LONDON, Aug. 11, 2015 /PRNewswire/ -- International
Game Technology PLC ("IGT") (NYSE: IGT) today reported financial
results for the second quarter and six months ended June 30, 2015. This is IGT's inaugural earnings
announcement since the combination of GTECH S.p.A. ("GTECH") and
International Game Technology ("legacy IGT") was completed on
April 7, 2015.
In a separate news release issued today, the Company's Board of
Directors initiated a quarterly cash dividend of $0.20 per ordinary share. The first cash dividend
is payable on September 10, 2015 to
shareholders of record as of the close of business on August 26, 2015.
"We are pleased to report for the first time as a single
Company," said Marco Sala,
CEO of IGT. "As anticipated, our second quarter results
reflect the stable growth characteristics of our global lottery
operations and a meaningful sequential improvement in our gaming
operations. We have accomplished a lot in the past four
months, notably organizing ourselves under a single leadership team
and consolidating our manufacturing footprint. There is much more
ahead of us. In this year of transformation, we will continue
to focus on integration to provide a solid foundation for future
growth and value creation."
"The second quarter is a major milestone for our Company, as
we present our first set of financials in dollars, under U.S.
GAAP," said Alberto Fornaro,
CFO of IGT. "Our adjusted operating income improved from the
prior year's level on a pro forma, constant currency basis and our
financial condition remains strong. We will continue to operate
with our customary, disciplined cost management and are confident
in achieving our synergy targets according to plans."
Summary of
Consolidated Second Quarter Financial Results
|
|
Second Quarter -
Reported
|
Second Quarter -
Pro forma
|
|
|
|
|
|
|
|
Constant
|
Periods Ended June
30,
|
2015
|
2014
|
Change
|
2015
|
2014
|
Change
|
Currency
|
|
|
|
(%)
|
|
|
(%)
|
Change
(%)
|
(In US $ millions,
unless otherwise noted)
|
|
|
|
|
|
|
|
Revenue
|
1,290
|
945
|
36%
|
1,290
|
1,413
|
-9%
|
1%
|
Adjusted
EBITDA
|
427
|
323
|
32%
|
427
|
487
|
-12%
|
0%
|
Adjusted Operating
Income
|
275
|
198
|
39%
|
275
|
310
|
-11%
|
3%
|
Operating
Income
|
116
|
171
|
-32%
|
116
|
280
|
-59%
|
-43%
|
Net income per
diluted share
|
(0.59)
|
0.32
|
NM
|
(0.59)
|
NA
|
|
|
Adjusted net income
per diluted share
|
0.35
|
0.42
|
-17%
|
0.35
|
NA
|
|
|
Net debt
|
8,384
|
2,642
|
NM
|
8,384
|
NA
|
|
|
Note: Pro forma is
defined as the Company's results assuming the acquisition of legacy
IGT as of January 1, 2014 and excluding the impacts of purchase
accounting. Adjusted operating income, adjusted EBITDA, 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.
As a result of the merger, a number of items affect the
comparability of reported results. Reported financial
information for the second quarter of 2015 includes the results of
operations of GTECH for the entire period and those of legacy IGT
from the date of the acquisition. Reported financial information
for the second quarter of 2014 includes only GTECH
operations. Pro forma figures represent the combined results
of both companies in 2014.
Adjusted figures exclude the impact of purchase price
amortization, restructuring expense, and certain one-time,
primarily transaction-related items. Reconciliations to the
most directly comparable GAAP measures are included in the tables
in this news release.
Reported 2015 results were adversely impacted by the
strengthening of the U.S. dollar compared to the euro; the daily
average U.S. dollar to euro foreign exchange rate was 1.11 in the
second quarter of 2015 compared to 1.37 in the second quarter of
2014. Constant currency changes for 2015 are calculated using the
same foreign exchange rates as the corresponding 2014 period.
Management believes that referring to certain pro forma,
constant currency, or adjusted measures is a more useful way to
evaluate the Company's underlying performance.
As previously announced, the Company is organized into four
customer-facing segments:
- North America Gaming & Interactive includes sales to
commercial customers in the U.S. and Canada, and has global responsibility for the
product development, manufacturing, marketing and delivery of all
Company gaming offerings, including DoubleDown Casinoâ„¢ online
social gaming, as well as interactive and sports betting.
- North America Lottery focuses on World Lottery
Association (WLA) customers in the U.S. and Canada, and has global responsibility for the
product development, marketing, and delivery of all Company lottery
offerings.
- International is responsible for all business conducted
outside of North America and
Italy across the Company's entire
product portfolio, with specialized and separate sales and
operations groups supported by North America Lottery and North
America Gaming & Interactive as appropriate.
- Italy is responsible
for all business conducted in Italy across the Company's entire product
portfolio. Product development, marketing, manufacturing and
servicing are supported by North America Lottery and North America
Gaming & Interactive as appropriate.
Overview of Consolidated Second Quarter Results
Reported consolidated revenue grew 36% to $1.29 billion from $945
million in the second quarter of 2014, reflecting GTECH's
acquisition of legacy IGT. On a pro forma, constant currency basis,
consolidated revenue increased 1%, reflecting double-digit
increases in the North American Lottery and International segments,
partially offset by single-digit declines in the Italy and North America Gaming &
Interactive segments. During the quarter, the Company sold 10,147
gaming machines worldwide and global lottery same-store revenue
excluding Italy increased 7%.
On a reported basis, adjusted EBITDA of $427 million was 32% above the second quarter of
2014. On a pro forma, constant currency basis, EBITDA was in
line with the prior year period. Higher global lottery profits were
offset by lower gaming profits.
Reported operating income was $116
million, compared to $171
million in the second quarter of 2014. On a pro forma,
constant currency basis, adjusted operating income increased 3%
despite higher investment in research and development for both
gaming and lottery.
Interest expense was $122 million
compared to $56 million last year due
to increased debt incurred to finance the legacy IGT
acquisition.
Net loss attributable to IGT was $117
million in the second quarter of 2015. On an adjusted basis,
net income was $70 million. The
Company reported a net loss per diluted share of $0.59, but earned $0.35 per diluted share on an adjusted basis.
Cash from operations was $217
million in the first half of the year despite approximately
$150 million in one-time,
transaction-related costs, and capital expenditures were
$167 million.
Cash and cash equivalents increased to $557 million as of June
30, 2015, compared to $503
million as of June 30,
2014.
At June 30, 2015, consolidated
shareholders' equity totaled $3.56
billion and net debt was $8.38
billion.
Operating Segment Review
North America Gaming & Interactive
North
America Gaming & Interactive revenue was $353 million compared to $28 million in the second quarter of 2014. On a
pro forma basis, North America Gaming & Interactive revenue
declined 8% as higher machine sales and social gaming revenue were
offset by lower participation revenue and non-machine sales.
Due to the acquisition, there were four fewer days in the
second quarter of 2015 for legacy IGT operations compared to the
prior-year period. Excluding the impact of the four fewer
days, total pro forma revenue declined 5%.
Total service revenue was $237
million compared to $9 million
in the prior-year period. On a pro forma basis, service revenue
declined 10% as a result of a lower installed base, partially
mitigated by improved game performance. Excluding the impact of the
four fewer days in the quarter for legacy IGT operations, pro forma
service revenue declined 6%. Product sales were $116 million compared to $19 million in the second quarter of 2014. On a
pro forma, constant currency basis, product sales were in line with
the prior year, reflecting the sale of 6,218 units, supported by
strong demand for new cabinets during the quarter. The increase in
machine sales was partially offset by an expected decrease in
intellectual property revenue.
North America Lottery
Revenue for the North America
Lottery segment was $270 million in
the quarter, 24% higher than the prior year on a reported basis and
14% greater on a pro forma basis. The growth in revenue primarily
reflects the impact of penalties recognized in the prior-year
period. Excluding prior-year penalties, pro forma revenue for the
North America Lottery segment declined 3%.
Service revenue increased 35% on a reported basis and 22% on a
pro forma basis, reflecting 6% same-store revenue growth supported
by strong instant ticket sales and local draw-based game
performance. New contracts also contributed to service revenue
growth. Product sales of $17
million in the quarter were below the second quarter of
2014, reflecting large, one-time sales in the prior-year
period.
International
International revenue was $247 million, 67% higher than the prior year on a
reported basis. On a pro forma, constant currency basis,
international revenue rose 17%, reflecting strong product sales for
lottery terminals and gaming machines.
International lottery same-store revenue was up approximately 8%
on continued, broad-based strength in instant tickets and robust
jackpot growth in Eastern Europe. Lottery product sales
increased significantly on large South African terminal and system
sales.
International gaming service revenue nearly tripled on a
reported basis but declined 1% on a pro forma, constant currency
basis, reflecting a contraction in the installed base, mostly due
to conversion of leased units in Mexico over the last year. Gaming product
sales increased significantly, supported by 3,929 unit sales across
Latin America, Europe and South Africa.
Italy
Revenue in
Italy was $432 million, 22% below the second quarter of
2014, principally due to the weakening of the euro against the U.S.
dollar. Excluding the impact of currency translation, Italian
revenue was down 4% from the prior-year period, as strong growth in
Lotto was offset by the anticipated impact of higher taxes on
gaming machines.
Total Lotto wagers in the quarter were up 11% to €1.73 billion
compared to €1.56 billion last year, driven by strong performance
in 10eLotto and Numero ORO. Instant-ticket wagers declined 4% to
€2.22 billion versus €2.32 billion last year, primarily due to the
timing of new product introductions.
Machine gaming revenue declined 8% in constant currency,
reflecting the higher taxes associated with the Stability Law.
Excluding the Stability Law impact, machine gaming revenue was in
line with the prior-year period in constant currency, as improved
machine productivity offset a decline in the number of units.
Outlook
The Company expects to realize $230
million in cost synergies by April
2018, and is expected to achieve two-thirds of targeted
savings on an annualized basis by April
2016.
The Company expects pro forma adjusted EBITDA of $1.575 -$1.675 billion in Fiscal Year 2015.
Capital expenditures for the year are estimated at $450-$500 million, which does not include €350
million (approximately $385 million
at current exchange rates) of upfront capital if the Company is
successful in renewing the Italian Lotto concession.
Conference Call and Webcast
Today, at 8:00 a.m. EDT /
1:00 p.m. BST / 2:00 p.m. CEST, management will host a conference
call to present the second quarter 2015 results. Listeners may
access a live webcast of the conference call along with
accompanying slides under "News and Presentations" on IGT's
Investor Relations website at www.merger.igt.com/investors. A
replay of the webcast will be available on the website following
the live event. To listen by telephone, the dial in number is +44
(0) 20 3427 1903 for participants in the United Kingdom and +1-212-444-0895 for
listeners outside the United
Kingdom. The conference ID/confirmation code is 2521829. A
telephone replay of the call will be available for one week at +44
(0) 20 3427 0598 or +1-347-366-9565 using the conference
ID/confirmation code 2521829.
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 more than 13,000 employees. For more
information, please visit www.merger.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 IGT 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 IGT 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 are subject to various risks and
uncertainties, many of which are outside IGT'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) risks that the businesses of legacy IGT and GTECH will
not be integrated successfully or that the combined companies will
not realize estimated cost savings, synergies, growth or other
anticipated benefits or that such benefits may take longer to
realize than expected; risks that the Company may not obtain its
anticipated financial results in one or more future periods; risks
relating to unanticipated costs of integration of the two
companies; reductions in customer spending; a slowdown in customer
payments and changes in customer demand for products and services;
unanticipated changes relating to competitive factors in the
industries in which the company operates; ability to hire and
retain key personnel; the potential impact of the consummation of
the business combination on relationships with third parties,
including customers, employees and competitors; ability to attract
new customers and retain existing customers in the manner
anticipated; reliance on and integration of information technology
systems; changes in legislation or governmental regulations
affecting the company; international, national or local economic,
social or political conditions that could adversely affect the
company or its customers; conditions in the credit markets; risks
associated with assumptions the company makes in connection with
its critical accounting estimates; the resolution of pending and
potential future legal regulatory or tax proceedings and
investigations; and the company's international operations, which
are subject to the risks of currency fluctuations and foreign
exchange controls. The foregoing list of factors is not exhaustive.
You should carefully consider the foregoing factors and the other
risks and uncertainties that affect the company's business,
including those described in IGT's annual report on Form 20-F for
the fiscal year ended December 31,
2014 and other documents filed from time to time with the
Securities and Exchange Commission (the "SEC"). Except as required
under applicable law, the company does not assume any obligation to
update these forward-looking statements. Nothing in this news
release is intended, or is to be construed, as a profit forecast or
to be interpreted to mean that earnings per IGT share for the
current or any future financial years will necessarily match or
exceed the historical published earnings per IGT share, as
applicable. 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 IGT, or persons acting on its behalf,
are expressly qualified in their entirety by this cautionary
statement.
Contact:
Robert K.
Vincent, Corporate Communications, +1-401-392-7452
James Hurley, Investor Relations,
+1-401-392-7190
Simone Cantagallo, +39 06 51899 030;
for Italian media inquiries
International Game
Technology PLC and Subsidiaries
|
|
|
|
|
Consolidated
Income Statements
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended
|
|
|
June
30,
|
|
|
2015
|
|
2014
|
($ and shares in
thousands, except per share data)
|
|
Unaudited
|
Service
revenue
|
|
1,050,489
|
|
861,555
|
Product
sales
|
|
239,591
|
|
83,763
|
Total
revenue
|
|
1,290,080
|
|
945,318
|
|
|
|
|
|
Cost of
services
|
|
632,655
|
|
589,558
|
Cost of
sales
|
|
177,244
|
|
51,685
|
Selling, general and
administrative
|
|
232,586
|
|
99,184
|
Research and
development
|
|
83,933
|
|
24,810
|
Restructuring
expense
|
|
15,818
|
|
4,193
|
Impairment
loss
|
|
-
|
|
1,802
|
Transaction expense,
net
|
|
32,344
|
|
3,406
|
|
|
1,174,580
|
|
774,638
|
|
|
|
|
|
Operating
income
|
|
115,500
|
|
170,680
|
|
|
|
|
|
Interest
income
|
|
7,506
|
|
1,169
|
Equity income (loss),
net
|
|
243
|
|
(2,878)
|
Other
income
|
|
2,340
|
|
498
|
Other
expense
|
|
(1,563)
|
|
(3,523)
|
Foreign exchange
loss, net
|
|
(102,344)
|
|
(867)
|
Interest
expense
|
|
(122,418)
|
|
(55,922)
|
|
|
(216,236)
|
|
(61,523)
|
|
|
|
|
|
Income (loss)
before income tax expense
|
|
(100,736)
|
|
109,157
|
|
|
|
|
|
Income tax
expense
|
|
11,599
|
|
47,355
|
|
|
|
|
|
Net income
(loss)
|
|
(112,335)
|
|
61,802
|
|
|
|
|
|
Less: Net income
attributable to non-controlling interests
|
|
4,555
|
|
6,628
|
|
|
|
|
|
Net income (loss)
attributable to IGT
|
|
(116,890)
|
|
55,174
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to IGT per ordinary share - basic
|
(0.59)
|
|
0.32
|
Net income (loss)
attributable to IGT per ordinary share - diluted
|
(0.59)
|
|
0.32
|
|
|
|
|
|
Weighted-average
shares - basic
|
|
197,149
|
|
174,393
|
Weighted-average
shares - diluted
|
|
197,149
|
|
174,964
|
International Game
Technology PLC and Subsidiaries
|
|
|
|
|
Consolidated
Income Statements
|
|
|
|
|
|
|
|
|
|
|
|
For the six
months ended
|
|
|
June
30,
|
|
|
2015
|
|
2014
|
($ and shares in
thousands, except per share data)
|
|
Unaudited
|
Service
revenue
|
|
1,859,782
|
|
1,827,648
|
Product
sales
|
|
297,571
|
|
154,941
|
Total
revenue
|
|
2,157,353
|
|
1,982,589
|
|
|
|
|
|
Cost of
services
|
|
1,158,770
|
|
1,207,033
|
Cost of
sales
|
|
212,342
|
|
93,584
|
Selling, general and
administrative
|
|
328,037
|
|
200,774
|
Research and
development
|
|
106,154
|
|
50,973
|
Restructuring
expense
|
|
30,299
|
|
8,094
|
Impairment
loss
|
|
-
|
|
1,802
|
Transaction expense,
net
|
|
43,394
|
|
3,406
|
|
|
1,878,996
|
|
1,565,666
|
|
|
|
|
|
Operating
income
|
|
278,357
|
|
416,923
|
|
|
|
|
|
Interest
income
|
|
8,119
|
|
2,258
|
Equity income (loss),
net
|
|
15
|
|
(2,784)
|
Other
income
|
|
2,954
|
|
1,190
|
Other
expense
|
|
(138,515)
|
|
(6,578)
|
Foreign exchange
loss, net
|
|
(95,340)
|
|
(2,441)
|
Interest
expense
|
|
(211,918)
|
|
(111,580)
|
|
|
(434,685)
|
|
(119,935)
|
|
|
|
|
|
Income (loss)
before income tax expense
|
|
(156,328)
|
|
296,988
|
|
|
|
|
|
Income tax
expense
|
|
454
|
|
120,981
|
|
|
|
|
|
Net income
(loss)
|
|
(156,782)
|
|
176,007
|
|
|
|
|
|
Less: Net income
attributable to non-controlling interests
|
|
8,281
|
|
15,394
|
|
|
|
|
|
Net income (loss)
attributable to IGT
|
|
(165,063)
|
|
160,613
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to IGT per ordinary share -basic
|
|
(0.89)
|
|
0.92
|
Net income (loss)
attributable to IGT per ordinary share - diluted
|
(0.89)
|
|
0.92
|
|
|
|
|
|
Weighted-average
shares - basic
|
|
185,007
|
|
174,260
|
Weighted-average
shares - diluted
|
|
185,007
|
|
174,713
|
International Game
Technology PLC and Subsidiaries
|
|
|
|
Condensed
Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
2015
|
|
2014
|
($
thousands)
|
Unaudited
|
ASSETS
|
|
|
|
Cash and cash
equivalents
|
557,093
|
|
317,106
|
Restricted
cash
|
152,254
|
|
108,115
|
Trade and other
receivables
|
1,050,491
|
|
919,606
|
Inventories
|
288,720
|
|
184,593
|
Other current
assets
|
439,702
|
|
223,703
|
Income taxes
receivable
|
79,174
|
|
6,628
|
Deferred income
taxes
|
153,259
|
|
49,877
|
Total current
assets
|
2,720,693
|
|
1,809,628
|
|
|
|
|
Systems, equipment
and other assets related to contracts, net
|
1,169,361
|
|
1,086,426
|
Property, plant and
equipment, net
|
319,048
|
|
123,571
|
Goodwill
|
7,027,810
|
|
4,143,064
|
Intangible and other
assets, net
|
4,880,332
|
|
1,500,836
|
Deferred income
taxes
|
86,045
|
|
14,581
|
Total non-current
assets
|
13,482,596
|
|
6,868,478
|
|
|
|
|
TOTAL
ASSETS
|
16,203,289
|
|
8,678,106
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
LIABILITIES
|
|
|
|
Accounts
payable
|
1,044,018
|
|
1,241,042
|
Other current
liabilities
|
864,459
|
|
862,357
|
Current portion of
long-term debt
|
1,556
|
|
849,600
|
Short-term
borrowings
|
-
|
|
10,800
|
Income taxes
payable
|
94,124
|
|
20,892
|
Total current
liabilities
|
2,004,157
|
|
2,984,691
|
|
|
|
|
Long-term debt, less
current portion
|
8,939,402
|
|
2,099,071
|
Deferred income
taxes
|
1,207,109
|
|
252,493
|
Other non-current
liabilities
|
492,372
|
|
200,417
|
Total non-current
liabilities
|
10,638,883
|
|
2,551,981
|
|
|
|
|
TOTAL
LIABILITIES
|
12,643,040
|
|
5,536,672
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES
|
-
|
|
-
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
3,560,249
|
|
3,141,434
|
|
|
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
16,203,289
|
|
8,678,106
|
International Game
Technology PLC and Subsidiaries
|
|
|
|
Condensed
Consolidated Statements of Cash Flows
|
|
|
|
|
|
|
|
|
For the six
months ended
|
|
June
30,
|
|
2015
|
|
2014
|
($
thousands)
|
Unaudited
|
Cash flows from
operating activities
|
217,085
|
|
481,117
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
Acquisition of IGT,
net of cash acquired
|
(3,241,415)
|
|
-
|
Capital
expenditures
|
(167,092)
|
|
(167,188)
|
Other investing
activities
|
22,461
|
|
661
|
Net cash flows
used in investing activities
|
(3,386,046)
|
|
(166,527)
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
Proceeds from
issuance of long-term debt
|
6,599,368
|
|
-
|
Net repayments of
short-term borrowings
|
(4,623)
|
|
(1,122)
|
Dividends paid -
non-controlling interest
|
(27,205)
|
|
(44,705)
|
Payments in
connection with note consents
|
(29,022)
|
|
-
|
Return of capital -
non-controlling interest
|
(30,281)
|
|
(58,110)
|
Payments on bridge
facility
|
(51,409)
|
|
-
|
Net payments on
financial liabilities
|
(54,493)
|
|
-
|
Debt issuance costs
paid
|
(78,878)
|
|
-
|
Payments in
connection with the early extinguishment of debt
|
(79,526)
|
|
-
|
Dividends
paid
|
(129,524)
|
|
(177,608)
|
Payments to
withdrawing shareholders
|
(407,759)
|
|
-
|
Principal payments on
long-term debt
|
(2,300,504)
|
|
-
|
Acquisition of
non-controlling interest
|
-
|
|
(99,726)
|
Other
|
28,936
|
|
(2,780)
|
Net cash flows
provided by (used in) financing activities
|
3,435,080
|
|
(384,051)
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
266,119
|
|
(69,461)
|
Effect of exchange
rate changes on cash
|
(26,132)
|
|
(5,147)
|
Cash and cash
equivalents at the beginning of the period
|
317,106
|
|
578,008
|
Cash and cash
equivalents at the end of the period
|
557,093
|
|
503,400
|
International Game
Technology PLC and Subsidiaries
|
|
|
|
Net
Debt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December
31,
|
($
thousands)
|
2015
|
|
2014
|
Long-term debt,
less current portion
|
|
|
|
Senior
Notes
|
4,867,658
|
|
-
|
Revolving
Facilities
|
1,337,982
|
|
876,505
|
Term Loan
|
890,402
|
|
-
|
Notes due February
2018
|
546,633
|
|
590,557
|
Notes due March
2020
|
532,788
|
|
575,270
|
Notes due June
2019
|
526,720
|
|
-
|
Notes due June
2020
|
124,933
|
|
-
|
Notes due October
2023
|
61,369
|
|
-
|
Capital
Securities
|
50,754
|
|
54,975
|
Other
|
163
|
|
1,764
|
|
8,939,402
|
|
2,099,071
|
|
|
|
|
Current portion of
long-term debt
|
1,556
|
|
849,600
|
Short-term
borrowings
|
-
|
|
10,800
|
|
|
|
|
Total
debt
|
8,940,958
|
|
2,959,471
|
|
|
|
|
Cash and cash
equivalents
|
557,093
|
|
317,106
|
|
|
|
|
Net
debt
|
8,383,865
|
|
2,642,365
|
International Game
Technology PLC and Subsidiaries
|
Operating Metrics
and Reconciliations
|
($ and shares in
thousands, except per share data)
|
|
|
|
|
|
For the three
months ended
|
|
|
June
30,
|
|
Change
|
|
|
2015
|
|
2014
|
|
$
|
|
%
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
1,290,080
|
|
945,318
|
|
344,762
|
|
36.5
|
Adjusted
EBITDA
|
|
426,633
|
|
322,763
|
|
103,870
|
|
32.2
|
Operating
income
|
|
115,500
|
|
170,680
|
|
(55,180)
|
|
(32.3)
|
Adjusted Operating
income
|
|
274,886
|
|
198,192
|
|
76,694
|
|
38.7
|
Net income (loss)
attributable to IGT
|
|
(116,890)
|
|
55,174
|
|
(172,064)
|
|
(311.9)
|
Adjusted Net income
attributable to IGT
|
|
70,454
|
|
73,500
|
|
(3,046)
|
|
(4.1)
|
Net income (loss)
attributable to IGT per ordinary share - diluted
|
|
(0.59)
|
|
0.32
|
|
(0.91)
|
|
(284.4)
|
Adjusted Net income
attributable to IGT per ordinary share - diluted
|
|
0.35
|
|
0.42
|
|
(0.07)
|
|
(16.7)
|
Weighted average
shares - diluted
|
|
197,149
|
|
174,964
|
|
22,185
|
|
12.7
|
Adjusted weighted
average shares - diluted
|
|
198,851
|
|
174,964
|
|
23,887
|
|
13.7
|
|
|
|
|
|
|
|
|
|
Reconciliations of
Non-GAAP Financial Measures
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended
|
|
|
June
30,
|
|
Change
|
|
|
2015
|
|
2014
|
|
$
|
|
%
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
115,500
|
|
170,680
|
|
(55,180)
|
|
(32.3)
|
Depreciation
|
|
92,687
|
|
76,414
|
|
16,273
|
|
21.3
|
Amortization
|
|
118,762
|
|
37,337
|
|
81,425
|
|
218.1
|
Transaction expense,
net (1)
|
|
32,344
|
|
3,406
|
|
28,938
|
|
>500.0
|
Service revenue
amortization
|
|
27,035
|
|
32,595
|
|
(5,560)
|
|
(17.1)
|
Non-cash purchase
accounting (excluding D&A)
|
|
19,378
|
|
-
|
|
19,378
|
|
-
|
Restructuring
expense
|
|
15,818
|
|
4,193
|
|
11,625
|
|
277.2
|
Stock
compensation
|
|
5,109
|
|
(3,664)
|
|
8,773
|
|
239.4
|
Impairment
loss
|
|
-
|
|
1,802
|
|
(1,802)
|
|
(100.0)
|
Adjusted
EBITDA
|
|
426,633
|
|
322,763
|
|
103,870
|
|
32.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
115,500
|
|
170,680
|
|
(55,180)
|
|
(32.3)
|
Purchase
accounting
|
|
111,224
|
|
19,913
|
|
91,311
|
|
458.5
|
Transaction expense,
net (1)
|
|
32,344
|
|
3,406
|
|
28,938
|
|
>500.0
|
Restructuring
expense
|
|
15,818
|
|
4,193
|
|
11,625
|
|
277.2
|
Adjusted Operating
income
|
|
274,886
|
|
198,192
|
|
76,694
|
|
38.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to IGT
|
|
(116,890)
|
|
55,174
|
|
(172,064)
|
|
(311.9)
|
Purchase
accounting
|
|
117,681
|
|
19,495
|
|
98,186
|
|
>500.0
|
Foreign exchange
loss
|
|
102,344
|
|
867
|
|
101,477
|
|
>500.0
|
Transaction expense,
net (1)
|
|
32,344
|
|
3,406
|
|
28,938
|
|
>500.0
|
Restructuring
expense
|
|
15,818
|
|
4,193
|
|
11,625
|
|
277.2
|
Income tax
benefit
|
|
(80,843)
|
|
(9,635)
|
|
(71,208)
|
|
>500.0
|
Adjusted Net
income attributable to IGT
|
|
70,454
|
|
73,500
|
|
(3,046)
|
|
(4.1)
|
|
|
|
|
|
|
|
|
|
Weighted average
shares - diluted
|
|
197,149
|
|
174,964
|
|
22,185
|
|
12.7
|
Dilutive
shares
|
|
1,702
|
|
-
|
|
1,702
|
|
-
|
Adjusted weighted
average shares - diluted (2)
|
|
198,851
|
|
174,964
|
|
23,887
|
|
13.7
|
|
|
|
|
|
|
|
|
|
Adjusted Net
income attributable to IGT per ordinary share -
diluted
|
|
0.35
|
|
0.42
|
|
(0.07)
|
|
(16.7)
|
|
|
|
|
|
|
|
|
|
(1) Transaction
expense, net is composed of transaction costs on significant
business combinations and significant gains and losses incurred on
disposals of group entities or businesses. These items are only
incidentally related to our ordinary activities, are not expected
to occur frequently and hinder comparability of our
period-over-period performance. We believe separate identification
allows users of the financial statements to take them into
appropriate consideration when analyzing our
performance.
|
|
|
|
|
|
|
|
|
|
(2) Includes dilutive
shares that are excluded from the diluted earnings per share
computation as the impact would be anti-dilutive due to the loss
incurred during the second quarter of 2015.
|
International Game
Technology PLC and Subsidiaries
|
Operating Metrics
and Reconciliations
|
($ and shares in
thousands, except per share data)
|
|
|
|
|
|
For the six months
ended
|
|
|
June
30,
|
|
Change
|
|
|
2015
|
|
2014
|
|
$
|
|
%
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
2,157,353
|
|
1,982,589
|
|
174,764
|
|
8.8
|
Adjusted
EBITDA
|
|
748,086
|
|
725,765
|
|
22,321
|
|
3.1
|
Operating
income
|
|
278,357
|
|
416,923
|
|
(138,566)
|
|
(33.2)
|
Adjusted Operating
income
|
|
479,894
|
|
466,271
|
|
13,623
|
|
2.9
|
Net income (loss)
attributable to IGT
|
|
(165,063)
|
|
160,613
|
|
(325,676)
|
|
(202.8)
|
Net income (loss)
attributable to IGT per ordinary share - diluted
|
|
(0.89)
|
|
0.92
|
|
(1.81)
|
|
(196.7)
|
Weighted average
shares - diluted
|
|
185,007
|
|
174,713
|
|
10,294
|
|
5.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliations of
Non-GAAP Financial Measures
|
|
|
|
|
|
|
|
|
|
|
|
For the six months
ended
|
|
|
June
30,
|
|
Change
|
|
|
2015
|
|
2014
|
|
$
|
|
%
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
278,357
|
|
416,923
|
|
(138,566)
|
|
(33.2)
|
Depreciation
|
|
164,543
|
|
159,173
|
|
5,370
|
|
3.4
|
Amortization
|
|
152,132
|
|
72,645
|
|
79,487
|
|
109.4
|
Service revenue
amortization
|
|
53,880
|
|
65,169
|
|
(11,289)
|
|
(17.3)
|
Transaction expense,
net (1)
|
|
43,394
|
|
3,406
|
|
39,988
|
|
>500.0
|
Restructuring
expense
|
|
30,299
|
|
8,094
|
|
22,205
|
|
274.3
|
Non-cash purchase
accounting (excluding D&A)
|
|
19,378
|
|
-
|
|
19,378
|
|
-
|
Stock
compensation
|
|
6,103
|
|
(1,447)
|
|
7,550
|
|
>500.0
|
Impairment
loss
|
|
-
|
|
1,802
|
|
(1,802)
|
|
(100.0)
|
Adjusted
EBITDA
|
|
748,086
|
|
725,765
|
|
22,321
|
|
3.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
278,357
|
|
416,923
|
|
(138,566)
|
|
(33.2)
|
Purchase
accounting
|
|
127,844
|
|
37,848
|
|
89,996
|
|
237.8
|
Transaction expense,
net (1)
|
|
43,394
|
|
3,406
|
|
39,988
|
|
>500.0
|
Restructuring
expense
|
|
30,299
|
|
8,094
|
|
22,205
|
|
274.3
|
Adjusted Operating
income
|
|
479,894
|
|
466,271
|
|
13,623
|
|
2.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
217,085
|
|
481,117
|
|
(264,032)
|
|
(54.9)
|
Capital
expenditures
|
|
(167,092)
|
|
(167,188)
|
|
96
|
|
0.1
|
Free Cash
Flow
|
|
49,993
|
|
313,929
|
|
(263,936)
|
|
(84.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Transaction
expense, net is composed of transaction costs on significant
business combinations and significant gains and losses incurred on
disposals of group entities or businesses. These items are only
incidentally related to our ordinary activities, are not expected
to occur frequently and hinder comparability of our
period-over-period performance. We believe separate identification
allows users of the financial statements to take them into
appropriate consideration when analyzing our
performance.
|
International Game
Technology PLC Segment Performance
|
Pro Forma Revenue
Detail
|
($
millions)
|
|
|
|
As
Reported
|
|
Legacy
IGT
|
|
|
|
2014
|
2015
|
|
2014
|
2015
|
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
|
Q1
|
Q2
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
|
Q1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
Gaming & Interactive
|
|
22
|
28
|
37
|
45
|
133
|
30
|
353
|
|
393
|
354
|
383
|
343
|
1,473
|
311
|
Service
Revenue
|
|
8
|
9
|
15
|
13
|
46
|
13
|
237
|
|
263
|
255
|
257
|
261
|
1,036
|
245
|
Product
Sales
|
|
14
|
19
|
22
|
32
|
87
|
17
|
116
|
|
131
|
99
|
126
|
82
|
437
|
66
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NA
Lottery
|
|
261
|
217
|
238
|
224
|
940
|
253
|
270
|
|
20
|
20
|
20
|
20
|
81
|
19
|
Service
Revenue
|
|
238
|
187
|
222
|
217
|
865
|
241
|
253
|
|
20
|
20
|
20
|
20
|
81
|
19
|
Product
Sales
|
|
23
|
29
|
15
|
7
|
75
|
12
|
17
|
|
-
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
|
152
|
148
|
138
|
192
|
631
|
131
|
247
|
|
99
|
93
|
134
|
87
|
413
|
69
|
Service
Revenue
|
|
119
|
114
|
115
|
127
|
474
|
103
|
137
|
|
45
|
42
|
42
|
38
|
167
|
37
|
Product
Sales
|
|
33
|
34
|
24
|
66
|
157
|
28
|
110
|
|
54
|
51
|
92
|
50
|
247
|
33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Italy
|
|
|
601
|
552
|
525
|
510
|
2,188
|
453
|
432
|
|
-
|
-
|
-
|
-
|
-
|
-
|
Service
Revenue
|
|
601
|
551
|
524
|
509
|
2,185
|
452
|
431
|
|
-
|
-
|
-
|
-
|
-
|
-
|
Product
Sales
|
|
1
|
1
|
1
|
1
|
3
|
1
|
1
|
|
-
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase
Accounting
|
|
-
|
-
|
-
|
-
|
-
|
-
|
-12
|
|
-
|
-
|
-
|
-
|
-
|
-
|
Service
Revenue
|
|
-
|
-
|
-
|
-
|
-
|
-
|
-8
|
|
-
|
-
|
-
|
-
|
-
|
-
|
Product
Sales
|
|
-
|
-
|
-
|
-
|
-
|
-
|
-4
|
|
-
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
Total
|
|
1,037
|
945
|
938
|
972
|
3,892
|
867
|
1,290
|
|
513
|
468
|
537
|
451
|
1,968
|
399
|
Service
Revenue
|
|
966
|
861
|
876
|
866
|
3,569
|
809
|
1,050
|
|
328
|
317
|
319
|
319
|
1,284
|
301
|
Product
Sales
|
|
71
|
84
|
62
|
106
|
322
|
58
|
240
|
|
185
|
150
|
217
|
131
|
684
|
99
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro
Forma
|
|
YtY
Variance
|
|
|
|
|
|
2014
|
2015
|
|
Actual
FX
|
Constant
FX
|
|
|
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
|
Q1
|
Q2
|
|
Q2
|
Q2
YTD
|
Q2
|
Q2
YTD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
Gaming & Interactive
|
|
416
|
383
|
420
|
388
|
1,606
|
341
|
353
|
|
-7.7%
|
-13.0%
|
-6.8%
|
-12.1%
|
|
|
Service
Revenue
|
|
271
|
264
|
272
|
275
|
1,082
|
257
|
237
|
|
-10.3%
|
-7.6%
|
-10.0%
|
-7.3%
|
|
|
Product
Sales
|
|
145
|
118
|
148
|
113
|
524
|
83
|
116
|
|
-2.0%
|
-24.2%
|
0.3%
|
-22.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
Lottery
|
|
282
|
237
|
258
|
245
|
1,021
|
273
|
270
|
|
14.0%
|
4.7%
|
14.6%
|
5.2%
|
|
|
Service
Revenue
|
|
259
|
208
|
242
|
237
|
946
|
261
|
253
|
|
22.0%
|
10.3%
|
22.6%
|
10.7%
|
|
|
Product
Sales
|
|
23
|
29
|
15
|
7
|
75
|
12
|
17
|
|
-42.5%
|
-45.1%
|
-41.3%
|
-43.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
|
251
|
241
|
272
|
279
|
1,044
|
200
|
247
|
|
2.5%
|
-9.2%
|
17.1%
|
3.3%
|
|
|
Service
Revenue
|
|
164
|
155
|
157
|
164
|
640
|
140
|
137
|
|
-12.2%
|
-13.5%
|
0.6%
|
-1.3%
|
|
|
Product
Sales
|
|
88
|
85
|
115
|
115
|
404
|
61
|
110
|
|
29.2%
|
-1.1%
|
47.2%
|
11.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Italy
|
|
|
601
|
552
|
525
|
510
|
2,188
|
453
|
432
|
|
-21.8%
|
-23.3%
|
-3.7%
|
-5.4%
|
|
|
Service
Revenue
|
|
601
|
551
|
524
|
509
|
2,185
|
452
|
431
|
|
-21.8%
|
-23.3%
|
-3.7%
|
-5.4%
|
|
|
Product
Sales
|
|
1
|
1
|
1
|
1
|
3
|
1
|
1
|
|
-33.3%
|
-24.8%
|
-19.9%
|
-9.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase
Accounting
|
|
-
|
-
|
-
|
-
|
-
|
-
|
(12)
|
|
-
|
-
|
-
|
-
|
|
|
Service
Revenue
|
|
-
|
-
|
-
|
-
|
-
|
-
|
(8)
|
|
-
|
-
|
-
|
-
|
|
|
Product
Sales
|
|
-
|
-
|
-
|
-
|
-
|
-
|
(4)
|
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
Total
|
|
1,550
|
1,413
|
1,474
|
1,422
|
5,860
|
1,267
|
1,290
|
|
-8.7%
|
-13.7%
|
1.2%
|
-4.3%
|
|
|
Service
Revenue
|
|
1,294
|
1,179
|
1,195
|
1,185
|
4,853
|
1,110
|
1,050
|
|
-10.9%
|
-12.6%
|
-0.6%
|
-2.6%
|
|
|
Product
Sales
|
|
256
|
234
|
279
|
237
|
1,006
|
157
|
240
|
|
2.4%
|
-19.1%
|
10.3%
|
-13.2%
|
|
|
International Game
Technology PLC and Subsidiaries
|
Consolidated Pro
Forma Income Statements & Reconciliations
|
($
millions)
|
|
|
As
Reported
|
|
Legacy
IGT
|
|
Pro
Forma
|
|
|
2014
|
2015
|
|
2014
|
2015
|
|
2014
|
2015
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
|
Q1
|
Q2
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
|
Q1
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
|
Q1
|
Q2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
revenue
|
966
|
862
|
876
|
866
|
3,570
|
809
|
1,050
|
|
328
|
317
|
319
|
319
|
1,284
|
301
|
|
1,294
|
1,179
|
1,195
|
1,186
|
4,853
|
1,110
|
1,050
|
Product
sales
|
71
|
84
|
62
|
106
|
322
|
58
|
240
|
|
185
|
150
|
218
|
131
|
684
|
99
|
|
256
|
234
|
279
|
237
|
1,006
|
157
|
240
|
Total
revenue
|
1,037
|
945
|
938
|
972
|
3,892
|
867
|
1,290
|
|
513
|
468
|
537
|
451
|
1,968
|
399
|
|
1,550
|
1,413
|
1,474
|
1,422
|
5,860
|
1,267
|
1,290
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services
|
617
|
590
|
581
|
617
|
2,405
|
526
|
633
|
|
126
|
117
|
117
|
122
|
482
|
116
|
|
743
|
707
|
698
|
738
|
2,887
|
642
|
633
|
Cost of
sales
|
42
|
52
|
38
|
59
|
190
|
35
|
177
|
|
92
|
66
|
93
|
71
|
322
|
63
|
|
134
|
118
|
131
|
130
|
512
|
99
|
177
|
Selling, general and
administrative
|
102
|
99
|
105
|
110
|
416
|
95
|
233
|
|
137
|
113
|
122
|
115
|
488
|
138
|
|
238
|
213
|
228
|
225
|
903
|
233
|
233
|
Research and
development
|
26
|
25
|
30
|
27
|
108
|
22
|
84
|
|
64
|
59
|
57
|
64
|
245
|
64
|
|
90
|
84
|
87
|
91
|
352
|
86
|
84
|
Restructuring
expense
|
4
|
4
|
5
|
10
|
23
|
14
|
16
|
|
-
|
-
|
-
|
-
|
-
|
-
|
|
4
|
4
|
5
|
10
|
23
|
14
|
16
|
Impairment
loss
|
-
|
2
|
-
|
1
|
3
|
-
|
-
|
|
22
|
2
|
15
|
1
|
40
|
7
|
|
22
|
4
|
15
|
2
|
43
|
7
|
-
|
Unusual
expense
|
-
|
3
|
-5
|
37
|
35
|
11
|
32
|
|
-
|
-
|
10
|
14
|
24
|
19
|
|
-
|
3
|
5
|
51
|
59
|
30
|
32
|
|
|
791
|
775
|
754
|
860
|
3,180
|
704
|
1,175
|
|
441
|
358
|
414
|
387
|
1,600
|
406
|
|
1,232
|
1,133
|
1,168
|
1,247
|
4,780
|
1,111
|
1,175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
246
|
171
|
184
|
112
|
712
|
163
|
116
|
|
72
|
110
|
123
|
63
|
368
|
-7
|
|
318
|
280
|
306
|
175
|
1,080
|
156
|
116
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliations
of Non-US GAAP Financial Measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
|
Legacy
IGT
|
|
Pro
Forma
|
|
|
2014
|
2015
|
|
2014
|
2015
|
|
2014
|
2015
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
|
Q1
|
Q2
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
|
Q1
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
|
Q1
|
Q2
|
Operating
income
|
246
|
171
|
184
|
112
|
712
|
163
|
116
|
|
72
|
110
|
123
|
63
|
368
|
-7
|
|
318
|
280
|
306
|
175
|
1,080
|
156
|
116
|
Purchase
Accounting
|
18
|
20
|
20
|
20
|
78
|
17
|
111
|
|
2
|
3
|
8
|
5
|
18
|
5
|
|
20
|
22
|
28
|
25
|
96
|
22
|
111
|
Transaction Expense,
net
|
-
|
3
|
-5
|
37
|
35
|
11
|
32
|
|
-
|
-
|
10
|
14
|
24
|
19
|
|
-
|
3
|
5
|
51
|
59
|
30
|
32
|
Restructuring
|
4
|
4
|
5
|
10
|
23
|
14
|
16
|
|
-
|
-
|
-
|
-
|
-
|
-
|
|
4
|
4
|
5
|
10
|
23
|
14
|
16
|
Adjusted Operating
Income
|
268
|
198
|
204
|
179
|
849
|
205
|
275
|
|
74
|
112
|
141
|
82
|
410
|
17
|
|
343
|
310
|
345
|
261
|
1,259
|
222
|
275
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
246
|
171
|
184
|
112
|
712
|
163
|
116
|
|
72
|
110
|
123
|
63
|
368
|
-7
|
|
318
|
280
|
306
|
175
|
1,080
|
156
|
116
|
Depreciation
|
83
|
76
|
84
|
80
|
324
|
72
|
93
|
|
34
|
32
|
30
|
28
|
123
|
28
|
|
116
|
108
|
114
|
108
|
447
|
99
|
93
|
Amortization
|
35
|
37
|
37
|
39
|
149
|
33
|
119
|
|
14
|
14
|
14
|
10
|
51
|
10
|
|
49
|
51
|
51
|
49
|
200
|
43
|
119
|
Transaction Expense,
net
|
-
|
3
|
-5
|
37
|
35
|
11
|
32
|
|
-
|
-
|
10
|
14
|
24
|
19
|
|
-
|
3
|
5
|
51
|
59
|
30
|
32
|
Other Svc Revenue
Amort
|
33
|
33
|
31
|
30
|
126
|
27
|
27
|
|
-
|
-
|
-
|
-
|
-
|
-
|
|
33
|
33
|
31
|
30
|
126
|
27
|
27
|
Non-cash purchase
price
|
-
|
-
|
-
|
-
|
-
|
-
|
19
|
|
-
|
-
|
-
|
-
|
-
|
-
|
|
-
|
-
|
-
|
-
|
-
|
-
|
19
|
Restructuring
costs
|
4
|
4
|
5
|
10
|
23
|
14
|
16
|
|
-
|
-
|
-
|
-
|
-
|
-
|
|
4
|
4
|
5
|
10
|
23
|
14
|
16
|
Stock
compensation
|
2
|
-4
|
6
|
12
|
16
|
1
|
5
|
|
8
|
7
|
9
|
9
|
32
|
6
|
|
10
|
3
|
15
|
21
|
48
|
7
|
5
|
Impairment
loss
|
-
|
2
|
-
|
1
|
3
|
-
|
-
|
|
22
|
2
|
15
|
1
|
40
|
7
|
|
22
|
4
|
15
|
2
|
43
|
7
|
-
|
Adjusted
EBITDA
|
403
|
323
|
342
|
321
|
1,389
|
321
|
427
|
|
148
|
164
|
200
|
125
|
638
|
62
|
|
551
|
487
|
542
|
446
|
2,027
|
383
|
427
|
Key Performance
Indicators (KPIs)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Key
Performance Indicators (KPIs)
|
|
|
|
|
|
|
|
|
|
Second
Quarter
|
|
Six
Months
|
Periods Ended June
30
|
2015
|
2014
|
%
change
|
|
2015
|
2014
|
%
change
|
|
|
|
|
|
|
|
|
|
|
|
Installed base
(end of period)
|
|
|
|
|
|
|
|
Casino
|
|
35,332
|
41,437
|
-14.7%
|
|
35,332
|
41,437
|
-14.7%
|
VLT -
Government Sponsored (ex-Italy)
|
16,515
|
16,733
|
-1.3%
|
|
16,515
|
16,733
|
-1.3%
|
VLT -
Italy Supplier (B2B)
|
8,465
|
8,202
|
3.2%
|
|
8,465
|
8,202
|
3.2%
|
Total
installed base
|
60,312
|
66,372
|
-9.1%
|
|
60,312
|
66,372
|
-9.1%
|
Yield
(average revenue per unit per day - $0.00)
|
34.52
|
34.51
|
0.0%
|
|
34.17
|
35.17
|
-2.8%
|
|
|
|
|
|
|
|
|
|
|
|
Additional Italian Network Details:
|
|
|
|
|
|
|
|
VLT -
Operator (B2C)
|
10,988
|
10,894
|
0.9%
|
|
10,988
|
10,894
|
0.9%
|
AWP
|
|
62,156
|
69,726
|
-10.9%
|
|
62,156
|
69,726
|
-10.9%
|
|
|
|
|
|
|
|
|
|
|
|
Machine units
shipped
|
|
|
|
|
|
|
|
New/Expansion
|
2,187
|
2,494
|
-12.3%
|
|
2,782
|
5,859
|
-52.5%
|
Replacement
|
7,960
|
6,907
|
15.2%
|
|
14,193
|
13,381
|
6.1%
|
Total
machines shipped
|
10,147
|
9,401
|
7.9%
|
|
16,975
|
19,240
|
-11.8%
|
|
|
|
|
|
|
|
|
|
|
|
Global lottery
same-store revenue growth
|
|
|
|
|
|
|
|
Instants
& draw games
|
|
|
8.0%
|
|
|
|
6.5%
|
Multistate Jackpots
|
|
|
-2.5%
|
|
|
|
3.4%
|
Total
lottery same-store revenue growth (ex-Italy)
|
|
|
6.9%
|
|
|
|
6.1%
|
Italy
lottery revenue growth
|
|
|
3.6%
|
|
|
|
4.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
KPIs
|
|
|
|
|
|
|
|
|
|
|
|
|
Second
Quarter
|
|
Six
Months
|
Periods Ended June
30
|
2015
|
2014
|
%
change
|
|
2015
|
2014
|
%
change
|
|
|
|
|
|
|
|
|
|
|
|
Installed base
(end of period)
|
41,781
|
45,673
|
-8.5%
|
|
41,781
|
45,673
|
-8.5%
|
|
|
|
|
|
|
|
|
|
|
|
Machine units
shipped
|
|
|
|
|
|
|
|
New/Expansion
|
974
|
2,047
|
-52.4%
|
|
1,303
|
4,713
|
-72.4%
|
Replacement
|
5,244
|
3,169
|
65.5%
|
|
10,156
|
7,558
|
34.4%
|
Total
machines shipped
|
6,218
|
5,216
|
19.2%
|
|
11,459
|
12,271
|
-6.6%
|
|
|
|
|
|
|
|
|
|
|
|
DoubleDown
|
|
|
|
|
|
|
|
Revenue
($ Thousands)
|
73,010
|
71,751
|
1.8%
|
|
153,653
|
140,576
|
9.3%
|
Mobile
penetration
|
47%
|
34%
|
38.8%
|
|
44%
|
33%
|
33.4%
|
DAU
(Daily Active Users)1
|
1,839
|
1,833
|
0.4%
|
|
1,884
|
1,804
|
4.4%
|
MAU
(Monthy Active Users)1
|
4,421
|
5,975
|
-26.0%
|
|
4,578
|
6,096
|
-24.9%
|
Bookings
per DAU ($0.00)1
|
$ 0.45
|
$ 0.43
|
5.1%
|
|
$ 0.46
|
$ 0.43
|
7.0%
|
|
|
|
|
|
|
|
|
|
|
|
Lottery same-store
revenue growth
|
|
|
|
|
|
|
|
Instants
& draw games
|
|
|
7.6%
|
|
|
|
6.9%
|
Multistate Jackpots
|
|
|
|
-2.6%
|
|
|
|
3.8%
|
Total
lottery same-store revenue growth
|
|
|
6.4%
|
|
|
|
6.5%
|
|
|
|
|
|
|
|
|
|
|
|
1As a
single application with multiple games, active users equal unique
users
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
KPIs
|
|
|
|
|
|
|
|
|
|
|
|
|
Second
Quarter
|
|
Six
Months
|
Periods Ended June
30
|
2015
|
2014
|
%
change
|
|
2015
|
2014
|
%
change
|
|
|
|
|
|
|
|
|
|
|
|
Installed base
(end of period)
|
10,066
|
12,497
|
-19.5%
|
|
10,066
|
12,497
|
-19.5%
|
|
|
|
|
|
|
|
|
|
|
|
Machine units
shipped
|
|
|
|
|
|
|
|
New/Expansion
|
1,213
|
447
|
171.4%
|
|
1,479
|
1,146
|
29.1%
|
Replacement
|
2,716
|
3,738
|
-27.3%
|
|
4,037
|
5,823
|
-30.7%
|
Total
machines shipped
|
3,929
|
4,185
|
-6.1%
|
|
5,516
|
6,969
|
-20.8%
|
|
|
|
|
|
|
|
|
|
|
|
Lottery same-store
revenue growth
|
|
|
|
|
|
|
|
Instants
& draw games
|
|
|
9.0%
|
|
|
|
5.3%
|
Multistate Jackpots
|
|
|
-2.0%
|
|
|
|
1.4%
|
Total
lottery same-store revenue growth
|
|
|
8.1%
|
|
|
|
5.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Italy
KPIs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second
Quarter
|
|
Six
Months
|
Periods Ended June
30
|
2015
|
2014
|
%
change
|
|
2015
|
2014
|
%
change
|
(In € millions,
except machines)
|
|
|
|
|
|
|
|
Lottery
|
|
|
|
|
|
|
|
|
|
Lotto
wagers
|
|
|
1,728
|
1,560
|
10.7%
|
|
3,545
|
3,129
|
13.3%
|
10eLotto
|
|
|
1,056
|
822
|
28.5%
|
|
2,130
|
1,645
|
29.5%
|
Core
|
|
|
566
|
613
|
-7.7%
|
|
1,204
|
1,299
|
-7.3%
|
Late
Numbers
|
|
|
106
|
125
|
-15.5%
|
|
210
|
184
|
14.0%
|
|
|
|
|
|
|
|
|
|
|
|
Scratch & Win
Wagers
|
|
2,215
|
2,315
|
-4.3%
|
|
4,517
|
4,790
|
-5.7%
|
|
|
|
|
|
|
|
|
|
|
|
Italy lottery
revenue growth
|
|
|
3.6%
|
|
|
|
4.2%
|
|
|
|
|
|
|
|
|
|
|
|
Gaming
|
|
|
|
|
|
|
|
|
|
|
Installed base
(end of period)
|
|
|
|
|
|
|
|
VLT -
Operator (B2C)
|
10,988
|
10,894
|
0.9%
|
|
10,988
|
10,894
|
0.9%
|
VLT -
Supplier (B2B)
|
8,465
|
8,202
|
3.2%
|
|
8,465
|
8,202
|
3.2%
|
AWP
|
|
|
62,156
|
69,726
|
-10.9%
|
|
62,156
|
69,726
|
-10.9%
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
Interactive Wagers (Gaming)
|
414
|
444
|
-6.7%
|
|
880
|
917
|
-4.0%
|
Sports
Betting Wagers1
|
205
|
218
|
-6.2%
|
|
461
|
470
|
-1.8%
|
Sports
Betting Payout (%)1
|
82.9%
|
82.4%
|
0.5
pp
|
|
83.9%
|
78.4%
|
5.5
pp
|
|
|
|
|
|
|
|
|
|
|
|
1Includes Virtual Wagers and Pools
& Horses
|
Logo - http://photos.prnewswire.com/prnh/20150406/196736LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/international-game-technology-plc-reports-second-quarter-2015-results-300126719.html
SOURCE International Game Technology PLC