2024 Q1 - Quarterly Results

PinstripesReportsFiscalFourthQuarter,FiscalYear2024Results,AndFiscal2025Guidance 17totalvenueswiththreeadditionalvenuesindevelopmentasofJune27,2024IssuesFiscal2025guidanceincludingapproximately$10millioninannualcostsavings NORTHBROOK,Ill.-June27,2024-PinstripesHoldings,Inc.(“Pinstripes”or“theCompany”)(NYSE:PNST),abest-in-classexperientialdiningandentertainmentbrandcombiningbistro,bowling,bocceandprivateeventspace,todayreporteditsfinancialresultsforthefiscalfourthquarterandfiscalyearendedApril28,2024. FourthQuarterFiscal2024Highlights •Totalrevenueincreased5.9%to$36.2million,comparedtotheprioryearfiscalfourthquarter ◦Foodandbeveragerevenuesincreased4.9%to$27.6million ◦Recreationrevenuesincreased9.5%to$8.6million •Samestoresalesincreased0.4%overtheprioryearperiod •Operatinglosswas$10.7million,includingpre-openingexpensesof$1.7million,or4.6%oftotalrevenue,comparedtooperatinglossof$7.4million,includingpre-openingexpensesof$2.8million,or8.2%oftotalrevenue,intheprioryearperiod. •Netlosswas$8.7millioncomparedtoanetlossof$8.8millionintheprioryearperiod. •StoreVenue-LevelEBITDA(1)was$1.3million,adecreaseof$1.3millionfromtheprioryearperiod ◦Venue-LevelEBITDAmarginwas3.7%,adecreaseof456basispointsfromtheprioryearperiod ◦Venue-LevelEBITDAmarginformaturevenues(2)was11.4%,anincreaseof309basispointsfromtheprioryearperiod •AdjustedEBITDA(1)was$(5.4)millioncomparedto$(2.4)millionintheprioryearperiod. Fiscal2024Highlights •Totalrevenueincreased6.7%to$118.7millioninfiscal2024(52weeksendedApril28,2024),comparedtothepriorfiscalyear(53weeksendedApril30,2023).Theextraweekinfiscal2023contributedapproximately$2.5millioninrevenueinfiscal2023. ◦Foodandbeveragerevenueincreased5.6%to$92.4million ◦Recreationrevenueincreased10.6%to$26.3million •Samestoresalesincreased3.0%overthepriorfiscalyear •Operatinglosswas$21.8million,includingpre-openingexpensesof$8.9million,or7.5%oftotalrevenue,comparedtooperatinglossof$13.7million,includingpre-openingexpensesof$4.9million,or4.4%oftotalrevenue,inthepriorfiscalyear. •Netlosswas$6.8millioncomparedto$7.5millioninthepriorfiscalyear. •Venue-LevelEBITDA(1)was$13.1million,adecreaseof$1.3million,or9.2%,fromthepriorfiscalyear ◦Venue-LevelEBITDAmarginwas11.0%,adecreaseof223basispointfromtheprioryear ◦Venue-LevelEBITDAmarginformaturevenues(2)was14.4%,anincreaseof118basispointsfromtheprioryear •AdjustedEBITDA(1)was$(11.7)millioncomparedto$2.3millionintheprioryear. DaleSchwartz,FounderandCEO,stated,“We’vehadanexcitingandproductivesixmonthssincebecomingapubliccompanyatthebeginningoftheyear.Wearepleasedwiththecontinuedprogressacrossourbusiness,includingthestrongopeningoftwonewvenuesinNewJerseyandFlorida,aswellaspostinga310-basispointvenue-levelEBITDAmarginimprovementinourmaturestorebase.Moreover,wewereabletodrivebothpositivecomparablesalesgrowthandpositivetrafficgrowthduringthefiscalfourthquarterdespiteachallengingconsumerenvironment,whichisatestamenttothepassionanddedicationofourmorethan1,800teammembersinprovidingourguestswiththatmagicalmomentsthey’vecometoexpectfromvisitingPinstripes.” Schwartzcontinued,“Ourmaturevenuebase,thosestoresopengreaterthan24months,showcasesthepowerandpotentialofthePinstripesbrand,generatingstrongprofitabilityimprovementbothduringthefiscalfourthquarterandfullyear2024.Nevertheless,webelievewehaveanevenmoresignificantopportunitytoimprovemarginsthroughfiscal2025.Inrecentmonths,wehaveidentifiedseveralcostsavingsopportunities,representingapproximately$10millioninannualsavings.Ultimately,thesesavingshavethepotentialtofurtherimproveourmaturestorecontributionmarginsbyapproximately500basispointsandwelookforwardtoreapingthefullsavingsbenefitinfiscal2025andbeyond.” Schwartzconcluded,“Wehaveseveralexcitingvenuesinthedevelopmentpipeline,startingwithvenuesinWalnutCreek,CAandCoralGables,FLthatareslatedtoopenduringthefiscalsecondquarterof2025.Aswelookfurtherintoourdevelopmentfunnel,wehavetwoprominentSeattlelocationsinBellevueandLakeUnionwithourpartnersatVulcanRealEstate,anewJacksonvillelocationwithSimonPropertyGroup,andmorethan30potentiallocationsinvariousstagesofdevelopment.Combinedwithourcurrentportfolioof17openlocations,wenowhave22totallocationsopen,underconstructionorunderlease.Ourbrandcontinuestobeuniquelypositionedforthecurrentconsumerenvironment,andournewpartnershipwithNewmarkasourMasterBrokerwillfurtheraccelerateourdevelopmentefforts.” (1)Venue-LevelEBITDAandAdjustedEBITDAarenon-GAAPmeasures.ForreconciliationsofthesemeasurestothemostdirectlycomparableGAAPmeasure,seetheaccompanyingfinancialtables. (2)MatureVenuesaredefinedasvenuesopengreaterthan24months. DevelopmentUpdate Duringandsubsequenttothefourthquarteroffiscal2024,theCompanyopenedtwonewvenues,bringingthetotalvenuecountto17asofApril28,2024. •Paramus,NJopenedFebruary2024 •Orlando,FLopenedApril2024 ReviewofFourthQuarterFiscal2024FinancialResults Totalrevenueswere$36.2millioncomparedto$34.2millioninthefourthquarteroffiscal2024.Samestoresalesincreased0.4%forthefourthquarterof2024ascomparedtothefourthquarteroffiscal2023. Foodandbeveragec