UNITED STATES | ||||||||||||||
SECURITIES AND EXCHANGE COMMISSION | ||||||||||||||
Washington, D.C. 20549 | ||||||||||||||
FORM | ||||||||||||||
CURRENT REPORT | ||||||||||||||
Pursuant to Section 13 or 15(d) of the | ||||||||||||||
Securities Exchange Act of 1934 | ||||||||||||||
Date of Report (Date of earliest event reported): | ||||||||||||||
(Exact name of registrant as specified in its charter) | ||||||||||||||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
(Address of registrant’s principal executive office) | ||||||||||||||
( | ||||||||||||||
(Registrant’s telephone number, including area code) | ||||||||||||||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: | ||||||||||||||
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||||||||||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||||||||||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||||||||||||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | ||||||||||||||
Securities registered pursuant to Section 12(b) of the Exchange Act: | ||||||||||||||
Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). | ||||||||||||||
Emerging growth company | ||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ||||||||||||||
Exhibit No. | Description | |||||||
99.1 | ||||||||
104 | Cover Page Interactive Data File – the cover page XBRL tags are embedded within the Inline XBRL document. |
SCIPLAY CORPORATION | |||||||||||
Dated: | November 9, 2021 | By: | /s/ Daniel O’Quinn | ||||||||
Name: | Daniel O’Quinn | ||||||||||
Title: | Interim Chief Financial Officer |
Three Months Ended | |||||||||||
($ in millions) | September 30, | ||||||||||
2021 | 2020 | ||||||||||
Revenue | $ | 146.6 | $ | 151.2 | |||||||
Net income | 37.0 | 35.1 | |||||||||
Net income margin | 25.2 | % | 23.2 | % | |||||||
Net cash provided by operating activities | 58.0 | 56.4 | |||||||||
Capital expenditures | 0.9 | 1.8 | |||||||||
Non-GAAP Financial Measures (1) | |||||||||||
Adjusted EBITDA (“AEBITDA”) | $ | 44.7 | $ | 49.3 | |||||||
AEBITDA margin | 30.5 | % | 32.6 | % | |||||||
As of September 30, | As of December 31, | ||||||||||
Balance Sheet Measures | 2021 | 2020 | |||||||||
Cash and cash equivalents | $ | 330.8 | $ | 268.9 | |||||||
Available liquidity(2) | 480.8 | 418.9 | |||||||||
(1) The financial measures “AEBITDA” and “AEBITDA margin” are non-GAAP financial measures defined below under “Non-GAAP Financial Measures” and are reconciled to the most directly comparable GAAP measures in the accompanying supplemental tables at the end of this release. | |||||||||||
(2) Available liquidity is calculated as cash and cash equivalents plus the undrawn capacity on our revolver. | |||||||||||
(in millions, except Average Revenue Per Daily Active Users ("ARPDAU"), Average Monthly Revenue Per Paying User ("AMRPPU"), and percentages) | |||||||||||||||||
Three Months Ended | |||||||||||||||||
September 30, | Increase / | ||||||||||||||||
2021 | 2020 | (Decrease) | |||||||||||||||
Mobile Penetration | 89% | 87% | 2.0pp | ||||||||||||||
Average Monthly Active Users | 6.1 | 7.3 | (1.2) | ||||||||||||||
Average Daily Active Users | 2.3 | 2.6 | (0.3) | ||||||||||||||
ARPDAU | $0.69 | $0.63 | $0.06 | ||||||||||||||
Average Monthly Paying Users | 0.5 | 0.5 | — | ||||||||||||||
AMRPPU | $93.67 | $94.10 | ($0.43) | ||||||||||||||
Payer Conversion Rate | 8.5% | 7.3% | 1.2pp | ||||||||||||||
pp = percentage points. | |||||||||||||||||
Media Relations | Investor Relations | ||||
Christina Karas +1 702-532-7986 | Jim Bombassei +1 702-532-7643 | ||||
Vice President, Corporate Communications media@scientificgames.com | Senior Vice President, Investor Relations IR@scientificgames.com |
SCIPLAY CORPORATION | |||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||||||
(Unaudited, in millions, except per share amounts) | |||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Revenue | $ | 146.6 | $ | 151.2 | $ | 451.7 | $ | 435.1 | |||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Cost of revenue(1) | 46.2 | 48.0 | 141.3 | 138.5 | |||||||||||||||||||
Sales and marketing(1) | 32.9 | 33.7 | 101.7 | 97.0 | |||||||||||||||||||
General and administrative(1) | 13.1 | 21.3 | 46.8 | 46.7 | |||||||||||||||||||
Research and development(1) | 9.8 | 8.8 | 28.8 | 24.3 | |||||||||||||||||||
Depreciation and amortization | 4.4 | 2.7 | 11.3 | 6.9 | |||||||||||||||||||
Restructuring and other | 1.7 | 0.2 | 3.1 | 1.7 | |||||||||||||||||||
Operating income | 38.5 | 36.5 | 118.7 | 120.0 | |||||||||||||||||||
Other income (expense), net | 0.1 | (0.2) | (0.4) | 0.9 | |||||||||||||||||||
Net income before income taxes | 38.6 | 36.3 | 118.3 | 120.9 | |||||||||||||||||||
Income tax expense | 1.6 | 1.2 | 5.5 | 5.9 | |||||||||||||||||||
Net income | 37.0 | 35.1 | 112.8 | 115.0 | |||||||||||||||||||
Less: Net income attributable to the noncontrolling interest | 31.1 | 29.6 | 95.7 | 98.5 | |||||||||||||||||||
Net income attributable to SciPlay | $ | 5.9 | $ | 5.5 | $ | 17.1 | $ | 16.5 | |||||||||||||||
Basic and diluted net income attributable to SciPlay per share: | |||||||||||||||||||||||
Basic | $ | 0.24 | $ | 0.24 | $ | 0.71 | $ | 0.72 | |||||||||||||||
Diluted | $ | 0.24 | $ | 0.23 | $ | 0.69 | $ | 0.69 | |||||||||||||||
Weighted average number of shares of Class A common stock used in per share calculation: | |||||||||||||||||||||||
Basic shares | 24.5 | 22.8 | 24.0 | 22.8 | |||||||||||||||||||
Diluted shares | 24.8 | 24.1 | 24.9 | 24.0 | |||||||||||||||||||
(1) Excludes depreciation and amortization. |
As of | |||||||||||
September 30, 2021 | December 31, 2020 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 330.8 | $ | 268.9 | |||||||
Accounts receivable, net | 35.6 | 36.6 | |||||||||
Prepaid expenses and other current assets | 17.1 | 5.9 | |||||||||
Total current assets | 383.5 | 311.4 | |||||||||
Property and equipment, net | 3.7 | 4.4 | |||||||||
Operating lease right-of-use assets | 7.2 | 8.5 | |||||||||
Goodwill | 130.2 | 129.8 | |||||||||
Intangible assets and software, net | 52.6 | 30.3 | |||||||||
Deferred income taxes | 77.3 | 82.5 | |||||||||
Other assets | 1.8 | 1.9 | |||||||||
Total assets | $ | 656.3 | $ | 568.8 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 21.5 | $ | 23.2 | |||||||
Accrued liabilities | 33.2 | 22.9 | |||||||||
Due to affiliate | 2.3 | 5.5 | |||||||||
Total current liabilities | 57.0 | 51.6 | |||||||||
Operating lease liabilities | 5.9 | 7.5 | |||||||||
Liabilities under TRA | 64.3 | 68.5 | |||||||||
Other long-term liabilities | 17.8 | 5.7 | |||||||||
Total stockholders’ equity(1) | 511.3 | 435.5 | |||||||||
Total liabilities and stockholders’ equity | $ | 656.3 | $ | 568.8 | |||||||
(1) Includes $415.2 million and $355.5 million in noncontrolling interest as of September 30, 2021 and December 31, 2020, respectively. |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net cash provided by operating activities | $ | 58.0 | $ | 56.4 | $ | 126.3 | $ | 131.9 | |||||||||||||||
Net cash used in investing activities | (6.6) | (1.8) | (13.7) | (17.6) | |||||||||||||||||||
Net cash used in financing activities | (21.5) | (0.5) | (50.7) | (14.6) | |||||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0.1 | 0.1 | — | — | |||||||||||||||||||
Increase in cash, cash equivalents and restricted cash | 30.0 | 54.2 | 61.9 | 99.7 | |||||||||||||||||||
Cash, cash equivalents and restricted cash, beginning of period | 300.8 | 156.1 | 268.9 | 110.6 | |||||||||||||||||||
Cash, cash equivalents and restricted cash, end of period | $ | 330.8 | $ | 156.1 | $ | 330.8 | $ | 210.3 | |||||||||||||||
Supplemental cash flow information: | |||||||||||||||||||||||
Cash paid for income taxes | $ | 0.4 | $ | — | $ | 4.5 | $ | 1.5 | |||||||||||||||
Cash paid for contingent consideration included in operating activities | — | — | — | 4.0 | |||||||||||||||||||
Supplemental non-cash transactions: | |||||||||||||||||||||||
Non-cash additions to intangible assets related to license agreements | $ | 3.5 | $ | 1.0 | $ | 16.8 | $ | 1.1 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net income attributable to SciPlay | $ | 5.9 | $ | 5.5 | $ | 17.1 | $ | 16.5 | |||||||||||||||
Net income attributable to noncontrolling interest | 31.1 | 29.6 | 95.7 | 98.5 | |||||||||||||||||||
Net income | 37.0 | 35.1 | 112.8 | 115.0 | |||||||||||||||||||
Restructuring and other | 1.7 | 0.2 | 3.1 | 1.7 | |||||||||||||||||||
Depreciation and amortization | 4.4 | 2.7 | 11.3 | 6.9 | |||||||||||||||||||
Income tax expense | 1.6 | 1.2 | 5.5 | 5.9 | |||||||||||||||||||
Stock-based compensation | 0.1 | 9.9 | 5.4 | 15.1 | |||||||||||||||||||
Other (income) expense, net | (0.1) | 0.2 | 0.4 | (0.9) | |||||||||||||||||||
AEBITDA | $ | 44.7 | $ | 49.3 | $ | 138.5 | $ | 143.7 | |||||||||||||||
Revenue | $ | 146.6 | $ | 151.2 | $ | 451.7 | $ | 435.1 | |||||||||||||||
Net income margin (Net income/Revenue) | 25.2 | % | 23.2 | % | 25.0 | % | 26.4 | % | |||||||||||||||
AEBITDA margin (AEBITDA/Revenue) | 30.5 | % | 32.6 | % | 30.7 | % | 33.0 | % |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
Net income margin (Net income/Revenue) | 25.2 | % | 23.2 | % | 25.0 | % | 26.4 | % | ||||||||||||||||||
Restructuring and other | 1.2 | % | 0.1 | % | 0.7 | % | 0.4 | % | ||||||||||||||||||
Depreciation and amortization | 3.0 | % | 1.8 | % | 2.5 | % | 1.6 | % | ||||||||||||||||||
Income tax expense | 1.1 | % | 0.8 | % | 1.2 | % | 1.4 | % | ||||||||||||||||||
Stock-based compensation | 0.1 | % | 6.6 | % | 1.2 | % | 3.4 | % | ||||||||||||||||||
Other (income) expense, net | (0.1) | % | 0.1 | % | 0.1 | % | (0.2) | % | ||||||||||||||||||
AEBITDA margin (AEBITDA/Revenue) | 30.5 | % | 32.6 | % | 30.7 | % | 33.0 | % |
Cover |
Nov. 09, 2021 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Nov. 09, 2021 |
Entity Registrant Name | SCIPLAY CORPORATION |
Entity Incorporation, State or Country Code | NV |
Entity File Number | 001-38889 |
Entity Tax Identification Number | 83-2692460 |
Entity Address, Address Line One | 6601 Bermuda Road |
Entity Address, City or Town | Las Vegas |
Entity Address, State or Province | NV |
Entity Address, Postal Zip Code | 89119 |
City Area Code | 702 |
Local Phone Number | 897-7150 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Class A common stock, par value $.001 per share |
Trading Symbol | SCPL |
Security Exchange Name | NASDAQ |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | true |
Entity Central Index Key | 0001760717 |
Amendment Flag | false |
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