BALY - Earnings call transcript Q4 2020

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning and welcome to the Bally’s Fourth Quarter 2020 Year End Earnings Conference Call. [Operator Instructions] I’d now turn the call over to Craig Eaton, Executive Vice President and General Counsel. Please go ahead.

Craig Eaton

Good morning, everyone and thank you for joining us on today’s call. By now, you should have received a copy of our Q4 and full year 2020 earnings release issued earlier this morning.

News earnings in presentation of the at under the call accompanies our haven’t, Presentations www.ballys.com available and are Investor the you release that and this website tabs. If Events and Relations section our McGrail, With and Operations; President CEO; President me Development. Marketing Phil Vice Officer; Crisafulli, Juliano, Steve our President Adi Vice Joe Financial and our Chief our on Executive Transactions are our our of Strategic Papanier, Officer; and call Marc today’s Dhandhania, Chief George Accounting Capp, Strategy of Officer; and Interactive

are that from statements. we made forward-looking release earnings Before like the forward-looking include projections uncertainties. materially we begin, filings. discussed would SEC forward-looking and these risks significant These management to plans, results results contain in remind will the involve may everyone estimates in differ and and that comments company’s today expectations, discussed Actual statements by risks statements. These

management the a in to call, release. today’s forward-looking schedules will contained do financial our certain GAAP non-GAAP measures financial non-GAAP included of the our over are provide call project not George. for the our with charges to comparable During expenses. also to this measures call. be certain of We most Reconciliations in on to turn to reconciliation earnings refer completion inability due measures. broadcast call being George? replay now live investor Today’s the will special and after financial site is available shortly will I

George Papanier

Well, and very thank thanks us. for much Craig. you, joining everyone Good morning,

on make across have we our announcements and provide call, quarter have Since time several recap growth color fourth whole XXXX our take last continued and as this to excited initiatives. additional recent made. a progress to that of the extremely significant strategic to are We we some the

discuss. have to lot a We

from we into that for right to start get announced, want leading and properties evolution online single we soon Rhode various company to it. year in partnerships was a a XX through our our casino XX commenting presence. XXXX on continued strategic and acquisitions have significant and across incredible I Island and transformative with player we’ll the by be So a national states, operator property to mobile

best we goal primary model, have to premier, adapt integrated position the become we target. we are gaming have feel company truly start, BXBXC adjust U.S. as dynamic omnichannel work of pandemic. to a the result the to to with Our and steps and necessary conditions to taken to continue achieve company unpredictable is and COVID-XX To that very market business that to what a continued the

the year, of all our For took result a our over evaluate the are able time CDC of period that believe result properties realize as to operations, many of the We with we in profitability shutdown and for forward. efficiencies time long-term were were will we this and improved this a sustainable to of properties guidelines. going our accordance shutdown in

both and operating consultation state to across of in are have regulators, Hotel close and second to and results comprehensive preliminary consumer health been Casino open at At operating across portfolio the properties including with February, close point stronger now in Island XX/X. that jurisdictions. by indications Tiverton the COVID between for weeks had capacity health entire level protocols properties our safety and in X Rhode December, show officials Casino Rhode markedly limited still fourth in properties weather, are with we demand While quarter, forced impacted restrictions of not in third the this wave some operating state early our but us and and with all the we November market pleased January and time, results. River Twin quarter Hotel in our as our local operations, and shutdown, that fourth Notwithstanding impacting Island

confident progresses locations, at process demand. levels, we will strong closer rebound coupled we reopening to historical from believe to in are to a brick-and-mortar able operating we across the and operate vaccine with we’ll As that the be rollout, continue our benefit

results of million quarterly from our XXXX XXXX. for revenue into to deeper in quarter fourth $XXX.X X.X% quarter overall decreased the $XXX.X fourth the diving Now of million

$XX.X property the Despite signs million a in in of where City, execution This our its our already fourth million, our quarter aggressive tracking driven to state recent marketing ownership XX.X% In the and was than are fourth began disruptions more is the revenues City repairs. $XX.X Rock and effort, The a was to very they period results Island encouraging focused Casino systems the there impacts X at the early closures, ended the property XXXX. was Hotel impacts business player days of and late very of December with XXXX. Zeta of the XXXX. Rhode effects being November EBITDA for addition close the in Casino acquired Shreveport, from also marketing in and Casino, by Kansas and XXXX, October fully calendar Eldorado on acquisitions None fourth was in impacted due was were quarter. in XX, by revenue the so Hurricane our and same for Hard We strongest were on relationships, by decrease which the to with capacity limitations than decrease and offset in we of various KC or partially Biloxi travel encouraging. the COVID-XX, July since damage from quarter forced mentioned, on second that online the Casino which revenues on Resort in & XXXX. quarter XX, the had acquired the Vicksburg, which of from X, first Atlantic place, adjusted more operating generated incremental the acquired Bally’s negatively

while to and Once new of closing initiatives house customer sportsbook will segments to In future years begun our to overall stronger redevelopment Kansas activities the structure several provide enhancing a all over and link in acquisition non-gaming better and include our the an land-based lost arrival the to addition last to our amenities. parking that since City we our recapture July, restaurants, existing the retail campaign, implement branded experience. sense marketing in facility, offerings casino the and have customer customer and will outlets were of of KC, completed,

the the with you across COVID If where of KC. and at operational were proven confidence with efficiencies. The Kansas Dover, revenue will we positive At of better, other reductions our reopening amenities. marketing implementing same segment residents Southeast and notable in the to the impact impact savings, in restrictions, by proof impact by the the notably to and this we of is City portfolio, driven lower-margin margins locations labor look and type the pandemic. continued is improvements spend improvements primarily see reduction resulting reduced less Casino to operate we since properties on transforming that promotional for have and of from Margin continue strategy, trend properties with a QX mitigate history continue a and

Caesars profitability on for QX the seasonality, QX a to to which negatively time Atlantic Another was Casino and I of Atlantic QX very and Program, in impacted City. million. these closing property of decoupling noted, by complicated results of key though, the and from legacy see EBITDA impacted were a impacts adjusted in Since COVID-XX operations a dissipate revenue Bally’s acquisition QX quarters the City combination even $X.X that should complicated late and restrictions Reward begin We the mentioned. due were largely QX path impacts by by be It year-over-year the was historically and second loss-making more believe IT as quarter impact will just move QX traditional into systems November, fourth Caesars without periods. completed factors mid-February. profitable methodical Hotel & to we half This

the addition starting new disruption. execute These are and over any years, projects be On of Additionally, targeted spaced robust to and on year hotel integration we including to amenities, and for experience, strategic phased out offers. property a Bally’s multiple continue room this greatly plan refurbishment including we improving a customer will early basis, customer new CapEx beverage and our AC. food the and several minimize

through on have We also sportsbook a the City with location opened previously FanDuel successfully work location. property our Atlantic permanent Bally’s partnership and begun a temporary within announced

to excited market with like relationship City. by FanDuel a our robust adding very Atlantic expand We’re

of New earnings announcement involving PointsBet, As and latest Jersey New just which market are gaming the attractive sports iGaming X sports Jersey Entertainment, iGaming to unique discussed, elements on betting and represents skins. extremely and we all have FanDuel the theScore, betting the is our opportunity, to partnership This accretive state, and and builds Sporttrade and in acquired our with with X Esports market. cutting-edge add mobile Assure partnership we’ve where

portfolio presence XX impact accretive the In we Colorado; of X Vicksburg, will Lady Hawk, the Jersey; I other and XXXX, in completed. XX Missouri, to some on Shreveport in briefly diversification KC, Now, property in expanding acquisitions continue Eldorado Bally’s expand of on X in Mississippi; once our regional and City Notwithstanding closed will advance transactions. Louisiana. COVID-XX Atlantic City, City; our we our on strategy, the We Atlantic to achievements pending in acquisitions through across XX New properties our states all closed announced presence which on acquisitions major disciplined opportunistically XXXX. pandemic comment total, industry, of Luck in Black are casinos, Shreveport Kansas Casino

and in acquisitions company in approval. announced Lake with MontBleu Evansville on as iconic all we ticker BALY, the Resort Nevada; expect regulatory of Evansville, Jumer’s Entertainment new first XXXX XXXX. Bally’s the Hotel we Rock will Casino Indiana, & Caesars X, half that addition, acquired effective of the in in Tahoe, and In became which In Island, Casino November, Spa previously & rebranded pending the the Corporation November Tropicana Bally’s Illinois; from a our close brand early

of gaming nationwide that enhanced rich and know, brand Bally’s recognition. history you many the provides of has and a immediate As entertainment

on our how develop leverage this providing our brand updates the portfolio. to next several look to continued I the We forward prestigious rollout further plans months. across best over for rebranding to

and the announced We also Bet.Works technology its platform. proprietary of acquisition

our transformed in presence agreement as construct a across well for opportunities. as significant casinos us would as integration County, as that combine pursuing currently provider have stations, does positioned long-term we betting an of well sports our provides of a sports of supplier betting Lake Group, Sinclair’s these as ultimately content with Sinclair, industry casino out. national Sinclair as a as resorts. the Center note partnership to our and both iGaming Category shareholder presence, in offerings to beyond. manage success look the market brand national and with we start offerings for additional trends, exciting we access foundational, Bally’s the on already betting in roll Interactive which support for announced also iGaming have and formed to as you really When the market linear that company media XXXX Bally’s a with digital X elements our opportunities of value. We online online immediate and I deliver We premier states traditional with that in channels licensed will evolving off brick-and-mortar holdings Bally’s omnichannel our Pennsylvania. in and and well the broad access the entertainment online will and Broadcast RSNs, database XXXX unrivaled formed best all At U.S. as and as a sports recognition to its provides time, marketing under media Casino same on development Iowa power continues assets develop, gaming expanding feel and agreement not is great a where forward and division access with capitalizing newly well future ourselves legislation

to recently Bally’s casino to city We and in proposal Virginia. $XXX destination the million Resort, hotel the Casino of also Richmond a world-class submitted develop resort, Richmond, a Richmond

rights logos, platform also into betting Monkey National leading SportCaller, sports with to the games, BXB in our differentiated League, arms I challenging interactive us with extremely to of Marc. turn commitment fantasy a each am providing I the through data strategic our that sports of teams the customers of this importantly, platform. our accomplished, now all and of North acquisition Knife We daily fastest-growing use their will Fight, and provider diversified work keeping have safe America first entered betting and over to league’s global Hockey throughout Bally’s and as with and official sports other environment. added site the our call partnership free-to-play marks, the of our part the proud most great

Marc Crisafulli

morning Interactive good everyone. division. mentioned, that on and George projects I many and Bally’s formed the Of Thanks, to want our newly focus George exciting first initiatives

and and is forming will in be properties; and physical of gaming XX, new Bet.Works, our Interactive, await and made our the November Casinos, distinct for which contracts the approval exciting second operating acquisition, on even Bally’s launching include iGaming. division, sports will of a in two progress Bally’s entertainment Since have announcement, quarter. conjunction interactive expect for announced regulatory which we acquisition currently As Bally’s with which comprised towards we we betting our significant this Bet.Works will divisions, as we be

Fantasy announced XX, North fantasy growing America Interactive division operations. Fight, Monkey leveraged and omni-channel a support what this fantasy developed daily As a the we market-leading of player all-stock acquisition of Monkey Knife a adds sports site George high-growth month, rapidly transaction, another can this the provide and Daily industry in mentioned, happen January element expanding our fastest is later will iGaming to in Knife which be and layer the approach. we content in closing transaction. to After differentiation our our launch the whose Fight and with sports of on brand sports is expect will database an of betting

the in us Additionally, capitalize launch betting we serves as on significant towards us will app, platforms which also across deployment year goal digital We making and and iGaming February seamlessly free-to-play casinos new the physical Bally in of addition our SportCaller BXB generate to our as of development support the geographic completed more are they first the expand XXX accelerated internationally own on actively have become for to the in omni-channel fast-growing sports will and provider. Bet.Works firmly believe to two betting resources innovation the underway. over over countries. With opportunities second are that these we launching of position sports languages games Interactive enable quarter. solutions. XX our enabling company integrated games announcement, a XX in XX division, presence and gaming digital to anticipate The support our we and progress and foundation of products market. already U.S. continue to than company, leading will excitement with the the sports of future free-to-play this global online Bet SportCaller, acquisition game SportCaller operating suite X, each

markets, We market country side permit the recent Sinclair’s the states. our will expand as interactive reach XX currently XX pursuing the highlight continue access opportunities to of not the legislation long-term linear in our strategic and new XXX able stations with in look regional across by expansive we which well Group. betting continues and database to Interactive would unfold providing by are fans networks, to I partnership as adapt on additional and media engage and that offerings sports country that Sinclair sports television also the do assets, sports across complemented Broadcast unique forward engaging leveraging to be sports states digital betting. acquisitions span player will as By

develop to begin expect quarter. next to rolling out exciting together platform, working are teams this we Our which

other to a on transactions. of the update let me our status pending you take Now, minute

acquisitions. regulatory and later believe We make MontBleu to in on will look local Indiana approvals to Nevada in and and this of in believe progress Jumer’s We approval XXXX. authorities complete in on Evansville Lake second we these the close currently the the continue track are of forward to to Illinois month. in Tropicana all necessary working quarter with receive regulatory Tahoe close We

in pass enter on authorizing our legislature Rhode the a or amend sale-leaseback state the have an also to in as agreement result Island joint Island public of X.Xx with Rhode would to agreement ratio update agreements regulatory including to noted, law, an we the into our this flexibility several maximum leverage relating increase in greater Island, requires proposed and transactions Finally, proposed to The proposed IGT, of venture the changes status contracts. the to assets. Rhode

that be soon We and of as XXXX. second will improved legislation are optimistic this addressed quarter as the

amenities competitiveness. taking to We even would improved shareholders position and mechanism us a for increased as well scheduled our will this into further floor the account our feel on to us return in region House competitive a X. by state-of-the-art develops. accretive be The hearing it plan a update for a have support extended provide gives facility Rhode we performance Representatives before financial to in March we it of compete will for horizon investment with any need now us next to Steve. will effectively positive legislation the ensuring VLTs provide deliver agreement we us future. our more I slot into Tuesday, over and as this driven legislation Island also has Committee expect turn Finance and We the to this The additional and

Steve Capp

Marc, thank you.

bit by numbers quarter, impacted our When forced our two revenue year-over-year. by a to impacted Rhode from performance, results our a as approximately as to properties fourth in deeper million Rhode X-week George of XX% for were Island December. That’s EBITDA adversely just First, million Island. were results the a into big pretty the This gaming in of closure we quarter the close to October mentioned, our in compared dive shutdown off strong just $X approximately $X December hit. gross

there starting in behind are so However, QX. signs this George new shutdown strength far now some very as with us, of mentioned, strong

to impacts bit, even touched strongest and the quarters mentioned Also, segments Bally’s George, on a Kansas Historically, not nearly of Shreveport; at and and with we year. are recorded part the was the the of we awards loss net at Marc tax CapEx full acquired we a company’s softness year. from XX, a million; including the likely the consider Property on large due our City at under third by several at second days operating other fourth under some $X fourth EBITDA item, this that will a visitation basis will to totaling that carry-backs in offset particularly from Atlantic expect income and be business, of benefit cash acquisitions consolidated Eldorado recorded payments Shreveport, We and fourth once portfolio, GAAP our the purchase adjusted gains following which we make expenditures, the of including we to quarter. as $XX.X was XXXX, on in Atlantic XXXX George to totaled the as the the in income acquisitions Lincoln and the the the were Income end increased quarter Act. of in quarter City acquisition. a XXXX fourth million our of ownership well. middle as spring quarter traffic associated largely the the reflect of also does one-time million. which some cash noncash which increase see our We George in bargain defray equity website, potential the XXXX, in our number. need an noted, and X full help the of City providing in run which the million year. performers which result along on the posted months, $XXX of Notably, road of It net Hurricane the accounting full of Atlantic million utilization income by of of of quarters $XX EBITDA number the impacted we last as issued to on tax the comment and rate strong from million on were charge Net closing West $XX.X December a tax Bally’s of CARES with However, quarter in over Bally’s $XX $X.X closed million, Southeast next million earning charges summer in media result million the hurricane was partnership, quarter the of and will non-operating again believe a contract brick-and-mortar refund our for actually quarter acquisition QX Zeta. City both with contributor, excess as Last tax experienced Sinclair tax for have adjusted $XX.X disruption, in in with expected $XX.X in a items. which

XXXX moved million George machine forward have was our are mentioned, basis. So in pro through a transformationally, on right this from generating Those as in we it into expectations. a management look XXXX $XXX what forma flow excess cash company of

address to cash like and I’d Now liquidity.

for comprised million. for Bet.Works acquisitions of the $XXX $XX.X As credit December million borrowing the closing on of paid cash forma that approximately total under $XXX Evansville hand $XXX XX Knife And facility, was from consideration approximately taking of million for committed revolving available approximately in cash expect Fight. both $XXX and we that outlays million When $XX million our the which in had we the in for forma XX, February. compared SportCaller million. at into our for X pro liquidity contract to was next and Indiana under months, for Jumer’s, is Monkey Pro

liquidity of Given restructure payment of pro we use MontBleu year that closing. respectively, for has and million. $XX price The purchase million X forma $XXX the from approximately from have deferred equity,

liquidity. notes possible addition, we the consent executed holders order to additional In solely of to high-yield borrowings solicitation support enhance our future in capacity debt our a permit to with recently

million. revolver we existing increase our As to more revolver have size of such, above the the ability $XXX by $XXX now million than

in We’re likely rather for to need, an liquidity. not for of funding particular abundance future, the any do near but so available

cash that, brick-and-mortar expect to flow business free In from rebounds operations addition all to increasingly our generate post-COVID. as we from

even million of generated flow acquisitions, million the $XX We cash adjusted limitations, experienced cash paid only considering will we COVID M&A of with dry a remain quarter pursue we conservative cash the real of the plenty quarter Excluding spike forma a prospects. position, pro EBITDA are very feel regional opportunistic in in to with fourth in liquidity neighborhood we to on to leverage fourth fourth that due softness in comfortable in powder we flows the the free continue and under for quarter. over $XX

expect to Center following total project with turning Pennsylvania certificates closings. will customary other X is Lubert complete, and operating $XXX pass, of the acquired we XX CapEx, the regulatory project expansion regulatory as by to approval. Ira Should year, Island year in of back mentioned this approximately occur construction will project development million, commencing receipt begin the Rhode our Marc, approximately cost about months as take soon approvals, and the Lincoln over to as of pending half Now, Pennsylvania County, legislation the practicable. The

We calendar expect that to hit and CapEx years. XXXX both XXXX

sometime progress We on redevelopment investment. KC plan at greatly us The Casino XXXX. we with KC May, experience, a our continue as should our underway. guest to half a expect planned event project return project in finish Casino largely driving are second growth make Jersey that for on enhance George and investments groundbreaking approximately $XX mentioned, And it New capital nice That is million. and will property in and XXXX for the in

of of our other CapEx we this My properties platform delivering company properties, spend we our million We year. of at no CapEx we maintenance and on the ongoing expect been growth as $XX situationally pending current discussed the quarter. the opportunistic the remark, last to $XX to changes and run $XX physical interactive shareholders our in portfolio well to expect annually. continue point, to in rate for Based range material And this there expanding project look, approximately as stakeholders. have XXXX be plans million in in final million accretive and terms

remains profile an a foundational unencumbered back and that, estate. over considerable will And ambitions George. turn large to strong, is have liquidity our is with interactive brick-and-mortar I of That and real we our pro leverage combination entertainment and as growing forma very provider ongoing to Our base. very customer it omni-channel to gaming moderate, growth

George Papanier

a for store I Bally’s will year you we operator ask what’s truly to now excited questions. the were and beyond. thank in up Well, about and very XXXX open that, With Steve. XXXX for it pivotal was for

Operator

the comes Jonas line of Barry [Operator Your Instructions] with first question Securities. Truist from

Barry Jonas

before guys. see about just full how launch? timing a ramp? wanted Hey, once morning. we and running, with talk about sort up Good can we of to should And I will are you Interactive think we start the

George Papanier

I Barry. turn this to over to Marc. Thanks, am going

Marc Crisafulli

Barry. morning, Good

for what be are the like in it the of release, end in terms the year. So the as saw going should towards of to close on about looks Bet.Works. you of you Interactive think we will us is second It quarter now

so And the focus will they that in states up in we first. are on ramping

of It’s rolling we New four Indiana in them. second there those Jersey, of all Iowa and be of Colorado, will and getting targeting So, the half are XXXX.

Barry Jonas

And up once running expectations up of build a will great. how this hit slower you Okay, more terms then sort think Do kind you and share? pace? ground is or are are market in of you you of sort will what of – of the running

Marc Crisafulli

right for long-term. we and sure and Look, want it properly it’s get a up now the tell little closed obviously, running, hard to it but we until building to make we are

go and beyond layer to to initial then in start additional how see states we those will that. launches have we So

program can those XXXX ambitious expect pretty of as you So assets we through online. a bring all

Barry Jonas

strategy around streaming of you understand cord And just beyond help walk maybe how just maybe Sinclair, Great. just through interactive just sort or TV? then think us risks you with the can about cutting,

Marc Crisafulli

Yes.

just let Sinclair. back a on me step take So

Sinclair and the I time, of in Over rights we helpful. owner is America. negotiate largest it think it sports to on Look, sense it’s will the believe scaled of for will player a industry. grow behalf make

early we full of for with recovery vision. partner second Furthermore, the commitment how Sinclair you as and a with of and important platform across all component significant have aware, we diamond in sports, a as plan quarter assets are capture at to industry are RSNs we having the has contingency and deal Sinclair, discount, expect about with did execute other the of owned the and all think assets. to as quarter, deal calendar start our were deal our a capitalize and that be value. the start an from their renaming can us anticipate our work. the signed COVID a to that and may to there parent by pleased pretty When of the plan recovers trading to we As are we gamification our with rollout going significant you of a sports for is to excited believe bonds we we second the Sinclair. Look, accordingly on company structured opportunity that’s will opportunity starting Barry, it still the

Barry Jonas

Great, so thanks. Thanks much.

Operator

comes line next Jordan the Macquarie. of Your Bender with from question

Jordan Bender

question. Thanks for taking my

you the partnerships, market call with comfortable Sinclair Bet.Works conservative and XX% you the On hosted felt share. the following

XX% SportCaller, basis? you NHL, With number that do a rate upside to see the Fight Monkey Knife and on run

George Papanier

that leave I’m going Marc. with to

Marc Crisafulli

make it are going any Knife Fight not broader are part Obviously, to we right had moves options products we’re now. weren’t make Monkey change about of we’re need we that SportCaller to our different the have that full and a they to suite all to These thinking our strategy we moves, anticipated. Yes, specific but to how customers. of of all all offer sure

I changes wouldn’t now. how anticipate So any right thinking we’re about things in

to need can to continuing all life. we out make innovate our bring sure the everything that and and have build products just We’re we to control strategy we so technology

on So I yet. of any wouldn’t changes any that be making

Jordan Bender

you. the REIT? project, would Casino, about Okay. total And the And talk then opco/propco the possible you then to financing is you Thank ideal turning structure be open can what for Virginia company? using a to for the

George Papanier

Steve, do you want to that? handle

Steve Capp

Yes.

me the first. take Let second one

portfolio makes that estate portion XXX% soon. unsecured opco will a makes more that in of in secured embrace optimal terms estate in the financing Rather, that going going our capital real of time, selectively moderate markets real relatively cost portfolio we’ll of be sense so we’re and opco/propco, more In more a the – basis. mind of traditional model frankly, – don’t of we in for here not a think there at markets, traditional to We combined purposes. with quite opportunistic a approach anytime necessarily. and real We don’t sense. go-forward the is assets attractive bit think that’s real regard. have to use returns to I estate number look in the capital intend use of And on used more credit when – credit the that Look, believe grounded in and to you for structure a terms the one that we’re that, is unencumbered there listen, the is over we a provide the reasons alike

very on would again, repeat question So was please? side once on you – and that – more, then the the what Virginia, moderate sorry,

Jordan Bender

Yes.

behind You there. was asking kind it financing possible covered I the on just of that project?

Steve Capp

that Pennsylvania, straight one now. and are of those. sometimes open kind jointly cleaner Listen, to it’s kind projects that Yes. wide a right of owned, as fact, of project eyes we’re matter just finance In

conditions I or see and come project kind might common finance financing off-balance given there, one on look should market markets, to might both credit an go, sheet ownership say, you – of those. of ownership financing project multiple or there, given straight depending but So non-wholly-owned we

possibility on about is there question Your of course, always balance a then, REITs remains and of that a possibility. bringing doing it And it sheet way.

angles So both at properties, those those we of are kind as three fact. matter looking of a of on

Jordan Bender

give know a you for a with missed if I projects? I moving number more Okay. I growth is Do And these then of CapEx some don’t couple CapEx parts of – it. there the year, one know here,

Steve Capp

spend for depends reopening might we it of we of the mentioned markets about year all – upwards post-COVID, $XX course. look, Well, million on

time are, $XX of $XX but limitations $XX the might our us expectations COVID break frame. year, million quote to City on don’t do a end to the in being of upwards May-June this, in Atlantic on million kind City We again, in lifted. million Kansas of the depending So spend intend project. ground That’s towards of we kind the back

And You’ll the CapEx Lincoln, see portion is contract IGT regarding for a that then of spent good Marc us. the the outlined dependent upon year. that legislature as passing this million probably $XX

$XX a will neighborhood a project this of the later That’s project million CapEx it in probably growth binary of year $XX as side project. million And well. brick-and-mortar that about of on kind the the done on for that that’s and no-go the of next But that for expect to XXXX. at or we go, CapEx mentioned two, get bit so as so in month

Jordan Bender

Thanks for off. the all pass answers. Perfect. I’ll it

George Papanier

you. Thank

Operator

line the KeyBanc with question Your Brett Capital. next of from Andress comes

Brett Andress

Hi, good morning.

George Papanier

Brett. Hi,

Brett Andress

you would could morning bit the of timing the of on states. – Marc, little show hoping light good Marc, hoping X rollout – the more you

there? is season? before second Just expect said you more any but that the think what I football details something you on half,

Marc Crisafulli

of of see to definitely really some you’ll before closed, Look, into until that acquisition it’s But Yes. hard season. get level football granularity. Bet.Works get we the actually

We’re obviously already. working on things

and see football would open you season, them of closing at to expect for of before some an update So the get least more Bet.Works. of we’ll have once you we done

Brett Andress

Got it.

strategy? in business fit then the on close And once $XX how specifically, ecosystem database? customer at million there? you SportCaller then leverage I’m free-to-play to to do think what additive as these can think get how secondly, into start does And products to Okay. business quickly one, could more Knife that it you is, be that the you that Monkey you trying Maybe Fight, RSN acquisition how bigger about

Marc Crisafulli

a he for question. Strategy of to can color our I’m more Interactive, a good turn you. little who’s over this Dhandhania, it’s to provide on So colleague, going that Adi and and my VP

Adi Dhandhania

for you Sure. question. the Thank

So pathway as pretty that content their as the well. we assets, to and/or something side on Sinclair’s it on digital doing and it across relates have leverage with to a side linear Monkey use Knife optimistic be the Fight, their feel them we content

is, it convert about we’ve As helps that eventually about think top When free-to-play customer offer and could SportCaller platform. Knife top funnel sell in the we we legalized. peers and with What Fight in to the to had money it a real And in we are build database our money Monkey opportunity. what the great the Knife is, industry and way funnel for to sports this Monkey database think DFS relates states look, is to seen database is SportCaller, don’t and not operate us, of how build or to us that of that’s us we over cross real to in betting. Fight currently a opportunity

that and the the have you DFS, have free-to-play and get them wants we sports money to massive betting real then onto funnel just convert someone a now has skill use if a to portfolio So Bally’s bet platform.

Brett Andress

it. Got

if squeeze business like January, could Okay. I here, And February. the It does one more. casino seem then improved

hoping rate could XQ property give run to level sense just focused kind highlight? you for to some maybe here, frame maybe want start to of just as or around things more up on of margins Island Just If business put property us the that, numbers you any any you of some margin Rhode kind trying reopen?

George Papanier

Steve, talking do you have are know granular – February? I numbers top January, that line. are in with we we

Steve Capp

Look, the not kind commentary is for got closings our George. overarching this Yes. point go there, the the what that let and very business preliminary indications Look, of market quarter. stay we’ve you in to granularity love more the much we’re at ready book have around later, this tuned, far about but we’re January turning feeling handsomely detail, strength business But rather and of the so good February. to come

George Papanier

And I’ll to thing just one that. add

We margins reopening most that part. are we’ve seen in the improvement maintaining out for the the coming of

So we’re happy – glad that. we’re see to

Brett Andress

color. Alright. Thanks for the

George Papanier

Thanks for the questions.

Operator

Your from DeCree John next question the of with comes Gaming. Union line

John DeCree

similar but if it sure reopening one in can the seasonality morning similarity? Obviously, Rhode reopening bit provide has Thanks demand differently, asking I a little questions. Is everyone. you there, to and little you it question if perhaps about George, reopening? last of been think you might when Good taking or not can If my the for more some to Steve earlier opening color more could try anecdotal of comparison consumer be relative return? any compare in the at play on a time Island last kind the or XXXX,

George Papanier

– right Rhode far reopening it the I’ll And focused quarter Island, of it’s after say. much over well, significantly so actually the strongest year, improved been we’re COVID. on the It’s

weather at once little you in out a So the February, of XX-day and January actually top but bit the And than the of impact the could state other just closure. continued came look line we trend kind that October, line – in period better. had train trend were January. by with of because were not for consistent of in XX-day the that weather, event weather impacted of through trend of that in the days time, February the we

feeling we’re that. good So about

Steve Capp

is by around our an increasing we’re appears just comments this it stronger of vaccine, level anecdotal, comfort – customer George’s John, the base seeing with seeing that and Yes. but we’re numbers. supported are

John DeCree

for one future additional color. great That’s access as And I plans access, appreciate could agreement taken of so you far, question on Steve. one approaches ask think have market that. Thanks, kind market and if I I bit two then in the a forward, to announced stand-alone kind about strategy you of you do be Pennsylvania access a talk well about timing of Richmond, access? little the you of when land-based think But more appears how can where Could any to And going investment. M&A of approach go. of to which as adding market be project market it, on asset-light really you back to or half will it’s have maybe see kind start the launch might opportunistic how more sense look kind a agreements? want that states ambitious in already of you to to year addition we couple in a some states, and Will side? of you realizing a

access market selling you will and out forward the going on map? strategy pursue aggressively how your So

George Papanier

Sure.

look as bricks-and-mortar we’re through license for to opportunistic. as applications the what sports So to to well avenues iGaming always open mentioned, to We’ll of and continue continue going be betting you access for states.

opportunity will addition iGaming. A that we and opportunity for technologies, Monkey for on Fight add acquisitions look yes, going to and that is we’re SportCaller, betting and platforms Knife to in we’re is looking that. there so there, And complementary could there. the going complement capitalize and to then to we’re we’re example So sports of is access, try the of that, continue good to – that going

John DeCree

Thanks and George. and Thanks, busy very a everyone successful congratulations on year.

Steve Capp

you. Thank

George Papanier

it. Appreciate John. Thanks,

Operator

next Stantial Stifel. Your of Jeff with question from line comes the

Jeff Stantial

thanks. Good everyone. great, morning Hey,

the early rebrand in completed November. So to back Bally’s you the

thoughts could your you have anything or there in, you any updated forward? on to be curious, you leverage Just awareness you’re anything share couple plan do like moving how a months database survey work kind brand that? the would with any now brand done Have you of of Just in on helpful?

George Papanier

Sure.

So this you. to over Marc, going to I’m pass

Marc Crisafulli

of do in we’ve lot we Yes. November. acquisition to a the happy it. made Yes, progress announced Look, since

around of all with and the We are second see can almost significant of work, our to most to quarter done rebranding our expect assets. in heavy start you activity

that assets Fox to Sports side, Sinclair into renaming ready the the launch Bally’s has On of we’re getting the Sports. land-based

that. all nicely. pretty along excited pretty moving It’s we’re So about

to If see you XX over days, the of tangible can the progress it. just from monitor kind things next start you’ll

Jeff Stantial

lot that And on gaming the approach a the Helpful. about over thanks. And side, – and both Interactive versus and peers? omni-channel playing in see would Any in I just given ADTs switching up it’s and look, coming it a to talk to thoughts could impact get terms online with relative of be your helpful, around relative around I really helpful? cross-selling offering early you online I of from we out be know parameters still without as would it’s opportunities, the here provide days you markets and to retail Great, whether there But on just kind we then rollout. that the online synergistic are how expectations Okay. call have app advantage market. wanted gears that strictly of your you to and anything realize casino,

Marc Crisafulli

and it. try some I’ll so That’s over it turn touch of a parts question, and to and really loaded on Adi, he’ll

Adi Dhandhania

you Sure. the question. Thank for

I have think, look, the is multi-pronged a way about to approach. we think this

operate databases casino. states own we you’re we our right, have in So casino

database. that So be will we marketing to

Sinclair to about on is us variety thing Regional access We Networks, which net be touched with the a gives Sports of assets, the will Sports relationship to to forward. other renamed right? think The going Bally’s

broadcast their XX% to that of the access TV have households. U.S. roughly also We stations penetrate

multi-platform such OTT assets as also tennis and We channels platforms. and get stadium

about the you the and bet gamified assets different expect with content Bally’s with rollout have get our can So and we database us content up of Sinclair, reach to our that all we come integrated platform. thinking distribution we as and from

Jeff Stantial

the Okay. thanks, Appreciate Great, helpful. everyone. color that’s

George Papanier

Jeff. Thanks,

Operator

of the comes line Cowen. Your with from question Vitanza next Lance

Lance Vitanza

rate just question, pro the side your for first on on interactive the deck, you million. and on in one Slide run post-COVID of XX, if I business one questions. Thanks then on taking can, the $XXX Hi. the bricks-and-mortar forma have EBITDA Maybe the

that forma. pro But before. had the post-COVID? $XXX there mean they number you’ve you to out could are think both $XXX million my I question XXXX I from million the pro forma bridge is, in

not the it’s assume I properties. So additional

that that just let tell I’ll is? Thanks. what me you well, is – So

George Papanier

Yes, that? Yes. you handle Steve, could

Steve Capp

look first the you what’s Yes. XXXX... Lance, at? number You’re looking at

Lance Vitanza

of going a run $XXX post-COVID to rate million $XXX The million.

Steve Capp

them historically, properties, we to had Listen, point all as – step more an that will. ‘XX impact Yes. if for the call, had pre-COVID post-COVID expectation. tooth, starting because you forma this is but of or on Lance, representation in a there used the if actual the extent that extent Included of the the will, in some so have and pro a initiatives off in we not the of was to of that CapEx point, the little the a some all management that about million, data, of we you $XXX of we talked them longer environment number that are those

a is that on we So hence number million well we mid-$XXXs this basis? post-COVID a is consider in the post-CapEx upside our the road. – commentary that, into world, to there portfolio, in of that Meaning of that believe, be kind middle

Lance Vitanza

is put And able it we I talked fair guess, traffic or also margin just distance being maintain you some you – was improvements to some – the to as of improvement between as about even usually back – it maybe the that George, about COVID? assume from being comes able maintaining that is talked to

Steve Capp

to we’ve Yes. as those. to up a about, it assuming ramp we the this of on the all George in comments necessarily – initiatives marketing on world, because, look, yes, to gotten commented pressure savings other his again, Well intend when labor some in relates earlier. Lance, post-COVID those we’re likely to some of carry forward. see starts spend. them, Not smarter cost and competitiveness But

Lance Vitanza

ever the in a then know Okay, that top of much company in terms partnerships of on of all interactive short seen acquisitions that such announced. time I so the and period just in you’ve don’t I’ve side. And thanks. a

mix acquisitions where additional at growth? that from pause to think We’ve on of time? think should or point you forward we here, the As right you’ve going this certainly do about part a we the expect of asset gotten got sort you or partnerships

George Papanier

earlier. on little touched a I that Lance, bit

platforms. continue So complementary look yes, and to to technologies we’re for going

betting. and into our ultimately, we that feel anything to company. So for continue on iGaming is bring sports going to efforts will complement And the

Lance Vitanza

ahead So there. full speed

George Papanier

Yes.

Lance Vitanza

piece, was that With the to great. to the Bet.Works first respect close expected quarter. Okay, initially in

sounds it’s the the end quarter. of like second Now it

And wondering or that Just anything the delay? either is given there from regulatory diligence concerned a be standpoint? why we should delay, a about

George Papanier

want handle you that? Marc, to do

Marc Crisafulli

absolutely, concern changed. at Nothing Yes. has Yes, no all.

We’re That’s just very process. the going through going smoothly. regulatory

And really now. they meet work a Indiana on. get approval we’re with, of quarter. but They just have the lot We’re been essentially That’s have of wonderful with right – Gaming of our for a appears has the focused Tropicana been once need to done. this the going they lumped place acquisition kind it things last Commission, in in Evansville. to only on we And Indiana

time. kind Gaming Commission June, both we’re Indiana at targeting same the to So the of have session considered

Lance Vitanza

Thanks Appreciate very it. much.

George Papanier

Lance. Thanks,

Operator

We time I turn additional questions. will reached or allotted have any back floor over for to Papanier the for closing now George remarks. the

George Papanier

Well, thank you, everyone.

impressive We’re today. And want looking an thank to our XXXX. forward into to joining continuing I you call for

Operator

XXXX This and earnings concludes today’s time, at disconnect wonderful lines call. Bally’s this fourth Please a have day. your quarter

Bally's (BALY) 4 Mar 212020 Q4 Earnings call transcript