Inspired Entertainment, Inc. (NASDAQ:INSE) Q4 2019 Earnings Conference Call - Final Transcript

Mar 11, 2020 • 10:00 am ET


Inspired Entertainment, Inc. (NASDAQ:INSE) Q4 2019 Earnings Conference Call - Final Transcript


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Good morning, everyone, and welcome to the Inspired Entertainment Fourth Quarter and Fiscal Year-End 2019 Conference Call. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. Please note today's event is being recorded.

I'll begin today's conference call by referring you to the Company's safe harbor statement that appears in the fourth quarter and fiscal year-end 2019 earnings press release, which is available at the Investors section of the Company's website at This safe harbor statement also applies to today's conference call as the Company's management will be making certain statements that will be considered forward-looking under securities law -- securities laws and rules of the SEC. These statements are based on management's current expectations or beliefs and are subject to risks, uncertainties and changes in circumstances.

In addition, please note that the Company will discuss both GAAP and non-GAAP financial measures. A reconciliation is included in the earnings press release.

With that completed, I would like to now turn the conference call over to Lorne Weil, the Company's Executive Chairman. Mr. Weil, please go ahead.

Allen Lorne Weil

Thank you, operator. Good morning, everyone, and thanks for joining our call this morning. We're living in interesting times, to say the least. And needless to say, it's never fun coping and competing for attention with a potential pandemic. But it's particularly not fun for us when, unfortunately, but for obviously critically valid reasons, it eclipses a quarter like the one we just had, that our team has been working on really nonstop for the last two years.

As many of you know, I've been in this industry and doing what I do for maybe 45 years. I think I was about 12 when I went to work for a company called General Instrument in the '70s, where, by the way, coincidentally -- actually, not coincidentally, I worked very closely hand-in-hand with the father of our President and CEO, Brooks Pierce. And I never ever have seen anything like what our team has been able to do, in a way, forced to do, in the last couple of years. So if I may, let me beg your indulgence for a few minutes and review a little of this recent history, since reviewing history is what companies seem to do in year-end conference calls anyway.

In February 2018, so almost exactly two years ago, we began talking seriously with Novomatic about buying their U.K. technology business, a business larger but somewhat less profitable than ourselves. We signed a definitive agreement in June 2019 after a very comprehensive due diligence process, and we then closed in October 2019, following a lengthy and also complicated regulatory review. In the six months since we've integrated the two companies, we've made significant progress in centralizing manufacturing, rationalized content development, streamlined the field service organizations and begun to really exploit additional significant revenue and cost synergies.

As if we weren't busy enough, in the middle of this process, of course, the U.K. regulatory authorities had to