LAS VEGAS, April 14, 2020 /PRNewswire/ -- Scientific Games
Corporation (NASDAQ: SGMS) ("Scientific Games" or the "Company")
today stated that it has a strong liquidity position and has
already cut more than $100 million in
quarterly costs. The company has drawn approximately $480 million under its Revolving Credit
Facilities to give it maximum flexibility during these difficult
times. The Company believes that the proceeds from these
borrowings, when combined with cash on hand (which was
approximately $200 million as of
March 31, 2020), allow it to take
advantage of opportunities to strengthen the business as the
industry begins to recover. SciPlay, in which the Company has
an 82% interest, also has a strong liquidity position with cash on
hand of approximately $130 million as
of March 31, 2020, no outstanding
debt and $150 million available under
its Revolving Credit Facility.
The Company anticipates that the operational and capital
cost-saving measures it has already implemented, together with
additional measures now being implemented, will reduce its
quarterly costs in Q2 by over $100
million. The workforce cost reductions implemented by
the Company, including hour and pay reductions, furloughs, and
reductions in force, are expected to result in more than
$50 million in cost savings in Q2,
while capital expenditures in Q2 are expected to be approximately
$50 million lower than previously
planned. For 2020 as a whole, the Company now anticipates
that capital expenditures will be in the range of $210-240 million, as compared to the $300-330 million estimate set forth in the
release accompanying our 2019 10-K. The Company plans
additional cost saving initiatives, including reductions in other
operating expenses, that will lead to further potential savings.
Scientific Games CEO Barry Cottle
said: "We continue to reduce our costs so that that we can position
our Company to be an even stronger competitor as the industry
begins to recover. We remain committed to providing our best
in class products and services to our customers across lottery,
iGaming, sports betting and land-based casinos while innovating for
the future. The diversity of our business, serving customers
across the industry and around the globe, gives us unique strength
in these challenging times."
© 2020 Scientific Games Corporation. All rights reserved.
About Scientific Games
Scientific Games Corporation
(NASDAQ: SGMS) is a world leader in entertainment offering dynamic
games, systems and services for casino, lottery, social gaming,
online gaming and sports betting. Scientific Games offers the
gaming industry's broadest and most integrated portfolio of game
content, advanced systems, cutting-edge platforms and professional
services. Committed to responsible gaming, Scientific Games
delivers what customers and players value most: trusted security,
engaging entertainment content, operating efficiencies and
innovative technology. For more information, please visit
scientificgames.com.
Media
Inquiries:
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Forward-Looking Statements
In this press release,
Scientific Games makes "forward-looking statements" within the
meaning of the U.S. Private Securities Litigation Reform Act of
1995. Forward-looking statements can be identified by words such as
"will," "may," and "should." These statements are based upon
management's current expectations, assumptions and estimates and
are not guarantees of timing, future results or performance.
Therefore, you should not rely on any of these forward-looking
statements as predictions of future events. Actual results may
differ materially from those contemplated in these statements due
to a variety of risks, uncertainties and other factors, including
those factors described in our filings with the Securities and
Exchange Commission (the "SEC"), including Scientific Games'
current reports on Form 8-K, quarterly reports on Form 10-Q and its
latest annual report on Form 10-K filed with the SEC on
February 18, 2020 (including under
the headings "Forward-Looking Statements" and "Risk Factors").
Forward-looking statements speak only as of the date they are made
and, except for Scientific Games' ongoing obligations under the
U.S. federal securities laws, Scientific Games undertakes no
obligation to publicly update any forward-looking statements
whether as a result of new information, future events or
otherwise.
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SOURCE Scientific Games Corporation