Scientific Games Corporation today announced results for the fourth quarter and year ended December 31, 2011.
The company, who in Q4 restructured with Playtech, revealed revenue was $239.1 million in the fourth quarter of 2011 compared to $212.1 million in the fourth quarter of 2010. This 13% increase in revenue reflects growth across all of the Company’s operating segments, led by Gaming.
Operating income was $19.2 million in the fourth quarter of 2011 compared to an operating loss of $11.0 million in the prior-year period. This increase primarily reflects higher revenue along with a decrease of $29.0 million in depreciation and amortisation expense due to the absence of non-cash charges recorded in the fourth quarter of 2010.
Chairman and Chief Executive Officer, A. Lorne Weil, said: “We are pursuing a number of growth initiatives, including lottery privatisation and other outsourcing models, and expansion of our international lottery and gaming businesses. Also, we believe the Department of Justice’s recent opinion on the legality of in-state lottery sales over the internet could provide substantial growth opportunities for the industry in the years to come.”
Here’s a summary Financial Results ($ in millions, except per share amounts):
| Three Months Ended | Twelve Months Ended | ||||
| December 31, | December 31, | ||||
| 2011 | 2010 | 2011 | 2010 | ||
| Revenue | $239.1 | $212.1 | $878.7 | $882.5 | |
| Revenue excl. Racing Business | 239.1 | 210.9 | 878.7 | 798.7 | |
| Operating income / (loss) | 19.2 | (11.0) | 83.8 | 58.7 | |
| Attributable EBITDA | 80.3 | 77.7 | 327.5 | 314.9 | |
| Net loss | (8.5) | (158.4) | (12.6) | (149.2) | |
| Net loss per share | ($0.09) | ($1.74) | ($0.14) | ($1.61) | |
| Total capital expenditures | 23.5 | 30.2 | 91.9 | 108.7 | |
| Free cash flow | (5.1) | (2.9) | 79.2 | 61.9 | |
Weil said the company is currently in discussions with U.S. customers to help them evaluate how best to exploit this potential new channel for distribution, while “continuing to drive growth in traditional brick and mortar channels,” she said.
Senior Vice President and Chief Financial Officer of SG, Jeffrey S. Lipkin, added: “We’re pleased that our business continued to perform well across all segments, and that our revenue has grown both sequentially and year-over-year in each quarter of 2011. We anticipate capitalising on investments in 2012 and beyond as we expect various business development initiatives to come to fruition.”
