Scientific Games reports narrower quarterly loss
Scientific Games Corp., the Las Vegas gaming-equipment maker controlled by billionaire Ronald Perelman, on Wednesday said its fourth-quarter loss narrowed on lower goodwill and impairment charges stemming from acquisitions.
Scientific Games’ net loss during the last three months of 2016 narrowed to $110.8 million compared with $127.5 million in the year earlier period, the company said in a statement.
The Las Vegas-based company posted a noncash, goodwill impairment charge of $69.0 million and restructuring and other charges of $36.3 million during the quarter.
Scientific Games spent more than $6 billion to acquire WMS Industries Inc and Bally Technologies Inc. in 2013 and 2014 respectively. The subsequent slowdown in the gaming industry has forced to company to write down some of the value of those assets, resulting in paper losses.
Revenue for the quarter rose 2 percent to $752.2 million.
Earnings before interest, taxes depreciation and amortization was $293.5 million compared to $292.9 million in the prior-year period.
While the company trimmed the principal value of its debt by $169 million during the quarter, it still remained above $8 billion as of Dec. 31. Debt reduction will continue to be a goal in 2017, the company said in the earnings statement.
This is the first full quarter under new Chief Executive Officer Kevin Sheehan, who replaced gaming-industry veteran Gavin Isaacs in August. Sheehan previously worked as chief executive officer at Norwegian Cruise Line Holdings Ltd.
Scientific Games shares fell 5 cents, or 0.24 percent, to close at $20.90.
Contact Todd Prince at tprince@reviewjournal.com or 702-383-0386. Follow @toddprincetv on Twitter.
