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Twin River Reports Fourth Quarter And Full Year 2019 Results

03/03/2020
PRELIMINARY RESULTS PREVIOUSLY REPORTED ARE CONFIRMED

PROVIDENCE, R.I., March 3, 2020 /PRNewswire/ -- Twin River Worldwide Holdings, Inc. (NYSE: TRWH) (the "Company", "Twin River" or "TRWH") today reported its full financial results of operations for the fourth quarter and year ended December 31, 2019.

Fourth Quarter 2019 Compared to the Fourth Quarter 2018

  • Revenue increased 17.0% to $130.4 million
  • Gross gaming revenue increased 12.9% to $207.2 million(1)
  • Net income decreased 39.7% to $13.4 million
  • Adjusted EBITDA increased 8.7% to $40.2 million(1)

 

Summary of Financial Results



Quarter Ended December 31,




Year Ended
December 31,



(in thousands, except per share data)

2019


2018


Change


2019


2018


Change

Revenue

$

130,419



$

111,422



17.0

%


$

523,577



$

437,537



19.7

%

Income from operations

$

29,022



$

34,697



(16.4)

%


$

114,626



$

120,649



(5.0)

%

Income from operations margin

22.25

%


31.14

%




21.89

%


27.57

%



Net income

$

13,355



$

22,130



(39.7)

%


$

55,130



$

71,438



(22.8)

%

Net income margin

10.24

%


19.86

%




10.53

%


16.33

%



Adjusted EBITDA(1)

$

40,212



$

36,980



8.7

%


$

167,150



$

165,697



0.9

%

Adjusted EBITDA Margin(1)

30.83

%


33.19

%




31.92

%


37.87

%



Earnings per diluted share ("EPS")

$

0.40



$

0.63



(36.5)

%


$

1.46



$

1.87



(21.9)

%

Adjusted EPS(1)

$

0.42



$

0.78



(46.2)

%


$

1.81



$

2.34



(22.6)

%























 (1) Refer to tables in this press release for a reconciliation of these non-GAAP financial measures to the most directly comparable measure calculated in accordance with GAAP.

 

Fourth Quarter 2019 Results

Revenue for the fourth quarter of 2019 increased 17.0% to $130.4 million from $111.4 million in the fourth quarter of 2018. This increase was principally driven by the effects of the acquisition of Dover Downs Hotel & Casino ("Dover Downs"), which continued to exceed expectations contributing $27.6 million of revenue to the Company's results. New competition in the New England market, and the associated increases in marketing and promotional activity, continued to negatively impact revenue in the fourth quarter at the Company's Twin River Casino Hotel ("Lincoln"), however, the Company noted that the impacts have moderated and revenue has showed signs of stabilization. Tiverton Casino Hotel ("Tiverton"), which opened in September 2018, continued to demonstrate marked resilience in the face of the new regional competition mentioned above. Also, overall performance at Hard Rock Hotel & Casino Biloxi ("Hard Rock Biloxi") remained strong.

Overall gaming revenue increased $4.7 million, or 5.6%, to $88.5 million, food and beverage revenue increased $7.1 million, or 56.7%, to $19.5 million, and hotel revenue increased $4.5 million, or 78.9%, to $10.2 million, in each case, in the fourth quarter of 2019 compared to the same period in 2018.

Income from operations in the fourth quarter of 2019 decreased $5.7 million, or 16.4%, to $29.0 million compared to $34.7 million for the same period last year. These results were unfavorably impacted by an increase in share-based compensation expense of $9.8 million as $1.0 million of expense was recorded in the fourth quarter of 2019 compared to a benefit of $8.8 million in the prior year, driven by a reduction in the fair value of outstanding liability classified awards as well the timing of grants and the mix of liability classified awards creating expense volatility in 2018, and a decrease in income from operations of $2.2 million in the Rhode Island segment primarily due to the reduction in revenue as a result of new competition in the market noted above, partially offset by cost efficiency measures, particularly in Lincoln.

Partially offsetting these increases in operating expenses was income from operations from Dover Downs, which was acquired in the first quarter of 2019, of $3.4 million, a reduction in acquisition, integration and restructuring expense of $1.4 million year-over-year and a gain related to insurance recovery proceeds received for a damaged roof at the Company's Arapahoe Park for $1.2 million recorded in the fourth quarter of 2019.

Interest expense for the fourth quarter of 2019 increased $4.6 million to $11.4 million compared to the same period last year, as, on May 10, 2019, the Company extended its balance sheet by entering into a new credit facility and issuing $400 million aggregate principal amount of senior notes.

Reflecting the items described above, net income decreased $8.8 million, or 39.7%, to $13.4 million for the fourth quarter of 2019 compared to the same period last year. Adjusted EBITDA for the fourth quarter of 2019 was $40.2 million, an increase of $3.2 million, or 8.7%, from $37.0 million in the same period in 2018.

Diluted EPS for the fourth quarter was $0.40 per share compared to $0.63 in the same period last year. The decrease in diluted EPS was a result of the above-described factors. The Company's repurchase of shares of its common stock as described below also meaningfully impacted the reported earnings per share. Adjusted EPS was $0.42 for the fourth quarter of 2019 compared to $0.78 for the fourth quarter of 2018.

Balance Sheet and Liquidity

The Company had $182.6 million in cash and cash equivalents, excluding restricted cash, at December 31, 2019. As previously announced, during the second quarter of 2019 the Company completed a debt financing with a $300 million term loan, $250 million revolving credit facility and $400 million of senior unsecured notes. Outstanding indebtedness at the end of the fourth quarter of 2019, before the impact of $12.9 million of unamortized deferred financing fees and $2.0 million of unamortized original issue discount, totaled $698.5 million.

During the fourth quarter of 2019, the Company continued to use proceeds from its debt refinancing for shareholder return efforts, which included the payment of a cash dividend of $0.10 per share of common stock ("Dividend") on October 25, 2019, for total cash dividends of $7.6 million returned to shareholders during 2019. During the fourth quarter, the Company repurchased 2,486,668 shares of its common stock for approximately $60.0 million, for a total of 9,063,350 shares repurchased, for approximately $222.7 million for 2019, inclusive of 2,504,971 shares repurchased under a modified Dutch auction tender offer ("Offer") on July 26, 2019. The Dividend, Offer and share repurchases were components of the Company's previously announced capital return program and were funded with cash on hand. As of December 31, 2019, the Company had approximately $19.7 million available for use under its capital return program.

On February 10, 2020 the Company announced that its Board of Directors approved an increase in its previously announced capital return program of $100 million, allowing for the continuation of opportunistic stock repurchases and other potential returns of capital. Prior to this increase, the Company had approximately $6.2 million remaining available under the $250 million program as of January 31, 2020.

As previously noted, under the return of capital plan, stock repurchases may be effected in various ways, which could include open-market or private repurchase transactions, accelerated stock repurchase programs, tender offers or other transactions. The amount, timing and terms of any return of capital transaction will be determined based on prevailing market conditions and other factors. Twin River expects to fund any additional share repurchases and dividends from its existing capital resources. There is no fixed time period to complete stock repurchases.

Quarterly Dividend

On February 24, 2020, the Company's Board of Directors declared a cash dividend of $0.10 per common share payable on March 20, 2020 to all shareholders of record as of the close of business on March 6, 2020.

2020 Earnings Guidance

The Company is reaffirming the guidance for 2020 it previously provided on February 10, 2010. The Company estimates Adjusted EBITDA for 2020 to be approximately $180 million, an increase of 8% over the same period in 2019. The Company anticipates that its annualized run-rate for Adjusted EBITDA coming out of 2020 will be approximately $190 million. The Company's guidance is based on current plans and expectations, contains a number of assumptions and includes the impact of its pending acquisition of properties in Kansas City, Missouri and Vicksburg, Mississippi from Eldorado Resorts, Inc., which the Company expects will be consummated in the second quarter of 2020 pending regulatory approval in Missouri. The guidance is subject to a number of known and unknown uncertainties and risks, including those set forth below under "Forward-Looking Statements".

Fourth Quarter Conference Call 

The Company previously held a conference call and audio webcast to review its preliminary results for 2019 and guidance for 2020 on February 11, 2020. An online archive of the webcast is available on the Company's website. Supplemental materials, which have been updated to reflect the actual results of the quarter reported herein, have been posted to the Investors section of the website, under Events & Presentations.

Reconciliation of GAAP Measures to Non-GAAP Measures

To supplement the financial information presented on a generally accepted accounting principles ("GAAP") basis, the Company has included in this earnings release non-GAAP financial measures for Adjusted EBITDA, Adjusted EBITDA margin, gross gaming revenue and adjusted earnings per diluted share, which exclude certain items described below. This release also includes estimated levels of Adjusted EBITDA. The Company believes these measures represent important measures of financial performance that provide useful information that is helpful in understanding the Company's ongoing operating results. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for any measure prepared in accordance with GAAP. The reconciliations of these non-GAAP financial measures to their comparable GAAP financial measures are presented in the tables appearing below.

"Adjusted EBITDA" is earnings for the Company, or where noted the Company's reporting segments, before, in each case, interest expense, net of interest income, provision for income taxes, depreciation and amortization, non-operating income, acquisition, integration and restructuring expense, expansion and pre-opening expenses, Newport Grand disposal loss, share-based compensation, professional and advisory fees associated with capital return program, credit agreement amendment expenses, gains on insurance recoveries, pension withdrawal expense and certain other gains or losses as well as, when presented for the Company's reporting segments, an adjustment related to the allocation of corporate cost among segments. Adjusted EBITDA margin is measured as Adjusted EBITDA as a percentage of revenue.

"Gross gaming revenue" represents total gaming revenue adjusted for the State of Rhode Island's and the State of Delaware's shares of net terminal income, table games revenue and other gaming revenue, and is being presented by the Company to reflect the unique structure of the Company's operations in those states where the state's share of the Company's revenues is retained at the gross revenue level rather than through taxes. Management believes that the presentation of gaming revenue on a gross basis allows for comparisons to gross gaming win data provided throughout the gaming industry.

"Adjusted EPS" represents net income applicable to common stockholders per diluted share before deemed dividends related to changes in fair value of common stock subject to possible redemption, acquisition, integration and restructuring expense, Newport Grand disposal loss, credit agreement amendment expense, gains on insurance recoveries, pension withdrawal, expansion and pre-opening expenses, professional and advisory fees associated with capital return program and certain other gains or losses.

Management has historically used Adjusted EBITDA, Adjusted EBITDA margin and Adjusted EPS when evaluating operating performance because the Company believes that the inclusion or exclusion of certain recurring and non-recurring items is necessary to provide a full understanding of the Company's core operating results and as a means to evaluate period-to-period performance. Management also believes that Adjusted EBITDA is a measure that is widely used for evaluating operating performance of companies in our industry and a principal basis for valuing resort and gaming companies like the Company. Management of the Company believes that while certain items excluded from Adjusted EBITDA and Adjusted EPS may be recurring in nature and should not be disregarded in evaluating the Company's earnings performance, it is useful to exclude such items when comparing current performance to prior periods because these items can vary significantly depending on specific underlying transactions or events that may not be comparable between the periods presented or they may not relate specifically to current operating trends or be indicative of future results. Neither Adjusted EBITDA nor Adjusted EPS should be construed as an alternative to GAAP net income or GAAP diluted EPS, respectively, as an indicator of the Company's performance. In addition, Adjusted EBITDA or Adjusted EPS as used by the Company may not be defined in the same manner as other companies in the Company's industry, and, as a result, may not be comparable to similarly titled non-GAAP financial measures of other companies.

The Company does not provide reconciliations of Adjusted EBITDA to net income on a forward-looking basis to its most comparable GAAP financial measure because the Company is unable to forecast the amount or significance of certain items required to develop meaningful comparable GAAP financial measures without unreasonable efforts. These items include accelerated depreciation, impairment charges, gains or losses on retirement of debt, acquisition, integration and restructuring expenses, share-based compensation expense, variations in effective tax rate and expansion and pre-opening expenses, which are difficult to predict and estimate and are primarily dependent on future events, but which are excluded from the Company's calculations of Adjusted EBITDA. The Company believes that the probable significance of providing these forward-looking non-GAAP financial measures without a reconciliation to the most directly comparable GAAP financial measure, is that investors and analysts will have certain information that the Company believes is useful and meaningful regarding its completed and proposed acquisitions and the estimated impact on those businesses' results from the anticipated changes the Company is likely to make, or has made, to their operations, but will not have that information on a GAAP basis. Investors are cautioned that the Company cannot predict the occurrence, timing or amount of all non-GAAP items that may be excluded from Adjusted EBITDA in the future. Accordingly, the actual effect of these items, when determined could potentially be significant to the calculation of Adjusted EBITDA.

About Twin River Worldwide Holdings, Inc.

Twin River Worldwide Holdings, Inc. owns and manages seven casinos, two in Rhode Island, one in Mississippi, one in Delaware, and three casinos as well as a horse racetrack that has 13 authorized OTB licenses in Colorado. Properties include Twin River Casino Hotel (Lincoln, RI), Tiverton Casino Hotel (Tiverton, RI), Hard Rock Hotel & Casino (Biloxi, MS), Dover Downs Hotel & Casino (Dover, DE), Golden Gates Casino (Black Hawk, CO), Golden Gulch Casino (Black Hawk, CO), Mardi Gras Casino (Black Hawk, CO), and Arapahoe Park racetrack (Aurora, CO). Its casinos range in size from 695 slots and 17 table games combined for its Colorado facilities to properties with over 4,100 slots, approximately 125 table games, and 48 stadium gaming positions, along with hotel and resort amenities. Its shares are traded on the New York Stock Exchange under the ticker symbol "TRWH."

 

Investor Contact


Media Contact

Steve Capp


Liz Cohen

Executive Vice President and Chief Financial Officer


Kekst CNC

401-475-8564


212-521-4845

InvestorRelations@twinriver.com


Liz.Cohen@kekstcnc.com

Forward-Looking Statements

This communication contains "forward-looking" statements as that term is defined in Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended and the Private Securities Litigation Reform Act of 1995. All statements, other than historical facts, including future financial and operating results and the Company's plans, objectives, expectations and intentions, legal, economic and regulatory conditions are forward-looking statements.

Forward-looking statements are sometimes identified by words like "may," "will," "should," "potential," "intend," "expect," "endeavor," "seek," "anticipate," "estimate," "overestimate," "underestimate," "believe," "could," "project," "predict," "continue," "target" or other similar words or expressions. Forward-looking statements are based upon current plans, estimates and expectations that are subject to risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. The inclusion of such statements should not be regarded as a representation that such plans, estimates or expectations will be achieved. Important factors that could cause actual results to differ materially from such plans, estimates or expectations include, among others, (1) unexpected costs, charges or expenses resulting from the recently completed acquisition of three properties in Black Hawk, Colorado and the proposed acquisition of properties in Kansas City, Missouri and Vicksburg, Mississippi; (2) uncertainty of the expected financial performance of the Company, including the failure to realize the anticipated benefits of its acquisitions; (3) the Company's ability to implement its business strategy; (4) the risk that stockholder litigation may result in significant costs of defense, indemnification and/or liability; (5) evolving legal, regulatory and tax regimes; (6) changes in general economic and/or industry specific conditions, including a decrease in customer visits or employee shortages as a result of the ongoing effects of the coronavirus; (7) the effects of competition that exists in the gaming industry; (8) actions by third parties, including government agencies; (9) the risk that the proposed acquisitions of properties in Kansas City, Missouri and Vicksburg, Mississippi, and the proposed enhancements to those properties and their operations, may not be completed on the terms or in the time frame expected, or at all; (10) the risks related to the Company's announcement of the proposed partnering with IGT Global Services ("IGT") to create a new company jointly owned by the Company and IGT that will focus on creating and maintaining a competitive gaming machine offering, (11) the possibility that the anticipated operating results and other  benefits of the proposed joint venture with IGT and proposed agreement with the State of Rhode Island related thereto are not realized when expected or at all or that the proposed joint venture is not consummated, and (12) other risk factors as detailed under Part I. Item 1A. "Risk Factors" of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2018 as filed with the Securities and Exchange Commission on April 1, 2019. The foregoing list of important factors is not exclusive. Any projections of future results of operations are based on a number of assumptions, many of which are outside the Company's control and should not be construed in any manner as a guarantee that such results will in fact occur. These projections are subject to change and could differ materially from final reported results. Any forward-looking statements speak only as of the date of this communication. The Company does not undertake any obligation to update any forward-looking statements, whether as a result of new information or development, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements.


 

 

TWIN RIVER WORLDWIDE HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

(In thousands, except share data)



December 31,
2019


December 31,
2018

Assets




Cash and cash equivalents

$

182,581



$

77,580


Restricted cash

2,921



3,851


Accounts receivable, net

23,190



22,966


Inventory

7,900



6,418


Prepaid expenses and other assets

28,439



11,647


Total current assets

245,031



122,462


Property and equipment, net

510,436



416,148


Right of use assets, net

17,225




Goodwill

133,082



132,035


Intangible assets, net

110,373



110,104


Other assets

5,740



1,603


Total assets

$

1,021,887



$

782,352


Liabilities and Shareholders' Equity




Current portion of long-term debt

$

3,000



$

3,595


Current portion of lease obligations

1,014




Accounts payable

14,921



14,215


Accrued liabilities

70,849



57,778


Total current liabilities

89,784



75,588


Lease obligations, net of current portion

16,214




Pension benefit obligations

8,688




Deferred tax liability

13,790



17,526


Long-term debt, net of current portion

680,601



390,578


Other long-term liabilities

1,399




Total liabilities

810,476



483,692


Commitments and contingencies




Shareholders' equity:




Common stock, par value $0.01; 100,000,000 shares authorized; 41,193,018 and 39,421,356 shares issued as of December 31, 2019 and 2018, respectively; 32,113,328 and 37,989,376 shares outstanding as of December 31, 2019 and 2018, respectively.

412



380


Additional paid-in-capital

185,544



125,629


Treasury Stock, at cost, 9,079,690 and 1,431,980 shares as of December 31, 2019 and 2018, respectively.

(223,075)



(30,233)


Retained earnings

250,418



202,884


Accumulated other comprehensive loss

(1,888)




Total shareholders' equity

211,411



298,660


Total liabilities and shareholders' equity

$

1,021,887



$

782,352


 

 

TWIN RIVER WORLDWIDE HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(In thousands, except per share data)






Quarter Ended December 31,


Year Ended December 31,


2019


2018


2019


2018

Revenue:








Gaming

$

88,531



$

83,825



$

367,948



$

327,740


Racing

3,136



2,718



13,114



13,158


Hotel

10,174



5,687



38,988



21,339


Food and beverage

19,538



12,465



69,904



48,380


Other

9,040



6,727



33,623



26,920


Total revenue

130,419



111,422



523,577



437,537










Operating costs and expenses:








Gaming

23,282



20,138



93,965



71,798


Racing

2,275



1,990



9,592



9,031


Hotel

3,754



2,352



14,841



8,266


Food and beverage

16,382



11,922



58,447



40,246


Retail, entertainment and other

2,624



1,425



8,327



5,901


Advertising, general and administrative

44,079



29,582



180,400



143,278


Expansion and pre-opening



54





2,678


Acquisition, integration and restructuring expense

1,121



2,500



12,168



6,844


Newport Grand disposal loss



(27)





6,514


Gain on insurance recoveries

(1,181)





(1,181)




Depreciation and amortization

9,061



6,789



32,392



22,332


Total operating costs and expenses

101,397



76,725



408,951



316,888


Income from operations

29,022



34,697



114,626



120,649










Other income (expense):








Interest income

327



53



1,904



173


Interest expense, net of amounts capitalized

(11,352)



(6,774)



(39,830)



(23,025)


Loss on extinguishment and modification of debt

(212)





(1,703)




Other, net





183




Total other expense, net

(11,237)



(6,721)



(39,446)



(22,852)










Income before provision for income taxes

17,785



27,976



75,180



97,797










Provision for income taxes

4,430



5,846



20,050



26,359


Net income

$

13,355



$

22,130



$

55,130



$

71,438


Deemed dividends related to changes in fair value of common stock subject to possible redemption



2,214





640


Net income applicable to common stockholders

$

13,355



$

24,344



$

55,130



$

72,078










Net income per share, basic

$

0.40



$

0.66



$

1.46



$

1.95


Weighted average common shares outstanding, basic

33,676



37,081



37,705



36,939










Net income per share, diluted

$

0.40



$

0.63



$

1.46



$

1.87


Weighted average common shares outstanding, diluted

33,774



38,504



37,820



38,552



 

 

TWIN RIVER WORLDWIDE HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

(In thousands)




Year Ended December 31,

(in thousands)

2019


2018

Cash flows from operating activities:




Net income

$

55,130



$

71,438


Adjustments to reconcile net income to net cash provided by operating activities:




Depreciation and amortization

32,392



22,332


Amortization of operating lease right of use assets

1,215




Share-based compensation

3,826



(1,474)


Amortization of deferred financing costs and discounts on debt

2,684



3,267


Loss on debt extinguishment and modification of debt

1,703




Bad debt expense

239



202


Net pension and other postretirement benefit income

(39)




Deferred income taxes

8,995



5,880


Newport Grand disposal loss



6,514


Loss on disposal of property and equipment

98



11


Changes in operating assets and liabilities:




Accounts receivable

5,211



(4,857)


Inventory

(89)



842


Prepaid expenses and other assets

(14,172)



(1,778)


Accounts payable

(3,860)



(4,078)


Accrued liabilities

767



10,945


Net cash provided by operating activities

94,100



109,244


Cash flows from investing activities:




Repayment of loans from officers and directors



5,360


Acquisition of Dover Downs Gaming & Entertainment, Inc., net of cash acquired

(9,606)




Proceeds from sale of land and building for Newport Grand disposal



7,108


Proceeds from sale of property and equipment

10



11


Capital expenditures

(28,237)



(128,890)


Other investing activities

(1,092)



(1,189)


Net cash used in investing activities

(38,925)



(117,600)


Cash flows from financing activities:




Revolver borrowings

25,000



41,000


Revolver repayments

(80,000)



(6,000)


Term loan proceeds, net of fees of $10,655

289,345




Term loan repayments

(343,939)



(34,527)


Senior note proceeds, net of fees of $6,130

393,870




Payment of financing fees

(4,340)



(221)


Stock repurchases

(223,075)



(7,958)


Stock options exercised via repayment of non-recourse notes



4,277


Payment of shareholder dividends

(7,539)




Share redemption for tax withholdings - restricted stock

(426)




Net cash provided by (used in) financing activities

48,896



(3,429)


Net change in cash and cash equivalents and restricted cash

104,071



(11,785)


Cash and cash equivalents and restricted cash, beginning of period

81,431



93,216


Cash and cash equivalents and restricted cash, end of period

$

185,502



$

81,431






Supplemental disclosure of cash flow information:




Cash paid for interest

$

19,965



$

23,178


Cash paid for income taxes

16,519



22,217


 

 

TWIN RIVER WORLDWIDE HOLDINGS, INC.





Reconciliation of Net Income and Net Income Margin to

Adjusted EBITDA and Adjusted EBITDA Margin (unaudited)






Quarter Ended
December 31,


Year Ended
December 31,

(in thousands, except percentages)

2019


2018


2019


2018

Revenue

$

130,419



$

111,422



$

523,577



$

437,537










Net income

$

13,355



$

22,130



$

55,130



$

71,438


Interest expense, net of interest income

11,025



6,721



37,926



22,852


Provision for income taxes

4,430



5,846



20,050



26,359


Depreciation and amortization

9,061



6,789



32,392



22,332


Non-operating income





(183)




Acquisition, integration and restructuring expense

1,121



2,500



12,168



6,844


Expansion and pre-opening expenses



54





2,678


Newport Grand disposal loss



(27)





6,514


Share-based compensation

1,019



(8,825)



3,826



(1,474)


Professional and advisory fees associated with capital return program

10





3,510




Credit Agreement amendment expenses (1)

764



83



2,915



493


Gain on insurance recoveries (2)

(1,181)





(1,181)




Pension withdrawal expense (3)







3,698


Other (4)

608



1,709



597



3,963


Adjusted EBITDA

$

40,212



$

36,980



$

167,150



$

165,697










Net income margin

10.24

%


19.86

%


10.53

%


16.33

%

Adjusted EBITDA margin

30.83

%


33.19

%


31.92

%


37.87

%

 

__________________________________

(1)  Credit Agreement amendment expenses include costs associated with amendments made to the Company's Credit Agreement and Regulatory Agreement with Rhode Island as well as a $1.7 million loss incurred in 2019 related to the extinguishment and modification of debt, $1.5 million of which was recorded during the second quarter of 2019.

(2)   Gain related to insurance recovery proceeds received for a damaged roof at the Company's Arapahoe Park racetrack.

(3)   Pension withdrawal expense represents the accrual for the New England Teamsters multi-employer pension plan withdrawal liability.

(4)   Other includes the following non-recurring items for the applicable periods (i) storm-related repair expenses, net of insurance recoveries, associated with damage from Hurricane Nate at Hard Rock Biloxi, (ii) a pension audit payment representing an adjustment to a charge for out-of-period unpaid contributions, inclusive of estimated interest and penalties, to one of the Company's multi-employer pension plans, (iii) non-routine legal expenses incurred in connection with certain litigation matters (net of insurance reimbursements), (iv) expenses incurred associated with the Rhode Island State Police investigation into a tenant in the Lincoln property and a former employee of the Company, (v) expenses incurred associated with the campaign attempting to create an open bid process for the Rhode Island Lottery Contract, and (vi) legal and financial expenses associated with the Company's review of strategic alternatives that began in April 2017.

 

 

TWIN RIVER WORLDWIDE HOLDINGS, INC.











Revenue and Reconciliation of Net Income to

Adjusted EBITDA by Segment (unaudited)

(in thousands)











Quarter Ended December 31, 2019

Rhode
Island


Delaware


Biloxi


Other


Total

Revenue

$

69,483



$

27,637



$

31,187



$

2,112



$

130,419












Net income

16,479



2,016



4,065



(9,205)



13,355


Interest expense, net of interest income



31



(7)



11,001



11,025


Provision for income taxes

6,399



1,363



1,345



(4,677)



4,430


Depreciation and amortization

4,733



1,390



2,896



42



9,061


Acquisition, integration and restructuring expense

21



58





1,042



1,121


Share-based compensation







1,019



1,019


Professional and advisory fees associated with capital return program







10



10


Credit Agreement amendment expenses (1)







764



764


Gain on insurance recoveries (1)







(1,181)



(1,181)


Other (1)







608



608


Allocation of corporate costs

1,813



556



807



(3,176)




Adjusted EBITDA

$

29,445



$

5,414



$

9,106



$

(3,753)



$

40,212


_______________________________

(1)     See descriptions of adjustments in the "Reconciliation of Net Income and Net Income Margin to Adjusted EBITDA and Adjusted EBITDA Margin (unaudited)" table above.

 

Quarter Ended December 31, 2018


Rhode
Island


Biloxi


Other


Total

Revenue


$

79,564



$

29,912



$

1,946



$

111,422











Net income


14,277



3,688



4,165



22,130


Interest expense, net of interest income


2,211



(4)



4,514



6,721


Provision for income taxes


8,564



1,022



(3,740)



5,846


Depreciation and amortization


4,365



2,378



46



6,789


Acquisition, integration and restructuring expense






2,500



2,500


Expansion and pre-opening expenses


54







54


Newport Grand disposal loss


(27)







(27)


Share-based compensation






(8,825)



(8,825)


Credit Agreement amendment expenses (1)






83



83


Other (1)


1,400



(321)



630



1,709


Allocation of corporate costs


3,662



1,430



(5,092)




Adjusted EBITDA


$

34,506



$

8,193



$

(5,719)



$

36,980


_______________________________

(1)     See descriptions of adjustments in the "Reconciliation of Net Income and Net Income Margin to Adjusted EBITDA and Adjusted EBITDA Margin (unaudited)" table above.

 

 

TWIN RIVER WORLDWIDE HOLDINGS, INC.











Revenue and Reconciliation of Net Income to

Adjusted EBITDA by Segment (unaudited)

(in thousands)











Year Ended December 31, 2019

Rhode
Island


Delaware


Biloxi


Other


Total

Revenue

$

306,306



$

80,806



$

127,432



$

9,033



$

523,577












Net income

$

71,124



$

6,031



$

18,165



$

(40,190)



$

55,130


Interest expense, net of interest income

3,265



145



(30)



34,546



37,926


Provision for income taxes

26,653



2,903



5,108



(14,614)



20,050


Depreciation and amortization

18,473



3,996



9,743



180



32,392


Non-operating income



(39)





(144)



(183)


Acquisition, integration and restructuring expense

425



1,155





10,588



12,168


Share-based compensation







3,826



3,826


Professional and advisory fees associated with capital return program







3,510



3,510


Credit Agreement amendment expenses (1)

1,038







1,877



2,915


Gain on insurance recoveries(1)







(1,181)



(1,181)


Other (1)

(419)





123



893



597


Allocation of corporate costs

10,124



2,466



4,148



(16,738)




Adjusted EBITDA

$

130,683



$

16,657



$

37,257



$

(17,447)



$

167,150


_______________________________

(1)     See descriptions of adjustments in the "Reconciliation of Net Income and Net Income Margin to Adjusted EBITDA and Adjusted EBITDA Margin (unaudited)" table above.

 

Year Ended December 31, 2018


Rhode
Island


Biloxi


Other


Total

Revenue


$

302,652



$

125,137



$

9,748



$

437,537











Net income


$

68,849



$

18,506



$

(15,917)



$

71,438


Interest expense, net of interest income


8,547



(3)



14,308



22,852


Provision for income taxes


28,659



4,973



(7,273)



26,359


Depreciation and amortization


12,896



9,255



181



22,332


Acquisition, integration and restructuring expense






6,844



6,844


Expansion and pre-opening expenses


2,678







2,678


Newport Grand disposal loss


6,514







6,514


Share-based compensation






(1,474)



(1,474)


Credit Agreement amendment expenses(1)






493



493


Pension withdrawal expense(1)


3,698







3,698


Other(1)


1,400



26



2,537



3,963


Allocation of corporate costs


9,970



4,126



(14,096)




Adjusted EBITDA


$

143,211



$

36,883



$

(14,397)



$

165,697


_______________________________

(1)     See descriptions of adjustments in the "Reconciliation of Net Income and Net Income Margin to Adjusted EBITDA and Adjusted EBITDA Margin (unaudited)" table above.

 

 

TWIN RIVER WORLDWIDE HOLDINGS, INC.









Calculation of Gross Gaming Revenue (unaudited)


Quarter Ended
December 31,




Year Ended
December 31,



(in thousands, except percentages)

2019


2018


Change


2019


2018


Change

Gaming revenue

$

88,531



$

83,825



5.6

%


$

367,948



$

327,740



12.3

%

Adjustment for State of RI's share of net terminal income, table games revenue and other gaming revenue (1)

96,906



99,710





401,772



389,046




Adjustment for State of DE's share of net terminal income, table games revenue and other gaming revenue at Dover Downs (1)

21,728







66,600






Gross gaming revenue

$

207,165



$

183,535



12.9

%


$

836,320



$

716,786



16.7

%

_______________________________

(1)     Adjustment made to show gaming revenue on a gross basis, consistent with gross gaming win data provided throughout the gaming industry.


 

 

Reconciliation of Net Income Per Diluted Share to

Adjusted Net Income Per Diluted Share (unaudited)






Quarter Ended
December 31,


Year Ended
December 31,


2019


2018


2019


2018

Net income per diluted share

$

0.40



$

0.63



$

1.46



$

1.87


Deemed dividends related to changes in fair value of common stock subject to possible redemption



0.06





0.02


Acquisition, integration and restructuring expense

0.03



0.06



0.32



0.18


Newport Grand disposal loss







0.17


Credit Agreement amendment expenses (1)

0.02





0.08



0.01


Pension withdrawal (1)







0.10


Expansion and pre-opening expenses







0.07


Professional and advisory fees associated with capital return program





0.09




Gain on insurance recoveries(1)

(0.03)





(0.03)




Other (1)

0.02



0.04



0.02



0.10


Tax effect of adjustments

(0.01)



(0.02)



(0.13)



(0.17)


Adjusted net income per diluted share

$

0.42



$

0.78



$

1.81



$

2.34


_______________________________

Note: Amounts in table may not subtotal due to rounding.

(1)     See descriptions of adjustments in the "Reconciliation of Net Income and Net Income Margin to Adjusted EBITDA and Adjusted EBITDA Margin (unaudited)" table above.

Cision View original content:http://www.prnewswire.com/news-releases/twin-river-reports-fourth-quarter-and-full-year-2019-results-301015378.html

SOURCE Twin River Worldwide Holdings, Inc.

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