Scientific Games Corporation has defended its liquidity position as it battles the impact of COVID-19, citing US$100 million in quarterly cost savings and available cash of US$680 million.
Although the company’s cash position, which includes US$200 million in cash on hand and another US$480 million drawn under its revolving credit facilities, appears to provide only a three-month window on monthly capital expenditure costs of US$210 to US$240 million, Scientific Games said in a Wednesday morning release (Macau time) that the proceeds of its borrowings provide enough liquidity “to take advantage of opportunities to strengthen the business as the industry begins to recover.”
Majority-owned subsidiary SciPlay has cash on hand of around US$130 million as of 31 March 2020, no outstanding debt and US$150 million available under its revolving credit facility, the company added.
Scientific Games has reduced its monthly costs by around US$100 million via a combination of capex, workforce and pay reductions, as well as furloughs, from a prior range of between US$300 million to US$330 million.
“We continue to reduce our costs so that that we can position our Company to be an even stronger competitor as the industry begins to recover,” said CEO Barry Cottle.
“We remain committed to providing our best in class products and services to our customers across lottery, iGaming, sports betting and land-based casinos while innovating for the future.
“The diversity of our business, serving customers across the industry and around the globe, gives us unique strength in these challenging times.”
Cottle recently volunteered a 100% reduction in pay, with the rest of the company’s executive leadership team taking 50% pay cuts.
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