Inspired Entertainment, Inc. (NASDAQ:INSE) Q1 2024 Earnings Conference Call May 10, 2024 8:30 AM ET

Company Participants

Lorne Weil - Executive Chairman
Brooks Pierce - CEO
Marilyn Jentzen - Interim-CFO
Eric Carrera - Corporate Finance Professional

Conference Call Participants

Barry Jonas - Truist Securities
Ryan Sigdahl - Craig-Hallum Capital Group
Jordan Bender - Citizens JMP
David Bain - B. Riley Securities
Chad Beynon - Macquarie

Operator

Good morning, everyone, and welcome to the Inspired Entertainment First Quarter 2024 Conference Call. [Operator Instructions]. Please note, today's event is being recorded.

Please refer to the company's safe harbor statement that appears in the first quarter 2024 earnings press release which is also available in the Investors section of the company's website at www.inseinc.com. This safe harbor statement also applies to today's conference call as the company's management will be making certain statements that will be considered forward-looking under securities laws and rules of the SEC. These statements are based on the management's current expectations or beliefs and are subject to risks, uncertainties and changes in circumstances. In addition, please note that the company will discuss both GAAP and non-GAAP financial measures. A reconciliation is included in the earnings press release.

With that completed, I would now like to turn the conference call over to Lorne Weil, the company's Executive Chairman. Mr. Weil, please go ahead.

Lorne Weil

Thank you, operator. Good morning, everybody, and thank you for joining our first quarter conference call.

Here with me are CEO, Brooks Pierce who will provide prepared remarks in a few moments as well as Marilyn Jentzen and Eric Carrera, who are available for Q&A.

As we had more or less previewed a few weeks ago in our year-end conference call, the first quarter was to put it mildly a metaphor for Murphy's law. To date, we've spent well in excess of $10 million in accounting, audit and legal expenses in connection with the accounting restatement, much of which was below the line, but a meaningful proportion impacted EBITDA, and of course, 100% of that impacted cash. We had other significant onetime expenses in the first quarter. And although our equipment sales backlog is currently at record levels, delivery dates have moved into the second half of the year.

Similarly, during the quarter, we continue to spend significantly for recurring revenue growth initiatives, which will have some impact in the second quarter, but which we are confident will continue to grow strongly throughout the year. But before elaborating further on these and other developments, let me preface these remarks by saying that we are anticipating a dramatic improvement in EBITDA in the second quarter.