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Record Full-Year Revenue and Second Highest Quarterly Revenue
Strong Core Social Casino Business with Record Quarterly Payer Conversion Rate of 8.9%
Project All-Star Initiative Driving Strong Performance with 5th Consecutive Quarterly Record for Gold Fish® and Strong Sequential Growth at Quick Hit® and Jackpot Party®
Alictus Acquisition Advances Expansion in Casual Games
LAS VEGAS–(BUSINESS WIRE)–SciPlay Corporation (NASDAQ: SCPL) (“SciPlay” or the “Company”) today reported results for the fourth quarter and year ended December 31, 2021.
Josh Wilson, Chief Executive Officer of SciPlay, said, “We are decisively executing on our strategy to become a diversified global mobile game developer. Our investments in strategic initiatives were significant contributors to our strong performance in the quarter and we expect to continue to benefit from these growth initiatives over the coming years. Our core business is performing exceptionally well, as evidenced by record engagement and monetization metrics. Strategic initiatives such as Project All-Star have allowed us to further improve the player experience. We are rapidly expanding in casual, organically and through acquisitions. Alictus, a proven, fast growing hyper-casual game developer with a deep pipeline, allows us to further scale in casual and enter the $13 billion global mobile in-game advertising market. We are wrapping up 2021 on a strong note and are excited about what lies ahead.”
Daniel O’Quinn, Interim Chief Financial Officer of SciPlay, added, “We are very proud of our game teams for delivering record revenue of $606 million in 2021 and our second highest quarterly revenue in the fourth quarter. Our strategic initiatives contributed to record engagement and monetization metrics in the quarter. Our ARPDAU and Payer Conversion metrics set new records of $0.74 and 8.9%, respectively. Our business remains highly cash generative, and our balance sheet is strong. As we continue to invest in our business, we will remain highly disciplined and focused on driving profitable growth and enhancing shareholder value.”
SUMMARY RESULTS
|
Three Months Ended |
|
Year Ended |
||||||||||||
($ in millions) |
December 31, |
|
December 31, |
||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Revenue |
$ |
154.4 |
|
|
$ |
147.1 |
|
|
$ |
606.1 |
|
|
$ |
582.2 |
|
Net income |
|
12.2 |
|
|
|
31.0 |
|
|
|
125.0 |
|
|
|
146.0 |
|
Net income margin |
|
7.9 |
% |
|
|
21.1 |
% |
|
|
20.6 |
% |
|
|
25.1 |
% |
Net cash provided by operating activities |
|
37.5 |
|
|
|
61.5 |
|
|
|
163.8 |
|
|
|
193.4 |
|
Capital expenditures |
|
1.1 |
|
|
|
2.1 |
|
|
|
9.1 |
|
|
|
7.1 |
|
|
|
|
|
|
|
|
|
||||||||
Non-GAAP Financial Measures (1) |
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA (“AEBITDA”) |
$ |
47.4 |
|
|
$ |
45.0 |
|
|
$ |
185.9 |
|
|
$ |
188.7 |
|
AEBITDA margin |
|
30.7 |
% |
|
|
30.6 |
% |
|
|
30.7 |
% |
|
|
32.4 |
% |
|
|
|
|
|
|
|
|
||||||||
Balance Sheet Measures |
As of December 31, 2021 |
|
As of December 31, 2020 |
|
|
|
|
||||||||
Cash and cash equivalents |
$ |
364.4 |
|
|
$ |
268.9 |
|
|
|
|
|
||||
Available liquidity(2) |
|
514.4 |
|
|
|
418.9 |
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||||||
(1) The financial measures “AEBITDA” and “AEBITDA margin” are non-GAAP financial measures defined below under “Non-GAAP Financial Measures” and reconciled to the most directly comparable GAAP measures in the accompanying supplemental tables at the end of this release. |
|||||||||||||||
(2) Available liquidity is calculated as cash and cash equivalents plus the undrawn capacity on our revolver. |
Key Performance Indicators
(in millions, except ARPDAU, AMRPPU, and percentages) |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
Year Ended |
|
|
||||
|
December 31, |
|
Increase / |
|
December 31, |
|
Increase / |
||||
|
2021 |
|
2020 |
|
(Decrease) |
|
2021 |
|
2020 |
|
(Decrease) |
Mobile Penetration |
89% |
|
87% |
|
2.0pp |
|
89% |
|
87% |
|
2.0pp |
Average Monthly Active Users |
5.9 |
|
6.9 |
|
(1.0) |
|
6.2 |
|
7.4 |
|
(1.2) |
Average Daily Active Users |
2.3 |
|
2.5 |
|
(0.2) |
|
2.3 |
|
2.7 |
|
(0.4) |
ARPDAU |
$0.74 |
|
$0.63 |
|
$0.11 |
|
$0.71 |
|
$0.60 |
|
$0.11 |
Average Monthly Paying Users |
0.5 |
|
0.5 |
|
— |
|
0.5 |
|
0.5 |
|
— |
AMRPPU |
$98.38 |
|
$91.40 |
|
$6.98 |
|
$95.26 |
|
$92.75 |
|
$2.51 |
Payer Conversion Rate |
8.9% |
|
7.8% |
|
1.1pp |
|
8.5% |
|
7.1% |
|
1.4pp |
Fourth Quarter 2021 Financial Highlights
Fourth Quarter Key Performance Highlights
Full Year 2021 Financial Highlights
Full Year 2021 Key Performance Highlights
Earnings Conference Call
As previously announced, SciPlay executive leadership will host a conference call on Wednesday, March 2, 2022, at 8:30 a.m. EST to review the Company’s fourth quarter and full year results. To access the call live via a listen-only webcast and presentation, please visit http://investors.sciplay.com/news-and-events/events-and-presentations and click on the webcast link under the Investor Information section. To access the call by telephone, please dial: +1 (877) 825-6464 (U.S.) or +1 (636) 692-6519 (International) and reference Conference ID: SciPlay 6186296. A replay of the webcast will be archived in the Investors section on www.sciplay.com.
About SciPlay
SciPlay Corporation (NASDAQ: SCPL) is a leading developer and publisher of digital games on mobile and web platforms. SciPlay currently offers social casino games Jackpot Party® Casino, Gold Fish® Casino, Hot Shot Casino® and Quick Hit® Slots, MONOPOLY Slots, and 88 Fortunes® Slots and casual games Bingo Showdown®, Solitaire Pets™ Adventure, and Backgammon Live. All of SciPlay’s games are offered and played on multiple platforms, including Apple, Google, Facebook and Amazon. In addition to developing original games, SciPlay has access to a library of more than 1,500 real-world slot and table games provided by Scientific Games Corporation and its Subsidiaries. For more information, please visit www.sciplay.com.
All ® and © notices signify copyrights owned by and/or marks registered in the United States by SciPlay Games, LLC and/or SG Gaming, Inc., and or their respective affiliates.
© 2022 SciPlay Corporation. All Rights Reserved.
You can access our filings with the SEC through the SEC website at www.sec.gov or through our website, and we strongly encourage you to do so. We routinely post information that may be important to investors on our website at http://investors.sciplay.com/, and we use our website as a means of disclosing material information to the public in a broad, non-exclusionary manner for purposes of the SEC’s Regulation Fair Disclosure (Reg FD). The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document, and shall not be deemed “filed” under the Securities Exchange Act of 1934, as amended.
All ® notices signify marks registered in the United States. © 2022 SciPlay Corporation. All Rights Reserved.
SCIPLAY CORPORATION |
|||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME |
|||||||||||||||
(Unaudited, in millions, except per share amounts) |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
December 31, |
|
December 31, |
||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Revenue |
$ |
154.4 |
|
|
$ |
147.1 |
|
|
$ |
606.1 |
|
|
$ |
582.2 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Cost of revenue(1) |
|
48.7 |
|
|
|
46.8 |
|
|
|
190.0 |
|
|
|
185.3 |
|
Sales and marketing(1) |
|
33.6 |
|
|
|
33.7 |
|
|
|
135.3 |
|
|
|
130.7 |
|
General and administrative(1) |
|
15.6 |
|
|
|
19.5 |
|
|
|
62.4 |
|
|
|
66.2 |
|
Research and development(1) |
|
10.9 |
|
|
|
9.0 |
|
|
|
39.7 |
|
|
|
33.3 |
|
Depreciation and amortization |
|
4.2 |
|
|
|
2.8 |
|
|
|
15.5 |
|
|
|
9.7 |
|
Restructuring and other(2) |
|
28.4 |
|
|
|
0.3 |
|
|
|
31.5 |
|
|
|
2.0 |
|
Total operating expenses |
|
141.4 |
|
|
|
112.1 |
|
|
|
474.4 |
|
|
|
427.2 |
|
Operating income |
|
13.0 |
|
|
|
35.0 |
|
|
|
131.7 |
|
|
|
155.0 |
|
Other (expense) income: |
|
|
|
|
|
|
|
||||||||
Other (expense) income, net |
|
(0.6 |
) |
|
|
(1.5 |
) |
|
|
(1.0 |
) |
|
|
(0.6 |
) |
Total other (expense) income, net |
|
(0.6 |
) |
|
|
(1.5 |
) |
|
|
(1.0 |
) |
|
|
(0.6 |
) |
Net income before income taxes |
|
12.4 |
|
|
|
33.5 |
|
|
|
130.7 |
|
|
|
154.4 |
|
Income tax expense |
|
0.2 |
|
|
|
2.5 |
|
|
|
5.7 |
|
|
|
8.4 |
|
Net income |
|
12.2 |
|
|
|
31.0 |
|
|
|
125.0 |
|
|
|
146.0 |
|
Less: Net income attributable to the noncontrolling interest |
|
10.0 |
|
|
|
26.6 |
|
|
|
105.7 |
|
|
|
125.1 |
|
Net income attributable to SciPlay |
$ |
2.2 |
|
|
$ |
4.4 |
|
|
$ |
19.3 |
|
|
$ |
20.9 |
|
Basic and diluted net income attributable to SciPlay per share(3): |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.09 |
|
|
$ |
0.19 |
|
|
$ |
0.80 |
|
|
$ |
0.92 |
|
Diluted |
$ |
0.09 |
|
|
$ |
0.18 |
|
|
$ |
0.77 |
|
|
$ |
0.86 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average number of shares of Class A common stock used in per share calculation: |
|
|
|
|
|
|
|
||||||||
Basic shares |
|
24.5 |
|
|
|
22.9 |
|
|
|
24.2 |
|
|
|
22.8 |
|
Diluted shares |
|
24.8 |
|
|
|
24.8 |
|
|
|
25.0 |
|
|
|
24.4 |
|
|
|
|
|
|
|
|
|
||||||||
(1) Excludes depreciation and amortization. |
|||||||||||||||
(2) For 2021 periods, includes $24.5 million legal settlement charge. |
SCIPLAY CORPORATION |
|||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
(Unaudited, in millions, except par value) |
|||||||
|
As of December 31, |
||||||
|
2021 |
|
2020 |
||||
ASSETS |
|
|
|
||||
Cash and cash equivalents |
$ |
364.4 |
|
$ |
268.9 |
||
Accounts receivable, net (allowance for doubtful accounts of $—) |
|
39.6 |
|
|
|
36.6 |
|
Prepaid expenses and other current assets |
|
6.4 |
|
|
|
5.9 |
|
Total current assets |
|
410.4 |
|
|
|
311.4 |
|
Property and equipment, net |
|
3.5 |
|
|
|
4.4 |
|
Operating lease right-of-use assets |
|
6.8 |
|
|
|
8.5 |
|
Goodwill |
|
131.1 |
|
|
|
129.8 |
|
Intangible assets and software, net |
|
49.6 |
|
|
|
30.3 |
|
Deferred income taxes |
|
78.5 |
|
|
|
82.5 |
|
Other assets |
|
1.7 |
|
|
|
1.9 |
|
Total assets |
$ |
681.6 |
|
|
$ |
568.8 |
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
Accounts payable |
$ |
20.0 |
|
|
$ |
23.2 |
|
Accrued liabilities |
|
50.2 |
|
|
|
22.9 |
|
Due to affiliate |
|
1.6 |
|
|
|
5.5 |
|
Total current liabilities |
|
71.8 |
|
|
|
51.6 |
|
Operating lease liabilities |
|
5.4 |
|
|
|
7.5 |
|
Liabilities under TRA |
|
64.7 |
|
|
|
68.5 |
|
Other long-term liabilities |
|
14.7 |
|
|
|
5.7 |
|
Total liabilities |
|
156.6 |
|
|
|
133.3 |
|
Total stockholders’ equity(1) |
|
525.0 |
|
|
|
435.5 |
|
Total liabilities and stockholders’ equity |
$ |
681.6 |
|
|
$ |
568.8 |
|
|
|
|
|
||||
(1) Includes $426.4 million and $355.5 million in Noncontrolling interest as of December 31, 2021 and December 31, 2020, respectively. |
SCIPLAY CORPORATION |
|||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||||||||||
(Unaudited, in millions) |
|||||||||||||||
|
Three Months Ended |
|
Years Ended |
||||||||||||
|
December 31, |
|
December 31, |
||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Net cash provided by operating activities |
|
37.5 |
|
|
|
61.5 |
|
|
$ |
163.8 |
|
|
$ |
193.4 |
|
Net cash used in investing activities |
|
(1.1 |
) |
|
|
(2.1 |
) |
|
|
(14.8 |
) |
|
|
(19.7 |
) |
Net cash used in financing activities |
|
(2.9 |
) |
|
|
(1.4 |
) |
|
|
(53.6 |
) |
|
|
(16.0 |
) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
0.1 |
|
|
|
0.6 |
|
|
|
0.1 |
|
|
|
0.6 |
|
Increase in cash, cash equivalents and restricted cash |
|
33.6 |
|
|
|
58.6 |
|
|
|
95.5 |
|
|
|
158.3 |
|
Cash, cash equivalents and restricted cash, beginning of period |
|
330.8 |
|
|
|
210.3 |
|
|
|
268.9 |
|
|
|
110.6 |
|
Cash, cash equivalents and restricted cash, end of period |
$ |
364.4 |
|
|
$ |
268.9 |
|
|
$ |
364.4 |
|
|
$ |
268.9 |
|
|
|
|
|
|
|
|
|
||||||||
Supplemental cash flow information: |
|
|
|
|
|
|
|
||||||||
Cash paid for income taxes |
$ |
0.3 |
|
|
$ |
0.5 |
|
|
$ |
4.8 |
|
|
$ |
2.0 |
|
Cash paid for contingent consideration included in operating activities |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4.0 |
|
Non-cash investing and financing transactions: |
|
|
|
|
|
|
|
||||||||
Non-Cash additions to intangible assets related to license agreements |
|
— |
|
|
|
0.7 |
|
|
|
14.1 |
|
|
|
1.8 |
|
SCIPLAY CORPORATION |
|||||||||||||||
RECONCILIATION OF NET INCOME ATTRIBUTABLE TO SCIPLAY TO AEBITDA |
|||||||||||||||
(Unaudited, in millions) |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
December 31, |
|
December 31, |
||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Net income attributable to SciPlay |
$ |
2.2 |
|
|
$ |
4.4 |
|
|
$ |
19.3 |
|
|
$ |
20.9 |
|
Net income attributable to noncontrolling interest |
|
10.0 |
|
|
|
26.6 |
|
|
|
105.7 |
|
|
|
125.1 |
|
Net income |
|
12.2 |
|
|
|
31.0 |
|
|
|
125.0 |
|
|
|
146.0 |
|
Restructuring and other(1) |
|
28.4 |
|
|
|
0.3 |
|
|
|
31.5 |
|
|
|
2.0 |
|
Depreciation and amortization |
|
4.2 |
|
|
|
2.8 |
|
|
|
15.5 |
|
|
|
9.7 |
|
Income tax expense |
|
0.2 |
|
|
|
2.5 |
|
|
|
5.7 |
|
|
|
8.4 |
|
Stock-based compensation |
|
1.8 |
|
|
|
6.9 |
|
|
|
7.2 |
|
|
|
22.0 |
|
Other expense, net |
|
0.6 |
|
|
|
1.5 |
|
|
|
1.0 |
|
|
|
0.6 |
|
AEBITDA |
$ |
47.4 |
|
|
$ |
45.0 |
|
|
$ |
185.9 |
|
|
$ |
188.7 |
|
Revenue |
$ |
154.4 |
|
|
$ |
147.1 |
|
|
$ |
606.1 |
|
|
$ |
582.2 |
|
Net income margin (Net income/Revenue) |
|
7.9 |
% |
|
|
21.1 |
% |
|
|
20.6 |
% |
|
|
25.1 |
% |
AEBITDA margin (AEBITDA/Revenue) |
|
30.7 |
% |
|
|
30.6 |
% |
|
|
30.7 |
% |
|
|
32.4 |
% |
|
|
|
|
|
|
|
|
||||||||
(1) Refer to AEBITDA definition for a description of items included in restructuring and other. For 2021 periods, restructuring and other includes a $24.5 million legal settlement charge. |
RECONCILIATION OF NET INCOME MARGIN |
||||||||
TO AEBITDA MARGIN |
||||||||
(Unaudited) |
||||||||
|
|
Three Months Ended |
|
Year Ended |
||||
|
|
December 31, |
|
December 31, |
||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Net income margin (Net income/Revenue) |
|
7.9% |
|
21.1% |
|
20.6% |
|
25.1% |
Restructuring and other |
|
18.4% |
|
0.2% |
|
5.2% |
|
0.3% |
Depreciation and amortization |
|
2.7% |
|
1.9% |
|
2.6% |
|
1.7% |
Income tax expense |
|
0.1% |
|
1.7% |
|
0.9% |
|
1.4% |
Stock-based compensation |
|
1.2% |
|
4.8% |
|
1.2% |
|
3.7% |
Other expense, net |
|
0.4% |
|
0.9% |
|
0.2% |
|
0.2% |
AEBITDA margin (AEBITDA/Revenue) |
|
30.7% |
|
30.6% |
|
30.7% |
|
32.4% |
Forward-Looking Statements
Throughout this press release, 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. 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:
Additional information regarding risks and uncertainties and other factors that could cause actual results to differ materially from those contemplated in forward-looking statements is included from time to time in our filings with the SEC, including the Company’s current reports on Form 8-K and quarterly reports on Form 10-Q. Additional information will also be set forth in our annual report on Form 10-K for the year ended December 31, 2021 (including under the headings “Forward-Looking Statements” and “Risk Factors”). Forward-looking statements speak only as of the date they are made and, except for our ongoing obligations under the U.S. federal securities laws, we undertake no and expressly disclaim any obligation to publicly update any forward-looking statements whether as a result of new information, future events or otherwise.
This press release may contain references to industry market data and certain industry forecasts. Industry market data and industry forecasts are obtained from publicly available information and industry publications. Industry publications generally state that the information contained therein has been obtained from sources believed to be reliable, but that the accuracy and completeness of that information is not guaranteed.
Contacts
Media Relations
Christina Karas +1 702-532-7986
Vice President, Corporate Communications
media@scientificgames.com
Investor Relations
Daniel O’Quinn +1 512-787-4937
Interim Chief Financial Officer
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