LONDON, May 18, 2020 /PRNewswire/ -- International
Game Technology PLC ("IGT") (NYSE:IGT) today reported financial
results for the first quarter ended March
31, 2020. Today, at 8:00 a.m. EDT, management will host
a conference call and webcast to present the results; access
details are provided below.
"After a solid start in the first two months of the year, we
quickly shifted our focus to the global COVID-19 health crisis in
March," said Marco Sala, CEO of
IGT. "The safety and well-being of our people, customers, and
communities have been our highest priority since day one. We
implemented robust business continuity plans and maintain service
levels at our normal, high standards. I am grateful for the passion
and perseverance the entire IGT team has demonstrated during these
unprecedented times and I am confident IGT is well positioned to
emerge from the crisis a stronger, even more competitive
organization."
"We've taken swift actions across all non-essential costs and
are now switching our focus to structural cost savings initiatives.
At the same time, we have adopted strict measures to preserve
liquidity in the current environment," said Max Chiara, CFO of IGT. "Given the
uncertainty created by COVID-19, we are withdrawing our previous
financial outlook for 2020, but we are confident that with
$2.2 billion of liquidity, we are
geared with sound financial flexibility to weather the storm caused
by the COVID-19 pandemic."
Overview of Consolidated First Quarter 2020 Results
|
|
|
|
Constant
|
|
Quarter
Ended
|
Y/Y
|
Currency
|
|
March 31,
|
Change
|
Change
|
|
2020
|
2019
|
(%)
|
(%)
|
|
|
|
|
|
(In $ millions,
unless otherwise noted)
|
|
|
|
|
Revenue
|
940
|
1,145
|
-18%
|
-16%
|
Operating
income/(loss)
|
(197)
|
178
|
NM
|
NM
|
Net income/(loss) per
diluted share
|
($1.21)
|
$0.20
|
NM
|
|
Adjusted
EBITDA
|
309
|
417
|
-26%
|
-25%
|
Adjusted net income
per diluted share
|
$0.08
|
$0.12
|
-32%
|
|
Net debt
|
7,170
|
7,714
|
-7%
|
|
|
Note: Adjusted EBITDA
and adjusted net income per diluted share are non-GAAP financial
measures. Reconciliations of non-GAAP financial measures to the
most directly comparable GAAP financial measures are provided at
the end of this news release.
|
First quarter 2020 results reflect the impact of global COVID-19
restrictions. Revenue declines were evident in each business
segment and across all primary revenue streams. Corresponding
profits were also affected.
Financial highlights:
Consolidated revenue of $940 million, down 18% from
the prior year
- Global closures of casinos and gaming halls impact gaming
service revenue
- Lottery service revenue lower on reduced traffic to points of
sale
- Gaming product sales reflect fewer unit shipments in
North America and International,
partly offset by higher non-terminal revenue
- Lottery product sales growth driven by increased non-terminal
revenue
Operating loss of $197 million, down from income of
$178 million in the prior year
- Includes non-cash, non-tax-deductible goodwill impairment
charge of $296 million, reducing the
carrying value of the International and North America Gaming &
Interactive segments
-
- Driven by lower near-term forecasts as a result of
COVID-19
- No impact on the Company's operations, cash flow, ability to
service debt, compliance with financial covenants, or underlying
liquidity
- Lower profit contribution due to revenue mix
-
- Service revenue contribution down on COVID-19 impacts
- High-margin, non-terminal revenue offsets lower terminal
product sales
- Benefit from initial actions taken to reduce operating
costs
Interest expense, net declined 2% to $101 million
Income taxes of $3 million, down from $53 million
- Reduced pre-tax income and associated removal of United States corporate minimum tax
- Lower level of foreign earnings subject to United States taxation
Net loss attributable to IGT was $248 million; adjusted net
income attributable to IGT of $17 million versus
$24 million in the prior year
- Net loss reflects goodwill impairment charge
- Adjusted net income includes higher foreign currency gains in
the current year
Adjusted EBITDA of $309 million, down 26% from the
prior-year period
Net loss per diluted share of $1.21; adjusted net income per diluted share of
$0.08 compared to $0.12 in the prior year
Net debt of $7.17 billion
improved 3% from $7.38 billion at December 31, 2019; Net debt leverage of 4.47x, up
from 4.31x at December 31, 2019,
primarily due to lower EBITDA in the first quarter of 2020
Cash and Liquidity Update
- Preserving cash and liquidity is the top financial
priority
- At March 31, 2020, liquidity
totalled $2.2 billion, comprised of
$1.5 billion in unrestricted cash and
$743 million available under
revolving credit facilities
- During the quarter and at maturity, the Company redeemed in
full its €388 million, 4.750% Senior Secured Euro Notes
- As announced on May 13, 2020, the
terms of the Company's revolving credit facilities and term loan
were amended, providing increased flexibility to navigate through
the uncertainty caused by the COVID-19 pandemic
COVID-19 Update: Withdrawing 2020 outlook
- The Company is withdrawing its previous 2020 outlook due to
COVID-19 uncertainty
- IGT's highest priority remains the safety and well-being of its
employees, customers, and communities during this challenging
time
- 2020: about $500 million in cost
savings / capital spending avoidance have been identified to help
mitigate the impact of COVID-19; actions taken include:
-
- Temporary, company-wide salary reductions; cancellation of 2020
salary increases and short-term incentive compensation
programs; furloughs and hiring freeze
- Significant reductions in discretionary costs such as
marketing, travel, and outside services
- Over one-third reduction in planned maintenance capital
expenditures for the balance of the year
Conference Call and Webcast
May 18, 2020, 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: +1 844 842 7999
- Outside the US/Canada
toll-free number: +1 612 979 9887
- Conference ID/confirmation code: 5782965
- A telephone replay of the call will be available for one
week
-
- US/Canada replay number: +1
855 859 2056
- Outside the US/Canada replay
number: +1 404 537 3406
- ID/Confirmation code: 5782965
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 2020 are
calculated using the same foreign exchange rates as the
corresponding 2019 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 deliver entertaining and responsible gaming experiences
for players across all channels and regulated segments, from Gaming
Machines and Lotteries to Sports Betting and Digital. Leveraging a
wealth of compelling content, substantial investment in innovation,
player insights, operational expertise, and leading-edge
technology, our solutions deliver unrivalled gaming experiences
that engage players and drive growth. We have a well-established
local presence and relationships with governments and regulators in
more than 100 countries around the world, and create value by
adhering to the highest standards of service, integrity, and
responsibility. IGT has approximately 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
uncertainty of the duration, extent, and effects of the COVID-19
pandemic and the response of governments, including
government-mandated property closures and travel restrictions, and
other third parties on the Company's business, results of
operations, cash flows, liquidity and development prospects and the
factors and risks described in the Company's annual report on Form
20-F for the financial year ended December
31, 2019 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. Nothing
in this news release is intended, or is to be construed, as a
profit forecast or to be interpreted to mean that the financial
performance of International Game Technology PLC for the current or
any future financial years will necessarily match or exceed the
historical published financial performance or International Game
Technology PLC, 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:
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
First Quarter Operating Segment Review
North America Gaming & Interactive
Select Financial
Data
|
|
|
As
|
Constant
|
|
Key Performance
Indicators
|
|
|
%
|
Period Ended March
31
|
Q1
'20
|
Q1
'19
|
Reported
|
FX
|
|
Period Ended March
31
|
Q1
'20
|
Q1
'19
|
Change
|
Gaming
|
|
Total
revenue
|
191
|
239
|
-20%
|
-20%
|
|
Installed base
units (end of period)
|
|
|
|
|
Gaming
services
|
117
|
155
|
-24%
|
-24%
|
|
Casino
|
18,676
|
22,713
|
|
|
|
Terminal
|
76
|
100
|
-24%
|
-24%
|
|
Casino - L/T lease (1)
|
917
|
-
|
|
|
|
Other
|
42
|
55
|
-24%
|
-24%
|
|
Total
Installed base units
|
19,593
|
22,713
|
-13.7%
|
|
Product
sales
|
74
|
84
|
-12%
|
-12%
|
|
(1) Yield
calculations should exclude these units due to accounting treatment
as sales-type leases
|
|
|
Terminal
|
30
|
63
|
-53%
|
-53%
|
|
|
|
|
|
|
|
Other
|
44
|
21
|
112%
|
112%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Machine units
shipped
|
|
|
|
Other
|
|
Total
revenue
|
4
|
1
|
NM
|
NM
|
|
New/expansion
|
36
|
1,482
|
-97.6%
|
|
Service
revenue
|
4
|
1
|
NM
|
NM
|
|
Replacement
|
2,036
|
2,544
|
-20.0%
|
|
Product
revenue
|
0
|
0
|
0%
|
0%
|
|
Total
machines shipped
|
2,072
|
4,026
|
-48.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Revenue
|
196
|
240
|
-18%
|
-18%
|
|
|
|
|
|
|
Operating
income
|
27
|
49
|
-45%
|
-49%
|
|
|
|
|
|
Revenue of $196 million, down from $240 million in the
prior-year period
- Gaming service revenue of $117
million
-
- Casino closures impact terminal revenue
- Other revenue reflects multi-year poker license in the prior
year
- Gaming product sales revenue of $74
million
-
- New/expansion shipments to Encore Boston in the prior year
- Significant non-terminal revenue related to a multi-year
strategic agreement
- Systems revenue in-line with prior year on Advantage install at
Isleta Resort & Casino and strong add-on sales
Operating income of $27 million, down from $49 million
in the prior year
- Impact of casino closures
- Partly offset by benefit from initial actions to reduce
operating costs
North America Lottery
Select Financial
Data
|
|
|
As
|
Constant
|
|
Key Performance
Indicators
|
|
|
%
|
Period Ended March
31
|
Q1
'20
|
Q1
'19
|
Reported
|
FX
|
|
Period Ended March
31
|
Q1
'20
|
Q1
'19
|
Change
|
Gaming
|
|
Total
revenue
|
34
|
41
|
-17%
|
-16%
|
|
Installed base
units (end of period)
|
|
|
|
|
Gaming
services
|
33
|
41
|
-19%
|
-18%
|
|
VLT - Government sponsored
|
13,559
|
14,799
|
-8.4%
|
|
|
Terminal
|
19
|
25
|
-26%
|
-26%
|
|
|
|
|
|
|
|
Other
|
15
|
16
|
-7%
|
-5%
|
|
Lottery same-store
revenue growth
|
|
|
Product
sales
|
1
|
0
|
NM
|
NM
|
|
Instant
ticket & draw games
|
1.6%
|
|
|
|
|
|
|
|
|
|
Multistate jackpots
|
-33.3%
|
Lottery
|
|
Total
revenue
|
214
|
254
|
-16%
|
-16%
|
|
Total
lottery same-store revenue growth
|
-3.0%
|
|
Lottery
services
|
201
|
240
|
-16%
|
-16%
|
|
|
|
|
|
|
|
FMC
|
204
|
208
|
-2%
|
-2%
|
|
|
|
|
|
|
|
Instant ticket
& draw games
|
171
|
170
|
1%
|
1%
|
|
|
|
|
|
|
|
Other
services
|
34
|
38
|
-13%
|
-13%
|
|
|
|
|
|
|
|
LMA
|
(3)
|
32
|
NM
|
NM
|
|
|
|
|
|
|
Product
sales
|
13
|
14
|
-9%
|
-9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
Total
revenue
|
2
|
0
|
NM
|
NM
|
|
|
|
|
|
|
Service
revenue
|
2
|
0
|
NM
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Revenue
|
251
|
296
|
-15%
|
-15%
|
|
|
|
|
|
|
Operating
income
|
44
|
76
|
-41%
|
-41%
|
|
|
|
|
|
Revenue of $251 million compared to $296 million in
the prior-year period
- Lottery service revenue of $201
million
-
- Solid mid-single-digit same-store revenue growth in
January/February period was offset by mobility restrictions
implemented in March
- LMA revenue reflects accrual for penalties due to lower jackpot
activity during the lotteries' fiscal year (ending June 30) and lower overall activity due to
COVID-19
- Gaming service revenue impacted by closure of VLT venues
Operating income of $44 million compared to
$76 million in the prior year
- LMA dynamics and closure of VLT venues
- Partly offset by modest benefit from initial actions to reduce
operating costs
International
Select Financial
Data
|
|
|
As
|
Constant
|
|
Key Performance
Indicators
|
|
|
%
|
Period Ended March
31
|
Q1
'20
|
Q1
'19
|
Reported
|
FX
|
|
Period Ended March
31
|
Q1
'20
|
Q1
'19
|
Change
|
Gaming
|
|
Total
revenue
|
72
|
81
|
-11%
|
-8%
|
|
Installed base
units (end of period)
|
|
|
|
|
Gaming
services
|
23
|
30
|
-25%
|
-20%
|
|
Casino
|
9,653
|
10,666
|
-9.5%
|
|
|
Terminal
|
9
|
12
|
-28%
|
-21%
|
|
VLT - Government sponsored
|
5,110
|
4,419
|
15.6%
|
|
|
Other
|
14
|
18
|
-23%
|
-20%
|
|
Total
installed base units
|
14,763
|
15,085
|
-2.1%
|
|
Product
sales
|
49
|
51
|
-3%
|
0%
|
|
|
|
|
|
|
|
Terminal
|
23
|
35
|
-36%
|
-34%
|
|
Machine units
shipped
|
|
|
|
|
|
Other
|
27
|
15
|
73%
|
78%
|
|
New/expansion
|
83
|
382
|
-78.3%
|
|
|
|
|
|
|
|
|
|
Replacement
|
1,525
|
2,593
|
-41.2%
|
Lottery
|
|
Total
revenue
|
82
|
74
|
11%
|
14%
|
|
Total
machines shipped
|
1,608
|
2,975
|
-45.9%
|
|
Lottery
services
|
62
|
70
|
-10%
|
-7%
|
|
|
|
|
|
|
|
FMC
|
62
|
70
|
-10%
|
-7%
|
|
Lottery same-store
revenue growth
|
|
|
|
Instant ticket
& draw games
|
47
|
56
|
-15%
|
-12%
|
|
Instant
ticket & draw games
|
-3.8%
|
|
|
Other
services
|
15
|
14
|
9%
|
15%
|
|
Multistate jackpots
|
-15.7%
|
|
Product
sales
|
20
|
4
|
344%
|
344%
|
|
Total
lottery same-store revenue growth
|
-4.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
Total
revenue
|
10
|
17
|
-40%
|
-31%
|
|
|
|
|
|
|
Service
revenue
|
10
|
17
|
-41%
|
-31%
|
|
|
|
|
|
|
Product
sales
|
0
|
0
|
0%
|
0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Revenue
|
164
|
172
|
-5%
|
-1%
|
|
|
|
|
|
|
Operating
income
|
28
|
14
|
107%
|
121%
|
|
|
|
|
|
Revenue of $164 million, down from $172 million in the
prior-year period
- Gaming product sales down 3%; stable at constant currency
-
- Fewer unit shipments impact terminal revenue
- Other product sales higher on Italy AWP upgrades
- Lottery product sales includes non-terminal revenue related to
Czech Republic contract extension
- Lottery service revenue of $62
million
-
- Low-single-digit same-store revenue growth in January/February
was more than offset by impact of mobility restrictions
implemented in March
- Gaming service revenue reflects casino closures
- Other service revenue down on sale of Poland commercial services in prior year
Operating income of $28 million, up from $14 million
in the prior year
- High-margin software license
- Modest benefit from initial actions to reduce operating
costs
Italy
Select Financial
Data
|
|
|
As
|
Constant
|
|
Key Performance
Indicators
|
|
|
%
|
Period Ended March
31
|
Q1
'20
|
Q1
'19
|
Reported
|
FX
|
|
Period Ended March
31
|
Q1
'20
|
Q1
'19
|
Change
|
Gaming
|
|
Total
revenue
|
95
|
153
|
-38%
|
-36%
|
|
(In € millions,
except machines)
|
|
|
|
|
Gaming
services
|
95
|
153
|
-38%
|
-36%
|
|
Lottery
|
|
|
|
|
|
Terminal
|
78
|
137
|
-43%
|
-41%
|
|
Lotto
wagers
|
1,713
|
2,142
|
-20.0%
|
|
|
Other
|
17
|
16
|
7%
|
10%
|
|
10eLotto
|
1,189
|
1,544
|
-23.0%
|
|
Product
sales
|
0
|
0
|
0%
|
0%
|
|
Core
|
420
|
501
|
-16.2%
|
|
|
|
|
|
|
|
|
|
Late
numbers
|
61
|
47
|
29.9%
|
Lottery
|
|
Total
revenue
|
148
|
204
|
-27%
|
-25%
|
|
MillionDAY
|
44
|
50
|
-12.5%
|
|
Lottery
services
|
148
|
204
|
-27%
|
-25%
|
|
|
|
|
|
|
|
FMC
|
148
|
204
|
-27%
|
-25%
|
|
Scratch & Win
wagers
|
1,908
|
2,386
|
-20.0%
|
|
|
Instant ticket
& draw games
|
195
|
252
|
-23%
|
-20%
|
|
|
|
|
|
|
|
Other
services
|
(47)
|
(49)
|
-3%
|
0%
|
|
Italy lottery
revenue growth
|
|
|
-24.8%
|
|
Product
sales
|
0
|
0
|
0%
|
0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gaming
|
|
|
|
Other
|
|
Total
revenue
|
86
|
80
|
8%
|
12%
|
|
Installed base
(end of period)
|
|
|
|
|
Service
revenue
|
86
|
80
|
8%
|
12%
|
|
VLT -
Operator (B2C)
|
10,863
|
10,995
|
-1.2%
|
|
Product
sales
|
0
|
0
|
0%
|
0%
|
|
VLT -
Supplier (B2B)
|
7,458
|
7,847
|
-5.0%
|
|
|
|
|
|
|
|
|
|
AWP
|
38,426
|
40,746
|
-5.7%
|
Total
|
|
Revenue
|
329
|
437
|
-25%
|
-22%
|
|
Total
installed base
|
56,747
|
59,588
|
-4.8%
|
|
Operating
income
|
85
|
147
|
-42%
|
-39%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wagers
|
|
|
|
|
|
|
|
|
|
|
|
|
VLT -
Operator (B2C)
|
745
|
1,503
|
-50.5%
|
|
|
|
|
|
|
|
|
|
AWP
|
686
|
939
|
-27.0%
|
|
|
|
|
|
|
|
|
|
Interactive wagers (gaming)
|
589
|
489
|
20.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
Sports
betting wagers (1)
|
218
|
274
|
-20.5%
|
|
|
|
|
|
|
|
|
|
Sports
betting payout (%) (1)
|
79.2%
|
83.3%
|
-4.1
pp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
virtual wagers and pools & horses
|
Revenue of $329 million, down from $437 million in the
prior-year period
- Lottery service revenue reflects strict COVID-19 mobility
restrictions
- Gaming service revenue reflects closure of gaming halls, higher
taxes, and age-verification regulations; Interactive wagers rise
20%
- Commercial services revenue higher
Operating income of $85 million compared to
$147 million
- Impact of COVID-19 restrictions
- Partly offset by modest benefit from initial actions to reduce
operating costs
International Game
Technology PLC
|
Consolidated
Statements of Operations
|
($ and shares
in thousands, except per share amounts)
|
Unaudited
|
|
|
|
|
|
For the three
months ended
|
|
March
31,
|
|
2020
|
|
2019
|
|
|
|
|
Service
revenue
|
783,301
|
|
991,031
|
Product
sales
|
156,894
|
|
153,885
|
Total
revenue
|
940,195
|
|
1,144,916
|
|
|
|
|
Cost of
services
|
521,827
|
|
595,327
|
Cost of product
sales
|
91,099
|
|
100,185
|
Selling, general and
administrative
|
163,593
|
|
201,837
|
Research and
development
|
60,737
|
|
66,118
|
Goodwill impairment
(1)
|
296,000
|
|
-
|
Other operating
expense, net
|
4,218
|
|
3,297
|
Total operating
expenses
|
1,137,474
|
|
966,764
|
|
|
|
|
Operating (loss)
income
|
(197,279)
|
|
178,152
|
|
|
|
|
Interest expense,
net
|
(100,662)
|
|
(103,069)
|
Foreign exchange
gain, net
|
70,360
|
|
58,602
|
Other expense,
net
|
(3,386)
|
|
(498)
|
Total
non-operating expenses
|
(33,688)
|
|
(44,965)
|
|
|
|
|
(Loss) income
before provision for income taxes
|
(230,967)
|
|
133,187
|
|
|
|
|
Provision for income
taxes
|
3,132
|
|
52,692
|
|
|
|
|
Net (loss)
income
|
(234,099)
|
|
80,495
|
|
|
|
|
Less: Net income
attributable to non-controlling interests
|
14,189
|
|
40,241
|
|
|
|
|
Net (loss) income
attributable to IGT PLC
|
(248,288)
|
|
40,254
|
|
|
|
|
|
|
|
|
Net (loss) income
attributable to IGT PLC per common share - basic
|
(1.21)
|
|
0.20
|
Net (loss) income
attributable to IGT PLC per common share - diluted
|
(1.21)
|
|
0.20
|
|
|
|
|
Weighted-average
shares - basic
|
204,435
|
|
204,300
|
Weighted-average
shares - diluted
|
204,435
|
|
204,742
|
|
(1)
Reduces the carrying value of the International and North America
Gaming & Interactive segments by $193 million and $103 million,
respectively
|
International Game
Technology PLC
|
Consolidated
Balance Sheets
|
($
thousands)
|
Unaudited
|
|
|
|
|
|
March 31,
|
|
December
31,
|
|
2020
|
|
2019
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
1,457,524
|
|
662,934
|
Restricted cash and
cash equivalents
|
160,677
|
|
231,317
|
Trade and other
receivables, net
|
630,695
|
|
1,006,127
|
Inventories
|
181,959
|
|
161,790
|
Other current
assets
|
614,690
|
|
571,869
|
Total current
assets
|
3,045,545
|
|
2,634,037
|
Systems, equipment
and other assets related to contracts, net
|
1,252,439
|
|
1,307,940
|
Property, plant and
equipment, net
|
144,991
|
|
146,055
|
Operating lease
right-of-use-assets
|
345,759
|
|
341,538
|
Goodwill
|
5,131,178
|
|
5,451,494
|
Intangible assets,
net
|
1,773,134
|
|
1,836,002
|
Other non-current
assets
|
1,827,339
|
|
1,927,524
|
Total non-current
assets
|
10,474,840
|
|
11,010,553
|
Total
assets
|
13,520,385
|
|
13,644,590
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
897,328
|
|
1,120,922
|
Current portion of
long-term debt
|
377,917
|
|
462,155
|
Short-term
borrowings
|
113,088
|
|
3,193
|
Other current
liabilities
|
842,833
|
|
882,081
|
Total current
liabilities
|
2,231,166
|
|
2,468,351
|
Long-term debt, less
current portion
|
8,136,080
|
|
7,600,169
|
Deferred income
taxes
|
339,314
|
|
366,822
|
Operating lease
liabilities
|
317,754
|
|
310,721
|
Other non-current
liabilities
|
387,699
|
|
413,549
|
Total non-current
liabilities
|
9,180,847
|
|
8,691,261
|
Total
liabilities
|
11,412,013
|
|
11,159,612
|
Commitments and
contingencies
|
|
|
|
Shareholders'
equity
|
2,108,372
|
|
2,484,978
|
Total liabilities
and shareholders' equity
|
13,520,385
|
|
13,644,590
|
International Game
Technology PLC
|
Consolidated
Statements of Cash Flows
|
($
thousands)
|
Unaudited
|
|
|
|
For the three
months ended
|
|
March
31,
|
|
2020
|
|
2019
|
Cash flows from
operating activities
|
|
|
|
Net (loss)
income
|
(234,099)
|
|
80,495
|
Adjustments to
reconcile net (loss) income to net cash provided by operating
activities:
|
|
|
|
Goodwill
impairment
|
296,000
|
|
-
|
Depreciation
|
98,020
|
|
105,331
|
Amortization
|
70,126
|
|
68,084
|
Amortization of
upfront license fees
|
50,496
|
|
52,289
|
Debt issuance cost
amortization
|
5,210
|
|
5,783
|
Stock-based
compensation
|
(12,968)
|
|
9,590
|
Deferred income
taxes
|
(23,214)
|
|
267
|
Foreign exchange
gain, net
|
(70,360)
|
|
(58,602)
|
Other non-cash items,
net
|
(1,159)
|
|
8,192
|
Changes in operating
assets and liabilities, excluding the effects of
acquisitions:
|
|
|
|
Trade and other
receivables
|
344,189
|
|
24,145
|
Inventories
|
(15,478)
|
|
(20,448)
|
Accounts
payable
|
(189,544)
|
|
(27,817)
|
Other assets and
liabilities
|
(159,951)
|
|
(100,695)
|
Net cash provided
by operating activities
|
157,268
|
|
146,614
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
Capital
expenditures
|
(99,698)
|
|
(119,185)
|
Proceeds from sale of
assets
|
5,970
|
|
1,888
|
Other
|
10,689
|
|
2,208
|
Net cash used in
investing activities
|
(83,039)
|
|
(115,089)
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
Proceeds from
long-term debt
|
987,711
|
|
35,666
|
Net proceeds from
short-term borrowings
|
109,936
|
|
33,201
|
Net receipts from
(payments of) financial liabilities
|
50,585
|
|
(44,662)
|
Dividends
paid
|
(40,887)
|
|
-
|
Principal payments on
long-term debt
|
(431,965)
|
|
-
|
Capital increase -
non-controlling interests
|
2,030
|
|
333
|
Dividends paid -
non-controlling interests
|
(15,558)
|
|
(13,439)
|
Other
|
(2,328)
|
|
(2,000)
|
Net cash provided
by financing activities
|
659,524
|
|
9,099
|
|
|
|
|
Net increase in cash
and cash equivalents, and restricted cash
|
733,753
|
|
40,624
|
Effect of exchange
rate changes on cash and cash equivalents, and restricted
cash
|
(9,803)
|
|
(16,807)
|
Cash and cash
equivalents, and restricted cash at the beginning of the
period
|
894,251
|
|
511,777
|
Cash and cash
equivalents, and restricted cash at the end of the
period
|
1,618,201
|
|
535,594
|
|
|
|
|
|
|
|
|
Supplemental
Cash Flow Information:
|
|
|
|
Interest
paid
|
(181,987)
|
|
(183,777)
|
Income taxes
paid
|
(11,035)
|
|
(18,835)
|
International Game
Technology PLC
|
Net
Debt
|
($
thousands)
|
Unaudited
|
|
|
|
|
|
March 31,
|
|
December
31,
|
|
2020
|
|
2019
|
|
|
|
|
6.250% Senior Secured
Notes due February 2022 (1)
|
1,507,401
|
|
1,491,328
|
4.750% Senior Secured
Notes due February 2023 (2)
|
925,379
|
|
948,382
|
5.350% Senior Secured
Notes due October 2023(1)
|
60,860
|
|
60,885
|
3.500% Senior Secured
Notes due July 2024 (2)
|
543,752
|
|
557,331
|
6.500% Senior Secured
Notes due February 2025 (1)
|
1,090,369
|
|
1,089,959
|
3.500% Senior Secured
Notes due June 2026 (2)
|
814,690
|
|
835,105
|
6.250% Senior Secured
Notes due January 2027(1)
|
743,575
|
|
743,387
|
2.375% Senior Secured
Notes due April 2028 (2)
|
542,774
|
|
556,403
|
Senior Secured
Notes, long-term
|
6,228,800
|
|
6,282,780
|
|
|
|
|
Term Loan Facilities
due January 2023 (2)
|
934,847
|
|
1,317,389
|
Revolving Credit
Facilities due July 2024 (1) (2)
|
972,433
|
|
-
|
Long-term debt,
less current portion
|
8,136,080
|
|
7,600,169
|
|
|
|
|
4.750% Senior Secured
Notes due March 2020 (2)
|
-
|
|
434,789
|
5.500% Senior Secured
Notes due June 2020 (1)
|
27,325
|
|
27,366
|
Term Loan Facilities
due January 2023 (2)
|
350,592
|
|
-
|
Current portion of
long-term debt
|
377,917
|
|
462,155
|
|
|
|
|
Short-term
borrowings
|
113,088
|
|
3,193
|
Total
debt
|
8,627,085
|
|
8,065,517
|
|
|
|
|
Less: Cash and cash
equivalents
|
1,457,524
|
|
662,934
|
Less: Debt issuance
costs, net - Revolving Credit Facilities due July 2024
|
-
|
|
20,464
|
|
|
|
|
Net
debt
|
7,169,561
|
|
7,382,119
|
|
(1) U.S.
dollar-denominated debt
|
(2)
Euro-denominated debt
|
Note: Net debt is a
non-GAAP financial measure
|
International Game
Technology PLC
|
Reconciliations of
Non-GAAP Financial Measures
|
($ and shares in
thousands, except per share amounts)
|
Unaudited
|
|
|
|
|
|
|
|
|
|
For the three months
ended
|
|
March 31,
|
|
2020
|
|
2019
|
|
|
|
|
Net (loss)
income
|
(234,099)
|
|
80,495
|
Provision for income
taxes
|
3,132
|
|
52,692
|
Interest expense,
net
|
100,662
|
|
103,069
|
Foreign exchange
gain, net
|
(70,360)
|
|
(58,602)
|
Other non-operating
expense, net
|
3,386
|
|
498
|
Operating (loss)
income
|
(197,279)
|
|
178,152
|
Goodwill
impairment
|
296,000
|
|
-
|
Depreciation
|
98,020
|
|
105,331
|
Amortization -
purchase accounting
|
46,670
|
|
48,204
|
Amortization -
non-purchase accounting (1)
|
73,952
|
|
72,169
|
Stock-based
compensation
|
(12,968)
|
|
9,590
|
Other
(2)
|
4,118
|
|
3,227
|
Adjusted
EBITDA
|
308,513
|
|
416,673
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
157,268
|
|
146,614
|
Capital
expenditures
|
(99,698)
|
|
(119,185)
|
Free Cash
Flow
|
57,570
|
|
27,429
|
|
|
|
|
|
|
|
|
Net (loss) income
attributable to IGT PLC
|
(248,288)
|
|
40,254
|
Foreign exchange
gain, net
|
(70,360)
|
|
(58,602)
|
Goodwill
impairment
|
296,000
|
|
-
|
Depreciation and
amortization - purchase accounting
|
46,982
|
|
48,836
|
Other
(2)
|
4,118
|
|
3,227
|
Income tax impact on
adjustments (3)
|
(11,924)
|
|
(9,404)
|
Adjusted net
income attributable to IGT PLC
|
16,528
|
|
24,311
|
Weighted-average
shares - diluted
|
204,435
|
|
204,742
|
Adjusted
weighted-average shares - diluted (4)
|
205,068
|
|
204,742
|
Net (loss) income
attributable to IGT PLC per common share - diluted
|
(1.21)
|
|
0.20
|
Adjusted net
income attributable to IGT PLC per common share -
diluted
|
0.08
|
|
0.12
|
|
(1)
Includes amortization of upfront license fees
|
(2)Includes restructuring expense and
transaction-related costs
|
(3)Adjustments for income taxes are
determined based on the statutory tax rate in effect in the
respective jurisdiction where the adjustment originated
|
(4)Adjusted weighted-average shares –
diluted includes shares that were excluded from the GAAP
computation, due to the net loss as reported
|
INTERNATIONAL GAME
TECHNOLOGY PLC
|
|
|
|
|
|
Select Financial
Data
|
|
|
As
|
Constant
|
|
Key Performance
Indicators
|
|
|
%
|
Period Ended March
31
|
Q1
'20
|
Q1
'19
|
Reported
|
FX
|
|
Period Ended March
31
|
Q1
'20
|
Q1
'19
|
Change
|
Gaming
|
|
Total
revenue
|
393
|
515
|
-24%
|
-22%
|
|
Installed base
units (end of period)
|
|
|
|
|
Gaming
services
|
269
|
380
|
-29%
|
-28%
|
|
Casino
|
28,329
|
33,379
|
-15.1%
|
|
|
Terminal
|
181
|
275
|
-34%
|
-33%
|
|
Casino -
L/T lease (1)
|
917
|
-
|
NM
|
|
|
Other
|
88
|
105
|
-17%
|
-15%
|
|
VLT -
Government sponsored (ex-Italy)
|
18,669
|
19,218
|
-2.9%
|
|
Product
sales
|
124
|
135
|
-8%
|
-7%
|
|
VLT -
Italy supplier (B2B)
|
7,458
|
7,847
|
-5.0%
|
|
|
Terminal
|
53
|
99
|
-47%
|
-46%
|
|
Total
installed base units
|
55,373
|
60,444
|
-8.4%
|
|
|
Other
|
72
|
37
|
96%
|
99%
|
|
Yield
(average gross revenue per unit per day)
|
$ 22.69
|
$ 27.57
|
-17.7%
|
|
|
|
|
|
|
|
|
|
(1) Yield
calculations should exclude these units due to accounting treatment
as sales-type leases
|
Lottery
|
|
Total
revenue
|
444
|
532
|
-17%
|
-15%
|
|
|
|
|
|
|
Lottery
services
|
412
|
514
|
-20%
|
-18%
|
|
|
|
|
|
|
|
FMC
|
415
|
481
|
-14%
|
-12%
|
|
Additional Italian network details:
|
|
|
|
|
|
Instant ticket
& draw games
|
413
|
478
|
-13%
|
-12%
|
|
VLT -
Operator (B2C)
|
10,863
|
10,995
|
-1.2%
|
|
|
Other
services
|
2
|
4
|
-55%
|
-80%
|
|
AWP
|
38,426
|
40,746
|
-5.7%
|
|
|
LMA
|
(3)
|
32
|
NM
|
NM
|
|
|
|
|
|
|
Product
sales
|
32
|
18
|
76%
|
76%
|
|
Machine units
shipped
|
|
|
|
|
|
|
|
|
|
|
|
|
New/expansion
|
119
|
1,864
|
-93.6%
|
Other
|
|
Total
revenue
|
103
|
98
|
5%
|
10%
|
|
Replacement
|
3,561
|
5,137
|
-30.7%
|
|
Service
revenue
|
103
|
98
|
5%
|
10%
|
|
Total
machines shipped
|
3,680
|
7,001
|
-47.4%
|
|
Product
sales
|
0
|
0
|
0%
|
0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global lottery
same-store revenue growth
|
|
Consolidated
|
|
Revenue
|
940
|
1,145
|
-18%
|
-16%
|
|
Instant
ticket & draw games
|
-0.1%
|
|
Operating
Income:
|
|
|
|
|
|
Multistate jackpots
|
-31.0%
|
|
|
Segment
total
|
185
|
285
|
-35%
|
-34%
|
|
Total
lottery same-store revenue growth (ex-Italy)
|
-3.7%
|
|
|
Purchase
accounting
|
(343)
|
(49)
|
NM
|
NM
|
|
Italy
lottery revenue growth
|
-24.8%
|
|
|
Corporate
support
|
(39)
|
(58)
|
-33%
|
30%
|
|
|
|
|
|
|
|
Total
|
(197)
|
178
|
-211%
|
-210%
|
|
|
|
|
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/international-game-technology-plc-reports-first-quarter-2020-results-301060523.html
SOURCE International Game Technology PLC