Scientific Games Corporation (NASDAQ:SGMS) revealed on Friday that Kevin Sheehan, former Norwegian Cruise Line CEO and President, had been appointed as the new CEO and President and as a member of the Board of Directors effective that same day. As a result, Gavin Isaacs, now former Scientific Games CEO and President, is the new Scientific Games Board of Directors Vice Chairman.
Isaacs is pleased to step down from his post to take on what he deems as a “more strategic role” in the company’s Board of Directors. Moreover, he noted that he is more than delighted to pass the leadership to Sheehan, citing his experience and expertise as vital for realizing the long-term prospects of Scientific Games.
Sheehan has been the CEO and President of Norwegian Cruise Line for seven years, during which he led the company to materialize its expansion in the industry. Prior to that, he served as a senior adviser at Cerberus Capital Management.
He also served as the CEO of Vehicle Services Division, the Chairman of the Board, and the company’s Chief Financial Officer (CFO) during his nine-year stay with Cendant Corporation in the early 2000s.
Q2 Financial Highlights
On Friday, Scientific Games has also released its earnings report for the second quarter, disclosing a year-over-year revenue increase of 5% to $729.20 million from $691.50 million. Interactive revenue jumped 62% year-over-year. Meanwhile, Gaming Machine Sales revenue and Instant Games revenue both surged 11% year-over-year, respectively.
Furthermore, Scientific Games had an operating income of $59.10 million. Net loss also tumbled nearly 50% year-over-year to $51.70 million.
The company ended the period with cash and cash equivalents of $558.80 million.
Isaacs reiterated that the second quarter marks the third consecutive period that Scientific Games delivered on its guidance accordingly.
Michael Quartieri, Scientific Games Executive Vice President (EVP) and CFO, stated that the company is well-positioned in terms of its financial capabilities. Quartieri boasted that the fiscal discipline employed by Scientific Games, together with a strengthened focus on better operational capital, has been essential in generating bigger cash flows.