Bowlero Corp. Files 2024 10-K

TL;DR

Bowlero's 2024 10-K is in. Check financials for bowling giant.

AI Summary

Bowlero Corp. filed its 10-K for the fiscal year ending June 30, 2024, reporting on its operations in the amusement and recreation services sector. The company, formerly known as Isos Acquisition Corp., has its principal business address at 7313 Bell Creek Road, Mechanicsville, VA. This filing covers the period from July 3, 2023, to June 30, 2024, and includes financial data for the fiscal years 2024, 2023, and 2022.

Why It Matters

This 10-K filing provides a comprehensive overview of Bowlero Corp.'s financial performance and operational status for the fiscal year 2024, which is crucial for investors to assess the company's health and future prospects.

Risk Assessment

Risk Level: medium — The filing is a standard annual report and does not inherently indicate new or elevated risks.

Key Numbers

• 2024 — Fiscal Year End (Reporting period for the 10-K)
• 2023 — Fiscal Year End (Previous fiscal year for comparison)
• 2022 — Fiscal Year End (Prior fiscal year for comparison)

Key Players & Entities

• Bowlero Corp. (company) — Filer of the 10-K
• Isos Acquisition Corp. (company) — Former name of Bowlero Corp.
• 7313 Bell Creek Road, Mechanicsville, VA (location) — Principal business address
• 20240630 (date) — Fiscal year end date

FAQ

Key Financial Figures

• $0.0001 — tered Class A common stock, par value $0.0001 per share BOWL The New York Stock Excha
• $14.16 — 905,000 , based on the closing price of $14.16 for shares of the registrant's Class A
• $14,003 — ns, combined, represented approximately $14,003 and $13,520 in revenues for the fiscal
• $13,520 — , represented approximately $14,003 and $13,520 in revenues for the fiscal years 2024 a
• $29,772 — tively, and have combined net assets of $29,772 and $31,200 as of June 30, 2024 and Jul
• $31,200 — have combined net assets of $29,772 and $31,200 as of June 30, 2024 and July 2, 2023, r

Filing Documents

• bowl-20240630.htm (10-K) — 2493KB
• descriptionoftheregistrant.htm (EX-4.5) — 27KB
• leveksterofferletter182024.htm (EX-10.25) — 9KB
• optionawardagreement-levek.htm (EX-10.26) — 52KB
• bowlerocorpsecuritiestradi.htm (EX-19.1) — 55KB
• bowl-ex211x063024subsidiar.htm (EX-21.1) — 3KB
• kpmgconsent.htm (EX-23.1) — 2KB
• dtconsentofindependentregi.htm (EX-23.2) — 2KB
• bowl-ex311xfy2410k.htm (EX-31.1) — 10KB
• bowl-ex312xfy2410k.htm (EX-31.2) — 10KB
• bowl-ex321xfy2410k.htm (EX-32.1) — 5KB
• bowl-ex322xfy2410k.htm (EX-32.2) — 5KB
• bowlerocorpclawbackpolicy.htm (EX-97.1) — 27KB
• bowl-20240630_g1.jpg (GRAPHIC) — 13KB
• bowl-20240630_g2.jpg (GRAPHIC) — 104KB
• image_0.jpg (GRAPHIC) — 9KB
• 0001628280-24-039546.txt ( ) — 14558KB
• bowl-20240630.xsd (EX-101.SCH) — 104KB
• bowl-20240630_cal.xml (EX-101.CAL) — 167KB
• bowl-20240630_def.xml (EX-101.DEF) — 425KB
• bowl-20240630_lab.xml (EX-101.LAB) — 1179KB
• bowl-20240630_pre.xml (EX-101.PRE) — 775KB
• bowl-20240630_htm.xml (XML) — 2421KB

Risk Factors

Item 1A. Risk Factors 5

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 18

Cybersecurity

Item 1C. Cybersecurity 18

Properties

Item 2. Properties 18

Legal Proceedings

Item 3. Legal Proceedings 19

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 20 Part II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 21

Reserved

Item 6. Reserved 23

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 23

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 30

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 32

Changes in and Disagreements with Accountants on Accounting and Financial Disclosures

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosures 76

Controls and Procedures

Item 9A. Controls and Procedures 76

Other Information

Item 9B. Other Information 76

Disclosure Regarding Foreign Jurisdictions that Prevent Inspection

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspection 77 Part III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 78

Executive Compensation

Item 11. Executive Compensation 78

Security Ownership of Certain Beneficial Owner and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owner and Management and Related Stockholder Matters 78

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 78

Principal Accounting Fees and Services

Item 14. Principal Accounting Fees and Services 78 Part IV

Exhibits, Financial Statement Schedules

Item 15. Exhibits, Financial Statement Schedules 79

For 10-K Summary

Item 16. For 10-K Summary 81

Signatures

Signatures i Table of Contents Index to Financial Statements CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 that involve risk, assumptions and uncertainties, such as statements of our plans, objectives, expectations, intentions and forecasts. These forward-looking statements are generally identified by the use of forward-looking terminology, including the terms "anticipate," "believe," "confident," "continue," "could," "estimate," "expect," "intend," "likely," "may," "plan," "possible," "potential," "predict," "project," "should," "target," "will," "would" and, in each case, their negative or other various or comparable terminology. Our actual results and the timing of selected events could differ materially from those discussed in these forward-looking statements as a result of several factors, including those set forth under the section of this Annual Report on Form 10-K titled Part I, Item 1A "Risk Factors" and elsewhere in this Annual Report on Form 10-K. These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Important factors that could cause our results to vary from expectations include, but are not limited to: our ability to design and execute our business strategy; changes in consumer preferences and buying patterns; our ability to compete in our markets; the occurrence of unfavorable publicity; risks associated with long-term non-cancellable leases for our locations; our ability to retain key managers; risks associated with our substantial indebtedness and limitations on future sources of liquidity; our ability to carry out our expansion

Business

Item 1. Business Overview Bowlero Corp. is one of the world's premier operators of location-based entertainment. The Company primarily operates traditional bowling locations and more upscale entertainment concepts with lounge seating, arcades, enhanced food and beverage offerings, and more robust customer service for individuals and group events, as well as hosting and overseeing professional and non-professional bowling tournaments and related broadcasting. The Company also operates other forms of location-based entertainment, such as Octane Raceway and Raging Waves water park. Our location-based entertainment business is our only operating segment. All amounts are in thousands, except share, per share, or as otherwise specifically noted. Competitive Strengths We believe our key competitive strengths include our highly loyal customers, diverse product offerings, excellent and well-diversified geographic locations, proven business model, and experienced management team, all of which contribute to our solid track record of sustainable growth and generating positive earnings. 1 Table of Contents Index to Financial Statements Loyal Customers: With the over 30-million customers we serve each year, we are well-positioned in highly attractive markets across North America to capitalize on the very large addressable markets for bowling and out-of-home entertainment. With our strong market position, we are able to leverage our competitive strengths to grow our business by, among other things, differentiating our bowling, dining, and amusement and arcade game entertainment offerings for our retail, league, and group event customers. Retail consists of our walk-in customers and is by far our largest and most diverse audience. Leagues are a large and stable source of recurring revenue. Group events, such as birthday parties and corporate events, are a consistent revenue stream with significant growth potential. Branding: Our locations operate under different brand na

Risk Factors

Item 1A. Risk Factors In addition to the other information contained in this Annual Report on Form 10-K, including the matters addressed under the heading "Forward-Looking Statements," you should carefully consider the following risk factors in this Annual Report on Form 10-K before investing in our securities. The risk factors described below disclose both material and are not intended to be exhaustive and are not the only risks facing us. Additional risks not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition, results of operations and cash flows in future periods or are not identified because they are generally common to businesses. Risks Related to Our Business and Industry If we are unable to successfully design and execute our business strategy plan, including growing comparable location sales, our revenues and profitability may be adversely affected. Our ability to increase revenues and profitability is dependent on executing effective business strategies. If we are delayed or unsuccessful in executing our strategies or if our strategies do not yield desired results, our business, financial condition and results of operations may suffer. Our ability to meet our business strategy plan is dependent upon, among other things, our ability to: increase gross sales and operating profits at existing locations with bowling, food, beverage, game and entertainment options desired by our guests; evolve our marketing and branding strategies to continue to appeal to our guests; innovate and implement new initiatives to provide a unique guest experience; identify adequate sources of capital to fund and finance strategic initiatives; grow and expand operations; identify new opportunities to improve customer reach; maintain a talented workforce responsive to customer needs and operational demands; and identify, implement and maintain cost-reducing strategies to scale operations.

View Full Filing

View this 10-K filing on SEC EDGAR