Bally's Corporation Announces Second Quarter 2022 Results
PROVIDENCE, R.I., Aug. 4, 2022 /PRNewswire/ -- Bally's Corporation (NYSE: BALY) today reported financial results for the second quarter ended June 30, 2022.
Second Quarter 2022 Financial Highlights
- Revenue of $552.5 million
- Net income of $59.5 million
- Adjusted EBITDA of $141.2 million
Lee Fenton, Chief Executive Officer said, "Our second quarter results reflect continued strength in our Casinos & Resorts segment, record margins in our International Interactive segment and continued growth in our North America Interactive segment particularly in BallyCasino.com in New Jersey, despite headwinds from significant FX volatility and challenges in Atlantic City. We are pleased with the Company's record cash flow from operations in the quarter and are focused on continued incremental cash flow generation initiatives."
Summary of Financial Results
Three Months Ended June 30, |
|||
(in thousands, except percentages) |
2022 |
2021 |
|
Revenue |
$ 552,496 |
$ 267,733 |
|
Net income |
$ 59,501 |
$ 68,942 |
|
Net income margin |
10.8 % |
25.8 % |
|
Adjusted EBITDA(1) |
$ 141,224 |
$ 82,825 |
|
Adjusted EBITDA margin(1) |
25.6 % |
30.9 % |
|
(1) Refer to tables in this press release for a reconciliation of these non-GAAP financial measures to the most directly comparable measure calculated in accordance with GAAP. |
2022 Guidance
Bally's is updating its previous guidance provided on February 24, 2022 for the year ending December 31, 2022 with revenue in the range of $2.2 billion to $2.3 billion and Adjusted EBITDA in the range of $535 million to $550 million reflecting six months of results, adverse foreign exchange movements and lower expectations for our Atlantic City property. The guidance is subject to a number of known and unknown uncertainties and risks, including those set forth under Bally's safe-harbor statement under the federal securities laws set forth below.
Capital Return Program
On July 27, 2022, the Company completed its tender offer and repurchased 4.7 million shares of its common stock for cash at a price of $22.00 per share for an aggregate purchase price of $103.3 million. Bally's currently has $334.6 million available for use under its previously announced capital return program.
Reconciliation of GAAP Measures to Non-GAAP Measures
To supplement the financial information presented on a generally accepted accounting principles ("GAAP") basis, the Company has included in this earnings release non-GAAP financial measures for Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDAR and Adjusted EBITDAR margin, 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 the Company, or where noted the Company'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, integration and restructuring expenses, share-based compensation, and certain other gains or losses as well as, when presented for the Company's reporting segments, an adjustment related to the allocation of corporate costs among segments. Adjusted EBITDA margin is measured as Adjusted EBITDA as a percentage of revenue.
"Adjusted EBITDAR" is Adjusted EBITDA (as defined above) for the Company's Casinos & Resorts segment plus rent expense associated with triple net operating leases. Adjusted EBITDAR margin is measured as Adjusted EBITDAR as a percentage of revenue.
Management has historically used Adjusted EBITDA and Adjusted EBITDA margin when evaluating operating performance because the Company believes that these metrics are necessary to provide a full understanding of the Company's core operating results and as a means to evaluate period-to-period performance. Management also believes that Adjusted EBITDA is a measure that is widely used for evaluating operating performance of companies in the Company's industry and a principal basis for valuing such companies as well. Adjusted EBITDAR and Adjusted EBITDAR margin are used outside of our financial statements solely as valuation metrics. Management believes Adjusted EBITDAR and Adjusted EBITDAR margin are additional metrics 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. Neither Adjusted EBITDA or Adjusted EBITDAR should be construed as an alternative to GAAP net income as an indicator of the Company's performance. In addition, Adjusted EBITDA or Adjusted EBITDAR as used by the Company may not be defined in the same manner as other companies in the Company'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 reconciliations of Adjusted EBITDA to net income on a forward-looking basis to 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 calculations of Adjusted EBITDA. Bally's believes that the probable significance of providing these forward-looking non-GAAP financial measures without a reconciliation to the most directly comparable GAAP financial measure, is that investors and analysts will have certain information that Bally's believes is useful and meaningful regarding its operations, including its completed and proposed acquisitions and the estimated impact on those businesses' results from the anticipated changes Bally's is likely to make, or has made, to their operations, but will not have that information on a GAAP basis. Investors are cautioned that Bally's cannot predict the occurrence, timing or amount of all non-GAAP items that may be excluded from Adjusted EBITDA in the future. Accordingly, the actual effect of these items, when determined could potentially be significant to the calculation of Adjusted EBITDA.
Second Quarter Conference Call
Bally's second quarter 2022 earnings conference call and audio webcast will be held today, Thursday, August 4, 2022 at 8:00 a.m. EDT. To access the conference call, please dial (800) 343-4849 (U.S. toll-free) and reference conference ID BALYQ22022. The webcast of the call will be available to the public, on a listen-only basis, via the Internet at the Investors section of the Company's website at www.ballys.com. An online archive of the webcast will be available on the Company's website for 120 days. Supplemental materials have also been posted to the Investors section of the website, under Events & Presentations.
About Bally's Corporation
Bally's Corporation is a global casino-entertainment company with a growing omni-channel presence of Online Sports Betting and iGaming offerings. It currently owns and manages 14 casinos across 10 states, a horse racetrack in Colorado and has access to OSB licenses in 18 states. It also owns Gamesys Group, a leading, global, online gaming operator, Bally's Interactive, a first-in-class sports betting platform, Monkey Knife Fight, a daily fantasy sports site in North America, SportCaller, a leading, global B2B free-to-play game provider, and Telescope Inc., a leading provider of real-time fan engagement solutions.
With approximately 10,000 employees, Bally's casino operations include more than 15,800 slot machines, 500 table games and 5,300 hotel rooms. Upon closing the previously announced Tropicana Las Vegas (NV) transaction, as well as completing the construction of a land-based casino near the Nittany Mall in State College, PA, Bally's will own and manage 16 casinos across 11 states. Its shares trade on the New York Stock Exchange under the ticker symbol "BALY".
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 Securities and Exchange Commission (the "SEC") and other public statements made from time-to-time speak only as of the date made. New risks and uncertainties come up from time to time, and it is impossible for Bally's to predict or identify all such events or how they may affect it. Bally's has no obligation, and does not intend, to update any forward-looking statements after the date hereof, except as required by federal securities laws. Factors that could cause these differences include, but are not limited to those included it the Company's Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and other reports filed by Bally's with the SEC. These statements constitute Bally's cautionary statements under the Private Securities Litigation Reform Act of 1995.
Investor Contact |
Media Contact |
|
Robert Lavan |
Richard Goldman |
|
Chief Financial Officer |
Kekst CNC |
|
401-475-8564 |
646-847-6102 |
|
BALLY'S CORPORATION |
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) |
|||||||
(In thousands, except per share data) |
|||||||
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||
2022 |
2021 |
2022 |
2021 |
||||
Revenue: |
|||||||
Gaming |
$ 455,088 |
$ 207,490 |
$ 918,790 |
$ 362,768 |
|||
Hotel |
33,929 |
22,315 |
60,864 |
35,374 |
|||
Food and beverage |
27,435 |
23,382 |
51,423 |
38,882 |
|||
Retail, entertainment and other |
36,044 |
14,546 |
69,690 |
22,975 |
|||
Total revenue |
552,496 |
267,733 |
1,100,767 |
459,999 |
|||
Operating (income) costs and expenses: |
|||||||
Gaming |
204,051 |
63,350 |
423,263 |
110,604 |
|||
Hotel |
9,731 |
7,506 |
18,313 |
12,655 |
|||
Food and beverage |
21,898 |
17,004 |
40,854 |
29,213 |
|||
Retail, entertainment and other |
14,755 |
2,021 |
27,854 |
3,818 |
|||
Advertising, general and administrative |
181,707 |
101,211 |
363,323 |
181,710 |
|||
Goodwill and asset impairment |
— |
4,675 |
— |
4,675 |
|||
Expansion and pre-opening |
717 |
937 |
717 |
1,540 |
|||
Acquisition, integration and restructuring |
10,112 |
18,402 |
15,392 |
30,660 |
|||
Gain from insurance recoveries, net of losses |
14 |
(579) |
(150) |
(11,255) |
|||
Rebranding |
185 |
382 |
474 |
1,295 |
|||
Gain on sale-leaseback |
(50,766) |
(53,425) |
(50,766) |
(53,425) |
|||
Depreciation and amortization |
74,773 |
25,717 |
153,654 |
38,503 |
|||
Total operating costs and expenses |
467,177 |
187,201 |
992,928 |
349,993 |
|||
Income from operations |
85,319 |
80,532 |
107,839 |
110,006 |
|||
Other income (expense): |
|||||||
Interest income |
148 |
530 |
310 |
1,054 |
|||
Interest expense, net of amounts capitalized |
(45,976) |
(21,829) |
(91,823) |
(42,627) |
|||
Change in value of naming rights liabilities |
20,032 |
19,070 |
33,411 |
(8,336) |
|||
Gain (adjustment) on bargain purchases |
— |
24,114 |
(107) |
24,114 |
|||
Other, net |
5,412 |
(6,494) |
11,619 |
(3,823) |
|||
Total other income (expense), net |
(20,384) |
15,391 |
(46,590) |
(29,618) |
|||
Income before income taxes |
64,935 |
95,923 |
61,249 |
80,388 |
|||
Provision (benefit) for income taxes |
5,434 |
26,981 |
(141) |
22,151 |
|||
Net income |
$ 59,501 |
$ 68,942 |
$ 61,390 |
$ 58,237 |
|||
Basic earnings per share |
$ 0.98 |
$ 1.43 |
$ 1.02 |
$ 1.39 |
|||
Weighted average common shares outstanding - basic |
60,506 |
48,156 |
60,263 |
42,038 |
|||
Diluted earnings per share |
$ 0.98 |
$ 1.40 |
$ 1.02 |
$ 1.37 |
|||
Weighted average common shares outstanding - diluted |
60,541 |
49,102 |
60,332 |
42,374 |
|||
BALLY'S CORPORATION |
|||||||
Revenue and Reconciliation of Net Income and Net Income Margin to |
|||||||
Adjusted EBITDA and Adjusted EBITDA Margin (unaudited) |
|||||||
(in thousands) |
|||||||
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||
2022 |
2021 |
2022 |
2021 |
||||
Revenue |
$ 552,496 |
$ 267,733 |
$ 1,100,767 |
$ 459,999 |
|||
Net income |
$ 59,501 |
$ 68,942 |
$ 61,390 |
$ 58,237 |
|||
Interest expense, net of interest income |
45,828 |
21,299 |
91,513 |
41,573 |
|||
Provision (benefit) for income taxes |
5,434 |
26,981 |
(141) |
22,151 |
|||
Depreciation and amortization |
74,773 |
25,717 |
153,654 |
38,503 |
|||
Non-operating (income) expense(1) |
(25,444) |
(36,690) |
(44,923) |
(11,955) |
|||
Acquisition, integration and restructuring |
10,112 |
18,402 |
15,392 |
30,660 |
|||
Strategic initiatives(2) |
5,408 |
56 |
6,151 |
770 |
|||
Launch costs(3) |
7,082 |
954 |
8,185 |
1,340 |
|||
Share-based compensation |
6,322 |
3,901 |
11,417 |
8,384 |
|||
Gain on sale-leaseback |
(50,766) |
(53,425) |
(50,766) |
(53,425) |
|||
Other(4)(5) |
2,974 |
6,688 |
4,305 |
(1,541) |
|||
Adjusted EBITDA |
$ 141,224 |
$ 82,825 |
$ 256,177 |
$ 134,697 |
|||
Net income margin |
10.8 % |
25.8 % |
5.6 % |
12.7 % |
|||
Adjusted EBITDA margin |
25.6 % |
30.9 % |
23.3 % |
29.3 % |
|||
________________________________
(1) |
Non-operating (income) expense for the applicable periods include: (i) change in value of naming rights liabilities, (ii) gain (adjustment) on bargain purchases, and (iii) other (income) expense, net. |
(2) |
Includes costs incurred to address the Standard General takeover bid, the recent tender offer process, credit amendment expenses and rent expense related to Bally's Black Hawk and Quad Cities properties, as the Company recently entered into sale lease-back transactions associated with these properties to finance the pending Tropicana Las Vegas property acquisition. |
(3) |
Includes upfront and ramp up costs related to the launch of interactive businesses in new jurisdictions prior to full operational commencement. |
(4) |
Other includes the following items for 2022: (i) $2.1 million of non-routine legal expenses, net of recoveries for matters outside the normal course of business, (ii) storm related gains of $0.2 million related to insurance recoveries received due to the effects of Hurricane Zeta on the Company's Hard Rock Biloxi property, (iii) rebranding expenses of $0.5 million in connection with Bally's corporate name change, and (iv) other individually de minimis expenses. |
(5) |
Other includes the following items for 2021: (i) asset impairment charges of $4.7 million related to the Dover Downs and Bally's Black Hawk tradenames in connection with Bally's rebranding, (ii) $3.4 million of professional fees and other costs incurred to establish the partnership with Sinclair and acquire Bally Interactive, (iii) storm related gains of $0.6 million related to insurance recoveries received due to the effects of Hurricane Zeta on the Company's Hard Rock Biloxi property, (iv) rebranding expenses of $0.4 million in connection with Bally's corporate name change, and (v) other individually de minimis expenses. |
BALLY'S CORPORATION |
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Revenue and Reconciliation of Net Income (Loss) to |
|||||||||
Adjusted EBITDA by Segment and Adjusted EBITDA Margin (unaudited) |
|||||||||
(in thousands) |
|||||||||
Three Months Ended June 30, 2022 |
Casinos & |
North |
International |
Other |
Total |
||||
Revenue |
$ 299,875 |
$ 18,050 |
$ 234,571 |
$ — |
$ 552,496 |
||||
Net income (loss) |
$ 70,775 |
$ (24,766) |
$ 42,504 |
$ (29,012) |
$ 59,501 |
||||
Interest expense, net of interest income |
(10) |
(1) |
(130) |
45,969 |
45,828 |
||||
Provision (benefit) for income taxes |
27,229 |
(5,758) |
(5,399) |
(10,638) |
5,434 |
||||
Depreciation and amortization |
14,757 |
7,273 |
44,311 |
8,432 |
74,773 |
||||
Non-operating (income) expense(1) |
— |
(1,541) |
435 |
(24,338) |
(25,444) |
||||
Acquisition, integration and restructuring |
— |
487 |
884 |
8,741 |
10,112 |
||||
Strategic initiatives(2) |
3,018 |
— |
— |
2,390 |
5,408 |
||||
Launch costs(3) |
— |
6,800 |
— |
282 |
7,082 |
||||
Share-based compensation |
— |
— |
— |
6,322 |
6,322 |
||||
Gain on sale-leaseback |
(50,766) |
— |
— |
— |
(50,766) |
||||
Other(4) |
2,580 |
— |
— |
394 |
2,974 |
||||
Allocation of corporate costs |
20,418 |
545 |
7 |
(20,970) |
— |
||||
Adjusted EBITDA |
$ 88,001 |
$ (16,961) |
$ 82,612 |
$ (12,428) |
$ 141,224 |
||||
Rent expense associated with triple net operating leases (5) |
11,471 |
||||||||
Adjusted EBITDAR |
$ 99,472 |
||||||||
Net income margin |
23.6 % |
||||||||
Adjusted EBITDA Margin |
29.3 % |
||||||||
Adjusted EBITDAR margin |
33.2 % |
||||||||
________________________________
(1) |
Non-operating (income) expense for the applicable periods include: (i) change in value of naming rights liabilities, (ii) gain (adjustment) on bargain purchases, and (iii) other (income) expense, net. |
(2) |
Includes costs incurred to address the Standard General takeover bid, the recent tender offer process and rent expense related to Bally's Black Hawk and Quad Cities properties, as the Company recently entered into sale lease-back transactions associated with these properties to finance the pending Tropicana Las Vegas property acquisition. |
(3) |
Includes upfront and ramp up costs related to the launch of interactive businesses in new jurisdictions prior to full operational commencement. |
(4) |
Other includes the following items: (i) non-routine legal expenses, net of recoveries for matters outside the normal course of business ($2.0 million), and (ii) and other individually de minimis expenses. |
(5) |
Rent expense associated with triple net leases for the Company's Bally's Lake Tahoe, Bally's Evansville and Bally's Dover properties. |
BALLY'S CORPORATION |
|||||||
Revenue and Reconciliation of Net Income (Loss) to |
|||||||
Adjusted EBITDA by Segment and Adjusted EBITDA Margin (unaudited) |
|||||||
(in thousands) |
|||||||
Three Months Ended June 30, 2021 |
Casinos & |
North |
Other |
Total |
|||
Revenue |
$ 262,188 |
$ 5,545 |
$ — |
$ 267,733 |
|||
Net income (loss) |
$ 79,644 |
$ (3,230) |
$ (7,472) |
$ 68,942 |
|||
Interest expense, net of interest income |
8 |
(2) |
21,293 |
21,299 |
|||
Provision (benefit) for income taxes |
29,504 |
(513) |
(2,010) |
26,981 |
|||
Depreciation and amortization |
13,453 |
3,385 |
8,879 |
25,717 |
|||
Non-operating (income) expense(1) |
— |
17 |
(36,707) |
(36,690) |
|||
Acquisition, integration and restructuring |
— |
— |
18,402 |
18,402 |
|||
Strategic initiatives(2) |
— |
— |
56 |
56 |
|||
Launch costs(3) |
— |
— |
954 |
954 |
|||
Share-based compensation |
— |
— |
3,901 |
3,901 |
|||
Gain on sale-leaseback |
(53,425) |
— |
— |
(53,425) |
|||
Other(4) |
4,018 |
— |
2,670 |
6,688 |
|||
Allocation of corporate costs |
18,604 |
436 |
(19,040) |
— |
|||
Adjusted EBITDA |
$ 91,806 |
$ 93 |
$ (9,074) |
$ 82,825 |
|||
________________________________
(1) |
Non-operating (income) expense for the applicable periods include: (i) change in value of naming rights liabilities, (ii) gain (adjustment) on bargain purchases, and (iii) other (income) expense, net. |
(2) |
Includes costs incurred related to the amended credit agreement. |
(3) |
Includes upfront and ramp up costs related to the launch of interactive businesses in new jurisdictions prior to full operational commencement. |
(4) |
Other includes the following items: (i) asset impairment charges of $4.7 million related to the Dover Downs and Bally's Black Hawk tradenames in connection with Bally's rebranding, (ii) $2.0 million of professional fees and other costs incurred to establish the partnership with Sinclair and acquire Bally Interactive, (iii) storm related gains of $0.6 million related to insurance recoveries received due to the effects of Hurricane Zeta on the Company's Hard Rock Biloxi property, (iv) rebranding expenses of $0.4 million in connection with Bally's corporate name change, and (v) other individually de minimis expenses. |
BALLY'S CORPORATION |
|||||||||
Revenue and Reconciliation of Net Income (Loss) to |
|||||||||
Adjusted EBITDA by Segment (unaudited) |
|||||||||
(in thousands) |
|||||||||
Six Months Ended June 30, 2022 |
Casinos & |
North |
International |
Other |
Total |
||||
Revenue |
$ 579,845 |
$ 33,277 |
$ 487,645 |
$ — |
$ 1,100,767 |
||||
Net income (loss) |
$ 98,798 |
$ (50,139) |
$ 71,312 |
$ (58,581) |
$ 61,390 |
||||
Interest expense, net of interest income |
(6) |
(3) |
36 |
91,486 |
91,513 |
||||
Provision (benefit) for income taxes |
36,457 |
(8,642) |
(8,566) |
(19,390) |
(141) |
||||
Depreciation and amortization |
30,110 |
16,247 |
90,375 |
16,922 |
153,654 |
||||
Non-operating (income) expense(1) |
— |
(3,136) |
1,550 |
(43,337) |
(44,923) |
||||
Acquisition, integration and restructuring |
— |
776 |
1,225 |
13,391 |
15,392 |
||||
Strategic initiatives(2) |
3,018 |
— |
— |
3,133 |
6,151 |
||||
Launch costs(3) |
— |
7,650 |
— |
535 |
8,185 |
||||
Share-based compensation |
— |
— |
— |
11,417 |
11,417 |
||||
Gain on sale-leaseback |
(50,766) |
— |
— |
— |
(50,766) |
||||
Other(4) |
2,416 |
— |
— |
1,889 |
4,305 |
||||
Allocation of corporate costs |
41,764 |
961 |
7 |
(42,732) |
— |
||||
Adjusted EBITDA |
$ 161,791 |
$ (36,286) |
$ 155,939 |
$ (25,267) |
$ 256,177 |
||||
Rent expense associated with triple net operating leases (5) |
22,882 |
||||||||
Adjusted EBITDAR |
$ 184,673 |
||||||||
Net income margin |
17.0 % |
||||||||
EBITDA Margin |
27.9 % |
||||||||
Adjusted EBITDAR margin |
31.8 % |
||||||||
________________________________
(1) |
Non-operating (income) expense for the applicable periods include: (i) change in value of naming rights liabilities, (ii) gain (adjustment) on bargain purchases, and (iii) other (income) expense, net. |
(2) |
Includes costs incurred to address the Standard General takeover bid, the recent tender offer process and rent expense related to Bally's Black Hawk and Quad Cities properties, as the Company recently entered into sale lease-back transactions associated with these properties to finance the pending Tropicana Las Vegas property acquisition. |
(3) |
Includes upfront and ramp up costs related to the launch of interactive businesses in new jurisdictions prior to full operational commencement. |
(4) |
Other includes the following items: (i) $2.1 million of non-routine legal expenses, net of recoveries for matters outside the normal course of business, (ii) storm related gains of $0.2 million related to insurance recoveries received due to the effects of Hurricane Zeta on the Company's Hard Rock Biloxi property, (iii) rebranding expenses of $0.5 million in connection with Bally's corporate name change, and (iv) other individually de minimis expenses. |
(5) |
Rent expense associated with triple net leases for the Company's Bally's Lake Tahoe, Bally's Evansville and Bally's Dover properties. |
BALLY'S CORPORATION |
|||||||
Revenue and Reconciliation of Net Income (Loss) to |
|||||||
Adjusted EBITDA by Segment (unaudited) |
|||||||
(in thousands) |
|||||||
Six Months Ended June 30, 2021 |
Casinos & |
North |
Other |
Total |
|||
Revenue |
$ 451,621 |
$ 8,378 |
$ — |
$ 459,999 |
|||
Net income (loss) |
$ 112,745 |
$ (2,771) |
$ (51,737) |
$ 58,237 |
|||
Interest expense, net of interest income |
19 |
(2) |
41,556 |
41,573 |
|||
Benefit for income taxes |
41,450 |
(605) |
(18,694) |
22,151 |
|||
Depreciation and amortization |
25,061 |
4,417 |
9,025 |
38,503 |
|||
Non-operating (income) expense(1) |
— |
(35) |
(11,920) |
(11,955) |
|||
Acquisition, integration and restructuring |
— |
— |
30,660 |
30,660 |
|||
Strategic initiatives(2) |
— |
— |
770 |
770 |
|||
Launch costs(3) |
— |
— |
1,340 |
1,340 |
|||
Share-based compensation |
— |
— |
8,384 |
8,384 |
|||
Gain on sale-leaseback |
(53,425) |
— |
— |
(53,425) |
|||
Other(4) |
(6,629) |
— |
5,088 |
(1,541) |
|||
Allocation of corporate costs |
30,205 |
486 |
(30,691) |
— |
|||
Adjusted EBITDA |
$ 149,426 |
$ 1,490 |
$ (16,219) |
$ 134,697 |
|||
________________________________
(1) |
Non-operating income (expense) includes: (i) change in value of naming rights liabilities, (ii) gain on bargain purchases and (iii) other, net. |
(2) |
Includes costs incurred related to the amended credit agreement. |
(3) |
Includes upfront and ramp up costs related to the launch of interactive businesses in new jurisdictions prior to full operational commencement. |
(4) |
Other includes the following items: (i) storm related gains of $11.3 million related to insurance recoveries received due to the effects of Hurricane Zeta on the Company's Hard Rock Biloxi property, (ii) asset impairment charges of $4.7 million related to the Dover Downs and Bally's Black Hawk tradenames in connection with Bally's rebranding (iii) $3.4 million of professional fees and other costs incurred to establish the partnership with Sinclair and acquire Bally Interactive, (iv) rebranding expenses of $1.3 million in connection with Bally's corporate name change, (v) $0.4 million of expenses incurred to establish the partnership with Sinclair, and (vi) other individually de minimis expenses. |
BALLY'S CORPORATION |
|||
Selected Financial Information (unaudited) |
|||
Balance Sheet Data |
|||
(in thousands) |
June 30, |
December 31, |
|
Cash and cash equivalents |
$ 176,158 |
$ 206,193 |
|
Term Loan Facility |
$ 1,935,275 |
$ 1,945,000 |
|
Revolving Credit Facility |
— |
85,000 |
|
5.625% Senior Notes due 2029 |
750,000 |
750,000 |
|
5.875% Senior Notes due 2031 |
750,000 |
750,000 |
|
Less: Unamortized original issue discount |
(29,693) |
(31,425) |
|
Less: Unamortized deferred financing fees |
(49,515) |
(52,348) |
|
Long-term debt, including current portion |
$ 3,356,067 |
$ 3,446,227 |
|
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 |
$ 3,336,617 |
$ 3,426,777 |
|
Cash Flow Data |
|||||||||||
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||
(in thousands) |
2022 |
2021 |
2020 |
2022 |
2021 |
2020 |
|||||
Capital expenditures |
$ 61,565 |
$ 20,458 |
$ 2,449 |
$ 116,081 |
$ 35,785 |
$ 5,448 |
|||||
Cash paid for internally developed software |
16,499 |
— |
— |
31,455 |
— |
— |
|||||
Acquisition of gaming licenses |
50,700 |
— |
— |
51,560 |
250 |
— |
|||||
Cash payments associated with triple net operating leases(1) |
13,000 |
— |
— |
23,000 |
— |
— |
|||||
________________________________
(1) |
Consists of payments made in connection with the Company's triple net operating leases, as defined above. |
BALY-INV
SOURCE Bally's Corporation
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