Light & Wonder, Inc. · ASX:LNW
Light & Wonder — Scientific Games — Q1 2010 Earnings Presentation
12 slides from Light & Wonder's earnings presentation, May 7, 2010
Slide 1: First Quarter 2010
First Quarter 2010 May 7, 2010
Slide 2: Safe Harbor Statement
Safe Harbor Statement In this presentation and the related discussion, Scientific Games Corporation (“Scientific Games” or the “Company”) makes “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements describe future exp
Slide 3: Expansion of U.S. retail distribution (Printed Products)
Expansion of U.S. retail distribution Big box retailers and drug store chains increasingly interested in the category Likely motivators: recession, product resiliency and retailer economics Two pilot programs in Pennsylvania Expansion of Properties PlusTM Our initial foray into internet distribution
Slide 4: New product expansion opportunities (Lottery Systems)
New product expansion opportunities Cross-selling of Powerball® and Mega Millions building bigger jackpots quicker and based on early data seems to be incremental to the category The cross-selling of Powerball® and Mega Millions started in February in ten states Colorado and Maine anticipated to joi
Slide 5: Racing transaction with Sportech on target to close in Q2
Racing transaction with Sportech on target to close in Q2 Global Draw exhibited positive trends in gross win per day vs. prior-year period in the U.K. (+2% in Q1’10) Gross win per day growth accelerated in April (+6% for month) Global Draw continues to expand their terminal base Opportunities to fur
Slide 6: Q1'10 Revenue
Q1’10 Revenue Revenue ($M) Revenue declined ~6% vs. prior-year period driven by: Q1’09 Q1’10 6 Contract Terminations (Instant & Systems) Other Licensed Properties New Instant Ticket Contracts (AR/PR) Racing & Phone Cards FX Lottery Systems Hardware & Software Sales Austrian OTC & Revised Contract Te
Slide 7: Q1'10 Adjusted EBITDA
Q1’10 Adjusted EBITDA1 Adjusted EBITDA declined $5M vs. prior-year period, largely due to the impact of non-operating items totaling $3M Non-operating items in Q1’09 included a change in the other (income)/expense line item and a gain from the early repurchase of indebtedness under revised adjusted
Slide 8: Joint Ventures
China 16% retail sales growth vs. prior-year; Q1’09 was start-up period April YTD retail sales growth in excess of 20% driven by increase in average selling price Italy CLN earnings reflect lower retail sales due in part to the delay of new game introductions and continued expansion of gaming conces
Slide 9: Q1'10 Free Cash Flow
Q1’10 Free Cash Flow1 (1) Free cash flow is a non-GAAP financial measure that represents net cash provided by operating activities less total capital expenditures (which includes wagering systems expenditures and other intangible assets and software expenditures). A reconciliation of free cash flow
Slide 10: Printed Products Group
Printed Products Group Revenue ($M) Q1’10 Q1’09 Q1’09 Q1’10 10 Operating Income ($M) Phone Card Sales Improved Mix/Efficiencies Q1’09 Employee Termination Costs SG&A & D&A New Contracts (AR/PR) FX Phone Card Sales Instant ticket revenue benefited from new contracts and favorable FX, offset by declin
Slide 11: Lottery Systems Group
Lottery Systems Group Operating Income ($M) Lower volume of one-time hardware and software sales Anniversary of contract terminations in West Virginia and South Dakota in Q2 and Q3, respectively Weather impacted mid-Atlantic states in February Underlying results reflect higher China Sports Lottery i
Slide 12: Diversified Gaming Group
Diversified Gaming Group Revenue ($M) Global Draw revenue decline was due to lower revenue in Austrian OTC product and the revised terms, partially offset by favorable FX Gross win per day in the U.K. continues to improve versus prior-year Q1’10 Q1’09 Q1’09 Q1’10 12 Operating Income ($M) Racing Glob