Twin River Worldwide Holdings has revealed preliminary estimates of operating results for the quarter ended June 30, 2019. The firm has yet to finalize accounting for the period, and consolidated financial statements are expected to be available on completion of its modified Dutch auction tender offer. Final operating results for the second quarter will be published during the second full week of August.
Net revenue for the period has been estimated at between $146.5m and $148.5m versus $110.8m year-on-year, while net income is predicted to fall between $15.8m and $18.4m, down from $20.3m year-on-year. Adjusted EBITDA is expected to be up from $44.3m in 2018 to between $46m and $49m.
Rhode Island operations are estimated between $82.5m and $83.5m of net revenue and between $37.1m and $39.1m of adjusted EBITDA for the quarter ended June 30, 2019. The Biloxi and Dover operations are estimated between $31.9m and $32.3m and $30m and $30.5m of net revenue, respectively, and $8.8m and $9.8m and $4.7m and $5.7m of adjusted EBITDA, respectively, for the same period.
Remarking on the preliminary estimated results for the quarter, CEO and President George Papanier commented: “We are quite pleased with the company’s results in the quarter. Our Rhode Island operations performed well despite some quarterly softness in the New England gaming markets generally. Financial performance at Dover during our first full quarter of ownership exceeded our already high expectation due to our initial integration and optimization efforts and yet we still anticipate substantial physical and operating changes to be implemented.
“At Hard Rock Biloxi, we were pleased to see another quarter of solid performance as our operations there are stable and performing well. At the corporate level, we continue investing in order to prepare for more growth as evidenced by our recently announced acquisitions. Somewhat higher corporate costs in the second quarter reflect that investment.”
Papanier commented further on Rhode Island operations, specifically in context of increased competition. “Our mitigation strategy toward new regional competition is also proving itself in the early going, as the overall effect of new competition in Boston in late June is generally in-line with our expectations,” he noted.
“A distinct part of our rationale in building the Tiverton Casino & Hotel was aimed at anticipated competition. The ramping of Tiverton is proceeding according to plan, and the new facility has showed marked resilience since the new competition opened. We are seeing some impact at our Twin River Casino Hotel where table games have decreased somewhat, while the impact on slots has been less than expected so far.”
Papanier commented that the New England gaming markets had performed solidly through the first quarter of this year. “We did see some softness beginning early in the second quarter prior to the opening of the new Boston competition, and extending through the end of the quarter,” he said. “We attribute some of this softness to a challenging comparable period in 2018 as pent up demand in the second quarter of 2018 resulted from poor weather in the prior quarter.”