LONDON, Aug. 1, 2019 /PRNewswire/ -- International
Game Technology PLC ("IGT") (NYSE:IGT) today reported financial
results for the second quarter ended June
30, 2019. Today, at 8:00 a.m.
EDT, management will host a conference call and webcast to
present the results; access details are provided below.
"We had a strong second quarter, with top-line growth driven by
a sharp increase in gaming product sales and impressive gains in
global lottery same-store revenues. Profits were up nicely in our
North America Gaming and Italy
segments," said Marco Sala, CEO
of IGT. "I am pleased with the broad-based improvement in key
performance indicators for our main businesses."
"EBITDA in the quarter was the highest we achieved in three
years and translated into substantial free cash flow for the first
half," said Alberto Fornaro, CFO
of IGT. "Recent capital markets activity strengthens our
financial structure, enhances flexibility, and positions us well
for the coming years."
Overview of Consolidated Second Quarter 2019 Results
|
|
|
Constant
|
|
Quarter
Ended
|
Y/Y
|
Currency
|
|
June 30,
|
Change
|
Change
|
|
2019
|
2018
|
(%)
|
(%)
|
|
(In $ millions,
unless otherwise noted)
|
|
|
|
|
|
Revenue
|
1,234
|
1,202
|
3%
|
5%
|
|
Operating
income
|
224
|
209
|
7%
|
10%
|
|
Net income/(loss) per
diluted share
|
$0.02
|
$0.79
|
NM
|
|
|
Adjusted
EBITDA
|
454
|
442
|
3%
|
5%
|
|
Adjusted operating
income
|
274
|
264
|
4%
|
6%
|
|
Adjusted net income
per diluted share
|
$0.44
|
$0.28
|
57%
|
|
|
Net
debt
|
7,637
|
7,530
|
1%
|
|
|
|
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 $1.23
billion, up 5% at constant currency
- Significant growth in global gaming product sales
- Sustained momentum in lottery same-store revenue
- More than offset increased machine gaming taxes in Italy
At constant currency, operating income rose 10% to $224 million; adjusted operating income up 6% to
$274 million
Adjusted EBITDA increased 5% at constant currency to
$454 million
- Growth in North America Gaming & Interactive and
Italy profits
- Solid North America Lottery results
- Net impact of discrete items in North America Gaming &
Interactive segment
-
- Multi-year, strategic lease and distribution agreement in
Oklahoma
- Higher litigation charges
Interest expense, net was $104
million, in line with the prior-year quarter
Income taxes of $63 million and
adjusted taxes of $79 million on
increased pre-tax income; adjusted tax rate improved due to higher
income in lower-tax jurisdictions
Net income attributable to IGT was $5
million in the quarter; adjusted net income attributable to
IGT was $91 million, up from
$57 million in the prior year on
growth in profit before taxes and a lower adjusted tax rate
Net income per diluted share of $0.02; adjusted net income per diluted share of
$0.44 versus $0.28 in the prior year
Net debt of $7.64 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 June
30
|
Q2
'19
|
Q2
'18
|
FX
|
|
Period Ended June
30
|
Q2
'19
|
Q2
'18
|
Change
|
|
Gaming
|
|
Total
revenue
|
268
|
254
|
6%
|
|
Installed base
units (end of period)
|
|
|
|
|
Gaming
services
|
165
|
169
|
-3%
|
|
Casino
|
21,073
|
23,351
|
-9.8%
|
|
|
Terminal
|
106
|
108
|
-2%
|
|
|
|
|
|
|
|
Other
|
59
|
61
|
-3%
|
|
Machine units
shipped
|
|
|
|
|
Product
sales
|
104
|
85
|
22%
|
|
New/expansion
|
438
|
1,803
|
-75.7%
|
|
|
Terminal
|
73
|
62
|
18%
|
|
Replacement
|
4,223
|
2,747
|
53.7%
|
|
|
Other
|
30
|
23
|
34%
|
|
Total
machines shipped
|
4,661
|
4,550
|
2.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
Total
revenue
|
6
|
0
|
NM
|
|
|
|
|
|
|
Service
revenue
|
6
|
0
|
NM
|
|
Note: Oklahoma
agreement reduces installed base by 2,076 units; no impact to
units shipped
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Revenue
|
274
|
254
|
8%
|
|
|
|
|
|
|
Operating
income
|
85
|
66
|
27%
|
|
|
|
|
|
Revenue of $274 million, up 8% at
constant currency
- Gaming service revenue of $165
million, compared to $169
million in the prior- year period
-
- Installed base stable year-over-year; up sequentially on an
underlying basis
-
- Growth in Class II markets, opening of Encore Boston
Harbor
- Net of 2,076-unit reduction due to new Oklahoma agreement
- Slight decrease in other gaming services; large, multi-year
poker contract in each period
- Product sales revenue of $104
million, up 22% over the prior year
-
- Terminal product sales rose 18% at constant currency
-
- 54% increase in replacement units driven by strength of product
offering; higher average selling price
- Lower new/expansion activity compared to the prior year
- Other product sales up 34% on strong systems revenue
- Other service revenue includes contributions from sports
betting and interactive
Operating income up 27% at constant currency on net impact of
discrete items
North America Lottery
|
Select Financial
Data
|
|
|
Constant
|
|
Key Performance
Indicators
|
|
|
%
|
|
Period Ended June
30
|
Q2
'19
|
Q2
'18
|
FX
|
|
Period Ended June
30
|
Q2
'19
|
Q2
'18
|
Change
|
|
Gaming
|
|
Total
revenue
|
37
|
38
|
-2%
|
|
Installed base
units (end of period)
|
|
|
|
|
Gaming
services
|
37
|
38
|
-4%
|
|
VLT - Government sponsored
|
14,215
|
15,176
|
-6.3%
|
|
|
Terminal
|
25
|
25
|
-3%
|
|
|
|
|
|
|
|
Other
|
12
|
13
|
-5%
|
|
Lottery same-store
revenue growth
|
|
|
|
|
Product
sales
|
1
|
0
|
NM
|
|
Instant
ticket & draw games
|
|
|
5.4%
|
|
|
|
|
|
|
|
|
Multistate jackpots
|
|
|
23.8%
|
|
Lottery
|
|
Total
revenue
|
270
|
270
|
0%
|
|
Total
lottery same-store revenue growth
|
|
7.2%
|
|
Lottery
services
|
238
|
236
|
1%
|
|
|
|
|
|
|
|
FMC
|
202
|
197
|
3%
|
|
|
|
|
|
|
|
Instant ticket
& draw games
|
168
|
164
|
3%
|
|
|
|
|
|
|
|
Other
services
|
34
|
33
|
1%
|
|
|
|
|
|
|
|
LMA
|
36
|
39
|
-8%
|
|
|
|
|
|
|
Product
sales
|
32
|
34
|
-5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
Total
revenue
|
1
|
0
|
NM
|
|
|
|
|
|
|
Service
revenue
|
1
|
0
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Revenue
|
309
|
309
|
0%
|
|
|
|
|
|
|
Operating
income
|
78
|
80
|
-3%
|
|
|
|
|
|
Revenue of $309 million, stable
with the high level achieved in the prior year
- Lottery service revenue of $238
million, essentially in line with the prior year
-
- Overall same-store revenue up 7.2% driven by growth in instant
ticket and draw games and increased jackpot activity
- More than offsets impact of Illinois supply contract conclusion
- Lottery product sales revenue of $32
million
-
- Essentially matched significant contribution from Massachusetts hardware sales in the prior
year
Operating income of $78 million,
down 3% at constant currency on higher depreciation
International
|
Select Financial
Data
|
|
|
Constant
|
|
Key Performance
Indicators
|
|
|
%
|
|
Period Ended June
30
|
Q2
'19
|
Q2
'18
|
FX
|
|
Period Ended June
30
|
Q2
'19
|
Q2
'18
|
Change
|
|
Gaming
|
|
Total
revenue
|
142
|
101
|
46%
|
|
Installed base
units (end of period)
|
|
|
|
|
Gaming
services
|
28
|
34
|
-11%
|
|
Casino
|
10,039
|
13,034
|
-23.0%
|
|
|
Terminal
|
12
|
13
|
3%
|
|
VLT - Government sponsored
|
4,436
|
3,306
|
34.2%
|
|
|
Other
|
16
|
21
|
-20%
|
|
Total
installed base units
|
14,475
|
16,340
|
-11.4%
|
|
Product
sales
|
114
|
67
|
76%
|
|
|
|
|
|
|
|
Terminal
|
82
|
52
|
61%
|
|
Machine units
shipped
|
|
|
|
|
|
Other
|
33
|
15
|
130%
|
|
New/expansion
|
700
|
732
|
-4.4%
|
|
|
|
|
|
|
|
|
Replacement
|
5,863
|
2,388
|
145.5%
|
|
Lottery
|
|
Total
revenue
|
70
|
78
|
-7%
|
|
Total
machines shipped
|
6,563
|
3,120
|
110.4%
|
|
Lottery
services
|
67
|
70
|
-1%
|
|
|
|
|
|
|
|
FMC
|
67
|
70
|
-1%
|
|
Lottery same-store
revenue growth
|
|
|
|
|
|
Instant ticket
& draw games
|
53
|
54
|
1%
|
|
Instant
ticket & draw games
|
|
|
2.4%
|
|
|
Other
services
|
14
|
16
|
-10%
|
|
Multistate jackpots
|
|
|
11.0%
|
|
Product
sales
|
3
|
8
|
-59%
|
|
Total
lottery same-store revenue growth
|
|
2.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
Total
revenue
|
17
|
19
|
-8%
|
|
|
|
|
|
|
Service
revenue
|
16
|
19
|
-5%
|
|
|
|
|
|
|
Product
sales
|
0
|
1
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Revenue
|
229
|
199
|
20%
|
|
|
|
|
|
|
Operating
income
|
30
|
36
|
-11%
|
|
|
|
|
|
Revenue of $229 million, up 20% at
constant currency
- Gaming product sales revenue of $114
million, up 76% at constant currency
-
- Significant increase in terminal units shipped, including
approximately 1,600 Sweden VLTs; average selling price down due to
mix
- Other product sales driven by higher software revenue
- Lottery service revenue of $67
million, essentially stable at constant currency
- Gaming service revenue was $28
million
-
- Year-over-year and sequential declines in the installed base
due to conversions
- Other gaming service revenue down on interactive performance
and non-wager-related items
Operating income of $30 million
compared to $36 million in the prior
year, down $4 million at
constant currency
- Lower profit flow-through on service and product revenue
- Higher SG&A
Italy
|
Select Financial
Data
|
|
|
Constant
|
|
Key Performance
Indicators
|
|
|
%
|
|
Period Ended June
30
|
Q2
'19
|
Q2
'18
|
FX
|
|
Period Ended June
30
|
Q2
'19
|
Q2
'18
|
Change
|
|
Gaming
|
|
Total
revenue
|
153
|
177
|
-9%
|
|
(In € millions,
except machines)
|
|
|
|
|
Gaming
services
|
153
|
176
|
-9%
|
|
Lottery
|
|
|
|
|
|
Terminal
|
136
|
160
|
-11%
|
|
Lotto
wagers
|
2,064
|
1,981
|
4.2%
|
|
|
Other
|
17
|
16
|
10%
|
|
10eLotto
|
1,507
|
1,422
|
6.0%
|
|
Product
sales
|
0
|
0
|
0%
|
|
Core
|
479
|
471
|
1.6%
|
|
|
|
|
|
|
|
|
Late
numbers
|
31
|
33
|
-5.6%
|
|
Lottery
|
|
Total
revenue
|
190
|
193
|
4%
|
|
MillionDAY
|
47
|
54
|
-14.0%
|
|
Lottery
services
|
190
|
193
|
4%
|
|
|
|
|
|
|
|
FMC
|
190
|
193
|
4%
|
|
Scratch & Win
wagers
|
2,257
|
2,237
|
0.9%
|
|
|
Instant ticket
& draw games
|
238
|
243
|
3%
|
|
|
|
|
|
|
|
Other
services
|
(48)
|
(50)
|
0%
|
|
Italy lottery
revenue growth
|
|
|
3.5%
|
|
Product
sales
|
0
|
0
|
0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gaming
|
|
|
|
|
Other
|
|
Total
revenue
|
79
|
71
|
16%
|
|
Installed base
(end of period)
|
|
|
|
|
Service
revenue
|
79
|
71
|
16%
|
|
VLT -
Operator (B2C)
|
10,929
|
10,991
|
-0.6%
|
|
Product
sales
|
0
|
0
|
0%
|
|
VLT -
Supplier (B2B)
|
7,524
|
8,251
|
-8.8%
|
|
|
|
|
|
|
|
|
AWP
|
40,268
|
43,657
|
-7.8%
|
|
Total
|
|
Revenue
|
422
|
441
|
1%
|
|
Total
installed base
|
58,721
|
62,899
|
-6.6%
|
|
Operating
income
|
133
|
131
|
8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wagers
|
|
|
|
|
|
|
|
|
|
|
|
VLT -
Operator (B2C)
|
1,427
|
1,407
|
1.4%
|
|
|
|
|
|
|
|
|
AWP
|
916
|
885
|
3.5%
|
|
|
|
|
|
|
|
|
Interactive wagers (gaming)
|
508
|
459
|
10.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
Sports
betting wagers (1)
|
252
|
244
|
3.1%
|
|
|
|
|
|
|
|
|
Sports
betting payout (%) (1)
|
82.2%
|
82.9%
|
-0.6
pp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
virtual wagers and pools & horses
|
Revenue of $422 million,
relatively stable at constant currency
- Lottery service revenue of $190
million, up 4% at constant currency
-
- Lotto wagers up 4.2% on continued growth in 10eLotto
- Scratch & Win wagers rose 0.9% on success of new games
- Gaming service revenue of $153
million compared to $176
million in the prior year
-
- Increased taxes on AWP and VLT machines
- Wagers grew despite lower installed base on quality of
distribution network and new game introductions
- Other service revenue of $79
million, up 16% at constant currency
-
- Beneficial sports betting payout comparison; higher wagers
despite World Cup in the prior year
Operating income of $133 million,
up 8% at constant currency
- Strong profit flow-through from lotteries, sports betting, and
interactive
- Beneficial shift in expense timing
- More than offsets increased gaming machine taxes
Other Developments
The Company's Board of Directors declared a quarterly cash
dividend of $0.20 per ordinary
share
- Record date of August 15,
2019
- Payment date of August 29,
2019
Issuance of €750 million 3.5% Notes due 2026, as previously
announced
- Net proceeds used to redeem ~ €438 million 4.125% Notes due
2020
- Balance used to partially repay utilizations under revolving
credit facilities
Revolving credit facility amendment and extension in
July 2019, as previously
announced
- Maturity extended to July 31,
2024
- Aggregate commitments reduced to ~ 1.75 billion
- Modifications to certain provisions that increase
flexibility
Board appointment, as previously announced
- The Company's Board of Directors appointed Dr. Samantha Ravich as an independent director,
effective July 30, 2019
Outlook
Outlook updated for currency; no change to operating
assumptions
- 2019 adjusted EBITDA of $1.675 -
$1.735 billion
- Capital expenditures of $450 -
$550 million
- Full-year EUR/USD exchange rate of 1.12 vs. prior 1.15
estimate
Conference Call and Webcast
August 1, 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 1990309
- 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 1990309
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
|
|
June
30,
|
|
2019
|
|
2018
|
|
|
|
|
|
Service
revenue
|
980,031
|
|
1,007,067
|
|
Product
sales
|
254,222
|
|
195,271
|
|
Total
revenue
|
1,234,253
|
|
1,202,338
|
|
|
|
|
|
Cost of
services
|
594,598
|
|
607,684
|
|
Cost of product
sales
|
160,786
|
|
122,403
|
|
Selling, general and
administrative
|
213,263
|
|
196,088
|
|
Research and
development
|
65,383
|
|
63,957
|
|
Other operating
(income) expense, net
|
(23,492)
|
|
3,129
|
|
Total operating
expenses
|
1,010,538
|
|
993,261
|
|
|
|
|
|
Operating
income
|
223,715
|
|
209,077
|
|
|
|
|
|
Interest expense,
net
|
(103,860)
|
|
(102,888)
|
|
Foreign exchange
(loss) gain, net
|
(41,061)
|
|
172,546
|
|
Other income
(expense), net
|
23,493
|
|
(31,304)
|
|
Total
non-operating (expenses) income
|
(121,428)
|
|
38,354
|
|
|
|
|
|
Income before
provision for income taxes
|
102,287
|
|
247,431
|
|
|
|
|
|
Provision for income
taxes
|
63,300
|
|
52,232
|
|
|
|
|
|
Net
income
|
38,987
|
|
195,199
|
|
|
|
|
|
Less: Net income
attributable to non-controlling interests
|
34,131
|
|
33,703
|
|
|
|
|
|
Net income
attributable to IGT PLC
|
4,856
|
|
161,496
|
|
|
|
|
|
|
|
|
|
Net income
attributable to IGT PLC per common share - basic
|
0.02
|
|
0.79
|
|
Net income
attributable to IGT PLC per common share - diluted
|
0.02
|
|
0.79
|
|
|
|
|
|
Weighted-average
shares - basic
|
204,407
|
|
204,118
|
|
Weighted-average
shares - diluted
|
204,412
|
|
204,516
|
|
International Game
Technology PLC
|
|
Consolidated
Statements of Operations
|
|
($ and shares
in thousands, except per share amounts)
|
|
Unaudited
|
|
|
|
|
|
For the six
months ended
|
|
June
30,
|
|
2019
|
|
2018
|
|
|
|
|
|
Service
revenue
|
1,971,062
|
|
2,054,018
|
|
Product
sales
|
408,107
|
|
355,276
|
|
Total
revenue
|
2,379,169
|
|
2,409,294
|
|
|
|
|
|
Cost of
services
|
1,189,925
|
|
1,225,742
|
|
Cost of product
sales
|
260,971
|
|
225,754
|
|
Selling, general and
administrative
|
415,100
|
|
411,306
|
|
Research and
development
|
131,501
|
|
135,220
|
|
Other operating
(income) expense, net
|
(20,195)
|
|
5,200
|
|
Total operating
expenses
|
1,977,302
|
|
2,003,222
|
|
|
|
|
|
Operating
income
|
401,867
|
|
406,072
|
|
|
|
|
|
Interest expense,
net
|
(206,929)
|
|
(210,168)
|
|
Foreign exchange
gain, net
|
17,541
|
|
75,851
|
|
Other income
(expense), net
|
22,995
|
|
(28,323)
|
|
Total
non-operating expenses
|
(166,393)
|
|
(162,640)
|
|
|
|
|
|
Income before
provision for income taxes
|
235,474
|
|
243,432
|
|
|
|
|
|
Provision for income
taxes
|
115,992
|
|
112,737
|
|
|
|
|
|
Net
income
|
119,482
|
|
130,695
|
|
|
|
|
|
Less: Net income
attributable to non-controlling interests
|
74,372
|
|
72,345
|
|
|
|
|
|
Net income
attributable to IGT PLC
|
45,110
|
|
58,350
|
|
|
|
|
|
|
|
|
|
Net income
attributable to IGT PLC per common share - basic
|
0.22
|
|
0.29
|
|
Net income
attributable to IGT PLC per common share - diluted
|
0.22
|
|
0.29
|
|
|
|
|
|
Weighted-average
shares - basic
|
204,309
|
|
203,859
|
|
Weighted-average
shares - diluted
|
204,532
|
|
204,345
|
|
International Game
Technology PLC
|
|
Consolidated
Balance Sheets
|
|
($
thousands)
|
|
Unaudited
|
|
|
|
|
|
June 30,
|
|
December
31,
|
|
2019
|
|
2018
|
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
400,928
|
|
250,669
|
|
Restricted cash and
cash equivalents
|
256,105
|
|
261,108
|
|
Trade and other
receivables, net
|
948,520
|
|
949,085
|
|
Inventories
|
264,911
|
|
282,698
|
|
Other current
assets
|
489,440
|
|
504,061
|
|
Income taxes
receivable
|
45,576
|
|
39,075
|
|
Total current
assets
|
2,405,480
|
|
2,286,696
|
|
Systems, equipment
and other assets related to contracts, net
|
1,350,575
|
|
1,404,426
|
|
Property, plant and
equipment, net
|
140,033
|
|
185,349
|
|
Operating lease
right-of-use-assets
|
360,021
|
|
-
|
|
Goodwill
|
5,572,217
|
|
5,580,227
|
|
Intangible assets,
net
|
1,940,656
|
|
2,044,723
|
|
Other non-current
assets
|
2,030,137
|
|
2,108,964
|
|
Deferred income
taxes
|
37,738
|
|
38,117
|
|
Total non-current
assets
|
11,431,377
|
|
11,361,806
|
|
Total
assets
|
13,836,857
|
|
13,648,502
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
1,063,886
|
|
1,142,371
|
|
Other current
liabilities
|
867,639
|
|
816,722
|
|
Current portion of
long-term debt
|
829,601
|
|
-
|
|
Short-term
borrowings
|
55,349
|
|
34,822
|
|
Income taxes
payable
|
74,001
|
|
8,209
|
|
Total current
liabilities
|
2,890,476
|
|
2,002,124
|
|
Long-term debt, less
current portion
|
7,152,523
|
|
7,977,267
|
|
Deferred income
taxes
|
450,003
|
|
446,083
|
|
Income taxes
payable
|
25,654
|
|
25,654
|
|
Operating lease
liabilities
|
325,477
|
|
-
|
|
Other non-current
liabilities
|
386,584
|
|
445,445
|
|
Total non-current
liabilities
|
8,340,241
|
|
8,894,449
|
|
Total
liabilities
|
11,230,717
|
|
10,896,573
|
|
Commitments and
contingencies
|
|
|
|
|
Shareholders'
equity
|
2,606,140
|
|
2,751,929
|
|
Total liabilities
and shareholders' equity
|
13,836,857
|
|
13,648,502
|
|
International Game
Technology PLC
|
|
Consolidated
Statements of Cash Flows
|
|
($
thousands)
|
|
Unaudited
|
|
|
|
|
|
For the six
months ended
|
|
|
June
30,
|
|
|
2019
|
|
2018
|
|
Cash flows from
operating activities
|
|
|
|
|
|
Net income
|
|
119,482
|
|
130,695
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation
|
|
209,271
|
|
202,448
|
|
Amortization
|
|
137,201
|
|
136,450
|
|
Service revenue
amortization
|
|
103,935
|
|
111,115
|
|
Stock-based
compensation expense
|
|
12,502
|
|
17,119
|
|
Debt issuance cost
amortization
|
|
11,523
|
|
11,534
|
|
Loss on
extinguishment of debt
|
|
9,628
|
|
29,584
|
|
Deferred income
taxes
|
|
6,515
|
|
(9,817)
|
|
Foreign exchange
gain, net
|
|
(17,541)
|
|
(75,851)
|
|
Gain on sale of
assets
|
|
(63,239)
|
|
(1,129)
|
|
Other non-cash costs,
net
|
|
31,392
|
|
1,610
|
|
Changes in operating
assets and liabilities, excluding the effects of
acquisitions:
|
|
|
|
|
Trade and other
receivables
|
|
49,059
|
|
49,832
|
|
Inventories
|
|
802
|
|
(20,787)
|
|
Upfront Italian
license fee
|
|
-
|
|
(366,270)
|
|
Accounts
payable
|
|
(57,317)
|
|
(56,732)
|
|
Other assets and
liabilities
|
|
38,508
|
|
(39,651)
|
|
Net cash provided
by operating activities
|
|
591,721
|
|
120,150
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
Capital
expenditures
|
|
(231,003)
|
|
(258,967)
|
|
Proceeds from sale of
assets
|
|
65,429
|
|
6,065
|
|
Other
|
|
2,545
|
|
1,458
|
|
Net cash used in
investing activities
|
|
(163,029)
|
|
(251,444)
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
Principal payments on
long-term debt
|
|
(833,129)
|
|
(1,058,753)
|
|
Dividends paid -
non-controlling interests
|
|
(129,394)
|
|
(125,808)
|
|
Dividends
paid
|
|
(81,729)
|
|
(81,553)
|
|
Return of capital -
non-controlling interests
|
|
(70,399)
|
|
(53,600)
|
|
Net payments of
financial liabilities
|
|
(11,395)
|
|
(36,586)
|
|
Payments in
connection with extinguishment of debt
|
|
(8,598)
|
|
(24,281)
|
|
Debt issuance costs
paid
|
|
(5,934)
|
|
(4,047)
|
|
Capital increase -
non-controlling interests
|
|
1,075
|
|
134,536
|
|
Net proceeds from
short-term borrowings
|
|
19,573
|
|
28,400
|
|
Proceeds from
long-term debt
|
|
846,975
|
|
863,911
|
|
Other
|
|
(6,733)
|
|
(17,696)
|
|
Net cash used in
financing activities
|
|
(279,688)
|
|
(375,477)
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents, and restricted
cash
|
|
149,004
|
|
(506,771)
|
|
Effect of exchange
rate changes on cash and cash equivalents, and restricted
cash
|
|
(3,748)
|
|
22,352
|
|
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
|
|
657,033
|
|
821,011
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Cash Flow Information:
|
|
|
|
|
|
Interest
paid
|
|
(211,591)
|
|
(262,886)
|
|
Income taxes (paid)
refunded
|
|
(49,777)
|
|
13,313
|
|
International Game
Technology PLC
|
|
Net
Debt
|
|
($
thousands)
|
|
Unaudited
|
|
|
|
|
|
|
|
June 30,
|
|
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)
|
|
-
|
|
27,519
|
|
6.250% Senior Secured
Notes due February 2022 (1)
|
|
1,488,631
|
|
1,469,609
|
|
4.750% Senior Secured
Notes due February 2023 (2)
|
|
959,758
|
|
964,730
|
|
5.350% Senior Secured
Notes due October 2023(1)
|
|
60,936
|
|
60,983
|
|
3.500% Senior Secured
Notes due July 2024 (2)
|
|
564,139
|
|
567,179
|
|
6.500% Senior Secured
Notes due February 2025 (1)
|
|
1,089,159
|
|
1,088,385
|
|
3.500% Senior Secured
Notes due June 2026 (2)
|
|
845,482
|
|
-
|
|
6.250% Senior Secured
Notes due January 2027(1)
|
|
743,021
|
|
742,667
|
|
Senior Secured
Notes, long-term
|
|
5,751,126
|
|
5,858,491
|
|
|
|
|
|
|
Revolving Credit
Facilities due July 2021 (1) (2)
|
|
69,114
|
|
413,381
|
|
Term Loan Facilities
due January 2023 (2)
|
|
1,332,283
|
|
1,705,395
|
|
Long-term debt,
less current portion
|
|
7,152,523
|
|
7,977,267
|
|
|
|
|
|
|
4.750% Senior Secured
Notes due March 2020 (2)
|
|
437,997
|
|
-
|
|
5.500% Senior Secured
Notes due June 2020 (1)
|
|
27,444
|
|
-
|
|
Term Loan Facilities
due January 2023 (2)
|
|
364,160
|
|
-
|
|
Current portion of
long-term debt
|
|
829,601
|
|
-
|
|
|
|
|
|
|
Short-term
borrowings
|
|
55,349
|
|
34,822
|
|
Total
debt
|
|
8,037,473
|
|
8,012,089
|
|
|
|
|
|
|
Less: Cash and cash
equivalents
|
|
400,928
|
|
250,669
|
|
|
|
|
|
|
Net
debt
|
|
7,636,545
|
|
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
|
|
|
June 30,
|
|
|
2019
|
|
2018
|
|
|
|
|
|
|
Net income
|
|
38,987
|
|
195,199
|
|
Provision for income
taxes
|
|
63,300
|
|
52,232
|
|
Non-operating
expenses (income)
|
|
121,428
|
|
(38,354)
|
|
Depreciation
|
|
103,940
|
|
104,361
|
|
Amortization
|
|
69,117
|
|
68,058
|
|
Service revenue
amortization
|
|
51,646
|
|
54,465
|
|
Stock-based
compensation expense
|
|
2,912
|
|
2,941
|
|
Other
|
|
2,379
|
|
2,913
|
|
Adjusted
EBITDA
|
|
453,709
|
|
441,815
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
445,107
|
|
42,940
|
|
Capital
expenditures
|
|
(111,818)
|
|
(124,306)
|
|
Free Cash
Flow
|
|
333,289
|
|
(81,366)
|
|
International Game
Technology PLC
|
|
Adjusted EBITDA
and Free Cash Flow
|
|
Reconciliations of
Non-GAAP Financial Measures
|
|
($
thousands)
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six months
ended
|
|
|
June 30,
|
|
|
2019
|
|
2018
|
|
|
|
|
|
|
Net income
|
|
119,482
|
|
130,695
|
|
Provision for income
taxes
|
|
115,992
|
|
112,737
|
|
Non-operating
expenses
|
|
166,393
|
|
162,640
|
|
Depreciation
|
|
209,271
|
|
202,448
|
|
Amortization
|
|
137,201
|
|
136,450
|
|
Service revenue
amortization
|
|
103,935
|
|
111,115
|
|
Stock-based
compensation expense
|
|
12,502
|
|
17,119
|
|
Other
|
|
5,606
|
|
4,767
|
|
Adjusted
EBITDA
|
|
870,382
|
|
877,971
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
591,721
|
|
120,150
|
|
Capital
expenditures
|
|
(231,003)
|
|
(258,967)
|
|
Free Cash
Flow
|
|
360,718
|
|
(138,817)
|
|
International Game Technology
PLC
|
|
Consolidated
Statement of Operations
|
|
Reconciliation of Non-GAAP Financial
Measures
|
|
($ and
shares in thousands, except per share amounts)
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter to
date
|
|
|
|
|
|
|
|
Quarter to
date
|
|
|
June
2019
|
|
Adjustments
|
|
June
2019
|
|
|
As
|
|
Purchase
|
|
Foreign
|
|
Refinancing
and
|
|
As
|
|
|
Reported
|
|
Accounting
|
|
Exchange
|
|
Other
|
|
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
1,234,253
|
|
(181)
|
|
-
|
|
-
|
|
1,234,072
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services
|
|
594,598
|
|
(17,769)
|
|
-
|
|
-
|
|
576,829
|
|
Cost of product
sales
|
|
160,786
|
|
(3,912)
|
|
-
|
|
-
|
|
156,874
|
|
Selling,
general and administrative
|
|
213,263
|
|
(26,502)
|
|
-
|
|
-
|
|
186,761
|
|
Research and
development
|
|
65,383
|
|
(72)
|
|
-
|
|
-
|
|
65,311
|
|
Other operating
income, net
|
|
(23,492)
|
|
-
|
|
-
|
|
(2,454)
|
|
(25,946)
|
|
Total
operating expenses
|
|
1,010,538
|
|
(48,255)
|
|
-
|
|
(2,454)
|
|
959,829
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
223,715
|
|
48,074
|
|
-
|
|
2,454
|
|
274,243
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense, net
|
|
(103,860)
|
|
26
|
|
-
|
|
-
|
|
(103,834)
|
|
Foreign
exchange loss, net
|
|
(41,061)
|
|
-
|
|
41,061
|
|
-
|
|
-
|
|
Other income,
net
|
|
23,493
|
|
-
|
|
-
|
|
9,628
|
|
33,121
|
|
Total
non-operating expenses
|
|
(121,428)
|
|
26
|
|
41,061
|
|
9,628
|
|
(70,713)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before provision for income taxes
|
|
102,287
|
|
48,100
|
|
41,061
|
|
12,082
|
|
203,530
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
income taxes (a)
|
|
63,300
|
|
11,552
|
|
3,264
|
|
558
|
|
78,674
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
38,987
|
|
36,548
|
|
37,797
|
|
11,524
|
|
124,856
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net
income attributable to non-controlling interests
|
|
34,131
|
|
26
|
|
-
|
|
-
|
|
34,157
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to IGT PLC
|
|
4,856
|
|
36,522
|
|
37,797
|
|
11,524
|
|
90,699
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
per common share - diluted
|
|
0.02
|
|
|
|
|
|
|
|
0.44
|
|
Weighted-average shares -
diluted
|
|
204,412
|
|
|
|
|
|
|
|
204,412
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year to
date
|
|
|
|
|
|
|
|
Year to
date
|
|
|
June
2019
|
|
Adjustments
|
|
June
2019
|
|
|
As
|
|
Purchase
|
|
Foreign
|
|
Refinancing
and
|
|
As
|
|
|
Reported
|
|
Accounting
|
|
Exchange
|
|
Other
|
|
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
2,379,169
|
|
(359)
|
|
-
|
|
-
|
|
2,378,810
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services
|
|
1,189,925
|
|
(36,544)
|
|
-
|
|
-
|
|
1,153,381
|
|
Cost of product
sales
|
|
260,971
|
|
(7,781)
|
|
-
|
|
-
|
|
253,190
|
|
Selling,
general and administrative
|
|
415,100
|
|
(52,580)
|
|
-
|
|
-
|
|
362,520
|
|
Research and
development
|
|
131,501
|
|
(292)
|
|
-
|
|
-
|
|
131,209
|
|
Other operating
income, net
|
|
(20,195)
|
|
-
|
|
-
|
|
(5,751)
|
|
(25,946)
|
|
Total
operating expenses
|
|
1,977,302
|
|
(97,197)
|
|
-
|
|
(5,751)
|
|
1,874,354
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
401,867
|
|
96,838
|
|
-
|
|
5,751
|
|
504,456
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense, net
|
|
(206,929)
|
|
51
|
|
-
|
|
-
|
|
(206,878)
|
|
Foreign
exchange gain, net
|
|
17,541
|
|
-
|
|
(17,541)
|
|
-
|
|
-
|
|
Other income,
net
|
|
22,995
|
|
-
|
|
-
|
|
9,628
|
|
32,623
|
|
Total
non-operating expenses
|
|
(166,393)
|
|
51
|
|
(17,541)
|
|
9,628
|
|
(174,255)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before provision for income taxes
|
|
235,474
|
|
96,889
|
|
(17,541)
|
|
15,379
|
|
330,201
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
income taxes (a)
|
|
115,992
|
|
23,242
|
|
174
|
|
1,362
|
|
140,770
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
119,482
|
|
73,647
|
|
(17,715)
|
|
14,017
|
|
189,431
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net
income attributable to non-controlling interests
|
|
74,372
|
|
51
|
|
-
|
|
-
|
|
74,423
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to IGT PLC
|
|
45,110
|
|
73,596
|
|
(17,715)
|
|
14,017
|
|
115,008
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
per common share - diluted
|
|
0.22
|
|
|
|
|
|
|
|
0.56
|
|
Weighted-average shares -
diluted
|
|
204,532
|
|
|
|
|
|
|
|
204,532
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter to
date
|
|
|
|
|
|
|
|
Quarter to
date
|
|
|
June
2018
|
|
Adjustments
|
|
June
2018
|
|
|
As
|
|
Purchase
|
|
Foreign
|
|
Refinancing
and
|
|
As
|
|
|
Reported
|
|
Accounting
|
|
Exchange
|
|
Other
|
|
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
1,202,338
|
|
(182)
|
|
-
|
|
-
|
|
1,202,156
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services
|
|
607,684
|
|
(21,061)
|
|
-
|
|
-
|
|
586,623
|
|
Cost of product
sales
|
|
122,403
|
|
(3,912)
|
|
-
|
|
-
|
|
118,491
|
|
Selling,
general and administrative
|
|
196,088
|
|
(26,736)
|
|
-
|
|
-
|
|
169,352
|
|
Research and
development
|
|
63,957
|
|
(219)
|
|
-
|
|
-
|
|
63,738
|
|
Other operating
expense, net
|
|
3,129
|
|
-
|
|
-
|
|
(3,129)
|
|
-
|
|
Total
operating expenses
|
|
993,261
|
|
(51,928)
|
|
-
|
|
(3,129)
|
|
938,204
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
209,077
|
|
51,746
|
|
-
|
|
3,129
|
|
263,952
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense, net
|
|
(102,888)
|
|
508
|
|
-
|
|
-
|
|
(102,380)
|
|
Foreign
exchange gain, net
|
|
172,546
|
|
-
|
|
(172,546)
|
|
-
|
|
-
|
|
Other expense,
net
|
|
(31,304)
|
|
1
|
|
-
|
|
29,584
|
|
(1,719)
|
|
Total
non-operating income (expenses)
|
|
38,354
|
|
509
|
|
(172,546)
|
|
29,584
|
|
(104,099)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before provision for income taxes
|
|
247,431
|
|
52,255
|
|
(172,546)
|
|
32,713
|
|
159,853
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
income taxes (a)
|
|
52,232
|
|
12,345
|
|
3,683
|
|
589
|
|
68,849
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
195,199
|
|
39,910
|
|
(176,229)
|
|
32,124
|
|
91,004
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net
income attributable to non-controlling interests
|
|
33,703
|
|
25
|
|
-
|
|
-
|
|
33,728
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to IGT PLC
|
|
161,496
|
|
39,885
|
|
(176,229)
|
|
32,124
|
|
57,276
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
per common share - diluted
|
|
0.79
|
|
|
|
|
|
|
|
0.28
|
|
Weighted-average shares -
diluted
|
|
204,516
|
|
|
|
|
|
|
|
204,516
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year to
date
|
|
|
|
|
|
|
|
Year to
date
|
|
|
June
2018
|
|
Adjustments
|
|
June
2018
|
|
|
As
|
|
Purchase
|
|
Foreign
|
|
Refinancing
and
|
|
As
|
|
|
Reported
|
|
Accounting
|
|
Exchange
|
|
Other
|
|
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
2,409,294
|
|
(359)
|
|
-
|
|
-
|
|
2,408,935
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services
|
|
1,225,742
|
|
(42,216)
|
|
-
|
|
-
|
|
1,183,526
|
|
Cost of product
sales
|
|
225,754
|
|
(7,781)
|
|
-
|
|
-
|
|
217,973
|
|
Selling,
general and administrative
|
|
411,306
|
|
(53,585)
|
|
-
|
|
-
|
|
357,721
|
|
Research and
development
|
|
135,220
|
|
(454)
|
|
-
|
|
-
|
|
134,766
|
|
Other operating
expense, net
|
|
5,200
|
|
-
|
|
-
|
|
(5,200)
|
|
-
|
|
Total
operating expenses
|
|
2,003,222
|
|
(104,036)
|
|
-
|
|
(5,200)
|
|
1,893,986
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
406,072
|
|
103,677
|
|
-
|
|
5,200
|
|
514,949
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense, net
|
|
(210,168)
|
|
1,012
|
|
-
|
|
-
|
|
(209,156)
|
|
Foreign
exchange gain, net
|
|
75,851
|
|
-
|
|
(75,851)
|
|
-
|
|
-
|
|
Other expense,
net
|
|
(28,323)
|
|
(2,184)
|
|
-
|
|
29,584
|
|
(923)
|
|
Total
non-operating expenses
|
|
(162,640)
|
|
(1,172)
|
|
(75,851)
|
|
29,584
|
|
(210,079)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before provision for income taxes
|
|
243,432
|
|
102,505
|
|
(75,851)
|
|
34,784
|
|
304,870
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
income taxes (a)
|
|
112,737
|
|
24,255
|
|
6,329
|
|
1,141
|
|
144,462
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
130,695
|
|
78,250
|
|
(82,180)
|
|
33,643
|
|
160,408
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net
income attributable to non-controlling interests
|
|
72,345
|
|
50
|
|
-
|
|
-
|
|
72,395
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to IGT PLC
|
|
58,350
|
|
78,200
|
|
(82,180)
|
|
33,643
|
|
88,013
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
per common share - diluted
|
|
0.29
|
|
|
|
|
|
|
|
0.43
|
|
Weighted-average shares -
diluted
|
|
204,345
|
|
|
|
|
|
|
|
204,345
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
|
|
|
|
|
|
Select Financial
Data
|
|
|
Constant
|
|
Key Performance
Indicators
|
|
|
%
|
|
Period Ended June
30
|
Q2
'19
|
Q2
'18
|
FX
|
|
Period Ended June
30
|
Q2
'19
|
Q2
'18
|
Change
|
|
Gaming
|
|
Total
revenue
|
601
|
570
|
8%
|
|
Installed base
units (end of period)
|
|
|
|
|
Gaming
services
|
382
|
418
|
-6%
|
|
Casino
|
31,112
|
36,385
|
-14.5%
|
|
|
Terminal
|
279
|
307
|
-7%
|
|
VLT -
Government sponsored (ex-Italy)
|
18,651
|
18,482
|
0.9%
|
|
|
Other
|
103
|
111
|
-5%
|
|
VLT -
Italy supplier (B2B)
|
7,524
|
8,251
|
-8.8%
|
|
Product
sales
|
219
|
152
|
46%
|
|
Total
installed base units
|
57,287
|
63,118
|
-9.2%
|
|
|
Terminal
|
155
|
114
|
37%
|
|
Yield
(average gross revenue per unit per day)
|
$ 27.96
|
$ 27.74
|
0.8%
|
|
|
Other
|
64
|
38
|
72%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional Italian network details:
|
|
|
|
|
Lottery
|
|
Total
revenue
|
531
|
542
|
0%
|
|
VLT -
Operator (B2C)
|
10,929
|
10,991
|
-0.6%
|
|
Lottery
services
|
495
|
499
|
2%
|
|
AWP
|
40,268
|
43,657
|
-7.8%
|
|
|
FMC
|
460
|
460
|
2%
|
|
|
|
|
|
|
|
Instant ticket
& draw games
|
460
|
461
|
3%
|
|
Machine units
shipped
|
|
|
|
|
|
Other
services
|
0
|
(1)
|
NM
|
|
New/expansion
|
1,138
|
2,535
|
-55.1%
|
|
|
LMA
|
36
|
39
|
-8%
|
|
Replacement
|
10,086
|
5,135
|
96.4%
|
|
Product
sales
|
35
|
42
|
-15%
|
|
Total
machines shipped
|
11,224
|
7,670
|
46.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
Total
revenue
|
102
|
91
|
19%
|
|
Global lottery
same-store revenue growth
|
|
|
|
Service
revenue
|
102
|
90
|
20%
|
|
Instant
ticket & draw games
|
|
4.6%
|
|
Product
sales
|
0
|
1
|
NM
|
|
Multistate jackpots
|
|
22.2%
|
|
|
|
|
|
|
|
|
Total
lottery same-store revenue growth (ex-Italy)
|
|
6.1%
|
|
Consolidated
|
|
Revenue
|
1,234
|
1,202
|
5%
|
|
Italy
lottery revenue growth
|
|
3.5%
|
|
Operating
Income:
|
|
|
|
|
|
|
|
|
|
|
Segment
total
|
327
|
313
|
7%
|
|
|
|
|
|
|
|
Purchase
accounting
|
(48)
|
(52)
|
7%
|
|
|
|
|
|
|
|
Corporate
support
|
(55)
|
(52)
|
-9%
|
|
|
|
|
|
|
|
Total
|
224
|
209
|
10%
|
|
|
|
|
|
View original content to download
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SOURCE International Game Technology PLC