TRWH - Earnings call transcript Q1 2020

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Operator

Ladies and gentlemen, thank you for standing by. And welcome to the Twin River Worldwide Holdings Inc.

First Quarter Earnings Call [Operator Instructions].

I would now like to hand the conference over to your speaker for today, Craig Eaton, Executive Vice President and General Counsel. Please go ahead, Mr. Eaton.

Craig Eaton

staying thank that joining family, copy each colleagues safe and call. on friends of everyone, you morning. are hope now earnings I of and earlier our afternoon, QX you received release us for today's and should XXXX Good have By issued a this healthy. you, your

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

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

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

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

now will over the turn George. I to call

George Papanier

press battle. on over including COVID-XX we work this earnings response, have all a and and workers everyone I friendships like afternoon, announced several appreciate how everyone. the our thank bravery during and everyone release. times and morning's life, releases, us is unprecedented outlined that times family, this In to response the executed we hard good are. outbreak, hope last through been and for Craig, Thanks frontline would us. multi-faceted which I sacred These remind to weeks safe have the these And joining everyday in their trying staying fighting

few a a have response We'll minutes. in on more

However, new opportunity ongoing to discuss public exciting this is some our and strategy. developments our first corporate

there. to Shreveport X.X Resort ago, to Bally’s and Nevada Caesars and start I in intention the About Atlantic weeks well the an announced Eldorado to as Spa & agreement Eldorado, as our Properties. Tahoe, we acquire So Lake Casino Vici want from Resort City in MontBleu from Louisiana, acquire

These accretive earnings. transactions expected are to be to immediately

We are even diversification three represent and for these a growth executing properties. opportunity continue extremely about markets valuation excited attractive to the prospect more in These acquisitions from our unique and on multiples. attractive future expansion strategy

approach the to and M&A, As are to acquisitions integrating low well others and example. of sheet successfully take position opportunities compete these properties they proven of as advantage us arise compared well track before, and to as we've strong disciplined perfect record balance new our effectively leverage in stated a industry, to as our

Eldorado Starting payment, acquire purchase transaction, two of and operations. will represents these combined This cash MontBleu's no approximately synergies. with the and XX deferred company properties forma from costs $XXX X.X implied trailing million pro closing. year Shreveport's price $XX one multiple million price excluding after month the impact a EBITDA basis operations purchase potential includes payable times, and any on real interest bearing estate an revenue for

through of landlord, agreement entered the have XXXX into XXXX. an the MontBleu's also lease extension We end options amended with with for including the term extend of to

an throughout a City for experience reward property great recently beautiful property of characteristics lot in Biloxi as with Market to Shreveport Rock our resort through looking a had our there considerable success. of top MontBleu a tier Shreveport major is and is customers destination we Hard have Bossier forward went a renovation. where property portfolio. We're offering

completion regulatory these a acquisition The approvals, subject the of state of local condition. FTC merger been to financing acquisition Caesars. has upon and to is the The subject of and and Eldorado conditioned properties two proposed and company's is

our of closed satisfied Monday, we when debt new a However, financing minutes. few past $XXX that will million, this was on cover which in Steve

book purchase trailing approximately sports acquisition, X.X property. million XX on flows acquire believe will and asset and and Bally's operated. Bally's and are certain iGaming, represents build of betting the upside multiple the price the we as from any existing structured of implied of which revenue the a nice also and launch cash the The EBITDA an acquisition agreement they provide the month will $XX from which times, out license impact covering is potential this assets online synergies. Part Vici purchase, to of with we property to sports for Caesars Turning cost excluding an

of attracted require team any collectively center current also years to able believe well-maintained many experience has short-term assets our or executive acquire Being any that maintenance we incredibly We three and Bally’s well had model do there. its investment. in of us. Boardwalk and fits market, not was to significant deferred very the with material location all have been capital of note CapEx that these Our

or rooms to period, over expect of is expected not capital and refurbish which investment will the year do XXX so three require to total. we of phased Bally’s, So significant be

multiple cash to customers portfolio assets all fit and these create to our revenues meaningfully that will integration number great addition at in contracted approach cross strengthening while for Along believe five with Vicksburg, our our announced proven markets. eager Kansas drive acquisitions properties significant a of We profile, City Twin are believe geographic are of marketing locations. our operating to and previously apply River key of enhance and see and financial We flows. presence for incremental opportunities these of our we these

diligently acquisitions commission half state through from later this close we respect approvals jurisdictions, of acquisition XXXX. We're City pending soon FTC meeting including regulatory first and gaming the late likely expect the XXXX, Bally’s to for will agenda Missouri in note approval. and the QX transaction process and that And the in MontBleu to currently in required are the expect working in close regulatory close in Kansas month, of remain currently on on the to next after. obtaining Shreveport track We're that and on Missouri the XXXX, Vicksburg close

I'm going extremely mean company forward. what and excited successes our they will M&A for about the

Within I'll collectively update next at we months, operating turn our additional recent it over we and on now an Steve? times. will X be Steve acquired provide which five XX liquidity. properties, the to financing to

Steve Capp

Thank you, George.

Term As Eldorado financing agreement George Shreveport Monday million under the to mentioned, we our $XXX satisfied announced this the B. financing on That closed River's Resorts. asset past Twin previously contingency from acquire new MontBleu and Loan

repay million of for the take $XXX credit revolving will process approval transactions company borrowings facility. under some credit regulatory the As these did bank time, the all

However, interest the that Borrowings per loan borrowings under LIBOR credit be the in the will bear available revolver through future annum will XXXX term X% date. plus facility at for maturity accordance increased with agreement.

that very Let covenant recently. successfully me make executed about comments a amendment we the couple of

covenant and our amend the lenders credit to bank compliance also with all, of covenant new of had in the pandemic. the other prior to that announced worked XX, the were we provide through say, leverage our March COVID-XX to financial effects Nonetheless company's with facility the I XXth from the relief financial financing, certain financial quarter. of the First XXXX covenant we we April on terms covenants, and should

a bank million will no measured amounts. last of at into which must each We essence, the June, but leverage the XXth, in following comply relief of on the credit company thereafter liquidity the at the required to the million of need relief month million July hand March with liquidity end the end The month end unrestricted longer the day and at instead $XX through each month of minimum have the covenant with April at million comply had maximum of the net each facility, total we during period. ratio $XX at need XX, company covenant the $XX In of at covenant cash XXXX. period, applicable is $XX even end which be

Following June XX, of divided and LTM for agreement. the back the conformance trailing year, then as X which that XX, ratio, brings period, terms X.XX is as into XX March of covenant by quarter XXXX credit leverage EBITDA December of XX ratio us X.X at and original essentially September times month which thereafter, XXXX, leverage the X of debt that relief X.XX times at net is the with

And calculations by a flows, calendarization on recent most will way, if effect rata there pro those is annualized in cash a the for effect, be that you which measurement. will, of purposes

And LIBOR plus March very a rate it's the XX, common credit entirety for borrowings covenant leverage we of XXX So, XXXX. through ratio of be sense the on will amend for us period facility goal believe. interest

the than the excess the the availability five million more is our of $XXX XXXX Pro factoring had Cash the was in Let of on burn balances, substantial and debt maturities before of on balance and of of together of forma our more the me liquidity under liquidity to the turn contracted $XXX full March fees revolver, repayment Even end million have expenses. effect the balance million expense including XXXX. of forma of our $XXX $XXX $XXX we million. $XXX XX, and the the rate. of cash with no than revolver million and for $XXX financing, liquidity revolver under concurrent sheet addition pro at the the million availability in acquisitions, for We all million. cash

we minutes, steps to discuss will our in George have As manage expenses. few taken a

horizon, two to period including that April a position the July in reopen us produce possibility all on service to for bare of the OpEx debt both to shutdown position load to the position If a we cash $X that minimum. to and March, costs. monthly see the months, funding approximately five or toward prolonged it million acquisitions endure the move rate given phase of the to used refer path have our dictates burn not assuming liquidity current and June perhaps and costs in a or expect reducing of to opening XX We do prepare timeframe, lockdown excess lockdown to our we we as situation will we

provide ability two during current times. cash these on endure to requirement shutdown challenging cash sufficient a phase resources Based extended our scenario, our and balances us

think the major of committed reopening. property investment. Kansas the million, enhance very our greatly have will remainder We're we to CapEx capital $XX moving nice depending guest project a definitely greatly on forward facilities expected projects our the City still on growth suspended drive the and have terms approximately at and the and CapEx, of timing experience return spend of our reduced as to with been for In all CapEx year, we for proposed

the approvals, CapEx timing the spend XXXX for this is and close the of largely event. with a required need However,

few proposed to our expansion would benefit These year certain in an in positive minutes about Act flow provide aspects interest of joint but with or we venture $XX related backs, approved. to Mark much as include are legislation utilization have these, also will On refunds able which somewhat of of is contract a million, an not that could more some limited flagship so. think taxes, VLT We this the and will to being include result the to but there subject again, we million as are We talked be CARES owed, update perhaps even additional with annual to well as regarding or property in CapEx IGT, combined in Lincoln. as next from. carry cash as deductions. $XX expect the

the capital of during shares quarter, a for under purchased X.X $XX return total is of share. program, investment just the million program subject approximately our under which of $XX about the we million per On

our are in of full that's shares XX.X approximately down As from a is XX%. XX.X current we total outstanding of when reduced the million public a which March XXXX, went million, result, shares

our share of our to Since quarterly dividend. we signed those the program, repurchases amendment repurchases the condition and payment have return of spending and credit including halted the as we under facility, a capital

morning, not in at this provided On guidance time. the pandemic, the the be of impact on COVID-XX uncertain given further March we XXXX year we XXXX, guidance, are noted full and providing of subject as our our will guidance this withdrawing X, release

reiterating George I'll earlier. in But finish comments by

and not acquisitions historical both these of properties three next for simultaneously. purchase X financial Within all we'll five in of times, accretive reflects results. which multiple of be approximately X.X months, five recent which average Remember highly acquiring multiple is actually the purchase reflected previously we're a at our an times, deleveraging the operating XX most

company. So excited the prospects of the future we're very about

that, to back you. With I'll George, it turn

George Papanier

Steve. Thanks,

our been effort and So the properties have turning our impact team the broader back closure a to part of the members your communities of of necessary impactful. while stop spread to COVID-XX, quarter, attention mandated the company, our the was our to

on solid was the EBITDA to year one of revenue Before with exceeded and our March, but of growth level across results our opening report track pandemic year-over-year began strong expectations. in company which the all adjusted consecutive quarter our the two first of general months properties,

of two as with adjusted XX% year-over-year EBITDA or included a the overall increases February, face XX% EBITDA year well $X or the revenues the adjusted up Tiverton and X% were saw in same period resilience the XX% showed of months company as respectively, million for increases the up ramp XXXX. and to market competition. This of to the was XX% continues and compared XX% Through strong and which $XX.X respectively, which first year revenue million of Biloxi, start in to in and

there. EBITDA the Finally, revenue first Dover contribute a two in $XX.X million story $X.X of of million adjusted months, continuation in success the and

Gulch Mardi late in February generating our operations. integrated Black properties expectations. of our also in with in we acquisition And were casinos Golden line These the We EBITDA on January. and immediately transactions in Gras, accretive, Golden in Gate month Hawk first positive closed those of

In Xst, opening online May this about to addition went to sports the forward lounge in DraftKings live earlier Mardi with We're the sports through book on our partnership FanDuel. inside Colorado the opportunity announced betting and excited and DraftKings and mobile look year. Gras included

QX. The late of EBITDA impact River in few adjusted the year-over-year only the not months and in to year-over-year will until Twin and not new first region did increases which was last property of Lincoln, year that competition the in revenue report

basis GAAP for first revenue the recovery However, was X%. stabilization approximately at volumes the down slot and a and one of on year-over-year, two XX% months down gaming story Lincoln only as there was

is Factoring Island that we're the first in X.X% exceeding to our revenue but market only and first the outperform through a volumes of Upon continuing the in the storm new gaming River for Encore year, closure, XXXX fourth more expectations casino two handling was COVID-XX River gaming two performance billion in while quarter of our revenue of point opened was from actually Tiverton, in And total the XXXX. profitability. up June Rhode slot of Twin approximately down months quarter months, year-over-year. $X.X of were importantly XX% XXXX, XXXX. quarter at the expectations first Twin the this not the the fourth the approximately

were operating to of we and February at represented With the Lincoln the occasions. million the Encore on [$X.X] of strongest track in exceed recovery month of since adjusted EBITDA month, opened, contributions our believe we

expected, performance dramatically a as in the of As deteriorated March result of closing mid-month. all our properties

the consolidated down XX% result, adjusted a million. $XX total under QX was to just As EBITDA

down Rhode the Black a quarter full quarter late by Hawk, acquired XX% and the For impact quarter Island Biloxi XXXX and in Dover, down the current of XX% partial were respectively. and prior year, offset compared the of QX to which

decisions the at we some while our with impact about by enhance wellbeing and can't have coverage the shutdowns, furlough. of members to recognize to of sought impact deeply that affected. furlough had team we've in to forced our members Beginning placing Steve on we form actions these to of provide mitigate health broad and and liquidity expenses the support team possibly team care response most difficult difficult no to benefits continued have the us cost. most And we full on the just make was mentioned. the has We those them, ongoing the our crisis In taken based also reduce members, as far

members possible. we're as detail of employees We Mark be will actively also a significant few back our financial will to speak preparing priority, do team to utmost do, soon federal protecting to and customers and we these safety in hope meet as to health we When local, the more We and hardship. our forth place will assistance in minutes, and a health fund by set established provide into bring standards protocols those put And officials. or the safety as state so. employees experiencing exceed

open when throughout thank comes. have who have for your work safe your hard members For and job your time those on us secure, the efforts these properties dedication to keeping team quickly the positioned and remained and you closures,

As company local forward largely benefit visitation. as focused that to a We're we for return The we and we status our look is comes business majority local on reliant of to business, customers. prepare from gaming not primarily regional our destination and will a businesses believe results. drive regional on convention airlift, from or

local industry. operations As resume, we our base our well position within will believe customer

to recovery. that will certainly start of end know are we come and these will While we they the unprecedented look times, to forward an the

the a the the we’ll manage and us which environment leverage with revenues. property profitability noted One of barely distance, in to think the control achieve to was based future, byproduct and that this that estimate we revenues XX% margins current level of costs experiences of through believe heightened slightly after long-term. on It potential EBITDA property, better XX% help improve focus be the prior can an Though will cost period on occupancy. gained experience we buy breakeven we year to year's prior XX% we adjustment even socially will should

turn it updates to some efforts. now and to bit detail on I'll thoughts over more Mark in reopening Mark? discuss

Mark Crisafulli

is to George. and I healthy. reiterate safe wanted Thanks. hope I everyone that

As thoughtful to to key are to economic be and is we the long-term. reopening, crucial reopening confidence and for the recovery going about in success consumer going us strategies to the think be short-term

state-to-state, hard as how the the Island have this. briefly about using We will at work of me Rhode from And thinking example. laser-focused while our let it and on been question slightly outline vary reopen we

economy its to when the and yet Governor Island, and the fashion. casinos. a state in this had authorize will not home has us reopen state been the past reopening Friday of In the It stay order Rhode measured process determined Raimondo's expired begun at smart

we closed properties, working comprehensive moment However, on detailed the from reopening plan. almost the beginning a started we

public to approach We deliver We how a epidemiology reopening guests. for our everyone. safe our environment been working set focused bio-safety, are and of protocols government phased officials team have a experts with enough closely very develop of local and emphasize to a safety state in health officials, members will on and cannot to help that and with we the

things, enforcement including include, potential members the cameras, imaging improve, team is and plan the screening other entrance guests phase to properties, restrictions likely with Overtime, at among the first limited guidelines, upon a some broader distancing thermal expectation more hours, games use social and of limitations, The sanitizing fewer our also of of table to is Plan the phases as experienced to or reduced and environmental out mask and and open limited protection designed in and areas, likely is awareness available VLTs no state start, will of and and for more signage. smart several relaxed significant public in cleaning limitations frequent again all guests that to between factors be the roll protocols and and with for will be amenities. in gaming measured made restrictions options including fashion. options spacing

by by public will guidelines and on as evolve long-term our interactions, we considerations. operating health continue science we driven prioritizing We outcomes be by and focused evaluate and short-term to and data over practices remain guest

with and will and officials, made of on As for industry by depend authorities the reopening, consulting timing decisions representatives. ultimately it company public health government

preparing open are soon in reopen. are to we our We phases to as allowed properties as

early closest property expect week. to appear we would and potentially soon, to it Biloxi as point, Hard very this is that next as Rock, At our reopening occur

are that with opening join may shortly our week. at also appears optimistic next in other opening Mississippi that potentially Delaware Missouri It month. next Rhode and properties the within Island will openings We follow both

and Kansas the approval us are in about regulatory positioning City month, our to on acquisitions this we for hearing Vicksburg mentioned later Kansas June. close George As City, scheduled potentially

late of on subject change remains to of it sooner. While paramount safety factors, and our of not myriad will somewhat importance. may and members casinos fluid, finally Island Delaware situation many impossible mid June, a of team and Mississippi, dependent to is customers, as including None we health have determined, this to is is which Missouri, and the as and in however, and if Rhode six the predict open by remain it

provide wanted also of I the River on to an the IGT-Twin status venture. joint update

state on in of on our and legislation. amendments legislation authorizing Rhode discussed That March with House Senate committee House XXth Island COVID-XX Immediately by to of leadership call, February. On we As suspended Senate new the those the crisis. Rhode proposed legislative hearings, last the was the contracts and and activity the legislation. XXth, require hearings after quarterly Island Finance introduced due the conducted

committed Island the safety level resumed but legislature Rhode remain that make as occur. The will Twin receive some has with We cannot we the prediction involved. in soon In and permits it we necessary about everyone session, to approvals. about legislation as of while hopeful remain whether careful during will of address any of this being the and the all does, design that event activity, proceeding and the can Lincoln health complete expansion legislature this we River

Our all as previously described. are material expectation is that provisions

floor as we Twin the IGT, January year date on the of assume the on River which this portion venture July remain the delayed joint VLTs circumstances. will maybe There however, able impacts the expect Although, before current on XXXX. X, a or October be the timing of until of that no given X, should is X with to management from of

further provide on will a We it this develops. update all as of

it you. return to you, now I'll Thank George.

George Papanier

you, Thank Mark.

remarks prepared open call. the operator the concludes questions. ask of to And to I it will this So up the now section your

Operator

Thank you Instructions]. [Operator

Please today ahead. go question Barry SunTrust. from first comes Jonas from Our

Barry Jonas

think start, to tribal the revenues? pointed to pent that, impact supplies the too about the that properties? we've to reduced that really up just first at some think so And encouraging gaming demand. could anecdotes far how should reopening from your case potential be So early with Is we it seen few really

George Papanier

have to tribal we've demand opened. of six yes, be appears by been pent there casinos Certainly some the results encouraged So first there. the that up

to it XX% be at time. have gaming that relates our able from although regulators period at effectively been to to we'll about equates operating we're around XX% Rhode XX%. they've are we of And our utilized Mississippi any positions of be Now indications that positions as Island, capacity, that the utilized about that XX% from should getting of

that. So we feel comfortable that about

think there’s to pent demand. will openings an the be be we going some from amenity We limited perspective. So up think

a everything occurring, more getting be on it the a you'll like been lot that gamer gamer to And up that's and that is So makes pure bodes a taker. of certainly and obviously I've facility. appears for been comes a well us sense. reading risk

it's happens scenarios. we're to but we what So we're initial be certainly phasing prepared we're for the encouraged a all can from market. results feel in go but that, We perspective seen relates any level to detail regional of it that in by as a because

an an have a to will being airlift transportation. area in that hand or opposed upper We resort any requires as

Barry Jonas

And then do before will the I promotional Northeast environment guess somewhat perspective? upon coronavirus the across a reopening you in started. saw the think promotional aggressive your Northeast How and properties look be environment from all

George Papanier

all on plan So customers with responsible our focused and that after to property. business, on attention of for they're special depending top closing a the XX% immediately communication we our effectively about instituted XX%, our

placed So certainly part by text group continue and the the like been been we've updates phone, all for to normal contacting sites on Player regularly. we've Web active, to very this development example, using for XX% been has our we’ve email, most email, methods communicate

provided levels all communicating been very traditionally they've scenarios encouraged feel for about that of electronically. going And we we've that communication, excited to outreach our they're to or and feel responsive returning. we either be So,

last Delaware I going in in talked Island, phases that opening Rhode on to initially. question. So be about the we're

of the So, going initially we we're going cautious be. volumes of whatever about staffing to levels customers we're are and as scheduling reactions to experience from be staffing the

Barry Jonas

see do environment getting impact the just Or to more an on think what see I we you to could focused here out going and to of I'm is hyper be promotional avoid gate that is, costs that? try could guess aggressive somewhat at everybody's margins?

George Papanier

bit a aggressively. come gate and of the a wait is So, going anybody think going it's out see. to be don't I little of to

of seem that you're aggressively distancing very promotional physical the They're too to they any have. be high regulatory of about activity. interrupting relates they cautious As to where going requirements the much it concerned about bodies, getting after response

is in cautious, going with only of they're that we're bit to with restaurants So percentage some And on the us a more little to line allowing in depending cases, open which at jurisdiction. a not the even capacity. open fact

to going be not certainly ready. we're We're aggressive. So,

shelf We that have ready to go. all are and types of programs

And have we we're to react responses. based on a initial of variety So going approaches. the

little more a any the departments burden put wait concern health or bit the of on initially, it's a So see of markets. to each additional in to not of

Barry Jonas

one be last should ends? M&A? credit the more Or thinking are once is any would capital then about you allocation from expect the me, focus color period And how ROI there Specifically, release potentially helpful. dividend we maybe the Just to recommence? higher

Steve Capp

forward. company year. We'll continue We have going from from to approach endeavored public a balanced exercise a to allocation that capital day as one, particularly last

return, CapEx accretive concept the for forward balancing buybacks But investment. that or move between and act. and is to dividends we unilateral, all M&A capital that split look singular i.e. is the a So cash the

and a decisions Y X, X look opportunity And CapEx is Z theh according and so, if strategic and Y, return. at opportunity make and is the the accretive stock is initiatives. Z to We price M&A

can a we answer specifically sure. today, than by analytical that it's guided So other that kind not we’ll question exercise be of for

Operator

comes question next from from Boyer Our Stifel. Brad

Brad Boyer

face, Bally's is a of a of a I years. question over just know it's lot folks lot a acquisition. the First call small where spent but I time have on this number know around on it's the market

know additional help near-term become thinking So provide only in the would you could how for some you're term? color longer that helpful? around what be you could just the but not deal, about if George, a So that guys you sort of

George Papanier

as market market, iGaming be market to far which as as Jersey I including entry billion providing excited for this certainly well So we're the profitable what a $X into licenses. New the us iGaming. was sports a the consider about rationale as And pre-COVID-XX allows book acquisition stabilized

So really the no heavy summer deferred been location center at traffic. well Boardwalk seen CapEx. It's very maintained,

several next to we'll rooms As earlier, refurbishment years. dated implementing some a be program stated the over address we rooms

with existing under point about that were liability retain multi-employer that able they another negotiate we the But agreement unfunded would this pension plan. the to was Caesars

unions their us into effect the With plan, historical allowed pension a but no balance. really adjusted unfunded this the new to other local a in plan, couple there's facilities adjusted pension new XX enter has that also had that are under market

So and that direct a to us. nice was a that benefit was concession

market sister of lost purely we feel Caesars, benefit was last the So properties. from years aside was by orchestrated really, it really recapturing over which few share, the

we and compete. And on capitalize in So that in meeting we largest space through of we aggressively the XX,XXX Also, get some the traffic facility. AC, future the the feet some of we're way to us into opportunity there's market, facility. and can not so convention that feel one recapture based afraid effectively it's that that on to allows square

it's three rate. move probably it's EBITDA XXX% the LTM -- up think in So somewhere that $XX years. to almost is gain to next We there's over opportunity historically million the an

Brad Boyer

then obviously a respect with And to MontBleu, it's smaller asset.

into there's again, us opportunities long-term acquire of color think chatter you the fits guess that in asset, given market some to portfolio? provide that size expansion any around and around thoughts can around, sort I that your sort some potential of I asset. additional opportunities there? And how the it rationale its

George Papanier

We we And considerable loyal really to would us who a an we recently our feel consider to base, renovation. went be do customer as other beautiful million opportunity destination to. a beneficial property we cross than incentive $XX our for property. Biloxi, -- can establish provides which property, for a to is This didn't through have customers. market that. can most we And We the this be

a So, we benefit to direct think be database. our will that

market see but opportunity share. not capture So, only share, market local and lost we again

Recently market. effectively closed, announcement at one there local it's and was the of facilities service Santal an five of the that

were to we think I marketer market this the behind facility. second local

So site. again, our upside direct that's there's convention city of to recent post And literally feel the of from the is center, also there, COVID-XX. we're beneficiary that some we built perimeter potential going approved reopen not

project to to some it some fruition. that that we're So, that. to comes does, complementary going see if to there's opportunities think do If CapEx would be that we

Brad Boyer

of some question bigger the kind COVID. fall-out from of picture just And of then sort lastly, a around

have in find far? the costs to really allowed you of would efficiencies directly Yourselves and inefficiencies about the to on and that and you. you granularity how uncovered Thanks. any related others to hone have offset some business any shutdown talked potentially operation thus within the Can has color sanitation any us think you've additional helpful. I enhance these provide be that around what or incremental

George Papanier

so anytime operational this your it take you on So, hands ask effectively perspective. and an something you from like time

crisis. go at versus You would have look how opportunity you things in run a kind you things back to an of to have ran how and

throughout mask there’s barriers So, gloves. certainly face be to there's costs initial some example, to facility, as and that Like, required. to some product going as associated initial physical with the going essentially other costs need be really for sanitizing other that's constructed. more be -- There's well

you or to put So those costs therapeutic a vaccine. the once subsequent COVID-XX it's find crisis, a aside they whether

around lot levels that Then of the kind operation, volume. based does into and that ran providing evolve a you're you get of on staffing you how you your of see

certainly there bit some a as you little could you So, find run more out there's efficiently. opportunities

we've always a efficient operation. case wanted in think our very though, I

a could perspective, as as do from certainly amount through there We'll process if but learn is phasing from perspective, we fixed of variable go we will the well. be more we the So that. find there know don't a I some. opportunity overstate

be as margin to think this overall result there's of to going benefit exercise. a unfortunate we So

Operator

Our ahead. next comes from John DeCree Union question Gaming. go from Please

John DeCree

different on I then last than liquidity. but as had attractive a the guys Obviously, it and MontBleu. first from you was and to item environment valuation, for kind of you of were assets at of what these you Two the valuation the a relates that on one the time buildings these around quite then if had Curious kind ago. one Shreveport kind me, other take time? then Steve given guess them looked what sale relative months wins time if to and housekeeping acquisitions couple this see for the last look you

George Papanier

our take look that were -- did us brought XXXX. opportunities the unique portfolio, times the in our presented opinion these to properties at were aside a something in we from fact So different that to each

more of an on diligence were a time, at we had them. Shreveport. to amount Eldorado time. the did specifically price them We familiar with fair at We to due do the due pass opportunity So and

good were we When again, with So and negotiated they comfortable opportunity opportunity. we already price arose felt on the a the our radar.

John DeCree

And then Steve. maybe for

Just cash wanted remarks. liquidity prepared and about comments to your clarify your from need

give then need measures? is I of you mitigation to additional as had so take clarify cash heard so would you cash you And mitigation us month. I before the a measures, any to some if what, think I that. be color could $X additional about if the kind what million that And if think take need was

Steve Capp

in to press of properties. of we're So kind phase one, phase liquidity be We would you're for today was the release light the mandated and Mark we one, near about reopening in in to of a And frankly in approach. phase seems the And harkening as to two maintaining mentioned still happen certainly all two had case. made commented, of that the focused things, shutdown version our of a quickly the a intended kind adopt COVID efficiently we that which posture original back that on of that modified event term.

the our a where and But otherwise if should two, phase was be of corporate any to call not of would sense and a we employees, not type footprint case or then I kind which maintain to flip we’ll that there. mothball say, it to we the eliminate, necessary mode properties, were of presence furloughs lockdown would maintain all

surveillance, and maybe handful just kind very And employees a per salary of property. including would we'd that a facilities, so security of a scenario draconian bare minimums per be property, of staff couple have just

initiative likes back strategic requirements staff and strategy. we've our be cut kind the corporate, way-way overall at would and And it'd bare but and of reporting minimum maintain

that based on in the back on lumpy some John debt costs so OpEx phase, stuff monthly two the of OpEx, mind that that's And a $X our is property service that in phase could and that that's But the basis second and corporate Bear basis. million. which we pair addition that. to

tax insurance separate lumpy the kind of from are payments, So, property that. and payments

are $X two there and So, monthly the is costs OpEx. the million of buckets

that on basis all But over we needed that that service months and -- mode. by others today and for half Phase were all than When the $X lumpy $X type other cash your more million that take OpEx environment we're months million you applied at mentioned and in in in months you have the nine And if to could million for number, to running debt of next the acquisitions take question, number XX in $X excess liquidity my to. six then costs funding we that down if to circa even we I we'd that of out of the that a was context comments. to lockdown to of have, the of this X average

Operator

comes question next Lance Cowen. go from from Our Vitanza Please ahead.

Lance Vitanza

thanks guess for all and ask on congratulations of taking to two questions. I the Hi, guys, M&A. of the questions I wanted announced sort

percentage I have just to this an capacity you free casinos in versus the do how cash operating you be with respect XX% or is recession? be recovery Twin so better mean debt, sort how of think it question to let's to be margins positive? respect generally, to need to you had at what playing River? out reopen. first the particular. levels or in And a Bally's great flow what and going profit, the ways more kind profit different I the like that but achieve just But and The first casinos acquisition can with breakeven then going for operators through to do worse will either of see out gather saw operating you coming of you there it's question, you your another is say, can service I turn about profitability to forth as And begin the

George Papanier

profitability, this. question pro operations we can a first if existing $X revenues XX% second a first Twin question We'd about to XX% a close if on the a but of And to somewhere to want and add-on the in historical us included. you we the for the as in million of of get of levels an forma our existing XX% to asked to use part historical of the and service pre in all question. of EBITDA with of of example, Steve, But then into the be of doing result debt question, take think This piece gets you've of to part new a is that. assets, example, based revenues. a I'll get River, give we debt. So part we breakeven

Lance Vitanza

kind come differences to this that to gamblers as this back out? any of Do ability casinos, and you mean of terms is back profitability? get returning to have any -- impact may would thought to what does as first of on And I there your major who see plays in how recovery sort

Steve Capp

well. take I'll swipe a and you George, in then add can as

'XX we obviously. context, was this Lance, financial of is this, there's the know, fundamental too the What crisis high. very think income the Discretionary is 'XX difference state I to I with 'XX, typical from consumer till back the that the the that pretend difference too in You Unemployment probably biggest see think beat that is, mean see I was like consumer -- I the much up. today. definition of maybe don't much was but really

all the very we in just think a were one, off a that different context we time. And that be and V-shaped strong can come workers, provided tremendous market liquidity dig furloughed to that was going gallantly to of amount the at a well and it great. businesses of there's system. of was take the bull pre-COVID that is declaring been pretty to in sense we we knew support This serious we're around we're in recovery Not unemployed from going small everything and But and market to years be governmental of raging And with rather that still trough the a very could out kind that. the bull look of. or

about of are on be of We that casino of will anew So, provided the would kind may shackles we combination could touched that by get think spirit amount for evidence different liquidity and if a U-shaped think earlier recovery, initial together overall begin reopenings for of out the American break us. you federal our George we with and be that results perhaps the of kind potential shelter-in-place case the think the rebuild to out and massive so of the various agencies. some this a

George Papanier

in properties like, to kind are local recession, point point levels think decline mentioned bounced that, earlier us, more add the to after market. regional grew which from a they XXXX back you was were in is could where that's is and pre-recession what I quickly. Steve the that markets encouraging Obviously, of which they echoes there. guess our think is markets I there But saying XXXX. customer an that I pretty a XXXX, one at We recall the I

So, regional this operator a really point. at we're

comes customer airlift drive to don't XX within XX our as the time well. on and we minutes rely distance perspective. required convention from So properties or no meeting to and get Certainly, our business

to an we So, really gamer. pure the the attract opportunity of have more

Lance Vitanza

to seeing I or that opportunistic Caesars-Eldorado their didn't would property. put can see? this I What opportunity I'm that's where acquisitions And like And it at property never into recently, have to you. guys me to deferred didn't the sound makes then just just more run that is are of I get from on some should put you having lastly you Caesars near-term. had just an on closed? or Do none property simply comment you sell rather broadly, wondering? appreciate of that put the a getting it's the acquisition that that sort be effectively yourself then lot more you CapEx what the agenda doesn't and these you property about least on money avail much want to -- needs. of whether deal Am Bally's think But or the money was updating here what I those money would the that an think of upgrading there'd on but right, situation it think

George Papanier

of was that XXXXs. ranks we point the lot I'm the I in Atlantic early Market gaming Even myself City have made company. certainly dating a I within experience resorts. the I though, there. of our So, ran

that get The we certainly is company opportunity a also Atlantic very the much better of to to not Delaware. model first iGaming, excited iGaming. fact City was is have is get also there outside Delaware consideration that'll in But up the set market potential location so an appropriately, about We're that. there. into involved took and be a us. And we So, we is into really appealing license our Sportsbook for

mentioned about XXX dated. we're -- that. little excited putting a There's X,XXX of would that X,XXX of little rooms I be had over rooms. there's So, money are we into XXX refurbishment them here.

over that go and back a next on the we'll So, years. refurbishment do few

We will in successfully absolutely quite that be looking done Hard market. to to Rock. brands that introduce We've

to doing Delaware. way our it on are We in

Have profitable Bally's So, which great opportunity in a location location think the we've done beach that there. have Atlantic is great potential in we other and is They a see City. a markets area, front of I bar -- and summer most say bar

to that. opportunity an have We capitalize on

square have and to Rock. biggest the years we And it's where areas lot business of in primarily is it's City the to the is properties what XX,XXXX over doing moving Hard in actually convention Caesars. Atlantic last larger and the than several a been the they've the and of largest also sister the business one Caesars feet, of One

that share ability have market we we feel to the brought they So, capture.

into be side going we'll capex of But the to evaluate could there So, that. some convention the time need more business.

in market efficiencies they do do Eldorado and thing well. are They is as that's -- a of what not do it. result to an goes share is a the interesting is that they they're that. other quite sacrifice for The But secretive about operation that look

we're think profitable other targeting afraid So, way more in compete than we're we're ways operators. competitive to profitable We and more a that in aggressive markets. not

we do been with this that has think asset able opportunity that's market taken existing that's acquire share we'll to. Because to an very helpful that database, So, the we market away. be so

reintroduce think customers haven't we to been looking we'll there. be and to be the also we'll So, to property introduce could which that brands be accretive looking

Operator

comments. portion George concludes back Q&A final turn This would call I to of it and for our to Papanier like the

George Papanier

today. to you want all I for you and joining you. Thank thank to want operator call our thank Well, I

Operator

Ladies participating. you and gentlemen, this concludes today's conference for call. Thank

disconnect. now may You

Bally's (BALY) 13 May 202020 Q1 Earnings call transcript