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Light & Wonder
🇺🇸 NASDAQ:LNW
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OverviewEarningsDividends
•
Mar 31, 2020

Light & Wonder Q1 2020 Earnings Report

Scientific Games experienced a revenue decline due to COVID-19 disruptions, but took actions to improve cash flows and preserve liquidity.

Key Takeaways

Scientific Games reported a 13% decrease in revenue for Q1 2020, impacted by COVID-19 disruptions, particularly in the Gaming segment. The company took significant actions to improve cash flows and preserve liquidity. SciPlay and iGaming showed strength during the stay-at-home environment.

Improved quarterly cash flows by over $150 million.

Maintained liquidity of nearly $1 billion.

Amended credit agreement to provide relief on net first lien leverage ratio covenant.

Resiliency in Lottery and strength in SciPlay and iGaming highlighted business diversity.

Total Revenue
$725M
Previous year: $837M
-13.4%
EPS
-$0.7
Previous year: -$0.26
+169.2%
SciPlay ARPDAU
$0.49
Gaming machine sales price
$15.9K
Gross Profit
$431M
Previous year: $530M
-18.7%
Cash and Equivalents
$334M
Previous year: $1.21B
-72.5%
Free Cash Flow
$59M
Total Assets
$7.46B
Previous year: $8.84B
-15.6%

Light & Wonder

Light & Wonder

Light & Wonder Revenue by Segment

Forward Guidance

The COVID-19 impact accelerated in the latter half of March 2020 and the Company expects this trend to reach its peak in the second quarter. Second quarter projected consolidated net cash outflow is expected to be approximately $70 million - $90 million.

Positive Outlook

  • Swift and meaningful reductions to cost structure in response to the current environment.
  • Available liquidity provides the tools to withstand the impact from COVID-19.
  • Streamlined cost structure will allow for accelerated cash flow generation and deleveraging in the future.
  • Operational and capital cost-savings measures are expected to improve quarterly cash flows in the second quarter by over $150 million.
  • Anticipates that capital expenditures will be in the range of $210 million - $240 million, due to capital liquidity-saving measures implemented as a result of the COVID-19 disruptions.

Challenges Ahead

  • Expected operating performance for the second quarter of 2020 will be impacted by COVID-19.
  • Projected consolidated net cash outflow for the second quarter of 2020.
  • Trends in the Company's operations are expected to be affected by COVID-19 disruptions.
  • Natural events and health crises that disrupt operations or those of customers, suppliers or regulators.
  • Incurrence of restructuring costs.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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