PR Newswire
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
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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.
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Resorts |
America Interactive |
Interactive |
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Resorts |
America Interactive |
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Resorts |
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________________________________
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BALY-INV
View original content to download multimedia:
https://www.prnewswire.com/news-releases/ballys-corporation-announces-second-quarter-2022-results-301599720.html
SOURCE
Bally’s
Corporation