As the industry leader, IGT is committed to sharing the latest information.
International Game Technology PLC Reports Second Quarter 2017 Results
"Our second quarter results reflect strong key performance indicators for both our global Lottery and Gaming businesses," said
"We've made a lot of good progress on many levels so far this year," said
Summary of Consolidated Second Quarter 2017 Financial Results
Quarter Ended June 30, |
Change |
Constant |
||
2017 |
2016 |
(%) |
(%) |
|
(In $ millions, unless otherwise noted) |
||||
Revenue |
1,220 |
1,285 |
-5% |
-5% |
Operating Income |
192 |
171 |
12% |
12% |
Net (loss) income per diluted share |
(1.43) |
0.36 |
NA |
NA |
Net debt |
6,999 |
7,830 |
-11% |
NA |
Adjusted EBITDA |
424 |
443 |
-4% |
-4% |
Adjusted Operating Income |
264 |
290 |
-9% |
-9% |
Adjusted net income per diluted share |
0.15 |
0.43 |
-65% |
NA |
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. |
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 2017 are calculated using the same foreign exchange rates as the corresponding 2016 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.
Overview of Consolidated Second Quarter Results
Consolidated revenue was
Global lottery same-store revenue, excluding
Gaming service revenue was primarily impacted by the sale of DoubleDown. The global installed base continues to grow, rising 2,701 units from the prior-year period. Global gaming product revenue increased 5% over the second quarter of 2016 driven by 25% growth in terminal sales that was partially offset by lower systems sales. The Company shipped 8,884 gaming machines worldwide during the second quarter, led by strong replacement unit demand.
Operating income was
Interest expense was
Net loss attributable to IGT was
Cash from operations was
Cash and cash equivalents were
Operating Segment Review
North America Gaming & Interactive
Revenue for North America Gaming & Interactive was
Service revenue was
Operating income for North America Gaming & Interactive was
North America Lottery
North America Lottery revenue was
Service revenue was
Operating income for North America Lottery rose 29% to
International
International revenue was
Lottery same-store revenue grew 3.6% on broad-based strength in
Gaming service revenue was
Product sale revenue rose to
International operating income, at constant currency, increased 68% on higher gaming product sales and favorable mix; reduced selling, general and administrative expenses; and lower bad debt and impairment expenses.
Total Lotto wagers in the quarter were €1,842 million compared to €2,056 million in the prior-year period, reflecting significantly lower late numbers activity. Excluding late numbers, Lotto wagers increased 1% over the prior year period reflecting continued strength in 10eLotto. Instant-ticket wagers were essentially unchanged at €2,183 million on strong sales of multiplier tickets despite fewer new ticket launches in 2017.
Machine gaming service revenue was in-line with the prior year period, as increased vertical integration was offset by higher gaming machine taxes. Sports betting revenue increased in the second quarter of 2017 on higher wagers and improved payout.
Other Developments
The Company's board of directors declared a quarterly cash dividend of
On
Outlook
The Company is maintaining its outlook for adjusted EBITDA of
Conference Call and Webcast
Today, at
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
Contact:
International Game Technology PLC |
|||
Condensed Consolidated Statements of Operations |
|||
($ and shares in thousands, except per share data) |
|||
Unaudited |
|||
For the three months ended |
|||
June 30, |
|||
2017 |
2016 |
||
Service revenue |
1,023,478 |
1,089,954 |
|
Product sales |
196,026 |
195,515 |
|
Total revenue |
1,219,504 |
1,285,469 |
|
Cost of services |
616,740 |
637,832 |
|
Cost of product sales |
138,362 |
144,640 |
|
Selling, general and administrative |
210,185 |
239,241 |
|
Research and development |
80,512 |
84,288 |
|
Restructuring expense |
11,463 |
6,438 |
|
Impairment loss |
- |
2,352 |
|
Transaction income, net |
(29,630) |
(43) |
|
Total operating expenses |
1,027,632 |
1,114,748 |
|
Operating income |
191,872 |
170,721 |
|
Interest income |
2,460 |
2,754 |
|
Other expense, net |
(26,112) |
(575) |
|
Foreign exchange (loss) gain, net |
(220,386) |
88,152 |
|
Interest expense |
(115,984) |
(117,715) |
|
Total non-operating expenses |
(360,022) |
(27,384) |
|
(Loss) income before provision for income taxes |
(168,150) |
143,337 |
|
Provision for income taxes |
84,086 |
60,439 |
|
Net (loss) income |
(252,236) |
82,898 |
|
Less: Net income attributable to non-controlling interests |
37,665 |
10,202 |
|
Net (loss) income attributable to IGT PLC |
(289,901) |
72,696 |
|
Net (loss) income attributable to IGT PLC per common share - basic |
(1.43) |
0.36 |
|
Net (loss) income attributable to IGT PLC per common share - diluted |
(1.43) |
0.36 |
|
Weighted-average shares - basic |
202,946 |
201,229 |
|
Weighted-average shares - diluted |
202,946 |
201,565 |
International Game Technology PLC |
|||
Condensed Consolidated Statements of Operations |
|||
($ and shares in thousands, except per share data) |
|||
Unaudited |
|||
For the six months ended |
|||
June 30, |
|||
2017 |
2016 |
||
Service revenue |
2,050,423 |
2,225,075 |
|
Product sales |
321,665 |
341,955 |
|
Total revenue |
2,372,088 |
2,567,030 |
|
Cost of services |
1,241,034 |
1,286,595 |
|
Cost of product sales |
252,698 |
266,416 |
|
Selling, general and administrative |
410,709 |
466,767 |
|
Research and development |
163,133 |
168,995 |
|
Restructuring expense |
20,730 |
15,856 |
|
Impairment loss |
- |
2,352 |
|
Transaction (income) expense, net |
(27,309) |
1,431 |
|
Total operating expenses |
2,060,995 |
2,208,412 |
|
Operating income |
311,093 |
358,618 |
|
Interest income |
5,086 |
7,047 |
|
Other expense, net |
(23,445) |
(7,901) |
|
Foreign exchange loss, net |
(267,223) |
(73,404) |
|
Interest expense |
(230,783) |
(236,130) |
|
Total non-operating expenses |
(516,365) |
(310,388) |
|
(Loss) income before provision for income taxes |
(205,272) |
48,230 |
|
Provision for income taxes |
73,756 |
51,781 |
|
Net loss |
(279,028) |
(3,551) |
|
Less: Net income attributable to non-controlling interests |
65,663 |
16,527 |
|
Net loss attributable to IGT PLC |
(344,691) |
(20,078) |
|
Net loss attributable to IGT PLC per common share - basic |
(1.70) |
(0.10) |
|
Net loss attributable to IGT PLC per common share - diluted |
(1.70) |
(0.10) |
|
Weighted-average shares - basic |
202,714 |
200,840 |
|
Weighted-average shares - diluted |
202,714 |
200,840 |
International Game Technology PLC |
|||
Condensed Consolidated Balance Sheets |
|||
($ thousands) |
|||
Unaudited |
|||
June 30, |
December 31, |
||
2017 |
2016 |
||
Assets |
|||
Current assets: |
|||
Cash and cash equivalents |
494,681 |
294,094 |
|
Restricted cash and investments |
229,858 |
247,222 |
|
Trade and other receivables, net |
824,527 |
947,237 |
|
Inventories |
380,307 |
347,494 |
|
Other current assets |
381,877 |
424,727 |
|
Income taxes receivable |
21,474 |
28,792 |
|
Total current assets |
2,332,724 |
2,289,566 |
|
Systems, equipment and other assets related to contracts, net |
1,368,878 |
1,199,674 |
|
Property, plant and equipment, net |
196,529 |
357,841 |
|
Goodwill, net |
6,391,819 |
6,810,012 |
|
Intangible assets, net |
2,403,203 |
2,874,031 |
|
Other non-current assets |
1,507,464 |
1,497,662 |
|
Deferred income taxes |
32,872 |
31,376 |
|
Total non-current assets |
11,900,765 |
12,770,596 |
|
Total assets |
14,233,489 |
15,060,162 |
|
Liabilities, redeemable non-controlling interests, and shareholders' equity |
|||
Current liabilities: |
|||
Accounts payable |
1,180,035 |
1,216,079 |
|
Other current liabilities |
829,681 |
1,097,045 |
|
Current portion of long-term debt |
567,313 |
77 |
|
Income taxes payable |
178,945 |
28,590 |
|
Total current liabilities |
2,755,974 |
2,341,791 |
|
Long-term debt, less current portion |
6,926,234 |
7,863,085 |
|
Deferred income taxes |
654,635 |
761,924 |
|
Other non-current liabilities |
460,664 |
444,556 |
|
Total non-current liabilities |
8,041,533 |
9,069,565 |
|
Total liabilities |
10,797,507 |
11,411,356 |
|
Commitments and contingencies |
- |
- |
|
Redeemable non-controlling interests and shareholders' equity |
3,435,982 |
3,648,806 |
|
Total liabilities, redeemable non-controlling interests, and shareholders' equity |
14,233,489 |
15,060,162 |
International Game Technology PLC |
||||
Condensed Consolidated Statements of Cash Flows |
||||
($ thousands) |
||||
Unaudited |
||||
For the six months ended |
||||
June 30, |
||||
2017 |
2016 |
|||
Operating activities |
||||
Net loss |
(279,028) |
(3,551) |
||
Adjustments for: |
||||
Foreign exchange loss, net |
267,233 |
73,404 |
||
Amortization |
218,427 |
253,074 |
||
Depreciation |
185,906 |
198,881 |
||
Amortization of upfront payments to customers |
101,039 |
55,178 |
||
Loss on early extinguishment of 7.500% Senior Secured Notes due 2019 |
25,725 |
- |
||
Debt issuance cost amortization |
10,042 |
9,086 |
||
Stock-based compensation expense |
3,273 |
17,034 |
||
Non-cash gain on sale of Double Down Interactive LLC |
(51,233) |
- |
||
Other, net |
4,040 |
21,598 |
||
Cash flows before changes in operating assets and liabilities |
485,424 |
624,704 |
||
Changes in operating assets and liabilities, net of disposition: |
||||
Trade and other receivables |
146,763 |
35,133 |
||
Inventories |
1,819 |
(6,271) |
||
Accounts payable |
(105,477) |
(68,596) |
||
Other assets and liabilities |
14,695 |
(61,163) |
||
Net cash flows provided by operating activities |
543,224 |
523,807 |
||
Investing activities |
||||
Proceeds from sale of Double Down Interactive LLC, net of cash divested |
823,662 |
- |
||
Proceeds from sale of assets |
162,758 |
49,394 |
||
Upfront payments to customers |
(185,368) |
(390,390) |
||
Capital expenditures |
(370,590) |
(219,632) |
||
Other |
2,620 |
13,004 |
||
Net cash flows provided by (used in) investing activities |
433,082 |
(547,624) |
||
Financing activities |
||||
Principal payment on 7.500% Senior Secured Notes due 2019 |
(355,697) |
- |
||
Principal payments on other long-term debt, net |
(315,918) |
(236,669) |
||
Dividends paid |
(81,162) |
(80,340) |
||
Dividends paid - non-controlling interests |
(50,464) |
(27,552) |
||
Payments in connection with the early extinguishment of 7.500% Senior Secured Notes due 2019 |
(38,824) |
- |
||
Return of capital - non-controlling interests |
(35,907) |
(35,407) |
||
Net (payments of) receipts from financial liabilities |
(28,092) |
4,510 |
||
Capital increase - non-controlling interests |
127,211 |
151,359 |
||
Other |
(19,352) |
(2,288) |
||
Net cash flows used in financing activities |
(798,205) |
(226,387) |
||
Net increase (decrease) in cash and cash equivalents |
178,101 |
(250,204) |
||
Effect of exchange rate changes on cash |
22,486 |
12,732 |
||
Cash and cash equivalents at the beginning of the period |
294,094 |
627,484 |
||
Cash and cash equivalents at the end of the period |
494,681 |
390,012 |
||
Supplemental Cash Flow Information: |
||||
Interest paid |
(245,753) |
(256,331) |
||
Income taxes paid |
(21,492) |
(38,742) |
International Game Technology PLC |
|||
Net Debt |
|||
($ thousands) |
|||
June 30, |
December 31, |
||
2017 |
2016 |
||
6.250% Senior Secured Notes due 2022 |
1,476,196 |
1,472,150 |
|
6.500% Senior Secured Notes due 2025 |
1,086,213 |
1,085,537 |
|
4.750% Senior Secured Notes due 2023 |
958,878 |
884,917 |
|
4.125% Senior Secured Notes due 2020 |
792,032 |
730,465 |
|
5.625% Senior Secured Notes due 2020 |
594,847 |
593,954 |
|
4.750% Senior Secured Notes due 2020 |
553,922 |
509,050 |
|
7.500% Senior Secured Notes due 2019 |
149,420 |
521,894 |
|
5.500% Senior Secured Notes due 2020 |
126,001 |
126,294 |
|
5.350% Senior Secured Notes due 2023 |
61,135 |
61,187 |
|
6.625% Senior Secured Notes due 2018 |
- |
521,556 |
|
Senior Secured Notes |
5,798,644 |
6,507,004 |
|
Term Loan Facilities due 2019 |
909,931 |
839,552 |
|
Revolving Credit Facilities due 2021 |
217,659 |
516,529 |
|
Long-term debt, less current portion |
6,926,234 |
7,863,085 |
|
6.625% Senior Secured Notes due 2018 |
567,313 |
- |
|
Other |
- |
77 |
|
Current portion of long-term debt |
567,313 |
77 |
|
Total debt |
7,493,547 |
7,863,162 |
|
Cash and cash equivalents |
494,681 |
294,094 |
|
Net debt |
6,998,866 |
7,569,068 |
International Game Technology PLC |
||||||||||||
Condensed Consolidated Statement of Operations |
||||||||||||
Reconciliation of Non-GAAP Financial Measures |
||||||||||||
($ and shares in thousands, except per share data) |
||||||||||||
Adjustments |
||||||||||||
Q2 2017 |
Transaction |
Q2 2017 |
||||||||||
As |
Purchase |
Foreign |
Restructuring |
and Refinancing |
As |
|||||||
Reported |
Accounting |
Exchange |
Expense |
Expense, net |
Adjusted |
|||||||
Total revenue |
1,219,504 |
(180) |
- |
- |
- |
1,219,324 |
||||||
Cost of services |
616,740 |
(38,510) |
- |
- |
- |
578,230 |
||||||
Cost of product sales |
138,362 |
(23,618) |
- |
- |
- |
114,744 |
||||||
Selling, general and administrative |
210,185 |
(28,169) |
- |
- |
- |
182,016 |
||||||
Research and development |
80,512 |
(210) |
- |
- |
- |
80,302 |
||||||
Restructuring expense |
11,463 |
- |
- |
(11,463) |
- |
- |
||||||
Transaction income, net |
(29,630) |
- |
- |
- |
29,630 |
- |
||||||
Total operating expenses |
1,027,632 |
(90,507) |
- |
(11,463) |
29,630 |
955,292 |
||||||
Operating income |
191,872 |
90,327 |
- |
11,463 |
(29,630) |
264,032 |
||||||
Foreign exchange loss, net |
(220,386) |
- |
220,386 |
- |
- |
- |
||||||
Other (expense) income, net |
(26,112) |
1,617 |
- |
- |
25,725 |
1,230 |
||||||
Interest expense, net |
(113,524) |
717 |
- |
- |
- |
(112,807) |
||||||
Total non-operating expenses |
(360,022) |
2,334 |
220,386 |
- |
25,725 |
(111,577) |
||||||
(Loss) income before provision for income taxes |
(168,150) |
92,661 |
220,386 |
11,463 |
(3,905) |
152,455 |
||||||
Provision for income taxes (a) |
84,086 |
32,003 |
50,428 |
2,962 |
(85,782) |
83,697 |
||||||
Net (loss) income |
(252,236) |
60,658 |
169,958 |
8,501 |
81,877 |
68,758 |
||||||
Less: Net income attributable to non-controlling interests |
37,665 |
26 |
- |
- |
- |
37,691 |
||||||
Net (loss) income attributable to IGT PLC |
(289,901) |
60,632 |
169,958 |
8,501 |
81,877 |
31,067 |
||||||
Net (loss) income per common share - diluted |
(1.43) |
0.15 |
||||||||||
Weighted-average shares - diluted (b) |
202,946 |
203,076 |
(a) |
Provision for income taxes was 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 |
||||||||||||
Consolidated Statement of Operations |
||||||||||||
Reconciliation of Non-GAAP Financial Measures |
||||||||||||
($ and shares in thousands, except share amounts) |
||||||||||||
Adjustments |
||||||||||||
Q2 2016 |
Impairment/ |
Transaction |
Q2 2016 |
|||||||||
As |
Purchase |
Foreign |
Restructuring |
(Income) |
As |
|||||||
Reported |
Accounting |
Exchange |
Expense |
Expense |
Adjusted |
|||||||
Total revenue |
1,285,469 |
264 |
- |
- |
- |
1,285,733 |
||||||
Cost of services |
637,832 |
(45,340) |
- |
- |
- |
592,492 |
||||||
Cost of product sales |
144,640 |
(29,687) |
- |
- |
- |
114,953 |
||||||
Selling, general and administrative |
239,241 |
(34,857) |
- |
- |
- |
204,384 |
||||||
Research and development |
84,288 |
(496) |
- |
- |
- |
83,792 |
||||||
Restructuring expense |
6,438 |
- |
- |
(6,438) |
- |
- |
||||||
Impairment loss |
2,352 |
- |
- |
(2,352) |
- |
- |
||||||
Transaction income, net |
(43) |
- |
- |
- |
43 |
- |
||||||
Total operating expenses |
1,114,748 |
(110,380) |
- |
(8,790) |
43 |
995,621 |
||||||
Operating income |
170,721 |
110,644 |
- |
8,790 |
(43) |
290,112 |
||||||
Foreign exchange gain, net |
88,152 |
- |
(88,152) |
- |
- |
- |
||||||
Other expense, net |
(575) |
1,260 |
- |
- |
- |
685 |
||||||
Interest expense, net |
(114,961) |
2,036 |
- |
- |
- |
(112,925) |
||||||
Total non-operating expenses |
(27,384) |
3,296 |
(88,152) |
- |
- |
(112,240) |
||||||
Income (loss) before provision for income taxes |
143,337 |
113,940 |
(88,152) |
8,790 |
(43) |
177,872 |
||||||
Provision for (benefit from) income taxes (a) |
60,439 |
41,330 |
(22,703) |
2,054 |
(32) |
81,088 |
||||||
Net income (loss) |
82,898 |
72,610 |
(65,449) |
6,736 |
(11) |
96,784 |
||||||
Less: Net income attributable to non-controlling interests |
10,202 |
25 |
- |
- |
- |
10,227 |
||||||
Net income (loss) attributable to IGT PLC |
72,696 |
72,585 |
(65,449) |
6,736 |
(11) |
86,557 |
||||||
Net income per common share - diluted |
0.36 |
0.43 |
||||||||||
Weighted-average shares - diluted |
201,565 |
201,565 |
(a) |
Provision for (benefit from) income taxes was determined based on the statutory tax rate in effect in the respective jurisdiction where the adjustment originated. |
International Game Technology PLC |
||||||||||||
Condensed Consolidated Statement of Operations |
||||||||||||
Reconciliation of Non-GAAP Financial Measures |
||||||||||||
($ and shares in thousands, except per share data) |
||||||||||||
Year to date |
Adjustments |
Year to date |
||||||||||
June 2017 |
Transaction |
June 2017 |
||||||||||
As |
Purchase |
Foreign |
Restructuring |
and Refinancing |
As |
|||||||
Reported |
Accounting |
Exchange |
Expense |
Expense, net |
Adjusted |
|||||||
Total revenue |
2,372,088 |
(358) |
- |
- |
- |
2,371,730 |
||||||
Cost of services |
1,241,034 |
(80,740) |
- |
- |
- |
1,160,294 |
||||||
Cost of product sales |
252,698 |
(53,300) |
- |
- |
- |
199,398 |
||||||
Selling, general and administrative |
410,709 |
(63,097) |
- |
- |
- |
347,612 |
||||||
Research and development |
163,133 |
(411) |
- |
- |
- |
162,722 |
||||||
Restructuring expense |
20,730 |
- |
- |
(20,730) |
- |
- |
||||||
Transaction income, net |
(27,309) |
- |
- |
- |
27,309 |
- |
||||||
Total operating expenses |
2,060,995 |
(197,548) |
- |
(20,730) |
27,309 |
1,870,026 |
||||||
Operating income |
311,093 |
197,190 |
- |
20,730 |
(27,309) |
501,704 |
||||||
Foreign exchange loss, net |
(267,223) |
- |
267,223 |
- |
- |
- |
||||||
Other (expense) income, net |
(23,445) |
1,651 |
- |
- |
25,725 |
3,931 |
||||||
Interest expense, net |
(225,697) |
1,805 |
- |
- |
- |
(223,892) |
||||||
Total non-operating expenses |
(516,365) |
3,456 |
267,223 |
- |
25,725 |
(219,961) |
||||||
(Loss) income before provision for income taxes |
(205,272) |
200,646 |
267,223 |
20,730 |
(1,584) |
281,743 |
||||||
Provision for income taxes (a) |
73,756 |
70,232 |
61,096 |
6,134 |
(84,929) |
126,289 |
||||||
Net (loss) income |
(279,028) |
130,414 |
206,127 |
14,596 |
83,345 |
155,454 |
||||||
Less: Net income attributable to non-controlling interests |
65,663 |
51 |
- |
- |
- |
65,714 |
||||||
Net (loss) income attributable to IGT PLC |
(344,691) |
130,363 |
206,127 |
14,596 |
83,345 |
89,740 |
||||||
Net (loss) income per common share - diluted |
(1.70) |
0.44 |
||||||||||
Weighted-average shares - diluted (b) |
202,714 |
203,066 |
(a) |
Provision for income taxes was 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 |
||||||||||||
Consolidated Statement of Operations |
||||||||||||
Reconciliation of Non-GAAP Financial Measures |
||||||||||||
($ and shares in thousands, except share amounts) |
||||||||||||
Year to date |
Adjustments |
Year to date |
||||||||||
June 2016 |
Impairment/ |
June 2016 |
||||||||||
As |
Purchase |
Foreign |
Restructuring |
Transaction |
As |
|||||||
Reported |
Accounting |
Exchange |
Expense |
Expense |
Adjusted |
|||||||
Total revenue |
2,567,030 |
956 |
- |
- |
- |
2,567,986 |
||||||
Cost of services |
1,286,595 |
(91,144) |
- |
- |
- |
1,195,451 |
||||||
Cost of product sales |
266,416 |
(59,351) |
- |
- |
- |
207,065 |
||||||
Selling, general and administrative |
466,767 |
(69,603) |
- |
- |
- |
397,164 |
||||||
Research and development |
168,995 |
(994) |
- |
- |
- |
168,001 |
||||||
Restructuring expense |
15,856 |
- |
- |
(15,856) |
- |
- |
||||||
Impairment loss |
2,352 |
- |
- |
(2,352) |
- |
- |
||||||
Transaction expense, net |
1,431 |
- |
- |
- |
(1,431) |
- |
||||||
Total operating expenses |
2,208,412 |
(221,092) |
- |
(18,208) |
(1,431) |
1,967,681 |
||||||
Operating income |
358,618 |
222,048 |
- |
18,208 |
1,431 |
600,305 |
||||||
Foreign exchange loss, net |
(73,404) |
- |
73,404 |
- |
- |
- |
||||||
Other expense, net |
(7,901) |
4,092 |
- |
- |
- |
(3,809) |
||||||
Interest expense, net |
(229,083) |
4,074 |
- |
- |
- |
(225,009) |
||||||
Total non-operating expenses |
(310,388) |
8,166 |
73,404 |
- |
- |
(228,818) |
||||||
Income (loss) before provision for income taxes |
48,230 |
230,214 |
73,404 |
18,208 |
1,431 |
371,487 |
||||||
Provision for income taxes (a) |
51,781 |
81,901 |
13,574 |
5,180 |
262 |
152,698 |
||||||
Net (loss) income |
(3,551) |
148,313 |
59,830 |
13,028 |
1,169 |
218,789 |
||||||
Less: Net income attributable to non-controlling interests |
16,527 |
50 |
- |
- |
- |
16,577 |
||||||
Net (loss) income attributable to IGT PLC |
(20,078) |
148,263 |
59,830 |
13,028 |
1,169 |
202,212 |
||||||
Net (loss) income per common share - diluted |
(0.10) |
1.00 |
||||||||||
Weighted-average shares - diluted (b) |
200,840 |
201,547 |
(a) |
Provision for (benefit from) income taxes was 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 |
||||
Adjusted EBITDA and Free Cash Flow |
||||
Reconciliations of Non-GAAP Financial Measures |
||||
($ thousands) |
||||
For the three months ended |
||||
June 30, |
||||
2017 |
2016 |
|||
Net (loss) income |
(252,236) |
82,898 |
||
Provision for income taxes |
84,086 |
60,439 |
||
Non-operating expenses |
360,022 |
27,384 |
||
Amortization |
102,186 |
127,578 |
||
Depreciation |
93,985 |
100,364 |
||
Amortization of upfront payments to customers |
51,640 |
27,769 |
||
Restructuring expense |
11,463 |
6,438 |
||
Stock-based compensation expense |
2,424 |
7,732 |
||
Bad debt expense |
11 |
- |
||
Impairment loss |
- |
2,352 |
||
Non-cash purchase accounting (excluding D&A) |
(204) |
224 |
||
Transaction income, net |
(29,630) |
(43) |
||
Adjusted EBITDA |
423,747 |
443,135 |
||
Cash flows from operating activities |
259,556 |
318,202 |
||
Capital expenditures |
(198,538) |
(121,961) |
||
Upfront payments to customers |
(185,368) |
(390,390) |
||
Free Cash Flow |
(124,350) |
(194,149) |
International Game Technology PLC Segment Performance |
||||||||
Revenue Detail |
||||||||
($ millions) |
||||||||
INTERNATIONAL GAME TECHNOLOGY PLC |
Quarter Change |
|||||||
2016 |
2017 |
Percentage |
Constant FX |
|||||
Q2 |
Q2 |
Q2 |
Q2 |
|||||
Gaming |
Total Revenue |
663 |
630 |
-4.9% |
-4.5% |
|||
Gaming Services |
495 |
454 |
-8.3% |
-7.8% |
||||
Terminal |
320 |
311 |
-2.7% |
-2.4% |
||||
Social (DDI) |
72 |
43 |
-40.1% |
-39.9% |
||||
Other |
103 |
99 |
-3.5% |
-2.0% |
||||
Product Sales |
168 |
177 |
5.1% |
5.0% |
||||
Terminal |
106 |
132 |
25.3% |
25.0% |
||||
Other |
63 |
44 |
-28.8% |
-28.8% |
||||
Lottery |
Total Revenue |
546 |
502 |
-8.1% |
-7.6% |
|||
Lottery Services |
519 |
485 |
-6.6% |
-6.2% |
||||
FM/Concessions |
458 |
426 |
-7.0% |
-6.6% |
||||
LMA |
39 |
55 |
42.1% |
42.1% |
||||
Other Services |
22 |
4 |
-82.8% |
-79.9% |
||||
Product Sales |
27 |
18 |
-35.5% |
-35.3% |
||||
Terminal |
8 |
1 |
-85.8% |
-85.8% |
||||
Systems/Other |
19 |
16 |
-13.1% |
-12.9% |
||||
Other |
Total Revenue |
76 |
87 |
13.9% |
14.5% |
|||
Service Revenue |
76 |
85 |
12.0% |
12.4% |
||||
Product Sales |
0 |
2 |
586.2% |
636.8% |
||||
Consolidated |
Revenue |
1,285 |
1,220 |
-5.1% |
-4.7% |
|||
Operating Income: |
||||||||
Segment Total |
338 |
315 |
-6.9% |
-6.8% |
||||
Purchase Accounting |
(111) |
(90) |
-18.4% |
-18.3% |
||||
Corporate Support |
(57) |
(33) |
-42.7% |
-41.1% |
||||
Total |
171 |
192 |
12.4% |
12.1% |
||||
NORTH AMERICA GAMING & INTERACTIVE |
Quarter Change |
|||||||
2016 |
2017 |
Percentage |
Constant FX |
|||||
Q2 |
Q2 |
Q2 |
Q2 |
|||||
Gaming |
Total Revenue |
350 |
310 |
-11.3% |
-11.1% |
|||
Gaming Services |
246 |
208 |
-15.4% |
-15.3% |
||||
Terminal |
132 |
122 |
-7.5% |
-7.4% |
||||
Social (DDI) |
72 |
43 |
-40.1% |
-39.9% |
||||
Other |
42 |
43 |
2.3% |
2.4% |
||||
Product Sales |
104 |
102 |
-1.6% |
-1.3% |
||||
Terminal |
64 |
74 |
16.3% |
16.8% |
||||
Other |
40 |
28 |
-30.3% |
-30.0% |
||||
Total |
Revenue |
350 |
310 |
-11.3% |
-11.1% |
|||
Operating Income |
88 |
76 |
-13.5% |
-14.5% |
||||
NORTH AMERICA LOTTERY |
Quarter Change |
|||||||
2016 |
2017 |
Percentage |
Constant FX |
|||||
Q2 |
Q2 |
Q2 |
Q2 |
|||||
Gaming |
Total Revenue |
37 |
37 |
-1.6% |
-1.1% |
|||
Gaming Services |
37 |
37 |
-1.5% |
-1.1% |
||||
Terminal |
26 |
25 |
-1.1% |
-1.1% |
||||
Social (DDI) |
0 |
0 |
0.0% |
0.0% |
||||
Other |
12 |
11 |
-2.4% |
-1.0% |
||||
Product Sales |
0 |
0 |
-34.3% |
-34.3% |
||||
Terminal |
0 |
0 |
-100.0% |
-100.0% |
||||
Other |
0 |
0 |
-28.7% |
-28.7% |
||||
Lottery |
Total Revenue |
249 |
256 |
2.9% |
2.9% |
|||
Lottery Services |
230 |
242 |
5.1% |
5.1% |
||||
FM/Concessions |
163 |
158 |
-3.0% |
-3.0% |
||||
LMA |
39 |
55 |
42.1% |
42.1% |
||||
Other Services |
28 |
28 |
0.5% |
0.5% |
||||
Product Sales |
19 |
15 |
-22.9% |
-22.8% |
||||
Terminal |
8 |
1 |
-85.7% |
-85.7% |
||||
Systems/Other |
11 |
14 |
20.2% |
20.3% |
||||
Total |
Revenue |
286 |
293 |
2.3% |
2.4% |
|||
Operating Income |
61 |
79 |
29.2% |
28.9% |
||||
INTERNATIONAL |
Quarter Change |
|||||||
2016 |
2017 |
Percentage |
Constant FX |
|||||
Q2 |
Q2 |
Q2 |
Q2 |
|||||
Gaming |
Total Revenue |
110 |
117 |
6.0% |
6.7% |
|||
Gaming Services |
46 |
43 |
-7.0% |
-4.2% |
||||
Terminal |
13 |
13 |
0.7% |
1.3% |
||||
Social (DDI) |
0 |
0 |
0.0% |
0.0% |
||||
Other |
34 |
30 |
-10.0% |
-6.2% |
||||
Product Sales |
64 |
74 |
15.4% |
14.5% |
||||
Terminal |
42 |
58 |
38.5% |
37.3% |
||||
Other |
22 |
16 |
-27.6% |
-27.9% |
||||
Lottery |
Total Revenue |
79 |
75 |
-5.1% |
-2.6% |
|||
Lottery Services |
70 |
72 |
1.8% |
4.6% |
||||
FM/Concessions |
53 |
49 |
-7.7% |
-5.5% |
||||
LMA |
0 |
0 |
0.0% |
0.0% |
||||
Other Services |
18 |
23 |
30.5% |
35.0% |
||||
Product Sales |
8 |
3 |
-65.0% |
-64.6% |
||||
Terminal |
1 |
0 |
-87.0% |
-87.0% |
||||
Systems/Other |
8 |
3 |
-63.2% |
-62.7% |
||||
Other |
Total Revenue |
18 |
20 |
7.7% |
7.6% |
|||
Service Revenue |
18 |
18 |
-0.7% |
-1.6% |
||||
Product Sales |
0 |
2 |
586.2% |
636.8% |
||||
Total |
Revenue |
207 |
211 |
2.0% |
3.3% |
|||
Operating Income |
28 |
45 |
63.3% |
68.4% |
||||
ITALY |
Quarter Change |
|||||||
2016 |
2017 |
Percentage |
Constant FX |
|||||
Q2 |
Q2 |
Q2 |
Q2 |
|||||
Gaming |
Total Revenue |
166 |
165 |
-0.4% |
0.1% |
|||
Gaming Services |
166 |
165 |
-0.5% |
-0.1% |
||||
Terminal |
150 |
150 |
0.2% |
0.7% |
||||
Social (DDI) |
0 |
0 |
0.0% |
0.0% |
||||
Other |
16 |
14 |
-7.8% |
-7.2% |
||||
Product Sales |
0 |
1 |
92.3% |
96.0% |
||||
Terminal |
0 |
0 |
0.0% |
0.0% |
||||
Other |
0 |
0 |
34.7% |
39.4% |
||||
Lottery |
Total Revenue |
219 |
171 |
-21.7% |
-21.5% |
|||
Lottery Services |
219 |
171 |
-21.7% |
-21.5% |
||||
FM/Concessions |
242 |
219 |
-9.6% |
-9.4% |
||||
LMA |
0 |
0 |
0.0% |
0.0% |
||||
Other Services |
(23) |
(48) |
102.7% |
103.2% |
||||
Product Sales |
0 |
0 |
0.0% |
0.0% |
||||
Terminal |
0 |
0 |
0.0% |
0.0% |
||||
Systems/Other |
0 |
0 |
0.0% |
0.0% |
||||
Other |
Total Revenue |
58 |
67 |
15.9% |
16.8% |
|||
Service Revenue |
58 |
67 |
15.9% |
16.8% |
||||
Product Sales |
0 |
0 |
0.0% |
0.0% |
||||
Total |
Revenue |
443 |
404 |
-8.8% |
-8.4% |
|||
Operating Income |
161 |
114 |
-29.2% |
-28.9% |
Consolidated Key Performance Indicators (KPIs) |
|||
Second Quarter |
|||
Period Ended June 30 |
2017 |
2016 |
% change |
Installed base (end of period) |
|||
Casino |
34,853 |
33,399 |
4.4% |
VLT - Government Sponsored (ex-Italy) |
16,192 |
15,605 |
3.8% |
VLT - Italy Supplier (B2B) |
8,819 |
8,159 |
8.1% |
Total installed base |
59,864 |
57,163 |
4.7% |
Yield (average revenue per unit per day - $0.00) |
29.63 |
32.57 |
-9.0% |
Additional Italian Network Details: |
|||
VLT - Operator (B2C) |
10,907 |
10,995 |
-0.8% |
AWP |
59,070 |
56,300 |
4.9% |
Machine units shipped |
|||
New/Expansion |
1,849 |
1,447 |
27.8% |
Replacement |
7,035 |
6,705 |
4.9% |
Total machines shipped |
8,884 |
8,152 |
9.0% |
Global lottery same-store revenue growth |
|||
Instants & draw games |
4.9% |
||
Multistate Jackpots |
-14.1% |
||
Total lottery same-store revenue growth (ex-Italy) |
2.6% |
||
Italy lottery revenue growth |
-21.5% |
||
North America KPIs |
|||
Second Quarter |
|||
Period Ended June 30 |
2017 |
2016 |
% change |
Installed base (end of period) |
|||
Casino |
23,649 |
24,171 |
-2.2% |
VLT - Government Sponsored |
15,267 |
15,355 |
-0.6% |
Total installed base |
38,916 |
39,526 |
-1.5% |
Machine units shipped |
|||
New/Expansion |
1,408 |
1,277 |
10.3% |
Replacement |
3,885 |
3,886 |
0.0% |
Total machines shipped |
5,293 |
5,163 |
2.5% |
Lottery same-store revenue growth |
|||
Instants & draw games |
5.6% |
||
Multistate Jackpots |
-18.2% |
||
Total lottery same-store revenue growth |
2.2% |
||
International KPIs |
|||
Second Quarter |
|||
Period Ended June 30 |
2017 |
2016 |
% change |
Installed base (end of period) |
|||
Casino |
11,204 |
9,228 |
21.4% |
VLT - Government Sponsored |
925 |
250 |
270.0% |
Total installed base |
12,129 |
9,478 |
28.0% |
Machine units shipped |
|||
New/Expansion |
441 |
170 |
159.4% |
Replacement |
3,150 |
2,819 |
11.7% |
Total machines shipped |
3,591 |
2,989 |
20.1% |
Lottery same-store revenue growth |
|||
Instants & draw games |
2.8% |
||
Multistate Jackpots |
16.8% |
||
Total lottery same-store revenue growth |
3.6% |
||
Italy KPIs |
|||
Second Quarter |
|||
Period Ended June 30 |
2017 |
2016 |
% change |
(In € millions, except machines) |
|||
Lottery |
|||
Lotto wagers |
1,842 |
2,056 |
-10.4% |
10eLotto |
1,269 |
1,191 |
6.6% |
Core |
484 |
542 |
-10.6% |
Late Numbers |
88 |
324 |
-72.8% |
Scratch & Win Wagers |
2,183 |
2,200 |
-0.8% |
Italy lottery revenue growth |
-21.5% |
||
Gaming |
|||
Installed base (end of period) |
|||
VLT - Operator (B2C) |
10,907 |
10,995 |
-0.8% |
VLT - Supplier (B2B) |
8,819 |
8,159 |
8.1% |
AWP |
59,070 |
56,300 |
4.9% |
Total Installed Base |
78,796 |
75,454 |
4.4% |
Wagers |
|||
VLT - Operator (B2C) |
1,370 |
1,324 |
3.5% |
AWP |
960 |
1,034 |
-7.2% |
Interactive Wagers (Gaming) |
413 |
398 |
3.8% |
Other |
|||
Sports Betting Wagers1 |
226 |
206 |
9.5% |
Sports Betting Payout (%)1 |
82.3% |
86.5% |
-4.2 pp |
1Includes Virtual Wagers and Pools & Horses |
View original content with multimedia:http://www.prnewswire.com/news-releases/international-game-technology-plc-reports-second-quarter-2017-results-300497240.html
SOURCE