TLDR Bally’s second quarter revenue grew 20% to $792.2 million The company says it needs new financing to meet liquidity and debt requirements Bally’s included a going concern warning in its latest filing Cash on hand fell from $906.7 million to $487.8 million over six months Casino projects in Chicago, New York and Las Vegas are adding to financing pressure
Bally’s Corporation reported revenue growth in the second quarter. At the same time, the company warned it may not meet its liquidity and debt requirements without new financing.
Revenue for the three months ended June 30 came in at $792.2 million. That is a 20% increase from the same period last year.
This marks the second straight quarter Bally’s filed its earnings late. The company also skipped holding an earnings call.
In the filing, management said Bally’s needs new financing to stay within the terms of its revolving credit facility. Without it, the company expects to fall short of required liquidity levels within the next 12 months.
Bally’s said it is exploring several options to raise money. These include selling assets, issuing equity and taking on new debt.
The company also signed a non-binding term sheet in July for a loan tied to its Bronx casino project. It cautioned that the financing may not close.
This comes after Bally’s completed refinancing steps earlier this year. That included opening a new $1.1 billion credit facility and repaying a $1.47 billion term loan.
Bally’s stock fell from $13.99 to $12.85 within a half hour of the earnings release on Friday.
Cash Use Raises Concerns
Bally’s used $265.9 million in operating cash during the first six months of the year. That compares to $21.4 million during the same period last year.
The company pointed to $98.9 million in upfront license