Bally’s Corporation Announces Second Quarter 2024 Results
Second Quarter 2024 and Recent Highlights
-
Company-wide revenue of
$621.7 million , an increase of 2.5% year-over-year-
Casinos & Resorts revenue of$343.1 million , up 3.0% year-over-year -
UK online revenues grew 9% while overall International Interactive revenue declined (7.4%) year-over-year to$229.4 million -
North America Interactive revenue of
$49.2 million , up 94.7% year-over-year
-
-
Announced
$2.07 billion in aggregate transactions with GLPI, including$940 million of construction funding forChicago project -
Unveiled new site plan for permanent Bally’s
Chicago Casino with single-phase 500-room hotel tower build; demolition and site prep on 30-acre development site now underway -
Entered into definitive agreement to merge with
The Queen Casino & Entertainment Inc. , an affiliate ofStandard General L.P. , where Bally’s stockholders will receive$18.25 per share in cash or can elect to retain their investment
Summary of Financial Results
|
Quarter Ended |
||||||
(in thousands) |
|
2024 |
|
|
|
2023 |
|
Consolidated Revenue |
$ |
621,657 |
|
|
$ |
606,206 |
|
Casinos & Resorts Revenue |
|
343,051 |
|
|
|
333,162 |
|
International Interactive Revenue |
|
229,396 |
|
|
|
247,774 |
|
North America Interactive Revenue |
|
49,210 |
|
|
|
25,270 |
|
Net loss |
|
(60,196 |
) |
|
|
(25,651 |
) |
Adjusted EBITDAR(1) |
|
161,799 |
|
|
|
____________________________________ |
|
(1) |
Refer to tables in this press release for a reconciliation of this non-GAAP financial measure to the most directly comparable measure calculated in accordance with GAAP. |
Robeson Reeves, Bally’s Chief Executive Officer, commented, “Bally’s delivered solid 2024 second quarter operating results during what remains an active period for our Company. Consolidated revenue grew 2.5% to
“Last week, we entered into a definitive merger agreement with
“Casinos & Resorts revenue of
“In the
“Our North America Interactive operations generated second quarter revenues of
2024 Guidance
The Company's annual guidance for revenues is a range of
2024 targets for capital expenditures and software development costs for the core portfolio are now reduced by approximately
Bally’s guidance is based on current plans and expectations and contains several assumptions. The guidance is subject to a number of known and unknown uncertainties and risks, including those discussed under “Cautionary Note Regarding Forward Looking Statements” set forth below.
Reconciliation of GAAP Measures to Non-GAAP Measures
To supplement the financial information presented on a generally accepted accounting principles (“GAAP”) basis, Bally’s has included in this earnings release non-GAAP financial measures for consolidated Adjusted EBITDA and segment Adjusted EBITDAR, which exclude certain items described below. The reconciliations of these non-GAAP financial measures to their comparable GAAP financial measures are presented in the tables appearing below.
“Adjusted EBITDA” is earnings, or loss, for Bally’s, or where noted Bally’s reportable segments, before, in each case, interest expense, net of interest income, provision (benefit) for income taxes, depreciation and amortization, non-operating (income) expense, acquisition and other transaction related costs, share-based compensation, and certain other gains or losses as well as, when presented for Bally’s reporting segments, an adjustment related to the allocation of corporate costs among segments.
“Segment Adjusted EBITDAR” is Adjusted EBITDA (as defined above) for Bally’s reportable segments, plus rent expense associated with triple net operating leases for the real estate assets used in the operation of the Bally’s casinos and the assumption of the lease for real estate and land underlying the operations of the Bally’s
Management has historically used consolidated Adjusted EBITDA and segment Adjusted EBITDAR when evaluating operating performance because Bally’s believes that these metrics are necessary to provide a full understanding of Bally’s core operating results and as a means to evaluate period-to-period performance. Management also believes that consolidated Adjusted EBITDA and segment Adjusted EBITDAR are measures that are widely used for evaluating operating performance of companies in Bally’s industry and a principal basis for valuing such companies as well. Consolidated Adjusted EBITDAR is used outside of our financial statements solely as a valuation metric. Management believes Consolidated Adjusted EBITDAR is an additional metric traditionally used by analysts in valuing gaming companies subject to triple net leases since it eliminates the effects of variability in leasing methods and capital structures. Consolidated Adjusted EBITDA and segment Adjusted EBITDAR should not be construed as alternatives to GAAP net income as an indicator of Bally’s performance. In addition, consolidated Adjusted EBITDA or segment Adjusted EBITDAR as used by Bally’s may not be defined in the same manner as other companies in Bally’s industry, and, as a result, may not be comparable to similarly titled non-GAAP financial measures of other companies.
Bally’s does not provide a reconciliation of Adjusted EBITDAR on a forward-looking basis to net income, its most comparable GAAP financial measure, because Bally’s is unable to forecast the amount or significance of certain items required to develop meaningful comparable GAAP financial measures without unreasonable efforts. These items include depreciation, impairment charges, gains or losses on retirement of debt, acquisition, integration and restructuring expenses, interest expense, share-based compensation expense, professional and advisory fees associated with Bally’s capital return program and variations in effective tax rate, which are difficult to predict and estimate and are primarily dependent on future events, but which are excluded from Bally’s calculation of Adjusted EBITDAR. Bally’s believes that the probable significance of providing this forward-looking valuation metric without a reconciliation to the most directly comparable GAAP metric, is that investors and analysts will have certain information that Bally’s believes is useful and meaningful in valuing its business. Investors are cautioned that Bally’s cannot predict the occurrence, timing or amount of all non-GAAP items that may be excluded from Adjusted EBITDAR in the future. Accordingly, the actual effect of these items, when determined, could potentially be significant to the calculation of Adjusted EBITDAR.
Second Quarter Conference Call
Bally’s second quarter 2024 earnings conference call and audio webcast will be held today,
About Bally’s Corporation
With 10,600 employees, the Company's casino operations include approximately 15,300 slot machines, 580 table games and 3,800 hotel rooms. Upon completing the construction of a permanent casino facility in
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements may generally be identified by the use of words such as “anticipate,” “believe,” “expect,” “intend,” “plan” and “will” or, in each case, their negative, or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. As a result, these statements are not guarantees of future performance and actual events may differ materially from those expressed in or suggested by the forward-looking statements. Any forward-looking statement made by Bally’s in this press release, its reports filed with the
BALLY’S CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (In thousands, except per share data) |
|||||||||||||||
Three Months Ended
|
|
Six Months Ended
|
|||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenue: |
|
|
|
|
|
|
|
||||||||
Gaming |
$ |
524,751 |
|
|
$ |
493,296 |
|
|
$ |
1,040,808 |
|
|
$ |
980,191 |
|
Non-gaming |
|
96,906 |
|
|
|
112,910 |
|
|
|
199,331 |
|
|
|
224,735 |
|
Total revenue |
|
621,657 |
|
|
|
606,206 |
|
|
|
1,240,139 |
|
|
|
1,204,926 |
|
|
|
|
|
|
|
|
|
||||||||
Operating (income) costs and expenses: |
|
|
|
|
|
|
|
||||||||
Gaming |
|
236,170 |
|
|
|
218,939 |
|
|
|
472,314 |
|
|
|
436,600 |
|
Non-gaming |
|
48,713 |
|
|
|
52,276 |
|
|
|
96,824 |
|
|
|
104,620 |
|
General and administrative |
|
252,419 |
|
|
|
249,957 |
|
|
|
500,855 |
|
|
|
501,565 |
|
Gain from sale-leaseback, net |
|
— |
|
|
|
(135 |
) |
|
|
— |
|
|
|
(374,321 |
) |
Depreciation and amortization |
|
78,782 |
|
|
|
79,187 |
|
|
|
238,528 |
|
|
|
153,748 |
|
Total operating costs and expenses |
|
616,084 |
|
|
|
600,224 |
|
|
|
1,308,521 |
|
|
|
822,212 |
|
Income (loss) from operations |
|
5,573 |
|
|
|
5,982 |
|
|
|
(68,382 |
) |
|
|
382,714 |
|
|
|
|
|
|
|
|
|
||||||||
Other (expense) income: |
|
|
|
|
|
|
|
||||||||
Interest expense, net |
|
(74,200 |
) |
|
|
(67,093 |
) |
|
|
(147,331 |
) |
|
|
(130,357 |
) |
Other non-operating income, net |
|
6,930 |
|
|
|
6,811 |
|
|
|
11,484 |
|
|
|
9,421 |
|
Total other expense, net |
|
(67,270 |
) |
|
|
(60,282 |
) |
|
|
(135,847 |
) |
|
|
(120,936 |
) |
|
|
|
|
|
|
|
|
||||||||
(Loss) income before income taxes |
|
(61,697 |
) |
|
|
(54,300 |
) |
|
|
(204,229 |
) |
|
|
261,778 |
|
(Benefit) provision for income taxes |
|
(1,501 |
) |
|
|
(28,649 |
) |
|
|
29,881 |
|
|
|
109,093 |
|
Net (loss) income |
$ |
(60,196 |
) |
|
$ |
(25,651 |
) |
|
$ |
(234,110 |
) |
|
$ |
152,685 |
|
|
|
|
|
|
|
|
|
||||||||
Basic (loss) earnings per share |
$ |
(1.24 |
) |
|
$ |
(0.48 |
) |
|
$ |
(4.85 |
) |
|
$ |
2.82 |
|
Weighted average common shares outstanding - basic |
|
48,498 |
|
|
|
53,942 |
|
|
|
48,308 |
|
|
|
54,173 |
|
Diluted (loss) earnings per share |
$ |
(1.24 |
) |
|
$ |
(0.48 |
) |
|
$ |
(4.85 |
) |
|
$ |
2.80 |
|
Weighted average common shares outstanding - diluted |
|
48,498 |
|
|
|
53,942 |
|
|
|
48,308 |
|
|
|
54,582 |
|
BALLY’S CORPORATION |
|||||||||||||||
Revenue and Reconciliation of Net (Loss) Income and Net (Loss) Income Margin to Adjusted EBITDAR and Adjusted EBITDA Margin (unaudited) |
|||||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(In thousands, except percentages) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenue |
$ |
621,657 |
|
|
$ |
606,206 |
|
|
$ |
1,240,139 |
|
|
$ |
1,204,926 |
|
|
|
|
|
|
|
|
|
||||||||
Net (loss) income |
$ |
(60,196 |
) |
|
$ |
(25,651 |
) |
|
$ |
(234,110 |
) |
|
$ |
152,685 |
|
Interest expense, net of interest income |
|
74,200 |
|
|
|
67,093 |
|
|
|
147,331 |
|
|
|
130,357 |
|
Provision (benefit) for income taxes |
|
(1,501 |
) |
|
|
(28,649 |
) |
|
|
29,881 |
|
|
|
109,093 |
|
Depreciation and amortization |
|
78,782 |
|
|
|
79,187 |
|
|
|
238,528 |
|
|
|
153,748 |
|
Non-operating income (1) |
|
(3,127 |
) |
|
|
(5,395 |
) |
|
|
(2,130 |
) |
|
|
(9,252 |
) |
Foreign exchange (gain) loss |
|
(983 |
) |
|
|
1,639 |
|
|
|
(3,799 |
) |
|
|
5,947 |
|
Transaction costs(2) |
|
11,119 |
|
|
|
16,434 |
|
|
|
17,913 |
|
|
|
38,452 |
|
Restructuring charges(3) |
|
376 |
|
|
|
3,440 |
|
|
|
18,989 |
|
|
|
20,262 |
|
|
|
12,261 |
|
|
|
— |
|
|
|
12,261 |
|
|
|
— |
|
Decommissioning costs(5) |
|
— |
|
|
|
2,343 |
|
|
|
— |
|
|
|
2,343 |
|
Share-based compensation |
|
4,472 |
|
|
|
6,290 |
|
|
|
7,530 |
|
|
|
12,330 |
|
Gain on sale-leaseback, net |
|
— |
|
|
|
(135 |
) |
|
|
— |
|
|
|
(374,321 |
) |
Planned business divestiture(6) |
|
— |
|
|
|
190 |
|
|
|
— |
|
|
|
2,054 |
|
Impairment charges(7) |
|
12,757 |
|
|
|
9,653 |
|
|
|
12,757 |
|
|
|
9,653 |
|
Other(8) |
|
1,902 |
|
|
|
3,599 |
|
|
|
1,379 |
|
|
|
3,042 |
|
Adjusted EBITDA |
$ |
130,062 |
|
|
$ |
130,038 |
|
|
$ |
246,530 |
|
|
$ |
256,393 |
|
Rent expense associated with triple net operating leases(9) |
$ |
31,737 |
|
|
|
|
$ |
63,384 |
|
|
|
||||
Adjusted EBITDAR |
$ |
161,799 |
|
|
|
|
$ |
309,914 |
|
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net (loss) income margin |
|
(9.7 |
)% |
|
|
(4.2 |
)% |
|
|
(18.9 |
)% |
|
|
12.7 |
% |
Adjusted EBITDA margin |
|
20.9 |
% |
|
|
21.5 |
% |
|
|
19.9 |
% |
|
|
21.3 |
% |
________________________________ |
|
(1) |
Non-operating (income) expense includes: (i) change in value of commercial rights liabilities, (ii) gain on extinguishment of debt, (iii) non-operating items of equity method investments including our share of net income or loss on an investment and depreciation expense related to our |
(2) |
Includes acquisition, integration and other transaction related costs, including costs incurred to address the Standard General takeover bid and financing costs incurred in connection with the prior year sale lease-back transaction. |
(3) |
Restructuring charges representing the severance and employee related benefits related to the announced Interactive business restructuring initiatives and the closure of the Company’s |
(4) |
Demolition costs associated with the |
(5) |
Costs related to the decommissioning of the Company's sports betting platform in favor of outsourcing the platform solution to third parties. |
(6) |
Losses related to a North America Interactive business that Bally’s was marketed as held-for-sale in 2023. |
(7) |
Includes impairment charges on long-lived assets in the second quarter of 2024 and impairment charges related to assets held-for-sale in 2023. |
(8) |
Other includes the following items: (i) non-routine legal expenses and settlement charges for matters outside the normal course of business, (ii) insurance and business interruption recoveries, and (iii) other individually de minimis expenses. |
(9) |
Consists of the operating lease components contained within our triple net master lease with GLPI for the real estate assets used in the operation of Bally’s |
|
|||||||||||||||
BALLY’S CORPORATION |
|||||||||||||||
|
|
|
|
||||||||||||
Revenue and Segment Adjusted EBITDAR (unaudited) |
|||||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(In thousands) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenue |
|
|
|
|
|
|
|
||||||||
|
$ |
343,051 |
|
|
$ |
333,162 |
|
|
$ |
685,380 |
|
|
$ |
661,948 |
|
International Interactive |
|
229,396 |
|
|
|
247,774 |
|
|
|
464,079 |
|
|
|
493,346 |
|
North America Interactive |
|
49,210 |
|
|
|
25,270 |
|
|
|
90,680 |
|
|
|
49,632 |
|
Total |
$ |
621,657 |
|
|
$ |
606,206 |
|
|
$ |
1,240,139 |
|
|
$ |
1,204,926 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted EBITDAR(1) |
|
|
|
|
|
|
|
||||||||
|
$ |
99,801 |
|
|
$ |
111,005 |
|
|
$ |
189,219 |
|
|
$ |
216,128 |
|
International Interactive |
|
81,292 |
|
|
|
84,574 |
|
|
|
164,824 |
|
|
|
164,875 |
|
North America Interactive |
|
(6,757 |
) |
|
|
(17,685 |
) |
|
|
(16,915 |
) |
|
|
(28,248 |
) |
Other |
|
(12,537 |
) |
|
|
(16,536 |
) |
|
|
(27,214 |
) |
|
|
(33,804 |
) |
Total |
$ |
161,799 |
|
|
|
|
$ |
309,914 |
|
|
|
________________________________ |
|
(1) |
Segment Adjusted EBITDAR is Bally’s reportable segment GAAP measure and its primary measure for profit or loss for its reportable segments. “Segment Adjusted EBITDAR” is Adjusted EBITDA (as defined above) for Bally’s reportable segments, plus rent expense associated with triple net operating leases for the real estate assets used in the operation of the Bally’s casinos and the assumption of the lease for real estate and land underlying the operations of the Bally’s |
BALLY’S CORPORATION |
|||||||
Selected Financial Information (unaudited) |
|||||||
|
|||||||
Balance Sheet Data |
|||||||
(in thousands) |
|
|
|
||||
Cash and cash equivalents |
$ |
154,733 |
|
|
$ |
163,194 |
|
Restricted cash |
|
169,616 |
|
|
|
152,068 |
|
|
|
|
|
||||
Term Loan Facility(1) |
$ |
1,896,375 |
|
|
$ |
1,906,100 |
|
Revolving Credit Facility |
|
350,000 |
|
|
|
335,000 |
|
5.625% Senior Notes due 2029 |
|
750,000 |
|
|
|
750,000 |
|
5.875% Senior Notes due 2031 |
|
735,000 |
|
|
|
735,000 |
|
Less: Unamortized original issue discount |
|
(21,785 |
) |
|
|
(23,756 |
) |
Less: Unamortized deferred financing fees |
|
(36,459 |
) |
|
|
(39,709 |
) |
Long-term debt, including current portion |
$ |
3,673,131 |
|
|
$ |
3,662,635 |
|
Less: Current portion of Term Loan and Revolving Credit Facility |
$ |
(19,450 |
) |
|
$ |
(19,450 |
) |
Long-term debt, net of discount and deferred financing fees; excluding current portion |
$ |
3,653,681 |
|
|
$ |
3,643,185 |
|
Cash Flow Data |
|||||||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||
(in thousands) |
2024 |
|
2023 |
|
2022 |
|
2024 |
|
2023 |
|
2022 |
||||||
Capital expenditures |
$ |
35,709 |
|
$ |
75,868 |
|
$ |
61,565 |
|
$ |
63,762 |
|
$ |
119,546 |
|
$ |
116,081 |
Cash paid for capitalized software |
|
10,626 |
|
|
7,199 |
|
|
16,499 |
|
|
24,209 |
|
|
14,342 |
|
|
31,455 |
Acquisition of gaming licenses |
|
— |
|
|
8,250 |
|
|
50,700 |
|
|
1,211 |
|
|
10,150 |
|
|
51,560 |
Cash payments associated with triple net operating leases(2) |
|
29,950 |
|
|
29,516 |
|
|
13,000 |
|
|
59,901 |
|
|
58,610 |
|
|
23,000 |
_________________________________ |
|
(1) |
In 2023, the Company entered certain currency swaps to synthetically convert |
(2) |
Consists of payments made in connection with Bally’s triple net operating leases, as defined above. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240731078190/en/
Investor Contact
Chief Financial Officer
401-475-8564
ir@ballys.com
Media Contact
JCIR
212-835-8500
baly@jcir.com
Source: Bally’s Corporation