News
Twin River Worldwide Holdings, Inc. Announces 2018 Fourth Quarter And Full Year Results
Reading Time: 13 minutes
Q4 REVENUE INCREASED 11.9% YEAR-OVER-YEAR
Twin River Worldwide Holdings, Inc. reported financial results for the fourth quarter and full year ended December 31, 2018.
Fourth Quarter and Full Year 2018 Highlights
- Net revenues for the fourth quarter and full year 2018 were $111.4 million and $437.5 million, respectively.
- Gross gaming revenues for the fourth quarter and full year 2018 were $183.5 million and $716.9 million, respectively. See reconciliation of this and other non-GAAP metics in the tables below.
- Fourth quarter and full year 2018 net income was $22.1 million and $71.4 million, respectively.
- Adjusted EBITDA for the fourth quarter and full year 2018 were $37.0 million and $165.7 million, respectively.
- Tiverton Casino Hotel (“Tiverton“) and the new hotel at Twin River Casino Hotel (“Twin River”) opened.
- The merger with Dover Downs Gaming & Entertainment, Inc. (“Dover Downs”) is expected to close in March 2019.
“We are pleased with the progress we made on our strategic initiatives in 2018. This past year was transformational for us, with the successful launch of our newest property, Tiverton, the successful opening and ramp of our new hotel at Twin River, the introduction of sports betting across our casino properties and the Dover Downs merger and related launch of TRWH as an NYSE-listed company. I am proud of our team’s focus and dedication to these initiatives without losing sight of our customers,” said George Papanier, President and Chief Executive Officer. “We are on track to close the Dover transaction this month, and our teams are hard at work planning for the integration to capture the synergies and strategic benefits of this combination for our combined shareholders.”
Summary of Fourth Quarter and Full Year Financial Results
|
Quarter Ended December 31, |
Year Ended December 31, |
||||||||||||||||
|
Amounts in $000’s |
2018 |
2017 |
Change |
2018 |
2017 |
Change |
|||||||||||
|
Net revenue |
$ |
111,422 |
$ |
99,554 |
11.9% |
$ |
437,537 |
$ |
421,053 |
3.9% |
|||||||
|
Income from operations |
34,697 |
27,990 |
24.0% |
120,649 |
123,723 |
-2.5% |
|||||||||||
|
Income from operations margin |
31.14% |
28.12% |
27.57% |
29.38% |
|||||||||||||
|
Net income |
22,130 |
19,154 |
15.5% |
71,438 |
62,247 |
14.8% |
|||||||||||
|
Net income margin |
19.86% |
19.24% |
16.33% |
14.78% |
|||||||||||||
|
Adjusted EBITDA |
36,980 |
38,535 |
-4.0% |
165,697 |
166,772 |
-0.6% |
|||||||||||
|
Adjusted EBITDA Margin |
33.19% |
38.71% |
37.87% |
39.61% |
|||||||||||||
2018 Fourth Quarter Results
Net revenues for the fourth quarter increased 11.9% to $111.4 million from $99.6 million in the fourth quarter of 2017. Net revenue increases were the result of the opening of Tiverton and the hotel at Twin River in September and October, respectively. Gaming revenues increased $8.5 million, or 11.3%, hotel revenues increased $1.6 million, or 38.2%, and food & beverage revenues increased $1.5 million, or 14.0%, each compared to the same period in the prior year.
Income from operations in the fourth quarter increased $6.7 million, or 24.0%, year-over-year to $34.7 million. This improvement can be attributed to operating income generated by the increased revenue and a $3.7 million decrease in advertising, general and administrative expenses (“AG&A”). The decrease in AG&A was primarily driven by a $12.8 million decrease reflecting reductions in share-based compensation expense, partially offset by merger and going public expenses and normal volume-related increases.
Net income for the fourth quarter increased by $3.0 million, or 15.5%, to $22.1 million due primarily to increased income from operations, partially offset by $1.8 million of increased interest expense and an increase in the effective tax rate from 17.2% to 20.9%.
Adjusted EBITDA for the fourth quarter of 2018 was $37.0 million, a decrease of $1.6 million, or (4.0%), from $38.5 million in the fourth quarter last year driven by increased corporate administrative expenses.
2018 Full Year Results
Net revenue for the year ended December 31, 2018 increased 3.9% to $437.5 million, from $421.1 million in the same period in 2017. This increase was primarily attributable to increases in gaming and racing revenue and non-gaming revenue attributable to the opening of Tiverton on September 1, 2018, partially offset by a decrease of $5.3 million from closing Newport Grand on August 28, 2018. The increase in non-gaming revenue can also be attributed opening the Twin River hotel and, to a lesser extent, due to increases in merchandise, cash services and entertainment revenue.
Total operating costs and expenses for the full year 2018 increased $19.6 million to $316.9 million from $297.3 million for 2017. This increase resulted in income from operations of $120.6 million, which represented a decrease of 2.5% compared to 2017. The year-over-year increase in costs and expenses can be attributed to $6.6 million of costs related to the Dover Downs merger and public company costs, a disposal loss of $6.5 million in connection with the sale of the Newport Grand land and building, a $3.7 million charge incurred associated with a pension plan withdrawal liability, an increase of $2.5 million in expansion and pre-opening costs primarily associated with Tiverton and increased marketing expense to support the opening of Tiverton and the Twin River hotel, partially offset by a $19.3 million reduction in the amount of share-based compensation expense.
Net income for 2018 was $71.4 million, an increase of 14.8% from $62.2 million in 2017. Contributing to the net income increase year-over-year was a reduction in the effective tax rate from 38.4% to 27.0% as a result of federal tax reform.
Adjusted EBITDA for the full year of $165.7 million was essentially the same as 2017.
Balance Sheet and Liquidity
TRWH had $77.6 million in cash and cash equivalents, excluding restricted cash, at December 31, 2018. Outstanding indebtedness at December 31, 2018 totaled $394.2 million including $55.0 million outstanding on the Company’s revolving credit facility. The Company’s leverage remained relatively consistent at approximately 2.4x compared to the prior year. Capital expenditures for Tiverton and Twin River hotel in 2018 totaled approximately $117 million.
Following the Dover Downs merger, the Company plans to consider a potential tender for a portion of its outstanding common stock or another transaction to provide a return of capital to shareholders. The amount, timing and terms of any such transaction, if any, will be determined at that time and be based upon prevailing market conditions, the Company’s financial condition and prospects and other factors, including conditions in the bank, credit and debt capital markets.
Reconciliation of GAAP Measures to Non-GAAP measures
To supplement the financial information presented on a generally accepted accounting principles (“GAAP”) basis, the Company has included in this earnings release non-GAAP financial measures for Adjusted EBITDA, Adjusted EBITDA margin, gross gaming revenue and leverage. The non-GAAP measure Adjusted EBITDA excludes depreciation, amortization, interest expense and income, net, income taxes, merger and going public expenses, loss associated with Newport Grand land and building disposal, acquisition-related costs associated with announced planned acquisitions in Colorado, pension withdrawal expense, pension audit payment, shared-based compensation expense, non-recurring litigation expenses, legal and financial expenses for strategic review, non-recurring expansion and pre-opening expenses, storm-related repairs, and credit agreement amendment expenses. Adjusted EBITDA margin is Adjusted EBITDA divided by net revenue. Gross gaming revenue is is net gaming revenue inclusive of the State of Rhode Island’s share of net terminal income, tables games revenue and other gaming revenue. Leverage is calculated as outstanding debt divided by Adjusted EBITDA as defined above.
The reconciliation of these non-GAAP financial measures to their comparable GAAP financial measures are presented in the tables appearing below. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for any measure prepared in accordance with GAAP. The Company believes that presenting non-GAAP financial measures aids in making period-to-period comparisons and is a meaningful indication of its actual and estimated operating performance. The Company’s management utilizes and plans to utilize this non-GAAP financial information to compare the Company’s operating performance to comparable periods and to internally prepared projections. The Company’s non-GAAP financial measures may not be the same as or comparable to similar non-GAAP measures presented by other companies.
Fourth Quarter and Full Year Conference Call
The Company’s fourth quarter and full year 2018 earnings conference call and audio webcast will be held today, Tuesday March 19, 2019 at 5:00 PM EDT. To access the conference call, please dial (877) 791-0146 (U.S. toll-free) and reference conference ID number 1562667. The webcast of the call will be available to the public, on a listen-only basis, via the Internet at the Investors section of the Company’s website at www.twinriverwwholdings.com. An online archive of the webcast will be available on the Company’s website for 120 days.
About Twin River Worldwide Holdings, Inc.
Twin River Worldwide Holdings, Inc., owns and manages two casinos in Rhode Island and one in Mississippi, as well as a Colorado horse race track that possesses 13 OTB licenses. Properties include Twin River Casino Hotel (Lincoln, RI), Hard Rock Hotel & Casino (Biloxi, MS), Tiverton Casino Hotel (Tiverton, RI) and Arapahoe Park (Aurora, CO). TRWH’s expertise spans various casino markets, including regional, destination & resort environments. Its casinos range in size from 1,000 slots and 32 table games facilities to properties with 4,200 slots and 123 table games, along with hotel and resort amenities.
Additional Information and Where to Find It
In connection with the proposed Dover Downs transaction, Twin River filed a registration statement on Form S-4 (File No. 333-228973) with the SEC that includes a combined proxy statement/prospectus. The registration statement was declared effective by the SEC on February 8, 2019, and a definitive proxy statement/prospectus was sent to each Dover Downs stockholder entitled to vote at the special meeting in connection with the proposed transaction beginning on February 13, 2019. This communication is not a substitute for any proxy statement, registration statement, prospectus or other documents Dover Downs and/or Twin River may file with the SEC in connection with the proposed Dover Downs transaction. INVESTORS ARE URGED TO READ CAREFULLY AND IN THEIR ENTIRETY THESE DOCUMENTS, ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS AND OTHER DOCUMENTS FILED BY DOVER DOWNS OR TWIN RIVER WITH THE SEC IN CONNECTION WITH THE PROPOSED DOVER DOWNS TRANSACTION BECAUSE THESE DOCUMENTS CONTAIN IMPORTANT INFORMATION. Investors are able to obtain free copies of these materials and other documents filed with the SEC by Dover Downs and/or Twin River through the website maintained by the SEC at www.sec.gov. Investors are also able to obtain free copies of the documents filed by Dover Downs and/or Twin River with the SEC from the respective companies by directing a written request to Dover Downs at Dover Downs Gaming & Entertainment, Inc., 1131 North DuPont Highway, Dover, Delaware 19901 or by calling (302) 857-3292, or contact Twin River at Twin River Worldwide Holdings, Inc., 100 Twin River Road, Lincoln, RI 02865 or by calling (401)-475-8474.
No Offer or Solicitation
This communication is for informational purposes only and not intended to and does not constitute an offer to subscribe for, buy or sell, the solicitation of an offer to subscribe for, buy or sell or an invitation to subscribe for, buy or sell any securities or the solicitation of any vote or approval in any jurisdiction pursuant to, or in connection with, the proposed transaction or otherwise, nor will there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. No offer of securities will be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended (the “Securities Act”), and otherwise in accordance with applicable law.
Participants in the Solicitation
This communication is not a solicitation of a proxy from any investor. Dover Downs, its directors, executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies from stockholders of Dover Downs in connection with the proposed transaction. Information regarding the persons who may, under the rules of the SEC, be deemed participants in the solicitation of proxies in connection with the proposed transaction, including a description of their direct or indirect interests, by security holdings or otherwise, are set forth in the relevant materials filed with the SEC. Information regarding the directors and executive officers of Dover Downs is contained in Dover Downs’ definitive proxy statement in respect of the Dover Downs transaction, its proxy statement for its 2018 annual meeting of stockholders, filed with the SEC on March 29, 2018, its annual report on Form 10-K for the year ended December 31, 2017, which was filed with the SEC on March 1, 2018, its quarterly report on Form 10-Q for the quarter ended September 30, 2018, which was filed with the SEC on November 8, 2018 and certain of its current reports filed on Form 8-K. These documents can be obtained free of charge from the sources indicated above.
Forward-Looking Statements
This communication contains “forward-looking” statements as that term is defined in Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. All statements, other than historical facts, including future financial and operating results, the tax consequences of the transaction and the Company’s plans, objectives, expectations and intentions, legal, economic and regulatory conditions and any assumptions underlying any of the foregoing, are forward-looking statements.
Forward-looking statements concern future circumstances and results and other statements that are not historical facts and are sometimes identified by the words “may,” “will,” “should,” “potential,” “intend,” “expect,” “endeavor,” “seek,” “anticipate,” “estimate,” “overestimate,” “underestimate,” “believe,” “could,” “project,” “predict,” “continue,” “target” or other similar words or expressions. Forward-looking statements are based upon current plans, estimates and expectations that are subject to risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. The inclusion of such statements should not be regarded as a representation that such plans, estimates or expectations will be achieved. Important factors that could cause actual results to differ materially from such plans, estimates or expectations include, among others (1) the risk that the proposed Dover Downs transaction may not be completed on the terms, in the time frame expected or at all; (2) unexpected costs, charges or expenses resulting from the Dover Downs and proposed Colorado transactions; (3) uncertainty of the expected financial performance of TRWH, including the failure to realize the anticipated benefits of transactions; (4) TRWH’s ability to implement its business strategy; (5) the inability to retain and hire key personnel; (6) the risk that stockholder litigation, result in significant costs of defense, indemnification and/or liability; (7) evolving legal, regulatory and tax regimes; (8) changes in general economic and/or industry specific conditions; (9) actions by third parties, including government agencies;(10) the risk that TRWH will be unable to complete any proposed capital return transaction on the terms, in the time frame expected or at all; and (11) other risk factors as detailed in the combined proxy statement/prospectus that was filed in a Registration Statement on Form S-4 with the SEC in connection with the Dover Downs transaction. The foregoing list of important factors is not exclusive.
Any forward-looking statements speak only as of the date of this communication. TRWH does not undertake any obligation to update any forward-looking statements, whether as a result of new information or development, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements.
|
TWIN RIVER WORLDWIDE HOLDINGS, INC. |
||||||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) |
||||||||||||
|
(in thousands, except per share data) |
||||||||||||
|
Quarter Ended December 31, |
Year Ended December 31, |
|||||||||||
|
2018 |
2017 |
2018 |
2017 |
|||||||||
|
Revenue: |
||||||||||||
|
Gaming |
$ |
83,825 |
$ |
75,288 |
$ |
327,740 |
$ |
314,794 |
||||
|
Racing |
2,718 |
3,152 |
13,158 |
14,034 |
||||||||
|
Hotel |
5,687 |
4,115 |
21,339 |
19,431 |
||||||||
|
Food and beverage |
12,465 |
10,935 |
48,380 |
47,004 |
||||||||
|
Other |
6,727 |
6,064 |
26,920 |
25,790 |
||||||||
|
Net revenue |
111,422 |
99,554 |
437,537 |
421,053 |
||||||||
|
Operating costs and expenses: |
||||||||||||
|
Gaming |
20,138 |
16,441 |
71,798 |
65,558 |
||||||||
|
Racing |
1,990 |
1,966 |
9,031 |
9,534 |
||||||||
|
Hotel |
2,352 |
1,713 |
8,266 |
7,173 |
||||||||
|
Food and beverage |
11,922 |
8,818 |
40,246 |
37,371 |
||||||||
|
Advertising, general and administrative |
33,507 |
37,229 |
156,023 |
155,336 |
||||||||
|
Expansion and pre-opening |
54 |
59 |
2,678 |
154 |
||||||||
|
Newport Grand disposal loss |
(27) |
– |
6,514 |
– |
||||||||
|
Depreciation and amortization |
6,789 |
5,338 |
22,332 |
22,204 |
||||||||
|
Total operating costs and expenses |
76,725 |
71,564 |
316,888 |
297,330 |
||||||||
|
Income from operations |
34,697 |
27,990 |
120,649 |
123,723 |
||||||||
|
Other income (expense): |
||||||||||||
|
Interest income |
53 |
52 |
173 |
194 |
||||||||
|
Interest expense, net of amounts capitalized |
(6,774) |
(4,910) |
(23,025) |
(22,809) |
||||||||
|
Total other expense |
(6,721) |
(4,858) |
(22,852) |
(22,615) |
||||||||
|
Income before provision for income taxes |
27,976 |
23,132 |
97,797 |
101,108 |
||||||||
|
Provision for income taxes |
(5,846) |
(3,978) |
(26,359) |
(38,861) |
||||||||
|
Net income |
22,130 |
19,154 |
71,438 |
62,247 |
||||||||
|
Deemed dividends related to changes in fair value of |
2,214 |
(668) |
640 |
(2,344) |
||||||||
|
Net income applicable to common stockholders |
$ |
24,344 |
$ |
18,486 |
$ |
72,078 |
$ |
59,903 |
||||
|
Net income per share, basic |
$ |
0.66 |
$ |
0.51 |
$ |
1.95 |
$ |
1.64 |
||||
|
Weighted average common shares outstanding, basic |
37,080,705 |
36,486,318 |
36,938,943 |
36,478,759 |
||||||||
|
Net income per share, diluted |
$ |
0.63 |
$ |
0.48 |
$ |
1.87 |
$ |
1.56 |
||||
|
Weighted average common shares outstanding, diluted |
38,503,938 |
38,485,001 |
38,551,708 |
38,442,944 |
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TWIN RIVER WORLDWIDE HOLDINGS, INC. |
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CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) |
||||
|
(in thousands) |
||||
|
December 31, |
||||
|
2018 |
2017 |
|||
|
Assets |
||||
|
Current assets: |
||||
|
Cash and cash equivalents |
$ 77,580 |
$ 85,814 |
||
|
Restricted cash |
3,851 |
7,402 |
||
|
Accounts receivable, net |
22,966 |
18,311 |
||
|
Other current assets |
18,065 |
22,525 |
||
|
Total current assets |
122,462 |
134,052 |
||
|
Property and equipment, net |
416,148 |
335,548 |
||
|
Goodwill |
132,035 |
132,035 |
||
|
Intangible assets, net |
110,104 |
115,367 |
||
|
Other non-current assets |
1,603 |
1,132 |
||
|
Total assets |
$ 782,352 |
$ 718,134 |
||
|
Liabilities, Temporary Equity and Shareholders’ Equity |
||||
|
Current liabilities: |
||||
|
Current portion of term loan |
$ 3,595 |
$ 33,325 |
||
|
Accounts payable |
14,215 |
25,062 |
||
|
Accrued liabilities |
57,778 |
57,849 |
||
|
Total current liabilities |
75,588 |
116,236 |
||
|
Stock options |
– |
46,521 |
||
|
Deferred tax liability |
17,526 |
11,646 |
||
|
Revolver borrowings |
55,000 |
20,000 |
||
|
Term loan, net of current portion, discount and deferred financing fees |
335,578 |
337,875 |
||
|
Total liabilities |
483,692 |
532,278 |
||
|
Commitments and contingencies |
||||
|
Common stock subject to possible redemption |
– |
9,053 |
||
|
Shareholders’ equity: |
||||
|
Common stock |
380 |
362 |
||
|
Additional paid in capital |
125,629 |
67,910 |
||
|
Treasury Stock, at cost |
(30,233) |
(22,275) |
||
|
Retained earnings |
202,884 |
130,806 |
||
|
Total shareholders’ equity |
298,660 |
176,803 |
||
|
Total liabilities, temporary equity and shareholders’ equity |
$ 782,352 |
$ 718,134 |
||
|
TWIN RIVER WORLDWIDE HOLDINGS, INC. |
||||
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) |
||||
|
(in thousands) |
||||
|
Years Ended December 31, |
||||
|
2018 |
2017 |
|||
|
Cash flows from operating activities: |
||||
|
Net income |
$ 71,438 |
$ 62,247 |
||
|
Adjustments to reconcile net income to net cash provided by operating activities: |
||||
|
Depreciation and amortization |
22,332 |
22,204 |
||
|
Share-based compensation |
(1,474) |
17,791 |
||
|
Amortization of deferred financing fees |
2,400 |
2,205 |
||
|
Amortization of original issue discount |
867 |
1,082 |
||
|
Bad debt expense |
202 |
29 |
||
|
Deferred income taxes |
5,880 |
(5,126) |
||
|
Newport Grand disposal loss |
6,514 |
– |
||
|
Loss on disposal of property and equipment |
11 |
24 |
||
|
Changes in operating assets and liabilities |
1,074 |
7,376 |
||
|
Net cash provided by operating activities |
109,244 |
107,832 |
||
|
Cash flows from investing activities: |
||||
|
Repayment of loans from officers and directors |
5,360 |
362 |
||
|
Proceeds from sale of land and building for Newport Grand disposal |
7,108 |
– |
||
|
Capital expenditures, excluding Tiverton Casino Hotel and new hotel at Twin |
(11,874) |
(8,574) |
||
|
Capital expenditures – Tiverton Casino Hotel |
(94,581) |
(34,355) |
||
|
Capital expenditures – new hotel at Twin River Casino |
(22,435) |
(4,924) |
||
|
Other investing cash flows |
(1,178) |
6 |
||
|
Net cash used in investing activities |
(117,600) |
(47,485) |
||
|
Cash flows from financing activities: |
||||
|
Revolver borrowing |
41,000 |
10,000 |
||
|
Revolver repayments |
(6,000) |
(25,000) |
||
|
Term loan repayments |
(34,527) |
(11,564) |
||
|
Stock repurchases |
(7,958) |
(2,275) |
||
|
Other financing cash flows |
4,056 |
(94) |
||
|
Net cash used in financing activities |
(3,429) |
(28,933) |
||
|
Net change in cash and cash equivalents and restricted cash |
(11,785) |
31,414 |
||
|
Cash and equivalents and restricted cash, beginning of period |
93,216 |
61,802 |
||
|
Cash and equivalents and restricted cash, end of period |
$ 81,431 |
$ 93,216 |
||
|
TWIN RIVER WORLDWIDE HOLDINGS, INC. |
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|
Reconciliation of Net Income and Net Income Margin to |
||||||||
|
Adjusted EBITDA and Adjusted EBITDA Margin (Unaudited) |
||||||||
|
(in thousands) |
||||||||
|
Quarter Ended December 31, |
Year Ended December 31, |
|||||||
|
2018 |
2017 |
2018 |
2017 |
|||||
|
Net revenue |
$ 111,422 |
$ 99,554 |
$ 437,537 |
$ 421,053 |
||||
|
Net income |
$ 22,130 |
$ 19,154 |
$ 71,438 |
$ 62,247 |
||||
|
Depreciation and amortization |
6,789 |
5,338 |
22,332 |
22,204 |
||||
|
Provision for income taxes |
5,846 |
3,978 |
26,359 |
38,861 |
||||
|
Interest expense, net of interest income |
6,721 |
4,858 |
22,852 |
22,615 |
||||
|
Merger and going public expenses (1) |
2,292 |
– |
6,636 |
– |
||||
|
Newport grand disposal loss (2) |
(27) |
– |
6,514 |
– |
||||
|
Pension withdrawl expense (3) |
– |
– |
3,698 |
– |
||||
|
Expansion and pre-opening expenses (4) |
54 |
59 |
2,678 |
154 |
||||
|
Non-recurring litigation expenses (5) |
626 |
678 |
1,861 |
1,722 |
||||
|
Pension audit payment (6) |
1,400 |
– |
1,400 |
– |
||||
|
Share-based compensation |
(8,825) |
3,994 |
(1,474) |
17,791 |
||||
|
Legal & financial expenses for strategic review (7) |
4 |
226 |
676 |
822 |
||||
|
Credit agreement amendment expenses (8) |
83 |
– |
493 |
106 |
||||
|
Acquistion costs (9) |
208 |
– |
208 |
– |
||||
|
Storm related repair expense (10) |
(321) |
250 |
26 |
250 |
||||
|
Adjusted EBITDA |
$ 36,980 |
$ 38,535 |
$ 165,697 |
$ 166,772 |
||||
|
Net income margin |
19.86% |
19.24% |
16.33% |
14.78% |
||||
|
Adjusted EBITDA margin |
33.19% |
38.71% |
37.87% |
39.61% |
||||
|
(1) |
Merger and going public expenses primarily include legal and financial advisory costs related to the merger with Dover Downs and one-time costs of becoming a public company. |
|
(2) |
Newport Grand disposal loss represents the loss on the sale of the land and building, write-down of building improvements and write-off of equipment. |
|
(3) |
The pension withdrawal expense represents the accrual for the New England Teamsters Multi- employer pension plan withdrawal liability. |
|
(4) |
Expansion and pre-opening expenses represent costs incurred for Tiverton Casino Hotel prior to its opening on September 1, 2018. |
|
(5) |
Non-recurring litigation expense represents legal expenses incurred by TRWH in connection with certain litigation matters (net of insurance reimbursements). |
|
(6) |
Pension audit payments represents a charge for out-of-period unpaid contributions, inclusive of estimated interest and penalties, to one of the Company’s multi-employer pension plans. |
|
(7) |
Legal and financial expenses for the strategic review include expenses associated with TRWH’s review of strategic alternatives that began in April 2017. |
|
(8) |
Credit Agreement amendment expenses include costs associated with amendments made to TRWH’s Credit Agreement. |
|
(9) |
Acquisition costs represent costs incurred during the year associated with the Company’s announced acquisition of three casinos in Black Hawk, Colorado from Affinity Gaming. |
|
(10) |
Storm-related repair expenses include costs, net of insurance recoveries, associated with damage from Hurricane Nate at Hard Rock Biloxi. |
|
TWIN RIVER WORLDWIDE HOLDINGS, INC. |
||||||||||||
|
Calculation of Gross Gaming Revenue (Unaudited) |
||||||||||||
|
(In thousands) |
||||||||||||
|
Quarter Ended December 31, |
Year Ended December 31, |
|||||||||||
|
2018 |
2017 |
Change |
2018 |
2017 |
Change |
|||||||
|
Net gaming revenue |
$ 83,825 |
$ 75,288 |
11.3% |
$ 327,740 |
$ 314,794 |
4.1% |
||||||
|
Adjustment for the State of RI’s share of net |
99,710 |
86,774 |
389,203 |
370,604 |
||||||||
|
Gross gaming revenue |
$ 183,535 |
$ 162,062 |
13.3% |
$ 716,943 |
$ 685,398 |
4.6% |
||||||
|
(1) |
Adjustment made to show gaming revenue on a gross basis consistent with gross gaming win data provided throughout the gaming industry. |
|
Calculation of Leverage (Unaudited) |
||||
|
(In thousands, except times levered) |
||||
|
Year Ended December 31, |
||||
|
2018 |
2017 |
|||
|
Face Value of Debt (1) |
$ 397,439 |
$ 396,966 |
||
|
Adjusted EBITDA (2) |
165,697 |
166,772 |
||
|
Leverage |
2.4x |
2.4x |
||
|
(1) |
Outstanding debt before unamortized original issue discount and unamortized term loan deferred financing costs of $3.3 million and $5.8 million in 2018 and 2017, respectively. |
|
(2) |
See reconciliation of GAAP net income to Adjusted EBITDA above. |
Source: Twin River Worldwide Holdings, Inc.
Source: European Gaming Media
This is a Syndicated News piece. Photo credits or photo sources can be found on the source article: Twin River Worldwide Holdings, Inc. Announces 2018 Fourth Quarter And Full Year Results
The iGaming industry is advancing at breakneck speed, driven by technological innovation and evolving player expectations. Itai Zak, Executive Director of iGaming at Digicode, emphasizes the importance of bridging client aspirations with customized business solutions. Key trends shaping the future of iGaming include live dealer games, blockchain integration, artificial intelligence (AI) and machine learning (ML), enhanced personalization, and shifting regulatory environments. Let’s delve into how these trends influence the industry, presenting new opportunities while paving the way for future growth.
A Closer Look at Emerging Trends
- Live Dealer Games
Live dealer games are revolutionizing the online gaming experience, blending the best aspects of land-based casinos with the convenience of virtual gaming. Players can now engage with real-life dealers via high-definition video streams, enhancing the social component of online gambling. This bridge between physical and virtual casinos introduces interactive features like live chat and immersive gameplay. Industry leaders like Evolution Gaming and NetEnt are setting new standards in player engagement with innovative game formats and top-tier studio setups, redefining the realism and appeal of live gaming.
- Blockchain and Cryptocurrency Integration
Blockchain technology is transforming iGaming by offering unparalleled transparency and security. With blockchain’s ability to enable provably fair gaming, players can verify that each round is fair via an immutable ledger. Cryptocurrencies like Bitcoin and Ethereum facilitate faster, more secure transactions, catering to tech-savvy players who value privacy. Platforms like Bitcasino.io are leading the way, leveraging blockchain to ensure fairness and seamless payments. However, the rise of blockchain also attracts regulatory attention, requiring operators to balance innovation with compliance as governments navigate this new technology.
- Artificial Intelligence and Machine Learning
AI and ML are instrumental in enhancing player experience and operational efficiency. AI algorithms analyze player behavior in real-time, offering personalized game recommendations and promotions. Additionally, AI-powered chatbots provide instant customer support, improving user satisfaction. AI-driven predictive analytics also help operators fine-tune marketing strategies based on player preferences. Companies like Bet365 are already using these technologies to stay ahead of the competition, offering more personalized and efficient gaming experiences.
- Richer Personalization and Engagement
Personalization has become crucial for iGaming operators looking to boost player satisfaction and retention. By leveraging data analytics, companies can offer tailored game recommendations, dynamic bonuses, and individualized promotional offers. This level of engagement enhances the player experience and strengthens loyalty. Industry pioneers like DraftKings and FanDuel push the envelope by offering highly customized features, such as personalized fantasy sports leagues and bespoke betting options.
- Regulatory Changes and Market Expansion
The constantly evolving regulatory landscape offers both challenges and opportunities for iGaming operators. As more regions legalize various forms of online gambling, companies gain access to new markets. With their large populations and increasing internet penetration, emerging markets like Brazil and Nigeria represent lucrative opportunities. However, navigating the diverse regulations in these markets requires agility and strict compliance with local laws to succeed.
- Enhanced Payment Solutions
With digital transactions becoming the norm, the demand for fast, secure, and flexible payment methods is skyrocketing. From digital wallets to instant banking and cryptocurrencies, players expect payment solutions that offer convenience and security. This growing demand is driving innovation in payment processing, giving operators more opportunities to streamline the transaction process while building trust with users.
Future Implications
The Expanding Role of AI and Blockchain
AI and blockchain are not just current trends, but they are poised to play an even more significant role in iGaming’s future. As AI technology evolves, more sophisticated algorithms will emerge, enabling real-time adaptation to player behavior and preferences. Blockchain’s application may extend beyond transparency and security, transforming game mechanics and player interactions potentially redefining how games are designed and played.
Shifting Player Preferences
Player expectations will continue to evolve toward immersive, interactive experiences. As Virtual Reality (VR) and Augmented Reality (AR) become more mainstream, they will significantly influence the future of iGaming. Players will demand more engaging, lifelike environments, pushing the industry to create innovative game formats and features that offer deeper immersion and entertainment value.
Regulatory Developments
The regulatory environment will continue to evolve, and iGaming operators must stay agile to navigate future changes. New regulations may increasingly emphasize responsible gaming and player protection, influencing platform design and operational practices. A more harmonized regulatory framework across jurisdictions could provide stability while requiring operators to prioritize compliance.
Integrating Emerging Technologies
Technologies like 5G and edge computing are set to revolutionize iGaming by enabling faster, more reliable connectivity. This will allow for more complex game designs and real-time player interactions, opening new avenues for innovative gaming experiences. As these technologies mature, operators will have greater opportunities to differentiate their offerings. The potential of these emerging technologies to revolutionize iGaming is truly exciting and promising for the industry’s future.
Final Thoughts
The iGaming industry is on the cusp of significant transformations, driven by technological advancements and shifting player demands. Innovations like live dealer games, blockchain integration, AI, ML, and enhanced personalization are just the beginning. As the industry evolves, staying ahead of these trends will be critical for operators looking to thrive in an increasingly dynamic environment.
At Digicode, we are constantly exploring new technologies and refining our solutions to meet the evolving needs of our clients. Our focus on adaptability and foresight ensures that our clients are not just keeping pace with the industry—they’re leading it.
The post Innovations Redefining iGaming: What Operators Need to Know appeared first on European Gaming Industry News.
A partnership between game developer Turbo Games and iGaming solution provider and aggregator Slotegrator began in November 2022 via the APIgrator game integration solution. Since then, the collaboration has been developing successfully — and now it’s time to analyze what made it successful.
Turbo Games has noticed how the new technologies spreading throughout the industry can work for the good of brand transparency and player loyalty: “We can already see how blockchain technology has made it possible to make betting checks more accessible to players. All you need is a blockchain-hash and a decoder service. We think we will continue to move in this direction. Many traditional online casinos do not offer the possibility to check the bet. Sooner or later we all have to come to this. Perhaps the development of artificial intelligence will help here, because we are already seeing its involvement in all spheres of human life.”
Turbo Games specializes in provably fair games. Provable fairness is a concept where players can verify their wins or losses using blockchain technology — the outcome of the game is dictated by a smart contract and is absolutely random, barring the possibility of any human involvement. Using cryptographic hashing algorithms, the gambling site and the player’s device both generate seeds (random strings of numbers). Players receive a key that allows them to check the results; if the results are the same as the game round they witnessed, it proves that there was no foul play.
According to statistics from Turbo Games, the audience for provably fair games is mostly between 18 and 25 years old. However, there are also players aged 35-40 who prefer traditional games but would like to try something new, and have turned their attention to provably fair games.
There are good odds that the technology of provably fair games will become more popular, if not even commonplace, because it gives players a feeling of transparency and proves that the business is trustworthy without the need to search through dozens of reviews. Whereas many innovations in iGaming simply add entertainment, provable fairness addresses security concerns and reassures players that they’re not being exploited, which is invaluable.
Provably fair games are beneficial for both players and online casinos. Vadim Potapenko, Head of Sales at Turbo Games, comments: “It often happens that the users are not satisfied with the result, because gambling is not only about big wins, but also possible losses. By allowing them to check the fairness of a bet, we make life easier for platforms and players. Of course, this allows us to communicate with partners and users that we work honestly and that’s why they should trust our games.”
Ayvar Gabidullin, Business Development Manager at Slotegrator, adds that “this type of game is now becoming more and more popular and has great potential for both players and game providers in the future. On the part of the player, the advantage is that the player can always be sure that his game is fair and he can independently check any of his bets. And for the game provider, this also simplifies the process of implementing casino games, since now it will not be necessary to obtain the appropriate certificates from independent laboratories before launching new games, they can immediately enter the market with these games and where anyone can check the result and make sure that that there is no cheating with players. Many game providers are starting to look towards this type of game. And as far as I see, many operators are starting to think about adding these games.”
What do players in 2023 need? The iGaming industry is all about reputation and trust. Players have a huge number of platforms to choose from, making them pickier and pickier. There’s an abundance of forums where players leave reviews, so if players view a brand as untrustworthy, there are plenty of places they can share their opinion. Provable fairness not only stops that from happening, it provides evidence to the contrary, giving players something else to talk about.
Slotegrator also recommends investing time and effort into localization and creating an effective and detailed marketing strategy — before trying provably fair technology players need to get to the platform, and there is no acquisition without marketing.
ABOUT SLOTEGRATOR
Since 2012, Slotegrator has been one of the iGaming industry’s leading software and business solution providers for online casino and sportsbook operators.
The company’s main focus is software development and support for online casino platforms, as well as the integration of game content and payment systems.
The company works with licensed game developers and offers a vast portfolio of casino content: slots, live casino games, poker, virtual sports, table games, lotteries, casual games, and data feeds for betting.
Slotegrator also provides consulting services in gambling license acquisition and business incorporation.
More information: https://slotegrator.pro/
ABOUT TURBO GAMES
Turbo Games — a provably fair games provider that belongs to Turbo Stars company — has an ambitious goal to establish widespread recognition throughout the iGaming world. Even though it is young, the company consists of professionals who have been working on the brand for over five years and are even planning to introduce a new brand for a wider audience soon.
Turbo Games also works in Europe, India, and South Africa, where the company sees the most potential and expects the same “hype” as in Brazil.
The portfolio of Turbo Games consists of 21 titles, including well-known games like Mines, Crash X, DoubleRoll, Hi-Lo, and Plinko. The studio releases a game every month. However, not all games are developed from scratch. Wicket Blast and Spin Strike, the last two releases, are based on cricket and the Indian Premier League. Crash X remains the most popular fast game in the Turbo Games portfolio, and the studio reports that crash games enjoy stable levels of popularity. Overall, the main focus of the brand is provably fair games.
More information: https://turbogames.io/
Looking to take your career to the next level in the games industry? Then, Nordic Game Talents is the place to be! Games Factory Talents has teamed up with Nordic Game to bring you Nordic Game Talents.
From Oct 27-29, the online and interactive event is dedicated to recruitment and career building in the creative & games industry within the Nordic region. The event empowers participants to be part of a bigger community and motivates them to explore new paths in achieving their career goals.
Hiring creative & games studios – Supercell, Funcom, Panzerdog, Tactile Games, Gamecan, Fingersoft, Dazzle Rocks, Redhill Games to name a few from the Nordic region will be participating in the event. These studios will share information on their latest projects, work culture and what it takes to be part of their team. The individual games associations from Finland, Denmark, Sweden, Norway and Estonia will share insights through live sessions on the booming games industry in their respective countries. Career development topics pertinent to job seekers like – How to have a successful first interview, Creative Portfolio reviews will also be discussed.
Experienced game industry professionals and individuals beginning their careers from around the world are welcome to join the event. One-to-one interviews with the hiring studios can be scheduled through the event platform. A great opportunity to get to know the studios and network with game professionals from around the world.
Participating in the event
As a job seeker attending Nordic Game Talents, take a few minutes to fill out a simple registration form. After filling the registration form you will receive a link to the online event platform – PINE, to join the event on 27th October. Participants joining Nordic Game Talents will also receive a free-of-charge pass to the Nordic Game Conference.
To view the complete agenda, please click here and to learn more about the event please visit Games Job Fair
About Games Factory Talents
A Helsinki-based talent attraction agency dedicated to the games & creative industry. Our services include direct recruitment, organizing game job fairs and managing a community of game industry professionals through our GameDev Talent Board.
To learn more about Games Factory Talents visit – Games Factory Talents
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