NEW YORK, March 14 /PRNewswire-FirstCall/ -- Scientific Games (Nasdaq:
SGMS) announced today that it has sold its racing communications business
to Roberts Communications Network, LLC of Las Vegas, Nevada (Roberts). The
sale includes the simulcast transmission division of Scientific Games
Racing, LLC (SGR) and a 70% membership interest in the SGR data
communications business known as NASRIN(TM) (North American Simulcast
Racing Information Network). Churchill Downs (Nasdaq: CHDN), through one of
its wholly-owned subsidiaries, owns the remaining 30% membership interest
in NASRIN(TM). Both the SGR simulcast transmission division and the 70%
membership interest in NASRIN(TM) will be contributed to Roberts in
exchange for a 29.4% membership interest in Roberts as consideration.
Roberts will retain a 70.6% membership interest.
Roberts will continue to operate the business with Todd Roberts
remaining as the company's President and CEO, and Joseph Hill continuing as
its Vice President.
The transaction will create certain economic and operational synergies
which are expected to be put to use as follows:
* Creation of a state of the art delivery platform which more effectively
provides content to all types of devices including televisions,
computers and mobile phones.
* Increased content distribution to and from domestic and international
locations, (both commercial and residential), by extending the coverage
area of the delivery platform.
* Tightened security to reduce signal piracy and illegal uses of the
content.
* Improvement of the quality of service to a "Six Sigma" level to reduce
revenue loss caused by downtime.
* Automation of the customer interface aspects of the delivery platform
such as scheduling, inventory control and accounting to make the
services more user-friendly.
* Accelerated implementation of the above to increase pari-mutuel
wagering handle and thereby revenue for the racing industry.
These additional benefits will not only be available to the racing
industry but also to the many non-racing customers which Roberts currently
serves and intends to pursue in the sports, entertainment, educational, and
ethnic programming industries.
"The racing industry will benefit from a more comprehensive network for
both the televising of the races and the transmission of betting
information," said Lorne Weil, Chairman and CEO of Scientific Games.
"This transaction facilitates our ability to implement a new global
delivery platform to distribute content, whether it be audio, video or
data, in a future-proof fashion that will accelerate the industry's race to
improve its bottom line." said Todd Roberts, President and CEO of Roberts
Communications Network.
The Scientific Games racing communications divisions accounted for
approximately $13 million of revenue in 2006. Income statement contribution
from the divisions will now be reported as equity income, and Scientific
Games expects the transaction to be accretive to earnings.
About Scientific Games
Scientific Games Corporation is the leading integrated supplier of
instant tickets, systems and services to lotteries, a leading supplier of
fixed odds betting terminals and systems, interactive sports betting
terminals and systems, and wagering systems and services to pari-mutuel
operators. It is also a licensed pari-mutuel gaming operator in
Connecticut, Maine and the Netherlands and is a leading supplier of prepaid
phone cards to telephone companies. Scientific Games' customers are in the
United States and more than 60 other countries. For more information about
Scientific Games, please visit our web site at
http://www.scientificgames.com.
About Roberts Communications Network
Roberts Communications Network is the leading communications services
provider to the pari-mutuel industry. Roberts has been supplying the pari-
mutuel industry since 1984, and was a pioneer in the creation of
simulcasting for the racing industry. Its services have helped fuel the
explosive growth of simulcasting to their current levels. Diversified in
recent years, Roberts now serves many industries with a variety of
satellite and terrestrial communications services over many technology
platforms.
Forward-Looking Statements
In this press release we make "forward-looking statements" within the
meaning of the United States Private Securities Litigation Reform Act of
1995. In some cases, forward-looking statements can be identified by the
use of forward-looking terminology such as "may," "will," "estimate,"
"intend," "continue," "believe," "expect" or "anticipate," "could,"
"optimistic," "potential," "opportunity," "eventually," or the negatives
thereof, variations thereon or similar terminology.
These forward-looking statements are based upon management's current
expectations, assumptions and estimates and are not guarantees of future
results or performance. Actual outcomes may differ from those projected in
forward-looking statements due to a variety of risks and uncertainties and
other factors, including relating to the following:
* the availability and adequacy of our cash flow to satisfy our
obligations, including our debt service obligations and our need for
additional funds required to support capital improvements, development
and acquisitions;
* economic, competitive, demographic, business and other conditions in our
local, regional and international markets;
* changes or developments in the laws, regulations or taxes in the gaming,
racing and lottery industries;
* actions taken or omitted to be taken by third parties, including
customers, suppliers, competitors and shareholders, as well as
legislative, regulatory, judicial and other governmental authorities;
* changes in business strategy, capital improvements, development plans,
including those due to environmental remediation concerns, or changes in
personnel or their compensation, including federal, state and local
minimum wage requirements;
* an inability to enter into new contracts or renew existing contracts or
the early termination of our existing contracts;
* an inability to engage in or complete future acquisitions;
* the loss of any license or permit, including the failure to obtain an
unconditional renewal of a required gaming license on a timely basis;
and
* resolution of any pending or future litigation in a manner adverse to
us.
Additional information regarding risks and uncertainties and other
factors that could cause actual results to differ materially from those
contemplated in forward-looking is included from to time in the Company's
filings with the Securities and Exchange Commission, including the
Company's reports on Forms 10-K, 10-Q and 8-K. Forward-looking statements
speak only as of the date they are made, and except for our ongoing
obligations under the U.S. federal securities laws, we undertake no
obligation to publicly update any forward- looking statements whether as a
result of new information, future events or otherwise.
Company Contacts:
Scientific Games
Investor Relations
212-754-2233
Roberts Communications Network
Todd Roberts, President and CEO
702-227-7510
SOURCE Scientific Games
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Related links:
http://www.scientificgames.com
http://www.prnewswire.com/comp/117695.html /
CONTACT:
Scientific Games, Investor Relations,
+1-212-754-2233; or Todd Roberts, President and CEO of Roberts
Communications Network, +1-702-227-7510
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