Lucky Strike Entertainment Q2 2025 Lucky Strike Entertainment Earnings Call | AllMind AI Earnings | AllMind AI
Q2 2025 Lucky Strike Entertainment Earnings Call
Speaker #1: Good afternoon, ladies and gentlemen, and thank you for standing by. My name is Calvin, and I will be your conference operator today. At this time, I would like to welcome everyone to the Lucky Strike Entertainment Q2 2025 earnings conference call.
Operator: Good afternoon, ladies and gentlemen, and thank you for standing by. My name is Kelvin, and I will be your conference operator today. At this time, I would like to welcome everyone to the Lucky Strike Entertainment Q2 2026 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star followed by the number 1 on your telephone keypad. If you would like to withdraw your question, please press star 1 again. Thank you. I would now like to turn the call over to Bobby Lavan, Chief Financial Officer. Please go ahead.
Operator: Good afternoon, ladies and gentlemen, and thank you for standing by. My name is Kelvin, and I will be your conference operator today. At this time, I would like to welcome everyone to the Lucky Strike Entertainment Q2 2026 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star followed by the number 1 on your telephone keypad. If you would like to withdraw your question, please press star 1 again. Thank you. I would now like to turn the call over to Bobby Lavan, Chief Financial Officer. Please go ahead.
Speaker #1: All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a to ask a question during this question-and-answer session.
Speaker #1: If you would like time, simply press star, followed by the number one on your telephone keypad. If you would like to withdraw your question, please press star one again.
Speaker #1: like to turn the call over to Bobby Thank you. I would now Lavin, Chief Financial Officer. Please go
Speaker #1: ahead.
Bobby Lavan: Good afternoon. This is Bobby Lavan, Lucky Strike's Chief Financial Officer. Welcome to our conference call to discuss Lucky Strike's Q2 2026 earnings. Today, we issued a press release announcing our financial results for the period ended December 28, 2025. A copy of the press release is available in the Investor Relations section of our website. Joining me on the call today are Thomas Shannon, our Founder and Chief Executive, and Lev Ekster, our President. I'd like to remind you that during today's conference call, we may make certain forward-looking statements about the company's performance. Such forward-looking statements are not guarantees of future performance, and therefore, one should not place undue reliance on them. Forward-looking statements are also subject to the inherent risks and uncertainties that could cause actual results to differ materially from those expressed.
Bobby Lavan: Good afternoon. This is Bobby Lavan, Lucky Strike's Chief Financial Officer. Welcome to our conference call to discuss Lucky Strike's Q2 2026 earnings. Today, we issued a press release announcing our financial results for the period ended December 28, 2025. A copy of the press release is available in the Investor Relations section of our website. Joining me on the call today are Thomas Shannon, our Founder and Chief Executive, and Lev Ekster, our President. I'd like to remind you that during today's conference call, we may make certain forward-looking statements about the company's performance. Such forward-looking statements are not guarantees of future performance, and therefore, one should not place undue reliance on them. Forward-looking statements are also subject to the inherent risks and uncertainties that could cause actual results to differ materially from those expressed.
Speaker #2: Officer. Welcome to our conference call Lavin, Lucky Strike's Chief Financial Good afternoon. This is Bobby to discuss Lucky Strike's second quarter of 2026 earnings.
Speaker #2: Today, we issue the press release announcing our financial results for the period ending December 28, 2025. A copy of the press release is available in the Investor Relations section of our website.
Speaker #2: Joining me on the call today are Thomas Shannon, Lev Ekster, our president. our founder and chief executive, and I'd like to remind you that during today's conference call, we may make certain forward-looking statements about the company's performance.
Speaker #2: Such forward-looking statements are not guarantees of future performance, and therefore, one should not place undue reliance on them. Forward-looking statements are also subject to the inherent risks and uncertainties that could cause actual results to expressed.
Speaker #2: For additional information concerning factors that could cause actual results to differ from those discussed in our forward-looking statements contained in our press release as well company's filings with the SEC.
Bobby Lavan: For additional information concerning factors that could cause actual results to differ from those discussed in our 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. Lucky Strike Entertainment undertakes no obligation to revise or update any events or circumstances that occur after today's call. Also, during today's call, the company may discuss certain non-GAAP financial measures as defined by SEC Regulation G. The GAAP financial measure is most directly comparable to each non-GAAP financial measure discussed, and the reconciliation of the differences between each non-GAAP financial measure and the comparable GAAP financial measure can be found on the company's website. I'll now turn the call over to Tom.
Bobby Lavan: For additional information concerning factors that could cause actual results to differ from those discussed in our 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. Lucky Strike Entertainment undertakes no obligation to revise or update any events or circumstances that occur after today's call. Also, during today's call, the company may discuss certain non-GAAP financial measures as defined by SEC Regulation G. The GAAP financial measure is most directly comparable to each non-GAAP financial measure discussed, and the reconciliation of the differences between each non-GAAP financial measure and the comparable GAAP financial measure can be found on the company's website. I'll now turn the call over to Tom.
Speaker #2: Lucky Strike Entertainment undertakes no obligation to revise, or update, differ materially from those circumstances that occur after today's call. Also, during today's call, the company may discuss certain non-GAAP financial measures as defined by SEC regulation G.
Speaker #2: The GAAP financial measures most directly comparable to each non-GAAP financial measure discussed in the reconciliation of the differences between each non-GAAP financial measure and the comparable GAAP financial measure could be found on the company's website.
Speaker #2: I will now turn the call over to Tom.
Speaker #3: Thanks, everyone, for joining today's call. We finished the December quarter with a positive same-store sales comp of plus 0.3% and total revenue growth of plus 2.3%.
Thomas Shannon: Thanks, everyone, for joining today's call. We finished the December quarter with a positive same-store sales comp of +0.3% and total revenue growth of +2.3%. The result was driven by continued strength in both our retail and league businesses, while we made steady progress turning around our events business, which ended nearly flat for the quarter, its best showing in years. Retail and leagues performed well throughout the quarter and provided a stable foundation for the comp. Events, which had been the primary drag on same-store sales over the past several quarters, inflected meaningfully in January. The changes we've made to the events organization, pricing, and funnel are beginning to show results. January started off with strong double-digit results.
Thomas Shannon: Thanks, everyone, for joining today's call. We finished the December quarter with a positive same-store sales comp of +0.3% and total revenue growth of +2.3%. The result was driven by continued strength in both our retail and league businesses, while we made steady progress turning around our events business, which ended nearly flat for the quarter, its best showing in years. Retail and leagues performed well throughout the quarter and provided a stable foundation for the comp. Events, which had been the primary drag on same-store sales over the past several quarters, inflected meaningfully in January. The changes we've made to the events organization, pricing, and funnel are beginning to show results. January started off with strong double-digit results.
Speaker #3: The result was driven by continued strength in both our retail and lead businesses, while we made steady progress turning around our events business, its best showing in which ended nearly flat for the quarter years.
Speaker #3: Retail and leads performed well throughout the quarter and provided a stable foundation for the comp. Events, which had been the primary drag on same-store sales over the past several quarters, inflected meaningfully in January.
Speaker #3: The changes we've made to the events organization, pricing, and funnel are beginning to show results. January started off with strong double-digit results. We saw one week of headwinds from the biggest snowstorm this country has seen in a while, and then a return back to momentum of strength of retail, leads, and events.
Thomas Shannon: We saw one week of headwinds from the biggest snowstorm this country has seen in a while, and then a return back to momentum of strength of retail, leagues, and events. During the quarter, we made deliberate investments in payroll, marketing, and elevated activity levels to drive traffic and return the business to positive same-store sales growth. A number of these investments delivered attractive returns and helped establish positive momentum, particularly in retail, leagues, and the early stages of the events turnaround. However, not all of the spending generated the ROI we expected, with incremental labor, in particular, weighing on profitability. As a result, while we remain focused on driving organic growth, we are shifting toward a more balanced approach that places equal emphasis on same-store sales growth and EBITDA expansion. Going forward, investments will be more targeted, more measured, and held to a higher return threshold.
Thomas Shannon: We saw one week of headwinds from the biggest snowstorm this country has seen in a while, and then a return back to momentum of strength of retail, leagues, and events. During the quarter, we made deliberate investments in payroll, marketing, and elevated activity levels to drive traffic and return the business to positive same-store sales growth. A number of these investments delivered attractive returns and helped establish positive momentum, particularly in retail, leagues, and the early stages of the events turnaround. However, not all of the spending generated the ROI we expected, with incremental labor, in particular, weighing on profitability. As a result, while we remain focused on driving organic growth, we are shifting toward a more balanced approach that places equal emphasis on same-store sales growth and EBITDA expansion. Going forward, investments will be more targeted, more measured, and held to a higher return threshold.
Speaker #3: During the quarter, we made deliberate investments in payroll, marketing, and elevated activity levels to drive traffic and return the business to positive same-store sales growth.
Speaker #3: A number of these investments delivered attractive returns and helped establish positive momentum, particularly in retail, leads, and the early stages of the events turnaround.
Speaker #3: However, not all of the spending generated the ROI we expected, with incremental labor in particular weighing on profitability. As a result, while we remain focused on driving organic growth, we are shifting toward a more balanced approach that places equal emphasis on same-store expansion.
Speaker #3: sales growth and EBITDA Going forward, investments will be more targeted, more measured, and held to a higher return threshold. In January, we also closed on the acquisition of Raging in California, which will contribute meaningful EBITDA in the June and September quarters.
Thomas Shannon: In January, we also closed on the acquisition of Raging Waters, the largest water park in California, which will contribute meaningful EBITDA in the June and September quarters. When combined with Wet 'n Wild Emerald Pointe in North Carolina and three new family entertainment centers we've acquired, we expect a significant seasonal lift to earnings as we move through the summer months, reflecting the continued diversification of our portfolio. On the brand front, we opened Lucky Strike Aliso Viejo in Orange County, California, in December, and early results have been encouraging. We now operate approximately 100 Lucky Strike locations and remain on track to sunset the Bowlero brand by the end of this calendar year. Conversions to Lucky Strike have delivered strong lifts, and simplifying the portfolio to two cohesive brands, Lucky Strike and AMF, will drive efficiencies, particularly in marketing spend.
Thomas Shannon: In January, we also closed on the acquisition of Raging Waters, the largest water park in California, which will contribute meaningful EBITDA in the June and September quarters. When combined with Wet 'n Wild Emerald Pointe in North Carolina and three new family entertainment centers we've acquired, we expect a significant seasonal lift to earnings as we move through the summer months, reflecting the continued diversification of our portfolio. On the brand front, we opened Lucky Strike Aliso Viejo in Orange County, California, in December, and early results have been encouraging. We now operate approximately 100 Lucky Strike locations and remain on track to sunset the Bowlero brand by the end of this calendar year. Conversions to Lucky Strike have delivered strong lifts, and simplifying the portfolio to two cohesive brands, Lucky Strike and AMF, will drive efficiencies, particularly in marketing spend.
Speaker #3: When combined with Wet & Wild Emerald Point new family entertainment centers we've acquired, we expect a significant seasonal lift to earnings as we reflecting the continued diversification move through the summer months, of our portfolio.
Speaker #3: On the brand front, we opened Lucky Strike Alyssa in December, and early results have Viejo in Orange County, California, been encouraging. We now operate approximately 100 Lucky Strike locations and remain on year.
Speaker #3: Conversions to Lucky Strike have delivered strong lifts and simplifying the portfolio to two cohesive brands, Lucky Strike and AMF, will drive efficiencies, particularly in marketing spend.
Speaker #3: At the same time, we plan to roll out a refreshed AMF look later this year, that leans into the brand's more than 100-year history.
Thomas Shannon: At the same time, we plan to roll out a refreshed AMF look later this year that leans into the brand's more than 100-year history. This evolution strengthens our value-oriented offering while clearly differentiating it from Lucky Strike, positioning the portfolio for profitable growth and improved returns. With that, let's turn it over to Q&A.
Thomas Shannon: At the same time, we plan to roll out a refreshed AMF look later this year that leans into the brand's more than 100-year history. This evolution strengthens our value-oriented offering while clearly differentiating it from Lucky Strike, positioning the portfolio for profitable growth and improved returns. With that, let's turn it over to Q&A.
Speaker #3: This evolution strengthens our value-oriented offering while clearly differentiating it from portfolio for profitable growth and Lucky Strike, positioning the improved returns. With Q&A.
Speaker #1: Ladies and session. As we answer Q&A, we ask that you please limit your input to one question, please press the star button followed by the question.
Operator: Ladies and gentlemen, we will now begin the question-and-answer session. As we enter Q&A, we ask that you please limit your input to one question. To ask a question, please press the star button followed by the number one on your telephone keypad. If you would like to withdraw your question, please press star one again. One moment, please, for your first question. Your first question comes from the line of Steven Wieczynski of Stifel. Please go ahead.
Operator: Ladies and gentlemen, we will now begin the question-and-answer session. As we enter Q&A, we ask that you please limit your input to one question. To ask a question, please press the star button followed by the number one on your telephone keypad. If you would like to withdraw your question, please press star one again. One moment, please, for your first question. Your first question comes from the line of Steven Wieczynski of Stifel. Please go ahead.
Speaker #1: Gentlemen, we will now begin the question and answer. To ask a question, you would like to withdraw your question, please press star one again. One moment, please, for your first question.
Speaker #1: Your first question comes from the line of
Speaker #4: Yeah, you guys. Good Steve Wieczynski of FIFO.
[Analyst] (Stifel): ... Yeah, hey, guys, good afternoon. So, Bobby, this is probably for you. I, you know, I guess as we kind of think about the results we've seen here, I'm surprised you guys didn't, you know, elect to kind of lower the EBITDA guidance for the full year, or at least, you know, maybe bring the high end of that range down. Based on the EBITDA generation through the first six months, you know, you guys would need to see a pretty significant uptick in the second half of the year to, you know, to kind of get inside of that range at this point. So, like, you know, I guess my question is, what makes you guys feel confident in getting into that range?
Steven Wieczynski: ... Yeah, hey, guys, good afternoon. So, Bobby, this is probably for you. I, you know, I guess as we kind of think about the results we've seen here, I'm surprised you guys didn't, you know, elect to kind of lower the EBITDA guidance for the full year, or at least, you know, maybe bring the high end of that range down. Based on the EBITDA generation through the first six months, you know, you guys would need to see a pretty significant uptick in the second half of the year to, you know, to kind of get inside of that range at this point. So, like, you know, I guess my question is, what makes you guys feel confident in getting into that range?
Speaker #4: Given what we've seen here, I'm surprised you guys, as we kind of think about the results, didn't elect to kind of lower the EBITDA guidance for the full year—at least maybe bring the high end of that range down.
Speaker #4: Based on the EBITDA generation through the first six months, you guys would need to see a pretty to kind of get inside of that range at this point.
Speaker #4: So I guess my question is, what makes you guys feel confident in getting into that range? And look, I understand your commentary just made about how strong the start of the year has been.
[Analyst] (Stifel): And look, I understand your commentary just made about how strong, you know, the start of the year has been.
Steven Wieczynski: And look, I understand your commentary just made about how strong, you know, the start of the year has been.
Speaker #5: Yeah. So I see. If you think about from a numbers perspective, the past two years we've had this $300 million business being really a drag on our results.
Bobby Lavan: Yeah. So if you think about from a numbers perspective, the past two years, we've had this $300 million business being really a drag on our results. You know, it's a drag on our financial results, you know, but also events is sort of tip of the spear as a lead gen for the business. That business has turned, you know, as Tom said in the press release, that business had organic growth in January, February. When you compound that with retail being up mid-single digits, league being up mid-single digits, you know, we're still within the parameters of our guidance.
Bobby Lavan: Yeah. So if you think about from a numbers perspective, the past two years, we've had this $300 million business being really a drag on our results. You know, it's a drag on our financial results, you know, but also events is sort of tip of the spear as a lead gen for the business. That business has turned, you know, as Tom said in the press release, that business had organic growth in January, February. When you compound that with retail being up mid-single digits, league being up mid-single digits, you know, we're still within the parameters of our guidance.
Speaker #5: It's a drag on our financial results. But also events is sort of tip of the spear as a lead gen for the business. That business has turned as Tom said and as commentary we said in the press release, that business had organic growth in January, February.
Speaker #5: When you compound that with digits, lead being up mid-single retail being up mid-single within the paradigms of our digits, we're still guidance. We when we talked last quarter, we were very focused on people not getting super excited about the December quarter because we still had this corporate events business, which was front-end loaded in December, as expected corporate events are down.
Bobby Lavan: You know, when we talked last quarter, we were very focused on people not getting super excited about the December quarter, because we still had this corporate events business, which was front-end loaded in December. As expected, corporate events are down, but then you got into the third and fourth week of December, and our consumer events and our retail were on fire, and the first three weeks of January, the business was up double digits. So, you know, our confidence in the business is very high. We invested to get there, and now we need to pull back some of those investments. But, you know, we're definitely still within confines of our guidance we gave out in August.
Bobby Lavan: You know, when we talked last quarter, we were very focused on people not getting super excited about the December quarter, because we still had this corporate events business, which was front-end loaded in December. As expected, corporate events are down, but then you got into the third and fourth week of December, and our consumer events and our retail were on fire, and the first three weeks of January, the business was up double digits. So, you know, our confidence in the business is very high. We invested to get there, and now we need to pull back some of those investments. But, you know, we're definitely still within confines of our guidance we gave out in August.
Speaker #5: But then you got into the third and fourth week of December, and our consumer events and our retail were on fire. And the first three weeks of January the business was up a couple of digits.
Speaker #5: So our confidence in the business is very high. We invested to get there. And now we need to pull back some of those investments.
Speaker #5: But we're definitely still within confines of our guidance we gave out in
Speaker #5: August. Okay, Bobby.
[Analyst] (Stifel): Oh, okay, bye. It- that, that makes sense. And then maybe if I could add one more, one more real quick. You know, wanna ask, you know, how we should think then about kind of, you know, a flow- like, how the flow-through would look for the rest of the year. Obviously, you know, you guys, you know, were investing, it seems like, pretty heavily in the, you know, in the corporate events business and turning that around through December. So, you know, maybe a better way to ask that is, you know, how much of a drag was that on, you know, on margins in the, you know, in your Q2? I-- Hopefully that makes sense.
Steven Wieczynski: Oh, okay, bye. It- that, that makes sense. And then maybe if I could add one more, one more real quick. You know, wanna ask, you know, how we should think then about kind of, you know, a flow- like, how the flow-through would look for the rest of the year. Obviously, you know, you guys, you know, were investing, it seems like, pretty heavily in the, you know, in the corporate events business and turning that around through December. So, you know, maybe a better way to ask that is, you know, how much of a drag was that on, you know, on margins in the, you know, in your Q2? I-- Hopefully that makes sense.
Speaker #4: That makes sense. And then maybe, if I could add one more real quick—I want to ask how we should think, then, about how the flow-through would look for the rest of the year.
Speaker #4: Obviously, you guys were investing, it seems like, pretty heavily in the corporate events business and turning that around through December. So maybe a better way to ask that is: how much of a drag was that on margins in your second quarter?
Speaker #4: sense.
Bobby Lavan: Yeah. So, you know, there are three buckets, I would say, of direct drag. So center payroll, on comp basis, was up $6 million year-over-year, right? Two, you know, we talked about, and we flagged very heavily the marketing investment. Marketing investment on a year-over-year basis was up $4 million, and the marketing team investment on a year-over-year basis was up $1 million, right? So ultimately, finding the right balance on those numbers and organic growth is what we think we've gotten to in January. You know, we're very happy with the January results, but we're gonna, you know, ultimately optimize those numbers to make sure that, you know, we're getting the appropriate flow-through.
Bobby Lavan: Yeah. So, you know, there are three buckets, I would say, of direct drag. So center payroll, on comp basis, was up $6 million year-over-year, right? Two, you know, we talked about, and we flagged very heavily the marketing investment. Marketing investment on a year-over-year basis was up $4 million, and the marketing team investment on a year-over-year basis was up $1 million, right? So ultimately, finding the right balance on those numbers and organic growth is what we think we've gotten to in January. You know, we're very happy with the January results, but we're gonna, you know, ultimately optimize those numbers to make sure that, you know, we're getting the appropriate flow-through.
Speaker #5: are two there are three buckets, I would say, of direct drags. So center payroll on comp basis was up 6 million year over year.
Speaker #5: Right? Two we talked about and we flagged very heavily the marketing investment. The marketing investment on a year-over-year basis was up 4 million. And the marketing team investment on a year-over-year basis was up a million.
Speaker #5: Right? So ultimately, finding the right balance on those numbers and organic growth is what we think we've gotten to in January. We're very happy with the January results.
Speaker #5: But we're going to ultimately optimize those numbers to make sure that we're getting the appropriate flow-through. And from our expectations, you should growth in a material way in the fourth quarter.
Bobby Lavan: You know, and you know, from our expectations, you should see margin growth in a material way in the Q4, as all the water parks and the Boomers go from being $a few million a quarter of drag to significant EBITDA.
Bobby Lavan: You know, and you know, from our expectations, you should see margin growth in a material way in the Q4, as all the water parks and the Boomers go from being $a few million a quarter of drag to significant EBITDA.
Speaker #5: As all the water parks and the boomers go from being a few million a quarter of drag see margin
Speaker #5: EBITDA. Okay.
[Analyst] (Stifel): Okay. That's helpful. Thanks, guys. Really appreciate it.
Steven Wieczynski: Okay. That's helpful. Thanks, guys. Really appreciate it.
Speaker #4: That's helpful. Thanks. I really appreciate it.
Operator: Your next question comes from the line of Matthew Voss of J.P. Morgan. Please go ahead.
Operator: Your next question comes from the line of Matthew Voss of J.P. Morgan. Please go ahead.
Speaker #1: Your next question comes from the line of Matthew Boss of JP Morgan. Please go ahead.
Speaker #6: Great. Thanks. So could you you've made to date to elaborate on progress with your initiatives that rebuild the events business or specifically drivers you think underlying this recent inflection in the events business relative to the headwinds that you faced on that side of the house in the first half of the year?
[Analyst] (J.P. Morgan): Great, thanks. So could you elaborate on progress with your initiatives that you've made to date to rebuild the events business? Or, specifically, drivers you think underlying this recent inflection in the events business, relative to the headwinds that you faced on that side of the house in the first half of the year?
Matthew Boss: Great, thanks. So could you elaborate on progress with your initiatives that you've made to date to rebuild the events business? Or, specifically, drivers you think underlying this recent inflection in the events business, relative to the headwinds that you faced on that side of the house in the first half of the year?
Speaker #5: Yeah. We chased price for two years. So if you called us and you wanted a discount, we would give it to you. Now, discounts are an important part of any sort of location-based entertainment in the summer for Monday company.
Bobby Lavan: Yeah, we chased price for 2 years, so if you called us and you wanted a discount, we would give it to you. Now, discounts are an important part of any sort of location-based entertainment company. You know, if you call in the summer or Monday afternoon, you know, a discount is warranted. But if you call for a Thursday at Times Square in December, we, we shouldn't give you a discount, because demand is greater than the supply. And so in September, we built out dynamic pricing reporting systems, and when we looked at where we were tracking in September, we were tracking for our events business to be down double digits, and we brought it all the way back. And that was really less through volume and more through dynamic pricing. And that is something that has dramatically changed over the past few years.
Bobby Lavan: Yeah, we chased price for 2 years, so if you called us and you wanted a discount, we would give it to you. Now, discounts are an important part of any sort of location-based entertainment company. You know, if you call in the summer or Monday afternoon, you know, a discount is warranted. But if you call for a Thursday at Times Square in December, we, we shouldn't give you a discount, because demand is greater than the supply. And so in September, we built out dynamic pricing reporting systems, and when we looked at where we were tracking in September, we were tracking for our events business to be down double digits, and we brought it all the way back. And that was really less through volume and more through dynamic pricing. And that is something that has dramatically changed over the past few years.
Speaker #5: warranted. If you call But if you call for a Thursday at Times Square we shouldn't give you a discount because the demand is greater than the supply.
Speaker #5: And so in September, we built out afternoon, a discount is dynamic pricing reporting in December, tracking in September, we were tracking for our events business to be down we brought it all the way back.
Speaker #5: And that was really less through volume and more through dynamic pricing. And that is something that has dramatically changed over the past few years.
Bobby Lavan: You know, the volume, it's hard on the corporate side. You know, that's business that we need to build functions to kind of build, you know, our marketing function to get our name out there more. But, you know, also our marketing, which has really helped the kids' birthday parties and consumer parties. So pricing has been paramount, and also the partnership with marketing is, is really a key change for the business.
Bobby Lavan: You know, the volume, it's hard on the corporate side. You know, that's business that we need to build functions to kind of build, you know, our marketing function to get our name out there more. But, you know, also our marketing, which has really helped the kids' birthday parties and consumer parties. So pricing has been paramount, and also the partnership with marketing is, is really a key change for the business.
Speaker #5: The volume is hard on the corporate side. That's business that we need to build double digits. functions to kind of build our marketing function And to get our name out there more.
Speaker #5: But also, our marketing, which is really healthy, kids' birthday parties and consumer parties, so pricing has been paramount and also the partnership with marketing is really a sea change for the business.
[Analyst] (J.P. Morgan): Maybe to that point, Bobby, could you elaborate on which investments you made in Q2 that you saw translate directly to an improved traffic or same center comps? And then just how best to think about the continued investments as we think about the Q3 or Q4, as I think you mentioned, balancing margin in the back half of the year, and particularly it sounds like the fourth quarter.
Speaker #6: And maybe to that point, Bobby, could you elaborate on which investments you made in the second quarter that you saw translate directly to an comps?
Speaker #6: And maybe to that point, Bobby, could you elaborate on which investments you made in the second quarter that you saw translate directly to an improved traffic or same-center think about the continued investments as we think about the third or the fourth quarter as I think you mentioned balancing margin in the back half of the year and particularly it sounds like the fourth quarter.
Matthew Boss: Maybe to that point, Bobby, could you elaborate on which investments you made in Q2 that you saw translate directly to an improved traffic or same center comps? And then just how best to think about the continued investments as we think about the Q3 or Q4, as I think you mentioned, balancing margin in the back half of the year, and particularly it sounds like the fourth quarter.
Speaker #5: So I'm going to hand it over to Lev because hey, Matt. So you saw we made a significant increase to our marketing budget and that was an investment in building our brand and increasing the brand awareness.
Bobby Lavan: ... So I'm going to hand it over to Lev, 'cause you-
Bobby Lavan: ... So I'm going to hand it over to Lev, 'cause you-
Lev Ekster: Hey, Matt. So you saw we made a significant increase to our marketing budget, and that was an investment in building our brand and increasing the brand awareness. We feel like it was, for the most part, a pretty worthy investment. In fact, we saw our media impressions in the quarter increase 200%. Q2 of prior year, we had 340 million impressions. Q2 of this year, we exceeded over 1 billion impressions, and that also converted. We saw online revenue increase 28% year over year, and booking conversions improved 2x. The rebrands of Lucky Strike, of which we did 30 in Q2, are also bearing fruit, and we anticipate being done with all of those rebrands this calendar year, which would put us right around 218 Lucky Strike locations.
Lev Ekster: Hey, Matt. So you saw we made a significant increase to our marketing budget, and that was an investment in building our brand and increasing the brand awareness. We feel like it was, for the most part, a pretty worthy investment. In fact, we saw our media impressions in the quarter increase 200%. Q2 of prior year, we had 340 million impressions. Q2 of this year, we exceeded over 1 billion impressions, and that also converted. We saw online revenue increase 28% year over year, and booking conversions improved 2x. The rebrands of Lucky Strike, of which we did 30 in Q2, are also bearing fruit, and we anticipate being done with all of those rebrands this calendar year, which would put us right around 218 Lucky Strike locations.
Speaker #5: We feel like it was, for the most part, a pretty worthy investment. In fact, we saw our medium impressions in the quarter increase 200%.
Speaker #5: Q2 of prior year, we had 340 million impressions. Q2 of this year, we exceeded over a billion impressions. And that also converted. We saw online revenue increase 28% year over year and booking conversions improved 2X.
Speaker #5: The rebrands of Lucky Strike, of which we did 30 in Q2, are also bearing fruit. And we anticipate being done with all of those rebrands this calendar year, which would put us right around locations.
Speaker #5: But when you consider the efficiency of going from three brands to two, it really helps our national awareness. I also want to mention that the marketing investment increased our share of voice.
Lev Ekster: But when you consider the efficiency of going from three brands to two, it really helps our national awareness. I also want to mention that the marketing investment increased our share of voice, so our search impressions climbed significantly. In fact, it was a 520% increase, but we also saw efficiency with our CPMs decreasing by 38%. So from a high level, marketing increased, but largely as an investment in brand building, and we saw the benefits of that in January, and I think that's going to continue as we scale the rebrands of Lucky Strike.
Lev Ekster: But when you consider the efficiency of going from three brands to two, it really helps our national awareness. I also want to mention that the marketing investment increased our share of voice, so our search impressions climbed significantly. In fact, it was a 520% increase, but we also saw efficiency with our CPMs decreasing by 38%. So from a high level, marketing increased, but largely as an investment in brand building, and we saw the benefits of that in January, and I think that's going to continue as we scale the rebrands of Lucky Strike.
Speaker #5: So our search impressions climbed significantly. In fact, it was at 520% increase. But we also saw efficiency with our CPMs decreasing So from a high level, marketing increase, brand building.
Speaker #5: And we saw the benefits of that's going to continue as we scale the rebrands of Lucky
Speaker #5: Strikes. Great.
Bobby Lavan: Great. Best of luck.
Matthew Boss: Great. Best of luck.
Speaker #6: Best of
Speaker #5: Thank you.
Lev Ekster: Thank you.
Lev Ekster: Thank you.
Speaker #1: Your next question comes from the
Operator: Your next question comes from the line of Jason Tilchen of Canaccord Genuity. Please go ahead.
Operator: Your next question comes from the line of Jason Tilchen of Canaccord Genuity. Please go ahead.
Speaker #1: Line of Jason Tilchen of Canaccord Genuity. Please go ahead. Luck.
[Analyst] (Canaccord Genuity): Good afternoon, and thanks for taking my question. I was wondering if we could talk about the food and beverage sales that you saw during the quarter. It was a little bit below what we were expecting. And I'm just curious sort of how attach rates trended and what are some of the benefits you're starting to see from sort of the increased emphasis on training and some of the tablet implementation that you guys are rolling out? Thanks.
Jason Tilchen (Canaccord Genui: Good afternoon, and thanks for taking my question. I was wondering if we could talk about the food and beverage sales that you saw during the quarter. It was a little bit below what we were expecting. And I'm just curious sort of how attach rates trended and what are some of the benefits you're starting to see from sort of the increased emphasis on training and some of the tablet implementation that you guys are rolling out? Thanks.
Speaker #7: question. I was wondering if we could talk about the food and beverage sales that you saw during that in January.
Speaker #7: The quarter—it was a little bit below what we were expecting. And I'm just, I think, curious sort of how attach rates trended, and what are some of the benefits you're starting to see from the increased emphasis on training and some of the tablet implementation that you guys are rolling out.
Speaker #7: Thanks.
Speaker #5: So our retail comp was just shy of 2%, at 1.7%, but our retail food was at 10.9%. Still continues to outperform. And while alcohol was a bit of a drag, with retail alcohol down right around 4.7%, we saw that our retail non-alcoholic comp grew more than the drag.
Lev Ekster: So our retail comp was just shy of 2% at 1.7%, but our retail food was at 10.9%, so it continues to outperform. And while alcohol was a bit of a drag, with retail alcohol down right around 4.7%, we saw that our retail non-alcoholic comp grew more than the drag, so that increased 26.2% or $2 million. So in terms of food and beverage, it's pretty dynamic. We're seeing, obviously, as a society, the decrease in alcohol consumption, but we continue to invest in our zero-proof program. So we launched, as you remember, craft lemonades earlier in the year. That has a run rate of over $5 million.
Lev Ekster: So our retail comp was just shy of 2% at 1.7%, but our retail food was at 10.9%, so it continues to outperform. And while alcohol was a bit of a drag, with retail alcohol down right around 4.7%, we saw that our retail non-alcoholic comp grew more than the drag, so that increased 26.2% or $2 million. So in terms of food and beverage, it's pretty dynamic. We're seeing, obviously, as a society, the decrease in alcohol consumption, but we continue to invest in our zero-proof program. So we launched, as you remember, craft lemonades earlier in the year. That has a run rate of over $5 million.
Speaker #5: So that increased 26.2% or $2 million. So in terms of food and beverage, it's pretty dynamic. We're seeing, obviously, as a society, the decrease in alcohol consumption.
Speaker #5: But we continue to invest in our zero-proof program. So we launched as you remember, Kraft Lemonades earlier in the year. That's has a run rate of over 5 million dollars.
Speaker #5: And with the success of Kraft Lemonades, later this quarter, we plan to introduce 30 soda programming to our traditional properties and boba drinks to our experiential properties.
Lev Ekster: With the success of craft lemonades, later this quarter, we plan to introduce dirty soda programming to our traditional properties and boba drinks to our experiential properties, and we anticipate similar results. We're also, for the first time ever, going to introduce a zero-proof program to our AMF properties, our traditional locations. They've never had a mocktail program. So we're just changing with the times, investing more in zero-proof, and it's working. What also is working is our tablets. So we introduced server tablets. Today, we sit at 125 locations with server tablets, and we're seeing the average check size increase about 7%, with increased gratuities for the associates using the server tablets. By March, we're going to have server tablets in 160 of our locations, and we're going to continue to evaluate as we scale that.
Lev Ekster: With the success of craft lemonades, later this quarter, we plan to introduce dirty soda programming to our traditional properties and boba drinks to our experiential properties, and we anticipate similar results. We're also, for the first time ever, going to introduce a zero-proof program to our AMF properties, our traditional locations. They've never had a mocktail program. So we're just changing with the times, investing more in zero-proof, and it's working. What also is working is our tablets. So we introduced server tablets. Today, we sit at 125 locations with server tablets, and we're seeing the average check size increase about 7%, with increased gratuities for the associates using the server tablets. By March, we're going to have server tablets in 160 of our locations, and we're going to continue to evaluate as we scale that.
Speaker #5: And we anticipate similar results also for the first time ever going to introduce a zero-proof program to our AMF properties, our traditional locations. They've never had a mocktail program.
Speaker #5: So we're just changing with the times, investing more in zero-proof. And it's working. What also is working is our tablets. So we introduce server tablets today.
Speaker #5: We sit at 125 locations with server tablets, and we’re seeing the average check size increase about 7%, with increased gratuities for the associates using the server tablets.
Speaker #5: By March, we're going to have server tablets in 160 of our locations. And we're going to continue to evaluate as we scale that. But ultimately, as Tom mentioned, we increase service labor in Q2.
Lev Ekster: But ultimately, as Tom mentioned, we increased service labor in Q2, and some of it worked, and we saw retail comp growth. Some of it was inefficient, and we had to evaluate that. So we've actually recently trimmed some of our least profitable operating hours as a result of that, and we're looking at in-and-out times of our associates to make sure that they're very productive. But that investment in labor, increased service labor for our guests, and our increased hospitality training is working because we've now seen for 14 straight months our NPS score comp from prior year. In fact, it hit our highest point of 78.7% in October. So from a hospitality perspective, from a retail growth perspective, the service is working. We just want to optimize it.
Lev Ekster: But ultimately, as Tom mentioned, we increased service labor in Q2, and some of it worked, and we saw retail comp growth. Some of it was inefficient, and we had to evaluate that. So we've actually recently trimmed some of our least profitable operating hours as a result of that, and we're looking at in-and-out times of our associates to make sure that they're very productive. But that investment in labor, increased service labor for our guests, and our increased hospitality training is working because we've now seen for 14 straight months our NPS score comp from prior year. In fact, it hit our highest point of 78.7% in October. So from a hospitality perspective, from a retail growth perspective, the service is working. We just want to optimize it.
Speaker #5: associates to make sure that they're very productive. But that investment in labor increased service labor for our guests. And our increased hospitality training is working because we've now seen for 14 straight months our MPS score comp from prior year in fact, it hit our highest point of 78.7% in October.
Speaker #5: So from a hospitality perspective, from a retail growth perspective, the service is working. We just want to optimize it.
Speaker #1: Your next question comes from the line of Ian Zaffino, Oppenheimer. Please go ahead.
Operator: Your next question comes from the line of Ian Zaffino of Oppenheimer. Please go ahead.
Operator: Your next question comes from the line of Ian Zaffino of Oppenheimer. Please go ahead.
Speaker #1: ahead. Hi, Grace.
[Analyst] (Oppenheimer): Hi, great. Thank you very much. You know, I know you guys mentioned some of the investment that you're making and upping the return that you're expecting. You know, can you give us maybe kind of particulars of what was unexpected? I think you mentioned labor, but anything else? And then, how are you actually accounting for some of the line items as you get to the return that you want to get to? Thanks.
Ian Zaffino: Hi, great. Thank you very much. You know, I know you guys mentioned some of the investment that you're making and upping the return that you're expecting. You know, can you give us maybe kind of particulars of what was unexpected? I think you mentioned labor, but anything else? And then, how are you actually accounting for some of the line items as you get to the return that you want to get to? Thanks.
Speaker #8: Thank you very much. I know you guys mentioned some of the the return that you're expecting. Can you give us maybe kind of particulars of what was unexpected? labor, but anything else?
Speaker #8: Thank you very much. I know you guys mentioned some of the the return that you're expecting. Can you give us maybe kind of particulars of what was unexpected?
Speaker #8: And then the line items as you get to the return that you want to get to? I think you mentioned
Speaker #8: Thanks. Yeah.
Speaker #5: I mean, the investments are focused how are you actually accounting for some of on center payroll, marketing, infrastructure at the water parks, boomers, and then what I would call the other bucket or the incremental activity bucket.
Bobby Lavan: I mean, the investments are focused on center payroll, marketing, infrastructure at the water parks, Boomers, and then what I would call the other bucket or the incremental activity bucket. The center payroll, as you know, as Lev spoke at, we look center by center, we look at the amount of payroll we added, and we identify where that payroll delivered a return or didn't deliver a return, right? You know, returns are, in this world, you know, ultimately, you know, average labor is going to cost you $25, $30 an hour. And if you're not getting the revenue to justify that, then you know, you shouldn't be investing in labor, right? We're an incremental margin business. You know, the revenue, the incremental revenue has to be greater than the incremental cost of labor.
Bobby Lavan: I mean, the investments are focused on center payroll, marketing, infrastructure at the water parks, Boomers, and then what I would call the other bucket or the incremental activity bucket. The center payroll, as you know, as Lev spoke at, we look center by center, we look at the amount of payroll we added, and we identify where that payroll delivered a return or didn't deliver a return, right? You know, returns are, in this world, you know, ultimately, you know, average labor is going to cost you $25, $30 an hour. And if you're not getting the revenue to justify that, then you know, you shouldn't be investing in labor, right? We're an incremental margin business. You know, the revenue, the incremental revenue has to be greater than the incremental cost of labor.
Speaker #5: Payroll, the center as Lev spoke at, we look center by center. We look at the amount of payroll we added, and we identify where that payroll delivered a return.
Speaker #5: Or it didn't deliver a return, right? Returns are in this world ultimately average labor is going to cost you $25, $30 an hour. And if you're not getting the revenue to justify that, then you shouldn't be investing in labor, right?
Speaker #5: We're an incremental margin business. The incremental revenue has to be greater than the incremental cost of it. From a marketing perspective, right now, we're injecting capital into a system that has generally been starved of marketing.
Bobby Lavan: You know, from a marketing perspective, you know, right now, we're injecting capital into a system that has generally been starved of marketing. We're watching impressions very strategically. We are testing market by market. And so, you know, the first market we leaned into was in New York. New York City, we increased marketing spend, we rebranded Times Square, Chelsea Piers, Lucky Strike, and both of those centers comped double digits in Q2, right? At the same time, we have a state like Colorado, where we have a hodgepodge of Bowleros, Lucky Strikes, and AMF, so it's harder to test that marketing spend, and that's why the rebrand is so important to get done this year. As it relates to the water parks and the FECs, you know, these businesses have been starved of management labor.
Bobby Lavan: You know, from a marketing perspective, you know, right now, we're injecting capital into a system that has generally been starved of marketing. We're watching impressions very strategically. We are testing market by market. And so, you know, the first market we leaned into was in New York. New York City, we increased marketing spend, we rebranded Times Square, Chelsea Piers, Lucky Strike, and both of those centers comped double digits in Q2, right? At the same time, we have a state like Colorado, where we have a hodgepodge of Bowleros, Lucky Strikes, and AMF, so it's harder to test that marketing spend, and that's why the rebrand is so important to get done this year. As it relates to the water parks and the FECs, you know, these businesses have been starved of management labor.
Speaker #5: We're watching impressions, very strategically. We are testing market by market. And so the first market, we leaned into, was in New York. New York City, we increased marketing spend.
Speaker #5: Lucky Strike. And both of those centers comp double digits quarter, right? At the same time, we have a state like Colorado where we have a hodgepodge of boleros, Lucky We in the second Strikes, and AMF.
Speaker #5: So, it's harder to test that marketing spend. And that's why the rebrand is so important to get done this year. As it relates to the water parks, the FCCs, these businesses have been starved of management labor.
Bobby Lavan: We think that there's massive opportunities on awareness, on investing capital into these locations. We saw that with the robust performance at Boomers, you know, guests in water parks that we bought a year and a half ago, you know, that water park was up 20% year-over-year last summer. So we continue to lean into that team, but that team does drive, you know, a multimillion-dollar drag in the off-season, but then you get that EBITDA and more back. You know, and then the one that we found had the least returns was just kind of incremental activity. So we had more programs. More programs mean that you're spending money faster, you're ultimately dealing with marketing materials, collateral in the centers, uniforms, that you're not being as efficient.
Speaker #5: We think that there's massive opportunities on awareness, on investing capital, into these locations. We saw that with the robust performance at Boomers. Guests in water parks that we bought a year and a half ago—that water park was up 20% year over year last summer.
Bobby Lavan: We think that there's massive opportunities on awareness, on investing capital into these locations. We saw that with the robust performance at Boomers, you know, guests in water parks that we bought a year and a half ago, you know, that water park was up 20% year-over-year last summer. So we continue to lean into that team, but that team does drive, you know, a multimillion-dollar drag in the off-season, but then you get that EBITDA and more back. You know, and then the one that we found had the least returns was just kind of incremental activity. So we had more programs. More programs mean that you're spending money faster, you're ultimately dealing with marketing materials, collateral in the centers, uniforms, that you're not being as efficient.
Speaker #5: So we continue to lean into that team. But that team does drive a multimillion-dollar drag in the off-seasons that then you get that EBITDA and more back.
Speaker #5: And then the one that we found had the least returns was just kind of incremental activity. So we had more programs, meaning that you're spending money faster.
Speaker #5: You're ultimately dealing with marketing materials, collateral, in the center of the uniforms that you're not being as efficient. And those are the things that we're going to plan better pull back on and really focus on service labor and marketing that drives the top line.
Bobby Lavan: Those are the things that we're going to plan better, pull back on, and really focus on service, labor, and marketing that drives the top line.
Bobby Lavan: Those are the things that we're going to plan better, pull back on, and really focus on service, labor, and marketing that drives the top line.
Speaker #1: Next question comes from the line of Eric Handler of Roth Capital. Please go
Operator: Next question comes from the line of Eric Handler of Roth Capital. Please go ahead.
Operator: Next question comes from the line of Eric Handler of Roth Capital. Please go ahead.
Speaker #1: ahead. Good
[Analyst] (Roth Capital): Good afternoon. Thanks for the question. So we're now about, let's call it, 3.5 months away from Memorial Day, when a lot of the regional water parks will be opening. You know, as you sort of—when customers show up on a sort of like-to-like basis, where are they gonna notice the biggest changes in operations?
Eric Handler: Good afternoon. Thanks for the question. So we're now about, let's call it, 3.5 months away from Memorial Day, when a lot of the regional water parks will be opening. You know, as you sort of—when customers show up on a sort of like-to-like basis, where are they gonna notice the biggest changes in operations?
Speaker #9: afternoon. Thanks for the question. So we're now about, let's call it, three and a half months away from Memorial Day when a lot of As you sort of when customers show the regional water up, and I'll sort of on a like-for-like basis, where are they going to notice the biggest changes in operations?
Speaker #9: afternoon. Thanks for the question. So we're now about, let's call it, three and a half months away from Memorial Day when a lot of As you sort of when customers show the regional water up, and I'll sort of on a like-for-like basis, where are they going to notice the biggest changes in
Thomas Shannon: Hi, this is Tom Shannon. We've been investing in all of these assets really from shortly after we acquired them, and one of the reasons that Big Kahuna's in Destin was up 20% is it got a comprehensive facelift. It was done very efficiently. It was done largely within park labor, but there were a lot of--there was a lot of rot, literally, in the park, where you had things like bridges that were dilapidated, fences that were not, you know, appealing or maybe even structurally sound. The team in the off-season went through the entire park. They rebuilt seven bridges. They probably replaced half of the fencing. They painted literally everything, gel-coated the slides, replaced, you know, malfunctioning pumps, lighting, et cetera, and the park looked effectively new, and the customers responded. We've done the same on the Boomers.
Thomas Shannon: Hi, this is Tom Shannon. We've been investing in all of these assets really from shortly after we acquired them, and one of the reasons that Big Kahuna's in Destin was up 20% is it got a comprehensive facelift. It was done very efficiently. It was done largely within park labor, but there were a lot of--there was a lot of rot, literally, in the park, where you had things like bridges that were dilapidated, fences that were not, you know, appealing or maybe even structurally sound. The team in the off-season went through the entire park. They rebuilt seven bridges. They probably replaced half of the fencing. They painted literally everything, gel-coated the slides, replaced, you know, malfunctioning pumps, lighting, et cetera, and the park looked effectively new, and the customers responded. We've done the same on the Boomers.
Speaker #10: really from shortly after reasons that big kahuna we acquired them. And one of the investing was up 20% is it got a comprehensive facelift.
Speaker #10: It was done very efficiently. It was done largely within park labor. But there were a lot of there was a lot of rot, literally, in the park where you had things like bridges that were dilapidated, fences that were not appealing or maybe even structurally sound.
Speaker #10: And the team in the off-season went through the entire park; they rebuilt seven bridges, they probably replaced half of the fencing, they painted literally everything gel-coated the slides, replaced malfunctioning pumps, lighting, etc.
Speaker #10: And the park looked effectively new. And the customers responded. We've done the same on the boomers. So the preliminary numbers I have on the boomers the legacy boomers that we've owned for more than a year, they're up in revenue 25% over the last two weeks.
Thomas Shannon: So, the preliminary numbers I have on the Boomers, the legacy Boomers that we've owned for more than a year, they're up in revenue 25% over the last two weeks. That's six large locations from Boca Raton to Irvine, Livermore, Modesto, et cetera. They all benefited from meaningful capital investment and some very efficient capital investment. I think you're gonna see that in all of the parks, with the exception of probably Raging Waters, which we literally just closed on. We'll do our best to upgrade aspects of that. But when the guest comes, they're gonna see something they haven't seen in a long time, and that is a really refreshed, really appealing, and upscale water park or family entertainment center. Where we've made the investments, we've seen the return.
Thomas Shannon: So, the preliminary numbers I have on the Boomers, the legacy Boomers that we've owned for more than a year, they're up in revenue 25% over the last two weeks. That's six large locations from Boca Raton to Irvine, Livermore, Modesto, et cetera. They all benefited from meaningful capital investment and some very efficient capital investment. I think you're gonna see that in all of the parks, with the exception of probably Raging Waters, which we literally just closed on. We'll do our best to upgrade aspects of that. But when the guest comes, they're gonna see something they haven't seen in a long time, and that is a really refreshed, really appealing, and upscale water park or family entertainment center. Where we've made the investments, we've seen the return.
Speaker #10: And that's six large locations from Boca Raton to Irvine that were more Modesto, etc. They all benefited from meaningful capital investment and some very efficient capital investment.
Speaker #10: I think you're going to see that in all of the parks with the exception of probably Raging Waters, which we literally just closed on.
Speaker #10: We'll do our best to upgrade aspects of that. But when the guest comes, they're going to see something they haven't seen in a long time.
Speaker #10: And that is a really refreshed, really appealing, and upscale water park or family entertainment center. Where we've made the investments, we've seen the return. I think we've seen a better return than we would have reasonably expected or even hoped for.
Thomas Shannon: I think we've seen a better return than we would have reasonably expected or even hoped for.
Thomas Shannon: I think we've seen a better return than we would have reasonably expected or even hoped for.
Speaker #1: Your next of Texas Capital Securities. question comes from the line of Eric Walt Please go
Operator: Your next question comes from the line of Eric Wall of Texas Capital Securities. Please go ahead.
Operator: Your next question comes from the line of Eric Wall of Texas Capital Securities. Please go ahead.
Speaker #9: Thank you. Good afternoon. I just have a question, kind of following up on the very first question out of the gate around the guidance range, Bobby.
[Analyst] (Texas Capital Securities): Thank you. Good afternoon. I just have a question, kind of following up on the very first question out of the gate around the guidance range, Bobby. I guess, you know, January done, so five-ish months left in the fiscal year. You know, maybe talk about the biggest variables between kind of the $50 million high and low end range of revenue and $40 million on EBITDA, the biggest variable that would take it, in your mind, from the high end to the low end, or vice versa. And then, you know, which of those are most in your control, you know, like marketing, maintenance, things like that, versus something that maybe is a little less out of your control?
Eric Wold: Thank you. Good afternoon. I just have a question, kind of following up on the very first question out of the gate around the guidance range, Bobby. I guess, you know, January done, so five-ish months left in the fiscal year. You know, maybe talk about the biggest variables between kind of the $50 million high and low end range of revenue and $40 million on EBITDA, the biggest variable that would take it, in your mind, from the high end to the low end, or vice versa. And then, you know, which of those are most in your control, you know, like marketing, maintenance, things like that, versus something that maybe is a little less out of your control?
Speaker #9: I guess in January done, so five-ish months left in the fiscal year. Maybe talk about the biggest variables between kind of the $50 million high and low end range of revenue and $40 million on EBITDA, the biggest variables that would take it, in your mind, from the high end to the low end or vice versa.
Speaker #9: And then which of those are control, like marketing, maintenance, things like that versus something that maybe is a little less out of most, in your your control?
Speaker #10: Yeah. So if you go for six months, the comp is flat, right? The comp is unbelievably easy for the next six months—or five months, I guess—on the event side.
Bobby Lavan: Yeah, so if you go for six months, the comp is flat, right? The comp is unbelievably easy for the next six months or five months, I guess, on the event side, right? Additionally, leaning more into summer season passes. You know, last year we did $13 million. You know, we think we can beat that significantly this year. You know, and, and most important is gonna be how profitable the Boomers Emerald Pointe, which is, you know, the biggest water park in North Carolina, Raging Waters, which is the biggest water park in California, Raging Waves, biggest water park in Illinois. All of these, we've invested in. We've done what we did to the legacy Boomers, and you remember we bought, you know, the legacy Boomers for $27 million, and those properties are doing $16 million of EBITDA at this point.
Bobby Lavan: Yeah, so if you go for six months, the comp is flat, right? The comp is unbelievably easy for the next six months or five months, I guess, on the event side, right? Additionally, leaning more into summer season passes. You know, last year we did $13 million. You know, we think we can beat that significantly this year. You know, and, and most important is gonna be how profitable the Boomers Emerald Pointe, which is, you know, the biggest water park in North Carolina, Raging Waters, which is the biggest water park in California, Raging Waves, biggest water park in Illinois. All of these, we've invested in. We've done what we did to the legacy Boomers, and you remember we bought, you know, the legacy Boomers for $27 million, and those properties are doing $16 million of EBITDA at this point.
Speaker #10: Right? Additionally, we're leaning more into summer season pass. Last year, we did $13 million; we think we can beat that significantly this year. And most important is going to be how profitable the boomers' emerald point, which is the biggest water park in North Carolina, Raging Waters, which is the biggest water park in California, Raging Waves, biggest water park in Illinois, all of these are we've invested in.
Speaker #10: We've done what we did to the legacy boomers. And remember, we bought the legacy boomers for $27 million, and those properties are doing $16 million of EBITDA at this point.
Bobby Lavan: We think we can, you know, get to not exactly there, but close on the water parks. And so how profitable the water parks gone with the capital we invested is, is really kind of the main driver in Q4. In Q3, you know, we started January strong, right? And so, you know, we started January strong. You know, if it wasn't for this snowpocalypse that happened, you know, we would've been up double digits on a comp basis in January. We're still up. You know, we had a great month. We'll see a ton of operating leverage that month. And the thing that, you know, Tom put in his quotes in his press release is, we're committing to taking down the inefficient spend, right?
Speaker #10: We think we can get to not exactly there, but close on the water parks. And so how profitable the water parks come on with the capital we invested is really kind of the main driver in the fourth quarter.
Bobby Lavan: We think we can, you know, get to not exactly there, but close on the water parks. And so how profitable the water parks gone with the capital we invested is, is really kind of the main driver in Q4. In Q3, you know, we started January strong, right? And so, you know, we started January strong. You know, if it wasn't for this snowpocalypse that happened, you know, we would've been up double digits on a comp basis in January. We're still up. You know, we had a great month. We'll see a ton of operating leverage that month. And the thing that, you know, Tom put in his quotes in his press release is, we're committing to taking down the inefficient spend, right?
Speaker #10: In the third quarter, we started January strong. Right? And so we started January strong. If it wasn't for this snow apocalypse that happened, we would have been up double digits on a comp basis in January.
Speaker #10: We're still up. We had a great month. We'll see a ton of operating leverage that month. And the thing that Tom put in his quotes in his press release is we're committing to taking down the inefficient spend.
Speaker #10: Right? And so the difference between the top and the bottom is going to be performance in the water parks, maintaining good organic growth, but also us getting costs under control.
Bobby Lavan: So the difference between, you know, the top and the bottom is gonna be performance in the water parks, maintaining good organic growth, but also us getting costs under control.
Bobby Lavan: So the difference between, you know, the top and the bottom is gonna be performance in the water parks, maintaining good organic growth, but also us getting costs under control.
Speaker #10: control.
Speaker #1: Next question
Operator: Next question comes from the line of Michael Kupinski of Noble Capital Markets. Please go ahead.
Operator: Next question comes from the line of Michael Kupinski of Noble Capital Markets. Please go ahead.
Speaker #1: Comes from the line of Michael Kupinski of Global Capital. Please go ahead.
Speaker #1: Go ahead. Thank you for taking my question.
[Analyst] (Noble Capital Markets): Thank you for taking my questions. Obviously, you're anticipating that the water parks are going to contribute meaningfully into the Q4, so I plan to get a little granular here, and sorry for the questions. In terms of Raging Waves, you indicated that it came with a lot of land, and I know that you had anticipated that you had planned to build out some event space there and maybe do some expansion. I was wondering if you had already done that. And then part of the growth that we saw last year, I think you said that you introduced alcohol and that you saw a little revenue lift from that.
Michael Kupinski: Thank you for taking my questions. Obviously, you're anticipating that the water parks are going to contribute meaningfully into the Q4, so I plan to get a little granular here, and sorry for the questions. In terms of Raging Waves, you indicated that it came with a lot of land, and I know that you had anticipated that you had planned to build out some event space there and maybe do some expansion. I was wondering if you had already done that. And then part of the growth that we saw last year, I think you said that you introduced alcohol and that you saw a little revenue lift from that.
Speaker #11: Questions. Obviously, you’re anticipating that the water parks are going to contribute meaningfully in the fourth quarter. So I plan to get a little granular here and start with the questions.
Speaker #11: In terms of a Raging Waves, you indicated that it came with a lot of land. And I know that you had anticipated that you had planned to build out some event space there and maybe do some expansion.
Speaker #11: I was wondering if you had already done that. And then part of the growth that we saw last year, I think you said that you introduced alcohol and that you saw a little revenue lift from that.
Speaker #11: I was wondering if your Raging Waters in California—if that was part of the acquisition plan, if that already had alcohol, if they had that there, or is that part of the introduction that you can see a little lift from as well?
[Analyst] (Noble Capital Markets): I was wondering if your Raging Waters in California, if that was part of the acquisition plan, if that already had alcohol, you know, they had that there, or is that a part of introduction that you can see a little lift from that as well? And then, I guess, in terms of other investments into the water parks, are there other expansion plans that you have either done or contemplated for those?
Michael Kupinski: I was wondering if your Raging Waters in California, if that was part of the acquisition plan, if that already had alcohol, you know, they had that there, or is that a part of introduction that you can see a little lift from that as well? And then, I guess, in terms of other investments into the water parks, are there other expansion plans that you have either done or contemplated for those?
Speaker #11: And then, I guess in terms of other investments into the water parks, are there other expansion plans that you have either done or contemplated for—
Speaker #11: those? Hi, this is
Thomas Shannon: Hi, this is Tom Shannon. Thanks for the question. With regard to Raging Waves, we did add some covered event spaces with open sides, and those were open for the last season. We also got a beer license in the middle of 2024, and we had that last year. That contributed a couple hundred thousand dollars in alcohol sales. We're increasing food and beverage availability throughout the park for this year. We've sort of reconfigured the flow as you walk in and where we've placed certain food and beverage outlets to optimize that. So I think you'll see continued lift. We purchased 66 acres adjacent to that park. We haven't done anything with it, and we don't have any plans at present.
Thomas Shannon: Hi, this is Tom Shannon. Thanks for the question. With regard to Raging Waves, we did add some covered event spaces with open sides, and those were open for the last season. We also got a beer license in the middle of 2024, and we had that last year. That contributed a couple hundred thousand dollars in alcohol sales. We're increasing food and beverage availability throughout the park for this year. We've sort of reconfigured the flow as you walk in and where we've placed certain food and beverage outlets to optimize that. So I think you'll see continued lift. We purchased 66 acres adjacent to that park. We haven't done anything with it, and we don't have any plans at present.
Speaker #10: Tom Shannon. Thanks for the question. With regard to Raging Waves, we did add some covered event spaces with open sides and those were open for the last season.
Speaker #10: We also got a beer license in the middle of 2024, and we had that last year. That contributed a couple hundred thousand dollars of alcohol sales.
Speaker #10: We're increasing food and beverage availability throughout the park. For this year, we've sort of reconfigured the flow as you walk in, and where we've placed certain food and beverage outlets to optimize that.
Speaker #10: So I think you'll see continued lift. We purchased 66 acres adjacent to that park; we haven't done anything with it, and we don't have any plans at present.
Thomas Shannon: We were going to embark on a pretty meaningful expansion of the park with the addition of an action river, a family pool, and an adult pool with a swim-up bar, that would have increased the in-park capacity by somewhere between 1,500 and 2,000 people. Unfortunately, we weren't able to get through the permitting process in time to start construction this year, so that'll be deferred to next winter for a 2027 summer opening. With regard to Raging Waters, it does not have a liquor license. We will be applying for a liquor license. That will not happen for this summer. Hopefully, we'll have that for the following summer. Given the volume of that park, you know, that, that should be a meaningful number.
Speaker #10: We were going to embark on a pretty meaningful expansion of the park with the addition of an action river, a family pool, and an adult pool with a swim-up bar that would have increased the in-park capacity by somewhere between 1,500 and 2,000 people.
Thomas Shannon: We were going to embark on a pretty meaningful expansion of the park with the addition of an action river, a family pool, and an adult pool with a swim-up bar, that would have increased the in-park capacity by somewhere between 1,500 and 2,000 people. Unfortunately, we weren't able to get through the permitting process in time to start construction this year, so that'll be deferred to next winter for a 2027 summer opening. With regard to Raging Waters, it does not have a liquor license. We will be applying for a liquor license. That will not happen for this summer. Hopefully, we'll have that for the following summer. Given the volume of that park, you know, that, that should be a meaningful number.
Speaker #10: Unfortunately, we weren't able to get through the permitting process in time. To start construction this year, so that'll be deferred to next winter for a 2027 summer opening.
Speaker #10: With regard to Raging Waters, it does not have a liquor license. We will be applying for a liquor license. That will not happen for the summer.
Speaker #10: Hopefully, we'll have that for the following summer. And given the volume of that park, that should be a meaningful number. I don't recall if there was anything else you asked that I haven't covered.
Thomas Shannon: I don't recall if there was anything else you asked that I haven't covered. Please let me know.
Thomas Shannon: I don't recall if there was anything else you asked that I haven't covered. Please let me know.
Speaker #10: Please let me
Speaker #10: know. Outside
[Analyst] (Noble Capital Markets): Outside of alcohol, in terms of the prospects for growth there. Like, is there other land that you're getting, other expansion plans in the future?
Michael Kupinski: Outside of alcohol, in terms of the prospects for growth there. Like, is there other land that you're getting, other expansion plans in the future?
Speaker #11: Of alcohol, in terms of the prospects for growth there? Is there other land that you're getting, other expansion plans in the future?
Speaker #10: Well, I mean, we have expansion opportunities within the confines of all of the parks. None of them are built out to their capacity. So, over time, the answer is yes.
Thomas Shannon: Well, I mean, we have expansion opportunities within the confines of all of the parks. None of them are built out to their capacity. So, over time, the answer is yes. But I think that you have a lot of very low investment, high return opportunities. For example, in Big Kahuna in Destin, you could do a lot of rides and make the park sort of more dynamic and exciting, but the gating factor there is really there's not enough deck space and lounging space, which is relatively inexpensive, and so we focused on those sorts of things. We have ambitious expansions planned, as I mentioned, in Raging Waves, also in Shipwreck Island in Panama City.
Thomas Shannon: Well, I mean, we have expansion opportunities within the confines of all of the parks. None of them are built out to their capacity. So, over time, the answer is yes. But I think that you have a lot of very low investment, high return opportunities. For example, in Big Kahuna in Destin, you could do a lot of rides and make the park sort of more dynamic and exciting, but the gating factor there is really there's not enough deck space and lounging space, which is relatively inexpensive, and so we focused on those sorts of things. We have ambitious expansions planned, as I mentioned, in Raging Waves, also in Shipwreck Island in Panama City.
Speaker #10: But I think that you have a lot of very low-investment, high-return opportunities. For example, in Big Kahuna and Destin, you could do a lot of rides and make the park sort of more dynamic and exciting.
Speaker #10: But the gating factor there is really there's not enough deck space and lounging space, which is relatively inexpensive. And so we focused on those sorts of things.
Speaker #10: We have ambitious expansions planned as I mentioned in Raging Waves. Also in Shipwreck Island in Panama City, we're doing a number of upgrades over the next two years at Wet and Wild Emerald Point, which is a very large high-volume park.
Thomas Shannon: We're doing a number of upgrades over the next 2 years at Wet 'n Wild Emerald Pointe, which is a very large, high-volume park. We're adding a meaningful kiddy slash family area. There'll be upgrades to the cabanas there. We sell out nearly every weekend. We're adding something like 40 or 50 cabanas that will be in place for this coming season. So there's a lot of that sort of stuff, relatively inexpensive, very high ROI, has a big impact on the guest experience. But we also have things planned, like a large tower complex, slide tower complex at Shipwreck Island in Panama City, that we hope to have in place for the 2027 season, the expansion I mentioned at Raging Waves for the 2027 season, and also some things that we'd like to do at Raging Waters.
Thomas Shannon: We're doing a number of upgrades over the next 2 years at Wet 'n Wild Emerald Pointe, which is a very large, high-volume park. We're adding a meaningful kiddy slash family area. There'll be upgrades to the cabanas there. We sell out nearly every weekend. We're adding something like 40 or 50 cabanas that will be in place for this coming season. So there's a lot of that sort of stuff, relatively inexpensive, very high ROI, has a big impact on the guest experience. But we also have things planned, like a large tower complex, slide tower complex at Shipwreck Island in Panama City, that we hope to have in place for the 2027 season, the expansion I mentioned at Raging Waves for the 2027 season, and also some things that we'd like to do at Raging Waters.
Speaker #10: We're adding a meaningful kiddie/family area. There'll be upgrades to the cabanas there, which sell out nearly every weekend. We're adding something like 40 or 50 cabanas that will be in place for this coming season.
Speaker #10: So there's a lot of that sort of stuff—relatively inexpensive, very high ROI—that has a big impact on the guest experience. But we also have things planned, like a large power complex slide tower complex at Shipwreck Island in Panama City, that we hope to have in place for the 27th season.
Speaker #10: The expansion I mentioned at Raging Waves for the 27th season. And also some things that we'd like to do at Raging Waters but for the most part, these parks are in pretty good shape.
Thomas Shannon: But for the most part, you know, these parks are in pretty good shape. It really comes down to being able to increase revenue through simply having more availability of food and beverage, more cabanas to sell, and, you know, and then optimizing pricing and packages, which I think we, we've done a pretty good job on for this upcoming season.
Thomas Shannon: But for the most part, you know, these parks are in pretty good shape. It really comes down to being able to increase revenue through simply having more availability of food and beverage, more cabanas to sell, and, you know, and then optimizing pricing and packages, which I think we, we've done a pretty good job on for this upcoming season.
Speaker #10: It really comes down to revenue through simply having more availability of food and beverage, more cabanas to sell, pricing and packages, which I think we've done a pretty good job on for this upcoming.
Speaker #10: season. Thanks for
Bobby Lavan: Thanks for the color.
Michael Kupinski: Thanks for the color.
Speaker #11: the
Speaker #11: color. My
Speaker #11: Thank you. My next question comes from the line of Gregory Miller at Truist Securities. Please go ahead.
Thomas Shannon: My pleasure.
Thomas Shannon: My pleasure.
Operator: Your next question comes from the line of Greg Miller of Truist Securities. Please go ahead.
Operator: Your next question comes from the line of Greg Miller of Truist Securities. Please go ahead.
Speaker #11: ahead. Thanks, good afternoon
[Analyst] (Truist Securities): Thanks. Good afternoon, all. I'm hoping you could provide some help in terms of getting a better understanding of how we should be thinking about, say, the next 50 or so Lucky Strike conversions relative to the first 100. How similar or different are these stores from a demographics perspective, locations, the types of stores, in part, in terms of how we should be thinking about the ramp of these rebranded locations over the course of the rest of the year? Thank you.
Gregory Miller: Thanks. Good afternoon, all. I'm hoping you could provide some help in terms of getting a better understanding of how we should be thinking about, say, the next 50 or so Lucky Strike conversions relative to the first 100. How similar or different are these stores from a demographics perspective, locations, the types of stores, in part, in terms of how we should be thinking about the ramp of these rebranded locations over the course of the rest of the year? Thank you.
Speaker #2: I'm hoping you can provide some help in terms of getting a better understanding of how we should be thinking about, say, the next 50 or so Lucky Strike conversions relative to the first 100.
Speaker #2: How similar or different are these stores from a demographics perspective? Locations, the types of stores. In part, in terms of how we should be thinking about the ramp of these rebranded locations over the course of the rest of the year.
Speaker #2: Thank you.
Thomas Shannon: Sure. This is Tom Shannon. There's no difference. It's not like we started at the top in terms of revenue and went down. A lot of what got converted was a function of how quickly they moved through a permitting process. As you know, we deal with a lot of permitting issues in a lot of municipalities. Some are very easy and efficient to deal with, some are not. And so, you know, the pace at which these things happen is somewhat dictated by an external audience, which is municipal governments. So there is really no difference between the next 50 and the first 100. What is gonna happen, and this is really important to note, is that we are going to build out critical mass in most, if not all, markets with the new Lucky Strike brand.
Thomas Shannon: Sure. This is Tom Shannon. There's no difference. It's not like we started at the top in terms of revenue and went down. A lot of what got converted was a function of how quickly they moved through a permitting process. As you know, we deal with a lot of permitting issues in a lot of municipalities. Some are very easy and efficient to deal with, some are not. And so, you know, the pace at which these things happen is somewhat dictated by an external audience, which is municipal governments. So there is really no difference between the next 50 and the first 100. What is gonna happen, and this is really important to note, is that we are going to build out critical mass in most, if not all, markets with the new Lucky Strike brand.
Speaker #10: Shannon. There's no Sure. This is Tom difference. It's not like we started at the top in terms of revenue and went down. A lot of what got converted was a function of how quickly they moved through a permitting process.
Speaker #10: As you know, we deal with a lot of permitting issues in a lot of municipalities. Some are very easy and efficient to deal with.
Speaker #10: Some are not. And so, the pace at which these things happen is somewhat dictated by an external audience, which is municipal governments. So there is really no difference between the next 50 and the first 100.
Speaker #10: What is going to happen, and this is really important to note, is that we are going to build out critical mass in most, if not all, markets with the new lucky strike brand.
Speaker #10: So, I think Bobby mentioned that we have markets like Denver where you still have three brands, and you may have four or five Lucky Strikes out of 20 centers.
Thomas Shannon: So I think Bobby mentioned that we have markets like Denver, where you still have 3 brands, and you may have, you know, 4 or 5 Lucky Strikes out of 20 centers. It's not enough to do any meaningful marketing. You just can't amortize the spend over enough centers. But when you get to, call it, 15 Lucky Strikes in the market, you're able to do that, and you're also able to do that on a national basis. So I think the returns will accelerate, and, you know, Lucky Strike will become a very, very powerful brand once we have 200 locations, which we expect by the end of calendar 2026, and we're able to put real marketing muscle behind it in a way that's never occurred before.
Thomas Shannon: So I think Bobby mentioned that we have markets like Denver, where you still have 3 brands, and you may have, you know, 4 or 5 Lucky Strikes out of 20 centers. It's not enough to do any meaningful marketing. You just can't amortize the spend over enough centers. But when you get to, call it, 15 Lucky Strikes in the market, you're able to do that, and you're also able to do that on a national basis. So I think the returns will accelerate, and, you know, Lucky Strike will become a very, very powerful brand once we have 200 locations, which we expect by the end of calendar 2026, and we're able to put real marketing muscle behind it in a way that's never occurred before.
Speaker #10: It's not enough to do any meaningful marketing. You just can't amortize the spend over enough centers. But when you get to, call it, 15 Lucky Strikes in the market, you're able to do that.
Speaker #10: And you're also able to do that on a national basis. So I think the returns will accelerate and lucky strike will become a very, very powerful brand once we have 200 locations, which we expect by the end of calendar '26, and we're able to put real marketing muscle behind it in a way that's never occurred before.
Speaker #10: You're going to start to see a lot of more relevance and unaided awareness of lucky strike. And then following that, AMF. Just to sort of flesh out the point, AMF is a brand that's probably had no meaningful marketing spend in three or four decades.
Thomas Shannon: You're gonna start to see a lot more relevance and unaided awareness of Lucky Strike, and then following that, AMF. You know, just to sort of flesh out the point, AMF, as a brand, has probably had no meaningful marketing spend in 3 or 4 decades. It doesn't mean anything at all, and the same is largely true of Lucky Strike. When Lucky Strike first launched back in, I believe, 2003, it had a lot of excitement around the brand. It was on Entourage, you know, it was really considered a cool brand, and then it really sort of fell by the wayside, and no real money was spent on the brand.
Thomas Shannon: You're gonna start to see a lot more relevance and unaided awareness of Lucky Strike, and then following that, AMF. You know, just to sort of flesh out the point, AMF, as a brand, has probably had no meaningful marketing spend in 3 or 4 decades. It doesn't mean anything at all, and the same is largely true of Lucky Strike. When Lucky Strike first launched back in, I believe, 2003, it had a lot of excitement around the brand. It was on Entourage, you know, it was really considered a cool brand, and then it really sort of fell by the wayside, and no real money was spent on the brand.
Speaker #10: It doesn't mean anything at all. And the same is largely true of lucky strike. When lucky strike first launched, back in, I believe, 2003, it had a lot of excitement around the brand.
Speaker #10: It was on entourage. It was really considered a cool brand. And then it really sort of fell by the wayside. And no real money was spent on the brand.
Speaker #10: And so we're going from an environment of little to no investment over a very long period of time, to one now where we have, or soon we'll have, critical mass in two brands.
Thomas Shannon: And so we're going from an environment of little to no investment over a very long period of time to one now where we have, or soon we'll have, critical mass in two brands that we're gonna be investing serious marketing effort behind. And I think the upside in both of those is tremendous.
Thomas Shannon: And so we're going from an environment of little to no investment over a very long period of time to one now where we have, or soon we'll have, critical mass in two brands that we're gonna be investing serious marketing effort behind. And I think the upside in both of those is tremendous.
Speaker #10: And we're going to be investing serious marketing effort behind. And I think the upside in both of those is tremendous.
Speaker #2: Thank you,
[Analyst] (Truist Securities): Thank you, Tom.
Gregory Miller: Thank you, Tom.
Speaker #2: Tom. Your next question comes from
Operator: Your next question comes from the line of Jeremy Hamblin of Craig-Hallum. Please go ahead.
Operator: Your next question comes from the line of Jeremy Hamblin of Craig-Hallum. Please go ahead.
Speaker #11: The line of Jeremy Hamblin of Craig Hallam. Please go ahead.
Speaker #11: ahead. Hey, this is Willon
[Analyst] (Craig-Hallum): Hey, this is Will on for Jeremy. Thanks for taking my questions. Just first wondering if you could break down the comp cadence by month through the second quarter, and then if you're able to quantify the weather impact you saw from the snowstorms.
Jeremy Hamblin: Hey, this is Will on for Jeremy. Thanks for taking my questions. Just first wondering if you could break down the comp cadence by month through the second quarter, and then if you're able to quantify the weather impact you saw from the snowstorms.
Speaker #2: for Jeremy. Thanks for taking my questions. Just first wondering if you could break down the comp cadence by month through the second quarter and then if you're able to quantify the weather impact you saw from the
Speaker #2: snowstorms. Yeah.
Bobby Lavan: Yeah, so it was. The easiest cadence is +1, +1, -1. A little bit better in October, November, and December, but that's the easiest way you should look at it. The hit from the snow in January was about $5 million in revenue. So, you know, it really took down Saturday afternoon to Saturday night about... You know, we lost at least $2.5 million on Sunday, and we lost about $500,000 on Monday, Tuesday. So it was, you know, we were looking at double-digit comp for January until that, you know, we're still pretty happy with the comp, but, you know, we get through. Yeah, and then snow in December, also about $2 million.
Bobby Lavan: Yeah, so it was. The easiest cadence is +1, +1, -1. A little bit better in October, November, and December, but that's the easiest way you should look at it. The hit from the snow in January was about $5 million in revenue. So, you know, it really took down Saturday afternoon to Saturday night about... You know, we lost at least $2.5 million on Sunday, and we lost about $500,000 on Monday, Tuesday. So it was, you know, we were looking at double-digit comp for January until that, you know, we're still pretty happy with the comp, but, you know, we get through. Yeah, and then snow in December, also about $2 million.
Speaker #3: So, the easiest cadence is plus one, plus one, minus one. A little bit better in October, November, and December, but that's the easiest way you should look at it.
Speaker #3: The hit from the snow in January was about $5 million in revenue. So it really took down Saturday afternoon to Saturday night, and we lost at least $2.5 million on Sunday.
Speaker #3: And we lost about $500,000 on Monday, Tuesday. So, we were looking at double-digit comp for January until that. We're still pretty happy with the comp, but we get through.
Speaker #3: Yeah. And then snow in December cost us about $2 million.
Speaker #2: Okay. That's helpful. And then just curious on the EBITDA drag from the waterpark business in the quarter. And then I know focus has been on organic growth this year, but is there anything in the acquisition pipeline that we should consider for the back half?
[Analyst] (Craig-Hallum): Okay, that's, that's helpful. And then just curious on the EBITDA drag from the water park business in the quarter, and then I know focus has been on organic growth this year, but is there anything in the acquisition pipeline that we should consider for the back half?
Jeremy Hamblin: Okay, that's, that's helpful. And then just curious on the EBITDA drag from the water park business in the quarter, and then I know focus has been on organic growth this year, but is there anything in the acquisition pipeline that we should consider for the back half?
Speaker #3: And we've done $95 million of acquisitions this year. We're always looking at things, but right now we're focused on having a monster summer season in our Boomers and waterparks.
Bobby Lavan: We've done $95 million of acquisitions this year. You know, we're always looking at things, but right now, we're focused on having a monster summer season, you know, in our Boomers and water parks.
Bobby Lavan: We've done $95 million of acquisitions this year. You know, we're always looking at things, but right now, we're focused on having a monster summer season, you know, in our Boomers and water parks.
Speaker #2: Got it. Appreciate the
[Analyst] (Craig-Hallum): Got it. Appreciate the color.
Jeremy Hamblin: Got it. Appreciate the color.
Speaker #2: color. There are no
Operator: There are no further questions at this time. With that, ladies and gentlemen, concludes today's conference call. We thank you for participating. You may now disconnect your lines.
Operator: There are no further questions at this time. With that, ladies and gentlemen, concludes today's conference call. We thank you for participating. You may now disconnect your lines.
Speaker #11: further questions at this time. And with that, ladies and gentlemen, concludes today's conference call. We thank you for participating. You may now disconnect your lines.
