Scientific Games Corporation (SGMS) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $98.90 million, or $ 1.13 a share in the quarter, against a net loss of $1,078.20 million, or $12.52 a share in the last year period.
Revenue during the quarter grew 7.21 percent to $720 million from $671.60 million in the previous year period. Gross margin for the quarter contracted 87 basis points over the previous year period to 61.90 percent.
Operating income for the quarter was $33.50 million, compared with an operating loss of $988.20 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $271.60 million compared with $264.20 million in the prior year period. At the same time, adjusted EBITDA margin contracted 162 basis points in the quarter to 37.72 percent from 39.34 percent in the last year period.
Kevin Sheehan, chief executive officer and president, said, "Scientific Games is focused on building momentum. The dedicated efforts of our employees combined with the benefits that our products and technology solutions deliver to our gaming, lottery and interactive customers and players led to year-over-year increases in revenue, AEBITDA and free cash flow. The breadth and depth of our new products showcased at the Global Gaming Expo ("G2E") and National Association of State and Provincial Lotteries ("NASPL") tradeshows demonstrate our commitment to innovation and solutions that help our customers more fully engage with their players to create growth. With the most comprehensive portfolio of solutions available to the gaming and lottery industries, we continue to raise the bar with new products that help our customers grow revenue and generate profitable returns on their investment."
Operating cash flow improves significantly
Scientific Games Corporation has generated cash of $342.80 million from operating activities during the nine month period, up 34.17 percent or $87.30 million, when compared with the last year period.
The company has spent $187.80 million cash to meet investing activities during the nine month period as against cash outgo of $177.20 million in the last year period.
The company has spent $161.70 million cash to carry out financing activities during the nine month period as against cash outgo of $140.90 million in the last year period.
Cash and cash equivalents stood at $120.90 million as on Sep. 30, 2016, up 18.41 percent or $18.80 million from $102.10 million on Sep. 30, 2015.
Working capital drops significantly
Scientific Games Corporation has witnessed a decline in the working capital over the last year. It stood at $417 million as at Sep. 30, 2016, down 36.35 percent or $238.10 million from $655.10 million on Sep. 30, 2015. Current ratio was at 1.58 as on Sep. 30, 2016, down from 2.07 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 73 days for the quarter from 132 days for the last year period. Days sales outstanding went down to 80 days for the quarter compared with 88 days for the same period last year.
Days inventory outstanding has decreased to 45 days for the quarter compared with 91 days for the previous year period. At the same time, days payable outstanding went up to 52 days for the quarter from 47 for the same period last year.
Debt comes down marginally
Scientific Games Corporation has recorded a decline in total debt over the last one year. It stood at $8,083.40 million as on Sep. 30, 2016, down 3.89 percent or $326.80 million from $8,410.20 million on Sep. 30, 2015. Total debt was 109.58 percent of total assets as on Sep. 30, 2016, compared with 97.62 percent on Sep. 30, 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: editor@irisindia.net
