Business Context and Reporting Period
Bally’s Corporation filed this Form 8-K on August 9, 2021, to furnish its financial results press release for the second quarter ended June 30, 2021. The filing also describes a revised operating-segment structure reflecting recent and pending acquisitions.
Financial Results and Key Metrics
The filing references the second-quarter financial results in Exhibit 99.1, but the provided filing text does not include the related revenue, profit, cash flow, margin, debt, liquidity, or other financial amounts.
Adjusted EBITDA is identified as management’s primary key performance indicator. It is a non-GAAP measure that excludes, among other items, interest, taxes, depreciation and amortization, non-operating income, acquisition, integration and restructuring costs, share-based compensation, certain gains or losses, and allocated corporate costs when presented by segment.
Material Changes Versus Prior Comparable Period
- The company changed its reportable segments to East and West to better align reporting with its strategic growth initiatives and acquisition activity.
- The East segment now includes Rhode Island operations, Dover Downs Hotel & Casino, Bally’s Atlantic City, and Tropicana Evansville, acquired June 3, 2021.
- The West segment now includes Mississippi, Louisiana, Missouri, Colorado, Lake Tahoe, and Jumer’s Casino & Hotel operations. Bally’s Lake Tahoe was acquired April 6, 2021, and Jumer’s was acquired June 14, 2021.
- The Other category includes SportCaller, Monkey Knife Fight, Mile High USA, and Bally’s Interactive, formerly Bet.Works, acquired June 1, 2021.
- The company plans to combine certain digital operations into Bally’s Interactive upon closing the acquisition of Gamesys Group plc. Existing online and mobile sports betting operations are also expected to be included in that segment.
- Recast segment information was provided for 2020, 2019, the first quarter of 2021, and 2020 quarterly periods. Consolidated results were unchanged, and the filing does not restate previously reported consolidated financial statements.
Guidance, Outlook, Risks, and Unusual Items
- The filing text does not provide financial guidance or specific quantitative outlook information.
- Recent and pending acquisitions, including the planned Gamesys transaction, are central to the company’s growth and diversification strategy.
- The segment changes reflect changes in how the chief operating decision maker evaluates performance and allocates resources.
- The filing notes acquisition, integration, restructuring, and share-based compensation items as exclusions from Adjusted EBITDA; it does not provide amounts for these items in the supplied text.
- The Form 8-K states that the results information under Item 2.02 and the related press release are furnished, rather than filed, for purposes of Section 18 of the Exchange Act.
Important Facts for Investors to Verify
- Review Exhibit 99.1 for the actual second-quarter revenue, earnings, cash flow, margins, debt, liquidity, and guidance figures, which are not included in the supplied filing text.
- Review Exhibit 99.2 to reconcile historical segment results under the new East and West presentation.
- Assess the financial and integration effects of the Tropicana Evansville, Bally’s Lake Tahoe, Jumer’s, and Bet.Works acquisitions.
- Verify the status, consideration, financing, and closing conditions of the Gamesys acquisition.
- Understand the reconciliation from Adjusted EBITDA to consolidated GAAP results, because Adjusted EBITDA is a non-GAAP measure.