Scientific Games To Report Net Loss In Q4 - Quick Facts

(RTTNews) - Scientific Games Corp. (SGMS) announced it expects net loss for the fourth quarter will be in a range of $105-to-$115 million, including a projected $69 million goodwill impairment charge with Attributable EBITDA of approximately $290-to-$295 million. The company currently expects consolidated revenue to be in a range of $748-to-$755 million for the three month period ended December 31, 2016.

"Our preliminary results for the fourth quarter 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," said Kevin Sheehan, CEO of Scientific Games.

The full year net loss including the goodwill impairment charge is expected to be in a range of $348-to-$358 million, with AEBITDA of approximately $1.100 to $1.105 billion. The company currently expects full year 2016 revenue to be in a range of $2.878 to $2.885 billion.

Scientific Games Corp. also announced its subsidiary, Scientific Games International, Inc., intends, to commence an add-on offering of $1.0 billion of 7.000% senior secured notes due 2022 in a private offering. The New Notes will be issued under the same indenture pursuant to which SGI previously issued $950 million of its 7.000% senior secured notes due 2022.

Scientific Games 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 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.

The company currently anticipates to release its fourth quarter 2016 results and full year 2016 audited results on March 2, 2017 after market close.