Twin River Worldwide Holdings, Inc (NYSE:TRWH) Q3 2019 Earnings Conference Call - Final Transcript

Nov 14, 2019 • 05:00 pm ET

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Twin River Worldwide Holdings, Inc (NYSE:TRWH) Q3 2019 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

[Operator Instructions] The first question comes from John DeCree of Union Gaming. Please go ahead. Your line is open.

Analyst
John DeCree

Hi, everyone. Thanks for taking my questions and all the color thus far.

Executive
George Papanier

Hi, John.

Analyst
John DeCree

Steve, George, I wanted to talk about the I guess operating leverage or margin in Rhode Islands. I think everyone's pretty well aware of the revenue trends the state reports those. But when we saw like the kind of sequential margin decline obviously some fixed cost there that you've talked about some labor adjustments. Wondering if you could elaborate on some of those cost initiatives, what you think about [Technical Issues]

Operator
Operator

John DeCree. Your line is still open.

Analyst
John DeCree

Hi, if you guys not hear the question? I apologize.

Executive
George Papanier

You got cut off halfway, John, sorry. Could you repeat?

Analyst
John DeCree

Sure. Just, Steve, could you give us a little bit of additional color on some of the efficiencies you're looking to harvest in Lincoln, given the new level of gaming volumes and if we should expect kind of a recovery in the overall margin over the next couple of quarters or if we need to see some gaming volumes come back before we see some material margin improvement?

Executive
Stephen H. Capp

Well, I think it's two ways spree, John, hard to get all the margin back with cost cuts on a business that's got a pretty significant fixed cost component to it. So we think it's very much hand in glove, if you will. With the modest recoveries we've seen so far in September and October, we certainly expect that that's a trend that we think will continue as Northeast marketing, excuse me, Northeast gaming market settles out and digest the relatively new competition within the last 18 months or so. So that's sort of relatively rising tide [Technical Issues] pretty focused on that. So we've had some labor cuts. Those have been announced a long away. Those have been widely publicized. As mentioned in the call, those were imposed along the way in Q3. So those will have relatively more impact in Q4 when they were applicable the entire quarter than the Q3 and so that will matter. Recovering revenues, if slowly and the quarterization, if you will, of some of our initiatives will come through more in Q4 and beyond. George, what else would you say?

Executive
George Papanier

I mean, Steve touched on it that the full effect of the cuts from the third quarter will take place in the fourth quarter because we initiated those cuts effectively mid-August. So we're going to continue to create efficiencies through 2020 that's just part of -- that's just part of our direction that we're providing to the property. I just I think the point I want to add is just this, it's a crowded market that we're very effective competing in, and we're going to stay focused on profitable marketing, which is a big part of what we're implementing after we took a wait and see approach, and we're going to continue to provide