Q4 2024 Bowlero Corp Earnings Call

Abby: Ladies and gentlemen, thank you for standing by. My name is Abby and I will be your conference operator today. At this time I would like to welcome everyone to the Belero fourth quarter in fiscal year 2024 earnings conference call.

Abby: My name is Abby, and I will be your conference operator today. At this time, I would like to welcome everyone to the Bowlero fourth quarter and fiscal year 2024 earnings conference call. All lines have been placed on mute to prevent any background noise, and after the speaker's remarks, there will be a question and answer session.

Speaker Change: All lines have been placed on mute to prevent any background noise, and after the speaker's remarks, there will be a question and answer session.

Abby: If you would like to ask a question during that time, simply press the star key followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one a second time.

Speaker Change: If you would like to ask a question during that time, simply press the star key, followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one a second time.

Bobbi Lavan: Thank you, and I would now like you're in the conference over to Bobbi Lavan, Chief Financial Officer. You may begin. Good afternoon to everyone on the call. This is Bobbi Lavan, Valera's Chief Financial Officer.

Speaker Change: Thank you and I would now like to turn the conference over to Bobby Lavan, Chief Financial Officer, you may begin.

Speaker Change: [inaudible]

Speaker Change: Good afternoon to everyone on the call. This is Bobby Lavan, Valera's Chief Financial Officer.

Bobbi Lavan: Welcome to our conference call that it's got Valera's fourth quarter 2024 earnings. Today, be sure to press release announcing our financial results. The period ended June 30, 2024. A copy of the press release is available in the Investor Relations section of our website.

Abby: My name is Abby and I will be your conference operator today.

Speaker Change: Welcome to our campus call that it's got the layer of fourth quarter 2024 earnings.

Abby: At this time I would like to welcome everyone to the Bowlero 4th quarter and fiscal year 2024 earnings conference call. All lines have been placed on mute to prevent any background noise and after the speaker's remarks there will be a question and answer session. If you would like to ask a question during that time simply press this star key followed by the number one on your telephone keypad. If you would like to withdraw your question press star one a second time.

Speaker Change: Today, we're sure to press release announcing our financial results prepared and did June 30, 2024.

Speaker Change: Coffee of the Preciole is available in the Investor Relations section of the website.

Bobbi Lavan: Joining me today are Thomas Shannon, our founder and Chief Executive Officer, Lev Ekster, our President. I would like to remind you that during today's conference call we may make certain forward-looking statements. Such forward-looking statements are not guarantees of future performance, and therefore one should not place undue align upon them. Forward-looking statements are also subject to the 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 a forward-looking statement, 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 SEC.

Speaker Change: Joining me today are Thomas Shannon, our founder and chief executive officer and Lev Ekster, our president.

Speaker Change: I'd like to remind you that during today's conference call we may make certain forward-looking statement, so forward-looking statements are not guaranteed a future performance, and therefore one should not place undue-reline on them.

Bobbi Lavan: Thank you and I would now like to hear in the conference over to Bobbi Lavan, Chief Financial Officer, you may begin. Good afternoon to everyone on the call. This is Bobbi Lavan, Valera's Chief Financial Officer. Welcome to our conference call that it's got Valera's 4th quarter 2024 earnings. Today we issued a press release announcing our financial results. The period ended June 30th 2024. A copy of the press release is available in the investor relations section of our website.

Speaker Change: Board-looking statements are also subject to the inherent risk and certainties. It could cause actual results that differ materially from those expressed.

Speaker Change: for additional information concerning factors that can cause actual results in differ from those discussed in a forward-looking statement. You should refer to the cautionary statements contained in our press release, as well as the risk factors contained in the companies' powerings with the SEC.

Bobbi Lavan: Valera Corporation undertakes no obligation to revise or update any forward-looking statements, reflect events or circumstances that occur after today's call.

Valera Corporation: Valera Corporation undertakes no obligation to revise for update any form of conceitment, reflect events or circumstances that occur after today's call.

Bobbi Lavan: Also during today's call, the company may discuss certain non-GAAP financial measures as defined by SEC Regulation Chief. Gap financial measures 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 we found on the company's website.

Bobbi Lavan: Joining me today are Thomas Shannon, our founder and chief executive officer, Lev Ekster, our president. I would like to remind you that during today's conference call we may make certain forward-looking statements such forward-looking statements are not guaranteed with future performance and therefore one should not place undue align funds. Forward-looking statements are also subject to the 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 a forward-looking statement, you should refer to the cautionary statements contain our press release as well as the risk factors contained in the company's following with the SEC.

Valera Corporation: Also, during today's call, he accompanied his sudden non-gap financial measures as defined by SEC Regulation G.

Speaker Change: and Gapton Antimagers most directly comparable to each non-Gapton Antimagers discussed. And the reconciliation of the differences between each non-Gapton Antimagers and the comparable Gapton Antimagers, we found on the company's website, I'll now turn the call over to Tom.

Thomas Shannon: I'll now turn the call over to Tom. Good afternoon. Thank you for joining us today.

Thomas Shannon: I am Thomas Shannon, founder and CEO of Valera Corporation. When I founded our company 27 and a half years ago, I was driven to provide customers with a world-class experience. With a positive 6.9% same-store comp and near 20% revenue growth, this was recent quarter, our results speak for themselves and we have become a premier location-based entertainment platform. In 2013, we acquired 266 centers from AMF out of bankruptcy for $270 million. We spent the past 10 years investing deliberately in rebranding the centers, upgrades across the kitchen, audiovisual, seating, technology, and overall experience. These legacy bowling centers became the best-in-class entertainment location in their communities for children's birthday parties, corporate gatherings, leagues, date nights, and group outings.

Speaker Change: Good afternoon. Thank you for joining us today. I am Thomas Shannon, founder and CEO of Bollero Corporation.

Thomas Shannon: What I found in our company 27 and a half years ago, I was driven to provide customers with a world-class experience.

Speaker Change: with a positive 6.9% same store comp and the year 20% revenue growth, this month's recent quarter, are resolved to speak for themselves.

Bobbi Lavan: Valera's corporation undertakes no obligation to revise or update any forward-looking statements, reflect events or circumstances that occur after today's call. Also during today's call, the company may discuss certain non-gap financial measures as defined by SEC regulation chief. Gap financial measures most directly comparable to each non-gap financial measure discussed and the reconciliation of the differences between each non-gap financial measure and the comparable gap financial measure we found on the company's website.

Speaker Change: and we have become a premier location based in our team in the platform.

Speaker Change: In 2013, we acquired 266 centers from AMF at a bankruptcy for $270 million.

Speaker Change: We spent the past 10 years investing deliberately in rebranding the centers of grades across the kitchen audio visual, feeding technology and overall experience.

Thomas Shannon: I'll now turn the call over to Tom. Good afternoon. Thank you for joining us today.

Speaker Change: These legacy bowling centers became the best in class entertainment location in their communities, for children's birthday parties, corporate gatherings, leagues, date nights, and group outings.

Thomas Shannon: I am Thomas Shannon, founder and CEO of Valera Corporation. When I founded our company 27 and a half years ago, I was driven to provide customers with a world-class experience with a positive 6.9% same-store comp and near 20% revenue growth, this most recent quarter, our results speak for themselves and we have become a premier location-based entertainment platform. In 2013, we acquired 266 centers from AMF out of bankruptcy for $270 million. We spent the past 10 years investing deliberately in rebranding the centers upgrades across the kitchen, audiovisual, seating, technology, and overall experience.

Thomas Shannon: At the same time, they run efficiently and operate at near 50% EBITDA margins, compared with an industry average less than half.

Speaker Change: At the same time they run efficiently and operate at near 50% EBITDA margins compared with an industry average less than half that.

Thomas Shannon: that. This playbook was repeated with our acquisition of the 85 bowling centers from Brunswick Corporation in 2014, 17 centers from Bol America in 2022, the 14 centers of Lucky Strike in 2023, and almost 50 from sole proprietors, along with building around 20 new centers in superb locations during this time period. We have spent over $2 billion on acquisitions and capital expenditures over the past 27 years, and in fiscal year 25, we project $520 million of four-wall EBITDA and more than $400 million of consolidated EBITDA. We target strong double-digit returns on invested capital, and we have the expertise to continue achieving that.

Speaker Change: This playbook was repeated with a requisition of the 85-bolling centers from Brunswick Corporation.

Speaker Change: in 2014, 17 centers from Bol America in 2022. The 14 centers of Lucky Strike in 2023, and almost 50 from sole proprietors along with building around 20 new centers in Superb Locations during this time period.

Speaker Change: We have spent over $2 billion on acquisitions and capital expenditures over the past 27 years and in fiscal year 25 we project $520 million of floor wall EBITDA and more than $400 million of consolidated EBITDA.

Thomas Shannon: These legacy bowling centers became the best-in-class entertainment location in their communities for children's birthday parties, corporate gatherings, leagues, date nights, and group outings. At the same time, they run efficiently and operate at near 50% EBITDA margins, compared with an industry average less than half, that. This playbook was repeated with our acquisition of the 85 bowling centers from Brunswick Corporation in 2014, 17 centers from Bol America in 2022, the 14 centers of Lucky Strike in 2023, and almost 50 from sole proprietors along with building around 20 new centers in superb locations during this time period.

Speaker Change: We target strong double digit returns on invested capital and we have the expertise to continue achieving that.

Thomas Shannon: We continue to drive forward with the majority of our focus on deploying capital into bowling through new builds, acquisitions, and upgrading our centers. We are currently under construction in four new centers in Beverly Hills, California; Lidera Ranch, California; Northfield; and Denver, and Southlands, also in Denver. These powerhouse locations will open between September and November of this year.

Speaker Change: We continue to drive forward with the majority of our focus on deploying capital into bowling through new builds, acquisitions, and upgrading our centers.

Speaker Change: We are currently in a construction of four new centers in Beverly Hills, California with Dera Ranch, California, Northfield, and Denver and Southlands also in Denver.

Speaker Change: These powerhouse locations will open between September and November of this year.

Thomas Shannon: In May 2024, we acquired a large water park in Yorkville, Illinois named Raging Waves. We acquired this asset along with 60 acres of real estate at an attractive valuation and underroads synergies from implementing our operating philosophies and having efficiencies at scale. Throughout our first summer, we implemented our tried-and-true practices of focusing on the consumer while also executing efficient operating standards. I am happy to say that revenue is up double-digit to your over-year, and we have identified significant capital deployment opportunities at the property to deliver powerful long-term growth. This experience with Raging Waves confirms that the Bolero operating philosophy can expand outside of bowling as we look more broadly at the location-based entertainment industry.

Thomas Shannon: We have spent over $2 billion on acquisitions and capital expenditures over the past 27 years, and in fiscal year 25, we project $520 million of four-wall EBITDA and more than $400 million of consolidated EBITDA. We target strong double-digit returns on invested capital, and we have the expertise to continue achieving that. We continue to drive forward with the majority of our focus on deploying capital into bowling through new builds, acquisitions, and upgrading our centers. We are currently under construction in four new centers in Beverly Hills, California, Lidera Ranch, California, Northfield, and Denver, and Southlands, also in Denver. These powerhouse locations will open between September and November of this year.

Speaker Change: In May 2024, we acquired a large water park in Yorkshire, Illinois named Raging Waves.

Speaker Change: We acquired this asset along with 60 acres of rural estate at an attractive valuation and under road synergies from implementing our operating philosophies and having efficiencies at scale.

Speaker Change: Throughout our first summer, we implemented our tried-and-true practices of focusing on the consumer, while also executing efficient operating standards.

Speaker Change: I am happy to say that revenue is up double digits here over year and wave identified significant capital deployment opportunities at the property to deliver powerful long-term growth.

Speaker Change: This experience with raging waves confirms that the Bollero operating philosophy can expand outside of Boeing as we look more broadly at the location based entertainment industry.

Thomas Shannon: We will continue to seek opportunities to deploy capital for double-digit returns while implementing best-in-class operating standards that drive efficiencies at scale and grow earnings well and exceed our cost of capital. We will deliver outsized returns to our investors that will continue to scale and accelerate in the coming years.

Thomas Shannon: In May 2024, we acquired a large water park in Yorkville, Illinois named Raging Waves. We acquired this asset along with 60 acres of rural estate at an attractive valuation and underroads synergies from implementing our operating philosophies and having efficiencies at scale. Throughout our first summer, we implemented our tried-and-true practices of focusing on the consumer while also executing efficient operating standards. I am happy to say that revenue is up double digits year over year and we have identified significant capital deployment opportunities at the property to deliver powerful long-term growth.

Speaker Change: We will continue to seek opportunities to deploy capital for double-digit returns, while implementing best-in-class operating standards that drive efficiencies at scale and grow earnings well in excess of our cost of capital.

Speaker Change: We will deliver outside returns to our investors that will continue to scale and accelerate in the coming years.

Lev Ekster: Let me hand it over to Lev to talk about our internal initiatives, and then Bobby will review the financial details. Thank you.

Speaker Change: Let me hand it over to Lev to talk about our internal initiatives and then Bobbi will review the financial details. Thank you.

Lev Ekster: Thanks, Tom. This summer, our season passes were a success, driving traffic during the slower summer months. As a reminder, our weekly sales from April through November are approximately 17 million dollars compared to 25 million plus starting in December through March. incremental traffic into our locations was improved; attachment helps our business during the slower months. We believe the seasonal passes improved customer satisfaction by providing value and ultimately helping them revisit our locations during the critical holiday and winter periods.

Speaker Change: Thanks Tom, this summer our season passes were a success driving traffic during the slower summer months. As a reminder, our weekly sales from April through November are approximately $17 million compared to $25 million plus starting in December through March.

Thomas Shannon: This experience with Raging Waves confirms that the Bolero operating philosophy can expand outside of bowling as we look more broadly at the location-based entertainment industry. We will continue to seek opportunities to deploy capital for double-digit returns while implementing best-in-class operating standards that drive efficiencies at scale and grow earnings well and excessive our cost of capital. We will deliver outsized returns to our investors that will continue to scale and accelerate in the coming years.

Speaker Change: Incramental traffic into our locations with improved attachment helps our business during the slow-remunce.

Speaker Change: We believe the seasonal passes improve customer satisfaction by providing value and ultimately helping them revisit our locations during the critical holiday and winter period.

Lev Ekster: As we discussed last quarter, we are leaning heavily into increasing food and beverage sales. This summer we started the rollout of all new retail F&B menus, and by the end of this month, all of our locations will be featured in a new menu that will be more compelling to our guests, featuring better presentation, a better offering, and better portions. The new menus are setting the self for success in the holidays when we will also be introducing a fully revamped eventatory menu, our top 75 locations, with an innovative offering of higher quality selections, such as Mike's Hot Honey Pizza, Spicy Rigatoni, Lobster Mac and Cheese, and Sweet Poppy Salad.

Speaker Change: As we discussed last quarter, we are leaning heavily into increasing food and beverage sales.

Speaker Change: This summer, we started the world out of all new retail FNB menus and by the end of this month, all of our locations will be featured in a new menu that will be more compelling to our guests, featuring better presentation, a better offering and better portion sizes.

Lev Ekster: Let me hand it over to Lev to talk about our internal initiatives and then Bobby will review the financial details. Thank you. Thanks, Tom. This summer, our season passes were a success driving traffic during the slower summer months. As a reminder, our weekly sales from April through November are approximately $17 million compared to $25 million plus starting in December through March. Incremental traffic into our locations with improved attachment helps our business during the slower months.

Speaker Change: The new menus are setting us up for success in the holidays. When we will also be introducing a fully revamped event catering menus, our top 75 locations with an innovative offering of higher quality selections.

Speaker Change: Hott Honey Pizza, Spicy Rigotoni, Lobster Mac and Cheese, and Sweet Poppy Salad.

Lev Ekster: Additionally, we have begun piloting tablets for the servers in our locations, which provide strong efficiencies from having to walk back and forth the point of sales stations, thereby improving the process for our associates and the experience of our guests.

Lev Ekster: We believe the seasonal passes improve customer satisfaction by providing value and ultimately helping them revisit our locations during the critical holiday and winter periods. As we discussed last quarter, we are leaning heavily into increasing food and beverage sales. This summer, we started the rollout of all new retail F&B menus and by the end of this month, all of our locations will be featured in a new menu that will be more compelling to our guests featuring better presentation, a better offering and better portion, and Scythus.

Speaker Change: Additionally, we have begun piloting tablets for the servers in our locations, which provide strong efficiencies from having to walk back and forth to point of sales stations thereby improving the process for our associates and the experience of our guests.

Lev Ekster: The Lucky Shrike brand has a new logo, which we will be hanging on three new locations opening in the next few months: two in Denver and one in Beverly Hills. More to come on the expansion of the Lucky Shrike brand. We will continue to optimize our offerings to improve customer satisfaction and traffic, while increasing guest spend as we look to become the preferred out-of-home entertainment destination of choice.

Lev Ekster: The new menus are setting the self for success in the holidays, when we will also be introducing a fully revamped eventatory menu, our top 75 locations with an innovative offering of higher quality selections, such as Mike Hot Honey Pizza, Spicy Rigatoni, lobster mac and cheese, and sweet poppy salad. Additionally, we have begun piloting tablets for the servers in our locations, which provide strong efficiencies from having to walk back and forth to point out of sales stations, thereby improving the process for our associates and the experience of our guests.

Speaker Change: The Lucky Strike Brand has a new logo which we will be hanging on three new locations, opening in the next few months, two in Denver and one in Beverly Hills. More to come on the expansion of the Lucky Strike Brand.

Speaker Change: We will continue to optimize our offerings to improve customer satisfaction and traffic, while increasing gas spend as we look to become the preferred out of home entertainment destination of choice. This is how we will continue to outperform our peers.

Lev Ekster: This is how we will continue to outperform our peers, and now we'll pass it over to Bobby.

Robert Lavan: Thanks, Webb. In the port quarter of 2024, we generated total revenue ex-service fee of 283 million, and then just to the eve dot of the 83.4 million, compared to the last year of 235 million, and just to the eve dot of 6 equal 0.5 million. As a reminder, service fee revenue is a pass-through, non-contributor earnings, and being phased out, and normalizes year over year in fiscal year 2025. Our total growth in the quarter was 20.2 percent, and same-store comp with positive 6.9 percent. April, May, and June all saw positive same-store growth. Adjusted eve dot was 83.4 million, plus 29 percent year over year as we return to positive comp in meaningful operating leverage.

Speaker Change: and now we'll pass it over to Bobby.

Bobby Lavan: Thanks, Lev, in the Port Quarter of 2024, January, total revenue, extra of the speed of 283 million. And then Jeff's to be the dot of the 83.1 million, compared to the last year of 235 million, and Jeff's to be the dot of 64.5 million.

Speaker Change: As a reminder, Robert C. revenue is a pastoral, non-conservator earned and being faced out and normalizes year or year in fiscal year 2025.

Lev Ekster: The Lucky Strike brand has a new logo which we will be hanging on three new locations, opening in the next few months, two in Denver and one in Beverly Hills, more to come on the expansion of the Lucky Strike brand. We will continue to optimize our offerings to improve customer satisfaction and traffic, while increasing guest spend as we look to become the preferred out of home entertainment that's our destination of choice.

Speaker Change: A total growth in the quarter was 22% and same to a composite is 6.9%.

Speaker Change: April May, in June, also a positive thing for growth.

Speaker Change: The Justice League of Dallas, A3.4 million, up 29% year a year as we return to positive calm and meaningful operating leverage.

Robert Lavan: In the quarter, we had a $2 million insurance through up, and PBA continued to operate at a worse and expected loss. We've caught our headwinds that we will manage through in the upcoming year, while the previously mentioned news and investments have turned positive with news and contribution outperforming the rest of the business in the quarter. Expect to achieve operating leverage around 50 percent in FY25, as we have comped the March 2023 manager wage increases in one time in COVID costs. We've found a good balance of investing in payroll and managing costs, with our same-store comp payroll flat year over year in the quarter, which is better than last quarter at negative 4.9.

Bobbi Lavan: This is how we will continue to outperform our peers, and now we'll pass it over to Bobby. Thanks, Webb. In the port quarter of 2024, generated total revenue X service fee of 283 million, and then just to the dot of the 83.4 million compared to the last year of 235 million and just to the dot of 6 equal 0.5 million.

Speaker Change: in the quarter.

Speaker Change: We had a $2 million insurance to up and PBA continued to operate at a worse than expected law.

Speaker Change: We've caught our headwinds that we'll manage through in the upcoming year. All the previously mentioned news and investments have turned positive, but the news and contribution outperforming the rest of the business in the quarter.

Bobbi Lavan: As a reminder, service fee revenue is a pass through non contributor earnings and being faced out and normalizes year over year and fiscal year 2025. Our total growth in the quarter was 20.2% in same sort of comp with positive 6.9%. April, May, and June also positive same sort of growth. Adjusted EBITDA with 83.4 million, about 29% year over year as we return to positive comp in meaningful operating leverage. In the quarter, we had a $2 million insurance through up and PBA continued to operate at a worse and expected loss.

Speaker Change: Expect to achieve operating leverage around 50% in FY25, as we have pumped the March 2023 manager wage increases in one time in Covid costs.

Speaker Change: We've found a good balance of investing in payroll and managing costs, but they're same-store-conop payroll flat year over year in the quarter, which is better than last quarter at negative four nine.

Robert Lavan: Non-contributor's contributed 9 million of Eve dot on approximately 32 million of revenue. Raging Waves, a water park in Illinois, contributed 3.5 million of revenue and 2 million of eve dot in June. The week of July 4th was a slow start to the year, July 4th following on Thursday this year, for two-day to prior year, and we have seen positive answer or comps in conventional eye.

Speaker Change: John Comstender's injury in 9 million of you to stop on approximately 32 million of revenue.

Speaker Change: Faging waves, a water park in Illinois, contributes 3.5 billion of revenue, and 2 million of the EBITDA in June.

Speaker Change: and we come to life for the first start of the year and to life for falling on a third day of the year for student data prior year. And we have seen positive and sort of constant in July.

Bobbi Lavan: We've caught our headwind that we will manage through in the upcoming year, while the previously mentioned news and investments have turned positive with using contribution outperforming the rest of the business in the quarter. Expect to achieve operating leverage around 50% in FY25 as we have comped the March 2023 manager wage increases in one time and COVID costs. We've found a good balance of investing in payroll and managing costs, but they're same sort of comp payroll flat year over year in the quarter, which is better than last quarter at negative 4.9.

Robert Lavan: In our press release today, we issued fiscal year 2025 guidance. While we are hearing concerns in the market, a weakness in the consumer. They're not keen signs of that, and at this point are gotten to total growth of mid single digits to 10% in fiscal 2025. This includes a forecast of low-to-mid single-digit same-store sales.

Speaker Change: and I'll talk to you about today. We issued fiscal year 2025 guidance.

Speaker Change: Well, we are here in concerns in the market and weakness in the consumer. They're not keen to find the bat. At this point, are guiding to total growth of mid-single digits to 10 percent in fiscal 2025.

Robert Lavan: Tom. Eva.Margians will be 32 to 34%. We spent $193 million capital expenditures in FY24. As we shift our focus to internal initiatives, we're paying back our capital expenditure plans for FY25, but a total cap X spend is expected to be $154 million. The breakdown includes growth cap X to $50 million, you build cap X to $45 million, maintenance of $44 million, and we plan to allocate $15 million of cap X to rebranding gold at our centers to Lucky Strike. We plan to continue to balance investing in our growth and rewarding our shareholders. We increase our revolver capacity the past few months at $335 million, and anticipation of an increased M&A environment.

Speaker Change: It includes a forecast of low to missing of the exchange for sales cost.

Speaker Change: Evis Tom margins will be 32-34%.

Bobbi Lavan: Non-comp centers contributed 9 million of EBITDA on approximately 32 million of revenue. Raging waves, a water park in Illinois contributed 3.5 million of revenue and 2 million of EBITDA in June. The week of July 4 was a slow start to the year and July 4 following on a Thursday this year for two data prior year, and we have seen positive and sort of come in to visualize.

Speaker Change: We spent $193 million capital expenditures in FY24.

Speaker Change: As we shift our focus to internal initiatives, we're a parent-backer capital spending your plans for F525, but a total cap-back spending expected to be 150, 4 million.

Speaker Change: The breakdown includes growth capex of 50 million, you build capex of 45 million, made into 44 million, and we plan to allocate 15 million capex to rebranding bolero centers to love these strikes.

Bobbi Lavan: In our press release today, we issued fiscal year 2025 guidance, while we are hearing concerns in the market, a weakness in the consumer. They're not keen signs of that, and at this point are gotten to total growth of mid single digits to 10% of fiscal 2025. This includes a forecast of low to mid single digit same short sale.

Speaker Change: I'm planning to continue to balance the best thing and I'm growth and rewarding our shareholders.

Speaker Change: We increased our revolver capacity to pass you on 635 million in anticipation of an increased emanating virus.

Robert Lavan: Proform for those increases are liquidity at the end of the close, $386 million, with nothing drawn on our revolver, with $67 million cash. Net debt was $1.1 billion, and the bank credit fulfilling that leverage ratio was $2.6 million.

Speaker Change: Profono for those increases are liquidity at the end of the course 386 known with nothing drawn on her balder in 67 million cash.

Bobbi Lavan: Tom. Eva. Margians will be 32 to 34%. We spent $193 million capital expenditures in FY24. As we shift our focus to internal initiatives, we're paying back our capital expenditure plans for FY25, but a total capex then expected to be $154 million. The breakdown includes growth capex to 50 million. You build capex to $45 million, maintenance of $44 million, and we plan to allocate $15 million of capex to rebranding Bowlero centers to Lucky Strike.

Speaker Change: Matt Deatt was 1.1 billion in the bank credit for filling that number of information.

Robert Lavan: Thank you for your time, and we look forward to seeing you on the road in the coming month.

Speaker Change: Thank you for your time and we look forward to seeing you on the road in the coming one.

Abby: And we will now begin our 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, press star one a second time.

Speaker Change: [inaudible]

Speaker Change: And we will now begin our question and answer session.

Speaker Change: 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, press star one a second time.

Bobbi Lavan: We plan to continue to balance investing in our growth and rewarding our shareholders. We increase our revolver capacity the past few months of $335 million in anticipation of an increased M&A environment. Proformal for those increases are liquidity at the end of the closed $386 million, with nothing drawn on our revolver with $67 million in cash. Net debt was $1.1 billion, and the bank credit for filling that leverage ratio was $2.6 million.

Abby: If you're called upon to ask your question and are listening via speakerphone on your device, please pick up your handset and ensure that your phone is not on mute when asking your question.

Speaker Change: If you're called up on to ask your question and are listening via speaker phone on your device, please pick up your handset and ensure that your phone is not on mute when asking your question.

Abby: To be able to take as many of your questions as possible, we ask that you please limit yourself to one question and one follow-up.

Speaker Change: To be able to take as many of your questions as possible, we ask that you please limit yourself to one question and one follow-up.

Steve Wysinski: Again, it is star one if you would like to join the queue, and your first question comes from the line of Steve Wysinski with Steve Full. Your line is open. Yeah, hey guys. Good afternoon.

Speaker Change: Again, it is star one if you would like to join the queue and your first question comes from the line of Steve, was in ski with Steve Ful, your line is open.

Bobbi Lavan: Thank you for your time, and we look forward to seeing you on the road in the coming months.

Robert Lavan: So Bob, as we think about the school year 25, and your expectation for load to mid-single digit, same-store-fale costs, is there a way to help us think about maybe the cadence of how the quarters might look, or I should say maybe how the quarters should play out. Just want to make sure we're thinking about how the quarters could or should come together in any headwinds or tailwinds that could impact those that load to mid-single digit outlook for the year. Thanks.

Speaker Change: Yeah, hey guys, good afternoon.

Speaker Change: So Bobby, as we've think about...

Abby: And we will now begin our 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, press star one a second time.

Speaker Change: This goes year 25 and your expectation for loads of mid-single digits seems to or fail.

Speaker Change: is there a way to help us think about maybe the cadence.

Speaker Change: of how the quarters might look, or I should say, maybe how the quarters should play out. Just want to make sure we're thinking about how the quarters could or should come together in any headwinds or tailwinds.

Abby: If you're called upon to ask your question and are listening via speakerphone on your device, please pick up your handset and ensure that your phone is not on mute when asking your question. To be able to take as many of your questions as possible, we ask that you please limit yourself to one question and one follow-up. Again, it is star one if you would like to join the queue.

Speaker Change: that could impact those, you know, that low-to-mid-single digit, you know, outwork for the year. Thanks.

Robert Lavan: The only thing I would direct you to is New Years does fall in the third quarter. And January last year was extremely weak from weather, so I would expect stronger relative performance in the third quarter, but generally we're expecting positive costs throughout the year. Okay, thanks, Bobby.

Speaker Change: I would direct you to his New Year's does fall.

Steve Wysinski: And your first question comes from the line of Steve Wysinski with Steve Full. Your line is open. Yeah, hey guys, good afternoon. So Bob, as we think about the school year 25, and your expectation for low to mid-single digit, same-store-fale costs, is there a way to help us think about maybe the cadence of how the quarters might look, or I should say maybe how the quarters should play out. Just want to make sure we're thinking about how the quarters could or should come together in any headwinds or tailwinds that could impact those, that low to mid-single digit outlook for the year. Thanks.

Speaker Change: in the third quarter, and January last year was extremely weak from weather, so I would expect stronger relative performance in the third quarter, but generally we're expecting positive to come throughout the year.

Thomas Shannon: And then Tom, maybe for you, maybe a little bit of a bigger picture question, but it seems like it's pretty clear that you've been pleased with the acquisitions outside of the bowling arena, so to speak. So I think kind of going through your press release and your presentation is pretty clear that the M&A environment still seems very healthy at this point. Is there any way to help us think about as you kind of go down that M&A path? Will it be more allocated towards traditional bowling? Or do you think that mix really starts to maybe shift a little bit more towards, you know, non-bowling amenities?

Speaker Change: Okay, thanks Bobby. And then Tom, maybe for you, maybe a little bit of a bigger picture question, but it seems like it's, you know, it's pretty clear that you've been pleased with the.

Speaker Change: you know the acquisitions outside of the you know the bowling arena so to speak so you know I think you know kind of going through your press release and your presentation is pretty clear that the M&A environment still seems very you know very healthy at this point. Is there any way to help us think about you know as you kind of go down that M&A path?

Bobbi Lavan: The only thing I would direct you to is new years does fall in the third quarter, and January last year was extremely weak from weather. So I would expect stronger relative performance in the third quarter, but generally we're expecting positive costs throughout the year. Okay, thanks, Bobby.

Speaker Change: You know, will it be more allocated towards, you know, towards traditional bowling? Or do you think that mix really starts to maybe shift a little bit more towards, you know, non bowling amenities? Thanks.

Thomas Shannon: Thanks.

Thomas Shannon: What do you want? Well, we'll do every attractive bowling deal we can do whether it's a new build or the acquisition of a center. You know, we're about to open four new centers and marquee locations. The pipeline for new builds is very strong after that, with about a dozen deals percolating, and these are much larger on average and the acquisitions, right? So the average acquisition we do has revenue in the $3 million range; the average center that we're opening now is, you know, seven and a half to eight million on average. So even though we're not doing as many, the new builds are quite large in terms of their contribution.

Speaker Change: Well, won't do every attracted Boeing deal we can do whether it's a new build or the acquisition of the center.

Steve Wysinski: And then Tom, maybe for you, maybe a little bit of a bigger picture question, but it seems like it's pretty clear that you've been pleased with the, you know, the acquisitions outside of the, you know, the bowling arena, so to speak. So, you know, I think, you know, kind of going through your press release and your presentation is pretty clear that the M&A environment still seems very, you know, very healthy at this point.

Speaker Change: We're back to open four new centers in Marquill, locations, the pipeline for new builds is very strong after that with about a dozen deals percolating. And these are much larger on average than the acquisitions, right? So the average acquisition we do.

Speaker Change: has revenue in the $3 million range, the average center that we're opening now is, you know, seven and a half to eight million on average. So, um...

Thomas Shannon: Is there any way to help us think about, you know, as you kind of go down that M&A path, you know, will it be more allocated towards, you know, towards traditional bowling, or do you think that mix really starts to, you know, maybe shift a little bit more towards, you know, non-bowling amenities. Thanks. Well, what do you do every attractive bowling deal we can do, whether it's a new build or the acquisition of the center?

Speaker Change: Even though we're not doing as many, the new builds are quite large in terms of their contribution.

Thomas Shannon: Similarly, we're very pleased with the result set of ranging waves, and we're opportunistic. So we'll continue to look at every opportunity within location-based entertainment, and we'll apply the same very tight deal screen that we always did with bowling. But yeah, we're casting a wider net now, but it's really dependent upon the deals and the returns that we're going to get from the deals.

Speaker Change: Similarly, we're very pleased with the results out of region waves and we're opportunistic. So we'll continue to look at every opportunity within location-based entertainment and we'll apply the same very tight deal screen that we always did with Boeing.

Thomas Shannon: You know, we're about to open four new centers and marquee locations. The pipeline for new builds is very strong after that with about a dozen deals percolating and these are much larger on average in the acquisitions right to the average acquisition we do has revenue in the $3 million range, the average center that we're opening now is, you know, seven and a half to eight million on average. So even though we're not doing as many, the new builds are quite large in terms of their contribution.

Speaker Change: But yeah, we're casting a wider net now, but it's really dependent upon the deals and the returns that we're going to get from the deals.

Thomas Shannon: Okay, great.

Thomas Shannon: Thanks, I appreciate it.

Speaker Change: Okay, great. Thanks, that's appreciate it, great. Thank you, thank you.

Matthew Boss: And your next question comes from the line of Matthew Boss with JP Morgan. Your line is open. Thanks and congrats on a nice quarter.

Speaker Change: oh

Speaker Change: And your next question comes from the line of Matthew Boss with JP Morgan. Your line is open.

Matthew Boss: Thanks and congrats on the night's quarter.

Thomas Shannon: So Tom, maybe could you speak or elaborate on the inflection and traffic and same store sales that you saw as the fourth quarter progressed and really what you've seen so far in the first quarter and maybe taking a step back. Just if you could walk through what you think is differentiating your experience rather relative to other parts of leisure in this economic backdrop.

Matthew Boss: So Tom, maybe could you speak or elaborate on the inflection and traffic and same store sales that you saw as the fourth quarter progressed and really, you know, what you've seen so far in the first quarter and maybe taking a step back.

Thomas Shannon: Similarly, we're very pleased with the result set of ranging waves and we're opportunistic. So we'll continue to look at every opportunity within location based entertainment. And we'll apply the same very tight deal screen that we always did with bowling. But yeah, we're casting a wider net now, but it's really dependent upon the deals and the returns that we're going to get from the deals. Okay, great. Thanks. I appreciate it.

Speaker Change: Just if you go to walk through what you think is differentiating your experience, rather relative to other parts of leisure in the economic backdrop.

Thomas Shannon: So I'll sort of answer that from a bigger picture perspective, and I'll hand it off to lead to talk about some of the tactical things that we've done. But look, bowling is a very good, enduring business. We've spent a lot of money to build really wonderful, excuse me, wonderful centers. That are the best product available. They're easily accessible. They're in your community, and it's still a very good value. I think that the fundamentals of bowling get overlooked. Bowling is an absolutely fantastic business. We love it. We're committed to it. It's extremely high margin, and it's very resilient.

Lev Ekster: So, I'll sort of answer that from a bigger pick-up, pick-shared perspective and then I'll hand it off to Lev to talk about some of the tactical things that we've done. But look, bowling is a very good enduring business. We've spent a lot of money to build really wonderful.

Matthew Boss: And your next question comes from the line of Matthew boss with JP Morgan. Your line is open. Thanks and congrats on a nice quarter. So Tom, maybe could you speak or elaborate on the inflection and traffic and same store sales that you saw as the fourth quarter progressed and really what you've seen so far in the first quarter and maybe taking a step back. Just if you could walk through what you think is differentiating your experience rather relative to other parts of leisure in this economic backdrop.

Lev Ekster: So, he's with wonderful centers.

Speaker Change: Then are the best product available, they're easily accessible, they're in your community and it's still a very good value. I think that the fundamentals of bowling get overlooked. The bowling is an absolutely fantastic business. We love it, we're committed to it.

Thomas Shannon: When we started to comp down last year, realized that we were pumping down off of unbelievably high results that came out of COVID. So pumping down off being up 40% in three years, you know, it's a calm down, but it was, it was in no way a repudiation of the strength of bowling. Bowling is as strong as it's ever been during. We have the best product. Most importantly, we have the best management team. I believe in location based entertainment. And so you take the fundamentals of bowling, you take the product that we've built, which is best in class, and you combine that with our data-driven, very results-oriented culture.

Lev Ekster: It's extremely high margin and it's very resilient. When we started to calm down last year, realize that we were coming down off of unbelievably high results, it came out of COVID, so mmm.

Thomas Shannon: Yeah, so I'll sort of answer that from a bigger picture perspective and I'll hand it off to lead to talk about some of the tactical things that we've done. But look, bowling is a very good enduring business. We've spent a lot of money to build really wonderful, excuse me, wonderful centers that are the best product available. They're easily accessible. They're in your community and it's still a very good value. I think that the fundamentals of bowling get overlooked.

Speaker Change: Comping down off being up 40% in three years. You know, it's a countdown, but it was, it was in no way a reputation of the strength of balling. Balling is.

Speaker Change: As strong as it's ever been, it's enduring, we have the best product, the most importantly, we have the best management team I believe in location-based entertainment.

Speaker Change: and so you take the fundamentals of bowling, you take the product that we've built, which is best in class.

Thomas Shannon: Bowling is an absolutely fantastic business. We love it. We're committed to it. It's extremely high margin and it's very resilient. When we started to comp down last year, realized that we were pumping down off of unbelievably high results that came out of COVID. So pumping down off being up 40% in three years, you know, it's a calm down. But it was it was in no way a repudiation of the strength of bowling.

Lev Ekster: and you combine that with our data-driven, very results-oriented culture and you end up with wide-out performance versus our peers. So let me turn it over to Lev to talk about some of the things we did specifically over the last few months to get to this result.

Thomas Shannon: And you end up with a wide out performance versus our peers.

Lev Ekster: So let me turn it over to left talk about some of the things we did specifically over the last few months to get to this result. So, as Tom mentioned, obviously we do bowling incredibly well, and we continue to invest in our facilities. We want to have the best bowling centers in every market that we're in. But we're not sitting on our hands, and these results don't happen by accident.

Lev Ekster: So, as Tom mentioned, obviously we do bowling incredibly well and we continue to invest in our facilities and want to have the best bowling centers in every market that we're in.

Thomas Shannon: Bowling is as strong as it's ever been, it's enduring. We have the best product. Most importantly, we have the best management team, I believe in location based entertainment. And so you take the fundamentals of bowling. You take the product that we've built, which is best in class, and you combine that with our data driven very results oriented culture. And you end up with a wide out performance versus our peers.

Lev Ekster: but we're not sitting on our hands and these results don't happen by accident. So you read that we launched.

Lev Ekster: So you read that we launched a brand new summer season pass this summer. We didn't launch it last summer at all. We didn't just relaunch a form of summer pass. We totally revamped it. We removed all the complexity from the product. We made the value proposition to a consumer very, very clear. And we sold over $8.5 million worth of summer season passes. How do we know there was a clear value proposition? That pass was redeemed the summer 1.6 million times. So our consumers got a great value for it. And as a result, our MPS score continues to climb.

Speaker Change: a brand new summer season pass this summer. We didn't launch it last summer at all. We didn't just relaunch a former pass, we totally revamped it. We removed all the complexity from the product. We made the value proposition to a consumer very, very clear.

Speaker Change: and we sold over $8.5 million with the summer season passes.

Lev Ekster: So let me turn it over to left talk about some of things we did specifically over the last few months to get to this result. So, as Tom mentioned, obviously we do bowling incredibly well, and we continue to invest in our facilities. We want to have the best bowling centers in every market that we're in.

Speaker Change: How do we know it was a clear value proposition?

Speaker Change: That task was redeemed the summer 1.6 million times, so our consumers got a great value for it. And as a result...

Lev Ekster: And I think we're starting to take market share.

Speaker Change: R.M.F.S. score continues to climb.

Lev Ekster: So you know we mentioned we were investing in our musins business. I continue to improve. We're adding better games. We're maintaining our centers a lot better than other competitors. You're never going to walk into one of our Cades and see half the games down or prizes not stopped. We're upgrading our redemption counters. We're launching locations now with a brand new redemption store called Prize Vault. Our food and beverage menus are improving. We've released all new food and beverage menus across our traditional centers all the way up to our premier centers, the Lucky Strikes. And we're starting to see growth there.

Speaker Change: and I think we're starting to take market share. So...

Lev Ekster: But we're not sitting on our hands and these results don't happen by accident. So, you read that we launched a brand new summer season pass this summer. We didn't launch it last summer at all. We didn't just relaunch it for from our past, we totally revamped it. We removed all the complexity from the product. We made the value proposition to a consumer very, very clear. And we sold over $8.5 million worth of summer season passes. How do we know it was a clear value proposition? That past was redeemed the summer 1.6 million times. So, our consumers got a great value for it.

Speaker Change: You know, we mentioned we were investing in our amusement business. I can see me simply.

Speaker Change: We're adding better games, we're maintaining our centers, a lot better than other competitors. You're never going to walk into one of our caves and see how the games down or prizes not stopped. We're upgrading our redemption counters.

Speaker Change: We're launching locations now with a brand new redemption store called Price Vault.

Speaker Change: Our food and beverage menus are improving, we've released all new food and beverage menus across our traditional centers.

Speaker Change: All the way up to our premier centers, the walking stripes, and we're starting to see growth there. We're investing in the food and beverage team to grow sales and just offer a better product there. So we're just upping our game across the enterprise and I think you're starting to see that in the results.

Lev Ekster: We're investing in the food and beverage team to grow sales. And just offer a better product there.

Lev Ekster: So we're just upping our game across the enterprise. And I think you're starting to see that in the results. And we've continued to see those results. These first two pairs of the fiscal, which are both positive. And as Bobby mentioned, we expect to see that throughout the rest of the fiscal. So great.

Lev Ekster: And as a result. So, our MPS score continues to climb. And I think we're starting to take market share.

Lev Ekster: So, you know, we mentioned we were investing in our musins business. I continue to improve. We're adding better games. We're maintaining our centers a lot better than other competitors. You're never going to walk into one of our Cades and see half the games down or prizes not stopped. We're upgrading our redemption counters. We're launching locations now with a brand new redemption store called prize vault. Our food and beverage menus are improving.

Speaker Change: and we continue to see those results.

Speaker Change: He's first two periods of the fiscal, which are both positive, and as Bobby mentioned, we expect to see that throughout the rest of the fiscal.

Robert Lavan: And then maybe just to follow up, Bobby, are there any puts and takes to consider as a release to EBITDA margin this year embedded within the FY25 outlook and just procurement nest DNA, any efficiencies that you've identified to support the bottom line. You know, let's, let's, we're, we're always going to focus on costs that we're not going to be one of those companies that's how we drive earnings growth. You know, from our perspective, you know, we have hired a procurement team. We like that. Really, you know, at the end of the day, you know, as the comp goes up, as the acquisitions roll through.

Speaker Change: Great, and then maybe just to follow up Bobby, it any puts and takes to consider as a really to eat the dot margin this year embedded within the FY-25 outlook and just procurement and SGNA, any efficiencies that you've identified to support the bottom line.

Lev Ekster: We've released all new food and beverage menus across our traditional centers. All the way up to our premier centers, the lucky strikes. And we're starting to see growth there. We're investing in the food and beverage team to grow sales and just offer a better product there. So, we're just upping our game across the enterprise. And I think you're starting to see that in the results. And we continue to see those results.

Speaker Change: i

Speaker Change: You know, let's, let's, we're, we're always going to focus on cost and that's, we're not going to, you know, be one of those companies that that's how we drive earnings growth.

Speaker Change: You know, from our perspective, you know, we have hired procurement team, we like that. Really, you know, at the end of the day, you know, at the comp goes up as the acquisition is rolled through. And we continue to manage sort of, you know, the costs at the centers. That's where you'll see different coverage.

Robert Lavan: And we continue to manage sort of, you know, the costs at the centers. That's where you'll see the earning coverage.

Lev Ekster: These first two paris of the fiscal, which are both positive. And as Bobby mentioned, we expect to see that throughout the rest of the fiscal. Great.

Speaker Change: The End

Randy Koneck: And your next question comes from the line of Randy Koneck with Jeffries. Your line is open. Hey, thanks a lot.

Bobbi Lavan: And then maybe just to follow up Bobby, it any puts and takes to consider as a relates to EBITDA margin this year embedded within the FY25 outlook. And just procurement nest DNA, any efficiencies that you've identified to support the bottom line.

Speaker Change: and your next question comes from the line of Randy Konek with Jeffries. Your line is open.

Robert Lavan: I guess Bobby, first for you. Any thoughts on how we should be thinking about the load amidst the logic, Tom, as relates to the first quarter. And I think you spoke about. The near shift impacting 2Q.

Randy Konek: Hey, thanks a lot. I guess Bobby first for you any thoughts on how we should be thinking about.

Speaker Change: the Lord of the Mixing of the Jacobian.

Bobbi Lavan: You know, let's, let's, we're, we're always going to be focused on costs that we're not going to, you know, be one of those companies that that's how we drive earnings growth. You know, from our perspective, you know, we have hired procurement team. We like that really, you know, at the end of the day, you know, as the comp goes up as the acquisitions roll through. And we continue to manage sort of, you know, the cost at the centers. That's where you'll see the earning coverage.

Speaker Change: as relates to the first quarter and I think you can see spoke about the near shift impacting the two-q.

Robert Lavan: Does that kind of mean that the 2Q comp should kind of fall without essentially outside the annual range of comp guidance, just curious there.

Speaker Change: Is that kind of mean that the two teams should kind of fall without potentially outside the annual rain to come, gotten just curious there and then also on the guidance.

Robert Lavan: And then also on the guidance. Does the annual guide include, or I guess exclude unannounced, or include any MNA that you're thinking of in the guidance. Just thoughts there. Thanks. It does not include MNA. It does include the new build. So MNA would effectively could drive you to the higher end of sort of the guidance and above. From a cadence perspective, I'd like to say sort of in the low single digits, mid single digits, as we go through the year. This quarter, we still have some time to go. But you know, I would stay in the low single digits, the mid single digits range.

Speaker Change: Does the annual guide include, or I guess, exclude on announce, or include any M&A that you're thinking of in the guidance to solve this. Thanks.

Speaker Change: It does not include M&A, it does include the new build.

Randy Konik: And your next question comes from the line of Randy Koneck with Jeffries. Your line is open. Hey, thanks a lot. I guess Bobby, first for you, any thoughts on how we should be thinking about the low to mid single digit comp as relates to the first quarter. And I think you spoke about the near shift impacting the 2Q.

Speaker Change: So M&A would.

Speaker Change: You know, effectively could drive you to the higher ends of the sort of the guidance and above.

Bobbi Lavan: Is that kind of mean that the 2Q comp should kind of fall without potentially outside the annual range of comp guidance, just curious there. And then also on the guidance. Does the annual guide include, or I guess exclude unannounced or include any M&A that you're thinking of in the guidance just thoughts there. Thanks. It does not include M&A. It does include the new build. So M&A effectively could drive you to the higher end of sort of the guidance and above.

Speaker Change: for Medicaid and perspective. I'd like to say sort of in the low-single visits, mid-single visits as we go through the year. You know, this quarter, you know, we still have some time to go, but you know, I would stay in the low-single visits to mid-single visits, right?

Randy Koneck: All right, super helpful.

Lev Ekster: And then I guess Lev, you gave some good perspective on the season's past success. Have you guys looked at what the lift was from food and beverage of season past, kind of redemption people that visited on the past versus those that visited not on the past. You see an extra lift in food and beverage on those season past attendees.

Speaker Change: Super helpful. And then I guess Lev, you gave some good perspective on the season pass to us. Have you guys looked at what the list was from food and beverage of season pass?

Speaker Change: kind of redemption people that visited on the past versions. Those that visited not on the past, you see an actual listening beverage on those seasoned past.

Thomas Shannon: And then Tom, you know, you gave some good perspective on, you know, widening the net for potential MNA to include a lot of different types of location-based entertainment.

Speaker Change: Attendees.

Speaker Change: and then Tom, you know, gives you good perspectives on, you know, widening the net for potential MNA.

Bobbi Lavan: From a cadence perspective, I'd like to say sort of in the low single digits, mid single digits, as we go through the year. You know, this quarter, you know, we still have some time to go. But you know, I would stay in the low single digits, the mid single digits range. All right, super helpful.

Tom: It could include a lot of...

Thomas Shannon: What would be probably helpful to us on the call is to give some perspective of what you don't want to look at from an entertainment perspective. What types of businesses or areas of the entertainment economy? Are you not, you know, and interested in, or you don't think are particularly good businesses or business model. Thanks.

Speaker Change: different types of location based on our team and what will be a probably helpful to us on the call is to give some perspective of what you don't.

Speaker Change: I want to look at from an entertainment perspective what types of businesses or areas of the entertainment economy are you not, you know, and interesting in or you don't think are particularly good businesses or business model. Thanks.

Lev Ekster: And then I guess Lev, you gave some good perspective on the season path to progress.

Lev Ekster: So I'll just hit the first part of your question about the F and B, and I don't want, I don't want it to be limited to that because I think the attachment across our musins business is also significant thanks to the past and all of these visits. You heard that our musins performance is now outpacing the right, the other revenue lines. And I think it's because when we created this past, we put focus around those segments. So with a premier with a premium pass, you were getting 15% off food and not non-alcoholic beverage. You were also getting a $5 arcade reload clearing every visit.

Lev Ekster: Have you guys looked at, you know, what the lift was from food and beverage of season path kind of redemption people that visited on the path versus those that visited not on the path. You see an extra lift in food and beverage on those season path attendees.

Speaker Change: So I'll visit the first part of your question about the F&B and I don't want it to be limited to that because I think the attachment across our museum's business is also significant thanks to the past and all of these visits.

Speaker Change: You heard that our amusement's performance is now outpacing the revenue lines and I think it's because when we created this past

Thomas Shannon: And then Tom, you know, you gave some good perspective on, you know, widening the net for potential M&A to include a lot of different types of location-based entertainment.

Speaker Change: We put focus around.

Thomas Shannon: What would be probably helpful to us on the call is to give some perspective of what you don't want to look at from an entertainment perspective. What types of businesses or areas of the entertainment economy are you not, you know, and interesting in or you don't think are particularly good businesses or business models? Thanks.

Speaker Change: So, those segments. So, with a premier opinion pass, you were getting 15% off food and not an alcoholic beverage. You were also getting a $5 arcade reload during every visit. And as a passholder, you were able to get one time per visit.

Lev Ekster: And as a pass holder, you were able to get one time per visit a discounted arcade card. And so, again, we wanted to drive a lot of value to pass holders. The amount of visits we got out of it was pretty obvious. Food and beverage sales were up. Now, it could be attributed to all the new menus that we mentioned. It could also be attributed to the visitation, but overall, I think the consumer is quite clearly telling us that they're loving the past, they're loving the product that we're delivering to them when they come.

Speaker Change: a discounted arcade card. And so again, we wanted to drive a lot of values to pass holders. The amount of visits we got out of it was pretty obvious.

Lev Ekster: So I'll just hit the first part of your question about the F&B. And I don't want to be limited to that because I think the attachment across our musins business is also significant thanks to the past and all of these visits. You heard that our musins performance is now outtacing the right, the other revenue lines. And I think it's because when we created this past, we put focus around those segments. So with a premium past, you were getting 15% off food and not alcoholic beverage.

Speaker Change: Good and beverage sales are up now. It could be attributed to all the new menus that we mentioned. It could also be attributed to the divvization, but...

Speaker Change: Overall, I think the consumer is quite clearly telling us that they're loving the past, they're loving the product, we're delivering to them when they come, and that's driven our decision.

Lev Ekster: And that's driven our decision to launch for the first time ever a fall season pass. We're being very selected during October, November, when you can use the past, right. We exclude each time on Saturdays, so we don't want to cannibalize that traffic, but there's a lot of opportunities months to fill in the centers. And we're really excited for the opportunity to launch that new product.

Speaker Change: Launch!

Speaker Change: for the first time ever a fall season pass. We're being very selected during October, November, when you can use the pass.

Lev Ekster: You were also getting a $5 arcade reload clearing every visit. And as a past holder, you were able to get one time per visit, a discounted arcade card. And so again, we wanted to drive a lot of values to past holders. The amount of visits we got out of it was pretty obvious. Food and beverage sales were up. Now, it could be attributed to all the new menus that we mentioned. It could also be attributed to the visitation. But overall, I think the consumer is quite clearly telling us that they're loving the past. They're loving the product that we're delivering to them when they come.

Wright: Wright, we exclude e-times on Saturdays, so we don't want to cannibalize that traffic, but there's a lot of opportunity those months to fill in the centers, and we're really excited for the opportunity to launch that new product.

Thomas Shannon: Yeah, just to complete the thought there, we did over $2.5 million, or in the neighborhood of $2.5 million, of season pass sales at Raging Waves, despite only owning that property for about 40 days between close and season opening. I would expect next year that that number will be $3 to $4 million in season pass. We're leaning really hard into the season pass because there are a lot of attributes. One is enormous customer satisfaction and increased customer visitation, but it also inflates you from weather. So all these businesses have some weather dependency. One of the advantages that we found from raging waves is that it was an excellent weather hedge to offset the effects of good weather in the Chicago metro area where we have 19 Boeing centers.

Speaker Change: Yeah, just to complete the thought there, you did over $2.5 million or in the neighborhood of $2.5 million of season pass sales at raging waves.

Speaker Change: Despite only

Speaker Change: Owning that property for about 40 days between closed and season opening, I would expect next year that that number will be three to four million dollars in season pass. We're leaning really hard into the season pass because it...

Thomas Shannon: And that's driven our decision to launch for the first time ever a fall season pass. We're being very selective during October and November when you can use the past. Right? We exclude heat times on Saturdays so we don't want to cannibalize that traffic. But there's a lot of opportunities amongst the fill in the centers. And we're really excited for the opportunity to launch that new product.

Speaker Change: A lot of attributes, one is enormous customer satisfaction and increased customer vegetation. But in always, it also insulates you from weather, right? So all these businesses have some weather dependency.

Speaker Change: is one of the advantages that we found from raging waves is that it was an excellent weather hedge to offset the effects of good weather in Chicago, metro area where we have 19 Boeing centers. The first...

Thomas Shannon: Yeah, just to complete the thought there, we did over $2.5 million or in the neighborhood of $2.5 million of season pass sales at raging waves. Despite only and owning that property for about 40 days between clothes and season opening. I would expect next year that that number will be $3 to $4 million in season pass. We're leaning really hard into the season pass because there are a lot of attributes. One is enormous customer satisfaction and increased customer visitation.

Thomas Shannon: The first day Raging Waves was supposed to open. It actually didn't open because of rain. And what we found is in the three districts that comprise the centers in the Chicago area, we were up about 90% same store sales versus prior year. So excellent weather hedge. Of course, it reverses, right? Raging waves had several days over $350,000, which is an astonishing number for single day revenue in a regional park wall at the same time where Boeing centers were very challenged because of the good weather. So lots of exciting stuff going on there.

Speaker Change: The first day, raging waves was supposed to open, it actually didn't open because of rain. And what we found is in the three districts that comprise...

Speaker Change: The Centers in the Chicago area, we were up at that 90%

Speaker Change: James Thorselle versus prior year. So excellent weather head, of course it reverses, right? Raging waves had several days, over $350,000, which is a astonishing number for single day. We have a new and a regional park.

Thomas Shannon: But it always, it also inflates you from weather, right? So all these businesses have some weather dependency. One of the advantages that we found from raging waves is that it was an excellent weather hedge to offset the effects of good weather in Chicago, Metro area where we have 19 Boeing centers.

Speaker Change: Wall at the same time, our Boeing centers were very challenged because of the good weather. So, lots of exciting stuff going on there. I think you asked the question, wouldn't we look at...

Thomas Shannon: I think you asked the question, what wouldn't we look at? And I would say that the one thing that we're probably least excited about is things that are dining centric, right, restaurant centric. We don't view the restaurant space particularly attractive, selling food and beverage that are attached to Boeing or a water park visit, for example, or great because those are ancillary and add on. But you're probably familiar with pinstripes. Pinstripes is really a fine dining concept with a handful of lanes attached. I never thought that was a good business model.

Thomas Shannon: The first, the first day raging waves was supposed to open. It actually didn't open because of rain. And what we found is in the three districts that comprise the centers in the Chicago area, we were up about 90% same-store sales versus prior year. So excellent weather hedge. Of course it reverses, right? Raging waves had several days over $350,000, which is an astonishing number for single bay revenue in a regional park. The wall at the same time where Boeing centers were very challenged because of the good weather. So lots of exciting stuff going on there.

Speaker Change: And I would say that the one thing that we're probably least excited about is things that are dining centric, right restaurant centric

Speaker Change: and we don't view the restaurant space particularly attractive selling food and beverage that are attached to bowling or water park visit for example or great because those are ancillary and ad on.

Speaker Change: You probably familiar with pinstripes, pinstripes is really a fine dining concept with a handful of lanes attached, I never thought that was a good business model, that is a great example of a business that we would never be interested in owning.

Thomas Shannon: That, that is a great example of a business that we would never be interested in owning. Very helpful. Thanks, guys.

Speaker Change: Very helpful, thanks guys.

Jason Tilchen: And her next question comes from the line of Jason Tilchin with Canaccord Genuity. Your line is open. Great question, and thanks for taking the question.

Thomas Shannon: I think you asked the question, what wouldn't we look at?

Speaker Change: and her next question comes from the line of Jason Tilchon with Cannaquard Genuity, your line is open.

Thomas Shannon: And I would say that the one thing that we're probably least excited about is things that are dining centric, right? Restaurant centric. We don't view the restaurant space particularly attractive. Selling food and beverage that are attached to Boeing or a water park visit, for example, are great because those are ancillary and add on. But you're probably familiar with pinstripes. Pinstripes is really a fine dining concept with a handful of lanes attached. I never thought that was a good business model.

Robert Lavan: I wanted to follow up on a comment from Bobby in regards to the CapEx allocation to this year, particularly that last portion regarding the amount allocated for rebranding of Bolero Center. Is there anything more you can share in terms of this strategy to expand these Lucky Strike brand? Yeah, so we're opening a flagship property in Beverly Hills, you know, in the next few months. So there'll be a lot more to come about, you know, our leaning into the brand and, you know, let's leave it at that. Okay, great.

Speaker Change: Great question and thanks for taking the question. I wanted to follow up on a comment from Bobbi in regards to the cab back allocation to this year, particularly that last portion, regarding the Vietnam allocated rebranding of Bollero Center. Certain things boys can share in terms of the strategy to expand these lucky strike brands.

Speaker Change: Yeah, tomorrow we're opening.

Speaker Change: a flagship property in Beverly Hills, you know, in the next few months, so there'll be a lot more to come about, you know, are leaning into the brand and, you know, let's leave it at that.

Thomas Shannon: That is a great example of a business that we would never be interested in owning. Very helpful. Thanks, guys.

Robert Lavan: And then one more clip all up in terms of the guidance for next year is anything you can talk about in terms of the same sort of sales breakout we could sort of expect to traffic and pricing. We're not assuming any pricing this year. Okay, great.

Speaker Change: Okay, great, and then one more clip of it, in terms of the guidance for next year as anything you can talk about, in terms of the game sort of sales, the breakout we could sort of expect to be in traffic and pricing.

Jason Tilchen: And your next question comes from the line of Jason Tiltjen with Canacorn Genuity. Your line is open. That great question and thanks for taking the question.

Speaker Change: We're not assuming any pricing this year.

Jeremy Hamblin: Thank you. And your next question comes from the line of Jeremy Hamblin with Craig Hallum. Your line is open. Thanks. Congrats on the strong results. And I wanted to come back to kind of the operating piece of the business. Your FGNA was a little over 40 million in the quarter. I think the highest that you've had.

Jason Tilchen: I wanted to follow up on a comment from Bobby in regards to the CapEx allocation to this year, particularly that last portion regarding the amount allocated for rebranding of Bolero Center. Is there anything more you can share in terms of this strategy to expand these to the Lucky Strike brand? Yeah, so we're opening a flagship property in Beverly Hills in the next few months. So there'll be a lot more to come about our leaning into the brand.

Speaker Change: Sacred, thank you.

Speaker Change: And your next question comes from the line of Jeremy Hamblon with Craig Howellum, your line is open.

Jason Tilchen: And let's leave it at that. Okay, great.

Jeremy Hamblon: Thanks, congrats on the strong results and I wanted to come back to the kind of operating piece of the business your FGNA was.

Speaker Change: Little over 40 million in the quarter, I think the highest that you've had.

Robert Lavan: And, you know, in terms of thinking about that, I think I caught in the prepared remarks a $2 million insurance crew up, which I'm assuming folds into there, but also just wanted to understand, you know, given the seasonality of our raging waves of how much that might have contributed into your FGNA. Yeah, that's so that 40 million did not include anything for raging waves, but it did include $4 million of write-offs related to some abandoned software development costs, $4 million of deal costs, $4 million of DNA, and $4 million of share comp. So you'll see in our non-GAAP wrecks in our investor deck that, you know, we view FGNA as a $26 million cost.

Speaker Change: and you know, in terms of thinking about that, I think I caught in the prepared remarks a $2 million insurance crew up.

Jason Tilchen: And then one more clip of all. In terms of the guidance for next year, is anything you can talk about in terms of the same sort of sales breakout we could sort of expect between traffic and pricing. We're not assuming any pricing this year. Thank you.

Speaker Change: which I'm assuming folds into there but also just wanted to understand, you know, given the seasonality of raging waves of how much that might have contributed into your SG&I.

Speaker Change: Yeah, that too.

Speaker Change #100: That's 40 million did not include anything for raging waves, but it did include

Jeremy Hamblin: And your next question comes from the line of Jeremy Hamblin with Craig Hallum. Your line is open. Thanks. Congrats on the strong results. And I wanted to come back to kind of the operating piece of the business. Your FGNA was a little over 40 million in the quarter. I think the highest that you've had. And you know in terms of thinking about that. I think I caught in the prepared remarks a $2 million insurance crew up, which I'm assuming folds into there, but also just wanted to understand, you know, given the seasonality of our raging waves of how much that might have contributed into your FGNA.

Speaker Change #100: Four million dollars of right off.

Speaker Change #101: Related to some abandoned software development costs, $4 million of deal costs.

Speaker Change #102: 4 million dollars of DNA and 4 million dollars of share comp.

Jeremy Hamblin: Yeah, that so that 40 million did not include anything for raging waves, but it did include $4 million of write-offs related to some abandoned software development costs, $4 million of deal costs, $4 million of DNA, and $4 million of share comp. So you'll see in our non-gap wrecks in our investor deck that, you know, we view FGNA as a $26 million cost. Next quarter, we will start, we will remove DNA from our corporate FGNA cost.

Speaker Change #102: So you'll see in our non-gap direct in our investor deck that, you know, we view SGNA as a $26 million cost.

Robert Lavan: Next quarter, we will start; we will remove DNA from our corporate FGNA cost. So we'll give a lot more clarity.

Speaker Change #102: Next quarter, we will start, we will remove DNA from our corporate SNA cost, so we will give a lot more clarity, this is a sort of the end of the gross profit and income statement. So you'll have a lot more full wall going forward.

Robert Lavan: This is just sort of the end of the gross profit can come statement. So you'll have a lot more full wall going forward. And then I want to come back to that, the comment just made here on pricing and in terms of, you know, what you are expecting from your consumer, maybe it's expecting as well, you know, obviously you're having tremendous success here with the season passes, and that's a driver get foot traffic in the door. You are seeing a bit of a price competition from other entertainment businesses, but you know, wanted to get a sense for, you know, how you felt like you needed to operate your pricing models, you know, particularly your weekend pricing models.

Speaker Change #103: Got it. And then I want to come back to that, the comment just made and hear pricing and in terms of...

Speaker Change #103: you know what you are expecting.

Speaker Change #104: from what your consumer may be expecting is well, you know, obviously you're having tremendous success here with the season passes and that's a driver get.

Speaker Change #104: You know, foot traffic in the door.

Speaker Change #104: you are seeing a bit of a praise competition from other...

Speaker Change #105: Entertainment Businesses, but you know, wanted to get a sense for, you know, how you felt like you needed to operate your pricing models, you know, particularly your weekend pricing models.

Jeremy Hamblin: So it will give a lot more clarity. This is just sort of the end of the gross profit can come statement. So you'll have a lot more full wall going forward. And then I want to come back to that, the comment just made here on pricing and in terms of, you know, what you are expecting from what your consumer maybe is expecting as well, you know, obviously you're having tremendous success here with the season passes and that's a driver get foot traffic in the door.

Thomas Shannon: And whether or not you feel like, you know, you need to dip into more of the kind of promos to drive traffic outside of just the season passes. Yeah, so one thing to be clear: the season pass you can't use on Saturday. Right. So, you know, we don't need to discount or promote Saturday. The season pass is, you know, is great when school is out, you know. We extended the hours of our center so we can sell more F and B, you know. Really, the focus is going to be getting people into the center and then selling them more food.

Speaker Change #106: and whether or not you feel like you need to dip into more of the kind of promos to drive traffic outside of just the season passes.

Speaker Change #107: Yeah, so one thing to be clear, the season pass you can't use on a Saturday, right? So, you know, we don't need to get to scound or promote.

Speaker Change #108: Saturday. The season pass is, you know, is great when school is out. We extended the hours of our center so we could sell more F&B. You know, really the focus is going to be getting people into the center and then selling them more food.

Jeremy Hamblin: You are seeing a bit of price competition from other entertainment businesses, but you don't want to get a sense for, you know, how you felt like you needed to operate your pricing models, you know, particularly your weekend pricing models. And whether or not you feel like, you know, you need to dip into more of the kind of promos to drive traffic outside of just the season passes. Yeah, so one thing to be clear of the season pass, you can't use on Saturday, right.

Thomas Shannon: Right, we talked about this a lot and, you know, we've actually got proof in our first kitchen that has the upgraded menu, and I'll hand it over to Love to kind of jump into. So the blueprint that I think triggered. The focus on food and beverage is obviously the acquisition of Lucky Shike and seeing what's possible there; their food and beverage attachment was multiple higher than ours. and when we launched Lucky Strike Miami, the menu that we built there in terms of the innovation from the mixology, right, the cocktails that we were making there. A menu that was featuring craft pizzas and street tacos and bale buns and seasonal salads and bowls.

Speaker Change #108: We've talked about this a lot and we've actually got through in our first kitchen that has the upgraded menu and I'll hand it over to Lev to kind of jump into.

Lev Ekster: So, the blueprint that I think triggered.

Lev Ekster: This focus on food and beverage is obviously the acquisition of Lucky Shrike and seeing what's possible, their food and beverage attachment was multiple higher than ours.

Jeremy Hamblin: So, you know, we don't need to discount or promote Saturday. The season pass is, you know, is great when school is out. We extended the hours of our center so we could sell more F and B. You know, really the focus is going to be getting people into the center and then selling them more food. Right, we talked about this a lot.

Lev Ekster: and when we launched Lucky Strike Miami, the menu that we built there.

Lev Ekster: in terms of the innovation.

Lev Ekster: from the mixology, right, the cocktails that we were making there, and then you would always featureing craft pizzas and street tacos and ball bones and seasonal salads and bowls. So now we're looking at the results there, and we're seeing...

Thomas Shannon: So now we're looking at the results there and we're seeing, you know, nearly $3.40 food and beverage spend for every dollar of bowling. And again, that's much, much higher than we've ever seen. So we've used that as an inspiration to launch revamp menus across all of our centers. We went down to the traditional centers. They got all new menus all the way up to the Lucky Strike Premier Centers, and now we're going to be focused on our catering menus. So it's just given us a sense of confidence that we're capable as an operator to run this type of food and beverage operation.

Lev Ekster: And, you know, we've actually got food in our first kitchen that has the upgraded menu and I'll hand it over to love to kind of jump into. So, the blueprint that I think triggered. This focus on food and beverage is obviously the acquisition of Lucky Shike and seeing what's possible. Their food and beverage attachment was multiple higher than ours, and when we launched Lucky Strike Miami, the menu that we built there in terms of the innovation from the mixology, right, the cocktails that we were making there, a menu that was featuring craft pizzas and street tacos and ball buns and seasonal salads and bowls, so now we're looking at the results there and we're seeing, you know, nearly three dollars and forty cents who'd in beverage spend for every dollar of bowling and again that's much much higher that we've ever seen, so we've used that as an inspiration to launch revamp menus across all of our centers.

Lev Ekster: E-know.

Speaker Change #109: Nearly three dollars in 40 cents would have ever been for every dollar rolling. And again, that's much, much higher that we've ever seen. So we've used that as an inspiration to launch.

Speaker Change #110: We found menus across all of our centers. We went down to the traditional centers. They got all new menus all the way up to the walking strike premier centers. And now we're going to be focused on our catering menus. So it's just given us a sense of confidence that we're capable.

Thomas Shannon: And again, bowling is still king, but when you're visiting us for bowling, it's worth offering you better food and beverage options. If we're offering you a better amusement option, the attachment's going to continue to grow. I see a world where you're going to show to Lucky Strike this year and you're not going to have any plans to go to dinner before afterwards, where you're going to find us to be a great option for that. That's what we're driving towards. And, you know, early indications are super encouraging.

Speaker Change #110: as an operator.

Speaker Change #110: the run this type of food and beverage operation and again bowling is still king, but when you're visiting us for bowling

Speaker Change #110: It's worth offering you better food and better job options if we're offering you a better amusement option.

Speaker Change #110: The attachments going to continue to grow. I see a world where you're going to show to a lucky strike this year and you're not going to have any plans to go to dinner before afterwards where you're going to find us to be a great option for that. That's what we're driving towards.

Robert Lavan: Yeah, and I would just, you know, F&B revenue was up greater than bowling revenue this summer. So, proof is in the pudding. We sell them more food. The upside is significant. Great. Thanks for your color.

Speaker Change #111: and, you know, early indications are super encouraging. Yeah, I mean, I would just, you know.

Lev Ekster: We went down to the traditional centers, they got all new menus all the way up to the Lucky Strike premier centers and now we're going to be focused on our catering menus, so it's just given us like a sense of confidence that we're capable as an operator to run this type of food and beverage operation and again, bowling is still king, but when you're visiting us for bowling, it's worth offering you better food and beverage options, if we're offering you a better amusement option, the attachment's going to continue to grow. I see a world where you're going to show up to a Lucky Strike this year and you're not going to have any plans to go to dinner before afterwards where you're going to find us to be a great option for that.

Speaker Change #111: F&B revenue was off.

Speaker Change #112: Greater than Owing revenue this summer.

Speaker Change #113: So proof is in the pudding. We got people in the centers.

Speaker Change #113: and we sell them more food, the upside is six.

David Dafferian: and David Dafferian.

Robert Lavan: Best wishes.

Speaker Change #115: Great, thanks for your color, that's wishes.

Eric Candler: And your next question comes from the line of Eric Candler with Roth Capital. Your line is open. Good afternoon. Thanks for the question.

Speaker Change #116: and your next question comes from the line of Eric Chandler with Roth Capital, your line is open.

Robert Lavan: Bobbi, can we talk a little bit about the gross margin? So, while same center sales were up in the fourth quarter, implying volume was up, gross profit was down. As we look into fiscal 25, how do we think about the direction for gross margin? Yeah, so as, you know, we've talked a lot about this issue. Our legacy reporting standards date back to the acquisition of AMF, where AMF also had a manufacturing business.

Eric Chandler: Good afternoon. Thanks for the question. Bobby, can we talk a little bit about the gross margin. So while same center fails, we're up.

Lev Ekster: That's what we're driving towards and, you know, early indications are super encouraging. Yeah, and I would just, you know, F&B revenue was up greater than bowling revenue this summer, so proof is in the pudding. We sell them more food. The upside is significant.

Speaker Change #118: and the fourth quarter, and playing volume was up. Gross Prophet would stand. As we look into fiscal 25,

Speaker Change #119: How do we think about the direction for Gross Margin?

Speaker Change #120: Yeah, so as, you know, we've talked a lot about this issue.

Speaker Change #120: are

Speaker Change #121: Legacy reporting standards date back to the acquisition of AMF for AMF also had a...

Lev Ekster: Great, thanks for your color, best wishes.

Robert Lavan: We're not going to be reporting gross margin starting in the first quarter. So I really look at four wall. The depreciation amortization that came in from Lucky Strike is what the drag on the gross margin. If you look at DNA, you know, gross margin was up 200 basis points. So it's just something that is a legacy standard.

Eric Candler: And your next question comes from the line of Eric Candler with Roth Capital. Your line is open. Good afternoon, thanks for the question.

Speaker Change #121: Manufacturing Business, we're not going to be reporting gross margins starting in the first quarter. So, I really look at Warwall.

Speaker Change #123: The depreciation amortization that came in from Lucky Strike is what the drag on the gross margin. If you look XDNA, you know, gross margin was up 200 basis points.

Bobbi Lavan: Bobby, can we talk a little bit about the gross margin? So while same-center sales were up in the fourth quarter, implying volume was up, gross profit was down. As we look into fiscal 25, how do we think about the direction for gross margin? Yeah, so as, you know, we've talked a lot about this issue, our legacy reporting standard date back to the acquisition of AMF where AMF also had a manufacturing business.

Robert Lavan: You can't really change it in your case, but we are changing in our Q going forward. Got it. Okay.

Speaker Change #123: So it's just something that is a legacy standard, you can't really change it in your cave, but we are changing in our two going forward.

Robert Lavan: And then you did sort of dance around how first quarter was going so far. One of you could just talk about and what you saw in July and August. I don't think we've danced around it at all.

Speaker Change #124: Got it. Okay. And then you did sort of dance around how first quarter was going so far. What do you think could just talk about, you know, what you saw in July and August?

Michael Kupinski: We are positive on the same store basis through the first two periods of the fiscal year, and we're seeing your next question comes from the line of Michael Kupinski with Noble Capital Markets. Your line is open.

Speaker Change #125: I don't think we've danced around it at all and we are positive on the same slow basis.

Bobbi Lavan: We're not going to be reporting gross margin starting in the first quarter. So I really look at four wall. The depreciation amortation that came in from Lucky Strike is what the drag on the gross margin. If you look at DNA, you know, gross margin was up 200 basis points. So it's just something that is a legacy standard. You can't really change it in your case, but we are changing in our queue going forward. Got it.

Speaker Change #125: through the first two periods.

Speaker Change #125: of the fiscal year, and we're seeing expanding operating margins.

Speaker Change #126: Okay, third of, thank you.

Speaker Change #127: Can your next question comes from the line of Michael Kupinski with Noble Capital Markets, your line is open.

Michael Kupinski: Thank you, and thank you for taking the questions, and congratulations on a solid quarter. A couple of questions. I kind of want to go back to the same store of revenue growth. Obviously showed a nice acceleration from the third quarter. I was wondering, can you maybe give a little bit more color on what you're seeing that is allowing it to grow so nicely in spite of the macroeconomic trends that are hurting other discretionary consumer businesses, and it seems like you're introducing higher-end food items and so forth. Are you seeing any differences in consumer spending patterns?

Michael Kupinski: Thank you and thank you for taking the questions and congratulations on this all-it-quarter couple questions. I kind of want to go back to the same store of Revenue Growth.

Bobbi Lavan: Okay, and then you did sort of dance around how first quarter was going so far. One of you could just talk about.., and what you saw in July and August. I don't think we've danced around it at all. We are positive on a same-store basis through the first two periods of the fiscal year and we're seeing you expanding operating versions. Okay, fair enough, thank you.

Michael Kupinski: Obviously showed a nice acceleration from the third quarter.

Speaker Change #129: I was wondering, can you maybe give a little bit more color on what you're seeing?

Speaker Change #130: that is allowing it to grow so nicely and spite of the macroeconomic trends that are hurting other discretionary consumer businesses and it seems like.

Speaker Change #131: You're introducing higher-end food items and so forth.

Thomas Shannon: I'm just wondering if you're moving up the demographic towards higher income consumers, just kind of giving a flavor of what you're seeing that is allowing you to grow so nicely.

Speaker Change #132: Are you seeing any differences in consumer spending patterns? I'm just wondering if you're moving up the demographic towards higher income consumers, just kind of giving a flavor of what, you know, what you're seeing that is allowing you to kind of grow so nicely.

Michael Kupinski: Your next question comes from the line of Michael Kupinski with noble capital markets. Your line is open. Thank you and thank you for taking the questions and congratulations on a solid quarter. A couple of questions. I kind of want to go back to the same-store revenue growth. Obviously showed a nice acceleration from the third quarter. I was wondering, can you maybe give a little bit more color on what you're seeing that is allowing it to grow so nicely in spite of the macroeconomic trends that are hurting other discretionary consumer businesses? And it seems like you're introducing higher end food items and so forth. Are you seeing any differences in consumer spending patterns?

Thomas Shannon: Well, this is Tom. If you look at where our centers are located geographically and then really how those centers perform relative to other centers, we are very overweighted from the revenue standpoint towards the higher-end consumer. So, you know, our highest grossing centers are in Bellevue, Washington; our two locations in Manhattan, Tyson's Corner, Virginia; now in Miami. These are all A markets. The average household income is probably well in excess of $150,000, maybe even $200,000. So, we're overweighted to higher end customer. Where we're particularly strong is in our events business where the grew some really good revamps of our online booking platform.

Speaker Change #132: Well, this is Tom. If you look at where our centers are located, geographically and then really...

Tom: How those centers perform relative to other centers, we are very overweighted from a revenue standpoint towards the higher end consumer.

Tom: So...

Tom: You know, our highest-grossing centers are in.

Tom: Bell D Washington, our two locations in Manhattan, Tyson's Carter Virginia, now in Miami. You know, these are all aim markets. The average household income is probably well in excess of 150,000, maybe even $200,000.

Thomas Shannon: I'm just wondering if you're moving up the demographic towards higher income consumers, just kind of giving a flavor of what you're seeing that is allowing you to kind of grow so nicely. Well, this is Tom. If you look at where our centers are located geographically and then really how those centers perform relative to other centers, we are very overweighted from a revenue standpoint towards the higher end consumer. So, you know, our highest grossing centers are in Bellevue, Washington, our two locations in Manhattan, Tyson's Court of Virginia.

Tom: So, we're over-weighted to the hiring customer.

Speaker Change #133: R. Where we're particularly strong is on our events business, where...

Speaker Change #134: the way that I've done.

Thomas Shannon: We dramatically increased online bookings for reservations very close to the time or date of the desired party. So, we went from, in the past, we weren't able to book parties within three days of a given date. Now, you know, that's the end of what, three hours, two hours, right? So, through technological and operational refinements, we made it much easier for the guests to buy, particularly spur of the moment. And that's had a very meaningful effect on our event business. We're seeing the larger event business remains strong, continue to grow. We have excellent sales leadership. Our head of sales and the team he has below him is really superb.

Speaker Change #134: really good revamps of our online booking platform. We dramatically increased online booking spur.

Speaker Change #134: Reservations very close to the time or date of the desire party. So we went from in the past, we weren't able to book.

Speaker Change #134: Parties within three days of the given day now, you know that would understand what.

Speaker Change #135: Three hours, two hours, right?

Thomas Shannon: Now in Miami, you know, these are all aid markets. The average household income is probably well in excess of $150,000 or maybe even $200,000. So, we're overweighted to higher end customer. Where we're particularly strong is in our events business where through some really good revamps of our online booking platform, we dramatically increased online bookings for reservations very close to the time or date of the desired party. So, we went from, in the past, we weren't able to book parties within three days of a given date.

Speaker Change #135: So, through technological and operational requirements, we've made it much easier for the guests to buy, particularly

Speaker Change #135: Spore the moment.

Speaker Change #135: and that's how a very meaningful event on our event business.

Speaker Change #136: We're seeing the larger event business remains strong, continue to grow, with excellent sales leadership, our head of sales, and the team he has below in this is really superb, no doubt, for the best in class by far, and we'll do.

Thomas Shannon: Now, you know, that's down to like three hours, two hours, right? So, through technological and operational refinements, we made it much easier for the guests to buy, particularly spur the moment. And that's had a very meaningful effect on our event business. We're seeing the larger event business remain strong, continue to grow. We have excellent sales leadership. Our head of sales and the team he has below him is really superb. No doubt there's a best in class by far.

Thomas Shannon: No doubt they're the best in class, by far. And we'll do, Bobby, do you recall we did an event sales? Total. Yeah, always a number: $275,000,000 of event sales in the last fiscal. That number will certainly be over $300,000,000 in this fiscal year. So, we're seeing strong retail events. We're seeing strong corporate events, and then we're also really focused on offering value to the value-oriented customer when they want it. So the season passed, meaning from a zero last year to 8.5 million, certainly additive. 8.5 million is a lot of money in our slowest revenue periods that made a meaningful difference.

Speaker Change #137: Thomas, Bobby, do you recall what we did in events sales?

Bobby Lavan: Ruff, total, yeah, always the number 2.

Speaker Change #138: 75 million dollars of event sales in the last fiscal. That number will certainly be over 300 million in this fiscal year. So we're seeing strong retail events.

Speaker Change #138: We're seeing strong corporate events and then we're also...

Speaker Change #138: We're really focused on offering value to the value oriented customer.

Speaker Change #139: When they walk it, so the season pass.

Speaker Change #139: Thanks for listening.

Speaker Change #140: Zero last year to 8.5 million, certainly added to it. 8.5 million, a lot of money and our slowest revenue.

Thomas Shannon: Also, things like Groupon, where the number was 17.4 million, I believe, last year. Our conditions are very favorable to us, so we have a disproportionately large hold from Groupon. We also restrict use the off-peak times, so we don't squeeze out any full-price revenue. So it's a lot of things. It's a lot of operational nuances, and getting full price when we can, and discounting when we need to. I think we're continuing to refine our model, and we're just getting better and better at that. And then, going back to something I said earlier, don't discount the quality of our product.

Speaker Change #140: Periods that made a meaningful difference. Also things like gloom pond.

Speaker Change #140: where the number was 17.4 million, I believe last year, on conditions very favorable to us. So we have a disproportionately large hole from Groupon. We also restrict use to off-peak times.

Thomas Shannon: And we'll do. Bobby, do you recall we did an event sales? Yeah, always a number to 75. Two hundred and seventy five million dollars of event sales in the last fiscal. That number will certainly be over three hundred million in this fiscal year. So, we're seeing, we're seeing strong retail events. We're seeing strong corporate events, and then we're also really focused on offering value to the value-oriented customer when they want it.

Speaker Change #140: A surreal squeeze out any full price revenue, so it's a lot of things, it's a lot of operational nuances.

Speaker Change #140: and getting full price when we can and discounting when we need to. I think we're continuing to refine our model and we're just getting better and better at that. And then going back to something I said earlier, don't discount the quality of our product.

Thomas Shannon: So the season passed, meaning from a zero last year to 8.5 million, certainly additive, 8.5 million is a lot of money in our slowest revenue periods that made a meaningful difference. Also things like Groupon, where the number was 17.4 million, I believe last year. The condition's very favorable to us, so we have a disproportionately large hold from Groupon. We also restrict use the off-peak times, so we don't squeeze out any full price revenue.

Thomas Shannon: We've spent a lot of time and effort and money to build really spectacular facilities. And if you come and visit some of these, which I would encourage you to do in Miami, the new one in Beverly Hills, we're about to open, Tyson's Corner, any of these that we built new. I mean, it's almost like Vegas in your community. That level of glitz and glamour.

Speaker Change #140: You know, we've spent a lot of time at effort and money.

Speaker Change #140: to build really spectacular facilities. And if you come and visit some of these, which I would encourage you to do, in Miami, the new one at Beverly Hills, we're about to open Tyson's Corner, any of these that we built new. I mean, it's almost like Vegas in your community, that level of glitz and glamour. So you put it all together and we've got a winning model.

Thomas Shannon: So you put it all together, and we've got a winning model. Gotcha. That was very helpful. I appreciate that.

Michael Kupinski: I do have one more question. I know that it's a relatively small acquisition of Raging Waves, but I believe that there was a relatively mild summer in Illinois. I lived there during the summer.

Speaker Change #141: Gotcha, that was very helpful. I appreciate that. I do have one more question. I know that it's a relatively small acquisition of raging waves.

Thomas Shannon: So it's a lot of things. It's a lot of operational nuances. And getting full price when we can and discounting when we need to. I think we're continuing to refine our model and we're just getting better and better at that. And then going back to something I said earlier, don't discount the quality of our product. We've spent a lot of time and effort and money to build really spectacular facilities. And if you come and visit some of these, which I would encourage you to do in Miami, the new one at Beverly Hills, we're about to open, Tyson's Corner, any of these that we built new. I mean, it's almost like Vegas in your community, that level of glitz and glamour.

Speaker Change #142: I believe that there was a relatively mild summer in Illinois live there during the summer, so except for the past few weeks.

Thomas Shannon: So, except for the past few weeks, can you, and I'm kind of surprised that you had such strong growth. I was wondering, can you kind of give us a little flavor of what drove the growth? It was an increase in gas price increases, or were you able to implement some of the revenue initiatives that you had planned, or are those still on the dock? Great question. It was mild. It was, it was surprisingly cool this summer in Chicago, which definitely hurt us, which makes me feel very excited about what might happen next year. Combination of factors, we leaned really hard into season past sales, which were up significantly over year, drove attendance, which was up more than 10%, revenue, more than 10%, maybe it'll shake out in closer to 15%.

Speaker Change #143: Can you, and I'm kind of surprised that you had such strong growth, I was wondering, can you kind of give us a little flavor of what drove the growth, or was it, you know, the increase in gas, price increases, or were you able to implement some of the revenue initiatives that you had planned, or are those still on the, on the dock?

Speaker Change #144: Great question. It was mild. It was surprisingly cool this summer in Chicago, which definitely hurt us.

Speaker Change #144: which makes me feel very excited about what might happen next year.

Thomas Shannon: So you put it all together and we've got a winning model. Gotcha, that was very helpful. I appreciate that. I do have one more question. I know that it's a relatively small acquisition of raging waves, but I believe that there was a relatively mild summer in Illinois. I lived there during the summer. So, except for the past few weeks, I'm kind of surprised that you had such strong growth. I was wondering, can you kind of give us a little flavor of what drove the growth?

Speaker Change #145: The combination of factors, we leaned really hard into season pass sales, which were up significantly earlier.

Speaker Change #145: Tendons, which was up more than 10% revenue, more than 10%, maybe it will shake out in closer to 15%. It would be too early to know, and frankly we saw it one more week in the go. And then...

Thomas Shannon: It would be too early to know. And frankly, we still have one more weekend to go. And then we got a liquor license, which we put into effect, where it was sell beers from about the middle of the season on, which had a beneficial effect. It wasn't a game changer, because again, it was only for a partial period, but definitely increased food and beverage sales.

Speaker Change #146: We got a liquor license

Thomas Shannon: There was an increase in gas price increases or were you able to implement some of the revenue initiatives that you had planned or are those still on the dock? Great question. It was mild. It was surprisingly cool this summer in Chicago, which definitely hurt us, which makes me feel very excited about what might happen next year. Combination of factors, we leaned really hard into season past sales, which were significantly over year, drove attendance, which was up more than 10%, revenue, more than 10%.

Speaker Change #146: which we put into effect where it was self-beers from that the middle of the season on which had a beneficial effect. It wasn't a game changer because again it was only for a partial period but definitely increased food and beverage sales.

Thomas Shannon: So, you know, things that didn't happen was that we didn't fold the event booking process into our existing Chicago-based sales force, which is quite large and quite capable. We think there's half a million to a million dollars of upside from events, whether it's birthday parties, corporate, you know, team building, family stuff. We're actually going to be building a dedicated area within the park to really facilitate those sorts of events. Davis.

Speaker Change #146: You know, things that didn't happen was that we didn't fall.

Speaker Change #146: The event booking process into our existing Chicago Bay sales force.

Speaker Change #147: which is quite large and quite capable. We think there's half a million to a million dollars of upside from events. Whether it's for a day party's corporate, team building, family stuff, actually going to be building a dedicated area within the park to really facilitate those sorts of events.

Thomas Shannon: Maybe it'll shake out in closer to 15%. It would too early to know. Frankly, we still have one more weekend to go. And then we got a liquor license, which we put into effect, where it was cell beers, from about the middle of the season on, which had a beneficial effect. It wasn't a game changer because, again, it was only for a partial period, but definitely increased food and beverage sales. So, things that didn't happen was that we didn't fold the event booking process into our existing Chicago-based sales force, which is quite large and quite capable.

Thomas Shannon: I think that really summarizes most of it, but we paid $49 million for that park. Figured it'll do $7 million of EBITDA this year, give or take. I think the upside in that park is, in the next year or two, it could get to $10 million of EBITDA, and I think that ultimately the number could be meaningfully higher. I mean, if 60 acres, but 13 are undeveloped, 13 acres of expansion capacity allows you to go from sort of an in-park comfortable capacity of 5 to 6,000 people on a peak day to 8 or 9,000, which makes a huge difference because, as he said, when you have a mild season, there are going to be days that are disproportionately busy, and it's really important to be able to capture as much revenue as you possibly can in those days.

Speaker Change #147: I think that really summarizes most of it, but we...

Speaker Change #148: Yeah, we paid $49 million for that park. Figure it'll do $7 million of EBITDA this year, give or take. I think the upside in that park is...

Speaker Change #148: In the next year or two, it could get to 10 million of you beta and I think that ultimately the number could be meaningfully higher. I mean, it's 60 acres, but 13 are undeveloped. 13 acres of expansion capacity allows you to go from sort of an in park.

Thomas Shannon: We think there's half a million to a million dollars of upside from events, whether it's birthday parties, corporate, team building, family stuff, they're actually going to be building a dedicated area within the park to really facilitate those sorts of events. Davis. I think that really summarizes most of it, but we paid $49 million for that park. Figured it'll do $7 million of EBITDA this year give or take. I think the upside in that park is in the next year or two, it could get to $10 million of EBITDA, and I think that ultimately the number could be meaningfully higher.

Speaker Change #148: Comfortable capacity of 5 to 6,000 people on a peak date at 8 or 9,000.

Speaker Change #149: which makes a huge difference because as he said when you have a mild season, they're going to be days that are disproportionately busy and it's really important to be able to capture as much revenue as you possibly can in those days.

Thomas Shannon: And so we're doing some tweaks to expanding park capacity. But longer term, we also have the ability to meaningfully increase the capacity of the park on land that we already own that's adjacent to the existing facility. Well, well done.

Speaker Change #149: and so we're doing some tweaks to expanding our capacity, but longer term we also have the ability to meaningful increase.

Speaker Change #149: The capacity to bark on land that we already own that's adjacent to the existing facility.

Thomas Shannon: That's all I have. Thank you.

Speaker Change #150: Well, well done. That's all I have. Thank you.

Thomas Shannon: I mean, it's 60 acres, but 13 are undeveloped, 13 acres of expansion capacity allows you to go from sort of an in-park comfortable capacity of five to 6,000 people on a peak day to eight or 9,000, which makes a huge difference because as he said, when you have a mild season, there are going to be days that are disproportionately busy, and it's really important to be able to capture as much revenue as you possibly can in those days, and so we're doing some tweaks to expanding park capacity, but longer term, we also have the ability to meaningful increase the capacity of the park on land that we already own that's adjacent to the existing facility. Well, well done.

Eric Wold: And your next question comes from the line of Eric Wolt with Be Rily Securities. Your line is open. Thank you. Got you a couple of questions. I want to go back to the same sort of sales question. I know that you know, in the guidance for this year, you know, the next expedition, not taking price or obviously driving, you know, more food and beverage up less. Maybe then ask a different way within the stature. So guidance, you know, how much is attendance and how much is, you know, per person spend? And then if you're not taking price or be not planning on taking price right now, what do you say is because the biggest drivers in helping you offset, you know, any input or labor contemplation that may arise?

Speaker Change #151: Thank you.

Speaker Change #152: and your next question comes from the line of Eric Wald with B-Riley Securities. Your line is open.

Eric Wald: Thank you, Dr. Nune. A couple of questions. I sort of go back to the same sort of sales question, and know that you know, in the guidance.

Eric Wald: for this year, you noted an expectation of not taking price or on the driving, you know, more food and beverage uplifts. Maybe then ask a different way within the St. Joseph guidance, you know, how much is a pendant and how much is.

Speaker Change #154: and then if you're not taking pride from the sun, planning on taking pride right now, what do you say is because the biggest drivers in helping you offset any input or labor contemplation at me mirrors.

Michael Kupinski: That's all I have. Thank you.

Thomas Shannon: Yeah, so there's a vent growth. So event, you know, comes in at at least a 20% higher per cap than retail walk-in, and in a lot of centers, the bigger centers, it's 50 plus percent on a per cap basis. So as we do more events, you know, it the check size goes up. Secondarily, you know, we spent a lot of time talking about it. You know, our online business is killing it, you know, is up 30%, 40%. It continues to get better. The new website has rolled out. A lot of different technologies are being used.

Speaker Change #154: Yeah, so it's so, there's event growth.

Bobby Lavan: And your next question comes from the line of Eric Wolt with Be Rily Securities. Your line is open. Thank you. Got you a couple of questions. I sort of go back to the same sort of sales question. I know that in the guidance for this year, you noted an expectation of not taking price for obviously driving more food and beverage up less. Maybe then ask a different way within within the stature of guidance.

Speaker Change #155: So events comes in at, at least a 20% higher per cap than we tell walk in in a lot of centers, the bigger centers, it's 50 plus percent on a per cap basis.

Speaker Change #155: So, as we do more events.

Speaker Change #155: You know, it the check size goes up.

Speaker Change #155: Secondly, you know, we spent a lot of time talking about it, you know, our online business.

Bobby Lavan: How much is attendance and how much is per person spend? And then if you're not taking price, maybe not planning on taking price right now, what do you say is because the biggest drivers in helping you offset any input or labor contemplation that may arise? Yeah, so there's event growth. So event comes in at at least a 20% higher per cap than retail walking in a lot of centers, the bigger centers, it's 50 plus percent on a per cap basis.

Speaker Change #155: is killing it, you know, is up 30-40 percent. You continue to get better. The new website has rolled out. A lot of different technologies are being used. And the website drives, you know, walletshare and drives, ticket price up.

Thomas Shannon: And the website drives, you know, wallet share and drive ticket price up. So ultimately, it's not, you don't need to go and raise the price of the oling, right? We're just getting, we're moving up sort of the value chain as we get wallet share. And then, you know, the big initiative that we talked about that we're seeing, you know, early green shoots is, yeah, can be attachment.

Speaker Change #155: So ultimately, it's not, we don't need to go and raise the price of the polling, right? We're just getting, removing off sort of the value chain as we get Wallachair, and then, you know, the big initiative that we talked about that we're seeing, you know, early green shoots is, yet can be attached.

Robert Lavan: Got it. I think you can just, you know, that I'll play into. Obviously, those are all great, and those are driving for persons to spend. But if you start seeing some cost inflation, would you offset that with price? You think you have other levers to play where you don't have to do that? We have other levers to play.

Speaker Change #155: [inaudible]

Bobby Lavan: So as we do more events, the check size goes up. Secondarily, we spent a lot of time talking about it. Our online business is killing it. It's up 30, 40%. It continues to get better. The new website has rolled out. A lot of different technologies are being used and the website drives wallet share and drive ticket price up. So ultimately, it's not, we don't need to go and raise the price of the owing.

Speaker Change #155: God.

Speaker Change #155: I'm Edmund, in this new book.

Speaker Change #155: and then I'll play into, obviously those are all great news you're driving, you know, for personal spending, you start seeing some cost inflation, you know.

Speaker Change #156: Would you offset that one price? You think you have other levers to play or you don't have to do that?

Robert Lavan: You know, I've been very focused on kind of rebuilding sort of procurement, rebuilding systems. And so when you look at every dollar, you know, you can figure it out. Perfect.

Speaker Change #157: We have other lovers, bye!

Speaker Change #158: You know, I'm...

Speaker Change #159: in very focused on kind of rebuilding sort of procurement, rebuilding systems. And so when you look at every dollar, you can figure it out.

Robert Lavan: Thanks, Bobby.

Bobby Lavan: We're just getting, we're moving up sort of the value chain as we get wallet share. And then, you know, the big initiative that we talked about that we're seeing, you know, early green shoots is the F&B attachment. Got it. I can just, you know, that I'll play into. Obviously, those are all great and those are driving for persons to spend. But if you start seeing some cost inflation, would you offset that with price?

Daniel Moore: And your final question comes from the line of Daniel Moore with CJF Securities. Your line is open. Thank you for all the color. I think most have been answered, but just in terms of the balance sheet and free cash. Obviously, you've got very healthy liquidity. Is there a range of M&A? You're targeting this year. And based on the EBITDA guide, what are your expectations for working capital and then thoughts around kind of a free cash flow range for fiscal 25. Thanks again. Working capital is going to continue to come in as we take, as we just try to turn product faster, but its working capital has never been that meaningful part of our business.

Speaker Change #160: Thanks for having me.

Speaker Change #161: and your final question comes from the line of Daniel Moore with CJF Securities, your line is open.

Daniel Moore: Thank you for all the color. I think most have been asked or an answer but just in terms of the balance sheet and

Daniel Moore: and free cash, obviously you've got very healthy liquidity. Is there a range of M&A? You're targeting the sheer and based on the EBITDA guide, what do you expectations for working capital? And then they thoughts around kind of a free cash flow range for fiscal 25. Thanks again.

Bobby Lavan: You think you have other levers to play where you don't have to do that? We have other levers to play. You know, I've been very focused on kind of rebuilding sort of procurement, rebuilding systems. And so when you look at every dollar, you know, you can figure it out. Perfect. Thanks, Bobby.

Speaker Change #163: Yeah, working capital has been a continued to come in as we take as we just try to turn product faster, but you know, working capital has never been that meaningful part of our business. From an M&A perspective, the range is wide.

Robert Lavan: From an M&A perspective, the range is wide. Because there's a lot out there to do, you know, that, you know, we've quietly been raising our revolver capacity. You know, we added 100 million in the past few months. So, you know, we're expecting, you know, that there's an opportunity out there, but the M&A environment is very active. And so, you know, we'll announce fields as we get them done, and it will be, you know, that kind of trajectory. So I know that's difficult for you guys to model, but I think it's better for us to, you know, surprise to the upside if we get more M&A them.

Daniel Moore: And your final question comes from the line of Daniel Moore with CJF Securities. Your line is open. Thank you for all the color. I think most have been answered, but just in terms of the balance sheet and free cash. Obviously, you've got very healthy liquidity.

Speaker Change #164: because there's a lot out there to do. You know, that, you know, we've quietly been raising our revolver capacity and we added a hundred million in the past few months.

Speaker Change #164: So, we're expecting, you know, that there's an opportunity out there, but the M&A environment is very active and so, you know, will announce fields as.

Bobbi Lavan: Is there a range of M&A you're targeting this year? And based on the EBITDA guide, what are your expectations for working capital and then thoughts around kind of a free cash flow range for fiscal 25. Thanks again. Working capital is going to continue to come in as we take as we just try to turn product faster, but it's working capital has never been that meaningful part of our business. From an M&A perspective, the range is wide.

Speaker Change #164: We get them done, it will be, you know, that kind of trajectory. So I know that it's just gold for you guys the model, but I think it's better for us to, you know, surprise to the upside if we get more M&As done.

Speaker Change #164: [inaudible]

Abby: And ladies and gentlemen, that concludes our question-and-answer session and today's conference. We thank you for your participation, and you may know.

Speaker Change #164: [inaudible]

Speaker Change #165: and Ladies and Gentlemen, that concludes our question and answer session and today's conference. We thank you for your participation and you may now disconnect.

Bobbi Lavan: Because there's a lot out there to do, you know, that's, you know, we've quietly been raising our revolver capacity. You know, we added 100 million in the past few months. So, you know, we're expecting, you know, that there's an opportunity out there, but the M&A environment is very active. And so, you know, we'll announce fields as we get them done. And it will be, you know, that kind of directory. So I know that's difficult for you guys to model, but I think it's better for us to, you know, surprise to the upside if we get more M&A them.

Speaker Change #165: Hello, I'm Thomas Shannon, and I'm the one who's here to talk to you about this.

Abby: And ladies and gentlemen, that concludes our question and answer session and today's conference.

Abby: We thank you for your participation and you may know.