Scientific Games Corporation (NASDAQ:SGMS) Q2 2019 Earnings Conference Call Transcript

Aug 01, 2019 • 05:30 pm ET

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Scientific Games Corporation (NASDAQ:SGMS) Q2 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good afternoon, and welcome to the Scientific Games Second Quarter 2019 Earnings Conference Call. [Operator instructions] Please note, this event is being recorded. I would now like to turn the conference over to Trent Kruse, Senior Vice President, Investor Relations. Please go ahead.

Executive
Trent Kruse

Okay. Thank you, Gary, and good afternoon, everyone. During today's call, we will discuss our second quarter 2019 results and operating performance followed by a question-and-answer period. With me this morning are Barry Cottle and Mike Quartieri.

Our call today will contain statements that include forward-looking statements under the Private Securities Litigation Reform Act of 1995. These statements involve certain risks and uncertainties that could cause actual results to differ materially from those discussed during the call. For information regarding these risks and uncertainties, please refer to our earnings release issued earlier this afternoon, the materials relating to this call posted on our website, and our filings with the SEC.

We also will discuss certain non-GAAP financial measures. A description of each non-GAAP measure and a reconciliation of each non-GAAP measure to the most directly comparable GAAP measure can be found in our earnings press release as well as in the Investors section on our website. As a reminder, this conference call is being recorded. A replay of this webcast and accompanying materials will be archived in the Investors section of our website at scientificgames.com. Also, supplemental reference slides are available on our investor relations website.

While management will not be speaking directly to the slides, these slides are meant to facilitate your review of the Company's results and to be used as a reference document following the call. Now let me turn the call over to Barry.

Executive
Barry Cottle

Thanks, Trent. Good afternoon, everyone, and thanks for joining us. Before we dive into our second quarter results, I want to take this opportunity to highlight some of the key accomplishments we have delivered and the momentum we've created over the last 12 months. First and foremost, I'm proud to share that we strengthened our financial position by reducing our debt. We decreased our net debt leverage ratio from 7 to 6.5. We accomplished this through both AEBITDA growth as well as an over $300 million reduction in net debt and are on track to achieve our target of approximately 5.5 by year end 2020.

We will achieve this target through both continued AEBITDA growth and accelerated net reduction. We are firmly committed to reducing leverage in this business and will continue this focus beyond our current target of 5.5.

Second, we've assembled the best leadership team in the industry. Third, we stabilized our most strategic core market in North America, game ops. Fourth, we delivered key wins in critical emerging markets, such as iLottery, iGaming and sports. Fifth, we innovated across compelling new markets and products, such as SCiQ, SGVision and our industry-leading digital platforms, like open platform systems, open gaming systems, and unveiled OpenSports, our new end-to-end sports-betting solution.

Sixth, we're very proud of successfully executing our social