LAS VEGAS, Nov. 7, 2019 /PRNewswire/ -- Scientific Games Corporation (NASDAQ: SGMS) ("Scientific Games," "SGC" or the "Company") today reported results for the third quarter ended September 30, 2019.
Third Quarter 2019 Financial Highlights:
- Third quarter revenue rose 4 percent to $855 million, up from $821 million in the year ago period. The growth was achieved across every business segment.
- Net income was $18 million compared to a net loss of $352 million in the prior year period. Net income was driven by growth in revenue and a $19 million gain on remeasurement of Euro denominated debt versus a $4 million loss in the prior year period. The prior year period included $339 million in restructuring and other charges primarily related to the verdict in the Shuffle Tech legal matter.
- Consolidated Adjusted EBITDA ("Consolidated AEBITDA"), a non-GAAP financial measure, increased 6 percent to $344 million from $326 million in the prior year period, primarily driven by higher revenues and business improvements.
- Net cash provided by operating activities was $141 million compared to $223 million in the year ago period, primarily due to a $48 million change in the timing of interest payments and an increase in receivables driven by higher game sales and the timing of collections throughout the quarter.
- Free cash flow, a non-GAAP financial measure, was $53 million. Net debt, a non-GAAP financial measure, decreased $50 million sequentially to $8.6 billion at quarter end ($9 billion in face value of debt outstanding less $363 million of cash and cash equivalents). Net debt leverage ratio, a non-GAAP financial measure, decreased to 6.4x. The company is targeting net debt leverage of approximately 5.5x by the end of 2020.
Barry Cottle, President and Chief Executive Officer of Scientific Games, said, "Each of our business segments is growing on both the top and bottom line, enabling us to continue on our path to 5.5x net debt leverage by the end of 2020. We showcased our great games and products at G2E which demonstrated our industry leading position as a one-stop solution across platforms and key content. This positioning will allow us to enhance partner operations, grow in existing markets and win in emerging markets."
Michael Quartieri, Chief Financial Officer of Scientific Games, added, "Our products grew the top-line, and operating leverage was driven by business improvements. We believe there are a number of avenues for further growth driven by share gains and new market opportunities. We remain firmly committed to maximize cash flows and delever our balance sheet."
SUMMARY CONSOLIDATED RESULTS