XML 36 R25.htm IDEA: XBRL DOCUMENT v3.22.2
SEGMENT REPORTING
 6 Months Ended
Jun. 30, 2022
Segment Reporting [Abstract]  
SEGMENT REPORTING SEGMENT REPORTING
During the fourth quarter of 2021, the Company updated its operating and reportable segments to better align with its strategic growth initiatives in light of recent acquisitions. The growth and diversification achieved through the Company’s recent acquisitions resulted in a change in the way the Company’s chief operating decision maker makes operating decisions, assesses the performance of the business and allocates resources. As a result of this realignment, the Company determined it had three operating and reportable segments: Casinos & Resorts, North America Interactive and International Interactive. The “Other” category includes interest expense for the Company and certain unallocated corporate operating expenses and other adjustments, including eliminations of transactions among segments to reconcile to the Company’s consolidated results including, among other expenses, share-based compensation, merger and acquisition costs and certain non-recurring charges. During the first quarter of 2022 as a result of the segment realignment noted above, the Company changed its methodology for allocating certain corporate operating expenses within advertising, general and administrative expense previously reported in “Other” to directly apply such costs to the segment supported. The prior year results presented below were reclassified to conform to the new segment presentation.

The Company’s three reportable segments as of June 30, 2022 are:

Casinos & Resorts - Bally’s Twin River, Bally’s Tiverton, Bally’s Dover, Bally’s Atlantic City, Bally’s Evansville, Hard Rock Biloxi, Bally’s Vicksburg, Bally’s Kansas City, Bally’s Black Hawk, Bally’s Shreveport, Bally’s Lake Tahoe, Bally’s Quad Cities and Bally’s Arapahoe Park.

North America Interactive - Bally’s Interactive, SportCaller, MKF, AVP, Telescope, Degree 53, Live at the Bike, Gamesys’ North American operations and online and mobile sports betting operations.

International Interactive - Gamesys’ European and Asian operations.

The Company is currently evaluating the impact of its pending acquisition of Tropicana Las Vegas and the development of a casino in Centre City, Pennsylvania on its operating and reportable segments; however, it is expected that they will be included within the Casinos & Resorts segment.
As of June 30, 2022, the Company’s operations were predominately in the US, Europe and Asia with a less substantive footprint in other countries world-wide. For geographical reporting purposes, revenue generated outside of the US has been aggregated into the International Interactive reporting segment, and consists primarily of revenue from the UK and Japan. The Company does not have any revenues from any individual customers that exceed 10% of total reported revenues.

The Company utilizes Adjusted EBITDA (defined below) as a measure of its performance. Management believes Adjusted EBITDA is representative of its ongoing business operations including its ability to service debt and to fund capital expenditures, acquisitions and operations, in addition to it being a commonly used measure of performance in the gaming industry and used by industry analysts to evaluate operations and operating performance.

The following tables set forth certain operating data for the Company’s three reportable segments. The Other category is included in the following tables in order to reconcile the segment information to the Company’s condensed consolidated financial statements.
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2022202120222021
Revenue
Casinos & Resorts$299,875 $262,188 $579,845 $451,621 
North America Interactive18,050 5,545 33,277 8,378 
International Interactive234,571 — 487,645 — 
Total$552,496 $267,733 $1,100,767 $459,999 
Adjusted EBITDA(1)
Casinos & Resorts$88,001 $91,806 $161,791 $149,426 
North America Interactive(16,961)93 (36,286)1,490 
International Interactive82,612 — 155,939 — 
Other(12,428)(9,074)(25,267)(16,219)
Total141,224 82,825 256,177 134,697 
Operating income (expense)
Depreciation and amortization(74,773)(25,717)(153,654)(38,503)
Acquisition, integration and restructuring(10,112)(18,402)(15,392)(30,660)
Share-based compensation(6,322)(3,901)(11,417)(8,384)
Gain on sale-leaseback50,766 53,425 50,766 53,425 
Other(15,464)(7,698)(18,641)(569)
Income from operations85,319 80,532 107,839 110,006 
Other income (expense)
Interest expense, net of interest income(45,828)(21,299)(91,513)(41,573)
Other25,444 36,690 44,923 11,955 
Total other income (expense), net(20,384)15,391 (46,590)(29,618)
Income before income taxes64,935 95,923 61,249 80,388 
(Provision) benefit for income taxes(5,434)(26,981)141 (22,151)
Net income
$59,501 $68,942 $61,390 $58,237 
__________________________________
(1)    Adjusted EBITDA is defined as earnings, or loss, for the Company before interest expense, net of interest income, provision (benefit) for income taxes, depreciation and amortization, non-operating (income) expense, acquisition, integration and restructuring expense, share-based compensation, and certain other gains or losses as well as, when presented for our reporting segments, an adjustment related to the allocation of corporate cost among segments. Adjusted EBITDA should not be construed as an alternative to GAAP net income, its most directly comparable GAAP measure, nor is it directly comparable to similarly titled measures presented by other companies.
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2022202120222021
Capital Expenditures
Casinos & Resorts$55,808 $19,659 $104,381 $34,530 
North America Interactive291 183 466 251 
International Interactive5,426 — 11,108 — 
Other40 616 126 1,004 
Total$61,565 $20,458 $116,081 $35,785 
(in thousands)June 30, 2022December 31, 2021
Total Assets
Casinos & Resorts$2,615,281 $2,437,249 
North America Interactive576,256 528,634 
International Interactive3,209,863 3,429,725 
Other(165,407)157,609 
Total$6,235,993 $6,553,217