COVER PAGE
COVER PAGE - shares | 6 Months Ended | |
Jun. 30, 2023 | Aug. 04, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-38889 | |
Entity Registrant Name | SCIPLAY CORPORATION | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 83-2692460 | |
Entity Address, Address Line One | 6601 Bermuda Road | |
Entity Address, City or Town | Las Vegas | |
Entity Address, State or Province | NV | |
Entity Address, Postal Zip Code | 89119 | |
City Area Code | 702 | |
Local Phone Number | 897-7150 | |
Title of 12(b) Security | Class A Common Stock, $.001 par value | |
Trading Symbol | SCPL | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Amendment Flag | false | |
Entity Central Index Key | 0001760717 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Common Class A | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 21,218,896 | |
Common Class B | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 103,547,021 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Income Statement [Abstract] | |||||
Revenue | $ 189.9 | $ 160.1 | $ 376.3 | $ 318.1 | |
Operating expenses: | |||||
Cost of revenue | [1] | 58.2 | 47.9 | 115.9 | 96.1 |
Sales and marketing | [1] | 42.9 | 46.6 | 89.8 | 86.6 |
General and administrative | [1] | 24.1 | 14.7 | 46.2 | 31.4 |
Research and development | [1] | 12.5 | 11.3 | 25.2 | 22.8 |
Depreciation, amortization and impairments | 11.2 | 5.5 | 17.1 | 10.2 | |
Restructuring and other | 1.8 | 1.1 | 3.2 | 3.3 | |
Operating income | 39.2 | 33 | 78.9 | 67.7 | |
Other income (expense), net | 3.8 | 0 | 9.8 | (0.5) | |
Net income before income taxes | 43 | 33 | 88.7 | 67.2 | |
Income tax expense | 1.6 | 0.7 | 5.5 | 2.9 | |
Net income | 41.4 | 32.3 | 83.2 | 64.3 | |
Less: Net income attributable to the noncontrolling interest | 35.8 | 26.6 | 72.1 | 54.2 | |
Net income attributable to SciPlay | $ 5.6 | $ 5.7 | $ 11.1 | $ 10.1 | |
Basic and diluted net income attributable to SciPlay per share: | |||||
Basic (in dollars per share) | $ 0.26 | $ 0.23 | $ 0.51 | $ 0.41 | |
Diluted (in dollars per share) | $ 0.25 | $ 0.23 | $ 0.49 | $ 0.41 | |
Weighted average number of shares of Class A common stock used in per share calculation: | |||||
Basic shares (in shares) | 21.4 | 24.6 | 21.7 | 24.6 | |
Diluted shares (in shares) | 22.3 | 24.8 | 22.8 | 24.8 | |
[1] (1) Excludes depreciation, amortization and impairments. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 41.4 | $ 32.3 | $ 83.2 | $ 64.3 |
Other comprehensive loss: | ||||
Foreign currency translation loss, net of tax | (0.7) | (4.3) | (2.2) | (5.9) |
Total comprehensive income | 40.7 | 28 | 81 | 58.4 |
Less: Comprehensive income attributable to the noncontrolling interest | 35.2 | 23.1 | 70.3 | 49.4 |
Comprehensive income attributable to SciPlay | $ 5.5 | $ 4.9 | $ 10.7 | $ 9 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 394.9 | $ 330.1 |
Accounts receivable, net | 63.7 | 51 |
Prepaid expenses and other current assets | 5.6 | 8 |
Total current assets | 464.2 | 389.1 |
Property and equipment, net | 4.3 | 3 |
Operating lease right-of-use assets | 3.7 | 4.8 |
Goodwill | 215.6 | 217.6 |
Intangible assets and software, net | 72.1 | 74.8 |
Deferred income taxes | 72.3 | 74.5 |
Other assets | 1.9 | 1.9 |
Total assets | 834.1 | 765.7 |
Current liabilities: | ||
Accounts payable | 19.2 | 18.4 |
Accrued liabilities | 41 | 35.2 |
Due to affiliate | 3.2 | 3.8 |
Total current liabilities | 63.4 | 57.4 |
Operating lease liabilities | 1.9 | 3.1 |
Liabilities under TRA | 60.2 | 60.2 |
Other long-term liabilities | 25.1 | 29.4 |
Total liabilities | 150.6 | 150.1 |
Commitments and contingencies (see Note 8) | ||
Stockholders’ equity: | ||
Additional paid-in capital | 91.4 | 72 |
Retained earnings | 85.7 | 74.6 |
Treasury stock, at cost, 4.1 and 2.7 shares, respectively | (60.2) | (37.1) |
Accumulated other comprehensive loss | (0.8) | (0.4) |
Total SciPlay stockholders’ equity | 116.2 | 109.2 |
Noncontrolling interest | 567.3 | 506.4 |
Total stockholders’ equity | 683.5 | 615.6 |
Total liabilities and stockholders’ equity | 834.1 | 765.7 |
Common Class A | ||
Stockholders’ equity: | ||
Common stock | 0 | 0 |
Common Class B | ||
Stockholders’ equity: | ||
Common stock | $ 0.1 | $ 0.1 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Treasury stock, at cost (in shares) | 4.1 | 2.7 |
Common Class A | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 625 | 625 |
Common stock, shares issued (in shares) | 25.3 | 24.9 |
Common stock, shares outstanding (in shares) | 21.2 | 22.1 |
Common Class B | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 130 | 130 |
Common stock, shares issued (in shares) | 103.5 | 103.5 |
Common stock, shares outstanding (in shares) | 103.5 | 103.5 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY - USD ($) shares in Millions, $ in Millions | Total | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) | Noncontrolling interest | Treasury stock | Common Class A Common Stock | Common Class B Common Stock | ||
Stockholders' equity, beginning balance (in shares) at Dec. 31, 2021 | 24.5 | 103.5 | ||||||||
Stockholders' equity, beginning balance at Dec. 31, 2021 | $ 525 | $ 45.2 | $ 52.2 | $ 1.1 | $ 426.4 | $ 0 | $ 0 | $ 0.1 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 32 | 4.4 | 27.6 | |||||||
Stock-based compensation | 1.9 | 0.4 | 1.5 | |||||||
Vesting of RSUs, net of tax withholdings (in shares) | 0.2 | |||||||||
Vesting of RSUs, net of tax withholdings and other | (0.1) | 0 | (0.1) | |||||||
Distributions to Parent and affiliates, net | (0.2) | (0.2) | ||||||||
Currency translation | (1.6) | (0.3) | (1.3) | |||||||
Stockholders' equity, ending balance (in shares) at Mar. 31, 2022 | 24.7 | 103.5 | ||||||||
Stockholders' equity, ending balance at Mar. 31, 2022 | 557 | 45.6 | 56.6 | 0.8 | 453.9 | 0 | $ 0 | $ 0.1 | ||
Stockholders' equity, beginning balance (in shares) at Dec. 31, 2021 | 24.5 | 103.5 | ||||||||
Stockholders' equity, beginning balance at Dec. 31, 2021 | 525 | 45.2 | 52.2 | 1.1 | 426.4 | 0 | $ 0 | $ 0.1 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 64.3 | |||||||||
Distributions to Parent and affiliates, net | [1] | (0.3) | ||||||||
Currency translation | (5.9) | |||||||||
Stockholders' equity, ending balance (in shares) at Jun. 30, 2022 | 24.2 | 103.5 | ||||||||
Stockholders' equity, ending balance at Jun. 30, 2022 | 579.2 | 50.2 | 62.3 | 0 | 473.7 | (7.1) | $ 0 | $ 0.1 | ||
Stockholders' equity, beginning balance (in shares) at Mar. 31, 2022 | 24.7 | 103.5 | ||||||||
Stockholders' equity, beginning balance at Mar. 31, 2022 | 557 | 45.6 | 56.6 | 0.8 | 453.9 | 0 | $ 0 | $ 0.1 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 32.3 | 5.7 | 26.6 | |||||||
Stock-based compensation | 1.4 | 0.2 | 1.2 | |||||||
Distributions to Parent and affiliates, net | (0.1) | [1] | (0.1) | |||||||
Repurchases of stock (in shares) | (0.5) | |||||||||
Repurchases of stock | (7.1) | 5.7 | (5.7) | (7.1) | ||||||
Economic rebalancing | [2] | 0 | (1.3) | 1.3 | ||||||
Currency translation | (4.3) | (0.8) | (3.5) | |||||||
Stockholders' equity, ending balance (in shares) at Jun. 30, 2022 | 24.2 | 103.5 | ||||||||
Stockholders' equity, ending balance at Jun. 30, 2022 | 579.2 | 50.2 | 62.3 | 0 | 473.7 | (7.1) | $ 0 | $ 0.1 | ||
Stockholders' equity, beginning balance (in shares) at Dec. 31, 2022 | 22.1 | 103.5 | ||||||||
Stockholders' equity, beginning balance at Dec. 31, 2022 | 615.6 | 72 | 74.6 | (0.4) | 506.4 | (37.1) | $ 0 | $ 0.1 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 41.8 | 5.5 | 36.3 | |||||||
Stock-based compensation | 4.2 | 1.2 | 3 | |||||||
Settlement of liability awards | 4.4 | 0.8 | 3.6 | |||||||
Vesting of RSUs, net of tax withholdings (in shares) | 0.3 | |||||||||
Vesting of RSUs, net of tax withholdings and other | (0.9) | (0.2) | (0.7) | |||||||
Distributions to Parent and affiliates, net | (0.1) | (0.1) | ||||||||
Repurchases of stock (in shares) | (0.5) | |||||||||
Repurchases of stock | (8.2) | 6.8 | (6.8) | (8.2) | ||||||
Economic rebalancing | [2] | 0 | (0.1) | 0.1 | ||||||
Currency translation | (1.5) | (0.3) | (1.2) | |||||||
Stockholders' equity, ending balance (in shares) at Mar. 31, 2023 | 21.9 | 103.5 | ||||||||
Stockholders' equity, ending balance at Mar. 31, 2023 | 655.3 | 80.5 | 80.1 | (0.7) | 540.6 | (45.3) | $ 0 | $ 0.1 | ||
Stockholders' equity, beginning balance (in shares) at Dec. 31, 2022 | 22.1 | 103.5 | ||||||||
Stockholders' equity, beginning balance at Dec. 31, 2022 | 615.6 | 72 | 74.6 | (0.4) | 506.4 | (37.1) | $ 0 | $ 0.1 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 83.2 | |||||||||
Distributions to Parent and affiliates, net | [1] | $ (0.5) | ||||||||
Repurchases of stock (in shares) | (1.4) | |||||||||
Repurchases of stock | $ (23.1) | |||||||||
Currency translation | (2.2) | |||||||||
Stockholders' equity, ending balance (in shares) at Jun. 30, 2023 | 21.2 | 103.5 | ||||||||
Stockholders' equity, ending balance at Jun. 30, 2023 | 683.5 | 91.4 | 85.7 | (0.8) | 567.3 | (60.2) | $ 0 | $ 0.1 | ||
Stockholders' equity, beginning balance (in shares) at Mar. 31, 2023 | 21.9 | 103.5 | ||||||||
Stockholders' equity, beginning balance at Mar. 31, 2023 | 655.3 | 80.5 | 80.1 | (0.7) | 540.6 | (45.3) | $ 0 | $ 0.1 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 41.4 | 5.6 | 35.8 | |||||||
Stock-based compensation | 2.9 | 0.7 | 2.2 | |||||||
Vesting of RSUs, net of tax withholdings (in shares) | 0.2 | |||||||||
Vesting of RSUs, net of tax withholdings and other | (0.1) | (0.1) | ||||||||
Distributions to Parent and affiliates, net | (0.4) | [1] | (0.4) | |||||||
Repurchases of stock (in shares) | (0.9) | |||||||||
Repurchases of stock | (14.9) | 12.3 | (12.3) | (14.9) | ||||||
Economic rebalancing | [2] | 0 | (2.1) | 2.1 | ||||||
Currency translation | (0.7) | (0.1) | (0.6) | |||||||
Stockholders' equity, ending balance (in shares) at Jun. 30, 2023 | 21.2 | 103.5 | ||||||||
Stockholders' equity, ending balance at Jun. 30, 2023 | $ 683.5 | $ 91.4 | $ 85.7 | $ (0.8) | $ 567.3 | $ (60.2) | $ 0 | $ 0.1 | ||
[1] (1) Under the terms of the Operating Agreement, SciPlay Corporation relies on distributions from SciPlay Parent LLC to pay its obligations under the TRA and any other tax obligations. All distributions must be on a pari passu basis, thus initiating a pro-rata distribution to Parent and affiliates. (1) SciPlay Parent LLC equity attributable to SciPlay Corporation and the noncontrolling interest holders is rebalanced, as needed, to reflect changes in LLC Unit ownership. |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Cash Flows [Abstract] | ||
Net cash provided by operating activities | $ 101.9 | $ 74.2 |
Cash flows from investing activities: | ||
Capital expenditures | (10.4) | (5.1) |
Acquisition of business, net of cash acquired | 0 | (106.2) |
Net cash used in investing activities | (10.4) | (111.3) |
Cash flows from financing activities: | ||
Payments on license obligations | (1.8) | (1.9) |
Payments of contingent consideration | 0 | (1) |
Purchases of treasury stock | (23) | (7.1) |
Distributions to Light & Wonder and affiliates, net | (0.5) | (0.3) |
Taxes paid related to net share settlement of equity awards and other | (1.1) | (0.4) |
Net cash used in financing activities | (26.4) | (10.7) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (0.3) | (0.5) |
Increase (decrease) in cash, cash equivalents and restricted cash | 64.8 | (48.3) |
Cash, cash equivalents and restricted cash, beginning of period | 330.1 | 364.4 |
Cash, cash equivalents and restricted cash, end of period | 394.9 | 316.1 |
Supplemental Cash Flow Information [Abstract] | ||
Cash paid for income taxes | 4.7 | 2 |
Supplemental non-cash transactions: | ||
Non-cash additions to intangible assets related to license agreements | $ 5.6 | $ 1.9 |
Description of the Business and
Description of the Business and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Business and Summary of Significant Accounting Policies | Description of the Business and Summary of Significant Accounting Policies Background and Nature of Operations SciPlay Corporation was formed as a Nevada corporation on November 30, 2018 as a subsidiary of Light & Wonder, Inc. (“Light & Wonder”, “L&W” or “Parent”), for the purposes of completing a public offering and related transactions in order to carry on the business of SciPlay Parent LLC and its subsidiaries (collectively referred to as “SciPlay”, the “Company”, “we”, “us” and “our”). As the managing member of SciPlay Parent LLC, SciPlay operates and controls all of the business affairs of SciPlay Parent LLC and its subsidiaries. We develop, market and operate a portfolio of games played on various mobile and web platforms, including Jackpot Party® Casino, Quick Hit® Slots, Gold Fish® Casino, Hot Shot Casino®, Bingo Showdown®, MONOPOLY® Slots, 88 Fortunes® Slots, Solitaire Pets™ Adventure and Backgammon Live as well as other games in the hyper-casual space, such as Candy Challenge 3D™ , Boss Life™ and Deep Clean Inc.™. Our games are available in various formats. We have one operating segment with one business activity, developing and monetizing games. On August 8, 2023, Light & Wonder and SciPlay entered into a definitive agreement whereby Light & Wonder will acquire the remaining equity interest in SciPlay not already owned by Light & Wonder (approximately 17%) pursuant to a merger in which SciPlay’s shareholders will receive $22.95 for each share of SciPlay Class A common stock they own (subject to certain exceptions set forth in the Merger Agreement, dated as of August 8, 2023, by and among Light & Wonder, Bern Merger Sub, Inc. and SciPlay (the “Merger Agreement”)) in an all-cash transaction (the “Merger”). Following the execution of the Merger Agreement, the wholly owned subsidiary of Light & Wonder holding approximately 98% of the voting power of the outstanding shares of SciPlay common stock delivered to SciPlay a written consent approving the Merger Agreement and the Merger. No further approval of the stockholders of SciPlay is required to approve the Merger Agreement and the Merger. The transaction is expected to close during the fourth quarter of 2023, subject to customary closing conditions. As a result of the Merger, SciPlay will cease to be publicly traded and will become a wholly owned subsidiary of Light & Wonder. The Merger Agreement contains certain termination rights for SciPlay and Light & Wonder, including the right of either party to terminate the Merger Agreement if the SciPlay Acquisition is not consummated on or before February 8, 2024. Basis of Presentation The accompanying financial statements are presented in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). All intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, we have made all adjustments necessary to present fairly our consolidated statements of income, consolidated statements of comprehensive income, condensed consolidated balance sheets, consolidated statements of changes in stockholders’ equity and condensed consolidated statements of cash flows for the periods presented. Such adjustments are of a normal, recurring nature. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and related Notes included in our 2022 Form 10-K. Interim results of operations are not necessarily indicative of results of operations to be expected for a full year. Variable Interest Entities (“VIE”) and Consolidation Our sole material asset is our member’s interest in SciPlay Parent LLC. In accordance with the Operating Agreement of SciPlay Parent LLC (the “Operating Agreement”), we have all management powers over the business and affairs of SciPlay Parent LLC and to conduct, direct and exercise full control over the activities of SciPlay Parent LLC. Class A common stock does not hold majority voting rights but holds 100% of the economic interest in the Company, which results in SciPlay Parent LLC being considered a VIE. Due to our power to control the activities most directly affecting the results of SciPlay Parent LLC, we are considered the primary beneficiary of the VIE. Accordingly, we consolidate the financial results of SciPlay Parent LLC and its subsidiaries. Significant Accounting Policies There have been no changes to our significant accounting policies described within the Notes of our 2022 Form 10-K. New Accounting Guidance There have been no recent accounting pronouncements or changes in accounting pronouncements since those described within the Notes of our 2022 10-K that are expected to have a material impact on our consolidated financial statements. Revenue Recognition We generate revenue from the sale of coins, chips and cards, which players can use to play casino-style slot games, table games and bingo games (i.e., spin in the case of slot games, bet in the case of table games and use bingo cards in the case of bingo games). We distribute our games through various global social web and mobile platforms such as Facebook, Apple, Google, Amazon and Microsoft. The games we offer are internally branded franchises, original content and third-party branded games. We also generate revenue from providing advertising platforms with access to our game software platform, which facilitates the placement of advertising inventory. Disaggregation of Revenue We believe disaggregation of our revenue on the basis of platform type and geographical location of our players is appropriate because the nature of revenue and the number of players generating revenue could vary on such basis, which represent different economic risk profiles. The following table presents our revenue disaggregated by platform type: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Mobile in-app purchases $ 169.6 $ 137.7 $ 335.3 $ 277.4 Web in-app purchases and other (1) 20.3 22.4 41.0 40.7 Total revenue $ 189.9 $ 160.1 $ 376.3 $ 318.1 (1) Other primarily represents advertising revenue, which was not material in the periods presented. The following table presents our revenue disaggregated based on the geographical location of our players: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 North America (1) $ 175.9 $ 145.7 $ 348.8 $ 290.6 International 14.0 14.4 27.5 27.5 Total revenue $ 189.9 $ 160.1 $ 376.3 $ 318.1 (1) North America revenue includes revenue derived from the U.S., Canada and Mexico. Contract Assets, Contract Liabilities and Other Disclosures We receive customer payments based on the payment terms established in our contracts. Payment for the purchase of coins, chips and cards is made at purchase, and such payments are non-refundable in accordance with our standard terms of service. Such payments are initially recorded as a contract liability, and revenue is subsequently recognized as we satisfy our performance obligations. The following table summarizes our opening and closing balances in contract assets, contract liabilities and accounts receivable: Accounts Receivable Contract Assets (1) Contract Liabilities (2) Beginning of period balance $ 51.0 $ 0.1 $ 3.0 Balance as of June 30, 2023 63.7 0.1 2.0 (1) Contract assets are included within Prepaid expenses and other current assets in our consolidated balance sheets. (2) Contract liabilities are included within Accrued liabilities in our consolidated balance sheets. During the six months ended June 30, 2023 and 2022, we recognized $1.2 million and $0.4 million, respectively, of revenue that was included in the opening contract liability balance. Substantially all of our unsatisfied performance obligations relate to contracts with an original expected length of one year or less. Concentration of Credit Risk Our revenue and accounts receivable are generated via certain platform providers, which subject us to a concentration of credit risk. The following tables summarize the percentage of revenues and accounts receivable generated via our platform providers in excess of 10% of our total revenues and total accounts receivable: Revenue Concentration Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Apple 50.2% 46.5% 49.5% 47.2% Google 33.3% 34.3% 33.8% 34.6% Facebook 11.1% 11.8% 11.2% 12.0% Accounts Receivable Concentration as of June 30, 2023 December 31, 2022 Apple 63.5% 48.3% Google 23.0% 30.5% Facebook 7.4% 10.7% Alictus Acquisition On March 1, 2022, we acquired 80% of all issued and outstanding share capital of privately-held Alictus Yazilim Anonim Şirketi (“Alictus”), a Turkey-based hyper-casual gaming studio. The remaining 20% was to be acquired ratably for potential additional consideration payable annually based upon the achievement of specified revenue and earnings targets by Alictus during each of the five years following the acquisition date. The specified financial targets for the first year were not met, resulting in extinguishment of $2.9 million in redeemable non-controlling interest liability, which was recorded within the other income (expense), net line item in our consolidated statement of income during the first quarter of 2023. The remaining payout ranges from a minimum of $0.0 million to a maximum payout of $200.0 million. We incurred acquisition-related costs, which were recorded in Restructuring and other, of $1.2 million for the six months ended June 30, 2022. The results of operations from Alictus have been included in our consolidated statement of income since the date of acquisition and are not significant to our operations. |
Goodwill, Intangible Assets and
Goodwill, Intangible Assets and Software, net | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, Intangible Assets and Software, net | Goodwill, Intangible Assets and Software, net The table below reconciles the changes in the carrying value of goodwill for the period from December 31, 2022 to June 30, 2023. Total Balance as of December 31, 2022 $ 217.6 Foreign currency adjustments (2.0) Balance as of June 30, 2023 $ 215.6 The following table presents certain information regarding our intangible assets and software: Gross Accumulated Net Balance as of June 30, 2023 Intellectual property $ 67.8 $ (43.1) $ 24.7 Customer relationships 29.7 (25.1) 4.6 Software 43.2 (25.2) 18.0 Licenses 33.2 (12.9) 20.3 Brand names and other 9.9 (5.4) 4.5 Total intangible assets and software $ 183.8 $ (111.7) $ 72.1 Balance as of December 31, 2022 Intellectual property $ 75.2 $ (43.2) $ 32.0 Customer relationships 29.9 (24.1) 5.8 Software 37.6 (22.6) 15.0 Licenses 25.9 (9.4) 16.5 Brand names and other 10.6 (5.1) 5.5 Total intangible assets and software $ 179.2 $ (104.4) $ 74.8 The following reflects amortization expense related to intangible assets and software included within Depreciation, amortization and impairments: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Amortization expense (1) $ 10.6 $ 5.0 $ 16.1 $ 9.3 (1) Amortization expense for the three and six months ended June 30, 2023 includes intangible asset and software impairments of $4.8 million. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Leases | LeasesOur operating leases primarily consist of real estate office leases, and total expenses related to these leases were $0.7 million and $1.4 million for the three and six months ended June 30, 2023, respectively, and $0.7 million and $1.4 million for the three and six months ended June 30, 2022, respectively. We do not have any material finance leases. Our total variable and short-term lease payments and operating lease expenses were immaterial for all periods presented. Supplemental balance sheet and cash flow information related to operating leases is as follows: As of June 30, 2023 December 31, 2022 Operating lease right-of-use assets $ 3.7 $ 4.8 Accrued liabilities 2.3 2.3 Operating lease liabilities 1.9 3.1 Total operating lease liabilities $ 4.2 $ 5.4 Weighted average remaining lease term, years 1.8 2.3 Weighted average discount rate 4.9 % 4.9 % Six Months Ended June 30, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 1.2 $ 1.3 Lease liability maturities: Operating Leases Remainder of 2023 $ 1.2 2024 2.4 2025 0.7 Less: imputed interest (0.1) Total $ 4.2 As of June 30, 2023, we did not have material additional operating leases that have not yet commenced. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We hold an economic interest of 17.0% in SciPlay Parent LLC. The 83.0% economic interest that we do not own represents a noncontrolling interest for financial reporting purposes. SciPlay Parent LLC is treated as a partnership for U.S. federal and most applicable state and local income tax purposes. As such, SciPlay Parent LLC is not subject to income tax in most jurisdictions, and SciPlay Parent LLC’s members, of which we are one, are liable for income taxes based on their allocable share of SciPlay Parent LLC’s taxable income. The effective income tax rates for the three and six months ended June 30, 2023 were 3.7% and 6.2%, respectively, and 2.1% and 4.3% for the three and six months ended June 30, 2022, respectively. The effective income tax rates were determined using an estimated annual effective tax rate after considering any discrete items for such periods. Our effective tax rate differs from the U.S. statutory rate of 21.0% primarily because we generally do not record income taxes for the noncontrolling interest portion of U.S. pre-tax income. TRA During the six months ended June 30, 2023 and 2022, there were no payments made to Light & Wonder pursuant to the TRA. As of both June 30, 2023 and December 31, 2022, the total TRA liability was $64.3 million, of which $4.1 million was included in Accrued liabilities for each of the periods. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The following is the summary o f expenses paid to Light & Wonder and settled in cash: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Financial Statement Line Item Royalties to Light & Wonder for third-party IP $ — $ 0.1 $ 0.2 $ 0.4 Cost of revenue Parent services 1.5 1.6 3.1 3.0 General and administrative Distributions to Parent and affiliates, net (1) 0.4 0.1 0.5 0.3 Noncontrolling interest (1) Under the terms of the Operating Agreement, SciPlay Corporation relies on distributions from SciPlay Parent LLC to pay its obligations under the TRA and any other tax obligations. All distributions must be on a pari passu basis, thus initiating a pro-rata distribution to Parent and affiliates. The following is the summary of balances due to affiliates: June 30, 2023 December 31, 2022 Royalties to Light & Wonder for third-party IP $ — $ 0.2 Parent services 0.8 0.4 Reimbursable expenses to (from) Light & Wonder and its subsidiaries 2.4 3.2 $ 3.2 $ 3.8 Parent Equity Awards See Note 6 for disclosures related to Parent’s equity awards. IP Royalties As more fully described in Note 10 of our 2022 Form 10-K, we entered into the IP License Agreement under which we obtained an exclusive (subject to certain limited exceptions), perpetual, non-royalty-bearing license from LNW Gaming, Inc. (a subsidiary of the Parent, formerly known as Bally Gaming, Inc.) (“LNW Gaming”) for intellectual property created or acquired by LNW Gaming or its affiliates on or before the third anniversary of the date of the IP License Agreement. Under the terms of the IP License Agreement, some rights would have changed from exclusive to non-exclusive for newly created intellectual property and other rights would not have extended to newly created intellectual property as of May 6, 2022. On May 6, 2022, we entered into an amendment which extended our rights under the IP License Agreement through July 7, 2022. We are in the process of negotiating new terms with the Parent. |
Stockholders_ Equity and Noncon
Stockholders’ Equity and Noncontrolling Interest | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Stockholders’ Equity and Noncontrolling Interest | Stockholders’ Equity and Noncontrolling Interest Noncontrolling Interest We are a holding company, and our sole material assets are SciPlay Parent LLC Interests (“LLC Interest”) that we purchased from SciPlay Parent LLC and LNW Holding Company I, LLC, an indirect wholly owned subsidiary of Parent, formerly known as SG Holding Company I, LLC (“the L&W Member”), representing an aggregate 17.0% economic interest in SciPlay Parent LLC. The remaining 83.0% economic interest in SciPlay Parent LLC is owned indirectly by Light & Wonder, through the ownership of LLC Interests by the L&W Member. Stock-Based Compensation The following table summarizes stock-based compensation expense that is included in General and administrative expenses: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 SciPlay awards (1) $ 6.9 $ 1.6 $ 12.8 $ 4.1 Parent awards 0.3 (0.1) 0.9 — Total $ 7.2 $ 1.5 $ 13.7 $ 4.1 (1) Includes $4.3 million and $6.6 million of stock-based compensation classified as liability awards for the three and six months ended June 30, 2023 and $0.1 million and $0.7 million for the three and six months ended June 30, 2022, respectively. As of June 30, 2023, we had $32.0 million in unrecognized stock-based compensation expense that is expected to be recognized over a weighted-average expected vesting period of 1.2 years, of which $15.7 million relates to performance-based restricted stock units. Share Repurchase Program |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share The table below sets forth a calculation of basic earnings per share ("EPS") based on Net income attributable to SciPlay divided by the basic weighted average number of Class A common stock outstanding during the period. Diluted EPS of Class A common stock is computed by dividing Net income attributable to SciPlay by the weighted average number of shares of Class A common stock outstanding adjusted to give effect to all potentially dilutive securities, using the treasury stock method. No material number of restricted stock units was excluded from the calculation of diluted weighted-average common shares outstanding for the three- and six-month periods ended June 30, 2023 and 2022. We excluded Class B common stock from the computation of basic and diluted EPS, as holders of Class B common stock do not have an economic interest in us, and, therefore, a separate presentation of EPS of Class B common stock under the two-class method has not been presented. Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Numerator: Net income $ 41.4 $ 32.3 $ 83.2 $ 64.3 Less: net income attributable to the noncontrolling interest 35.8 26.6 72.1 54.2 Net income attributable to SciPlay $ 5.6 $ 5.7 $ 11.1 $ 10.1 Denominator: Weighted average shares of Class A common stock for basic EPS 21.4 24.6 21.7 24.6 Effect of dilutive securities: Stock-based compensation grants 0.9 0.2 1.1 0.2 Weighted average shares of Class A common stock for diluted EPS 22.3 24.8 22.8 24.8 Basic and diluted net income attributable to SciPlay per share: Basic $ 0.26 $ 0.23 $ 0.51 $ 0.41 Diluted $ 0.25 $ 0.23 $ 0.49 $ 0.41 |
Litigation
Litigation | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation | Litigation From time to time, we are subject to various claims, complaints and legal actions, including notifications of alleged infringement of patent or other intellectual property rights, in the normal course of business. Boorn Matter On September 15, 2022, plaintiff Hannelore Boorn filed a putative class action against Light & Wonder, Inc., SciPlay Corporation, and Appchi Media Ltd. in the Fayette Circuit Court of the Commonwealth of Kentucky. In her complaint, plaintiff seeks to represent a putative class of all persons in Kentucky who, within the past five years, purchased and allegedly lost $5.00 or more worth of chips, in a 24-hour period, playing SciPlay's online social casino games. The complaint asserts claims for alleged violations of Kentucky’s “recovery of gambling losses” statute and for unjust enrichment, and seeks unspecified money damages, the award of reasonable attorneys' fees and costs, pre- and post-judgment interest, and injunctive and/or other declaratory relief. On October 18, 2022, defendants removed the action to the United States District Court for the Eastern District of Kentucky. On October 26, 2022, the plaintiff filed a notice voluntarily dismissing the lawsuit without prejudice. On October 27, 2022, the district court entered an order dismissing the lawsuit. On November 17, 2022, the plaintiff filed an arbitration demand against defendants before the American Arbitration Association, pursuant to which she seeks declaratory judgments that (1) SciPlay’s online social casino games constitute gambling under Kentucky law, and (2) SciPlay’s terms of service are void under Kentucky law. On January 12, 2023, the respondents filed their answering statement to plaintiff’s arbitration demand. We are currently unable to determine the likelihood of an outcome or estimate a range of reasonably possible losses, if any. We believe that the claims in the arbitration demand are without merit, and intend to vigorously defend against them. Allah Beautiful Matter On December 19, 2022, claimant Prince Imanifest Allah Beautiful filed an arbitration demand against respondent SciPlay Corporation before the American Arbitration Association. The complaint asserts claims for alleged violations of New Jersey’s anti-gambling statutes and seeks unspecified money damages, including recovery of monies allegedly lost by New Jersey players of SciPlay’s online social casino games other than the claimant. On March 7, 2023, the respondent filed its answering statement to claimant’s arbitration demand. We are currently unable to determine the likelihood of an outcome or estimate a range of reasonably possible losses, if any. We believe that the claims in the arbitration demand are without merit, and intend to vigorously defend against them. Sprinkle Matter On December 12, 2022, claimant Matthew Sprinkle filed an arbitration demand against respondent SciPlay Corporation before the American Arbitration Association. The complaint asserts claims for alleged violations of Ohio’s anti- gambling statutes and seeks unspecified money damages, including recovery of monies allegedly lost by Ohio players of SciPlay’s online social casino games other than the claimant. On March 7, 2023, the respondent filed its answering statement to claimant’s arbitration demand. We are currently unable to determine the likelihood of an outcome or estimate a range of reasonably possible losses, if any. We believe that the claims in the arbitration demand are without merit, and intend to vigorously defend against them. Sornberger Matter On March 8, 2023, plaintiff Andrea Sornberger filed a complaint against SciPlay Corporation and SciPlay Games LLC in the Circuit Court of the Franklin County, Alabama. The complaint asserts claims for alleged violations of Alabama anti-gambling statutes and seeks unspecified money damages, including recovery of monies allegedly lost by Alabama players of SciPlay’s online social casino games other than the plaintiff, the award of interests and costs, and injunctive and other relief. On April 12, 2023, defendants removed the action to the United States District Court for the Northern District of Alabama. We are currently unable to determine the likelihood of an outcome or estimate a range of reasonably possible losses, if any. We believe that the claims in the lawsuit are without merit and intend to vigorously defend against them. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) Attributable to Parent | $ 5.6 | $ 5.7 | $ 11.1 | $ 10.1 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Description of the Business a_2
Description of the Business and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying financial statements are presented in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). All intercompany balances and transactions have been eliminated in consolidation. |
Principles of Consolidation | In the opinion of management, we have made all adjustments necessary to present fairly our consolidated statements of income, consolidated statements of comprehensive income, condensed consolidated balance sheets, consolidated statements of changes in stockholders’ equity and condensed consolidated statements of cash flows for the periods presented. Such adjustments are of a normal, recurring nature. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and related Notes included in our 2022 Form 10-K. Interim results of operations are not necessarily indicative of results of operations to be expected for a full year. |
Variable Interest Entities (“VIE”) and Consolidation | Variable Interest Entities (“VIE”) and Consolidation Our sole material asset is our member’s interest in SciPlay Parent LLC. In accordance with the Operating Agreement of SciPlay Parent LLC (the “Operating Agreement”), we have all management powers over the business and affairs of SciPlay Parent LLC and to conduct, direct and exercise full control over the activities of SciPlay Parent LLC. Class A common stock does not hold majority voting rights but holds 100% of the economic interest in the Company, which results in SciPlay Parent LLC being considered a VIE. Due to our power to control the activities most directly affecting the results of SciPlay Parent LLC, we are considered the primary beneficiary of the VIE. Accordingly, we consolidate the financial results of SciPlay Parent LLC and its subsidiaries. |
New Accounting Guidance - Not Yet Adopted | There have been no recent accounting pronouncements or changes in accounting pronouncements since those described within the Notes of our 2022 10-K that are expected to have a material impact on our consolidated financial statements. |
Revenue Recognition and Contract Assets, Contract Liabilities and Other Disclosures | Revenue Recognition We generate revenue from the sale of coins, chips and cards, which players can use to play casino-style slot games, table games and bingo games (i.e., spin in the case of slot games, bet in the case of table games and use bingo cards in the case of bingo games). We distribute our games through various global social web and mobile platforms such as Facebook, Apple, Google, Amazon and Microsoft. The games we offer are internally branded franchises, original content and third-party branded games. We also generate revenue from providing advertising platforms with access to our game software platform, which facilitates the placement of advertising inventory. Disaggregation of Revenue We believe disaggregation of our revenue on the basis of platform type and geographical location of our players is appropriate because the nature of revenue and the number of players generating revenue could vary on such basis, which represent different economic risk profiles. |
Concentration of Credit Risk | Concentration of Credit Risk Our revenue and accounts receivable are generated via certain platform providers, which subject us to a concentration of credit risk. |
Description of the Business a_3
Description of the Business and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Amortization Expense | The following reflects amortization expense related to intangible assets and software included within Depreciation, amortization and impairments: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Amortization expense (1) $ 10.6 $ 5.0 $ 16.1 $ 9.3 (1) Amortization expense for the three and six months ended June 30, 2023 includes intangible asset and software impairments of $4.8 million. |
Disaggregation of Revenue | The following table presents our revenue disaggregated by platform type: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Mobile in-app purchases $ 169.6 $ 137.7 $ 335.3 $ 277.4 Web in-app purchases and other (1) 20.3 22.4 41.0 40.7 Total revenue $ 189.9 $ 160.1 $ 376.3 $ 318.1 (1) Other primarily represents advertising revenue, which was not material in the periods presented. The following table presents our revenue disaggregated based on the geographical location of our players: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 North America (1) $ 175.9 $ 145.7 $ 348.8 $ 290.6 International 14.0 14.4 27.5 27.5 Total revenue $ 189.9 $ 160.1 $ 376.3 $ 318.1 (1) North America revenue includes revenue derived from the U.S., Canada and Mexico. |
Summary of Balances in Receivables and Contract Asset and Liability Accounts | The following table summarizes our opening and closing balances in contract assets, contract liabilities and accounts receivable: Accounts Receivable Contract Assets (1) Contract Liabilities (2) Beginning of period balance $ 51.0 $ 0.1 $ 3.0 Balance as of June 30, 2023 63.7 0.1 2.0 (1) Contract assets are included within Prepaid expenses and other current assets in our consolidated balance sheets. (2) Contract liabilities are included within Accrued liabilities in our consolidated balance sheets. |
Schedules of Concentration of Risk | The following tables summarize the percentage of revenues and accounts receivable generated via our platform providers in excess of 10% of our total revenues and total accounts receivable: Revenue Concentration Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Apple 50.2% 46.5% 49.5% 47.2% Google 33.3% 34.3% 33.8% 34.6% Facebook 11.1% 11.8% 11.2% 12.0% Accounts Receivable Concentration as of June 30, 2023 December 31, 2022 Apple 63.5% 48.3% Google 23.0% 30.5% Facebook 7.4% 10.7% |
Goodwill, Intangible Assets a_2
Goodwill, Intangible Assets and Software, net (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The table below reconciles the changes in the carrying value of goodwill for the period from December 31, 2022 to June 30, 2023. Total Balance as of December 31, 2022 $ 217.6 Foreign currency adjustments (2.0) Balance as of June 30, 2023 $ 215.6 |
Schedule of Information Regarding Intangible Assets | The following table presents certain information regarding our intangible assets and software: Gross Accumulated Net Balance as of June 30, 2023 Intellectual property $ 67.8 $ (43.1) $ 24.7 Customer relationships 29.7 (25.1) 4.6 Software 43.2 (25.2) 18.0 Licenses 33.2 (12.9) 20.3 Brand names and other 9.9 (5.4) 4.5 Total intangible assets and software $ 183.8 $ (111.7) $ 72.1 Balance as of December 31, 2022 Intellectual property $ 75.2 $ (43.2) $ 32.0 Customer relationships 29.9 (24.1) 5.8 Software 37.6 (22.6) 15.0 Licenses 25.9 (9.4) 16.5 Brand names and other 10.6 (5.1) 5.5 Total intangible assets and software $ 179.2 $ (104.4) $ 74.8 |
Schedule of Amortization Expense | The following reflects amortization expense related to intangible assets and software included within Depreciation, amortization and impairments: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Amortization expense (1) $ 10.6 $ 5.0 $ 16.1 $ 9.3 (1) Amortization expense for the three and six months ended June 30, 2023 includes intangible asset and software impairments of $4.8 million. |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Schedule of Supplemental Operating Lease Information | Supplemental balance sheet and cash flow information related to operating leases is as follows: As of June 30, 2023 December 31, 2022 Operating lease right-of-use assets $ 3.7 $ 4.8 Accrued liabilities 2.3 2.3 Operating lease liabilities 1.9 3.1 Total operating lease liabilities $ 4.2 $ 5.4 Weighted average remaining lease term, years 1.8 2.3 Weighted average discount rate 4.9 % 4.9 % Six Months Ended June 30, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 1.2 $ 1.3 |
Maturities of Lease Liabilities | Lease liability maturities: Operating Leases Remainder of 2023 $ 1.2 2024 2.4 2025 0.7 Less: imputed interest (0.1) Total $ 4.2 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following is the summary o f expenses paid to Light & Wonder and settled in cash: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Financial Statement Line Item Royalties to Light & Wonder for third-party IP $ — $ 0.1 $ 0.2 $ 0.4 Cost of revenue Parent services 1.5 1.6 3.1 3.0 General and administrative Distributions to Parent and affiliates, net (1) 0.4 0.1 0.5 0.3 Noncontrolling interest (1) Under the terms of the Operating Agreement, SciPlay Corporation relies on distributions from SciPlay Parent LLC to pay its obligations under the TRA and any other tax obligations. All distributions must be on a pari passu basis, thus initiating a pro-rata distribution to Parent and affiliates. The following is the summary of balances due to affiliates: June 30, 2023 December 31, 2022 Royalties to Light & Wonder for third-party IP $ — $ 0.2 Parent services 0.8 0.4 Reimbursable expenses to (from) Light & Wonder and its subsidiaries 2.4 3.2 $ 3.2 $ 3.8 |
Stockholders_ Equity and Nonc_2
Stockholders’ Equity and Noncontrolling Interest (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Summary of Stock-based Compensation Expense | The following table summarizes stock-based compensation expense that is included in General and administrative expenses: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 SciPlay awards (1) $ 6.9 $ 1.6 $ 12.8 $ 4.1 Parent awards 0.3 (0.1) 0.9 — Total $ 7.2 $ 1.5 $ 13.7 $ 4.1 (1) Includes $4.3 million and $6.6 million of stock-based compensation classified as liability awards for the three and six months ended June 30, 2023 and $0.1 million and $0.7 million for the three and six months ended June 30, 2022, respectively. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Numerator: Net income $ 41.4 $ 32.3 $ 83.2 $ 64.3 Less: net income attributable to the noncontrolling interest 35.8 26.6 72.1 54.2 Net income attributable to SciPlay $ 5.6 $ 5.7 $ 11.1 $ 10.1 Denominator: Weighted average shares of Class A common stock for basic EPS 21.4 24.6 21.7 24.6 Effect of dilutive securities: Stock-based compensation grants 0.9 0.2 1.1 0.2 Weighted average shares of Class A common stock for diluted EPS 22.3 24.8 22.8 24.8 Basic and diluted net income attributable to SciPlay per share: Basic $ 0.26 $ 0.23 $ 0.51 $ 0.41 Diluted $ 0.25 $ 0.23 $ 0.49 $ 0.41 |
Description of the Business a_4
Description of the Business and Summary of Significant Accounting Policies - Narrative (Details) | 6 Months Ended | ||||
Mar. 01, 2022 | May 07, 2019 | Jun. 30, 2023 USD ($) segment | Jun. 30, 2022 USD ($) | Aug. 08, 2023 $ / shares | |
Subsidiary, Sale of Stock [Line Items] | |||||
Number of operating segments | segment | 1 | ||||
Economic interests called by common stock units | 17% | ||||
Revenue recognized | $ 1,200,000 | $ 400,000 | |||
Alictus | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Voting interests acquired | 80% | ||||
Percentage of potential consideration acquired | 20% | ||||
Business combination, contingent consideration, period | 5 years | ||||
Extinguishment of redeemable non-controlling interest liability | 2,900,000 | ||||
Contingent consideration, range of outcomes, low | 0 | ||||
Contingent consideration, range of outcomes, high | $ 200,000,000 | ||||
Acquisition related costs | $ 1,200,000 | ||||
SciPlay Corporation | Light & Wonder | Subsequent Event | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Voting interests acquired | 17% | ||||
Business Acquisition, Share Price | $ / shares | $ 22.95 | ||||
IPO | Common Class A | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Economic interests called by common stock units | 100% |
Description of the Business a_5
Description of the Business and Summary of Significant Accounting Policies - Schedule of Amortization Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | ||||
Amortization expense | $ 10.6 | $ 5 | $ 16.1 | $ 9.3 |
Description of the Business a_6
Description of the Business and Summary of Significant Accounting Policies - Disaggregation of Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Disaggregation of Revenue [Line Items] | |||||
Revenue | $ 189.9 | $ 160.1 | $ 376.3 | $ 318.1 | |
Mobile in-app purchases | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 169.6 | 137.7 | 335.3 | 277.4 | |
Advertising and other | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | [1] | 20.3 | 22.4 | 41 | 40.7 |
North America | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | [2] | 175.9 | 145.7 | 348.8 | 290.6 |
International | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | $ 14 | $ 14.4 | $ 27.5 | $ 27.5 | |
[1] (1) Other primarily represents advertising revenue, which was not material in the periods presented. (1) North America revenue includes revenue derived from the U.S., Canada and Mexico. |
Description of the Business a_7
Description of the Business and Summary of Significant Accounting Policies - Balances in Receivables and Contract Asset and Liability Accounts (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Accounts Receivable | $ 63.7 | $ 51 | |
Contract Assets | [1] | 0.1 | 0.1 |
Contract Liabilities | [2] | $ 2 | $ 3 |
[1] (1) Contract assets are included within Prepaid expenses and other current assets in our consolidated balance sheets. (2) Contract liabilities are included within Accrued liabilities in our consolidated balance sheets. (1) Contract assets are included within Prepaid expenses and other current assets in our consolidated balance sheets. (2) Contract liabilities are included within Accrued liabilities in our consolidated balance sheets. |
Description of the Business a_8
Description of the Business and Summary of Significant Accounting Policies - Schedule of Concentration Risk (Details) - Customer Concentration Risk | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Apple | Revenue Concentration | ||||
Concentration Risk [Line Items] | ||||
Concentration risk | 50.20% | 46.50% | 49.50% | 47.20% |
Apple | Accounts Receivable Concentration | ||||
Concentration Risk [Line Items] | ||||
Concentration risk | 63.50% | 48.30% | ||
Google | Revenue Concentration | ||||
Concentration Risk [Line Items] | ||||
Concentration risk | 33.30% | 34.30% | 33.80% | 34.60% |
Google | Accounts Receivable Concentration | ||||
Concentration Risk [Line Items] | ||||
Concentration risk | 23% | 30.50% | ||
Facebook | Revenue Concentration | ||||
Concentration Risk [Line Items] | ||||
Concentration risk | 11.10% | 11.80% | 11.20% | 12% |
Facebook | Accounts Receivable Concentration | ||||
Concentration Risk [Line Items] | ||||
Concentration risk | 7.40% | 10.70% |
Goodwill, Intangible Assets a_3
Goodwill, Intangible Assets and Software, net - Schedule of Goodwill (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Balance as of December 31, 2022 | $ 217.6 |
Foreign currency adjustments | (2) |
Balance as of June 30, 2023 | $ 215.6 |
Goodwill, Intangible Assets a_4
Goodwill, Intangible Assets and Software, net - Schedule of Information Regarding Intangible Assets (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | $ 183.8 | $ 179.2 |
Accumulated Amortization | (111.7) | (104.4) |
Net Balance | 72.1 | 74.8 |
Intellectual property | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 67.8 | 75.2 |
Accumulated Amortization | (43.1) | (43.2) |
Net Balance | 24.7 | 32 |
Customer relationships | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 29.7 | 29.9 |
Accumulated Amortization | (25.1) | (24.1) |
Net Balance | 4.6 | 5.8 |
Software | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 43.2 | 37.6 |
Accumulated Amortization | (25.2) | (22.6) |
Net Balance | 18 | 15 |
Licenses | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 33.2 | 25.9 |
Accumulated Amortization | (12.9) | (9.4) |
Net Balance | 20.3 | 16.5 |
Brand names and other | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 9.9 | 10.6 |
Accumulated Amortization | (5.4) | (5.1) |
Net Balance | $ 4.5 | $ 5.5 |
Goodwill, Intangible Assets a_5
Goodwill, Intangible Assets and Software, net - Intangible Amortization Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 10.6 | $ 5 | $ 16.1 | $ 9.3 |
Impairment of intangible assets | $ 4.8 |
Goodwill, Intangible Assets a_6
Goodwill, Intangible Assets and Software, net - Narrative (Details) $ in Millions | 3 Months Ended |
Jun. 30, 2023 USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |
Impairment of intangible assets | $ 4.8 |
Other Intangible Assets | |
Finite-Lived Intangible Assets [Line Items] | |
Impairment of intangible assets | 4.1 |
Software | |
Finite-Lived Intangible Assets [Line Items] | |
Impairment of intangible assets | $ 0.7 |
Leases - Supplemental Operating
Leases - Supplemental Operating Lease Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Leases [Abstract] | |||||
Operating lease, expense | $ 0.7 | $ 0.7 | $ 1.4 | $ 1.4 | |
Operating lease right-of-use assets | 3.7 | 3.7 | $ 4.8 | ||
Accrued liabilities | 2.3 | 2.3 | 2.3 | ||
Operating lease liabilities | 1.9 | 1.9 | 3.1 | ||
Total operating lease liabilities | $ 4.2 | 4.2 | $ 5.4 | ||
Cash paid for amounts included in the measurement of lease liabilities: | |||||
Operating cash flows for operating leases | $ 1.2 | $ 1.3 | |||
Weighted average remaining lease term, years | 1 year 9 months 18 days | 1 year 9 months 18 days | 2 years 3 months 18 days | ||
Weighted average discount rate | 4.90% | 4.90% | 4.90% |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) $ in Millions | Jun. 30, 2023 USD ($) |
Leases [Abstract] | |
Remainder of 2023 | $ 1.2 |
2024 | 2.4 |
2025 | 0.7 |
Less: imputed interest | (0.1) |
Total | $ 4.2 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Income Tax Disclosure [Line Items] | |||||
Economic interests called by common stock units | 17% | ||||
Effective tax rates | 3.70% | 2.10% | 6.20% | 4.30% | |
Total tax receivable agreement liability | $ 64.3 | $ 64.3 | $ 64.3 | ||
Tax receivable agreement liability, current | $ 4.1 | $ 4.1 | $ 4.1 | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21% | 21% | |||
Scientific Games Corporation | |||||
Income Tax Disclosure [Line Items] | |||||
Economic interests called by common stock units | 83% |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |||||
Related Party Transaction [Line Items] | |||||||||||
Parent services | $ 1.5 | $ 1.6 | $ 3.1 | $ 3 | |||||||
Distributions to Scientific Games and affiliates, net | 0.4 | [1] | $ 0.1 | 0.1 | [1] | $ 0.2 | 0.5 | [1] | 0.3 | [1] | |
Due to affiliate | 3.2 | 3.2 | $ 3.8 | ||||||||
Royalties to Light & Wonder for third-party IP | Related Party | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Due to affiliate | 0 | 0 | 0.2 | ||||||||
Parent services | Related Party | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Due to affiliate | 0.8 | 0.8 | 0.4 | ||||||||
Reimbursable expenses to (from) Light & Wonder and its subsidiaries | Related Party | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Due to affiliate | 2.4 | 2.4 | $ 3.2 | ||||||||
Intellectual property, Third-party | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Royalties to Light & Wonder for third-party IP | $ 0 | $ 0.1 | $ 0.2 | $ 0.4 | |||||||
[1] (1) Under the terms of the Operating Agreement, SciPlay Corporation relies on distributions from SciPlay Parent LLC to pay its obligations under the TRA and any other tax obligations. All distributions must be on a pari passu basis, thus initiating a pro-rata distribution to Parent and affiliates. |
Stockholders_ Equity and Nonc_3
Stockholders’ Equity and Noncontrolling Interest (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | May 03, 2023 | May 09, 2022 | |||
Class of Stock [Line Items] | |||||||||
Economic interests called by common stock units | 17% | ||||||||
Total compensation expense | $ 7.2 | $ 1.5 | $ 13.7 | $ 4.1 | |||||
Unrecognized stock-based compensation expense | $ 32 | $ 32 | |||||||
Period expected to be recognized | 1 year 2 months 12 days | ||||||||
Stock repurchase program, authorized amount | $ 60 | $ 60 | |||||||
Repurchases of stock (in shares) | 1.4 | ||||||||
Repurchases of stock | $ 14.9 | $ 8.2 | 7.1 | $ 23.1 | |||||
Scientific Games Corporation | |||||||||
Class of Stock [Line Items] | |||||||||
Economic interests called by common stock units | 83% | ||||||||
LTIP | |||||||||
Class of Stock [Line Items] | |||||||||
Total compensation expense | 6.9 | 1.6 | $ 12.8 | [1] | 4.1 | [1] | |||
Equity Incentive Award Plan, Parent | |||||||||
Class of Stock [Line Items] | |||||||||
Total compensation expense | 0.3 | (0.1) | 0.9 | 0 | |||||
Performance-Based Restricted Stock Units (PRSUs) | |||||||||
Class of Stock [Line Items] | |||||||||
Unrecognized stock-based compensation expense | 15.7 | 15.7 | |||||||
Liability Awards | |||||||||
Class of Stock [Line Items] | |||||||||
Total compensation expense | $ 4.3 | $ 0.1 | $ 6.6 | $ 0.7 | |||||
[1] (1) Includes $4.3 million and $6.6 million of stock-based compensation classified as liability awards for the three and six months ended June 30, 2023 and $0.1 million and $0.7 million for the three and six months ended June 30, 2022, respectively. |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||
Net income | $ 41.4 | $ 41.8 | $ 32.3 | $ 32 | $ 83.2 | $ 64.3 |
Less: Net income attributable to the noncontrolling interest | 35.8 | 26.6 | 72.1 | 54.2 | ||
Net income attributable to SciPlay | $ 5.6 | $ 5.7 | $ 11.1 | $ 10.1 | ||
Denominator: | ||||||
Weighted average shares of Class A common stock for basic EPS (in shares) | 21.4 | 24.6 | 21.7 | 24.6 | ||
Effect of dilutive securities: | ||||||
Stock-based compensation grants (in shares) | 0.9 | 0.2 | 1.1 | 0.2 | ||
Weighted average shares of Class A common stock for diluted EPS (in shares) | 22.3 | 24.8 | 22.8 | 24.8 | ||
Net income attributable to SciPlay per share of Class A common stock - basic (in dollars per share) | $ 0.26 | $ 0.23 | $ 0.51 | $ 0.41 | ||
Net income attributable to SciPlay per share of Class A common stock - diluted (in dollars per share) | $ 0.25 | $ 0.23 | $ 0.49 | $ 0.41 | ||
Noncontrolling interest | ||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||
Net income | $ 35.8 | $ 36.3 | $ 26.6 | $ 27.6 |
Litigation (Details)
Litigation (Details) - Pending Litigation - Putative Class Action Filed By Hannelore Boorn | Sep. 15, 2022 USD ($) |
Loss Contingencies [Line Items] | |
Loss contingency, claim period | 5 years |
Loss contingency, triggering amount in lost funds by plaintiff | $ 5 |
Loss contingency, triggering amount in lost funds by plaintiff, period | 1 day |