LONDON, Nov. 21, 2016 /PRNewswire/ -- International
Game Technology PLC ("IGT") (NYSE: IGT) today reported financial
results for the third quarter and nine months ended September 30, 2016. Today, at 8:00 a.m. EST / 1:00 p.m.
GMT / 2:00 p.m. CET,
management will host a conference call and webcast to present the
third quarter results; access details are provided below.
"Strong lottery performance across the world, a larger global
installed base, and increased sales of gaming machines drove
another quarter of solid revenue and profit expansion," said
Marco Sala, CEO of IGT.
"IGT's leadership positions in lottery and gaming machines were
evident at the recent gaming and lottery trade shows. The engaging
player experiences and technology solutions IGT creates are the
cornerstones of our growth strategy, and we are encouraged by
customer enthusiasm for our innovative new products."
"We achieved broad-based growth across regions in the third
quarter and our financial condition is strong," said
Alberto Fornaro, CFO of IGT.
"Higher profitability enabled us to maintain our leverage ratio
despite the significant interest and tax payments of the quarter.
Based on our performance to date, we remain comfortable with our
adjusted EBITDA outlook for the full year."
Summary of Consolidated Third Quarter 2016 Financial
Results
|
Quarter
Ended
September
30,
|
Change
|
Constant
Currency
Change
|
|
2016
|
2015
|
(%)
|
(%)
|
(In $ millions,
unless otherwise noted)
|
|
|
|
|
Revenue
|
1,266
|
1,202
|
5%
|
6%
|
Operating
Income
|
164
|
130
|
26%
|
25%
|
Net (loss) income per
diluted share
|
(0.01)
|
0.04
|
NM
|
|
Net debt
|
7,937
|
8,196
|
-3%
|
|
Adjusted
EBITDA
|
430
|
414
|
4%
|
4%
|
Adjusted Operating
Income
|
286
|
261
|
9%
|
9%
|
Adjusted net income
per diluted share
|
0.45
|
0.42
|
7%
|
|
|
|
|
|
|
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 Third Quarter Results
Consolidated revenue rose 5% to $1,266
million from $1,202 million in
the third quarter of 2015. Revenue growth primarily reflects strong
performance in the North America Lottery and Italy segments. Global lottery same-store
revenue, excluding Italy,
increased 6% during the third quarter while Italy lottery wagers increased 7%. Gaming
service revenue was below the prior year, primarily on lower
DoubleDown revenues. Product sales increased in the quarter on
higher gaming machine unit demand in the North America and International segments as
well as on higher International systems sales. The Company shipped
8,980 gaming machines worldwide during the third quarter.
Operating income increased 26% to $164
million from $130 million in
the third quarter of 2015. Adjusted operating income grew 9% to
$286 million, from $261 million, as higher lottery profits were
partially offset by the timing of bad debt expense, investment in
the installed base, increased global product marketing costs, and
research & development spending.
Adjusted EBITDA of $430 million
was 4% higher than in the third quarter of 2015, representing the
fourth consecutive quarter of year-over-year
growth.
Interest expense was $118 million
compared to $122 million in the
prior-year period.
Net loss attributable to IGT was $2
million in the third quarter of 2016, reflecting the impact
of $21 million in primarily non-cash
foreign exchange losses. On an adjusted basis, net income
attributable to IGT rose 6% to $90
million. The Company reported net loss per diluted share of
$(0.01) and earned $0.45 per diluted share on an adjusted basis.
In the first nine months of the year, cash from operations was
$621 million and capital expenditures
were $372 million. The Company made
the first of three upfront installment payments for the new Lotto
concession in Italy during the
year-to-date period.
Cash and cash equivalents were $350
million as of September 30,
2016, compared to $627 million
as of December 31, 2015. Consolidated
shareholders' equity totaled $3,421
million and net debt was $7,937
million as of September 30,
2016.
Operating Segment Review
North America Gaming &
Interactive
North America Gaming & Interactive revenue was $317 million compared to $341 million in the third quarter of 2015.
Service revenue was $241 million
compared to $267 million in the
prior-year period, largely driven by fewer daily active users
("DAU") at DoubleDown and a year-on-year decrease in the installed
base. Sequentially, terminal service revenue and the installed base
were relatively stable.
Product sales increased to $76
million from $73 million in
the third quarter of 2015, primarily due to higher replacement unit
volume. The segment shipped 5,238 units compared to 3,326 units in
the prior-year period. A portion of the new and expansion unit
revenue was deferred and is expected to be recognized in the fourth
quarter of 2016.
Operating income for North America Gaming & Interactive was
$66 million compared to $85 million in the third quarter of 2015. The
decrease was largely attributed to lower revenue, as well as costs
to revitalize the installed base and higher research &
development spending.
North America Lottery
North America Lottery revenue was $307
million, up 22% from the third quarter of 2015. The strong
growth reflects robust same-store revenue expansion as well as an
incentive contribution from the New Jersey Lottery, largely driven
by the record Powerball jackpot in the first quarter of 2016.
Excluding the New Jersey
contribution, revenue for the North America Lottery segment rose
10%.
Service revenue of $290 million
was 19% higher than in the prior-year period, reflecting 6.3%
same-store revenue growth and the New
Jersey incentive contribution. The same-store revenue growth
was primarily driven by continued strength in multi-state Jackpot
games. Product sales were $18 million
in the third quarter of 2016, compared to $10 million in the prior-year period, and
included higher hardware sales in California as well as increased instant ticket
printing revenue.
Operating income for North America Lottery rose 70% to
$85 million, reflecting the strong
same-store revenue growth and the New
Jersey incentive.
International
International revenue was $215
million in the quarter, up from $210
million in the third quarter of 2015. At constant currency,
revenue for the International segment rose 5% from the prior
year.
International lottery service revenue of $71 million was 8% higher than in the prior-year
period at constant currency. Same-store revenue growth of 5.7% was
supported by strength in Latin
America and Eastern Europe,
partially offset by weakness in the United Kingdom.
International gaming service revenue was $43 million compared to $50 million in the third quarter of 2015, mainly
due to the exit of certain interactive operations. At constant
currency, terminal service revenue grew 3% over the prior year and
the installed base rose 500 units to 10,268. Revenue from gaming
product sales rose 12% at constant currency, supported by the 3,742
gaming machines shipped at higher average unit prices during the
third quarter of 2016 compared to 3,296 units in the prior-year
period. Product sales also benefited from a large systems sale in
Asia.
International operating income was $39
million compared to $37
million in the third quarter of 2015. At constant currency,
operating income rose 15% on strength in lottery, improved
contribution from the installed base, and higher gaming product
sales.
Italy
Italy revenue was $426 million, 7% higher than in the third quarter
of 2015.
Total Lotto wagers in the quarter were €1,967 million, a 17%
increase over the prior-year period, reflecting a significant
contribution from late numbers. Excluding late numbers, Lotto
wagers increased 2% over the same period last year. Scratch &
Win wagers were relatively stable at €2,091 million.
Machine gaming service revenue increased 8% over the third
quarter of 2015 on improved unit productivity. The strength in
service revenues was partially offset by lower installed units.
Sports betting wagers increased 7% and payout was steady compared
to the prior year.
Operating income for the Italy
segment was $147 million, 12% higher
than the third quarter of 2015. The increase in operating income
was mainly attributable to strong Lotto and sports betting
contribution.
Other Developments
The Company's Board of Directors has declared a quarterly cash
dividend of $0.20 per ordinary share.
The dividend is payable on December 19,
2016 to all shareholders of record as of the close of
business on December 5, 2016.
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 no more than $550 million. This compares to previous capital
expenditure guidance of $550-$580
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. EST /
1:00 p.m. GMT / 2:00 p.m. CET, management will host a conference
call to present the third quarter 2016 results. Listeners may
access a live webcast of the conference call along with
accompanying slides under "News, Events & 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 1904
for participants in the United
Kingdom and +1 877 280 2296 for listeners outside the
United Kingdom. The conference
ID/confirmation code is 8241308. 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 8241308.
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
U.K. 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 news release 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 news release 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
|
Condensed
Consolidated Statements of Operations
|
($ and shares
in thousands, except per share data)
|
Unaudited
|
|
|
|
|
|
|
|
For the three
months ended
|
|
|
September
30,
|
|
|
2016
|
|
2015
|
|
|
|
|
|
Service
revenue
|
|
1,088,842
|
|
1,043,709
|
Product
sales
|
|
176,808
|
|
157,864
|
Total
revenue
|
|
1,265,650
|
|
1,201,573
|
|
|
|
|
|
Cost of
services
|
|
625,235
|
|
619,630
|
Cost of
sales
|
|
136,702
|
|
127,980
|
Selling, general and
administrative
|
|
242,510
|
|
224,487
|
Research and
development
|
|
87,354
|
|
85,864
|
Restructuring
expense
|
|
5,658
|
|
11,271
|
Impairment
loss
|
|
4,230
|
|
-
|
Transaction expense,
net
|
|
129
|
|
2,301
|
Total operating
expenses
|
|
1,101,818
|
|
1,071,533
|
|
|
|
|
|
Operating
income
|
|
163,832
|
|
130,040
|
|
|
|
|
|
Interest
income
|
|
3,240
|
|
4,797
|
Other income
(expense), net
|
|
2,907
|
|
(508)
|
Foreign exchange
(loss) gain, net
|
|
(21,143)
|
|
9,848
|
Interest
expense
|
|
(117,618)
|
|
(121,845)
|
Total
non-operating expenses
|
|
(132,614)
|
|
(107,708)
|
|
|
|
|
|
Income before
provision for income taxes
|
|
31,218
|
|
22,332
|
|
|
|
|
|
Provision for income
taxes
|
|
12,812
|
|
13,367
|
|
|
|
|
|
Net
income
|
|
18,406
|
|
8,965
|
|
|
|
|
|
Less: Net income
attributable to non-controlling interests
|
|
20,309
|
|
1,833
|
|
|
|
|
|
Net (loss) income
attributable to IGT PLC
|
|
(1,903)
|
|
7,132
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
attributable to IGT PLC per common share - basic
|
(0.01)
|
|
0.04
|
Net (loss) income
attributable to IGT PLC per common share - diluted
|
(0.01)
|
|
0.04
|
|
|
|
|
|
Weighted-average
shares - basic
|
|
202,029
|
|
199,480
|
Weighted-average
shares - diluted
|
|
202,029
|
|
200,910
|
|
|
|
|
|
International Game
Technology PLC
|
Condensed
Consolidated Statements of Operations
|
($ and shares
in thousands, except per share data)
|
Unaudited
|
|
|
|
|
|
|
|
For the nine
months ended
|
|
|
September
30,
|
|
|
2016
|
|
2015
|
|
|
|
|
|
Service
revenue
|
|
3,313,917
|
|
2,868,664
|
Product
sales
|
|
518,763
|
|
455,435
|
Total
revenue
|
|
3,832,680
|
|
3,324,099
|
|
|
|
|
|
Cost of
services
|
|
1,911,830
|
|
1,743,013
|
Cost of
sales
|
|
403,118
|
|
340,322
|
Selling, general and
administrative
|
|
709,277
|
|
552,254
|
Research and
development
|
|
256,349
|
|
192,849
|
Restructuring
expense
|
|
21,514
|
|
41,570
|
Impairment
loss
|
|
6,582
|
|
-
|
Transaction expense,
net
|
|
1,560
|
|
45,695
|
Total operating
expenses
|
|
3,310,230
|
|
2,915,703
|
|
|
|
|
|
Operating
income
|
|
522,450
|
|
408,396
|
|
|
|
|
|
Interest
income
|
|
10,287
|
|
12,916
|
Other expense,
net
|
|
(4,994)
|
|
(120,222)
|
Foreign exchange
loss, net
|
|
(94,547)
|
|
(85,493)
|
Interest
expense
|
|
(353,748)
|
|
(338,651)
|
Total
non-operating expenses
|
|
(443,002)
|
|
(531,450)
|
|
|
|
|
|
Income (loss)
before provision for income taxes
|
|
79,448
|
|
(123,054)
|
|
|
|
|
|
Provision for income
taxes
|
|
64,593
|
|
15,907
|
|
|
|
|
|
Net income
(loss)
|
|
14,855
|
|
(138,961)
|
|
|
|
|
|
Less: Net income
attributable to non-controlling interests
|
|
36,836
|
|
10,114
|
|
|
|
|
|
Net loss
attributable to IGT PLC
|
|
(21,981)
|
|
(149,075)
|
|
|
|
|
|
|
|
|
|
|
Net loss
attributable to IGT PLC per common share - basic
|
|
(0.11)
|
|
(0.79)
|
Net loss
attributable to IGT PLC per common share - diluted
|
|
(0.11)
|
|
(0.79)
|
|
|
|
|
|
Weighted-average
shares - basic
|
|
201,238
|
|
189,884
|
Weighted-average
shares - diluted
|
|
201,238
|
|
189,884
|
|
|
|
|
|
International Game
Technology PLC
|
Condensed
Consolidated Balance Sheets
|
($
thousands)
|
Unaudited
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
2016
|
|
2015
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
349,899
|
|
627,484
|
Restricted
cash and investments
|
135,340
|
|
169,101
|
Trade and
other receivables, net
|
880,943
|
|
959,592
|
Inventories
|
324,415
|
|
269,982
|
Other current
assets
|
454,666
|
|
423,701
|
Income taxes
receivable
|
35,372
|
|
35,514
|
Total
current assets
|
2,180,635
|
|
2,485,374
|
|
|
|
|
Systems,
equipment and other assets related to contracts, net
|
1,175,954
|
|
1,127,518
|
Property,
plant and equipment, net
|
346,390
|
|
349,677
|
Goodwill,
net
|
6,843,725
|
|
6,830,499
|
Intangible
assets, net
|
3,010,075
|
|
3,335,633
|
Other
non-current assets
|
1,690,815
|
|
937,917
|
Deferred
income taxes
|
47,556
|
|
48,074
|
Total
non-current assets
|
13,114,515
|
|
12,629,318
|
|
|
|
|
Total Assets
|
15,295,150
|
|
15,114,692
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
917,891
|
|
1,057,860
|
Other current
liabilities
|
1,269,510
|
|
922,586
|
Current
portion of long-term debt
|
123
|
|
160
|
Income taxes
payable
|
138,289
|
|
30,020
|
Total
current liabilities
|
2,325,813
|
|
2,010,626
|
|
|
|
|
Long-term
debt, less current portion
|
8,286,690
|
|
8,334,013
|
Deferred
income taxes
|
822,247
|
|
941,418
|
Other
non-current liabilities
|
439,593
|
|
462,493
|
Total
non-current liabilities
|
9,548,530
|
|
9,737,924
|
|
|
|
|
Total
Liabilities
|
11,874,343
|
|
11,748,550
|
|
|
|
|
Commitments and
contingencies
|
-
|
|
-
|
|
|
|
|
Shareholders'
equity
|
3,420,807
|
|
3,366,142
|
|
|
|
|
Total liabilities and shareholders' equity
|
15,295,150
|
|
15,114,692
|
|
|
|
|
International Game
Technology PLC
|
Consolidated
Statements of Cash Flows
|
($
thousands)
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
For the nine
months ended
|
|
|
September
30,
|
|
|
2016
|
|
2015
|
Operating
activities
|
|
|
|
|
Net income
(loss)
|
|
14,855
|
|
(138,961)
|
Adjustments
for:
|
|
|
|
|
Amortization
|
|
377,163
|
|
286,264
|
Depreciation
|
|
293,284
|
|
259,676
|
Foreign exchange
loss, net
|
|
94,547
|
|
85,493
|
Amortization of
upfront payments to customers
|
|
85,160
|
|
81,178
|
Stock-based
compensation expense
|
|
24,502
|
|
32,732
|
Debt issuance cost
amortization
|
|
13,757
|
|
35,788
|
Loss on early
extinguishment of debt
|
|
-
|
|
73,806
|
Write-off of bridge
facility costs
|
|
-
|
|
35,061
|
Other, net
|
|
23,185
|
|
15,196
|
Cash flows before
changes in operating assets and liabilities
|
|
926,453
|
|
766,233
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Trade and other
receivables
|
|
83,085
|
|
122,739
|
Inventories
|
|
(46,761)
|
|
(29,275)
|
Accounts
payable
|
|
(135,297)
|
|
(102,170)
|
Other assets and
liabilities
|
|
(206,483)
|
|
(286,533)
|
Net cash flows
from operating activities
|
|
620,997
|
|
470,994
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
Upfront payments to
customers
|
|
(390,390)
|
|
-
|
Capital
expenditures
|
|
(371,497)
|
|
(288,743)
|
Purchases of jackpot
annuity investments
|
|
(2,598)
|
|
(1,562)
|
Proceeds from jackpot
annuity investments
|
|
14,856
|
|
27,509
|
Proceeds from sale of
assets
|
|
55,713
|
|
23,610
|
Acquisition of IGT,
net of cash acquired
|
|
-
|
|
(3,241,415)
|
Other
|
|
2,938
|
|
(127)
|
Net cash flows
used in investing activities
|
|
(690,978)
|
|
(3,480,728)
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
Principal payments on
long-term debt
|
|
(177,977)
|
|
(2,492,354)
|
Dividends
paid
|
|
(120,726)
|
|
(169,633)
|
Return of capital -
non-controlling interest
|
|
(35,407)
|
|
(30,568)
|
Dividends paid -
non-controlling interest
|
|
(27,813)
|
|
(28,842)
|
Debt issuance costs
paid
|
|
(10,736)
|
|
(81,100)
|
Capital contribution
non-controlling interest
|
|
151,359
|
|
-
|
Proceeds from
issuance of long-term debt
|
|
-
|
|
6,584,801
|
Proceeds from
interest rate swaps
|
|
-
|
|
67,773
|
Payments in
connection with note consents
|
|
-
|
|
(29,022)
|
Payments on bridge
facility
|
|
-
|
|
(51,409)
|
Payments in
connection with the early extinguishment of debt
|
|
-
|
|
(79,526)
|
Payments to
withdrawing shareholders
|
|
-
|
|
(407,759)
|
Other
|
|
2,225
|
|
(11,942)
|
Net cash flows
(used in) provided by financing activities
|
|
(219,075)
|
|
3,270,419
|
|
|
|
|
|
Net (decrease)
increase in cash and cash equivalents
|
|
(289,056)
|
|
260,685
|
Effect of exchange
rate changes on cash
|
|
11,471
|
|
(25,876)
|
Cash and cash
equivalents at the beginning of the period
|
|
627,484
|
|
317,106
|
Cash and cash
equivalents at the end of the period
|
|
349,899
|
|
551,915
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Cash Flow Information:
|
|
|
|
|
Interest
paid
|
|
(408,864)
|
|
(322,074)
|
Income taxes
paid
|
|
(136,015)
|
|
(163,995)
|
|
|
|
|
|
International Game
Technology PLC
|
Net
Debt
|
($
thousands)
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
2016
|
|
2015
|
Long-term debt,
less current portion
|
|
|
|
6.250% Senior Secured
Notes due 2022
|
1,495,417
|
|
1,468,875
|
6.500% Senior Secured
Notes due 2025
|
1,085,207
|
|
1,084,249
|
4.750% Senior Secured
Notes due 2023
|
936,562
|
|
912,418
|
4.125% Senior Secured
Notes due 2020
|
772,849
|
|
752,212
|
5.625% Senior Secured
Notes due 2020
|
593,517
|
|
592,245
|
Senior Secured
Notes
|
4,883,552
|
|
4,809,999
|
|
|
|
|
6.625% Senior Secured
Notes due 2018
|
550,973
|
|
533,915
|
4.750% Senior Secured
Notes due 2020
|
537,650
|
|
520,649
|
Legacy GTECH
Notes
|
1,088,623
|
|
1,054,564
|
|
|
|
|
7.500% Senior Secured
Notes due 2019
|
523,966
|
|
530,009
|
5.500% Senior Secured
Notes due 2020
|
126,433
|
|
126,833
|
5.350% Senior Secured
Notes due 2023
|
61,213
|
|
61,303
|
Legacy IGT
Notes
|
711,612
|
|
718,145
|
|
|
|
|
Term Loan Facilities
due 2019
|
888,438
|
|
866,785
|
Revolving Credit
Facilities due 2021
|
714,465
|
|
834,968
|
Capital
Securities
|
-
|
|
49,472
|
Other
|
-
|
|
80
|
Long-term debt,
less current portion
|
8,286,690
|
|
8,334,013
|
|
|
|
|
Current portion of
long-term debt
|
123
|
|
160
|
Total
debt
|
8,286,813
|
|
8,334,173
|
|
|
|
|
Cash and cash
equivalents
|
349,899
|
|
627,484
|
|
|
|
|
Net
debt
|
7,936,914
|
|
7,706,689
|
|
|
|
|
International Game Technology
PLC
|
Condensed
Consolidated Statement of Operations
|
Reconciliation of Non-GAAP Financial
Measures
|
($ and
shares in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
Q3
2016
|
|
|
|
|
|
Impairment/
|
|
Transaction
|
|
Q3
2016
|
|
|
As
|
|
Purchase
|
|
Foreign
|
|
Restructuring
|
|
(Income)
|
|
As
|
|
|
Reported
|
|
Accounting
|
|
Exchange
|
|
Expense
|
|
Expense
|
|
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
1,265,650
|
|
376
|
|
-
|
|
-
|
|
-
|
|
1,266,026
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services
|
|
625,235
|
|
(46,222)
|
|
-
|
|
-
|
|
-
|
|
579,013
|
Cost of
sales
|
|
136,702
|
|
(29,740)
|
|
-
|
|
-
|
|
-
|
|
106,962
|
Selling,
general and administrative
|
|
242,510
|
|
(35,254)
|
|
-
|
|
-
|
|
-
|
|
207,256
|
Research and
development
|
|
87,354
|
|
(465)
|
|
-
|
|
-
|
|
-
|
|
86,889
|
Restructuring
expense
|
|
5,658
|
|
-
|
|
-
|
|
(5,658)
|
|
-
|
|
-
|
Impairment
loss
|
|
4,230
|
|
-
|
|
-
|
|
(4,230)
|
|
-
|
|
-
|
Transaction
expense, net
|
|
129
|
|
-
|
|
-
|
|
-
|
|
(129)
|
|
-
|
Total
operating expenses
|
|
1,101,818
|
|
(111,681)
|
|
-
|
|
(9,888)
|
|
(129)
|
|
980,120
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
163,832
|
|
112,057
|
|
-
|
|
9,888
|
|
129
|
|
285,906
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
exchange loss, net
|
|
(21,143)
|
|
-
|
|
21,143
|
|
-
|
|
-
|
|
-
|
Other income,
net
|
|
2,907
|
|
(211)
|
|
-
|
|
-
|
|
-
|
|
2,696
|
Interest
expense, net
|
|
(114,378)
|
|
2,073
|
|
-
|
|
-
|
|
-
|
|
(112,305)
|
Total
non-operating expenses
|
|
(132,614)
|
|
1,862
|
|
21,143
|
|
-
|
|
-
|
|
(109,609)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before provision for income taxes
|
|
31,218
|
|
113,919
|
|
21,143
|
|
9,888
|
|
129
|
|
176,297
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
income taxes (a)
|
|
12,812
|
|
40,437
|
|
9,857
|
|
2,538
|
|
40
|
|
65,684
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
18,406
|
|
73,482
|
|
11,286
|
|
7,350
|
|
89
|
|
110,613
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net
income attributable to non-controlling interests
|
|
20,309
|
|
26
|
|
-
|
|
-
|
|
-
|
|
20,335
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income attributable to IGT PLC
|
|
(1,903)
|
|
73,456
|
|
11,286
|
|
7,350
|
|
89
|
|
90,278
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income per common share - diluted
|
|
(0.01)
|
|
|
|
|
|
|
|
|
|
0.45
|
Weighted-average shares -
diluted
|
|
202,029
|
|
|
|
|
|
|
|
|
|
202,606
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Provision
for income taxes was determined based on the statutory tax rate in
effect in the respective jurisdiction where the adjustment
originated.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Statement of Operations
|
Reconciliation of Non-GAAP Financial
Measures
|
($ and
shares in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
Q3
2015
|
|
|
|
|
|
|
|
Transaction
|
|
Q3
2015
|
|
|
|
As
|
|
Purchase
|
|
Foreign
|
|
Restructuring
|
|
and
Refinancing
|
|
As
|
|
|
|
Reported
|
|
Accounting
|
|
Exchange
|
|
Expense
|
|
Expense
|
|
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
1,201,573
|
|
2,271
|
|
-
|
|
-
|
|
-
|
|
1,203,844
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services
|
|
619,630
|
|
(48,022)
|
|
-
|
|
-
|
|
-
|
|
571,608
|
|
Cost of
sales
|
|
127,980
|
|
(34,536)
|
|
-
|
|
-
|
|
-
|
|
93,444
|
|
Selling,
general and administrative
|
|
224,487
|
|
(32,447)
|
|
-
|
|
-
|
|
-
|
|
192,040
|
|
Research and
development
|
|
85,864
|
|
(564)
|
|
-
|
|
-
|
|
-
|
|
85,300
|
|
Restructuring
expense
|
|
11,271
|
|
-
|
|
-
|
|
(11,271)
|
|
-
|
|
-
|
|
Transaction
expense, net
|
|
2,301
|
|
-
|
|
-
|
|
-
|
|
(2,301)
|
|
-
|
|
Total
operating expenses
|
|
1,071,533
|
|
(115,569)
|
|
-
|
|
(11,271)
|
|
(2,301)
|
|
942,392
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
130,040
|
|
117,840
|
|
-
|
|
11,271
|
|
2,301
|
|
261,452
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
exchange gain, net
|
|
9,848
|
|
-
|
|
(9,848)
|
|
-
|
|
-
|
|
-
|
|
Other expense,
net
|
|
(508)
|
|
(208)
|
|
-
|
|
-
|
|
-
|
|
(716)
|
|
Interest
expense, net
|
|
(117,048)
|
|
20
|
|
-
|
|
-
|
|
-
|
|
(117,028)
|
|
Total
non-operating expenses
|
|
(107,708)
|
|
(188)
|
|
(9,848)
|
|
-
|
|
-
|
|
(117,744)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before provision for income taxes
|
|
22,332
|
|
117,652
|
|
(9,848)
|
|
11,271
|
|
2,301
|
|
143,708
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
income taxes (a)
|
|
13,367
|
|
40,869
|
|
(1,788)
|
|
3,818
|
|
377
|
|
56,643
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
8,965
|
|
76,783
|
|
(8,060)
|
|
7,453
|
|
1,924
|
|
87,065
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net
income attributable to non-controlling interests
|
|
1,833
|
|
26
|
|
-
|
|
-
|
|
-
|
|
1,859
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to IGT PLC
|
|
7,132
|
|
76,757
|
|
(8,060)
|
|
7,453
|
|
1,924
|
|
85,206
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
per common share - diluted
|
|
0.04
|
|
|
|
|
|
|
|
|
|
0.42
|
|
Weighted-average shares -
diluted
|
|
200,910
|
|
|
|
|
|
|
|
|
|
200,910
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Provision
for income taxes was determined based on the statutory tax rate in
effect in the respective jurisdiction where the adjustment
originated.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International Game Technology
PLC
|
Condensed
Consolidated Statement of Operations
|
Reconciliation of Non-GAAP Financial
Measures
|
($ and
shares in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year to
date
|
|
Adjustments
|
|
Year to
date
|
|
|
September
2016
|
|
|
|
|
|
Impairment/
|
|
|
|
September
2016
|
|
|
As
|
|
Purchase
|
|
Foreign
|
|
Restructuring
|
|
Transaction
|
|
As
|
|
|
Reported
|
|
Accounting
|
|
Exchange
|
|
Expense
|
|
Expense
|
|
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
3,832,680
|
|
1,332
|
|
-
|
|
-
|
|
-
|
|
3,834,012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services
|
|
1,911,830
|
|
(137,366)
|
|
-
|
|
-
|
|
-
|
|
1,774,464
|
Cost of
sales
|
|
403,118
|
|
(89,091)
|
|
-
|
|
-
|
|
-
|
|
314,027
|
Selling,
general and administrative
|
|
709,277
|
|
(104,857)
|
|
-
|
|
-
|
|
-
|
|
604,420
|
Research and
development
|
|
256,349
|
|
(1,459)
|
|
-
|
|
-
|
|
-
|
|
254,890
|
Restructuring
expense
|
|
21,514
|
|
-
|
|
-
|
|
(21,514)
|
|
-
|
|
-
|
Impairment
loss
|
|
6,582
|
|
-
|
|
-
|
|
(6,582)
|
|
-
|
|
-
|
Transaction
expense, net
|
|
1,560
|
|
-
|
|
-
|
|
-
|
|
(1,560)
|
|
-
|
Total
operating expenses
|
|
3,310,230
|
|
(332,773)
|
|
-
|
|
(28,096)
|
|
(1,560)
|
|
2,947,801
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
522,450
|
|
334,105
|
|
-
|
|
28,096
|
|
1,560
|
|
886,211
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
exchange loss, net
|
|
(94,547)
|
|
-
|
|
94,547
|
|
-
|
|
-
|
|
-
|
Other expense,
net
|
|
(4,994)
|
|
3,881
|
|
-
|
|
-
|
|
-
|
|
(1,113)
|
Interest
expense, net
|
|
(343,461)
|
|
6,147
|
|
-
|
|
-
|
|
-
|
|
(337,314)
|
Total
non-operating expenses
|
|
(443,002)
|
|
10,028
|
|
94,547
|
|
-
|
|
-
|
|
(338,427)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before provision for income taxes
|
|
79,448
|
|
344,133
|
|
94,547
|
|
28,096
|
|
1,560
|
|
547,784
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
income taxes (a)
|
|
64,593
|
|
122,338
|
|
23,431
|
|
7,718
|
|
302
|
|
218,382
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
14,855
|
|
221,795
|
|
71,116
|
|
20,378
|
|
1,258
|
|
329,402
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net
income attributable to non-controlling interests
|
|
36,836
|
|
76
|
|
-
|
|
-
|
|
-
|
|
36,912
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income attributable to IGT PLC
|
|
(21,981)
|
|
221,719
|
|
71,116
|
|
20,378
|
|
1,258
|
|
292,490
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income per common share - diluted
|
|
(0.11)
|
|
|
|
|
|
|
|
|
|
1.45
|
Weighted-average shares -
diluted
|
|
201,238
|
|
|
|
|
|
|
|
|
|
201,901
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Provision
for income taxes was determined based on the statutory tax rate in
effect in the respective jurisdiction where the adjustment
originated.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International Game Technology
PLC
|
|
Condensed
Consolidated Statement of Operations
|
|
Reconciliation of Non-GAAP Financial
Measures
|
|
($ and
shares in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year to
date
|
|
Adjustments
|
|
Year to
date
|
|
|
|
Year to
date
|
|
|
|
September
2015
|
|
|
|
|
|
|
|
Transaction
|
|
September
2015
|
|
|
|
September
2015
|
|
|
|
As
|
|
Purchase
|
|
Foreign
|
|
Restructuring
|
|
and
Refinancing
|
|
As
|
|
Pro
Forma
|
|
Pro
|
|
|
|
Reported
|
|
Accounting
|
|
Exchange
|
|
Expense
|
|
Expense
|
|
Adjusted
|
|
Adjustments
|
|
Forma
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
3,324,099
|
|
13,919
|
|
-
|
|
-
|
|
-
|
|
3,338,018
|
|
399,387
|
|
3,737,405
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services
|
|
1,743,013
|
|
(104,686)
|
|
-
|
|
-
|
|
-
|
|
1,638,327
|
|
113,306
|
|
1,751,633
|
|
Cost of
sales
|
|
340,322
|
|
(66,764)
|
|
-
|
|
-
|
|
-
|
|
273,558
|
|
63,355
|
|
336,913
|
|
Selling,
general and administrative
|
|
552,254
|
|
(67,023)
|
|
-
|
|
-
|
|
-
|
|
485,231
|
|
134,166
|
|
619,397
|
|
Research and
development
|
|
192,849
|
|
(1,693)
|
|
-
|
|
-
|
|
-
|
|
191,156
|
|
62,760
|
|
253,916
|
|
Restructuring
expense
|
|
41,570
|
|
-
|
|
-
|
|
(41,570)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Transaction
expense, net
|
|
45,695
|
|
-
|
|
-
|
|
-
|
|
(45,695)
|
|
-
|
|
-
|
|
-
|
|
Total
operating expenses
|
|
2,915,703
|
|
(240,166)
|
|
-
|
|
(41,570)
|
|
(45,695)
|
|
2,588,272
|
|
373,587
|
|
2,961,859
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
408,396
|
|
254,085
|
|
-
|
|
41,570
|
|
45,695
|
|
749,746
|
|
25,800
|
|
775,546
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
exchange loss, net
|
|
(85,493)
|
|
-
|
|
85,493
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
Other (expense)
income, net
|
|
(120,222)
|
|
6,042
|
|
-
|
|
-
|
|
117,877
|
|
3,697
|
|
|
|
|
|
Interest
expense, net
|
|
(325,735)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(325,735)
|
|
|
|
|
|
Total
non-operating expenses
|
|
(531,450)
|
|
6,042
|
|
85,493
|
|
-
|
|
117,877
|
|
(322,038)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)
income before provision for income taxes
|
|
(123,054)
|
|
260,127
|
|
85,493
|
|
41,570
|
|
163,572
|
|
427,708
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
income taxes (a)
|
|
15,907
|
|
92,015
|
|
19,768
|
|
13,000
|
|
41,115
|
|
181,805
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
(138,961)
|
|
168,112
|
|
65,725
|
|
28,570
|
|
122,457
|
|
245,903
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net
income attributable to non-controlling interests
|
|
10,114
|
|
77
|
|
-
|
|
-
|
|
-
|
|
10,191
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income attributable to IGT PLC
|
|
(149,075)
|
|
168,035
|
|
65,725
|
|
28,570
|
|
122,457
|
|
235,712
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income per common share - diluted
|
|
(0.79)
|
|
|
|
|
|
|
|
|
|
1.23
|
|
|
|
|
|
Weighted-average shares -
diluted
|
|
189,884
|
|
|
|
|
|
|
|
|
|
191,142
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Provision
for 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
|
|
|
September
30,
|
|
|
2016
|
|
2015
|
|
|
|
|
|
Net income
|
|
18,406
|
|
8,965
|
Provision for income
taxes
|
|
12,812
|
|
13,367
|
Non-operating
expenses
|
|
132,614
|
|
107,708
|
Amortization
|
|
124,089
|
|
134,129
|
Depreciation
|
|
94,403
|
|
95,133
|
Amortization of
upfront payments to customers
|
|
29,982
|
|
27,302
|
Stock-based
compensation expense
|
|
7,468
|
|
11,762
|
Restructuring
expense
|
|
5,658
|
|
11,271
|
Impairment
loss
|
|
4,230
|
|
-
|
Non-cash purchase
accounting (excluding D&A)
|
|
67
|
|
1,860
|
Transaction expense,
net
|
|
129
|
|
2,301
|
Adjusted
EBITDA
|
|
429,858
|
|
413,798
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
97,190
|
|
253,909
|
Capital
expenditures
|
|
(151,865)
|
|
(121,651)
|
Free Cash
Flow
|
|
(54,675)
|
|
132,258
|
|
|
|
|
|
International Game
Technology PLC Segment Performance
|
Revenue
Detail
|
|
|
|
|
|
|
($
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTERNATIONAL GAME
TECHNOLOGY PLC
|
|
|
Quarter
Change
|
|
|
|
|
2015
|
2016
|
|
|
Percentage
|
Constant
FX
|
|
|
|
|
Q3
|
Q3
|
|
|
Q3
|
Q3
|
Gaming
|
|
Total
Revenue
|
651
|
644
|
|
|
-1.1%
|
-0.6%
|
|
|
|
|
|
|
|
|
|
|
|
Gaming
Services
|
508
|
489
|
|
|
-3.8%
|
-2.9%
|
|
|
|
Terminal
|
322
|
322
|
|
|
0.0%
|
0.7%
|
|
|
|
Social
(DDI)
|
80
|
66
|
|
|
-17.5%
|
-17.5%
|
|
|
|
Other
|
106
|
101
|
|
|
-5.4%
|
-3.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
Sales
|
142
|
155
|
|
|
8.8%
|
7.6%
|
|
|
|
Terminal
|
95
|
108
|
|
|
13.1%
|
11.8%
|
|
|
|
Other
|
47
|
47
|
|
|
0.0%
|
-0.8%
|
|
|
|
|
|
|
|
|
|
|
|
Lottery
|
|
Total
Revenue
|
478
|
545
|
|
|
14.1%
|
14.8%
|
|
|
|
|
|
|
|
|
|
|
|
Lottery
Services
|
463
|
523
|
|
|
13.1%
|
13.8%
|
|
|
|
FM/Concessions
|
416
|
436
|
|
|
4.8%
|
5.4%
|
|
|
|
LMA
|
22
|
59
|
|
|
172.2%
|
172.2%
|
|
|
|
Other
Services
|
25
|
28
|
|
|
14.3%
|
18.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
Sales
|
15
|
22
|
|
|
44.9%
|
44.8%
|
|
|
|
Terminal
|
0
|
2
|
|
|
592.3%
|
592.1%
|
|
|
|
Systems/Other
|
15
|
20
|
|
|
35.9%
|
35.9%
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
Total
Revenue
|
73
|
77
|
|
|
5.0%
|
5.3%
|
|
|
|
|
|
|
|
|
|
|
|
Service
Revenue
|
73
|
77
|
|
|
5.6%
|
5.9%
|
|
|
Product
Sales
|
0
|
(0)
|
|
|
-110.5%
|
-103.0%
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
Revenue
|
1,202
|
1,266
|
|
|
5.3%
|
5.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income:
|
|
|
|
|
|
|
|
|
|
Segment
Total
|
303
|
338
|
|
|
11.6%
|
11.7%
|
|
|
|
Purchase
Accounting
|
(118)
|
(112)
|
|
|
-4.9%
|
-4.8%
|
|
|
|
Corporate
Support
|
(55)
|
(62)
|
|
|
12.7%
|
15.1%
|
|
|
|
Total
|
130
|
164
|
|
|
26.0%
|
26.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North American
Gaming Interactive
|
|
|
Quarter
Change
|
|
|
|
|
|
2015
|
2016
|
|
|
Percentage
|
Constant
FX
|
|
|
|
|
|
Q3
|
Q3
|
|
|
Q3
|
Q3
|
|
Gaming
|
|
Total
Revenue
|
341
|
317
|
|
|
-7.0%
|
-7.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
Gaming
Services
|
267
|
241
|
|
|
-9.8%
|
-9.8%
|
|
|
|
Terminal
|
144
|
133
|
|
|
-7.8%
|
-7.8%
|
|
|
|
Social
(DDI)
|
80
|
66
|
|
|
-17.5%
|
-17.5%
|
|
|
|
Other
|
43
|
42
|
|
|
-2.2%
|
-2.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
Sales
|
73
|
76
|
|
|
3.3%
|
3.2%
|
|
|
|
Terminal
|
46
|
51
|
|
|
11.2%
|
11.1%
|
|
|
|
Other
|
27
|
24
|
|
|
-10.2%
|
-10.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Revenue
|
341
|
317
|
|
|
-7.0%
|
-7.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
85
|
66
|
|
|
-21.8%
|
-25.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
Lottery
|
|
|
Quarter
Change
|
|
|
|
|
|
2015
|
2016
|
|
|
Percentage
|
Constant
FX
|
|
|
|
|
|
Q3
|
Q3
|
|
|
Q3
|
Q3
|
|
Gaming
|
|
Total
Revenue
|
37
|
37
|
|
|
0.8%
|
0.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
Gaming
Services
|
36
|
37
|
|
|
0.9%
|
0.8%
|
|
|
|
Terminal
|
26
|
25
|
|
|
-3.7%
|
-3.7%
|
|
|
|
Social
(DDI)
|
0
|
0
|
|
|
0.0%
|
0.0%
|
|
|
|
Other
|
10
|
12
|
|
|
12.7%
|
12.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
Sales
|
0
|
0
|
|
|
0.0%
|
0.0%
|
|
|
|
Terminal
|
(0)
|
0
|
|
|
0.0%
|
0.0%
|
|
|
|
Other
|
0
|
0
|
|
|
0.0%
|
0.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
Lottery
|
|
Total
Revenue
|
216
|
271
|
|
|
25.1%
|
25.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
Lottery
Services
|
206
|
253
|
|
|
22.6%
|
22.6%
|
|
|
|
FM/Concessions
|
156
|
163
|
|
|
4.6%
|
4.6%
|
|
|
|
LMA
|
22
|
59
|
|
|
172.2%
|
172.2%
|
|
|
|
Other
Services
|
29
|
31
|
|
|
8.0%
|
8.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
Sales
|
10
|
18
|
|
|
73.3%
|
73.3%
|
|
|
|
Terminal
|
0
|
2
|
|
|
682.6%
|
682.4%
|
|
|
|
Systems/Other
|
10
|
16
|
|
|
60.3%
|
60.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Revenue
|
253
|
307
|
|
|
21.6%
|
21.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
50
|
85
|
|
|
70.1%
|
69.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTERNATIONAL
|
|
|
Quarter
Change
|
|
|
|
|
|
2015
|
2016
|
|
|
Percentage
|
Constant
FX
|
|
|
|
|
|
Q3
|
Q3
|
|
|
Q3
|
Q3
|
|
Gaming
|
|
Total
Revenue
|
120
|
122
|
|
|
2.1%
|
4.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
Gaming
Services
|
50
|
43
|
|
|
-14.2%
|
-4.7%
|
|
|
|
Terminal
|
15
|
13
|
|
|
-13.8%
|
2.8%
|
|
|
|
Social
(DDI)
|
0
|
0
|
|
|
0.0%
|
0.0%
|
|
|
|
Other
|
36
|
31
|
|
|
-14.3%
|
-7.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
Sales
|
69
|
79
|
|
|
13.9%
|
11.6%
|
|
|
|
Terminal
|
49
|
57
|
|
|
14.9%
|
12.4%
|
|
|
|
Other
|
20
|
22
|
|
|
11.5%
|
9.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
Lottery
|
|
Total
Revenue
|
73
|
75
|
|
|
3.5%
|
6.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
Lottery
Services
|
68
|
71
|
|
|
4.8%
|
7.5%
|
|
|
|
FM/Concessions
|
49
|
51
|
|
|
3.5%
|
5.3%
|
|
|
|
LMA
|
0
|
0
|
|
|
0.0%
|
0.0%
|
|
|
|
Other
Services
|
19
|
20
|
|
|
8.3%
|
13.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
Sales
|
5
|
4
|
|
|
-15.6%
|
-15.7%
|
|
|
|
Terminal
|
0
|
0
|
|
|
-100.0%
|
-100.0%
|
|
|
|
Systems/Other
|
5
|
4
|
|
|
-15.1%
|
-15.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
Total
Revenue
|
18
|
18
|
|
|
1.1%
|
2.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
Revenue
|
17
|
18
|
|
|
3.7%
|
5.2%
|
|
|
Product
Sales
|
0
|
(0)
|
|
|
-110.5%
|
-103.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Revenue
|
210
|
215
|
|
|
2.5%
|
5.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
37
|
39
|
|
|
6.0%
|
15.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ITALY
|
|
|
Quarter
Change
|
|
|
|
|
|
2015
|
2016
|
|
|
Percentage
|
Constant
FX
|
|
|
|
|
|
Q3
|
Q3
|
|
|
Q3
|
Q3
|
|
Gaming
|
|
Total
Revenue
|
156
|
168
|
|
|
7.7%
|
7.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
Gaming
Services
|
156
|
168
|
|
|
7.7%
|
7.7%
|
|
|
|
Terminal
|
137
|
151
|
|
|
10.4%
|
10.4%
|
|
|
|
Social
(DDI)
|
0
|
0
|
|
|
0.0%
|
0.0%
|
|
|
|
Other
|
19
|
16
|
|
|
-12.1%
|
-12.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
Sales
|
0
|
0
|
|
|
0.0%
|
0.0%
|
|
|
|
Terminal
|
0
|
0
|
|
|
0.0%
|
0.0%
|
|
|
|
Other
|
0
|
0
|
|
|
0.0%
|
0.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
Lottery
|
|
Total
Revenue
|
188
|
199
|
|
|
5.7%
|
5.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
Lottery
Services
|
188
|
199
|
|
|
5.7%
|
5.6%
|
|
|
|
FM/Concessions
|
211
|
222
|
|
|
5.2%
|
5.2%
|
|
|
|
LMA
|
0
|
0
|
|
|
0.0%
|
0.0%
|
|
|
|
Other
Services
|
(23)
|
(23)
|
|
|
1.4%
|
1.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
Sales
|
0
|
0
|
|
|
0.0%
|
0.0%
|
|
|
|
Terminal
|
0
|
0
|
|
|
0.0%
|
0.0%
|
|
|
|
Systems/Other
|
0
|
0
|
|
|
0.0%
|
0.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
Total
Revenue
|
55
|
59
|
|
|
6.3%
|
6.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
Revenue
|
55
|
59
|
|
|
6.3%
|
6.2%
|
|
|
Product
Sales
|
0
|
0
|
|
|
0.0%
|
0.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Revenue
|
400
|
426
|
|
|
6.5%
|
6.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
131
|
147
|
|
|
12.4%
|
12.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Key
Performance Indicators (KPIs)
|
|
|
|
|
|
|
|
Third
Quarter
|
Periods Ended
September 30
|
|
2016
|
2015
|
%
change
|
|
|
|
|
|
|
|
Installed base
(end of period)
|
|
|
|
|
Casino
|
|
|
|
34,159
|
34,755
|
-1.7%
|
VLT -
Government Sponsored (ex-Italy)
|
|
15,594
|
15,648
|
-0.3%
|
VLT -
Italy Supplier (B2B)
|
|
|
8,464
|
8,439
|
0.3%
|
Total
installed base
|
|
|
58,217
|
58,842
|
-1.1%
|
Yield
(average revenue per unit per day - $0.00)
|
|
32.27
|
34.10
|
-5.4%
|
|
|
|
|
|
|
|
Additional Italian Network Details:
|
|
|
|
|
VLT -
Operator (B2C)
|
|
|
10,930
|
10,955
|
-0.2%
|
AWP
|
|
|
|
58,069
|
60,262
|
-3.6%
|
|
|
|
|
|
|
|
Machine units
shipped
|
|
|
|
|
|
New/Expansion
|
|
|
2,315
|
1,399
|
65.5%
|
Replacement
|
|
|
6,665
|
5,223
|
27.6%
|
Total
machines shipped
|
|
|
8,980
|
6,622
|
35.6%
|
|
|
|
|
|
|
|
Global lottery
same-store revenue growth
|
|
|
|
|
Instants
& draw games
|
|
|
|
|
2.7%
|
Multistate Jackpots
|
|
|
|
|
35.0%
|
Total
lottery same-store revenue growth (ex-Italy)
|
|
|
6.1%
|
Italy
lottery revenue growth
|
|
|
|
5.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
KPIs
|
|
|
|
|
|
|
|
|
|
Third
Quarter
|
Periods Ended
September 30
|
|
2016
|
2015
|
%
change
|
|
|
|
|
|
|
|
Installed base
(end of period)
|
|
|
|
|
Casino
|
|
|
|
24,163
|
25,237
|
-4.3%
|
VLT - Government Sponsored
|
|
15,322
|
15,398
|
-0.5%
|
Total
installed base
|
|
|
39,485
|
40,635
|
-2.8%
|
|
|
|
|
|
|
|
Machine units
shipped
|
|
|
|
|
|
New/Expansion
|
|
|
2,017
|
895
|
125.4%
|
Replacement
|
|
|
3,221
|
2,431
|
32.5%
|
Total
machines shipped
|
|
|
5,238
|
3,326
|
57.5%
|
|
|
|
|
|
|
|
DoubleDown
|
|
|
|
|
|
Revenue
($ Thousands)
|
|
|
65,820
|
79,748
|
-17.5%
|
Mobile
penetration
|
|
|
56%
|
50%
|
11.2%
|
DAU
(Daily Active Users - Thousands)
1
|
|
1,506
|
1,852
|
-18.7%
|
MAU
(Monthly Active Users - Thousands) 1
|
|
3,604
|
4,536
|
-20.5%
|
Bookings
per DAU ($0.00) 1
|
|
|
$
0.48
|
$
0.48
|
0.3%
|
|
|
|
|
|
|
|
Lottery same-store
revenue growth
|
|
|
|
|
Instants
& draw games
|
|
|
|
|
1.6%
|
Multistate Jackpots
|
|
|
|
|
40.6%
|
Total
lottery same-store revenue growth
|
|
|
|
6.3%
|
|
|
|
|
|
|
|
1As a
single application with multiple games, active users equal unique
users
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
KPIs
|
|
|
|
|
|
|
|
|
|
Third
Quarter
|
Periods Ended
September 30
|
|
2016
|
2015
|
%
change
|
|
|
|
|
|
|
|
Installed base
(end of period)
|
|
|
|
|
Casino
|
|
|
|
9,996
|
9,518
|
5.0%
|
VLT - Government Sponsored
|
|
272
|
250
|
8.8%
|
Total
installed base
|
|
|
10,268
|
9,768
|
5.1%
|
|
|
|
|
|
|
|
Machine units
shipped
|
|
|
|
|
|
New/Expansion
|
|
|
298
|
504
|
-40.9%
|
Replacement
|
|
|
3,444
|
2,792
|
23.4%
|
Total
machines shipped
|
|
|
3,742
|
3,296
|
13.5%
|
|
|
|
|
|
|
|
Lottery same-store
revenue growth
|
|
|
|
|
Instants
& draw games
|
|
|
|
|
5.9%
|
Multistate Jackpots
|
|
|
|
|
3.3%
|
Total
lottery same-store revenue growth
|
|
|
|
5.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Italy
KPIs
|
|
|
|
|
|
|
|
|
|
|
Third
Quarter
|
Periods Ended
September 30
|
|
2016
|
2015
|
%
change
|
(In € millions,
except machines)
|
|
|
|
|
Lottery
|
|
|
|
|
|
|
Lotto
wagers
|
|
|
1,967
|
1,677
|
17.3%
|
10eLotto
|
|
|
|
1,094
|
1,009
|
8.4%
|
Core
|
|
|
|
550
|
605
|
-9.1%
|
Late
Numbers
|
|
|
324
|
63
|
417.5%
|
|
|
|
|
|
|
|
Scratch & Win
Wagers
|
|
|
2,091
|
2,108
|
-0.8%
|
|
|
|
|
|
|
|
Italy lottery
revenue growth
|
|
|
|
|
5.6%
|
|
|
|
|
|
|
|
Gaming
|
|
|
|
|
|
|
Installed base
(end of period)
|
|
|
|
|
VLT -
Operator (B2C)
|
|
|
10,930
|
10,955
|
-0.2%
|
VLT -
Supplier (B2B)
|
|
|
8,464
|
8,439
|
0.3%
|
AWP
|
|
|
|
58,069
|
60,262
|
-3.6%
|
Total
Installed Base
|
|
|
77,463
|
79,656
|
-2.8%
|
|
|
|
|
|
|
|
Wagers
|
|
|
|
|
|
|
VLT -
Operator (B2C)
|
|
|
1,309
|
1,314
|
-0.4%
|
AWP
|
|
|
|
986
|
1,026
|
-3.9%
|
Interactive Wagers (Gaming)
|
|
|
393
|
378
|
4.0%
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
Sports
Betting Wagers1
|
|
|
178
|
167
|
6.7%
|
Sports
Betting Payout (%)1
|
|
|
82.0%
|
81.9%
|
0.1
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-2016-results-300366441.html
SOURCE International Game Technology PLC