Bally's (BALY) 8-K Bally's Corporation Announces Fourth Quarter and Full Year 2021 Results

Exhibit 99.2

BALLY'S CORPORATION

Recast Segment Revenue

(in thousands)

	Three Months Ended (unaudited)								Year Ended December 31,
	September 30, 2021		June 30, 2021		March 31, 2021		December 31, 2020			2020		2019
REVENUE
Gaming
Casinos & Resorts	$	227,012	$	204,497	$	152,060	$	95,467		$	291,658	$	367,948
North America Interactive	2,764		791		849		—			—		—
Total	229,776		205,288		152,909		95,467			291,658		367,948
Racing
Casinos & Resorts	2,022		2,202		2,369		1,595			6,412		13,114
Hotel
Casinos & Resorts	32,903		22,315		13,059		8,107			24,742		38,988
Food and beverage
Casinos & Resorts	29,504		23,382		15,500		8,257			32,132		69,904
Retail, entertainment and other
Casinos & Resorts	11,929		9,792		6,445		4,670			17,848		33,623
North America Interactive	8,645		4,754		1,984		—			—		—
Total	20,574		14,546		8,429		4,670			17,848		33,623
Total revenue
Casinos & Resorts	303,370		262,188		189,433		118,096			372,792		523,577
North America Interactive	11,409		5,545		2,833		—			—		—
Total	$	314,779	$	267,733	$	192,266	$	118,096		$	372,792	$	523,577

BALLY'S CORPORATION

Recast Segment Operating Results

(in thousands)

	Three Months Ended (unaudited)								Year Ended December 31,
	September 30, 2021		June 30, 2021		March 31, 2021		December 31, 2020			2020		2019
Income (loss) from operations
Casinos & Resorts	$	64,892	$	109,003	$	50,736	$	(3,787)		$	12,571	$	134,616
North America Interactive	(24,981)		(3,706)		(1,049)		—			—		—
Other	(12,177)		(24,765)		(20,213)		(13,850)			(30,957)		(19,990)
Total	27,734		80,532		29,474		(17,637)			(18,386)		114,626
Net income (loss)
Casinos & Resorts	48,593		79,491		38,779		15,276			28,555		95,575
North America Interactive	(19,213)		(3,208)		(905)		—			—		—
Other	(44,127)		(7,341)		(48,579)		4,947			(34,042)		(40,445)
Total	(14,747)		68,942		(10,705)		20,223			(5,487)		55,130
Depreciation and amortization
Casinos & Resorts	14,110		13,453		11,608		9,772			37,786		32,367
North America Interactive	6,274		3,385		1,032		—			—		—
Other	8,616		8,879		146		16			56		25
Total	29,000		25,717		12,786		9,788			37,842		32,392
Interest expense, net of amounts capitalized
Casinos & Resorts	15		15		19		25			132		3,421
Other	31,838		21,814		20,779		19,535			63,116		36,409
Total	31,853		21,829		20,798		19,560			63,248		39,830
Gain on sale-leaseback
Casinos & Resorts	—		(53,425)		—		—			—		—
Total	—		(53,425)		—		—			—		—
Change in value of naming right liabilities
Other	6,965		19,070		—		—			—		—
Gain (adjustment) on bargain purchases
Other	(1,039)		24,114		—		—			—		—
Capital expenditures
Casinos & Resorts	24,698		19,659		14,871		6,136			14,480		28,091
North America Interactive	4,853		183		68		—			—		—
Other	1,822		616		388		581			803		146
Total	$	31,373	$	20,458	$	15,327	$	6,717		$	15,283	$	28,237

	As of
	September 30, 2021		June 30, 2021		March 31, 2021		December 31, 2020		December 31, 2019
Goodwill
Casinos & Resorts	$	201,952	$	201,550	$	186,979	$	186,979	$	133,082
North America Interactive	242,956		223,321		102,750		—		—
Total	444,908		424,871		289,729		186,979		133,082
Total assets
Casinos & Resorts	2,381,811		2,308,201		1,543,340		1,490,204		949,602
North America Interactive	445,085		381,327		166,968		—		—
Other	2,142,807		1,067,781		428,492		439,651		72,285
Total	$	4,969,703	$	3,757,309	$	2,138,800	$	1,929,855	$	1,021,887

BALLY'S CORPORATION

Recast Segment Performance

(in thousands)

	Three Months Ended (unaudited)								Year Ended December 31,
	September 30, 2021		June 30, 2021		March 31, 2021		December 31, 2020			2020		2019
REVENUE
Gaming and racing revenue
Casinos & Resorts	$	229,034	$	206,699	$	154,429	$	97,062		$	298,070	$	381,062
North America Interactive	2,764		791		849		—			—		—
Total	231,798		207,490		155,278		97,062			298,070		381,062
Non-gaming revenue
Casinos & Resorts	74,336		55,489		35,004		21,034			74,722		142,515
North America Interactive	8,645		4,754		1,984		—			—		—
Total	82,981		60,243		36,988		21,034			74,722		142,515
Total revenue	314,779		267,733		192,266		118,096			372,792		523,577
OPERATING COSTS AND EXPENSES
Gaming and racing expenses
Casinos & Resorts	76,948		63,195		46,950		31,944			95,901		103,557
North America Interactive	1,449		155		304		—			—		—
Total	78,397		63,350		47,254		31,944			95,901		103,557
Non-gaming expenses
Casinos & Resorts	33,568		26,178		18,641		11,430			42,768		81,615
North America Interactive	6,066		353		514		—			—		—
Total	39,634		26,531		19,155		11,430			42,768		81,615
Advertising, general and administrative
Casinos & Resorts	101,594		78,846		63,615		46,745			139,537		153,953
North America Interactive	21,950		4,837		530		—			—		—
Other	16,956		17,528		16,354		12,604			37,406		26,447
Total	$	140,500	$	101,211	$	80,499	$	59,349		$	176,943	$	180,400

BALLY'S CORPORATION

Recast Segment Performance

(in thousands)

	Quarter Ended September 30, 2021
	Casinos & Resorts		North America Interactive		Other		Total
Net income (loss)	$	48,593	$	(19,213)	$	(44,127)	$	(14,747)
Interest expense, net of interest income	5		(10)		31,311		31,306
Provision (benefit) for income taxes	16,294		(5,780)		(15,914)		(5,400)
Depreciation and amortization	14,110		6,274		8,616		29,000
Non-operating expense	—		22		16,553		16,575
Acquisition, integration and restructuring	—		—		6,797		6,797
Share-based compensation	—		—		5,449		5,449
Other (1)	(4,456)		12,577		876		8,997
Allocation of corporate costs	19,970		651		(20,621)		—
Adjusted EBITDA	94,516		(5,479)		(11,060)		77,977
Rent expense associated with triple net operating leases (2)	11,411		—		—		11,411
Adjusted EBITDAR	$	105,927	$	(5,479)	$	(11,060)	$	89,388

_______________________________

(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 November 4, 2021.

(2)Consists of the operating lease components contained within our triple net master lease dated June 4, 2021 with Gaming and Leisure Properties, Inc. ("GLPI") and the triple net lease assumed in connection with our acquisition of Bally's Lake Tahoe, which is primarily our individual triple net leases with GLPI for the real estate assets used in the operation of Bally's Evansville and Bally’s Dover, and the assumption of the lease for real estate and land underlying the operations of the Bally’s Lake Tahoe facility.

	Quarter Ended June 30, 2021
	Casinos & Resorts		North America Interactive		Other		Total
Net income (loss)	$	79,492	$	(3,154)	$	(7,396)	$	68,942
Interest expense, net of interest income	8		(2)		21,293		21,299
Provision (benefit) for income taxes	29,504		(513)		(2,010)		26,981
Depreciation and amortization	13,453		3,385		8,879		25,717
Non-operating expense (income)	—		17		(36,707)		(36,690)
Acquisition, integration and restructuring	—		—		18,402		18,402
Share-based compensation	—		—		3,901		3,901
Gain on sale-leaseback	(53,425)		—		—		(53,425)
Other (1)	4,955		—		3,680		8,635
Allocation of corporate costs	19,906		467		(20,373)		—
Adjusted EBITDA	$	93,893	$	200	$	(10,331)	$	83,762

_______________________________

(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 9, 2021.

BALLY'S CORPORATION

Recast Segment Performance

(in thousands)

	Quarter Ended March 31, 2021
	Casinos & Resorts		North America Interactive		Other		Total
Net income (loss)	$	37,373	$	556	$	(48,634)	$	(10,705)
Interest expense, net of interest income	11		—		20,263		20,274
Provision (benefit) for income taxes	11,946		(92)		(16,684)		(4,830)
Depreciation and amortization	11,608		1,032		146		12,786
Non-operating (income) expense	—		(52)		24,787		24,735
Acquisition, integration and restructuring	—		—		12,258		12,258
Share-based compensation	—		—		4,483		4,483
Other (1)	(10,044)		—		3,518		(6,526)
Allocation of corporate costs	9,362		41		(9,403)		—
Adjusted EBITDA	$	60,256	$	1,485	$	(9,266)	$	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
	Casinos & Resorts		Other		Total
Net income	$	15,276	$	4,947	$	20,223
Interest expense, net of interest income	8		19,237		19,245
Benefit for income taxes	(19,071)		(31,823)		(50,894)
Depreciation and amortization	9,771		17		9,788
Non-operating income	—		(6,211)		(6,211)
Acquisition, integration and restructuring	—		6,273		6,273
Share-based compensation	—		8,238		8,238
Other (1)	15,754		(1,357)		14,397
Allocation of corporate costs	5,816		(5,816)		—
Adjusted EBITDA	$	27,554	$	(6,495)	$	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)

	Year Ended December 31, 2020
	Casinos & Resorts		Other		Total
Net income (loss)	$	28,555	$	(34,042)	$	(5,487)
Interest expense, net of interest income	34		62,602		62,636
Benefit for income taxes	(16,018)		(53,306)		(69,324)
Depreciation and amortization	37,786		56		37,842
Non-operating income	—		(6,211)		(6,211)
Acquisition, integration and restructuring	20		13,237		13,257
Share-based compensation	—		17,706		17,706
Other (1)	19,942		41		19,983
Allocation of corporate costs	20,515		(20,515)		—
Adjusted EBITDA	$	90,834	$	(20,432)	$	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
	Casinos & Resorts		Other		Total
Net income (loss)	$	95,575	$	(40,445)	$	55,130
Interest expense, net of interest income	3,380		34,546		37,926
Provision (benefit) for income taxes	34,664		(14,614)		20,050
Depreciation and amortization	32,367		25		32,392
Non-operating income	(39)		(144)		(183)
Acquisition, integration and restructuring	1,617		10,551		12,168
Share-based compensation	—		3,826		3,826
Other (1)	(439)		6,280		5,841
Allocation of corporate costs	17,032		(17,032)		—
Adjusted EBITDA	$	184,157	$	(17,007)	$	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.