RICHMOND, Va. - Bowlero Corp. (NYSE:BOWL), a global leader in bowling entertainment, reported a revenue miss for the third quarter of the 2024 fiscal year, which concluded on March 31, 2024.
The company's revenue increased by 7.0% to $337.7 million compared to the same period last year but fell short of the analyst consensus estimate of $342.32 million. This shortfall prompted an 8.9% decline in the company's stock price.
Thomas Shannon, Bowlero's Founder and CEO, attributed the slow start of the third quarter to adverse weather conditions. However, he noted that the company regained traction post-January, with positive same-store comps and double-digit total growth. Despite the revenue miss, Shannon expressed optimism about the company's future, highlighting the successful opening of Lucky Strike Miami and the anticipated launch of four new locations in the next nine months.
Bowlero's net income for the quarter was $23.8 million, a stark turnaround from the prior year's loss of $32.1 million. Adjusted EBITDA came in at $122.8 million, a slight decrease from the previous year's $127.6 million. The company also reported an increase in cash balances, ending the quarter with $212 million in cash and $432 million in total liquidity, according to CFO Bobby Lavan.
Looking ahead, Bowlero expects to be near the low end of its fiscal year 2024 revenue and adjusted EBITDA guidance. This cautious outlook reflects the company's performance over the first three quarters and the challenges faced in the third quarter.
In addition to its financial results, Bowlero announced a positive update on the age discrimination claims previously filed with the EEOC. The EEOC issued closure notices, with the majority of these claims being time-barred, which may alleviate some investor concerns regarding potential legal liabilities.
The company also declared a quarterly cash dividend of $0.055 per share for the fourth quarter of fiscal year 2024, payable on June 7, 2024, to stockholders of record on May 24, 2024.
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