LAS VEGAS, March 1, 2021 /PRNewswire/ -- SciPlay
Corporation (NASDAQ: SCPL) ("SciPlay" or the "Company") today
reported results for the fourth quarter and year ended December 31, 2020.
Josh Wilson, Chief
Executive Officer of SciPlay, said, "Our core business has
never been healthier as we achieved record results in 2020. Our
intense focus on data and live ops is driving tangible success and
enhanced monetization of our evergreen franchises. Looking ahead,
we couldn't be more excited about our expansion into the casual
genre with the launch of Solitaire Pets Adventure this year. This
is a major step in our evolution and I'm confident we have the
right talent and expertise to leverage our success in the social
casino space to the casual genre."
Mike Cody, Chief
Financial Officer of SciPlay, added "2020 was an operational
and financial success. We grew our full year revenue by 25% and
delivered increases in net income and AEBITDA of more than 50%. In
addition, we are well positioned to deliver future growth and
long-term shareholder value with the acquisition of Come2Play. Our
strong financial performance and balance sheet coupled with our
high cash generating business provides us with the ability to
continue to invest in our evergreen franchises and strategically
expand into new genres to diversify our product and revenue
base."
SUMMARY RESULTS
($ in
millions)
|
Three months ended
December 31,
|
|
Year Ended
December 31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Revenue
|
$
|
147.1
|
|
|
$
|
112.9
|
|
|
$
|
582.2
|
|
|
$
|
465.8
|
|
Net income
|
31.0
|
|
|
28.6
|
|
|
146.0
|
|
|
93.5
|
|
Net income
margin
|
21.1
|
%
|
|
25.3
|
%
|
|
25.1
|
%
|
|
20.1
|
%
|
Net cash provided by
operating activities
|
61.5
|
|
|
32.7
|
|
|
193.4
|
|
|
93.0
|
|
Capital
expenditures
|
2.1
|
|
|
2.3
|
|
|
7.1
|
|
|
8.8
|
|
Non-GAAP Financial
Measures (1)
|
|
|
|
|
|
|
|
Adjusted EBITDA
("AEBITDA")
|
$
|
45.0
|
|
|
$
|
32.1
|
|
|
$
|
188.7
|
|
|
$
|
122.3
|
|
AEBITDA
margin
|
30.6
|
%
|
|
28.4
|
%
|
|
32.4
|
%
|
|
26.3
|
%
|
|
|
|
|
|
|
|
|
Balance Sheet
Measures
|
As of
December 31,
2020
|
|
As of
December 31,
2019
|
|
|
|
|
Cash and cash
equivalents
|
$
|
268.9
|
|
|
$
|
110.6
|
|
|
|
|
|
Available
liquidity(2)
|
418.9
|
|
|
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.
|
(2) Available
liquidity is calculated as cash and cash equivalents plus the
undrawn capacity on our revolver.
|
Key Performance Indicators
(in millions,
except ARPDAU, AMRPPU, and percentages)
|
|
|
Three months
ended
December 31,
|
|
Increase /
(Decrease)
|
|
Year Ended
December 31,
|
|
Increase /
(Decrease)
|
|
|
2020
|
|
2019
|
|
|
|
2020
|
|
2019
|
|
|
|
Mobile
Penetration
|
87%
|
|
84%
|
|
3.0pp
|
|
87%
|
|
83%
|
|
4.0pp
|
|
Average Monthly
Active Users
|
6.9
|
|
7.6
|
|
(0.7)
|
|
7.4
|
|
8.0
|
|
(0.6)
|
|
Average Daily Active
Users
|
2.5
|
|
2.6
|
|
(0.1)
|
|
2.7
|
|
2.7
|
|
—
|
|
ARPDAU
|
$0.63
|
|
$0.50
|
|
$0.13
|
|
$0.60
|
|
$0.48
|
|
$0.12
|
|
Average Monthly
Paying Users
|
0.5
|
|
0.5
|
|
—
|
|
0.5
|
|
0.5
|
|
—
|
|
AMRPPU
|
$91.40
|
|
$88.06
|
|
$3.34
|
|
$92.75
|
|
$82.19
|
|
$10.56
|
|
Payer Conversion
Rate
|
7.8%
|
|
6.0%
|
|
1.8pp
|
|
7.1%
|
|
6.0%
|
|
1.1pp
|
|
Fourth Quarter 2020 Financial Highlights
- Fourth quarter revenue was $147.1
million, and an increase of 30.3% over the prior year
period. Mobile revenue grew 31.0% to $128.6
million.
- Net income was $31.0
million compared to $28.6
million in the prior year period, primarily driven by
revenue growth. Net income margin was 21.1% for the quarter, a
decrease of 420 bps from the prior year period, primarily
reflecting the impact of higher stock-based compensation.
- AEBITDA, a non-GAAP financial measure defined below, was
$45.0 million compared to
$32.1 million, an increase of 40.2%
from the prior year period, driven by revenue performance and lower
sales and marketing expense as a percentage of revenue. AEBITDA
margin, a non-GAAP financial measure defined below, was 30.6%, an
increase of 220 bps from the prior year period.
- Net cash provided by operating activities was
$61.5 million, a $28.8 million increase over the prior year
reflecting continued strong results and timing of payments from
platform providers.
- Cash and cash equivalents increased $58.6 million to $268.9
million from the third quarter 2020. Total available
liquidity, which includes our undrawn revolver, was $418.9 million at year-end 2020.
Fourth Quarter Key Performance Highlights
- Payer Conversion Rate reached an all-time high of
7.8% validating our strategy of continuing to focus on live
operations to enhance game play and engagement, driving increased
monetization.
- Average Monthly Revenue Per Paying User (AMRPPU)
increased $3.34 to $91.40 over the comparable quarter.
- Average Revenue Per Daily Active User (ARPDAU) grew
26.0% from the prior year period to $0.63.
Full Year 2020 Financial Highlights
- Revenue grew 25.0% to $582.2
million, compared to prior year revenue of $465.8 million. This was due to continued growth
in our mobile platform business and increased player engagement as
a result of the stay at home measures globally, coupled with the
ongoing popularity of our game portfolio.
- Net income increased $52.5
million to $146.0 million as
compared to $93.5 million in prior
year. Net income margin of 25.1%, up from 20.1% in the prior
year.
- AEBITDA, a non-GAAP financial measure defined below, was
$188.7 million as compared to
$122.3 million, an increase of 54.3%,
due to revenue growth, lower IP license costs, and more efficient
marketing spend. AEBITDA margin, a non-GAAP financial measure
defined below, was 32.4%, an increase of 610 bps.
- Net cash provided by operating activities was
$193.4 million reflecting strong
results and timing of payments from platform providers.
- Cash and cash equivalents increased by over $150.0 million to $268.9
million as of year-end 2020.
Full Year 2020 Key Performance Highlights
- Payer Conversion Rate grew 110 basis points to 7.1%
validating our strategy of continuing to focus on live operations
to enhance game play and engagement, driving increased
monetization.
- AMRPPU increased $10.56 to
$92.75 over the comparable year.
- ARPDAU grew 25.0% from the prior year period to
$0.60.
- Mobile Penetration increased 400 basis points from
the prior year to 87%.
Earnings Conference Call
As previously announced,
SciPlay executive leadership will host a conference call on Monday,
March 1, 2021, at 5:30 p.m. EST
to review the Company's fourth quarter and full year results. To
access the call live via a listen-only webcast and presentation,
please visit http://www.sciplay.com/investors/investor-information/
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 on www.sciplay.com.
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, and recently added a solitaire social game
targeted toward casual game players. 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. © 2021 SciPlay Corporation.
All Rights Reserved.
SCIPLAY
CORPORATION
|
CONSOLIDATED
STATEMENTS OF INCOME
|
(Unaudited,
in millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Revenue
|
$
|
147.1
|
|
|
$
|
112.9
|
|
|
$
|
582.2
|
|
|
$
|
465.8
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Cost of
revenue(1)
|
46.8
|
|
|
35.4
|
|
|
185.3
|
|
|
158.5
|
|
Sales and
marketing(1)
|
33.7
|
|
|
31.3
|
|
|
130.7
|
|
|
129.7
|
|
General and
administrative(1)
|
19.5
|
|
|
9.4
|
|
|
66.2
|
|
|
40.6
|
|
Research and
development(1)
|
9.0
|
|
|
5.5
|
|
|
33.3
|
|
|
23.6
|
|
Depreciation
and amortization
|
2.8
|
|
|
1.8
|
|
|
9.7
|
|
|
7.0
|
|
Contingent
acquisition consideration
|
—
|
|
|
—
|
|
|
—
|
|
|
1.7
|
|
Restructuring
and other
|
0.3
|
|
|
0.3
|
|
|
2.0
|
|
|
1.0
|
|
Total operating
expenses
|
112.1
|
|
|
83.7
|
|
|
427.2
|
|
|
362.1
|
|
Operating
income
|
35.0
|
|
|
29.2
|
|
|
155.0
|
|
|
103.7
|
|
Other (expense)
income:
|
|
|
|
|
|
|
|
Other (expense)
income, net
|
(1.5)
|
|
|
0.9
|
|
|
(0.6)
|
|
|
(1.5)
|
|
Total other (expense)
income, net
|
(1.5)
|
|
|
0.9
|
|
|
(0.6)
|
|
|
(1.5)
|
|
Net income
before income taxes
|
33.5
|
|
|
30.1
|
|
|
154.4
|
|
|
102.2
|
|
Income tax
expense
|
2.5
|
|
|
1.5
|
|
|
8.4
|
|
|
8.7
|
|
Net
income
|
31.0
|
|
|
28.6
|
|
|
146.0
|
|
|
93.5
|
|
Less: Net income
attributable to the noncontrolling interest
|
26.6
|
|
|
24.2
|
|
|
125.1
|
|
|
61.1
|
|
Net income
attributable to SciPlay
|
$
|
4.4
|
|
|
$
|
4.4
|
|
|
$
|
20.9
|
|
|
$
|
32.4
|
|
Basic and diluted net
income attributable to SciPlay per share(2):
|
|
|
|
|
|
|
|
Basic
|
$
|
0.19
|
|
|
$
|
0.19
|
|
|
$
|
0.92
|
|
|
$
|
0.53
|
|
Diluted
|
$
|
0.18
|
|
|
$
|
0.19
|
|
|
$
|
0.86
|
|
|
$
|
0.53
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares of Class A common stock used in per share
calculation:
|
|
|
|
|
|
|
|
Basic
shares
|
22.9
|
|
|
22.7
|
|
|
22.8
|
|
|
22.7
|
|
Diluted
shares
|
24.8
|
|
|
22.7
|
|
|
24.4
|
|
|
22.7
|
|
|
|
|
|
|
|
|
|
(1) Excludes
depreciation and amortization.
|
(2) For the year
ended December 31, 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 December 31, 2019, which is the
period following SciPlay Corporation's IPO.
|
SCIPLAY
CORPORATION
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited, in
millions, except par value)
|
|
|
As of December
31,
|
|
2020
|
|
2019
|
ASSETS
|
|
|
|
Cash and cash
equivalents
|
$
|
268.9
|
|
|
$
|
110.6
|
|
Accounts receivable,
net (allowance for doubtful accounts of $—)
|
36.6
|
|
|
32.1
|
|
Prepaid expenses and
other current assets
|
5.9
|
|
|
4.3
|
|
Total current
assets
|
311.4
|
|
|
147.0
|
|
Property and
equipment, net
|
4.4
|
|
|
4.6
|
|
Operating lease
right-of-use assets
|
8.5
|
|
|
6.0
|
|
Goodwill
|
129.8
|
|
|
120.7
|
|
Intangible assets and
software, net
|
30.3
|
|
|
17.0
|
|
Deferred income
taxes
|
82.5
|
|
|
87.1
|
|
Other
assets
|
1.9
|
|
|
2.2
|
|
Total
assets
|
$
|
568.8
|
|
|
$
|
384.6
|
|
|
|
|
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
|
|
Accounts
payable
|
$
|
23.2
|
|
|
$
|
12.8
|
|
Accrued
liabilities
|
22.9
|
|
|
13.7
|
|
Due to
affiliate
|
5.5
|
|
|
2.7
|
|
Total current
liabilities
|
51.6
|
|
|
29.2
|
|
Operating lease
liabilities
|
7.5
|
|
|
5.2
|
|
Liabilities under
TRA
|
68.5
|
|
|
72.7
|
|
Other long–term
liabilities
|
5.7
|
|
|
—
|
|
Total stockholders'
equity
|
435.5
|
|
|
277.5
|
|
Total liabilities and
stockholders' equity
|
$
|
568.8
|
|
|
$
|
384.6
|
|
(1) Includes
$355.5 million and $223.4 million in Noncontrolling interest as of
December 31, 2020 and December 31, 2019,
respectively.
|
SCIPLAY
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited, in
millions)
|
|
|
Three Months
Ended
December 31,
|
|
Years Ended
December 31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net cash provided by
operating activities
|
61.5
|
|
|
$
|
32.7
|
|
|
$
|
193.4
|
|
|
$
|
93.0
|
|
Net cash (used in)
investing activities
|
(2.1)
|
|
|
(2.3)
|
|
|
(19.7)
|
|
|
(8.8)
|
|
Net cash (used in)
provided by financing activities
|
(1.4)
|
|
|
(1.2)
|
|
|
(16.0)
|
|
|
15.9
|
|
Effect of exchange
rate changes on cash, cash equivalents and restricted
cash
|
0.6
|
|
|
0.1
|
|
|
0.6
|
|
|
0.5
|
|
Increase in cash,
cash equivalents and restricted cash
|
58.6
|
|
|
29.3
|
|
|
158.3
|
|
|
100.6
|
|
Cash, cash
equivalents and restricted cash, beginning of period
|
210.3
|
|
|
81.3
|
|
|
110.6
|
|
|
10.0
|
|
Cash, cash
equivalents and restricted cash, end of period
|
$
|
268.9
|
|
|
$
|
110.6
|
|
|
$
|
268.9
|
|
|
$
|
110.6
|
|
|
|
|
|
|
|
|
|
Supplemental cash
flow information:
|
|
|
|
|
|
|
|
Cash paid for income
taxes
|
$
|
0.5
|
|
|
$
|
0.8
|
|
|
$
|
2.0
|
|
|
$
|
1.5
|
|
Cash paid for
contingent consideration included in operating
activities
|
—
|
|
|
3.0
|
|
|
4.0
|
|
|
25.2
|
|
Payment for Scientific
Games' intellectual property license included in Distributions to
Scientific Games and affiliates, net
|
—
|
|
|
—
|
|
|
—
|
|
|
255.0
|
|
SCIPLAY
CORPORATION
|
RECONCILIATION OF
NET INCOME ATTRIBUTABLE TO SCIPLAY TO AEBITDA
|
(Unaudited,
in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net income
attributable to SciPlay
|
$
|
4.4
|
|
|
$
|
4.4
|
|
|
$
|
20.9
|
|
|
$
|
32.4
|
|
Net income
attributable to noncontrolling interest
|
26.6
|
|
|
24.2
|
|
|
125.1
|
|
|
61.1
|
|
Net income
|
31.0
|
|
|
28.6
|
|
|
146.0
|
|
|
93.5
|
|
Restructuring and
other(1)
|
0.3
|
|
|
0.3
|
|
|
2.0
|
|
|
2.7
|
|
Depreciation and
amortization
|
2.8
|
|
|
1.8
|
|
|
9.7
|
|
|
7.0
|
|
Income tax
expense
|
2.5
|
|
|
1.5
|
|
|
8.4
|
|
|
8.7
|
|
Stock-based
compensation
|
6.9
|
|
|
0.8
|
|
|
22.0
|
|
|
8.9
|
|
Other expense
(income), net
|
1.5
|
|
|
(0.9)
|
|
|
0.6
|
|
|
1.5
|
|
AEBITDA
|
$
|
45.0
|
|
|
$
|
32.1
|
|
|
$
|
188.7
|
|
|
$
|
122.3
|
|
Revenue
|
$
|
147.1
|
|
|
$
|
112.9
|
|
|
$
|
582.2
|
|
|
$
|
465.8
|
|
Net income margin (Net
income/Revenue)
|
21.1
|
%
|
|
25.3
|
%
|
|
25.1
|
%
|
|
20.1
|
%
|
AEBITDA margin
(AEBITDA/Revenue)
|
30.6
|
%
|
|
28.4
|
%
|
|
32.4
|
%
|
|
26.3
|
%
|
Royalties for
Scientific Games IP(2)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10.2
|
|
|
|
|
|
|
|
|
|
(1) Refer to AEBITDA
definition for a description of items included in restructuring and
other.
|
(2) Under the terms
of the revised IP License Agreement, as more fully described in
Note 10 of our annual report on Form 10-K, we acquired an exclusive
(subject to certain limited exceptions), perpetual,
non-royalty-bearing license for intellectual property created or
acquired by SG Gaming or its affiliates, which resulted in no
future royalties or fees for our use of intellectual property owned
by SG Gaming or its affiliates in our currently available
games.
|
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. 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 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;
- expectations of growth in total consumer spending on social
gaming, including social casino gaming;
- our reliance on third-party platforms;
- 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;
- our dependence on the optional virtual coins, chips and bingo
cards (collectively referred to as "coins, chips and cards") to
supplement the availability of periodically offered free coins,
chips and cards;
- restrictions and covenants in debt agreements, including those
that could result in acceleration of the maturity of our
indebtedness;
- the discontinuation or replacement of LIBOR, which may
adversely affect interest rates;
- fluctuations in our results due to seasonality and other
factors;
- dependence on skilled employees with creative and technical
backgrounds;
- 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;
- 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;
- risks relating 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; compliance with applicable anti-money
laundering, anti-bribery and anti-corruption laws;
- 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;
- 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");
- failure to establish and maintain adequate internal control
over financial reporting;
- stock price volatility;
- 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;
- our ability to complete acquisitions and integrate businesses
successfully;
- our ability to pursue and execute new business
initiatives;
- natural events and health crises that disrupt our operations or
those of our providers or suppliers;
- changes in tax laws or tax rulings, or the examination of our
tax positions;
- our dependence on certain key providers;
- U.S. and international economic and industry conditions;
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 the
Company's current reports on Form 8-K and quarterly reports on Form
10-Q. Additional information will also be set forth in our annual
report on Form 10-K for the year ended December 31, 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
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.
You should also note that 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 in
"Risk Factors" in Part I, Item 1A of this 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.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/sciplay-reports-fourth-quarter-results-and-full-year-2020-results-301237800.html
SOURCE SciPlay