Scientific Games Corporation (NASDAQ:SGMS) Q1 2015 Earnings Conference Call - Final Transcript
May 07, 2015 • 05:00 pm ET
Good day, ladies and gentlemen and welcome to the First Quarter 2015 Scientific Games Corporation Earnings Conference Call. My name is Denise and I will be the operator for today. At this time, all participants are in listen-only mode. (Operator Instructions) As a reminder, this conference is being recorded for replay purposes.
I will now turn the conference over to Mr. Bill Pfund, Vice President of Investor Relations. Please proceed, sir.
Thank you, Denise. Welcome, everyone and thank you for joining us. With me this afternoon are Gavin Isaacs, President and Chief Executive Officer and Scott Schweinfurth, Executive Vice President, Chief Financial Officer and Corporate Secretary. During this call, we will discuss our first quarter results and operating progress, followed by a question-and-answer period.
Our call will contain statements that constitute forward-looking statements under the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that could cause actual results to differ materially from those discussed. For certain information regarding these risks and uncertainties, please refer to our earnings press release issued today, the materials relating to this call posted on our website and our filings with the SEC, including our most recent Annual Report on Form 10-K filed on March 17, 2015 and subsequent reports filed with the SEC.
We will also discuss certain non-GAAP financial measures. A description of each non-GAAP financial measure and a reconciliation of each non-GAAP financial measure to the most comparable GAAP financial measure can be found in our earnings press release. As a reminder, a replay of the call will also be archived in the Investor Information section of our website.
Now, let me turn the call over to Gavin.
Thank you, Bill. Good afternoon, everyone. Today, Scientific Games reported first quarter results, our first full quarter of combined operations. We have made significant progress in integrating Scientific Games and Bally and we continue to move forward with our integration. We are off to a very good start.
Revenue was $659 million, up $271 million due to the inclusion of Bally and growth of our interactive businesses partly offset by lower revenues from our legacy gaming business and lottery business. Importantly, the cost structure of the organization is beginning to reflect savings from the initial integration actions. On the pro forma basis, attributable EBITDA was only down $7 million on a $76 million decline in revenues. By the end of the first quarter, our teams had implemented changes that are expected to yield approximately $90 million in annualized cost savings related to the Bally acquisition.
With the first year target of implementing actions to save approximately $188 million, we are already nearly 50% of where we expect to be by year end. Make no mistake, integration is tough, but we believe we now have the synergies and integration as it's built into the framework of our business.
Our focus is firmly on growing our business. That is ultimately the key to our long-term success. Importantly, within each of our businesses, we