Twin River reports $7M profit in Q3

PROVIDENCE – Twin River Worldwide Holdings Inc. reported a profit of $7 million in the third quarter of 2019, a 57.3% decline year over year, according to the company Thursday afternoon.

Earnings per diluted share were 18 cents, compared with 45 cents one year prior.

The company, which owns and operates Twin River Casino Hotel in Lincoln and the Tiverton Casino Hotel in Tiverton, had revenue of $129.3 million in the third quarter, a 17% increase year over year.

The company said the revenue increase was primarily attributable to the company’s acquisition of Dover Downs Hotel & Casino in Dover, Del. The company said revenue was offset, specifically at its Lincoln location, by increased competition in the New England market. Tiverton was said to be performing well in the quarter.

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Company operating costs and expenses increased 33.4% year over year to $107.9 million, including a 41.7% increase in advertising, general and administrative costs to $50 million.

“I am very pleased that our proven corporate strategy of accretive growth, continued diversification of our portfolio and a meaningful return of capital to shareholders continues to generate value for our stakeholders,” said George Papanier, CEO and president of Twin River Worldwide Holdings. “While we experienced the anticipated short-term impacts of new competition at our Twin River Casino Hotel in the quarter, we continued to reap the benefits of our disciplined [mergers and acquisitions] strategy, with Dover Downs and Tiverton both performing extremely well this quarter. Our overall plan is on track and the long-term value proposition we have laid out for our investors remains intact.”

Gaming revenue in the quarter increased 7.6% year over year to $88.3 million. Food and beverage revenue increased 48.8% year over year to $18.1 million. Hotel revenue increased 94.7% year over year to $11.1 million.

Total company revenue from Rhode Island operations was $67.8 million, including $52.5 million in gaming revenue, compared with a total of $74.8 million one year prior with $61.2 million in gaming revenue.

The company said it had paid $4.1 million in cash dividends in the quarter and repurchased roughly $162.7 million in stock. Twin River also said it has $83.2 million available for its capital return program at the end of the quarter.

The company said its acquisition of three hotel casinos in Colorado is expected to close in early 2020, which, if consummated, will result in three sports gaming licenses in Colorado.

The company also expects to close a $230 million deal on two casinos, one in Mississippi and one in Missouri, in early-to-mid-2020.

The company had $232.6 million in cash and cash equivalents at the end of the quarter.

Chris Bergenheim is the PBN web editor. He may be reached at Bergenheim@PBN.com.

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