Scientific Games reports cost savings after workforce cuts
Scientific Games reported “a strong liquidity position” after cutting more than $100 million in quarterly costs — half of which came from workforce cost reductions.
The Las Vegas-based slot machine manufacturing company said it was optimistic it would be in a good position when the gaming industry begins to recover from the nationwide casino shutdowns, according to a Tuesday news release.
“We continue to reduce our costs so that that we can position our Company to be an even stronger competitor as the industry begins to recover,” CEO Barry Cottle said in the statement. “The diversity of our business, serving customers across the industry and around the globe, gives us unique strength in these challenging times.”
Scientific Games expects the workforce reductions — including hour and pay reductions and furloughs — to result in more than $50 million in savings during the second quarter and said capital expenditures in the second quarter should drop by about $50 million.
While it had previously said it would spend between $300 million and $330 million this year, Scientific Games has since lowered its capital expenditure estimates to $210 million to $240 million. Reductions of other operating expenses should lead to additional savings.
The company had about $200 million in cash as of the end of March, and borrowed another $480 million under its revolving credit facilities, which should allow it “to take advantage of opportunities to strengthen the business as the industry begins to recover,” according to the statement.
The company has created a Hardship Relief Fund that can offer short-term assistance for furloughed employees and their immediate families who face “unexpected and onerous personal, family, or living expenses as a result of the COVID-19 crisis.”
Contact Bailey Schulz at bschulz@reviewjournal.com or 702-383-0233. Follow @bailey_schulz on Twitter.
