Bally's Corporation · NYSE:BALY
Bally's — Twin River Worldwide Holdings — Q1 2020 Earnings Presentation
48 slides from Bally's's earnings presentation, May 13, 2020
Slide 1: Twin River Worldwide Holdings, Inc. May 13, 2020
Third Twin River Worldwide Holdings, Inc. May 13, 2020
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures Twin River Worldwide Holdings, Inc. may be referred to in this investor presentation as "the Company", "Twin River" or "TRWH." This presentation contains “forward-looking” statements within the meaning of Section 27A of the Securities Act of
Slide 3: I. Company Overview
I. Company Overview
Slide 4: Company Overview
Company Overview ▪ Twin River Worldwide Holdings, Inc. (“TRWH”) is a diversified, multi-property gaming company – Owns and operates seven casinos and one racetrack across four states – Completed merger with Dover Downs Gaming & Entertainment, Inc. on March 28, 2019; began trading on the NYSE under t
Slide 5: TRWH has focused on creating long-term strategic value
TRWH has focused on creating long-term strategic value Key Strategic Objectives Accomplishments Evolving from single property operator in 2013 to the operator of 12 casino properties across 1 eight states(1) Grow and Diversify through Acquired Hard Rock Biloxi (2014), Newport Grand (2015), Dover Dow
Slide 6: TRWH is a diversified and multi-property gaming company
TRWH is a diversified and multi-property gaming company (1) ü 4 Jurisdictions (1) ü 8 Properties ü 5 Additional locations under contract (2) ü ~9,130 slot machines(1) ü ~ 267 table games(1) ü ~1,200 hotel rooms(1) (1) March 31, 2020 actual, excluding pending acquisitions. (2) The pending acquisition
Slide 7: TRWH Casino Portfolio Summary
TRWH Casino Portfolio Summary Casino Properties Total Location Lincoln, RI Tiverton,RI Biloxi, MS Dover, DE Black Hawk, CO Casino Sq. Ft. 162,420 33,600 50,984 165,000 34,632 446,636 Slot Machines / 4,108 1,000 1,183 2,173 666 9,130 VLTs Table Games 111 32 53 38 33 267 Hotel Rooms 136 83 479 500 — 1
Slide 8: Twin River Casino Has Become a New England Locals' Destination
Twin River Casino Has Become a New England Locals’ Destination ▪ 4,108 slot machines ▪ 162,420 square foot gaming floor ▪ 111 table games and poker ▪ 29,000 square foot multipurpose room event center ▪ 36 stadium gaming positions ▪ 85 acres of adjacent property ▪ 136 guest rooms and suites, which ma
Slide 9: Tiverton was an Opportunistic and Defensive Investment
Tiverton was an Opportunistic and Defensive Investment Intended to Help Solidify TRWH’s Position in the New England Region ▪ 1,000 slot machines ▪ 33,600 square foot gaming floor ▪ 50 table games and stadium ▪ 83 guest rooms and suites, meeting gaming positions spaces and a fitness center ▪ Opened i
Slide 10: Hard Rock Biloxi Diversified TRWH's Geographic Presence
Hard Rock Biloxi Diversified TRWH’s Geographic Presence with a Prime Location in an Established Region ▪ 1,183 slot machines ▪ 50,984 square foot gaming floor ▪ 53 table games and a poker ▪ 9,000 square foot theater with room ~2,000 person seating capacity ▪ 479 guest rooms and suites, ▪ 18 food and
Slide 11: Dover Downs Provided a Path to Becoming Publicly Traded
Dover Downs Provided a Path to Becoming Publicly Traded Along with Meaningful Upside and Further Diversification Casino Hotel & Conference Center ▪ 500 room hotel, full service ▪ 2,173 slot machines spa / salon, conference center, banquet hall, ballroom and ▪ 38 table games and a poker concert hall
Slide 12: Colorado Properties
Colorado Properties Black Hawk Casinos Arapahoe Park ▪ Central location in the Black Hawk market ▪ Significant option value from strategic location ▪ Upside from operational improvement and best-practices ▪ Property includes over 300 acres of available land ◦ Implementation of TRWH marketing strateg
Slide 13: Pending Acquisitions
Pending Acquisitions Purchase Consideration Strategic Rationale • Premier location • Increase table games market share • Opportunity through contemplated $40 million development in a market $230 million that lacks quality gaming offerings purchase price • Optimize marketing / Accretive to earnings 8
Slide 14: Kansas City provides path to market share gain
Kansas City provides path to market share gain in strong gaming market ▪ 939 slot machines ▪ 13 table games ▪ 39,800 square feet of gaming space ▪ Premier location to downtown within area of development ▪ TRWH is evaluating a $40 million redevelopment of the property - rendering outlined below Curre
Slide 15: Vicksburg bolsters presence in Mississippi
Vicksburg bolsters presence in Mississippi ▪ 512 slot machines ▪ 8 electronic table games ▪ 89 hotel rooms ▪ 25,000 square feel of gaming space ▪ Acquisition will be accretive to earnings ▪ Land surrounding property provides future expansion opportunities Competitive Landscape 15
Slide 16: Shreveport provides entrance into an attractive gaming market
Shreveport provides entrance into an attractive gaming market with immediate upside through strategic marketing ▪ 1,401 slot machines ▪ 5 on-site restaurants, bars ▪ 54 table games including a poker and lounges room ▪ 2 on-site nightclubs with live entertainment options ▪ 403 hotel rooms and suites,
Slide 17: MontBleu establishes a destination property
MontBleu establishes a "destination" property for top customers across the brand ▪ 418 slot machines ▪ 2 on-site bar and entertainment ▪ 17 table games venues, featuring the Opal Ultra Lounge nightclub ▪ 438 hotel rooms, a pool and ▪ 16,000 a square feet of meeting fitness center, full service space
Slide 18: Bally's offers enhanced upside through sports betting and iGaming
Bally's offers enhanced upside through sports betting and iGaming ▪ 1,800 slot machines ▪ 220,000 square feet across two ▪ 121 table games gaming floors ▪ 7 bar, lounge and nightclub facilities ▪ 1,250 guest rooms and suites, a spa and indoor ▪ 80,000 a square feet of meeting fitness facilities spac
Slide 19: Experienced Management Team
Experienced Management Team TRWH’s management team has significant public company experience and a successful track record of delivering growth through public policy initiatives, development projects and strategic acquisitions Relevant Industry Company Name & Title Experience Experience Experience 2
Slide 20: II. Growth Track Record
II. Growth Track Record
Slide 21: TRWH has Grown Through a Disciplined Investment Strategy
TRWH has Grown Through a Disciplined Investment Strategy Organic Growth Initiatives Strategic M&A 2018 2020 2014 2019 2020 Lincoln Hotel Hard Rock Biloxi Tiverton Construction Isle-KC Redevelopment Dover Downs Merger Black Hawk Acquisition Construction Acquisition & Expansion ($131 million) (~$40 mi
Slide 22: Track Record of Strategic M&A
Track Record of Strategic M&A TRWH is focused on creating long-term strategic value Estimated Purchase Date Multiple / Owned Adj. EBITDA(1) Strategic Rationale Multiple Hard Rock Biloxi July 2014 10x / <7x $36M - $38M ▪ Diversify from Single Property Newport Grand / ▪ Own 2nd Rhode Island License Ma
Slide 23: Proven Track Record of Successful Developments
Proven Track Record of Successful Developments – Tiverton Casino and Twin River Hotel • The Company has a track record of successful Twin River Hotel developments to drive future growth • In 2016, TRWH successfully secured approval to relocate its Newport gaming license to a more competitively valua
Slide 24: TRWH Deploys Strategic Initiatives at Newly Acquired Properties
TRWH Deploys Strategic Initiatives at Newly Acquired Properties to Drive Incremental Cash Flow Dover Downs Hotel & Casino Example Since acquiring Dover Downs on March 28, 2019, the Company has rolled out a pipeline of initiatives designed to maximize the cash flow potential of the property • Apply T
Slide 25: Kansas City - Potential Redevelopment Rendering
Kansas City - Potential Redevelopment Rendering Note: The above rendering is a preliminary, illustrative example of the type of structural enhancements the Company may make to the property. Any actual changes to the property, if made, may be different from the example above. 25
Slide 26: Kansas City - Example Site Master Plan
Kansas City - Example Site Master Plan Note: The above rendering is a preliminary, illustrative example of the type of site enhancements the Company may make to the property. Any actual changes to the property, if made, may be different from the example above. 26
Slide 27: TRWH Has Proven Ability to Work Collaboratively Within RI Regulatory Framework
TRWH Has Proven Ability to Work Collaboratively Within RI Regulatory Framework ■ Strong Growth Track Record ▪ Company achieved multiple voter approved initiatives to expand business and actively works towards positive relationships with regulators ▪ Marketing tools have provided significant growth 2
Slide 28: Proposed New Partnership with IGT
Proposed New Partnership with IGT to Protect and Enhance State Gaming Revenues (Currently pending legislative approval) Proposed Agreement Yields a Number of Important Benefits for Twin River ■ VLTs – Twin River would be licensed as a technology provider and would manage approximately 23% of the VLT
Slide 29: Twin River Casino Hotel - Planned Expansion and Renovation
Twin River Casino Hotel - Planned Expansion and Renovation Investment of $100 million to update Lincoln facility • 18-month renovation and expansion of Twin River Casino Hotel • 40,000 square foot addition to the first floor gaming space • 14,000 square foot spa in the hotel • Greater separation bet
Slide 30: Twin River Casino Hotel - Planned Expansion and Renovation
Twin River Casino Hotel - Planned Expansion and Renovation 30
Slide 31: Two of the Nation's Top Sportsbooks Debuted May 1st in Colorado
Two of the Nation's Top Sportsbooks Debuted May 1st in Colorado DraftKings Inc. and FanDuel Group • With the acquisition of Black Hawk, the Company also acquired the right to three sports gaming licenses in Colorado, leading to the creation of these two partnerships. • These partnerships combine our
Slide 32: III. Investment Highlights
III. Investment Highlights
Slide 33: Gaming Taxes Pay for VLTs, So TRWH Realizes High Free Cash Flow
In Rhode Island and Delaware, Gaming Taxes Pay for VLTs, So TRWH Realizes Comparatively High Free Cash Flow ▪ TRWH maintains a significant competitive advantage because its capex is low and reasonably predictable ▪ TRWH’s primary capex requirements are associated with maintenance of properties or ex
Slide 34: Strong Cash Flow Generation Helps Drive Value
Strong Cash Flow Generation Helps Drive Value The Company’s Regulatory Structure is Unique, Resulting in Higher Adjusted EBITDA to Cash Conversion(1) than the Industry Norm ▪ In Rhode Island and Delaware, the Company’s gaming equipment is funded through the top-line GGR tax (not through the more typ
Slide 35: IV. Key Financial Highlights / Q1 2020 Results
IV. Key Financial Highlights / Q1 2020 Results
Slide 36: Capital Return Program Delivered Attractive Capital Returns to Shareholders
Capital Return Program Delivered Attractive Capital Returns to Shareholders (1) Since inception, the Company has returned over $265 million of capital back to shareholders Share Repurchases Quarterly Dividend • Completed modified dutch auction tender offer in the third quarter of 2019 and repurchase
Slide 37: Shares Outstanding
Capital Return Program Common Stock Activity 42,000,000 41,111,841 41,147,597 40,000,000 Q2 37,989,376 2 01 38,000,000 9t oQ 12 02 0 36,000,000 -26 Shares Outstanding % 34,574,587 34,000,000 32,113,328 32,000,000 30,594,691 30,000,000 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q1 2019: • Issued
Slide 38: Strong Balance Sheet and Liquidity
Strong Balance Sheet and Liquidity Proforma Q1 2020(1) Cash on Hand: $370 million Available borrowing capacity: $250 million Total liquidity: $620 million Liquidity after acquisitions(2): $210 million Face Value of Debt(1): $973 million No substantial debt maturities before 2024 (1) Proforma outstan
Slide 39: Continued Revenue Diversification
Continued Revenue Diversification M&A Strategy Focused on Accretive Growth Q1 2020 Q1 2019 6% 2% 26% 23% 52% 1% 71% 19% Rhode Island Delaware Biloxi Other Rhode Island Delaware Biloxi Other 39
Slide 40: Corporate Strategy Driving Adjusted EBITDA Diversification
Corporate Strategy Driving Adjusted EBITDA Diversification (1) Strong Early Performance in Delaware Proving M&A Strategy Q1 2020 Q1 2019 19% 20% 11% 70% 81% Rhode Island Delaware Biloxi Rhode Island Biloxi (Excludes "Other" operating segment) (1) Refer to Appendix to this presentation for a reconcil
Slide 41: Summary of Financial Results
Summary of Financial Results Two Months Ended Month Ended Three Months Ended ($ in thousands, except February February March March March March percentages) 29, 2020 28, 2019 Change 31, 2020 31, 2019 Change 31, 2020 31, 2019 Change Revenue $ 90,256 $ 73,160 23.4 % $ 18,892 $ 47,471 (60.2)% $ 109,148
Slide 42: Impact from New Regional Competition
Impact from New Regional Competition ■ TRWH's Rhode Island properties have weathered the impact from Encore Boston Harbor and established a new baseline from which to grow, driven in large part by TRWH's transfer of the Newport Grand license and opening of Tiverton. ■ Rhode Island monthly GGR post-E
Slide 43: Appendix
Appendix
Slide 44: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA Quarter Ended March 31, (in thousands) 2020 2019 Revenue $ 109,148 $ 120,631 Net income $ (8,878) $ 17,596 Interest expense, net of interest income 11,373 7,038 Provision for income taxes (5,664) 5,673 Depreciation and amortization 8,979 6,769 Non-oper
Slide 45: Reconciliation of Net Income to Adjusted EBITDA by Segment
Reconciliation of Net Income to Adjusted EBITDA by Segment Quarter Ended March 31, 2020 (in thousands) Rhode Island Delaware Biloxi Other Total Revenue $ 56,279 $ 21,086 $ 25,482 $ 6,301 $ 109,148 Net income $ 8,083 $ 205 $ 1,408 $ (18,574) $ (8,878) Interest expense, net of interest income (36) 41
Slide 46: Reconciliation of Net Income to Adjusted EBITDA by Segment
Reconciliation of Net Income to Adjusted EBITDA by Segment Quarter Ended March 31, 2019 (in thousands) Rhode Island Delaware Biloxi Other Total Revenue $ 86,125 $ 1,525 $ 31,032 $ 1,949 $ 120,631 Net income $ 21,224 $ — $ 4,277 $ (7,905) $ 17,596 Interest expense, net of interest income 2,311 — (4)
Slide 47: Reconciliation of Net Income to Adjusted EBITDA by Month
Reconciliation of Net Income to Adjusted EBITDA by Month One Month Ended One Month Ended January 31, February 29, March 31, January 31, February 28, March 31, (in thousands) 2020 2020 2020 2019 2019 2019 Revenue $ 42,159 $ 48,097 $ 18,892 $ 35,949 $ 37,211 $ 47,471 Net income (loss) $ (626) $ 6,003
Slide 48: Reconciliation of Monthly Adjusted EBITDA by Segment
Reconciliation of Monthly Adjusted EBITDA by Segment One Month Ended One Month Ended January 31, February 29, March 31, January 31, February 28, March 31, (in thousands) 2020 2020 2020 2019 2019 2019 Adjusted EBITDA by Segment: Lincoln $ 7,370 $ 8,553 $ (1,422) $ 10,424 $ 10,306 $ 14,489 Tiverton 1,
Twin River Worldwide Holdings — Q1 2020 Earnings Presentation on 6ix