Twin River Worldwide Holdings, Inc (NYSE:TRWH) Q2 2020 Earnings Conference Call - Final Transcript

Aug 11, 2020 • 08:00 am ET

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Twin River Worldwide Holdings, Inc (NYSE:TRWH) Q2 2020 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

Thank you. [Operator Instructions] Our first question is coming from the line of Barry Jonas of Truist Securities.

Analyst
Barry Jonas

Good morning. The Chairman of the Board said in an interview that he's aiming for $500 million earnings a year. I think that's about two times your normalized LTM run rate once all the M&A closes. Just curious how long you think you could reach a target like that? And with that, maybe any broader commentary on the M&A environment out there right now?

Executive
George Papanier

Thanks, Barry, for the question and I'm going to hand this over to Steve.

Executive
Stephen H. Capp

Yeah. Thanks, George. Thanks, Barry. Hey, good morning. Thanks for the question. Look, Barry, I think the paraphrase on our Chairman's comment in that interview was not necessarily to be taken specifically but rather that it's to mean that we are not done building the company that we do, as just mentioned, maintain a balance sheet that's deliberately prepared for opportunity as well as liquidity in terms of preparedness. And that eyes wide open, we will continue to be vigilant and focused on accretion as we look at future opportunities. But as I just mentioned, we're not done building the company. There's a lot more to do here, and we are focused on getting there.

To your question, I don't want to go down a rabbit hole of how long it takes to double the size of the company even from here. It all depends on the environment, right, and valuation multiples in this market and the like. But suffice it to say, I think what he meant was we are very focused on continuing to grow the company and to do so accretively.

And Barry, as it relates to the M&A environment, I think your second question, look, it's very dynamic time out there. And I think -- obviously, the two keys to the M&A environment are, what are the -- what are the multiples that buyers and sellers are going to agree on in this very unpredictable environment and how well positioned is the company's balance sheet to actually execute on an acquisition. Those two things obviously drive M&A in a particularly relevant -- in this environment because of the uncertainty around revenues due to COVID on the one hand and then secondly there aren't that many companies really in a position to execute on M&A from a funding standpoint. So in that regard, we feel pretty good.

Executive
George Papanier

Thanks, Steve. This is George. I just want to add to that. We've said this previously, we're going to just continue our disciplined diversification strategy. We're going to take an opportunistic approach and continue to evaluate opportunities with a strategic element to it. We like the idea of continuing to enter into new sports betting markets, especially with the potential for iGaming license. And in the meantime, we're going to focus on the assets we just acquired and digest that through integration into our portfolio.

Analyst
Barry Jonas

Great. I really appreciate all that color. That's really helpful.