Light & Wonder Files Q2 2024 10-Q

TL;DR

Light & Wonder's Q2 10-Q is in: check their latest financials for the period ending June 30, 2024.

AI Summary

Light & Wonder, Inc. filed its 10-Q for the period ending June 30, 2024. The company reported financial results for the second quarter and the first half of the year, detailing revenues and other financial metrics across its product and service segments. The filing also includes information on their business address in Las Vegas, NV, and historical company name changes.

Why It Matters

This filing provides investors with the latest financial performance data for Light & Wonder, Inc., crucial for understanding the company's current operational health and future prospects.

Risk Assessment

Risk Level: low — This is a routine quarterly financial filing with no immediate red flags.

Key Players & Entities

• Light & Wonder, Inc. (company) — Filer of the 10-Q
• 20240630 (date) — End of the reporting period
• 20240807 (date) — Filing date
• LAS VEGAS, NV (location) — Company's business and mailing address
• SCIENTIFIC GAMES CORP (company) — Former company name
• AUTOTOTE CORP (company) — Former company name
• UNITED TOTE INC (company) — Former company name

FAQ

Key Financial Figures

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

Filing Documents

• lnw-20240630.htm (10-Q) — 1587KB
• ex311-q224certificationofc.htm (EX-31.1) — 9KB
• ex312-q224certificationofc.htm (EX-31.2) — 10KB
• ex321-q224certificationofc.htm (EX-32.1) — 5KB
• ex322-q224certificationofc.htm (EX-32.2) — 5KB
• lnw-20240630_g1.jpg (GRAPHIC) — 183KB
• lnw-20240630_g10.jpg (GRAPHIC) — 34KB
• lnw-20240630_g11.jpg (GRAPHIC) — 40KB
• lnw-20240630_g12.jpg (GRAPHIC) — 33KB
• lnw-20240630_g2.jpg (GRAPHIC) — 23KB
• lnw-20240630_g3.jpg (GRAPHIC) — 24KB
• lnw-20240630_g4.jpg (GRAPHIC) — 55KB
• lnw-20240630_g5.jpg (GRAPHIC) — 42KB
• lnw-20240630_g6.jpg (GRAPHIC) — 38KB
• lnw-20240630_g7.jpg (GRAPHIC) — 45KB
• lnw-20240630_g8.jpg (GRAPHIC) — 39KB
• lnw-20240630_g9.jpg (GRAPHIC) — 34KB
• 0000750004-24-000045.txt ( ) — 9815KB
• lnw-20240630.xsd (EX-101.SCH) — 51KB
• lnw-20240630_cal.xml (EX-101.CAL) — 60KB
• lnw-20240630_def.xml (EX-101.DEF) — 210KB
• lnw-20240630_lab.xml (EX-101.LAB) — 612KB
• lnw-20240630_pre.xml (EX-101.PRE) — 421KB
• lnw-20240630_htm.xml (XML) — 1632KB

Condensed Consolidated Financial Statements (unaudited)

Item 1. Condensed Consolidated Financial Statements (unaudited) 7 Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2024 and 2023 7 Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2024 and 2023 8 Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023 9 Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 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 29

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 39

Controls and Procedures

Item 4. Controls and Procedures 40 PART II. OTHER INFORMATION 40

Legal Proceedings

Item 1. Legal Proceedings 40

Risk Factors

Item 1A. Risk Factors 40

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 40

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 40

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 40

Other Information

Item 5. Other Information 41

Exhibits

Item 6 Exhibits 41 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 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 Loan B Term loan facility, issued p

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 OPERATIONS (in millions, except per share amounts) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Revenue: Services $ 526 $ 496 $ 1,044 $ 973 Products 292 235 531 427 Total revenue 818 731 1,575 1,400 Operating expenses: Cost of services (1) 111 110 223 218 Cost of products (1) 125 108 233 201 Selling, general and administrative 220 203 438 396 Research and development 66 58 128 112 Depreciation, amortization and impairments 87 108 173 208 Restructuring and other 34 31 40 50 Operating income 175 113 340 215 Other (expense) income: Interest expense ( 75 ) ( 78 ) ( 150 ) ( 153 ) Other income (expense), net 8 ( 15 ) 18 ( 16 ) Total other expense, net ( 67 ) ( 93 ) ( 132 ) ( 169 ) Net income before income taxes 108 20 208 46 Income tax expense ( 26 ) ( 15 ) ( 44 ) ( 14 ) Net income 82 5 164 32 Less: Net income attributable to noncontrolling interest — 6 — 11 Net income (loss) attributable to L&W $ 82 $ ( 1 ) $ 164 $ 21 Per Share - Basic: Net income (loss) attributable to L&W $ 0.92 $ ( 0.01 ) $ 1.83 $ 0.23 Per Share - Diluted: Net income (loss) attributable to L&W $ 0.90 $ ( 0.01 ) $ 1.78 $ 0.22 Weighted average number of shares used in per share calculations: Basic shares 90 91 90 91 Diluted shares 92 91 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 June 30, Six Months Ended June 30, 2024 2023 2024 2023 Net income $ 82 $ 5 $ 164 $ 32 Other comprehensive (loss) income Foreign currency translation (loss) gain, net of tax ( 1 ) 37 ( 30 ) 50 Derivative financial instruments unrealized gain, net of tax — 10 6 3 Total other comprehensive (loss) income ( 1 ) 47 ( 24 ) 53 Total comprehensive income 81

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View this 10-Q filing on SEC EDGAR