Financial Data and Key Metrics Changes - Consolidated revenue increased 13% year-over-year to $756 million, with operating income rising 62% to $165 million, primarily due to higher revenue and healthy margins [45][46] - Adjusted NPATA increased 22% year-over-year to $105 million, reflecting strong revenue growth across all businesses [46] - Consolidated AEBITDA grew 13% to $281 million, resulting in a consolidated AEBITDA margin of 37% for the quarter [63][64] Business Line Data and Key Metrics Changes - Gaming revenue grew 14% year-over-year to $476 million, driven by strong global gaming machine sales and gains across gaming operations and systems [65] - SciPlay delivered record revenue, up 11% year-over-year to $206 million, supported by robust player engagement and monetization [69] - iGaming revenue increased 14% year-over-year to a record $74 million, driven by strong content launches and market expansion [85] Market Data and Key Metrics Changes - North American premium installed base grew for 15 consecutive quarters, now representing 49% of the North American in-store base [32] - Average monthly revenue per paying user in SciPlay reached nearly $114, an increase of 17% compared to the prior year [73] - Wagers processed through the iGaming OGS platform increased 10% year-over-year to a record $22.4 billion [86] Company Strategy and Development Direction - The company aims to continue executing its capital allocation strategy, focusing on share buybacks and organic investments [8][19] - The strategy emphasizes building great franchises across three channels, with a focus on cross-platform opportunities [11][12] - The company is committed to enhancing its direct-to-consumer platform, which generated approximately 6% of revenues in the first quarter [60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the $1.4 billion revenue target, citing strong operating momentum and a solid pipeline of opportunities [151][152] - The company remains focused on maintaining strong margins while investing in growth initiatives and R&D [162] - Management noted that the gaming industry is resilient, with healthy consumer demand fueling impressive growth [51] Other Important Information - The company repurchased $25 million of shares during the quarter, totaling approximately $600 million or 80% of the $750 million authorized program [89] - The company had approximately $1.2 billion of available liquidity at the end of the quarter, including $450 million in cash [87] Q&A Session Summary Question: What is the growth trajectory for SciPlay and the DTC platform? - Management highlighted SciPlay's consistent market share gains and expects the DTC platform to ramp up significantly, aiming for higher revenue contributions over time [91][105] Question: Can you elaborate on unit sales and adjacent market opportunities? - Management discussed strong year-over-year growth in unit sales and the potential for significant contributions from adjacent markets in 2024 [95][111] Question: How is slot demand globally and what is the forward order visibility? - Management indicated improving game quality and a solid order book, with discrete opportunities in adjacent markets providing stability [134] Question: What are the expectations for free cash flow conversion? - Management expects annual conversion rates to trend favorably, despite some seasonality in cash flow levels [139] Question: What is the company's approach to M&A? - Management stated that while they are open to M&A opportunities that align with their core business, they are not in a hurry to complicate the portfolio [142]

Light & Wonder (LNW) reported $756 million in revenue for the quarter ended March 2024, representing a year-over-year increase of 12.8%. EPS of $0.93 for the same period compares to $0.23 a year ago.The reported revenue represents a surprise of +3.28% over the Zacks Consensus Estimate of $732.01 million. With the consensus EPS estimate being $0.70, the EPS surprise was +32.86%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Str ...

Light & Wonder (LNW) came out with quarterly earnings of $0.93 per share, beating the Zacks Consensus Estimate of $0.70 per share. This compares to earnings of $0.23 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 32.86%. A quarter ago, it was expected that this instant-win lottery ticket maker would post earnings of $0.76 per share when it actually produced earnings of $0.73, delivering a surprise of -3.95%.Over the last four ...

[PART I. FINANCIAL INFORMATION](index=8&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Condensed Consolidated Financial Statements (unaudited)](index=8&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(unaudited)) The unaudited financial statements for Q1 2024 show significant revenue and net income growth, with total assets at **$5.59 billion** [Consolidated Statements of Income](index=8&type=section&id=Consolidated%20Statements%20of%20Income) Q1 2024 income statements show total revenue of **$756 million** and net income of **$82 million**, reflecting strong growth Consolidated Statements of Income (Three Months Ended March 31) | Metric | 2024 (in millions) | 2023 (in millions) | YoY Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | $756 | $670 | +13% | | **Operating Income** | $165 | $102 | +62% | | **Net Income Attributable to L&W** | $82 | $22 | +273% | | **Diluted EPS Attributable to L&W** | $0.88 | $0.23 | +283% | [Consolidated Balance Sheets](index=10&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets reached **$5.588 billion**, with liabilities at **$4.753 billion** and equity at **$835 million** Consolidated Balance Sheet Highlights | Metric | March 31, 2024 (in millions) | December 31, 2023 (in millions) | | :--- | :--- | :--- | | **Total Assets** | $5,588 | $5,552 | | Cash and cash equivalents | $450 | $425 | | Goodwill | $2,925 | $2,945 | | **Total Liabilities** | $4,753 | $4,787 | | Long-term debt, excluding current portion | $3,852 | $3,852 | | **Total Stockholders' Equity** | $835 | $765 | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2024 cash flow shows **$171 million** from operations, **$71 million** used in investing, and **$65 million** in financing Cash Flow Summary (Three Months Ended March 31) | Cash Flow Activity | 2024 (in millions) | 2023 (in millions) | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $171 | $185 | | **Net cash used in investing activities** | $(71) | $(57) | | **Net cash used in financing activities** | $(65) | $(65) | | Increase in cash, cash equivalents and restricted cash | $32 | $63 | [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, segment performance, **$3.9 billion** debt, and legal contingencies with potential losses up to **$13 million** - The company operates in three business segments: Gaming, SciPlay, and iGaming. The primary measure of profit for these segments is **Adjusted EBITDA (AEBITDA)**[32](index=32&type=chunk)[45](index=45&type=chunk)[46](index=46&type=chunk) Revenue by Business Segment (Three Months Ended March 31) | Segment | 2024 Revenue (in millions) | 2023 Revenue (in millions) | | :--- | :--- | :--- | | Gaming | $476 | $419 | | SciPlay | $206 | $186 | | iGaming | $74 | $65 | | **Total** | **$756** | **$670** | - As of March 31, 2024, the company had total outstanding debt with a face value of **$3.9 billion**, primarily consisting of a **$2.2 billion** variable-rate Term Loan B and various senior unsecured notes[67](index=67&type=chunk) - The company estimates a range of possible loss for certain legal contingencies up to approximately **$13 million** in excess of accrued liabilities[91](index=91&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2024's **13%** revenue growth across all segments, **62%** operating income increase, and strong **$1.19 billion** liquidity [Consolidated Results](index=29&type=section&id=Consolidated%20Results) Q1 2024 consolidated revenue grew **13%** to **$756 million**, with operating income up **62%** to **$165 million** Consolidated Results Summary (Q1 2024 vs Q1 2023) | Metric (in millions) | Q1 2024 | Q1 2023 | Variance ($) | Variance (%) | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | $756 | $670 | $86 | 13% | | **Operating Income** | $165 | $102 | $63 | 62% | | **Net Income** | $82 | $27 | $55 | 204% | - The increase in operating expenses was driven by higher SG&A (**$26M**) and R&D (**$8M**), partially offset by lower D&A (**-$15M**) and Restructuring costs (**-$13M**)[127](index=127&type=chunk)[129](index=129&type=chunk)[130](index=130&type=chunk) [Business Segment Results](index=31&type=section&id=Business%20Segment%20Results) All segments showed strong revenue growth, with Gaming up **14%** to **$476 million**, SciPlay **11%** to **$206 million**, and iGaming **14%** to **$74 million** Segment Revenue and AEBITDA (Q1 2024) | Segment | Revenue (in millions) | AEBITDA (in millions) | AEBITDA Margin | | :--- | :--- | :--- | :--- | | Gaming | $476 | $232 | 49% | | SciPlay | $206 | $62 | 30% | | iGaming | $74 | $25 | 34% | - Gaming growth was driven by a **26%** increase in total new unit shipments, with a notable **45%** rise in international shipments[140](index=140&type=chunk) - SciPlay's performance was highlighted by a record ARPDAU of **$1.01**, up **13%** YoY, and a **17%** increase in Average Monthly Revenue Per Paying User (AMRPPU)[125](index=125&type=chunk)[156](index=156&type=chunk)[161](index=161&type=chunk) - iGaming processed **$22 billion** in wagers through its Open Gaming System during the quarter[169](index=169&type=chunk) [Liquidity, Capital Resources and Working Capital](index=37&type=section&id=Liquidity,%20Capital%20Resources%20and%20Working%20Capital) Total liquidity was **$1.19 billion** as of March 31, 2024, with **$171 million** from operations and **$25 million** in share repurchases Cash and Available Revolver Capacity (in millions) | Component | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $450 | $425 | | Available Revolver Capacity | $740 | $740 | | **Total** | **$1,190** | **$1,165** | - Net cash provided by operating activities decreased to **$171 million** from **$185 million** in Q1 2023, primarily due to unfavorable changes in working capital[178](index=178&type=chunk)[179](index=179&type=chunk)[180](index=180&type=chunk) - The company repurchased **0.2 million** shares of common stock for an aggregate cost of **$25 million** during the quarter[178](index=178&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces interest rate risk on **$2.2 billion** variable-rate debt, mitigated by **$700 million** in interest rate swaps - The company has **$2.2 billion** of variable-rate debt obligations that fluctuate based on SOFR[186](index=186&type=chunk) - A hypothetical **1%** change in interest rates would change annual interest expense by approximately **$22 million**, excluding the impact of hedges[186](index=186&type=chunk) - The company hedges a portion of its variable rate debt with interest rate swap contracts on a total notional amount of **$700 million**, which mature in April 2027[187](index=187&type=chunk)[72](index=72&type=chunk) [Controls and Procedures](index=39&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal controls - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures are effective as of March 31, 2024[189](index=189&type=chunk) - No material changes were made to internal controls over financial reporting during the quarter ended March 31, 2024[190](index=190&type=chunk) [PART II. OTHER INFORMATION](index=39&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, with details available in Note 15 of the financial statements - For a full discussion of legal proceedings, refer to Note 15 in the Notes to Condensed Consolidated Financial Statements[191](index=191&type=chunk) [Risk Factors](index=40&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors were reported compared to the 2023 Annual Report on Form 10-K - No material changes in risk factors were reported compared to those disclosed in the 2023 10-K[192](index=192&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=40&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **0.25 million** shares for **$25 million** in Q1 2024, with **$150 million** remaining for future repurchases Issuer Purchases of Equity Securities (Q1 2024) | Period | Total Shares Purchased (millions) | Average Price Paid per Share | Total Cost (in millions) | Approx. Value Remaining for Purchase (in millions) | | :--- | :--- | :--- | :--- | :--- | | Jan 2024 | — | — | — | $175 | | Feb 2024 | — | — | — | $175 | | Mar 2024 | 0.25 | $101.04 | $25 | $150 | | **Total** | **0.25** | **$101.04** | **$25** | **$150** | [Other Information](index=40&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during Q1 2024 - During the three months ended March 31, 2024, no director or officer of the Company adopted or terminated a Rule 10b5-1 trading arrangement[198](index=198&type=chunk) [Exhibits](index=41&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including corporate documents and CEO/CFO certifications - Exhibits filed include CEO and CFO certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act, as well as Inline XBRL documents[200](index=200&type=chunk)

Delivered Consolidated Revenue Growth of 13% Year-Over-Year on Strong Gaming Machine Sales and Record SciPlay and iGaming Revenue Double-Digit Revenue Growth Across all Businesses Driving Strong Cash Flow Generation LAS VEGAS — May 8, 2024 — Light & Wonder, Inc. (NASDAQ and ASX: LNW) ("Light & Wonder," "L&W," "we" or the "Company") today reported results for the first quarter ended March 31, 2024. Light & Wonder, Inc. Reports First Quarter 2024 Results SUMMARY RESULTS | | | | Three Months Ended March 31, | ...

Light & Wonder, Inc. (NASDAQ:LNW) Q4 2023 Earnings Conference Call February 27, 2024 4:30 PM ET Company Participants Nick Zangari - SVP, Investor Relations Matthew Wilson - EVP & Group Chief Executive, Gaming Oliver Chow - CFO Conference Call Participants Barry Jonas - Truist Securities Chad Beynon - Macquarie Securities David Katz - Jefferies Rohan Sundram - MST Marquee Carlo Santarelli - Deutsche Bank Jeffrey Stantial - Stifel Financial Joseph Stauff - Susquehanna Financial Group Rohan Gallagher - Jarden ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-11693 LIGHT & WONDER, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) Nevada 8 ...

Revenue Growth - Consolidated revenue for Q4 2023 was $770 million, a 13% increase from $682 million in Q4 2022, marking the 11th consecutive quarter of revenue growth[17] - Full year consolidated revenue reached a record $2.9 billion, up 16% from $2.5 billion in 2022, driven by double-digit growth across all business segments[22] - Total revenue for the year ended December 31, 2023, was $2.902 billion, up from $2.512 billion in 2022, representing a 15.5% increase[38] - Total revenue for the three months ended December 31, 2023, was $496 million, an increase of 13.2% compared to $438 million in the same period of 2022[55] Segment Performance - Gaming revenue increased to $496 million in Q4 2023, a 13% rise year-over-year, supported by a 31% growth in global gaming machine sales[4] - SciPlay revenue rose to $204 million, a 12% increase, achieving a quarterly revenue record for the sixth consecutive quarter[4] - iGaming revenue grew 13% to $70 million, reflecting ongoing growth in both U.S. and international markets[4] - The gaming segment AEBITDA for Q4 2023 was $245 million, up from $215 million in Q4 2022, reflecting a growth of 13.9%[47] Profitability - Net income for Q4 2023 was $67 million, compared to $21 million in Q4 2022, primarily due to higher revenue and operating income[17] - Full year net income was $180 million, a significant improvement from a net loss of $176 million in 2022[22] - Operating income for Q4 2023 was $155 million, compared to $99 million in Q4 2022, reflecting a 56.6% increase[38] - Net income attributable to Light & Wonder for Q4 2023 was $66 million, up from $30 million in Q4 2022[38] Cash Flow and Financial Health - Free cash flow for 2023 was $291 million, compared to a negative free cash flow of $(674) million in 2022[22] - Free cash flow for the three months ended December 31, 2023, was $70 million, compared to a negative $140 million in the same period of 2022[64] - Cash and cash equivalents at the end of Q4 2023 were $425 million, down from $914 million at the end of 2022, a decrease of 53.5%[41] - The company made net cash used in financing activities of $537 million in Q4 2023, compared to $250 million in Q4 2022, indicating increased financial outflows[43] Debt and Leverage - The net debt leverage ratio decreased to 3.1x as of December 31, 2023, down from 3.3x at the end of 2022, remaining within the targeted range of 2.5x to 3.5x[11] - Net debt as of December 31, 2023, was $3,492 million, an increase from $3,025 million in 2022, with a net debt leverage ratio of 3.1[62] - The net debt leverage ratio is calculated as net debt divided by Consolidated AEBITDA, providing a measure of leverage[85] Capital Expenditures - Capital expenditures in Q4 2023 were $60 million[25] - The company reported capital expenditures of $60 million for Q4 2023, slightly up from $58 million in Q4 2022[43] Asset Management - As of December 31, 2023, total assets decreased to $5,552 million from $6,009 million in 2022, reflecting a decline of approximately 7.5%[41] - Total current liabilities increased to $696 million in Q4 2023 from $622 million in Q4 2022, an increase of 11.9%[41] User Engagement and Metrics - The average daily revenue per unit in North America increased to $47.91[25] - SciPlay achieved a record ARPDAU of $1.00, growing 15% year-over-year, with payer conversion reaching 10.7%[25] - The average monthly active users (MAU) for the SciPlay segment was 5.5 million, a decrease from 5.7 million in the same period of 2022[55] Non-GAAP Measures - Management introduced Adjusted NPATA as a non-GAAP financial measure to assess performance and valuation, widely used in the ASX gaming sector[71] - Adjusted NPATA reconciles to net income from continuing operations, excluding amortization and restructuring costs, to better reflect ongoing performance[88] - Consolidated AEBITDA is a non-GAAP measure that eliminates effects of restructuring and other items, aiding in evaluating ongoing performance[74][79] - Consolidated AEBITDA margin is calculated as a percentage of consolidated revenue, serving as a supplemental disclosure for performance evaluation[81]

Third Quarter 2023 Earnings Presentation © 2023 LIGHT & WONDER Forward-Looking Statements Due to rounding, certain numbers presented herein may not precisely recalculate. © 2023 LIGHT & WONDER © 2023 LIGHT & WONDER | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------------------------------------------|---------------|-------------|-------------------------------------------------|---------------|---------------|--------------------------------------------------|-------------|------- ...

Financial Performance - Total revenue for Q3 2023 was $731 million, a 12.8% increase from $648 million in Q3 2022[22] - Operating income for Q3 2023 was $147 million, compared to $89 million in Q3 2022, reflecting a 65.2% increase[22] - Net income from continuing operations for Q3 2023 was $80 million, up from $20 million in Q3 2022, representing a 300% increase[22] - Total comprehensive income for Q3 2023 was $14 million, a decrease from $266 million in Q3 2022[25] - Net income for the nine months ended September 30, 2023, was $112 million, a significant decrease from $3,658 million in the same period of 2022[30] - Total revenue for the nine months ended September 30, 2023, was $2,131 million, compared to $1,830 million in 2022, indicating a growth of approximately 16.5%[56] - AEBITDA for the nine months ended September 30, 2023, was $815 million, compared to $648 million in the same period of 2022, representing a growth of approximately 25.8%[56] Expenses and Liabilities - Research and development expenses for Q3 2023 were $55 million, slightly down from $56 million in Q3 2022[22] - The company incurred interest expenses of $78 million in Q3 2023, compared to $68 million in Q3 2022[22] - Total operating expenses for Q3 2023 were $584 million, an increase from $530 million in Q3 2022[22] - Total liabilities decreased to $4,741 million as of September 30, 2023, from $4,848 million at the end of 2022, a reduction of approximately 2%[28] - The company reported a net cash used in financing activities of $251 million for the nine months ended September 30, 2023, compared to $5,213 million in the same period of 2022[30] - Total restructuring and other costs for the nine months ended September 30, 2023, amounted to $66 million, down from $106 million in the same period of 2022[60] Assets and Equity - Total assets decreased to $5,887 million as of September 30, 2023, down from $6,009 million at the end of 2022, representing a decline of approximately 2%[28] - Retained earnings increased to $613 million as of September 30, 2023, up from $517 million at the end of 2022, reflecting a growth of approximately 18.5%[28] - Stockholders' equity totaled $1,146 million as of September 30, 2023, reflecting changes in common stock and retained earnings[92] Revenue Segmentation - Gaming segment revenue for the three months ended September 30, 2023, was $465 million, up from $419 million in 2022, reflecting a year-over-year increase of about 11%[51] - SciPlay segment revenue for the three months ended September 30, 2023, reached $196 million, compared to $171 million in 2022, marking a growth of approximately 14.6%[51] - iGaming segment revenue for the three months ended September 30, 2023, was $70 million, an increase from $58 million in 2022, indicating a growth of about 20.7%[51] - Total rental income revenue for the three months ended September 30, 2023, was $127 million, up from $116 million in 2022, reflecting a year-over-year increase of about 9.5%[45] Shareholder Activities - The company repurchased 2.1 million shares of common stock at an aggregate cost of $146 million during the nine months ended September 30, 2023, under its $750 million share repurchase program[97] - SciPlay repurchased 1.4 million shares of Class A common stock at an aggregate cost of $23 million during the nine months ended September 30, 2023, as part of its share repurchase programs[98] Legal Matters - LNWI faces a potential penalty of up to $5 million due to unmet lottery sales levels, along with a $4 million surety bond provided to Ecosalud[106] - The Tribunal ordered LNWI to pay approximately 90 billion Colombian pesos (approximately $30 million) plus default interest, which could accrue at a 12% statutory interest rate since 1994[109] - The company believes that the claims in the lawsuits are without merit and intends to vigorously defend against them[112][115][116] - The outcomes of these legal proceedings are uncertain, and the company cannot assure that they will not result in material liability[110] Cash Flow and Financing - Cash provided by operating activities from continuing operations was $423 million for the nine months ended September 30, 2023, compared to a cash used of $346 million in the prior year[30] - Issued $550 million in 7.500% senior unsecured notes due 2031, with net proceeds of $544 million used to redeem all $550 million of the 2025 Unsecured Notes[76] - The company held interest rate swap contracts with a total notional amount of $700 million as of September 30, 2023, to hedge interest expense[83] Receivables and Inventories - Receivables increased from $469 million at the beginning of the period to $488 million at the end of September 30, 2023[47] - Total receivables, net, rose to $488 million as of September 30, 2023, compared to $469 million as of December 31, 2022, reflecting a 4.0% increase[61] - Total inventories increased to $183 million as of September 30, 2023, from $161 million as of December 31, 2022, marking a 13.7% rise[66]