PROVIDENCE, R.I.--(BUSINESS WIRE)--The Board of Directors of Bally’s Corporation (NYSE: BALY) today announced that it has formed a special committee of independent and disinterested directors that is authorized, among other things, to evaluate the preliminary, non-binding proposal, dated March 11, 2024, by Standard General to acquire all of the outstanding shares of Bally’s that it does not already own for $15.00 in cash per share, as well as any potential strategic alternatives to the proposal. A copy of ...

Key TakeawaysBally's Corp. shares took off Monday, soaring almost 30%, after hedge fund Standard General made a new bid to take over the casino operator.Standard General offered $15 per share for Bally's, a 41% premium from Friday's closing price and above Monday's $13.64 close.The hedge fund had made a $38-a-share bid for the company in January 2022, which was rejected. Bally’s Corp. (BALY) shares skyrocketed almost 30% after hedge fund Standard General offered to buy the rest of the shares of the casino o ...

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 - Bally's Corporation reported a 6% year-over-year revenue growth in Q4 2023, reaching $612 million, with a full-year revenue increase of 9% [5][21] - Adjusted EBITDA for the full year 2023 grew by 9%, with Q4 adjusted EBITDA reflecting strong performance across all segments [5][21] - The Casino & Resorts segment reported a 7% revenue increase in Q4 and an 11% increase for the full year, with adjusted EBITDA up 8% [14][21] Business Line Data and Key Metrics Changes - The Casinos & Resorts segment achieved revenues of $342.3 million in Q4, a 7% increase year-over-year, and $94.7 million in adjusted EBITDA [20] - International Interactive revenues increased by 2.1% year-over-year to $236 million in Q4, with record adjusted EBITDA of $93.2 million, a 4.3% increase [21] - North America Interactive generated $33.4 million in revenue, a 27% year-over-year increase, but reported an adjusted EBITDA loss of $9.8 million [22] Market Data and Key Metrics Changes - The UK operations within International Interactive saw a 10% revenue increase year-over-year, while Asia stabilized with expectations for consistent performance in 2024 [21][37] - The North American Interactive segment is expected to see significant adjusted EBITDA losses in 2024, estimated at $30 million, as the company continues to invest in market expansion [22][24] Company Strategy and Development Direction - Bally's Corporation is focused on a diverse operating model across Casinos & Resorts, International Interactive, and North America Interactive, viewing this diversity as a strength [6][10] - The company has a well-structured development pipeline, including the Chicago permanent casino project expected to begin construction in late 2024 and complete by late 2026 [8][10] - Bally's aims to enhance its market presence through strategic partnerships and technology improvements, particularly in the North American Interactive segment [12][45] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic challenges and highlighted a strong operational performance in 2023 [6][10] - The company anticipates continued growth in 2024, driven by the ramp-up of the Chicago temporary facility and the launch of iGaming in Rhode Island [24][25] - Management acknowledged the impact of severe weather on operations in January but noted a return to normal trends in February [32][19] Other Important Information - Bally's expects 2024 revenue in the range of $2.5 to $2.7 billion and adjusted EBITDA between $655 million and $695 million [24] - The company ended Q4 with $163.2 million in cash and $3.56 billion in net debt, reflecting ongoing investments and share repurchases [23] Q&A Session Summary Question: Insights on Chicago's player demographics and database transfer to the permanent facility - Management reported a growing database of 65,000 players, primarily younger demographics, with plans to transfer this database to the permanent facility [28] Question: Updates on Tropicana and ACE Stadium plans - Management confirmed the closure of Tropicana on April 2nd to prepare the site for ACE Stadium construction, with ongoing evaluations for development options [30] Question: Weather impact on guidance for Casinos & Resorts - Management estimated a 20% impact from weather in January but noted a bounce back in February, expecting to return to normal growth levels [32] Question: U.K. regulatory changes and their impact - Management expressed confidence in adapting to regulatory changes in the U.K., viewing them as opportunities to capture market share from smaller operators [35] Question: Chicago Temporary Facility EBITDA target - Management confirmed the target of $50 million EBITDA for the Chicago Temporary Facility remains intact [38] Question: Capital allocation and leverage strategy - Management emphasized a balanced approach to capital allocation, with ongoing investments in development while maintaining flexibility for share repurchases [70][72]

Core Insights - Bally's Corporation reported revenue of $611.67 million for the quarter ended December 2023, marking a year-over-year increase of 6.1% but falling short of the Zacks Consensus Estimate by 2.39% [1] - The company posted an EPS of -$0.86, which is a decline from -$0.43 a year ago, and the EPS surprise was -56.36% compared to the consensus estimate of -$0.55 [1] Revenue Performance - Revenue from Casinos & Resorts was $342.32 million, slightly below the two-analyst average estimate of $342.45 million, with a year-over-year change of +7.3% [2] - International Interactive revenue reached $235.98 million, underperforming the two-analyst average estimate of $243 million, with a year-over-year change of +2.1% [2] - North America Interactive revenue was $33.37 million, compared to the two-analyst average estimate of $34.75 million, reflecting a year-over-year change of +26.9% [2] Adjusted EBITDAR Metrics - Adjusted EBITDAR for Other was -$17.08 million, worse than the three-analyst average estimate of -$13.37 million [2] - Adjusted EBITDAR for International Interactive was $93.21 million, exceeding the three-analyst average estimate of $84.13 million [2] - Adjusted EBITDAR for North America Interactive was -$9.84 million, better than the average estimate of -$14.83 million [2] - Adjusted EBITDAR for Casinos & Resorts was $94.66 million, slightly below the three-analyst average estimate of $96.03 million [2] Stock Performance - Bally's shares have returned -6.6% over the past month, contrasting with the Zacks S&P 500 composite's +3% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

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]