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BALLY'S CORPORATION ANNOUNCES THIRD QUARTER 2021 RESULTS

November 04, 2021

PROVIDENCE, R.I., - November 4, 2021 - Bally’s Corporation (NYSE: BALY) today reported financial results for the third quarter ended September 30, 2021.

 

Third Quarter 2021 Financial and Recent Highlights

 

•       Record revenue of $314.8 million, an increase of $198.2 million, or 169.9%, year over year

•       Net loss of $14.7 million compared to net income of $6.7 million for the comparable period; Adjusted EBITDA of $78.0 million, an increase of $40.0 million year over year

•       Retail Casinos revenue was a record high of $301.6 million

•       Retail Casinos net income of $49.4 million versus $22.1 million for the comparable period; Adjusted Retail Casinos EBITDAR of $106.5 million versus $43.5 million for the comparable period

•       Completed acquisition of Gamesys on October 1st

•       Gamesys Revenue of $278.6 million a record high on a constant currency basis; Net loss and Adjusted EBITDA of $8.7 million and $83.8 million, respectively(1)

 

(1) The Company acquired Gamesys on October 1, 2021. Accordingly, Gamesys results are not included in the Company’s results as of and for the three and nine months ended September 30, 2021.

 

 

Lee Fenton, Chief Executive Officer said, “On October 1, 2021, Bally’s completed its transformational acquisition of Gamesys Group - a strategic combination that further advances Bally's global, data-driven, omni-channel strategy. As a result, our business is evolving from a regional casino operator into an industry leader in retail, sports, media and iGaming, which will see us harness a set of assets that provides a formidable platform for growth as a digital-first leader in global gaming entertainment.”

 

Fenton continued, “This quarter, Retail Casinos had $301.6 million of revenue and $106.5 million of Adjusted Retail Casinos EBITDAR. The quarter was negatively impacted by approximately $6 million of losses related to natural disasters, including two hurricanes and wildfires in Nevada. North America Interactive sales doubled from last quarter at $11.4 million, with Adjusted EBITDA of ($5.5) million, which was in line with our expectations. Adjusted EBITDA for the Company of $78.0 million includes $11.4 million of rent expense and $11.1 million of corporate expense. Gamesys had record Revenue and Adjusted EBITDA on a constant currency basis for the quarter, which will be consolidated into Bally's results starting with the fourth quarter.”

 

 

Summary of Financial Results

Three Months Ended September 30,

(in thousands, except percentages)

2021

2020

Revenue

$

314,779

 

$

116,624

 

Income from operations

$

27,734

 

$

23,383

 

Income from operations margin

8.8

%

20.0

%

Net (loss) income

$

(14,747)

 

$

6,723

 

Net (loss) income margin

(4.7)

%

5.8

%

Adjusted EBITDA(1)

$

77,977

 

$

38,005

 

Adjusted EBITDA margin(1)

24.8

%

32.6

%

Retail Casinos net income

$

49,387

 

$

22,083

 

Retail Casinos net income margin

16.4

%

19.2

%

Adjusted Retail Casinos EBITDAR(1)

$

106,534

 

$

43,512

 

Adjusted Retail Casinos EBITDAR margin(1)

35.3

%

37.8

%

(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.

 

Global Refinancing

 

On August 20, 2021, the Company issued $750.0 million aggregate principal amount of senior notes due 2029 and $750.0 million aggregate principal amount of senior notes due 2031.

 

On October 1, 2021, the Company entered into a credit agreement for senior secured credit facilities consisting of a $1.945 billion senior secured first lien term loan facility and an undrawn $620.0 million senior secured first lien revolving credit facility. The proceeds of the new credit facilities and the new senior notes plus other resources were used to repay the Company's existing debt, pay a portion of the Gamesys acquisition price and repay Gamesys debt. On October 1, 2021, gross debt was $3.445 billion with no drawings on the senior secured first lien revolving credit facility.

 

Shares Outstanding

 

As of October 31, 2021, the Company had 54,363,371 common shares issued and outstanding. Not included in the common shares outstanding are the Company-issued warrants, options and other contingent consideration provided as part of acquisitions and strategic partnerships that, as a result of the exercise of warrants and options, or the achievement of certain performance targets, may result in the issuance of common shares in future periods. These incremental shares are summarized below:

Sinclair Penny Warrants

7,911,724

Sinclair Performance Warrants

3,279,337

Sinclair Options(1)

1,639,669

Monkey Knife Fight penny warrants

24,611

Monkey Knife Fight contingent shares

787,557

Telescope contingent shares

75,678

SportCaller contingent shares(2)

230,830

Outstanding awards under Equity Incentive Plans

895,988

14,845,394

(1) Consists of four equal tranches to purchase shares with exercise prices ranging from $30.00 to $45.00 per share, exercisable over a seven-year period beginning on the fourth anniversary of the November 18, 2020 closing of the Sinclair Agreement.

(2) The contingent consideration related to the SportCaller acquisition is 10M EUR, payable in shares subject to certain post-acquisition earnout targets and based on share price at time of payment.  For purposes of this estimate, the Company used the EUR>USD conversion rate of 1.1574 as of September 30, 2021 and the closing share price of Company common shares of $50.14 per share to calculate the shares expected to be issued if all earn-out targets are met.

 

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 Retail Casinos EBITDAR and Adjusted Retail Casinos EBITDAR margin, which exclude certain items described below. The Company believes these measures represent important measures of financial performance that provide useful information that is helpful in understanding the Company’s ongoing operating results. 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, gain on sale-leaseback, 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 Retail Casinos EBITDAR” is Adjusted EBITDA (as defined above) for the Company's East and West segments plus rent expense associated with triple net operating leases with GLPI for the real estate assets used in the operation of Bally's Evansville and Dover Downs and the assumption of the lease for real estate and land underlying the operations of the Bally’s Lake Tahoe property. Adjusted Retail Casinos EBITDAR margin is measured as Adjusted Retail Casinos EBITDAR as a percentage of revenue.

 

Management has historically used Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Retail Casinos EBITDAR and Adjusted Retail Casinos EBITDAR 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 resort and gaming companies like the Company. Management of the Company believes that while certain items excluded from Adjusted EBITDA and Adjusted Retail Casinos EBITDAR may be recurring in nature and should not be disregarded in evaluating the Company’s earnings performance, it is useful to exclude such items when comparing current performance to prior periods because these items can vary significantly depending on specific underlying transactions or events that may not be comparable between the periods presented or they may not relate specifically to current operating trends or be indicative of future results. Neither Adjusted EBITDA or Adjusted Retail Casinos EBITDAR should be construed as an alternative to GAAP net income or GAAP diluted EPS, respectively, 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.

 

Third Quarter Conference Call

The Company’s third quarter 2021 earnings conference call and audio webcast will be held today, Thursday, November 4, 2021 at 10:00 AM EDT. To access the conference call, please dial (877) 876-9176 (U.S. toll-free) and reference conference ID BALYQ32021. 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 15 states. It also owns Gamesys Group, a leading, global, online gaming operator, Bally Interactive, a first-in-class sports betting platform, Monkey Knife Fight, the fastest growing 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, the Company’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 BALY 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 BALY to predict or identify all such events or how they may affect it.  BALY 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 the Company with the SEC. These statements constitute the Company's cautionary statements under the Private Securities Litigation Reform Act of 1995.

 

Investor Contact

Media Contact

Robert Lavan

Richard Goldman / David Gill

Senior Vice President, Finance and Investor Relations

Kekst CNC

401-475-8564

646-847-6102 / 917-842-5384

InvestorRelations@ballys.com

BallysMediaInquiries@kekstcnc.com

 

 


BALLY'S CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

(In thousands, except share data)

 

September 30,
2021

December 31,
2020

Assets

Cash and cash equivalents

$

164,259

 

$

123,445

 

Restricted cash

1,844,758

 

3,110

 

Accounts receivable, net

39,770

 

14,798

 

Inventory

12,048

 

9,296

 

Tax receivable

102,388

 

84,483

 

Prepaid expenses and other current assets

79,255

 

53,823

 

Total current assets

2,242,478

 

288,955

 

Property and equipment, net

780,656

 

749,029

 

Right of use assets, net

499,133

 

36,112

 

Goodwill

444,908

 

186,979

 

Intangible assets, net

996,686

 

663,395

 

Other assets

5,842

 

5,385

 

Total assets

$

4,969,703

 

$

1,929,855

 

Liabilities and Stockholders’ Equity

Current portion of long-term debt

$

5,750

 

$

5,750

 

Current portion of lease liabilities

20,567

 

1,520

 

Accounts payable

36,976

 

15,869

 

Accrued liabilities

207,283

 

120,055

 

Total current liabilities

270,576

 

143,194

 

Long-term debt, net

2,556,421

 

1,094,105

 

Long-term portion of lease liabilities

504,885

 

62,025

 

Pension benefit obligations

8,147

 

9,215

 

Deferred tax liability

63,123

 

36,983

 

Naming rights liabilities

190,270

 

243,965

 

Contingent consideration payable

43,691

 

 

Other long-term liabilities

15,139

 

13,770

 

Total liabilities

3,652,252

 

1,603,257

 

Commitments and contingencies

Stockholders’ equity:

Common stock ($0.01 par value, 200,000,000 shares authorized; 44,581,568 and 30,685,938 shares issued; 44,581,568 and 30,685,938 shares outstanding)

445

 

307

 

Preferred stock ($0.01 par value; 10,000,000 shares authorized; no shares outstanding)

 

 

Additional paid-in-capital

1,368,908

 

294,643

 

Treasury stock, at cost

 

 

Retained earnings

(8,328)

 

34,792

 

Accumulated other comprehensive loss

(47,334)

 

(3,144)

 

Total Bally’s Corporation stockholders’ equity

1,313,691

 

 

326,598

 

Non-controlling interest

3,760

 

 

 

Total stockholders’ equity

1,317,451

 

326,598

 

Total liabilities and stockholders’ equity

$

4,969,703

 

$

1,929,855

 


BALLY'S CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(In thousands, except per share data)

Three Months Ended September 30,

Nine Months Ended September 30,

2021

2020

2021

2020

Revenue:

Gaming

$

227,594

 

$

96,588

 

$

585,791

 

$

196,191

 

Racing

2,022

 

1,684

 

6,593

 

4,817

 

Hotel

32,903

 

6,874

 

68,277

 

16,635

 

Food and beverage

29,504

 

6,889

 

68,386

 

23,875

 

Other

22,756

 

4,589

 

45,731

 

13,178

 

Total revenue

314,779

 

116,624

 

774,778

 

254,696

 

Operating (income) costs and expenses:

Gaming

75,174

 

25,996

 

182,059

 

59,080

 

Racing

1,996

 

1,681

 

5,715

 

4,877

 

Hotel

9,413

 

2,482

 

22,068

 

6,926

 

Food and beverage

21,419

 

6,016

 

50,632

 

21,951

 

Other

7,624

 

408

 

11,442

 

2,461

 

Advertising, general and administrative

142,905

 

43,996

 

324,615

 

117,594

 

Goodwill and asset impairment

 

 

4,675

 

8,554

 

Expansion and pre-opening

232

 

 

1,772

 

 

Acquisition, integration and restructuring

6,797

 

2,740

 

37,457

 

6,984

 

Gain from insurance recoveries, net of losses

(7,942)

 

(10)

 

(19,197)

 

(1,036)

 

Rebranding

427

 

 

1,722

 

 

Gain on sale-leaseback

 

 

(53,425)

 

 

Depreciation and amortization

29,000

 

9,932

 

67,503

 

28,054

 

Total operating (income) costs and expenses

287,045

 

93,241

 

637,038

 

255,445

 

Income (loss) from operations

27,734

 

23,383

 

137,740

 

(749)

 

Other income (expense):

Interest income

547

 

42

 

1,601

 

297

 

Interest expense, net of amounts capitalized

(31,853)

 

(16,950)

 

(74,480)

 

(43,688)

 

Change in value of naming rights liabilities

6,965

 

 

(1,371)

 

 

Gain (adjustment) on bargain purchases

(1,039)

 

 

23,075

 

 

Loss on extinguishment of debt

(19,419)

 

 

 

 

(19,419)

 

 

 

Other, net

(3,082)

 

 

(6,905)

 

 

Total other expense, net

(47,881)

 

(16,908)

 

(77,499)

 

(43,391)

 

(Loss) income before provision for income taxes

(20,147)

 

6,475

 

60,241

 

(44,140)

 

(Benefit) provision for income taxes

(5,400)

 

(248)

 

16,751

 

(18,430)

 

Net (loss) income

$

(14,747)

 

$

6,723

 

$

43,490

 

$

(25,710)

 

Basic earnings (loss) per share

$

(0.30)

 

$

0.22

 

$

0.95

 

$

(0.83)

 

Weighted average common shares outstanding - basic

49,506

 

30,458

 

45,573

 

30,825

 

Diluted earnings (loss) per share

$

(0.30)

 

$

0.22

 

$

0.95

 

$

(0.83)

 

Weighted average common shares outstanding - diluted

49,506

 

30,635

 

45,876

 

30,825

 

 


BALLY'S CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

(In thousands)

Nine Months Ended September 30,

(in thousands)

2021

2020

Cash flows from operating activities:

 

 

Net income (loss )

$

43,490

 

$

(25,710)

 

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation and amortization

67,503

 

28,054

 

Amortization of operating lease right of use assets

7,497

 

875

 

Goodwill and asset impairment

4,675

 

8,554

 

Share-based compensation

13,833

 

9,468

 

Amortization of debt discount and debt issuance costs

4,890

 

3,256

 

Gain from insurance recoveries

(18,660)

 

 

Gain on sale-leaseback

(53,425)

 

 

Loss on assets and liabilities measured at fair value

21,280

 

 

Loss on extinguishment of debt

19,419

 

 

 

Deferred income taxes

(1,296)

 

(6,209)

 

Change in value of naming rights liabilities

1,371

 

 

Change in contingent consideration payable

(14,830)

 

 

Gain on bargain purchases

(23,075)

 

 

Other operating activities

4,715

 

162

 

Changes in current operating assets and liabilities

(6,544)

 

(16,739)

 

Net cash provided by operating activities

70,843

 

1,711

 

Cash flows from investing activities:

Cash paid for acquisitions, net of cash acquired

(371,655)

 

(275,947)

 

Deposit for pending acquisition of Bally’s Quad Cities Casino & Hotel

 

(4,000)

 

Foreign exchange forward contract premiums

(22,592)

 

 

Capital expenditures

(67,158)

 

(8,566)

 

Insurance proceeds from hurricane damage

18,660

 

 

Other investing activities

(3,382)

 

 

Net cash used in investing activities

(446,127)

 

(288,513)

 

Cash flows from financing activities:

Issuance of common stock, net

667,872

 

 

Proceeds from sale-leaseback

144,000

 

 

Revolver borrowings

275,000

 

250,000

 

Revolver payments

(85,000)

 

(250,000)

 

Term loan proceeds, net

 

261,180

 

Term loan repayments

(4,313)

 

(2,938)

 

Senior note proceeds, net of fees of $12,998

1,487,003

 

 

 

Senior note repayments

(210,000)

 

 

 

Payment of redemption premium on debt extinguishment

(14,175)

 

 

 

Payment of financing fees

(9,968)

 

(1,117)

 

Share repurchases

 

(33,292)

 

Issuance of Sinclair penny warrants

50,000

 

 

Payment of shareholder dividends

 

(3,199)

 

Share redemption for tax withholdings - restricted stock

(1,323)

 

(2,564)

 

Stock options exercised

301

 

84

 

Net cash provided by financing activities

2,299,397

 

218,154

 

Effect of foreign currency on cash and cash equivalents

(41,651)

 

 

Net change in cash and cash equivalents and restricted cash

1,882,462

 

(68,648)

 

Cash and cash equivalents and restricted cash, beginning of period

126,555

 

185,502

 

Cash and cash equivalents and restricted cash, end of period

$

2,009,017

 

$

116,854

 

Supplemental disclosure of cash flow information:

Cash paid for interest, net of amounts capitalized

$

51,396

 

$

33,627

 

Cash paid for income taxes, net of refunds

35,736

 

4,385

 


BALLY'S CORPORATION

 

Revenue and Reconciliation of Net Income (Loss) and Net Income (Loss) Margin to

Adjusted EBITDA and Adjusted EBITDA Margin (unaudited)

(in thousands)

 

Three Months Ended September 30,

Nine Months Ended September 30,

2021

2020

2021

2020

Revenue

$

314,779

 

$

116,624

 

$

774,778

 

 

$

254,696

 

Net (loss) income

$

(14,747)

 

$

6,723

 

$

43,490

 

 

$

(25,710)

 

Interest expense, net of interest income

31,306

 

16,908

 

72,879

 

 

43,391

 

(Benefit) provision for income taxes

(5,400)

 

(248)

 

16,751

 

 

(18,430)

 

Depreciation and amortization

29,000

 

9,932

 

67,503

 

 

28,054

 

Non-operating (income) expense(1)

16,575

 

 

4,620

 

 

Acquisition, integration and restructuring

6,797

 

2,740

 

37,457

 

 

6,984

 

Share-based compensation

5,449

 

1,799

 

13,833

 

 

9,468

 

Gain on sale-leaseback

 

 

(53,425)

 

 

 

Other(2)

8,997

 

151

 

11,106

 

5,586

 

Adjusted EBITDA

$

77,977

 

$

38,005

 

$

214,214

 

$

49,343

 

Net (loss) income margin

(4.7)

%

5.8

%

5.6

%

(10.1)

%

Adjusted EBITDA margin

24.8

%

32.6

%

27.6

%

19.4

%

________________________________

(1) Non-operating (income) expense for the applicable periods include: (i) change in value of naming rights liabilities, (ii) gain on bargain purchases, (iii) loss on extinguishment of debt, and, (iv) other (income) expense, net.

(2) Other includes the following non-recurring items for the applicable periods: (i) Goodwill and asset impairments, (ii) deal-related, rebranding, expansion and pre-opening expenses, (iii) Employee Retention Credits related to COVID-19, (iv) Credit Agreement amendment related expenses, (v) costs related to pursuing sports betting, iGaming and lottery access in various jurisdictions, (vi) non-routine legal expenses, and (vii) net gains related to insurance recoveries.

 


BALLY'S CORPORATION

 

Revenue and Reconciliation of Net Income (Loss) to

Adjusted EBITDA by Segment (unaudited)

(in thousands)

 

 

Three Months Ended September 30, 2021

East

West

Other

Total

Revenue

$

176,975

 

 

$

124,603

 

 

$

13,201

 

 

$

314,779

 

Net income (loss)

$

25,386

 

$

24,001

 

$

(64,134)

 

$

(14,747)

 

Interest expense, net of interest income

6

 

(1)

 

31,301

 

31,306

 

Provision (benefit) for income taxes

9,077

 

7,217

 

(21,694)

 

(5,400)

 

Depreciation and amortization

5,763

 

8,279

 

14,958

 

29,000

 

Non-operating (income) expense(1)

 

 

16,575

 

16,575

 

Acquisition, integration and restructuring

 

 

6,797

 

6,797

 

Share-based compensation

 

 

5,449

 

5,449

 

Other(1)

1,397

 

(5,853)

 

13,453

 

8,997

 

Allocation of corporate costs

11,686

 

8,165

 

(19,851)

 

 

Adjusted EBITDA

$

53,315

 

$

41,808

 

$

(17,146)

 

$

77,977

 

________________________________

(1)   See descriptions of adjustments in the “Reconciliation of Net Income and Net Income Margin to Adjusted EBITDA and Adjusted EBITDA Margin (unaudited)” table above.

 

Three Months Ended September 30, 2020

East

West

Other

Total

Revenue

$

59,065

 

 

$

55,900

 

 

$

1,659

 

 

$

116,624

 

Net income (loss)

$

10,702

 

$

11,381

 

$

(15,360)

 

$

6,723

 

Interest expense, net of interest income

30

 

(12)

 

16,890

 

16,908

 

Provision (benefit) for income taxes

3,846

 

3,155

 

(7,249)

 

(248)

 

Depreciation and amortization

5,571

 

4,279

 

82

 

9,932

 

Acquisition, integration and restructuring

 

 

2,740

 

2,740

 

Share-based compensation

 

 

1,799

 

1,799

 

Other(1)

(330)

 

(154)

 

635

 

151

 

Allocation of corporate costs

2,591

 

2,453

 

(5,044)

 

 

Adjusted EBITDA

$

22,410

 

$

21,102

 

$

(5,507)

 

$

38,005

 

________________________________

(1)   See descriptions of adjustments in the “Reconciliation of Net Income and Net Income Margin to Adjusted EBITDA and Adjusted EBITDA Margin (unaudited)” table above.

 


BALLY'S CORPORATION

 

Revenue and Reconciliation of Net Income (Loss) to

Adjusted EBITDA by Segment (unaudited)

(in thousands)

 

Nine Months Ended September 30, 2021

East

West

Other

Total

Revenue

$

408,458

 

 

$

343,190

 

 

$

23,130

 

 

$

774,778

 

Net income (loss)

$

90,353

 

$

77,397

 

$

(124,260)

 

$

43,490

 

Interest expense, net of interest income

38

 

(14)

 

72,855

 

72,879

 

Provision (benefit) for income taxes

34,434

 

23,310

 

(40,993)

 

16,751

 

Depreciation and amortization

17,275

 

21,695

 

28,533

 

67,503

 

Non-operating (income) expense(1)

 

 

4,620

 

4,620

 

Acquisition, integration and restructuring

 

 

37,457

 

37,457

 

Share-based compensation

 

 

13,833

 

13,833

 

Gain on sale-leaseback

(53,425)

 

 

 

(53,425)

 

Other(1)

5,784

 

(15,329)

 

20,651

 

11,106

 

Allocation of corporate costs

26,544

 

22,365

 

(48,909)

 

 

Adjusted EBITDA

$

121,003

 

$

129,424

 

$

(36,213)

 

$

214,214

 

________________________________

(1)   See descriptions of adjustments in the “Reconciliation of Net Income and Net Income Margin to Adjusted EBITDA and Adjusted EBITDA Margin (unaudited)” table above.

 

Nine Months Ended September 30, 2020

East

West

Other

Total

Revenue

$

146,848

 

 

$

104,039

 

 

$

3,809

 

 

$

254,696

 

Net income (loss)

$

6,602

 

$

7,710

 

$

(40,022)

 

$

(25,710)

 

Interest expense, net of interest income

51

 

(25)

 

43,365

 

43,391

 

Provision (benefit) for income taxes

2,443

 

610

 

(21,483)

 

(18,430)

 

Depreciation and amortization

18,022

 

9,805

 

227

 

28,054

 

Acquisition, integration and restructuring

20

 

 

6,964

 

6,984

 

Share-based compensation

 

 

9,468

 

9,468

 

Other(1)

(2,379)

 

7,614

 

351

 

5,586

 

Allocation of corporate costs

8,683

 

5,794

 

(14,477)

 

 

Adjusted EBITDA

$

33,442

 

$

31,508

 

$

(15,607)

 

$

49,343

 

________________________________

(1)   See descriptions of adjustments in the “Reconciliation of Net Income and Net Income Margin to Adjusted EBITDA and Adjusted EBITDA Margin (unaudited)” table above.

 

 

 


BALLY'S CORPORATION

Revenue and Reconciliation of Net Income and Net Income Margin to

Adjusted EBITDAR and Adjusted EBITDAR Margin for Retail Casinos (unaudited)

(in thousands)

Three Months Ended September 30, 2021

East

West

Retail Casinos

Revenue

$

176,975

 

 

$

124,603

 

$

301,578

 

Net income

$

25,386

 

$

24,001

 

$

49,387

 

Interest expense, net of interest income

6

 

(1)

 

5

 

Provision (benefit) for income taxes

9,077

 

7,217

 

16,294

 

Depreciation and amortization

5,763

 

8,279

 

14,042

 

Other(1)

1,397

 

(5,853)

 

(4,456)

 

Allocation of corporate costs

11,686

 

8,165

 

19,851

 

Adjusted EBITDA

$

53,315

 

$

41,808

 

$

95,123

 

Rent expense associated with triple net operating leases (2)

9,996

 

1,415

 

11,411

 

Adjusted EBITDAR

$

63,311

 

$

43,223

 

$

106,534

 

Retail Casinos net income margin

16.4

%

Retail Casinos Adjusted EBITDAR margin

35.3

%

(1)   See descriptions of adjustments in the “Reconciliation of Net Income and Net Income Margin to Adjusted EBITDA and Adjusted EBITDA Margin (unaudited)” table above.

(2)   Consists of the operating lease components contained within our triple net master lease dated June 4, 2021 with Gaming and Leisure Properties, Inc. ("GLPI") and the triple net lease assumed in connection with our acquisition of Bally's Lake Tahoe, which is primarily our individual triple net leases with GLPI for the real estate assets used in the operation of Bally's Evansville and Dover Downs, and the assumption of the lease for real estate and land underlying the operations of the Bally’s Lake Tahoe facility.

Three Months Ended September 30, 2020

East

West

Retail Casinos

Revenue

$

59,065

 

 

$

55,900

 

$

114,965

 

Net income

$

10,702

 

$

11,381

 

$

22,083

 

Interest expense, net of interest income

30

 

(12)

 

18

 

Provision (benefit) for income taxes

3,846

 

3,155

 

7,001

 

Depreciation and amortization

5,571

 

4,279

 

9,850

 

Other(1)

(330)

 

(154)

 

(484)

 

Allocation of corporate costs

2,591

 

2,453

 

5,044

 

Adjusted EBITDA

$

22,410

 

$

21,102

 

$

43,512

 

Rent expense associated with triple net operating leases(2)

 

 

 

Adjusted EBITDAR

$

22,410

 

$

21,102

 

$

43,512

 

Retail Casinos net income margin

19.2

%

Adjusted Retail Casinos EBITDAR margin

37.8

%

(1)   See descriptions of adjustments in the “Reconciliation of Net Income and Net Income Margin to Adjusted EBITDA and Adjusted EBITDA Margin (unaudited)” table above.

(2)   See description of adjustment in the "Revenue and Reconciliation of Net Income (Loss) and Net Income (Loss) Margin to Adjusted EBITDAR and Adjusted EBITDAR Margin for Retail Casinos (unaudited)” table above.


BALLY'S CORPORATION

 

Reconciliation of Net Loss to Adjusted EBITDA for North America Interactive (unaudited)

(in thousands)

 

Three Months Ended September 30, 2021

North America Interactive

Net loss

$

(19,213)

 

Interest expense, net of interest income

(10)

 

Provision (benefit) for income taxes

(5,780)

 

Depreciation and amortization

6,274

 

Non-operating (income) expense(1)

22

 

Other(1)

12,577

 

Allocation of corporate costs

651

 

Adjusted EBITDA

$

(5,479)

 

________________________________

(1)   See descriptions of adjustments in the “Reconciliation of Net Income and Net Income Margin to Adjusted EBITDA and Adjusted EBITDA Margin (unaudited)” table above.

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