分组1 - Bally's Corporation reported a quarterly loss of $0.86 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.55, and compared to a loss of $0.43 per share a year ago [1] - The company's revenues for the quarter ended December 2023 were $611.67 million, missing the Zacks Consensus Estimate by 2.39%, and up from $576.69 million year-over-year [1] - Bally's has not surpassed consensus EPS estimates over the last four quarters and has only topped consensus revenue estimates once in the same period [1] 分组2 - Bally's shares have declined approximately 24.3% since the beginning of the year, contrasting with the S&P 500's gain of 4.3% [2] - The company's earnings outlook, including current consensus earnings expectations for upcoming quarters, will be crucial for investors [2] - The current consensus EPS estimate for the next quarter is -$0.24 on revenues of $651.73 million, and for the current fiscal year, it is -$0.50 on revenues of $2.66 billion [4] 分组3 - The Zacks Industry Rank places Hotels and Motels in the top 25% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [4] - Civeo, another company in the same industry, is expected to report quarterly earnings of $0.07 per share, reflecting a year-over-year increase of 107.1% [5] - Civeo's anticipated revenues are $151.12 million, which represents a 6.8% decline from the year-ago quarter [5]

Revenue Performance - Consolidated revenues for Q4 2023 were $611.7 million, a 6.1% increase year-over-year, and full-year revenues increased by 8.6% to $2.45 billion[2]. - Casinos & Resorts revenues rose to $342.3 million in Q4 2023, up 7.2% year-over-year, with full-year revenues growing 11.1%[3]. - International Interactive revenues increased by 2.1% year-over-year to $236.0 million in Q4 2023, with full-year growth of 2.8%[4]. - North America Interactive segment saw revenues of $33.4 million in Q4 2023, a 26.9% increase year-over-year, and full-year revenues grew by 37.8%[4]. - Total revenue for Q4 2023 was $611,670,000, an increase of 6.1% from $576,689,000 in Q4 2022[21]. - Year-end 2023 total revenue reached $2,449,073,000, up 8.6% from $2,255,705,000 in 2022[21]. - The Casinos & Resorts segment generated revenue of $342,317,000 in Q4 2023, a 7.0% increase from $319,178,000 in Q4 2022[21]. - International Interactive revenue for Q4 2023 was $235,980,000, slightly up from $231,218,000 in Q4 2022[21]. - North America Interactive segment reported a revenue increase to $33,373,000 in Q4 2023 from $26,293,000 in Q4 2022, a growth of 27.5%[21]. Financial Metrics - Net loss for Q4 2023 was $263.49 million, compared to a net loss of $487.53 million in Q4 2022, representing a 45.9% improvement[20]. - Adjusted EBITDA for the year ended 2023 was $527.33 million, down from $548.52 million in 2022, reflecting a decrease of 3.9%[20]. - The company reported a net loss margin of (43.1)% for Q4 2023, an improvement from (84.5)% in Q4 2022[20]. - Total operating costs and expenses for Q4 2023 were $909.51 million, a decrease from $1,031.20 million in Q4 2022[18]. - Impairment charges for Q4 2023 were $122.07 million, significantly lower than $463.98 million in Q4 2022[18]. - Adjusted EBITDAR for Q4 2023 was $160,936,000, compared to $0 in Q4 2022[21]. Share Repurchase and Future Expectations - Bally's repurchased 5.8 million shares for $68.6 million in Q4 2023, totaling 7.6 million shares repurchased for $99.1 million for the full year[5]. - For 2024, Bally's expects revenues between $2.5 billion and $2.7 billion, with Adjusted EBITDAR projected between $655 million and $695 million[6]. - Bally's anticipates an Adjusted EBITDAR loss of approximately $30 million for North America Interactive in 2024, down from a loss of $55.7 million in 2023[4]. Operational Developments - Bally's plans to close Tropicana Las Vegas on April 2, 2024, to prepare for future developments related to Major League Baseball[4]. - The Chicago Temporary Casino achieved a record $10 million GGR in January 2024 after commencing 24/7 operations[2]. - Bally's plans to expand its casino operations to 17 casinos across 11 states upon completion of new facilities in Chicago, IL, and State College, PA[14]. - The company has access to Online Sports Betting licenses in 18 states, enhancing its market presence[14]. - Bally's Interactive International, formerly Gamesys Group, continues to be a key player in the online gaming sector, contributing to the company's growth strategy[14]. Cash and Debt Position - Cash and cash equivalents decreased to $163,194,000 as of December 31, 2023, down from $212,515,000 in 2022[22]. - Long-term debt, net of discounts and deferred financing fees, was $3,643,185,000 at year-end 2023, compared to $3,469,105,000 in 2022[22]. - Capital expenditures for the year 2023 totaled $311,483,000, an increase from $212,256,000 in 2022[23]. - The company made cash payments of $29,935,000 associated with triple net operating leases in Q4 2023, up from $17,446,000 in Q4 2022[23].

Group 1 - Bally's Corporation will release its financial results for Q4 2023 after market close on February 21, 2024 [1] - A conference call to discuss the results will be held on the same day at 4:30 p.m. EDT [1] - Access to the conference call can be obtained by dialing (800) 343-4136 and referencing conference ID BALYQ423 [1] Group 2 - Bally's Corporation is a global casino-entertainment company with an omni-channel presence in Online Sports Betting and iGaming [2] - The company currently owns and manages 16 casinos across 10 states and has access to OSB licenses in 18 states [2] - Bally's operates approximately 15,000 slot machines, 600 table games, and 5,300 hotel rooms, employing around 10,500 people [2] - Upon completion of new casino facilities, Bally's will manage 17 casinos across 11 states [2]

Financial Performance - Total revenue for Q3 2023 was $632.5 million, an increase of 9.5% from $578.2 million in Q3 2022[246] - Income from operations decreased to $37.2 million in Q3 2023 from $53.7 million in Q3 2022[246] - Net loss for Q3 2023 was $61.8 million compared to a net income of $0.6 million in Q3 2022[246] - For the first nine months of 2023, total revenue reached $1,837.4 million, up from $1,679.0 million in the same period of 2022[246] - Total revenue for Q3 2023 increased by $54.2 million to $632.5 million, a 9.4% increase compared to Q3 2022[253] - Total revenue for the nine months ended September 30, 2023, rose by $158.4 million to $1.84 billion, a 9.4% increase compared to the same period last year[253] - Gaming revenue for Q3 2023 was $508.9 million, up $43.2 million or 9.3% from Q3 2022[253] - Non-gaming revenue for Q3 2023 was $123.6 million, an increase of $11.1 million or 9.8% compared to Q3 2022[249] - Net income for the nine months ended September 30, 2023, was $90.9 million, an increase of $28.9 million, or 46.6%, from $62.0 million in the same period last year[261] Operating Costs and Expenses - Gaming expenses for Q3 2023 increased by $31.9 million to $229.1 million, while for the nine months, they rose by $45.3 million to $665.7 million[254] - General and administrative expenses for Q3 2023 increased by $30.5 million to $230.6 million, and for the nine months, they rose by $152.3 million to $732.1 million[256] - Total operating costs and expenses for Q3 2023 were 94.1% of total revenue, compared to 90.7% in Q3 2022[250] - Total other expense increased by $3.2 million to $55.1 million for Q3 2023 and by $77.5 million to $176.0 million for the nine months ended September 30, 2023, primarily due to increased interest expense[259] Adjusted Performance Metrics - Consolidated Adjusted EBITDA for Q3 2023 was $141.6 million, a decrease of $9.3 million, or 6.2%, from $151.0 million in Q3 2022[261] - Adjusted EBITDAR for the Casinos & Resorts segment decreased by $0.6 million to $118.2 million for Q3 2023, while it increased by $30.9 million to $334.3 million for the nine months ended September 30, 2023[262] - Adjusted EBITDAR for the International Interactive segment increased by $9.2 million to $85.5 million for Q3 2023 and by $18.1 million to $250.4 million for the nine months ended September 30, 2023[262] Capital Expenditures and Investments - Capital expenditures for the nine months ended September 30, 2023, were $266.2 million, compared to $167.4 million in the same period last year[284] - The company is committed to invest approximately $100 million over five years to refurbish and upgrade Bally's Atlantic City facilities, with spending in 2023 estimated at $20 million[286] - The company is committed to investing $100 million in Rhode Island over the extended term of its master contracts, which includes expansions and new amenities[239] Debt and Financing Activities - The company has a senior secured term loan facility of $1.945 billion maturing in 2028 and a revolving credit facility of $620.0 million maturing in 2026[276] - As of September 30, 2023, the company had $2.03 billion of variable rate debt outstanding under its Term Loan and Revolving Credit Facilities[296] - During the nine months ended September 30, 2023, the company repurchased 1,774,845 common shares for an aggregate price of $30.5 million under its capital return program[273] - The company repurchased and retired $15.0 million of Senior Notes due 2031 at a weighted average price of 70.80% of the principal, recording a gain on extinguishment of debt of $4.0 million[274] Market and Operational Strategy - The company operates 16 land-based casinos across 10 states, with approximately 15,400 slot machines and 600 table games[230] - Bally's has a strategic focus on expanding its iGaming business, particularly in markets that are expected to regulate iGaming[231] - A new law in Rhode Island allows Bally's to be the exclusive provider of iGaming services for 20 years, starting March 1, 2024[232] - The company experienced incremental revenue from recent acquisitions, including Tropicana Las Vegas and Bally's Chicago, which commenced operations on September 9, 2023[253] - The company commenced operations at its Bally's Chicago temporary casino on September 9, 2023, which includes approximately 800 gaming positions[288] Currency and Foreign Transactions - Foreign currency transaction gains for Q3 2023 were $8.5 million, compared to $0.3 million in Q3 2022, indicating a significant increase[298] - For the nine months ended September 30, 2023, foreign currency transaction gains were $2.5 million, up from $2.2 million in the same period of 2022[298] - The majority of revenues are derived from the UK market, conducted in British Pound Sterling (GBP), making the company susceptible to GBP to US Dollar exchange rate fluctuations[298] - The company employs operational hedges, forward currency exchange rate contracts, and derivative financial instruments to mitigate currency exchange rate risks[298]

Financial Data and Key Metrics Changes - Consolidated revenues increased by 9.4% year-over-year, reaching approximately $633 million [5][27] - Consolidated adjusted EBITDA rose by 6.4% year-over-year, totaling $173 million [5][27] - Adjusted EBITDA margin for Casino & Resorts was 33%, while for International Interactive it was 35% [27][31] Business Line Data and Key Metrics Changes - Casino & Resorts revenues increased by 9.3% year-over-year, totaling $359 million, with adjusted EBITDA of $180 million [9][28] - Bally's International Interactive generated revenues of $244 million, a 7% increase year-over-year, with adjusted EBITDA of $85 million, reflecting a 12% increase [14][28] - North America Interactive reported revenues of $30 million but had a negative adjusted EBITDA of $18 million [30] Market Data and Key Metrics Changes - The U.K. market for Bally's International Interactive saw a revenue increase of 13.1% year-over-year [14][29] - In North America, the company is focused on expanding its iGaming footprint, with positive early results in Pennsylvania since its June 2023 launch [15][30] Company Strategy and Development Direction - The company aims to grow market share while maintaining cost control, with a focus on executing growth initiatives across all business segments [5][26] - Significant investments in the Chicago Temporary Casino and Kansas City property are expected to contribute to growth and profitability in 2024 [6][13] - The company is preparing for the launch of iGaming in Rhode Island in March 2024, which is anticipated to be a transformative development [15][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate competitive pressures and maintain margins, particularly in the Casino & Resorts segment [10][18] - The company is closely monitoring consumer spending patterns and general economic conditions, ready to act if necessary to protect profitability [32] - Despite some anticipated costs in the first half of 2024, operations are expected to improve financially as the North America Interactive business scales [19][20] Other Important Information - The company has $178 million in cash and $3.3 billion in net debt, with a capital expenditure guidance of $160 million for 2023 [34][35] - The Chicago permanent facility is expected to commence construction in the second half of 2024, with an anticipated opening in September 2026 [22][23] Q&A Session Summary Question: Can you walk us through the ramp expected in Chicago for the rest of this year and next year? - Management indicated that the Chicago Temporary Casino is showing week-over-week growth and expects to achieve an annual run rate of about $50 million plus in EBITDAR [36][38] Question: Can you help us think of a scenario where revenues would come in at the low end of the guidance? - Management noted that FX exposure, competitive pressures, and the situation with Tropicana could impact revenue, but they remain confident in minimizing the impact [40][42] Question: Is there availability to buy back some stock given the market dislocation? - Management stated they are always assessing the best use of free cash and are aware of the attractive pricing of their equity [43][44] Question: Can you provide color on the funding of the hard costs for the Chicago project? - Management confirmed they have a $500 million facility with Blue Owl and are focused on construction financing for the remaining costs [46][47] Question: How do you think about your OpEx structure in relation to competitive pressures? - Management emphasized careful management of fixed costs and a focus on variable costs to meet demand, maintaining margins despite competitive pressures [48][49] Question: Is there a strategy shift regarding International Interactive investments? - Management confirmed they will spend where ROI stacks up, maintaining a focus on growing share while managing costs effectively [70][71]

Forward-Looking Statements This presentation includes forward-looking statements within the meaning of the securities laws. Forward-looking statements are statements as to matters that are not historical facts and include statements about Bally’s Corporation’s (“Bally’s”) plans, objectives, expectations and intentions. Forward-looking statements are not guarantees and are subject to risks and uncertainties. Forward-looking statements are based on Bally’s current expectations and assumptions. Although Bally’ ...

Financial Data and Key Metrics Changes - The company reported record second quarter revenues of $606 million, an increase of 10% year-on-year, with adjusted EBITDA of $161 million, reflecting a margin of 26.6% [20][25] - The adjusted EBITDA after accounting for rent expense was $130 million, with a margin of 21.5% [20] - The Casinos & Resorts segment generated revenues of $333 million, up 11% year-on-year, and adjusted EBITDA of $111 million, up 12% year-on-year [21][15] Business Line Data and Key Metrics Changes - The Casinos & Resorts segment reported an EBITDA margin of 33.3%, while the core portfolio, excluding lower-margin properties, had a margin of 39.4% [21] - International Interactive generated revenues of $248 million with an adjusted EBITDA of $84 million at a margin of 33.9%, driven by strong performance in the U.K., which grew 12% [21][16] - North America Interactive reported revenues of $25 million but had a negative adjusted EBITDA of $18 million, with a focus on growing iGaming in New Jersey and Pennsylvania [22][23] Market Data and Key Metrics Changes - The U.K. market continues to be a strong driver for the company's international interactive business, growing 12% in the second quarter [16][21] - The company is optimistic about the iGaming market in Pennsylvania, which launched in early June, and anticipates launching in Rhode Island in March 2024 [13][22] - The company is also focusing on expanding its presence in Ontario and leveraging its brand for online sports betting internationally [14][17] Company Strategy and Development Direction - The company is focused on integrating its three business segments and enhancing operational performance while managing its development pipeline [19][8] - Significant projects include the temporary casino at Medinah Temple in Chicago, expected to generate $50 million to $60 million of EBITDA in 2024, and the development of a permanent facility anticipated to open in 2026 [10][11] - The company aims to become a premier, full-service, vertically integrated Casinos & Resorts iGaming and online sports betting company [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining guidance for 2023, expecting revenues between $2.5 billion to $2.6 billion and adjusted EBITDA of $665 million to $700 million [25][26] - The company is closely monitoring consumer spending trends and is prepared to adjust strategies as necessary [24] - Management highlighted the positive impact of the smoking ban repeal in Shreveport, Louisiana, as a potential driver for performance [11] Other Important Information - The company has over $184 million in cash on its balance sheet and $3.2 billion in net debt [27] - A share repurchase program was executed, with approximately 748,500 shares repurchased for $10.7 million [26] - The company is exploring financing options for the Chicago project, with construction expected to begin in the second quarter of 2024 [72] Q&A Session Summary Question: Transition of CFO and adjustments - The new CFO, Marcus Glover, expressed excitement about joining a strong team and the positive performance of the Casinos & Resorts and International Interactive segments [29][30] Question: Capital allocation and deleveraging path - The focus is on the development pipeline, particularly the Chicago project, with confidence in managing Tropicana's future [31][32] Question: iGaming potential in Rhode Island - Management believes iGaming will drive higher customer spend without cannibalizing land-based operations [34][35] Question: Market share growth in New Jersey - Growth will be driven by utilizing the retail casino database and enhancing product offerings, particularly with the addition of sports betting [36][37] Question: Performance of Atlantic City property - The property has shown profitability and record revenue since its relaunch, with expectations for continued improvement [39] Question: North America Interactive expenses and profitability - The focus remains on iGaming opportunities, with expectations for reduced losses and improved profitability in the future [40][41] Question: Chicago project cash flows and financing - The temporary casino is expected to generate $50 million to $60 million annually, with cash flow estimates of $3.5 million to $5 million per month post-opening [46][47] Question: International Interactive growth sustainability - Management is confident in continued growth in the U.K. market, driven by market consolidation and customer acquisition [50][51] Question: Updates on asset integration and cost containment - The company is balancing shared services and property-level operations to maintain performance while optimizing costs [58][59] Question: Digital product strengths - The focus is on utilizing data to enhance product offerings and customer engagement, with a belief that product quality will drive business success [60][61]

Financial Performance - Total revenue for Q2 2023 was $606.2 million, an increase of 9.7% from $552.5 million in Q2 2022[217] - Income from operations for Q2 2023 was $6.0 million, down from $85.3 million in Q2 2022[217] - Net loss for Q2 2023 was $25.7 million, compared to a net income of $59.5 million in Q2 2022[217] - For the first six months of 2023, total revenue reached $1,204.9 million, up from $1,100.8 million in the same period of 2022[217] - Total revenue for Q2 2023 increased by $53.7 million to $606.2 million, up 9.7% from $552.5 million in Q2 2022[225] - Total revenue for the six months ended June 30, 2023 rose by $104.2 million to $1.20 billion, a 9.5% increase from $1.10 billion in the same period last year[225] - Gaming revenue for Q2 2023 was $493.3 million, an increase of $38.2 million or 8.4% compared to $455.1 million in Q2 2022[225] - Non-gaming revenue for Q2 2023 was $112.9 million, up $15.5 million or 15.9% from $97.4 million in Q2 2022[221] - Net income for the first half of 2023 was $152.7 million, an increase of $91.3 million, or 148.7%, from $61.4 million in the same period last year[235] - For the six months ended June 30, 2023, the total net income was $152.7 million, compared to a net income of $61.4 million for the same period in 2022, representing a year-over-year increase of approximately 148%[243] Expenses and Costs - General and administrative expenses for Q2 2023 increased by $57.2 million to $250.0 million, a 29.6% rise from $192.7 million in Q2 2022[228] - Gaming expenses for Q2 2023 rose by $14.9 million to $218.9 million, an increase of 7.3% from $204.1 million in Q2 2022[226] - Non-gaming expenses for Q2 2023 increased by $5.9 million to $52.3 million, a rise of 12.7% from $46.4 million in Q2 2022[227] - Total operating costs and expenses for Q2 2023 were 99.0% of total revenue, compared to 84.6% in Q2 2022[219] - Total other expense increased by $39.9 million to $60.3 million for Q2 2023, primarily due to increased interest expense[232] - The company’s total interest expense for the six months ended June 30, 2023, was $130.4 million, compared to $91.5 million for the same period in 2022, reflecting an increase of approximately 42%[243] Adjusted EBITDA - Adjusted EBITDA is a key performance indicator for the company, reflecting its core operating results[212] - Adjusted EBITDA for Q2 2023 was $130.0 million, a decrease of $7.0 million, or 5.1%, from $137.0 million in Q2 2022[235] - Adjusted EBITDA for the Casinos & Resorts segment decreased by $8.3 million to $79.7 million in Q2 2023 compared to the same period last year[236] - Adjusted EBITDA for the International Interactive segment increased by $2.0 million, or 2.4%, to $84.6 million in Q2 2023 compared to Q2 2022[237] - Adjusted EBITDA loss for the North America Interactive segment improved to $(17.7) million in Q2 2023 from $(20.9) million in Q2 2022[238] - Adjusted EBITDA for the six months ended June 30, 2023, was $256.4 million, compared to $251.7 million for the same period in 2022, indicating a slight increase of about 1%[244] Cash Flow and Investments - Net cash provided by operating activities decreased to $64.1 million for the six months ended June 30, 2023, down from $164.5 million in the same period of 2022, reflecting a decline of approximately 61%[250] - Net cash provided by investing activities increased significantly to $224.0 million for the six months ended June 30, 2023, compared to a cash outflow of $55.8 million in the prior year, marking a year-over-year improvement of $279.8 million[251] - The company repurchased 1,774,845 common shares for a total cost of $30.5 million under its capital return program during the six months ended June 30, 2023[252] - As of June 30, 2023, the company had $372.8 million in cash and cash equivalents, an increase from $231.4 million at the end of the same period in 2022, representing a growth of approximately 61%[249] - The company recorded a gain on extinguishment of debt of $4.0 million after repurchasing and retiring $15.0 million of Senior Notes due 2031[253] - The company has $164.1 million available for use under its capital return program as of June 30, 2023, subject to regulatory and debt agreement limitations[252] Economic and Operational Outlook - The company faces risks from global economic challenges, including inflation and supply-chain disruptions, which may impact consumer spending[211] - The company operates 15 land-based casinos and one horse racetrack across ten states in the US, with approximately 14,700 slot machines and 500 table games[200] - The company is set to become the exclusive provider of iGaming in Rhode Island for 20 years starting March 1, 2024[202] - The company aims to enhance guest experiences at its casinos and resorts by providing popular games and high-quality amenities[201] - The company has committed to invest $100 million in Rhode Island over the extended term of its master contracts, which includes expansions and new amenities[210] Capital Expenditures and Future Investments - Capital expenditures for the first half of 2023 were $119.5 million, slightly up from $116.1 million in the same period last year[264] - The Company is committed to invest approximately $100 million in Bally's Twin River over the term of the master contract, with $60 million already spent on expansions[265] - Bally's Atlantic City refurbishment is estimated to cost around $100 million over five years, with $20 million planned for 2023[266] - The total estimated cost for the Category 4 licensed casino in Centre County, Pennsylvania is approximately $120 million[267] - The Company expects to spend at least $1.34 billion on the design, construction, and equipping of the temporary and permanent casino in Chicago[270] Debt and Lease Obligations - As of June 30, 2023, the Company had a minimum rent payable under operating leases of $2.36 billion[259] - The Master Lease with GLPI requires combined minimum annual payments of $100.5 million, with an annual escalation of at least 1%[260] - The acquisition of Bally's Tiverton and Hard Rock Biloxi properties for $625.4 million increased the Master Lease payments by $48.5 million[261] - As of June 30, 2023, the Company had $1.93 billion of variable rate debt outstanding, with a potential interest expense increase of $19.3 million from a 1% rate hike[276] Foreign Currency Impact - Foreign currency transaction losses for the six months ended June 30, 2023, were $5.9 million, compared to gains of $2.0 million in the same period of 2022[278]

Financial Data and Key Metrics Changes - Bally's Corporation reported revenues of $598.7 million, an increase of 9.2% year-over-year, and adjusted EBITDA of $126.4 million, up 10.2% year-over-year [21][27] - Adjusted EBITDA margin improved to 21.1% from 20.9% in Q1 2022, while adjusted EBITDAR margin was 26.3% [21][27] - The company anticipates EBITDAR guidance for 2023 to be between $665 million and $700 million, reflecting confidence in business strength [27][28] Business Line Data and Key Metrics Changes - The Casinos & Resorts segment generated record revenues of $329 million, up 9.4% year-over-year, with EBITDA of $105 million [15][21] - International Interactive segment achieved $80.2 million in EBITDA with a margin of 32.6%, and the UK business grew 9.6% year-over-year [23][17] - North America Interactive reported a negative EBITDAR of $10.5 million, but New Jersey is contributing over $1 million in profit monthly [24][19] Market Data and Key Metrics Changes - The UK market showed strong growth, with Bally's International Interactive segment up 9.6% year-over-year on a constant currency basis [23][17] - In Asia, positive trends were noted despite difficult comparisons, with expectations for easier comparisons moving forward [18] - Bally's aims to launch its online sports betting (OSB) in seven states and expand globally, including potential markets in the UK and Europe [13][20] Company Strategy and Development Direction - Bally's is focusing on becoming a premier, full-service vertically integrated casino and resort company, enhancing its online sports betting and iGaming capabilities [14][20] - The company has partnered with Kambi and White Hat Gaming to improve its North American sports betting platform, transitioning to a variable cost model [11][25] - Bally's plans to leverage its omni-channel data capabilities to enhance customer engagement and drive growth across its brands [12][70] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the integration of Bally's internal systems and the performance of its operating businesses [9][10] - The recent UK government white paper on gambling regulation is expected to have a short-term impact but is seen as beneficial for larger operators in the long run [10][37] - Management remains vigilant regarding consumer spending trends but has not observed significant negative impacts on business performance [27] Other Important Information - Bally's has undergone significant management changes, with Marcus Glover appointed as the new CFO [6][7] - The company repurchased 1 million common shares for $19.8 million and $15 million of bonds for $10.6 million during the quarter [29][29] - Bally's has a strong liquidity position with over $344 million in cash and $3 billion in net debt [29] Q&A Session Summary Question: Management transition and appeal of the CFO role - Marcus Glover expressed enthusiasm for joining Bally's, highlighting the company's entrepreneurial spirit and the opportunity to build on existing foundations [34] - Robeson Reeves emphasized Glover's operational experience and financial acumen as key to driving growth [35] Question: Financial implications of the UK white paper - Robeson Reeves indicated that the short-term impact would be minimal, with larger operators likely to gain market share as smaller competitors exit [37] Question: Guidance and business trends - Robert Lavan noted that the company is taking a conservative approach to guidance upgrades early in the year, reflecting positive trends [39] Question: North America Interactive restructuring and future losses - Lavan mentioned that the company expects to close the gap in losses as iCasino grows and the new partnerships with Kambi and White Hat are implemented [41][52] Question: Tropicana's strategy and asset value - Lavan discussed the potential for development options at Tropicana, emphasizing a disciplined long-term view [43] Question: Capital allocation and share repurchases - Lavan stated that the company will continue to evaluate capital allocation, balancing share buybacks, debt repurchases, and investments in Chicago [45] Question: North America Interactive labor efficiencies - Robeson Reeves explained that the transition to a variable cost model with Kambi and White Hat would enhance profitability and operational efficiency [48][70]

Financial Performance - Total revenue for Q1 2023 was $598.7 million, an increase of 9.2% from $548.3 million in Q1 2022[219] - Income from operations rose significantly to $376.7 million in Q1 2023, compared to $22.5 million in Q1 2022[219] - Net income for Q1 2023 was $178.3 million, a substantial increase from $1.9 million in Q1 2022, reflecting a growth of 9,284%[219] - Total revenue for the three months ended March 31, 2023, increased by 9.2% to $598.7 million, compared to $548.3 million in the same period last year, driven by growth in gaming, hotel, and food and beverage segments[226] - Total gaming revenue rose by $23.2 million, or 5.0%, to $486.9 million, while total non-gaming revenue increased by $27.3 million to $111.8 million[226] - Net income for the three months ended March 31, 2023, was $178.3 million, or $3.24 per diluted share, compared to $1.9 million, or $0.03 per diluted share, for the same period in 2022[234] - Adjusted EBITDA for the three months ended March 31, 2023, was $126.4 million, an increase of $11.7 million, or 10.2%, from $114.7 million in the same period last year[234] Expenses and Costs - Gaming and non-gaming expenses as a percentage of total revenue decreased to 45.1% in Q1 2023 from 47.4% in Q1 2022[221] - General and administrative expenses increased to 42.0% of total revenue in Q1 2023, up from 34.1% in Q1 2022[221] - General and administrative expenses increased by $64.6 million, or 34.5%, to $251.6 million, primarily due to higher operating lease expenses and costs associated with recent acquisitions[228] - The company recorded a decrease in gaming expenses by $1.6 million to $217.7 million, attributed to lower marketing costs for iGaming products[227] - Total other expense increased by $34.4 million to $60.7 million, primarily due to higher interest expenses and changes in naming rights liabilities[232] Strategic Initiatives - The company is focusing on expanding its interactive gaming segment, which is seen as a significant strategic opportunity for future growth[204] - Bally's has made progress in integrating acquired assets and deploying capital for strategic growth projects, positioning itself as a vertically integrated iGaming company[205] - The company plans to invest $100 million in Rhode Island over the extended term of its master contracts, which includes expansions and new amenities[211] - Incremental revenue from recent acquisitions, including Tropicana Las Vegas and Casino Secret, contributed $35.1 million during the quarter[226] - The company has committed to invest $100 million in Bally's Twin River over the term of its master contract, with significant progress on a 14,000 square foot spa and a 40,000 square foot casino expansion[257] - Bally's Atlantic City is undergoing a $100 million refurbishment and upgrade, with approximately $20 million estimated spending in 2023[258] - The company signed a framework agreement for a Category 4 licensed casino in Centre County, Pennsylvania, with an estimated total project cost of approximately $120 million[259] - Bally's Chicago will feature approximately 3,400 slot machines, 170 table games, and 500 hotel rooms, with an estimated cost of $70 million for the temporary casino development expected to open by late summer 2023[260] Cash Flow and Financing - For the three months ended March 31, 2023, net cash used in operating activities was $16.1 million, a decrease from net cash provided of $20.8 million in the same period last year[243] - Net cash provided by investing activities increased to $319.6 million, compared to net cash used of $72.0 million for the same period in 2022, driven by $411.0 million from sale-leaseback transactions[244] - Net cash used in financing activities was $173.6 million, a significant change from net cash provided of $4.4 million in the prior year, primarily due to increased long-term debt repayments[245] - Capital expenditures for the three months ended March 31, 2023, were $43.7 million, down from $54.5 million in the same period last year, as the company focuses on generating cash flows for long-term growth[256] - The company repurchased 1,026,343 common shares for $19.8 million under its capital return program, with $174.8 million remaining available for future repurchases[246] Debt and Interest Rates - As of March 31, 2023, the company had $1.92 billion in variable rate debt and a hypothetical 1% increase in interest rates would raise interest expenses by approximately $19.2 million over the next 12 months[266] - The effective tax rate for the first quarter of 2023 was 43.6%, compared to 151.2% in the prior year, reflecting changes in valuation allowance and tax liabilities[233] Economic Environment - The company faces macroeconomic challenges, including rising inflation and interest rates, which could impact discretionary consumer spending[212] - The company does not believe that inflation had a material effect on its business during the three months ended March 31, 2023[265] - Foreign currency transaction losses for the three months ended March 31, 2023, were $4.3 million, compared to a gain of $0.2 million for the same period in 2022[268] - The company has not historically used operational hedges or forward currency exchange contracts to manage currency exchange rate fluctuations[268] Other Commitments - The company has sponsorship commitments totaling $107.5 million, with contracts extending through June 2036[264] - The company is responsible for various gaming license fees, including a $250,000 land-based gaming fee and a $15 million reconciliation fee upon issuance of a Temporary Operating Permit[263] - The company made a one-time payment of $40 million to the City of Chicago and will pay annual fixed host community impact fees of $4 million starting from operations commencement[261] - Bally's Chicago Operating Company will pay $150 million to Chicago Tribune Company for the lease termination, with $140 million secured by standby letters of credit[262] Construction and Development - The permanent casino construction is estimated to be completed by the end of 2026[260] - The company recorded a gain on extinguishment of debt of $4.0 million from repurchasing $15.0 million of Senior Notes due 2031[247] - As of March 31, 2023, cash and cash equivalents totaled $396.9 million, an increase from $223.7 million at the end of the previous year[242]