Good morning, and welcome to Bowlero's Third Quarter 2024 Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star, followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. I would now like to turn the call over to Bobby Lavan, Bowlero's Chief Financial Officer. Please go ahead. Good morning to everyone on the call. This is Bobby Lavan, Bowlero's Chief Financial Officer. Welcome to our conference call to discuss Bowlero's third quarter 2024 earnings. This morning, we issued a press release announcing our financial results for the period ending March 31, 2024. A copy of the press release is available in the Investor Relations section of our website. Joining me on the call today are Thomas Shannon, our Founder, Chairman, and Chief Executive, and Lev Ekster, our President. I'd like to remind you that during today's conference call, we may make certain forward-looking statements about the company's performance. Such forward-looking statements are not guarantees of future performance, and therefore, one should not place undue reliance on them. Forward-looking statements are also subject to inherent risks and uncertainties that could cause actual results to differ materially from those expressed. For additional information concerning factors that could cause actual results to differ from those discussed in our forward-looking statements, you should refer to the cautionary statements contained in our press release, as well as the risk factors contained in the company's filings with the Securities and Exchange Commission. Bowlero Corporation undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances that occur after today's call. Also, during today's call, the company may discuss certain non-GAAP financial measures as defined by SEC Regulation G. The GAAP financial measure is most directly comparable to each non-GAAP financial measure discussed, and the reconciliation of the differences between each non-GAAP financial measure and the comparable GAAP financial measure can be found on the company's website. I'll now turn this call over to Tom. Good morning. Thank you for joining us today. I am Thomas Shannon, founder, chairman, and CEO of Bowlero Corporation. Bowlero had a solid third quarter, with total revenue growth of 8.8%. January was a challenging month because of blizzards and flooding across the country. Following this weather-impacted result, our same-store comp was positive in both February and March, and our total growth was double digits. This follows the company's second quarter, in which we produced same-store sales growth of 0.2% and total company growth of 13.4%. Our results in the second and third quarters are better than most or all of our competitors in the location-based entertainment space. When we acquired Lucky Strike, we were impressed by how much food and beverage they sold to each customer. We have taken some of the learnings from Lucky Strike and begun to implement that into our F&B business. We are revamping our menus, increasing food and beverage training, and improving our hiring processes to make a strong organic impact on our business. Our new premium menu, which launched in recently opened Lucky Strike Miami, includes salads, gluten-free options, bao buns, honey chicken sandwiches, and more variations of our excellent pizza. Additionally, we continue to instill a selling culture that began last summer with the implementation of the bowling special. I'm excited about the opportunities in front of us as we train and incentivize our employees to sell more. The quarter was marked by substantial investments in traffic-driving initiatives. These initiatives, though with some added cost, have proven their worth, as evidenced by our industry-leading same-store comp growth. Lev Ekster will discuss these initiatives in a few minutes. Our best-in-class events platform continues to outperform. Event revenue increased 27% year-over-year in the third quarter, and leagues were up 9% year-over-year as we expanded social league opportunities, combined with growing brand recognition from our PBA ownership. We continued to deploy capital in acquisitions and new builds. We opened Lucky Strike Miami in the third quarter, with results moving higher weekly and above our expectations. We have 4 new builds coming online in the next nine months, with two opening in Denver this summer, one opening in Beverly Hills in early fall, and another opening in Orange County, California, in the late fall, and we are actively engaged on a pipeline of approximately a dozen more new build locations following these. Last week, we acquired Raging Waves, the largest water park in Illinois, in a transaction that came with approximately 53.5 acres of land. With this acquisition, we acquired a superb, very profitable property and partnered with a strong operator in the regional water park space at an attractive valuation. We think there is significant upside in this property. I'm also happy to provide a positive update on the status of the EEOC matter. On April 12th of this year, the EEOC issued closure notices for the approximately 73 individual age discrimination charges that have been filed, in most cases, many years ago. The notices communicate that the EEOC has dismissed the charges and will not bring suit against the company in the individual cases. Additionally, on this most recent Friday, May 3, the EEOC issued an additional closure notice for the pattern and practice-directed investigation. In that notice, the EEOC wrote, "The Commission has determined that it will not bring a civil action against Bowlero under the Age Discrimination in Employment Act." Also on Friday, we received a positive court ruling in Richmond, Virginia, that the case CNBC had breathlessly reported, unrelated to a former employee's attempt to countersue Bowlero, had been denied. Over 8.5 years, the company has vigorously denied and contested the false allegations made against it, and is pleased to see that the EEOC has closed its files. We are disappointed that media outlets, mainly CNBC, have told only one side of the story, no matter how preposterous, acting as a shill for attempts to damage our reputation and leverage an unwarranted settlement. We are pleased to report these very positive developments on behalf of our shareholders. Let me hand it over to Lev Ekster to talk about our internal initiatives, and then Bobby will review the financial details. Thanks, Tom. As I discussed last quarter, there is material white space to provide the consumer a better experience and increase wallet share in our locations. This quarter, we saw the benefit in traffic coming from two internal initiatives. First, with amusements, we have improved guest satisfaction through increased gameplay. We have seen benefits to traffic as exhibited in our February, March, and April comparatives. This should help continue to drive traffic in the slower months. Second, we have invested materially in our PBA programming. Since the start of the year, 18.5 million viewers have watched the PBA on Fox, FS1, or FS2, which is 16% more than at the same point last year. The increase is even higher among younger viewers, with the male 18-34 demo reach up 22% year-over-year. Viewers are watching more PBA than ever before, as average minutes viewed per viewer have steadily increased each year, and so far in 2024, that is already 15% higher than it was in 2019, the first year the PBA aired on Fox Sports. We have more stops and televised shows, which means more awareness and ultimately supports the value proposition of the PBA to Bowlero and the industry overall. Lastly, as Tom mentioned, we are leaning heavily into increasing food and beverage sales. This has become my primary focus. New menus and updated pricing roll out over the next few months. Additionally, in-kitchen training and the continued development of a sales culture will lead to improved F&B uptake, benefiting from the foot traffic generated by initiatives like our new Summer Season Pass, and then leading into the critical holiday period. We will continue to optimize our offerings to improve customer satisfaction, traffic, and increase spend as we look to be the out-of-home entertainment destination of choice. That is how we will continue to outperform our peers. Now, let me turn it over to Bobby. Thanks, Lev. In the third quarter of 2024, we generated total revenue ex service fee of $336.4 million, and adjusted EBITDA of $122.8 million, compared to last year of $309.1 million and adjusted EBITDA of $127.6 million. As a reminder, service fee revenue is a pass-through, a non-contributor to earnings and is being phased out. Our total growth was +8.8%, and same-store comp was -2.1%. January was a full contributor to the negative comp for the quarter. Adjusted EBITDA was $122.8 million, compared to $127.6 million in the prior year. While worse than we expected, we're excited about the top-line contribution in customer satisfaction from two meaningful traffic-driving initiatives. Amusements comp gross profit year-over-year in the quarter was -$5 million, as we invested in better experiences for the consumer. As Lev discussed, the PBA has seen significant growth this year as we increased stops and TV coverage throughout the quarter. This swung PBA to a $2 million loss in the quarter. This will continue into 4Q 2024 as we ramp up incremental sponsorship on the better results. We continue to invest in our people with our same-store comp payroll up $4 million year-over-year, which is better than last quarter at $6 million. Our cost structure, primarily employees payroll, normalizes after a double-digit bump to payroll in March 2023. Corporate expenses are down while we continue to invest in our event sales team. Non-comp centers contributed $11 million of EBITDA on approximately $35 million of revenue. Lucky Strikes outperformed our expectations with a $6 million contribution to EBITDA in the quarter, compared to $5 million in the previous year. The first 4 weeks of April 2024 have been strong, but due to the investments we made in the third quarter, we're taking our full-year guidance to the low end of the range previously disclosed. This still implies double-digit revenue growth for the year and significant revenue and EBITDA growth in the fourth quarter. Please note that in the quarter, we closed one center, which was reflected in the end center count of 352. In the quarter, we spent $13 million on growth CapEx, $9 million on new builds, and $7 million on maintenance. We spent $12 million on acquisitions. We also updated our capital guidance for the year. We are increasing our M&A spend to $220 million from $190 million. We are lowering conversions from $80 million to $70 million as we focus on internal or organic opportunities to drive returns. New builds will be higher as we continue to ramp up while adjusting new builds CapEx this year to $45 million from $40 million. We plan to continue to balance investing in our growth and rewarding our shareholders. Our liquidity at the end of the quarter was $437 million, with nothing drawn on a revolver and $212 million of cash. Net debt was $943 million, and bank credit facility net leverage ratio was 2.4x. Thank you for your time, and we look forward to taking your questions. Operator? Thank you. We will now begin our question and answer session. At this time, if you would like to ask a question, please press star followed by the number one on your telephone keypad. If you would like to withdraw your question, simply press star one again. As a reminder, please limit yourselves to one question and one follow-up only. We'll pause for just a moment to compile the Q&A roster. Thank you. Your first question comes from the line of Steven Wieczynski from Stifel. Please go ahead. Yeah, hey, guys. Good morning. So I wanna start with the, going back to the third quarter, and I guess, you know, if we go back and think about when you guided, I think it was early February, you know, you pretty much had an idea what the weather headwinds were, you know, were going to be. So I guess, you know, what we're trying to figure out is, you know, what kind of then drove the underperformance relative to the third quarter guidance? Was it really, you know, just driven by, you know, some of the investments that you guys talked about in your prepared remarks in terms of trying to drive, you know, more foot traffic? I'm just trying to, you know, tie the guidance to, you know, versus where the quarter came in. Thanks. Yeah, it was entirely cost, Steve. So, you know, we're pretty aware of where our revenue is kind of going at, but at the time of the February report, we weren't completely clear of both payroll costs and sort of the costs from investing in amusements and PBA. You know, if you go back to January is our highest profit quarter or month, and so when that month just has a massive drawdown, it's, you know, it creates a little bit of uncertainty on the cost. You know, we've gotten a handle of that in February, March, and so if it were just for February, March, we would have, you know, handily beat our numbers. But, you know, it's a miss, and we're moving forward. Sure. You know, okay, and then the second question is, you know, we've gotten a lot of questions this morning, you know, about the acquisition outside of the bowling space. And, you know, I guess first, can you help us think about, you know, what you paid for that acquisition and then maybe what that water park is doing in EBITDA? And then kind of the second part of that question is, you know, one of the questions we've gotten is, you know, why go outside the bowling, you know, let's, you know, call it arena, and look at other entertainment options, given, you know, in your presentation, you guys still, you know, believe there's a huge opportunity in terms of driving, you know, your bowling store count? Hey, this is Tom Shannon. Good morning. Yeah, there, there's still a remaining market for bowling that's quite large, but, you know, bowling in the U.S. is only a $4 billion TAM. And when you look at location-based entertainment, it's more like a $100 billion TAM. So we were presented an opportunity to buy a really beautiful asset, very well-maintained, well-located, about 53 acres, right sort of on the edge of the western suburbs of Chicago. And to partner with a really good operator with decades of experience running these at an attractive valuation, and we thought it was a great foray into looking at this sort of asset that goes beyond bowling, but shares many of the fundamental similarities with bowling. Very low variable cost. You know, we understand, I think the consumer in this segment very well. I'll say this, about a year ago, or maybe nine months ago, we, we purchased an asset called Mavrix and Octane in Scottsdale, Arizona, and half of that business was a indoor go-kart track. There was a lot of negative sentiment about, you know, buying the go-kart track and had we sort of lost faith in the bowling business. We're about seven months into that acquisition. On the run rate it's on, it's gonna do $8 million of EBITDA, against a purchase price of $33.5 million, and really no subsequent investment after that. So there are a lot of really, really good businesses in location-based entertainment, that share fundamental similarities with bowling but aren't bowling, and we're, we're availing ourselves of that. I'd rather not get into what we paid for it, but on a multiple basis, commensurate with what we've paid for the majority of our bowling acquisitions over the last couple of years. Okay, great. Thanks for the color, Tom. Appreciate it. Sure thing. The next question comes from the line of Matthew Boss from JP Morgan. Please go ahead. Great, thanks. So Tom, could you elaborate on trends that you've seen with walk-in retail traffic as the third quarter progressed? Maybe what exactly have you seen from same-center comps in April, and how best to think about expectations for comps in the fourth quarter? So Matt, you know, the problem with our business in terms of making predictions is it's very short cycle, right? So we were positive in December. We fully anticipated a positive January and, you know, we were surprised by the weather, unfortunately. But we had a positive comp in February, we had a positive comp in March, and in the period that just ended yesterday, in fact, our preliminary numbers are that on a same store basis, we're up over 6%, and on a total company basis, revenue is up 20%. So, you know, on a same store basis, we're up four out of the last five periods. I think we would've been up in January except for the weather, but regardless, the trend is very positive. It's a tough environment. We see that the consumer is spending, but the consumer is being more discerning. The good news is that I think we're winning the market share battle. You can't be up 6% when everyone else is down, you know, in some cases meaningfully down, and not be picking up market share. So I think the company is executing extremely well. We were cycling a lot of legacy costs. As you recall, around March of last year, we gave sizable increases in compensation to all of our managers in the field, between 12% and 17.5% increases, and we're just cycling that now. So you had a combination of two factors over the last year. We were comping against very, very, very high post-COVID same-store comps, year-over-year, up, you know, up double digits, up wildly. So we're comping against that, and at the same time, we institute a massive wage increase to create more stability and tenure among our managers, which has been successful in achieving its goal. So you had the combination a year ago of a very tough comp on the revenue side, and we created a very tough comp on the cost side. Those trends have now reversed themselves. We now have relatively easy same-store sales comps, and we've cycled that enormous wage increase that we put through. And that's why, partially why, on a comp basis in February, we're up 6%, which is, I mean, it's orders of magnitude versus what everyone else is doing. I take no joy in saying that, other than to illustrate the point that it's a very tough environment for everyone in this space, and 6% is a massive outperformance. It didn't happen by accident, though. It's happened by a very, very focused effort by Bobby and Lev to drive traffic in a variety of ways. Optimizing our online booking process, streamlining that, driving more traffic to the website economically. We've driven down our customer acquisition cost by half on a year-over-year basis. And now we have the Summer Pass, which is our, our season pass for the summer, where you can come in and bowl. There are various packages, but the standard package is you get two games every day for one low cost up front, akin to what the ski areas do for their winter season passes. And the pass doesn't become eligible for use until around Memorial Day. Through yesterday, we'd already sold $1.5 million against our goal in the $10 million-$15 million range. You may recall that last year we eliminated that. So again, this summer we have a lot of tailwinds. We're doing all the right things. We are driving traffic, and we're coming up against a relatively easy comp. Four out of five of the last periods, positive same-store sales on a consolidated basis. We're seeing the impact of the Lucky Strike acquisition, a handful of other individual center acquisitions, and also, year to date, we've opened three new builds in San Jose, Moorpark, California, and in Miami, and they're all outperforming. So from where I sit, the news is very, very good. Yeah, Tom, that's encouraging, particularly the 6% comp in April. I guess, what's your confidence in sustaining positive low to mid singles from here? And historically, how has bowling held up in more recessionary backdrops? And then, Bobby, I just had one for you. If you could just help walk through the drivers in the fourth quarter of the EBITDA margin expansion, just relative to the third quarter contraction, I think that would be really helpful. You know what? Like I said, Matt, it's really hard for us to make predictions because it's such a short cycle business. From where we are now, I would expect that the trend that we have of low to middle single digit same store sales comps will sustain itself through the rest of the year. I mean, we're seeing strength really in all parts of the business. For example, in the April period that just ended yesterday, the same store event comp was up over 15%. I expect when all those numbers are fully baked, it'll end up being up more like 16% or 17%. The league business is performing extremely well. We're doing well on the retail walk-in business. We have a lot of initiatives to drive organic food and beverage sales in center, which is something we've always underperformed on, but we're no longer, we're no longer going to accept that as the status quo. And that's a comprehensive redo, from training, to menus, to presentation and center and all of that. So all the things that we can control, I think, are driving this result. Now, if you have some exogenous shock to the economy or other things that we can't predict, again, you know, all of this goes out the window. But based on where we are now and based on the trend, I feel very confident that, low to mid-single digit same-store sales comp is readily achievable through the end of the calendar year. And Matt, so if you go to just the EBITDA expansion, you would expect or EBITDA margin and EBITDA dollars expansion we expect in the fourth quarter, it really comes down to, you know, we need to have a few points of positive comp to get EBITDA up. But the second that you're above a 2% comp, you know, the dollars flow through at anywhere between 75%-90%. In this circumstance, you know, we've taken costs out over the past year. There are some legacy costs. You know, we've, we've been very clear about this litigation we've had going on for the past year, and all of those are going away. So we feel very strong going into the fourth quarter. We sort of have lapped a year of frothiness plus wage increases. You know, we can see those real time, and those are flat now. At the end of the day, and we are taking costs out of our sort of centers, as well as you've seen the costs coming out of corporate. Great color. Best of luck. Great. The next question comes from the line of Jason Tilchen from Canaccord Genuity. Please go ahead. Yeah, thanks for taking the question. Morning. I'm just curious, on the events business, revenue remained really strong, up about 30% year-over-year for the second consecutive quarter. I was just wondering if you could call out anything in terms of the mix between corporate and non-corporate. Anything to comment on there would be really helpful. Yeah, we've seen a pickup in corporate birthday parties and online. So really, the mix has been strong across the board as we continue to upgrade systems, processes, and, you know, we've simplified pricing on our events platform. So, you know, we've talked pretty openly about having a pricing consultant in here. We used to have sort of 12,000 different SKUs and 100 different open bar packages. We've simplified that significantly, and the team also continues to just punch above its weight. Great, that's helpful. And just to follow up, you mentioned the pricing consultant. I think you talked about that sort of contract running up soon, and you just recently instituted some other price changes sort of across the board. I'm just curious what the customer response was to those over the past few months, and sort of any update on where, you know, any remaining pricing changes that we would expect through the balance of this year? Yeah, we took shoe pricing down at the beginning of April, which we feel like shoe is one of these things that the customer feels is overpriced. We've seen only positive reaction to it based on our traffic data. I mean, I just look at some of the centers. We took shoes down the most. They were up the most last week. We will take pricing up on food in the coming months as we roll out the new menu, and we're excited about both the pricing and the uptake there. Great. Thank you very much. The next question comes from the line of Jeremy Hamblin from Craig-Hallum Capital Group. Please go ahead. Thanks. Wanted to just come back to cost for a second here and just understand a little bit about the seasonality that we should expect here in the fourth quarter. So, you know, as you noted, Q3, typically your strongest quarter in terms of revenue, also, your highest in terms of embedded cost to operate. I imagine you get, you know, a downtick in terms of that cost to operate in Q4, but also wanted to understand in terms of some of the investments that you noted in PBA. How should we be thinking about that here as we look forward to Q4? Presumably, maybe some sequential declines in SG&A spend, and then also in terms of, you know, the cost to operate in Q4. So you'll continue to see SG&A spend coming down. So that is that has been the tip of the spear for us on how to manage inflationary dynamics. You know, from a payroll perspective, payroll, you know, in the comp centers in 3Q 2024 was $68 million. That comes down by about 15% sequentially into the fourth quarter, and that's just a seasonality dynamic. We are looking at other opportunities there. You know, from a center fixed cost perspective, that holds, because while some of the seasonal, winter seasonal issues go down, the summer utilities go up. So really, the cost flex is going to be on center payroll and any sort of cost reductions we do. And that's how you should think about sort of the system, is that SG&A sequentially down, corporate sequentially down, and, you know, payroll meaningfully steps down. And that's why in a world where we have, you know, a good mid-single-digit comp, there's just a lot of operating leverage going into the fourth quarter. Great, helpful color. And then just as a follow-up with, you know, the nice update here on EEOC, is there any, d o you have a kind of a specific call-out in terms of, you know, whether or not that's had additional costs from a, you know, litigation or legal perspective, that, you know, with that kind of in the rearview mirror, on an annualized basis, what you think the benefit might be to the company? Yeah, I would say there's been a few million dollars that flow through the income statement, but more importantly, it's been a distraction. And so we're happy to, you know, focus 100% now on our business and get this behind us. Great. Last one for me. In terms of your repurchase plan, I believe that you guys still have, you know, over $180 million remaining on that. You've removed the expiration date. You know, in prior quarters with the stock below $11, you've been pretty aggressive on buying back. The stock, of course, has generally been above that level in recent months. But, you know, wanted to get a sense if that's still kind of a range where you guys see tremendous value, and you know, how... when your window opens up on potentially doing something there. Yeah. We, you know, we look at our performance, and we evaluate where we wanna buy the stock. We would aggressively buy our stock here. In terms of the window of when it reopens? We don't comment on those kind of mechanics. Got it. Thanks, thanks for the updates and all our best wishes. The next question comes from the line of Ian Zaffino from Oppenheimer. Please go ahead. Hi, great. Thank you very much. Wanted to ask you a couple questions here. First one would be, you know, Bobby, I think you mentioned that internet, which I guess is pre-bookings, I believe, were very strong. So how does that kind of fit with how walk-in retail moves? You know, why would one be strong and then the other one kinda lagging somewhat? And then also, you know, I know you restored a lot of these midweek promotions. You know, have you seen the benefit of those? Are they kind of baked in, or, have the consumer been responding the way you expected? Thanks. Yeah, so I mean, midweek promotions coming back are great 'cause, you know, we have an easy comp from June to October, right? On top of, you know, Tom talked about Summer Season Pass, where we're expecting. You know, we had nothing last year, and we expect to kind of double from where we were two years ago. So we're really focused on traffic. Traffic doesn't have to be just walk-in retail. It's, you know, events are up, online is up, you know, 100%. And so ultimately, you know, events and online are gonna cannibalize just the walk-in retail traffic, you know, generally, 'cause there's just gonna be some people who wanna book ahead. But that's a better experience for the customer, and it ultimately allows us to upsell them. So it's a better transaction, it's higher ARPU, you know, and ultimately, it allows us to plan better and staff better. And, you know, what we're really excited about that dynamic as well, is that if we have a center that's full this weekend, Times Square is full this weekend, we don't need to spend online marketing dollars driving traffic there. But if we have a center that we know might have lower utilization in the summer, we can shift the marketing dollars from, you know, high-cost DMAs like New York to lower cost and drive traffic into those centers. So ultimately, you know, the thing that, y ou know, if you take a step back, you know, for years, you know, our business was a pricing game. Now it's a traffic game. Ultimately, you know, if we can get traffic into the centers, the incremental leverage on that is dramatic. Okay. You know, and then can you just maybe help us understand how the comps progressed throughout the quarter? You know, I know you had a tough January, but when you say tough, was that sort of down mid-teens? 'Cause if you kinda do the math or make some assumptions, that's what it seems like, and then you kinda were doing low singles in February and March. Is that kinda directionally right? If that's the case, you know, I guess you're saying you saw an acceleration to the 6% in April. Yeah. Just trying to get a sense of the cadence of the business by month. Thanks. Yeah, the first three weeks of January were worse than -10%. We ended January -7%, February was +1%, and March was +3%, and April, as Tom said, was +6%. Okay, perfect. Thank you very much. The next question comes from the line of Eric Handler from Roth MKM. Please go ahead. Yes, good morning. Thank you very much. Wondering if you could talk a little bit about all the various initiatives that are working in amusements to drive that business. Hey, good morning. Lev Ekster here. So, you know, when I started with the amusements department, we didn't have very many company-owned arcades. Today, we have over 330 centers with company-owned arcades, and we consider ourselves to be a real player in the amusement space. But I don't think the consumer has caught up fast enough considering us for that business. So all of these initiatives were to expose our amusements business to more consumers and to drive repeat visits as a result. So offering them more gameplay for a similar amount of cost to them, better prizes and redemption, winning more, and overall, just a better guest experience. Because as Bobby mentioned, we're in the traffic game. We wanna provide as good of an experience as possible to drive those repeat visits, because at the same time, we're getting better and really focused on increasing our F&B attachment when they come back, right? So amusements has become a major pull for us for traffic. And to do so, we wanted to offer a better experience, but also put a bigger spotlight on our amusements business. So, you know, we've even recently been engaged with arcade influencers, visiting our centers, sharing content. We never had that level of focus on marketing our amusements business like we have today. Getting back to our redemption prizes, we want our guests to feel like they got a great value for their spend. So we're bringing in products that are market specific with Fanatics, right? We, we want it to be a better experience, and that's a 360-degree view, more gameplay, better game selection, better prizes, more value, and as a result, repeat visits and a better sentiment towards our amusements business and our, and our locations as a whole. So, as a follow-up then, I'm assuming the more time—well, the more people spend on amusements, the more time they're spending in your centers, which I imagine then has a trickle-down effect on food and beverage. Can you talk about, like, what happens, like, if a person spends one incremental hour in your center, maybe what that translates to in incremental spending or margin? It's a good question. You know, I would say the average dwell time in our centers right now is about 105, 110 minutes. We have seen that creeping up. You know, it's still early days, but really, you know, if somebody were to order another cocktail, I mean, that's a $10-$12 increase with very little cost, and you multiply that by, you know, 40 million people, I mean, the numbers get meaningful very quick. And so, you know, we are just very focused on traffic into the summer, 'cause from our perspective, we crush it in December. You know, January, we got whipped around on the weather. We did fairly well in February, March. But we have this fixed cost structure, we have this payroll structure, and so ultimately, if we can add $50 million-$100 million of revenue in the summer, that's a meaningful change to our business, and if we give people a better experience, particularly with the season pass, then they're gonna come back in November and December. So the flywheel of getting people into the centers, giving them a premium experience, letting them engage with the new menu, the new arcade dynamic, really improves customer satisfaction. And we've seen our NPS go up. Our NPS is up, it's gone from 62-65 in the past six months, which is, you know, meaningful for us. And ultimately, we think customers are choosing us, and that's really exhibited in the fact that our comp in April is, you know, strong, and that's where we wanna be. Great. And just if I could, one quick follow-up. In terms of the new menu, how many centers have the new menu? How many centers, y ou know, how long before it rolls out everywhere? Yeah. So, you know, just to share a little bit more about how we're viewing our food and beverage attachment and the focus there. So, as Tom mentioned, it's a really big focus, and we've kind of underperformed there historically. So, you know, TTM, if our centers are averaging $0.65 in food and beverage spend every retail bowling dollar, I've seen firsthand, being here in Miami at our new location, Lucky Strike Miami, that number is closer to $2.25. So we can really see what's possible with this level of focus on food and beverage sales, but that's a comprehensive effort, right? So, as Tom mentioned, new menus, new menu items, new pricing, even the presentation of the menu going from multiple sheets to a trifold, or in Miami's case, on our luxury menu, a book. New hiring standards to get chefs and kitchen managers into our locations. We're assessing them now on a skills-based approach versus doing Zoom interviews. We're getting them into our kitchens to see how they perform, and we're filtering a lot better. More training on the soft skills of selling food and beverage. We're taking a look at our windows for food sales, right? We've had, like, this food truck design where we're reevaluating it. We're reevaluating the bar displays to be more impactful and bigger focal point to our consumer. So it's like a comprehensive approach on food and beverage sales on top of driving more traffic into our centers. And if we get that $0.65 closer to $1, really, really meaningful stuff. We're gonna be rolling out our traditional, to your question, our traditional premium menus in late May into June, and then the luxury menu I mentioned at Miami, to the Lucky Strikes and the higher end Bowleros. That'll be June into July. So by the end of July, all of our centers will be on a new menu, new pricing, and we're also giving a real look to scaling our Cheeky Monkey concept. So that came with our acquisition of Lucky Strike Fenway, as like an adjoining space, but really cool concept. We're revamping the brand identity right now and the menu there, but we've identified 10 of our existing locations that have viable restaurant spaces already built in that are just looking for a great concept, and we think Cheeky Monkey is just that. Thanks. You're welcome. The next question comes from the line of Eric Wold from B. Riley Securities. Please go ahead. Thank you. Good morning. So two questions for me. I guess one, just a quick follow-up on your earlier comments on the season, on the Summer Season Pass. You mentioned it, you've done 100 or $1.5 million against your goal of $10 million-$15 million. How does that one point five compare kind of from the start of selling to date to prior year that you sold the same or a similar offering? Running ahead of back then or kind of in line? Yeah. So that's a really interesting question because it's not necessarily apples to apples. So at its peak, the season pass sold about a little over $6 million. This year, with the launch of the Summer Season Pass, so we rebranded it from Summer Games, and we really improved the value proposition, the pricing model to the consumer. There used to be a kids pass, an adult pass option. There's just one pass now, which is similar to our bowling pricing, right? There's no kids bowling and adult bowling price. We have a basic pass and a premium pass now. The premium pass gets you a slight discount on food and beverage sales, gets you some arcade credits, so it's a better experience. But through the first 3 weeks of selling this pass, where we've reached that $1.5 million in sales, that's pre-redemption. So historically, when we sold a pass, those first three weeks, you were able to buy it and use it that visit and redeem it right away. Right now, we're calling it a presale, and you can't redeem it until May 24th. So obviously, it's increasingly harder to sell it right now, right? Because you don't get the same instant gratification of using it at the time of purchase. So the $1.5 million during this period, I think is really, really encouraging. And I think May twenty-fourth, when redemption opens up and you can purchase it and use it in that same visit, you're gonna see it explode in sales. Got it. Helpful. Then last question, kind of a higher level question. I guess there's been a lot of focus on investments over the past, you know, year plus to drive traffic, including, you know, the current quarter or the last quarter. You talked about, you know, the investment in the PBA, amusement. Obviously, you continue to focus on payroll. Do we get to a point where you feel you can take the foot off the gas of these investments and still be able to sustain any traffic gains? Or should we now think about maybe a longer term need to spend at higher levels just to kind of get to that normal traffic and then kind of expect maybe a longer term, lower margin as a result? Yeah, you're gonna see the investments come down. I think we probably overshot a little bit this quarter. You know, the new website turns on June second. The PBA renewal resets next year. And amusements, you know, we continue to tinker, but we're finding the right answer. But what I think you're gonna see is a meaningful step up over the next 12 months-18 months of revenue from these other ancillary lines, whether it's F&B, whether it's PBA, whether it's amusements. And so you'll see a very strong comp in the near term, you know, and then we'll get back to sort of a run rate, mid-single digit comp. And those investments that are driving that big step up will normalize and come down, you know, particularly the website. I mean, the website, you know, we were spending $200 per acquisition 6 months-9 months ago. Now we're spending less, but significantly less than that. So you're just seeing things coming down, and really I would call 3Q 2024 as kind of the nadir of all of that. That's very helpful. Thanks a lot. The next question comes from the line of Daniel Moore from CJS Securities. Please go ahead. Thank you. Appreciate it. A lot of the questions have been covered, but just clarifying guidance, you know, near the low end of the range. I assume that means likely to come in a little above or a little below. Should we think of that as the new midpoint? I know it's semantics, but just trying to clarify. Yeah, it should come in at the low end of the range. Okay. Like, we're always gonna have a range- And then Raging Waves- We're always gonna have a little bit of a range, right? But we feel comfortable with where we're at. Okay. And then just, I think you talked about it, and certainly Tom talked about it, but just how the Raging Waves acquisition came about, and then, given, you know, this is, obviously an instance in the, in the new opportunity and a much bigger TAM or to expand the TAM. Is it planned to operate it for a season or two before, you know, maybe expanding in that new vertical and see how things go? Just wondering about the cadence of, how you were thinking about that. Thank you again. We have a partner who has a number of these assets and manages them, some of them for the owners, some of whom are very prominent, well-known businessmen. These guys are the best in the water park business, certainly on the regional and the regional level. So you think about the market, right? It's everything below Six Flags, Cedar Fair, and SeaWorld, and there are a lot of them out there. And some of them are quite large and have a very wide moat, because as you can imagine, it's very hard to build these assets now. Costs are very high, zoning prohibitive, et cetera. So these businesses we view as being very, very attractive businesses. This particular deal was brought to us by this company, who would have financed it themselves and bought it themselves, but they found that the cap rates they were being offered in the sale-leaseback market were higher than they wanted to pay. And so we made a great deal for both sides, where they run it with an incentive structure and we own it. I think that the EBITDA can double from where we purchased it in the next couple of years. The park is beautiful, the infrastructure is first-class, it's well-located, but there were a lot of things they weren't doing that are sort of fundamental basics in the water park and amusement park business. I'll give you one example: they didn't sell alcohol. So it can be a 95-degree day, and the park is packed with 8,000 people, which is about its capacity, and you can't get a beer. So simply adding that not only enhances the experience for the adults, but gives you, you know, meaningful revenue and EBITDA upside. One of many examples. So like the bowling business, largely mom-and-pop operated, older proprietors who are natural sellers at this point. And so the deal was brought to us. We jumped on it. We've already effectuated a lot of changes. For example, applying for a liquor license months in advance of closing the transaction, which occurred 1 week ago today. That location will open around Memorial Day, and we'll have basically the entire season to evaluate how we like that business before any other potential transactions would come down the pipe. That's a very long-winded way of saying, yes, we're going to know exactly how this thing is performing and really know how well we like this business in very short order. That is helpful. Thank you again. The next question comes from the line of Randy Konik from Jefferies. Please go ahead. Hey, thanks a lot. I guess first question, Bobby and Tom. How should we just back on the bowling side of things be thinking about over the next few years, you know, the split between buy versus build on the bowling center side? Just give us your updated thoughts on how you're thinking about that part of the world. Well, you know, the decision is in some ways made by the market. So to the extent that you see more attractive deals on the buy side or the build side, you naturally allocate capital in those directions. There was a very long period of time where we didn't see a lot of really good new build opportunities. Either the location wasn't good or the economics weren't attractive, and over the last 2 years, that has changed. And so we opened 3 new builds this fiscal year. We have 4 under construction currently in Beverly Hills, 2 in Denver and 1 in Orange County, California, and about a dozen behind that, working their way through the pipeline. So what we're seeing now is, on a relative basis, much more new build activity than acquisitions. That said, you know, we'll acquire 21 or 22 existing bowling centers this fiscal year, so it's not like there was a dearth of that activity. But we're definitely seeing higher quality, more attractive new build opportunities now than we've seen historically. The good news is, is that the average unit volume of those new builds is significantly higher than the average unit volume of the typical acquisition. I say the typical acquisition because this year we bought the Lucky Strike chain, which had much higher average unit volumes than the typical centers we've seen, and by the way, is on pace, I think, to dramatically outperform our expectations and the market's expectations. So just to ballpark, through about six real months of our ownership, those assets are doing ballpark $12 million of EBITDA, and you can annualize that to a number that will be in excess of $20 million in the first year against a $90 million purchase price. I think you could naturally extrapolate that out to eventually get to $25 million or $30 million of EBITDA against a $90 million purchase price, with all of the CapEx that we'd use to enhance those properties generated out of the cash flow from those properties. So it was a really, really good acquisition year because the Lucky Strike assets are phenomenal, extremely well located in major markets. And then we got the brand for free. We love the brand. We've tested it, we had Nielsen test it, and the unaided awareness was 50% higher than it was for Bowlero. That's why all the new centers we're building, we're building under the Lucky Strike brand. So it was a really, really good year for acquisitions, in large part because of Lucky Strike. But, you know, the aggregate number in the low 20s is a pretty good number for us historically, but over the near term, you're going to see a lot of the new development be new builds. But look, a year from now, we may, we may find that there's a whole new crop of existing centers to buy. So we're opportunistic. We deploy capital in the highest IRR opportunities first, and we're not, you know, we don't limit ourselves to, at this point, strictly bowling. That's why we were able to buy Mavrix and Octane in Scottsdale. That'll add on the order of $8 million of EBITDA in its first year against a $33.5 million purchase price. There's a lot of really, really good stuff out there that I view as contiguous to our business and very similar to our business in terms of how it operates and what the levers are, and they're all in our sweet spot. Well, it's super helpful and shows you, you obviously know how to buy and build. So I guess my last question would be more for Bobby. You know, look, we had the quarter, it's printed, it's now behind us. I think it would be very helpful, you know, to people listening to the call and trying to frame out more of a long-term focus here, is how do you think about kind of long-term EBITDA margins and where they should sit over the medium to long term, and why they should be at those types of levels? That'd be super helpful. Yeah, I, y ou know, I think that based on what we've seen, particularly what we've engaged on over the past six months, we have a long runway of acquiring traffic very accretively, right? And so ultimately, I think that we'll start shifting into the higher end of the 32%-34% range on an EBITDA margin going into 2025. But over the long term, you know, we should hold those levels as we find the optimal sort of CAC to LTV transaction, or what really gets customers to keep coming and coming more. And so ultimately, you know, we will continue to invest. I expect a material step up in EBITDA over the next sort of 12 month-18 months, and then we'll grow from there as we continue to sort of invest, but invest where the EBITDA number is higher and the investments are lower as a percentage of EBITDA. So, this is a very like, sort of transitory time, in that we had a bad quarter, but we had a bad quarter from an investment perspective. We had a bad quarter, and that January was just a massive, massive drawdown. You know, if it wasn't, you know, for weather the first three weeks, this would be a very different conversation where we would have, you know, hit our numbers and continued to invest in the business. Now, we missed our numbers, but invested in the business. We're not gonna just stop investing in the business just because of some weather impact, but ultimately, I think that the next few quarters, you're gonna see significant operating leverage, 'cause we've invested in that traffic, and that traffic is coming in accretively. Super helpful. Thanks, guys. The last question comes from the line of Michael Kupinski from Noble Capital Markets. Please go ahead. Thank you for taking my questions. Just a couple of follow-up. One, you've made comments about the Lucky Strike brand. Is there a prospect for converting Bowlero locations into Lucky Strike? Oh, yeah. The plan is to convert nearly all or all of the Bowleros to Lucky Strike. We'll eventually consolidate down to two bowling brands: Lucky Strike, which will be the experientials, and AMF, which will be the traditionals. Gotcha. Thank you. Yeah. And then- We're building an infras- I'm sorry. Go ahead. We're building an infrastructure for it. Yeah, we're building an infrastructure for it right now. You'll start seeing sort of the more prominent Bowlero converting that, you know, sits in cities that have a lot of investment community. But, you know, we're starting slow, but we are rolling it out. Perfect. Just one additional question. If you could add a little bit of more color on Raging Waves. I know there's a lot for you to learn about water parks, but do you think that there's a better return on water parks than possibly opening new bowling centers? And then can you add more color on the possible roll-up opportunity in water parks in general? Well, I'm not new to the water park space. I am as an owner, but I looked to acquire a location in Florida that was very similar to the one that we acquired, similar dynamic, elderly seller, had been around for a long time. And I wasn't able to buy that center 'cause I didn't understand the concept of a sale-leaseback, and I never get to the seller's price. Our partner, the management partner on this asset, Raging Waves, that we bought, was actually the guy who bought it. He had previously been the CEO of Six Flags, left Six Flags, and then started buying these regional assets. He took that location from $11 million in revenue to $25 million, and EBITDA exploded. So, unfortunately, I sat on the sidelines. I tried to buy that asset for 11 years and couldn't quite get there, and I got intellectually arbitraged because this other guy understood the sale-leaseback market, and I didn't. Well, now I understand the sale-leaseback market. And so if you, if you think about what the potential is or the likely outcome of this asset, once we optimize EBITDA, it would be a perfect asset to flip to the sale-leaseback market... And even at these current cap rates, which are not attractive, we would, we would probably end up with proceeds in excess of the purchase price, and we'd still own on order of 50% of the cash flow. So the return would be infinite. So I think from a return profile, the returns of doing an acquisition like this are far better actually than doing a bowling alley new build. The other thing that's significant is it's more dollars, so we're able to put more dollars to work with effectively the same effort. I think that's important as we want to continue to scale. You know, doing individual bowling acquisitions at this point doesn't really move the needle. We have to do more and more of them to maintain the same percentage increase as the asset base grows in size. One of the advantages of doing these other things is you end up with assets that, when optimized, can be doing $12 million or $15 million of EBITDA versus $2 million or $3 million, or in some cases, $4 million. I think that's an important way of looking at the business. We are in no way abandoning or walking away from the bowling business. I want to make that perfectly clear. But we have the wherewithal from a management perspective and from a financial perspective of doing more than just bowling at this point. And there's a whole very interesting world, where the mechanics of the business are very similar to those of the bowling business, where it's not a leap into the unknown, where we can avail ourselves of them on an opportunistic basis. And I think you're gonna find that this is gonna be, a t the low end, this would be a unlevered, 20%+ performer, and with leverage or a sale-leaseback, would be a, you know, infinite return. So, like I've said earlier, these are all good opportunities. We pick and choose from the best and work our way down. But water, this water park investment is in no way a trade-down from a return perspective versus buying or building bowling alleys. I want to make that perfectly clear. Perfect. Thank you for that color. That's all I have. Thank you. And by the way, I would encourage all of you to look online, look at Google, look at what this water park looks like, where it's located, et cetera. It's a first-class, incredibly well-maintained and beautiful asset. This isn't just some regional collection of slides. This is themed at a very high level, and I think we were very, very fortunate to be able to get this asset. I'd encourage you to diligence it yourselves and see just what we bought here. Ladies and gentlemen, as there are no further questions at this time, this concludes today's conference call. Thank you for your participation. You may now disconnect.