Scientific Games Corporation (NASDAQ: SGMS) (“Scientific Games” or “the Company”) today announced selected preliminary expected financial results for the fourth quarter and full year ended December 31, 2016, in connection with a plan to refinance and extend the maturity dates of its term loan debt and revolving credit facility, and otherwise take advantage of favorable market conditions to lower its cost of debt and extend maturities.
Results of Operations
The Company currently expects consolidated revenue to be in a range of $748-to-$755 million for the three month period ended December 31, 2016, and full year 2016 revenue to be in a range of $2,878-to-$2,885 million compared to $737 million and $2,759 million for the fourth quarter and full year 2015, respectively. The Company further expects that its net loss for the fourth quarter will be in a range of $105-to-$115 million, including a projected $69 million goodwill impairment charge as described in the reconciliation below, with Attributable EBITDA (“AEBITDA”) of approximately $290-to-$295 million. The full year net loss including the goodwill impairment charge is expected to be in a range of $348-to-$358 million, with AEBITDA of approximately $1,100-to-$1,105 million. AEBITDA is a non-GAAP financial measure that is defined below. The Company currently anticipates releasing its fourth quarter 2016 results and full year 2016 audited results on March 2, 2017 after market close.
“Our preliminary results for the fourth quarter 2016 reflect ongoing improvements in our gaming, lottery and interactive operations, as well as the initial benefits from our recently implemented business improvement initiative that is expected to reduce our annualized cost structure by $75 million,” said Kevin Sheehan, CEO and President of Scientific Games. “With our customer and player-focused strategies, we believe the Company is well positioned to build on this success in 2017. We plan to generate improved results in 2017, while remaining focused on deleveraging. I am grateful to our team members around the globe who continue to empower our customers with the best gaming and lottery experiences in the world, while remaining focused on our financial goals.”
The preliminary unaudited results noted in this release are derived from preliminary internal financial reports and are subject to revision based on the Company’s procedures and controls associated with the completion of its year-end financial reporting, including all the customary reviews, audit and approvals. Accordingly, actual results may differ from these preliminary results and such differences may be material.
The Company has prepared these preliminary expected financial results in connection with its proposed refinancing transaction and is sharing the preliminary expected results disclosed in this press release with its prospective lenders.
About Scientific Games
Scientific Games Corporation (NASDAQ: SGMS) is a leading developer of technology-based products and services and associated content for worldwide gaming, lottery and interactive markets. The Company’s portfolio includes gaming machines, game content and systems; table games products and utilities; instant and draw-based lottery games; server-based lottery and gaming systems; sports betting technology; loyalty and rewards programs; and interactive content and services. For more information, please visit www.scientificgames.com.