Scientific Games’ cost-saving measures are expected to save around $100 million in the second quarter of the year, which it says will assure a strong liquidity position.
On Tuesday, the company recapped a number of its cost-savings and liquidity-strengthening measures put in place since the start of the downturn, sparked by the coronavirus outbreak.
“The workforce cost reductions implemented by the Company, including hour and pay reductions, furloughs, and reductions in force, are expected to result in more than $50 million in cost savings in Q2, while capital expenditures in Q2 are expected to be approximately $50 million lower than previously planned,” said the company.
Scientific Games also noted that it has drawn approximately $480 million under its Revolving Credit Facilities to give it maximum flexibility during these difficult times.
The company said it believes the borrowings combined with cash on hand would “allow it to take advantage of opportunities to strengthen the business as the industry begins to recover.”
For 2020, Scientific games said it now anticipates capital expenditures to be in the range of $210-240 million, as compared to the $300-330 million in pre-COVID-19 estimates.
The company said it is planning additional cost-saving initiatives, including reductions in other operating expenses, that will lead to further potential savings.
Scientific Games CEO Barry Cottle said: “We continue to reduce our costs so that we can position our Company to be an even stronger competitor as the industry begins to recover. We remain committed to providing our best in class products and services to our customers across lottery, iGaming, sports betting and land-based casinos while innovating for the future. The diversity of our business, serving customers across the industry and around the globe, gives us unique strength in these challenging times.”
The company began instituting cost-savings measures last month to ensure stability for its team members and protect the operations of the company.
The measures will include workforce hour and pay reductions to preserve as many jobs as possible and furloughs for those support roles that have seen a decrease in industry work, it said in a statement on Monday.
Executive leadership has taken a 50 percent voluntary salary reduction, which chief executive Barry Cottle has taken a 100 percent reduction in pay.