LAS VEGAS, Nov. 4, 2020 /PRNewswire/ — Medical Video games Company (NASDAQ: SGMS) (“Medical Video games,” “SGC” or the “Corporate”) lately reported effects for the 3rd quarter ended September 30, 2020. The Corporate’s 3rd quarter effects have been adversely impacted by way of the COVID-19 disruptions basically within the Gaming trade unit throughout the quarter, affecting comparison to the prior yr duration.
3rd Quarter 2020 Monetary Highlights:
- 3rd quarter earnings used to be $698 million in comparison to $855 million within the prior yr duration and an build up from $539 million in the second one quarter. The Corporate’s Gaming earnings used to be negatively impacted by way of the COVID-19 disruptions that has led to persisted diminished operations of on line casino operators globally. Our Lottery, SciPlay and Virtual companies grew within the quarter, highlighting the strategic investments we have now made within the Virtual house and the breadth of our portfolio.
- Web loss used to be $111 million in comparison to web source of revenue of $18 million within the prior yr duration, because of decrease earnings and the consequences of COVID-19. Effects have been additionally impacted by way of a $24 million loss on remeasurement of debt in comparison to a $19 million acquire within the prior yr duration.
- Consolidated AEBITDA, a non-GAAP monetary measure outlined underneath, used to be $235 million in large part pushed by way of COVID-19 disruptions, which have an effect on prior yr comparison. Our Lottery, SciPlay and Virtual trade all greater AEBITDA by way of 10% or extra with our Virtual trade up just about 50% and SciPlay up over 50% from the prior yr.
- Web money equipped by way of working actions used to be $140 million in keeping with the yr in the past duration.
- Unfastened money waft, a non-GAAP monetary measure outlined underneath (which additional adjusts our up to now offered measure of loose money waft), greater $11 million from the prior yr to $62 million pushed basically by way of running capital enhancements.
- To be had liquidity, together with SciPlay, at quarter-end used to be $1.2 billion. On October 8, 2020, next to quarter-end, the Corporate amended its credit score settlement that prolonged the Covenant Aid Duration underneath its revolving credit score facility during the first quarter of 2022 and made a $100 million voluntary cost.
Barry Cottle, President and Leader Govt Officer of Medical Video games, stated, “Because of our group’s focal point on our technique, our numerous portfolio and our dedication to price control, we delivered sturdy money waft within the 3rd quarter. I in point of fact am excited round the entire nice video games, merchandise and answers we need to lend a hand our companions navigate the present setting and supply leading edge answers for the longer term. I would additionally love to welcome the confirmed business leaders to our board who will increase our focal point on de-levering our steadiness sheet and can lend a hand the corporate prudently and thoughtfully form our company technique.”
Michael Eklund, Govt Vice President, Leader Monetary Officer of Medical Video games, added, “The group did a really perfect process using money waft enhancements this quarter, and we will be able to proceed to diligently review further alternatives to extend money waft and de-lever. Taking a look forward, our group will stay extremely all for using operational efficiencies, additional bolstering our liquidity and strengthening our steadiness sheet. My overarching focal point is to enhance the steadiness sheet via operational and trade procedure enhancements.”
- SciPlay AEBITDA greater by way of 54% from the prior yr to $49 million basically pushed by way of earnings enlargement of 30%.
- Virtual AEBITDA greater just about 50% from the prior yr to $25 million. Home iGaming earnings grew just about 150% from the prior yr duration pushed basically by way of sturdy enlargement in New Jersey. Throughout the quarter we introduced new and prolonged partnerships with Exhausting Rock, Flutter and Wynn Lodges amongst others.
- Gaming earnings reduced 49% as COVID-19 disruptions led to persisted diminished operations of on line casino operators in quite a lot of jurisdictions globally. Over 90% of home casinos have reopened together with New York business casinos a big marketplace that opened in mid-September.
- Gaming operations coin-in for grew to become on devices have been up double-digits reflecting the recognition of our video games and sport franchises like Dancing Drums Explosion.
- Gaming gross sales won sturdy send proportion reflecting the breadth of our product choices for business and tribal openings this quarter.
- Lottery rapid price tag gross sales are up over 20% for immediate sport retail gross sales in the latest twelve-week duration in comparison to the similar duration closing yr.
- Lottery earnings and AEBITDA have been each 10% upper than the prior yr. The earnings enlargement used to be pushed by way of home rapid tickets and world gross sales.
- As of September 30, 2020, we had $1.2 billion in to be had liquidity, which integrated SciPlay’s revolving credit score facility.
- On October 8, 2020, the Corporate and considered necessary lenders underneath the Corporate’s revolving credit score facility entered right into a Credit score Settlement Modification that prolonged the Covenant Aid Duration established within the Might 8, 2020 modification, by way of an extra 3 quarters. Compliance with the consolidated web first lien leverage ratio within the Credit score Settlement will now resume with the quarter finishing March 31, 2022.
- On October 9, 2020 the Corporate made a voluntary cost of $100 million towards the steadiness drawn at the revolving credit score facility, demonstrating the boldness we have now in our varied trade fashion.
- Capital expenditures totaled $50 million within the 3rd quarter of 2020, in comparison to $75 million within the prior-year duration. For 2020, the Corporate now expects capital expenditures shall be $210 million – $225 million, which is less than the prior vary of $210 million – $240 million.
- 12 months up to now via September 30, 2020, the Corporate generated loose money waft, a non-GAAP monetary measure, of $114 million, together with $62 million of certain loose money waft within the 3rd quarter because of the power of our numerous portfolio. We proceed to be expecting to be loose money waft certain for the whole yr 2020.
Final touch of MacAndrews & Forbes Transaction
- Lengthy-term institutional traders have finished their acquisition of a 34.9% stake within the Corporate from MacAndrews & Forbes Included (“MacAndrews & Forbes”). The Stockholders Settlement with MacAndrews & Forbes is now terminated and all rights held by way of MacAndrews & Forbes, as opposed to registration rights, are not in impact.
- The reconstituted board will evaluation all strategic choices to enhance and maximize shareholder worth with an purpose to de-lever the steadiness sheet. This broader evaluation of technique shall be supported by way of operational enhancements in conjunction with renewed focal point on running capital control. This used to be demonstrated by way of the forged monetary effects, enhancements in running capital actions, and robust loose money waft this quarter.
Pronouncing Hamish McLennan to Serve As New Unbiased Member of the Board of Administrators
- Mr. McLennan chairs a number of Australian Securities Alternate-listed corporations together with REA Crew Restricted, a $15 billion international virtual promoting corporate, and HT&E Restricted, a media and leisure corporate working radio, virtual and out of doors companies, and is Deputy Chairman of Magellan Monetary Crew, a globally-focused fairness fund with roughly $100 billion price of investments underneath control. Mr. McLennan may be Chairman of Rugby Australia Restricted, the governing frame of rugby union in Australia, and a director of Declare Central Consolidated, an international virtual claims answers trade. Mr. McLennan is an skilled media and advertising government, up to now serving as Govt Chairman and Leader Govt Officer at Community Ten Holdings, an Australian leisure and information content material corporate, Govt Vice President for Information Company, an international varied media and knowledge services and products corporate, in Sydney and New York, and World Chairman and Leader Govt Officer of Younger & Rubicam, a department of WPP, the arena’s greatest communications services and products staff.
Income Convention Name
Medical Video games government management will host a convention name on Wednesday, November 4, 2020, at 4:15 pm. ET to check the Corporate’s 3rd quarter effects. To get right of entry to the decision are living by means of a listen-only webcast and presentation, please discuss with http://www.scientificgames.com/traders/events-presentations/ and click on at the webcast hyperlink underneath the Investor Data segment. To get right of entry to the decision by way of phone, please dial: +1 (412) 317-5420 (U.S. and Global) and ask to sign up for the Medical Video games Company name. A replay of the webcast shall be archived within the Traders segment on www.scientificgames.com.
About Medical Video games
Medical Video games Company (NASDAQ: SGMS) is the arena chief in providing shoppers a completely built-in portfolio of know-how platforms, tough methods, enticing content material and services and products. The Corporate is the worldwide chief in technology-based gaming methods, virtual real-money gaming and sports activities having a bet platforms, desk video games, desk merchandise and rapid video games, and a pacesetter in merchandise, services and products and content material for gaming, lottery and social gaming markets. Medical Video games delivers what shoppers and avid gamers worth maximum: depended on safety, inventive entertaining content material, working efficiencies and leading edge know-how. For more info, please discuss with www.scientificgames.com, which is up to date continuously with monetary and different details about the Corporate. You’ll be able to get right of entry to our filings with the SEC during the SEC web site at www.sec.gov or via our web site, and we strongly inspire you to take action. We automatically submit knowledge that can be vital to traders on our web site at www.scientificgames.com/traders/, and we use our web site as a method of exposing subject matter knowledge to the general public in a vast, non-exclusionary way for functions of the SEC’s Law Honest Disclosure (Reg FD).