LONDON, May 20, 2019 /PRNewswire/ -- International Game
Technology PLC ("IGT") (NYSE:IGT) today reported financial results
for the first quarter ended March 31,
2019. Today, at 8:00 a.m. EDT,
management will host a conference call and webcast to present the
first quarter results; access details are provided below.
"Our first quarter results confirm the consistent growth profile
of our global lottery business and the progress we've made in sales
of gaming machines, where global unit shipments increased 20%,"
said Marco Sala, CEO of IGT.
"The results of our Italy
operations are also noteworthy, with further growth in lottery and
resilient machine gaming performance. As we look to the future, our
focus remains on improving revenue and profits from gaming
activities, innovating with new lottery games and technologies, and
pursuing emerging growth opportunities."
"First quarter revenue and adjusted EBITDA were stable at
constant currency, thanks to important contributions from our
Italy and North America Lottery
segments," said Alberto Fornaro,
CFO of IGT. "Operating expenses were well controlled, our
financial condition is solid, and we are maintaining our financial
outlook for the year."
Overview of Consolidated First Quarter 2019 Results
|
|
|
Constant
|
|
Quarter
Ended
|
Y/Y
|
Currency
|
|
March
31,
|
Change
|
Change
|
|
2019
|
2018
|
(%)
|
(%)
|
|
|
|
|
|
(In $ millions,
unless otherwise noted)
|
|
|
|
|
Revenue
|
1,145
|
1,207
|
-5%
|
-1%
|
Operating
income
|
178
|
197
|
-10%
|
-4%
|
Net income/(loss) per
diluted share
|
$0.20
|
($0.51)
|
NM
|
|
Adjusted
EBITDA
|
417
|
436
|
-4%
|
0%
|
Adjusted operating
income
|
230
|
251
|
-8%
|
-4%
|
Adjusted net income
per diluted share
|
$0.12
|
$0.15
|
-20%
|
|
Net
debt
|
7,714
|
7,525
|
3%
|
|
|
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.
|
Consolidated revenue of $1.14
billion, stable at constant currency
- 20% increase in global gaming machine unit shipments
- Stable lottery revenue
- Offset by increased gaming machine taxes in Italy and lower gaming systems sales
Adjusted EBITDA of $417 million,
stable at constant currency
- Strong Italy and North America
Lottery performance
- Selling, general and administrative expenses and research and
development costs better than the prior-year period despite higher
legal costs
Adjusted operating income was $230
million, down 4% at constant currency
- Higher depreciation associated with upgrading the gaming
installed base and lottery contract wins and extensions
Interest expense, net was $103
million compared to $107
million in the prior-year quarter
Provision for income taxes was $53
million compared to $61
million in the prior-year period
Net income attributable to IGT was $40
million in the quarter; adjusted net income attributable to
IGT was $24 million
Net income per diluted share of $0.20; adjusted net income per diluted share of
$0.12
Net debt of $7.71 billion, down
from $7.76 billion at December 31, 2018
Operating Segment Review
North America Gaming & Interactive
Select Financial
Data
|
|
|
Constant
|
|
Key Performance
Indicators
|
|
|
%
|
Period Ended March
31
|
Q1
'19
|
Q1
'18
|
FX
|
|
Period Ended March
31
|
Q1
'19
|
Q1
'18
|
Change
|
Gaming
|
|
Total
revenue
|
239
|
243
|
-2%
|
|
Installed base
units (end of period)
|
|
|
|
|
Gaming
services
|
155
|
154
|
1%
|
|
Casino
|
22,713
|
23,183
|
-2.0%
|
|
|
Terminal
|
100
|
105
|
-5%
|
|
|
|
|
|
|
|
Other
|
55
|
49
|
13%
|
|
Machine units
shipped
|
|
|
|
|
Product
sales
|
84
|
89
|
-6%
|
|
New/expansion
|
1,482
|
1,024
|
44.7%
|
|
|
Terminal
|
63
|
50
|
28%
|
|
Replacement
|
2,544
|
2,692
|
-5.5%
|
|
|
Other
|
21
|
40
|
-47%
|
|
Total
machines shipped
|
4,026
|
3,716
|
8.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
Total
revenue
|
1
|
0
|
NM
|
|
|
|
|
|
|
Service
revenue
|
1
|
0
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Revenue
|
240
|
244
|
-1%
|
|
|
|
|
|
|
Operating
income
|
49
|
57
|
-20%
|
|
|
|
|
|
Revenue of $240 million, stable
with the prior year at constant currency
- Gaming service revenue of $155
million, stable compared to the prior year
-
- Terminal service revenue reflects decline in installed base and
lower average yields due to product mix
- Increase in other service revenue from a large, multi-year
poker contract
- Product sales revenue of $84
million
-
- Strong 28% increase in terminal revenue at constant currency
resulting from 8% increase in gaming machine units shipped at
higher average selling prices
-
- Current quarter new/expansion units include shipments to Encore
Boston Harbor
- Replacement units declined slightly due to fewer VLT unit
shipments
- Decline in other product sales revenue driven by comparison
with exceptionally high sales of systems in the prior year
Operating income of $49 million
compared to $57 million in the
prior-year quarter
- Higher depreciation related to upgrading the installed
base
- Lower sales of high-margin systems
- Stable operating expenses
North America Lottery
Select Financial
Data
|
|
|
Constant
|
|
Key Performance
Indicators
|
|
|
%
|
Period Ended March
31
|
Q1
'19
|
Q1
'18
|
FX
|
|
Period Ended March
31
|
Q1
'19
|
Q1
'18
|
Change
|
Gaming
|
|
Total
revenue
|
41
|
38
|
10%
|
|
Installed base
units (end of period)
|
|
|
|
|
Gaming
services
|
41
|
38
|
9%
|
|
VLT - Government sponsored
|
14,799
|
15,101
|
-2.0%
|
|
|
Terminal
|
25
|
25
|
2%
|
|
|
|
|
|
|
|
Other
|
16
|
13
|
22%
|
|
Lottery same-store
revenue growth
|
|
|
|
|
Product
sales
|
0
|
0
|
0%
|
|
Instant
ticket & draw games
|
|
|
5.2%
|
|
|
|
|
|
|
|
|
Multistate jackpots
|
|
|
-9.3%
|
Lottery
|
|
Total
revenue
|
255
|
257
|
-1%
|
|
Total
lottery same-store revenue growth
|
|
2.8%
|
|
Lottery
services
|
241
|
241
|
0%
|
|
|
|
|
|
|
|
FMC
|
209
|
205
|
2%
|
|
|
|
|
|
|
|
Instant ticket
& draw games
|
170
|
176
|
-4%
|
|
|
|
|
|
|
|
Other
services
|
39
|
29
|
34%
|
|
|
|
|
|
|
|
LMA
|
32
|
36
|
-10%
|
|
|
|
|
|
|
Product
sales
|
14
|
16
|
-12%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Revenue
|
296
|
295
|
0%
|
|
|
|
|
|
|
Operating
income
|
76
|
76
|
0%
|
|
|
|
|
|
Revenue of $296 million, stable
with the prior-year period
- Lottery service revenue of $241
million, in line with the prior year
-
- Overall same-store revenue growth driven by instant ticket and
draw games; difficult comparison with elevated jackpot activity in
the prior year
- Recovery of certain service level agreement provisions incurred
previously, partially offset by lower revenue in Illinois
- LMA impacted by timing of pass-through revenue with no
associated profit
- Lottery product sales revenue of $14
million
-
- Large Massachusetts retailer
terminal sales in the prior year
- Gaming service revenue of $41
million
-
- Growth from interactive jackpot game in Canada
Operating income of $76 million,
stable with the prior-year period
- Service level agreement recoveries and disciplined cost control
offset higher profit flow-through from elevated jackpot activity in
prior year
- Despite increased depreciation related to contract wins and
extensions
International
Select Financial
Data
|
|
|
Constant
|
|
Key Performance
Indicators
|
|
|
%
|
Period Ended March
31
|
Q1
'19
|
Q1
'18
|
FX
|
|
Period Ended March
31
|
Q1
'19
|
Q1
'18
|
Change
|
Gaming
|
|
Total
revenue
|
81
|
91
|
-5%
|
|
Installed base
units (end of period)
|
|
|
|
|
Gaming
services
|
30
|
40
|
-15%
|
|
Casino
|
10,666
|
12,917
|
-17.4%
|
|
|
Terminal
|
12
|
14
|
-1%
|
|
VLT - Government sponsored
|
4,419
|
2,937
|
50.5%
|
|
|
Other
|
18
|
25
|
-23%
|
|
Total
installed base units
|
15,085
|
15,854
|
-4.9%
|
|
Product
sales
|
51
|
51
|
4%
|
|
|
|
|
|
|
|
Terminal
|
35
|
30
|
22%
|
|
Machine units
shipped
|
|
|
|
|
|
Other
|
15
|
21
|
-22%
|
|
New/expansion
|
382
|
91
|
319.8%
|
|
|
|
|
|
|
|
|
Replacement
|
2,593
|
2,021
|
28.3%
|
Lottery
|
|
Total
revenue
|
74
|
74
|
5%
|
|
Total
machines shipped
|
2,975
|
2,112
|
40.9%
|
|
Lottery
services
|
70
|
72
|
3%
|
|
|
|
|
|
|
|
FMC
|
70
|
72
|
3%
|
|
Lottery same-store
revenue growth
|
|
|
|
|
|
Instant ticket
& draw games
|
56
|
57
|
4%
|
|
Instant
ticket & draw games
|
|
|
3.4%
|
|
|
Other
services
|
14
|
15
|
-4%
|
|
Multistate jackpots
|
|
|
8.2%
|
|
Product
sales
|
4
|
3
|
76%
|
|
Total
lottery same-store revenue growth
|
|
3.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
Total
revenue
|
17
|
19
|
-4%
|
|
|
|
|
|
|
Service
revenue
|
17
|
19
|
-4%
|
|
|
|
|
|
|
Product
sales
|
0
|
0
|
-31%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Revenue
|
172
|
184
|
-1%
|
|
|
|
|
|
|
Operating
income
|
14
|
22
|
-22%
|
|
|
|
|
|
Revenue of $172 million, stable
with the prior year at constant currency
- Lottery service revenue of $70
million, up 3% at constant currency
-
- 3.7% same-store revenue growth with broad-based expansion
across games and geographies
- Gaming service revenue was $30
million compared to $40
million in the prior year
-
- Lower interactive revenue and reduced contribution from
installed base
- Decline in installed base year-over-year due to large
conversions in the prior year, partially offset by continued
expansion of Greece VLTs; sequential increase in the installed
base
- Gaming product sales revenue of $51
million, up 4% at constant currency
-
- 22% rise in terminal revenue with growth in both new/expansion
and replacement units partially offset by lower ASPs
- Decline in other product sales revenue primarily driven by
higher system sales in the prior year
Operating income of $14
million
- Includes $5 million settlement
cost associated with lottery contract
- Large, high-margin system sale in the prior year
Italy
Select Financial
Data
|
|
|
Constant
|
|
Key Performance
Indicators
|
|
|
%
|
Period Ended March
31
|
Q1
'19
|
Q1
'18
|
FX
|
|
Period Ended March
31
|
Q1
'19
|
Q1
'18
|
Change
|
Gaming
|
|
Total
revenue
|
153
|
191
|
-13%
|
|
(In € millions,
except machines)
|
|
|
|
|
Gaming
services
|
153
|
190
|
-13%
|
|
Lottery
|
|
|
|
|
|
Terminal
|
137
|
172
|
-14%
|
|
Lotto
wagers
|
2,142
|
2,034
|
5.3%
|
|
|
Other
|
16
|
18
|
-4%
|
|
10eLotto
|
1,544
|
1,451
|
6.4%
|
|
Product
sales
|
0
|
0
|
0%
|
|
Core
|
501
|
504
|
-0.4%
|
|
|
|
|
|
|
|
|
Late
numbers
|
47
|
45
|
2.7%
|
Lottery
|
|
Total
revenue
|
204
|
214
|
3%
|
|
MillionDAY
|
50
|
34
|
45.8%
|
|
Lottery
services
|
204
|
214
|
3%
|
|
|
|
|
|
|
|
FMC
|
204
|
214
|
3%
|
|
Scratch & Win
wagers
|
2,386
|
2,408
|
-0.9%
|
|
|
Instant ticket
& draw games
|
252
|
266
|
3%
|
|
|
|
|
|
|
|
Other
services
|
(49)
|
(52)
|
0%
|
|
Italy lottery
revenue growth
|
|
|
3.2%
|
|
Product
sales
|
0
|
0
|
0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gaming
|
|
|
|
Other
|
|
Total
revenue
|
80
|
79
|
9%
|
|
Installed base
(end of period)
|
|
|
|
|
Service
revenue
|
80
|
79
|
9%
|
|
VLT -
Operator (B2C)
|
10,995
|
10,931
|
0.6%
|
|
Product
sales
|
0
|
0
|
0%
|
|
VLT -
Supplier (B2B)
|
7,847
|
8,425
|
-6.9%
|
|
|
|
|
|
|
|
|
AWP
|
40,746
|
51,315
|
-20.6%
|
Total
|
|
Revenue
|
437
|
483
|
-2%
|
|
Total
installed base
|
59,588
|
70,671
|
-15.7%
|
|
Operating
income
|
147
|
147
|
9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wagers
|
|
|
|
|
|
|
|
|
|
|
|
VLT -
Operator (B2C)
|
1,503
|
1,441
|
4.3%
|
|
|
|
|
|
|
|
|
AWP
|
939
|
955
|
-1.6%
|
|
|
|
|
|
|
|
|
Interactive wagers (gaming)
|
489
|
493
|
-0.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
Sports
betting wagers (1)
|
274
|
246
|
11.1%
|
|
|
|
|
|
|
|
|
Sports
betting payout (%) (1)
|
83.3%
|
81.2%
|
2.1
pp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
virtual wagers and pools & horses
|
|
|
Revenue of $437 million compared
to $483 million, down 2% at constant
currency
- Lottery service revenue of $204
million, up 3% at constant currency
-
- Lotto wagers up 5.3% on steady growth in 10eLotto
- Scratch & Win wagers reflect one fewer day of sales
year-over-year; exceptional performance from the Multiplier family
of games against the successful Miliardario relaunch in the prior
year
- Gaming service revenue was $153
million compared to $190
million in the prior year, down 13% at constant
currency
-
- Increased taxes on AWP and VLT machines
- Improved productivity of gaming machines; 21% decline in AWP
units results in less than 2% reduction in wagers
- Other service revenue includes pass-through revenue related to
new commercial services offer
Operating income up 9% at constant currency to $147 million
- High profit flow-through on growth in Lotto wagers
- Beneficial shift in timing of expenses
- Despite increased taxes on gaming machines
Other Developments
The Company's Board of Directors declared a quarterly cash dividend
of $0.20 per ordinary share
- Record date of June 3, 2019
- Payment date of June 17,
2019
Outlook
Outlook unchanged
- 2019 adjusted EBITDA $1.70 -
$1.76 billion
- Capital expenditures of $450 -
$550 million
- Assumes a EUR/USD exchange rate of 1.15
Conference Call and Webcast
May 20, 2019, at 8:00 a.m. EDT
Live webcast available under "News, Events & Presentations"
on IGT's Investor Relations website at www.IGT.com; replay
available on the website following the live event
Dial-In Numbers
- US/Canada toll-free dial-in
number is +1 844 842 7999
- Outside the US/Canada
toll-free number is +1 612 979 9887
- Conference ID/confirmation code is 2599793
- A telephone replay of the call will be available for one
week
-
- US/Canada replay number is +1
855 859 2056
- Outside the US/Canada replay
number is +1 404 537 3406
- ID/Confirmation code is 2599793
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 2019 are
calculated using the same foreign exchange rates as the
corresponding 2018 period. Management uses non-GAAP financial
measures to understand and compare operating results across
accounting periods, for internal budgeting and forecasting
purposes, and to evaluate the Company's financial performance.
Management believes these non-GAAP financial measures reflect the
Company's ongoing business in a manner that allows for meaningful
period-to-period comparisons and analysis of business trends. These
constant currency changes and non-GAAP financial measures should
however be viewed in addition to, and not as an alternative for,
the Company's reported results prepared in accordance with U.S.
GAAP.
About IGT
IGT (NYSE:IGT) is the global leader in gaming. We enable players to
experience their favorite games across all channels and regulated
segments, from Gaming Machines and Lotteries to Digital 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 its
consolidated subsidiaries (the "Company") 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 the Company 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 speak only as of the date on which
such statements are made and are subject to various risks and
uncertainties, many of which are outside the Company's control.
Should one or more of these risks or uncertainties materialize, or
should any of the underlying assumptions prove incorrect, actual
results may differ materially from those predicted in the
forward-looking statements and from past results, performance, or
achievements. Therefore, you should not place undue reliance on
such statements. Factors that could cause actual results to differ
materially from those in the forward-looking statements include
(but are not limited to) the factors and risks described in the
Company's annual report on Form 20-F for the financial year ended
December 31, 2018 and other documents
filed from time to time with the SEC, which are available on the
SEC's website at www.sec.gov and on the investor relations section
of the Company's website at www.IGT.com. Except as required under
applicable law, the Company does not assume any obligation to
update these forward-looking statements. You should carefully
consider these factors and other risks and uncertainties that
affect the Company's business. All forward-looking statements
contained in this news release are qualified in their entirety by
this cautionary statement.
Contact:
Phil O'Shaughnessy, Global
Communications, toll free in U.S./Canada +1 (844) IGT-7452; outside
U.S./Canada +1 (401) 392-7452
Francesco Luti, +39 3485475493; for
Italian media inquiries
James Hurley, Investor Relations, +1
(401) 392-7190
International Game
Technology PLC
|
Consolidated
Statements of Operations
|
($ and shares
in thousands, except per share amounts)
|
Unaudited
|
|
|
|
|
|
For the three
months ended
|
|
March
31,
|
|
2019
|
|
2018
|
|
|
|
|
Service
revenue
|
991,031
|
|
1,046,951
|
Product
sales
|
153,885
|
|
160,005
|
Total
revenue
|
1,144,916
|
|
1,206,956
|
|
|
|
|
Cost of
services
|
595,327
|
|
618,058
|
Cost of product
sales
|
100,185
|
|
103,351
|
Selling, general and
administrative
|
205,134
|
|
217,289
|
Research and
development
|
66,118
|
|
71,263
|
Total operating
expenses
|
966,764
|
|
1,009,961
|
|
|
|
|
Operating
income
|
178,152
|
|
196,995
|
|
|
|
|
Interest expense,
net
|
(103,069)
|
|
(107,280)
|
Foreign exchange gain
(loss), net
|
58,602
|
|
(96,695)
|
Other (expense)
income, net
|
(498)
|
|
2,981
|
Total
non-operating expenses
|
(44,965)
|
|
(200,994)
|
|
|
|
|
Income (loss)
before provision for income taxes
|
133,187
|
|
(3,999)
|
|
|
|
|
Provision for income
taxes
|
52,692
|
|
60,505
|
|
|
|
|
Net income
(loss)
|
80,495
|
|
(64,504)
|
|
|
|
|
Less: Net income
attributable to non-controlling interests
|
40,241
|
|
38,642
|
|
|
|
|
Net income (loss)
attributable to IGT PLC
|
40,254
|
|
(103,146)
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to IGT PLC per common share - basic
|
0.20
|
|
(0.51)
|
Net income (loss)
attributable to IGT PLC per common share - diluted
|
0.20
|
|
(0.51)
|
|
|
|
|
Weighted-average
shares - basic
|
204,300
|
|
203,597
|
Weighted-average
shares - diluted
|
204,742
|
|
203,597
|
International Game
Technology PLC
|
Consolidated
Balance Sheets
|
($
thousands)
|
Unaudited
|
|
|
|
|
|
March 31,
|
|
December
31,
|
|
2019
|
|
2018
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
290,359
|
|
250,669
|
Restricted cash and
cash equivalents
|
245,235
|
|
261,108
|
Trade and other
receivables, net
|
934,219
|
|
949,085
|
Inventories
|
294,791
|
|
282,698
|
Other current
assets
|
528,581
|
|
504,061
|
Income taxes
receivable
|
35,911
|
|
39,075
|
Total current
assets
|
2,329,096
|
|
2,286,696
|
Systems, equipment
and other assets related to contracts, net
|
1,356,294
|
|
1,404,426
|
Property, plant and
equipment, net
|
143,272
|
|
185,349
|
Operating lease
right-of-use-assets
|
372,619
|
|
-
|
Goodwill
|
5,563,630
|
|
5,580,227
|
Intangible assets,
net
|
1,995,618
|
|
2,044,723
|
Other non-current
assets
|
2,052,822
|
|
2,108,964
|
Deferred income
taxes
|
34,405
|
|
38,117
|
Total non-current
assets
|
11,518,660
|
|
11,361,806
|
Total
assets
|
13,847,756
|
|
13,648,502
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
1,083,965
|
|
1,142,371
|
Other current
liabilities
|
916,564
|
|
816,722
|
Current portion of
long-term debt
|
1,280,928
|
|
-
|
Short-term
borrowings
|
67,969
|
|
34,822
|
Income taxes
payable
|
36,717
|
|
8,209
|
Total current
liabilities
|
3,386,143
|
|
2,002,124
|
Long-term debt, less
current portion
|
6,655,020
|
|
7,977,267
|
Deferred income
taxes
|
439,828
|
|
446,083
|
Income taxes
payable
|
25,654
|
|
25,654
|
Operating lease
liabilities
|
336,658
|
|
-
|
Other non-current
liabilities
|
379,491
|
|
445,445
|
Total non-current
liabilities
|
7,836,651
|
|
8,894,449
|
Total
liabilities
|
11,222,794
|
|
10,896,573
|
Commitments and
contingencies
|
|
|
|
Shareholders'
equity
|
2,624,962
|
|
2,751,929
|
Total liabilities
and shareholders' equity
|
13,847,756
|
|
13,648,502
|
International Game
Technology PLC
|
Consolidated
Statements of Cash Flows
|
($
thousands)
|
Unaudited
|
|
|
|
|
|
For the three
months ended
|
|
|
March
31,
|
|
|
2019
|
|
2018
|
Cash flows from
operating activities
|
|
|
|
|
Net income
(loss)
|
|
80,495
|
|
(64,504)
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
Depreciation
|
|
105,331
|
|
98,087
|
Amortization
|
|
68,084
|
|
68,392
|
Service revenue
amortization
|
|
52,289
|
|
56,650
|
Stock-based
compensation expense
|
|
9,590
|
|
14,178
|
Debt issuance cost
amortization
|
|
5,783
|
|
6,099
|
Deferred income
taxes
|
|
267
|
|
(22,914)
|
Foreign exchange
(gain) loss, net
|
|
(58,602)
|
|
96,695
|
Other non-cash costs,
net
|
|
8,192
|
|
5,529
|
Changes in operating
assets and liabilities, excluding the effects of
acquisitions:
|
|
|
|
Trade and other
receivables
|
|
24,145
|
|
11,968
|
Inventories
|
|
(20,448)
|
|
(11,657)
|
Accounts
payable
|
|
(27,817)
|
|
(35,545)
|
Other assets and
liabilities
|
|
(100,695)
|
|
(145,768)
|
Net cash provided
by operating activities
|
|
146,614
|
|
77,210
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
Capital
expenditures
|
|
(119,185)
|
|
(134,661)
|
Proceeds from sale of
assets
|
|
1,888
|
|
2,473
|
Other
|
|
2,208
|
|
347
|
Net cash used in
investing activities
|
|
(115,089)
|
|
(131,841)
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
Proceeds from
long-term debt
|
|
35,666
|
|
164,681
|
Net proceeds from
short-term borrowings
|
|
33,201
|
|
44,429
|
Capital increase -
non-controlling interests
|
|
333
|
|
-
|
Dividends paid -
non-controlling interests
|
|
(13,439)
|
|
(13,316)
|
Net payments of
financial liabilities
|
|
(44,662)
|
|
(32,702)
|
Principal payments on
long-term debt
|
|
-
|
|
(625,500)
|
Other
|
|
(2,000)
|
|
(825)
|
Net cash provided
by (used in) financing activities
|
|
9,099
|
|
(463,233)
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents, and restricted
cash
|
|
40,624
|
|
(517,864)
|
Effect of exchange
rate changes on cash and cash equivalents, and restricted
cash
|
|
(16,807)
|
|
28,707
|
Cash and cash
equivalents, and restricted cash at the beginning of the
period
|
|
511,777
|
|
1,305,430
|
Cash and cash
equivalents, and restricted cash at the end of the
period
|
|
535,594
|
|
816,273
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Cash Flow Information:
|
|
|
|
|
Interest
paid
|
|
(183,777)
|
|
(227,356)
|
Income taxes
paid
|
|
(18,835)
|
|
(13,691)
|
International Game
Technology PLC
|
Net
Debt
|
($
thousands)
|
Unaudited
|
|
|
|
|
|
|
|
March 31,
|
|
December
31,
|
|
|
2019
|
|
2018
|
|
|
|
|
|
4.125% Senior Secured
Notes due February 2020(2)
|
|
-
|
|
499,167
|
4.750% Senior Secured
Notes due March 2020 (2)
|
|
-
|
|
438,252
|
5.500% Senior Secured
Notes due June 2020 (1)
|
|
27,482
|
|
27,519
|
6.250% Senior Secured
Notes due February 2022 (1)
|
|
1,476,655
|
|
1,469,609
|
4.750% Senior Secured
Notes due February 2023 (2)
|
|
947,070
|
|
964,730
|
5.350% Senior Secured
Notes due October 2023(1)
|
|
60,961
|
|
60,983
|
3.500% Senior Secured
Notes due July 2024 (2)
|
|
556,740
|
|
567,179
|
6.500% Senior Secured
Notes due February 2025 (1)
|
|
1,088,769
|
|
1,088,385
|
6.250% Senior Secured
Notes due January 2027(1)
|
|
742,843
|
|
742,667
|
Senior Secured
Notes, long-term
|
|
4,900,520
|
|
5,858,491
|
|
|
|
|
|
Revolving Credit
Facilities due July 2021 (1) (2)
|
|
439,920
|
|
413,381
|
Term Loan Facilities
due January 2023 (2)
|
|
1,314,580
|
|
1,705,395
|
Long-term debt,
less current portion
|
|
6,655,020
|
|
7,977,267
|
|
|
|
|
|
4.125% Senior Secured
Notes due February 2020 (2)
|
|
490,198
|
|
-
|
4.750% Senior Secured
Notes due March 2020 (2)
|
|
431,210
|
|
-
|
Term Loan Facilities
due January 2023 (2)
|
|
359,520
|
|
-
|
Current portion of
long-term debt
|
|
1,280,928
|
|
-
|
|
|
|
|
|
Short-term
borrowings
|
|
67,969
|
|
34,822
|
Total
debt
|
|
8,003,917
|
|
8,012,089
|
|
|
|
|
|
Less: Cash and cash
equivalents
|
|
290,359
|
|
250,669
|
|
|
|
|
|
Net
debt
|
|
7,713,558
|
|
7,761,420
|
|
(1) U.S.
dollar-denominated debt
|
(2)
Euro-denominated debt
|
|
Note: Net debt is a
non-GAAP financial measure
|
International Game
Technology PLC
|
Adjusted EBITDA
and Free Cash Flow
|
Reconciliations of
Non-GAAP Financial Measures
|
($
thousands)
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended
|
|
|
March 31,
|
|
|
2019
|
|
2018
|
|
|
|
|
|
Net income
(loss)
|
|
80,495
|
|
(64,504)
|
Provision for income
taxes
|
|
52,692
|
|
60,505
|
Non-operating
expenses
|
|
44,965
|
|
200,994
|
Depreciation
|
|
105,331
|
|
98,087
|
Amortization
|
|
68,084
|
|
68,392
|
Service revenue
amortization
|
|
52,289
|
|
56,650
|
Stock-based
compensation expense
|
|
9,590
|
|
14,178
|
Other
|
|
3,227
|
|
1,854
|
Adjusted
EBITDA
|
|
416,673
|
|
436,156
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
146,614
|
|
77,210
|
Capital
expenditures
|
|
(119,185)
|
|
(134,661)
|
Free Cash
Flow
|
|
27,429
|
|
(57,451)
|
International Game Technology
PLC
|
Consolidated
Statement of Operations
|
Reconciliation of Non-GAAP Financial
Measures
|
($ and
shares in thousands, except per share amounts)
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
2019
|
|
Adjustments
|
|
Q1
2019
|
|
|
As
|
|
Purchase
|
|
Foreign
|
|
|
|
As
|
|
|
Reported
|
|
Accounting
|
|
Exchange
|
|
Other
|
|
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
1,144,916
|
|
(178)
|
|
-
|
|
-
|
|
1,144,738
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services
|
|
595,327
|
|
(18,775)
|
|
-
|
|
-
|
|
576,552
|
Cost of product
sales
|
|
100,185
|
|
(3,869)
|
|
-
|
|
-
|
|
96,316
|
Selling,
general and administrative
|
|
205,134
|
|
(26,078)
|
|
-
|
|
(3,297)
|
|
175,759
|
Research and
development
|
|
66,118
|
|
(220)
|
|
-
|
|
-
|
|
65,898
|
Total
operating expenses
|
|
966,764
|
|
(48,942)
|
|
-
|
|
(3,297)
|
|
914,525
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
178,152
|
|
48,764
|
|
-
|
|
3,297
|
|
230,213
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense, net
|
|
(103,069)
|
|
25
|
|
-
|
|
-
|
|
(103,044)
|
Foreign
exchange gain, net
|
|
58,602
|
|
-
|
|
(58,602)
|
|
-
|
|
-
|
Other expense,
net
|
|
(498)
|
|
-
|
|
-
|
|
-
|
|
(498)
|
Total
non-operating expenses
|
|
(44,965)
|
|
25
|
|
(58,602)
|
|
-
|
|
(103,542)
|
|
|
|
|
|
|
|
|
|
|
|
Income
before provision for income taxes
|
|
133,187
|
|
48,789
|
|
(58,602)
|
|
3,297
|
|
126,671
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
income taxes (a)
|
|
52,692
|
|
11,690
|
|
(3,090)
|
|
804
|
|
62,096
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
80,495
|
|
37,099
|
|
(55,512)
|
|
2,493
|
|
64,575
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net
income attributable to non-controlling interests
|
|
40,241
|
|
25
|
|
-
|
|
-
|
|
40,266
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to IGT PLC
|
|
40,254
|
|
37,074
|
|
(55,512)
|
|
2,493
|
|
24,309
|
|
|
|
|
|
|
|
|
|
|
|
Net income
per common share - diluted
|
|
0.20
|
|
|
|
|
|
|
|
0.12
|
Weighted-average shares -
diluted
|
|
204,742
|
|
|
|
|
|
|
|
204,742
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Adjustments
for income taxes are 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 per share amounts)
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
2018
|
|
Adjustments
|
|
Q1
2018
|
|
|
As
|
|
Purchase
|
|
Foreign
|
|
|
|
As
|
|
|
Reported
|
|
Accounting
|
|
Exchange
|
|
Other
|
|
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
1,206,956
|
|
(177)
|
|
-
|
|
-
|
|
1,206,779
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services
|
|
618,058
|
|
(21,155)
|
|
-
|
|
-
|
|
596,903
|
Cost of product
sales
|
|
103,351
|
|
(3,869)
|
|
-
|
|
-
|
|
99,482
|
Selling,
general and administrative
|
|
217,289
|
|
(26,849)
|
|
-
|
|
(2,071)
|
|
188,369
|
Research and
development
|
|
71,263
|
|
(235)
|
|
-
|
|
-
|
|
71,028
|
Total
operating expenses
|
|
1,009,961
|
|
(52,108)
|
|
-
|
|
(2,071)
|
|
955,782
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
196,995
|
|
51,931
|
|
-
|
|
2,071
|
|
250,997
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense, net
|
|
(107,280)
|
|
504
|
|
-
|
|
-
|
|
(106,776)
|
Foreign
exchange loss, net
|
|
(96,695)
|
|
-
|
|
96,695
|
|
-
|
|
-
|
Other income,
net
|
|
2,981
|
|
(2,185)
|
|
-
|
|
-
|
|
796
|
Total
non-operating expenses
|
|
(200,994)
|
|
(1,681)
|
|
96,695
|
|
-
|
|
(105,980)
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)
income before provision for income taxes
|
|
(3,999)
|
|
50,250
|
|
96,695
|
|
2,071
|
|
145,017
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
income taxes (a)
|
|
60,505
|
|
11,910
|
|
2,646
|
|
552
|
|
75,613
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
(64,504)
|
|
38,340
|
|
94,049
|
|
1,519
|
|
69,404
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net
income attributable to non-controlling interests
|
|
38,642
|
|
25
|
|
-
|
|
-
|
|
38,667
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income attributable to IGT PLC
|
|
(103,146)
|
|
38,315
|
|
94,049
|
|
1,519
|
|
30,737
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income per common share - diluted
|
|
(0.51)
|
|
|
|
|
|
|
|
0.15
|
Weighted-average shares - diluted
(b)
|
|
203,597
|
|
|
|
|
|
|
|
204,171
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Adjustments
for income taxes are determined based on the statutory tax rate in
effect in the respective jurisdiction where the adjustment
originated.
|
(b)
Weighted-average shares – diluted, as adjusted, include shares that
were excluded from the as reported computation, due to the net loss
as reported.
|
INTERNATIONAL GAME
TECHNOLOGY PLC
|
|
|
|
|
|
|
|
Select Financial
Data
|
|
|
Constant
|
|
Key Performance
Indicators
|
|
|
%
|
Period Ended March
31
|
Q1
'19
|
Q1
'18
|
FX
|
|
Period Ended March
31
|
Q1
'19
|
Q1
'18
|
Change
|
Gaming
|
|
Total
revenue
|
515
|
563
|
-5%
|
|
Installed base
units (end of period)
|
|
|
|
|
Gaming
services
|
380
|
422
|
-6%
|
|
Casino
|
33,379
|
36,100
|
-7.5%
|
|
|
Terminal
|
275
|
317
|
-9%
|
|
VLT -
Government sponsored (ex-Italy)
|
19,218
|
18,038
|
6.5%
|
|
|
Other
|
105
|
105
|
3%
|
|
VLT -
Italy supplier (B2B)
|
7,847
|
8,425
|
-6.9%
|
|
Product
sales
|
135
|
141
|
-2%
|
|
Total
installed base units
|
60,444
|
62,563
|
-3.4%
|
|
|
Terminal
|
99
|
80
|
25%
|
|
Yield
(average gross revenue per unit per day)
|
$27.19
|
$27.72
|
-1.9%
|
|
|
Other
|
37
|
61
|
-38%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional Italian network details:
|
|
|
|
Lottery
|
|
Total
revenue
|
532
|
546
|
1%
|
|
VLT -
Operator (B2C)
|
10,995
|
10,931
|
0.6%
|
|
Lottery
services
|
514
|
527
|
2%
|
|
AWP
|
40,746
|
51,315
|
-20.6%
|
|
|
FMC
|
481
|
491
|
2%
|
|
|
|
|
|
|
|
Instant ticket
& draw games
|
478
|
500
|
1%
|
|
Machine units
shipped
|
|
|
|
|
|
Other
services
|
4
|
(9)
|
NM
|
|
New/expansion
|
1,864
|
1,115
|
67.2%
|
|
|
LMA
|
32
|
36
|
-10%
|
|
Replacement
|
5,137
|
4,713
|
9.0%
|
|
Product
sales
|
18
|
19
|
0%
|
|
Total
machines shipped
|
7,001
|
5,828
|
20.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
Total
revenue
|
98
|
98
|
8%
|
|
Global lottery
same-store revenue growth
|
|
|
|
Service
revenue
|
98
|
98
|
8%
|
|
Instant
ticket & draw games
|
|
|
4.7%
|
|
Product
sales
|
0
|
0
|
9%
|
|
Multistate jackpots
|
|
|
-7.6%
|
|
|
|
|
|
|
|
|
Total
lottery same-store revenue growth (ex-Italy)
|
3.1%
|
Consolidated
|
|
Revenue
|
1,145
|
1,207
|
-1%
|
|
Italy
lottery revenue growth
|
|
|
3.2%
|
|
Operating
Income:
|
|
|
|
|
|
|
|
|
|
|
Segment
total
|
285
|
302
|
-1%
|
|
|
|
|
|
|
|
Purchase
accounting
|
(49)
|
(52)
|
6%
|
|
|
|
|
|
|
|
Corporate
support
|
(58)
|
(53)
|
-15%
|
|
|
|
|
|
|
|
Total
|
178
|
197
|
-4%
|
|
|
|
|
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/international-game-technology-plc-reports-first-quarter-2019-results-300853012.html
SOURCE International Game Technology PLC