To say the least, Bally Technologies far from boring

A few months ago I called Bally Technologies boring.

At the time, its chief rivals in the slot machine manufacturing sector were embroiled in a heated proxy fight (International Game Technology) or were sold (WMS Industries).

Las Vegas-based Bally is no longer boring.

The company shattered internal financial records in fiscal year 2013, which ended June 30, growing profits 41 percent while reporting nearly $1 billion in overall revenue , an increase of 13 percent.

Coupled with the company’s July announcement that it was buying gaming equipment rival SHFL Entertainment for $1.3 billion, Wall Street analysts consider Bally the top-rated gaming equipment provider in the industry.

“We are confident the strength and building momentum inherent in Bally’s core business, coupled with the anticipated benefits of the pending SHFL acquisition, should allow Bally shares to outperform the broader market over the next 12 months,” Stifel Nicolaus Capital Markets gaming analyst Steven Wieczynski told investors.

Union Gaming Group Managing Director Bill Lerner said he views Bally differently than other gaming equipment manufacturers.

Results from Bally’s systems business, which grew 32 percent in the fourth quarter, provide a unique market for the company. Bally officials said the pipeline of management systems have supplanted similar products offered by rival companies in several markets, including Canada and South Africa.

Lerner said revenue and profits from systems should be valued differently than the financials reported from a traditional slot machine business.

“We value it on a free cash flow basis like other companies in its tech services group that provide software, hardware and systems, such as IBM, Oracle, Hewlett-Packard and Dell,” Lerner said.

Additional value in the company will be unlocked, Lerner said, once the SHFL deal is completed.

Bally has a thriving slot machine business to go along with its systems division, which provides slot machine management and bonusing capabilities to casinos.

SHFL will give Bally several table game management products and systems, a long line of proprietary table games, several electronic table game brands, and add to the company’s growing interactive business.

Bally told investors it expects to achieve $30 million a year in annual savings once the two companies are merged.

“While it will be some time before the SHFL deal closes, we are comfortable with the merits of this transaction as it makes Bally the most full-service supplier in the gaming equipment business,” Credit Suisse gaming analyst Joel Simkins told investors.

The much-anticipated Global Gaming Expo is a month away. During a quarterly conference call with analysts, Bally executives hinted about what the company will unveil on the floor of the Sands Expo.

The company said it will launch the slot machine “Pink Ladies,” a follow-up to the “Grease” theme.

Also, Bally is in the process of shipping a second version of the Michael Jackson King of Pop slot machine to casinos.

The new game, titled “Wanna Be Startin’ Somethin’,” features new bonuses and five of Michael Jackson’s most popular songs: “Bad,” “Billie Jean,” “Don’t Stop ‘Til You Get Enough,” “The Way You Make Me Feel” and “Wanna Be Startin’ Somethin’.”

Bally CEO Ramesh Srinivasan also told analysts the company was pleased with the success of its NASCAR-themed slot machine, but noted the brand doesn’t have global appeal like Michael Jackson. Still, Bally is producing a second NASCAR game.

The new machines are part of Bally’s wide area progressive network of games, which experienced a 38 percent increase in its installed base during fiscal 2013.

Eilers Research gaming analyst Todd Eilers said he expects Bally to exceed its fiscal year 2014 guidance to Wall Street of earnings per share from $3.70 to $4.05. The company reported earnings per share of $3.45 in fiscal 2013.

“We continue to believe that Bally will likely exceed the upper end of is range if current business fundamentals continue,” Eilers said.

In other words, Bally is far from boring.

Opendoor isn't the typical house flipping company
Unlike most house flippers, the company aims to make money from transaction costs rather than from selling homes for more than their purchase price.
The Venetian gondoliers sing Italian songs
Gondolier Marciano sings a the classic Italian song "Volare" as he leads guests through the canals of The Venetian in Las Vegas. (K.M. Cannon/Las Vegas Review-Journal)
Building In Logandale
Texas homebuilder D.R. Horton bought 43 lots in rural Logandale. (Eli Segall/Las Vegas Review-Journal)
Indoor farming in Southern Nevada
Experts discuss Nevada's indoor farming industry. (Bailey Schulz/Las Vegas Review-Journal)
Former Fontainebleau could have become a Waldorf Astoria
Months after developer Steve Witkoff bought the Fontainebleau last summer, he unveiled plans to turn the mothballed hotel into a Marriott-managed resort called The Drew. But if Richard “Boz” Bosworth’s plans didn’t fall through, the north Las Vegas Strip tower could have become a Waldorf Astoria with several floors of timeshare units. (Eli Segall/Las Vegas Review-Journal)
LVCVA CEO Rossi Ralenkotter announces plans to retire
Rossi Ralenkotter, CEO of the LVCVA, on Tuesday confirmed a Las Vegas Review-Journal report that he is preparing to retire. Richard N. Velotta/ Las Vegas Review-Journal
Cousins Maine Lobster to open inside 2 Las Vegas Smith’s stores
Cousins Maine Lobster food truck company will open inside Las Vegas’ two newest Smith’s at Skye Canyon Park Drive and U.S. Highway 95, and at Warm Springs Road and Durango Drive. Cousins currently sells outside some Las Vegas Smith’s stores and at Fremont Street and Las Vegas Boulevard. (K.M. Cannon/Las Vegas Review-Journal)
Las Vegas home prices to continue to rise, expert says
Lawrence Yun, chief economist at the National Association of Realtors, gives homebuyers a pulse on the Las Vegas housing market. (Eli Segall/Las Vegas Review-Journal)
NV Energy announces clean energy investment
The company is planning to add six solar projects in Nevada, along with the state's first major battery energy storage capacity. Bailey Schulz/Las Vegas Review-Journal
3 Mario Batali restaurants on Las Vegas Strip to close
Days after new sexual misconduct allegations were made against celebrity chef Mario Batali, his company announced Friday that it will close its three Las Vegas restaurants July 27. Employees of Carnevino Italian Steakhouse, B&B Ristorante and Otto Enoteca e Pizzeria, all located in The Venetian and Palazzo resorts, were informed of the decision Friday morning. Bastianich is scheduled to visit the restaurants Friday to speak to employees about the next two months of operation as well as how the company plans to help them transition to new positions.
Nevada has its first cybersecurity apprenticeship program
The Learning Center education company in Las Vegas has launched the first apprenticeship program for cybersecurity in Nevada. It was approved by the State Apprenticeship Council on May 15. (K.M. Cannon/Las Vegas Review-Journal)
Las Vegas union members voting to authorize the right to strike
Thousands of Las Vegas union members voting Tuesday morning to authorize the right to strike. A “yes” vote would give the union negotiating committee the power to call a strike anytime after June 1 at the resorts that fail to reach an agreement. (Todd Prince/Las Vegas Review-Journal)
Small businesses struggle to find qualified candidates
A 2018 survey found that over two-thirds of small businesses in Nevada find it somewhat to very difficult to recruit qualified candidates. Bailey Schulz/Las Vegas Review-Journal
Nevada secretary of state website offers little protection against fraudulent business filings
Property developer Andy Pham tells how control of his business was easily seized by another person using the secretary of state website.
Caesars may be going solo in its marijuana policy
Several Southern Nevada casino companies aren’t following Caesars Entertainment’s lead on marijuana testing.
How much is the Lucky Dragon worth?
Less than a year-and-a-half after it opened, the Lucky Dragon was in bankruptcy.
Gyms and discount stores take over empty retail spaces
Grocery stores used to draw people to shopping centers. But many large retail spaces have been vacant since 2008. Discount stores like goodwill and gyms like EOS Fitness are filling those empty spaces, and helping to draw shoppers back in. K.M. Cannon/Las Vegas Review-Journal
Funding source of Las Vegas stadium for the Raiders is sound, expert says
The stadium is funded in part by $750 million of room taxes, the biggest such tax subsidy ever for a professional sports stadium. Robert Lang, executive director of Brookings Mountain West and The Lincy Institute at UNLV, says that is a good use of public funds. (Richard Velotta/Las Vegas Review-Journal)
Las Vegas needs light rail, expert says
Robert Lang, executive director of Brookings Mountain West and the Lincy Institute said he is afraid of a "congestion mobility crisis." Las Vegas needs a light rail system, he said, to accommodate the city's growing number of attractions. (Richard Velotta/Las Vegas Review-Journal)
Three takeaways from Wynn Resorts' Earnings Call
Matt Maddox came out swinging in his first earnings conference call as Wynn Resorts chief executive officer, boasting of record Las Vegas quarterly revenues and applicants lining up for work.
Star Wars VR Comes to Las Vegas
Sneak peak at the new "Star Wars: Secrets of the Empire" VR experience at the Grand Canal Shoppes.
Elaine Wynn continues her fight to change Wynn Resorts board
Elaine Wynn, the largest shareholder of Wynn Resorts Ltd., is seeking to kick a friend of her ex-husband Steve Wynn off the company’s board of directors. (Todd Prince/Las Vegas Review-Journal)
Zillow is getting into house flipping in Las Vegas
Las Vegas Review-Journal real estate reporter Eli Segall says flipping houses has waned in popularity after the housing bubble burst.
Ellis Island Buys Mt. Charleston Lodge
Ellis Island, which operates a casino, brewery and hotel just off the Strip, purchased the Mt. Charleston Lodge in early April.
Casinos to be penalized for allowing drug-impaired customers to gamble
Nevada Gaming Commission Chairman Tony Alamo talks about an amendment making casinos subject to the same disciplinary standards of preventing people to gamble if impaired by drugs as they are for letting them play while intoxicated by alcohol.
Terrible Herbst to open large travel center in Southern Nevada
The 50,000-square-foot commercial travel center will include 96 fuel pumps and the third White Castle restaurant in Southern Nevada. Wade Tyler Millward reports.
Art Bell’s Top 10 Shows
A selection of radio host Art Bell’s most popular shows.
Hooters owner talks about room upgrades at his hotel-casino
George Ruff, founder and senior principal of Trinity Hotel Investors L.L.C., owner of Hooters Hotel and Casino in Las Vegas, talks about recent room upgrades at the hotel. K.M. Cannon/Las Vegas Review-Journal
Passengers Discuss Allegiant Air
Allegiant Air passengers voice their views on the airline at McCarran International Airport on April 16, 2018. (Bailey Schulz/Las Vegas Review-Journal)
Longtime Las Vegas attorney John Momot dies at age 74
Criminal defense attorney John Momot, who represented mob figures and even played himself in the movie “Casino,” has died.
News Headlines
Home Front Page Footer Listing
You May Like

You May Like