Twin River Worldwide Holdings is in the process of developing a cautious, multi-phase approach to reopening its facilities, as the organisation reveals that it has contingencies in planning for long-term shutdowns to minimise its operating cash burn rate to about $3 m per month.
Because some states and local governments are implementing proposals to reopen non-essential enterprises, Twin River’s strategy includes screening team members and visitors at property entry, thermal imaging cameras, implementation of social distance guidelines, including spacing between VLTs and restricted or no table games, daily cleaning and sanitation protocols for all areas, mask p
Twin River’s performance for the January-March period was significantly impacted by the mandatory suspension of operations in mid-March as a result of COVID-19 providing the guidance in its first quarter financial report.
Noting additional start-up costs that will temporarily rise as properties reopen, Twin River saw sales drop to $109.1 m (2019: $120.6 m) by 9.5 percent during the period. The figure stood at $90.2 m for the first two months of the year, reflecting a 23.4 percent rise from $73.1 m.
Net loss for the quarter ended at $8.8 million , compared to earnings of $17.5 million a year ago, with adjusted EBITDA falling 49.7 percent to $22 million (2019: $43.8 million).
Following agreements made with Eldorado Resorts, Caesars Entertainment and Vici Properties, Twin River has added three properties to its growing portfolio after the quarter.
The developer will purchase first of all Eldorado Shreveport Resort and Casino in Louisiana and MontBleu Resort Casino and Spa in Lake Tahoe, Nevada for $155 m from the former, as well as Bally’s Atlantic City Hotel and Casino for $25 m from Caesars, who will receive $6 m, and Vici, who will collect the remaining $19 m.
The President and CEO George Papanier explained: “During these times, our highest priority is the health and safety of our team members, customers and communities. We continue to support the actions taken by state and local officials to help slow the spread of COVID-19, including the temporary closure of our properties, and continue to look to provide assistance wherever possible. Our company started the year strong, reporting year-over-year revenue growth of over 23 per cent in the first two months of the quarter.
“While our full quarter results were meaningfully impacted by the closure of our properties in March, we have taken broad-based actions to reduce expenses and enhance liquidity. Our leadership team has also remained hard at work executing on key strategic growth initiatives, including our recently announced deal to acquire three casinos from Eldorado and Caesars to further expand our geographic diversity and enhance our financial profile. Despite near-term uncertainties, we are confident that our strong balance sheet, liquidity and long-term strategic planning will enable us to emerge from this crisis in an even better position.”