Scientific Games has reported results for the first quarter ended March 31.
First quarter revenue rose six per cent to $725.4m, up from $682m a year ago. The growth was led by a 24 per cent increase in global new unit shipments of gaming machines and a 33 per cent increase in interactive revenue. Foreign exchange had an $8.1m, or one per cent, unfavourable impact on revenue.
Operating income in the first quarter increased 75 per cent to $88m from $50.3m a year ago as a result of the revenue growth and lower cost structure. Net loss was $100.8m compared with $92.3m in the prior-year period, as the increase in operating income was offset by a $29.7m loss on extinguishment and modification of debt and a $35.9m increase in the income tax provision.
Attributable EBITDA increased to $286.6m from $258.8m a year ago, driven by the higher revenue and lower cost structure. Net cash from operating activities rose to $111.0m, inclusive of $12.6m of cash payments related to the business improvement initiatives previously announced and implemented in the 2016 fourth quarter, from $101.1m a year ago.
The company completed refinancing transactions during the first quarter of 2017 that lowered cash interest costs at current rates, reduced exposure to variable interest rates and extended a substantial portion of its debt maturities. At March 31 the company had fully repaid borrowings under its revolving credit facility and its cash and availability under its revolving credit facility was $657.7m.
