As the industry leader, IGT is committed to sharing the latest information.
International Game Technology PLC Reports First Quarter 2018 Results
"Compelling content and technology solutions are driving our results," said
"We are solidly positioned to achieve our 2018 strategic and financial goals," said
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
- Up 4% at constant currency and scope (adjusted for the sale of
Double Down Interactive LLC ("DoubleDown")) - Driven by strong global casino systems sales, broad-based momentum in lottery, and
Italy sports betting results
Adjusted EBITDA rose 18% to
- Higher underlying revenue and profit across all business segments
- Includes
$15 million timing benefit from adoption of new accounting standard, ASC 606
Adjusted operating income was
- Increase driven by revenue growth
- Selling, general and administrative expenses up
$15 million compared to the prior year, which had benefited from$18 million in one-off bad debt recovery
Interest expense was
Provision for income taxes rose to
- Reflects increases in valuation allowances in the
U.K. and higher tax accruals in the current quarter - Prior-year benefit driven by pretax loss in the quarter
Net loss attributable to IGT was
Net loss per diluted share of
Cash from operations was
- A change in accounting standards requiring restricted cash to be included with cash and cash equivalents within the statement of cash flows
- The timing of
Italy receivables and incentive compensation payments
Cash and cash equivalents were
- Maturity of €500 million 6.625% Senior Secured Notes funded in the quarter
Net debt was
$119 million net negative impact from foreign currency adjustments$50 million reclassified from cash to restricted cash due to legislative changes impacting theItaly commercial services business
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
- Up 3% at constant scope, primarily on higher product sales
- Gaming service revenue was
$154 million compared to$234 million in the prior-year period - Decline fully attributable to the sale of DoubleDown and ASC 606 classification of jackpot expense as a contra revenue item (previously included in cost of services)
- Installed base up approximately 375 units sequentially; down year-over-year due to large conversion sales in 2017
- Product sales of
$89 million , up 26% from the prior year - Strong systems sales, for both central systems and add-on solutions
- Shipped 3,716 gaming machine units in the quarter compared to 3,944 units in the prior-year period
- New and Expansion units down from 1,157 units to 1,024 units on fewer openings
- Continued growth in replacement units to casino customers; overall decline due to fewer VLT sales in
Canada andOregon
Operating income of
- Up 17% at constant scope
- Increased revenues
- Higher-margin business mix
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
- Lottery Service revenue rose 4% to
$241 million - Same-store revenue up 11.0% on higher jackpot activity and instants innovation
- Benefit from incentives accrued for
New Jersey andIndiana lottery management agreements - Impacted by exit of low-margin contracts, lower effective rates on recent contract extensions, and weather-related service disruption
- Lottery Product Sales increased 27% on a reported basis to
$16 million on higher sales of retailer terminals
Operating income rose 11% to
- Same-store revenue growth and
New Jersey andIndiana incentives - Partially offset by increased depreciation and amortization and investment in research and development
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
- Lottery Service revenue increased 9% on a reported basis, and 3% at constant currency, to
$72 million - Same-store revenue growth of 4.1% on broad-based geographic strength
- Higher EuroMillions jackpot activity
- Gaming Product Sales revenue up 37% on a reported basis, and 32% at constant currency, to
$51 million - Strong systems sales
- Higher gaming machine unit shipments, including double-digit growth in replacement units
- Gaming Service revenue dropped 3% on a reported basis, and 8% at constant currency, to
$40 million - Decline entirely attributable to ASC 606 classification of jackpot expense as contra revenue item (previously included in cost of services)
- Up 5% on a reported basis, and down 1% at constant currency, before ASC 606
- Significant installed base growth driven by Greek VLT and video bingo machines
- Partially offset by exit of certain low margin businesses and lower yields due to geographic mix
Operating income up significantly to
- Higher revenue, improved product mix, and lower SG&A
- Unusually low results in prior-year period
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
- Lottery Service revenue was
$214 million , increase of 24% on a reported basis, and 8% at constant currency - Lotto wagers up 8.6% to €2,034 million on 17% growth in 10eLotto wagers
- Scratch & Win wagers up 2.9% to €2.4 billion on Miliardario momentum
- Gaming Service revenue of
$190 million was up 8%; down 6% at constant currency - Decline reflects higher gaming machine taxes and regulator-mandated reduction in AWP units
- Partially offset by improved underlying game performance
- Sports betting revenue up on payout of 81.2% versus 89.5% in the prior year
Operating income increased to
- Revenue growth
- Partially offset by higher operating expenses
- Advertising and marketing costs for new Lottery games
- Increased depreciation and amortization
Other Developments
The Company's board of directors declared a quarterly cash dividend of
- Record date of
June 5, 2018 - Payment date of
June 19, 2018
In a separate news release today, the Company is announcing a derivatives transaction by
De Agostini , IGT's majority shareholder with 103 million ordinary shares, entered into a variable forward transaction relating to 18 million IGT ordinary shares- IGT is not a party to the variable forward transaction and is not issuing or selling any IGT ordinary shares in connection with the transaction
- IGT will be filing a registration statement on Form F-3 (including a base prospectus) and a preliminary prospectus supplement with the
U.S. Securities Exchange Commission ("SEC ") in connection with the transaction De Agostini has advised IGT that they are not considering any additional transactions involving their IGT ordinary shares, and they intend to remain IGT's controlling shareholderDe Agostini will be filing an amendment to its Schedule 13D in connection with the transaction- Please refer to IGT's and
De Agostini's respectiveSEC filings for additional details - This news release shall not constitute an offer to sell or the solicitation of an offer to buy the securities described herein, nor shall there be any offer or sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction
The Company has consolidated leadership of the North America Gaming & Interactive and North America Lottery segments under
Aligns North America with the regional model that already exists for the International andItaly segments- Global product and service responsibilities for Lottery, Gaming, and Interactive will continue to be assigned primarily to the
North America region; local Gaming product marketing, field services, and operations will remain within each region - Better positions the Company to leverage strategic new opportunities, such as sports betting
- The Company will continue to report financial results and key performance indicators for the North America Gaming & Interactive and North America Lottery segments
IGT will host an Investor Day on
- Primary focus of the event will be on IGT's global Lottery operations
- Please contact Investor_Relations@IGT.com for additional details
Outlook
- Adjusted EBITDA of
$1,700-$1,780 million - Unchanged from prior outlook
- Inclusive of
$10-$15 million negative impact from treatment of intellectual property contracts under ASC 606 - Capital expenditures of
$575-$625 million - Average EUR/USD exchange rate assumption of 1.22
Conference Call and Webcast
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
- US/
Canada toll-free dial-in number is +1 844 842 7999 - Outside the US/
Canada toll-free number is +1 612 979 9887 - Conference ID/confirmation code is 5181158
- A telephone replay of the call will be available for one week
- US/
Canada replay number is +1 855 859 2056 - Outside the US/
Canada replay number is +1 404 537 3406 - ID/Confirmation code is 5181158
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
Contact:
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% |
View original content with multimedia:http://www.prnewswire.com/news-releases/international-game-technology-plc-reports-first-quarter-2018-results-300652127.html
SOURCE