Lucky Strike Entertainment (LUCK) Q4 2024 earnings summary

Executive summary

• Q4 FY24 same-store sales grew 6.9% and revenue excluding service fees increased 20.2%, with Adjusted EBITDA up 29% to $83.4M, positioning the company as a leading location-based entertainment platform.

• Full-year FY24 revenue reached $1.15B, up 9.1%, with record season pass sales of $11M and the acquisition of Raging Waves waterpark.

• Added 25 locations in FY24, including 22 acquisitions and 3 new builds, expanding to 354 locations as of June 30, 2024.

• Focused on operational excellence, customer experience, and leveraging data-driven strategies for outperformance.

• Q4 net loss was $62.2M versus prior year net income of $146.2M, mainly due to non-cash and acquisition-related items.

Financial highlights

• Q4 FY24 revenue (ex service fee) was $283M, up from $235M; Q4 same-store revenue was $242.5M.

• FY24 total reported revenue was $1,149M, up from $1,059M in FY23.

• Adjusted EBITDA for FY24 was $361.5M (margin 31.3%); Q4 Adjusted EBITDA margin was 29.4%.

• Net debt at June 30, 2024 was $1.09B; liquidity at $386M, with $67M in cash and undrawn revolver.

• Operating cash flow for FY24 was $154.8M, down from $217.8M last year.

Outlook and guidance

• FY25 guidance: total revenue growth of mid-single digits to 10%+, reaching $1.22B–$1.28B, with low to mid-single digit same-store sales comp.

• Adjusted EBITDA margin projected at 32%-34%, or $390M–$430M.

• FY25 CapEx planned at $154M, down from $193M in FY24.

• No pricing increases assumed in FY25 guidance; guidance includes new builds but excludes unannounced M&A.