TRWH - Earnings call transcript Q3 2019

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Operator

Good afternoon. My name is Sheryl, and I will be your conference operator today. At this time, I would like to welcome everyone to the Twin River Worldwide Holdings Inc.

Third Quarter 2019 Earnings Conference Call. [Operator Instructions]

President Counsel. Vice Executive Eaton, and General Craig

You your conference. may begin

Craig Eaton

of and Good should joining copy release thank us everyone, earlier have QX today. issued on a you for now you afternoon, earnings By today's received our call.

release haven't, Relations tabs. that Investor accompanies the you News Presentations our of corporate are If www.twinriverwwholdings.com and in and under & call the available presentation earnings the the section this website at Events

Steve Twin President With our me Vice are call Officer; and Chief our Director Crisafulli, Chief our Capp, on Island; Joe Officer; Mark George Papanier, Financial Executive Finance; Minas, of and President Executive our President and River today's our Reporting. Jay SEC of McGrail, Vice Executive President Rhode of

comments forward-looking may forward-looking are company's might These results from Before the and we begin, discussed results include, we statements. statements involve differ uncertainties. SEC the materially filings. would and that by statements. in significant contain forward-looking made like projections these These risks expectations, discussed in everyone to estimates plans, and that may release risks management earnings Actual remind

management release call, that this Reconciliations in GAAP call. schedules non-GAAP included financial our measures today's the presentation most During refer comparable to to financial in contained the or are will the earnings certain measures. accompanies

over I will call now turn to George. the

George Papanier

call. Thank and afternoon, us thank earnings everyone, third you, quarter Good for Craig. you for our joining

follow-up and well detail steady introductory to as over proven of the corporate more going turn Steve, I'm provide After execution strategy. who'll comments, our call operational discuss my financial the about as results and our to

company. we as We're the transform we've excited about made progress to the continue

long-term and grow capital shareholder and the company, diversify year steps and for us last value or meaningful feel all the so, creation. while we've taken positioned returning well that strategically opportunistically extremely Over creating have value the we

Kansas Black mid-XXXX. early Early of closing previously high Dover upon the our M&A track to City We expected and both deals already record demonstrated Tiverton continue of successful to to expectations. in our on forward and and Hawk, Vicksburg meet exceed to look these applying results announced

quarter, Despite Hotel to quarter, for the we laid our introduced well believe plan competition long-term and investors. impact quarter. new change out no table In greater our the expected region we impact for value to this the in in overall that QX, Lincoln on games remains proposition River our on had Casino particularly on short-term have see we the the the of on Lincoln, as anticipated than Twin call competition business a our track third in

in we expansion market we in Despite during Promotional $X.X seen was in the which less the competitions' billion most prolonged significantly was quarter, aggressive observers' have particularly, Massachusetts expectations. the extremely than which the way little period. market, activity feel investment, fueled our trial of

competition did. believe X% grew Casino our unsustainable. you for third only it, competition as first in the $X.X Tiverton the approximately generated think million Overall, of in its quarter. quarter is share much spend quarter market market that our When We billion profit right-sized operations as the $XXX market during project about the

we've was as period optimistic spend have time the the well during understand to competition spend market, more be a taking of competition market response spend We on will some dealt a I'm feel After of targeted as to trial, our new began efficiency. going fully operational forward. rational impact marketing we market there the with with competitive initial going and

in post my impact that signs to of and see yet line environment, competition a feel While bottom overall expectations. out did we with moderate appeared initial what revenue the promotional Day Labor of we in August the we’re in moderation recovery to marked reflecting note our

and August, XX% XX% and For XX% down decreases to compared September, was July year-over-year revenue at in of Lincoln respectively.

been have of more, in break but The Lincoln XX% year-over-year and approximately down to down showed July September than and slot numbers signs respectively. in compared of were August decreases XX% recovery volumes September XX% less to at

compared Table same and the the XX% to in the games down continued taking is period, as one see we September saw period consideration moderation as but XXXX, decrease recovery than July accelerated view into an to the see less we we and the to head a XXXX more year-end. September experienced fact September XX% towards impact compared with of August. to expect Saturday Also, in XX% that trend an had prior volumes positive and we in

slots the note signs and competitive games We of Tiverton Hotel. helping trend continued X% is moderate with offset pressure XX% in performance declines approximately to continued year-over-year, down also that to the while Lincoln year-over-year where our in recovery Casino of shows only the Lincoln indicator table showed volume October for of also

pleased continues face We the new in show the are performance extremely with of the property, of resilience which marked to competition.

slots In volume tables, and XX% fact, in approximately in for increases resilience. underscoring showed October of indicators this XX% year-over-year Tiverton estimated

significant the at pleased executing properties. doing, quarter company's we what results doing fine. impact the only on is Regardless It that aside competitive threat what our we've we other is in portfolio our competitive the and the at market call believe quite our of implemented initiatives. continuing Lincoln, efficiency be to facing, Massachusetts share the current should the We're impact be is is which strategy, short-term with from that our and competition marketing back we're to noted were

both public the prior to XXXX provide continuing from today are Biloxi well for contribution single Our with to to be group. property which validated and us further to extremely transform steady enabled continues and consistent M&A the the a has quarter, multi-property with strategy corporation in we operator Tiverton performing Dover

EBITDA This contributed a to outperform of Dover high QX This of $XX.X which versus ownership. We've million the adjusted represented approximately improvement pleased our been and million revenues full sequential XX% particularly already in quarter EBITDA with second property quarter. just $X.X in of our expectations. adjusted continues

increase the a in of as instituting expected the and be early changes physical result still We initial several implemented. operating synergies additional to already from Dover from continued in the see profitability have benefits of strategies we to upgrades seeing and phases meaningful feel anticipate changes to are transformation addition Dover. we and transaction, In an our at marketing begun

that earnings time. these will estimates our reaffirm even that initial adjusted changes expect quarter to Based percentages. the rate Dover of double-digit run additional contributions over exceed come, of results the could on to we We meaningful drive more by expectation our improvements and belief EBITDA

At are we our see year-over-year. Revenues operations continue pleased Hotel corporate we level, quarter of Overall, at consistent were Hard well. Turning and stable Casino. another to consistent Biloxi, adjusted investments are the EBITDA & Rock growth performance expected in by to and for continue the evidenced track announced process necessary remain the on to prepare closing. Mississippi. work make through Colorado, our and further for their transactions scheduled and to regulatory to Missouri, These performing as acquisitions planned

Kansas Hawk close regulatory will in and of did QX QX recently XXXX. and or that City Black will soon that early be approval after in that Mississippi. receive We XXXX in expect We Vicksburg late QX early

represent and time state Colorado, transaction. accretive will obtaining to that DD what we upside of already were pleased three were the and not we at the the felt Hawk a us our we contemplated very Black licenses licenses which In was in acquisition. unexpected entered into These acquisition Proposition betting recently compelling closing result strategic sports upon passed in

and/or our We redevelopment through the from remain strategy of We fit the about properties opportunities acquisitions. by great operating these in opportunity these a portfolio assets these further accretive to excited our for net growth and diversification to flow increase believe our the see extremely are cash plans.

our Beyond announced strong. acquisitions, recently M&A pipeline remained the

the will we We opportunity disciplined. returns. delivering very opportunities are enhanced provide We that to actively fit looking at strategy many for shareholder and our focused acquiring continue we and on assets remain and believe assets best be

million of subject repurchases Further million million the $XXX shares share return the significant made to we announced of of dividend per shareholder quarterly the under approximately previously our of for atotal consideration quarter. a and $X.XX investments with during creation, approximately capital payment program value $XXX X.X

if the to industry. sheets best, continue in not of, have We the one balance

to Given ways position, return our there many value shareholders. we we feel are current can

disciplined to to levels back find as our will we continue accretive QX. we in M&A meaningful if at of did will however, represent shares assets, buy prudent explore investment, shares not continue We to a more that we hesitate

why Finally, to public legislators Rhode on and Island the in the reconsider should current Twin they inform River continues deal. IGT proposed

opposition that competition compared to deal that As this virtual primary is in for reason machines by Island. to are in is Rhode locks in worth IGT IGT's a monopoly Island Casinos. of our reminder, underperforming machines controlled that the it controller slot Rhode It noting

improve the our believe customers. to and content We Twin with the more performance state River for best approach that can securing traditional a

Rhode the now proposed likely hearings to is the chambers Finance Island Twin Over present, River scrutiny months, believe At Committee in Assembly. scheduled legislative intense has most any of at IGT year. course the and both is action next of last the testified we General deal under deferred by the few

pleased Representatives the we're the ensuring House for and that analysis facilities analysis to and Furthermore, solicit maximize VLT the of bids focus transaction on moved independent include have performance. will state an a of the the

has to our pleased perspective. also are We positive already that this led process some from changes

to suppliers, has have Lottery responded IGT our to VLTs customers these other from well XXX reallocated products.

under performing addition, which Link XXX the region are games including some best we In IGT's of in new allocation units the now. receiving another Lightning are Aristocrat's right

over it And to turn now, I'll Steve.

Steve Capp

George, thanks.

added expanding. three some Yes, you Tiverton which let if our some the that make me we overarching cash in quarter, into in flow. business is revenues we in about at company top has the commentary, we months Before business, our this annualizing, added of were for of we will, I expanding get an line segment kind of have is the pressure growing the two specific quarter look, - in company, comment over

timeframe flow do cash seen out those recovery October short in mentioned, those Our of revenues nature. term in initial and believe September believe as that we've are the in there. as We our Lincoln, July-August signs and George have some at we bottomed

QX work that. expect through this do that we'll way. year the in by will lot So QX of ways, resemble of I

business Lincoln in think first the and the got we're Vicksburg City that second top pleased we short quarters coming next that Twin more the Bigger into year. nonetheless, line at growing and in about and with Hawk, is and at impact the But nature. very Kansas being point we've Black term River acquisitions of our is

EBITDA adjusted offset Bear net income primarily that million in resulting on $X our refinancing the million million $X which expense global the Downs. somewhat impact respectively. and the in net in were segment of year-over-year a Island Dover of in in Turning down to interest million was was earnings $X about by Rhode the Rhode profitability May had increased the from at the yes, and course by $XX.X quarter. $XX.X particular, in That decrease and mind million income driven Island

Tiverton opened so Grand we quarter September the that of note the the third are comparability timing Regarding please in of Therefore, Rhode opening misalignment. in QX Tiverton segment, portions Island XXXX. impacted lapped Newport the XXXX, the of to by

partial and $X.X beverage revenues Tiverton's fourth not segment $X.X Our million opened in for decreased in about hotel to from by million. and total racing Rhode about until only Lincoln's offset million, XXXX. revenues for last offset gaming $X partially revenues a by quarter we of and revenue $XX This about Hotel were opening was the food million Island quarter $X of million lower being decline entertainment revenue. due million year $XX increase hotel got Higher

Lincoln were revenues and new should These retain incentives are revenues. increased in It at Lincoln that These to gaming be an impacted and at effort gaming incentives as to a Tiverton. to by our hotels of both players and related market grow shown Tiverton primarily respectively. were share reduction noted

free on on share. we Pai market several emphasis through our table Tiles part well actively table response, the launching games. As an Macau are These games new incentives offerings regaining introduction introduction Baccarat as of and initiatives of our as competitive initiatives of style include Gow with bet

seen bottom pleased the addition, launch trial that continue at in aimed very competition. Labor in hit to some and drawing stability new part We some marketing who point. to we play with Day, August I'd in and we're revenues we've In decline back recovery again, and some believe took say this since at customers programs new the trendline

perspective Despite two the overall, revenues revenue, the basis we share or competition excluding than last an the our opened on market decline new apples-to-apples in regional performed actually from better years. competitors gaming within a from

as share than guest competitors actually to Connecticut for slot We by more from and share prior was this which XX any points, define market basis Our our market Massachusetts. incentives. legacy grew adjustments win

comparable quarter increase the period, decline drivers for the combined this with third full well cost an of total as The Tiverton revenue of adjusted $X increase million in and of well the at Lincoln and EBITDA an quarter. million in expense almost with include generating $XX entertainment operating spend contributed versus expense of XXXX prior-year decline associated amenities increased as revenue increased as as marketing structure the a to

reminder, last just of for and one. year's Newport As two a Grand months consisted Tiverton operations for

As before, structures cost two the different and similar. stated quite we've the operations are are not

in amenities and new Additional not operation, revenue stadium a place include last generating gaming hotel. the new Sportsbook year

some in which made reflect labor we primarily entire play as savings labor the quarter, in the third pronounced in quarter. which reductions did experience quarter We be quarter, the in for expect be the the will more fourth reductions will third

reflected year-over-year. electronic costs operating player also These form are should the that note revenues are $X.X gaming not additional expenses. million play comps and of with You by incentives netted in in free increased and

revenues reported Rhode which at our Downs million contributing of of how reported George continues and represent gaming Dover Island nearly We state is quarter. consists segment the the Dover it exceed share in of to are Delaware of everyone with to mentioned, segment net that the remind that was our departure in Delaware revenues Switching expectations from our presentation segment, revenues, Dover want to $XX of a pre-acquisition. the only our as revenue consistent

instituted this Operating income and begins for year. cost marketing from savings the and Delaware to was in benefits third $X.X investments as million of initiatives quarters second the both property see

adjusted EBITDA, quarter. million mentioned, The for George resulting the $X.X was as

the and opening floor we Italian food several a quarter, our of beverage restaurant. including the reconfiguration and new This options, finalized Dover to gaming updates of at

experience. also beginning this brand, the to to we introduce in which which announce we very licensing the this on will expect of factory think agreement, to premium quarter I'd take opportunity sugar customer We're XXXX. second positive like impact open national have excited overall a of to a quite

decrease $X.X saw million, the results decreased $XXX,XXX Turning a remains to the part and of adjusted about business consistent normal just about year-over-year flows was the Biloxi us, the of and a very Biloxi quarter for briefly. Rock stable a million, of for nice is portfolio. of $XXX,XXX. decrease about to operation decrease That and revenue Hard ebbs income and as EBITDA $X.X very was Operating a stable performer important $XX $XXX,XXX. million that

our costs to When you impact want to our the I increased of operations other racetrack by the allocated operations briefly Arapahoe Aurora, reported on Park costs Finally, loss comment consist and the reportable in the $XXX,XXX. corporate of as which GAAP adjusted segments, Colorado. for of primarily segment under exclude EBITDA our Other about

additional corporate In is essence, this expense.

have additional staff compliance we for prepare full SOX to We among in a start other as and in XXXX settle as and company initiatives requirements. readiness certain new public

in to settle continue properly a to in as we yes, company. invest So as corporate public necessary

address be our community. from items With that, the and a to that hope let investor away segment will few I turn reporting and important me other interesting

$X.X paid million in QX The on. The well that detail program touched is which return first dividend known. capital bit is a of about more George our we

modification pretty results but those. a there well think the slight is to known tender I are

quickly. the the a brokers second don't We $XX million in of shares, out on few essentially but the $X million worry, those rather stake million returned process, final redeployed with there the one quarter, funds and did that and purchased invest backed shares tender we've from in involved were the by of X.X

shares basis another and the buyback pick million the invested offer we program. X.X tender open stock the period, on Following up in $XX in necessary did another an and million quiet that program company's market

buyback million million, the count we program we in end share pre-tender in about the of of X.X million and shares through up tender, shares the quarter. up $XXX total million the X.X in from picked the picked invested XX.X So

$X We through invested purchased to tender. of another shares that million million the shares month XX% is the brings of approximately October, to that the to us where picked during up been repurchased another subsequent all having total million XX.X or X.X XXX,XXX and of shares in the

year. program all pleased be the I earlier at I have in X the capital math our making return have up, November activity, mentioned if paid, million very so about add in million under you $XX as million We're do been that $XXX subsequent believe own busy an we - - all approved dividends both to on $XX the to the of left investment that buyback the capital that's of We've this and Board the right this. accretive been in that mentioned, also stock we of are by what return program. potentially of form

as and long as And growth we will being maintain the and and that see to may alternative - mentioned, that well will better this return balance continue a George very as investments one we there is of between continue. we capital balance, we

about on sheet Couple comments mentioned George our more what balance position.

balance entire industry. have of We the sheets in the one strongest

entire the leverage cash. million of the $XXX some We quarter have in We finished industry. lowest the with of total

to we In $XXX an that, million. of revolving facility addition unfunded have credit

So have We quarter's $XXX debt million book at of had and $XXX nearly total of liquidity about us. million end equity. to million available of we $XXX shareholders'

cash net at X specifically. under Our a leverage debt on was basis flow X.X

is, me facing a that a that that had who been well share in perception couple some I'm and very a it that very part feedback prior program, had of not where I filings, and one interesting what found exactly the offer issue. of addressing shareholder seen low problem. make company. we've of come recently the our think comments of We've the understand be the stock the out issue some upcoming attributable I we've learn lift of may to about and we details, perceived active in to think about that XXs we tender and seeking but from buyback much or a will that, sure addressed way, forms Let anecdotally, have of along specific nutshell, what And received XX the a overhang perceive liquidity shareholders more I liquidity may

some to be a standard like on that desire natural not case. seller, be seller. example comment in perception offering general We - We to do the a well, I into that of also this is I'd the generate June. tend in to general back do tried and calls to off that, cited when not may believe they time, tender shares the a are secondary get me couple you on this million get to at

of the was seller, obviously that tender momentum offering. way fact So is, the provide some for and secondary to the lead matter trying general that

it To think talking We tried of in this we it work, enable was show be and day, of buyers, a road My is that organized point didn't as Craig company was stoke in a or seller. General serve, I natural Standard continue secondary address some should fashion, we pivot great kind I'm pivot Eaton about would leadership idea sell-side into put believe the in of a to a secondary George that as and and - show to put to and a quite the as book to frankly, long the point otherwise we but issue momentum an looking overhang good myself, idea. and and we that shares that we sellers it worked. would to the thought be on that were have to aspect and

there but percentage your because and the what to tender do exactly tender through motivation we you that's offer. the in as that that to I yes, was ownership company preserve that rata all the Well, strongly have percentage pro ownership Likewise, want if that's on get was well. general you feedback believe in gees,

company So we progress. lot to I the in what frankly so quite - on largest as and is made a think continue basis. do there's don't overhang progress think these shareholder real we've a necessary an can, we'll seller, go-forward perspective, a of the from I

of through lift company George's and do So and comments I as of market look - QX ramping then QX think games. we the continue that particularly market mine year share. stabilizes, at Lincoln we and we will a a will the the this Northeast are summary continue at we of market there what in as we be and outlook believe recaptured recovery a And robust. for get share that the believe is see to table

as through as after and plan at a the in Hawk profile that annualizes in City will Kansas anticipate annualize In on approval. that to we as cash EBITDA Dover point. quarter, to XXXX, I conjunction continue results we and growth fold on by this the our flow with schedule growing we that regulatory Black and back of quarter-to-quarter fold be that then get and ramping will will subject we in robust will Tiverton Vicksburg

look, So set trajectory is, Lincoln we've essentially what quarter terms and in us at the we're had anticipated. of flow a given some that two doing or the of competition cash back had we growth

and is re-calendarization kind expect of at we all early starting flows Black year and Dover. cash this improvements in to with next Hawk the see continued But of that beyond growth

So the valuation program much line. still here is in very

We the growing year. into cash flows see future are excited next about and

One clear. this final sure comment, I'm I've said it's not before. entirely

In Delaware to system lottery the gaming the of a tech operator state I'm again. machines. requires be - it operator be VLT So of the through try and Rhode that going Island,

don't such, X,XXX machines. is actually for own Delaware. we we we means as between actually purchase spend don't that two machines the maintain the and dollars or There Rhode the Island What machines the about CapEx are don't machines and states. that And machines we the don't in

from million We a of if $XX,XXX price assumptions, calculate new is capital can those based us $XX structure for purchase replacement of gaming assumptions play approximately these seven year cycle, states the with in want machine, that couple worth avoided you to. if that you expenditure lottery two on a right.

the proxy add cash a to flow. than our great, have if you it that's free flow, of after apples-to-apples the use million rest in to is, But It's easy, $XX pure EBITDA interest, this cash adjusted you is want adjusted million it's we're That's it's get after EBITDA expect of free you $XX the because our most translated in higher but for per years. not a cash flow, the effective, doing back in as states. a EBITDA you efficient, gaming these us my to with point I see two for the of we adjusted ours industry, industry system difference if to would free CapEx, were from year lottery think

that - flows EBITDA It's action, So give it, level. this mentioned there of is power you going we've our of than ad Feel our call think more think real that. will, purchasing bite powerful if line, We walk overall real that's free in just the the to if through dollars cash a to to on it's are cash, couple the math me roadshows. it's at company. we of the the prior free mentioned bottom word, size We call has. EBITDA the on it to rest flow relative to you pretty industry

going So to Thanks for to it those turn comments, are your I'm my George. back attention.

George Papanier

Well, With to your it questions. for the up thank you, that, open Steve. operator I'll ask

Operator

go from Please John Union comes of ahead. Gaming. The [Operator question DeCree first Instructions]

is line Your open.

John DeCree

guess, I George, talk I in operating Rhode or leverage margin about Steve, wanted the, to Islands.

about think aware on you labor Difficulty] for adjustments. think one's elaborate revenue those some the talked of initiatives, you some decline, we well those. [Technical Wondering I reports that there could state when saw you've like about kind But -- if what fixed of obviously the trends sequential cost pretty margin the cost some of every

Operator

DeCree. John

Your line is open. still

John DeCree

guys you did hear the not question, Hi, apologize. I

George Papanier

got You Could you halfway, off cut sorry. repeat? John,

John DeCree

Sure.

recovery we in to expect the overall next material kind color level and additional if see the of volumes or Lincoln, bit of margin given come couple over see the in new some little to some of improvement? of gaming of margin the volumes need a some we efficiencies we back us give if you looking should a gaming before you're harvest on could quarters, Steve, Just,

Steve Capp

think component with it. that's Well, John, fixed ways the two a a got significant it's spree, margin back to to all pretty get cuts cost I on hard cost business

it's So, glove, think in hand will. if very we much you

excuse Northeast last recoveries so we expect far we've Northeast continue September digests me, and in we that's that seen as think gaming months will a market within or With and settles new the marketing, trend the that certainly October, so. relatively the modest competition XX out

that. sort [Technical pretty that's Difficulty] rising of So, relatively focused tide on

been Those So labor announced publicized. some have cuts. we've Those away. widely had have long been

mentioned imposed As QX. in call, way along the in those the were

So quarter come of the if in some slowly and those QX relatively beyond. George, revenues, the were else of more our through matter. in will, QX and than Recovering and impact they will more say? that entire the will quarterization, when so have would initiatives will you what applicable QX, if you

George Papanier

I Steve take fourth the initiated the we cuts effect third quarter mean, the it effectively on mid-August. full cuts touched quarter those that in of from because place will the

through to create providing just we're we're So, going part that to continue - efficiencies XXXX, of that's to part property. of direction our just that's the

big focused a in a implementing that to wait and to and to we're want see do, going very the check. which think add the it's that I to part is market customers a just continue I in, are profitable we're we're marketing, this, just to provide level stay the of going point is crowded on took after of I experience we we're effective and to competing and tuned going cost we're approach, what customer keep

So direction the we're heading. good that about we feel

John DeCree

could you've other Thanks, best not information, the suppliers, concessions the of with or something of be state on If reports Steve. there as or was guess one some those negotiations coming seen you slot about along a of any with the I but talked we've lines. that if Thanks, negotiations, Rhode ask of I are available media talked of machines from maybe part reduction wondering and your George. for that reported some tax think some negotiations might state? concessions source could Island the but in some I some on you've opportunities other about, additional as along anything comment like I other the potential continue mentioned way if some that you different I the

George Papanier

we've some looking with to anything good So, state tax changes at enjoyed the recently. VLT or of our discussions rate sort else. really We're not any

beyond in proposal, And deals. kind are progress we're our bid George we're regulatory off think products goes really to we - to made continue some there work to agreement and we scenarios opportunity that that, if of our coming we to adjusting fit that the state which our next see on under to offering as we competitive to have the now, quality with consumers. earlier, strategy. that's We growth mentioned submit evaluate of year. right out something IGT would as a improve partnership We the just going long-term have some to the until an But that

Operator

Stifel. Your next of question Boyer ahead. go Brad Please comes from

open. line Your is

George Papanier

you there? Brad, Hey,

Operator

Boyer? line Brad Your is open.

Brad Boyer

hear you me? can Guys,

George Papanier

you we Brad. now, Yes, hear

Brad Boyer

you hear Can now? me

George Papanier

Yes.

Brad Boyer

Yes, sorry. difficulties. I technical so Yes, some had

October. So sort initially getting I I obviously be at the is in should the types the the little a sort this this, game guys particular. margins, mean or promotional dig it of How are the some both? going heard encouraging back, we over on that of just EBITDA, of two in think side, obviously, property to a thinking John the the maybe for focus signs quarters. how you be revenues for start there’s wants rebuilding maybe when going we if think the to talk apologize so revenue. the be in to speak I bit little guess levers his we how new of is, but couple trends sake but of George, to next for but margin, guess bit to should the What and sounds just questions you're path Steve, Lincoln pretty I mean you on I about I there first of that? question, I a Rhode about about like seeing question back here introduce I'm the for at about is Island kind should thinking me and it, take I of some asked whoever guess,

Steve Capp

was there That close John look, to solution we'll time. response a to suggest But multi-faceted again, summarize, going over what previously, us nutshell. to asked this. It's don't we in is be a golden maybe any DeCree by just that

be incremental. that’s turn believe, or we've as although September either turn results of to dramatic there Just we in has seen not at been bit in Lincoln October, a a a going

and promo will on the been. rebuilding long work gaming kind for the how the out it it's do timing remains of in Northeast the some we'll and incremental, settles as marketing the as of margin be depends market how activity The kind of for there aggressive and

in October, a we on commented George of don't we free don't that you that think could play think what Some is saw on pullback and return, sustainable, of I long-term think We a earlier. that's September bit know.

some other these will, George as look just introducing games are revenue, a as and all the market harder will share which new well, way. for a and be for taking we're mentioned also looking at along place things So if in quarter you full incremental, doing it costs, things will regains

of George So, anything kind else? multifaceted.

George Papanier

Brad. Yes,

two it's increase earlier, revenue also we're looking earlier. this initiative this on cost touched are a but and there revenues - - focused we've touched on on bit So, little levers, From generate marketing to we're a perspective, containment. we

done we've bets, incentives significant We're customers focused is rated And on as table free impact. Steve introduced we historically in mentioned not games example to where we've past, is do more of had it. of a providing an that we've what the that games did table be or to seems

get Macau business relating I'm of going Pai more to and have. be it's of competitive and to some increasing Asian focus that BJ of some enhance of style the introduction not to these XXXX to Tiles, - to we us going in Gow allow a component project will that's the offerings we're offerings to that more closer that in Baccarat, also lives some CapEx minibox Boston, on going there's to - proximity and the the bit into also rate introduced a directly for and little of we're we but tournaments real details, granular

on some that the was was just - rational trying we're to waiting a the Steve they code not they slot happen, if around spent, feel I pursuing did. to sitting has business. to really opportunities the that to ability kind bit in attract both database itself as level of level which they had trial of thought weren't draw opposed to little as $X.X they're point that side on we and just of think we're to of a the be see So I aggressively And things of table conduct, a marketing there there what profitable made, on really that focused was add billion behavior and will

always with thought more the south in directly less competition established in diminish of under-penetrated and to of irrational Boston market level after at spend So competing think existed our Day I visitation and that from this to north from towards that looking they lot Labor garner feel zone in Boston. a particular, could cost I really the lot a they're supposed that starting started hopefully I

Brad Boyer

of sort $XXX question a $XX second expand and expect fast I in had sort perpetuity, of how out kind number returns. to you $XXX million about was should then said million that as of you timeline it you the shy November there around we is of think and it guess think just you're I And million, X. when there hard capital Realized that? guys around just of

Steve Capp

by Brad, to be and hand, investment year the return timeline. look our price stock no, capital where of set program frankly forms. on open-ended Board that $XXX is types really time about other it we're on the approved was that and will the return and at opportunities we frame no opportunistic investment this various there looking The the is million in the of one versus quite perceived depending earlier

situation an no, the it opportunistic the it's think the - Goe So of was million at number I end $XX quarter.

George Papanier

program, yeah, Brad. that, about the right in you're Left

Steve Capp

than or more relative spend in opportunity less may we on look stock. depending the yes, So that the

Brad Boyer

ramping so at there, all that sort what then based maybe to around healthy fairly of just we seeing out the environment maybe question sort you're you there is the is sweet first is speak. today? pretty open this guys entering dynamic follow M&A into bit closely, And is, out mean, kind assets? competitive guys one the as be million even where at on have like Eldorado willing healthier look question little spot, and what $XX integrating far prior a of like additional to last and second Thanks. to guess I but fully your sub out in kind to M&A, ball, you it I relatively would still of like of as there then today the opportunity think it's And seems set - I play

Steve Capp

are M&A, have always busy. a There we to continue our tires a remain in lot is - Thanks, pleasure on. lot Brad. a look that. regarding you team of Yeah and pretty doing of kick tires to

We whether of other investment that's stock are priority the bar development or job that an buyback on part one. program opportunities accretive initiatives that's growth very as absolute we remains that here whether and none whether that's focused or M&A the mentioned previously, - overriding consider

accretion So by between really return settled the relative versus initiative other. balance the of and the of is perceived one growth capital

in touch what the them and lot counterparts well very front, time - know remain sector close we aggressive and spent and very it not us with let and touch keep done, yet, we specifically a we of viable available. close our but open On REIT those a we we remains and you, look M&A execute to liquidity else everyone that we to that and one of interesting in a keep of me the financing option and path in not to is have did tell we've

pretty seems you said, as M&A And healthy. market

we and would M&A the a viable of not competitors that's in the of quick kind - a we're be perception, be of add there not that's seeing as normally going on the whether lay quite So given than that much in out And we're kind case around other seeing of of and just trafficking happening financing it land industry sector what the I that lot whether be some just opportunities would things true may a is of we're or accretive a focus internally kind be option be and opportunities that we our for to would bigger mindful - matter, continue bigger processes proceed there, other so really look, the us. the as for M&A things look disciplined of and and on or doesn't forward. at may and we to really we'll as observation driven of as - to have very lot

it. So for Brad, questions. thanks We appreciate the

Operator

comes of ahead. Barry go next SunTrust. Jonas Your from question Please

is line Your open.

Barry Jonas

Steve, clarify the to just question. last

real existing monetizing towards Is new more As for towards it properties? you're REITs. having your or M&A with estate OpCo, conversations partnering for

Steve Capp

I'm a all of bit. definitely. Yeah, set things. little Yes, We kidding that's right. those talk the about Barry, opportunities,

You bet.

Barry Jonas

with wanted that Colorado, nice getting touch a on state. So the sports definitely approved to in betting touch

be your potential about partnerships those thinking perhaps would early them licenses, helpful? you're how on curious or you any Just monetize look would thoughts there to a strategy

George Papanier

George. is This

referendum go expect XXXX, three the running first the those into and assets know, on So, or and by as not authorizes close aware license Casino betting quarter per out the who and roll to Colorado sports May for splits effect XXXX; one during are of skins we we had low you Hawk to the Black three. X,

been various one and the our third-party providers potentially the the current with for to to skins company. two in no final regard we're point. So agreements with discussions keep this But skins, there's at is content partner but on thinking

Barry Jonas

Understood.

questions rest The thanks. been have Okay, my already asked. of

George Papanier

Barry. I it. Thanks, appreciate

Operator

go Please question from of next Lance ahead. Vitanza Your Cowen. comes

Your line is open.

Lance Vitanza

fair technical other on thanks check? decided of let bit checked you Lincoln, And had I other outlook. ask the But not just And but you've a following for given about some leaseback. that difficulties. out little that in answer the second too is and all wouldn't you right, the ago, a that I the peers was mean I assume would if of all checked structures boxes in repeating for questions, there effectively than the core the the certainly even bidding that other step sort it lower Is potential of that sale question use me to boxes. on relative leaseback fact the perhaps I a to to that sale wouldn't leverage would the consider property gave looks, you some M&A know your - a you because I you property

Steve Capp

Yes, Lance. Yes. That's definitely right.

George Papanier

it's open structure George. OpCo/prop-co it. is look tires kick continue We're going situational like think to and opportunity will Lance, and we're strategic our with that's I say, be to plan to be we'll to going an just would we're I that something and this and to opened -

Steve Capp

open one alternative number what the that create is, right said, job a George financing of all situation which to best, Lance it's all gets kind considered in will about and we're really It's to for as which end that. most is look, given back a we and value. definitely the option, the financing

Lance Vitanza

follow have Colorado you about to important discuss conversations up may at I think with are talked so this Denver with if but in around that those already describe how such gaming Las wanted less there I in officials or we the to facilities an the potential can market this And then Vegas, past, on could and and offline having state you And of remote gaming you state. regarding areas tone stage? feeder

Steve Capp

really-- not no Lance,

George Papanier

not We're prepared.

George Papanier

into not to get that. We're going

Hawk into the the focused on the Now brand kind closing new, sports Black The of on only very reality. the of the integration of - betting screen. radar come news although that had on It's right certainly look now. integration is we're licenses just and we've

So our of the those Arapahoe operate - licenses. focus we obviously, many on other look is and there let we out OTB

and state So current the that's we're in focus. that pretty busy

Lance Vitanza

time if whatever and the most, pretty was That low said, on you good given given repurchase. don't front, that work probably Do buyback of I overhang most greater-than-expected up with I out of leverage, guys cleared Last on one just competition, my have program. done that? you for to think level And progress continue follow hear agree I me dispute would being a lot now is thought the lot a share there. you the any, that good of there. is A of a be the you

George Papanier

relative Brad accretion Look, growth lot a this environment change I I over we it's attention going dynamic we the buyback gun to M&A the in make give John firm the I other, are or very all stock look, program, it's opportunity, those as if one and decisions mentioned, have think dynamically. - time. a it's paying relative tell as continue we're to answer, because valuations wouldn't opinion very close in we of create those your by you look And this comment and powder side whether had opportunism buyback the look left mentioned a on development, as program. look, a and But, even duly I activity earlier, can noted, or about will still you it can

Lance Vitanza

me, just outlook performance. for And the on then for lastly

positive recovering to comping how something sounds post You some like think tempered, fourth line. or of type should I in the And maybe could think that's that we potentially to but it stability mentioned that's event. of I EBITDA you first the of there's is happen 'XX Day, more that quickly know on that know but back extent obviously, It somewhat Labor getting seems lots half of unknowns quarter? the about

Steve Capp

Lance, to line? would you what clarify back getting EBITDA on positive

Lance Vitanza

consolidated. the growth To growth on year-over-year - EBITDA line, positive

Steve Capp

You like of out mean Lincoln.

Lance Vitanza

mean I No, for consolidated the whole company.

Steve Capp

Whole consolidated.

Lance Vitanza

realistically of were at So comping nicely Boston quickly quarters. next we took think a temporal or for with more get should the words, again. to couple is how you be first back last in question is EBITDA be some pressure positive other to you likely know thing a comping it's going half Obviously from quarter. point, I that this fourth in of of little opening the just and is My that quarter to the going you're U-turn positive that year? that, bit a in on

Steve Capp

seasonal of Look quarter cold, right, cutting our that - frankly. a quarter it's against year we lost. as heading look a we're seasonal - lowest got think quite we I fairly as at look and low see of out over similar the had probably up We QX Yes probably look quarter so we season I the but lining that kind to and I comments, into so fair look it's this horizon that's Lance, mentioned my of us. that's question, many in XQ part

can that actually points a some fact measure can we George of maintain often if the is positive, So QX, as parity - out. that we to

So that here. on. dynamics in about other think is then there going And the play

kind bottomed or of trend intend we've think, as as then we do that September, go we've October, continues, we One, that if we've out that growing said we at Lincoln, got frame, January we our and friends the Dorado. be El assets full time portfolio. from think other at Black into think the will two we in April-May the expect We then Hawk

the under our and that results You have Dover far. so together annualization quarters of two we package with at all only belt

yes, given a to anticipate getting those and cash once just little story platform we fourth be XXXX we candid cash program XXXX, all see, flattish do growing see year, yes quarter We mentioned again. of flow into then growing likely flow I next as dynamics,

Operator

questions are will the There call further you. no turn Papanier, time. this Mr. at to I over back

George Papanier

has coming Hopefully forward want holiday Thank all interest our thank everyone Twin to and about for a we wonderful talking you, Year. season QX and your for in today the look operator. I in to call you and back New joining River.

Operator

concludes today’s call. This conference

disconnect. You now may

Bally's (BALY) 14 Nov 192019 Q3 Earnings call transcript