LONDON, July 28, 2016 /PRNewswire/ -- International Game
Technology PLC ("IGT") (NYSE:IGT) today reported financial results
for the second quarter and six months ended June 30, 2016. Today, at 8:00 a.m. EDT / 1:00 p.m.
BST / 2:00 p.m. CEST,
management will host a conference call and webcast to present the
second quarter results; access details are provided below.
"Robust growth in our global lottery operations, notably in
Italy and North America, and the resilience of our
global gaming business are the key takeaways from our second
quarter results," said Marco
Sala, CEO of IGT. "Service revenues, which account for
the bulk of our business and are mostly supported by long-term
contracts, rose a solid 6% at constant currency in the
period. We are making good progress implementing our strategy
of developing innovative content and technology that we can
leverage across gaming platforms and around the world. We look
forward to showcasing the full scope of our new gaming and lottery
offerings at high-profile trade shows later this fall."
"This is our third consecutive quarter of year-over-year
adjusted EBITDA growth," said Alberto
Fornaro, CFO of IGT. "A solid increase in service
revenue, additional synergy savings and disciplined operational
management all supported significant operating cash flow generation
during the quarter. As a result, we maintained a stable net debt
and leverage profile in the period when we paid the largest
installment of the upfront Italian Lotto concession payment."
Summary of Consolidated Second Quarter 2016 Financial
Results
|
Quarter Ended June
30,
|
Change
|
Constant
Currency
Change
|
|
2016
|
2015
|
(%)
|
(%)
|
(In $ millions,
unless otherwise noted)
|
|
|
|
|
Revenue
|
1,285
|
1,274
|
1%
|
1%
|
Operating
Income
|
171
|
116
|
48%
|
48%
|
Net income (loss) per
diluted share
|
0.36
|
(0.59)
|
NM
|
|
Net debt
|
7,830
|
8,384
|
-7%
|
|
Adjusted
EBITDA
|
443
|
427
|
4%
|
4%
|
Adjusted Operating
Income
|
290
|
283
|
2%
|
2%
|
Adjusted net income
per diluted share
|
0.43
|
0.38
|
13%
|
|
|
|
Note:
|
Adjusted EBITDA,
adjusted operating income, and adjusted net income per diluted
share are non-GAAP financial measures. Reconciliations of
non-GAAP financial measures to the most directly comparable GAAP
financial measures are provided at the end of this news
release.
|
Comparability of Results
All figures presented in this news release are prepared under
U.S. GAAP, unless noted otherwise. Adjusted figures exclude the
impact of items such as purchase accounting, impairment charges,
restructuring expense, foreign exchange, and certain one-time,
primarily transaction-related items. Reconciliations to the most
directly comparable U.S. GAAP measures are included in the tables
in this news release. Constant currency changes for 2016 are
calculated using the same foreign exchange rates as the
corresponding 2015 period.
Overview of Consolidated Second Quarter Results
Consolidated revenue grew 1% to $1,285
million from $1,274 million in
the second quarter of 2015. Revenue growth primarily reflects
strong lottery performance, particularly in Italy and North
America. Global lottery same-store revenue, excluding
Italy, increased 6% during the
second quarter while Italy lottery
wagers increased 8%. Gaming service revenue grew 5% during the
second quarter, primarily on increased software contribution that
was partially offset by a lower global installed base. Product
sales declined on a challenging comparison with the prior year
given significant lottery product sales in South Africa and large Canada video lottery terminal ("VLT") sales in
2015. The Company shipped 8,152 gaming machines worldwide during
the second quarter.
Operating income grew 48% to $171
million from $116 million in
the second quarter of 2015 driven by revenue growth, synergy
savings and lower transaction-related expenses. Adjusted operating
income grew 2% to $290 million from
$283 million in the second quarter of
2015 as revenue growth and synergies were partially offset by
higher operating expenses.
Adjusted EBITDA of $443 million
was 4% higher than the second quarter of 2015 driven by the growth
in service revenue.
Interest expense was $118 million
compared to $122 million in the
prior-year period.
Net income attributable to IGT was $73
million in the second quarter of 2016. On an adjusted basis,
net income attributable to IGT rose 14% to $87 million. The Company reported net income per
diluted share of $0.36 and earned
$0.43 per diluted share on an
adjusted basis.
Cash from operations was $524
million in the first half of the year and capital
expenditures were $220 million. In
addition, the Company made the first of three upfront installment
payments for the new Lotto concession in Italy during the second quarter.
Cash and cash equivalents were $390
million as of June 30, 2016,
compared to $627 million as of
December 31, 2015. Consolidated
shareholders' equity totaled $3,409
million and net debt was $7,830
million as of June 30,
2016.
Operating Segment Review
North America Gaming &
Interactive
North America Gaming & Interactive revenue was $350 million compared to $353 million in the second quarter of 2015.
Service revenue was $246 million,
a 4% increase over $237 million in
the prior-year period as higher software revenue offset a decline
in the installed base. DoubleDown revenue was down modestly from
the prior year.
Product sales were $104 million
compared to $116 million in the
second quarter of 2015, primarily due to lower machine unit volume
that was partially offset by higher systems sales. The segment
shipped 5,163 units compared to 6,218 units in the second quarter
of 2015, which included large Canada VLT sales.
Operating income for North America Gaming & Interactive was
$87 million compared to $96 million in the second quarter of 2015. The
decline was largely attributed to lower revenue from terminal sales
and incremental investments to support the Company's Gaming
turnaround efforts.
North America Lottery
North America Lottery revenue was $286
million in the second quarter of 2016, 6% higher than the
$270 million reported in the second
quarter of 2015.
Service revenue of $267 million
was 6% higher than the prior-year period, reflecting 7.3%
same-store revenue growth. The same-store revenue growth was
broad-based and supported by continued strength in Jackpot games
and Instant tickets. Product sales were $19
million in the second quarter of 2016, compared to
$17 million in the prior-year
period.
Operating income for North America Lottery rose 31% to
$62 million reflecting the strong
operating leverage profile of the business and favorable product
mix.
International
International revenue was $207
million compared to $247
million in the second quarter of 2015. At constant currency,
International revenue declined 12% from the prior year, which
included large lottery product sales in South Africa.
International lottery service revenue of $70 million was 10% higher than the prior-year
period at constant currency. Same-store revenue growth of 2.2% was
supported by strength in Latin
America and Eastern Europe,
partially offset by weakness in the United Kingdom. Lottery service revenue also
benefitted from a higher effective rate in the period. Lottery
product sales were below the prior-year period, which included
large terminal and systems sales in South
Africa.
International gaming service revenue was $46 million compared to $50 million in the second quarter of 2015. At
constant currency, International gaming service revenue was flat,
with EMEA performance offsetting a lower Latin America installed base. Revenue from
gaming product sales declined from the prior-year period. The
segment shipped a total of 2,989 gaming machines during the second
quarter of 2016 compared to 3,929 units in the prior-year period,
which benefitted from higher sales of new and expansion units.
International operating income was $28
million compared to $47
million in the second quarter of 2015. Operating income
declined on lower product sales and adverse foreign exchange
impact.
Italy
Italy revenue was $443 million, 6% higher than the second quarter
of 2015.
Total Lotto wagers in the quarter were €2,056 million, a 19%
increase over the prior-year period, when wagers had already posted
11% growth. Strong Lotto performance was achieved with double-digit
expansion for 10eLotto and a significant contribution from late
numbers. Excluding late numbers, Lotto wagers increased 7% over the
same period last year. Instant-ticket wagers were flat at €2,200
million.
Machine gaming service revenue increased 6% on higher wagers per
machine and lower return to player. The strength in revenues was
partially offset by lower installed units and higher Stability Law
taxes.
Operating income for the Italy
segment was $161 million, 14% higher
than the second quarter of 2015. The increase in operating income
was mainly attributable to strong lottery and gaming performance, a
shift in timing of certain marketing expenses, and a multi-year
value-added tax ("VAT") credit. These benefits were partially
offset by higher Stability Law taxes.
Other Developments
The Company entered into an amendment agreement with respect to
its $1.8 billion and €1.05 billion
multicurrency revolving credit facilities pursuant to which the
maturity date was extended from November
2019 to July 2021, and the
maximum leverage ratio was increased by 0.25x through the third
quarter of 2019. The amendment reflects advantageous market
conditions that provide the Company with substantial financial
flexibility for the next several years.
Outlook
The Company continues to expect adjusted EBITDA of $1,740-$1,790 million for the full year 2016
period. Capital expenditures excluding upfront Lotto concession
payments are now expected to be $550-$580
million, which includes Lotto-related infrastructure
upgrades. This compares to previous guidance of $575-$625 million in capital expenditures, which
did not include an estimated $35
million in Lotto-related infrastructure investments. The
2016 portion of the Lotto-related, upfront concession payments is
€600 million. Net debt is still expected to be $7,700-$7,900 million at the end of 2016.
Adjusted EBITDA is a non-GAAP measure. Management uses non-GAAP
financial measures to understand and compare operating results
across accounting periods, for internal budgeting and forecasting
purposes, and to evaluate the Company's financial performance.
Management believes these Non-GAAP financial measures reflect the
Company's ongoing business in a manner that allows for meaningful
period-to-period comparisons and analysis of business trends.
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 2016 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 7136 2051 for
participants in the United Kingdom
and +1 877 280 2296 for listeners outside the United Kingdom. The conference ID/confirmation
code is 5641427. A telephone replay of the call will be available
for one week at +44 (0) 20 3427 0598 or +1 866 932 5017 using the
conference ID/confirmation code 5641427.
About IGT
IGT (NYSE:IGT) is the global leader in
gaming. We enable players to experience their favorite games across
all channels and regulated segments, from Gaming Machines and
Lotteries to Interactive and Social Gaming. Leveraging a wealth of
premium content, substantial investment in innovation, in-depth
customer intelligence, operational expertise and leading-edge
technology, our gaming solutions anticipate the demands of
consumers wherever they decide to play. We have a well-established
local presence and relationships with governments and regulators in
more than 100 countries around the world, and create value by
adhering to the highest standards of service, integrity, and
responsibility. IGT has over 12,000 employees. For more
information, please visit www.IGT.com.
Cautionary Statement Regarding Forward-Looking
Statements
This news release may contain forward-looking
statements (including within the meaning of the Private Securities
Litigation Reform Act of 1995) concerning International Game
Technology PLC and 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
International Game Technology PLC 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 International Game
Technology PLC'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) the
possibility that the businesses of International Game Technology
(Nevada) 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; unanticipated costs of integration of
International Game Technology (Nevada) and GTECH S.p.A.; the possibility that
International Game Technology PLC will be unable to pay future
dividends to shareholders or that the amount of such dividends may
be less than anticipated; the possibility that International Game
Technology PLC may not obtain its anticipated financial results in
one or more future periods; reductions in customer spending; a
slowdown in customer payments and changes in customer demand for
products and services as a result of changing economic conditions
or otherwise; unanticipated changes relating to competitive factors
in the industries in which International Game Technology PLC
operates; International Game Technology PLC's ability to hire and
retain key personnel; the impact of the consummation of the
business combination on relationships with third parties, including
customers, employees and competitors; International Game Technology
PLC's 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 International Game Technology
PLC, including as a consequence of the announced withdrawal of the
UK from the EU; international, national or local economic, social
or political conditions that could adversely affect International
Game Technology PLC or its customers; conditions in the credit
markets; changes in the top management team; risks associated with
assumptions International Game Technology PLC makes in connection
with its critical accounting estimates; the resolution of pending
and potential future legal, regulatory or tax proceedings and
investigations; and International Game Technology PLC'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 International Game Technology PLC's business, including
those described in International Game Technology PLC's annual
report on Form 20-F for the financial year ended December 31, 2015 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 International Game Technology
PLC's website at www.IGT.com. Except as required under applicable
law, International Game Technology PLC does not assume any
obligation to update the forward-looking statements. Nothing in
this presentation is intended, or is to be construed, as a profit
forecast or to be interpreted to mean that earnings per
International Game Technology PLC share for the current or any
future financial years will necessarily match or exceed the
historical published earnings per International Game Technology PLC
share, as applicable. All forward-looking statements contained in
this presentation are qualified in their entirety by this
cautionary statement. All subsequent written or oral
forward-looking statements attributable to International Game
Technology PLC, or persons acting on its behalf, are expressly
qualified in their entirety by this cautionary statement.
Contact:
Robert K. Vincent, Corporate
Communications, toll free in U.S./Canada +1 (844) IGT-7452; outside
U.S./Canada +1 (401) 392-7452
James Hurley, Investor Relations, +1
(401) 392-7190
Simone Cantagallo, +39 06 51899030;
for Italian media inquiries
International Game
Technology PLC
|
Consolidated
Statements of Operations
|
($ and shares
in thousands, except per share data)
|
Unaudited
|
|
|
|
|
|
|
|
For the three
months ended
|
|
|
June
30,
|
|
|
2016
|
|
2015
|
|
|
|
|
|
Service
revenue
|
|
1,089,954
|
|
1,034,693
|
Product
sales
|
|
195,515
|
|
239,591
|
Total
revenue
|
|
1,285,469
|
|
1,274,284
|
|
|
|
|
|
Cost of
services
|
|
637,832
|
|
616,648
|
Cost of
sales
|
|
144,640
|
|
177,244
|
Selling, general and
administrative
|
|
239,241
|
|
232,216
|
Research and
development
|
|
84,288
|
|
84,514
|
Restructuring
expense
|
|
6,438
|
|
15,818
|
Impairment
loss
|
|
2,352
|
|
-
|
Transaction (income)
expense, net
|
|
(43)
|
|
32,344
|
Total operating
expenses
|
|
1,114,748
|
|
1,158,784
|
|
|
|
|
|
Operating
income
|
|
170,721
|
|
115,500
|
|
|
|
|
|
Interest
income
|
|
2,754
|
|
7,506
|
Equity income,
net
|
|
414
|
|
243
|
Other
income
|
|
3,474
|
|
2,341
|
Other
expense
|
|
(4,463)
|
|
(1,563)
|
Foreign exchange gain
(loss), net
|
|
88,152
|
|
(102,345)
|
Interest
expense
|
|
(117,715)
|
|
(122,418)
|
Total
non-operating expenses
|
|
(27,384)
|
|
(216,236)
|
|
|
|
|
|
Income (loss)
before provision for income taxes
|
|
143,337
|
|
(100,736)
|
|
|
|
|
|
Provision for income
taxes
|
|
60,439
|
|
11,599
|
|
|
|
|
|
Net income
(loss)
|
|
82,898
|
|
(112,335)
|
|
|
|
|
|
Less: Net income
attributable to non-controlling interests
|
|
10,202
|
|
4,555
|
|
|
|
|
|
Net income (loss)
attributable to IGT PLC
|
|
72,696
|
|
(116,890)
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to IGT PLC per common share - basic
|
0.36
|
|
(0.59)
|
Net income (loss)
attributable to IGT PLC per common share - diluted
|
0.36
|
|
(0.59)
|
|
|
|
|
|
Weighted-average
shares - basic
|
|
201,229
|
|
197,149
|
Weighted-average
shares - diluted
|
|
201,565
|
|
197,149
|
International Game
Technology PLC
|
Consolidated
Statements of Operations
|
($ and shares
in thousands, except per share data)
|
Unaudited
|
|
|
|
|
|
|
|
For the six
months ended
|
|
|
June
30,
|
|
|
2016
|
|
2015
|
|
|
|
|
|
Service
revenue
|
|
2,225,075
|
|
1,824,955
|
Product
sales
|
|
341,955
|
|
297,571
|
Total
revenue
|
|
2,567,030
|
|
2,122,526
|
|
|
|
|
|
Cost of
services
|
|
1,286,595
|
|
1,123,383
|
Cost of
sales
|
|
266,416
|
|
212,342
|
Selling, general and
administrative
|
|
466,767
|
|
327,767
|
Research and
development
|
|
168,995
|
|
106,985
|
Restructuring
expense
|
|
15,856
|
|
30,299
|
Impairment
loss
|
|
2,352
|
|
-
|
Transaction expense,
net
|
|
1,431
|
|
43,394
|
Total operating
expenses
|
|
2,208,412
|
|
1,844,170
|
|
|
|
|
|
Operating
income
|
|
358,618
|
|
278,356
|
|
|
|
|
|
Interest
income
|
|
7,047
|
|
8,119
|
Equity income,
net
|
|
414
|
|
15
|
Other
income
|
|
4,700
|
|
2,955
|
Other
expense
|
|
(13,015)
|
|
(122,684)
|
Foreign exchange
loss, net
|
|
(73,404)
|
|
(95,341)
|
Interest
expense
|
|
(236,130)
|
|
(216,806)
|
Total
non-operating expenses
|
|
(310,388)
|
|
(423,742)
|
|
|
|
|
|
Income (loss)
before provision for income taxes
|
|
48,230
|
|
(145,386)
|
|
|
|
|
|
Provision for income
taxes
|
|
51,781
|
|
2,540
|
|
|
|
|
|
Net
loss
|
|
(3,551)
|
|
(147,926)
|
|
|
|
|
|
Less: Net income
attributable to non-controlling interests
|
|
16,527
|
|
8,281
|
|
|
|
|
|
Net loss
attributable to IGT PLC
|
|
(20,078)
|
|
(156,207)
|
|
|
|
|
|
|
|
|
|
|
Net loss
attributable to IGT PLC per common share - basic
|
|
(0.10)
|
|
(0.84)
|
Net loss
attributable to IGT PLC per common share - diluted
|
|
(0.10)
|
|
(0.84)
|
|
|
|
|
|
Weighted-average
shares - basic
|
|
200,840
|
|
185,007
|
Weighted-average
shares - diluted
|
|
200,840
|
|
185,007
|
International Game
Technology PLC
|
Condensed
Consolidated Balance Sheets
|
($
thousands)
|
Unaudited
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
2016
|
|
2015
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
390,012
|
|
627,484
|
Restricted cash and
investments
|
137,614
|
|
169,101
|
Trade and other
receivables, net
|
930,748
|
|
959,592
|
Inventories
|
284,096
|
|
269,982
|
Other current
assets
|
436,475
|
|
423,701
|
Income taxes
receivable
|
30,906
|
|
35,514
|
Total current
assets
|
2,209,851
|
|
2,485,374
|
|
|
|
|
Systems, equipment
and other assets related to contracts, net
|
1,123,496
|
|
1,127,518
|
Property, plant and
equipment, net
|
343,005
|
|
349,677
|
Goodwill,
net
|
6,838,652
|
|
6,830,499
|
Intangible assets,
net
|
3,112,165
|
|
3,335,633
|
Other non-current
assets
|
1,734,795
|
|
937,917
|
Deferred income
taxes
|
47,202
|
|
48,074
|
Total non-current
assets
|
13,199,315
|
|
12,629,318
|
|
|
|
|
Total
Assets
|
15,409,166
|
|
15,114,692
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
1,014,140
|
|
1,057,860
|
Other current
liabilities
|
1,318,684
|
|
922,586
|
Current portion of
long-term debt
|
163
|
|
160
|
Income taxes
payable
|
124,841
|
|
30,020
|
Total current
liabilities
|
2,457,828
|
|
2,010,626
|
|
|
|
|
Long-term debt, less
current portion
|
8,219,711
|
|
8,334,013
|
Deferred income
taxes
|
861,520
|
|
941,418
|
Other non-current
liabilities
|
461,091
|
|
462,493
|
Total non-current
liabilities
|
9,542,322
|
|
9,737,924
|
|
|
|
|
Total
Liabilities
|
12,000,150
|
|
11,748,550
|
|
|
|
|
Commitments and
contingencies
|
-
|
|
-
|
|
|
|
|
Shareholders'
equity
|
3,409,016
|
|
3,366,142
|
|
|
|
|
Total liabilities
and shareholders' equity
|
15,409,166
|
|
15,114,692
|
International Game
Technology PLC
|
Consolidated
Statements of Cash Flows
|
($
thousands)
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six
months ended
|
|
|
June
30,
|
|
|
2016
|
|
2015
|
Operating
activities
|
|
|
|
|
Net loss
|
|
(3,551)
|
|
(147,926)
|
Adjustments
for:
|
|
|
|
|
Amortization
|
|
253,074
|
|
152,135
|
Depreciation
|
|
198,881
|
|
164,543
|
Foreign exchange
loss, net
|
|
73,404
|
|
95,341
|
Amortization of
upfront payments to customers
|
|
55,178
|
|
53,876
|
Stock-based
compensation expense
|
|
17,034
|
|
20,970
|
Debt issuance cost
amortization
|
|
9,086
|
|
34,168
|
Loss on early
extinguishment of debt
|
|
-
|
|
73,806
|
Write-off of bridge
facility costs
|
|
-
|
|
35,061
|
Other, net
|
|
21,598
|
|
4,175
|
Cash flows before
changes in operating assets and liabilities
|
|
624,704
|
|
486,149
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Trade and other
receivables
|
|
35,133
|
|
(2,266)
|
Inventories
|
|
(6,271)
|
|
(556)
|
Accounts
payable
|
|
(68,596)
|
|
(145,140)
|
Other assets and
liabilities
|
|
(61,163)
|
|
(121,102)
|
Net cash flows
from operating activities
|
|
523,807
|
|
217,085
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
Upfront payments to
customers
|
|
(390,390)
|
|
-
|
Capital
expenditures
|
|
(219,632)
|
|
(167,092)
|
Purchases of jackpot
annuity investments
|
|
(1,446)
|
|
(786)
|
Proceeds from jackpot
annuity investments
|
|
11,625
|
|
12,184
|
Proceeds from sale of
assets
|
|
49,394
|
|
7,136
|
Acquisition of IGT,
net of cash acquired
|
|
-
|
|
(3,241,415)
|
Other
|
|
2,825
|
|
3,927
|
Net cash flows
used in investing activities
|
|
(547,624)
|
|
(3,386,046)
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
Principal payments on
long-term debt
|
|
(236,669)
|
|
(2,300,504)
|
Dividends
paid
|
|
(80,340)
|
|
(129,524)
|
Return of capital -
non-controlling interest
|
|
(35,407)
|
|
(30,281)
|
Dividends paid -
non-controlling interest
|
|
(27,552)
|
|
(27,205)
|
Net proceeds from
(payments on) financial liabilities
|
|
4,510
|
|
(54,493)
|
Capital contribution
non-controlling interest
|
|
151,359
|
|
-
|
Proceeds from
issuance of long-term debt
|
|
-
|
|
6,599,368
|
Payments in
connection with note consents
|
|
-
|
|
(29,022)
|
Payments on bridge
facility
|
|
-
|
|
(51,409)
|
Debt issuance costs
paid
|
|
-
|
|
(78,878)
|
Payments in
connection with the early extinguishment of debt
|
|
-
|
|
(79,526)
|
Payments to
withdrawing shareholders
|
|
-
|
|
(407,759)
|
Other
|
|
(2,288)
|
|
24,313
|
Net cash flows
(used in) provided by financing activities
|
|
(226,387)
|
|
3,435,080
|
|
|
|
|
|
Net (decrease)
increase in cash and cash equivalents
|
|
(250,204)
|
|
266,119
|
Effect of exchange
rate changes on cash
|
|
12,732
|
|
(26,132)
|
Cash and cash
equivalents at the beginning of the period
|
|
627,484
|
|
317,106
|
Cash and cash
equivalents at the end of the period
|
|
390,012
|
|
557,093
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Cash Flow Information:
|
|
|
|
|
Interest
paid
|
|
(256,331)
|
|
(162,732)
|
Income taxes
paid
|
|
(38,742)
|
|
(27,785)
|
International Game
Technology PLC
|
Net
Debt
|
($
thousands)
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December
31,
|
|
2016
|
|
2015
|
Long-term debt,
less current portion
|
|
|
|
6.250% Senior Secured
Notes due 2022
|
1,502,024
|
|
1,468,875
|
6.500% Senior Secured
Notes due 2025
|
1,084,882
|
|
1,084,249
|
4.750% Senior Secured
Notes due 2023
|
931,215
|
|
912,418
|
4.125% Senior Secured
Notes due 2020
|
768,191
|
|
752,212
|
5.625% Senior Secured
Notes due 2020
|
593,087
|
|
592,245
|
Senior Secured
Notes
|
4,879,399
|
|
4,809,999
|
|
|
|
|
6.625% Senior Secured
Notes due 2018
|
546,834
|
|
533,915
|
4.750% Senior Secured
Notes due 2020
|
533,495
|
|
520,649
|
Legacy GTECH
Notes
|
1,080,329
|
|
1,054,564
|
|
|
|
|
7.500% Senior Secured
Notes due 2019
|
526,029
|
|
530,009
|
5.500% Senior Secured
Notes due 2020
|
126,570
|
|
126,833
|
5.350% Senior Secured
Notes due 2023
|
61,243
|
|
61,303
|
Legacy IGT
Notes
|
713,842
|
|
718,145
|
|
|
|
|
Term Loan Facilities
due 2019
|
884,607
|
|
866,785
|
Revolving Credit
Facilities due 2019
|
661,494
|
|
834,968
|
Capital
Securities
|
-
|
|
49,472
|
Other
|
40
|
|
80
|
Long-term debt,
less current portion
|
8,219,711
|
|
8,334,013
|
|
|
|
|
Current portion of
long-term debt
|
163
|
|
160
|
Total
debt
|
8,219,874
|
|
8,334,173
|
|
|
|
|
Cash and cash
equivalents
|
390,012
|
|
627,484
|
|
|
|
|
Net
debt
|
7,829,862
|
|
7,706,689
|
International Game Technology
PLC
|
Consolidated
Statement of Operations
|
Reconciliation of Non-GAAP Financial
Measures
|
($ and
shares in thousands, except share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
Q2
2016
|
|
|
|
|
|
Impairment/
|
|
Transaction
|
|
Q2
2016
|
|
|
As
|
|
Purchase
|
|
Foreign
|
|
Restructuring
|
|
(Income)
|
|
As
|
|
|
Reported
|
|
Accounting
|
|
Exchange
|
|
Expense
|
|
Expense
|
|
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
1,285,469
|
|
264
|
|
-
|
|
-
|
|
-
|
|
1,285,733
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services
|
|
637,832
|
|
(45,340)
|
|
-
|
|
-
|
|
-
|
|
592,492
|
Cost of
sales
|
|
144,640
|
|
(29,687)
|
|
-
|
|
-
|
|
-
|
|
114,953
|
Selling,
general and administrative
|
|
239,241
|
|
(34,857)
|
|
-
|
|
-
|
|
-
|
|
204,384
|
Research and
development
|
|
84,288
|
|
(496)
|
|
-
|
|
-
|
|
-
|
|
83,792
|
Restructuring
expense
|
|
6,438
|
|
-
|
|
-
|
|
(6,438)
|
|
-
|
|
-
|
Impairment
loss
|
|
2,352
|
|
-
|
|
-
|
|
(2,352)
|
|
-
|
|
-
|
Transaction
(income) expense, net
|
|
(43)
|
|
-
|
|
-
|
|
-
|
|
43
|
|
-
|
Total
operating expenses
|
|
1,114,748
|
|
(110,380)
|
|
-
|
|
(8,790)
|
|
43
|
|
995,621
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
170,721
|
|
110,644
|
|
-
|
|
8,790
|
|
(43)
|
|
290,112
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
exchange gain, net
|
|
88,152
|
|
-
|
|
(88,152)
|
|
-
|
|
-
|
|
-
|
Other expense,
net
|
|
(575)
|
|
1,260
|
|
-
|
|
-
|
|
-
|
|
685
|
Interest
expense, net
|
|
(114,961)
|
|
2,036
|
|
-
|
|
-
|
|
-
|
|
(112,925)
|
Total
non-operating expenses
|
|
(27,384)
|
|
3,296
|
|
(88,152)
|
|
-
|
|
-
|
|
(112,240)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) before provision for income taxes
|
|
143,337
|
|
113,940
|
|
(88,152)
|
|
8,790
|
|
(43)
|
|
177,872
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
(benefit from) income taxes (a)
|
|
60,439
|
|
41,330
|
|
(22,703)
|
|
2,054
|
|
(32)
|
|
81,088
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
82,898
|
|
72,610
|
|
(65,449)
|
|
6,736
|
|
(11)
|
|
96,784
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net
income attributable to non-controlling interests
|
|
10,202
|
|
25
|
|
-
|
|
-
|
|
-
|
|
10,227
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) attributable to IGT PLC
|
|
72,696
|
|
72,585
|
|
(65,449)
|
|
6,736
|
|
(11)
|
|
86,557
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
per common share - diluted
|
|
0.36
|
|
|
|
|
|
|
|
|
|
0.43
|
Weighted-average shares -
diluted
|
|
201,565
|
|
|
|
|
|
|
|
|
|
201,565
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Provision
for (benefit from) income taxes was determined based on the
statutory tax rate in effect in the respective jurisdiction where
the adjustment originated.
|
International Game Technology
PLC
|
Consolidated
Statement of Operations
|
Reconciliation of Non-GAAP Financial
Measures
|
($ and
shares in thousands, except share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
Q2
2015
|
|
|
|
|
|
|
|
Transaction
|
|
Q2
2015
|
|
|
|
As
|
|
Purchase
|
|
Foreign
|
|
Restructuring
|
|
and
Refinancing
|
|
As
|
|
|
|
Reported
|
|
Accounting
|
|
Exchange
|
|
Expense
|
|
Expense
|
|
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
1,274,284
|
|
11,826
|
|
-
|
|
-
|
|
-
|
|
1,286,110
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services
|
|
616,648
|
|
(40,446)
|
|
-
|
|
-
|
|
-
|
|
576,202
|
|
Cost of
sales
|
|
177,244
|
|
(32,213)
|
|
-
|
|
-
|
|
-
|
|
145,031
|
|
Selling,
general and administrative
|
|
232,216
|
|
(34,579)
|
|
-
|
|
-
|
|
-
|
|
197,637
|
|
Research and
development
|
|
84,514
|
|
(561)
|
|
-
|
|
-
|
|
-
|
|
83,953
|
|
Restructuring
expense
|
|
15,818
|
|
-
|
|
-
|
|
(15,818)
|
|
-
|
|
-
|
|
Transaction
expense, net
|
|
32,344
|
|
-
|
|
-
|
|
-
|
|
(32,344)
|
|
-
|
|
Total
operating expenses
|
|
1,158,784
|
|
(107,799)
|
|
-
|
|
(15,818)
|
|
(32,344)
|
|
1,002,823
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
115,500
|
|
119,625
|
|
-
|
|
15,818
|
|
32,344
|
|
283,287
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
exchange loss, net
|
|
(102,345)
|
|
-
|
|
102,345
|
|
-
|
|
-
|
|
-
|
|
Other income,
net
|
|
1,021
|
|
6,454
|
|
-
|
|
-
|
|
8
|
|
7,483
|
|
Interest
expense, net
|
|
(114,912)
|
|
(33)
|
|
-
|
|
-
|
|
-
|
|
(114,945)
|
|
Total
non-operating expenses
|
|
(216,236)
|
|
6,421
|
|
102,345
|
|
-
|
|
8
|
|
(107,462)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)
income before provision for income taxes
|
|
(100,736)
|
|
126,046
|
|
102,345
|
|
15,818
|
|
32,352
|
|
175,825
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
income taxes (a)
|
|
11,599
|
|
45,387
|
|
23,482
|
|
4,873
|
|
10,125
|
|
95,466
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
(112,335)
|
|
80,659
|
|
78,863
|
|
10,945
|
|
22,227
|
|
80,359
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net
income attributable to non-controlling interests
|
|
4,555
|
|
26
|
|
-
|
|
-
|
|
-
|
|
4,581
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income attributable to IGT PLC
|
|
(116,890)
|
|
80,633
|
|
78,863
|
|
10,945
|
|
22,227
|
|
75,778
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income per common share - diluted
|
|
(0.59)
|
|
|
|
|
|
|
|
|
|
0.38
|
|
Weighted-average shares -
diluted
|
|
197,149
|
|
|
|
|
|
|
|
|
|
198,612
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Provision
for (benefit from) income taxes was determined based on the
statutory tax rate in effect in the respective jurisdiction where
the adjustment originated.
|
|
International Game Technology
PLC
|
Consolidated
Statement of Operations
|
Reconciliation of Non-GAAP Financial
Measures
|
($ and
shares in thousands, except share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year to
date
|
|
Adjustments
|
|
Year to
date
|
|
|
June
2016
|
|
|
|
|
|
Impairment/
|
|
|
|
June
2016
|
|
|
As
|
|
Purchase
|
|
Foreign
|
|
Restructuring
|
|
Transaction
|
|
As
|
|
|
Reported
|
|
Accounting
|
|
Exchange
|
|
Expense
|
|
Expense
|
|
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
2,567,030
|
|
956
|
|
-
|
|
-
|
|
-
|
|
2,567,986
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services
|
|
1,286,595
|
|
(91,144)
|
|
-
|
|
-
|
|
-
|
|
1,195,451
|
Cost of
sales
|
|
266,416
|
|
(59,351)
|
|
-
|
|
-
|
|
-
|
|
207,065
|
Selling,
general and administrative
|
|
466,767
|
|
(69,603)
|
|
-
|
|
-
|
|
-
|
|
397,164
|
Research and
development
|
|
168,995
|
|
(994)
|
|
-
|
|
-
|
|
-
|
|
168,001
|
Restructuring
expense
|
|
15,856
|
|
-
|
|
-
|
|
(15,856)
|
|
-
|
|
-
|
Impairment
loss
|
|
2,352
|
|
-
|
|
-
|
|
(2,352)
|
|
-
|
|
-
|
Transaction
expense, net
|
|
1,431
|
|
-
|
|
-
|
|
-
|
|
(1,431)
|
|
-
|
Total
operating expenses
|
|
2,208,412
|
|
(221,092)
|
|
-
|
|
(18,208)
|
|
(1,431)
|
|
1,967,681
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
358,618
|
|
222,048
|
|
-
|
|
18,208
|
|
1,431
|
|
600,305
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
exchange loss, net
|
|
(73,404)
|
|
-
|
|
73,404
|
|
-
|
|
-
|
|
-
|
Other expense,
net
|
|
(7,901)
|
|
4,092
|
|
-
|
|
-
|
|
-
|
|
(3,809)
|
Interest
expense, net
|
|
(229,083)
|
|
4,074
|
|
-
|
|
-
|
|
-
|
|
(225,009)
|
Total
non-operating expenses
|
|
(310,388)
|
|
8,166
|
|
73,404
|
|
-
|
|
-
|
|
(228,818)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) before provision for income taxes
|
|
48,230
|
|
230,214
|
|
73,404
|
|
18,208
|
|
1,431
|
|
371,487
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
income taxes (a)
|
|
51,781
|
|
81,901
|
|
13,574
|
|
5,180
|
|
262
|
|
152,698
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
(3,551)
|
|
148,313
|
|
59,830
|
|
13,028
|
|
1,169
|
|
218,789
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net
income attributable to non-controlling interests
|
|
16,527
|
|
50
|
|
-
|
|
-
|
|
-
|
|
16,577
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income attributable to IGT PLC
|
|
(20,078)
|
|
148,263
|
|
59,830
|
|
13,028
|
|
1,169
|
|
202,212
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income per common share - diluted
|
|
(0.10)
|
|
|
|
|
|
|
|
|
|
1.00
|
Weighted-average shares -
diluted
|
|
200,840
|
|
|
|
|
|
|
|
|
|
201,547
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Provision
for (benefit from) income taxes was determined based on the
statutory tax rate in effect in the respective jurisdiction where
the adjustment originated.
|
International Game Technology
PLC
|
Consolidated
Statement of Operations
|
Reconciliation of Non-GAAP Financial
Measures
|
($ and
shares in thousands, except share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year to
date
|
|
Adjustments
|
|
Year to
date
|
|
|
|
Year to
date
|
|
|
June
2015
|
|
|
|
|
|
|
|
Transaction
|
|
June
2015
|
|
|
|
June
2015
|
|
|
As
|
|
Purchase
|
|
Foreign
|
|
Restructuring
|
|
and
Refinancing
|
|
As
|
|
Pro
Forma
|
|
Pro
|
|
|
Reported
|
|
Accounting
|
|
Exchange
|
|
Expense
|
|
Expense
|
|
Adjusted
|
|
Adjustments
|
|
Forma
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
2,122,526
|
|
11,648
|
|
-
|
|
-
|
|
-
|
|
2,134,174
|
|
399,387
|
|
2,533,561
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services
|
|
1,123,383
|
|
(56,664)
|
|
-
|
|
-
|
|
-
|
|
1,066,719
|
|
113,306
|
|
1,180,025
|
Cost of
sales
|
|
212,342
|
|
(32,228)
|
|
-
|
|
-
|
|
-
|
|
180,114
|
|
63,355
|
|
243,469
|
Selling,
general and administrative
|
|
327,767
|
|
(34,576)
|
|
-
|
|
-
|
|
-
|
|
293,191
|
|
134,166
|
|
427,357
|
Research and
development
|
|
106,985
|
|
(1,129)
|
|
-
|
|
-
|
|
-
|
|
105,856
|
|
62,760
|
|
168,616
|
Restructuring
expense
|
|
30,299
|
|
-
|
|
-
|
|
(30,299)
|
|
-
|
|
-
|
|
-
|
|
-
|
Transaction
expense, net
|
|
43,394
|
|
-
|
|
-
|
|
-
|
|
(43,394)
|
|
-
|
|
-
|
|
-
|
Total
operating expenses
|
|
1,844,170
|
|
(124,597)
|
|
-
|
|
(30,299)
|
|
(43,394)
|
|
1,645,880
|
|
373,587
|
|
2,019,467
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
278,356
|
|
136,245
|
|
-
|
|
30,299
|
|
43,394
|
|
488,294
|
|
25,800
|
|
514,094
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
exchange loss, net
|
|
(95,341)
|
|
-
|
|
95,341
|
|
-
|
|
-
|
|
-
|
|
|
|
|
Other (expense)
income, net
|
|
(119,714)
|
|
6,250
|
|
-
|
|
-
|
|
117,252
|
|
3,788
|
|
|
|
|
Interest
expense, net
|
|
(208,687)
|
|
(20)
|
|
-
|
|
-
|
|
-
|
|
(208,707)
|
|
|
|
|
Total
non-operating expenses
|
|
(423,742)
|
|
6,230
|
|
95,341
|
|
-
|
|
117,252
|
|
(204,919)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)
income before provision for income taxes
|
|
(145,386)
|
|
142,475
|
|
95,341
|
|
30,299
|
|
160,646
|
|
283,375
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
income taxes (a)
|
|
2,540
|
|
51,146
|
|
21,556
|
|
9,182
|
|
40,600
|
|
125,024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
(147,926)
|
|
91,329
|
|
73,785
|
|
21,117
|
|
120,046
|
|
158,351
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net
income attributable to non-controlling interests
|
|
8,281
|
|
51
|
|
-
|
|
-
|
|
-
|
|
8,332
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income attributable to IGT PLC
|
|
(156,207)
|
|
91,278
|
|
73,785
|
|
21,117
|
|
120,046
|
|
150,019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income per common share - diluted
|
|
(0.84)
|
|
|
|
|
|
|
|
|
|
0.81
|
|
|
|
|
Weighted-average shares -
diluted
|
|
185,007
|
|
|
|
|
|
|
|
|
|
186,179
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
Provision for (benefit from) income taxes
was determined based on the statutory tax rate in effect in the
respective jurisdiction where the adjustment
originated.
|
International Game
Technology PLC
|
Adjusted EBITDA
and Free Cash Flow
|
Reconciliations of
Non-GAAP Financial Measures
|
($
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended
|
|
|
June 30,
|
|
|
2016
|
|
2015
|
|
|
|
|
|
Net income
(loss)
|
|
82,898
|
|
(112,335)
|
Provision for income
taxes
|
|
60,439
|
|
11,599
|
Non-operating
expenses
|
|
27,384
|
|
216,236
|
Amortization
|
|
127,578
|
|
118,763
|
Depreciation
|
|
100,364
|
|
92,687
|
Amortization of
upfront payments to customers
|
|
27,769
|
|
27,033
|
Stock-based
compensation expense
|
|
7,732
|
|
5,109
|
Restructuring
expense
|
|
6,438
|
|
15,818
|
Impairment
loss
|
|
2,352
|
|
-
|
Non-cash purchase
accounting (excluding D&A)
|
|
224
|
|
19,372
|
Transaction (income)
expense, net
|
|
(43)
|
|
32,344
|
Adjusted
EBITDA
|
|
443,135
|
|
426,626
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
318,202
|
|
163,302
|
Capital
expenditures
|
|
(121,961)
|
|
(95,452)
|
Upfront payments to
customers
|
|
(390,390)
|
|
-
|
Free Cash
Flow
|
|
(194,149)
|
|
67,850
|
International Game
Technology PLC Segment Performance
|
|
|
|
|
Revenue
Detail
|
|
|
|
|
|
($
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTERNATIONAL GAME
TECHNOLOGY PLC
|
|
Quarter
Change
|
|
|
|
|
2015
|
2016
|
|
Percentage
|
Constant
FX
|
|
|
|
|
Q2
|
Q2
|
|
Q2
|
Q2
|
Gaming
|
|
Total
Revenue
|
670
|
663
|
|
-1.1%
|
-0.4%
|
|
|
|
|
|
|
|
|
|
Gaming
Services
|
474
|
495
|
|
4.5%
|
5.3%
|
|
|
Terminal
|
322
|
320
|
|
-0.7%
|
-0.2%
|
|
|
Social
(DDI)
|
73
|
72
|
|
-0.9%
|
-1.0%
|
|
|
Other
|
78
|
102
|
|
30.7%
|
33.7%
|
|
|
|
|
|
|
|
|
|
Product
Sales
|
197
|
168
|
|
-14.5%
|
-13.9%
|
|
|
Terminal
|
143
|
106
|
|
-26.2%
|
-25.7%
|
|
|
Other
|
54
|
63
|
|
16.8%
|
17.5%
|
|
|
|
|
|
|
|
|
|
Lottery
|
|
Total
Revenue
|
524
|
546
|
|
4.3%
|
4.6%
|
|
|
|
|
|
|
|
|
|
Lottery
Services
|
481
|
519
|
|
7.9%
|
8.3%
|
|
|
FM/Concessions
|
424
|
458
|
|
7.9%
|
8.1%
|
|
|
LMA
|
38
|
39
|
|
3.4%
|
3.4%
|
|
|
Other
Services
|
19
|
22
|
|
16.3%
|
20.5%
|
|
|
|
|
|
|
|
|
|
Product
Sales
|
43
|
27
|
|
-36.4%
|
-36.0%
|
|
|
Terminal
|
21
|
8
|
|
-60.2%
|
-59.7%
|
|
|
Systems/Other
|
22
|
19
|
|
-13.3%
|
-13.1%
|
|
|
|
|
|
|
|
|
|
Other
|
|
Total
Revenue
|
80
|
76
|
|
-5.0%
|
-3.7%
|
|
|
|
|
|
|
|
|
|
Service
Revenue
|
80
|
76
|
|
-5.0%
|
-3.8%
|
|
Product
Sales
|
0
|
0
|
|
-10.3%
|
31.5%
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
Revenue
|
1,274
|
1,285
|
|
0.9%
|
1.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income:
|
|
|
|
|
|
|
|
Segment
Total
|
331
|
338
|
|
2.2%
|
2.5%
|
|
|
Purchase
Accounting
|
(120)
|
(111)
|
|
-7.5%
|
-7.5%
|
|
|
Corporate
Support
|
(96)
|
(57)
|
|
-40.6%
|
-39.4%
|
|
|
Total
|
116
|
171
|
|
47.8%
|
47.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NORTH AMERICA
GAMING & INTERACTIVE
|
|
Quarter
Change
|
|
|
|
|
2015
|
2016
|
|
Percentage
|
Constant
FX
|
|
|
|
|
Q2
|
Q2
|
|
Q2
|
Q2
|
Gaming
|
|
Total
Revenue
|
353
|
350
|
|
-1.0%
|
-0.9%
|
|
|
|
|
|
|
|
|
|
Gaming
Services
|
237
|
246
|
|
3.7%
|
3.7%
|
|
|
Terminal
|
140
|
132
|
|
-6.0%
|
-5.8%
|
|
|
Social
(DDI)
|
73
|
72
|
|
-0.9%
|
-1.0%
|
|
|
Other
|
24
|
42
|
|
73.1%
|
73.2%
|
|
|
|
|
|
|
|
|
|
Product
Sales
|
116
|
104
|
|
-10.5%
|
-10.2%
|
|
|
Terminal
|
84
|
64
|
|
-23.9%
|
-23.7%
|
|
|
Other
|
32
|
40
|
|
24.5%
|
24.8%
|
|
|
|
|
|
|
|
|
|
Total
|
|
Revenue
|
353
|
350
|
|
-1.0%
|
-0.9%
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
96
|
87
|
|
-9.0%
|
-13.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
NORTH AMERICA
LOTTERY
|
|
Quarter
Change
|
|
|
|
|
2015
|
2016
|
|
Percentage
|
Constant
FX
|
|
|
|
|
Q2
|
Q2
|
|
Q2
|
Q2
|
Gaming
|
|
Total
Revenue
|
37
|
37
|
|
-0.8%
|
1.0%
|
|
|
|
|
|
|
|
|
|
Gaming
Services
|
37
|
37
|
|
0.2%
|
2.0%
|
|
|
Terminal
|
25
|
26
|
|
3.0%
|
3.0%
|
|
|
Social
(DDI)
|
0
|
0
|
|
0.0%
|
0.0%
|
|
|
Other
|
12
|
12
|
|
-5.4%
|
0.1%
|
|
|
|
|
|
|
|
|
|
Product
Sales
|
0
|
0
|
|
-82.9%
|
-82.9%
|
|
|
Terminal
|
0
|
0
|
|
-91.9%
|
-91.9%
|
|
|
Other
|
0
|
0
|
|
-81.1%
|
-81.1%
|
|
|
|
|
|
|
|
|
|
Lottery
|
|
Total
Revenue
|
233
|
249
|
|
7.1%
|
7.1%
|
|
|
|
|
|
|
|
|
|
Lottery
Services
|
216
|
230
|
|
6.4%
|
6.4%
|
|
|
FM/Concessions
|
154
|
163
|
|
6.1%
|
6.1%
|
|
|
LMA
|
38
|
39
|
|
3.4%
|
3.4%
|
|
|
Other
Services
|
25
|
28
|
|
13.2%
|
13.2%
|
|
|
|
|
|
|
|
|
|
Product
Sales
|
17
|
19
|
|
15.4%
|
15.5%
|
|
|
Terminal
|
5
|
8
|
|
66.1%
|
66.1%
|
|
|
Systems/Other
|
12
|
11
|
|
-4.6%
|
-4.5%
|
|
|
|
|
|
|
|
|
|
Total
|
|
Revenue
|
270
|
286
|
|
6.0%
|
6.2%
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
47
|
62
|
|
30.9%
|
31.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
INTERNATIONAL
|
|
Quarter
Change
|
|
|
|
|
2015
|
2016
|
|
Percentage
|
Constant
FX
|
|
|
|
|
Q2
|
Q2
|
|
Q2
|
Q2
|
Gaming
|
|
Total
Revenue
|
134
|
110
|
|
-17.8%
|
-13.9%
|
|
|
|
|
|
|
|
|
|
Gaming
Services
|
50
|
46
|
|
-8.3%
|
0.4%
|
|
|
Terminal
|
15
|
13
|
|
-16.6%
|
0.5%
|
|
|
Social
(DDI)
|
0
|
0
|
|
0.0%
|
0.0%
|
|
|
Other
|
35
|
34
|
|
-4.8%
|
0.3%
|
|
|
|
|
|
|
|
|
|
Product
Sales
|
84
|
64
|
|
-23.5%
|
-22.5%
|
|
|
Terminal
|
59
|
42
|
|
-29.4%
|
-28.5%
|
|
|
Other
|
25
|
22
|
|
-9.5%
|
-8.3%
|
|
|
|
|
|
|
|
|
|
Lottery
|
|
Total
Revenue
|
94
|
79
|
|
-16.1%
|
-12.1%
|
|
|
|
|
|
|
|
|
|
Lottery
Services
|
67
|
70
|
|
4.4%
|
9.9%
|
|
|
FM/Concessions
|
51
|
53
|
|
3.9%
|
9.9%
|
|
|
LMA
|
0
|
0
|
|
0.0%
|
0.0%
|
|
|
Other
Services
|
17
|
18
|
|
6.1%
|
9.8%
|
|
|
|
|
|
|
|
|
|
Product
Sales
|
26
|
8
|
|
-69.0%
|
-68.4%
|
|
|
Terminal
|
16
|
1
|
|
-96.3%
|
-95.6%
|
|
|
Systems/Other
|
10
|
8
|
|
-23.8%
|
-23.4%
|
|
|
|
|
|
|
|
|
|
Other
|
|
Total
Revenue
|
19
|
18
|
|
-4.1%
|
3.9%
|
|
|
|
|
|
|
|
|
|
Service
Revenue
|
19
|
18
|
|
-4.0%
|
3.5%
|
|
Product
Sales
|
0
|
0
|
|
-10.3%
|
31.5%
|
|
|
|
|
|
|
|
|
|
Total
|
|
Revenue
|
247
|
207
|
|
-16.1%
|
-11.8%
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
47
|
28
|
|
-39.1%
|
-26.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
ITALY
|
|
Quarter
Change
|
|
|
|
|
2015
|
2016
|
|
Percentage
|
Constant
FX
|
|
|
|
|
Q2
|
Q2
|
|
Q2
|
Q2
|
Gaming
|
|
Total
Revenue
|
157
|
166
|
|
5.6%
|
4.8%
|
|
|
|
|
|
|
|
|
|
Gaming
Services
|
157
|
166
|
|
5.8%
|
4.9%
|
|
|
Terminal
|
142
|
150
|
|
5.6%
|
4.7%
|
|
|
Social
(DDI)
|
0
|
0
|
|
0.0%
|
0.0%
|
|
|
Other
|
15
|
16
|
|
7.6%
|
6.9%
|
|
|
|
|
|
|
|
|
|
Product
Sales
|
1
|
0
|
|
-48.1%
|
-47.9%
|
|
|
Terminal
|
0
|
0
|
|
-100.0%
|
-100.0%
|
|
|
Other
|
0
|
0
|
|
-40.2%
|
-39.9%
|
|
|
|
|
|
|
|
|
|
Lottery
|
|
Total
Revenue
|
197
|
219
|
|
10.7%
|
9.7%
|
|
|
|
|
|
|
|
|
|
Lottery
Services
|
197
|
219
|
|
10.7%
|
9.7%
|
|
|
FM/Concessions
|
220
|
242
|
|
10.1%
|
9.1%
|
|
|
LMA
|
0
|
0
|
|
0.0%
|
0.0%
|
|
|
Other
Services
|
(22)
|
(23)
|
|
5.1%
|
4.2%
|
|
|
|
|
|
|
|
|
|
Product
Sales
|
0
|
0
|
|
|
|
|
|
Terminal
|
0
|
0
|
|
|
|
|
|
Systems/Other
|
0
|
0
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
Total
Revenue
|
61
|
58
|
|
-5.3%
|
-6.1%
|
|
|
|
|
|
|
|
|
|
Service
Revenue
|
61
|
58
|
|
-5.3%
|
-6.1%
|
|
Product
Sales
|
0
|
0
|
|
0.0%
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Revenue
|
416
|
443
|
|
6.4%
|
5.5%
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
141
|
161
|
|
13.9%
|
13.0%
|
|
|
|
|
|
|
|
|
|
Key Performance
Indicators (KPIs)
|
|
|
|
|
|
|
Consolidated Key
Performance Indicators (KPIs)
|
|
|
|
|
|
Second
Quarter
|
|
Periods Ended June
30
|
2016
|
2015
|
%
change
|
|
|
|
|
|
|
Installed base
(end of period)
|
|
|
|
|
Casino
|
33,399
|
35,332
|
-5.5%
|
|
VLT -
Government Sponsored (ex-Italy)
|
15,605
|
16,231
|
-3.9%
|
|
VLT -
Italy Supplier (B2B)
|
8,159
|
8,465
|
-3.6%
|
|
Total
installed base
|
57,163
|
60,028
|
-4.8%
|
|
Yield
(average revenue per unit per day - $0.00)
|
32.79
|
34.28
|
-4.3%
|
|
|
|
|
|
|
Additional Italian Network Details:
|
|
|
|
|
VLT -
Operator (B2C)
|
10,995
|
10,988
|
0.1%
|
|
AWP
|
56,300
|
62,156
|
-9.4%
|
|
|
|
|
|
|
Machine units
shipped
|
|
|
|
|
New/Expansion
|
1,447
|
2,187
|
-33.8%
|
|
Replacement
|
6,705
|
7,960
|
-15.8%
|
|
Total
machines shipped
|
8,152
|
10,147
|
-19.7%
|
|
|
|
|
|
|
Global lottery
same-store revenue growth
|
|
|
|
|
Instants
& draw games
|
|
|
3.1%
|
|
Multistate Jackpots
|
|
|
31.1%
|
|
Total
lottery same-store revenue growth (ex-Italy)
|
|
|
6.0%
|
|
Italy
lottery revenue growth
|
|
|
4.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
KPIs
|
|
|
|
|
|
Second
Quarter
|
|
Periods Ended June
30
|
2016
|
2015
|
%
change
|
|
|
|
|
|
|
Installed base
(end of period)
|
|
|
|
|
Casino
|
24,171
|
25,516
|
-5.3%
|
|
VLT - Government Sponsored
|
15,355
|
15,981
|
-3.9%
|
|
Total
installed base
|
39,526
|
41,497
|
-4.7%
|
|
|
|
|
|
|
Machine units
shipped
|
|
|
|
|
New/Expansion
|
1,277
|
974
|
31.1%
|
|
Replacement
|
3,886
|
5,244
|
-25.9%
|
|
Total
machines shipped
|
5,163
|
6,218
|
-17.0%
|
|
|
|
|
|
|
DoubleDown
|
|
|
|
|
Revenue
($ Thousands)
|
72,354
|
73,010
|
-0.9%
|
|
Mobile
penetration
|
54%
|
47%
|
14.9%
|
|
DAU
(Daily Active Users) 1
|
1,668
|
1,839
|
-9.3%
|
|
MAU
(Monthy Active Users) 1
|
4,075
|
4,421
|
-7.8%
|
|
Bookings
per DAU ($0.00) 1
|
$
0.48
|
$
0.45
|
4.8%
|
|
|
|
|
|
|
Lottery same-store
revenue growth
|
|
|
|
|
Instants
& draw games
|
|
|
3.1%
|
|
Multistate Jackpots
|
|
|
40.1%
|
|
Total
lottery same-store revenue growth
|
|
|
7.3%
|
|
|
|
|
|
|
|
|
|
|
|
1As a
single application with multiple games, active users equal unique
users
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
KPIs
|
|
|
|
|
|
Second
Quarter
|
|
Periods Ended June
30
|
2016
|
2015
|
%
change
|
|
|
|
|
|
|
Installed base
(end of period)
|
|
|
|
|
Casino
|
9,228
|
9,816
|
-6.0%
|
|
VLT - Government Sponsored
|
250
|
250
|
0.0%
|
|
Total
installed base
|
9,478
|
10,066
|
-5.8%
|
|
|
|
|
|
|
Machine units
shipped
|
|
|
|
|
New/Expansion
|
170
|
1,213
|
-86.0%
|
|
Replacement
|
2,819
|
2,716
|
3.8%
|
|
Total
machines shipped
|
2,989
|
3,929
|
-23.9%
|
|
|
|
|
|
|
Lottery same-store
revenue growth
|
|
|
|
|
Instants
& draw games
|
|
|
3.3%
|
|
Multistate Jackpots
|
|
|
-10.5%
|
|
Total
lottery same-store revenue growth
|
|
|
2.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Italy
KPIs
|
|
|
|
|
|
Second
Quarter
|
|
Periods Ended June
30
|
2016
|
2015
|
%
change
|
|
(In € millions,
except machines)
|
|
|
|
|
Lottery
|
|
|
|
|
Lotto
wagers
|
2,056
|
1,728
|
19.0%
|
|
10eLotto
|
1,191
|
1,056
|
12.7%
|
|
Core
|
542
|
566
|
-4.3%
|
|
Late
Numbers
|
324
|
106
|
206.5%
|
|
|
|
|
|
|
Scratch & Win
Wagers
|
2,200
|
2,215
|
-0.7%
|
|
|
|
|
|
|
Italy lottery
revenue growth
|
|
|
4.9%
|
|
|
|
|
|
|
Gaming
|
|
|
|
|
Installed base
(end of period)
|
|
|
|
|
VLT -
Operator (B2C)
|
10,995
|
10,988
|
0.1%
|
|
VLT -
Supplier (B2B)
|
8,159
|
8,465
|
-3.6%
|
|
AWP
|
56,300
|
62,156
|
-9.4%
|
|
Total
Installed Base
|
75,454
|
81,609
|
-7.5%
|
|
|
|
|
|
|
Wagers
|
|
|
|
|
VLT -
Operator (B2C)
|
1,324
|
1,306
|
1.4%
|
|
AWP
|
1,034
|
1,072
|
-3.5%
|
|
Interactive Wagers (Gaming)
|
398
|
414
|
-3.8%
|
|
|
|
|
|
|
Other
|
|
|
|
|
Sports
Betting Wagers1
|
206
|
205
|
0.6%
|
|
Sports
Betting Payout (%)1
|
86.5%
|
82.9%
|
3.6
pp
|
|
|
|
|
|
|
1Includes Virtual Wagers and Pools
& Horses
|
Logo - http://photos.prnewswire.com/prnh/20150406/196736LOGO
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visit:http://www.prnewswire.com/news-releases/international-game-technology-plc-reports-second-quarter-2016-results-300305408.html
SOURCE International Game Technology PLC