Business
Inspired Provides Business Update Regarding COVID-19
Retail Business Temporarily Rightsizing as Demand Grows for Online/Mobile Products NEW YORK, March 30, 2020 /PRNewswire/ -- Inspired Entertainment, Inc.
About this update from Inspired Entertainment, Inc.
[{"type":"text","content":"Retail Business Temporarily Rightsizing as Demand Grows for Online/Mobile Products\n\n\nNEW YORK, March 30, 2020 /PRNewswire/ -- Inspired Entertainment, Inc. (\"Inspired\" or the \"Company\") (NASDAQ: INSE) today provided an update on the effect of COVID-19 on its global operations. Inspired remains focused on maintaining the health and welfare of its teams and, in accordance with governmental restrictions, has temporarily closed its physical locations. The Company will continue to follow the guidelines of government and health officials in determining when to reopen. For this same reason, the majority of the Company's land-based customers have also been required to close, which significantly impairs Inspired's current revenue stream. Due to this business disruption caused by the nearly universal directives to close land-based facilities worldwide, the Company's management and Board of Directors have implemented a range of actions to maintain financial flexibility and preserve liquidity. \n\n \n \n \n \n \n \n\n \n\"The exceptional team and capabilities we have built, as witnessed in our fourth quarter 2019 results, strongly position us to navigate this unprecedented environment,\" said Lorne Weil, Executive Chairman of Inspired. \"Alongside our concern for the well-being of our employees, our priority is to steadfastly strengthen our financial flexibility, prioritize investments, and reduce our expenditures in this time of uncertainty.\" \nSince mid-March, the Company has drawn down approximately $24.9 million (based on prevailing fx rates) on its revolving credit facility to provide additional near-term liquidity and canceled or delayed material capital expenditures. Most recently, the Company implemented furloughs, reduced work hours and reductions in compensation, as well as additional measures across its entire workforce. The effect of these actions is expected to lower the Company's future cash payroll expense to less than $2.0 million per month (a reduction of approximately 70% per month from pre-COVID-19 Crisis levels). Additionally, the Board has determined to (i) indefinitely delay the payment of accrued executive bonuses for the year ended December 31, 2019 and (ii) waive cash payments of Board retainers that were due to be disbursed during the second quarter of 2019. Furthermore, the Company continues to undertake ef...