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Light & Wonder(LNW) - 2020 Q4 - Earnings Call Transcript
2021-03-02 03:08
Financial Data and Key Metrics Changes - The company achieved record results in Lottery, SciPlay, and Digital for the full year 2020, with free cash flow conversion of 23%, up nearly 600 basis points year-over-year [12][41][43] - Free cash flow for Q4 was $72 million, a $20 million improvement from the prior year [32][43] - The company ended the year with $8.4 billion in net debt, a $200 million improvement from 2019 [41] Business Line Data and Key Metrics Changes - Gaming revenue improved sequentially by 24% in Q4 compared to Q3, but was down 36% year-over-year [35] - Lottery revenue increased by 10% in Q4, with AEBITDA growing by 7% [37][19] - SciPlay reported a 25% increase in revenue for the full year and a 30% increase in Q4 [21][38] Market Data and Key Metrics Changes - The U.S. Lottery market saw a 70% growth in instant game retail sales for customers using the SGEP, compared to the industry growth of 10% [19] - iLottery in Pennsylvania experienced a 39% year-over-year growth in Q4 wagers, with full-year growth at 57% [20] - The number of game rounds played through the OGS platform increased by 38% over 34 billion in 2020 [23] Company Strategy and Development Direction - The company is conducting a strategic review to optimize its portfolio and capitalize on key growth areas [11] - A focus on building a high-performing culture and investing in R&D to target the largest profit pools is emphasized [10][11] - The company is excited about the cashless gaming market, having entered a cross-licensing agreement with IGT [15][61] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the gaming sector's recovery as vaccinations are distributed and restrictions ease [36] - The company is focused on maintaining strong cash flow and liquidity while managing costs effectively [32][34] - There is confidence in the growth potential of iGaming and iLottery as more states legalize these offerings [70][72] Other Important Information - The company paid down $100 million of debt during the quarter and an additional $100 million in February [12] - The gaming business is seeing early successes with new product launches, including Kascada and Coin Combo [14][51] - The company is targeting an additional $50 million in permanent cost savings for 2021 [34] Q&A Session Summary Question: What is the outlook for the gaming turnaround? - Management noted early signs of progress with new team efforts and product launches, indicating sequential growth in premium game operations [50][51] Question: Can you elaborate on working capital improvements? - The company achieved a $230 million improvement in working capital year-over-year, focusing on cash flow and liquidity [56][57] Question: What is the strategy behind the cashless gaming agreement with IGT? - The cross-licensing agreement allows the company to provide a comprehensive cashless gaming solution, leveraging its extensive patent portfolio [61] Question: How does the company view the iGaming and sports betting markets? - Management is bullish on iGaming, citing strong demand and a leading product offering, while also seeing growth opportunities in sports betting as more states legalize [69][70] Question: What are the plans for reducing leverage? - The company is focused on de-leveraging and maximizing shareholder value through strategic discussions with the board [75] Question: How does the company plan to compete in the casual gaming market? - The company aims to leverage its existing expertise and analytics capabilities to succeed in the casual gaming genre, which has significant growth potential [85]
Light & Wonder(LNW) - 2020 Q4 - Annual Report
2021-03-01 21:24
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K SCIENTIFIC GAMES CORPORATION (Exact name of registrant as specified in its charter) incorporation or organization) Nevada 81-0422894 (State or other jurisdiction of (I.R.S. Employer Identification No.) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended: December 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Fo ...
Light & Wonder(LNW) - 2020 Q3 - Earnings Call Presentation
2020-11-05 20:30
THIRD QUARTER 2020 EARNINGS PRESENTATION Continued Focus on Free Cash Flow*(1) Generation and Strong Liquidity . 2 Increased free cash flow*(1) to $62M, ~22% yearover-year growth driven by cost mitigation efforts, sequential growth in revenue & AEBITDA* and working capital improvements in light of a challenging operating environment Amended our credit agreement to extend the covenant relief period through and including Q1 2022 for enhanced flexibility Positioning business for success in all operating enviro ...
Light & Wonder(LNW) - 2020 Q3 - Earnings Call Transcript
2020-11-05 03:55
Scientific Games Corporation (SGMS) Q3 2020 Earnings Conference Call November 4, 2020 4:15 PM ET Company Participants Robert Shore – Senior Director, Investor Relations and Corporate Finance Barry Cottle – President and Chief Executive Officer Mike Eklund – Executive Vice President, Chief Financial Officer, Treasurer and Corporate Secretary Conference Call Participants Barry Jonas – Truist Securities Chad Beynon – Macquarie John Decree – Union Gaming Ryan Sigdahl – Craig-Hallum Capital Group David Katz – Je ...
Light & Wonder(LNW) - 2020 Q3 - Quarterly Report
2020-11-04 21:17
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 OR ☐ 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 SCIENTIFIC GAMES CORPORATION (Exact name of registrant as specified in its charter) incorporation or organization) Nevada 81-042 ...
Light & Wonder(LNW) - 2020 Q2 - Earnings Call Presentation
2020-07-24 14:39
SECOND QUARTER 2020 EARNINGS PRESENTATION Effectively Managing our Business • Took substantial proactive measures across our global business to manage expenses and capital expenditures enabling us to reduce our Q2 cash spend by over $150M • As a result of our actions Q2 consolidated net cash outflow* was $16M, and YTD free cash flow* was $64M • Available liquidity at quarter-end was $943M including the SciPlay revolver, and $790M in cash and cash equivalents • On May 8, 2020, we amended our credit agreement ...
Light & Wonder(LNW) - 2020 Q2 - Earnings Call Transcript
2020-07-24 01:41
Scientific Games Corporation (SGMS) Q2 2020 Results Earnings Conference Call July 23, 2020 4:15 PM ET Company Participants Trent Kruse - Senior Vice President, Investor Relations Barry Cottle - President and CEO Mike Eklund - Chief Financial Officer Conference Call Participants John DeCree - Union Gaming Barry Jonas - SunTrust Brad Boyer - Stifel Chad Beynon - Macquarie Ryan Sigdahl - Craig-Hallum Capital Group Operator Good afternoon, ladies and gentlemen. And welcome to the Scientific Games 2020 Second Qu ...
Light & Wonder(LNW) - 2020 Q2 - Quarterly Report
2020-07-23 20:23
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 OR ☐ 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 SCIENTIFIC GAMES CORPORATION (Exact name of registrant as specified in its charter) incorporation or organization) Nevada 81-0422894 ...
Light & Wonder(LNW) - 2020 Q1 - Earnings Call Presentation
2020-05-12 17:58
FIRST QUARTER 2020 EARNINGS PRESENTATION ©2020 Scientific Games Corporation. All Rights Reserved 1 Immediate Actions Amid COVID-19 • Ensured safety and security of our employees and created hardship relief fund Sustainable Competitive Advantage – Full Solution Provider for Customers/Players • Took substantial proactive measures across our global business to manage expenses and capital expenditures enabling us to reduce our Q2 spend by over $150M • Drew $480M under our revolving credit facility in April, wit ...
Light & Wonder(LNW) - 2020 Q1 - Earnings Call Transcript
2020-05-12 01:16
Scientific Games Corp (SGMS) Q1 2020 Earnings Conference Call May 11, 2020 4:15 PM ET Company Participants Trent Kruse - SVP, IR & Finance Barry Cottle - CEO, President & Director Michael Quartieri - EVP, CFO, Treasurer & Corporate Secretary Conference Call Participants Barry Jonas - SunTrust Robinson Humphrey John DeCree - Union Gaming Securities Chad Beynon - Macquarie Research Brad Boyer - Stifel, Nicolaus & Company Ryan Sigdahl - Craig-Hallum Operator Good afternoon. Welcome to Scientific Games First Qu ...