Ladies and gentlemen, thank you for standing by. My name is Desiree, and I will be your conference operator today. At this time, I would like to welcome everyone to the Lucky Strike Entertainment Third Quarter 2026 Earnings 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 one on your telephone keypad. If you would like to withdraw your question again, press the star one. I would now like to turn the conference over to Bobby Lavan, Chief Financial Officer. Good morning to everyone on the call. This is Bobby Lavan, Lucky Strike's Chief Financial Officer. Welcome to our conference call to discuss Lucky Strike's Q3 2026 earnings. Joining me on the call today is Thomas Shannon, our Founder, Chief Executive Officer, and President. I would 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 risk factors contained in the company's filings with the SEC. Lucky Strike Entertainment 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, 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 the call over to Tom. Thanks everyone for joining today's call. In the March quarter, we delivered our second consecutive quarter of positive same-store sales comp at +0.2% and our first back-to-back positive comp performance since 2024. Total revenue grew to $342.2 million, up from $339.9 million in the prior year period. The quarter started powerfully with January same-store sales up +5.5%, we entered February with strong momentum. That momentum was disrupted by an extraordinary stretch of weather and macro events. Winter Storm Fern in late January and Winter Storm Hernando in late February each brought widespread closures, travel bans, and power outages across markets that account for a meaningful share of our footprint. Together, the two storms cost us approximately 250 basis points of comp in the quarter. On February 28th, large-scale military action in the Middle East drove a sharp spike in gasoline prices, and consumer confidence fell to its lowest level in 70 years. In this environment, a positive comp is, in our view, a credible outcome. Excluding our West Coast markets, which faced a sharper consumer drawdown in the quarter, the rest of the company actually comped plus 1.9%. As I outlined after our last call, we are committed to taking substantial and immediate action on costs and free cash flow, and that is exactly what we have done. Beginning in mid-January and accelerating through the quarter with the help of AI, we have driven a sustained reduction in in-center labor hours, approximately 97,000 hours saved over the last 12 weeks versus the prior year. A more than 16% reduction from where we were peaking in early January. In three months, we have also reduced corporate field and sales headcount, generating more than $6 million of annualized savings. The full earnings benefit of these actions will land in our fiscal fourth quarter. Orca is one of the most important developments in our business. Orca is our internal AI system, which aggregates approximately 750 million rows of operational data into a real-time decision-making layer for our managers. Orca is already managing clock-ins, clock-outs, and aggregated guest reviews across our 360-plus locations. The early results are tangible. On closeout times alone, we have reduced excess post-close hours from approximately 2,000 per week to roughly 300, generating more than $2 million of annualized savings from a single workflow. We see a similar opportunity in the high teens to mid-$20 millions of annual savings from optimizing clocking in time. We're extending Orca into pricing, marketing creative, purchasing, arcade optimization, and CapEx rationalization. While AI-related layoffs are creating some softness in corporate event demand, the longer-term effects of AI for Lucky Strike will be favorable. There is a developing thesis on Wall Street called HALO, High Asset, Low Obsolescence, that captures it well. Our analog bricks and mortar offering is one of the categories most insulated from AI disruption. Our brand consolidation continues to run ahead of schedule. We are now at approximately 115 Lucky Strike conversions out of an ultimate target of 225, with the remainder receiving an upgraded AMF presentation. We expect to be substantially complete with the rebranding work by this time next year. Each conversion runs about $150,000. On completion, we expect a meaningful step down in capital expenditures. Our key operating metric continues to be Free Cash Flow per Share, which we measure as a trailing 12-month EBITDA less CapEx divided by shares outstanding. That figure currently stands at $1.53. Our goal is to reach at least $2 over the next 12 months, a 33% increase through a combination of EBITDA growth, continued CapEx discipline, and opportunistic share repurchases, all while keeping net debt flat. Capital expenditures year-to-date are down 20% versus the prior year, $91 million compared with $114 million. The summer also looks materially better year-over-year. Our water park portfolio is set to add approximately $18 million of incremental EBITDA this summer, with a vast majority in our September quarter, thus in fiscal 2027. Our family entertainment centers continue to perform ahead of plan. Turning to guidance. Reflecting the macro reset in the back half of the March quarter, we're updating our fiscal 2026 outlook. We now expect total revenue growth of +4%-5%, adjusted EBITDA of approximately $345 million-$350 million, and capital expenditures of approximately $120 million. Gross capital expenditures are down roughly $30 million year-over-year as we focus on cash flow generation. Importantly, this revision reflects the consumer environment, not our plan. The cost actions are landing on schedule, operating leverage builds as comp recovers and the water parks come online, and we expect to exit the year with materially better cash conversion than when we entered it. With that, let's turn it over to Q&A. Thank you. We will now begin the question-and-answer session. If you have dialed in and would like to ask a question, please press star one on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star one again. If you are called upon to ask your question and are listening via speakerphone in your device, please pick up your handset to ensure that your phone is not on mute when asking your question. We do request for today's session that we please limit to one question and one follow-up question only. Thank you. Our first question comes from the line of Steve Wieczynski with Stifel. Your line is open. Yeah. Hey, guys. Good morning. Tom or Bobby, I want to go back to your commentary. You know, Tom, I guess it's your commentary around the consumer. And trying to understand your comments around the slowdown you saw as the Middle East war commenced. And I guess what I'm trying to figure out is that, you know, that type of commentary goes against pretty much, you know, I would say kind of every other leisure company that we cover. You know, think most of other consumer discretionary companies really, you know, haven't seen much of an impact from the war. I'm just trying to understand your commentary and the pressure that you saw versus other leisure companies and then maybe what you've seen from spend patterns more recently, meaning, you know, have you seen them stabilize or, you know, and/or improve? Well, good morning. Everyone we've spoken to in the space saw a significant fall off greater than ours in March. I know a local proprietor in Southern California, very well located with a, with a good demographic, they were down 17% on a comp basis. You know, Dave & Buster's hasn't reported the March period yet. That was after their most recent earnings. I think that actually the leisure-based, location-based entertainment space took a very big hit. I mean, gas prices on the West Coast were as high as $9, and consumer confidence plunged to its lowest level in 70 years. I think it would be, you know, sort of delusional to think that that didn't have an impact on the consumer in March. I think the good news about the consumer is they have a very short memory, or they adjust to new realities very quickly, and we saw a very rapid snapback. Our most recent period was effectively flat on a revenue basis. We were way up in January, then we got kicked in the teeth by two epic snowstorms that shut us down for days on end across up to half of the portfolio. There was the war where a lot of activity just stopped. We've heard again from a lot of operators, particularly those with a lot of West Coast exposure, that they were down 20% or more. We weren't down nearly that much, but there was an impact on spending, and I think it was pretty broad. Okay. Thanks for that, Tom. Second question, I You know, I'm wondering, obviously, you know, we can kinda back in I mean, we have your fourth quarter essential guidance, can you maybe help us think about the progression of same-store sales in terms of the way you guys are kinda thinking about it, you know, maybe now through, you know, through the remainder of the year? Just wanna kinda see how you guys are kinda thinking about the next, you know, call it two or three quarters. Yeah. If you look at the cadence, you know, January was up, you know, five and a half percent, February was up 1%, March was down 7%, April's flat. You know, we're effectively focused on flat right now as we wait for the consumer to kind of normalize across the shock. You know, that being said, you know, I'm surprised a little bit by your comments, Steve, 'cause I mean, jet fuel prices are through the roof and airlines are pushing on. You know, volume has to be down. Like, they may be getting more dollars, but ultimately, you know, as air travel costs rise, consumers are gonna stay close to home this summer. You know, we should see a tailwind, particularly on our water parks. You know, the one thing that's important from the water park perspective and a modeling perspective, you know, we have $18 million of EBITDA coming online, but 80% of that comes online in the September quarter. Okay. Gotcha. Thanks, guys. Appreciate it. Our next question comes from the line of Jeremy Hamblin with Craig-Hallum Capital. Your line is open. Thanks, good morning. Just building on the last point about the water parks. As you look at summer season passes, and whether or not you're getting an early read, on how sales of that are, and as you think about pricing, in an environment where consumers are challenged with some higher inflation and gas prices, are you thinking about, you know, maybe changing your pricing structure? You know, how do you invite more guests to get to your parks, you know, in the face of higher inflation? Well, thanks for the question. This is Tom. We've seen our water park sales roughly-- the season pass sales roughly flat with last year across the portfolio. You know, the business is ultimately pretty weather dependent, and I think pricing has a lot less to do with demand than weather. The season passes are always very attractively priced relative to walk-in. Usually they're priced at less than two visits, and so it's already a tremendous value offering. What we have done is upgraded all of the parks, in many cases meaningfully. The amenities, the attractions, the food and beverage, the whole package is better than it was last year, with better increases in price. You know, we feel very certainly about the product and about our market position. We're in five really good markets, and we have dominant good positions. We have the largest water parks in North Carolina, Illinois, and California. We have, you know, two-park Panhandle, which is a fantastic market. We've started booking events for the water parks and for our family entertainment centers through our normal bowling event booking mechanism. We've seen really, really strong early results, particularly in the family entertainment centers because they're open year-round. We've seen some giant closes. Really bullish on that business. A lot of it is non-comp. In the case of Wet 'n Wild Emerald Pointe in Greensboro, North Carolina, and Raging Waters in San Dimas, California, you're gonna see a lot of EBITDA coming that's incremental we didn't have last year. We also didn't have a particularly good weather year last year. I think Raging Waves only had 80 operating days, down from 90 planned opening days because it got cold late in August and also there was a lot of rain. I think we're a coiled spring on the water park side. One other comment with regard to value pricing. We have introduced two packages, one a retail package called Family Unlimited, from 11:00 A.M. to 1:00 P.M. on the weekends in the bowling centers, a time when we're typically pretty slow. Very attractively priced, two games and shoes for a very low price. A discounted birthday party offering during the same timeframe on the weekends. The first weekend, last weekend was the first weekend that we rolled out Family Unlimited. I think we had 3,000 packages sold each day, with, you know, minimal advertising and minimal awareness. I'm pretty bullish on that. We are leaning into discounting where it's appropriate, certainly at off-peak. Again, I think that the water parks were always pretty attractively priced, and now it's just gonna come down to, you know, if we have normalized weather, there's no doubt that we're gonna have a great water park summer. Got it. Just building on the kind of the capital allocation points. In terms of, you know, how you're thinking about CapEx on a go-forward basis and, you know, being maybe a little bit tighter there, I think you're looking at $110 million-$120 million for fiscal 2026. You know, how do you think about that on a go-forward basis? You know, how do you think about just kind of M&A strategy in light of looking to generate, you know, a bit more free cash flow? Right now we're spending the majority of our cash flow on the Lucky Strike conversions. That will end in a year. We're halfway through that process. Then AMF conversions, which are much less expensive because most of those centers are already branded AMF, so it's just kind of a fine-tuning. With regard to that, the CapEx is gonna continue to decline, and then it's gonna sort of make a much more serious turn down in a year as those projects are completed. There are two or three water park projects that we're looking at that would give us an expansion of capacity. We haven't made final decisions on any of those, awaiting final costs. A large adult pool and a large family pool and a action river at Raging Waves, which would add about 2,000 additional people for in-park capacity. A large slide complex at Shipwreck Island in Panama City Beach, where we have unused space. A large slide array for children at Wet 'n Wild Emerald Pointe, which would probably increase in-park capacity by 1,000-1,500 people. All of those things will be price-dependent. We'd like to do them, we're not gonna, you know, overpay for them. With regard to other CapEx, we got a lot of discipline about a year ago, where we just started paying less by being much more aggressive in the bidding process. We've taken our amusement spending down dramatically. We found that we had purchased, frankly, way more games than we needed, and there's probably somewhere between 1,000 and 2,000 extra games in the system. We haven't been spending any money on those as we burn through and reallocate new games that are in centers where they'd be better served in other centers. That's probably worth minimum $10 million to spend over the next year. So a lot. There's a lot of free cash flow generation as a result of disciplined and reduced CapEx. With regard to M&A, we're always opportunistic. You know, like to point out that we did buy Raging Waters for $45 million in January. We bought a number of other assets last year. We bought all of these at very, very attractive multiples, and on a go-forward basis, you know, we think excellent multiples. There is nothing that we're looking at currently that seems particularly attractive, either on a fundamentals basis or a pricing basis, but we're opportunistic. If something very interesting comes along, we would certainly take a good look at it. Love to do it. One thing that we're committed to is no more incremental leverage. You know, our plan is to grow free cash flow the way we define it, which is EBITDA less CapEx, from $1.53 a share to over $2 a share in the next 12 months. I think internally we're probably more ambitious than $2 is our advertised target. You know, that will come from a combination of increased EBITDA, CapEx discipline, probably reduced CapEx at some point. Most importantly, with no incremental leverage. At some point, you know, through the increase of EBITDA, we'll start to de-lever. There may come a point in time where our best use of cash is actually to de-lever. We're not at that point yet. Got it. Just one more clarification. I think you talked about on your OpEx, you know, driving maybe an annualized, I think it was high teen to nearly $20 million of savings here over time through, you know, Orca and kind of other initiatives. Just wanted to get a sense for, you know, the timing on how that plays out. You know, kind of what the June quarter looks like on your SG&A spend. You know, is that a 12-month process where you're getting, you know, majority in the first couple of quarters or, you know, any more color you might be able to share on that? Yeah. As you can see on our income statement, we brought down SG&A pretty materially. You know, we were running 37%, 39%. We spiked up in the second quarter. We aggressively took that down. That is more from headcount cuts. You know, as Tom said, we did about $6 million of annualized cuts in February. So we're pretty happy on the SG&A line. On the payroll line, you know, we have 35,000-40,000 shifts a week, where there is 20-30 minutes of wastage a shift on the in times. The out times we've already addressed. On the in times it's a massive exercise. What time should a manager come in? What time should a chef come in? What time should the front desk? We are aggressively optimized, so you should see that play out over the next few quarters. It's not gonna be an overnight cut, but it is something that is, you know, we're leaning in heavily into the data here and focusing on optimizing schedules. Got it. Thanks so much for taking the questions. Best wishes. Next question comes from the line of Eric Wold with Texas Capital. Your line is open. Thanks. Good morning, guys. Quick two questions. The first question is kind of a follow-up on the water parks. I know, Tom, you talked about a lot of things you're considering in terms of CapEx and kind of, you know, enhancements to the parks, you know, to capital. Maybe take a step back, you know, the kind of $18 million you called out for this summer of expected EBITDA. Remind us kind of what has been done to the parks in terms of low-hanging fruit that you're able to get done before this operating season versus what you expect to kind of do in the off-season coming up so that, you know, what could that $18 million kind of become easily next year before you consider those major capital improvements? Well, I'll give you- Yeah I'll give you an overview of what we've done and then I'll give it to Bobby. There was a marquee ride down for the last couple of years called The Edge at Wet 'n Wild Emerald Pointe. We repaired that, and that's back online. We made substantial cosmetic improvements to both parks in the Panhandle, and we added incremental food service in Shipwreck Island in Panama City Beach. We also added extensive incremental food service and got a liquor license in Raging Waves outside Chicago, and added a large covered event space for large group gatherings. We also did a significant cosmetic upgrades to that park and added a large video wall over the wave pool. We're gonna add a large video wall over the wave pool in season in Shipwreck Island in Panama City. We revamped parking lots, most of our parks to be able to optimize parking and capture more parking dollars. We expanded the parking field at Emerald Pointe, which is consistently at capacity before the park is at capacity. We've added several hundred spaces there and added two more parking kiosks so that you can get in more quickly in the morning on peak days. We've given a cosmetic refresh to Raging Waters', painted rides, rationalized the merchandising offerings there, where we revamped all the in-park stores and gave it a cosmetic refresh at the entrance. We did a lot of work in the off-season. The idea is that, you know, They all have different capacities, right? You know, some of them max out at 5,000, some of them max out at 9,000 or 10,000 people in park. If we get to capacity repeatedly over the course of the summer, it will really give us the justification to go ahead and make incremental CapEx, you know, which varies by park. You know, some of these projects, for example, adding 2,000 people in park capacity to Raging Waves would cost somewhere between $7.5 million and $8 million. You know, a slide tower in Panama City Beach, which would be fairly transformative to that park, is probably in the $5 million range. You know, none of these are particularly expensive, all things considered, given the volumes and values of the park. A lot of work has already been done, and there's really nothing that needs to be done from a base guest experience perspective on the parks. They all present very well, and they all have adequate food service and every other amenity that you really need. So from a- Got it. progression. Sorry, go ahead. No, go ahead, Bobby. Yeah, from a progression perspective, you know, the water parks had a new $3 million of losses on a year-over-year basis in the March quarter. Also, a few million of losses from the parks that have been there for more than a year. The new assets will add kind of $3 million of EBITDA and then about $17 million of $3 million of EBITDA in the June quarter, but then $17 million of EBITDA in the September quarter. The water parks open in May throughout May, there's a lead-up into opening them that has costs. June is your slowest month. July, August, you make a significant amount of your money. Got it. My follow-up question. Thinking about the same-store sales and kind of traffic in the March quarter. For those consumers that weren't still coming to the centers in February and March, can you talk about kind of what you saw in terms of F&B and amusement spending? Were the ones that were coming still spending at similar levels as before? You know, when you talk about the pressure you're seeing on the consumer, was it not just impacting those who wanted to come at all, but those who did come were spending a little bit less when they did come? Yeah. We saw kind of like three points of pressure. Food was strong, but alcohol continues to disconnect from food. You know, that trend, you know, we're aggressively focused on non-alc, but ultimately alcohol spending is a secular issue. Two, you know, amusements is you know, follows traffic, we saw a little bit of softness in amusement. We saw softness in California. California was down double-digits. That's where gas price spikes were the highest. That being said, New York continues to be strong. New York is where we focused our first rebrands of Lucky Strike, most of our marketing is being spent in the Northeast. As we consolidate around the Lucky Strike brand. We saw strength in New York, we saw strength in Florida, we saw strength in Illinois. You know, really where gas prices spiked the most is where we saw, you know, the most softness in March that has rebounded in April. Got it. Thank you both. Next question comes from the line of Matthew Boss with JPMorgan. Your line is open. Great, Tom. Maybe to take a step back, how have you seen your business perform historically in environments with elevated gas prices or following geopolitical shock events? Just trying to compare today to historical precedent. On the flat performance in April, excluding an upturn in the macro backdrop, should we think of that as your baseline for the fourth quarter and business trends excluding a change in the macro? Well, we've been through three crises since I started the company. There was 9/11 where we really only had 1 location in Manhattan, and then there was the great financial crisis, and then COVID. In every one of them, there was a sharp decline, followed by a, you know, sharper and more pronounced rebound. We've come out stronger out of every single exogenous shock to the system than we, than we went in. You know, our revenue coming out of COVID doubled. We were at $640 million of TTM revenue in February of 2020, and then, you know, two years later, we're at, like, $1.2 billion. These things tend to never be pronounced or particularly long. You know, it's a shock to the system. You know, most of you on the call probably live in New York or in major metropolitan areas, and you're not that affected by gas. The people who commute, working-class people with, you know, long commutes on the West Coast or other places really, really feel it. Even in South Florida where I live, I saw gas at $6.50 a gallon. I mean, I've never seen anything even approaching that. Yeah, it's a real shock to the consumer, and I think it causes everyone to sort of pause, including corporate event spending. The fact that it came back so quickly and that we were flat in April, especially given that we've taken a significant number of hours out of the system and a significant number of cost out of the system just through discipline. We've lowered our break even on a comp basis from what used to be probably you had to be up +3.5% to be flat in terms of EBITDA. That number is now probably, I don't know, ballpark one right? Effectively flat. The company has been reset in a way that makes it much more profitable, even at a very close to flat comp. You know, the event comp from where I sit now looking forward is the best I've seen in a really long time. Last month, the event business, which has underperformed retail. Retail was actually pretty strong. The walk-in customer, we were up, like, 6%. Corporate events, we were down, like, 5%. The period that we're in is the strongest early period booking that I've seen in maybe years. I think that what we went through was fairly short-lived. I think that when the war is over and gas prices normalize, the consumer will probably come back and rebound very strongly like they always have. In this environment, you know, we don't like to make predictions or give guidance and be wrong and look stupid, right. We don't give guidance sort of blindly and optimistically. You know, the problem is that we're in a very short cycle business. If you have a snowstorm that takes out the entire Northeast on a weekend in January, which is your highest revenue, you know, time of the year, where you're doing $8 million on a Saturday versus, say, $5 million in the off-season, you know, that really hurts. You can't predict it, and you can't do much to mitigate it either. We have done, I think, a really good job of controlling the things that we can control using AI and using just sort of old-fashioned, you know, common sense and discipline. We've taken a tremendous amount of cost out of the system without any negative effect on revenue, and I think revenue is poised to rebound in the core bowling business. We're already seeing it. Then you've got all the upside from the water parks, right? At the same time, you've got significantly reduced CapEx. Free cash flow is poised to expand significantly. To get back to your core question, having done this through three significant crises, the consumer always comes back and usually stronger than before the crisis. Great. Bobby, just with the cost savings actions that you cited as implemented, should we think of this year's 27% to 28% EBITDA margin as effectively a multi-year floor for the business? Just could you walk through recapture opportunity where you think the right EBITDA margin for the business multi-year should rest? Yeah. The number this year is an anomaly. Remember, this year includes. Two different structural changes that happened. One, we increased marketing spend year-over-year $15 million, right. That is 100 basis point weight on the margin that comes back or we turn off the marketing spend. It's one or the other. Either the marketing generates a return or we bring it back down to, you know, 1% of revenue versus right now we're running at, like, 2.5. Two is this year you had on the acquisition we closed at the end of July, you had negative $7 million of EBITDA. That's in this year with no revenue associated with it. That in itself is also 100 basis point drag on the margin. In the September quarter, which is in fiscal 2027, you get $20 million, $18 million of EBITDA like that, right. That you didn't have in the fiscal 2026. We are still very confident in low 30s long-term EBITDA margin. This year you just have these two anomalous facts that happened on top of, you know, in December, you know, we've already addressed this a few times, just a lot of wasted payroll that won't happen again. Helpful color. Best of luck. Next question comes from the line of Eric Handler with Roth Capital. Your line is open. Good morning. Thanks for the question. I wonder if you could talk about, given the economic pressures that are going on right now, aside from the disconnect between alcohol and food, are you seeing any other behavioral changes with food and beverage spending? Not really. I think that food in general for us, you know, we have a tailwind in that we have a new menu. We've found we've been underpriced on food, and we continue to roll out new different options. We also have recently upgraded the food menu in the AMFs. It's hard for us to see if there's any sort of disconnect in the consumer because we have such a good tailwind on the evolution of our food product. Thank you. Next question comes from the line of Michael Kupinski with Noble Capital Markets. Your line is open. Thank you, good morning, everyone. In the last quarter, events turned a corner, and I was wondering if we can just drill down a little bit about events. Corporate bookings, it looks like, I was just wondering if they were behaving a little differently than social events bookings in the current macro environment. I was just wondering if you can break out for us the weekend trends versus weekday corporate event demand and how that's tracking. Yeah. Corporate has bounced back across the country other than in California. No surprise. We're seeing strength in New York, Florida, Illinois on the corporate side. The social side is up, it's not up as much as sort of the corporate rebound in that we're seeing people switch to either online or they're just walking in at this point because we have some of these value-based options. During the week is strong. We have seen less corporate activity on the weekends. We historically have had less corporate activity, that's being offset by adult parties. We're feeling very good about the events business. Gotcha. Good. In terms of like, You were mentioning just general softness, you know, I would imagine. Is that just coming from like lower income consumers? Or, you know, how should we look at in terms of, you know, like leading indicators, like if gas prices do come down, you think things are gonna bounce back or, you know, consumer confidence, do you think that is kind of like the key category that, you know, things to watch for as leading indicators for, you know, possible things to bounce back? What are your thoughts? Yeah. If you go backwards and you look at our October, November, December cadence, the business had rebounded to +1, +2, you know, off of a, you know, weak events year the prior year, right? We get into January. January is +5.5. February is +1. In both of those months, you had two snowstorms that cost anywhere between $8 million-$9 million. We spent in the quarter an incremental $1 million on shoveling snow removal, right? Ultimately, our confidence in the awareness that our marketing is driving, the traffic that our marketing is driving, our enhanced Lucky Strike property, very high. We go into March, I look at website traffic very closely. Website traffic the day we started bombing Iran, down 20% overnight. It was just a shock to the system, right? Everybody that week was like, "What do I do? Events, what do I do? Gas prices spiking." Ultimately, it was a shock. That shock, you know, and consumer have very, you know, short memories. You look at April. April, every week, the business got better. Last week, we had a very good same-store sales comp. You know, ultimately, the consumer softness is off of what, you know, good momentum the business had. It's not that the consumer is declining, it's just that they're pulling back from the momentum we were gaining. Our guidance is saying, okay, that momentum slowed, the momentum stopped. When we get it back, particularly as these two major water parks come on, we'll see good operating leverage. Gotcha. Okay, great. Good luck. Next question comes from the line of Ian Zaffino with Oppenheimer. Your line is open. Hey, good morning, guys. This is Isaac Sellhausen on for Ian. Thanks for taking all the questions. I just had one follow-up on the corporate event side. I think in prepared remarks, you allude to some new white collar AI concerns or corporates potentially pulling back. I think you just addressed some of the corporate side in the last question, but maybe just could just touch on that piece. Thanks. You know, AI is obviously causing layoffs in Silicon Valley, and ultimately that means that, you know, they're gonna have less activity. From our perspective, the efficiencies that it creates is significant. You know, the tools we've built, you know, ultimately, you know, we have quarterly business reviews. Quarterly business reviews traditionally would take the FP&A team two -three weeks to prepare for. Now they do it in an hour. We have 300 social reviews a day, and scouring through that was three people's jobs. Now our tool, Orca, which, you know, we internally built on a Snowflake AWS cloud instance, aggregates the reviews and pushes out the reviews that are meaningful versus not meaningful, and also drives us to respond to those reviews. We're seeing so much efficiency. We know that the rest of the market is going to see efficiency, this also just means people are going to have more time on their hands, ultimately good for costs and good for people wanting to enjoy analog entertainment. Okay. Understood. Just as a follow-up, just wondering on the arcade performance, has that kind of trended with bowling activity and retail activity or just that piece? Yeah, I think that, you know, arcade performance is a little bit of just traffic, right? When we saw a little bit of pullback on traffic, ultimately that drives down arcade. You know, we are very focused on investing in price, investing in gamification. I think the, you know, arcade will always follow traffic, but, you know, that should be short-lived as we go into the summer and season pass improves traffic. Great. Thanks very much. Our last question comes from the line of David Hargreaves with Barclays. Your line is open. Okay, all my smarter questions have been asked. Could you talk about what we should expect Should we expect the revolver to continue to come down in the fourth quarter, and your fourth quarter? Then could you talk about the amount of room you have under the leverage covenant? Thank you. Yeah. We don't have a leverage covenant. We're not 40% drawn on our revolver, and we don't expect to be. I would expect the revolver to come down meaningfully throughout the September quarter. We're generating a significant amount of cash in the summer, and that is You know, we're very focused on bringing that revolver down by the end of the year, calendar year. Okay. Based on your commentary, there was a lot of noise in the quarter, I appreciate that, but it sounds like there may have been some traffic or participation declines based on, you know, gas prices and the conflict. Should that mean You know, given that your same-store sales were up a little bit, does that mean you took a lot of price in the quarter? What should we be thinking about in terms of price and mix? Thank you. Remember, we were up 5.5% in January. We were up 1% in February. We're down 7% in March, right. We took a little bit of price, but it's not, you know, meaningfully, and ultimately price, mix, and traffic are all sort of flattish. Thank you. I'm looking forward to seeing all the parts cohesively working together. Thank you. Awesome. Thank you. Ladies and gentlemen, that concludes the question and answer session. Thank you all for joining. You may now disconnect.