236 | $ | 204,416 | |||||||||||||||||||
Warrant liability | — | 22,426 | 5,222 | 20,748 | 37,952 | ||||||||||||||||||||||||
Totals: | $ | — | $ | 203,606 | $ | 5,222 | $ | 43,984 | $ | 242,368 |
Number of Options | Weighted Average Exercise Price Per Share | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value | ||||||||||||||||||||
Outstanding at June 27, 2021 | 49,331,480 | $ | 8.60 | 9.13 | $ | — | |||||||||||||||||
Granted | — | — | — | — | |||||||||||||||||||
Exercised - stock | 10,360,078 | 3.25 | — | — | |||||||||||||||||||
Repurchased - cash | 639,122 | — | — | — | |||||||||||||||||||
Forfeited and cancelled | 17,962,453 | 13.53 | — | — | |||||||||||||||||||
Outstanding at March 27, 2022 | 20,369,827 | $ | 7.14 | 9.74 | $ | 75,696 | |||||||||||||||||
Vested as of March 27, 2022 | 20,369,827 | 7.14 | 9.74 | 75,696 | |||||||||||||||||||
Exercisable as of March 27, 2022 | 20,369,827 | 7.14 | 9.74 | 75,696 |
Expected term in years | 6.68 | ||||
Interest rate | 1.39 | % | |||
Volatility | 55.6 | % | |||
Dividend yield | — |
Number of Options | Weighted Average Exercise Price Per Share | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value | ||||||||||||||||||||
Outstanding at December 14, 2021 | — | $ | — | $ | — | $ | — | ||||||||||||||||
Granted | 9,415,912 | 13.72 | 10.00 | — | |||||||||||||||||||
Exercised | — | — | — | — | |||||||||||||||||||
Forfeited and cancelled | — | — | — | — | |||||||||||||||||||
Repurchased or settled | — | — | — | — | |||||||||||||||||||
Outstanding at March 27, 2022 | 9,415,912 | $ | 13.72 | 9.75 | $ | 573 | |||||||||||||||||
Vested as of March 27, 2022 | 665,912 | 13.72 | 9.75 | 573 | |||||||||||||||||||
Exercisable as of March 27, 2022 | 665,912 | 13.72 | 9.75 | 573 |
Number of Units | Weighted Average Grant Date Fair Value Per Share | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value | ||||||||||||||||||||
Outstanding at December 14, 2021 | — | $ | — | $ | — | $ | — | ||||||||||||||||
Granted | 933,600 | 9.72 | 2.51 | — | |||||||||||||||||||
Vested | — | — | — | — | |||||||||||||||||||
Forfeited | — | — | — | — | |||||||||||||||||||
Outstanding at March 27, 2022 | 933,600 | $ | 9.72 | 2.41 | $ | 10,139 |
Number of Units | Weighted Average Grant Date Fair Value Per Share | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value | ||||||||||||||||||||
Outstanding at December 14, 2021 | — | $ | — | — | $ | — | |||||||||||||||||
Granted | 152,370 | 8.16 | 5.00 | — | |||||||||||||||||||
Vested | — | — | — | — | |||||||||||||||||||
Forfeited | 10,198 | 8.16 | — | — | |||||||||||||||||||
Outstanding at March 27, 2022 | 142,172 | $ | 8.16 | 4.72 | $ | 1,544 |
Number of Units | Weighted Average Grant Date Fair Value Per Share | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value | ||||||||||||||||||||
Outstanding at December 14, 2021 | — | $ | — | — | $ | — | |||||||||||||||||
Granted | 262,200 | 6.64 | 2.79 | — | |||||||||||||||||||
Vested | — | — | — | — | |||||||||||||||||||
Forfeited | — | — | — | — | |||||||||||||||||||
Outstanding at March, 27, 2022 | 262,200 | $ | 6.64 | 2.72 | $ | 2,847 |
Award Plan | Unrecognized Compensation Cost | Weighted Average Period over which its expected to be recognized | ||||||||||||
Stock options | 2021 Plan | $ | 39,812 | 6.73 | ||||||||||
Service based RSUs | 2021 Plan | 8,472 | 2.41 | |||||||||||
Market and service based RSUs | 2021 Plan | 1,697 | 2.72 | |||||||||||
Earnout RSUs | 2021 Plan | 1,095 | 4.72 | |||||||||||
Total unrecognized compensation cost | $ | 51,076 | 5.84 |
Award Plan | Selling, general and administrative expenses | Cost of revenues | Total | |||||||||||||||||
Performance-based options | 2017 Plan | $ | 24,468 | $ | 48 | $ | 24,516 | |||||||||||||
Time-based options | 2017 Plan | 916 | 36 | 952 | ||||||||||||||||
Stock options | 2021 Plan | 5,966 | — | 5,966 | ||||||||||||||||
Service based RSUs | 2021 Plan | 592 | 13 | 605 | ||||||||||||||||
Market and service based RSUs | 2021 Plan | 41 | 3 | 44 | ||||||||||||||||
Earnout RSUs | 2021 Plan | 65 | — | 65 | ||||||||||||||||
Share-based bonus | — | 14,228 | — | 14,228 | ||||||||||||||||
Total stock based compensation expense | $ | 46,276 | $ | 100 | $ | 46,376 |
Three and Nine Months Ended March 27, 2022 | ||||||||||||||
Class A common stock repurchased | 109,754 | |||||||||||||
Total cost of Class A common stock repurchased | $ | 1,026 | ||||||||||||
Warrants repurchased | 2,690,272 | |||||||||||||
Total cost of warrants repurchased | $ | 5,382 |
Three Months Ended | |||||||||||||||||||||||||||||||||||
March 27, 2022 | March 28, 2021 | ||||||||||||||||||||||||||||||||||
Class A | Class B | Total | Class A | Class B | Total | ||||||||||||||||||||||||||||||
Numerator | |||||||||||||||||||||||||||||||||||
Net loss allocated to stockholders | $ | (13,344) | $ | (7,461) | $ | (20,805) | $ | (25,103) | $ | — | $ | (25,103) | |||||||||||||||||||||||
Denominator | |||||||||||||||||||||||||||||||||||
Weighted-average shares outstanding | 104,279,718 | 58,311,203 | 162,590,921 | 146,848,329 | — | 146,848,329 | |||||||||||||||||||||||||||||
Net loss per share, basic and diluted | $ | (0.13) | $ | (0.13) | $ | (0.13) | $ | (0.17) | $ | — | $ | (0.17) |
Nine Months Ended | |||||||||||||||||||||||||||||||||||
March 27, 2022 | March 28, 2021 | ||||||||||||||||||||||||||||||||||
Class A | Class B | Total | Class A | Class B | Total | ||||||||||||||||||||||||||||||
Numerator | |||||||||||||||||||||||||||||||||||
Net loss allocated to stockholders | $ | (37,867) | $ | (6,300) | $ | (44,167) | $ | (118,998) | $ | — | $ | (118,998) | |||||||||||||||||||||||
Denominator | |||||||||||||||||||||||||||||||||||
Weighted-average shares outstanding | 130,944,782 | 21,786,603 | 152,731,385 | 146,848,329 | — | 146,848,329 | |||||||||||||||||||||||||||||
Net loss per share, basic and diluted | $ | (0.29) | $ | (0.29) | $ | (0.29) | $ | (0.81) | $ | — | $ | (0.81) |
(in thousands) | June 28, 2020 | September 27, 2020 | December 27, 2020 | March 28, 2021 | June 27, 2021 | September 26, 2021 | December 26, 2021 | March 27, 2022 | ||||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 11,126 | 49,931 | 73,988 | 112,212 | 159,103 | 180,978 | 205,190 | 257,820 | |||||||||||||||||||||||||||||||||||||||||
Net income (loss) | (84,748) | (40,772) | (49,137) | (23,091) | (13,461) | 15,564 | (34,454) | (17,987) |
(in thousands) | June 28, 2020 | September 27, 2020 | December 27, 2020 | March 28, 2021 | June 27, 2021 | September 26, 2021 | December 26, 2021 | March 27, 2022 | ||||||||||||||||||||||||||||||||||||||||||
Consolidated | ||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 11,126 | 49,931 | 73,988 | 112,212 | 159,103 | 180,978 | 205,190 | 257,820 | |||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | (84,748) | (40,772) | (49,137) | (23,091) | (13,461) | 15,564 | (34,454) | (17,987) | |||||||||||||||||||||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | 20,623 | 21,173 | 22,253 | 22,303 | 23,128 | 22,928 | 23,880 | 22,293 | ||||||||||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | 7,594 | 124 | 106 | 103 | (1,368) | (6,244) | 362 | (207) | ||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 23,432 | 22,451 | 22,538 | 22,990 | 23,872 | 22,841 | 25,660 | 29,986 | ||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | 855 | 849 | 696 | 826 | 793 | 801 | 42,555 | 3,020 | ||||||||||||||||||||||||||||||||||||||||||
Closed center EBITDA (1) | 970 | 579 | 904 | 806 | 1,750 | 420 | 398 | 611 | ||||||||||||||||||||||||||||||||||||||||||
Foreign currency exchange loss (gain) | (57) | 2 | (195) | 104 | (99) | 35 | 86 | (90) | ||||||||||||||||||||||||||||||||||||||||||
Asset disposition loss (gain) | 690 | 1 | (142) | 64 | 31 | (30) | (123) | (1,601) | ||||||||||||||||||||||||||||||||||||||||||
Transactional and other advisory costs (2) | 1,480 | 1,510 | 731 | 1,852 | 6,644 | 2,829 | 29,149 | 4,757 | ||||||||||||||||||||||||||||||||||||||||||
Charges attributed to new initiatives (3) | 116 | 132 | 116 | 136 | 147 | 141 | 65 | 43 | ||||||||||||||||||||||||||||||||||||||||||
Extraordinary unusual non-recurring (gains) losses (4) | (451) | 1,164 | (1,647) | 1,294 | 859 | (441) | 1,662 | 929 | ||||||||||||||||||||||||||||||||||||||||||
Changes in the value of earnouts and warrants (5) | — | — | — | — | — | — | (22,472) | 66,617 | ||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | (29,496) | 7,213 | (3,777) | 27,387 | 42,296 | 58,844 | 66,768 | 108,371 | |||||||||||||||||||||||||||||||||||||||||
Trailing twelve month Net loss | $ | (197,748) | (126,461) | (70,125) | (55,442) | (50,338) | ||||||||||||||||||||||||||||||||||||||||||||
Trailing twelve month Adjusted EBITDA | $ | 1,327 | 73,119 | 124,750 | 195,295 | 276,279 | ||||||||||||||||||||||||||||||||||||||||||||
Trailing twelve month Revenues | $ | 247,257 | 395,234 | 526,281 | 657,483 | 803,091 | ||||||||||||||||||||||||||||||||||||||||||||
Trailing twelve month Net loss as a % of Trailing twelve month Revenues | (80) | % | (32) | % | (13) | % | (8) | % | (6) | % | ||||||||||||||||||||||||||||||||||||||||
Trailing twelve month Adjusted EBITDA as a % of Trailing twelve month Revenues | 1 | % | 19 | % | 24 | % | 30 | % | 34 | % |
Three Months Ended | |||||||||||||||||||||||||||||
(in thousands) | March 27, 2022 | %(1) | March 28, 2021 | %(1) | Change | ||||||||||||||||||||||||
Revenues | $ | 257,820 | 100 | % | $ | 112,212 | 100 | % | $ | 145,608 | |||||||||||||||||||
Costs of revenues | 156,491 | 61 | % | 94,113 | 84 | % | 62,378 | ||||||||||||||||||||||
Gross profit | 101,329 | 39 | % | 18,099 | 16 | % | 83,230 | ||||||||||||||||||||||
Operating (income) expenses: | |||||||||||||||||||||||||||||
Selling, general and administrative expenses | 30,315 | 12 | % | 17,695 | 16 | % | 12,620 | ||||||||||||||||||||||
(Gain) loss on sale or disposal of assets | (1,601) | -1 | % | 64 | 0 | % | (1,665) | ||||||||||||||||||||||
Income from joint venture | (127) | 0 | % | (69) | 0 | % | (58) | ||||||||||||||||||||||
Management fee income | (307) | 0 | % | (25) | 0 | % | (282) | ||||||||||||||||||||||
Other operating expense | 2,333 | 1 | % | 1,119 | 1 | % | 1,214 | ||||||||||||||||||||||
Total operating expense, net | 30,613 | 12 | % | 18,784 | 17 | % | 11,829 | ||||||||||||||||||||||
Operating profit (loss) | 70,716 | 27 | % | (685) | -1 | % | 71,401 | ||||||||||||||||||||||
Other expenses: | |||||||||||||||||||||||||||||
Interest expense, net | 22,293 | 9 | % | 22,303 | 20 | % | (10) | ||||||||||||||||||||||
Change in fair value of earnout shares | 45,778 | 18 | % | — | 0 | % | 45,778 | ||||||||||||||||||||||
Change in fair value of warrant liability | 20,678 | 8 | % | — | 0 | % | 20,678 | ||||||||||||||||||||||
Other expense | 161 | 0 | % | — | 0 | % | 161 | ||||||||||||||||||||||
Total other expense, net | 88,910 | 34 | % | 22,303 | 20 | % | 66,607 | ||||||||||||||||||||||
Loss before income tax (benefit) expense | (18,194) | -7 | % | (22,988) | -20 | % | 4,794 | ||||||||||||||||||||||
Income tax (benefit) expense | (207) | 0 | % | 103 | 0 | % | (310) | ||||||||||||||||||||||
Net loss | $ | (17,987) | -7 | % | $ | (23,091) | -21 | % | $ | 5,104 |
Three Months Ended | |||||||||||||||||||||||
(in thousands) | March 27, 2022 | March 28, 2021 | Change | % Change | |||||||||||||||||||
Center revenues on a same-store basis | $ | 232,695 | $ | 108,346 | $ | 124,349 | 115 | % | |||||||||||||||
Revenues for media, new and closed centers | 25,125 | 3,866 | 21,259 | 550 | % | ||||||||||||||||||
Total revenues | $ | 257,820 | $ | 112,212 | $ | 145,608 | 130 | % |
Nine Months Ended | ||||||||||||||||||||||||||||||||
(in thousands) | March 27, 2022 | % (1) | March 28, 2021 | % (1) | Change | |||||||||||||||||||||||||||
Revenues | $ | 643,988 | 100 | % | $ | 236,131 | 100 | % | $ | 407,857 | ||||||||||||||||||||||
Costs of revenues | 424,742 | 66 | % | 253,654 | 107 | % | 171,088 | |||||||||||||||||||||||||
Gross profit (loss) | 219,246 | 34 | % | (17,523) | -7 | % | 236,769 | |||||||||||||||||||||||||
Operating (income) expenses: | ||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 145,013 | 23 | % | 49,217 | 21 | % | 95,796 | |||||||||||||||||||||||||
Gain on sale or disposal of assets | (1,755) | 0 | % | (77) | 0 | % | (1,678) | |||||||||||||||||||||||||
Income from joint venture | (285) | 0 | % | (126) | 0 | % | (159) | |||||||||||||||||||||||||
Management fee income | (564) | 0 | % | (132) | 0 | % | (432) | |||||||||||||||||||||||||
Other operating expense | 6,557 | 1 | % | 721 | 0 | % | 5,836 | |||||||||||||||||||||||||
Business interruption insurance recoveries | — | 0 | % | (20,188) | -9 | % | 20,188 | |||||||||||||||||||||||||
Total operating expense, net | 148,966 | 23 | % | 29,415 | 12 | % | 119,551 | |||||||||||||||||||||||||
Operating profit (loss) | 70,280 | 11 | % | (46,938) | -20 | % | 117,218 | |||||||||||||||||||||||||
Other expenses: | ||||||||||||||||||||||||||||||||
Interest expense, net | 69,101 | 11 | % | 65,729 | 28 | % | 3,372 | |||||||||||||||||||||||||
Change in fair value of earnout shares | 23,236 | 4 | % | — | 0 | % | 23,236 | |||||||||||||||||||||||||
Change in fair value of warrant liability | 20,748 | 3 | % | — | 0 | % | 20,748 | |||||||||||||||||||||||||
Other expense | 161 | 0 | % | — | 0 | % | 161 | |||||||||||||||||||||||||
Total other expense, net | 113,246 | 18 | % | 65,729 | 28 | % | 47,517 | |||||||||||||||||||||||||
Loss before income tax (benefit) expense | (42,966) | -7 | % | (112,667) | -48 | % | 69,701 | |||||||||||||||||||||||||
Income tax (benefit) expense | (6,089) | -1 | % | 333 | 0 | % | (6,422) | |||||||||||||||||||||||||
Net loss | $ | (36,877) | -6 | % | $ | (113,000) | -48 | % | $ | 76,123 |
Nine Months Ended | |||||||||||||||||||||||
(in thousands) | March 27, 2022 | March 28, 2021 | Change | % Change | |||||||||||||||||||
Center revenues on a same-store basis | $ | 592,116 | $ | 224,917 | $ | 367,199 | 163 | % | |||||||||||||||
Revenues for media, new and closed centers | 51,872 | 11,244 | 40,628 | 361 | % | ||||||||||||||||||
Total revenues | $ | 643,988 | $ | 236,161 | $ | 407,827 | 173 | % |
Nine Months Ended | |||||||||||||||||||||||
(in thousands) | March 27, 2022 | March 28, 2021 | $ Change | % Change | |||||||||||||||||||
Net cash provided by operating activities | $ | 142,861 | $ | 17,123 | $ | 125,738 | 734 | % | |||||||||||||||
Net cash used in investing activities | (178,744) | (28,188) | (150,556) | 534 | % | ||||||||||||||||||
Net cash provided by financing activities | 21,752 | 36,858 | (15,106) | -41 | % | ||||||||||||||||||
Effect of exchange rates on cash | 15 | 71 | (56) | -79 | % | ||||||||||||||||||
Net (decrease) increase in cash and equivalents | $ | (14,116) | $ | 25,864 | $ | (39,980) | -155 | % |
(in thousands) | June 27, 2021 | September 26, 2021 | December 26, 2021 | March 27, 2022 | ||||||||||||||||||||||
Consolidated | ||||||||||||||||||||||||||
Net loss | $ | (126,461) | (70,125) | (55,442) | (50,338) | |||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||
Interest expense | 88,857 | 90,612 | 92,239 | 92,229 | ||||||||||||||||||||||
Income tax expense (benefit) | (1,035) | (7,403) | (7,147) | (7,457) | ||||||||||||||||||||||
Depreciation and amortization | 91,851 | 92,241 | 95,363 | 102,359 | ||||||||||||||||||||||
Share-based compensation | 3,164 | 3,116 | 44,975 | 47,169 | ||||||||||||||||||||||
Closed center EBITDA (1) | 4,039 | 3,880 | 3,374 | 3,179 | ||||||||||||||||||||||
Foreign currency exchange (gain) loss | (188) | (155) | 126 | (68) | ||||||||||||||||||||||
Asset disposition loss (gain) | (46) | (77) | (58) | (1,723) | ||||||||||||||||||||||
Transactional and other advisory costs (2) | 10,737 | 12,056 | 40,474 | 43,379 | ||||||||||||||||||||||
Charges attributed to new initiatives (3) | 531 | 540 | 489 | 396 | ||||||||||||||||||||||
Extraordinary unusual non-recurring losses (4) | 1,670 | 65 | 3,374 | 3,009 | ||||||||||||||||||||||
Changes in the value of earnouts and warrants (5) | — | — | (22,472) | 44,145 | ||||||||||||||||||||||
Adjusted EBITDA | $ | 73,119 | 124,750 | 195,295 | 276,279 | |||||||||||||||||||||
Business interruption insurance recoveries | (20,188) | — | — | — | ||||||||||||||||||||||
Annual covenant adjustments: | ||||||||||||||||||||||||||
Contra rent expense (6) | (5,305) | (4,779) | (12,537) | (20,630) | ||||||||||||||||||||||
Non-income other taxes (7) | 20,911 | 21,078 | 21,657 | 22,564 | ||||||||||||||||||||||
Optimization run-rate savings (8) | 22,682 | 16,717 | 10,396 | 4,219 | ||||||||||||||||||||||
De novo adjustment (9) | 7,022 | 17,603 | 24,388 | 14,451 | ||||||||||||||||||||||
Renovated facility adjustment (10) | 6,617 | 6,046 | 2,931 | 2,253 | ||||||||||||||||||||||
Total covenant adjustments | 31,739 | 56,665 | 46,835 | 22,857 | ||||||||||||||||||||||
Trailing twelve month Adjusted EBITDA | 73,119 | 124,750 | 195,295 | 276,279 | ||||||||||||||||||||||
Trailing twelve month Covenant Adjusted EBITDA | $ | 104,858 | 181,415 | 242,130 | 299,136 |
Fiscal Period | Total Number of Shares Purchased | Average Price Paid per Share1 | Total Number of Warrants Purchased | Average Price Paid per Warrant | Total Number of Shares and warrants Purchased as Part of Publicly Announced plans or Programs2 | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plan or Programs3 | ||||||||||||||
December 27, 2021 - January 30, 2022 | — | $ | — | — | $ | — | — | $ | 200,000 | |||||||||||
January 31, 2022 - February 27, 2022 | 72,732 | 9.01 | 2,681,922 | 2.00 | 2,754,654 | 193,981 | ||||||||||||||
February 28, 2022 - March 27, 2022 | 37,022 | 10.01 | 8,350 | 2.15 | 45,372 | 193,592 | ||||||||||||||
Total | 109,754 | $ | 9.35 | 2,690,272 | $ | 2.00 | 2,800,026 |
Exhibit No. | Description | |||||||
31.1* | ||||||||
31.2* | ||||||||
32.1* | ||||||||
32.2* | ||||||||
101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | |||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |
* | Filed herewith. |
# | Portions of this exhibit have been omitted pursuant to Item 601(a)(v) of Regulation S-K. |
BOWLERO CORP. | |||||
/s/ Brett I. Parker | |||||
Brett I. Parker | |||||
Chief Financial Officer | |||||
(Principal Financial Officer) |