Third Twin River Worldwide Holdings, Inc. October 29, 2020 Forward-Looking Statements and Non-GAAP Financial Measures To supplement the financial information presented on a U.S. generally accepted accounting principles ("GAAP") basis, the Company has included in this investor presentation non-GAAP financial measures. The presentation of non-GAAP financial measures in this investor presentation is not intended to be considered in isolation or as a substitute for any measure prepared in accordance with GAAP. ...

Transformational Bet.WorksAcquisition & Sinclair Broadcast Group Partnership November 19, 2020 © Bally's Corporation 2020 – All rights reserved Forward-Looking Statements — Bally's Corporation This presentation contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. All statements, other than historical facts, including future fi ...

Company Overview - As of March 31, 2025, the company owns and manages 19 casinos across 11 states in the US and one casino in the UK, with a recent merger adding four additional casinos to its portfolio[205]. - The company has a significant stake in Intralot S.A., a global lottery management business, which diversifies its revenue streams[205]. - The company completed a merger with The Queen Casino & Entertainment Inc. on February 7, 2025, enhancing its market presence[208]. Financial Performance - Total revenue for the Successor period from February 8, 2025 to March 31, 2025 was $368.7 million, a decrease of 5% or $29.3 million from $618.5 million in the three months ended March 31, 2024[226]. - Net income for the Successor period was $34.5 million, compared to a net loss of $51.0 million for the Predecessor period and a net loss of $173.9 million for the three months ended March 31, 2024[234]. - Gaming revenue for the Successor period was $313.8 million, up 3% or $8.8 million from the previous year, while International Interactive revenue decreased by 22% or $42.9 million[226]. - Adjusted EBITDA for the Successor period was $83.3 million, compared to $116.5 million for the three months ended March 31, 2024[235]. - Adjusted EBITDAR for the Casinos & Resorts segment was $71.5 million for the Successor period, down from $89.4 million in the three months ended March 31, 2024[236]. - Total revenue for the Successor period from February 8, 2025 to March 31, 2025 was $368.7 million, a significant increase from $220.5 million in the Predecessor period[239]. - Adjusted EBITDA for the Successor period was $83.3 million, compared to $24.4 million in the Predecessor period, reflecting a strong operational performance[239]. - The effective tax rate for the Successor period was 155.2%, reflecting a benefit for income tax of $(97.1) million[232]. Expenses and Costs - General and administrative expenses increased by 11% or $26.4 million to $160.4 million compared to $248.4 million in the three months ended March 31, 2024, primarily due to costs related to the Merger Agreement[228]. - Depreciation and amortization expenses decreased by 56% or $89.9 million to $69.8 million, driven by accelerated depreciation recorded in the first quarter of 2024[229]. - Total operating costs and expenses for the Successor period were 100.5% of total revenue, down from 112.0% in the previous year[222]. - Interest expense increased to (14.0)% of total revenue for the Successor period, compared to (11.8)% in the previous year[222]. Investments and Capital Expenditures - The company is committed to investing $100 million in Rhode Island over the term of its regulatory agreement, which includes expanding Bally's Twin River and adding new amenities[215]. - Capital expenditures for the Successor period from February 8, 2025, to March 31, 2025, were $30.5 million, while the Predecessor Period from January 1, 2025, to February 7, 2025, was $16.4 million[274]. - The Company expects to spend at least $1.34 billion on the design, construction, and outfitting of its temporary casino and permanent resort and casino in Chicago[278]. - The Company committed to invest $100 million in Bally's Twin River over the term of its master contract, with approximately $45 million remaining as of March 31, 2025[275]. Debt and Financing - The Company entered into a Credit Agreement providing for a senior secured term loan facility of $1.945 billion, maturing in 2028, and a revolving credit facility of $620 million, maturing in 2026[263]. - The Company issued $500 million in first lien senior secured notes due October 2, 2028, at an annual interest rate of 11% as part of the merger financing[262]. - As of March 31, 2025, the Company had $2.02 billion of variable rate debt outstanding under its Term Loan and Revolving Credit Facilities[283]. - A hypothetical increase of 1% in the effective interest rate would cause an increase in interest expense of approximately $20.2 million over the next twelve months[283]. - As of March 31, 2025, the Company was in compliance with all applicable covenants related to its credit facilities, including maintaining a first lien secured indebtedness to Adjusted EBITDA ratio of 5.00 to 1.00 when borrowings exceed 30% of the total revolving commitment[265]. Cash Flow - Net cash provided by operating activities for the Successor period was $42.0 million, contrasting with a net cash used of $80.2 million in the Predecessor period[255]. - Cash and cash equivalents at the end of the Successor period totaled $264.7 million, up from $230.9 million at the beginning of the period[254]. - Net cash used in investing activities for the Successor period was $20.8 million, compared to $17.7 million in the Predecessor period[256]. - Financing activities provided $14.1 million in the Successor period, a 118.3% increase from $51.3 million in the three months ended March 31, 2024[257]. Regulatory and Compliance - The company operates under a regulatory agreement in Rhode Island that imposes financial covenants and operational restrictions, including a leverage ratio limit of 5.50 to 1.00[213]. - The company is focusing on the integration of acquired assets and capital deployment for strategic growth projects, positioning itself as a vertically integrated iGaming company[207]. - The company faces risks from global economic challenges, including rising inflation and interest rates, which could impact consumer spending and visitation to its properties[216]. Sponsorship and Agreements - The Company has entered into several sponsorship agreements with obligations totaling $122.7 million, extending through 2036[279].

Revenue Performance - Total revenue for the first quarter of 2025 was $589.2 million, a decrease of 4.7% year over year from $618.5 million[3] - Casinos & Resorts revenue increased by 2.6% year over year to $351.2 million[5] - International Interactive revenue declined by 18.3% year over year to $191.7 million, primarily due to the divestiture of the Asia interactive business in 2024[5] - North America Interactive revenue rose by 12.5% year over year to $44.5 million, benefiting from the addition of the Queen interactive business[5] - Total revenue for the combined company for the three months ended March 31, 2025, was $611,068,000, compared to $674,730,000 for the same period in 2024, representing a decrease of approximately 9.4%[36][39] Adjusted EBITDAR - Adjusted EBITDAR for the Casinos & Resorts segment grew by 6.3% year over year to $95.1 million[8] - U.K. online revenue increased by 4.9% year over year, while overall International Interactive Adjusted EBITDAR was down 7.7% year over year to $77.1 million[9] - Adjusted EBITDAR for the combined company for the three months ended March 31, 2025, was $100,569,000, down from $107,001,000 in the same period in 2024, indicating a decline of about 6.7%[36][39] Cash and Debt Management - Cash and cash equivalents increased to $209,727,000 as of March 31, 2025, from $171,233,000 as of December 31, 2024, reflecting a growth of approximately 22.5%[29] - Long-term debt, net, rose to $3,430,709,000 as of March 31, 2025, compared to $3,299,323,000 as of December 31, 2024, marking an increase of about 4%[29] Capital Expenditures and Investments - Capital expenditures for the period from February 8, 2025, to March 31, 2025, were $30,457,000, compared to $28,053,000 for the same period in 2024, showing an increase of approximately 8.6%[32] - Bally's committed to a strategic capital investment of AUD $300 million in Star Entertainment Group, potentially owning approximately 38% of Star[11] Strategic Focus and Operations - The company is focusing on optimizing the results of its North America Interactive segment while growing its International Interactive business[6] - The construction of the permanent Chicago casino is ongoing, supported by Gaming and Leisure Properties, Inc.[5] - Bally's legacy properties outpaced market growth in seven of twelve jurisdictions during the first quarter[7] Financial Instruments and Risk Management - The company has entered into currency swaps to convert $500 million of its Term Loan Facility to €461.6 million fixed-rate Euro-denominated instrument due October 2028[32] - The company reported cash payments associated with triple net operating leases of $29,705,000 for the period from February 8, 2025, to March 31, 2025[32] - The company’s interest rate contract arrangements amount to an additional $1.0 billion notional, maturing in 2028, as part of its risk management program[32] Proforma Financial Information - Proforma combined financial information provides a baseline for future comparative results of Bally's and Queen, reflecting their merger as if it occurred on January 1, 2024[26] - Adjusted International Interactive revenue for the three months ended March 31, 2025, was $109,030,000, down from $170,017,000 in the same period in 2024, a decrease of about 35.9%[41]

Core Viewpoint - Analysts forecast that Bally's (BALY) will report a quarterly loss of $0.90 per share, reflecting a year-over-year increase of 72.4%, with anticipated revenues of $612.57 million, a decline of 1% compared to the previous year [1] Financial Projections - The consensus estimate for 'Revenue- Casinos & Resorts' is projected to reach $354.10 million, indicating a year-over-year increase of 3.4% [4] - 'Revenue- International Interactive' is expected to be $209.75 million, showing a decline of 10.6% from the prior-year quarter [4] - 'Revenue- North America Interactive' is estimated at $53.90 million, suggesting a year-over-year increase of 30% [4] Adjusted EBITDAR Estimates - Analysts estimate 'Adjusted EBITDAR- International Interactive' to be $80.25 million, down from $83.53 million in the same quarter last year [5] - The estimate for 'Adjusted EBITDAR- Casinos & Resorts' is $87.80 million, compared to $89.42 million in the previous year [5] Market Performance - Over the past month, Bally's shares have declined by 17%, while the Zacks S&P 500 composite has increased by 13.7% [5] - Bally's holds a Zacks Rank 1 (Strong Buy), indicating a potential for outperformance in the upcoming period [5]

Core Viewpoint - Bally's (BALY) has received an upgrade to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on a company's changing earnings picture, with the Zacks Consensus Estimate tracking EPS estimates from sell-side analysts [1][2]. - Changes in future earnings potential, reflected in earnings estimate revisions, are strongly correlated with near-term stock price movements, particularly influenced by institutional investors [4]. Bally's Earnings Outlook - Bally's is expected to earn -$1.35 per share for the fiscal year ending December 2025, representing a 76.3% change from the previous year's reported number [8]. - Over the past three months, the Zacks Consensus Estimate for Bally's has increased by 62%, indicating a positive trend in earnings estimates [8]. Zacks Rank System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7]. - Only the top 5% of Zacks-covered stocks receive a 'Strong Buy' rating, indicating superior earnings estimate revision features [9][10].

Core Viewpoint - Bally's Corporation has entered into a binding term sheet with The Star Entertainment Group for a strategic capital investment of AUD $300 million (approximately USD $187 million) through subordinated convertible notes and subordinated debt [1][7]. Transaction Overview - The transaction involves a multi-tranche issuance of notes with an aggregate principal value of AUD $300 million [1][7]. - Bally's will invest in two tranches, with the first tranche including convertible notes and subordinated debt [7][14]. - Upon conversion of the notes, Bally's could own approximately 56.7% of The Star's fully diluted share capital [5][7]. Strategic Intent - The transaction aims to revitalize The Star's operations and enhance its long-term potential, leveraging Bally's operational expertise [4][5]. - Bally's intends to work collaboratively with regulators and stakeholders to support The Star's turnaround [4][6]. Financial Details - The first tranche includes: - Tranche 1A: AUD $22.3 million (approximately USD $13.9 million), convertible into shares representing 9.71% of The Star's pre-issue capital [7][14]. - Tranche 1B: Convertible into shares representing 4.85% of The Star's pre-issue capital [7]. - Tranche 1C: Subordinated non-convertible debt of AUD $66.6 million (approximately USD $41.5 million) [14]. - The second tranche consists of AUD $266.6 million (approximately USD $166.2 million), convertible into shares representing 50.3% of The Star's pre-issue capital [14]. Approval Process - The issuance and conversion of certain tranches of notes are subject to shareholder and regulatory approvals [6][8]. - A shareholder meeting is expected to be held by The Star in the coming months [6]. Company Background - The Star Entertainment Group is a leading Australian entertainment and gaming company, operating casino and resort properties in major cities [3][10]. - Bally's Corporation operates 19 casinos across 11 states in the U.S. and has a growing international presence [12][13].

Group 1 - The company is experiencing a significant turnaround, moving from the brink of bankruptcy to acquiring casinos in Black Hawk and adding four QC&E properties [1] - The company specializes in analyzing restaurant stocks across various segments, including QSR, fast casual, casual dining, fine dining, and family dining [1] - Advanced analytical models and specialized valuation techniques are employed to provide detailed insights and actionable strategies for investors [1] Group 2 - The company actively engages in academic and journalistic initiatives, contributing to institutions that promote individual and economic freedom [1] - Previous contributions included discussions on monetary policy, financial education, and financial modeling aimed at making these subjects accessible to a broader audience [1]