Scientific Games announces its Q4 report for 2016 with the company’s CEO highlighting key areas of growth and progress.
In 2016, Scientific Games enjoyed another year of growth, progress and industry-leading product innovation, according to Kevin Sheehan, chief executive of Scientific Games.
“We are driving innovation to create new, differentiated products for our customers, improve financial performance to accelerate deleveraging, and build a culture open to new ideas and committed to exceeding the expectations of our customers and shareholders”
Sheehan said: “With 2017 off and running, we are maintaining a focus on playing smart to galvanize our business growth. We are driving innovation to create new, differentiated products for our customers, improve financial performance to accelerate deleveraging, and build a culture open to new ideas and committed to exceeding the expectations of our customers and shareholders.”
Highlights from the Full Year report include a five percent increase in revenue from £124.6m year-over-year to £2365.58m, with operating income at £107.15m, which included a £56.16m noncash goodwill impairment charge as well as £46.76m of restructuring and other expenses.
Sheehan added: “The 2016 fourth quarter was the fifth consecutive quarter of growth with year over year revenue growth, besting last year’s strong performance.”
Commenting on the results Scientific Games CFO, Michael Quartieri, said: “We continue to refine our business processes to yield greater financial discipline, while ensuring continued investment in innovation to drive profitable growth. While improvement initiatives implemented in the fourth quarter had a cash cost of $6 million, we expect these actions will expand our margins and cash flow in 2017.”
He added: “Importantly, in early 2017 we took steps that reduced our annual cash interest burden by approximately $30 million at current rates, while extending the average maturity of our capital structure. We expect these steps will yield a planned increase in cash flow that supports our goal of additional deleveraging in 2017.”