- First Quarter Revenue increased 166% to $60.6 million from $22.8
million in prior year
- Full recovery in Gaming and Leisure Revenue, as business
returned to pre-COVID-19 levels
- Virtual Sports Revenue increased 84% year-over-year for a
record quarter
- First Quarter Net Income increased to $1.5 million from a Net Loss of $16.7 million in prior year
- First Quarter Adjusted
EBITDA1 increased 418% to $20.1 million from $3.9
million in prior year
- Based on long-term outlook of the Company, board of
directors approves $25 million share
repurchase program
- Significant online market expansion with Interactive
launching in Connecticut (first
quarter) and both Interactive and Virtual Sports launching in
Ontario (second
quarter)
- Secured 720-Unit Valor™ terminal order in Canada
NEW
YORK, May 10, 2022 /PRNewswire/ -- Inspired
Entertainment, Inc. ("Inspired" or the "Company") (NASDAQ: INSE), a
leading B2B provider of gaming content, systems and solutions,
today reported unaudited financial results for the three-month
period ended March 31, 2022. The
results reflect a strong start to the year, supported by the
recovery in the Gaming and Leisure segments and the growth in the
Company's aggregate online business.
- Total Revenue increased 166% to $60.6 million in the three months ended
March 31, 2022, on a reported
basis2, compared to $22.8
million in the prior-year period when the Company's
worldwide land-based businesses were almost entirely closed due to
the COVID-19 global pandemic ("COVID-19 Closures").
- Gaming Revenue increased 123% year-over-year to
$24.1 million and Leisure
Revenue increased to $19.6
million, from $0.5 million in
the prior year, as recurring revenues returned to pre-COVID-19
performance levels and Leisure benefited from an extended holiday
season.
- Virtual Sports Revenue increased 84% year-over-year to a
record $11.6 million, as retail
customers returned for the whole period and Online Virtual Sports
delivered a 54% increase.
- Interactive Revenue growth was impacted in the quarter
by a re-deployment of resources to new market launches. Following
these launches and new content introductions toward the end of the
quarter, growth trends resumed in the second quarter to date.
- Net Income improved to $1.5
million in first quarter 2022, or $0.06 per basic share and $0.05 per diluted share, from a net loss of
$16.7 million, or $(0.74) per basic and diluted share, in the
prior-year period.
- Adjusted EBITDA increased 418% to $20.1 million in first quarter 2022 from
$3.9 million in the prior-year
period.
- Adjusted EBITDA Margin1 improved to
33% in first quarter 2022 compared to 17% in first quarter
2021.
Summary of
Consolidated First Quarter 2022 Financial Results
(unaudited)
|
|
|
Three
Months
|
|
|
Functional
|
|
|
Ended
|
|
Currency
|
Currency
|
|
|
March
31
|
Change
|
Movement
|
Growth
|
|
|
20223
|
20213
|
(%)
|
2022
|
(%)
|
(In $ millions,
except per share figures)
|
|
|
|
|
|
|
GAAP
Measures:
|
|
|
|
|
|
|
Revenue
|
|
$
60.6
|
$
22.8
|
166%
|
$ (1.7)
|
173%
|
Net operating income
(loss)
|
|
$ 6.9
|
$ (12.2)
|
NM2
|
$ (0.2)
|
NM2
|
Net income
(loss)
|
|
$ 1.5
|
$
(16.7)
|
NM2
|
$ 2.9
|
NM2
|
Net income (loss) per
basic share
|
|
$ 0.06
|
$ (0.74)
|
NM2
|
|
|
Net income (loss) per
diluted share
|
|
$ 0.05
|
$ (
0.74)
|
NM2
|
|
|
Non-GAAP
Financial Measures1:
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
20.1
|
$
3.9
|
418%
|
$ (0.5)
|
430%
|
|
|
|
|
|
|
|
1Reconciliation to GAAP shown
below.
|
2Percentage
change is not meaningful.
|
3 Results
included payments from UK Licensed Betting Operator ("LBO")
customers related to our contractual revenue share
of their value-added tax ("VAT") rebate. VAT-related revenue and
income was $0.9 million for the three months ended March
31, 2022 and $3.1 million for the three months ended March 31,
2021.
|
"We have had a strong start to the year, generating
year-over-year revenue growth across our business units, while also
laying the groundwork for the long-term growth and profitability of
our business," said Lorne Weil,
Executive Chairman of Inspired. "Our Gaming and Leisure results
were particularly strong, demonstrating the full recovery of our
land-based customers, as Gaming recurring revenues returned to
pre-COVID-19 levels and Leisure benefited from an extended holiday
season. Our Virtual Sports experienced a record quarter with an
impressive 54% year-over-year increase in Online Virtuals on
difficult comparatives."
Weil continued, "We continue to be encouraged by the trends and
demand in our online and land-based businesses and remain extremely
excited about our North American strategic growth initiatives. In
the first quarter, we laid the groundwork to launch iGaming and
Virtual Sports in multiple new markets, including Connecticut (first quarter) and Ontario (second quarter). While this focus
resulted in a slight delay in new content introductions, we
believe this investment will lay the foundation for significant
future growth, beginning in the current quarter as content has
resumed its previous pace of introduction and we have seen a
corresponding impact on results. Our Virtual Sports business
continues to establish record performance with retail venues
returning to operation and online well ahead of a year ago, as
Ontario is proving to be our best
North American market to date for Virtual Sports. The North
American online market remains a tremendous opportunity for
Inspired, and we expect to continue to progress on the same growth
trajectory with the continued addition of new customers and markets
in the second half of the year. In addition, our Valor™ terminal
consistently impresses in North
America as was evident in our recent 720-unit Valor terminal
award from Western Canada Lottery Corporation."
"We are pleased with the overall progress of our business and
are confident in our long-term growth prospects. Our higher margin
Virtual Sports and Interactive segments delivered 48% of our
combined segment Adjusted EBITDA3, in a strong retail
quarter, and we believe this will continue to be a tremendous
driver of revenue growth, margin expansion and asset utilization.
With our enlarged digital business, growing position in
North America and our ongoing
focus on delivering superior content, we believe our business
remains in good standing for the future," Weil concluded.
Summary of First
Quarter 2022 Segment Financial Results (unaudited)
|
|
|
Revenue
|
|
|
|
Adjusted
EBITDA1
|
|
|
|
Adjusted EBITDA
Margin1
|
|
(In $
millions)
|
|
Q1
20223
|
|
Q1
20213
|
|
%
|
|
Q1
20223
|
|
Q1
20213
|
|
%
|
|
Q1
20223
|
|
Q1
20213
|
|
Segments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interactive
|
|
$5.3
|
|
$5.2
|
|
2%
|
|
$2.9
|
|
$3.4
|
|
(15%)
|
|
54%
|
|
65%
|
|
Virtual
Sports
|
|
11.6
|
|
6.3
|
|
84%
|
|
9.4
|
|
4.9
|
|
90%
|
|
81%
|
|
78%
|
|
Leisure
|
|
19.6
|
|
0.5
|
|
NM2
|
|
2.5
|
|
(3.4)
|
|
NM2
|
|
13%
|
|
NM2
|
|
Gaming (ex
VAT)3
|
|
23.2
|
|
7.7
|
|
202%
|
|
9.9
|
|
0.1
|
|
NM2
|
|
43%
|
|
1%
|
|
Corporate
|
|
-
|
|
-
|
|
-
|
|
(5.5)
|
|
(4.2)
|
|
(30%)
|
|
-
|
|
-
|
|
Total
Company
(ex
VAT)3
|
|
$59.6
|
|
$19.7
|
|
203%
|
|
$19.2
|
|
$0.8
|
|
NM2
|
|
32%
|
|
4%
|
|
Gaming
VAT3
|
|
0.9
|
|
3.1
|
|
(70%)
|
|
0.9
|
|
3.1
|
|
(70%)
|
|
100%
|
|
99%
|
|
Total Company
(including VAT)3
|
|
$60.6
|
|
$22.8
|
|
166%
|
|
$20.1
|
|
$3.9
|
|
418%
|
|
33%
|
|
17%
|
|
1
Reconciliation to US GAAP shown below
|
|
2 Percentage
change is not meaningful
|
|
3
VAT-related revenue and income was $0.9 million for the three
months ended March 31, 2022 and $3.1 million for the three months
ended March 31, 2021.
|
|
Stewart Baker, Executive Vice
President and Chief Financial Officer, stated, "Based on the
long-term outlook of the Company, along with the strength of our
balance sheet, today our board of directors has approved a share
repurchase program that will allow us to opportunistically buy back
up to $25 million of our common stock
at the same time as we continue to invest in the growth of our
business. We believe we are in a strong financial position, and
this repurchase authorization could provide an attractive return on
capital. We will continue to be disciplined in our approach
to capital deployment, while also focused on executing on our
strategic plan to deliver profitable growth, increase cash flows
and maximize shareholder value."
Recent Highlights (as of May 10,
2022)
Corporate
- Share Repurchase Program – The Inspired board of
directors today approved a share repurchase program to purchase up
to $25 million of our common
stock. Under the program, Inspired may purchase shares on a
discretionary basis from time to time through open market
purchases, privately negotiated transactions or other means,
including through Rule 10b5-1 trading plans under the Securities
Exchange Act of 1934, as amended. The timing and amount of future
repurchases will be subject to the discretion of Inspired based on
market conditions and other opportunities that Inspired may have
for the use or investment of its cash balances. The share
repurchase program does not obligate the Company to repurchase any
specific number of shares and it may be modified, suspended or
terminated at any time by the board of directors without prior
notice.
Interactive
- New Customers – Interactive content was launched
with eight new operator brands during first quarter 2022, including
Superbet in Romania, DraftKings in
Connecticut, Goldbet in
Italy and Rush Street in Michigan.
- New Jurisdictions – In first quarter 2022, our
Interactive games went live with DraftKings in Connecticut. Subsequent to the end of the
quarter, we launched our Interactive content in Ontario and are now live with eight operator
brands. Ontario is Canada's largest province with a population of
14 million people, which is more substantial than any of Inspired's
North American jurisdictions.
- New Content – Eight new games were launched
during first quarter 2022 across the estate, including Reel
LinKing™ and Gold Cash Big Spins, which went live late in the
quarter and should have a strong impact in second quarter
2022.
Virtual Sports
- Retail and Online Virtual Sports Agreements –
During first quarter 2022, Inspired signed a contract with
Scientific Games for content to be licensed to the Netherlands
Lottery, as well as new contracts with Goldbet in Italy, Playport in Minnesota, Kansas and Wisconsin and Leisure Sports in Sri Lanka. Contract term extensions were
signed with Sisal in Italy, Niké,
spol. S r.o in Slovakia and a
license for new territories with Kaizen Gaming. Entain signed an
extension to add multiple new channels of Virtual Sports, including
Women's Soccer, to Ladbrokes and Coral brands.
- Online Virtual Plug & Play™ ("VPP") Launches
– During first quarter 2022, Inspired launched VPP with Napoleon in
Belgium and Mozzartbet in
Serbia.
- New Products – Sisal launched Multi-Stream
Matchday™ in Italy, which is a new
product that allows eight simultaneous soccer games to be streamed
at the same time.
- New Retail Deployment – Fortuna expanded their
self-service betting terminals (SSBT) into Croatia with an initial 200 units in
January 2022 and another 1,000 to
follow in the year.
Gaming
- 36 Valor™ Sales in Illinois – This sale of 36 units
brings total Valor™ terminal sales in Illinois since launch to 764. The Company has
commitments to sell 61 additional units in Illinois in second quarter 2022.
- 720 Valor Sales to WCLC – Subsequent to the end
of the quarter, Inspired secured its second machine order from
Western Canada Lottery Corporation for a further 720 Valor™
terminals expected to be delivered in fourth quarter 2022. This
sale of 720 units brings total terminal sales in Saskatchewan to 820.
- $0.9 Million Payment on VAT
Tax Rebate – Inspired received $0.9 million from one of our customers during
first quarter 2022 related to our contractual revenue share of the
customer's UK VAT rebate. In the prior-year period, Inspired
received $3.1 million in VAT-related
revenue and income.
- Addition of Dominican Republic Lottery System –
The Company's newly acquired lottery systems contract in the
Dominican Republic generated
$1.3 million of revenue in first
quarter 2022.
Leisure
- New Pubs Content – Centurion™, Gold Cash
Freespins™ and Party Time Pub Addition™ were deployed across the
pub estate during first quarter 2022, demonstrating the commitment
to leverage Inspired's successful game portfolio for the pub
sector.
- Holiday Parks – During first quarter 2022, we
added five new parks to our holiday parks portfolio and benefited
from some parks opening early for the February half-term school
holiday.
Overview of First Quarter 2022 Results Versus First Quarter
2021 on a Reported Basis
Total Revenue increased 166% year-over-year to
$60.6 million in the three months
ended March 31, 2022, on a reported
basis, compared to $22.8 million in
the prior-year period reflecting the strong recovery in the Gaming
and Leisure segments following customers' retail venues reopening
after COVID-19 lockdowns and continued growth in the Virtual Sports
segment. This was partly offset by $1.7 million in currency movements.
Interactive Revenue grew 2% year-over-year to
$5.3 million. Growth was impacted in
first quarter 2022 by a re-deployment of resources to new market
launches. Following these launches and new content introductions
toward the end of the quarter, growth trends resumed in the second
quarter to date. Over the two-year period, Interactive revenue
increased 149% from $2.1 million in
first quarter 2020. Interactive segment operating
income was $2.1 million,
primarily due to the increase in cost of sales and third-party
platform provider costs as well as an increase in SG&A expenses
driven by the investment in the segment to help drive
revenues. Interactive Adjusted EBITDA was $2.9 million, down from $3.4 million in the prior-year period, and an
increase of 291% from first quarter 2020 Adjusted EBITDA of
$0.7 million.
Virtual Sports Revenue increased to a record
$11.6 million in first quarter 2022,
from $6.3 million in the prior-year
period, primarily due to a $3.0
million increase in Online Virtuals, driven by growth from
existing customers, and an increase in recurring Retail Virtuals of
$2.4 million due to retail venues
being open for the whole of the period compared to the prior-year
period. Virtual Sports Segment Operating Income was
$8.7 million, which compares
favorably to $3.7 million in first
quarter 2021 primarily due to the increase in revenue, partly
offset by the increase in Cost of Sales and SG&A expenses
driven by increased staff costs, as staff returned from furlough,
and technology costs driven by the growth of Online Virtuals.
Virtual Sports Adjusted EBITDA increased to
$9.4 million from $4.9 million in first quarter 2021.
Gaming Service Revenue increased $15.5 million year-over-year due to Inspired's
retail recurring revenues returning to pre-COVID performance levels
in first quarter 2022 and the addition of the Company's newly
acquired lottery systems contract in the Dominican Republic ($1.3 million), partly offset by a $2.2 million decrease in VAT-related
revenue. Gaming Product Revenue decreased by
$2.2 million driven by $1.7 million of Valor terminal sales in
Canada in the prior-year period
and $0.5 million of lower sales in
Italy. Gaming Segment Net
Income for first quarter 2022 increased to $6.7 million from a loss of $3.6 million in the prior-year period due to an
increase in service revenue, a $2.0
million decrease in depreciation and amortization from
software being fully amortized and a $0.9
million gain from the sale of part of the Italian VLT
operations. This was partly offset by an increase in Cost of Sales
of $2.9 million and an increase of
$2.7 million in SG&A as all staff
returned from furlough. Gaming Adjusted
EBITDA increased to $10.8
million from $3.2 million in
first quarter 2021.
Leisure Revenue increased to $19.6 million in first
quarter 2022 from $0.5 million in
first quarter 2021 when all customers' retail venues were
closed. Revenue from pubs, holiday parks and motorway
services was higher as a result of increased travel within the UK,
which we believe resulted in (i) a significant number of holiday
park locations opening early for the February half-term school
holiday and (ii) increasing volume of road transport, which lead to
a strong first quarter for our MSA segments. Revenue generated in
first quarter 2022 from holiday park customers was $3.3 million, MSA customers was $4.3 million and pub customers was $9.3 million. There was no revenue from these
segments in the prior-year period. Digitization of the pub estate
has continued with further digital machines placed in the quarter
taking digital penetration to 79%. Leisure Segment Operating
Loss improved to $1.4 million
from a loss of $7.7 million.
Leisure Adjusted EBITDA improved to $2.5 million from a loss of $3.4 million in first quarter 2021.
Total Company Selling, General and Administrative
expenses increased to $29.6
million from $15.2 million in
the prior-year period. This $14.4
million increase was driven by all staff returning from
furlough and return to full pay for the whole period ($12.2 million), partly offset by higher labor
capitalization ($1.7 million), which
increased for the same reasons, and favorable currency movements of
$0.7 million.
Net Income during the quarter increased to
$1.5 million compared to a net loss
of $16.7 million in the prior-year
period primarily due to the increase in net operating income
($19.1 million), the change in fair
value of warrant liability in the prior-year period ($3.0 million) and a decrease in net interest
expense ($2.1 million).
Total Company Net Cash Provided by Operating Activities Less
Capital Expenditures during the quarter was an outflow of
$5.8 million, due to increased
inventory levels and higher spend on property and equipment and
capital software. This was an improvement from an outflow of
$6.8 million in the prior-year
period.
Non-GAAP Financial Measures
We use certain non-GAAP financial measures, including EBITDA and
Adjusted EBITDA, to analyze our operating performance. We use these
financial measures to manage our business on a day-to-day basis. We
believe that these measures are also commonly used in our industry
to measure performance. For these reasons, we believe that these
non-GAAP financial measures provide expanded insight into our
business, in addition to standard U.S. GAAP financial measures.
There are no specific rules or regulations for defining and using
non-GAAP financial measures, and as a result the measures we use
may not be comparable to measures used by other companies, even if
they have similar labels. The presentation of non-GAAP financial
information should not be considered in isolation from, or as a
substitute for, or superior to, financial information prepared and
presented in accordance with U.S. GAAP. You should consider our
non-GAAP financial measures in conjunction with our U.S. GAAP
financial measures.
We define our non-GAAP financial measures as follows:
EBITDA is defined as net loss excluding
depreciation and amortization, interest expense, interest income
and income tax expense.
Adjusted EBITDA is defined as net loss
excluding depreciation and amortization, interest expense, interest
income and income tax expense, and other additional exclusions and
adjustments. Such additional excluded amounts include
stock-based compensation U.S. GAAP charges where the associated
liability is expected to be settled in stock, and changes in the
value of earnout liabilities and income and expenditure in relation
to legacy portions of the business (being those portions where
trading no longer occurs) including closed defined benefit pension
schemes. Additional adjustments are made for items considered
outside the normal course of business, including (1) restructuring
costs, which include charges attributable to employee severance,
management changes, restructuring, dual running costs, costs
related to facility closures and integration costs, (2) merger and
acquisition costs and (3) gains or losses not in the ordinary
course of business. This does not include any adjustments related
to COVID-19.
We believe Adjusted EBITDA, when considered along with other
performance measures, is a particularly useful performance measure,
because it focuses on certain operating drivers of the business,
including sales growth, operating costs, selling and administrative
expense and other operating income and expense. We believe Adjusted
EBITDA can provide a more complete understanding of our operating
results and the trends to which we are subject, and an enhanced
overall understanding of our financial performance and prospects
for the future. Adjusted EBITDA is not intended to be a measure of
liquidity or cash flows from operations or a measure comparable to
net income or loss, because it does not take into account certain
aspects of our operating performance (for example, it excludes
non-recurring gains and losses which are not deemed to be a normal
part of underlying business activities). Our use of Adjusted
EBITDA may not be comparable to the use by other companies of
similarly termed measures. Management compensates for these
limitations by using Adjusted EBITDA as only one of several
measures for evaluating our operating performance. In addition,
capital expenditures, which affect depreciation and amortization,
interest expense, and income tax benefit (expense), are evaluated
separately by management.
Functional Currency at Constant rate. Currency
impacts shown have been calculated as the current-period average
GBP:USD rate less the equivalent average rate in the prior period,
multiplied by the current period amount in our functional currency
(GBP). The remaining difference, referred to as functional currency
at constant rate, is calculated as the difference in our functional
currency, multiplied by the prior-period average GBP: USD rate, as
a proxy for functional currency at constant rate movement.
Currency Movement represents the difference
between the results in our reporting currency (USD) and the results
on a functional currency at constant rate basis.
Reconciliations from net loss, as shown in our Consolidated
Statements of Operations and Comprehensive Loss, to Adjusted EBITDA
are shown below.
Conference Call and Webcast
Inspired management will host a conference call and simultaneous
webcast at 8:00 a.m. ET /1:00 p.m. UK on Wednesday,
May 11, 2022 to discuss the Company's financial results and
general business trends.
Telephone: The dial-in number to access
the call live is 1-844-746-0725 (US) or 1-412-317-5264
(International). Participants should ask to be joined into the
Inspired Entertainment call.
Webcast: A live audio-only webcast of the
call can be accessed through the "Events and Presentations" page of
the Company's website at www.inseinc.com under the Investors
link. Please follow the registration prompts.
Replay of the call: A telephone replay of the
call will be available one hour after the conclusion of the call
until May 18, 2022 by dialing
1-877-344-7529 (US) or 1-412-317-0088 (International), via replay
access code 9945461. A replay of the webcast will also be available
on the Company's website at www.inseinc.com.
About Inspired Entertainment, Inc.
Inspired offers an expanding portfolio of content, technology,
hardware and services for regulated gaming, betting, lottery,
social and leisure operators across retail and mobile
channels around the world. The Company's gaming, virtual
sports, interactive and leisure products appeal to a wide variety
of players, creating new opportunities for operators to grow their
revenue. The Company operates in approximately 35
jurisdictions worldwide, supplying gaming systems with
associated terminals and content for approximately 50,000 gaming
machines located in betting shops, pubs, gaming halls and other
route operations; virtual sports products through more than 32,000
retail venues and various online websites; interactive games for
170+ websites; and a variety of amusement entertainment solutions
with a total installed base of more than 16,000
terminals. Additional information can be found
at www.inseinc.com.
Forward-Looking Statements
This news release contains "forward-looking statements" within
the meaning of the "safe harbor" provisions of the U.S. Private
Securities Litigation Reform Act of 1995, including, but not
limited to, statements regarding our ability to bring certain of
our products to customers in the various markets in which we
operate and execute on our strategic plan, statements regarding
expectations with respect to potential new customers and statements
regarding our anticipated financial performance. Forward-looking
statements may be identified by the use of words such as
"anticipate," "believe," "continue," "expect," "estimate," "plan,"
"will," "would" and "project" and other similar expressions that
indicate future events or trends or are not statements of
historical matters. These statements are based on Inspired
management's current expectations and beliefs, as well as a number
of assumptions concerning future events.
Forward-looking statements are subject to known and unknown
risks, uncertainties, assumptions and other important factors, many
of which are outside of Inspired's control and all of which could
cause actual results to differ materially from the results
discussed in the forward-looking statements. Accordingly,
forward-looking statements should not be relied upon as
representing Inspired's views as of any subsequent date. You are
advised to review carefully the "Risk Factors" section of
Inspired's annual report on Form 10-K for the fiscal year ended
December 31, 2021, which is
available, free of charge, on the U.S. Securities and Exchange
Commission's website at www.sec.gov. Inspired does not
undertake any obligation to update forward-looking statements to
reflect events or circumstances after the date they were made,
whether as a result of new information, future events or otherwise,
except as required by law.
Contact:
For Investors
IR@inseinc.com
+1 646 565-6938
For Press and Sales
inspiredsales@inseinc.com
1 "Adjusted EBITDA" and "Adjusted EBITDA 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 table.
Adjusted EBITDA Margin is calculated as a percent of Revenue.
2 Reported income statement results assume GBP:USD
exchange rate was 1.34 for the three months ended March 31, 2022 and GBP
1.38: USD 1.00 for the three
months ended March 31, 2021.
3 Includes segment level Adjusted EBITDA
(Interactive + Virtual Sports + Leisure + Gaming) and excludes
Corporate.
INSPIRED
ENTERTAINMENT, INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED BALANCE SHEETS
(in millions, except
share data)
|
|
|
|
|
|
|
|
|
|
|
March 31,
2022
|
|
|
December 31,
2021
|
|
|
|
(Unaudited)
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Cash
|
|
$
|
40.8
|
|
|
$
|
47.8
|
|
Accounts receivable,
net
|
|
|
33.0
|
|
|
|
31.7
|
|
Inventory,
net
|
|
|
28.9
|
|
|
|
16.9
|
|
Prepaid expenses and
other current assets
|
|
|
28.6
|
|
|
|
29.7
|
|
Corporate tax and other
current taxes receivable
|
|
|
0.6
|
|
|
|
0.3
|
|
Total current
assets
|
|
|
131.9
|
|
|
|
126.4
|
|
|
|
|
|
|
|
|
|
|
Property and equipment,
net
|
|
|
48.5
|
|
|
|
50.9
|
|
Software development
costs, net
|
|
|
36.1
|
|
|
|
35.6
|
|
Other acquired
intangible assets subject to amortization, net
|
|
|
17.2
|
|
|
|
18.9
|
|
Goodwill
|
|
|
80.7
|
|
|
|
82.7
|
|
Operating lease right
of use asset
|
|
|
9.3
|
|
|
|
10.1
|
|
Other assets
|
|
|
8.5
|
|
|
|
7.1
|
|
Total
assets
|
|
$
|
332.2
|
|
|
$
|
331.7
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Deficit
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
24.3
|
|
|
$
|
20.8
|
|
Accrued
expenses
|
|
|
38.1
|
|
|
|
32.6
|
|
Corporate tax and other
current taxes payable
|
|
|
5.3
|
|
|
|
12.3
|
|
Deferred revenue,
current
|
|
|
7.2
|
|
|
|
7.7
|
|
Operating lease
liabilities
|
|
|
3.0
|
|
|
|
3.3
|
|
Other current
liabilities
|
|
|
4.0
|
|
|
|
3.9
|
|
Current portion of
finance lease liabilities
|
|
|
0.8
|
|
|
|
0.9
|
|
Total current
liabilities
|
|
|
82.7
|
|
|
|
81.5
|
|
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
302.2
|
|
|
|
309.0
|
|
Finance lease
liabilities, net of current portion
|
|
|
1.9
|
|
|
|
1.9
|
|
Deferred revenue, net
of current portion
|
|
|
6.4
|
|
|
|
6.8
|
|
Operating lease
liabilities
|
|
|
6.9
|
|
|
|
7.4
|
|
Other long-term
liabilities
|
|
|
2.6
|
|
|
|
3.1
|
|
Total
liabilities
|
|
|
402.7
|
|
|
|
409.7
|
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
deficit
|
|
|
|
|
|
|
|
|
Preferred stock;
$0.0001 par value; 1,000,000 shares authorized
|
|
|
—
|
|
|
|
—
|
|
Common stock; $0.0001
par value; 49,000,000 shares authorized; 26,880,622
shares and 26,433,562 shares issued and outstanding at March 31,
2022 and
December 31, 2021, respectively
|
|
|
—
|
|
|
|
—
|
|
Additional paid in
capital
|
|
|
375.0
|
|
|
|
372.3
|
|
Accumulated other
comprehensive income
|
|
|
47.1
|
|
|
|
43.8
|
|
Accumulated
deficit
|
|
|
(492.6)
|
|
|
|
(494.1)
|
|
Total stockholders'
deficit
|
|
|
(70.5)
|
|
|
|
(78.0)
|
|
Total liabilities
and stockholders' deficit
|
|
$
|
332.2
|
|
|
$
|
331.7
|
|
INSPIRED
ENTERTAINMENT, INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(LOSS)
(in millions, except
share data)
(Unaudited)
|
|
|
|
|
|
|
|
Three Months
Ended
March
31,
|
|
|
|
2022
|
|
|
2021
|
|
Revenue:
|
|
|
|
|
|
|
|
|
Service
|
|
$
|
57.0
|
|
|
$
|
17.1
|
|
Product
sales
|
|
|
3.6
|
|
|
|
5.7
|
|
Total
revenue
|
|
|
60.6
|
|
|
|
22.8
|
|
|
|
|
|
|
|
|
|
|
Cost of sales,
excluding depreciation and amortization:
|
|
|
|
|
|
|
|
|
Cost of
service
|
|
|
(11.8)
|
|
|
|
(2.1)
|
|
Cost of product
sales
|
|
|
(2.1)
|
|
|
|
(3.2)
|
|
Selling, general and
administrative expenses
|
|
|
(29.6)
|
|
|
|
(15.2)
|
|
Acquisition and
integration related transaction expenses
|
|
|
(0.1)
|
|
|
|
(1.4)
|
|
Depreciation and
amortization
|
|
|
(10.1)
|
|
|
|
(13.1)
|
|
Net operating income
(loss)
|
|
|
6.9
|
|
|
|
(12.2)
|
|
|
|
|
|
|
|
|
|
|
Other
expense
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
(6.5)
|
|
|
|
(8.6)
|
|
Change in fair value of
warrant liability
|
|
|
—
|
|
|
|
(3.0)
|
|
Gain on disposal of
business
|
|
|
0.9
|
|
|
|
—
|
|
Other finance income
(expense)
|
|
|
0.3
|
|
|
|
6.4
|
|
|
|
|
|
|
|
|
|
|
Total other expense,
net
|
|
|
(5.3)
|
|
|
|
(5.2)
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
before income taxes
|
|
|
1.6
|
|
|
|
(17.4)
|
|
Income tax benefit
(expense)
|
|
|
(0.1)
|
|
|
|
0.7
|
|
Net income
(loss)
|
|
|
1.5
|
|
|
|
(16.7)
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss):
|
|
|
|
|
|
|
|
|
Foreign currency
translation gain (loss)
|
|
|
2.4
|
|
|
|
(1.1)
|
|
Change in fair value of
hedging instrument
|
|
|
—
|
|
|
|
0.6
|
|
Reclassification of
loss on hedging instrument to comprehensive income
|
|
|
0.2
|
|
|
|
0.5
|
|
Actuarial gains on
pension plan
|
|
|
0.7
|
|
|
|
4.6
|
|
Other
comprehensive income
|
|
|
3.3
|
|
|
|
4.6
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income
(loss)
|
|
$
|
4.8
|
|
|
$
|
(12.1)
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
per common share – basic
|
|
$
|
0.06
|
|
|
$
|
(0.74)
|
|
Net income (loss)
per common share - diluted
|
|
$
|
0.05
|
|
|
|
(0.74)
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding during the period –
basic
|
|
|
26,850,326
|
|
|
|
22,584,609
|
|
Weighted average
number of shares outstanding during the period –
diluted
|
|
|
29,294,973
|
|
|
|
22,584,609
|
|
Supplemental
disclosure of stock-based compensation expense
|
|
|
|
|
|
|
|
|
Stock-based
compensation included in:
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
$
|
(2.8)
|
|
|
$
|
(1.4)
|
|
INSPIRED
ENTERTAINMENT, INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
(Unaudited)
|
|
|
|
|
|
|
|
Three Months
Ended
March 31,
|
|
|
|
2022
|
|
|
2021
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
1.5
|
|
|
$
|
(16.7)
|
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
10.1
|
|
|
|
13.1
|
|
Amortization of right
of use asset
|
|
|
0.7
|
|
|
|
0.6
|
|
Stock-based
compensation expense
|
|
|
2.8
|
|
|
|
1.4
|
|
Unrealized
transactional currency gain/loss on senior bank debt
|
|
|
—
|
|
|
|
(6.1)
|
|
Change in fair value of
warrant liability
|
|
|
—
|
|
|
|
3.0
|
|
Reclassification of
loss on hedging instrument to comprehensive income
|
|
|
0.2
|
|
|
|
0.2
|
|
Non-cash interest
expense relating to senior debt
|
|
|
0.4
|
|
|
|
1.3
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(2.1)
|
|
|
|
6.7
|
|
Inventory
|
|
|
(11.9)
|
|
|
|
0.7
|
|
Prepaid expenses and
other assets
|
|
|
0.9
|
|
|
|
4.3
|
|
Corporate tax and other
current taxes payable
|
|
|
(7.2)
|
|
|
|
(8.6)
|
|
Accounts
payable
|
|
|
4.3
|
|
|
|
3.0
|
|
Deferred revenues and
customer prepayment
|
|
|
(0.3)
|
|
|
|
(4.5)
|
|
Accrued
expenses
|
|
|
7.1
|
|
|
|
0.4
|
|
Operating lease
liabilities
|
|
|
(0.7)
|
|
|
|
(0.7)
|
|
Other long-term
liabilities
|
|
|
(0.7)
|
|
|
|
0.1
|
|
Net cash provided by
(used in) operating activities
|
|
|
5.1
|
|
|
|
(2.0)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
|
(5.2)
|
|
|
|
(2.0)
|
|
Acquisition of
subsidiary company assets
|
|
|
(0.6)
|
|
|
|
—
|
|
Purchases of capital
software
|
|
|
(5.1)
|
|
|
|
(2.8)
|
|
Net cash used in
investing activities
|
|
|
(10.9)
|
|
|
|
(4.8)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Repayments of finance
leases
|
|
|
(0.1)
|
|
|
|
(0.2)
|
|
Net cash used in
financing activities
|
|
|
(0.1)
|
|
|
|
(0.2)
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate
changes on cash
|
|
|
(1.1)
|
|
|
|
1.1
|
|
Net decrease in
cash
|
|
|
(7.0)
|
|
|
|
(5.9)
|
|
Cash, beginning of
period
|
|
|
47.8
|
|
|
|
47.1
|
|
Cash, end of
period
|
|
$
|
40.8
|
|
|
$
|
41.2
|
|
|
|
|
|
|
|
|
|
|
Supplemental cash
flow disclosures
|
|
|
|
|
|
|
|
|
Cash paid during the
period for interest
|
|
$
|
0.2
|
|
|
$
|
6.8
|
|
Cash paid during the
period for income taxes
|
|
$
|
—
|
|
|
$
|
—
|
|
Cash paid during the
period for operating leases
|
|
$
|
0.9
|
|
|
$
|
0.3
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure of noncash investing and financing
activities
|
|
|
|
|
|
|
|
|
Property and equipment
acquired through finance lease
|
|
$
|
—
|
|
|
$
|
1.3
|
|
Property and equipment
transferred to inventory
|
|
$
|
0.6
|
|
|
$
|
—
|
|
INSPIRED
ENTERTAINMENT, INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENT OF OPERATIONS
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES
(Unaudited)
|
|
|
|
|
|
|
|
For the
Three-Month
Period ended
|
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
|
Mar
31,
|
|
|
Mar
31,
|
|
(In
millions)
|
|
2022
|
|
|
2021
|
|
Net income
(loss)
|
|
$
|
1.5
|
|
|
$
|
(16.7)
|
|
Items Relating to
Discontinued Activities:
|
|
|
|
|
|
|
|
|
Pension
charges
|
|
|
0.1
|
|
|
|
0.2
|
|
|
|
|
|
|
|
|
|
|
Items outside the
normal course of business:
|
|
|
|
|
|
|
|
|
Acquisition and
integration related transaction expenses
|
|
|
0.1
|
|
|
|
1.4
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation expense
|
|
|
2.8
|
|
|
|
1.4
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
10.1
|
|
|
|
13.1
|
|
Interest Expense
net
|
|
|
6.5
|
|
|
|
8.6
|
|
Change in fair value of
warrant liability
|
|
|
-
|
|
|
|
3.0
|
|
Other finance expenses
/ (income)
|
|
|
(0.3)
|
|
|
|
(6.4)
|
|
Income tax
|
|
|
0.1
|
|
|
|
(0.7)
|
|
Adjusted
EBITDA
|
|
$
|
20.1
|
|
|
$
|
3.9
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
£
|
15.0
|
|
|
£
|
2.8
|
|
|
|
|
|
|
|
|
|
|
Exchange Rate - $ to
£
|
|
|
1.34
|
|
|
|
1.37
|
|
ADJUSTED EBITDA
RECONCILIATION BY SEGMENT
(Unaudited)
|
|
Three Months Ended
March 31, 2022
|
|
|
|
Gaming
|
|
|
Virtual
Sports
|
|
|
Interactive
|
|
|
Leisure
|
|
|
Corporate
|
|
|
Total
|
|
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gain
(loss)
|
|
$
|
6.7
|
|
|
$
|
8.7
|
|
|
$
|
2.1
|
|
|
$
|
(1.4)
|
|
|
$
|
(14.5)
|
|
|
$
|
1.5
|
|
Items Relating to Discontinued
Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pension charges
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.1
|
|
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items
outside the normal course of business:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and integration related transaction expenses
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.1
|
|
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation expense
|
|
|
0.3
|
|
|
|
0.1
|
|
|
|
0.1
|
|
|
|
0.2
|
|
|
|
2.1
|
|
|
|
2.8
|
|
Depreciation and amortization
|
|
|
4.6
|
|
|
|
0.6
|
|
|
|
0.7
|
|
|
|
3.7
|
|
|
|
0.5
|
|
|
|
10.1
|
|
Interest expense,
net
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
6.5
|
|
|
|
6.5
|
|
Profit on
disposal of trade and assets
|
|
|
(0.9)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.9)
|
|
Other finance
expenses / (income)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.3)
|
|
|
|
(0.3)
|
|
Income
tax
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.1
|
|
|
|
0.1
|
|
Adjusted EBITDA
|
|
$
|
10.8
|
|
|
$
|
9.4
|
|
|
$
|
2.9
|
|
|
$
|
2.5
|
|
|
$
|
(5.5)
|
|
|
$
|
20.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
£
|
8.1
|
|
|
£
|
7.0
|
|
|
£
|
2.2
|
|
|
£
|
1.9
|
|
|
£
|
(4.1)
|
|
|
£
|
15.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange rate - $ to £
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.34
|
|
Three Months Ended
March 31, 2021
|
|
|
|
Gaming
|
|
|
Virtual
Sports
|
|
|
Interactive
|
|
|
Leisure
|
|
|
Corporate
|
|
|
Total
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gain
(loss)
|
|
$
|
(3.6)
|
|
|
$
|
3.7
|
|
|
$
|
2.6
|
|
|
$
|
(7.7)
|
|
|
$
|
(11.7)
|
|
|
$
|
(16.7)
|
|
Items Relating to
Discontinued Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pension
charges
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.2
|
|
|
|
0.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items outside the
normal course of business:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and integration related transaction expenses
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1.4
|
|
|
|
1.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation expense
|
|
|
0.2
|
|
|
|
0.1
|
|
|
|
0.1
|
|
|
|
0.1
|
|
|
|
0.9
|
|
|
|
1.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
6.6
|
|
|
|
1.1
|
|
|
|
0.7
|
|
|
|
4.2
|
|
|
|
0.5
|
|
|
|
13.1
|
|
Interest expense,
net
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
8.6
|
|
|
|
8.6
|
|
Change in fair value of
warrant liability
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3.0
|
|
|
|
3.0
|
|
Other finance expenses
(income)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(6.4)
|
|
|
|
(6.4)
|
|
Income tax
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.7)
|
|
|
|
(0.7)
|
|
Adjusted
EBITDA
|
|
$
|
3.2
|
|
|
$
|
4.9
|
|
|
$
|
3.4
|
|
|
$
|
(3.4)
|
|
|
$
|
(4.2)
|
|
|
$
|
3.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
£
|
2.3
|
|
|
£
|
3.6
|
|
|
£
|
2.5
|
|
|
£
|
(2.5)
|
|
|
£
|
(3.1)
|
|
|
£
|
2.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange rate - $ to
£
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.37
|
|
INSPIRED
ENTERTAINMENT, INC. SEGMENT PERFORMANCE
(Unaudited)
|
|
Three Months Ended
March 31, 2022
|
|
|
|
Gaming
|
|
|
Virtual
Sports
|
|
|
Interactive
|
|
|
Leisure
|
|
|
Corporate
Functions
|
|
|
Total
|
|
|
|
(in
millions)
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
|
|
$
|
21.1
|
|
|
$
|
11.6
|
|
|
$
|
5.3
|
|
|
$
|
19.0
|
|
|
$
|
—
|
|
|
$
|
57.0
|
|
Product
sales
|
|
|
3.0
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.6
|
|
|
|
—
|
|
|
|
3.6
|
|
Total
revenue
|
|
|
24.1
|
|
|
|
11.6
|
|
|
|
5.3
|
|
|
|
19.6
|
|
|
|
—
|
|
|
|
60.6
|
|
Cost of sales,
excluding depreciation and amortization:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
service
|
|
|
(4.7)
|
|
|
|
(0.6)
|
|
|
|
(1.0)
|
|
|
|
(5.5)
|
|
|
|
—
|
|
|
|
(11.8)
|
|
Cost of product
sales
|
|
|
(1.8)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.3)
|
|
|
|
—
|
|
|
|
(2.1)
|
|
Selling, general and
administrative expenses
|
|
|
(6.8)
|
|
|
|
(1.6)
|
|
|
|
(1.4)
|
|
|
|
(11.3)
|
|
|
|
(5.7)
|
|
|
|
(26.8)
|
|
Stock-based
compensation expense
|
|
|
(0.3)
|
|
|
|
(0.1)
|
|
|
|
(0.1)
|
|
|
|
(0.2)
|
|
|
|
(2.1)
|
|
|
|
(2.8)
|
|
Acquisition and
integration related transaction expenses
|
|
|
(0.1)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.1)
|
|
Depreciation and
amortization
|
|
|
(4.6)
|
|
|
|
(0.6)
|
|
|
|
(0.7)
|
|
|
|
(3.7)
|
|
|
|
(0.5)
|
|
|
|
(10.1)
|
|
Segment operating
income (loss)
|
|
|
5. 8
|
|
|
|
8.7
|
|
|
|
2.1
|
|
|
|
(1.4)
|
|
|
|
(8.3)
|
|
|
|
6.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
6.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total capital
expenditures for the three months ended March 31,
2022
|
|
$
|
3.4
|
|
|
$
|
0.9
|
|
|
$
|
1.2
|
|
|
$
|
4.0
|
|
|
$
|
1.2
|
|
|
$
|
10.7
|
|
Three Months Ended
March 31, 2021
|
|
|
|
Gaming
|
|
|
Virtual
Sports
|
|
|
Interactive
|
|
|
Leisure
|
|
|
Corporate
Functions
|
|
|
Total
|
|
|
|
(in
millions)
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
|
|
$
|
5.6
|
|
|
$
|
6.3
|
|
|
$
|
5.2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
17.1
|
|
Product sales
|
|
|
5.2
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.5
|
|
|
|
—
|
|
|
|
5.7
|
|
Total revenue
|
|
|
10.8
|
|
|
|
6.3
|
|
|
|
5.2
|
|
|
|
0.5
|
|
|
|
—
|
|
|
|
22.8
|
|
Cost of
sales, excluding depreciation and amortization:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of service
|
|
|
(0.6)
|
|
|
|
(0.3)
|
|
|
|
(0.8)
|
|
|
|
(0.4)
|
|
|
|
—
|
|
|
|
(2.1)
|
|
Cost of product sales
|
|
|
(2.9)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.3)
|
|
|
|
—
|
|
|
|
(3.2)
|
|
Selling, general
and administrative expenses
|
|
|
(4.1)
|
|
|
|
(1.1)
|
|
|
|
(1.0)
|
|
|
|
(3.2)
|
|
|
|
(4.4)
|
|
|
|
(13.8)
|
|
Stock-based
compensation expense
|
|
|
(0.2)
|
|
|
|
(0.1)
|
|
|
|
(0.1)
|
|
|
|
(0.1)
|
|
|
|
(0.9)
|
|
|
|
(1.4)
|
|
Acquisition and
integration related transaction expenses
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(1.4)
|
|
|
|
(1.4)
|
|
Depreciation and amortization
|
|
|
(6.6)
|
|
|
|
(1.1)
|
|
|
|
(0.7)
|
|
|
|
(4.2)
|
|
|
|
(0.5)
|
|
|
|
(13.1)
|
|
Segment operating income (loss)
|
|
|
(3.6)
|
|
|
|
3.7
|
|
|
|
2.6
|
|
|
|
(7.7)
|
|
|
|
(7.2)
|
|
|
|
(12.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(12.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total capital
expenditures for the three months ended March 31,
2021
|
|
$
|
1.2
|
|
|
$
|
0.8
|
|
|
$
|
0.9
|
|
|
$
|
3.1
|
|
|
$
|
0.2
|
|
|
$
|
6.2
|
|
Scheduled Online
Virtual Sports and Interactive Total Revenue
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
31-Mar
|
|
Change
|
|
(In millions of
GBP)
|
|
2022
|
|
2021
|
|
%
|
|
Online
Revenue
|
|
|
|
|
|
|
|
Total Revenue £'m -
Online Virtuals
|
|
£6.3
|
|
£3.9
|
|
61%
|
|
Total Revenue £'m –
Interactive
|
|
£3.9
|
|
£3.8
|
|
5%
|
|
Total Revenue £'m –
Online Virtuals and Interactive
|
|
£10.2
|
|
£7.7
|
|
32%
|
|
|
|
|
|
|
|
|
|
in millions of
USD
|
|
$13.7
|
|
$10.7
|
|
29%
|
|
|
|
|
|
|
|
|
|
Exchange Rate - $ to
£
|
|
1.34
|
|
1.38
|
|
|
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/inspired-reports-first-quarter-2022-results-301544400.html
SOURCE Inspired Entertainment, Inc.