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Twin River Announces Second Quarter 2019 Results

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PROVIDENCE, R.I., Aug. 12, 2019 /PRNewswire/ -- Twin River Worldwide Holdings, Inc. (NYSE:TRWH) (the "Company", "Twin River" or "TRWH") today reported financial results for the second quarter ended June 30, 2019.

(PRNewsfoto/Twin River Worldwide Holdings, )

Financial Highlights - Second Quarter 2019 Compared to Second Quarter 2018

  • Revenue increased 29.2% to $143.2 million
  • Gross gaming revenue increased 26.5% to $228.0 million(1)
  • Net income decreased 15.4% to $17.2 million
  • Adjusted EBITDA increased 7.1% to $47.5 million
  • Dover Downs contributed solid performance with $25.8 million of revenue

Summary of Financial Results


Three Months Ended June 30,



(in thousands, except per share amounts and percentages)

2019


2018


Change

Revenue

$

143,218



$

110,815



29.2

%

Income from operations

$

33,846



$

31,424



7.7

%

Income from operations margin

23.63

%


28.36

%



Net income

$

17,180



$

20,300



(15.4)

%

Net income margin

12.00

%


18.32

%



Adjusted EBITDA(1)

$

47,457



$

44,298



7.1

%

Adjusted EBITDA Margin(1)

33.14

%


39.97

%



Earnings per diluted share ("EPS")

$

0.42



$

0.49



(14.3)

%

Adjusted EPS(1)

$

0.51



$

0.56



(8.9)

%

 (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.

"We are pleased with the Company's results in the quarter as the financial performance at Dover exceeded our already high expectations and our Rhode Island operations performed well despite some softness in the New England gaming markets in the second quarter," said George Papanier, President and Chief Executive Officer. "Our emphasis of focusing on in-market and out-of-market accretive growth is also proving itself in the early going as we continue to grow prudently into a multi-state operator based in Rhode Island versus a single regional operator."

Second Quarter 2019 Results

Revenue for the second quarter 2019 increased 29.2% to $143.2 million from $110.8 million in the second quarter 2018. The increase in revenue year-over-year was principally driven by the effects of the Dover Downs acquisition, which exceeded expectations on the top line in its first full quarter of ownership and contributed $25.8 million of revenue to the Company's results for the second quarter. The second quarter was also favorably impacted by incremental revenue at the Tiverton Casino Hotel ("Tiverton"), which opened in the third quarter of 2018 and continued to ramp in the second quarter. The Company did note softness in the overall New England market throughout the second quarter of 2019, which was attributed to a challenging comparable period in 2018 resulting from pent up demand due to poor weather in the first quarter of the prior year, as well as the likely impact of decreased tax refund dollars in the current year as a result of federal tax legislation changes at the end of 2017. The Company notes that the impact of new competition in the region did impact revenue late in the second quarter, particularly at the Twin River Casino Hotel ("Lincoln"); however, the impact to the quarter was in line with the Company's expectations.

Overall gaming revenue increased $18.0 million, or 21.8%, to $100.2 million, food & beverage revenue increased $6.5 million, or 52.9%, to $18.8 million, and hotel revenue increased $5.9 million, or 107.6%, to $11.4 million, in each case, compared to the same period in 2018.

Income from operations in the second quarter 2019 increased $2.4 million, or 7.7%, year-over-year to $33.8 million.  This year-over-year increase, driven by the increase in revenues noted above, was positively impacted by the addition of Dover Downs and the incremental contribution from Tiverton in the quarter. Operating costs and expenses in the second quarter of 2019 include the impact of the following:

  • increased corporate overhead costs of $1.1 million, reflecting the Company's corporate investment in preparation of future growth and additional costs incurred by the Company to meet reporting requirements associated with being a publicly traded company;
  • increased depreciation and amortization expense of $3.1 million driven by capital projects for Tiverton and the Hotel at Lincoln, which were completed in the second half of 2018, and the addition of Dover Downs;
  • decreased share-based compensation expense of $4.4 million resulting from the timing of grants and settlement of awards which created expense volatility in 2018;
  • approximately $1.7 million of professional and advisory fees incurred in the quarter associated with the Company's capital return program; and
  • increased acquisition and integration costs of $0.9 million driven by the pending acquisition of three Black Hawk, Colorado properties from Affinity Gaming and the recently announced pending acquisitions of the Isle of Capri Kansas City and Lady Luck Vicksburg casinos from Eldorado Resorts Inc.

Interest expense for the second quarter increased $4.9 million to $10.0 million as, on May 10, 2019, the Company extended its balance sheet by entering into a new credit facility and issued $400 million of 6.75% unsecured senior notes, which are described in more detail below.

Reflecting the items described above and an increase in the effective tax rate year over year, net income for the second quarter 2019 decreased $3.1 million, or 15.4%, to $17.2 million. Adjusted EBITDA for the second quarter 2019 was $47.5 million, an increase of $3.2 million, or 7.1%, from $44.3 million in the second quarter 2018.

Introduction to July 2019 Rhode Island Gaming Volumes

Our Rhode Island segment has been impacted by new competition which opened in Boston in late June. In commenting on this impact, George Papanier said, "The new competition had a greater than expected negative impact on our table games at Lincoln in July 2019, while our slots performance for the same period was in line with expectations given the seasonal weakness that we noted earlier that impacted the second quarter. Table games revenues decreased by approximately $3.9 million(1), or 34%, to $7.6 million when compared to July 2018, while our slots NTI decreased approximately $6.4 million, or 17%, to $32.2 million(1) compared to July 2018. We are pleased with the lack of impact we have experienced at Tiverton where gaming volumes in July were relatively flat to our recent monthly run-rate which we view as a positive. When we conceived and planned the Tiverton property, the expectation was for it to offset the impact of new competition so that operating income in the market would be flat to Lincoln alone. We are revising our expectations for combined operating income to be lower by approximately 10% from those expectation levels."

The Company notes that July 2019 represents the first full month that the Company's results were impacted by new Boston competition and the volume numbers presented above are similar to the gaming revenue numbers regularly made available by the Rhode Island State Lottery. These numbers are based on the Company's internal data and actual results reported by the Rhode Island State Lottery may differ.

The Company is providing this preliminary and selected gaming volume data subsequent to the end of the second quarter to provide insight into the initial impacts of recent competition. The Company does not plan to regularly release similar financial information (whether preliminary or not) on an ongoing basis.

Balance Sheet and Liquidity

The Company had $383.4 million in cash and cash equivalents, excluding restricted cash, at June 30, 2019. Outstanding indebtedness, before the impact of $13.3 million of unamortized deferred financing fees and $2.1 million of unamortized original issue discount, at the end of the second quarter 2019 totaled $700.0 million. "We ended the second quarter with a rock solid balance sheet and, taking into account our very low net debt leverage, we have what we believe is one of the strongest capital structures in our industry," commented Steve Capp, Chief Financial Officer.

On May 10, 2019 the Company completed its new debt financing, comprised of a $250 million revolving credit facility (the "revolver") and a $300 million term loan with maturity dates of 2024 and 2026, respectively, as well as $400 million of senior unsecured notes due 2027. The revolver was undrawn at closing and remained undrawn at June 30, 2019. The Company used the net proceeds from the term loan and unsecured notes to repay borrowings under its prior revolver and term loan, aggregating $421.2 million. The balance, net of costs, of approximately $260 million is included in the Company's cash balance at the end of the second quarter and will be used for general corporate purposes, which could include, in addition to funding operations, acquisitions, repurchases of our common stock and other transactions.

On June 14, 2019, the Company declared a cash dividend of $0.10 per common share ("Dividend") that was paid on July 23, 2019 resulting in a $4.1 million return to shareholders. On July 26, 2019, the Company completed a modified Dutch auction tender offer ("Offer") and repurchased approximately 2.5 million shares of its common stock for cash at a price of $29.50 per share for an aggregate purchase price of $75 million. Both the Dividend and Offer were  components of the Company's previously announced capital return program and were funded with cash on hand. After the effect of the payment of the Dividend and consummation of the Offer, the Company had approximately $171 million available for use under its capital return program.

(1) VLT or slots NTI stands for video lottery terminal net terminal income and represents the net of cash in and cash out for video lottery terminals at the Company's facilities. Both VLT NTI and total net table games revenue figures are gross amounts and do not represent the Company's final share of these amounts that it must share with the State of Rhode Island or the impact of any other adjustments the Company may make, including those related to promotional efforts, in finalizing its results for the period. These figures do not represent what the gaming revenue of TRWH would be for July 2019 but, rather, are being disclosed in an effort to provide an overall preliminary indication of the impact competition and other factors had on the Company's Rhode Island operations for the month of July. The information above is preliminary and is based on information available as of the date of this release and is therefore subject to change.

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.

The reconciliation of these non-GAAP financial measures to their comparable GAAP financial measures are presented in the tables appearing below. The presentation of 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 Company believes that presenting non-GAAP financial measures aids in making period-to-period comparisons and is a meaningful indication of its actual operating performance. The Company's management utilizes and plans to utilize this non-GAAP financial information to compare the Company's operating performance to comparable periods and to internally prepared projections. The Company's non-GAAP financial measures may not be the same as or comparable to similar non-GAAP measures presented by other companies.

Second Quarter Conference Call

The Company's second quarter 2019 earnings conference call and audio webcast will be held today, Monday, August 12, 2019, at 8:00 AM EDT. To access the conference call, please dial (877) 791-0146 (U.S. toll-free) and reference conference ID number 8865339. The webcast of the call will be available to the public, on a listen-only basis, via the Internet at the Investors section of the Company's website at www.twinriverwwholdings.com. An online archive of the webcast will be available on the Company's website for 120 days.

About Twin River Worldwide Holdings, Inc.

Twin River Worldwide Holdings, Inc. owns and manages four casinos, two casinos in Rhode Island, one in Mississippi, and one in Delaware, as well as a Colorado horse race track that has 13 authorized OTB licenses. 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) and Arapahoe Park racetrack (Aurora, CO). Its casinos range in size from 1,000 slots and 32 table games 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."

Forward-Looking Statements

This communication contains "forward-looking" statements within the meaning of 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 and any assumptions underlying any of the foregoing, 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) the effects of competition that exists in the gaming industry; (2) unexpected costs, charges or expenses resulting from the acquisition of Dover Downs and other proposed transactions; (3) uncertainty of the expected financial performance of the Company, including the failure to realize the anticipated benefits of its acquisitions; (4) the Company's ability to implement its business strategy; (5) the risk that litigation may result in significant costs of defense, indemnification and/or liability; (6) evolving legal, regulatory and tax regimes; (7) changes in general economic and/or industry specific conditions; (8) actions by third parties, including government agencies; (9) the risk that the Company's proposed acquisitions may not be completed on the terms or in the time frame expected, or at all; and (10) 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 forward-looking statements speak only as of the date of this communication. TRWH 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)



June 30,
2019


December 31,
2018

Assets




Cash and cash equivalents

$

383,431



$

77,580


Restricted cash

7,455



3,851


Accounts receivable, net

27,874



22,966


Inventory

7,689



6,418


Prepaid expenses and other assets

17,690



11,647


Total current assets

444,139



122,462


Property and equipment, net

515,525



416,148


Right of use assets, net

17,717




Goodwill

132,746



132,035


Intangible assets, net

113,268



110,104


Other assets

6,069



1,603


Total assets

$

1,229,464



$

782,352


Liabilities and Shareholders' Equity




Current portion of long-term debt

$

3,000



$

3,595


Current portion of lease obligations

1,000




Accounts payable

18,827



14,215


Accrued liabilities

76,696



57,778


Total current liabilities

99,523



75,588


Lease obligations, net of current portion

16,719




Pension benefit obligations

6,407




Deferred tax liability

5,647



17,526


Long-term debt, net of current portion

681,576



390,578


Other long-term liabilities

2,149




Total liabilities

812,021



483,692


Commitments and contingencies




Shareholders' equity:




Common stock, par value $0.01; 100,000,000 shares authorized; 41,163,937 and 39,421,356
shares issued as of June 30, 2019 and December 31, 2018, respectively; 41,147,597 and
37,989,376 shares outstanding as of June 30, 2019 and December 31, 2018, respectively, net
of treasury stock.

411



380


Additional paid in capital

183,925



125,629


Treasury stock, at cost, 16,340 and 1,431,980 shares as of June 30, 2019 and December 31,
2018, respectively.

(409)



(30,233)


Retained earnings

233,516



202,884


Total shareholders' equity

417,443



298,660


Total liabilities and shareholders' equity

$

1,229,464



$

782,352


 

TWIN RIVER WORLDWIDE HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(In thousands, except per share data)



Three Months Ended June 30,


Six Months Ended June 30,


2019


2018


2019


2018

Revenue:








Gaming

$

100,234



$

82,266



$

191,102



$

161,848


Racing

3,783



3,870



6,723



7,154


Hotel

11,390



5,486



17,695



9,940


Food and beverage

18,801



12,298



32,312



23,786


Other

9,010



6,895



16,017



12,893


Total Revenue

143,218



110,815



263,849



215,621










Operating costs and expenses:








Gaming

26,078



17,027



47,154



33,754


Racing

2,833



2,545



5,024



4,724


Hotel

4,183



2,056



6,897



3,816


Food and beverage

15,634



9,696



26,741



18,668


Retail, entertainment and other

2,125



1,454



3,451



2,584


Advertising, general and administrative

48,047



40,363



86,310



78,393


Expansion and pre-opening



451





485


Acquisition, integration and restructuring expense

2,239



664



9,117



664


Newport Grand disposal loss







5,885


Depreciation and amortization

8,233



5,135



15,002



10,347


Total operating costs and expenses

109,372



79,391



199,696



159,320


Income from operations

33,846



31,424



64,153



56,301










Other income (expense):








Interest income

754



38



767



78


Interest expense, net of amounts capitalized

(9,966)



(5,106)



(17,017)



(10,845)


Loss on extinguishment and modification of debt

(1,491)





(1,491)




Other, net

182





182




Total other expense, net

(10,521)



(5,068)



(17,559)



(10,767)










Income before provision for income taxes

23,325



26,356



46,594



45,534










Provision for income taxes

6,145



6,056



11,818



12,600


Net income

$

17,180



$

20,300



$

34,776



$

32,934


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



(1,305)





(2,610)


Net income applicable to common stockholders

$

17,180



$

18,995



$

34,776



$

30,324










Net income per share, basic

$

0.42



$

0.51



$

0.88



$

0.82


Weighted average common shares outstanding, basic

41,137



36,925



39,701



36,874










Net income per share, diluted

$

0.42



$

0.49



$

0.87



$

0.79


Weighted average common shares outstanding, diluted

41,261



38,541



39,822



38,572


 

TWIN RIVER WORLDWIDE HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

(In thousands)



Six Months Ended June 30,


2019


2018

Cash flows from operating activities:




Net income

$

34,776



$

32,934


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




Depreciation of property and equipment

12,113



7,609


Amortization of intangible assets

2,889



2,738


Amortization of operating lease right of use assets

722




Share-based compensation - liability awards



10,038


Share-based compensation - equity awards

1,779



1,010


Amortization of deferred financing costs and discounts on debt

1,428



1,847


Loss on debt extinguishment and modification of debt

1,491




Bad debt expense

58



116


Net pension and other postretirement benefit income

(39)




Newport Grand disposal loss



5,885


Gain on disposal of property and equipment

(8)




Changes in operating assets and liabilities:




Accounts receivable

708



(3,233)


Inventory

122



807


Prepaid expenses and other assets

(944)



1,158


Accounts payable

(300)



(6,399)


Accrued liabilities

1,871



925


Net cash provided by operating activities

56,666



55,435


Cash flows from investing activities:




Repayment of loans from officers and directors



1,073


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

7



5


Capital expenditures, excluding Tiverton Casino Hotel and new hotel at Twin River Casino

(13,114)



(5,607)


Capital expenditures - Tiverton Casino Hotel

(1,824)



(58,740)


Capital expenditures - new hotel at Twin River Casino

(3,741)



(14,101)


Payments associated with gaming license

(942)



(155)


Net cash used in investing activities

(29,220)



(70,417)


Cash flows from financing activities:




Revolver borrowings

25,000



26,000


Revolver repayments

(80,000)




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

289,345




Term loan repayments

(342,439)



(32,127)


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

393,870




Payment of financing fees

(3,358)




Stock repurchases

(409)




Stock options exercised via repayment of non-recourse notes



890


Net cash provided by (used in) financing activities

282,009



(5,237)






Net change in cash and cash equivalents and restricted cash

309,455



(20,219)


Cash and cash equivalents and restricted cash, beginning of period

81,431



93,216


Cash and cash equivalents and restricted cash, end of period

$

390,886



$

72,997






Supplemental disclosure of cash flow information:




Cash paid for interest

$

10,960



$

11,046


Cash paid for income taxes

$

8,794



$

10,226






Non-cash investing and financing activities:




Unpaid property and equipment

$

614



$

18,161


Deposit applied to fixed asset purchases

$

981



$


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

$



$

2,610


Intrinsic value of stock options exercised via repayment of non-recourse notes

$



$

8,131


Termination of operating leases via purchase of underlying assets

$

1,665



$


Stock issued for acquisition of Dover Downs Gaming & Entertainment, Inc.

$

86,780



$




 

TWIN RIVER WORLDWIDE HOLDINGS, INC.


Reconciliation of Net Income and Net Income Margin to

Adjusted EBITDA and Adjusted EBITDA Margin (unaudited)



Three Months Ended June 30,


Six Months Ended June 30,

(in thousands, except percentages)

2019


2018


2019


2018

Revenue

$

143,218



$

110,815



$

263,849



$

215,621










Net income

$

17,180



$

20,300



$

34,776



$

32,934


Interest expense, net of interest income

9,212



5,068



16,250



10,767


Provision for income taxes

6,145



6,056



11,818



12,600


Depreciation and amortization

8,233



5,135



15,002



10,347


Non-operating income

(182)





(182)




Loss on extinguishment and modification of debt (1)

1,491





1,491




Merger and going public expenses (2)

759



664



7,199



664


Restructuring costs (3)

716





716




Newport Grand disposal loss (4)







5,885


Share-based compensation

1,628



6,029



1,780



11,047


Non-recurring litigation expenses, net of insurance proceeds (5)

524



375



(33)



1,233


Pension audit payment (6)

(519)





(519)




Legal and financial expenses for strategic review (7)



132





682


Acquisition costs (8)

764





1,202




Credit Agreement amendment (income) expenses (9)

(197)



15



138



401


Storm related repair expense, net of insurance recoveries (10)



73





213


Expansion and pre-opening expenses (11)



451





485


Professional and advisory fees associated with capital return program (12)

1,703





1,703




Adjusted EBITDA

$

47,457



$

44,298



$

91,341



$

87,258










Net income margin

12.00

%


18.32

%


13.18

%


15.27

%

Adjusted EBITDA margin

33.14

%


39.97

%


34.62

%


40.47

%

_______________________________

(1)

Loss on debt extinguishment and modification of debt related to the Company's debt refinancing.

(2)

Merger and going public expenses primarily include legal and financial advisory costs related to the merger with Dover Downs and costs
of becoming a public company.

(3)

Restructuring costs reflect severance charges related to Dover Downs integration.

(4)

Newport Grand disposal loss represents the loss on the sale of the land and building in the first quarter of 2018.

(5)

Non-recurring litigation expense represents legal expenses incurred by TRWH in connection with certain litigation matters (net of
insurance reimbursements).

(6)

Pension audit payment represents 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.

(7)

Legal and financial expenses for the strategic review include expenses associated with TRWH's review of strategic alternatives that began in April 2017.

(8)

Acquisition costs represent costs incurred during the year associated with the Company's announced pending acquisitions of three
casinos in Black Hawk, Colorado from Affinity Gaming, as well as the Isle of Capri Casino Kansas City in Kansas City, Missouri and
the Lady Luck Casino Vicksburg in Vicksburg, Mississippi from Eldorado Resorts, Inc.

(9)

Credit Agreement amendment (income) expenses include costs associated with amendments made to TRWH's Credit Agreement.

(10)

Storm-related repair expenses include costs, net of insurance recoveries, associated with damage from Hurricane Nate at Hard Rock Biloxi.

(11)

Expansion and pre-opening expenses represent costs incurred for Tiverton Casino Hotel prior to its opening on September 1, 2018.

(12)

Professional and advisory fees incurred related to the Company's capital return program.

 

TWIN RIVER WORLDWIDE HOLDINGS, INC.


Revenue and Reconciliation of Net Income to

Adjusted EBITDA by Segment (unaudited)(1)

(in thousands)


Three months ended June 30, 2019

Rhode
Island


Delaware


Biloxi


Other


Total

Revenue

$

82,856



$

25,751



$

32,118



$

2,493



$

143,218












Net income

$

21,549



$

1,332



$

4,470



$

(10,171)



$

17,180


Interest expense, net of interest income

955



59



(8)



8,206



9,212


Provision for income taxes

8,009



512



1,192



(3,568)



6,145


Depreciation and amortization

4,546



1,284



2,359



44



8,233


Non-operating income



(38)





(144)



(182)


Loss on extinguishment and modification of debt

1,038







453



1,491


Merger and going public expenses



206





553



759


Restructuring costs



716







716


Share-based compensation







1,628



1,628


Non-recurring litigation expenses, net of insurance proceeds





275



249



524


Pension audit payment

(519)









(519)


Acquisition costs







764



764


Credit Agreement amendment income







(197)



(197)


Professional and advisory fees associated with capital return program







1,703



1,703


Allocation of corporate costs

2,570



1,112



1,005



(4,687)




Adjusted EBITDA

$

38,148



$

5,183



$

9,293



$

(5,167)



$

47,457


 

Three months ended June 30, 2018


Rhode
Island


Biloxi


Other


Total

Revenue


$

75,935



$

32,016



$

2,864



$

110,815











Net income


24,083



4,519



(8,302)



20,300


Interest expense, net of interest income


1,973



1



3,094



5,068


Provision for income taxes


6,719



1,395



(2,058)



6,056


Depreciation and amortization


2,779



2,318



38



5,135


Merger and going public expenses






664



664


Share-based compensation






6,029



6,029


Non-recurring litigation expenses, net of insurance proceeds






375



375


Legal and financial expenses for strategic review






132



132


Credit Agreement amendment expenses






15



15


Storm related repair expense, net of insurance recoveries




73





73


Expansion and pre-opening expenses


451







451


Allocation of corporate costs


2,084



987



(3,071)




Adjusted EBITDA


$

38,089



$

9,293



$

(3,084)



$

44,298


_______________________________

(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)(1)

(in thousands)


Six months ended June 30, 2019

Rhode
Island


Delaware


Biloxi


Other


Total

Revenue

$

168,980



$

27,275



$

63,149



$

4,445



$

263,849












Net income

42,775



1,332



8,748



(18,079)



34,776


Interest expense, net of interest income

3,266



59



(12)



12,937



16,250


Provision for income taxes

15,792



512



2,333



(6,819)



11,818


Depreciation and amortization

8,962



1,284



4,666



90



15,002


Non-operating income



(38)





(144)



(182)


Loss on extinguishment and modification of debt

1,038







453



1,491


Merger and going public expenses



206





6,993



7,199


Restructuring costs



716







716


Share-based compensation







1,780



1,780


Non-recurring litigation expenses, net of insurance proceeds





275



(308)



(33)


Pension audit payment

(519)









(519)


Acquisition costs







1,202



1,202


Credit Agreement amendment expenses







138



138


Professional and advisory fees associated with capital return program







1,703



1,703


Allocation of corporate costs

6,219



1,112



2,320



(9,651)




Adjusted EBITDA

77,533



5,183



18,330



(9,705)



$

91,341


 

Six months ended June 30, 2018


Rhode
Island


Biloxi


Other


Total

Revenue


$

148,308



$

62,024



$

5,289



$

215,621











Net income


39,407



9,160



(15,633)



32,934


Interest expense, net of interest income


4,442



(1)



6,326



10,767


Provision for income taxes


14,462



2,442



(4,304)



12,600


Depreciation and amortization


5,641



4,632



74



10,347


Merger and going public expenses






664



664


Newport Grand disposal loss


5,885







5,885


Share-based compensation






11,047



11,047


Non-recurring litigation expenses, net of insurance proceeds






1,233



1,233


Legal and financial expenses for strategic review






682



682


Credit Agreement amendment expenses






401



401


Storm related repair expense, net of insurance recoveries




213





213


Expansion and pre-opening expenses


485







485


Allocation of corporate costs


3,837



1,826



(5,663)




Adjusted EBITDA


$

74,159



$

18,272



$

(5,173)



$

87,258


_______________________________

(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)



Three Months Ended
June 30,




Six Months Ended
June 30,



(in thousands, except percentages)

2019


2018


Change


2019


2018


Change

Gaming revenue

$

100,234



$

82,266



21.8

%


$

191,102



$

161,848



18.1

%

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

106,836



98,003





209,492



190,048




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

20,964







22,483






Gross gaming revenue

$

228,034



$

180,269



26.5

%


$

423,077



$

351,896



20.2

%

_______________________________

(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)(1)

 


Three Months Ended
June 30,


Six Months Ended
June 30,


2019


2018


2019


2018

Net income applicable to common stockholders per diluted share

$

0.42



$

0.49



$

0.87



$

0.79


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



0.03





0.07


Loss on extinguishment and modification of debt

0.04





0.04




Merger and going public expenses

0.02



0.02



0.18



0.02


Restructuring costs

0.02





0.02




Newport Grand disposal loss







0.15


Non-recurring litigation expenses, net of insurance proceeds

0.01



0.01





0.03


Pension audit payment

(0.01)





(0.01)




Legal and financial expenses for strategic review







0.02


Acquisition costs

0.02





0.03




Credit Agreement amendment







0.01


Storm related repair expense, net of insurance recoveries







0.01


Expansion and pre-opening expenses



0.01





0.01


Professional and advisory fees associated with capital return program

0.04





0.04




Tax effect of adjustments

(0.03)



(0.01)



(0.08)



(0.07)


Adjusted net income per diluted share

$

0.51



$

0.56



$

1.10



$

1.03


_______________________________

(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 to download multimedia:http://www.prnewswire.com/news-releases/twin-river-announces-second-quarter-2019-results-300899741.html

SOURCE Twin River Worldwide Holdings, Inc.

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