Q2 2023 Bowlero Corp Earnings Call
Greetings and welcome to Valero Corp, second quarter, Colby fiscal 'twenty to 'twenty, two a cold call.
A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference. Please press the pause at all on your telephone keypad. It is now my pleasure to hand, the call over to actually the small of ICR.
Good afternoon, and welcome to the Valero Corp, second quarter fiscal 2023 earnings conference call.
All participants will be in a listen only mode.
During this call the company may make certain statements that constitute forward looking statements.
Such statements reflect the company's views with respect to future events as of today and are based on our management's current expectations estimates forecasts projections assumptions beliefs and information.
These statements are subject to a number of risks and uncertainties that can cause actual events and results to differ materially from those described in the forward looking statements.
For further details concerning these risks and uncertainties. Please see our annual report on Form 10-K.
Filled with the SEC on September 15th 2022.
The company expressly disclaims any obligation to publicly update or review any forward looking statements, whether as a result of new information future developments or otherwise, except as required by applicable law.
In addition, during today's call the company will discuss non-GAAP financial measures, which we believe can be useful in evaluating performance.
Definitions and reconciliations for non-GAAP measures can be found in the earnings press release.
As a reminder, this conference is being recorded I would now like to turn the call over to Greg Parker at Bolero Corp. Brett. Please go ahead.
Good evening and welcome to the <unk> Corp earnings discussion for Q2 of fiscal year 'twenty three.
I am Brett Parker, Vice Chairman, President and CFO Bill Airport.
Thank you for joining us today.
Simply stated we had a terrific quarter.
We were pleased to report that we have continued the positive momentum from the first quarter of our fiscal year 2023 into the second quarter, one of our most seasonally significant periods.
Notably our growth was strong across various business lines.
Washington, retail leagues and events the last of which grew far beyond the estimated $10 million headwind that we faced in the prior year, resulting from the Omicron response.
During today's call. In addition to discussing our financial results, we will walk through our proprietary algorithmic leap powered quantitative management solutions or <unk> system.
Our moneyball gamification at <unk>.
And why we remain extremely optimistic about the business's growth trajectory.
Starting with the financial highlights.
In the second quarter of fiscal year, 2023, bolero generated record Q2 revenues of $273 million and record Q2, adjusted EBITDA of $97 million.
Compared with the prior year's Q2 revenue grew by $68 million or 33% and adjusted EBITDA expanded by $30 million or <unk> 45 per cent.
Compared to pre pandemic performance revenue was higher by $89 million or 48% and adjusted EBITDA increased by $44 million or 83%.
Net income for the quarter was $1 $4 million and adjusted for a noncash expense related to the valuation of the earn out shares normalized net income was $32 $2 million.
As we previously announced revenues surpassed $1 billion on a TTM basis, reaching 1.03 billion and adjusted EBITDA reached a record TTM level of 353 million, reflecting a 34, 3% margin.
As we highlighted in the first fiscal quarter. This incredible performance serves as a testament to three key differentiators.
The benefits of QM S, which is our algorithmic <unk> powered management system.
Management's ability to lead in all macro environments and the continued uptick in demand we see across the business.
Subsequent to the quarter end on February eight we successfully closed an amend and extend refinancing transaction to address the July 2020 for maturity for our term loan b.
As part of this transaction, we received a ratings upgrade from Moody's from <unk> to be won and bolstered our liquidity profile all in our net leverage neutral transaction.
We increased our term loan b to $900 million and extended the maturity to February 2028, Upsized, our revolving credit facility from $165 million to $200 million and use the incremental proceeds from the term loan to pay off our existing $86 million draw on our revolver.
During the transaction process, we tightened terms twice from initial price talk and are pleased to report that we were able to extend our term loan at sofa, plus 350 basis points and 99, 5% OID versus initial talk of $3 75 to 400 basis points and spread at 98 O I D.
We appreciate the market support and we'd like to thank our underwriters and legal advisers, who is listed on the transaction.
There is another capital markets update worth, noting in the quarter, we repurchased approximately $8 million worth of stock under our authorized stock repurchase program.
During Q2, we repurchased shares at an average price of $12 62.
Since the initiation of the buyback through the end of our second fiscal quarter, we have purchased $4 million 528447 shares at an average price of $10 59.
And in so doing returned nearly $50 million to shareholders.
Including these repurchases, we still have roughly $150 million remaining from the initial $200 million authorization.
Additionally, with these recent share repurchases, we have now more than offset the dilution from shares issued as part of our warrant redemption program executed in May 2022.
Now turning to slide four and.
In the second quarter, we added eight new centers, bringing our total center count to 327.
Since the start of fiscal 2022, we have added 41, new centers to our portfolio, including one transaction that we executed this week.
A significant majority of these came with owned real estate as well, which provides long term business stability and excellent optionality to raise cash through sale leaseback transactions or traditional mortgages in the future.
The pipeline for additional acquisitions remain remains robust and offers a compelling opportunity to further expand our portfolio.
Shifting back to our financial performance, we're pleased to share that the unprecedented demand levels across our business have persisted through the first five weeks of our third fiscal quarter.
On slide five of the materials, we have extended the release of center level data to provide additional context around the evolving macro environment, whether it's increasing talk of a weakening consumer inflation and fears of recession.
<unk> any macro headwinds that may be in play in the first 31 weeks of the fiscal year 2023, ending February 5th revenue growth remained incredibly robust growing 55% versus pre pandemic levels with same store revenue increasing 35% on the same basis when.
When compared to the same time period in prior year FY2023 total revenues were higher by 33% and same store revenues were higher by 25%.
While the results are preliminary the revenue in the most recent 13 week period, ending February 5th remains over 50% higher than the comparable pre pandemic period.
Our center level economics, the primary driver of our overall financial performance remained equally as impressive and robust as our most recent three quarters.
As highlighted on slide six center level revenue increased $67 million or 33% over the comparable prior year period with positive momentum across each of our guest segments work in retail group events and leagues and tournaments.
Relative to prior year walk in retail was up 24% and events increased a staggering 74%, partially due to the omicron related softness in the prior year.
Nevertheless growth reached impressive levels, driven by both volume and price.
This strong top line growth translated into continued material growth in center level, EBITDA, which jumped 43% year over year, and an astounding, 63% over the pre pandemic period, reaching $118 million.
Our 44% center level EBITDA margin increased 298 basis points above the prior year and 352 basis points relative to the comparable pre pandemic period.
On a consolidated basis as shown on slide seven adjusted EBITDA margin was 35, 5% and surged almost 685 basis points above the comparable pre pandemic metric. Despite some input cost inflation that we highlighted during last quarter's conference call.
This growth and margin expansion were driven by three factors.
Decades of operational experience and the implementation of these learnings through proprietary technology systems.
Revenue growth, helping to realize the inherent operating leverage in our business.
And World class talent across our organization, all of which enable us to continue to deliver margins well in excess of our peers.
As we explained during our last earnings call, we strategically invested in increased staffing levels in our first fiscal quarter ahead of our seasonally significant second and third fiscal quarters that.
That investment has clearly paid off given the robust revenue growth we experienced in the second fiscal quarter.
To provide additional color vis vis our record setting revenue and adjusted EBITDA performance this quarter, let's turn to slide eight.
From a seasonality perspective Q2 is one of our two most significant quarters aided by favorable weather conditions and elevated demand during the holiday season.
We continue to believe that the pre pandemic revenue curve remains the most indicative view of typical seasonality trends in our business as.
As mentioned earlier, we surpassed $1 billion of revenue on a TTM basis, even if we exclude the $15 million benefit of the 50 <unk> week in the fourth quarter of FY 'twenty two.
This year the rebound we have seen in both the first and second quarters vis vis event and league revenues support our confidence heading into the second half of the fiscal year, we remain focused as always on our Northstar long term value maximization of the enterprise by providing delightful experiences for our guests we remain well positioned.
<unk> to do so going forward.
As we reflect on how we have been able to achieve these stellar results. We thought it would be helpful to provide more detail about our proprietary algorithm equally powered and cloud based management software QM mass, let's move to slide nine.
At our core we are a perpetual tankers on a relentless pursuit of performance optimization and QM as a key tool we use to implement such improvement on a daily basis in.
In short it is boleros operating system.
Now, let's walk through it in more detail.
There are three core silos to QM, yes. The first is a best of best benchmarking tool, where each of our centers as compared against a relevant peer group across roughly 20 revenue and cost metrics.
This benchmarking quantify is the maximum potential dollar impact of closing the gap across these various various revenue and cost parameters versus the top performing center and its respective cohort.
Pillar number two is a forced rank optimization engine in which the system ranked the optimization opportunities in order of potential dollar impact.
Finally silo three is how do we transition from ideation to execution.
More specifically the third silo houses, our learning management system, and all relevant resources that a local manager needs to implement the changes at each respective center.
All managers in the organization have access to QM <expletive> and contract how any individual centers performing which exemplifies the data transparency that is core to our operating eats up.
Perhaps most importantly, <unk> is a self reinforcing competitive advantage.
Because each new level of operational excellence that we are able to achieve raises the performance bar for all centers in the peer set in future periods.
Additionally, we believe <unk> has significant third party commercialization potential, which we continue to evaluate on an ongoing basis.
Last quarter. The other technology initiatives that we highlighted was the launch of our gamification at Moneyball, which is designed to boost guest engagement as measured through additional visits per year and games bold per visit.
As a brief recap moneyball is an internally developed app that enables guests to participate and challenges to win cash or other prizes.
Depending on the location.
<unk> uses proprietary algorithms to determine the availability and payout levels on certain challenges commensurate with a guest skill level, which range in difficulty from as easy as breaking 102 as difficult as bowling for strikes in a row.
As shown on slide 10, Moneyball has now been rolled out to 37 centers or approximately 11% of our footprint and has reached over 10000 downloads thus far.
While it is still too early to draw definitive conclusions or share results. We are encouraged by the preliminary indications.
On this slide we have shared screenshots of the low friction sign up and land connection process. As a reminder, we have not design. This tool to be a profit center in and of itself. Rather we believe the true value add is enhanced customer engagement, which ultimately will increase wallet share <unk> average ticket size all of which is virtually.
100% contribution margin to our bottom line.
To further expand the addressable audience. We are also working on a free to play version for younger bowlers in other bowlers, who are not open to engaging with the real money product.
These tools QM as Moneyball and several other proprietary tech enabled systems, including Gems, Our group event management system, our labor management system, and our lean side ordering kiosks are part of our differentiation as demonstrated through our financial performance.
Now turning to slide 11.
In addition to our best in class margin profile, our business is highly cash flow generative as maintenance Capex has historically commanded less than 2% of our revenue.
In Q2 of FY, 'twenty, three regenerated $106 million and adjusted cash from operations versus $49 million in the comparable prior year period.
The company finished the quarter in a very strong cash position with a balance of nearly $90 million.
Insistent with our history, we redeployed the significant cash flow across our portfolio to self funded center acquisitions share buybacks Newbuild, an existing center upgrades and renovations all of which have a multiyear track record of producing attractive returns.
In summary, <unk> Q2, FY2023 performance continued to significantly outpace the pre pandemic levels and those of last year.
We set new records in terms of revenue and adjusted EBITDA generated in the second fiscal quarter over the company's multi decade history.
We are proud of the results, which demonstrate the continuation of the positive momentum we have realized since we listed as a public company in December of 2021.
Fiscal year 2023 has only continued to strengthen the momentum we experienced in fiscal year 2022, and we believe the company is poised to continue scaling through a combination of organic growth and new center additions going forward. Thank.
Thank you for your time.
Look forward to presenting again next quarter.
We will now begin a brief Q&A led by our chairman founder and CEO Thomas Shannon.
Operator, please open the line for questions.
Thank you well now be conducting a question and answer session. If you would like to ask a question. Please press star one on your telephone keypad.
Confirmation tone will indicate your line is a good question Kim.
Hi.
Hi, Chip, if you would like to remove yourself from the question queue.
For participants.
He kind of kicking that it may be necessary to pick up your handset before pressing the tacky one moment please poll for questions.
Our first question comes from Matthew Boss.
J P Morgan.
Go ahead great.
Great Thanks, and congrats on another nice quarter.
Well thank you so much.
So maybe Tom.
Just to start off if we take a step back on the topline I mean triple digit revenue growth over the past year.
30% plus here in the second quarter I mean, maybe could you just help walk through the key drivers of the inflection that you are seeing relative to that pre pandemic high single digit growth.
Maybe as we think about the total addressable market competitor consolidation new customer acquisition, just really what's driving the material inflection that you've seen and just the sustainability of it going forward.
Well, we're seeing broad demand across all of our customer segments to work in retail gas leak business and most recently a complete resurgence and the event business.
You combine.
Increased guest count with pricing that we've taken over the last couple of years in this inflationary environment. The combines to a really powerful driver of revenue that were coming off.
A lot of Choppiness in terms of prior year based on various lockdowns and other exogenous factors, so going forward youre not going to see comps of this level for.
For example, in the second quarter of last year.
The event business in December was adversely affected by the Oba chron.
Reaction.
Nevertheless, the business is very strong we see it across the board.
We are as you know very geographically diversified we're seeing strength in every market, we're seeing strength in every customer segment.
I think as Brett mentioned QM mass, we continually scientifically attack all of the revenue and cost opportunities.
Youre going to continue to see that play out over time.
Permanent part of our operating methodologies.
Digital backbone to the company if you will.
We're also seeing the benefits of consolidation where.
We're getting stronger and in many cases competitors are getting weaker because they're not investing in their centers in the same way that we are and so there is a widening gap between the quality of our product and the quality of the competitors' product you put all that together our continued.
Organic growth.
Using Q MFS and continued new build and center acquisitions.
We will continue to be growing for a long time to come just not at these dramatic levels coming out of.
From a crown and things like that.
Great and then maybe just a follow up more near term.
Kind of playing off here.
Your point about the near term some of the year over year noise have you seen any moderation in the underlying business momentum so far in the third quarter and maybe if theres any way could you just walk through any of the puts and takes that we should consider on the top line as we think about the third quarter versus the fourth just as we model the back half of the year.
Well, we haven't seen any material change in customer behavior, thus far so.
The customer remains strong.
Demand remains strong.
Can't predict what will happen over the near term or.
The remainder of the fiscal year, but we've seen nothing thus far that shows any weakening of consumer demand.
That's great best of luck.
Thank you.
Next question comes from Ian Zaffino with Oppenheimer. Please go ahead.
Hi, Thank you very much great quarter guys congratulations.
Thanks, Ian Thank you Ian.
Yeah.
So when we look at the event business and I don't know if you have this information but.
Is the number of events.
Versus pre Covid.
I'm, just trying to kind of parse out.
How much is price volume or maybe just the number of events.
And just trying to figure out how much of that event lebel has actually recovered.
Not from a revenue perspective, but maybe more for my actual number of events. Thanks.
I don't have the exact answer, but I would say that anecdotally based on what I've seen I would say that youre seeing.
Social events like walk in or not walk in but short cycle.
Adult parties being booked for a week and those are up dramatically children's birthday parties. The number of events are up significantly.
I would say corporate events are probably.
About the same.
On a basis.
A number of event basis versus.
Pre pandemic, maybe even a little bit less.
We're pretty much flat in corporate.
I would say year to date and Thats because of the price. So I think the good news here is that.
Youre seeing at least on a quasi retail basis that being the more social events huge demand and what youre seeing is the event business from a corporate perspective is coming back, but it's not fully back and so there was a.
There's a good runway left to go.
And those numbers will continue to decline.
Okay. Thank you.
And then just as far as the.
Cash flow generation can.
Can you remind us what the uses of cash flow or I know you've been buying back stock but.
Give us a sense of like what you're doing as far as Bal.
Balance sheet buybacks.
And then also maybe touch on M&A.
Are you seeing as far as multiples are they pretty consistent.
Down et cetera, any color you could give would be helpful. Thanks.
So I'll take the M&A part and then I'll turn it over the balance sheet part to Brett.
The.
Multiples have not changed I would say multiples are sort of consistent we're buying in the five two.
10 trailing.
<unk> EBIT dollars multiple.
Basis and on a forward basis, those multiples were cut in half because our margin is double the industry average.
Because with Qos and so if we're paying call. It six on a trailing basis on a forward basis. It's sub three that's remained pretty consistent.
What we're seeing is probably an increase in the volume of deals there are a lot of sellers as the proprietor base ages out looks to retire.
And so there are 3500 give or take independent flooring.
Bowling centers in this country and so it's it's just a tremendous long term opportunity for us to continue to consolidate Brett Let me turn it over the rest of the question to you.
Sure. Thanks, Tom.
As far as the balance sheet goes in terms of uses of cash.
The.
Most significant ones by far are.
The center additions the reinvestment in existing centers.
With respect to conversions.
And then the buyback is kind of the tail.
As far as that goes but the other thing that I think is important and I did note. This earlier, but just to reiterate where.
Where we are today position wise, having closed the refinancing last week.
We paid off all of the existing revolver draws and upsize the revolver simultaneously so.
There was a significant add to liquidity and we have $200 million of revolver capacity. So yes.
The goal with respect to cash generation is to reinvest as much of it as we possibly can in the business because our returns across all of those strategies have been really strong.
That being said, it's it's good to just continue to rebuild our coffers whenever we can so that we know the capital isn't going to be a constraint going forward, particularly on deal making activity.
Alright, great. Thank you very much guys good quarter again, thank you. Thank.
Thank you.
Okay.
Next question comes from Eric Handler with Ross and plan. Please go ahead.
Can we start a little bit talk about money Bowl and you said you're around 10, 11% I think penetration of your centers at the moment I'm curious, what's the goal by the end of.
Fiscal 'twenty, three or maybe the end of calendar 'twenty three.
As you think about the business can you get the 50% penetration, 75% penetration and I'm curious too if there's I know, it's still very early but any any learnings from the app.
Well, Eric It's Tom I think.
We could get to a 100% penetration by the end of the year, if we get the free play version up and running which I expect we will so.
There are a number of states where rollout to have the.
Put capital at risk model and there are other states, where we can and in those other states, where maybe an all of the states will have a free to play version, where you can win stuff without putting capital at risk just not necessarily money.
Sure.
So I don't see why we couldnt have.
The entire portfolio on one or both of those by the end of the calendar year.
Any learnings to date yeah.
Unscientific and we don't have a lot of data thus far we have more than 10000 sign ups by the way but.
When you find that people are bowling more games.
And that was the goal of this so unsigned.
Scientifically we are seeing.
The average bowler who's using this bowling more than the $2 two games I can't give you an exact exact number but we're seeing positive early trends.
Great and then.
You know as you think about ways to get people to download obviously.
Are you putting up a lot of posters or in within the facilities I imagine that's the easiest way to get people to remind people that there's this app maybe can you talk about some of the marketing initiatives behind Mike.
Sure well, we are doing the in center collateral stuff.
But this was really a boots on the ground asking people to sign up telling them about educating them and then having them do it so.
What we've done is we've put probably our best sort of culture carrier in the company at regional Vice President we have.
Who is very good at getting people to get excited behind an initiative in cell and that's how we're treating this so now we have it really is the highest operational priority in terms of what we're asking guests to do in the center.
And we're putting we're putting a lot of resources behind it both people and collateral et cetera, and since we put him in charge, we've seen an acceleration in the daily sign ups, we track it daily.
We have incentives for centers to sign people up.
So.
We have a pretty ambitious goal for this calendar year I won't give you the number but it's a big number and everyone is very focused on achieving that number.
Okay, and then just one final item on an on multiple I'm curious.
<unk> seen some of the reviews online.
The worst things being said is people are upset that it's it's not in their bowling center at this point. So I'm curious are you having is there a way for people to sign up so that they can get notifications that.
This is coming to their bowling center soon.
Don't know the answer perhaps Brett does.
Brett do you have any insight into that.
Yes, we don't have that built in today, but we do have our we have our existing customer database.
By location, where the people signed up so that we can push to them all messages that we want to related to the centers and this would certainly meet.
That hurdle in terms of being on the list of things that we would push out to let people know.
Great. Thank you, Brian and then just youre.
Youre welcome and just while we're on it I would just I would just comment on two things one in terms of the penetration in the first half of incentives when we talked about this on our prior call, but the first half of the centers or so about 60% or.
Easier than the others, because theres a lighter technological lift so that's where we're kind of pacing through that first group first where the times are a bit simpler.
And then potentially rollout more broadly as we get them.
More data and get the free to play version worked out as well as Tom said and then secondly on learning there's a lot to be learned about the customer, but really what's going on now I mean, the system is still very fresh I mean, the initial pilot was only two locations in October so.
Well.
We're we're learning every day and learning significant amounts of information.
Is within the App itself and the App getting smarter.
<unk> is continuously learning based on every ball that gets thrown.
And it's becoming a better and better predictor of the outcomes of peoples efforts.
No.
There is quite a bit of knowledge, that's being built up pretty rapidly on that front.
Very helpful. Thank you very much guys I appreciate it.
Sure thing Thanks, Eric.
Next question comes from Kathryn that's clean slate.
Securities.
Go ahead.
Hey, guys. Thanks for taking my questions.
It's our pleasure.
Can you give us an update on the.
Number of conversions, maybe how many centers are left in.
The timeline to get through those.
Well I'd say the numbers ballpark 100 mm.
The number of centers that we're currently investing in either full blown conversions or significant upgrades is astonishing, it's probably 40 plus.
And as we keep acquiring centers those centers all go on to the conversion of our upgrade list and so.
We continue to bring the fleet more upscale but as we continue to buy centers.
That list doesn't shrink so I would say ballpark Theres 100 left.
And we're in the process of upgrading about 40 currently.
Great. Thank you and then just one.
Wanted to follow up on a previous question on the events business.
Is is our price increases in line with retail or is that a different structure and.
Are you seeing a difference in the size of events, maybe the amount of people.
I imagine it's a per person charged with more people and events are you seeing any changes there. Thanks.
Well the pricing is roughly in line with the price increases we've taken on retail we try and have a correlation between the two so that one isn't materially more or less than the other.
I can't give you the specific data on the guest counts.
Do you have that information or is that something we'll have to circle back on.
We will have to circle back on the specifics, but I do know that the count is higher.
Got it thank you.
Youre welcome.
Next question comes from Michael Kim with Noble capital.
Ted.
Thanks for taking the questions I appreciate that and then I want to offer my congratulations.
On the quarter as well I mean, given the triple digit growth that you had last year and on the backs of that showing this type of growth, it's really incredible and congratulations.
A couple of things.
When when can you just kind of give us a little idea of doubt the retail price increases I know if you could just kind of give us a sense of when did you start implementing those price increases and if you have a sense of what those price increases did in terms of.
Revenue growth in this quarter. If there was a percent debt attributed to the price increases are just trying to get a sense of how significant those were in the quarter.
Well there were two there were two price increases there was there was one price increase earlier in the year that would be fully reflected in the quarter that was.
Ballpark high single digits.
And then there was another price increase that took effect late.
In December call. It the second or third week, which was really oriented towards peak pricing. So what you are paying on a Friday or Saturday night. It wasn't across the board. It was really a realization that we had outsized demand at.
Peak times and so we took.
Probably an order of about 10% it varied depending on the volume of the center from I think a low of 6% to a high of 20%. So for example in our <unk>.
High volume center, if the game price was $10, we looked at it and we said given the demand we can probably get 12.
Other centers, where the volume was lower it was more akin to call. It a 30% price increase or thereabouts. So it was scaled really based on demand that took place like I said.
At the mid point of December So you don't see it.
A tremendous impact of that.
In the quarter itself.
Gotcha and was that all in food and beverage as well or is that just on the.
The bowling and bowling shoes and things like that.
So I was just on Boeing not even on bowling shoes, just on the game price hike.
Gotcha, and then can you give us a sense of food and beverage and what because.
Kind of like what that has done because I would assume obviously that that contributes to your debt revenue as well. So can you give us a sense of how.
You anticipate that.
The segment line item to performance, we kind of go into the second half of the year.
Well I think it's been breakeven.
In line I mean, the percentages of F&B don't really move around very much they are pretty consistent.
And so.
It's really to walk in retail demand that drives our food and beverage or it's part of an event package, but it's remained pretty consistently in the call. It the mid <unk> percent of revenue for a long period of time, we take price on F&B, just like we take price on bowling.
In normal course price increases so I don't think youre going to see a meaningful shift one way or the other in terms of food and beverage as a contributor to the business.
Gotcha.
Most of your acquisitions have been more mom and pop bowling centers and things like that I was just wondering it seems like some of your competitors are struggling in certain markets are you starting to see some of the.
Competitors I guess, given the fact that you are performing so well are those becoming acquisition targets for you as well.
Yes, I mean, we look at everyone right. We look at the good performers in Nevada performers. They all fall into our opportunity set so.
Yeah, we cast a very wide net and we have a robust deal pipeline right now both in terms of acquisitions and also new builds I think youre going to see over the next 18 months and increase in Newbuild certainly over where we've been in the last year. There was some lumpiness in terms of.
Those deals were signed a long time ago and it took landlords an extended period of time to deliver the spaces for a variety of reasons youre going to start to see.
In the second half second half of this calendar year.
More new builds coming online and I think that will accelerate into calendar 'twenty four or so <unk>.
New builds are very exciting because the average unit volume is more than twice the average unit volume for the rest of the fleet and these are seven plus million dollar contributors in the case of Tysons corner, which was the center we opened in.
November of 'twenty, one and its first full year it did more than $10 million. So new builds are very exciting we have a number of a market.
Best market, you can possibly imagine locations coming online over the next 18 months, that's going to be a very exciting part of the business.
Thanks for the color and I just one last question I know.
Bowling centers obviously.
The biggest return out of that but.
You did mentioned.
A while back about the prospect of the professional bowlers Association being a platform for growth I was just wondering is that.
At this point are you still concentrating on the bowling centers or is that a prospect that we can start seeing opportunities for you to use that major league.
Kind of as a platform for further growth.
Brett would you like to take that.
Sure I mean.
The whole point of the PVA is to be a platform for growth, but it was never.
The concept was never that we would do.
Massive numbers in the PVA as a standalone venture the the value add of the TBA and the growth attributable to the PBA is.
There's a little bit harder to define because what it really is is that engagement flywheel and it's <unk>.
Driving viewership on television in order to get.
More people into the bowling centers more often to drive the aggregate profitability of the business higher. So it is a mechanism for growth, but it's really about using the PVA to attract eyeballs and then also using it as a competitive differentiator on things like leagues were great.
Leaves are certified by the PVA and theirs.
There is an attachment to the <unk>.
Aspirational aspect of the PVA and that I think has been helpful.
But we're not.
We're not focused on the PVA as a vector for Standalone growth.
Gotcha, Okay. Thanks for the color I appreciate that that's all I have thank you.
Thank you.
Yes, no further questions at this time I would like to turn the floor back over to <unk> for closing comments.
So thank you sorry go ahead.
Okay. Rick go ahead and take it sorry, if I stood on its own right.
Thanks, again to everybody for joining today's call and.
Just to recap, we had an incredibly strong quarter and achieved new milestones, including surpassing $1 billion in TTM revenue and exceeding $350 million of TTM adjusted EBITDA for the first time in our history.
And then subsequent to the quarter. We had this refinancing transaction that was very positive and we're encouraged by the sustained levels of demand that we saw through the end of the quarter, but also into early Q3 as we reported in the in the slide and we look forward to discussing our fiscal third.
<unk> financial results with the group in a few months and thanks again for your time and interest in our journey.
The conference has now concluded.
So for attending today's presentation you may now disconnect.
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Okay.
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