LAS VEGAS, Nov. 4, 2020 /PRNewswire/ -- Scientific Games Corporation (NASDAQ: SGMS) ("Scientific Games," "SGC" or the "Company") today reported results for the third quarter ended September 30, 2020. The Company's third quarter results were adversely impacted by the COVID-19 disruptions primarily in the Gaming business unit during the quarter, affecting comparability to the prior year period.
Third Quarter 2020 Financial Highlights:
- Third quarter revenue was $698 million compared to $855 million in the prior year period and an increase from $539 million in the second quarter. The Company's Gaming revenue was negatively impacted by the COVID-19 disruptions that has resulted in continued reduced operations of casino operators globally. Our Lottery, SciPlay and Digital businesses grew in the quarter, highlighting the strategic investments we have made in the Digital space and the breadth of our portfolio.
- Net loss was $111 million compared to net income of $18 million in the prior year period, due to lower revenue and the effects of COVID-19. Results were also impacted by a $24 million loss on remeasurement of debt compared to a $19 million gain in the prior year period.
- Consolidated AEBITDA, a non-GAAP financial measure defined below, was $235 million largely driven by COVID-19 disruptions, which affect prior year comparability. Our Lottery, SciPlay and Digital business all increased AEBITDA by 10% or more with our Digital business up nearly 50% and SciPlay up over 50% from the prior year.
- Net cash provided by operating activities was $140 million consistent with the year ago period.
- Free cash flow, a non-GAAP financial measure defined below (which further adjusts our previously presented measure of free cash flow), increased $11 million from the prior year to $62 million driven primarily by working capital improvements.
- Available liquidity, including SciPlay, at quarter-end was $1.2 billion. On October 8, 2020, subsequent to quarter-end, the Company amended its credit agreement that extended the Covenant Relief Period under its revolving credit facility through the first quarter of 2022 and made a $100 million voluntary payment.
Barry Cottle, President and Chief Executive Officer of Scientific Games, said, "As a result of our team's focus on our strategy, our diverse portfolio and our commitment to cost management, we delivered strong cash flow in the third quarter. I really am excited around all the great games, products and solutions we have to help our partners navigate the current environment and provide innovative solutions for the future. I'd also like to welcome the proven industry leaders to our board who will augment our focus on de-levering our balance sheet and will help the company prudently and thoughtfully shape our corporate strategy."
Michael Eklund, Executive Vice President, Chief Financial Officer of Scientific Games, added, "The team did a great job driving cash flow improvements this quarter, and we will continue to diligently evaluate additional opportunities to increase cash flow and de-lever. Looking ahead, our team will remain highly focused on driving operational efficiencies, further bolstering our liquidity and strengthening our balance sheet. My overarching focus is to improve the balance sheet through operational and business process improvements."