Slide 1: Bally's Corporation Q1 2021 Earnings
Bally's Corporation Q1 2021 Earnings May 10, 2021
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures Bally's Corporation, may be referred to in this investor presentation as "the Company" or "Bally's." This presentation includes forward-looking statements within the meaning of the securities laws. Forward-looking statements are statements a
Slide 3: I. Company Overview
I. Company Overview
Slide 4: Bally's Vision
Bally's Vision To become the premier, truly integrated, omni-channel gaming company with a B2B2C business 4
Slide 5: II. Bally's Update
II. Bally's Update
Slide 6: Bally's Casino Overview
Bally's Casino Overview Bally's Corporation (“Bally's”) is a diversified, multi-property gaming company that continues to improve its scale and geographic diversification through strategic M&A Following the completion of pending acquisitions, Bally's will own and manage 16 casinos across 11 states(1
Slide 7: Bally's Casino COVID Impact
Bally's Casino COVID Impact Current Casino Properties(1) Current Status of Operations 8am-2am; 8am-4am, 24 hours Hours of Operations 24/7 24/7 24/7 weekends 8am-3am Sat; 24/7 24/7 24/7 24/7 closed Mon-Wed Occupancy Limit as % of 3,600 people(2) 850 people(2) 75% 60% 50% 100% 75% 50% 75% Building Cap
Slide 8: Bally's National Footprint and Market Access
Bally’s National Footprint and Market Access Strategic footprint in states that have generated ~82% of US sports betting revenues1 Key Stats 3rd Largest Footprint 2 for Online Sports Betting in the U.S. 13 Total States3 10 States with Live Sports Betting3 15 Casino Properties, plus 1 Racetrack and 1
Slide 9: Bally's Casino Portfolio Summary
Bally's Casino Portfolio Summary Casino Properties Total Segment Rhode Island Mid-Atlantic Southeast West Pending Casino Acquisitions Casino Kansas City Hard Rock Biloxi MontBleu Casino Resort & Spa Jumer's Casino & Hotel, Twin River Casino Hotel Dover Downs Casino Casino Properties Casino Vicksburg
Slide 10: Pending Acquisition - Gamesys
Pending Acquisition - Gamesys Strategic Rationale: Creating a Global, Vertically Integrated Gaming Operator For more information, visit: https://www.ballys.com/gamesys-documentation.htm 10
Slide 11: Bally's Overview - An Omni-Channel Gaming Provider
Bally's Overview - An Omni-Channel Gaming Provider Pending Acquired Acquired March 23, 2021 February 5, 2021 11
Slide 12: Pending Acquisitions - Casinos
Pending Acquisitions - Casinos Purchase Consideration Strategic Rationale • Secures position in Indiana gaming market at a value accretive multiple • Limits cash outflow and debt incurrence by developing a relationship with an $140 million purchase industry-leading REIT price • Further enhances mobi
Slide 13: Evansville further enhances geographic reach without additional leverage
Evansville further enhances geographic reach without additional leverage or significant cash outflows ▪ 1,145 slot machines ▪ 4 food and ▪ 41 table games (including 8 beverage outlets poker tables) ▪ 2 casino bars ▪ 338 hotel rooms ▪ 1 active sportsbook ▪ 46,265 square foot gaming ▪ 47,000 square fo
Slide 14: Jumer's acquisition provides access to growing gaming markets in Illinois
Jumer's acquisition provides access to growing gaming markets in Illinois with the potential to capitalize on lucrative sports betting and iGaming opportunities ▪ 870 slot machines ▪ 4 food and beverage ▪ 25 table games (including 6 outlets poker tables) ▪ 1 night club ▪ 205 hotel rooms ▪ 1 concert
Slide 15: Tropicana Las Vegas provides economical entry to Las Vegas Strip
Tropicana Las Vegas provides economical entry to Las Vegas Strip with long-term potential upside ▪ 50,000+ square foot casino ▪ 1,100 seat theater, 270 Located on the southeast corner of Tropicana Avenue and Las Vegas Boulevard ▪ 687 slot machines and 32 seat comedy club table games ▪ 100,000+ squar
Slide 16: III. Growth Track Record
III. Growth Track Record
Slide 17: Bally's Adjusted EBITDA by Property
Bally's Adjusted EBITDA by Property 2019 Actual, 2019 Aggregate Adjusted EBITDA 2019 Aggregate Adjusted Adjusted EBITDA by Property: Excludes Interactive Division 125 EBITDA 111 100 $300 75 ($ in millions) ($ in millions) 133 50 37 33 32 23 25 20 17 16 12 $167 6 5 5 — 2019 (25) (17) Lincoln Tiverton
Slide 18: Kansas City - Potential Redevelopment Rendering
Kansas City - Potential Redevelopment Rendering Note: The above rendering is a preliminary, illustrative example of the type of structural enhancements the Company may make to the property. Any actual changes to the property, if made, may be different from the example above. 18
Slide 19: Centre County, PA Development
Centre County, PA Development Company intends to jointly develop and manage a casino in Centre County, PA as majority partner • Category 4 licensed casino with up to 750 slot machines and 30 table games • Company retains 100% of economic interest of all retail sports betting, online sports betting a
Slide 20: Proposed New Partnership with IGT to Protect and Enhance State Gaming Revenues
Proposed New Partnership with IGT to Protect and Enhance State Gaming Revenues (Currently pending legislative approval) Proposed Agreement Yields a Number of Important Benefits for Bally's ■ VLTs – Bally's would be licensed as a technology provider and would manage approximately 23% of the VLTs at R
Slide 21: Twin River Casino Hotel - Planned Expansion and Renovation
Twin River Casino Hotel - Planned Expansion and Renovation Investment of $100 million to update Lincoln facility • 18-month renovation and expansion of Twin River Casino Hotel • 40,000 square foot addition to the first floor gaming space and 14,000 square foot spa in the hotel • Timing of capital ex
Slide 22: Twin River Casino Hotel - Planned Expansion and Renovation
Twin River Casino Hotel - Planned Expansion and Renovation 22
Slide 23: IV. Key Financial Highlights / Q1 2021 Results
IV. Key Financial Highlights / Q1 2021 Results
Slide 24: Strong Balance Sheet and Liquidity
Strong Balance Sheet and Liquidity Proforma Q1 2021 Cash on hand: $152 million Available borrowing capacity: $250 million Total liquidity: $402 million Liquidity after pending acquisitions(1): $223 million Face value of debt(2): $1,168 million (1) Proforma for $178.5 million million of cash due with
Slide 25: Continued Revenue Diversification
Continued Revenue Diversification M&A Strategy Focused on Accretive Growth Q1 2021 Q1 2020 1% 4% 2% 14% 26% 23% 52% 34% 25% 19% Rhode Island Mid-Atlantic Southeast West Other Rhode Island Mid-Atlantic Southeast West Other 25
Slide 26: Corporate Strategy Driving Adjusted EBITDA Diversification
Corporate Strategy Driving Adjusted EBITDA Diversification (1) Strong Early Performance of Recent Acquisitions Proving M&A Strategy Q1 2021 Q1 2020 1% 15% 20% 39% 10% 69% 43% 3% Rhode Island Mid-Atlantic Southeast West Rhode Island Mid-Atlantic Southeast West (Excludes "Other" operating segment) (1)
Slide 27: Appendix
Appendix
Slide 28: Reconciliation of Net Loss to Adjusted EBITDA
Reconciliation of Net Loss to Adjusted EBITDA Three Months Ended March 31, (in thousands, except percentages) 2021 2020 Revenue $ 192,266 $ 109,148 Net income (loss) $ (10,705) $ (8,878) Interest expense, net of interest income 20,274 11,373 (Benefit) provision for income taxes (4,830) (5,664) Depre
Slide 29: Reconciliation of Net Income (Loss) to Adjusted EBITDA by Segment
Reconciliation of Net Income (Loss) to Adjusted EBITDA by Segment Three Months Ended March 31, 2021 (in thousands, except percentages) Rhode Island Mid-Atlantic Southeast West Other Total Revenue $ 50,680 $ 48,354 $ 64,575 $ 26,142 $ 2,515 $ 192,266 Net income (loss) $ 12,738 $ (1,469) $ 22,934 $ 4,
Slide 30: Reconciliation of Net Income (Loss) to Adjusted EBITDA by Segment
Reconciliation of Net Income (Loss) to Adjusted EBITDA by Segment Three Months Ended March 31, 2020 (in thousands, except percentages) Rhode Island Mid-Atlantic Southeast West Other Total Revenue $ 56,279 $ 21,086 $ 25,482 $ 4,463 $ 1,838 $ 109,148 Net income (loss) 8,083 205 1,408 (5,996) (12,578)
Slide 31: Reconciliation of Net Income (Loss) to Adjusted EBITDA - Bally's Atlantic City
Reconciliation of Net Income (Loss) to Adjusted EBITDA - Bally's Atlantic City Q1 2021 (in millions) Bally's Atlantic City Net loss $ (5.7) Benefit for income taxes (2.5) Depreciation and amortization 0.5 Allocation of corporate costs 1.2 Adjusted EBITDA $ (6.5) (in millions, except Q1 2021 percenta
Slide 32: Reconciliation of Net Income to Adjusted EBITDA - Hard Rock Biloxi
Reconciliation of Net Income to Adjusted EBITDA - Hard Rock Biloxi Q1 2021 Q1 2020 (in millions, except percentages) Biloxi Net income $ 17.1 $ 1.4 Provision for income taxes 4.5 0.4 Depreciation and amortization 2.0 2.3 Gain on insurance recoveries, net of losses (10.7) — Allocation of corporate co
Slide 33: Reconciliation of Net Income to Adjusted EBITDA - Casino KC
Reconciliation of Net Income to Adjusted EBITDA - Casino KC Q1 2021 (in millions, except percentages) Casino KC Net income $ 4.6 Provision for income taxes 1.5 Depreciation and amortization 1.0 Allocation of corporate costs 1.0 Adjusted EBITDA $ 8.1 Revenue $ 21.1 Net Income margin 21.80 % Adjusted
Slide 34: Reconciliation of Net Income to Adjusted EBITDA - Dover Downs
Reconciliation of Net Income to Adjusted EBITDA - Dover Downs Q1 2021 Q1 2020 Q3 2020 (in millions, except percentages) Dover Downs Net income $ 4.3 $ 0.2 $ 3.6 Provision for income taxes 1.7 0.1 1.4 Depreciation and amortization 1.5 1.5 1.5 Allocation of corporate costs 1.1 1.0 0.9 Adjusted EBITDA
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