Autotote Reports 1st Quarter 2001 Results Above Expectations

Revenue Increased to $112.1 Million & EBITDA was $24.7 Million



Autotote to Change its Name to Scientific Games Corporation

Effective April 27, 2001



Apr 23, 2001, 01:00 ET from Autotote Corporation

    NEW YORK, April 23 /PRNewswire Interactive News Release/ --
 AUTOTOTE CORPORATION (Amex:   TTE) today announced results for the first quarter
 ended March 31, 2001 that exceeded expectations.  In addition, Autotote
 announced that it would change its corporate name to Scientific Games
 Corporation and its stock exchange symbol to SGM (Amex:   SGM) effective April
 27, 2001.
     Revenues for the first quarter of 2001 were $112.1 million compared to
 $45.6 million for the comparable period in fiscal 2000.  EBITDA (earnings
 before interest, taxes, depreciation and amortization) was $24.7 million in
 the first quarter of 2001 versus $10.5 million for the comparable period in
 2000.  The net loss before non-cash preferred stock dividends was $2.4 million
 or $0.06 per share compared to net income of $0.8 million or $0.02 per share
 in the first quarter of 2000.
     On a pro forma basis to reflect the September 2000 acquisition of
 Scientific Games, first quarter revenue was $112.1 million compared to
 $104.7 million for the comparable period in 2000, an increase of 7.1%.  EBITDA
 increased by 15.4% to $24.7 million from $21.4 million.  Pro forma net income
 before the non-cash preferred stock dividends and amortization of goodwill and
 other acquisition-related intangible assets was $1.2 million in the first
 quarter of 2001 or $0.03 per fully diluted share.
     Lorne Weil, Chairman and CEO of Autotote, commented, "Our change of name
 from Autotote Corporation to Scientific Games Corporation reflects our feeling
 that the latter more accurately and completely describes the breadth of
 products and services we offer to the global gaming industry. At the same time
 we will continue to operate in the worldwide pari-mutuel industry under the
 Autotote name."
     Mr. Weil continued, "I am pleased to report that our first quarter was a
 very strong one, as expected, across all our businesses.  Since we acquired
 Scientific Games, we have indicated that the process of combining and
 integrating Autotote and Scientific Games in the latter part of 2000 would
 obscure the true financial potential of the company. We forecasted that the
 underlying earnings power of the combined businesses would begin to become
 clear in the first calendar quarter of 2001. We are pleased that this has
 indeed come to pass.  With revenue of $112.1 million and EBITDA of
 $24.7 million in the quarter, we believe we are on track to deliver an
 excellent year, in line with our expectations at the time of the acquisition."
     "Pari-mutuel, venue management and lottery systems all contributed to the
 improvement.  On-line lottery sales and EBITDA approximately doubled
 reflecting the continued expansion of this line of business.  Printed products
 revenues were still slightly below our longer-term target but the Alpharetta
 facility was up to 3.3 billion tickets in the first quarter, from 2.9 billion
 in the fourth quarter of 2000.  Revenue and earnings in prepaid cellular phone
 cards continue to expand and we have great expectations for this early stage
 business."
     "We believe that our two core marketplaces -- lottery and pari-mutuel
 wagering -- will continue to be resistant to economic downturns as they have
 consistently demonstrated in the past.  US instant lottery retail sales were
 $16.2 billion in 2000, an increase of approximately 10%, on-line lottery sales
 were $19.1 billion in 2000 and thoroughbred racing handle, about $15 billion
 last year, continues to grow about 6% annually, with "remote" wagering growing
 at roughly double that rate.  So our primary markets are in excellent shape
 overall and we intend to continue to pursue strategies intended to enlarge
 both the size of the markets themselves as well as our roles within them."
 
     "Among important first quarter details were the following:
 
     -- As mentioned previously, on-line lottery sales in the first quarter
        were nearly twice last year's level reflecting the addition of both
        New Hampshire and Vermont in 2000. Later this year we can look forward
        to adding two more lotteries in Maine and Iowa, as well as the Jamaica
        Lottery Corp, with whom we recently signed a sales and facilities
        management contract.
 
     -- Instant ticket shipments have grown steadily in line with increasing
        production levels, and we anticipate these trends to continue in coming
        quarters. At the same time we are seeing especially strong demand in
        our instant ticket Cooperative Services group, reflecting the overall
        strength in the ticket market as well as the effectiveness of our own
        service offering.
 
     -- In addition to revenue growth, our pari-mutuel group is experiencing
        significant benefit from cost reduction programs initiated in 2000; the
        latter impact has been particularly pronounced in the communications
        business where our move to 8 to 1 compression has doubled its EBITDA.
 
     -- By means of a facilities management revenue sharing arrangement, the
        Fair Grounds' Race Course in New Orleans launched its Internet wagering
        site http://www.FGNetBet.com using the Company's TrackPlay(TM) wagering
        platform, and acceptance by the players has been very strong.  To the
        extent more enabling legislation is passed in the US and abroad, we
        expect to apply this business model widely throughout our customer
        base."
 
      Guidance
      Autotote noted that it continues to expect strong double-digit growth in
 its on-line lottery group as two new systems come on line in Maine and Iowa
 and business remains strong in its other states.  Printed products income
 should grow modestly as the new press approaches maximum run rates that will
 continue to lower production costs.  The company also expects somewhat higher
 but single-digit revenue growth in the pari-mutuel and venue management
 segments in the second and third quarters - the height of the racing season.
 Prepaid cellular phone cards, which are approximately 10% of total revenues,
 are expected to continue to gain ground as cellular phone use climbs.  For
 2001, Autotote confirmed that it looks forward to revenues of approximately
 $400-450 million and EBITDA of $100-105 million.  The company also stated that
 it expects to have pro forma net income before non-cash preferred stock
 dividends and excluding amortization of goodwill and other acquisition-related
 intangible assets in each of the next three quarters.
 
     A conference call to discuss first quarter 2001 results will be held on
 Monday, April 23, 2001 at 11:30 A.M. Eastern Time.  The Dial In Number
 719-457-2658.  A replay will be available until 11:00 P.M. Eastern Time on
 Friday, April 27, 2001 and can be accessed by dialing 719-457-0820: the
 reservation number is 469518.  The call will also be broadcast live and
 archived for 30 days on the Internet via PR Newswire's website, located at
 http://www.videonewswire.com/AUTOTOTE/042301/.
 
 
 
     About Autotote
     AUTOTOTE CORPORATION is the leading integrated supplier of instant
 tickets, systems and services to lotteries, and the leading supplier of
 wagering systems and services to pari-mutuel operators.  It is also a licensed
 pari-mutuel gaming operator in Connecticut, Holland and Germany and a major
 supplier of prepaid cellular phone cards to telephone companies.  Autotote's
 customers are in the United States and more than 60 other countries.  For more
 information about Autotote, please visit the Company's web site at
 http://www.scientificgames.com.
 
     This press release includes statements that constitute forward-looking
 statements made pursuant to the Safe Harbor provisions of the Private
 Securities Litigation Reform Act of 1995.  This information involves risks and
 uncertainties that could cause actual results to differ materially from the
 forward-looking statements.  For certain information regarding these risks and
 uncertainties, reference is made to Autotote's Annual Report on Form 10-K for
 the year ended October 31, 2000 and the Transition Report for the period from
 November 1, 2000 through December 31, 2000.
 
                     AUTOTOTE CORPORATION AND SUBSIDIARIES
                     CONSOLIDATED STATEMENTS OF OPERATIONS
 
                   Three Months Ended March 31, 2000 and 2001
              (Unaudited, in thousands, except per share amounts)
 
                                                         2000           2001
 
     Operating revenues:
     Services                                         $37,659         88,040
     Sales                                              7,953         24,068
                                                       45,612        112,108
 
     Operating expenses (exclusive of depreciation
      and amortization shown below):
     Services                                          24,493         58,113
 
     Sales                                              3,893         14,707
                                                       28,386         72,820
 
         Total gross profit                            17,226         39,288
 
     Selling, general and administrative expenses       6,731         14,625
 
     Depreciation and amortization                      5,370         13,608
 
     Operating income                                   5,125         11,055
 
     Other deductions:
     Interest expense                                   4,253         13,580
 
     Other (income) expense                              (78)            244
                                                        4,175         13,824
 
     Income (loss) before income tax expense (benefit)    950        (2,769)
 
     Income tax expense (benefit)                         116          (332)
 
     Net income (loss)                                    834        (2,437)
 
     Convertible preferred stock dividend                  --          1,699
 
     Net income (loss) available to common
      stockholders                                       $834        (4,136)
 
 
     Basic and diluted net income (loss) per share:
     Net income (loss) per share                        $0.02         (0.06)
 
     Net income (loss) available to
      common stockholders                               $0.02         (0.10)
 
 
     Weighted average number of shares used in per
      share calculations:
     Basic shares                                      36,544         40,163
 
     Diluted shares                                    41,888         40,163
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X38054883
 
 

SOURCE Autotote Corporation
    NEW YORK, April 23 /PRNewswire Interactive News Release/ --
 AUTOTOTE CORPORATION (Amex:   TTE) today announced results for the first quarter
 ended March 31, 2001 that exceeded expectations.  In addition, Autotote
 announced that it would change its corporate name to Scientific Games
 Corporation and its stock exchange symbol to SGM (Amex:   SGM) effective April
 27, 2001.
     Revenues for the first quarter of 2001 were $112.1 million compared to
 $45.6 million for the comparable period in fiscal 2000.  EBITDA (earnings
 before interest, taxes, depreciation and amortization) was $24.7 million in
 the first quarter of 2001 versus $10.5 million for the comparable period in
 2000.  The net loss before non-cash preferred stock dividends was $2.4 million
 or $0.06 per share compared to net income of $0.8 million or $0.02 per share
 in the first quarter of 2000.
     On a pro forma basis to reflect the September 2000 acquisition of
 Scientific Games, first quarter revenue was $112.1 million compared to
 $104.7 million for the comparable period in 2000, an increase of 7.1%.  EBITDA
 increased by 15.4% to $24.7 million from $21.4 million.  Pro forma net income
 before the non-cash preferred stock dividends and amortization of goodwill and
 other acquisition-related intangible assets was $1.2 million in the first
 quarter of 2001 or $0.03 per fully diluted share.
     Lorne Weil, Chairman and CEO of Autotote, commented, "Our change of name
 from Autotote Corporation to Scientific Games Corporation reflects our feeling
 that the latter more accurately and completely describes the breadth of
 products and services we offer to the global gaming industry. At the same time
 we will continue to operate in the worldwide pari-mutuel industry under the
 Autotote name."
     Mr. Weil continued, "I am pleased to report that our first quarter was a
 very strong one, as expected, across all our businesses.  Since we acquired
 Scientific Games, we have indicated that the process of combining and
 integrating Autotote and Scientific Games in the latter part of 2000 would
 obscure the true financial potential of the company. We forecasted that the
 underlying earnings power of the combined businesses would begin to become
 clear in the first calendar quarter of 2001. We are pleased that this has
 indeed come to pass.  With revenue of $112.1 million and EBITDA of
 $24.7 million in the quarter, we believe we are on track to deliver an
 excellent year, in line with our expectations at the time of the acquisition."
     "Pari-mutuel, venue management and lottery systems all contributed to the
 improvement.  On-line lottery sales and EBITDA approximately doubled
 reflecting the continued expansion of this line of business.  Printed products
 revenues were still slightly below our longer-term target but the Alpharetta
 facility was up to 3.3 billion tickets in the first quarter, from 2.9 billion
 in the fourth quarter of 2000.  Revenue and earnings in prepaid cellular phone
 cards continue to expand and we have great expectations for this early stage
 business."
     "We believe that our two core marketplaces -- lottery and pari-mutuel
 wagering -- will continue to be resistant to economic downturns as they have
 consistently demonstrated in the past.  US instant lottery retail sales were
 $16.2 billion in 2000, an increase of approximately 10%, on-line lottery sales
 were $19.1 billion in 2000 and thoroughbred racing handle, about $15 billion
 last year, continues to grow about 6% annually, with "remote" wagering growing
 at roughly double that rate.  So our primary markets are in excellent shape
 overall and we intend to continue to pursue strategies intended to enlarge
 both the size of the markets themselves as well as our roles within them."
 
     "Among important first quarter details were the following:
 
     -- As mentioned previously, on-line lottery sales in the first quarter
        were nearly twice last year's level reflecting the addition of both
        New Hampshire and Vermont in 2000. Later this year we can look forward
        to adding two more lotteries in Maine and Iowa, as well as the Jamaica
        Lottery Corp, with whom we recently signed a sales and facilities
        management contract.
 
     -- Instant ticket shipments have grown steadily in line with increasing
        production levels, and we anticipate these trends to continue in coming
        quarters. At the same time we are seeing especially strong demand in
        our instant ticket Cooperative Services group, reflecting the overall
        strength in the ticket market as well as the effectiveness of our own
        service offering.
 
     -- In addition to revenue growth, our pari-mutuel group is experiencing
        significant benefit from cost reduction programs initiated in 2000; the
        latter impact has been particularly pronounced in the communications
        business where our move to 8 to 1 compression has doubled its EBITDA.
 
     -- By means of a facilities management revenue sharing arrangement, the
        Fair Grounds' Race Course in New Orleans launched its Internet wagering
        site http://www.FGNetBet.com using the Company's TrackPlay(TM) wagering
        platform, and acceptance by the players has been very strong.  To the
        extent more enabling legislation is passed in the US and abroad, we
        expect to apply this business model widely throughout our customer
        base."
 
      Guidance
      Autotote noted that it continues to expect strong double-digit growth in
 its on-line lottery group as two new systems come on line in Maine and Iowa
 and business remains strong in its other states.  Printed products income
 should grow modestly as the new press approaches maximum run rates that will
 continue to lower production costs.  The company also expects somewhat higher
 but single-digit revenue growth in the pari-mutuel and venue management
 segments in the second and third quarters - the height of the racing season.
 Prepaid cellular phone cards, which are approximately 10% of total revenues,
 are expected to continue to gain ground as cellular phone use climbs.  For
 2001, Autotote confirmed that it looks forward to revenues of approximately
 $400-450 million and EBITDA of $100-105 million.  The company also stated that
 it expects to have pro forma net income before non-cash preferred stock
 dividends and excluding amortization of goodwill and other acquisition-related
 intangible assets in each of the next three quarters.
 
     A conference call to discuss first quarter 2001 results will be held on
 Monday, April 23, 2001 at 11:30 A.M. Eastern Time.  The Dial In Number
 719-457-2658.  A replay will be available until 11:00 P.M. Eastern Time on
 Friday, April 27, 2001 and can be accessed by dialing 719-457-0820: the
 reservation number is 469518.  The call will also be broadcast live and
 archived for 30 days on the Internet via PR Newswire's website, located at
 http://www.videonewswire.com/AUTOTOTE/042301/.
 
 
 
     About Autotote
     AUTOTOTE CORPORATION is the leading integrated supplier of instant
 tickets, systems and services to lotteries, and the leading supplier of
 wagering systems and services to pari-mutuel operators.  It is also a licensed
 pari-mutuel gaming operator in Connecticut, Holland and Germany and a major
 supplier of prepaid cellular phone cards to telephone companies.  Autotote's
 customers are in the United States and more than 60 other countries.  For more
 information about Autotote, please visit the Company's web site at
 http://www.scientificgames.com.
 
     This press release includes statements that constitute forward-looking
 statements made pursuant to the Safe Harbor provisions of the Private
 Securities Litigation Reform Act of 1995.  This information involves risks and
 uncertainties that could cause actual results to differ materially from the
 forward-looking statements.  For certain information regarding these risks and
 uncertainties, reference is made to Autotote's Annual Report on Form 10-K for
 the year ended October 31, 2000 and the Transition Report for the period from
 November 1, 2000 through December 31, 2000.
 
                     AUTOTOTE CORPORATION AND SUBSIDIARIES
                     CONSOLIDATED STATEMENTS OF OPERATIONS
 
                   Three Months Ended March 31, 2000 and 2001
              (Unaudited, in thousands, except per share amounts)
 
                                                         2000           2001
 
     Operating revenues:
     Services                                         $37,659         88,040
     Sales                                              7,953         24,068
                                                       45,612        112,108
 
     Operating expenses (exclusive of depreciation
      and amortization shown below):
     Services                                          24,493         58,113
 
     Sales                                              3,893         14,707
                                                       28,386         72,820
 
         Total gross profit                            17,226         39,288
 
     Selling, general and administrative expenses       6,731         14,625
 
     Depreciation and amortization                      5,370         13,608
 
     Operating income                                   5,125         11,055
 
     Other deductions:
     Interest expense                                   4,253         13,580
 
     Other (income) expense                              (78)            244
                                                        4,175         13,824
 
     Income (loss) before income tax expense (benefit)    950        (2,769)
 
     Income tax expense (benefit)                         116          (332)
 
     Net income (loss)                                    834        (2,437)
 
     Convertible preferred stock dividend                  --          1,699
 
     Net income (loss) available to common
      stockholders                                       $834        (4,136)
 
 
     Basic and diluted net income (loss) per share:
     Net income (loss) per share                        $0.02         (0.06)
 
     Net income (loss) available to
      common stockholders                               $0.02         (0.10)
 
 
     Weighted average number of shares used in per
      share calculations:
     Basic shares                                      36,544         40,163
 
     Diluted shares                                    41,888         40,163
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X38054883
 
 SOURCE  Autotote Corporation

RELATED LINKS

http://www.autotote.com