Prior forecasts had called for drops of the Twin River Worldwide Holdings (TRWH) stocks and the third-quarter results complemented it.
After the US market closure on Thursday, the company stock had declined by nine percent while it stumbled to six percent on Friday.
During this low moment, the company has decided to make the most out of it. TRWH has taken to repurchasing its shares. While there are a number of factors that have resulted in these poor results, company executives are of the opinion that the new Wynn venue has contributed to the worst competitive pressures.
The most affected TRWH property is Lincoln R.I which has registered low results. By contrast, other company venues have not been affected and have thus delivered solid results in the third-quarter outcome. Venues such as Dover Downs, Tiverton Casino, and Ocean State venue have all performed well.
According to TRWH CEO George Papanier, the Tiverton Casino project’s first-quarter operations generated as much profit as Encore Boston Harbor proving that the venue was performing exceptionally well.
Wynn Resorts’ third-quarter results were presented earlier in November and had scored earnings of $7.7 million. The figure at Encore Boston Harbor was for earnings before interest, taxes, depreciation, and amortization (EBITDA). This was way below Wall Street’s $15 million estimates.
The Friday tumble has lowered the Twin River’s stock by 24% year-to-date. This result has ranked the company as the worst-performing company among all the regional gaming equities. To make matters worse, TRWH has not been in the market for even a year since it commenced in late March.
TRWH has been repurchasing its shares regularly throughout the year. By the third-quarter had repurchased $88.8 million worth shares. The shares are said to be 4,071,711 shares in number as per a statement quoted by Casino.org.
The move could be appealing to investors who may consider injecting their resources to the project. This is so because by buying shares, Twin Rivers is set to lower its shares outstanding and instead increase its earnings per share (EPS).
As November kicked in, the company had only $70 million remaining out of its $250 million return commitment. Following this stock repurchasing process, the stock continues to trade at a compelling value. Meanwhile, TRWH plans to close a deal on value-enhancing acquisitions in the coming months.
This way, the company could focus on deploying the remaining capital in a bid to save the company in this trying time. TRWH may be rewarded in the future for taking advantage of its weakness.
The company’s Colorado operations have not been observed lately. Twin River previously owned the Arapahoe Park but has since then acquired Centennial State’s three casinos as the year began. This was before sports betting was approved in the state.
Papanier expressed his delight in the passage of Proposition DD which would now allow TRWH to obtain three sports betting licenses. With the licenses, the company may work to have an upturn to its next quarter results.
