Mon, May 12, 9:32 PM (31 days ago)
**Bally’s Corporation (BALY) Q1 2025 Financial Summary** **Financial Health & Performance Metrics:** - **Revenue:** $368.7 million (Q1 2025 Successor), $220.5 million (Q1 2025 Predecessor), $618.5 million (Q1 2024 Predecessor). - **Net Income (Loss):** $34.5 million (Q1 2025 Successor), -$51.0 million (Q1 2025 Predecessor), -$173.9 million (Q1 2024 Predecessor). - **Earnings per Share (EPS):** $0.57 (Q1 2025 Successor), -$1.05 (Q1 2025 Predecessor), -$3.61 (Q1 2024 Predecessor). - **Cash Flow from Operations:** $42.0 million (Q1 2025 Successor), -$80.2 million (Q1 2025 Predecessor), -$7.9 million (Q1 2024 Predecessor). - **Cash Flow from Investing Activities:** -$20.8 million (Q1 2025 Successor), -$17.7 million (Q1 2025 Predecessor), -$43.4 million (Q1 2024 Predecessor). - **Cash Flow from Financing Activities:** $14.1 million (Q1 2025 Successor), $98.0 million (Q1 2025 Predecessor), $51.3 million (Q1 2024 Predecessor). - **Adjusted EBITDA:** $83.3 million (Q1 2025 Successor), $24.4 million (Q1 2025 Predecessor), $116.5 million (Q1 2024 Predecessor). - **Adjusted EBITDAR:** $107.7 million (Q1 2025 Successor), $40.1 million (Q1 2025 Predecessor), $148.1 million (Q1 2024 Predecessor). **Quarterly Performance Discussion:** - **Revenue Trends:** Total revenue decreased by 5% or $29.3 million compared to Q1 2024, primarily due to the sale of portions of the international interactive business in Asia and severe weather conditions. - **Operating Expenses:** Gaming and non-gaming expenses decreased by 6% or $17.1 million, driven by lower revenues. - **General and Administrative (G&A) Expenses:** Increased by 11% or $26.4 million, mainly due to merger-related costs. - **Depreciation and Amortization:** Decreased by 56% or $89.9 million, primarily due to accelerated depreciation recorded in Q1 2024. - **Interest Expense:** Increased due to higher interest rates on borrowings. - **Tax Provision:** Benefit of $97.1 million in Q1 2025 Successor, provision of $0.7 million in Q1 2025 Predecessor, and $31.4 million in Q1 2024 Predecessor. **Trends & Uncertainties:** - **Macroeconomic Factors:** Global economic challenges, including public health crises, conflicts, inflation, and supply-chain disruptions, impact discretionary consumer spending. - **Regulatory Restrictions:** Compliance with regulatory agreements, including debt covenants and leverage ratios. - **Integration and Growth:** Ongoing integration of acquired assets and strategic growth projects, such as Bally’s Chicago. **Future Operations Impact:** - **Capital Expenditures:** Continued investment in casino properties and interactive gaming businesses. - **Debt and Lease Obligations:** Management of long-term debt and lease payments, with compliance with covenants. - **Sponsorship and Technology Commitments:** Ongoing obligations related to sponsorship agreements and technology partnerships. **Segment Performance:** - **Casinos & Resorts:** Revenue up 3% due to Queen's contribution, offset by weather impacts. - **International Interactive:** Revenue down 22% due to business sales. - **North America Interactive:** Revenue relatively flat year-over-year. **Liquidity and Capital Resources:** - **Cash and Cash Equivalents:** $264.7 million (Q1 2025 Successor), $230.9 million (Q1 2025 Predecessor), $310.9 million (Q1 2024 Predecessor). - **Revolving Credit Facility:** Availability for operational and capital expenditure needs. - **Capital Return Program:** $95.5 million available for share repurchases and dividends, subject to regulatory and debt agreements. **Disclosure Controls and Procedures:** - **Material Weakness:** Ongoing remediation of a material weakness in internal controls over financial reporting in the International Interactive segment. - **ERP System Implementation:** New ERP system to enhance financial information flow and control. **Forward-Looking Statements:** - **Risks:** Unexpected costs, integration challenges, regulatory compliance, economic volatility, and competitive pressures in the gaming industry. - **Strategic Initiatives:** Focus on interactive gaming, casino enhancements, and strategic acquisitions to drive growth.