LAS VEGAS, Nov. 4, 2020 /PRNewswire/ -- SciPlay
Corporation (NASDAQ: SCPL) ("SciPlay" or the "Company") today
reported results for the third quarter ended September 30,
2020.
Third Quarter 2020 Financial Highlights vs. Third Quarter
2019
- Third quarter revenue was $151.2
million. Mobile revenue of $131.8
million was up 35%, which was 750 bps above market growth
according to Eilers & Krejcik.
- Net income increased 40% to $35.1
million, with a net income margin of 23.2%, up from
$25.0 million and 21.5%.
- AEBITDA, a non-GAAP measure defined below, was
$49.3 million, an increase of 54%,
and AEBITDA margin of 32.6%, an increase of 510 bps.
- Net cash provided by operating activities was
$56.4 million, an increase of
$22.6 million reflecting strong
results.
- Cash and cash equivalents increased $99.7 million year to date to $210.3 million, which was driven by strong
revenue results and high conversion of AEBITDA to cash.
Key Performance Highlights vs. Third Quarter 2019
- Payer conversion rates reached a quarterly record of 7.3%,
continuing to validate our focus on live operations to drive
increased player interaction with our games.
- Average monthly revenue per payer increased 11% to $94.10.
- ARPDAU (average revenue per daily active user) increased 34% to
$0.63.
- Mobile penetration increased 300 basis points to 87%.
Josh Wilson, Chief Executive
Officer of SciPlay, said, "The third quarter represented
another strong quarter as we outperformed the market with year over
year revenue growth of 30%, driven by execution of our live ops
strategy to increase monetization of games and franchises that
players love to play. Our baseline remains above pre-COVID-19
levels even as the tailwind from "stay at home" begins to
normalize. I'm really excited for the remainder of this year, 2021
and beyond as we begin to make inroads into the casual space, which
will augment the growth in our social casino games. As we navigate
the current environment, we remain focused on taking advantage of
the many opportunities ahead of us that will help us to maximize
value for our shareholders."
Mike Cody, Chief Financial
Officer of SciPlay, added "Our evergreen franchises drove 30%
revenue growth this quarter and the operating leverage in our
business drove even stronger increases in Net Income and AEBITDA.
Payer conversion was a quarterly record of 7.3% as we continue to
effectively executive our live ops strategy to drive maximum player
engagement. We also ended the quarter in a strong cash position
with $360 million in available
liquidity providing ample resources to continue to grow the
Company. We are on track integrating Come2Play into the company and
are making progress toward a launch of Solitaire Pets Adventure in
2021 that will expand our addressable market and diversify our
revenue base as the games scale."
SUMMARY
RESULTS
|
($ in
millions)
|
Three months ended
September 30,
|
|
|
2020
|
|
2019
|
|
Revenue
|
$
|
151.2
|
|
|
$
|
116.4
|
|
|
Net income
|
35.1
|
|
|
25.0
|
|
|
Net income
margin
|
23.2
|
%
|
|
21.5
|
%
|
|
Net cash provided by
operating activities
|
56.4
|
|
|
33.8
|
|
|
Capital
expenditures
|
1.8
|
|
|
1.8
|
|
|
|
|
|
|
|
Non-GAAP Financial
Measures (1)
|
|
|
|
|
AEBITDA
|
$
|
49.3
|
|
|
$
|
32.0
|
|
|
AEBITDA
margin
|
32.6
|
%
|
|
27.5
|
%
|
|
|
|
|
|
|
Balance Sheet
Measures
|
As of September
30, 2020
|
|
As of December 31,
2019
|
|
Cash and cash
equivalents
|
$
|
210.3
|
|
|
$
|
110.6
|
|
|
Available
liquidity
|
360.3
|
|
|
260.6
|
|
|
|
|
|
|
|
(1) The financial
measures "AEBITDA" and "AEBITDA margin" are non-GAAP financial
measures defined below under "Non-GAAP Financial Measures" and
reconciled to the most directly comparable GAAP measures in the
accompanying supplemental tables at the end of this
release.
|
Key Performance
Indicators
|
(in millions,
except ARPDAU, Average monthly revenue per
payer, and percentages)
|
Three months ended
September 30,
|
|
|
|
|
2020
|
|
2019
|
|
Increase /
(Decrease)
|
|
Mobile
Penetration
|
87%
|
|
84%
|
|
3pp
|
|
Average
MAU
|
7.3
|
|
7.8
|
|
(0.5)
|
|
Average
DAU
|
2.6
|
|
2.7
|
|
(0.1)
|
|
ARPDAU
|
$0.63
|
|
$0.47
|
|
$0.16
|
|
Average
MPUs
|
0.5
|
|
0.5
|
|
—
|
|
Average monthly
revenue per payer
|
$94.10
|
|
$84.90
|
|
$9.20
|
|
Payer conversion
rate
|
7.3%
|
|
5.8%
|
|
1.5pp
|
|
pp = percentage
points.
|
|
Earnings Conference Call
SciPlay executive leadership
will host a conference call on Wednesday,
November 4, 2020, at 5:30 p.m.
ET to review the Company's third quarter results. To access
the call live via a listen-only webcast and presentation, please
visit http://www.sciplay.com/investors/ and click on the webcast
link under the Investor Information section. To access the call by
telephone, please dial: +1 (412) 317-0790 (U.S. and International)
and ask to join the SciPlay Corporation call. A replay of the
webcast will be archived in the Investors section at
www.sciplay.com/investors/.
About SciPlay
We are a leading developer and publisher
of digital games on mobile and web platforms. We currently offer
seven core games, including four social casino games and three
primary casual games. Our social casino games typically include
slots-style game play and occasionally include table games-style
game play, while our casual games blend slots-style or bingo game
play with adventure game features. All of our games are offered and
played on multiple platforms, which include Apple, Google,
Facebook, Amazon, and Microsoft. In addition to our internally
created game content, our content library includes recognizable,
real-world slot and table games content from Scientific Games
Corporation. This content allows players who like playing
land-based slot machines to enjoy some of those same titles in our
free-to-play games.
You can access our filings with the SEC through the SEC website
at www.sec.gov or through our website, and we strongly encourage
you to do so. We routinely post information that may be important
to investors on our website at www.sciplay.com/investors/, and we
use our website as a means of disclosing material information to
the public in a broad, non-exclusionary manner for purposes of the
SEC's Regulation Fair Disclosure (Reg FD). The information
contained on, or that may be accessed through, our website is not
incorporated by reference into, and is not a part of, this
document, and shall not be deemed "filed" under the Securities
Exchange Act of 1934, as amended.
All ® notices signify marks registered in the United States. © 2020 SciPlay Corporation.
All Rights Reserved.
SCIPLAY
CORPORATION
|
CONSOLIDATED
STATEMENTS OF INCOME
|
(Unaudited,
in millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Revenue
|
$
|
151.2
|
|
|
$
|
116.4
|
|
|
$
|
435.1
|
|
|
$
|
352.9
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Cost of
revenue(1)
|
48.0
|
|
|
36.9
|
|
|
138.5
|
|
|
123.1
|
|
Sales and
marketing(1)
|
33.7
|
|
|
32.9
|
|
|
97.0
|
|
|
98.4
|
|
General and
administrative(1)
|
21.3
|
|
|
9.8
|
|
|
46.7
|
|
|
31.2
|
|
Research and
development(1)
|
8.8
|
|
|
6.3
|
|
|
24.3
|
|
|
18.1
|
|
Depreciation
and amortization
|
2.7
|
|
|
1.7
|
|
|
6.9
|
|
|
5.2
|
|
Restructuring
and other
|
0.2
|
|
|
0.2
|
|
|
1.7
|
|
|
2.4
|
|
Total operating
expenses
|
114.7
|
|
|
87.8
|
|
|
315.1
|
|
|
278.4
|
|
Operating income
|
36.5
|
|
|
28.6
|
|
|
120.0
|
|
|
74.5
|
|
Other
(expense) income, net
|
(0.2)
|
|
|
(0.4)
|
|
|
0.9
|
|
|
(2.4)
|
|
Net
income before income taxes
|
36.3
|
|
|
28.2
|
|
|
120.9
|
|
|
72.1
|
|
Income tax
expense
|
1.2
|
|
|
3.2
|
|
|
5.9
|
|
|
7.2
|
|
Net
income
|
35.1
|
|
|
25.0
|
|
|
115.0
|
|
|
64.9
|
|
Less: Net income
attributable to the noncontrolling interest
|
29.6
|
|
|
23.0
|
|
|
98.5
|
|
|
36.9
|
|
Net
income attributable to SciPlay
|
$
|
5.5
|
|
|
$
|
2.0
|
|
|
$
|
16.5
|
|
|
$
|
28.0
|
|
Basic and diluted net
income attributable to SciPlay per share(2):
|
|
|
|
|
|
|
|
Basic
|
$
|
0.24
|
|
|
$
|
0.09
|
|
|
$
|
0.72
|
|
|
$
|
0.33
|
|
Diluted
|
$
|
0.23
|
|
|
$
|
0.09
|
|
|
$
|
0.69
|
|
|
$
|
0.33
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares of Class A common stock used in per share
calculation:
|
|
|
|
|
|
|
|
Basic
shares
|
22.8
|
|
|
22.7
|
|
|
22.8
|
|
|
22.7
|
|
Diluted
shares
|
24.1
|
|
|
22.7
|
|
|
24.0
|
|
|
22.7
|
|
|
|
|
|
|
|
|
|
(1) Excludes
depreciation and amortization.
(2) For the three and nine months ended September
30, 2019 basic and diluted earnings per share and weighted average
shares of Class A common stock is applicable only for the period
from May 7, 2019 to September 30, 2019, which is the period
following SciPlay Corporation's IPO.
|
SCIPLAY
CORPORATION
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited, in
millions, except par value)
|
|
|
September 30,
2020
|
|
December 31,
2019
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
210.3
|
|
|
$
|
110.6
|
|
Accounts receivable,
net
|
49.6
|
|
|
32.1
|
|
Prepaid expenses and
other current assets
|
6.4
|
|
|
4.3
|
|
Total current
assets
|
266.3
|
|
|
147.0
|
|
Property and
equipment, net
|
4.7
|
|
|
4.6
|
|
Operating lease
right-of-use assets
|
8.7
|
|
|
6.0
|
|
Goodwill
|
127.0
|
|
|
120.7
|
|
Intangible assets and
software, net
|
28.8
|
|
|
17.0
|
|
Deferred income taxes
and other assets
|
84.0
|
|
|
89.3
|
|
Total
assets
|
$
|
519.5
|
|
|
$
|
384.6
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
22.8
|
|
|
$
|
12.8
|
|
Accrued
liabilities
|
17.1
|
|
|
13.7
|
|
Due to
affiliate
|
2.6
|
|
|
2.7
|
|
Total current
liabilities
|
42.5
|
|
|
29.2
|
|
Operating lease
liabilities
|
7.8
|
|
|
5.2
|
|
Liabilities under
TRA
|
67.3
|
|
|
72.7
|
|
Other
liabilities
|
5.7
|
|
|
—
|
|
Total stockholders'
equity(1)
|
395.3
|
|
|
277.5
|
|
Total liabilities and
stockholders' equity
|
$
|
519.5
|
|
|
$
|
384.6
|
|
(1) Includes
$321.8 million and $223.4 million in noncontrolling interest as of
September 30, 2020 and December 31, 2019,
respectively.
|
SCIPLAY
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited, in
millions)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net cash provided by
operating activities
|
$
|
56.4
|
|
|
$
|
33.8
|
|
|
$
|
131.9
|
|
|
$
|
60.3
|
|
Net cash used in
investing activities
|
(1.8)
|
|
|
(1.8)
|
|
|
(17.6)
|
|
|
(6.5)
|
|
Net cash (used in)
provided by financing activities
|
(0.5)
|
|
|
(1.2)
|
|
|
(14.6)
|
|
|
17.1
|
|
Effect of exchange
rate changes on cash, cash equivalents and restricted
cash
|
0.1
|
|
|
0.1
|
|
|
—
|
|
|
0.4
|
|
Increase in cash,
cash equivalents and restricted cash
|
54.2
|
|
|
30.9
|
|
|
99.7
|
|
|
71.3
|
|
Cash, cash
equivalents and restricted cash, beginning of period
|
156.1
|
|
|
50.4
|
|
|
110.6
|
|
|
10.0
|
|
Cash, cash
equivalents and restricted cash, end of period
|
$
|
210.3
|
|
|
$
|
81.3
|
|
|
$
|
210.3
|
|
|
$
|
81.3
|
|
|
|
|
|
|
|
|
|
Supplemental cash
flow information:
|
|
|
|
|
|
|
|
Cash paid for income
taxes
|
$
|
—
|
|
|
$
|
0.3
|
|
|
$
|
1.5
|
|
|
$
|
0.7
|
|
Cash paid for
contingent consideration included in operating
activities
|
—
|
|
|
3.0
|
|
|
4.0
|
|
|
22.2
|
|
Payment for Scientific
Games' intellectual property license included in Distributions to
Parent and affiliates, net
|
—
|
|
|
—
|
|
|
—
|
|
|
255.0
|
|
SCIPLAY
CORPORATION
|
RECONCILIATION OF
NET INCOME ATTRIBUTABLE TO SCIPLAY TO AEBITDA
|
(Unaudited,
in millions)
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net income
attributable to SciPlay
|
$
|
5.5
|
|
|
$
|
2.0
|
|
|
$
|
16.5
|
|
|
$
|
28.0
|
|
Net income
attributable to noncontrolling interest
|
29.6
|
|
|
23.0
|
|
|
98.5
|
|
|
36.9
|
|
Net income
|
35.1
|
|
|
25.0
|
|
|
115.0
|
|
|
64.9
|
|
Restructuring and
other
|
0.2
|
|
|
0.2
|
|
|
1.7
|
|
|
2.4
|
|
Depreciation and
amortization
|
2.7
|
|
|
1.7
|
|
|
6.9
|
|
|
5.2
|
|
Income tax
expense
|
1.2
|
|
|
3.2
|
|
|
5.9
|
|
|
7.2
|
|
Stock-based
compensation
|
9.9
|
|
|
1.5
|
|
|
15.1
|
|
|
8.1
|
|
Other expense
(income), net
|
0.2
|
|
|
0.4
|
|
|
(0.9)
|
|
|
2.4
|
|
AEBITDA
|
$
|
49.3
|
|
|
$
|
32.0
|
|
|
$
|
143.7
|
|
|
$
|
90.2
|
|
Revenue
|
$
|
151.2
|
|
|
$
|
116.4
|
|
|
$
|
435.1
|
|
|
$
|
352.9
|
|
Net income margin (Net
income/Revenue)
|
23.2
|
%
|
|
21.5
|
%
|
|
26.4
|
%
|
|
18.4
|
%
|
AEBITDA margin
(AEBITDA/Revenue)
|
32.6
|
%
|
|
27.5
|
%
|
|
33.0
|
%
|
|
25.6
|
%
|
Royalties for
Scientific Games Corporation IP
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10.2
|
|
RECONCILIATION OF
NET INCOME MARGIN
|
TO AEBITDA
MARGIN
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net income margin
(Net income/Revenue)
|
|
23.2
|
%
|
|
21.5
|
%
|
|
26.4
|
%
|
|
18.4
|
%
|
Restructuring and
other
|
|
0.1
|
%
|
|
0.2
|
%
|
|
0.4
|
%
|
|
0.7
|
%
|
Depreciation and
amortization
|
|
1.8
|
%
|
|
1.5
|
%
|
|
1.6
|
%
|
|
1.5
|
%
|
Income tax
expense
|
|
0.8
|
%
|
|
2.7
|
%
|
|
1.4
|
%
|
|
2.0
|
%
|
Stock-based
compensation and other expense
|
|
6.7
|
%
|
|
1.6
|
%
|
|
3.2
|
%
|
|
3.0
|
%
|
AEBITDA
margin
|
|
32.6
|
%
|
|
27.5
|
%
|
|
33.0
|
%
|
|
25.6
|
%
|
Forward-Looking Statements
Throughout this press release, we make "forward-looking
statements" within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995. Forward-looking statements describe
future expectations, plans, results or strategies and can often be
identified by the use of terminology such as "may," "will,"
"estimate," "intend," "plan," "continue," "believe," "expect,"
"anticipate," "target," "should," "could," "potential,"
"opportunity," "goal," or similar terminology. The forward-looking
statements contained in this press release 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 and uncertainties and other factors,
including, among other things:
- the impact of the COVID-19 pandemic and any resulting social,
political, economic and financial complications;
- our ability to attract and retain players;
- our reliance on third-party platforms;
- our dependence on the optional purchases of coins, chips and
cards to supplement the availability of periodically offered free
coins, chips and cards;
- dependence on skilled employees with creative and technical
backgrounds;
- expectations of growth in total consumer spending on social
gaming, including social casino gaming;
- our dependence on certain key providers;
- natural events and health crises that disrupt our operations or
those of our providers or suppliers;
- U.S. and international economic and industry conditions;
- stock price volatility;
- our ability to continue to launch and enhance games that
attract and retain a significant number of paying players;
- our reliance on a small percentage of our players for nearly
all of our revenue;
- our ability to adapt to, and offer games that keep pace with,
changing technology and evolving industry standards;
- competition;
- the impact of legal and regulatory restrictions on our
business, including significant opposition in some jurisdictions to
interactive social gaming, including social casino gaming, and how
such opposition could lead these jurisdictions to adopt legislation
or impose a regulatory framework to govern interactive social
gaming or social casino gaming specifically, and how this could
result in a prohibition on interactive social gaming or social
casino gaming altogether, restrict our ability to advertise our
games, or substantially increase our costs to comply with these
regulations;
- laws and government regulations, both foreign and domestic,
including those relating to our parent, Scientific Games
Corporation, and to data privacy and security, including with
respect to the collection, storage, use, transmission, sharing and
protection of personal information and other consumer data, and
those laws and regulations that affect companies conducting
business on the internet, including ours;
- the continuing evolution of the scope of data privacy and
security regulations, and our belief that the adoption of
increasingly restrictive regulations in this area is likely within
the U.S. and other jurisdictions;
- our ability to use the intellectual property rights of our
parent, Scientific Games Corporation, and other third parties,
including the third-party intellectual property rights licensed to
Scientific Games Corporation, under our intellectual property
license agreement ("IP License Agreement") with our parent;
- protection of our proprietary information and intellectual
property, inability to license third-party intellectual property
and the intellectual property rights of others;
- security and integrity of our games and systems;
- security breaches, cyber-attacks or other privacy or data
security incidents, challenges or disruptions;
- reliance on or failures in information technology and other
systems;
- our ability to complete acquisitions and integrate businesses
successfully;
- our ability to pursue and execute new business
initiatives;
- fluctuations in our results due to seasonality and other
factors;
- risks related to foreign operations, including the complexity
of foreign laws, regulations and markets; the uncertainty of
enforcement of remedies in foreign jurisdictions; the effect of
currency exchange rate fluctuations; the impact of foreign labor
laws and disputes; the ability to attract and retain key personnel
in foreign jurisdictions; the economic, tax and regulatory policies
of local governments; and compliance with applicable anti-money
laundering, anti-bribery and anti-corruption laws;
- changes in tax laws or tax rulings, or the examination of our
tax positions;
- the discontinuation or replacement of LIBOR, which may
adversely affect interest rates;
- litigation and other liabilities relating to our business,
including litigation and liabilities relating to consumer
protection, gambling-related matters, employee matters, alleged
service and system malfunctions, alleged intellectual property
infringement and claims relating to our contracts, licenses and
strategic investments;
- restrictions and covenants in debt agreements, including those
that could result in acceleration of the maturity of our
indebtedness;
- failure to maintain adequate internal control over financial
reporting;
- influence of certain stockholders, including decisions that may
conflict with the interests of other stockholders;
- our ability to achieve some or all of the anticipated benefits
of being a standalone public company; and
- our dependence on distributions from SciPlay Parent Company,
LLC ("SciPlay Parent LLC") to pay our taxes and expenses, including
substantial payments we will be required to make under the Tax
Receivable Agreement (the "TRA").
Additional information regarding risks and uncertainties and
other factors that could cause actual results to differ materially
from those contemplated in forward-looking statements is included
from time to time in our filings with the SEC, including under
"Risk Factors" in Part II, Item 1A of our Quarterly Report on Form
10-Q for the quarter ended September 30, 2020 and Part I, Item
1A "Risk Factors" in our 2019 Annual Report on Form 10-K filed with
the SEC on February 18, 2020.
Forward-looking statements speak only as of the date they are made
and, except for our ongoing obligations under the U.S. federal
securities laws, we undertake no and expressly disclaim any
obligation to publicly update any forward-looking statements
whether as a result of new information, future events or
otherwise.
This press release may contain references to industry market
data and certain industry forecasts. Industry market data and
industry forecasts are obtained from publicly available information
and industry publications. Industry publications generally state
that the information contained therein has been obtained from
sources believed to be reliable, but that the accuracy and
completeness of that information is not guaranteed. Although we
believe industry information to be accurate, it is not
independently verified by us and we do not make any representation
as to the accuracy of that information. In general, we believe
there is less publicly available information concerning
international social gaming industries than the same industries in
the U.S. Some data is also based on our good faith estimates, which
are derived from our review of internal surveys or data, as well as
the independent sources referenced above. Assumptions and estimates
of our and our industry's future performance are necessarily
subject to a high degree of uncertainty and risk due to a variety
of factors, including those described under "Risk Factors" in Part
II, Item 1A of our Quarterly Report on Form 10-Q for the quarter
ended September 30, 2020 and Part I, Item 1A "Risk Factors" of
our 2019 Annual Report on Form 10-K. These and other factors could
cause future performance to differ materially from our assumptions
and estimates.
Non-GAAP Financial Measures
Adjusted EBITDA, or AEBITDA, as used herein, is a non-GAAP
financial measure that is presented as supplemental disclosure and
is reconciled to net income attributable to SciPlay as the most
directly comparable GAAP measure as set forth in the above table.
We define AEBITDA to include net income attributable to SciPlay
before: (1) net income attributable to noncontrolling interest;
(2) interest expense; (3) income tax expense;
(4) depreciation and amortization; (5) restructuring and
other, which includes charges or expenses attributable to:
(a) employee severance; (b) management changes;
(c) restructuring and integration; (d) M&A and other,
which includes: (i) M&A transaction costs;
(ii) purchase accounting adjustments; (iii) unusual items
(including certain legal settlements) and (iv) other non-cash
items; (e) contingent acquisition consideration and
(f) cost-savings initiatives; (6) stock-based
compensation; (7) loss (gain) on debt financing transactions;
and (8) other expense (income) including foreign currency
(gains) and losses. We also use AEBITDA margin, a non-GAAP measure,
which we calculate as AEBITDA as a percentage of revenue.
Our management uses AEBITDA and AEBITDA margin to, among other
things: (i) monitor and evaluate the performance of our
business operations; (ii) facilitate our management's internal
comparisons of our historical operating performance and
(iii) analyze and evaluate financial and strategic planning
decisions regarding future operating investments and operating
budgets. In addition, our management uses AEBITDA and AEBITDA
margin to facilitate management's external comparisons of our
results to the historical operating performance of other companies
that may have different capital structures and debt levels.
Our management believes that AEBITDA and AEBITDA margin are
useful as they provide investors with information regarding our
financial condition and operating performance that is an integral
part of our management's reporting and planning processes. In
particular, our management believes that AEBITDA is helpful because
this non-GAAP financial measure eliminates the effects of
restructuring, transaction, integration or other items that
management believes have less bearing on our ongoing underlying
operating performance. Management believes AEBITDA margin is useful
as it provides investors with information regarding the underlying
operating performance and margin generated by our business
operations.
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SOURCE SciPlay