Twin River Forecasts Q3 Revenue up to $130 Million, Sells $125 Million in Debt

Posted on: October 6, 2020, 09:13h. 

Last updated on: October 6, 2020, 12:43h.

Regional gaming company Twin River Worldwide Holdings (NYSE:TRWH) delivered an early look at its third-quarter results today. It expects earnings before interest, taxes, depreciation and amortization (EBITDA) of $30 million to $40 million on revenue of $100 million to $130 million.

Twin River
The sportsbook at the Twin River Casino in Rhode Island. The company forecast Q3 revenue today that beats Wall Street estimates. (Image: Boston Globe)

At the midpoint of that turnover range, the operator of Rhode Island’s two casinos would report sales of $115 million for the September quarter, topping the Wall Street consensus estimate of $99.96 million. On a per share basis, analysts expect TRWH to earn four cents for the quarter. Over the past 90 days, two analysts lifted earnings estimates on the gaming company.

The company expects to be cash flow positive for the third quarter of 2020 (excluding the acquisition of Casino KC and Casino Vicksburg), and ended the quarter with liquidity in excess of $360.0 million inclusive of availability under its revolving credit facility,” according to a statement issued by TRWH.

The owner of nine casinos in five states, Twin River said it expects to deliver third-quarter results late this month or in early November. In the June quarter, the company’s per share loss was 15 cents better than analysts expected, while revenue topped estimates by $11.54 million.

Raising Capital, Too

TRWH is the second gaming company in as many days to not only give investors an early look at July through September financial results but also announce a capital raise, joining DraftKings (NASDAQ: DKNG) in doing so.

The Rhode Island-based company said it’s selling $125 million worth of senior notes due in 2027 at an interest rate of 6.750 percent. Those proceeds will be used for “general corporate purposes, which could include, in addition to funding operations, acquisitions and other transactions.”

That announcement comes less than a week after the operator said it’s buying Jumer’s Casino & Hotel in Rock Island, Ill. for $120 million in cash.

Today’s note sale is being tacked onto a similar $400 million transaction TRWH engaged in last year, meaning the operator has $525 million of senior debt coming due in 2027.

Working Through Deals

The statement, including the earnings and revenue outlooks as well as news of the note sale, did not feature updates on TRWH’s pending acquisitions.

In addition to the recently announced Jumer’s purchase, Twin River is in the process of acquiring Bally’s Atlantic City. Eldorado Shreveport Resort and Casino in Louisiana, and the MontBleu Resort Casino in Lake Tahoe, Nevada from Caesars Entertainment for a combined $180 million.

Upon wrapping up those four deals, TWRH will run 13 gaming venues in nine states.

Earlier this year, executives said they plan to be “opportunistic” in looking for new acquisitions, adding that they’re planning an aggressive approach to venturing into high-growth segments, such as iGaming and sports betting.