Scientific Games Corporation (SGMS) saw its loss widen to $100.80 million, or $1.14 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $92.30 million, or $1.07 a share.
Revenue during the quarter grew 6.36 percent to $725.40 million from $682 million in the previous year period. Gross margin for the quarter contracted 1084 basis points over the previous year period to 61.40 percent. Total expenses were 87.87 percent of quarterly revenues, down from 92.62 percent for the same period last year. This has led to an improvement of 476 basis points in operating margin to 12.13 percent.
Operating income for the quarter was $88 million, compared with $50.30 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $286.60 million compared with $258.80 million in the prior year period. At the same time, adjusted EBITDA margin improved 156 basis points in the quarter to 39.51 percent from 37.95 percent in the last year period.
"Our continued steady improvement in revenue and margin are a direct result of our focus on creating innovative products that drive demand and our commitment to operational excellence," said Kevin Sheehan, chief executive officer of Scientific Games. "This is a great start to the year, with all three of our business segments contributing to growth. We have a tremendous global team firmly focused on unlocking the power of our brands, strengthening our commitment to innovation, and executing a disciplined fiscal approach to enhance long-term shareholder value. We are building for our future."
Operating cash flow turns negativeScientific Games Corporation has spent $364.30 million cash to meet operating activities during the quarter as against cash inflow of $101.10 million in the last year period. The company has spent $79.50 million cash to meet investing activities during the quarter as against cash outgo of $48.20 million in the last year period.
The company has spent $15.10 million cash to carry out financing activities during the quarter as against cash outgo of $37.10 million in the last year period.
Cash and cash equivalents stood at $131.90 million as on Mar. 31, 2017, down 9.47 percent or $13.80 million from $145.70 million on Mar. 31, 2016.
Working capital declines
Scientific Games Corporation has witnessed a decline in the working capital over the last year. It stood at $434.70 million as at Mar. 31, 2017, down 15.80 percent or $81.60 million from $516.30 million on Mar. 31, 2016. Current ratio was at 1.63 as on Mar. 31, 2017, down from 1.77 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 63 days for the quarter from 129 days for the last year period. Days sales outstanding went down to 78 days for the quarter compared with 86 days for the same period last year.
Days inventory outstanding has decreased to 41 days for the quarter compared with 122 days for the previous year period. At the same time, days payable outstanding went down to 55 days for the quarter from 79 for the same period last year.
Debt remains almost stable Scientific Games Corporation has recorded a decline in total debt over the last one year. It stood at $8,107.70 million as on Mar. 31, 2017, down 0.97 percent or $79.40 million from $8,187.10 million on Mar. 31, 2016. Total debt was 114.63 percent of total assets as on Mar. 31, 2017, compared with 106.45 percent on Mar. 31, 2016. Interest coverage ratio improved to 0.55 for the quarter from 0.30 for the same period last year. 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]
