Twin River Worldwide Holdings, Inc (TRWH) Misses Q1 EPS by 31c, Revenues Miss

Twin River Worldwide Holdings, Inc (NYSE: TRWH) reported Q1 EPS of ($0.07), $0.31 worse than the analyst estimate of $0.24. Revenue for the quarter came in at $109.15 million versus the consensus estimate of $128.1 million.

First Quarter 2020 and Recent Highlights

• Full quarter results impacted by mandated shut-down of property operations in mid-March
• Signs of moderation and recovery at Twin River Lincoln continued prior to its mandated shut-down
• Successful efforts to improve liquidity and reduce costs enabled the Company to focus on long-term
• Continued execution on diversification strategy with recently announced acquisitions
• Closed $275 million of new debt financing to enhance liquidity and support strategic growth opportunities

George Papanier, President and Chief Executive Officer, said "During these times, our highest priority is the health and safety of our team members, customers and communities. We continue to support the actions taken by state and local officials to help slow the spread of COVID-19, including the temporary closure of our properties, and continue to look to provide assistance wherever possible."

"Our Company started the year strong, reporting year-over-year revenue growth of over 23% in the first two months of the quarter," Mr. Papanier continued. "While our full quarter results were meaningfully impacted by the closure of our properties in March, we have taken broad-based actions to reduce expenses and enhance liquidity. Our leadership team has also remained hard at work executing on key strategic growth initiatives, including our recently announced deal to acquire three casinos from Eldorado and Caesars to further expand our geographic diversity and enhance our financial profile. Despite near-term uncertainties, we are confident that our strong balance sheet, liquidity and long-term strategic planning will enable us to emerge from this crisis in an even better position."

2020 Guidance

The Company expects that the COVID-19 pandemic will continue to negatively impact its results until its properties are allowed to re-open in full to the public and its guests return to pre-pandemic activities, which is indeterminable at this time as it is dependent on the severity of the pandemic, the duration of the mandatory shut down period, customer responses when its properties re-open and the challenges and uncertainty concerning the global economy. Given the uncertain impact of COVID-19 pandemic, the Company believes it is prudent to withdraw its 2020 full year guidance provided on March 3, 2020.

The Company has a plan to reduce its operating cash burn rate to approximately $3 million per month in preparation for a long-term shut down. As some states and local governments have initiated plans to re-open non-essential businesses, it is possible the Company may not need to institute such cash savings plans at the end of May. The addition of our previously announced acquisitions would add incremental cost to our operating cash burn rate. In either case, the Company believes it has sufficient liquidity in the unlikely event that our properties remain closed in excess of 18 months.

The Company notes that as it begins to re-open properties, it will incur incremental start-up costs that will temporarily increase its operating cash burn rate.

For earnings history and earnings-related data on Twin River Worldwide Holdings, Inc (TRWH) click here.

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