Bally's (US:BALY)2023-08-02 16:00Financial 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]