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

Feb 11, 2020 • 08:00 am ET

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

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Q & A
Operator
Operator

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

Analyst
Brad Boyer

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.

Executive
George Papanier

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.

Analyst
Brad Boyer

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?

Executive
Marc Crisafulli

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.

Analyst
Brad Boyer

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?

Executive
Marc Crisafulli

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

Analyst
Brad Boyer

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