Scientific Games Corporation (SGMS) saw its loss narrow to $110.80 million, or $1.26 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $127.50 million, or $1.48 a share. Revenue during the quarter went up marginally by 2.06 percent to $752.20 million from $737 million in the previous year period. Gross margin for the quarter expanded 406 basis points over the previous year period to 60.18 percent. Operating margin for the quarter stood at negative 1.64 percent as compared to a negative 7.38 percent for the previous year period.
Operating loss for the quarter was $12.30 million, compared with an operating loss of $54.40 million in the previous year period.
Scientific Games chief executive officer Kevin Sheehan said, "2016 was another year of growth, progress and industry-leading product innovation for Scientific Games. The 2016 fourth quarter was the fifth consecutive quarter of growth with year-over-year revenue growth besting last year's strong performance. Our Gaming division continues to lead with innovation and strong execution, including the launch of the Gamescape™ platform, which in the fourth quarter helped drive the first quarterly sequential increase in our wide-area progressive ("WAP") premium participation installed base in more than three years, as well as the initial very promising performance of our innovative TwinStar™ J43 for-sale gaming cabinet. Our Lottery division extended its steady momentum with several big contract wins and successful systems launches in the U.S. and around the world. Our SG Interactive® performance remains stellar, with the exciting play of our social game apps driving social B2C gaming revenue up 52 percent versus the year-ago quarter. A third-party report estimates that the rapid growth of SG Interactive in its B2C business has led to five consecutive quarters of outperforming the social casino market, including fourth quarter 2016 year-over-year growth that was five times the social gaming industry growth.
Operating cash flow improves marginallyScientific Games Corporation has generated cash of $419 million from operating activities during the year, up 1.16 percent or $4.80 million, when compared with the last year. The company has spent $231.70 million cash to meet investing activities during the year as against cash outgo of $263.80 million in the last year.
The company has spent $196 million cash to carry out financing activities during the year as against cash outgo of $183.20 million in the last year period.
Cash and cash equivalents stood at $115.10 million as on Dec. 31, 2016, down 10.57 percent or $13.60 million from $128.70 million on Dec. 31, 2015.
Working capital declines
Scientific Games Corporation has witnessed a decline in the working capital over the last year. It stood at $424.20 million as at Dec. 31, 2016, down 18.67 percent or $97.40 million from $521.60 million on Dec. 31, 2015. Current ratio was at 1.61 as on Dec. 31, 2016, down from 1.80 on Dec. 31, 2015.
Debt comes down marginally
Scientific Games Corporation has recorded a decline in total debt over the last one year. It stood at $8,074.20 million as on Dec. 31, 2016, down 1.62 percent or $132.80 million from $8,207 million on Dec. 31, 2015. Total debt was 113.92 percent of total assets as on Dec. 31, 2016, compared with 106.14 percent on Dec. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
