|
Delaware
|
| |
7011
|
| |
20-0904604
|
|
|
(State or other jurisdiction of
incorporation or organization) |
| |
(Primary Standard Industrial
Classification Code Number) |
| |
(I.R.S. Employer
Identification No.) |
|
|
Randi L. Strudler
Rory T. Hood Jones Day 250 Vesey Street New York, New York 10281 (212) 326-3939 |
| |
Senet S. Bischoff
Latham & Watkins LLP 885 Third Avenue New York, New York 10022 (212) 906-1200 |
|
|
Large accelerated filer
☐
|
| |
Accelerated filer
☐
|
|
|
Non-accelerated filer
☒
|
| |
Smaller reporting company
☐
|
|
|
Emerging growth company
☒
|
| |
|
CALCULATION OF REGISTRATION FEE
|
| ||||||||||||||||||||||||
| Title of Each Class of Securities to be Registered | | |
Amount to be
Registered(1) |
| |
Proposed Maximum
Offering Price Per Share(2) |
| |
Proposed Maximum
Aggregate Offering Price(2) |
| |
Amount of
Registration Fee |
| ||||||||||||
|
Common Stock, par value $0.01 per share
|
| | | | 3,000,000 | | | | | $ | 30.20 | | | | | $ | 90,600,000 | | | | | $ | 10,981.00 | | |
| | |
Per Share
|
| |
Total(2)
|
| ||||||
Public offering price
|
| | | $ | | | | | $ | | | ||
Underwriting discounts and commissions(1)
|
| | | $ | | | | | | $ | | | |
Proceeds to selling shareholders before expenses
|
| | | $ | | | | | | $ | | | |
| Stifel | | |
Cowen
|
| |
BTIG
|
|
| | |
Page
|
| |||
| | | | ii | | | |
| | | | ii | | | |
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| | | | 32 | | | |
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| | | | 45 | | | |
| | | | 50 | | | |
| | | | 56 | | | |
| | | | 56 | | | |
| | | | 56 | | | |
| | | | 56 | | |
Property
|
| |
Location
|
| |
Type
|
| |
Opening
Year |
| |
Gaming
Square Footage |
| |
Slot
Machines |
| |
Table
Games |
| |
Hotel
Rooms |
| |
Food and
Beverage Outlets |
| |
Racebook
|
| |
Sportsbook
|
| ||||||||||||||||||||||||
Twin River Casino Hotel
|
| |
Lincoln, RI
|
| |
Casino and
Hotel |
| | | | 2007 | | | | | | 162,420 | | | | | | 4,107 | | | | | | 125 | | | | | | 136 | | | | | | 23 | | | | | | Yes | | | | | | Yes | | |
Hard Rock Biloxi
|
| |
Biloxi, MS
|
| |
Casino and
Resort |
| | | | 2007 | | | | | | 50,984 | | | | | | 1,158 | | | | | | 53 | | | | | | 479 | | | | | | 18 | | | | | | No | | | | | | Yes | | |
Tiverton Casino Hotel
|
| |
Tiverton, RI
|
| |
Casino and
Resort |
| | | | 2018 | | | | | | 33,600 | | | | | | 1,000 | | | | | | 32 | | | | | | 83 | | | | | | 8 | | | | | | Yes | | | | | | Yes | | |
Dover Downs Hotel & Casino
|
| |
Dover, DE
|
| |
Casino,
Hotel, and Raceway |
| | | | 1995 | | | | | | 165,000 | | | | | | 2,202 | | | | | | 52 | | | | | | 500 | | | | | | 14 | | | | | | Yes | | | | | | Yes | | |
Arapahoe Park and Havana Park
|
| |
Aurora, CO
|
| |
Racetrack/
OTB Site |
| | | | 1992 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 3 | | | | | | Yes | | | | | | No | | |
Geography
|
| |
GGR
per capita(1) |
| |
# of
casinos(2) |
| |
Median
Income ($000’s) |
| |
Population(3)
(MM) |
| ||||||||||||
Cincinnati | | | | $ | 405 | | | | | | 7 | | | | | $ | 77.0 | | | | | | 2.2 | | |
Pittsburgh | | | | $ | 371 | | | | | | 5 | | | | | $ | 75.5 | | | | | | 2.3 | | |
Kansas City
|
| | | $ | 371 | | | | | | 6 | | | | | $ | 79.9 | | | | | | 2.1 | | |
St. Louis
|
| | | $ | 370 | | | | | | 6 | | | | | $ | 76.6 | | | | | | 2.8 | | |
Detroit | | | | $ | 334 | | | | | | 3 | | | | | $ | 55.5 | | | | | | 4.3 | | |
Philadelphia | | | | $ | 326 | | | | | | 6 | | | | | $ | 61.7 | | | | | | 6.1 | | |
Indianapolis | | | | $ | 212 | | | | | | 2 | | | | | $ | 75.1 | | | | | | 2.0 | | |
Boston(4) | | | | $ | 105 | | | | | | 3 | | | | | $ | 99.3 | | | | | | 7.9 | | |
| | |
Three Months Ended
March 31, |
| |
Years Ended
December 31, |
| ||||||||||||||||||||||||
In thousands
|
| |
2019
|
| |
2018
|
| |
2018
|
| |
2017
|
| |
2016
|
| |||||||||||||||
Income Statement Data | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net revenue
|
| | | $ | 120,631 | | | | | $ | 104,806 | | | | | $ | 437,537 | | | | | $ | 421,053 | | | | | $ | 414,817 | | |
Operating costs and expenses
|
| | | | 90,324 | | | | | | 79,929 | | | | | | 316,888 | | | | | | 297,330 | | | | | | 302,361 | | |
Income from operations
|
| | | | 30,307 | | | | | | 24,877 | | | | | | 120,649 | | | | | | 123,723 | | | | | | 112,456 | | |
Interest expense, net of amounts capitalized and interest income
|
| | | | (7,038) | | | | | | (5,699) | | | | | | (22,852) | | | | | | (22,615) | | | | | | (26,403) | | |
Change in fair value of contingent value rights
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (2,661) | | |
Income before provision for income taxes
|
| | | | 23,269 | | | | | | 19,178 | | | | | | 97,797 | | | | | | 101,108 | | | | | | 83,392 | | |
Provision for income taxes
|
| | | | 5,673 | | | | | | 6,544 | | | | | | (26,359) | | | | | | (38,861) | | | | | | (38,553) | | |
Net income
|
| | | | 17,596 | | | | | | 12,634 | | | | | | 71,438 | | | | | | 62,247 | | | | | | 44,839 | | |
Deemed dividends related to change in fair value of
common stock subject to possible redemption |
| | | | — | | | | | | (1,305) | | | | | | 640 | | | | | | (2,344) | | | | | | (1,028) | | |
Net income applicable to common shareholders
|
| | | $ | 17,596 | | | | | $ | 11,329 | | | | | $ | 72,078 | | | | | $ | 59,903 | | | | | $ | 43,811 | | |
|
| | |
As of March 31,
|
| |
As of December 31,
|
| ||||||||||||
In thousands
|
| |
2019
|
| |
2018
|
| |
2017
|
| |||||||||
Balance Sheet Data | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 103,002 | | | | | $ | 77,580 | | | | | $ | 85,814 | | |
Total assets
|
| | | $ | 951,076 | | | | | $ | 782,352 | | | | | $ | 718,134 | | |
Total liabilities
|
| | | $ | 548,297 | | | | | $ | 483,692 | | | | | $ | 532,278 | | |
Total shareholders’ equity
|
| | | $ | 402,779 | | | | | $ | 298,660 | | | | | $ | 185,856 | | |
| | |
Three Months Ended
March 31, |
| |
Years Ended
December 31, |
| ||||||||||||||||||||||||
In thousands
|
| |
2019
|
| |
2018
|
| |
2018
|
| |
2017
|
| |
2016
|
| |||||||||||||||
Net cash provided by (used in) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating activities
|
| | | $ | 24,983 | | | | | $ | 28,815 | | | | | $ | 109,244 | | | | | $ | 107,832 | | | | | $ | 70,692 | | |
Investing activities
|
| | | $ | (17,105) | | | | | $ | (41,466) | | | | | $ | (117,600) | | | | | $ | (47,485) | | | | | $ | (12,177) | | |
Financing activities
|
| | | $ | 23,391 | | | | | $ | (10,038) | | | | | $ | (3,429) | | | | | $ | (28,933) | | | | | $ | (85,869) | | |
| | |
Three Months Ended
March 31, |
| |
Years Ended
December 31, |
| ||||||||||||||||||||||||
Other Financial Data in thousands
|
| |
2019
|
| |
2018
|
| |
2018
|
| |
2017
|
| |
2016
|
| |||||||||||||||
Adjusted EBITDA(1)
|
| | | $ | 43,884 | | | | | $ | 42,960 | | | | | $ | 165,697 | | | | | $ | 166,772 | | | | | $ | 152,297 | | |
| | |
Three Months Ended
March 31, |
| |
Years Ended
December 31, |
| ||||||||||||||||||||||||
In thousands
|
| |
2019
|
| |
2018
|
| |
2018
|
| |
2017
|
| |
2016
|
| |||||||||||||||
Net income
|
| | | $ | 17,596 | | | | | $ | 12,634 | | | | | $ | 71,438 | | | | | $ | 62,247 | | | | | $ | 44,839 | | |
Depreciation and amortization
|
| | | | 6,769 | | | | | | 5,212 | | | | | | 22,332 | | | | | | 22,204 | | | | | | 25,070 | | |
Provision for income taxes
|
| | | | 5,673 | | | | | | 6,544 | | | | | | 26,359 | | | | | | 38,861 | | | | | | 38,553 | | |
Interest expense, net of interest income
|
| | | | 7,038 | | | | | | 5,699 | | | | | | 22,852 | | | | | | 22,615 | | | | | | 26,403 | | |
Change in fair value of contingent value rights
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,661 | | |
Merger and going public expenses(1)
|
| | | | 6,440 | | | | | | — | | | | | | 6,636 | | | | | | — | | | | | | — | | |
Newport Grand disposal loss(2)
|
| | | | — | | | | | | 5,885 | | | | | | 6,514 | | | | | | — | | | | | | — | | |
Pension withdrawal expense(3)
|
| | | | — | | | | | | — | | | | | | 3,698 | | | | | | — | | | | | | — | | |
Expansion and pre-opening expenses(4)
|
| | | | — | | | | | | 34 | | | | | | 2,678 | | | | | | 154 | | | | | | 623 | | |
Non-recurring litigation expenses(5)
|
| | | | (557) | | | | | | 858 | | | | | | 1,861 | | | | | | 1,722 | | | | | | 2,071 | | |
Pension audit payment(6)
|
| | | | — | | | | | | — | | | | | | 1,400 | | | | | | — | | | | | | — | | |
Share-based compensation
|
| | | | 152 | | | | | | 5,018 | | | | | | (1,474) | | | | | | 17,791 | | | | | | 6,328 | | |
Legal & financial expenses for strategic review(7)
|
| | | | — | | | | | | 550 | | | | | | 676 | | | | | | 822 | | | | | | — | | |
Credit agreement amendment expenses(8)
|
| | | | 335 | | | | | | 386 | | | | | | 493 | | | | | | 106 | | | | | | 717 | | |
Acquisition costs(9)
|
| | | | 438 | | | | | | — | | | | | | 208 | | | | | | — | | | | | | — | | |
Storm related repair expense(10)
|
| | | | — | | | | | | 140 | | | | | | 26 | | | | | | 250 | | | | | | — | | |
Referendum costs(11)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 5,032 | | |
Adjusted EBITDA
|
| | | $ | 43,884 | | | | | $ | 42,960 | | | | | $ | 165,697 | | | | | $ | 166,772 | | | | | $ | 152,297 | | |
| | |
Years Ended December 31,
|
| |||||||||||||||
In thousands
|
| |
2018
|
| |
2017
|
| |
2016
|
| |||||||||
Income Statement Data | | | | | | | | | | | | | | | | | | | |
Revenues
|
| | | $ | 179,931 | | | | | $ | 176,428 | | | | | $ | 181,779 | | |
Expenses
|
| | | | 179,026 | | | | | | 176,354 | | | | | | 179,680 | | |
Operating earnings
|
| | | | 905 | | | | | | 74 | | | | | | 2,099 | | |
Interest expense
|
| | | | (790) | | | | | | (840) | | | | | | (863) | | |
Other income
|
| | | | 302 | | | | | | 147 | | | | | | 134 | | |
Earnings (loss) before income taxes
|
| | | | 417 | | | | | | (619) | | | | | | 1,370 | | |
Income tax expense
|
| | | | (387) | | | | | | (523) | | | | | | (612) | | |
Net earnings (loss)
|
| | | $ | 30 | | | | | $ | (1,142) | | | | | $ | 758 | | |
Comprehensive (loss) income
|
| | | $ | (130) | | | | | $ | (1,245) | | | | | $ | 366 | | |
|
| | |
Years Ended December 31,
|
| |||||||||
In thousands
|
| |
2018
|
| |
2017
|
| ||||||
Balance Sheet Data | | | | | | | | | | | | | |
Cash
|
| | | $ | 10,864 | | | | | $ | 10,714 | | |
Total assets
|
| | | $ | 160,715 | | | | | $ | 161,961 | | |
Total liabilities
|
| | | $ | 46,371 | | | | | $ | 47,652 | | |
Total shareholders’ equity
|
| | | $ | 114,344 | | | | | $ | 114,309 | | |
| | |
Years Ended December 31,
|
| |||||||||||||||
In thousands
|
| |
2018
|
| |
2017
|
| |
2016
|
| |||||||||
Net cash provided by (used in) | | | | | | | | | | | | | | | | | | | |
Operating activities
|
| | | $ | 9,995 | | | | | $ | 6,700 | | | | | $ | 10,355 | | |
Investing activities
|
| | | $ | (4,838) | | | | | $ | (2,204) | | | | | $ | (2,818) | | |
Financing activities
|
| | | $ | (5,007) | | | | | $ | (5,459) | | | | | $ | (6,356) | | |
Other Financial Data
|
| |
Year Ended
December 31, 2018 |
| |||
Adjusted EBITDA(1)
|
| | | $ | 10,767 | | |
In thousands
|
| |
Year Ended
December 31, 2018 |
| |||
Net income
|
| | | $ | 30 | | |
Depreciation and amortization
|
| | | | 8,231 | | |
Provision for income taxes
|
| | | | 387 | | |
Interest expense, net of interest income
|
| | | | 790 | | |
Merger Costs(1)
|
| | | | 1,090 | | |
Share-based compensation
|
| | | | 239 | | |
Adjusted Dover Downs EBITDA
|
| | | $ | 10,767 | | |
In millions
|
| |
Pro Forma
Three Months Ended March 31, 2019 |
| |
Pro Forma
Year Ended December 31, 2018 |
| ||||||
Net revenue
|
| | | $ | 143.7 | | | | | $ | 534.1 | | |
Operating costs and expenses
|
| | | | 107.2 | | | | | | 404.1 | | |
Income from operations
|
| | | | 36.5 | | | | | | 130.1 | | |
Interest expense, net of amounts capitalized and interest income
|
| | | | (11.6) | | | | | | (46.8) | | |
Other income
|
| | | | 0.6 | | | | | | 0.3 | | |
Income before provision for income taxes
|
| | | | 25.6 | | | | | | 83.6 | | |
Provision for income taxes
|
| | | | 6.4 | | | | | | 20.8 | | |
Net income
|
| | | $ | 19.2 | | | | | $ | 62.8 | | |
Net deemed dividends related to change in fair value of common stock
subject to possible redemption |
| | | | 0.0 | | | | | | 0.6 | | |
Net income applicable to common shareholders
|
| | | $ | 19.2 | | | | | $ | 63.4 | | |
Adjusted EBITDA(1)
|
| | | $ | 46.3 | | | | | $ | 176.5 | | |
(in millions)
|
| |
Pro Forma
Three Months Ended March 31, 2019 |
| |
Pro Forma
Year Ended December 31, 2018 |
| ||||||
Net income
|
| | | $ | 19.2 | | | | | $ | 62.8 | | |
Depreciation and amortization
|
| | | | 8.7 | | | | | | 29.8 | | |
Provision for income taxes
|
| | | | 6.4 | | | | | | 20.8 | | |
Interest expense, net of interest income
|
| | | | 11.6 | | | | | | 46.8 | | |
Newport Grand disposal loss(a)
|
| | | | — | | | | | | 6.5 | | |
Pension withdrawal expense(b)
|
| | | | — | | | | | | 3.7 | | |
Expansion and pre-opening expenses(c)
|
| | | | — | | | | | | 2.7 | | |
Non-recurring litigation expenses(d)
|
| | | | (0.6) | | | | | | 1.9 | | |
Pension audit payment(e)
|
| | | | — | | | | | | 1.4 | | |
Share-based compensation
|
| | | | 0.3 | | | | | | (1.2) | | |
Legal & financial expenses for strategic review(f)
|
| | | | — | | | | | | 0.7 | | |
Existing credit agreement amendment expenses(g)
|
| | | | 0.3 | | | | | | 0.5 | | |
Acquisition costs(h)
|
| | | | 0.4 | | | | | | 0.2 | | |
Storm related repair expense(i)
|
| | | | — | | | | | | 0.0 | | |
Pro Forma Adjusted EBITDA(j)
|
| | | $ | 46.3 | | | | | $ | 176.5 | | |
| | |
As of March 31, 2019
|
| ||||||||||||||||||
(in thousands)
|
| |
Actual
|
| |
Pro Forma As
Adjusted for the Refinancing Transaction |
| |
Pro Forma As
Adjusted for the Share Repurchase |
| | |||||||||||
Cash and cash equivalents
|
| | | $ | 103,002 | | | | | $ | 365,500 | | | | | $ | | | | | ||
Total debt: | | | | | | | | | | | | | | | | | | | | | ||
Existing term loan, net of current portion, discount and deferred financing fees
|
| | | $ | 334,920 | | | | | $ | — | | | | | $ | | | | | ||
New revolving credit facility
|
| | | | — | | | | | | — | | | | | | | | | | ||
New term loan facility
|
| | | | — | | | | | | 297,750 | | | | | | | | | | ||
Senior Notes
|
| | | | — | | | | | | 400,000 | | | | | | | | | | ||
Total long-term debt
|
| | | $ | 334,920 | | | | | $ | 697,750 | | | | | $ | | | | | ||
Current portion of term loans
|
| | | $ | 3,595 | | | | | $ | 2,250 | | | | | $ | | | | | ||
Existing revolver borrowing (reported as current)
|
| | | $ | 80,000 | | | | | $ | — | | | | | $ | | | | | ||
Total debt
|
| | | $ | 418,515 | | | | | $ | 700,000 | | | | | $ | | | | | ||
Total Shareholders’ equity
|
| | | $ | 402,779 | | | | | $ | 402,779 | | | | | $ | | | | | ||
Total capitalization
|
| | | $ | 821,294 | | | | | $ | 1,102,779 | | | | | $ | | | |
| | |
Twin River
|
| |
Dover
Downs(1) |
| |
Pro Forma
Adjustments |
| |
Note 3
|
| |
Pro Forma
Combined |
| |||||||||||||||
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net revenues
|
| | | $ | 120,631 | | | | | $ | 42,414 | | | | | $ | (19,357) | | | | |
|
(h)
|
| | | | $ | 143,688 | | |
Operating costs and expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gaming, racing, hotel and food and beverage
|
| | | | 37,088 | | | | | | 38,868 | | | | | | (7,101) | | | | |
|
(i)
|
| | | | | 49,497 | | |
| | | | | | | | | | | | | | | | | (19,357) | | | | |
|
(h)
|
| | | | | | | |
Advertising, general and administrative
|
| | | | 46,467 | | | | | | 2,728 | | | | | | (6,440) | | | | |
|
(a)
|
| | | | | 48,997 | | |
| | | | | | | | | | | | | | | | | (859) | | | | |
|
(b)
|
| | | | | | | |
| | | | | | | | | | | | | | | | | 7,101 | | | | |
|
(i)
|
| | | | | | | |
Merger Costs
|
| | | | — | | | | | | 10,977 | | | | | | (10,977) | | | | |
|
(a)
|
| | | | | — | | |
Depreciation and amortization of intangibles
|
| | | | 6,769 | | | | | | 2,093 | | | | | | 94 | | | | |
|
(c)
|
| | | | | 8,663 | | |
| | | | | | | | | | | | | | | | | (293) | | | | |
|
(d)
|
| | | | | | | |
Total operating costs and expenses
|
| | | | 90,324 | | | | | | 54,665 | | | | | | (37,832) | | | | | | | | | | | | 107,157 | | |
Income (loss) from operations
|
| | | | 30,307 | | | | | | (12,251) | | | | | | 18,475 | | | | | | | | | | | | 36,531 | | |
Other income (expense) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income
|
| | | | 13 | | | | | | — | | | | | | — | | | | | | | | | | | | 13 | | |
Other income
|
| | | | — | | | | | | 647 | | | | | | — | | | | | | | | | | | | 647 | | |
Interest expense, net of amounts capitalized
|
| | | | (7,051) | | | | | | (201) | | | | | | 201 | | | | |
|
(e)
|
| | | | | (11,597) | | |
| | | | | | | | | | | | | | | | | (4,546) | | | | |
|
(j)
|
| | | | | | | |
Total other income (expense)
|
| | | | (7,038) | | | | | | 446 | | | | | | (4,345) | | | | | | | | | | | | (10,937) | | |
Income (loss) before provision for income taxes
|
| | | | 23,269 | | | | | | (11,805) | | | | | | 14,130 | | | | | | | | | | | | 25,594 | | |
Provision for income taxes
|
| | | | 5,673 | | | | | | (1,779) | | | | | | 2,466 | | | | |
|
(f)
|
| | | | | 6,360 | | |
Net income (loss) applicable to common stockholders
|
| | | $ | 17,596 | | | | | $ | (10,026) | | | | | $ | 11,664 | | | | | | | | | | | $ | 19,234 | | |
Net income per common share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | $ | 0.46 | | | | | | | | | | | | | | | | | | | | | | | $ | 0.47 | | |
Diluted
|
| | | $ | 0.46 | | | | | | | | | | | | | | | | | | | | | | | $ | 0.47 | | |
Weighted average common shares outstanding: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | | 38,248,000 | | | | | | | | | | | | | | | | |
|
(g)
|
| | | | | 41,224,825 | | |
Diluted
|
| | | | 38,367,000 | | | | | | | | | | | | | | | | |
|
(g)
|
| | | | | 41,343,825 | | |
| | |
Twin River
|
| |
Dover
Downs |
| |
Pro Forma
Adjustments |
| |
Note 3
|
| |
Pro Forma
Combined |
| |||||||||||||||
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net revenues
|
| | | $ | 437,537 | | | | | $ | 179,931 | | | | | $ | (83,328) | | | | |
|
(h)
|
| | | | $ | 534,140 | | |
Operating costs and expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gaming, racing, hotel and food and beverage
|
| | | | 129,341 | | | | | | 164,381 | | | | | | (29,513) | | | | |
|
(i)
|
| | | | | 180,881 | | |
| | | | | | | | | | | | | | | | | (83,328) | | | | |
|
(h)
|
| | | | | | | |
Advertising, general and administrative
|
| | | | 156,023 | | | | | | 5,324 | | | | | | 29,513 | | | | |
|
(i)
|
| | | | | 184,224 | | |
| | | | | | | | | | | | | | | | | (6,636) | | | | |
|
(a)
|
| | | | | | | |
Merger Costs
|
| | | | — | | | | | | 1,090 | | | | | | (1,090) | | | | |
|
(a)
|
| | | | | — | | |
Expansion and pre-opening
|
| | | | 2,678 | | | | | | — | | | | | | — | | | | | | | | | | | | 2,678 | | |
Newport Grand disposal loss
|
| | | | 6,514 | | | | | | — | | | | | | — | | | | | | | | | | | | 6,514 | | |
Depreciation and amortization of intangibles
|
| | | | 22,332 | | | | | | 8,231 | | | | | | 377 | | | | |
|
(c)
|
| | | | | 29,770 | | |
| | | | | | | | | | | | | | | | | (1,170) | | | | |
|
(d)
|
| | | | | | | |
Total operating costs and expenses
|
| | | | 316,888 | | | | | | 179,026 | | | | | | (91,847) | | | | | | | | | | | | 404,067 | | |
Income from operations
|
| | | | 120,649 | | | | | | 905 | | | | | | 8,519 | | | | | | | | | | | | 130,073 | | |
Other income (expense) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income
|
| | | | 173 | | | | | | — | | | | | | — | | | | | | | | | | | | 173 | | |
Other income
|
| | | | — | | | | | | 302 | | | | | | — | | | | | | | | | | | | 302 | | |
Interest expense, net of amounts capitalized
|
| | | | (23,025) | | | | | | (790) | | | | | | 790 | | | | |
|
(e)
|
| | | | | (46,992) | | |
| | | | | | | | | | | | | | | | | (23,967) | | | | |
|
(j)
|
| | | | | | | |
Total other expense
|
| | | | (22,852) | | | | | | (488) | | | | | | (23,177) | | | | | | | | | | | | (46,517) | | |
Income before provision for income taxes
|
| | | | 97,797 | | | | | | 417 | | | | | | (14,658) | | | | | | | | | | | | 83,556 | | |
Provision for income taxes
|
| | | | 26,359 | | | | | | 387 | | | | | | (5,982) | | | | |
|
(f)
|
| | | | | 20,764 | | |
Net income
|
| | | | 71,438 | | | | | | 30 | | | | | | (8,676) | | | | | | | | | | | $ | 62,792 | | |
Deemed dividends related to changes in fair value of
common stock subject to possible redemption |
| | | | 640 | | | | | | — | | | | | | — | | | | | | | | | | | | 640 | | |
Net income applicable to common stockholders
|
| | | $ | 72,078 | | | | | $ | 30 | | | | | $ | (8,676) | | | | | | | | | | | $ | 63,432 | | |
Net income per common share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | $ | 1.95 | | | | | | | | | | | | | | | | | | | | | | | $ | 1.59 | | |
Diluted
|
| | | $ | 1.87 | | | | | | | | | | | | | | | | | | | | | | | $ | 1.53 | | |
Weighted average common shares outstanding: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | | 36,938,943 | | | | | | | | | | | | | | | | |
|
(g)
|
| | | | | 39,915,768 | | |
Diluted
|
| | | | 38,551,708 | | | | | | | | | | | | | | | | |
|
(g)
|
| | | | | 41,528,533 | | |
(in thousands, except share and per share data)
|
| |
March 28,
2019 |
| |||
Dover Downs shares outstanding
|
| | | | 33,125,997 | | |
Closing Dover Downs share price on March 27, 2019
|
| | | $ | 2.62 | | |
Total fair value of stock purchased*
|
| | | $ | 86,790 | | |
Cash paid by the Company at closing, including amounts to retire Dover Downs debt, inclusive of accrued interest
|
| | | $ | 29,096 | | |
Consideration transferred
|
| | | $ | 115,886 | | |
| | |
Preliminary as of
March 28, 2019 |
| |||
Cash
|
| | | $ | 19,500 | | |
Accounts receivable
|
| | | | 5,674 | | |
Due from State of Delaware
|
| | | | 2,535 | | |
Inventory
|
| | | | 1,891 | | |
Prepaid expenses and other assets
|
| | | | 2,586 | | |
Property and equipment
|
| | | | 103,657 | | |
Right of use asset
|
| | | | 1,333 | | |
Intangible assets
|
| | | | 5,110 | | |
Deferred income tax assets
|
| | | | 6,655 | | |
Other assets
|
| | | | 320 | | |
Accounts payable
|
| | | | (7,470) | | |
Purses due to horseman
|
| | | | (2,613) | | |
Accrued and other current liabilities
|
| | | | (13,014) | | |
Lease obligations
|
| | | | (1,333) | | |
Pension benefit obligations
|
| | | | (6,613) | | |
Other long-term liabilities
|
| | | | (2,332) | | |
Total purchase price
|
| | | $ | 115,886 | | |
| | |
Shares Owned Prior to the
Offering |
| |
Number of
Shares Offered |
| |
Shares Owned After the Offering and
Share Repurchase, if any |
| |||||||||||||||
Name
|
| |
Number of
Shares |
| |
Percentage
|
| |
Number of
Shares |
| |
Percentage
|
| ||||||||||||
Standard RI Ltd(1)
|
| | | | 13,083,391 | | | | | | 31.8% | | | | | | 3,000,000 | | | | | ||||
[Others to be identified]
|
| | | | | |
Name
|
| |
Number of
Shares |
|
Stifel, Nicolaus & Company, Incorporated
|
| |
|
|
Cowen and Company, LLC
|
| | | |
BTIG, LLC
|
| | | |
Total
|
| | | |
|
Per Share
|
| | | $ | | | |
|
Total
|
| | | $ | | | |
| Stifel | | |
Cowen
|
| |
BTIG
|
|
|
SEC registration fee
|
| | | $ | | | |
|
FINRA filing fee
|
| | | | | | |
|
Printing fees and expenses
|
| | | | | | |
|
Legal fees and expenses
|
| | | | | | |
|
Accounting fees and expenses
|
| | | | | | |
|
Miscellaneous expenses
|
| | | | | | |
|
Total
|
| | | $ | | |
| | | | TWIN RIVER WORLDWIDE HOLDINGS, INC. | | |||
| | | | By: | | | /s/ George T. Papanier | |
| | | | Name: | | | George T. Papanier | |
| | | | Title: | | | President and Chief Executive Officer | |
|
Signature
|
| |
Title
|
| |
Date
|
|
|
/s/ George T. Papanier
George T. Papanier
|
| |
President, Chief Executive Officer and Director (Principal Executive Officer)
|
| |
June 14, 2019
|
|
|
/s/ Stephen H. Capp
Stephen H. Capp
|
| |
EVP and Chief Financial Officer (Principal Financial and Accounting Officer)
|
| |
June 14, 2019
|
|
|
/s/ John E. Taylor, Jr.
John E. Taylor, Jr.
|
| |
Executive Chairman and Director
|
| |
June 14, 2019
|
|
|
/s/ Terrence Downey
Terrence Downey
|
| |
Director
|
| |
June 14, 2019
|
|
|
/s/ Soohyung Kim
Soohyung Kim
|
| |
Director
|
| |
June 14, 2019
|
|
|
/s/ Jeffrey W. Rollins
Jeffrey W. Rollins
|
| |
Director
|
| |
June 14, 2019
|
|
|
/s/ Wanda Y. Wilson
Wanda Y. Wilson
|
| |
Director
|
| |
June 14, 2019
|
|
Exhibit 23.2
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We consent to the incorporation by reference in this Registration Statement on Form S-1 of our report dated April 1, 2019, relating to the financial statements and financial statement schedules of Twin River Worldwide Holdings, Inc. and subsidiaries appearing in the Annual Report on Form 10-K of Twin River Worldwide Holdings, Inc. and subsidiaries for the year ended December 31, 2018 (which report expresses an unqualified opinion and includes an emphasis-of-matter paragraph regarding the Company's merger with Dover Downs Gaming & Entertainment, Inc.), and to the reference to us under the heading "Experts" in the Prospectus, which is part of this Registration Statement.
/s/ DELOITTE & TOUCHE LLP
Parsippany, New Jersey
June 14, 2019
Exhibit 23.3
Consent of Independent Registered Public Accounting Firm
We consent to the use of our report dated March 21, 2019, with respect to the consolidated balance sheets of Dover Downs Gaming & Entertainment, Inc. and subsidiaries (the Company) as of December 31, 2018 and 2017, the related consolidated statements of (loss) earnings and comprehensive (loss) income and cash flows for each of the years in the three-year period ended December 31, 2018, and the related notes (collectively, the consolidated financial statements), incorporated by reference herein and to the reference to our firm under the heading “Experts” in the prospectus.
Our report dated March 21, 2019 contains an explanatory paragraph that states that the Company’s credit facility expires on September 30, 2019 and no agreement had been reached to refinance the debt, which raised substantial doubt about the Company’s ability to continue as a going concern. Management’s plans in regard to these matter are also described in Note 2 to the consolidated financial statements. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.
Our report dated March 21, 2019 refers to the adoption of Accounting Standards Update No. 2014-09, Revenue from Contracts With Customers, as of January 1, 2018, using the full retrospective method, and Accounting Standards Update No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (Topic 715), as of January 1, 2018, which requires retrospective adoption.
/s/ KPMG LLP
Philadelphia, Pennsylvania
June 13, 2019
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