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

Feb 11, 2020 • 08:00 am ET


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


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George Papanier

additional color around our recently announced partnership with IGT to jointly supply gaming machines to Rhode Island and our related investments aimed at enhancing the state gaming competitiveness [Indecipherable] the market. Steve will then provide more details about a number of recent developments in our corporate strategy and provide some initial thoughts on the outlook for 2020.

As we wrap up a very successful 2019, our first year as a public company, it's a good time to reflect briefly on all the steps we have taken to strategically and opportunistically grow and diversify the Company, all the while creating shareholder value and returning meaningful capital. With the completion of our acquisition of three casinos in Black Hawk, Colorado on January 23, we now own and operate seven casinos in four jurisdictions, with the two additional properties under contract in Kansas City and Vicksburg expected to close early in Q2 of this year, pending regulatory approval in Missouri. We've already received the required approvals in Mississippi.

Growing from a single casino operator as recently as 2014, the Company has embarked on a disciplined path of both organic and strategic and accretive M&A growth that has increased our revenues by almost 20% in just the last two years. We have no intention of slowing down either. Armed with one of, if not the strongest balance sheets in the industry, we believe that our overall plan remains well on track and see no change to the long-term value proposition we have laid out for our investors.

As Steve will cover in more detail later on the call, the last seven months saw the Company return nearly all of the $250 million allocated under the previously announced return of capital program, to shareholders. During 2019, the Company initiated a $0.10 quarterly dividend policy and bought back more than 20% of our shares outstanding since Q2, a tremendous return on capital.

I'm pleased with the Q4 preliminary earnings that we released yesterday afternoon. Using the midpoint of the preliminary range reported, the overall revenue and adjusted EBITDA for the quarter of approximately $130.4 million and $40.1 million represents increases of 17% and 8%, respectively over the same period last year. Of note, we are convinced that revenue at our Twin River Casino Hotel in Lincoln continues to stabilize from the impacts of new competition in the market, with the year-over-year decrease moderating in the quarter. Improved marketing efficiencies and reductions in our cost structure also favorably impacted the bottom line in Lincoln in Q4.

In addition, both our Tiverton and Dover properties continue to meet and exceed our already high expectations, and Biloxi turned in a solid quarter of growth on both the top and bottom line. The result was a quarter that we feel sets the stage for what we believe will be a robust 2020.

Diving into the quarterly results a bit more, starting in Lincoln. There, the story is one of revenue stabilization, cost containment and ongoing marketing initiatives to recapture market