LONDON, May 21, 2018 /PRNewswire/ -- International Game Technology PLC ("IGT") (NYSE:IGT) today reported financial results for the first quarter ended March 31, 2018. Tomorrow, at 8:00 a.m. EDT, management will host a conference call and webcast to present the first quarter results; access details are provided below.
"Compelling content and technology solutions are driving our results," said Marco Sala, CEO of IGT. "Lottery same-store revenue growth was among the highest levels in the last several quarters, even in our largest markets. A sharp increase in systems sales, double-digit growth in global gaming machine replacement unit shipments, and sequential improvement in the North America installed base confirm the good momentum of our global Gaming business. The positive underlying contribution from each of our operating segments provides a strong start to the year."
"We are solidly positioned to achieve our 2018 strategic and financial goals," said Alberto Fornaro, CFO of IGT. "With revenue growing 5% and Adjusted EBITDA up 18%, our first quarter results are some of the best we've reported."
Overview of Consolidated First Quarter Results
Quarter Ended |
Y/Y |
Constant | ||
2018 (1) |
2017 |
(%) |
(%) | |
(In $ millions, unless otherwise noted) |
||||
Revenue |
1,207 |
1,153 |
5% |
(-2%) |
Operating income |
197 |
119 |
65% |
48% |
Net loss per diluted share |
($0.51) |
($0.27) |
N/M |
|
Net debt |
7,525 |
7,398 |
2% |
|
Adjusted EBITDA |
436 |
371 |
18% |
8% |
Adjusted operating income |
251 |
238 |
6% |
(-3%) |
Adjusted net income per diluted share |
$0.15 |
$0.29 |
(-48%) |
Note: Adjusted EBITDA, adjusted operating income, and adjusted net income per diluted share are non-GAAP financial measures. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are provided at the end of this news release. |
(1) On January 1, 2018, IGT adopted ASU 2014-09 (Topic 606), Revenue from Contracts with Customers ("ASC 606"). This positively impacted Revenue in the first quarter by $3 million and EBITDA and Adjusted EBITDA by $15 million. Comparative schedules summarizing the impact on the first quarter Condensed Consolidated Statements of Operations and Condensed Consolidated Balance Sheets are included later in this release. |
Consolidated revenue was $1,207 million, up 5% from the prior-year quarter
Adjusted EBITDA rose 18% to $436 million, up 14% at constant currency and scope
Adjusted operating income was $251 million, a 6% increase from the prior-year period
Interest expense was $110 million compared to $115 million in the prior-year period
Provision for income taxes rose to $61 million from a $10 million benefit in the prior-year period
Net loss attributable to IGT was $103 million in the quarter; Adjusted net income attributable to IGT was $31 million
Net loss per diluted share of ($0.51); Adjusted net income per diluted share of $0.15
Cash from operations was $77 million compared to $294 million in the prior-year quarter, the decline primarily attributed to
Cash and cash equivalents were $570 million as of March 31, 2018, compared to $1,057 million as of December 31, 2017
Net debt was $7,525 million as of March 31, 2018, compared to $7,319 million as of December 31, 2017
Operating Segment Review
North America Gaming & Interactive
Select Financial Data |
Constant |
Key Performance Indicators |
% | ||||||||
Period Ended March 31 |
Q1 '18 |
Q1 '17 |
FX |
Period Ended March 31 |
Q1 '18 |
Q1 '17 |
Change | ||||
Gaming |
Total Revenue |
244 |
305 |
-20% |
Installed base (end of period) |
||||||
Gaming Services |
154 |
234 |
-34% |
Casino |
23,183 |
23,701 |
-2.2% | ||||
Terminal |
105 |
126 |
-16% |
||||||||
Social (DDI) |
0 |
68 |
-100% |
Machine units shipped |
|||||||
Other |
49 |
41 |
19% |
New/Expansion |
1,024 |
1,157 |
-11.5% | ||||
Product Sales |
89 |
71 |
26% |
Replacement |
2,692 |
2,787 |
-3.4% | ||||
Terminal |
50 |
51 |
-2% |
Total machines shipped |
3,716 |
3,944 |
-5.8% | ||||
Other |
39 |
20 |
96% |
||||||||
Total |
Revenue |
244 |
305 |
-20% |
|||||||
Operating Income |
57 |
69 |
-12% |
Revenue of $244 million compared to $305 million in the prior-year quarter, which included DoubleDown
Operating income of $57 million compared to $69 million in the prior-year quarter
North America Lottery
Select Financial Data |
Constant |
Key Performance Indicators |
% | ||||||||
Period Ended March 31 |
Q1 '18 |
Q1 '17 |
FX |
Period Ended March 31 |
Q1 '18 |
Q1 '17 |
Change | ||||
Gaming |
Total Revenue |
38 |
36 |
5% |
Installed base (end of period) |
||||||
Gaming Services |
38 |
36 |
5% |
VLT - Government Sponsored |
15,101 |
15,009 |
0.6% | ||||
Terminal |
25 |
25 |
0% |
||||||||
Other |
13 |
11 |
16% |
Lottery same-store revenue growth |
|||||||
Product Sales |
0 |
0 |
0% |
Instants & draw games |
5.4% | ||||||
Multistate Jackpots |
51.6% | ||||||||||
Lottery |
Total Revenue |
257 |
245 |
5% |
Total lottery same-store revenue growth |
11.0% | |||||
Lottery Services |
241 |
232 |
4% |
||||||||
FM/Concessions |
176 |
166 |
6% |
||||||||
LMA |
36 |
32 |
11% |
||||||||
Other Services |
29 |
33 |
-13% |
||||||||
Product Sales |
16 |
13 |
24% |
||||||||
Terminal |
4 |
0 |
N/M |
||||||||
Systems/Other |
12 |
13 |
-6% |
||||||||
Total |
Revenue |
295 |
281 |
5% |
|||||||
Operating Income |
76 |
69 |
11% |
Revenue up 5% to $295 million
Operating income rose 11% to $76 million
International
Select Financial Data |
Constant |
Key Performance Indicators |
% | ||||||||
Period Ended March 31 |
Q1 '18 |
Q1 '17 |
FX |
Period Ended March 31 |
Q1 '18 |
Q1 '17 |
Change | ||||
Gaming |
Total Revenue |
91 |
78 |
11% |
Installed base (end of period) |
||||||
Gaming Services |
40 |
41 |
-8% |
Casino |
12,917 |
10,663 |
21.1% | ||||
Terminal |
14 |
12 |
15% |
VLT - Government Sponsored |
2,937 |
618 |
375.2% | ||||
Other |
25 |
29 |
-18% |
Total installed base |
15,854 |
11,281 |
40.5% | ||||
Product Sales |
51 |
37 |
32% |
||||||||
Terminal |
30 |
26 |
13% |
Machine units shipped |
|||||||
Other |
21 |
12 |
76% |
New/Expansion |
91 |
595 |
-84.7% | ||||
Replacement |
2,021 |
1,414 |
42.9% | ||||||||
Lottery |
Total Revenue |
74 |
67 |
4% |
Total machines shipped |
2,112 |
2,009 |
5.1% | |||
Lottery Services |
72 |
66 |
3% |
||||||||
FM/Concessions |
57 |
49 |
8% |
Lottery same-store revenue growth |
|||||||
Other Services |
15 |
17 |
-14% |
Instants & draw games |
4.0% | ||||||
Product Sales |
3 |
2 |
62% |
Multistate Jackpots |
6.0% | ||||||
Systems/Other |
3 |
1 |
73% |
Total lottery same-store revenue growth |
4.1% | ||||||
Other |
Total Revenue |
19 |
19 |
-6% |
|||||||
Service Revenue |
19 |
17 |
6% |
||||||||
Product Sales |
0 |
2 |
-95% |
||||||||
Total |
Revenue |
184 |
164 |
6% |
|||||||
Operating Income |
22 |
7 |
145% |
Revenue grew 12% on a reported basis, and 6% at constant currency, to $184 million
Operating income up significantly to $22 million from $7 million
Italy
Select Financial Data |
Constant |
Key Performance Indicators |
% | ||||||||
Period Ended March 31 |
Q1 '18 |
Q1 '17 |
FX |
Period Ended March 31 |
Q1 '18 |
Q1 '17 |
Change | ||||
Gaming |
Total Revenue |
191 |
176 |
-6% |
(In ? millions, except machines) |
||||||
Gaming Services |
190 |
176 |
-6% |
Lottery |
|||||||
Terminal |
172 |
160 |
-7% |
Lotto wagers |
2,034 |
1,873 |
8.6% | ||||
Other |
18 |
15 |
1% |
10eLotto |
1,451 |
1,243 |
16.7% | ||||
Product Sales |
0 |
0 |
0% |
Core |
504 |
525 |
-4.0% | ||||
Late Numbers |
45 |
106 |
-57.0% | ||||||||
Lottery |
Total Revenue |
214 |
172 |
8% |
MillionDAY |
34 |
- |
N/M | |||
Lottery Services |
214 |
172 |
8% |
||||||||
FM/Concessions |
266 |
217 |
6% |
Scratch & Win Wagers |
2,408 |
2,341 |
2.9% | ||||
Other Services |
(52) |
(45) |
N/M |
||||||||
Product Sales |
0 |
0 |
0% |
Italy lottery revenue growth |
7.6% | ||||||
Other |
Total Revenue |
79 |
54 |
27% |
Gaming |
||||||
Service Revenue |
79 |
54 |
27% |
Installed base (end of period) |
|||||||
Product Sales |
0 |
0 |
0% |
VLT - Operator (B2C) |
10,931 |
10,961 |
-0.3% | ||||
VLT - Supplier (B2B) |
8,425 |
9,043 |
-6.8% | ||||||||
Total |
Revenue |
483 |
402 |
4% |
AWP |
51,315 |
58,746 |
-12.6% | |||
Operating Income |
147 |
124 |
1% |
Total Installed Base |
70,671 |
78,750 |
-10.3% | ||||
Wagers |
|||||||||||
VLT - Operator (B2C) |
1,441 |
1,415 |
1.8% | ||||||||
AWP |
955 |
1,009 |
-5.3% | ||||||||
Interactive Wagers (Gaming) |
493 |
468 |
5.3% | ||||||||
Other |
|||||||||||
Sports Betting Wagers1 |
246 |
257 |
-4.4% | ||||||||
Sports Betting Payout (%)1 |
81.2% |
89.5% |
-8.3pp | ||||||||
1Includes Virtual Wagers and Pools & Horses |
Revenue up 20% on a reported basis, and up 4% at constant currency, to $483 million
Operating income increased to $147 million compared to $124 million in the prior-year period; up 1% at constant currency
Other Developments
The Company's board of directors declared a quarterly cash dividend of $0.20 per ordinary share
In a separate news release today, the Company is announcing a derivatives transaction by De Agostini S.p.A. ("De Agostini") relating to IGT ordinary shares
The Company has consolidated leadership of the North America Gaming & Interactive and North America Lottery segments under Renato Ascoli as CEO of North America
IGT will host an Investor Day on August 2, 2018 in New York City
Outlook
Conference Call and Webcast
May 22, 2018, at 8:00 am EDT
Live webcast available under "News, Events & Presentations" on IGT's Investor Relations website at www.IGT.com; replay available on the website following the live event
Dial-In Numbers
Comparability of Results
All figures presented in this news release are prepared under U.S. GAAP, unless noted otherwise. Adjusted figures exclude the impact of items such as purchase accounting, impairment charges, restructuring expense, foreign exchange, and certain one-time, primarily transaction-related items. Reconciliations to the most directly comparable U.S. GAAP measures are included in the tables in this news release. Constant currency changes for 2018 are calculated using the same foreign exchange rates as the corresponding 2017 period. Management uses non-GAAP financial measures to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, and to evaluate the Company's financial performance. Management believes these non-GAAP financial measures reflect the Company's ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of business trends. These constant currency changes and non-GAAP financial measures should however be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with U.S. GAAP.
About IGT
IGT (NYSE:IGT) is the global leader in gaming. We enable players to experience their favorite games across all channels and regulated segments, from Gaming Machines and Lotteries to Interactive and Social Gaming. Leveraging a wealth of premium content, substantial investment in innovation, in-depth customer intelligence, operational expertise and leading-edge technology, our gaming solutions anticipate the demands of consumers wherever they decide to play. We have a well-established local presence and relationships with governments and regulators in more than 100 countries around the world, and create value by adhering to the highest standards of service, integrity, and responsibility. IGT has over 12,000 employees. For more information, please visit www.IGT.com.
Cautionary Statement Regarding Forward-Looking Statements
This news release may contain forward-looking statements (including within the meaning of the Private Securities Litigation Reform Act of 1995) concerning International Game Technology PLC and its consolidated subsidiaries (the "Company") and other matters. These statements may discuss goals, intentions, and expectations as to future plans, trends, events, dividends, results of operations, or financial condition, or otherwise, based on current beliefs of the management of the Company as well as assumptions made by, and information currently available to, such management. Forward-looking statements may be accompanied by words such as "aim," "anticipate," "believe," "plan," "could," "would," "should," "shall", "continue," "estimate," "expect," "forecast," "future," "guidance," "intend," "may," "will," "possible," "potential," "predict," "project" or the negative or other variations of them. These forward-looking statements speak only as of the date on which such statements are made and are subject to various risks and uncertainties, many of which are outside the Company's control. Should one or more of these risks or uncertainties materialize, or should any of the underlying assumptions prove incorrect, actual results may differ materially from those predicted in the forward-looking statements and from past results, performance, or achievements. Therefore, you should not place undue reliance on such statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include (but are not limited to) the factors and risks described in the Company's annual report on Form 20-F for the financial year ended December 31, 2017 and other documents filed from time to time with the SEC, which are available on the SEC's website at www.sec.gov and on the investor relations section of the Company's website at www.IGT.com. Except as required under applicable law, the Company does not assume any obligation to update these forward-looking statements. You should carefully consider these factors and other risks and uncertainties that affect the Company's business. All forward-looking statements contained in this news release are qualified in their entirety by this cautionary statement. All subsequent written or oral forward-looking statements attributable to International Game Technology PLC, or persons acting on its behalf, are expressly qualified in its entirety by this cautionary statement.
Contact:
Robert K. Vincent, Corporate Communications, toll free in U.S./Canada +1 (844) IGT-7452; outside U.S./Canada +1 (401) 392-7452
James Hurley, Investor Relations, +1 (401) 392-7190
Simone Cantagallo, +39 06 51899030; for Italian media inquiries
International Game Technology PLC | |||
Condensed Consolidated Statements of Operations | |||
($ and shares in thousands, except per share data) | |||
Unaudited | |||
For the three months ended | |||
March 31, | |||
2018 |
2017 | ||
Service revenue |
1,046,951 |
1,026,945 | |
Product sales |
160,005 |
125,639 | |
Total revenue |
1,206,956 |
1,152,584 | |
Cost of services |
618,058 |
624,294 | |
Cost of product sales |
103,351 |
114,336 | |
Selling, general and administrative |
215,218 |
200,524 | |
Research and development |
71,263 |
82,621 | |
Restructuring expense |
2,016 |
9,267 | |
Transaction expense, net |
55 |
2,321 | |
Total operating expenses |
1,009,961 |
1,033,363 | |
Operating income |
196,995 |
119,221 | |
Interest income |
2,999 |
2,626 | |
Interest expense |
(110,279) |
(114,799) | |
Foreign exchange loss, net |
(96,695) |
(46,837) | |
Other income, net |
2,981 |
2,667 | |
Total non-operating expenses |
(200,994) |
(156,343) | |
Loss before provision for (benefit from) income taxes |
(3,999) |
(37,122) | |
Provision for (benefit from) income taxes |
60,505 |
(10,330) | |
Net loss |
(64,504) |
(26,792) | |
Less: Net income attributable to non-controlling interests |
38,642 |
27,998 | |
Net loss attributable to IGT PLC |
(103,146) |
(54,790) | |
Net loss attributable to IGT PLC per common share - basic |
(0.51) |
(0.27) | |
Net loss attributable to IGT PLC per common share - diluted |
(0.51) |
(0.27) | |
Weighted-average shares - basic |
203,597 |
202,479 | |
Weighted-average shares - diluted |
203,597 |
202,479 |
International Game Technology PLC | |||
Condensed Consolidated Balance Sheets | |||
($ thousands) | |||
Unaudited | |||
March 31, |
December 31, | ||
2018 |
2017 | ||
Assets |
|||
Current assets: |
|||
Cash and cash equivalents |
569,620 |
1,057,418 | |
Restricted cash |
246,653 |
248,012 | |
Trade and other receivables, net |
953,342 |
937,854 | |
Inventories, net |
320,512 |
319,545 | |
Other current assets |
471,095 |
407,520 | |
Income taxes receivable |
83,483 |
94,168 | |
Total current assets |
2,644,705 |
3,064,517 | |
Systems, equipment and other assets related to contracts, net |
1,425,976 |
1,434,194 | |
Property, plant and equipment, net |
188,790 |
193,723 | |
Goodwill |
5,739,554 |
5,723,815 | |
Intangible assets, net |
2,220,681 |
2,273,460 | |
Other non-current assets |
2,442,622 |
2,427,953 | |
Deferred income taxes |
42,579 |
41,546 | |
Total non-current assets |
12,060,202 |
12,094,691 | |
Total assets |
14,704,907 |
15,159,208 | |
Liabilities, redeemable non-controlling interests, and shareholders' equity |
|||
Current liabilities: |
|||
Accounts payable |
1,192,750 |
1,240,753 | |
Other current liabilities |
1,637,742 |
1,780,875 | |
Current portion of long-term debt |
- |
599,114 | |
Short-term borrowings |
44,448 |
- | |
Income taxes payable |
95,671 |
55,935 | |
Total current liabilities |
2,970,611 |
3,676,677 | |
Long-term debt, less current portion |
8,049,791 |
7,777,445 | |
Deferred income taxes |
462,386 |
491,460 | |
Income taxes payable |
55,665 |
55,665 | |
Other non-current liabilities |
469,919 |
446,113 | |
Total non-current liabilities |
9,037,761 |
8,770,683 | |
Total liabilities |
12,008,372 |
12,447,360 | |
Commitments and contingencies |
|||
Redeemable non-controlling interests and shareholders' equity |
2,696,535 |
2,711,848 | |
Total liabilities, redeemable non-controlling interests, and shareholders' equity |
14,704,907 |
15,159,208 |
International Game Technology PLC | ||||
Condensed Consolidated Statements of Cash Flows | ||||
($ thousands) | ||||
Unaudited | ||||
For the three months ended | ||||
March 31, | ||||
2018 |
2017 | |||
Cash flows from operating activities |
||||
Net loss |
(64,504) |
(26,792) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: |
||||
Depreciation |
98,087 |
91,921 | ||
Foreign exchange loss, net |
96,695 |
46,837 | ||
Amortization |
68,392 |
116,241 | ||
Service revenue amortization |
56,650 |
49,399 | ||
Stock-based compensation expense |
14,178 |
849 | ||
Debt issuance cost amortization |
6,099 |
4,678 | ||
Deferred income tax provision |
(22,914) |
(49,480) | ||
Other non-cash costs, net |
5,529 |
2,964 | ||
Changes in operating assets and liabilities: |
||||
Trade and other receivables |
11,968 |
136,694 | ||
Inventories |
(11,657) |
158 | ||
Accounts payable |
(35,545) |
(14,946) | ||
Other assets and liabilities |
(145,768) |
(64,971) | ||
Net cash provided by operating activities |
77,210 |
293,552 | ||
Cash flows from investing activities |
||||
Capital expenditures |
(134,661) |
(172,052) | ||
Proceeds from sale of assets |
2,473 |
160,924 | ||
Other |
347 |
432 | ||
Net cash used in investing activities |
(131,841) |
(10,696) | ||
Cash flows from financing activities |
||||
Principal payments on long-term debt |
(625,500) |
(54,406) | ||
Net payments of financial liabilities |
(32,702) |
(27,154) | ||
Dividends paid - non-controlling interests |
(13,316) |
(13,093) | ||
Net proceeds from short-term borrowings |
44,429 |
797 | ||
Proceeds from long-term debt |
164,681 |
- | ||
Other |
(825) |
(2,439) | ||
Net cash used in financing activities |
(463,233) |
(96,295) | ||
Net (decrease) increase in cash and cash equivalents, and restricted cash |
(517,864) |
186,561 | ||
Effect of exchange rate changes on cash and cash equivalents, and restricted cash |
28,707 |
(1,885) | ||
Cash and cash equivalents, and restricted cash at the beginning of the period |
1,305,430 |
541,316 | ||
Cash and cash equivalents, and restricted cash at the end of the period |
816,273 |
725,992 | ||
Supplemental Cash Flow Information: |
||||
Interest paid |
(227,356) |
(210,936) | ||
Income taxes paid |
(13,691) |
(7,933) |
International Game Technology PLC | |||
Net Debt | |||
($ thousands) | |||
March 31, |
December 31, | ||
2018 |
2017 | ||
6.250% Senior Secured Notes due 2022 |
1,460,285 |
1,470,075 | |
6.500% Senior Secured Notes due 2025 |
1,087,272 |
1,086,913 | |
4.750% Senior Secured Notes due 2023 |
1,036,659 |
1,008,601 | |
4.125% Senior Secured Notes due 2020 |
857,133 |
833,655 | |
4.750% Senior Secured Notes due 2020 |
602,779 |
585,171 | |
5.625% Senior Secured Notes due 2020 |
596,238 |
595,767 | |
7.500% Senior Secured Notes due 2019 |
147,567 |
148,231 | |
5.500% Senior Secured Notes due 2020 |
125,553 |
125,709 | |
5.350% Senior Secured Notes due 2023 |
61,060 |
61,082 | |
Senior Secured Notes, long-term |
5,974,546 |
5,915,204 | |
Term Loan Facilities due 2023 |
1,834,878 |
1,785,361 | |
Revolving Credit Facilities due 2021 |
240,367 |
76,880 | |
Long-term debt, less current portion |
8,049,791 |
7,777,445 | |
6.625% Senior Secured Notes due 2018 |
- |
599,114 | |
Current portion of long-term debt |
- |
599,114 | |
Short-term borrowings |
44,448 |
- | |
Total debt |
8,094,239 |
8,376,559 | |
Cash and cash equivalents |
569,620 |
1,057,418 | |
Net debt |
7,524,619 |
7,319,141 |
Note: Net debt is a non-GAAP financial measure |
International Game Technology PLC | ||||
Adjusted EBITDA and Free Cash Flow | ||||
Reconciliations of Non-GAAP Financial Measures | ||||
($ thousands) | ||||
For the three months ended | ||||
March 31, | ||||
2018 |
2017 | |||
Net loss |
(64,504) |
(26,792) | ||
Provision for (benefit from) income taxes |
60,505 |
(10,330) | ||
Non-operating expenses |
200,994 |
156,343 | ||
Depreciation |
98,087 |
91,921 | ||
Amortization |
68,392 |
116,241 | ||
Service revenue amortization |
56,650 |
49,399 | ||
Stock-based compensation expense |
14,178 |
849 | ||
Restructuring expense |
2,016 |
9,267 | ||
Transaction expense, net |
55 |
2,321 | ||
Non-cash purchase accounting (excluding D&A) |
(217) |
(183) | ||
Bad debt recovery |
- |
(17,873) | ||
Adjusted EBITDA |
436,156 |
371,163 | ||
Cash flows from operating activities |
77,210 |
293,552 | ||
Capital expenditures |
(134,661) |
(172,052) | ||
Free Cash Flow |
(57,451) |
121,500 |
International Game Technology PLC | ||||||
ASC 606 - Revenue Recognition Q1 2018 Impact | ||||||
Condensed Consolidated Statements of Operations | ||||||
($ thousands, except per share data) | ||||||
Unaudited | ||||||
Under Prior |
Revenue |
As Adjusted | ||||
Revenue |
1,203,907 |
3,049 |
1,206,956 | |||
Operating expenses |
(1,022,099) |
12,138 |
(1,009,961) | |||
Provision for income taxes |
58,613 |
1,892 |
60,505 | |||
Net loss attributable to IGT PLC |
(116,441) |
13,295 |
(103,146) | |||
Net loss attributable to IGT PLC per common share - basic |
(0.57) |
0.06 |
(0.51) | |||
Net loss attributable to IGT PLC per common share - diluted |
(0.57) |
0.06 |
(0.51) |
International Game Technology PLC | ||||||
ASC 606 - Revenue Recognition Adoption Impact | ||||||
Condensed Consolidated Balance Sheets | ||||||
($ thousands) | ||||||
Unaudited | ||||||
Under Prior |
Revenue |
As Adjusted | ||||
Trade and other receivables, net |
952,238 |
1,104 |
953,342 | |||
Inventories |
341,921 |
(21,409) |
320,512 | |||
Other current assets |
436,410 |
34,685 |
471,095 | |||
Other non-current assets |
2,415,763 |
26,859 |
2,442,622 | |||
Other current liabilities |
1,654,349 |
(16,607) |
1,637,742 | |||
Other non-current liabilities |
473,231 |
(3,312) |
469,919 | |||
Retained deficit |
(1,151,665) |
61,158 |
(1,090,507) |
International Game Technology PLC | ||||||||||||
Condensed Consolidated Statement of Operations | ||||||||||||
Reconciliation of Non-GAAP Financial Measures | ||||||||||||
($ and shares in thousands, except per share data) | ||||||||||||
Q1 2018 |
Adjustments |
Q1 2018 | ||||||||||
As |
Purchase |
Foreign |
Restructuring |
Transaction |
As | |||||||
Reported |
Accounting |
Exchange |
Expense |
Expense, net |
Adjusted | |||||||
Total revenue |
1,206,956 |
(177) |
- |
- |
- |
1,206,779 | ||||||
Cost of services |
618,058 |
(21,155) |
- |
- |
- |
596,903 | ||||||
Cost of product sales |
103,351 |
(3,869) |
- |
- |
- |
99,482 | ||||||
Selling, general and administrative |
215,218 |
(26,849) |
- |
- |
- |
188,369 | ||||||
Research and development |
71,263 |
(235) |
- |
- |
- |
71,028 | ||||||
Restructuring expense |
2,016 |
- |
- |
(2,016) |
- |
- | ||||||
Transaction expense, net |
55 |
- |
- |
- |
(55) |
- | ||||||
Total operating expenses |
1,009,961 |
(52,108) |
- |
(2,016) |
(55) |
955,782 | ||||||
Operating income |
196,995 |
51,931 |
- |
2,016 |
55 |
250,997 | ||||||
Interest expense, net |
(107,280) |
504 |
- |
- |
- |
(106,776) | ||||||
Foreign exchange loss, net |
(96,695) |
- |
96,695 |
- |
- |
- | ||||||
Other income, net |
2,981 |
(2,185) |
- |
- |
- |
796 | ||||||
Total non-operating expenses |
(200,994) |
(1,681) |
96,695 |
- |
- |
(105,980) | ||||||
(Loss) income before provision for income taxes |
(3,999) |
50,250 |
96,695 |
2,016 |
55 |
145,017 | ||||||
Provision for income taxes (a) |
60,505 |
11,910 |
2,646 |
552 |
- |
75,613 | ||||||
Net (loss) income |
(64,504) |
38,340 |
94,049 |
1,464 |
55 |
69,404 | ||||||
Less: Net income attributable to non-controlling interests |
38,642 |
25 |
- |
- |
- |
38,667 | ||||||
Net (loss) income attributable to IGT PLC |
(103,146) |
38,315 |
94,049 |
1,464 |
55 |
30,737 | ||||||
Net (loss) income per common share - diluted |
(0.51) |
0.15 | ||||||||||
Weighted-average shares - diluted (b) |
203,597 |
204,171 | ||||||||||
(a) Adjustments for income taxes are determined based on the statutory tax rate in effect in the respective jurisdiction where the adjustment originated. |
(b) Weighted-average shares ? diluted, as adjusted, include shares that were excluded from the as reported computation, due to the net loss as reported. |
International Game Technology PLC | ||||||||||||
Condensed Consolidated Statement of Operations | ||||||||||||
Reconciliation of Non-GAAP Financial Measures | ||||||||||||
($ and shares in thousands, except per share data) | ||||||||||||
Q1 2017 |
Adjustments |
Q1 2017 | ||||||||||
As |
Purchase |
Foreign |
Restructuring |
Transaction |
As | |||||||
Reported |
Accounting |
Exchange |
Expense |
Expense |
Adjusted | |||||||
Total revenue |
1,152,584 |
(178) |
- |
- |
- |
1,152,406 | ||||||
Cost of services |
624,294 |
(42,230) |
- |
- |
- |
582,064 | ||||||
Cost of product sales |
114,336 |
(29,682) |
- |
- |
- |
84,654 | ||||||
Selling, general and administrative |
200,524 |
(34,928) |
- |
- |
- |
165,596 | ||||||
Research and development |
82,621 |
(201) |
- |
- |
- |
82,420 | ||||||
Restructuring expense |
9,267 |
- |
- |
(9,267) |
- |
- | ||||||
Transaction expense, net |
2,321 |
- |
- |
- |
(2,321) |
- | ||||||
Total operating expenses |
1,033,363 |
(107,041) |
- |
(9,267) |
(2,321) |
914,734 | ||||||
Operating income |
119,221 |
106,863 |
- |
9,267 |
2,321 |
237,672 | ||||||
Interest expense, net |
(112,173) |
1,088 |
- |
- |
- |
(111,085) | ||||||
Foreign exchange loss, net |
(46,837) |
- |
46,837 |
- |
- |
- | ||||||
Other income, net |
2,667 |
34 |
- |
- |
- |
2,701 | ||||||
Total non-operating expenses |
(156,343) |
1,122 |
46,837 |
- |
- |
(108,384) | ||||||
(Loss) income before (benefit from) provision for income taxes |
(37,122) |
107,985 |
46,837 |
9,267 |
2,321 |
129,288 | ||||||
(Benefit from) provision for income taxes (a) |
(10,330) |
38,229 |
10,668 |
3,172 |
853 |
42,592 | ||||||
Net (loss) income |
(26,792) |
69,756 |
36,169 |
6,095 |
1,468 |
86,696 | ||||||
Less: Net income attributable to non-controlling interests |
27,998 |
25 |
- |
- |
- |
28,023 | ||||||
Net (loss) income attributable to IGT PLC |
(54,790) |
69,731 |
36,169 |
6,095 |
1,468 |
58,673 | ||||||
Net (loss) income per common share - diluted |
(0.27) |
0.29 | ||||||||||
Weighted-average shares - diluted (b) |
202,479 |
203,052 | ||||||||||
(a) Adjustments for income taxes are determined based on the statutory tax rate in effect in the respective jurisdiction where the adjustment originated. |
(b) Weighted-average shares ? diluted, as adjusted, include shares that were excluded from the as reported computation, due to the net loss as reported. |
INTERNATIONAL GAME TECHNOLOGY PLC |
|||||||||||
Select Financial Data |
Constant |
Key Performance Indicators |
% | ||||||||
Period Ended March 31 |
Q1 '18 |
Q1 '17 |
FX |
Period Ended March 31 |
Q1 '18 |
Q1 '17 |
Change | ||||
Gaming |
Total Revenue |
563 |
596 |
-11% |
Installed base (end of period) |
||||||
Gaming Services |
422 |
487 |
-19% |
Casino |
36,100 |
34,364 |
5.1% | ||||
Terminal |
317 |
323 |
-9% |
VLT - Government Sponsored (ex-Italy) |
18,038 |
15,627 |
15.4% | ||||
Social (DDI) |
0 |
68 |
-100% |
VLT - Italy Supplier (B2B) |
8,425 |
9,043 |
-6.5% | ||||
Other |
105 |
96 |
5% |
Total installed base |
62,563 |
59,034 |
6.0% | ||||
Product Sales |
141 |
109 |
28% |
Yield |
$ 28.24 |
$ 30.92 |
-9.0% | ||||
Terminal |
80 |
77 |
3% |
(average revenue per unit per day) |
|||||||
Other |
61 |
32 |
87% |
||||||||
Additional Italian Network Details: |
|||||||||||
Lottery |
Total Revenue |
546 |
484 |
6% |
VLT - Operator (B2C) |
10,931 |
10,961 |
-0.3% | |||
Lottery Services |
527 |
470 |
5% |
AWP |
51,315 |
58,746 |
-12.6% | ||||
FM/Concessions |
500 |
432 |
6% |
||||||||
LMA |
36 |
32 |
11% |
Machine units shipped |
|||||||
Other Services |
(9) |
5 |
-133% |
New/Expansion |
1,115 |
1,752 |
-36.4% | ||||
Product Sales |
19 |
14 |
28% |
Replacement |
4,713 |
4,201 |
12.2% | ||||
Terminal |
4 |
0 |
N/M |
Total machines shipped |
5,828 |
5,953 |
-2.1% | ||||
Systems/Other |
15 |
14 |
2% |
||||||||
Global lottery same-store revenue growth |
|||||||||||
Other |
Total Revenue |
98 |
73 |
19% |
Instants & draw games |
5.1% | |||||
Service Revenue |
98 |
70 |
22% |
Multistate Jackpots |
45.9% | ||||||
Product Sales |
0 |
2 |
-95% |
Total lottery same-store revenue growth (ex-Italy) |
9.4% | ||||||
Italy lottery revenue growth |
7.6% | ||||||||||
Consolidated |
Revenue |
1,207 |
1,153 |
-2% |
|||||||
Operating Income: |
|||||||||||
Segment Total |
302 |
269 |
4% |
||||||||
Purchase Accounting |
(52) |
(107) |
-52% |
||||||||
Corporate Support |
(53) |
(42) |
19% |
||||||||
Total |
197 |
119 |
48% |
SOURCE International Game Technology PLC
These press releases may also interest you
|