Light & Wonder Files Q3 2024 10-Q

TL;DR

**LNW Q3 10-Q filed. Financials out.**

AI Summary

Light & Wonder, Inc. filed its 10-Q for the period ending September 30, 2024. The company, formerly known as Scientific Games Corp, reported financial results for the third quarter and the first nine months of 2024. Specific financial figures and segment performance details are available within the filing.

Why It Matters

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

Risk Assessment

Risk Level: medium — 10-Q filings are standard financial reports, but the specific financial performance and disclosures within can reveal significant risks or opportunities.

Key Numbers

• 2024-09-30 — Period End Date (The report covers financial data up to this date.)
• 2024-11-12 — Filing Date (The date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• Light & Wonder, Inc. (company) — Filer
• Scientific Games Corp (company) — Former company name
• 2024-09-30 (date) — Period of report
• 2024-11-12 (date) — Filing date

FAQ

Key Financial Figures

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

Filing Documents

• lnw-20240930.htm (10-Q) — 1680KB
• ex311-q324certificationofc.htm (EX-31.1) — 9KB
• ex312-q324certificationofc.htm (EX-31.2) — 10KB
• ex321-q324certificationofc.htm (EX-32.1) — 5KB
• ex322-q324certificationofc.htm (EX-32.2) — 5KB
• lnw-20240930_g1.jpg (GRAPHIC) — 183KB
• lnw-20240930_g10.jpg (GRAPHIC) — 36KB
• lnw-20240930_g11.jpg (GRAPHIC) — 40KB
• lnw-20240930_g12.jpg (GRAPHIC) — 34KB
• lnw-20240930_g2.jpg (GRAPHIC) — 25KB
• lnw-20240930_g3.jpg (GRAPHIC) — 28KB
• lnw-20240930_g4.jpg (GRAPHIC) — 61KB
• lnw-20240930_g5.jpg (GRAPHIC) — 49KB
• lnw-20240930_g6.jpg (GRAPHIC) — 43KB
• lnw-20240930_g7.jpg (GRAPHIC) — 55KB
• lnw-20240930_g8.jpg (GRAPHIC) — 47KB
• lnw-20240930_g9.jpg (GRAPHIC) — 38KB
• 0000750004-24-000064.txt ( ) — 10289KB
• lnw-20240930.xsd (EX-101.SCH) — 52KB
• lnw-20240930_cal.xml (EX-101.CAL) — 63KB
• lnw-20240930_def.xml (EX-101.DEF) — 201KB
• lnw-20240930_lab.xml (EX-101.LAB) — 605KB
• lnw-20240930_pre.xml (EX-101.PRE) — 415KB
• lnw-20240930_htm.xml (XML) — 1789KB

Condensed Consolidated Financial Statements (unaudited)

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

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 40

Controls and Procedures

Item 4. Controls and Procedures 41 PART II. OTHER INFORMATION 41

Legal Proceedings

Item 1. Legal Proceedings 41

Risk Factors

Item 1A. Risk Factors 41

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 42

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 42

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 42

Other Information

Item 5. Other Information 42

Exhibits

Item 6 Exhibits 43 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 September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Revenue: Services $ 530 $ 503 $ 1,573 $ 1,476 Products 287 228 818 655 Total revenue 817 731 2,391 2,131 Operating expenses: Cost of services (1) 112 113 334 331 Cost of products (1) 134 105 366 307 Selling, general and administrative 220 204 657 599 Research and development 66 55 194 168 Depreciation, amortization and impairments 90 90 264 298 Restructuring and other 36 17 76 66 Operating income 159 147 500 362 Other (expense) income: Interest expense ( 73 ) ( 78 ) ( 223 ) ( 231 ) Loss on debt financing transactions ( 2 ) ( 15 ) ( 2 ) ( 15 ) Other (expense) income, net ( 3 ) 40 14 23 Total other expense, net ( 78 ) ( 53 ) ( 211 ) ( 223 ) Net income before income taxes 81 94 289 139 Income tax expense ( 17 ) ( 14 ) ( 61 ) ( 27 ) Net income 64 80 228 112 Less: Net income attributable to noncontrolling interest — 5 — 16 Net income attributable to L&W $ 64 $ 75 $ 228 $ 96 Per Share - Basic: Net income attributable to L&W $ 0.72 $ 0.83 $ 2.55 $ 1.05 Per Share - Diluted: Net income attributable to L&W $ 0.71 $ 0.81 $ 2.49 $ 1.03 Weighted average number of shares used in per share calculations: Basic shares 89 91 90 91 Diluted shares 91 92 92 93 (1) Excludes D&A. See accompanying notes to condensed consolidated financial statements. 7 LIGHT & WONDER, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Net income $ 64 $ 80 $ 228 $ 112 Other comprehensive income (loss) Foreign currency translation gain (loss), net of tax 60 ( 71 ) 30 ( 21 ) Derivative financial instruments unrealized (loss) gain, net of tax ( 14 ) 5 ( 8 ) 8 Total other

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View this 10-Q filing on SEC EDGAR