Cyber Report #1,014

E-dition No. 1,014 • Friday, August 3, 2018

Editor: Bob Johnson (bjibob@aol.com)

 

BBIA Industry Catalog Set to Ship by Mid-Month

 

The seventh edition of the Billiard and Bowling Institute of America’s Industry Catalog is scheduled to be shipped/mailed between Aug. 11 and 15. Copies should arrive seven to 10 days following the mail date.

 

The Catalog has a different look this year, most notably having the category tabs printed on each page.

 

Each domestic retail location will receive a copy of the 520-page Catalog. If a pro shop and bowling center share the same address, the Catalog will be sent to the pro shop.

 

If you do not receive your copy by Aug. 25, please contact your local BBIA distributor. The Catalog will also be available online at the end of September at www.billiardandbowling.org.

 

Bowling to Be Part of New Laser Flash Location

 

Laser Flash of Carmel (Ind.) has selected EdgeRock’s new The Trails of Westfield development to build a multi-level 50,000-sq.-ft. family entertainment center in Westfield, Ind.

 

The new center will be located on State Road 32, west of U.S. 31, and will feature laser tag, bowling, axe throwing, an indoor ropes course, arcade, an outdoor miniature golf course, a restaurant and a bar with both indoor and outdoor seating. Other attractions also are planned.

 

The site was selected to serve the growing Westfield community on a daily basis for business events, and to serve the Grand Park Sports Campus’s demand for entertainment options. To view the Grand Park facilities, go to: http://grandpark.org.

 

The EdgeRock Development presently has a Starbucks coffee shop, Crew Car Wash, Penn Station sub shop, and Forum Credit Union under construction on the State Road 32 west corridor, all scheduled to open later this year.

 

EdgeRock recently started construction on the “ProX” athletic facility at Grand Park, with a projected opening in early 2019.

 

“The growth of Westfield and Grand Park has made Westfield an attractive place to invest and develop my business,” said Peter Murphy, owner of Laser Flash.

 

Laser Flash has operated its Carmel location for 16 years, utilizing a laser tag system by Lasertron of Amherst, N.Y. The new center will incorporate the latest arena technology from Lasertron, and will be different than any other laser tag arena in Indiana, Murphy said.

 

Several lanes of bowling are planned for the new center, and the lanes-area seating will be able to be reconfigured in minutes to provide large groups with a contiguous seating arrangement. The idea is for business groups and others to be able to socialize with their entire party instead of just the players on one or two lanes.

 

Laser Flash in Westfield will be the first Indiana location to offer Cyber Sport, a two-team sport that’s a combination of basketball and lacrosse played indoors on highly maneuverable “Cyber Cars.” Players use a one-handed scoop to pick up, pass and shoot a soft foam ball into goals mounted on the wall at each end of the court.

 

The Laser Flash entertainment center is being designed by Dynamic Designs of Birmingham, Mich., an award-winning firm that also designed the Crazy Pinz entertainment center in Ft. Wayne, Ind.

 

The Laser Flash facility in Carmel will continue to operate at full capacity until the new center is ready for occupancy, Murphy said. The new center will require an estimated 130 employees. The Carmel location will be used to train many of the additional employees in order to provide a smooth grand opening in late 2019.

 

To learn more about The Trails of Westfield, go to: http://edgerock.rocks/developments/trails.html.

 

 

Fire Destroys 6-Lane Center Near Wisconsin Rapids

 

Officials are investigating the cause of a fire that destroyed the Friendship Bar and Bowl in Friendship, Wis., population 725.

 

“Twenty-nine years of business, that’s what I’ve got left,” Edward Golden, proprietor of the six-lane center, told the Wisconsin Rapids Tribune as he stood in the parking lot, looking at the charred remains.

 

“We have no idea what happened,” he added. “The fire chief says that they think that it started in the kitchen, but we’re not open on Sundays. I left here at 1 o’clock in the morning Sunday after closing the bar Saturday night.”

 

Golden and his wife, Laurie, opened the center on Labor Day in 1989. They had listed the center for sale in October 2017, but were still operating it.

 

 

Boyd Gaming, Red Rock Resorts Report Strong 2nd Quarter

 

The two companies that control most of the bowling lanes in Las Vegas reported strong results for the second quarter of 2018.

 

Boyd Gaming Corporation President and Chief Executive Officer Keith Smith said, “We continued to achieve strong results in the second quarter, making significant progress executing against our strategic plan. We delivered revenue and adjusted EBITDA growth across every segment of our business, as companywide operating margins reached record levels… We used our growing free cash flow to further deleverage the balance sheet, increase our cash dividend, and continue our share repurchase program. In all, this was another quarter of significant progress, and I remain confident about the direction of our company.”

 

Boyd Gaming reported second-quarter revenues of $616.8 million, up 2.1% from $604.1 million in the second quarter of 2017. Income from continuing operations, net of tax, for the second quarter was $38.6 million, or $0.34 per share, compared to $27.7 million, or $0.24 per share, for the prior-year second quarter.

 

Total adjusted EBITDA was $163.4 million, up 8% from $151.4 million in the second quarter of 2017. Adjusted earnings for the second quarter 2018 were $44 million, or $0.38 per share, compared to adjusted earnings of $30.4 million, or $0.26 per share, for the same period in 2017.

 

Meanwhile, Red Rock Resorts Inc., which adopted FASB’s new revenue recognition standard (“ASC 606”), effective Jan. 1, 2018, said net revenues were $416.2 million for the second quarter of 2018, an increase of 1.5%, or $6.1 million, from $410.1 million for the same period of 2017. The increase in net revenues was primarily due to an increase in Las Vegas operations, partially offset by a decrease in Native American management fees.

 

Net income was $99.1 million for the second quarter, an increase of $149.3 million from a net loss of $50.2 million for the same period of 2017. The increase in net income was primarily due to a $57.8 million after-tax gain associated with the extinguishment of a tax receivable liability, as well as a prior year after-tax loss of $78.1 million associated with the acquisition of the leases at Boulder Station and Texas Station.

 

Adjusted EBITDA was $124.6 million for the second quarter of 2018, an increase of 4% from $119.9 million in the same period of 2017. The increase in adjusted EBITDA was primarily due to an increase in Las Vegas operations, partially offset by a decrease in Native American management fees.

 

Net revenues from Las Vegas operations were $393.7 million for the second quarter of 2018, a 4.1% increase from $378.1 million in the same period of 2017. Adjusted EBITDA from Las Vegas operations was $112.6 million for the second quarter of 2018, a 7.1% increase from $105.1 million in the same period of 2017. The increase in both net revenues and adjusted EBITDA was primarily due to solid performance in non-disrupted Las Vegas operations, partially offset by construction disruption at Palace Station and the Palms.

 

The company’s cash and cash equivalents at June 30, 2018 were $108.4 million, and total principal amount of debt outstanding at the end of the second quarter was $2.67 billion. The company’s debt to adjusted EBITDA and interest coverage ratios, were 5.1x and 4.6x, respectively.

 

The Company’s Board of Directors declared a cash dividend of $0.10 per Class A common share for the third quarter of 2018. The dividend will be payable on Sept. 28, 2018 to all stockholders of record as of the close of business on Sept. 14, 2018. Prior to the payment of the dividend, Station Holdco LLC will make a cash distribution to all unit holders of record, including the company, of $0.10 per unit for a total distribution of approximately $11.7 million, about $7 million of which is expected to be distributed to the company and about $4.7 million of which is expected to be distributed to the other unit holders of record of Station Holdco.

 

Boyd Gaming Corporation operates large bowling centers at its Sam’s Town, Orleans, Gold Coast and Suncoast locations in Las Vegas. Red Rock Resorts operates large centers at its Red Rock, Sunset Station, Santa Fe Station and Texas Station casinos.

 

 

Oregon Owners Open Second KingPins Location

 

Tom Burke and Jon Tang got into the bowling business at Sunset Lanes in Beaverton, Ore., and eventually were able to purchase the center.

 

But with the property on which that center sits earmarked for new construction next year, Burke and Tang knew they needed to do something if they wanted to remain in business in Beaverton. So they closed Sunset in June, and concentrated on building a new facility just a hundred yards away with the same branding as its other metro Portland location: KingPins.

 

The former BCM Proprietors of the Year will continue to focus on bowling at their new location, but the facility also includes laser tag and Hologate virtual reality attractions from Creative Works.

 

The laser tag arena features more than 3,800 square feet of bright trees, shrubs and captivating murals that encompass an Avatar-like feel and can hold up to 28 players wielding laser tag equipment manufactured by Zone.

 

The new KingPins also features an arcade, where the virtual reality attraction is sited, that’s designed to appeal to both young and older audiences.

 

On the bowling side, the Beaverton KingPins has a 24-lane main area, as well as 10 lanes in its TapHouse Bar & Grill.

 

To read about the history of Sunset Lanes and its transition to KingPins, go to: https://mykingpins.com/a-new-perspective-kingpins-beaverton-grand-opening/.

 

 

‘Welu’ Winner Hopes for Career in Bowling Business

 

Combining scholastic excellence with outstanding achievements in bowling, Wichita State University Shocker bowler and five-time Junior Team USA member Wesley Low Jr. has been named the winner of the 2018 PBA Billy Welu Scholarship Award.

 

Entering his senior year at Wichita State with a 3.66 grade point average, Low, a native of Palmdale, Calif., is majoring in business management and has been a member of the Dean’s list for the past two years.

 

“As a collegiate bowler I’ve met a lot of great bowlers who are also good people, so to be able to win this award is a real honor,” said the 21-year-old Low. “I feel very fortunate to be a Wichita State student where I can enjoy a great education with my passion for bowling at a high level.

 

“I chose business management as a major because I want to eventually pursue a career in the bowling industry,” Low added. “For me, it’s the best of both worlds.”

 

The $1,000 scholarship award was established to annually recognize a college student who combines outstanding bowling talents with academic excellence. Welu, who passed away in 1974, was best known for his expert analysis alongside legendary ABC broadcaster and PBA Hall of Famer Chris Schenkel on the “Pro Bowlers Tour” series.

 

 

Bowling Briefs…

 

* The Florida-based BBBI/Kids Bowl Free recently raised $6,500 to support recreational therapy programs and services provided to hospitalized military veterans through the Bowlers to Veterans Link. “We are delighted to have this opportunity to support our veterans,” said BBBI President Bruce Davis. “All of us at BBBI/Kids Bowl Free are proud to be part of this program to make the days brighter for our American heroes. We will never forget their sacrifice.” The company sent an email blast to Kids Bowl Free families, noting that a $1-per-family pass sold over the Memorial Day weekend would be donated to BVL. The $1 came out of the Kids Bowl Free portion of each sale, not from the participating center. “We thank our friends at BBBI/Kids Bowl Free for helping us in our mission to make a positive difference in the lives of our veterans and active-duty military,” said BVL Chairman John LaSpina.

 

* Jason Papa has purchased Oak Lanes, a 50-lane center in Westland, Mich. The sellers were Rick Capaldi and Al Powell. Papa owns another center, the 16-lane Madison Park Bowl, in Metro Detroit. Sandy Hansell of The Hansell Group served as the broker in the transaction.

 

* The PBA has advised its members that the PBA will comply with new United States Bowling Congress bowling ball specifications and timelines as announced by USBC in late June. The specs and timelines are effective as of yesterday (Aug. 1).

 

* The guest this week on Phantom Radio is USBC Hall of Fame member Jeff Richgels. To listen to the interview, go to: https://www.kegel.net/phantomblog/2018/8/1/jeff-richgels-phantom-radio.

 

* CONTACT: Please send business news, event information, etc. to Bob Johnson at bjibob@aol.com. For breaking business news, visit bcmmag.com or bowlersjournal.com, and “Like” Bowling Center Management and Bowlers Journal International on Facebook. BJI Cyber Reports are now archived at bcmmag.com.

 

 

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