American gaming machine innovator Scientific Games Corporation has released an update revealing that it expects to report as much as a 2.4% increase year-on-year in fourth-quarter consolidated revenues while the figure for the full-year could swell by as much as 4.5%.
Las Vegas-based Scientific Games Corporation explained that its consolidated revenues for the three months to the end of December could reach as high as $755 million, which would compare with $737 million for the same period in 2015, while the full-year figure may top out at $2.88 billion.
Moreover, Scientific Games Corporation declared that its net loss for the fourth quarter is expected to be $105 million to $115 million, which would include a projected $69 million goodwill impairment charge, while attributable earnings before interest, tax, depreciation and amortization are predicted to be approximately $290 million to $295 million.
For the full twelve months, the firm announced that its net loss is anticipated at $348 million to $358 million with attributable earnings before interest, tax, depreciation and amortization of approximately $1.1 billion.
“Our preliminary results for the fourth quarter of 2016 reflect ongoing improvements in our gaming, lottery and interactive operations as well as the initial benefits from our recently implemented business improvement initiative that is expected to reduce our annualized cost structure by $75 million,” read a statement from Kevin Sheehan, President and Chief Executive Officer for Scientific Games Corporation. “With our customer and player-focused strategies, we believe the company is well positioned to build on this success in 2017. We plan to generate improved results in 2017 while remaining focused on de-leveraging. I am grateful to our team members around the globe who continue to empower our customers with the best gaming and lottery experiences in the world while remaining focused on our financial goals.”
In a separate filing, Scientific Games Corporation stated that its Scientific Games International Incorporated subsidiary is hoping to bring in just over $1.1 billion in cash via a private offering of secured notes featuring a due date in 2022.
“Scientific Games [International Incorporated] intends to use the net proceeds of the new notes offering to prepay a portion of its term loans under its credit agreement, redeem or repurchase all of its outstanding senior subordinated notes due in 2018 and pay accrued and unpaid interest thereon plus any related premiums, fees and costs, repay a portion of its revolving credit facility, pay related fees and expenses of the new notes offering and for general corporate purposes,” read a statement from Scientific Games Corporation. “The new notes will be guaranteed on a senior basis by Scientific Games Corporation and certain of its subsidiaries. The new notes will be secured by liens on the same collateral that secures indebtedness under Scientific Games Corporation’s credit agreement.”