Twin River Worldwide Holdings, Inc (NYSE:TRWH) Q4 2019 Earnings Conference Call - Final Transcript

[Operator Instructions] And your first question here comes from the line of Brad Boyer with Stifel. Please go ahead. Your line is now open.

Yeah. Thanks, guys. And appreciate you guys providing all the color. Very helpful. First question is just around the margins in Rhode Island. Obviously came in a little bit better than what I was looking for and I think some others are looking for. The question would be, I guess where do we go from here? I mean, do we kind of view the level achieved in the quarter as sort of a sustainable level going forward? Do you still believe that you have more -- on the cost mitigation side to maybe drive that margin slightly higher, irrespective of kind of what you see on the revenue side? Any color there would be helpful.

Yeah, Brad. This is George. So I think Q4 is a good representation of kind of where we're at more from a base perspective. We still have opportunity on our cost containment efforts, and we're going to continue to do that throughout 2020. Just so you know, if you kind of rank the quarters, the fourth quarter is, performance-wise, historically, has been about the third best quarter. And the second quarter is typically the best quarter and the first quarter is typically the second-best quarter. And then we get into the summer months just because of the ability to travel better, typically we start to flatten out. But so from -- I think the fourth quarter is a really good base representation of where we're at but where we can grow from.

Okay. That's helpful. And then second question just for Marc. I appreciate the color around the pending Rhode Island situation. I guess could you point to any sort of milestones that we should potentially keep an eye on here as this thing sort of weaves its way through the legislature in Rhode Island?

Yeah. So, thanks for the question, Brad. The basic process is if you break it down into its parts, the legislation needs to be introduced. There would then be committee hearings likely both in Senate and House [Indecipherable] like they did last year. And then you get to a vote, and after a vote, if it's approved, we'll turn to the administration to try and effectuate all of the contracts and amendments.

So, as I indicated, we're hopeful that this whole process is resolved by the end of June. We expect it to be moving in the current week, at least to hit some of those initial steps, and then we kind of just have to see where the process goes.

Okay. And could you just remind me for that initial 23%, is that contingent upon the state blessing this thing or can you guys execute that irrespective of the outcome of the broader legislation?

No. So everything is contingent on this overall package being approved.

Okay, helpful. And then lastly, Steve, I'm not going to let