By Alan Hatfield
Bowlero Corp. (NYSE: BOWL) showed strong results for the second quarter of fiscal year 2022 driven by recovery in walk-in retail revenue from the pandemic.
Bowlero saw revenue grow to over $200 million, increasing 177% year-on-year and 11% relative to pre-pandemic levels, beating analyst estimates. The return of in-person bowling also saw adjusted Ebitda grow to $66.8 million, up 26% relative to pre-pandemic levels, and also beating estimates.
CJS Securities, Inc. raised its price target for Bowlero to $14 from $13.
The world’s largest owner and operator of bowling centers successfully completed a de-SPAC transaction on Dec. 15 to list on the New York Stock Exchange.
“We are excited to see our bowling centers filled with guests and we look forward to continuing to provide the best-in-class bowling experience that they have to come to expect from Bowlero,” said Tom Shannon, Founder and Chief Executive Officer.
Bowlero added five new bowling centers in the U.S. during the period, consisting of three existing centers in Spring Hill, FL, Port St. Lucie, FL, and Vacaville, CA, along with the opening of two newly constructed centers in Oxnard, CA and Tysons Corner, VA.
“We are continuing to see significant growth, both organically, through same-store improvements, and inorganically, through unit additions,” said Brett Parker, President and CFO of Bowlero.
Bowlero posted a net loss for the quarter of $34.5 million, driven primarily by $29.1 million in deSPAC transactional expenses and $42.2 million in share based compensation and partially offset by $22.5 million in income related to the change in the fair value of earnouts and warrants. Meanwhile, cash generated by operations came in at $27.7 million on the quarter.
Alan Hatfield, Director of Research