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SEGMENT REPORTING | 6 Months Ended
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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) | 2022 |  | 2021 |  | 2022 |  | 2021
Revenue |  |  |  |  |  |  |
Casinos & Resorts | $ | 299,875 |  |  | $ | 262,188 |  |  | $ | 579,845 |  |  | $ | 451,621 |
North America Interactive | 18,050 |  |  | 5,545 |  |  | 33,277 |  |  | 8,378 |
International Interactive | 234,571 |  |  | — |  |  | 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 Interactive | 82,612 |  |  | — |  |  | 155,939 |  |  | — |
Other | (12,428) |  |  | (9,074) |  |  | (25,267) |  |  | (16,219) |
Total | 141,224 |  |  | 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-leaseback | 50,766 |  |  | 53,425 |  |  | 50,766 |  |  | 53,425 |
Other | (15,464) |  |  | (7,698) |  |  | (18,641) |  |  | (569) |
Income from operations | 85,319 |  |  | 80,532 |  |  | 107,839 |  |  | 110,006 |
Other income (expense) |  |  |  |  |  |  |
Interest expense, net of interest income | (45,828) |  |  | (21,299) |  |  | (91,513) |  |  | (41,573) |
Other | 25,444 |  |  | 36,690 |  |  | 44,923 |  |  | 11,955 |
Total other income (expense), net | (20,384) |  |  | 15,391 |  |  | (46,590) |  |  | (29,618) |
Income before income taxes | 64,935 |  |  | 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) | 2022 |  | 2021 |  | 2022 |  | 2021
Capital Expenditures |  |  |  |  |  |  |
Casinos & Resorts | $ | 55,808 |  |  | $ | 19,659 |  |  | $ | 104,381 |  |  | $ | 34,530 |
North America Interactive | 291 |  |  | 183 |  |  | 466 |  |  | 251 |
International Interactive | 5,426 |  |  | — |  |  | 11,108 |  |  | — |
Other | 40 |  |  | 616 |  |  | 126 |  |  | 1,004 |
Total | $ | 61,565 |  |  | $ | 20,458 |  |  | $ | 116,081 |  |  | $ | 35,785 |
(in thousands) | June 30, 2022 |  | December 31, 2021
Total Assets |  |  |
Casinos & Resorts | $ | 2,615,281 |  |  | $ | 2,437,249 |
North America Interactive | 576,256 |  |  | 528,634 |
International Interactive | 3,209,863 |  |  | 3,429,725 |
Other | (165,407) |  |  | 157,609 |
Total | $ | 6,235,993 |  |  | $ | 6,553,217 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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