Bally's (BALY) 8-K Bally's Corporation Announces Second Quarter 2021 Results

Exhibit 99.2

BALLY'S CORPORATION

Recast Segment Revenue

(in thousands)

	Three Months Ended (unaudited)										Year Ended December 31,
	March 31, 2021		December 31, 2020		September 30, 2020		June 30, 2020		March 31, 2020		2020		2019
REVENUE
Gaming
East	$	76,675	$	46,417	$	50,250	$	9,199	$	55,330	$	161,196	$	283,701
West	76,234		49,050		46,338		14,568		20,506		130,462		84,247
Total	152,909		95,467		96,588		23,767		75,836		291,658		367,948
Racing
East	1,016		568		68		(92)		1,139		1,683		4,467
Other	1,353		1,027		1,616		268		1,818		4,729		8,647
Total	2,369		1,595		1,684		176		2,957		6,412		13,114
Hotel
East	6,692		4,084		2,398		247		3,817		10,546		18,903
West	6,367		4,023		4,476		1,868		3,829		14,196		20,085
Total	13,059		8,107		6,874		2,115		7,646		24,742		38,988
Food and beverage
East	9,527		4,586		3,230		369		10,926		19,111		52,923
West	5,961		3,631		3,659		1,301		4,390		12,981		16,886
Other	12		40		—		—		—		40		95
Total	15,500		8,257		6,889		1,670		15,316		32,132		69,904
Other
East	5,124		3,201		3,119		695		6,153		13,168		27,118
West	2,155		1,421		1,427		457		1,220		4,525		6,214
Other	1,150		48		43		44		20		155		291
Total	8,429		4,670		4,589		1,196		7,393		17,848		33,623
Total revenue
East	99,034		58,856		59,065		10,418		77,365		205,704		387,112
West	90,717		58,125		55,900		18,194		29,945		162,164		127,432
Other	2,515		1,115		1,659		312		1,838		4,924		9,033
Total	$	192,266	$	118,096	$	116,624	$	28,924	$	109,148	$	372,792	$	523,577

BALLY'S CORPORATION

Recast Segment Operating Results

(in thousands)

	Three Months Ended (unaudited)										Year Ended December 31,
	March 31, 2021		December 31, 2020		September 30, 2020		June 30, 2020		March 31, 2020		2020		2019
Income (loss) from operations
East	$	15,082	$	(543)	$	14,578	$	(16,811)	$	11,329	$	8,553	$	111,119
West	35,763		(3,023)		14,524		965		(7,194)		5,272		23,242
Other	(21,371)		(14,071)		(5,719)		(5,117)		(7,304)		(32,211)		(19,735)
Total	29,474		(17,637)		23,383		(20,963)		(3,169)		(18,386)		114,626
Net income (loss)
East	11,269		13,433		10,702		(12,388)		8,288		20,035		77,155
West	27,619		2,064		11,381		917		(4,588)		9,774		18,165
Other	(49,593)		4,726		(15,360)		(12,084)		(12,578)		(35,296)		(40,190)
Total	(10,705)		20,223		6,723		(23,555)		(8,878)		(5,487)		55,130
Depreciation and amortization
East	5,570		5,370		5,571		6,215		6,236		23,392		22,469
West	5,972		4,337		4,279		2,848		2,677		14,141		9,743
Other	1,244		81		82		80		66		309		180
Total	12,786		9,788		9,932		9,143		8,979		37,842		32,392
Interest expense, net of amounts capitalized
East	19		25		30		36		41		132		3,421
West	—		—		—		—		—		—		—
Other	20,779		19,535		16,920		15,186		11,475		63,116		36,409
Total	20,798		19,560		16,950		15,222		11,516		63,248		39,830
Capital expenditures
East	4,995		3,252		914		1,481		1,904		7,551		20,633
West	9,876		2,932		2,104		667		753		6,456		6,355
Other	456		533		100		301		342		1,276		1,249
Total	$	15,327	$	6,717	$	3,118	$	2,449	$	2,999	$	15,283	$	28,237

	As of
	March 31, 2021		December 31, 2020		September 30, 3030		June 30, 2020		March 31, 2020		December 31, 2019
Goodwill
East	$	84,148	$	84,148	$	84,148	$	84,148	$	84,148	$	84,148
West	102,831		102,831		102,423		48,934		48,934		48,934
Other	102,750		—		—		—		—		—
Total	289,729		186,979		186,571		133,082		133,082		133,082
Total assets
East	717,364		692,389		627,654		627,275		633,509		681,544
West	817,743		789,761		593,038		304,263		299,935		259,970
Other	603,693		447,705		36,189		268,423		281,879		80,373
Total	$	2,138,800	$	1,929,855	$	1,256,881	$	1,199,961	$	1,215,323	$	1,021,887

BALLY'S CORPORATION

Recast Segment Performance

(in thousands)

	Three Months Ended (unaudited)										Year Ended December 31,
	March 31, 2021		December 31, 2020		September 30, 2020		June 30, 2020		March 31, 2020		2020		2019
REVENUE
Gaming and racing revenue
East	$	77,691	$	46,985	$	50,318	$	9,107	$	56,469	$	162,879	$	288,168
West	76,234		49,050		46,338		14,568		20,506		130,462		84,247
Other	1,353		1,027		1,616		268		1,818		4,729		8,647
Total	155,278		97,062		98,272		23,943		78,793		298,070		381,062
Non-gaming revenue
East	21,343		11,871		8,747		1,311		20,896		42,825		98,944
West	14,483		9,075		9,562		3,626		9,439		31,702		43,185
Other	1,162		88		43		44		20		195		386
Total	36,988		21,034		18,352		4,981		30,355		74,722		142,515
Total revenue	192,266		118,096		116,624		28,924		109,148		372,792		523,577
OPERATING COSTS AND EXPENSES
Gaming and racing expenses
East	20,480		13,851		11,233		5,712		15,890		46,686		69,570
West	25,846		17,370		15,010		4,299		8,508		45,187		28,159
Other	928		723		1,434		649		1,222		4,028		5,828
Total	47,254		31,944		27,677		10,660		25,620		95,901		103,557
Non-gaming expenses
East	12,364		7,020		4,616		2,163		13,416		27,215		58,051
West	6,265		4,374		4,290		1,769		5,081		15,514		23,487
Other	526		36		—		2		1		39		77
Total	19,155		11,430		8,906		3,934		18,498		42,768		81,615
Advertising, general and administrative
East	40,092		29,335		20,476		10,833		26,690		87,334		111,732
West	23,096		16,971		15,344		6,592		10,697		49,604		38,654
Other	17,311		13,043		8,176		6,564		12,222		40,005		30,014
Total	$	80,499	$	59,349	$	43,996	$	23,989	$	49,609	$	176,943	$	180,400

BALLY'S CORPORATION

Recast Reconciliation of Net Income (Loss)

to Adjusted EBITDA by Segment (unaudited)

(in thousands)

	Year Ended December 31, 2020
	East		West		Other		Total
Net income (loss)	$	20,035	$	9,774	$	(35,296)	$	(5,487)
Interest expense, net of interest income	76		(42)		62,602		62,636
Provision (benefit) for income taxes	(11,558)		(4,460)		(53,306)		(69,324)
Depreciation and amortization	23,392		14,141		309		37,842
Acquisition, integration and restructuring	20		—		13,237		13,257
Expansion and pre-opening expenses	921		—		—		921
Goodwill and asset impairment	—		8,659		—		8,659
Share-based compensation	—		—		17,706		17,706
Rebranding	—		—		792		792
Change in value of naming rights liabilities	—		—		57,660		57,660
Gain on bargain purchases	—		—		(63,871)		(63,871)
Professional and advisory fees associated with capital return program	—		—		(17)		(17)
CARES Act credit(1)	(2,970)		(909)		(49)		(3,928)
Credit Agreement amendment expenses (1)	—		—		810		810
Storm related losses, net of insurance recoveries(1)	—		15,131		(1,036)		14,095
Bet.Works and Sinclair(1)	—		—		1,248		1,248
Sports and iGaming Licensing(1)	—		—		226		226
Other (1)	157		—		(2,980)		(2,823)
Allocation of corporate costs	11,583		8,656		(20,239)		—
Adjusted EBITDA	$	41,656	$	50,950	$	(22,204)	$	70,402

_______________________________

(1)See descriptions of adjustments in the “Reconciliation of Net Income (Loss) to Adjusted EBITDA and Adjusted EBITDA Margin” table in Exhibit 99.1 to the Form 8-K filed with the Securities and Exchange Commission on March 4, 2021.

	Year Ended December 31, 2019
	East		West		Other		Total
Net income	$	77,155	$	18,165	$	(40,190)	$	55,130
Interest expense, net of interest income	3,410		(30)		34,546		37,926
Provision (benefit) for income taxes	29,556		5,108		(14,614)		20,050
Depreciation and amortization	22,469		9,743		180		32,392
Non-operating income	(39)		—		(144)		(183)
Acquisition, integration and restructuring	1,580		—		10,588		12,168
Share-based compensation	—		—		3,826		3,826
Professional and advisory fees associated with capital return program	—		—		3,510		3,510
Credit Agreement amendment expenses (1)	1,038		—		1,877		2,915
Storm related losses, net of insurance recoveries(1)	—		(152)		(1,181)		(1,333)
Other (1)	(419)		275		893		749
Allocation of corporate costs	12,590		4,148		(16,738)		—
Adjusted EBITDA	$	147,340	$	37,257	$	(17,447)	$	167,150

_______________________________

(1)See descriptions of adjustments in the “Reconciliation of Net Income (Loss) to Adjusted EBITDA and Adjusted EBITDA Margin” table in Exhibit 99.1 to the Form 8-K filed with the Securities and Exchange Commission on March 4, 2021.

BALLY'S CORPORATION

Recast Reconciliation of Net Income (Loss)

to Adjusted EBITDA by Segment (unaudited)

(in thousands)

	Quarter Ended March 31, 2021
	East		West		Other		Total
Net income (loss)	$	11,269	$	27,619	$	(49,593)	$	(10,705)
Interest expense, net of interest income	19		(8)		20,263		20,274
Provision (benefit) for income taxes	3,794		8,152		(16,776)		(4,830)
Depreciation and amortization	5,570		5,972		1,244		12,786
Non-operating income	—		—		(2,671)		(2,671)
Acquisition, integration and restructuring	—		—		12,258		12,258
Expansion and pre-opening expenses	603		—		—		603
Share-based compensation	—		—		4,483		4,483
Rebranding	—		—		913		913
Change in value of naming rights liabilities	—		—		27,406		27,406
Credit Agreement amendment expenses (1)	—		—		714		714
Storm related losses, net of insurance recoveries(1)	—		(10,676)		—		(10,676)
Bet.Works and Sinclair(1)	—		—		1,355		1,355
Sports and iGaming Licensing(1)	—		—		386		386
Other (1)	—		29		150		179
Allocation of corporate costs	4,843		4,451		(9,294)		—
Adjusted EBITDA	$	26,098	$	35,539	$	(9,162)	$	52,475

_______________________________

(1)See descriptions of adjustments in the “Reconciliation of Net Income (Loss) to Adjusted EBITDA and Adjusted EBITDA Margin” table in Exhibit 99.1 to the Form 8-K filed with the Securities and Exchange Commission on May 10, 2021.

	Quarter Ended December 31, 2020
	East		West		Other		Total
Net income (loss)	$	13,433	$	2,064	$	4,726	$	20,223
Interest expense, net of interest income	25		(17)		19,237		19,245
Provision (benefit) for income taxes	(14,001)		(5,070)		(31,823)		(50,894)
Depreciation and amortization	5,370		4,337		81		9,788
Acquisition, integration and restructuring	—		—		6,273		6,273
Expansion and pre-opening expenses	342		—		—		342
Goodwill and asset impairment	—		105		—		105
Share-based compensation	—		—		8,238		8,238
Rebranding	—		—		792		792
Change in value of naming rights liabilities	—		—		57,660		57,660
Gain on bargain purchases	—		—		(63,871)		(63,871)
CARES Act credit(1)	(12)		31		1		20
Credit Agreement amendment expenses (1)	—		—		87		87
Storm related losses, net of insurance recoveries(1)	—		15,131		—		15,131
Bet.Works and Sinclair(1)	—		—		1,248		1,248
Sports and iGaming Licensing(1)	—		—		226		226
Other (1)	157		—		(3,711)		(3,554)
Allocation of corporate costs	2,900		2,862		(5,762)		—
Adjusted EBITDA	$	8,214	$	19,443	$	(6,598)	$	21,059

_______________________________

(1)See descriptions of adjustments in the “Reconciliation of Net Income (Loss) to Adjusted EBITDA and Adjusted EBITDA Margin” table in Exhibit 99.1 to the Form 8-K filed with the Securities and Exchange Commission on March 4, 2021.

BALLY'S CORPORATION

Recast Reconciliation of Net Income (Loss)

to Adjusted EBITDA by Segment (unaudited)

(in thousands)

	Quarter Ended September 30, 2020
	East		West		Other		Total
Net income (loss)	$	10,702	$	11,381	$	(15,360)	$	6,723
Interest expense, net of interest income	30		(12)		16,890		16,908
Provision (benefit) for income taxes	3,846		3,155		(7,249)		(248)
Depreciation and amortization	5,571		4,279		82		9,932
Acquisition, integration and restructuring	—		—		2,740		2,740
Expansion and pre-opening expenses	579		—		—		579
Share-based compensation	—		—		1,799		1,799
CARES Act credit(1)	(909)		(154)		—		(1,063)
Credit Agreement amendment expenses (1)	—		—		332		332
Storm related losses, net of insurance recoveries(1)	—		—		(10)		(10)
Other (1)	—		—		313		313
Allocation of corporate costs	2,591		2,453		(5,044)		—
Adjusted EBITDA	$	22,410	$	21,102	$	(5,507)	$	38,005

_______________________________

(1)See descriptions of adjustments in the “Reconciliation of Net Income (Loss) to Adjusted EBITDA and Adjusted EBITDA Margin” table in Exhibit 99.1 to the Form 8-K filed with the Securities and Exchange Commission on October 29, 2020.

	Quarter Ended June 30, 2020
	East		West		Other		Total
Net income (loss)	$	(12,388)	$	917	$	(12,084)	$	(23,555)
Interest expense, net of interest income	16		(5)		15,099		15,110
Provision (benefit) for income taxes	(4,439)		53		(8,132)		(12,518)
Depreciation and amortization	6,215		2,848		80		9,143
Acquisition, integration and restructuring	—		—		2,458		2,458
Goodwill and asset impairment	—		(154)		—		(154)
Share-based compensation	—		—		2,127		2,127
Professional and advisory fees associated with capital return program	—		—		(1)		(1)
CARES Act credit(1)	(2,049)		(786)		(50)		(2,885)
Credit Agreement amendment expenses (1)	—		—		152		152
Storm related losses, net of insurance recoveries(1)	—		—		(143)		(143)
Other (1)	—		—		(457)		(457)
Allocation of corporate costs	2,306		1,876		(4,182)		—
Adjusted EBITDA	$	(10,339)	$	4,749	$	(5,133)	$	(10,723)

_______________________________

(1)See descriptions of adjustments in the “Reconciliation of Net Income (Loss) to Adjusted EBITDA and Adjusted EBITDA Margin” table in Exhibit 99.1 to the Form 8-K filed with the Securities and Exchange Commission on August 11, 2020.

BALLY'S CORPORATION

Recast Reconciliation of Net Income (Loss)

to Adjusted EBITDA by Segment (unaudited)

(in thousands)

	Quarter Ended March 31, 2020
	East		West		Other		Total
Net income (loss)	$	8,288	$	(4,588)	$	(12,578)	$	(8,878)
Interest expense, net of interest income	5		(8)		11,376		11,373
Provision (benefit) for income taxes	3,036		(2,598)		(6,102)		(5,664)
Depreciation and amortization	6,236		2,678		65		8,979
Acquisition, integration and restructuring	20		—		1,766		1,786
Goodwill and asset impairment	—		8,708		—		8,708
Share-based compensation	—		—		5,542		5,542
Professional and advisory fees associated with capital return program	—		—		(16)		(16)
Credit Agreement amendment expenses (1)	—		—		239		239
Storm related losses, net of insurance recoveries(1)	—		—		(883)		(883)
Other (1)	—		—		875		875
Allocation of corporate costs	3,786		1,465		(5,251)		—
Adjusted EBITDA	$	21,371	$	5,657	$	(4,967)	$	22,061

_______________________________

(1)See descriptions of adjustments in the “Reconciliation of Net Income (Loss) to Adjusted EBITDA and Adjusted EBITDA Margin” table in Exhibit 99.1 to the Form 8-K filed with the Securities and Exchange Commission on May 10, 2021.