LONDON, Nov. 12, 2015
/PRNewswire/ -- International Game Technology PLC ("IGT")
(NYSE: IGT) today reported financial results for the third quarter
and nine months ended September 30,
2015.
"We are pleased to report third quarter profitability in line
with our expectations in this year of transformation," said
Marco Sala, CEO of IGT. "In
our global lottery operations, we delivered another resilient set
of results and we are encouraged by our new game performance. As
expected, product sales moderated from the second quarter's high
level. We are focused on driving growth through innovation. Our
recent showcases at the leading gaming and lottery trade shows
demonstrated that commitment and the power of combining our
compelling content and leading-edge technology to cement our
industry leadership."
"Our third quarter results reflect the diversity of our business
and disciplined operational management," said Alberto Fornaro, CFO of IGT. "Our synergy
plans remain on track, free cash flow generation was strong, net
debt was reduced, and our financial condition remains solid. We
planned our first year as a combined company prudently; based on
our year-to-date results and current top-line visibility, we are
confident in reaching the top half of our 2015 adjusted EBITDA
outlook."
Summary of
Consolidated Third Quarter Financial Results
|
|
Reported
|
Pro
forma
|
|
|
|
|
|
|
|
Constant
|
Quarter Ended
September 30,
|
2015
|
2014
|
Change
|
2015
|
2014
|
Change
|
Currency
|
|
|
|
(%)
|
|
|
(%)
|
Change
(%)
|
(In US $ millions,
unless otherwise noted)
|
|
|
|
|
|
|
|
Revenue
|
1,215
|
938
|
30%
|
1,215
|
1,474
|
-18%
|
-10%
|
Adjusted
EBITDA
|
414
|
342
|
21%
|
414
|
541
|
-23%
|
-17%
|
Adjusted Operating
Income
|
258
|
204
|
26%
|
258
|
348
|
-26%
|
-19%
|
Operating
Income
|
130
|
184
|
-29%
|
130
|
306
|
-58%
|
-50%
|
Net income per
diluted share
|
0.04
|
0.44
|
NM
|
0.04
|
NA
|
|
|
Adjusted net income
per diluted share
|
0.41
|
0.54
|
NM
|
0.41
|
NA
|
|
|
Net debt
|
8,196
|
2,948
|
NM
|
8,196
|
NA
|
|
|
Note: Pro forma is defined as the combined results of
GTECH and legacy IGT for period prior to the second quarter of
2015. 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 combination of GTECH S.p.A. ("GTECH") and
International Game Technology ("legacy IGT"), which was completed
on April 7, 2015, a number of items
affect the comparability of reported results. Reported
financial information for the third quarter of 2015 includes the
results of operations of IGT for the entire period, while reported
financial information for the third quarter of 2014 includes only
GTECH operations. Reported financial information for the first nine
months of 2015 includes IGT for the second and third quarters and
only GTECH operations in the first quarter, while the reported nine
month 2014 figures are for GTECH only. Pro forma figures represent
the combined results of both companies in 2014 and in the first
nine months of 2015.
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 affected 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
third quarter of 2015 compared to 1.33 in the third quarter of
2014. Constant currency changes for 2015 are calculated using the
same foreign exchange rates as the corresponding 2014 period.
The Company has harmonized the methodology used to calculate pro
forma, adjusted EBITDA in the first calendar quarter of 2015 by
adding back certain legacy IGT items that had not been previously
included. This has resulted in a $30
million increase to pro forma, adjusted EBITDA in the first
quarter of 2015, which is also included in the Company's revised,
full year 2015 outlook.
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.
Overview of Consolidated Third Quarter Results
Reported consolidated revenue grew 30% to $1.22 billion from $938
million in the third quarter of 2014, reflecting GTECH's
acquisition of legacy IGT. On a pro forma, constant currency basis,
consolidated revenue declined 10%. Resilience in global lottery
operations was more than offset by an expected decrease in
gaming product sales, largely due to significant Oregon VLT and
casino conversion sales in the third quarter of 2014, in addition
to the variability in the timing of new casino openings. During the
quarter, the Company sold 6,622 gaming machines worldwide and
global lottery same-store revenue, excluding Italy, increased 6%.
On a reported basis, adjusted EBITDA of $414 million was 21% above the third quarter of
2014. On a pro forma, constant currency basis, adjusted
EBITDA was 17% below the prior-year period, primarily due to sales
dynamics in the quarter, which were partially offset by lower
operating expenses.
Reported operating income was $130
million compared to $184
million in the third quarter of 2014. On a pro forma,
constant currency basis, adjusted operating income was 19% below
the year-earlier period, as higher lottery profits were more than
offset by lower gaming profits.
Interest expense was $122 million
compared to $75 million in the
prior-year period due to increased debt incurred to finance the
legacy IGT acquisition.
Net income attributable to IGT was $7
million in the third quarter of 2015. On an adjusted basis,
net income was $82 million. The
Company reported net income per diluted share of $0.04 and earned $0.41 per diluted share on an adjusted basis.
Cash from operations was $471
million in the first nine months of the year, inclusive of
higher interest costs and approximately $150
million in one-time, transaction-related costs. Capital
expenditures were $289 million in the
year-to-date period.
Cash and cash equivalents were $552
million as of September 30,
2015, compared to $573 million
as of September 30, 2014.
At September 30, 2015,
consolidated shareholders' equity totaled $3.52 billion and net debt was $8.20 billion.
Operating Segment Review
North America Gaming &
Interactive
Revenue for the North America
Gaming & Interactive segment was $341
million compared to $37
million in the third quarter of 2014. On a pro forma basis,
North America Gaming & Interactive revenue was 19% below the
prior year as relative stability in recurring service revenues was
more than offset by an expected contraction in product sales on
difficult comparisons with large VLT sales and intellectual
property revenue in the third quarter of 2014.
Service revenue was $267 million
compared to $15 million in the
prior-year period. On a pro forma basis, service revenue declined
2% as a result of a lower installed base that was mostly
compensated for by improved wide area progressive yields, 6% growth
at DoubleDown, and favorable mix. Product sales were $73 million compared to $22 million in the third quarter of 2014. On a
pro forma basis, product sales were 50% below the prior year, as
anticipated. The Company sold 3,326 machines compared to 6,541
units in the third quarter of 2014, which included 1,864 Oregon VLT
units and shipments related to stronger new casino openings.
Year-to-date, total replacement unit sales were up 4% while new and
expansion units were down, reflecting the cadence of new casino
openings and VLT programs. Product sales were also affected by an
expected decrease in intellectual property licensing
revenue.
Operating income for North America Gaming & Interactive was
$85 million compared to $2 million in the third quarter of 2014. On a pro
forma basis, North America Gaming & Interactive operating
income declined 42% as a result of lower product sales and overall
revenue mix as well as further investment in research and
development.
North America Lottery
Revenue for the North America
Lottery segment was $253 million in
the quarter, 6% higher than the prior year on a reported basis but
2% lower on a pro forma basis. The Company entered into a revised
termination agreement with the Illinois Lottery during the third
quarter. Excluding the Illinois
termination settlement, pro forma revenue for the North America
Lottery segment rose 2%.
Service revenue increased 9% on a reported basis and was in line
with the prior year on a pro forma basis, reflecting the net impact
of 8% same-store revenue growth and the Illinois termination payment. Strong instant
ticket sales and local draw-based game performance were the primary
drivers of same-store revenue growth during the quarter. New
contracts in Canada and
Colorado also contributed to
service revenue growth. Product sales of $11
million in the quarter were below the third quarter of 2014,
reflecting the natural variability of the business, which included
strong instant ticket printing and vending machine sales in the
prior year period.
Operating income for North America Lottery was $50 million compared to $20 million in the third quarter of 2014. On a
pro forma basis, operating income for North America Lottery rose
66% on strong same-store revenue growth and operational leverage,
and despite the $5 million net impact
of the Illinois settlement, which
also impacted adjusted EBITDA.
International
International revenue was $211 million compared to $138 million in the third quarter of 2014 on a
reported basis. On a pro forma, constant currency basis,
International revenue was 12% below the prior year, the net result
of stable lottery performance and lower gaming product sales due to
challenging comparisons with large conversion and systems sales in
the prior-year period.
International lottery same-store revenue was up approximately 2%
on continued, broad-based strength in instant tickets and sustained
jackpot growth in Eastern Europe
that was partially offset by weaker trends in Latin America. Lottery product sales were in
line with the prior-year period on a pro forma, constant currency
basis.
International gaming service revenue was modestly below the
third quarter of 2014 on a pro forma, constant currency basis due
to a contraction in the installed base, principally as a result of
the conversion of leased units in Mexico over the last year. The Company sold a
total of 3,296 gaming machines internationally during the third
quarter. Revenue from gaming product sales was below the prior
year, partly due to large conversion and systems sales in the
comparable 2014 period.
International operating income was $37
million, 28% greater than the third quarter of 2014. On a
pro forma basis, International operating income was down, primarily
reflecting lower gaming product sales.
Italy
Revenue in the
Italy segment was $414 million compared to $525 million the third quarter of 2014, primarily
due to the weakening of the euro against the U.S. dollar. Excluding
currency translation, Italian revenue was down 8%, as relative
stability in most core activities was offset by the anticipated
impact of gaming machine taxes and a six percentage point increase
in sports betting payout.
Total Lotto wagers in the quarter were €1.68 billion compared to
€1.75 billion last year, as a result of significantly lower late
number activity. 10eLotto performance was especially strong during
the quarter, supported by the continued success of Numero ORO.
Instant-ticket wagers were €2.11 billion versus €2.18 billion last
year, an improvement in the year-to-date trend related to several
new product introductions.
Machine gaming revenue declined in constant currency due to
higher taxes associated with the 2015 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 and mix continue to offset lower AWP units.
Operating income for Italy was
$131 million compared to $192 million in the third quarter of 2014,
primarily due to unfavorable currency impacts and a gain on the
sale of the Company's Italian sports and events ticketing business
in the prior-year period. On a constant perimeter and currency
basis, Italian operating income was affected by the higher sports
betting payout and Stability Law.
Outlook
Including the $30 million
reclassification of certain legacy IGT items in the first quarter
of 2015, the Company is updating its outlook for pro forma,
adjusted EBITDA in 2015 to $1.605-$1.705
billion from the prior range of $1.575-$1.675 billion.
Capital expenditures for the year are now estimated at
$400-$450 million compared to a prior
expectation of $450-$500 million.
This does not include any upfront capital related to the Italian
Lotto concession renewal, which will not be required this
year.
Conference Call and Webcast
Today, at 8:00 a.m. EST /
1:00 p.m. GMT / 2:00 p.m. CET, management will host a conference
call to present the third quarter 2015 results. Listeners may
access a live webcast of the conference call along with
accompanying slides under "News, Events and Presentations" on IGT's
Investor Relations website at www.IGT.com. 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 1905 for
participants in the United Kingdom
and +1-718-354-1152 for listeners outside the United Kingdom. The conference ID/confirmation
code is 2592426. 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 2592426.
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 approximately 13,000 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 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 the
forward-looking 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
International Game Technology and GTECH S.p.A. 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; risk that the Company will be unable to pay
future dividends to shareholders or that the amount of such
dividends may be less than anticipated; 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 and legal proceedings; 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 IGT's business, including those described in IGT's annual
report on Form 20-F for the financial year ended December 31, 2014 and other documents filed from
time to time with the Securities and Exchange Commission (the
"SEC"), which are available on the SEC website at www.sec.gov and
on the investor relations section of IGT's website at www.IGT.com.
Except as required under applicable law, IGT does not assume any
obligation to update the 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, (401) 392-7452
James Hurley, Investor Relations,
(401) 392-7190
Simone Cantagallo, (+39) 06
51899030; for Italian media inquiries
International Game
Technology PLC and Subsidiaries
|
|
|
|
|
Consolidated
Income Statements
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended
|
|
|
September
30,
|
|
|
2015
|
|
2014
|
($ and shares in
thousands, except per share data)
|
|
Unaudited
|
Service
revenue
|
|
1,057,449
|
|
876,074
|
Product
sales
|
|
157,864
|
|
61,843
|
Total
revenue
|
|
1,215,313
|
|
937,917
|
|
|
|
|
|
Cost of
services
|
|
633,371
|
|
580,845
|
Cost of
sales
|
|
127,980
|
|
38,285
|
Selling, general and
administrative
|
|
224,487
|
|
105,270
|
Research and
development
|
|
85,864
|
|
29,686
|
Restructuring
expense
|
|
11,271
|
|
5,246
|
Transaction expense
(income), net
|
|
2,301
|
|
(5,265)
|
|
|
1,085,274
|
|
754,067
|
|
|
|
|
|
Operating
income
|
|
130,039
|
|
183,850
|
|
|
|
|
|
Interest
income
|
|
4,797
|
|
847
|
Equity income,
net
|
|
192
|
|
363
|
Other
income
|
|
1,326
|
|
3,208
|
Other
expense
|
|
(2,025)
|
|
(2,475)
|
Foreign exchange gain
(loss), net
|
|
9,847
|
|
(2,942)
|
Interest
expense
|
|
(121,844)
|
|
(75,345)
|
|
|
(107,707)
|
|
(76,344)
|
|
|
|
|
|
Income before
income tax expense
|
|
22,332
|
|
107,506
|
|
|
|
|
|
Income tax
expense
|
|
13,366
|
|
33,573
|
|
|
|
|
|
Net
income
|
|
8,966
|
|
73,933
|
|
|
|
|
|
Less: Net income
(loss) attributable to non-controlling interests
|
|
1,833
|
|
(2,231)
|
|
|
|
|
|
Net income
attributable to IGT
|
|
7,133
|
|
76,164
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to IGT per ordinary share - basic
|
|
0.04
|
|
0.44
|
Net income
attributable to IGT per ordinary share - diluted
|
|
0.04
|
|
0.44
|
|
|
|
|
|
Weighted-average
shares - basic
|
|
199,480
|
|
173,560
|
Weighted-average
shares - diluted
|
|
200,825
|
|
174,307
|
International Game
Technology PLC and Subsidiaries
|
|
|
|
|
Consolidated
Income Statements
|
|
|
|
|
|
|
|
|
|
|
|
For the nine
months ended
|
|
|
September
30,
|
|
|
2015
|
|
2014
|
($ and shares in
thousands, except per share data)
|
|
Unaudited
|
Service
revenue
|
|
2,917,231
|
|
2,703,722
|
Product
sales
|
|
455,435
|
|
216,784
|
Total
revenue
|
|
3,372,666
|
|
2,920,506
|
|
|
|
|
|
Cost of
services
|
|
1,791,581
|
|
1,787,568
|
Cost of
sales
|
|
340,322
|
|
131,869
|
Selling, general and
administrative
|
|
552,253
|
|
305,748
|
Research and
development
|
|
192,849
|
|
81,087
|
Restructuring
expense
|
|
41,570
|
|
13,518
|
Impairment
loss
|
|
-
|
|
1,802
|
Transaction expense
(income), net
|
|
45,695
|
|
(1,859)
|
|
|
2,964,270
|
|
2,319,733
|
|
|
|
|
|
Operating
income
|
|
408,396
|
|
600,773
|
|
|
|
|
|
Interest
income
|
|
12,916
|
|
3,105
|
Equity income (loss),
net
|
|
207
|
|
(2,421)
|
Other
income
|
|
4,280
|
|
4,398
|
Other
expense
|
|
(140,540)
|
|
(9,053)
|
Foreign exchange
loss, net
|
|
(85,493)
|
|
(5,383)
|
Interest
expense
|
|
(333,762)
|
|
(186,925)
|
|
|
(542,392)
|
|
(196,279)
|
|
|
|
|
|
Income (loss)
before income tax expense
|
|
(133,996)
|
|
404,494
|
|
|
|
|
|
Income tax
expense
|
|
13,820
|
|
154,554
|
|
|
|
|
|
Net income
(loss)
|
|
(147,816)
|
|
249,940
|
|
|
|
|
|
Less: Net income
attributable to non-controlling interests
|
|
10,114
|
|
13,163
|
|
|
|
|
|
Net income (loss)
attributable to IGT
|
|
(157,930)
|
|
236,777
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to IGT per ordinary share -basic
|
|
(0.83)
|
|
1.36
|
Net income (loss)
attributable to IGT per ordinary share - diluted
|
(0.83)
|
|
1.36
|
|
|
|
|
|
Weighted-average
shares - basic
|
|
189,884
|
|
174,024
|
Weighted-average
shares - diluted
|
|
189,884
|
|
174,647
|
|
|
|
|
|
International Game
Technology PLC and Subsidiaries
|
|
|
|
Condensed
Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
2015
|
|
2014
|
($
thousands)
|
Unaudited
|
ASSETS
|
|
|
|
Cash and cash
equivalents
|
551,915
|
|
317,106
|
Restricted
cash
|
159,891
|
|
108,115
|
Trade and other
receivables
|
929,939
|
|
919,606
|
Inventories
|
307,460
|
|
184,593
|
Other current
assets
|
408,915
|
|
223,703
|
Income taxes
receivable
|
87,615
|
|
6,628
|
Deferred income
taxes
|
158,438
|
|
49,877
|
Total current
assets
|
2,604,173
|
|
1,809,628
|
|
|
|
|
Systems, equipment
and other assets related to contracts, net
|
1,162,208
|
|
1,086,426
|
Property, plant and
equipment, net
|
311,161
|
|
123,571
|
Goodwill
|
7,043,671
|
|
4,143,064
|
Intangible and other
assets, net
|
4,611,117
|
|
1,500,836
|
Deferred income
taxes
|
86,045
|
|
14,581
|
Total non-current
assets
|
13,214,202
|
|
6,868,478
|
|
|
|
|
TOTAL
ASSETS
|
15,818,375
|
|
8,678,106
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
LIABILITIES
|
|
|
|
Accounts
payable
|
972,768
|
|
1,241,042
|
Other current
liabilities
|
845,211
|
|
862,357
|
Current portion of
long-term debt
|
165
|
|
849,600
|
Short-term
borrowings
|
111
|
|
10,800
|
Income taxes
payable
|
99,192
|
|
20,892
|
Total current
liabilities
|
1,917,447
|
|
2,984,691
|
|
|
|
|
Long-term debt, less
current portion
|
8,747,737
|
|
2,099,071
|
Deferred income
taxes
|
1,175,609
|
|
252,493
|
Other non-current
liabilities
|
457,923
|
|
200,417
|
Total non-current
liabilities
|
10,381,269
|
|
2,551,981
|
|
|
|
|
TOTAL
LIABILITIES
|
12,298,716
|
|
5,536,672
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES
|
-
|
|
-
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
3,519,659
|
|
3,141,434
|
|
|
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
15,818,375
|
|
8,678,106
|
|
|
|
|
International Game
Technology PLC and Subsidiaries
|
|
|
|
Consolidated
Statements of Cash Flows
|
|
|
|
|
|
|
|
|
For the nine
months ended
|
|
September
30,
|
|
2015
|
|
2014
|
($
thousands)
|
Unaudited
|
Cash flows from
operating activities
|
|
|
|
Net income
(loss)
|
(147,816)
|
|
249,940
|
Adjustments
for:
|
|
|
|
Amortization
|
286,264
|
|
109,950
|
Depreciation
|
259,676
|
|
243,283
|
Non-cash foreign
exchange loss, net
|
88,308
|
|
5,760
|
Service revenue
amortization
|
81,178
|
|
96,332
|
Make-whole paid in
connection with the early extinguishment of debt
|
73,806
|
|
-
|
Write-off of bridge
facility costs
|
50,892
|
|
-
|
Stock
compensation
|
32,732
|
|
4,492
|
Debt issuance cost
amortization
|
30,708
|
|
24,891
|
Other non-cash
items
|
7,544
|
|
10,984
|
Provisions
|
5,733
|
|
(1,108)
|
Impairment
loss
|
-
|
|
1,802
|
Cash foreign exchange
gain, net
|
(2,815)
|
|
(377)
|
Cash flows before
changes in operating assets and liabilities
|
766,210
|
|
745,949
|
Changes in operating
assets and liabilities:
|
|
|
|
Inventories
|
(29,275)
|
|
(3,599)
|
Trade and other
receivables
|
122,739
|
|
123,101
|
Accounts
payable
|
(102,170)
|
|
(121,271)
|
Other assets and
liabilities
|
(286,510)
|
|
(39,226)
|
Net cash flows
from operating activities
|
470,994
|
|
704,954
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
Acquisition of IGT,
net of cash acquired
|
(3,241,415)
|
|
-
|
Capital
expenditures
|
(288,743)
|
|
(240,682)
|
Proceeds from sale of
assets
|
23,610
|
|
2,313
|
Jackpot annuity
investments, net
|
25,947
|
|
-
|
Other
|
(127)
|
|
-
|
Net cash flows
used in investing activities
|
(3,480,728)
|
|
(238,369)
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
Proceeds from
issuance of long-term debt
|
6,584,801
|
|
-
|
Proceeds from
interest rate swaps
|
67,773
|
|
-
|
Treasury shares
purchased
|
-
|
|
(44,008)
|
Acquisition of
non-controlling interest
|
-
|
|
(97,015)
|
Dividends paid -
non-controlling interest
|
(28,842)
|
|
(45,190)
|
Payments in
connection with note consents
|
(29,022)
|
|
-
|
Return of capital -
non-controlling interest
|
(30,568)
|
|
(68,189)
|
Payments on bridge
facility
|
(51,409)
|
|
-
|
Payments in
connection with the early extinguishment of debt
|
(79,526)
|
|
-
|
Debt issuance costs
paid
|
(81,100)
|
|
-
|
Dividends
paid
|
(169,438)
|
|
(177,608)
|
Payments to
withdrawing shareholders
|
(407,759)
|
|
-
|
Principal payments on
long-term debt
|
(2,492,354)
|
|
-
|
Other
|
(11,942)
|
|
(12,685)
|
Net cash flows
provided by (used in) financing activities
|
3,270,614
|
|
(444,695)
|
|
|
|
|
Net increase in cash
and cash equivalents
|
260,880
|
|
21,890
|
Effect of exchange
rate changes on cash
|
(26,071)
|
|
(26,566)
|
Cash and cash
equivalents at the beginning of the period
|
317,106
|
|
578,008
|
Cash and cash
equivalents at the end of the period
|
551,915
|
|
573,332
|
|
|
|
|
|
|
|
|
International Game
Technology PLC and Subsidiaries
|
|
|
|
Net
Debt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
($
thousands)
|
2015
|
|
2014
|
Long-term debt,
less current portion
|
|
|
|
Senior
Notes
|
4,866,438
|
|
-
|
Revolving
Facilities
|
1,135,285
|
|
876,505
|
Term Loan
|
892,019
|
|
-
|
Notes due February
2018
|
548,253
|
|
590,557
|
Notes due March
2020
|
534,498
|
|
575,270
|
Notes due June
2019
|
531,961
|
|
-
|
Notes due June
2020
|
126,963
|
|
-
|
Notes due October
2023
|
61,335
|
|
-
|
Capital
Securities
|
50,863
|
|
54,975
|
Other
|
122
|
|
1,764
|
|
8,747,737
|
|
2,099,071
|
|
|
|
|
Current portion of
long-term debt
|
165
|
|
849,600
|
Short-term
borrowings
|
111
|
|
10,800
|
|
|
|
|
Total
debt
|
8,748,013
|
|
2,959,471
|
|
|
|
|
Cash and cash
equivalents
|
551,915
|
|
317,106
|
|
|
|
|
Net
debt
|
8,196,098
|
|
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
|
|
|
September
30,
|
|
Change
|
|
|
2015
|
|
2014
|
|
$
|
|
%
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
1,215,313
|
|
937,917
|
|
277,396
|
|
29.6
|
Adjusted
EBITDA
|
|
413,803
|
|
342,349
|
|
71,454
|
|
20.9
|
Operating
income
|
|
130,039
|
|
183,850
|
|
(53,811)
|
|
(29.3)
|
Adjusted Operating
income
|
|
257,808
|
|
204,285
|
|
53,523
|
|
26.2
|
Net income
attributable to IGT
|
|
7,133
|
|
76,164
|
|
(69,031)
|
|
(90.6)
|
Adjusted Net income
attributable to IGT
|
|
82,477
|
|
93,438
|
|
(10,961)
|
|
(11.7)
|
Net income
attributable to IGT per ordinary share - diluted
|
0.04
|
|
0.44
|
|
(0.40)
|
|
(90.9)
|
Adjusted Net income
attributable to IGT per ordinary share - diluted
|
0.41
|
|
0.54
|
|
(0.13)
|
|
(24.1)
|
Weighted average
shares - diluted
|
|
200,825
|
|
174,307
|
|
26,518
|
|
15.2
|
|
|
|
|
|
|
|
|
|
Reconciliations of
Non-GAAP Financial Measures
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended
|
|
|
September
30,
|
|
Change
|
|
|
2015
|
|
2014
|
|
$
|
|
%
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
130,039
|
|
183,850
|
|
(53,811)
|
|
(29.3)
|
Depreciation
|
|
95,133
|
|
84,111
|
|
11,022
|
|
13.1
|
Amortization
|
|
134,132
|
|
37,305
|
|
96,827
|
|
259.6
|
Transaction expense
(income), net (1)
|
|
2,301
|
|
(5,265)
|
|
7,566
|
|
143.7
|
Service revenue
amortization
|
|
27,298
|
|
31,163
|
|
(3,865)
|
|
(12.4)
|
Non-cash purchase
accounting (excluding D&A)
|
1,867
|
|
-
|
|
1,867
|
|
-
|
Restructuring
expense
|
|
11,271
|
|
5,246
|
|
6,025
|
|
114.8
|
Stock
compensation
|
|
11,762
|
|
5,939
|
|
5,823
|
|
98.0
|
Adjusted
EBITDA
|
|
413,803
|
|
342,349
|
|
71,454
|
|
20.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
130,039
|
|
183,850
|
|
(53,811)
|
|
(29.3)
|
Purchase
accounting
|
|
114,197
|
|
20,454
|
|
93,743
|
|
458.3
|
Transaction expense
(income), net (1)
|
|
2,301
|
|
(5,265)
|
|
7,566
|
|
143.7
|
Restructuring
expense
|
|
11,271
|
|
5,246
|
|
6,025
|
|
114.8
|
Adjusted Operating
income
|
|
257,808
|
|
204,285
|
|
53,523
|
|
26.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to IGT
|
|
7,133
|
|
76,164
|
|
(69,031)
|
|
(90.6)
|
Purchase
accounting
|
|
113,624
|
|
19,798
|
|
93,826
|
|
473.9
|
Foreign exchange loss
(gain)
|
|
(9,847)
|
|
2,942
|
|
(12,789)
|
|
(434.7)
|
Transaction expense
(income), net (1)
|
|
2,301
|
|
(5,265)
|
|
7,566
|
|
143.7
|
Restructuring
expense
|
|
11,271
|
|
5,246
|
|
6,025
|
|
114.8
|
Income tax
benefit
|
|
(42,005)
|
|
(5,447)
|
|
(36,558)
|
|
>500.0
|
Adjusted Net income
attributable to IGT
|
82,477
|
|
93,438
|
|
(10,961)
|
|
(11.7)
|
|
|
|
|
|
|
|
|
|
Adjusted Net
income attributable to IGT per ordinary share -
diluted
|
0.41
|
|
0.54
|
|
(0.13)
|
|
(24.1)
|
|
|
|
|
|
|
|
|
|
(1) Transaction
expense (income), 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 and Subsidiaries
|
|
|
|
|
|
Operating Metrics
and Reconciliations
|
|
|
|
|
|
|
($ and shares in
thousands, except per share data)
|
|
|
|
|
|
|
|
|
For the nine
months ended
|
|
|
September
30,
|
|
Change
|
|
|
2015
|
|
2014
|
|
$
|
|
%
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
3,372,666
|
|
2,920,506
|
|
452,160
|
|
15.5
|
Adjusted
EBITDA
|
|
1,161,889
|
|
1,068,291
|
|
93,598
|
|
8.8
|
Operating
income
|
|
408,396
|
|
600,773
|
|
(192,377)
|
|
(32.0)
|
Adjusted Operating
income
|
|
737,702
|
|
670,734
|
|
66,968
|
|
10.0
|
Net income (loss)
attributable to IGT
|
|
(157,930)
|
|
236,777
|
|
(394,707)
|
|
(166.7)
|
Net income (loss)
attributable to IGT per ordinary share - diluted
|
(0.83)
|
|
1.36
|
|
(2.19)
|
|
(161.0)
|
Weighted average
shares - diluted
|
|
189,884
|
|
174,647
|
|
15,237
|
|
8.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliations of
Non-GAAP Financial Measures
|
|
|
|
|
|
|
|
|
|
|
|
For the nine
months ended
|
|
|
September
30,
|
|
Change
|
|
|
2015
|
|
2014
|
|
$
|
|
%
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
408,396
|
|
600,773
|
|
(192,377)
|
|
(32.0)
|
Depreciation
|
|
259,676
|
|
243,283
|
|
16,393
|
|
6.7
|
Amortization
|
|
286,264
|
|
109,950
|
|
176,314
|
|
160.4
|
Service revenue
amortization
|
|
81,178
|
|
96,332
|
|
(15,154)
|
|
(15.7)
|
Transaction expense
(income), net (1)
|
|
45,695
|
|
(1,859)
|
|
47,554
|
|
>500.0
|
Restructuring
expense
|
|
41,570
|
|
13,518
|
|
28,052
|
|
207.5
|
Non-cash purchase
accounting (excluding D&A)
|
21,245
|
|
-
|
|
21,245
|
|
-
|
Stock
compensation
|
|
17,865
|
|
4,492
|
|
13,373
|
|
297.7
|
Impairment
loss
|
|
-
|
|
1,802
|
|
(1,802)
|
|
(100.0)
|
Adjusted
EBITDA
|
|
1,161,889
|
|
1,068,291
|
|
93,598
|
|
8.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
408,396
|
|
600,773
|
|
(192,377)
|
|
(32.0)
|
Purchase
accounting
|
|
242,041
|
|
58,302
|
|
183,739
|
|
315.2
|
Transaction expense
(income), net (1)
|
|
45,695
|
|
(1,859)
|
|
47,554
|
|
>500.0
|
Restructuring
expense
|
|
41,570
|
|
13,518
|
|
28,052
|
|
207.5
|
Adjusted Operating
income
|
|
737,702
|
|
670,734
|
|
66,968
|
|
10.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
470,994
|
|
704,954
|
|
(233,960)
|
|
(33.2)
|
Capital
expenditures
|
|
(288,743)
|
|
(240,682)
|
|
(48,061)
|
|
(20.0)
|
Free Cash
Flow
|
|
182,251
|
|
464,272
|
|
(282,021)
|
|
(60.7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Transaction
expense (income), 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 and Subsidiaries
|
|
|
|
|
Segment
Information
|
|
|
|
|
|
|
|
($ in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended September 30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Segments
|
Revenue
|
|
Operating
income
|
North America Gaming
& Interactive
|
340,704
|
|
37,035
|
|
85,043
|
|
2,158
|
North America
Lottery
|
252,933
|
|
237,632
|
|
50,137
|
|
19,582
|
International
|
210,706
|
|
138,395
|
|
36,913
|
|
28,795
|
Italy
|
413,695
|
|
524,672
|
|
131,038
|
|
192,248
|
|
1,218,038
|
|
937,734
|
|
303,131
|
|
242,783
|
|
|
|
|
|
|
|
|
Corporate
support
|
-
|
|
-
|
|
(58,894)
|
|
(38,481)
|
Purchase
accounting
|
(2,725)
|
|
183
|
|
(114,198)
|
|
(20,452)
|
|
1,215,313
|
|
937,917
|
|
130,039
|
|
183,850
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the nine
months ended September 30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Segments
|
Revenue
|
|
Operating
income
|
North America Gaming
& Interactive
|
724,122
|
|
87,531
|
|
187,854
|
|
(7,556)
|
North America
Lottery
|
776,489
|
|
715,717
|
|
140,107
|
|
57,072
|
International
|
588,441
|
|
438,529
|
|
110,350
|
|
95,623
|
Italy
|
1,297,988
|
|
1,678,189
|
|
422,524
|
|
598,566
|
|
3,387,040
|
|
2,919,966
|
|
860,835
|
|
743,705
|
|
|
|
|
|
|
|
|
Corporate
support
|
-
|
|
-
|
|
(210,398)
|
|
(84,633)
|
Purchase
accounting
|
(14,374)
|
|
540
|
|
(242,041)
|
|
(58,299)
|
|
3,372,666
|
|
2,920,506
|
|
408,396
|
|
600,773
|
|
|
|
|
|
|
|
|
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
|
Q3
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
|
Q1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
Gaming & Interactive
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
Revenue
|
8
|
9
|
15
|
13
|
46
|
13
|
237
|
267
|
|
263
|
255
|
257
|
261
|
1,036
|
245
|
Product
Sales
|
14
|
19
|
22
|
32
|
87
|
17
|
116
|
73
|
|
131
|
99
|
126
|
82
|
437
|
66
|
Revenue
|
|
22
|
28
|
37
|
45
|
133
|
30
|
353
|
341
|
|
393
|
354
|
383
|
343
|
1,473
|
311
|
OI
|
|
|
(6)
|
(4)
|
2
|
8
|
0
|
7
|
96
|
85
|
|
111
|
121
|
144
|
95
|
471
|
41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
Lottery
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
Revenue
|
238
|
187
|
222
|
217
|
865
|
241
|
253
|
242
|
|
20
|
20
|
20
|
20
|
81
|
19
|
Product
Sales
|
23
|
29
|
15
|
7
|
75
|
12
|
17
|
11
|
|
0
|
0
|
0
|
0
|
0
|
0
|
Revenue
|
|
261
|
217
|
238
|
224
|
940
|
253
|
270
|
253
|
|
20
|
20
|
20
|
20
|
81
|
19
|
OI
|
|
|
43
|
(6)
|
20
|
17
|
74
|
43
|
47
|
50
|
|
10
|
11
|
11
|
12
|
44
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
Revenue
|
119
|
114
|
115
|
127
|
474
|
103
|
137
|
136
|
|
45
|
42
|
42
|
38
|
167
|
37
|
Product
Sales
|
33
|
34
|
24
|
66
|
157
|
28
|
110
|
75
|
|
54
|
51
|
92
|
50
|
247
|
33
|
Revenue
|
|
152
|
148
|
138
|
192
|
631
|
131
|
247
|
211
|
|
99
|
93
|
134
|
87
|
413
|
69
|
OI
|
|
|
36
|
30
|
29
|
60
|
156
|
27
|
47
|
37
|
|
5
|
18
|
40
|
8
|
70
|
0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Italy
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
Revenue
|
601
|
551
|
524
|
509
|
2,185
|
452
|
431
|
413
|
|
0
|
0
|
0
|
0
|
0
|
0
|
Product
Sales
|
1
|
1
|
1
|
1
|
3
|
1
|
1
|
0
|
|
0
|
0
|
0
|
0
|
0
|
0
|
Revenue
|
|
601
|
552
|
525
|
510
|
2,188
|
453
|
432
|
414
|
|
0
|
0
|
0
|
0
|
0
|
0
|
OI
|
|
|
213
|
193
|
192
|
113
|
712
|
150
|
141
|
131
|
|
(6)
|
(5)
|
(4)
|
(5)
|
(19)
|
(5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase
Accounting
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
Revenue
|
0
|
0
|
0
|
0
|
0
|
0
|
(8)
|
(1)
|
|
0
|
0
|
0
|
0
|
0
|
0
|
Product
Sales
|
0
|
0
|
0
|
0
|
0
|
0
|
(4)
|
(1)
|
|
0
|
0
|
0
|
0
|
0
|
0
|
Revenue
|
|
0
|
0
|
0
|
0
|
0
|
0
|
(12)
|
(2)
|
|
0
|
0
|
0
|
0
|
0
|
0
|
OI
|
|
|
(18)
|
(20)
|
(20)
|
(20)
|
(78)
|
(17)
|
(111)
|
(114)
|
|
(6)
|
(6)
|
(11)
|
(7)
|
(31)
|
(7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OI
|
|
|
(23)
|
(23)
|
(38)
|
(67)
|
(151)
|
(47)
|
(104)
|
(59)
|
|
(42)
|
(29)
|
(57)
|
(39)
|
(167)
|
(47)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IGT
PLC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
Revenue
|
966
|
861
|
876
|
866
|
3,569
|
809
|
1,050
|
1,057
|
|
328
|
317
|
319
|
319
|
1,284
|
301
|
Product
Sales
|
71
|
84
|
62
|
106
|
322
|
58
|
240
|
158
|
|
185
|
150
|
218
|
131
|
684
|
99
|
Revenue
|
|
1,037
|
945
|
938
|
972
|
3,892
|
867
|
1,290
|
1,215
|
|
513
|
468
|
537
|
451
|
1,968
|
399
|
OI
|
|
|
246
|
171
|
184
|
112
|
712
|
163
|
116
|
130
|
|
72
|
110
|
123
|
63
|
368
|
(7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro
Forma
|
|
|
YtY
Variance
|
|
|
|
|
|
2014
|
2015
|
|
Actual
FX
|
Constant
FX
|
|
|
|
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
|
Q1
|
Q2
|
Q3
|
|
Q3
|
Q3
YTD
|
Q3
|
Q3
YTD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
Gaming & Interactive
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
Revenue
|
271
|
264
|
272
|
275
|
1,082
|
257
|
237
|
267
|
|
-1.6%
|
-5.6%
|
-0.9%
|
-5.1%
|
|
|
Product
Sales
|
145
|
118
|
148
|
113
|
524
|
83
|
116
|
73
|
|
-50.4%
|
-33.6%
|
-48.7%
|
-31.6%
|
|
|
Revenue
|
|
416
|
383
|
420
|
388
|
1,606
|
341
|
353
|
341
|
|
-18.8%
|
-15.0%
|
-17.7%
|
-14.1%
|
|
|
OI
|
|
|
105
|
117
|
146
|
103
|
471
|
47
|
96
|
85
|
|
-41.8%
|
-37.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
Lottery
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
Revenue
|
259
|
208
|
242
|
237
|
946
|
261
|
253
|
242
|
|
0.0%
|
6.7%
|
0.4%
|
7.2%
|
|
|
Product
Sales
|
23
|
29
|
15
|
7
|
75
|
12
|
17
|
11
|
|
-30.5%
|
-41.8%
|
-28.5%
|
-40.4%
|
|
|
Revenue
|
|
282
|
237
|
258
|
245
|
1,021
|
273
|
270
|
253
|
|
-1.8%
|
2.5%
|
-1.3%
|
3.1%
|
|
|
OI
|
|
|
54
|
5
|
30
|
29
|
118
|
55
|
47
|
50
|
|
65.5%
|
70.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
International
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
Revenue
|
164
|
155
|
157
|
164
|
640
|
140
|
137
|
136
|
|
-13.5%
|
-13.5%
|
0.0%
|
-1.1%
|
|
|
Product
Sales
|
88
|
85
|
115
|
115
|
404
|
61
|
110
|
75
|
|
-35.0%
|
-14.7%
|
-27.1%
|
-3.8%
|
|
|
Revenue
|
|
251
|
241
|
272
|
279
|
1,044
|
200
|
247
|
211
|
|
-22.6%
|
-13.9%
|
-11.5%
|
-2.1%
|
|
|
OI
|
|
|
41
|
48
|
69
|
68
|
226
|
27
|
47
|
37
|
|
-46.7%
|
-30.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Italy
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
Revenue
|
601
|
551
|
524
|
509
|
2,185
|
452
|
431
|
413
|
|
-21.1%
|
-22.6%
|
-7.6%
|
-6.1%
|
|
|
Product
Sales
|
1
|
1
|
1
|
1
|
3
|
1
|
1
|
0
|
|
-69.2%
|
-40.1%
|
-63.3%
|
-28.0%
|
|
|
Revenue
|
|
601
|
552
|
525
|
510
|
2,188
|
453
|
432
|
414
|
|
-21.2%
|
-22.7%
|
-7.6%
|
-6.1%
|
|
|
OI
|
|
|
208
|
188
|
188
|
108
|
692
|
145
|
141
|
131
|
|
-30.4%
|
-28.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase
Accounting
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
Revenue
|
0
|
0
|
0
|
0
|
0
|
0
|
(8)
|
(1)
|
|
-
|
-
|
-
|
-
|
|
|
Product
Sales
|
0
|
0
|
0
|
0
|
0
|
0
|
(4)
|
(1)
|
|
-
|
-
|
-
|
-
|
|
|
Revenue
|
|
0
|
0
|
0
|
0
|
0
|
0
|
(12)
|
(2)
|
|
-
|
-
|
-
|
-
|
|
|
OI
|
|
|
(24)
|
(26)
|
(32)
|
(27)
|
(109)
|
(24)
|
(111)
|
(114)
|
|
257.8%
|
205.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OI
|
|
|
(65)
|
(52)
|
(96)
|
(106)
|
(319)
|
(95)
|
(104)
|
(59)
|
|
-38.5%
|
21.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IGT
PLC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
Revenue
|
1,294
|
1,179
|
1,195
|
1,185
|
4,853
|
1,110
|
1,050
|
1,057
|
|
-11.5%
|
-12.3%
|
-3.7%
|
-3.0%
|
|
|
Product
Sales
|
256
|
234
|
279
|
237
|
1,006
|
158
|
240
|
158
|
|
-43.5%
|
-27.9%
|
-39.2%
|
-22.7%
|
|
|
Revenue
|
|
1,550
|
1,413
|
1,474
|
1,422
|
5,860
|
1,267
|
1,290
|
1,215
|
|
-17.6%
|
-15.0%
|
-10.5%
|
-6.4%
|
|
|
OI
|
|
|
318
|
280
|
306
|
175
|
1,080
|
156
|
116
|
130
|
|
-57.6%
|
-55.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
Q3
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
|
Q1
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
|
Q1
|
Q2
|
Q3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
revenue
|
966
|
862
|
876
|
866
|
3,570
|
809
|
1,050
|
1,057
|
|
328
|
317
|
319
|
319
|
1,284
|
301
|
|
1,294
|
1,179
|
1,195
|
1,186
|
4,853
|
1,110
|
1,050
|
1,057
|
Product
sales
|
71
|
84
|
62
|
106
|
322
|
58
|
240
|
158
|
|
185
|
150
|
218
|
131
|
684
|
99
|
|
256
|
234
|
279
|
237
|
1,006
|
157
|
240
|
158
|
Total
revenue
|
1,037
|
945
|
938
|
972
|
3,892
|
867
|
1,290
|
1,215
|
|
513
|
468
|
537
|
451
|
1,968
|
399
|
|
1,550
|
1,413
|
1,474
|
1,422
|
5,860
|
1,267
|
1,290
|
1,215
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services
|
617
|
589
|
581
|
617
|
2,404
|
526
|
632
|
633
|
|
126
|
117
|
117
|
122
|
482
|
116
|
|
743
|
707
|
698
|
738
|
2,886
|
642
|
632
|
633
|
Cost of
sales
|
42
|
52
|
38
|
59
|
190
|
35
|
177
|
128
|
|
90
|
63
|
91
|
71
|
315
|
63
|
|
132
|
115
|
129
|
130
|
506
|
99
|
177
|
128
|
Selling, general and
administrative
|
102
|
99
|
105
|
110
|
416
|
96
|
232
|
225
|
|
140
|
117
|
125
|
116
|
498
|
138
|
|
242
|
216
|
230
|
226
|
913
|
234
|
232
|
225
|
Research and
development
|
26
|
25
|
30
|
27
|
108
|
22
|
85
|
86
|
|
63
|
58
|
57
|
63
|
241
|
63
|
|
90
|
83
|
86
|
90
|
350
|
85
|
85
|
86
|
Restructuring
expense
|
4
|
4
|
5
|
10
|
23
|
14
|
16
|
11
|
|
0
|
0
|
0
|
0
|
0
|
0
|
|
4
|
4
|
5
|
10
|
23
|
14
|
16
|
11
|
Impairment
loss
|
0
|
2
|
0
|
1
|
3
|
0
|
0
|
0
|
|
22
|
2
|
15
|
1
|
40
|
7
|
|
22
|
4
|
15
|
2
|
43
|
7
|
0
|
0
|
Transaction expense
(income), net1
|
0
|
3
|
(5)
|
37
|
35
|
11
|
32
|
2
|
|
0
|
0
|
10
|
14
|
24
|
19
|
|
0
|
3
|
5
|
51
|
59
|
30
|
32
|
2
|
|
|
791
|
775
|
754
|
860
|
3,180
|
704
|
1,175
|
1,085
|
|
441
|
358
|
414
|
387
|
1,600
|
406
|
|
1,232
|
1,133
|
1,168
|
1,247
|
4,780
|
1,111
|
1,175
|
1,085
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
246
|
171
|
184
|
112
|
712
|
163
|
116
|
130
|
|
72
|
110
|
123
|
63
|
368
|
(7)
|
|
318
|
280
|
306
|
175
|
1,080
|
156
|
116
|
130
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
Q3
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
|
Q1
|
|
Q1
|
Q2
|
Q3
|
Q4
|
FY
|
Q1
|
Q2
|
Q3
|
Operating
income
|
246
|
171
|
184
|
112
|
712
|
163
|
116
|
130
|
|
72
|
110
|
123
|
63
|
368
|
(7)
|
|
318
|
280
|
306
|
175
|
1,080
|
156
|
116
|
130
|
Purchase
Accounting
|
18
|
20
|
20
|
20
|
78
|
17
|
111
|
114
|
|
6
|
6
|
11
|
7
|
31
|
7
|
|
24
|
26
|
32
|
27
|
109
|
24
|
111
|
114
|
Transaction Expense,
net
|
0
|
3
|
(5)
|
37
|
35
|
11
|
32
|
2
|
|
0
|
0
|
10
|
14
|
24
|
19
|
|
0
|
3
|
5
|
51
|
59
|
30
|
32
|
2
|
Restructuring
|
4
|
4
|
5
|
10
|
23
|
14
|
16
|
11
|
|
0
|
0
|
0
|
0
|
0
|
0
|
|
4
|
4
|
5
|
10
|
23
|
14
|
16
|
11
|
Adjusted Operating
Income
|
268
|
198
|
204
|
179
|
849
|
205
|
275
|
258
|
|
78
|
116
|
144
|
85
|
422
|
19
|
|
346
|
314
|
348
|
263
|
1,272
|
224
|
275
|
258
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
246
|
171
|
184
|
112
|
712
|
163
|
116
|
130
|
|
72
|
110
|
123
|
63
|
368
|
(7)
|
|
318
|
280
|
306
|
175
|
1,080
|
156
|
116
|
130
|
Depreciation
|
83
|
76
|
84
|
80
|
324
|
72
|
93
|
95
|
|
34
|
32
|
30
|
28
|
123
|
28
|
|
116
|
108
|
114
|
108
|
447
|
99
|
93
|
95
|
Amortization
|
35
|
37
|
37
|
39
|
149
|
33
|
119
|
134
|
|
14
|
14
|
14
|
10
|
51
|
10
|
|
49
|
51
|
51
|
49
|
200
|
43
|
119
|
134
|
Transaction expense
(income), net1
|
0
|
3
|
(5)
|
37
|
35
|
11
|
32
|
2
|
|
0
|
0
|
10
|
14
|
24
|
19
|
|
0
|
3
|
5
|
51
|
59
|
30
|
32
|
2
|
Service revenue
amortization
|
33
|
33
|
31
|
30
|
126
|
27
|
27
|
27
|
|
0
|
0
|
0
|
0
|
0
|
0
|
|
33
|
33
|
31
|
30
|
126
|
27
|
27
|
27
|
Non-cash purchase
price (excluding D&A)
|
0
|
(0)
|
0
|
0
|
0
|
0
|
19
|
2
|
|
0
|
0
|
0
|
0
|
0
|
0
|
|
0
|
(0)
|
0
|
0
|
0
|
0
|
19
|
2
|
Restructuring
expense
|
4
|
4
|
5
|
10
|
23
|
14
|
16
|
11
|
|
0
|
0
|
0
|
0
|
0
|
0
|
|
4
|
4
|
5
|
10
|
23
|
14
|
16
|
11
|
Stock
compensation
|
2
|
(4)
|
6
|
12
|
16
|
1
|
5
|
12
|
|
8
|
7
|
9
|
9
|
32
|
6
|
|
10
|
3
|
15
|
21
|
48
|
7
|
5
|
12
|
Impairment
loss
|
0
|
2
|
0
|
1
|
3
|
0
|
0
|
0
|
|
22
|
2
|
15
|
1
|
40
|
7
|
|
22
|
4
|
15
|
2
|
43
|
7
|
0
|
0
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
2
|
|
32
|
|
0
|
0
|
(1)
|
2
|
0
|
32
|
0
|
0
|
Adjusted
EBITDA
|
403
|
323
|
342
|
321
|
1,389
|
321
|
427
|
414
|
|
148
|
164
|
199
|
127
|
638
|
93
|
|
551
|
487
|
541
|
448
|
2,027
|
415
|
427
|
414
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
Transaction expense (income), 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.
|
|
Key Performance
Indicators (KPIs)
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Key
Performance Indicators (KPIs)
|
|
|
|
|
Third
Quarter
|
|
Nine
Months
|
Periods Ended
September 30
|
|
2015
|
2014
|
%
change
|
|
2015
|
2014
|
%
change
|
|
|
|
|
|
|
|
|
|
|
|
Installed base
(end of period)
|
|
|
|
|
|
|
|
|
Casino
|
|
|
|
34,755
|
39,102
|
-11.1%
|
|
34,755
|
39,102
|
-11.1%
|
VLT -
Government Sponsored (ex-Italy)
|
15,932
|
16,637
|
-4.2%
|
|
15,932
|
16,637
|
-4.2%
|
VLT -
Italy Supplier (B2B)
|
|
8,439
|
8,378
|
0.7%
|
|
8,439
|
8,378
|
0.7%
|
Total
installed base
|
|
|
59,126
|
64,117
|
-7.8%
|
|
59,126
|
64,117
|
-7.8%
|
Yield
(average revenue per unit per day - $0.00)
|
33.95
|
36.33
|
-6.6%
|
|
34.11
|
35.64
|
-4.3%
|
|
|
|
|
|
|
|
|
|
|
|
Additional Italian Network Details:
|
|
|
|
|
|
|
|
|
VLT -
Operator (B2C)
|
|
|
10,955
|
10,859
|
0.9%
|
|
10,955
|
10,859
|
0.9%
|
AWP
|
|
|
|
60,262
|
68,249
|
-11.7%
|
|
60,262
|
68,249
|
-11.7%
|
|
|
|
|
|
|
|
|
|
|
|
Machine units
shipped
|
|
|
|
|
|
|
|
|
New/Expansion
|
|
|
1,399
|
2,643
|
-47.1%
|
|
4,181
|
8,502
|
-50.8%
|
Replacement
|
|
|
5,223
|
10,058
|
-48.1%
|
|
19,416
|
23,439
|
-17.2%
|
Total
machines shipped
|
|
6,622
|
12,701
|
-47.9%
|
|
23,597
|
31,941
|
-26.1%
|
|
|
|
|
|
|
|
|
|
|
|
Global lottery
same-store revenue growth
|
|
|
|
|
|
|
|
Instants
& draw games
|
|
|
|
6.7%
|
|
|
|
6.2%
|
Multistate Jackpots
|
|
|
|
|
2.6%
|
|
|
|
3.5%
|
Total
lottery same-store revenue growth (ex-Italy)
|
|
6.2%
|
|
|
|
5.9%
|
Italy
lottery revenue growth
|
|
|
|
-3.9%
|
|
|
|
1.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
KPIs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third
Quarter
|
|
Nine
Months
|
Periods Ended
September 30
|
|
2015
|
2014
|
%
change
|
|
2015
|
2014
|
%
change
|
|
|
|
|
|
|
|
|
|
|
|
Installed base
(end of period)
|
|
40,919
|
44,941
|
-8.9%
|
|
40,919
|
44,941
|
-8.9%
|
|
|
|
|
|
|
|
|
|
|
|
Machine units
shipped
|
|
|
|
|
|
|
|
|
New/Expansion
|
|
|
895
|
2,053
|
-56.4%
|
|
2,198
|
6,766
|
-67.5%
|
Replacement
|
|
|
2,431
|
4,488
|
-45.8%
|
|
12,587
|
12,046
|
4.5%
|
Total
machines shipped
|
|
3,326
|
6,541
|
-49.2%
|
|
14,785
|
18,812
|
-21.4%
|
|
|
|
|
|
|
|
|
|
|
|
DoubleDown
|
|
|
|
|
|
|
|
|
|
Revenue
($ Thousands)
|
|
79,748
|
75,090
|
6.2%
|
|
233,401
|
215,666
|
8.2%
|
Mobile
penetration
|
|
|
50%
|
36%
|
38.9%
|
|
46%
|
34%
|
34.5%
|
DAU
(Daily Active Users)1
|
|
1,852
|
1,816
|
2.0%
|
|
1,873
|
1,808
|
3.6%
|
MAU
(Monthy Active Users)1
|
|
4,536
|
5,717
|
-20.7%
|
|
4,564
|
5,970
|
-23.6%
|
Bookings
per DAU ($0.00)1
|
|
$ 0.48
|
$ 0.46
|
3.4%
|
|
$ 0.47
|
$ 0.44
|
5.9%
|
|
|
|
|
|
|
|
|
|
|
|
Lottery same-store
revenue growth
|
|
|
|
|
|
|
|
Instants
& draw games
|
|
|
|
8.5%
|
|
|
|
7.5%
|
Multistate Jackpots
|
|
|
|
|
3.8%
|
|
|
|
3.8%
|
Total
lottery same-store revenue growth
|
|
|
8.0%
|
|
|
|
7.0%
|
|
|
|
|
|
|
|
|
|
|
|
1As a
single application with multiple games, active users equal unique
users
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
KPIs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third
Quarter
|
|
Nine
Months
|
Periods Ended
September 30
|
|
2015
|
2014
|
%
change
|
|
2015
|
2014
|
%
change
|
|
|
|
|
|
|
|
|
|
|
|
Installed base
(end of period)
|
|
9,768
|
10,798
|
-9.5%
|
|
9,768
|
10,798
|
-9.5%
|
|
|
|
|
|
|
|
|
|
|
|
Machine units
shipped
|
|
|
|
|
|
|
|
|
New/Expansion
|
|
|
504
|
590
|
-14.6%
|
|
1,983
|
1,736
|
14.2%
|
Replacement
|
|
|
2,792
|
5,570
|
-49.9%
|
|
6,829
|
11,393
|
-40.1%
|
Total
machines shipped
|
|
3,296
|
6,160
|
-46.5%
|
|
8,812
|
13,129
|
-32.9%
|
|
|
|
|
|
|
|
|
|
|
|
Lottery same-store
revenue growth
|
|
|
|
|
|
|
|
Instants
& draw games
|
|
|
|
1.9%
|
|
|
|
2.8%
|
Multistate Jackpots
|
|
|
|
|
-3.7%
|
|
|
|
1.9%
|
Total
lottery same-store revenue growth
|
|
|
1.6%
|
|
|
|
2.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Italy
KPIs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third
Quarter
|
|
Nine
Months
|
Periods Ended
September 30
|
|
2015
|
2014
|
%
change
|
|
2015
|
2014
|
%
change
|
(In € millions,
except machines)
|
|
|
|
|
|
|
|
|
Lottery
|
|
|
|
|
|
|
|
|
|
|
Lotto
wagers
|
|
|
1,677
|
1,754
|
-4.4%
|
|
5,222
|
4,883
|
6.9%
|
10eLotto
|
|
|
|
1,009
|
963
|
4.8%
|
|
3,140
|
2,608
|
20.4%
|
Core
|
|
|
|
605
|
610
|
-0.9%
|
|
1,809
|
1,910
|
-5.3%
|
Late
Numbers
|
|
|
63
|
181
|
-65.4%
|
|
273
|
365
|
-25.4%
|
|
|
|
|
|
|
|
|
|
|
|
Scratch & Win
Wagers
|
|
2,108
|
2,176
|
-3.2%
|
|
6,625
|
6,967
|
-4.9%
|
|
|
|
|
|
|
|
|
|
|
|
Italy lottery
revenue growth
|
|
|
|
-3.9%
|
|
|
|
1.4%
|
|
|
|
|
|
|
|
|
|
|
|
Gaming
|
|
|
|
|
|
|
|
|
|
|
Installed base
(end of period)
|
|
|
|
|
|
|
|
|
VLT -
Operator (B2C)
|
|
|
10,955
|
10,859
|
0.9%
|
|
10,955
|
10,859
|
0.9%
|
VLT -
Supplier (B2B)
|
|
|
8,439
|
8,378
|
0.7%
|
|
8,439
|
8,378
|
0.7%
|
AWP
|
|
|
|
60,262
|
68,249
|
-11.7%
|
|
60,262
|
68,249
|
-11.7%
|
Wagers
|
|
|
|
|
|
|
|
|
|
|
VLT -
Operator (B2C)
|
|
|
1,314
|
1,306
|
0.7%
|
|
3,993
|
4,170
|
-4.2%
|
AWP
|
|
|
|
1,026
|
1,085
|
-5.4%
|
|
3,229
|
3,328
|
-3.0%
|
Interactive Wagers (Gaming)
|
|
378
|
423
|
-10.6%
|
|
1,258
|
1,340
|
-6.1%
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
Sports
Betting Wagers1
|
|
167
|
173
|
-3.6%
|
|
628
|
643
|
-2.3%
|
Sports
Betting Payout (%)1
|
|
81.9%
|
76.2%
|
5.7
pp
|
|
83.4%
|
77.8%
|
5.6
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-third-quarter-2015-results-300177506.html
SOURCE International Game Technology PLC