Inspired Entertainment, Inc. (NASDAQ:INSE) Q1 2019 Earnings Conference Call - Final Transcript

Feb 11, 2019 • 09:30 am ET


Inspired Entertainment, Inc. (NASDAQ:INSE) Q1 2019 Earnings Conference Call - Final Transcript


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Stewart Baker

comparative whilst depreciation and amortization remained flat year-over-year. And as a result, the adjusted EBITDA increased year-on-year and net operating results improved for the period. So turning your attention to cash flow. So from a cash flow perspective for the three months, net cash provided by operating activity was positive $0.9 million compared to $0.1 million outflow in the prior period last year, whilst net cash used in investing activities decreased from $6.8 million last year to $6.6 million this year due to lower level of spending on capital software. And overall, we closed the quarter at $16 million in cash, up from $11 million a year ago period.

And for the three months, if we define free cash flow as net cash provided by operating activities less net cash used in investing activities, free cash flow was therefore negative. However, it's worth noting a number of relatively unique line items in the quarter, including redundancy payments, an extra monthly UK payroll due to the way their monthly payments fall and bonus payments, all-in-all causing this quarter to not be representative of normal quarters.

And actually it's worth noting that since the quarter end, last week cash levels for the Group were close to the September close levels. So as a management team, as we said before, we focus heavily on cash flow and despite the Triennial impact and the costs of office consolidation that were noted in the release in the Q, we expect that we will take significant strides forward during this year towards cash generation from where we've historically been as we work towards significantly reducing capital expenditure. And finally just a reminder that on the January 1st this year, we started our new fiscal year and we'll report the first quarter results in May.

So with that, I'll hand back to Lorne for any additional comments before opening up to wider Q&A.

A. Lorne Weil

Thank you, Stewart. That was an excellent summary of the financial characteristics of the transitional quarter, and I have no comments really to add now.

So I'll ask the operator to open up the line for questions please.