Bally’s Corporation Announces Fourth Quarter and Full Year 2023 Results
Fourth Quarter 2023 Results and Operating Highlights
-
Consolidated revenues of
$611.7 million , up 6.1% year-over-year and up 8.6% for the full year -
Casinos & Resorts revenues of$342.3 million , up 7.2% year-over-year -
International Interactive revenues of
$236.0 million , up 2.1% year-over-year -
North America Interactive revenues of
$33.4 million , up 26.9% year-over-year year -
Commenced 24/7 operations at the
Chicago Temporary Casino onDecember 27 th; property reached record$10 million GGR for first full month of 24/7 operations in January -
Repurchased 5.8 million shares of common stock for
$68.6 million -
Subsequent to year-end, announced the
April 2nd official closure ofTropicana Las Vegas to prepare for the welcoming of the Las Vegas A’s to the Tropicana site and potential future development
Summary of Financial Results
|
Quarter Ended |
|
Year Ended |
||||||||||||
(in thousands) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Consolidated Revenue |
$ |
611,670 |
|
|
$ |
576,689 |
|
|
$ |
2,449,073 |
|
|
$ |
2,255,705 |
|
Casinos & Resorts Revenue |
|
342,317 |
|
|
|
319,178 |
|
|
|
1,363,291 |
|
|
$ |
1,227,563 |
|
International Interactive Revenue |
|
235,980 |
|
|
|
231,218 |
|
|
|
973,210 |
|
|
|
946,442 |
|
North America Interactive Revenue |
|
33,373 |
|
|
|
26,293 |
|
|
|
112,572 |
|
|
|
81,700 |
|
Net loss |
|
(263,492 |
) |
|
|
(487,529 |
) |
|
|
(172,609 |
) |
|
|
(425,546 |
) |
Adjusted EBITDAR(1) |
|
160,936 |
|
|
|
|
|
653,104 |
|
|
|
||||
(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 completed a successful 2023 with healthy results across all our business segments. Revenues in the fourth quarter grew 6.1% year-over-year to
“In the fourth quarter,
“International Interactive delivered another strong quarter, with revenues increasing 2.1% year-over-year to
“North America Interactive generated fourth quarter revenues of
“Our corporate and property-level teams delivered on an active year of building our growth pipeline. This included the opening of the
“At the end of January, we announced that on
Capital Return Program
During the fourth quarter, Bally’s repurchased 5.8 million shares of its common stock for an aggregate purchase price of
2024 Guidance
Bally’s expects to generate full year 2024 revenues in a range of
Revenue and Adjusted EBITDAR ranges by segment:
-
Casinos & Resorts : revenues of$1.4 billion to$1.5 billion and Adjusted EBITDAR of$410 to$440 million -
International Interactive: revenues of
$950 million to$1.0 billion and Adjusted EBITDAR of$320 to$350 million -
North America Interactive: revenues of
$150 million to$200 million and an Adjusted EBITDAR loss of$25 million to$35 million -
Corporate Expense:
$50 million to$60 million
Additional factors considered in the Company’s outlook include:
-
Straight-line GAAP rent expense of approximately
$126 million and cash rent of approximately$121 million -
Total capital expenditures of
$165 million (this amount excludes investments in theChicago Permanent Casino development plan and demolition costs forTropicana Las Vegas ) - FX currency conversion for GBP at 1.27 and Euro at 1.10 based upon year-end 2023 prevailing rates
The guidance provided is based on current plans and expectations and contains several assumptions. It is subject to known and unknown uncertainties and risks, including those discussed under “Cautionary Note Regarding Forward Looking Statements” set forth below.
Impairment Charges
In the fourth quarter of 2023, Bally’s recorded total non-cash impairment charges of
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.
Fourth Quarter Conference Call
Bally’s fourth quarter 2023 earnings conference call and audio webcast will be held today,
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 16 casinos across 10 states, a golf course in
With 10,500 employees, the Company’s casino operations include approximately 15,000 slot machines, 600 table games and 5,300 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) |
|||||||||||||||
|
Quarter Ended |
|
Year Ended |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenue: |
|
|
|
|
|
|
|
||||||||
Gaming |
$ |
502,955 |
|
|
$ |
461,601 |
|
|
$ |
1,992,041 |
|
|
$ |
1,846,124 |
|
Non-gaming |
|
108,715 |
|
|
|
115,088 |
|
|
|
457,032 |
|
|
|
409,581 |
|
Total revenue |
|
611,670 |
|
|
|
576,689 |
|
|
|
2,449,073 |
|
|
|
2,255,705 |
|
|
|
|
|
|
|
|
|
||||||||
Operating (income) costs and expenses: |
|
|
|
|
|
|
|
||||||||
Gaming |
|
223,206 |
|
|
|
192,459 |
|
|
|
888,937 |
|
|
|
812,918 |
|
Non-gaming |
|
53,578 |
|
|
|
55,803 |
|
|
|
216,239 |
|
|
|
196,318 |
|
General and administrative |
|
391,482 |
|
|
|
245,906 |
|
|
|
1,113,976 |
|
|
|
825,706 |
|
Gain from sale-leaseback, net |
|
— |
|
|
|
— |
|
|
|
(374,321 |
) |
|
|
(50,766 |
) |
Impairment charges |
|
122,072 |
|
|
|
463,978 |
|
|
|
131,725 |
|
|
|
463,978 |
|
Depreciation and amortization |
|
119,173 |
|
|
|
73,052 |
|
|
|
350,408 |
|
|
|
300,559 |
|
Total operating costs and expenses |
|
909,511 |
|
|
|
1,031,198 |
|
|
|
2,326,964 |
|
|
|
2,548,713 |
|
(Loss) income from operations |
|
(297,841 |
) |
|
|
(454,509 |
) |
|
|
122,109 |
|
|
|
(293,008 |
) |
|
|
|
|
|
|
|
|
||||||||
Other income (expense): |
|
|
|
|
|
|
|
||||||||
Interest expense, net |
|
(76,574 |
) |
|
|
(63,068 |
) |
|
|
(277,561 |
) |
|
|
(208,153 |
) |
Other non-operating income (expense), net |
|
(37,135 |
) |
|
|
129 |
|
|
|
(12,186 |
) |
|
|
46,692 |
|
Total other expense, net |
|
(113,709 |
) |
|
|
(62,939 |
) |
|
|
(289,747 |
) |
|
|
(161,461 |
) |
|
|
|
|
|
|
|
|
||||||||
Loss before income taxes |
|
(411,550 |
) |
|
|
(517,448 |
) |
|
|
(167,638 |
) |
|
|
(454,469 |
) |
(Benefit) provision for income taxes |
|
(148,058 |
) |
|
|
(29,919 |
) |
|
|
4,971 |
|
|
|
(28,923 |
) |
Net loss |
$ |
(263,492 |
) |
|
$ |
(487,529 |
) |
|
$ |
(172,609 |
) |
|
$ |
(425,546 |
) |
|
|
|
|
|
|
|
|
||||||||
Basic loss per share |
$ |
(5.11 |
) |
|
$ |
(8.87 |
) |
|
$ |
(3.24 |
) |
|
$ |
(7.32 |
) |
Weighted average common shares outstanding, basic |
|
51,582,156 |
|
|
|
54,969,976 |
|
|
|
53,350,817 |
|
|
|
58,111,699 |
|
Diluted loss per share |
$ |
(5.11 |
) |
|
$ |
(8.87 |
) |
|
$ |
(3.24 |
) |
|
$ |
(7.32 |
) |
Weighted average common shares outstanding, diluted |
|
51,582,156 |
|
|
|
54,969,976 |
|
|
|
53,350,817 |
|
|
|
58,111,699 |
|
BALLY'S CORPORATION |
|||||||||||||||
Revenue and Reconciliation of Net Loss and Net Loss Margin to |
|||||||||||||||
Adjusted EBITDA and Adjusted EBITDA Margin (unaudited) |
|||||||||||||||
(in thousands, except percentages) |
|||||||||||||||
|
Quarter Ended |
|
Year Ended |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenue |
$ |
611,670 |
|
|
$ |
576,689 |
|
|
$ |
2,449,073 |
|
|
$ |
2,255,705 |
|
|
|
|
|
|
|
|
|
||||||||
Net loss |
$ |
(263,492 |
) |
|
$ |
(487,529 |
) |
|
$ |
(172,609 |
) |
|
$ |
(425,546 |
) |
Interest expense, net of interest income |
|
76,574 |
|
|
|
63,068 |
|
|
|
277,561 |
|
|
|
208,153 |
|
(Benefit) provision for income taxes |
|
(148,058 |
) |
|
|
(29,919 |
) |
|
|
4,971 |
|
|
|
(28,923 |
) |
Depreciation and amortization |
|
119,173 |
|
|
|
73,052 |
|
|
|
350,408 |
|
|
|
300,559 |
|
Non-operating (income) expense(1) |
|
26,216 |
|
|
|
(1,861 |
) |
|
|
12,688 |
|
|
|
(46,176 |
) |
Foreign exchange loss (gain) |
|
13,531 |
|
|
|
1,732 |
|
|
|
11,019 |
|
|
|
(516 |
) |
Transaction costs(2) |
|
20,971 |
|
|
|
46,009 |
|
|
|
80,376 |
|
|
|
85,604 |
|
Restructuring charges(3) |
|
10,341 |
|
|
|
— |
|
|
|
31,014 |
|
|
|
— |
|
Decommissioning costs(4) |
|
240 |
|
|
|
— |
|
|
|
2,583 |
|
|
|
— |
|
Share-based compensation |
|
5,487 |
|
|
|
9,780 |
|
|
|
24,074 |
|
|
|
27,912 |
|
Gain on sale-leaseback, net |
|
— |
|
|
|
— |
|
|
|
(374,321 |
) |
|
|
(50,766 |
) |
Planned business divestiture(5) |
|
— |
|
|
|
5,585 |
|
|
|
2,089 |
|
|
|
5,585 |
|
Impairment charges(6) |
|
122,072 |
|
|
|
463,978 |
|
|
|
131,725 |
|
|
|
463,978 |
|
|
|
144,883 |
|
|
|
— |
|
|
|
144,883 |
|
|
|
— |
|
Other(8) |
|
1,375 |
|
|
|
1,923 |
|
|
|
868 |
|
|
|
8,651 |
|
Adjusted EBITDA |
$ |
129,313 |
|
|
$ |
145,818 |
|
|
$ |
527,329 |
|
|
$ |
548,515 |
|
Rent expense associated with triple net operating leases (9) |
|
31,623 |
|
|
|
|
|
125,775 |
|
|
|
||||
Adjusted EBITDAR |
$ |
160,936 |
|
|
|
|
$ |
653,104 |
|
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net loss margin |
|
(43.1 |
)% |
|
|
(84.5 |
)% |
|
|
(7.0 |
)% |
|
|
(18.9 |
)% |
Adjusted EBITDA margin |
|
21.1 |
% |
|
|
25.3 |
% |
|
|
21.5 |
% |
|
|
24.3 |
% |
________________________________ | ||
(1) |
Non-operating (income) expense includes: (i) change in value of naming 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, financing costs incurred in connection with the Hard Rock Biloxi and |
|
(3) |
Restructuring charges representing the severance and employee related benefits related to the announced Interactive business restructuring initiatives. |
|
(4) |
Costs related to the decommissioning of the Company’s sports betting platform in favor of outsourcing the platform solution to third parties. |
|
(5) |
Losses related to a North America Interactive business that Bally’s is marketing as held-for-sale as of |
|
(6) |
Non-cash impairment charges for 2023 included |
|
(7) |
Non-cash reserve to reflect the remaining Diamond commercial rights intangible asset offset by forgiveness of the liability. |
|
(8) |
Other includes the following items: (i) non-routine legal expenses and settlement charges for matters outside the normal course of business, (ii) storm related 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 dated |
BALLY'S CORPORATION
Revenue and Segment Adjusted EBITDAR (unaudited)
|
Quarter Ended |
|
Year Ended |
||||||||||||
(in thousands) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenue |
|
|
|
|
|
|
|
||||||||
|
$ |
342,317 |
|
|
$ |
319,178 |
|
|
$ |
1,363,291 |
|
|
$ |
1,227,563 |
|
International Interactive |
|
235,980 |
|
|
|
231,218 |
|
|
|
973,210 |
|
|
|
946,442 |
|
North America Interactive |
|
33,373 |
|
|
|
26,293 |
|
|
|
112,572 |
|
|
|
81,700 |
|
Total |
$ |
611,670 |
|
|
$ |
576,689 |
|
|
$ |
2,449,073 |
|
|
$ |
2,255,705 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted EBITDAR(1) |
|
|
|
|
|
|
|
||||||||
|
$ |
94,656 |
|
|
$ |
95,517 |
|
|
$ |
428,968 |
|
|
$ |
398,930 |
|
International Interactive |
|
93,207 |
|
|
|
89,399 |
|
|
|
343,559 |
|
|
|
321,651 |
|
North America Interactive |
|
(9,844 |
) |
|
|
(5,858 |
) |
|
|
(55,653 |
) |
|
|
(65,729 |
) |
Other |
|
(17,083 |
) |
|
|
(14,644 |
) |
|
|
(63,770 |
) |
|
|
(53,024 |
) |
Total |
$ |
160,936 |
|
|
|
|
$ |
653,104 |
|
|
|
________________________________ | ||
(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 |
$ |
163,194 |
|
|
$ |
212,515 |
|
Restricted cash |
$ |
139,191 |
|
|
$ |
52,669 |
|
|
|
|
|
||||
Term Loan Facility(1) |
$ |
1,906,100 |
|
|
$ |
1,925,550 |
|
Revolving Credit Facility |
|
335,000 |
|
|
|
137,000 |
|
5.625% Senior Notes due 2029 |
|
750,000 |
|
|
|
750,000 |
|
5.875% Senior Notes due 2031 |
|
735,000 |
|
|
|
750,000 |
|
Less: Unamortized original issue discount |
|
(23,756 |
) |
|
|
(27,729 |
) |
Less: Unamortized deferred financing fees |
|
(39,709 |
) |
|
|
(46,266 |
) |
Long-term debt, including current portion |
$ |
3,662,635 |
|
|
$ |
3,488,555 |
|
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 |
$ |
3,643,185 |
|
|
$ |
3,469,105 |
|
Cash Flow Data
|
Quarter Ended |
Year Ended |
|||||||||||||||
(in thousands) |
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2023 |
|
|
2022 |
|
|
2021 |
Capital expenditures |
$ |
45,252 |
|
$ |
44,893 |
|
$ |
32,393 |
|
$ |
311,483 |
|
$ |
212,256 |
|
$ |
97,525 |
Cash paid for capitalized software |
|
9,297 |
|
|
3,704 |
|
|
13,865 |
|
|
45,200 |
|
|
37,121 |
|
|
15,891 |
Acquisition of gaming licenses |
|
135,335 |
|
|
2,087 |
|
|
25,750 |
|
|
145,485 |
|
|
55,117 |
|
|
30,159 |
Cash payments associated with triple net operating leases(2) |
|
29,935 |
|
|
17,446 |
|
|
11,353 |
|
|
118,416 |
|
|
58,029 |
|
|
26,720 |
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(1) |
During the year ending |
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|
|
|
(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/20240221389554/en/
Investor
Chief Financial Officer
(401) 475-8564
IR@ballys.com
JCIR
(212) 835-8500
baly@jcir.com
Source: Bally’s Corporation