Leading to expert’s analysis: Scientific Games Corporation (NASDAQ: SGMS)

On 23 March 2020, Scientific Games Corporation (NASDAQ: SGMS) changed 11.31% to recent value of $7.38. The stock transacted 2851589 shares during most recent day however it has an average volume of 1394.94K shares. It spotted trading -76.67% off 52-week high price. On the other end, the stock has been noted 96.28% away from the low price over the last 52-weeks.

Scientific Games Corporation (SGMS) recently stated results for the fourth quarter and year ended December 31, 2019.

Fourth quarter 2019 Financial Highlights:

Fourth quarter revenue was $863M contrast to $886M in the previous year period. This was largely driven by lower Gaming revenue primarily Because of fewer systems launches in Canada contrast to last year and lower machine unit sales.

Net loss was $37M contrast to net income of $207M in the previous year period. This quarter included a $40M loss on a debt financing transaction related to the notes offering and a $12M loss on remeasurement of Euro denominated debt. The previous year included a $183M reversal of a reserve related to resolving the Shuffle Tech legal matter and a $14M gain on remeasurement of Euro denominated debt.

Consolidated Adjusted EBITDA (“Consolidated AEBITDA”), a non-GAAP financial measure defined below, was $328M contrast to $343M in the previous year period driven by lower Lottery and Gaming AEBITDA, which was partially offset by Digital AEBITDA of $21M, representing a 75% increase.

Net cash provided by operating activities increased by $153M from the previous year period to $143M. The previous year included a $152M payment to resolve the Shuffle Tech legal matter.

Free cash flow, a non-GAAP financial measure, increased $286M to $56M versus the previous year period, which included a $104M payment for our instant ticket concession in Italy and resolution of the Shuffle Tech legal matter.

The company remains committed to deleveraging its balance sheet targeting to be at 6.0x or below by the end of 2020, 5.5x in 2021 and continuing to reduce beyond those levels into the future.

Full Year 2019 Financial Highlights:

Revenue increased $37M to $3.4B contrast to the previous year.

Net loss was $118M , an improvement of $234M . The previous year included a $152M charge related to resolving the Shuffle Tech legal matter.

Consolidated AEBITDA, a non-GAAP financial measure defined below, increased to $1,334M from $1,330M in the previous year, driven by growth in our Lottery, SciPlay and Digital sections largely offset by Gaming.

Net cash provided by operating activities increased $200M to $546M contrast to the previous year, which included resolution of the Shuffle Tech legal matter.

Free cash flow, a non-GAAP financial measure, increased by $483M from the year ago period to $243M . Net debt, a non-GAAP financial measure, was $8.6B ( $8.9B in face value of debt outstanding less $313M of cash and cash equivalents) at year end. Net debt leverage ratio, a non-GAAP financial measure, reduced to 6.4x on a $464M decrease in net debt.

In March and November 2019, we completed refinancing’s that lowered our cash interest costs and extended our debt maturities.

In May 2019, SciPlay completed an IPO for an 18.0% minority interest in our Social gaming business, after giving effect to the underwriters’ partial exercise of their over-allotment option on June 4, 2019. We received $312M in net proceeds from the offering (net of $30M used by SciPlay to pay the IPO fees and balance retained by SciPlay for general corporate purposes) which has enabled us to make substantial payments to reduce our debt.

On November 20, 2019, we entered into an amendment to refinance the revolving credit facility under our credit contract and provide for an aggregate of $650M of revolving credit commitments through 2024.

SGMS has a gross margin of 62.20% and an operating margin of 13.40% while its profit margin remained -3.80% for the last 12 months. Its earnings per share (EPS) expected to touch remained 63.90% for this year while earning per share for the next 5-years is expected to reach at # ref.  The company has 81.51M of outstanding shares and 55.43M shares were floated in the market. According to the most recent quarter its current ratio was 2.1 that represents company’s ability to meet its current financial obligations. The price moved ahead of -43.61% from the mean of 20 days, -65.49% from mean of 50 days SMA and performed -66.84% from mean of 200 days price. Company’s performance for the week was 5.13%, -68.93% for month and YTD performance remained -72.44%.

Leave a Reply

Your email address will not be published. Required fields are marked *