Light & Wonder, Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Light & Wonder, Inc. filed its Q1 2024 10-Q report, detailing financial performance across its gaming and digital segments.</b>

AI Summary

Light & Wonder, Inc. (LAWIL) filed a Quarterly Report (10-Q) with the SEC on May 8, 2024. Light & Wonder, Inc. reported its Q1 2024 results on May 8, 2024. The filing covers the period from January 1, 2024, to March 31, 2024. The company was formerly known as Scientific Games Corp and Autotote Corp. The company's primary business address is 6601 Bermuda Road, Las Vegas, NV. The filing includes data for various segments including Gaming Operations, Gaming Machine Sales, Gaming Systems, Table Products, SciPlay (Mobile and Web/Other), and iGaming.

Why It Matters

For investors and stakeholders tracking Light & Wonder, Inc., this filing contains several important signals. This 10-Q filing provides investors with the latest financial performance data for Light & Wonder, Inc., crucial for evaluating the company's current operational health and strategic direction. Understanding the segment-specific revenues and growth rates will allow stakeholders to identify key drivers of performance and potential areas of concern within the company's diverse business units.

Risk Assessment

Risk Level: — Light & Wonder, Inc. shows moderate risk based on this filing. The company's financial performance is subject to the inherent risks of the gaming and digital entertainment industries, including regulatory changes and competitive pressures, as indicated by the detailed segment reporting.

Analyst Insight

Investors should analyze the revenue growth and profitability of each segment (Gaming, SciPlay, iGaming) to assess the company's overall strategic execution and future growth prospects.

Revenue Breakdown

Key Numbers

• 2024-03-31 — Report Period End Date (Conformed Period of Report)
• 2024-05-08 — Filing Date (Filed as of Date)

Key Players & Entities

• Light & Wonder, Inc. (company) — Filer name
• Scientific Games Corp (company) — Former company name
• Autotote Corp (company) — Former company name
• United Tote Inc (company) — Former company name
• 6601 Bermuda Road, Las Vegas, NV (company) — Business address

FAQ

Industry Context

Light & Wonder operates within the gaming and digital entertainment industry, providing products and services to casinos and online platforms.

Regulatory Implications

The company is subject to various gaming regulations across different jurisdictions, which can impact its operations and product offerings.

What Investors Should Do

1. Review the detailed segment revenues and growth rates for Q1 2024 compared to Q1 2023.
2. Analyze any disclosed net income, EPS, or margin data if available in the full filing.
3. Investigate any specific risk factors mentioned in the full 10-Q report related to the gaming or digital sectors.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-05-08: Filing Date — Date the 10-Q was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial filing analyzed for the period ending March 31, 2024; prior period comparisons will be available within the full document.

Key Financial Figures

• $750 million — facility with aggregate commitments of $750 million extended pursuant to the LNWI Credit Ag

Filing Documents

• lnw-20240331.htm (10-Q) — 1207KB
• ex311-q124certificationofc.htm (EX-31.1) — 9KB
• ex312-q124certificationofc.htm (EX-31.2) — 10KB
• ex321-q124certificationofc.htm (EX-32.1) — 5KB
• ex322-q124certificationofc.htm (EX-32.2) — 5KB
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• 0000750004-24-000028.txt (&nbsp;) — 8137KB
• lnw-20240331.xsd (EX-101.SCH) — 49KB
• lnw-20240331_cal.xml (EX-101.CAL) — 57KB
• lnw-20240331_def.xml (EX-101.DEF) — 197KB
• lnw-20240331_lab.xml (EX-101.LAB) — 583KB
• lnw-20240331_pre.xml (EX-101.PRE) — 401KB
• lnw-20240331_htm.xml (XML) — 1207KB

Condensed Consolidated Financial Statements (unaudited)

Item 1. Condensed Consolidated Financial Statements (unaudited) 7 Consolidated Statements of Income for the Three Months Ended March 31, 2024 and 2023 7 Consolidated Statements of Comprehensive Income for the Three Months Ended March 31, 2024 and 2023 8 Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 9 Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2024 and 2023 10 Notes to Condensed Consolidated Financial Statements 11

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 28

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 38

Controls and Procedures

Item 4. Controls and Procedures 38 PART II. OTHER INFORMATION 38

Legal Proceedings

Item 1. Legal Proceedings 38

Risk Factors

Item 1A. Risk Factors 39

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 39

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 39

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 39

Other Information

Item 5. Other Information 39

Exhibits

Item 6 Exhibits 40 2 Glossary of Terms The following terms or acronyms used in this Quarterly Report on Form 10-Q are defined below: Term or Acronym Definition 2023 10-K 2023 Annual Report on Form 10-K filed with SEC on February 27, 2024 2028 Unsecured Notes 7.000% senior unsecured notes due 2028 issued by LNWI 2029 Unsecured Notes 7.250% senior unsecured notes due 2029 issued by LNWI 2031 Unsecured Notes 7.500% senior unsecured notes due 2031 issued by LNWI AEBITDA Adjusted EBITDA, our primary performance measure of profit or loss for our business segments ASC Accounting Standards Codification ASU Accounting Standards Update ASX Australian Securities Exchange CMS casino-management system D&A depreciation, amortization and impairments (excluding goodwill) Exchange Act Securities Exchange Act of 1934, as amended FASB Financial Accounting Standards Board KPIs Key Performance Indicators L&W Light & Wonder, Inc. LBO licensed betting office LNWI Light and Wonder International, Inc., a wholly-owned subsidiary of L&W and successor to Scientific Games International, Inc. LNWI Credit Agreement That certain credit agreement, dated as of April 14, 2022, among LNWI, as the borrower, L&W, as a guarantor, the lenders from time to time party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, Collateral Agent and Swingline Lender, BofA Securities, Inc., BNP Paribas Securities Corp., Deutsche Bank Securities Inc., Fifth Third Bank, National Association, Barclays Bank PLC, Citizens Bank, N.A., Goldman Sachs Bank USA, Morgan Stanley Senior Funding, Inc., Royal Bank of Canada, Truist Securities, Inc., Credit Suisse Loan Funding LLC and Macquarie Capital (USA) Inc. as Lead Arrangers and Joint Bookrunners, as amended, restated, amended and restated, supplemented or otherwise modified from time to time LNWI Revolver Revolving credit facility with aggregate commitments of $750 million extended pursuant to the LNWI Credit Agreement LNWI Term Loa

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS Throughout this Quarterly Report on Form 10-Q, we make "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements describe future expectations, plans, results or strategies and can often be identified by the use of terminology such as "may," "will," "estimate," "intend," "plan," "continue," "believe," "expect," "anticipate," "target," "should," "could," "potential," "opportunity," "goal," or similar terminology. The forward-looking statements contained in this Quarterly Report on Form 10-Q are generally located in the material set forth under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations" but may be found in other locations as well. These statements are based upon management's current expectations, assumptions and estimates and are not guarantees of timing, future results or performance. Therefore, you should not rely on any of these forward-looking statements as predictions of future events. Actual results may differ materially from those contemplated in these statements due to a variety of risks and uncertainties and other factors, including, among other things: our inability to successfully execute our strategy; slow growth of new gaming jurisdictions, slow addition of casinos in existing jurisdictions and declines in the replacement cycle of gaming machines; risks relating to foreign operations, including anti-corruption laws, fluctuations in currency rates, restrictions on the payment of dividends from earnings, restrictions on the import of products and financial instability; difficulty predicting what impact, if any, new tariffs imposed by and other trade actions taken by the U.S. and foreign jurisdictions could have on our business; U.S. and international economic and industry conditions, including increases in benchmark interest rates and the effects of inflation; public perception of our respon

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Condensed Consolidated Financial Statements (unaudited)

Item 1. Condensed Consolidated Financial Statements (unaudited) LIGHT & WONDER, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts) Three Months Ended March 31, 2024 2023 Revenue: Services $ 517 $ 477 Products 239 193 Total revenue 756 670 Operating expenses: Cost of services (1) 112 108 Cost of products (1) 107 94 Selling, general and administrative 218 192 Research and development 62 54 Depreciation, amortization and impairments 86 101 Restructuring and other 6 19 Operating income 165 102 Other (expense) income: Interest expense ( 75 ) ( 75 ) Other income (expense), net 10 ( 1 ) Total other expense, net ( 65 ) ( 76 ) Net income before income taxes 100 26 Income tax (expense) benefit ( 18 ) 1 Net income 82 27 Less: Net income attributable to noncontrolling interest — 5 Net income attributable to L&W $ 82 $ 22 Per Share - Basic: Net income attributable to L&W $ 0.91 $ 0.24 Per Share - Diluted: Net income attributable to L&W $ 0.88 $ 0.23 Weighted average number of shares used in per share calculations: Basic shares 90 91 Diluted shares 92 93 (1) Excludes D&A. See accompanying notes to consolidated financial statements. 7 LIGHT & WONDER, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) Three Months Ended March 31, 2024 2023 Net income $ 82 $ 27 Other comprehensive (loss) income Foreign currency translation (loss) gain, net of tax ( 29 ) 13 Derivative financial instruments unrealized gain (loss), net of tax 6 ( 7 ) Total other comprehensive (loss) income ( 23 ) 6 Total comprehensive income 59 33 Less: comprehensive income attributable to noncontrolling interest — 5 Comprehensive income attributable to L&W $ 59 $ 28 See accompanying notes to consolidated financial statements. 8 LIGHT & WONDER, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in millions, except par value) As of March 31, 2024 December 31, 2023 A

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View this 10-Q filing on SEC EDGAR