Twin River Worldwide Holdings is in the process of establishing a prudent, multi-phased approach to re-open its facilities, as the company reveals it has contingencies to reduce its operating cash burn rate to approximately $3m per month in preparation for long-term shutdowns.
As certain states and local governments initiate plans to reopen non-essential businesses, Twin River’s strategy encompasses screening of team members and guests upon entrance of the properties, thermal imaging cameras, enforcement of social distancing guidelines, including spacing between VLTs and limited or no table games to start, frequent cleaning and sanitising protocols for all areas, mask protection, and public awareness signage.
Issuing the guidance in its first quarter financial report, Twin River saw its performance for the January – March period significantly impacted upon the mandated shut-down of operations in mid-March as a result of COVID-19.
Noting incremental start-up costs that will temporarily increase as properties reopen, Twin River saw revenue during the quarter drop 9.5 per cent to $109.1m (2019: $120.6m). For the first two months of the year the figure stood at $90.2m, representing a 23.4 per cent rise from $73.1m.
Net loss for the quarter ended at $8.8m, as opposed to an income of $17.5m a year earlier, with adjusted EBITDA down 49.7 per cent to $22m (2019: $43.8m).
Action after the quarter has seen Twin River add three properties to its growing portfolio following agreements made alongside Eldorado Resorts, Caesars Entertainment and Vici Properties.
The operator is to firstly acquire Eldorado Shreveport Resort and Casino in Louisiana and the MontBleu Resort Casino and Spa in Lake Tahoe, Nevada for $155m from the former, as well as Bally’s Atlantic City Hotel and Casino for $25m from Caesars, who will receive $6m, and Vici, gaining the remaining $19m.
George Papanier, president and CEO, explained: “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 per cent in the first two months of the quarter.
“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.”
