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]

Core Insights - Bally's Corporation has appointed Mira Mircheva as Executive Vice President and Chief Financial Officer, pending regulatory approvals [1] - Mira Mircheva has over 25 years of experience in finance, previously serving as CFO of The Queen Casino & Entertainment and holding positions at Standard General and Goldman Sachs [2] - Bally's CEO Robeson Reeves and Chairman Soo Kim expressed confidence in Mircheva's ability to enhance the company's financial position and operational efficiency [3] Company Overview - Bally's Corporation is a global casino-entertainment company operating 19 casinos across 11 states, a golf course in New York, and a horse racetrack in Colorado [4] - The company holds OSB licenses in 13 jurisdictions in North America and has expanded its international reach with the acquisition of Aspers Casino in the UK [4] - Bally's operates a sports betting platform (Bally Bet), an iCasino platform (Bally Casino), and has a significant stake in Intralot S.A., a global lottery management business [4] Operational Details - Bally's employs approximately 11,500 staff and operates around 17,700 slot machines, 630 table games, and 3,950 hotel rooms [5] - The company has rights to developable land in Las Vegas at the site of the former Tropicana Las Vegas [5]

Revenue Performance - Company-wide revenue for Q4 2024 was $580.4 million, a decrease of 5.1% year-over-year[6]. - Casinos & Resorts revenue was $324.4 million, down 5.2% year-over-year, while International Interactive revenue declined 9.1% to $214.5 million[6]. - Total revenue for Q4 2024 was $580,365,000, a decrease of 5.1% from $611,670,000 in Q4 2023[20]. - International Interactive revenue for Q4 2024 was $214,477,000, down 9.1% from $235,980,000 in Q4 2023; adjusted revenue increased to $193,495,000 from $171,393,000[27]. - The Queen's four properties generated Q4 2024 revenue of $57.6 million and full-year revenue of $225.2 million[6]. Adjusted EBITDAR - Adjusted EBITDAR for the Casinos & Resorts segment declined 14.6% year-over-year to $80.9 million due to higher costs and lower revenue flow-through[7]. - Adjusted EBITDAR for Casinos & Resorts in Q4 2024 was $80,857,000, a decline of 14.6% compared to $94,656,000 in Q4 2023[20]. - U.K. online revenue grew 11.3%, contributing to a total International Interactive Adjusted EBITDAR of $81.6 million, down 12.4% year-over-year[8]. - The North America Interactive segment reported an Adjusted EBITDAR loss of $12.3 million, impacted by the transition to a new unified platform[9]. North America Interactive Segment - North America Interactive revenue increased by 24.4% year-over-year to $41.5 million[6]. - North America Interactive segment reported a loss of $12,345,000 in Q4 2024, compared to a loss of $9,844,000 in Q4 2023[20]. Cost Management and Operational Efficiency - The company aims to optimize its cost structure and enhance operational efficiency to create long-term value following the acquisition of Queen's assets[9]. - The company incurred $30.3 million in rent expense for Q4 2024 related to triple net leases[21]. Capital Expenditures and Debt - Capital expenditures for Q4 2024 were $44,070,000, slightly down from $45,252,000 in Q4 2023[25]. - Long-term debt, including current portion, decreased to $3,318,773,000 in 2024 from $3,662,635,000 in 2023[24]. - Cash and cash equivalents increased to $171,233,000 in 2024 from $163,194,000 in 2023[24]. Casino Developments - The construction of the permanent Chicago casino has commenced, with the demolition of the Tropicana site now complete[6]. - Bally's has received final approval for its permanent Chicago Casino master plan and is progressing on the integrated resort master plan for the Tropicana site[9]. Gaming Licenses and Currency Swaps - The company recognized $851,000 for the acquisition of gaming licenses in Q4 2024, significantly lower than $135,335,000 in Q4 2023[25]. - The company has entered into currency swaps to convert $500 million of its Term Loan Facility to a fixed-rate Euro-denominated instrument[25].

Group 1: Campaign Overview - Greater Good Charities and Bally Bet collaborated to raise 1 million meals for shelter pets across the country during the football season [1][2] - The campaign engaged football fans and pet lovers through social media, resulting in 50 to 100 pet meals donated per interaction [2] Group 2: Impact and Contributions - The campaign allowed animal shelters to redirect resources towards critical needs, such as medical care for pets [2] - A special partnership with the Cleveland Browns contributed 1,000 pet meals for every point scored during games [2] Group 3: Organizational Background - Greater Good Charities is a 501(c)(3) nonprofit that has invested over $750 million in impact since 2007, helping communities in 121 countries [3] - Bally's Corporation operates 19 casinos across 11 states and has a growing omni-channel presence, including a sports betting platform [4]