TRWH - Earnings call transcript Q2 2020

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning. My name is Maria, and I’ll be your conference operator today. At this time, I would like to welcome everyone to the Twin River Worldwide Holdings Second Quarter 2020 Earnings Conference Call. [Operator Instructions] Thank you. I will now turn the call over to Craig Eaton, Executive Vice President and General Counsel. ahead. go Please

Craig Eaton

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

this Financial Officer; If you Twin our Executive haven’t, Finance; www.twinriverwwholdings.com Crisafulli, Steve Jay of available Chief Officer; on earnings tabs. release and under Chief section call the and of the Relations George website Events today’s call and Marc With Joe that Investor Chief Executive our President Minas, President River Presentations President Vice and in McGrail, our Officer. our are and presentation finally of our the accompanies Capp, Island; Papanier, Accounting our also at News VP Rhode are and me

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

I’ll expenses. site there now also call. Today’s over measures due and forward-looking included is certain in replay non-GAAP completion most available to our presentation refer today’s Reconciliations the our be George. the for During non-GAAP and measures this George? call the the call. comparable shortly accompanies in that a of our contained call are of financial within project inability financial broadcast GAAP provide will certain to schedules charges earnings reconciliation to release will financial live to the measures. call, to management or turn being after not special Do this on Investors

George Papanier

time extent last we during Good Craig. including the reopen. hope all exactly in everyone Casino our casinos stay as morning, forward just owned us. seven response of we mind, the and having days to properties to been everyone and, joining uncertainty continuing to safe closed unprecedented you, safely it had in times what can we the appreciate everyone. When Vicksburg at faced spoke that these XX to we emerged Thank is ago, and reopened. importantly, COVID-XX, Fast Casino and we’ve with successfully significant newly acquired as the quarter and KC all to when I today,

the overall part COVID-XX, each reopening at exceeding we of or property, meeting River’s by Twin committed CDC. plan As all guidelines to established

and regulators property-specific team close health valued As health public such, officials the developed and our for the we environments are confident protocols very and has safety company local and applicable with and comprehensive have implemented guests jurisdictions, state in consultation created we members. in

thank Speaking heartfelt members. like I you. would of our you to team a to all of extend

hard face You reopen does go their were successful. when to work, enthusiastic of and safety reopenings time unnoticed. came and especially your procedures and to in the been extremely our and sanitation have tremendous many protocols not efforts attitude, Thanks new new it responsive and

team our difficult last of discussed to on forced members place us As the we COVID to quarter, make of the decisions furlough. impacts most

the again. said have While to ability the are well-being we those increase large back have impact team and a it and we the still to reiterate of our care a members capacities of furloughs We as await deeply on been and of welcome amenities. that percentage able these recognize furlough last employees had. affected, number We quarter, I’ll there it about

the the provide can’t support this, we we ongoing team in continue coverage the cost no impact our to quarter. mitigate possibly full furlough and health during of form benefits of to While members

employees provide assistance to to We experiencing also hardship. those established significant financial fund a

business all segments improved strong year. pilot where results as discuss have supported was were and strong we casino of back increases in to demand most well preopening with notably reduced volumes turn for to were And the margin. demand results first reopenings prior which, up positive Marc from reliant margins. later, initial year-over-year to positioned, amenities. our for our in thesis. When month, while date to of that we Rock, results. airlift, more Hard since results, the to our company financial at period operations operating regional on a EBITDA was which XX% focused and certainly convention all result are limited a some will capacity are we almost we operate able on quarter of June, to and have all that visitation normal in closer markets. pleased The In the to able with our capacities significantly available this these resumed. little robust fact and amenities of in to as specifically comparable exception on when our bit capacity meaningful the Dover, point or month capitalize demand let’s regional EBITDA adjusted we In Island, we opened We At the especially not phase gaming generated segments June, talked a company, Rhode Now believe more in strong achieve with the more with experienced a local pent-up under gaming a and were was the drive and which May, properties the Biloxi with destination with

basis at of from EBITDA revenues impressively, the XXXX June Meanwhile, for Adjusted in $X.X restraints. navigated were up in property the in representing in leveraged points. to adjusted in on increases, represented To X,XXX points. we over almost coming as efficiencies XXXX we decreases approximately strong, for and an and EBITDA XX% expand to was results prior more an which margin from reopening, essentially as XX% COVID capacity in shutdown realized increase the Since operating year-over-year, net a June resulted margin compared that to and for were we and down million, revenues million X,XXX overall EBITDA bit marketing in flat the same XXXX, noted Dover, in overall down approximately adjusted doubled releases, $X.X were X%, month expenses. of $X.X our net adjusted in SG&A EBITDA month optimize review in million meaningful basis at the operations. volumes and margins we While gaming have our while new increase

We our higher-margin have been with on selective by business. also amenities focusing

and higher efficiencies, of a than a are these now at pandemic. As operating reductions result new to margin prior the expense we

margins initial environment gaming the continues dynamic. be the are results While very encouraging, very to

and term result and We for capture And in doing even to return efficiencies become be many expect of profitability though sustainable are to We revenue, sanitation continue and while to to market spend increased proved do the not believe simply drive the our the have we old over business. will share the adaptive. way realized properties, willing are money to to we retain remain and likely safety norm. we will long costs of

Just July. normal our we with to signs period able where plan at about In taking the operations taking we uncertain to and in Starting time like amenities, think I’d see ramped it step and more and we began reopening for of today, costs to back for a profitable subsequently preliminary steps future. indoors. were view about, talked our of and to and chronologically. about return strong brings to properties quarter when no in June, were an the prepare a what efforts which May, we margin, and to to I think in control are was in to open capacity a reopen revenue demand to we where results, up saw which markets and especially more In us we just April,

While I’ll still talk recently our excited are about we properties, which are report finalizing process, that, momentarily. close we including acquired our monthly two to

which We to year- decrease figures, at in of the are show range looking initial revenue XX% over-year. a X%

year-over-year strong contributing all However, as performance. positive the we EBITDA continued result, saw EBITDA up, adjusted And with margin segments month. is for a

So, strong provide now a liquidity a we maintenance relatively currently requirements, factor generating will interest free basis. shortly. you and CapEx our Steve flow more in low color cash position consolidated are on around our when modest burden

and our plan, with our to in over flow us July to proposed our properties. increase geographic recent Casino results for a notably to redevelopment Preliminary Vicksburg remain great markets will that enable we that gate fit attractive and both I’m revenue for indicate these report and our Casino which represent of to committed of a plans, also the pleased lost the assets new the these believe at operating revenue M&A demand, properties see top the XX% results, cash continue just years. million properties volumes in two development at strong. early On the enhance With volumes strong our $XX to Casino – XXXX. activity. July of greatly to our over of we These property X, from On the property off Eldorado. and market portfolios. we KC, Kansas properties up footprint great guest to grow with recent our experience KC opportunities XX% million and share we revenue out completed expand have to come that net Vicksburg property reposition redevelopment compared Turning with $XXX City July acquisition in little

spend majority the As with Steve project XXXX. anticipate the will will discuss, of associated capital in the we occur

forward and at month are We to exciting that customers length three additional opportunities in to we’ve to spoke exciting with working company. Shreveport, we significant River in New Twin them transaction. getting the very enjoyed benefits to teams look times our last owned have Lake City, multiple the strategic We contract know for of under for first casinos cross-marketing and create are which These Tahoe, Jersey, Nevada; the call. nationwide. this Equally locations realize at property about Louisiana; local see our Atlantic the

strategic through and regulatory currently purchase of a are we each of As the states working paid respective these we diligently in multiples extremely processes acquisitions jurisdictions. that result for, attractive the

are recently in of revitalizing need certain leveraging we announced board We rooms, to able in be And we to plan to adding leverage around the an a on like market. PointsBet, dramatically XXXX. At a will extremely expect opportunity innovative to we environment updated to convention improving to feel iGaming food great to PointsBet mobile we our property that acquisition, partnerships to regulatory acquisitions exciting beverage facility, be what new close also feel such to in the gaming to effectively leaders close will upgrades the offerings. believe hotel growing like and we the late the world, the receiving property which half and excited comment Bally’s, to efficiently the by first transform have the a first prominent for addition the is in Jersey the simply Shreveport to the space will to market. best-in-class likely think including it’s we we with full-service QX subject that and iGaming we partnership to approval improvement. has lucrative for have New continue will with participate and the a and PointsBet mid- opportunity in are center, slot partner, XXXX tap our MontBleu is renovated and New into Bally’s the and I’d created Jersey the spa, address us. areas offerings innovative step bring fundamentally experience, would

River our mobile X, Colorado partnerships to nation’s online partnerships, a conjunction sports result with announced betting our Colorado’s in unique sports of platforms. Speaking sports passionate strategic on of and Twin These and partners, fans FanDuel mobile betting leading introduce DraftKings. in launched we two opportunity the May to in for previously

recently Gras DraftKings Mardi our in launch with Casino. addition, of retail connection sportsbook the In announced at we the

to an confident are partnership provide us experience to that betting sports Colorado. We DraftKings this unmatched allows with

to the for meantime, We with renovated the introduce in bets United guests excited while resume. the many to our space are are In States provide forward very looking be safely to to able the sports begun place we coming ability in have professional months. guests our the full to

sports mobile legislature change July in the in Island had our Island requirement for legislation, accounts. on all will registration to sports online was betting. announced the betters late which Rhode to sports that Lastly, dropped betting for passed easier This make gain sports betting. it access Rhode in-person new It

times significant and a as by We’re change. the for past play securing certainly industry most months wrap faced, I’ll challenging are future that our these promising the of made while up Twin have over we confident we has mobile this will towards a three progress experience increased saying River. result exciting

protocols. the in customers the Marc more short and it I to the response Rhode and uncertainty While will detail with new Marc? over properties are the Island. our of provide we around term, persists across reopening the now adaptability the to environments to pleased safety operating U.S. to some initial turn

Marc Crisafulli

Thanks, good George, morning, and everyone.

regulatory in River number properties methodical, time of options initial first as state that the operating limited in our safe local we reopening including only more very June a with noted, limitations, and of we hours, limited were when on a fashion X, in ensure phase. we Rhode and We and restrictions to were health our fewer Twin worked the pilot we significant Island to in As of under was amenities. liken reopening, invited done preopening opened At George open our a guests we manner. a gaming so officials and did Tiverton reduced to that limited

markets of than of as we constricted ended the adjusted EBITDA our can had invitation-only guests health gained while the we number and safe other on continuing experienced casinos, nature operations state viewed expand the financial health guests this the social under The of protocols a result as we during safety month preopening operate though during to impact our prudent general necessary Island, we rebound experienced XX, negative our the of training in are this On success we we period. and we regulatory Rhode adhere during requirement the guests that have local Despite back staff place our to Rhode and slightly necessary with revenues a results, the recovery to less June, As broaden welcome restrictions. to our providing the the protect valuable Island month authorities and and eliminate June in period, and in for June invitation-only officials permission from strict Island. assurances a to two experienced phase a in a Rhode put our of and we ramp-up amenity the valued provided experience pilot in and in the end have while reopening operating offerings capacity the and we and manner. revenue in Since at members. to distancing received to still team the public material profitability of of

we July approximately on experienced to XXX% basis Twin necessary In remain These the consumers. with XXXX. is, with results, of period on we half soon discussed XXXX positions and enable venture has update support is governor. joint optimistic game approvals. as up approved segment from preliminary the the that later summer. revenue are at Lincoln quarter legislation well quick in approximately expected proceeding less event will and this call. to receive we of the as general expansion with of addressed results I committed the as preliminary chambers of in revenue it provide be sequentially this assembly and to that all both and remain for a joint and same permits XX% can table in wanted of in River Twin Looking design complete is garnered June also than the it than status The proposed the on a be one less as VLTs of We River last available to IGT venture that the would

or a floor before this is expectation Twin the of River, as will that all of able Our year. the October management outlined VLTs assume on provisions, material the to on move of with forward portion X joint in venture,

venture We with expect to continue IGT January X, joint on to a XXXX. commence

I a now turn this update provide Steve. it as will to over We further develops. will

Steve Capp

Marc, thank you.

liquidity. and address I’d First, like cash to

new a in As financing May. you know, closed million $XXX loan we

over for hand liquidity revolver total our a was over $XXX $XXX the the forma On the of liquidity with revolver. and the month, total basis, million. cash pro Casino of end $XXX had approximately acquire again, we Casino $XXX approximately at so of $XXX And the quarter million. unfunded And we ended those completely with KC for Vicksburg the million million, unfunded paid last to including of million quarter on company just proceeds,

acquisition further, pandemic, pro zero COVID-XX mentioned. Bally’s closing, a to Phase a environment, X of period If have purchase at and endure cash Shreveport we believe amounts the the totals which as extended in $XXX we’ll even and shutdown a face in based we price our and million forma, invest we of ability purchase of factor us revenue out liquidity in commitments of shutdown to scenario result through cushion MontBleu were Looking on total the current of liquidity current provides requirements million. completely million our inclusive $XXX another the to properties, with the operating $XXX XXXX, just well of

we CapEx expected second have our capital In the of and suspended, for greatly major been half terms projects of this all year. reduced spend have CapEx expenditures,

meantime, full time. in position planning, are we return a continuing to However, to the any for scoping at normalcy and

George move CapEx we we to there property on intend think our growth with As guest greatly Casino and investment. approximately still at certainly program experience, the a $XX return proposed forward mentioned, will as for driving KC and enhance nice the project million

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

Lincoln. about we would mentioned, contract related flagship the venture Marc which also joint As in include expansion CapEx with talked our property to proposed IGT, to have an and VLT

is expect that And XXXX is a being XXXX subject to spend. We approved. legislation to capital again, that largely

property likely be have some in CapEx starting years under multiple over work We plans targeted experience the out This also and XXXX. development at Bally’s. phased refurbishment greatly to customer improve will

regulators to move closely working forward. We’re New with the Jersey

taxes. Regarding

aspects the the employee million such will which noted credit, the the by are last company Act CARES is that quarter. we retention benefited in $X.X certain As One of item there quarter, us. second benefit

the to exceed well year of the overall company and we aspects noted. believe the other act, the over next and cash of other are could million flow the Beyond continuing million the we explore including, $XX mentioned, carrybacks to $XX deductions positive previously that, NOL we utilization to as

very Regarding our spending prior repurchase quarter and the we to as of COVID-XX shutdown. credit a XXX,XXX facility, the dividend. program, our payment both to have beginning we did under of capital the approximately quarterly a at program, the of share halted return amendment the repurchases return the and we signed repurchases condition of shares those capital Since including

return XX.X the capital last shares have XX% currently listed is However, our outstanding, in year. we the resulted on XX from of since buyback million program year. NYSE down the we And shares last approximately date million about which has

continue in the it. as in currently guidance, And our term. not to especially heavily short noted, we significant country’s to the uncertain response for any As outcomes George interruptions, upon times, anticipate are COVID-XX live dependent and we future of while do near-term operational

future we a Look, accurately short project and this such, not continue guidance and time. to intend are we opportunities that refrain As from specific position in at in may positioned therefore sheet to balance for available. final to the results discipline My become maintain remain term remark. providing

We’re means. not by any finished this building company

with shareholders us well properties. is the M&A this required to of pursue that half in fit and for January, industry, timing our phasing recently, With portfolio including by City in quite and position of to last mentioned consider fourth the and of month, next first combined George, the and Bally’s pipeline, year. the expanding as accretive year we and natural That and Shreveport Vicksburg our this of later acquisition Colorado just right quarter expect the for likely Kansas in schedule, acquisitions in additional Tahoe

Now it back I’ll turn to George.

George Papanier

call. now I’ll of That ask operator up questions. to the to concludes prepared your the remarks section the And open Steve. it Thanks,

Operator

Barry Our line of Securities. is Truist of Instructions] from Jonas [Operator question you. coming the Thank first

Barry Jonas

$XXX aiming of that the Chairman said he’s in interview earnings morning. an Board Good The million year. a for

the two M&A times about rate that��s your LTM think normalized all run closes. I once

target any M&A that? curious you a right like environment long Just maybe the that, on think could reach broader And commentary out there now? you with how

George Papanier

hand Thanks, to the to question Barry for and this Steve. going I’m over

Steve Capp

balance in Thanks, true not your on it’s interview There’s question. paraphrase here, Thanks, our for to think be necessarily that but Barry. to we Yes. a go George. the be not as as mean the question, is the to in M&A from of sheet actually two and going relevant a look companies on in environment execute focused a question, Chairman’s are how as standpoint. that the the multiples M&A want on morning. suffice I liquidity – I and I that really well market I vigilant hole we and funding think we’re obviously the was mentioned, focused And from dynamic Hey, revenues To it on company the the sheet that company good a uncertainty rather will that M&A future open, and for accretion building to I in what we lot environment And what It right, and double grow was are to your secondly obviously, – as particularly on one terms the meant are this opportunity mentioned, preparedness. Barry, due But accretively. on things there. are continue to very the don’t that’s unpredictable company. specifically are to environment positioned aren’t the in taken comment sellers we Thanks and down on Look, – second Barry, that it’s depends think think building multiples what environment, very continuing the as do we are, maintain he deliberately balance there are wide as a how buyers say, even to acquisition. it to prepared of in relates But eyes then well the a done on many in that takes just there. focused like. and COVID to to around Those all because to done opportunities. do keys we time more company’s the execute at position to just not this out to look, getting agree this of the rabbit size two on long very and of drive And to valuation the company hand M&A so environment, I it an the do, here.

So in we pretty that regard, good. feel

George Papanier

continue This want we’re disciplined that. to We’ve Steve. going to I George. said just Thanks, just our strategy. to add is diversification this previously,

We’re to potential opportunistic in the just a We license. the new enter especially like with iGaming it. and the and into through And meantime, to to portfolio. we take element into opportunities for going to of we’re the idea digest sports focus acquired strategic markets, continue assets evaluate an approach with to continuing that our going on integration betting

Barry Jonas

I That’s appreciate Great. helpful. and of the preopening helpful Then just very ramp. all color. on touching there, really in commentary that the opening Rhode Island. A terms really the

Just in to Island the of other curious think what kind now? needs seeing properties to do the in you happen right Rhode generate you’re of results sort

George Papanier

give lay some you So Marc perspective a then that. and from I’m color going add to to let I government might of land the

Marc? So

Marc Crisafulli

George good Thanks, couple Island. Barry, thank things There a in you, and are Rhode of morning.

not still even We’re at XX hours yet.

is count about a VLT quarter. games about are table Our half, the and

been up, that. from Island now results COVID start a it’s to to need right creeping by Rhode Unfortunately, able expand to numbers we bit some little burdened a and have rules. quarantine So standpoint, be been actually

then in if Massachusetts, Island have negative New back or of you Rhode other you’re you visit So – you a demonstrate York, quarantine another to states Island like if go to number Rhode and test. Connecticut,

some hours the maybe VLT next a is turn then and to coronavirus And like hopeful that can table weeks step, we’re issues the get game get normal. counts back to of continuing to the So, big around to in few XX availability, we expand get amenities running. and state the would

of the We restaurants there, of are obviously. them, not running but all some

now. So that’s some – we’re see month, few of we’ll that improvement on the in weeks Hopefully, pathway kind to next again. a

George Papanier

in associated to on perspective, anticipated always than In a some the anticipated, a it. the better lightens could more I’ll opened did we up a add that’s there’s we we use improve demand, had their Rhode they’re certainly of markets markets, where When little COVID particularly And that Island, more from could as we we color pent-up and up I little of facility. demand just that. philosophy Yes. we amenities other in that call stringent there. with allowing as the gatherings, bit had

going on that So, the the up restrictions. as we’re think as we soon starts benefit from lightening to state

Barry Jonas

then Got cautious peers few heard a past over just from demographic, older your about we’ve coming a little demographic from kind it. of some maybe in. days And last the more younger coming me, in, commentary one

about that narrowed? you types seeing. catchment coming with the is today or be And the maybe of in Just you’re Any players curious commentary would helpful. of if widened sort color any can player really who’s give on

George Papanier

Sure. different a Well, each market is little – to it. bit nuance has

less Some that the primarily it’s less cases, And than is with we’re are what others. seeing concerned typically older about demographic, – people COVID demographic our there’s see. we the would In some visitation.

to However, their seems spend be up.

drawing We some, not but younger noticeable crowd. are really

on on depend does you’re really market, it it again, and the So depends the that amenities providing.

some from seeing investments this been primarily currently. that older larger they that perspective. doing COVID we from impose having still the their is little concern just the bit an wallet when call demographic, negative I actions. of what demographic of think, is really, to better have I’ll the more the as impact discretionary market’s seem government be around we’re income, that with And a we But

Barry Jonas

you questions, answer much Thank my guys. Great. so for

George Papanier

lot, Thanks a Barry.

Operator

of Our Boyer of next question the Stifel. comes from Brad line

Brad Boyer

Yes, thanks color questions, the for morning. the all and taking guys for this

First that one, strategic at if the a speak, curious we question have interest something there kind consider? perspective acquisition you this Or are I particular sense there’s today? i.e., deal from a it’s any of upon just on to truly but makes for mean of as want so comes than to down just of jurisdictions are expand I numbers, kind sort any today, the at just if drivers would you what multiple M&A. to particular point markets, landscape M&A, Barry’s look of

George Papanier

I George. bit earlier. It’s a on this little touched

currently betting. We’re we mention our sports have did I certainly like to be states approach. in that going disciplined And that

we’re we’re So interested betting looking especially markets, sports in market. and the iGaming at

So look as there more for be around may tend we states to associated legislation feel that. revenue, more be or

markets, iGaming. to aggressive to particularly as to certainly, into sports at, and look So, going betting we’re be new what in going be about we but we’re relates opportunistic it entering

Brad Boyer

Jersey. the enter nicher I we of partnerships Okay. obviously That’s of question. player thus my broader we far, I two approaching Kind what just back how relations sort good you look evolution guess around you think have about Colorado big any new curtain. sports. your just pull you partnership around are want I don’t would New announcements to segue mean partnership your you a question, I jurisdictions? But a nice, here? a should next of as the how some call, if of into thoughts a brands in and totally in at

George Papanier

part strategy, We other forms markets. enter other to each they’re diversification try and other. converging. that complementary each We really our and casinos into that necessarily these through not cannibalizing are Well, gambling to believe of is of again, believe and

we there’s with brands, you’ve be in opportunity to So, DraftKings. an brands, attaching of FanDuel seen love We and the both idea spaces. feel existing as

to relates And sports more either we’re that company, in So start integrate fully we allows develop as how it with us to going or or burned we’ll tech betting. get into that. a focus the explore iGaming to and as with really to some on as and for we to potentially opportunities immersed continue look And meantime, stacks. acquire

Brad Boyer

be I numbers put I it just housekeeping a way you any And some was is some outlook? going numbers could lastly, you to way to half Okay, said, Steve, put the you down, that? likely think back said question. any there CapEx around but then helpful. around know

Steve Capp

Right.

mean You XXXX? for

Brad Boyer

Yes.

Steve Capp

virtually QX down foreseeable. but be don’t it’s have hold CapEx don’t make not number basis. for for going we even look, minimal, And of operating future – a we as normal have we might imagine, actually. I I the March, – to what on didn’t even expenditures didn’t shut as a through knowing would you it you, Brad, Well, the

So look, maintenance distinguish obviously, on CapEx have I CapEx, – will. to you between and if expansion

to have We CapEx done some planned CapEx me, budget. Dover. we did work excuse for similar we maintenance – the – budget some elsewhere, at we’ve example, – that F&B in the not not have And

the of a years was XXXX of low So be properties guidance prior the portfolio the approximately maintenance look, number going fraction in prior XXXX, the to we’ve think kind on of for XXs. I kind given of $XX million, is

this But be be – change could a is operating this out we’re could for come plus/minus. strong, pivot to probably that of year, at kind point, finished. year. at of This if even this somewhat going year this of we’ll then on fraction actually and thing the percent COVID Obviously, not materially we for budget that – number year. We’re that XX-ish

Brad Boyer

Appreciate Okay. the color. guys. all Thanks,

George Papanier

Thanks, Brad.

Steve Capp

Thanks a Brad. lot,

Operator

next DeCree, Our from John of line Union comes the Gaming. question

John DeCree

that rationalization But England, one kind different questions. you’ll seen it’s wanted world, more you in of New and so Is good in taking you’ve you’ve ask with hold promotional George, the And any about to are more well? if online. are it New England’s it in New kind been if expectation, coming then seen as U.S. going post-COVID reinvestment than back so Island. if England relates things have see my as was the that’s in of morning a and far? again. Pre-COVID, for anything supply and Hey, you an of thank Rhode it curious coming taking new And weeks of quickly? markets other kind to Steve, I work of competitive couple since markets? you And behavior

George Papanier

So yes, doing, you around certainly John? rationalization are How marketing a been spend. there’s Yes.

are may the the about Some driven be of fact by large that that states concerned gathering.

about our bit Massachusetts as And bit than had Island. opened Connecticut But is we being that opened cautious a Rhode to of little perspective. everyone a think from subsequent a a up a about opening. maybe promotional fully you had They’ve know, I start. little more head up So, month in

So think the a marketing understand step take particularly that could specific that’s back better from you to see an the customers. market. in from opportunity margins, a more We perspective, of operate kind towards at spend you’re everyone and for we rationalization certainly, targeted as

don’t So need for be going improved. as find really while, – to linger irrational particularly that’s a we migrate I because I crisis. we to as the think that, from we have marketing margins out this through that COVID the of hopefully, a – that a And perspective, think to continue result

John DeCree

us gains That’s – sounds my into just realized you of will margin of the area. see could as some insight through get follow-up margin good It and improvement? see which or where kind probably like wondering a a some if mostly that. little of some Thanks question, targeted sustainability bit that segue unpack give sustainable you reopening? that you buckets is for marketing to some But the you’ve around is

George Papanier

forced through particularly we provided perspective opportunities mothball from to really the the to ability there valuable we that you go able a of. to big shutdown exercise were really understand take information and of in the some to us, really were Well, a advantage as a there’s perspective, purchasing result contract to operations how trying that understand

continuing that see being. the time we So for

obviously, we ramp-up better continuing. certainly foreseeable to from also We’ve touched – and variable to And perspective, on that’s how our a and being one big we’ve from to We little for I it’s step back learned be aggressive back, a to perspective. going to the And bit marketing operate labor. lastly, a what operations large a marketing, going entertainment. think is items targeted We the a as initially of promotional taken was slow just more future. be going about events said, be

have again, a able approach. the historically business linger and of be that we So is marketing we realize and to of that’s may same for that a levels with maintain going what while less promotional to we’ll

John DeCree

Got continued George that with and Thanks, it. luck reopening. good

George Papanier

Thank you.

Operator

Cowen. the [Operator comes Instructions] line question Our next Chris Sinnott from of of

Chris Sinnott

Good question. taking my morning, for everyone. Thanks

to of in to to liquidity factored provided efficiencies see into $X that potentially like were in found If earlier? $X more this, I was terms million improving had how you that figure million. you that $X per the at down believe pandemic step maybe And previously, guys day direction? think pressure $X was all it have of about step, the cash or might Thanks. in shutdowns, Just burning, outlook a closer outset one adjust million and a the to from that you at what be maybe about backwards that I then outset the could talked of that other we me. the million

George Papanier

I’ll Thanks, Chris. let that. you Steve, And handle

Steve Capp

Did million month? $X would that clarify me? $X that for you Chris, per million, you say

Chris Sinnott

I thought it million, think back XQ it at $X set outset million and call, going you of started but at your $X to my the might prepared million the moved of It to closer here, told to I’m down last I then to what $X been us guys you’ve on have in that’s notes COVID. remarks.

Steve Capp

what obviously, into we in $XX very Yes. listen, up we that at a and phase locking could do, that us per that million and we got $X even that we to number and as mentioned when was, of where the you million were XXXX. to math initially the $X environment feel the million, COVID number, about down as talking we of we sharp math are million the $X through all to we had end sheet yes, took That’s of stuff. your takes work $X a you And there initial million there’s will that balance to. yes, of introspection your not the a you’re getting whittle get if part on I a I’ll so look, it will. zero million balance have around lot numbers But right. It’s you down that of and like if service. say $X-ish – We carry that do – toward we million what at in outset a accurate. numbers, $X million-ish, to I realize call could initial bit. down a expenses debt revenue think there with number, still well sheet month kind We what it million-ish But down $X if come so, scalpel, and take was further or add but those exploratory OpEx tell kind $X – and that in is of a that Remember, did still number. an were you, very quite is right, I

with So you the together of math, that’s do can your kind annual and carry service. debt

feel – we in we’re this difficult ability about circumstances. good pretty manage business So our to

Chris Sinnott

That’s helpful. guys. Thank you,

George Papanier

Chris. Thanks,

Steve Capp

Chris. Thanks,

Operator

our over George turn like to and that final Ladies or was the any Papanier for additional I’d to closing gentlemen, floor remarks. question. back

George Papanier

want you today. for thank call your of all I Hope joining summer. all you Well, thank you, operator. to enjoy the rest our

Operator

Please this River gentlemen. and Twin wonderful Worldwide a Second conference your XXXX conclude today’s have disconnect day. lines time, this Thank you, Quarter ladies Holdings earnings does at call. and

Bally's (BALY) 11 Aug 202020 Q2 Earnings call transcript