Company Overview and Strategy - Twin River Worldwide Holdings (TRWH) has evolved from a single property operator in 2013 to operating 10 casino properties across 5 states[16, 18] - TRWH is pursuing a strategy of growth and diversification through strategic and accretive M&A, including pending acquisitions of Bally's Atlantic City, Eldorado Shreveport, and others[11, 14, 61, 63] - TRWH maintains a prudent fiscal policy with total available liquidity of $490 million as of September 30, 2020[16] COVID-19 Impact and Operational Status - TRWH's casino properties were closed due to COVID-19, with reopening dates ranging from May 21, 2020, to June 17, 2020[15] - Current operations are subject to various restrictions, including occupancy limits (e g, 50% of building capacity) and limitations on slot machine usage (e g, 43% of slot units)[15] Financial Performance and Capital Allocation - The company has returned over $265 million of capital back to shareholders since inception through share repurchases and quarterly dividends[153] - TRWH repurchased 2.5 million shares for cash at $2950 per share in Q3 2019[155] - TRWH's regulatory structure in Rhode Island and Delaware results in higher Adjusted EBITDA to cash conversion, with ~86% in 2019 compared to an industry average of ~80%[151] Q3 2020 Financial Results - Revenue for Q3 2020 was $116624 million, compared to $129309 million in Q3 2019[171] - Net income for Q3 2020 was $6723 million, compared to $6999 million in Q3 2019[171] - Adjusted EBITDA for Q3 2020 was $38005 million, compared to $35598 million in Q3 2019[171]

Acquisition and Partnership Highlights - Bally's will acquire 100% ownership of BetWorks for $125 million, with 50% in cash and 50% in equity[8] - Bally's and Sinclair are entering into a media partnership, integrating Bally's content into Sinclair's broadcast stations and sports networks[8] - Sinclair will receive warrants and options to own a minority stake in Bally's[8] Market Opportunity - Bally's is positioned to capture a significant share of the ~$50 billion U S sports betting and iGaming market opportunity[27] - The U S online sports betting and iGaming market is estimated to reach $2 6 billion in 2020[28] - The U S online sports betting and iGaming market generated $1 0 billion in 2019[28] Sinclair Broadcast Group Overview - Sinclair Broadcast Group has coverage of ~70% of total U S households[32] - Sinclair's RSNs broadcast over 4,600 professional sports games per year[35] - Sinclair owns, operates, and/or provides services to 190 television stations[39] Bally's Strategic Positioning - Bally's has a strategic footprint in states that have generated ~80% of the US sports betting revenues[13] - Bally's database size is ~14 million[14]

Core Viewpoint - The earnings season for casino stocks has been generally positive, with companies like MGM Resorts and Las Vegas Sands performing well, while Bally's Corp has struggled, missing revenue targets for the sixth consecutive quarter but surprising with a profit [1][3]. Company Performance - Bally's reported revenue of $580.4 million, down 5.1% year-over-year, with 78% of this revenue coming from its casino business, which also saw a decline of 4.2% year-over-year [5]. - Despite missing revenue targets, Bally's achieved a profit of 58 cents per share, contrasting with analysts' expectations of a loss of 76 cents per share [3]. - The stock price of Bally's has only decreased by 2% following the earnings report, indicating some resilience in the face of volatility [4]. Market Context - The consumer discretionary sector is under scrutiny as investors assess the state of consumer spending, particularly in entertainment and gambling for 2024 and beyond [2]. - Bally's is expanding its omnichannel business, holding online sports betting licenses in 13 jurisdictions and growing its international presence through its Interactive International division [6]. Growth Strategy - Bally's is optimistic about its growth through acquisition strategy, having completed transactions that could add nearly 50% to its topline in the current year [7]. - The company has not held an earnings call for the third consecutive quarter, which has left analysts to interpret results without additional commentary [13]. Analyst Sentiment - Analysts have maintained a cautious stance on Bally's, with Barclays lowering its price target from $14 to $13 while keeping an Equal Weight rating [14]. - Bally's is not currently favored among top-rated analysts, who suggest alternative stocks for investment [15].

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]

Financial Performance - Total revenue for 2024 was $2,450.5 million, slightly up from $2,449.1 million in 2023, and significantly higher than $2,255.7 million in 2022[261] - The net loss for 2024 increased to $567.8 million compared to a net loss of $187.5 million in 2023 and $425.5 million in 2022[261] - Gaming revenue for 2024 was $2,051.7 million, an increase of $59.6 million from $1,992.0 million in 2023[263] - Non-gaming revenue decreased to $398.8 million in 2024 from $457.0 million in 2023, reflecting a decline of $58.2 million[263] - Total revenue for the year ended December 31, 2024 was $2,450,478, a slight increase of $1,405 or 0.1% compared to $2,449,073 in 2023[264] - Net loss for the year ended December 31, 2024 was $567.8 million, compared to a net loss of $187.5 million in 2023, representing an increase in net loss as a percentage of revenue from 7.7% to 23.2%[273] - Adjusted EBITDA for the year ended December 31, 2024 was $495.6 million, a decrease of $31.7 million or 6.0% from $527.3 million in 2023[274] - Adjusted EBITDAR for the Casinos & Resorts segment decreased by $58.5 million or 13.6% to $370.5 million in 2024 compared to $429.0 million in 2023[275] Operational Highlights - Consolidated Adjusted EBITDA is used as a key performance indicator, reflecting the company's core operating results and ability to service debt[258] - The company launched the Bally Bet Casino app in Rhode Island and expanded the Bally Bet sportsbook app's reach to 13 US states and Ontario[258] - The company disposed of portions of its international interactive business in Asia and transferred ownership of certain intellectual property into a purpose trust[258] - The company's total operating costs and expenses exceeded total revenue, resulting in a total operating cost percentage of 110.5% in 2024[261] - Revenue from the Casinos & Resorts segment increased by 6% to $1.01 billion, driven by the Bally's Chicago temporary casino, which contributed approximately $96.5 million[264] Financing and Investments - The company secured a $940 million financing arrangement for the construction of its flagship casino in downtown Chicago, with construction expected to begin in early 2025[258] - The company completed a sale lease-back transaction for $394.8 million in 2024, resulting in a gain of $209.8 million[306] - The company entered into a strategic construction and financing arrangement with GLP for the Bally's Chicago permanent casino, including up to $940 million in construction financing[308] - The company has committed to invest $100 million in Bally's Twin River by 2043, with $45.1 million remaining as of December 31, 2024[311] - Capital expenditures for 2024 were $199.8 million, down from $311.5 million in 2023, with a focus on the Bally's Chicago permanent facility[310] Cash Flow and Debt - Net cash provided by operating activities decreased to $114.0 million in 2024 from $188.6 million in 2023, primarily due to changes in working capital and increased foreign currency losses[289] - Net cash provided by investing activities was $97.8 million in 2024, a significant improvement from net cash used of $207.8 million in 2023, driven by a $111.7 million decrease in capital expenditures[290] - Net cash used in financing activities increased to $287.8 million in 2024 from net cash provided of $65.8 million in 2023, mainly due to higher long-term debt repayments[291] - As of December 31, 2024, the company has $1.89 billion in variable rate debt and $1.49 billion in unsecured senior notes, with a potential interest expense increase of approximately $18.9 million for a 1% rise in interest rates[328] Future Projects and Commitments - Bally's Chicago project includes approximately 3,400 slot machines, 170 table games, and 500 hotel rooms, with a total investment of at least $1.34 billion for the temporary and permanent casino[312][314] - The temporary casino commenced operations on September 9, 2023, featuring approximately 800 gaming positions and 3 food and beverage venues[312] - The company expects to spend approximately $133.6 million on the construction and development of the permanent casino, which is projected to open in 2026[312] - Annual fixed host community impact fees to the City of Chicago are set at $4.0 million, with additional performance guarantees provided by the company[313] Tax and Regulatory Matters - The effective tax rate for 2024 was (2.8)%, compared to (0.9)% in 2023, largely due to increased impairment charges within foreign entities[271] - The company's valuation allowance for deferred tax assets increased by $79.7 million during the year ended December 31, 2024, totaling $234.6 million[323] Currency and Sponsorship - Foreign currency transaction gains for the year ended December 31, 2024, were $10.3 million, compared to losses of $11.0 million in 2023[331] - The cumulative minimum obligation for interactive technology partnerships is approximately $52.4 million, extending through 2029[316] - The company has sponsorship commitments totaling $125.4 million, with contracts extending through 2036[315] Impairment and Asset Valuation - Impairment charges recorded in 2024 totaled $248.9 million, including $125.9 million related to intangible assets and goodwill in the International Interactive segment[267] - The carrying value of the International Interactive reporting unit was $2.3 billion as of October 1, 2024, with an estimated fair value exceeding this amount by 12%[321]