LONDON, Nov. 9, 2021 /PRNewswire/ -- International
Game Technology PLC ("IGT") (NYSE:IGT) today reported financial
results for the third quarter ended September 30, 2021. Today,
at 8:00 a.m. EST, management will
host a conference call and webcast to present the results; access
details are provided below.
"Broad-based momentum across our Lottery, Gaming, and Digital
& Betting activities drove significant improvement in key
financial and performance metrics in the third quarter," said
Marco Sala, CEO of IGT. "Revenue
grew over 20% and operating income more than doubled, highlighting
the strength of our portfolio. Based on our excellent year-to-date
results and our solid financial condition, the Board reinstated a
quarterly cash dividend, signaling their confidence in the
Company's prospects."
"We are supporting strong top-line growth with strategic
investments in the business while still making good progress on
optimizing our cost structure," said Max
Chiara, CFO of IGT. "Achieving our goal of
reducing net debt leverage below 4.0x was a big accomplishment in
the quarter. We look forward to sharing our strategy, long-term
growth initiatives, and capital allocation plans during our
upcoming investor day on November 16,
2021."
Overview of
Consolidated Third Quarter 2021 Results
|
|
|
Quarter
Ended
|
Y/Y
Change
(%)
|
Constant
Currency
Change
(%)
|
All amounts from
continuing operations
|
September
30,
|
|
2021
|
|
2020
|
($ in millions,
unless otherwise noted)
|
|
|
|
|
|
GAAP
Financials:
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
Global
Lottery
|
652
|
|
570
|
14%
|
15%
|
Global
Gaming
|
289
|
|
216
|
34%
|
34%
|
Digital &
Betting
|
43
|
|
31
|
37%
|
35%
|
Total
revenue
|
984
|
|
816
|
21%
|
20%
|
|
|
|
|
|
|
Operating income
(loss)
|
|
|
|
|
|
Global
Lottery
|
234
|
|
196
|
19%
|
20%
|
Global
Gaming
|
31
|
|
(56)
|
NA
|
NA
|
Digital &
Betting
|
12
|
|
6
|
100%
|
90%
|
Corporate support
expense
|
(26)
|
|
(17)
|
(54)%
|
(54)%
|
Other(1)
|
(40)
|
|
(42)
|
5%
|
5%
|
Total operating
income (loss)
|
212
|
|
87
|
144%
|
145%
|
Operating Income
margin
|
22%
|
|
11%
|
|
|
|
|
|
|
|
|
Net cash provided
by operating activities
|
113
|
|
191
|
(41)%
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
435
|
|
936
|
(53)%
|
|
|
|
|
|
|
|
Non-GAAP Financial
Measures:
|
|
|
|
|
|
Adjusted
EBITDA
|
|
|
|
|
|
Global
Lottery
|
347
|
|
309
|
12%
|
13%
|
Global
Gaming
|
64
|
|
(18)
|
NA
|
NA
|
Digital &
Betting
|
15
|
|
9
|
66%
|
59%
|
Corporate support
expense
|
(19)
|
|
(13)
|
(46)%
|
(46)%
|
Total Adjusted
EBITDA
|
407
|
|
287
|
42%
|
42%
|
Adjusted EBITDA
margin
|
41%
|
|
35%
|
|
|
|
|
|
|
|
|
Free cash
flow
|
66
|
|
126
|
(48)%
|
|
|
|
|
|
|
|
Net
debt(2)
|
6,109
|
|
7,250
|
(16)%
|
|
|
|
|
|
|
|
|
(1)
Primarily includes purchase price amortization
|
(2)
Historical net debt recast to only reflect continuing
operations
|
Note: Reconciliations
of non-GAAP financial measures to the most directly comparable GAAP
financial measures are provided at the end of this news
release
|
Key Highlights:
- Sustained player demand in Global Lottery propels strong
results; profit and related margins remain among the strongest in
segment history
- Global Gaming achieves highest quarterly revenue and profit
levels in seven quarters as progressive recovery continues
- Digital & Betting rapidly gaining scale with significantly
higher revenue and profit driven by new and existing markets
- Strong year-to-date operating cash flow of $613 million and free cash flow of $445 million
- Successfully amended and extended term loan facility, adding an
ESG margin adjustment demonstrating IGT's commitment to
sustainability
- Awarded 10-year lottery contract with Connecticut Lottery
Corporation following a competitive procurement
- Recently signed seven-year contract with La Française des Jeux,
operator of the French National Lottery, to upgrade its lottery
central system to IGT's advanced Aurora™ platform featuring
enhanced, omnichannel capabilities
- Strengthened Digital & Betting leadership with appointment
of Joe Asher as President of Sports
Betting and Gil Rotem as President
of iGaming
- Announced several turnkey sports betting solutions, including
full retail and mobile services for Angel Of The Winds Casino
Resort, Oneida Casino, and
Snoqualmie Casino
- Extended cashless momentum with agreements to deploy Resort
Wallet™ and IGTPay™ at Agua Caliente
Casino and Indigo Sky properties
- Won several industry awards, including:
-
- "Technology Provider of the Year" and "Lottery Product of the
Year" at 2021 International Gaming Awards
- "Product Innovation of the Year" for Resort Wallet and IGTPay
cashless technologies at 2021 Global Gaming Awards Las Vegas
- "Best Consumer-Service Technology" for CrystalFlex sports
betting terminal at 2021 GGB Gaming & Technology Awards
Financial highlights:
Consolidated revenue of $984
million, up 21% compared to the prior year
- Global Lottery revenue rises 14% to $652
million, as sustained momentum drives 9% global same-store
sales growth
- Global Gaming revenue of $289
million, up from $216 million
in the prior year and $274 million
sequentially as market recovery progresses
- Digital & Betting revenue increases 37% to $43 million, with double-digit growth across
activities
Operating income of $212 million,
up 144% from the prior year
- High profit flow-through of Global Lottery same-store sales
growth
- Mix of high-margin Italy
lottery sales
- Strong operating leverage across businesses
- Disciplined cost management and benefits from OPtiMa structural
cost-savings program
Net interest expense of $79
million compared to $101
million in the prior year, driven by lower average debt
balances and interest rates
Provision for income taxes of $37
million compared to a benefit from income taxes of
$41 million in the prior year, on
significant increase in operating profitability
Net income of $101 million versus net loss of
$129 million in the prior-year period, driven by higher
revenue and operating profit, and a reduction in foreign exchange
losses
Adjusted EBITDA of $407 million
compared to $287 million in the
prior-year period; Adjusted EBITDA margin of 41%, among the highest
level in Company history
Net debt of $6.1 billion, down
$1.2 billion from $7.3 billion at December 31, 2020; Net debt
leverage of 3.8x, down from 6.4x at December 31, 2020, driven
by strong cash flow generation and proceeds from sale of
Italy gaming businesses, including
€100 million installment received during Q3'21
Cash and Liquidity Update
- Total liquidity of $2.2 billion
as of September 30, 2021;
$435 million in unrestricted cash and
$1.8 billion in additional borrowing
capacity
- Executed amendment and extension of Term Loan Facility
-
- Enhancing credit profile, increasing liquidity, and extending
debt maturities
- Includes ESG margin adjustment, highlighting commitment to
sustainability; achieved higher ESG rating in Q3'21, lowering
borrowing costs
Other Developments
The Company's Board of Directors
declared a quarterly cash dividend of $0.20 per common share
- Ex-dividend date of November 22,
2021
- Record date of November 23,
2021
- Payment date of December 7,
2021
Investor Day Details
IGT will host a virtual Investor
Day on Tuesday, November 16, 2021, at
8:30 a.m. EST
- Senior management will present an in-depth review of the
Company's business strategy, long-term growth prospects, and
capital allocation plans
- A live webcast is available under "Events Calendar" on IGT's
Investor Relations website at www.IGT.com
- Registration for the event is required and can be completed in
advance
- A replay will also be available on the website following the
call
Raising Full-year 2021 Outlook (Continuing
operations)
- Revenue of ~$4.1 billion
- Updating operating income outlook to ~$900 million from ~$800
million
- Depreciation and amortization of ~$700 - $725
million
- Cash from operations of ~$850 -
$900 million
- Capital expenditures below $300
million
- Does not factor in any additional impact from COVID-19
restrictions
Earnings Conference Call and
Webcast
November 9, 2021, at 8:00 a.m. EST
To register to participate in the conference call, or to listen
to the live audio webcast, please visit the "Events Calendar" on
IGT's Investor Relations website at www.IGT.com. A replay will
be available on the website following the live event.
Note: Certain totals in the tables included in this press
release may not add due to rounding
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 2021 are calculated using the same foreign
exchange rates as the corresponding 2020 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. Amounts reported in millions are
computed based on amounts in thousands. As a result, the sum of the
components may not equal the total amount reported in millions due
to rounding. Certain columns and rows within tables may not add due
to the use of rounded numbers. Percentages and earnings per share
amounts presented are calculated from the underlying unrounded
amounts.
About IGT
IGT (NYSE:IGT) is a 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 11,000 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, 2020 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 of 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.
Non-GAAP Financial Measures
Management supplements the
reporting of financial information, determined under GAAP, with
certain non-GAAP financial information. Management believes the
non-GAAP information presented provides investors with additional
useful information, but it is not intended to nor should it be
considered in isolation or as a substitute for the related GAAP
measures. Moreover, other companies may define non-GAAP measures
differently, which limits the usefulness of these measures for
comparisons with such other companies. The Company encourages
investors to review its financial statements and publicly-filed
reports in their entirety and not to rely on any single financial
measure.
Adjusted EBITDA represents net income (loss) from continuing
operations (a GAAP measure) before income taxes, interest expense,
foreign exchange gain (loss), other non-operating expenses,
depreciation, impairment losses, amortization (service revenue,
purchase accounting and non-purchase accounting), restructuring
expenses, stock-based compensation, litigation expense (income),
and certain other non-recurring items. Other non-recurring items
are infrequent in nature and are not reflective of ongoing
operational activities. For the business segments, Adjusted EBITDA
represents segment operating income (loss) before depreciation,
amortization (service revenue, purchase accounting and non-purchase
accounting), restructuring expenses, stock-based compensation,
litigation expense (income) and certain other non-recurring items.
Adjusted EBITDA – discontinued operations represents income (loss)
from discontinued operations (a GAAP measure) before income taxes,
interest expense, depreciation and amortization, and gain on sale
of discontinued operations. Adjusted EBITDA – combined represents
Total Adjusted EBITDA plus Adjusted EBITDA – discontinued
operations. Management believes that the non-GAAP measures just
mentioned are useful in providing period-to-period comparisons of
the results of the Company's ongoing operational performance.
Net debt is a non-GAAP financial measure that represents debt (a
GAAP measure, calculated as long-term obligations plus short-term
borrowings) minus capitalized debt issuance costs and cash and cash
and equivalents. Cash and cash equivalents are subtracted from the
GAAP measure because they could be used to reduce the Company's
debt obligations. Management believes that net debt is a useful
measure to monitor leverage and evaluate the balance sheet.
Net debt leverage is a non-GAAP financial measure that
represents the ratio of Net debt as of a particular balance sheet
date to Adjusted EBITDA for the last twelve months ("LTM") prior to
such date. Prior to the disposal of the Italian B2C gaming
businesses in the second quarter of 2021, management calculated the
Net debt leverage ratio as the ratio of Net debt as of a particular
balance sheet date to the LTM of Adjusted EBITDA – combined prior
to such date. Management believes that Net debt leverage is a
useful measure to assess our financial strength and ability to
incur incremental indebtedness when making key investment
decisions.
Free cash flow is a non-GAAP financial measure that represents
cash flow from operations (a GAAP measure) less capital
expenditures. Management believes free cash flow is a useful
measure of liquidity and an additional basis for assessing IGT's
ability to fund its activities, including debt service and
distribution of earnings to shareholders.
Constant currency is a non-GAAP financial measure that expresses
the current financial data using the prior-year/period exchange
rate (i.e., the exchange rates used in preparing the financial
statements for the prior year). Management believes that constant
currency is a useful measure to compare period-to-period results
without regard to the impact of fluctuating foreign currency
exchange rates.
A reconciliation of the non-GAAP measures to the corresponding
amounts prepared in accordance with GAAP appears in the tables in
this release. The tables provide additional information as to the
items and amounts that have been excluded from the adjusted
measures.
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 06 5189 9184;
for Italian media inquiries
James Hurley, Investor Relations, +1
(401) 392-7190
Select Performance
and KPI data: ($ in millions, unless otherwise
noted)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GLOBAL
LOTTERY
|
|
Q3'21
|
|
Q3'20
|
|
Y/Y
Change
(%)
|
|
Constant
Currency
Change (%)(1)
|
|
Q2'21
|
Sequential
Change
as
Reported
(%)
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
|
|
|
|
|
|
|
|
|
|
|
|
Operating and
facilities management contracts
|
|
590
|
|
525
|
|
12%
|
|
12%
|
|
675
|
(13)%
|
Upfront license fee
amortization
|
|
(51)
|
|
(52)
|
|
1%
|
|
—%
|
|
(53)
|
2%
|
Operating and
facilities management contracts, net
|
|
539
|
|
474
|
|
14%
|
|
14%
|
|
623
|
(13)%
|
Other
|
|
78
|
|
76
|
|
4%
|
|
5%
|
|
79
|
(1)%
|
Total service
revenue
|
|
617
|
|
549
|
|
12%
|
|
13%
|
|
702
|
(12)%
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
sales
|
|
35
|
|
20
|
|
71%
|
|
70%
|
|
23
|
51%
|
Total
revenue
|
|
652
|
|
570
|
|
14%
|
|
15%
|
|
725
|
(10)%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
234
|
|
196
|
|
19%
|
|
20%
|
|
300
|
(22)%
|
Adjusted
EBITDA(1)
|
|
347
|
|
309
|
|
12%
|
|
13%
|
|
414
|
(16)%
|
|
|
|
|
|
|
|
|
|
|
|
|
Global same-store
sales growth (%)
|
|
|
|
|
|
|
|
|
|
|
|
Instant ticket &
draw games
|
|
7.1%
|
|
10.6%
|
|
|
|
|
|
34.9%
|
|
Multi-jurisdiction
jackpots
|
|
42.2%
|
|
(14.3)%
|
|
|
|
|
|
28.8%
|
|
Total
|
|
9.3%
|
|
8.7%
|
|
|
|
|
|
34.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
& Rest of world same-store sales growth (%)
|
|
|
|
|
|
|
|
|
|
|
|
Instant ticket &
draw games
|
|
4.6%
|
|
15.0%
|
|
|
|
|
|
20.5%
|
|
Multi-jurisdiction
jackpots
|
|
42.2%
|
|
(14.3)%
|
|
|
|
|
|
28.8%
|
|
Total
|
|
7.5%
|
|
12.1%
|
|
|
|
|
|
21.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Italy same-store
sales growth (%)
|
|
|
|
|
|
|
|
|
|
|
|
Instant ticket &
draw games
|
|
16.3%
|
|
(3.5)%
|
|
|
|
|
|
115.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Non-GAAP measures; see
disclaimer and reconciliations to the most directly comparable GAAP
measure included herein
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3'21
|
|
Q3'20
|
|
Y/Y
Change
(%)
|
|
Constant
Currency
Change
(%)(1)
|
|
Q2'21
|
|
GLOBAL
GAMING
|
|
|
Sequential
Change
as
Reported
(%)
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
Service
|
|
|
|
|
|
|
|
|
|
|
|
Terminal
|
|
116
|
|
81
|
|
44%
|
|
43%
|
|
108
|
8%
|
Systems, software, and
other
|
|
56
|
|
51
|
|
8%
|
|
8%
|
|
48
|
16%
|
Total service
revenue
|
|
172
|
|
133
|
|
30%
|
|
30%
|
|
156
|
10%
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
sales
|
|
|
|
|
|
|
|
|
|
|
|
Terminal
|
|
81
|
|
49
|
|
64%
|
|
63%
|
|
86
|
(6)%
|
Other
|
|
36
|
|
34
|
|
7%
|
|
6%
|
|
31
|
14%
|
Total product sales
revenue
|
|
117
|
|
83
|
|
41%
|
|
40%
|
|
118
|
(1)%
|
Total
revenue
|
|
289
|
|
216
|
|
34%
|
|
34%
|
|
274
|
6%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
31
|
|
(56)
|
|
NA
|
|
NA
|
|
1
|
NM
|
Adjusted
EBITDA(1)
|
|
64
|
|
(18)
|
|
NA
|
|
NA
|
|
35
|
80%
|
|
|
|
|
|
|
|
|
|
|
|
|
Installed base
units
|
|
|
|
|
|
|
|
|
|
|
|
Casino
|
|
48,434
|
|
48,280
|
|
—%
|
|
|
|
47,964
|
|
Casino - L/T
lease(2)
|
|
1,144
|
|
1,102
|
|
4%
|
|
|
|
1,136
|
|
Total installed
base units
|
|
49,578
|
|
49,382
|
|
—%
|
|
|
|
49,100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Installed base
units (by geography)
|
|
|
|
|
|
|
|
|
|
|
|
US &
Canada
|
|
34,347
|
|
34,584
|
|
(1)%
|
|
|
|
33,820
|
|
Rest of
world
|
|
15,231
|
|
14,798
|
|
3%
|
|
|
|
15,280
|
|
Total installed
base units
|
|
49,578
|
|
49,382
|
|
—%
|
|
|
|
49,100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yields (by
geography)(3), in absolute $
|
|
|
|
|
|
|
|
|
|
|
|
US &
Canada
|
|
$40.79
|
|
$26.79
|
|
52%
|
|
|
|
$38.41
|
|
Rest of
world
|
|
$5.64
|
|
$4.31
|
|
31%
|
|
|
|
$4.03
|
|
Total
yields
|
|
$29.67
|
|
$19.88
|
|
49%
|
|
|
|
$27.49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global machine
units sold
|
|
|
|
|
|
|
|
|
|
|
|
New/expansion
|
|
1,009
|
|
818
|
|
23%
|
|
|
|
1,167
|
|
Replacement
|
|
4,692
|
|
2,853
|
|
64%
|
|
|
|
5,168
|
|
Total machine
units sold
|
|
5,701
|
|
3,671
|
|
55%
|
|
|
|
6,335
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US & Canada
machine units sold
|
|
|
|
|
|
|
|
|
|
|
|
New/expansion
|
|
524
|
|
667
|
|
(21)%
|
|
|
|
643
|
|
Replacement
|
|
3,451
|
|
2,007
|
|
72%
|
|
|
|
3,485
|
|
Total machine
units sold
|
|
3,975
|
|
2,674
|
|
49%
|
|
|
|
4,128
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Non-GAAP measures; see
disclaimer and reconciliations to the most directly comparable GAAP
measure included herein
|
|
|
|
(2) Excluded from yield
calculations due to treatment as sales-type leases
|
|
|
|
(3) Excludes Casino L/T
lease units due to treatment as sales-type leases; comparability on
a Y/Y basis hindered due to fewer active units
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3'21
|
|
Q3'20
|
|
Y/Y
Change
(%)
|
|
|
|
Q2'21
|
|
GLOBAL GAMING
(Continued)
|
|
|
Constant
Currency
Change
(%)(1)
|
Sequential
Change
as
Reported
(%)
|
Rest of world
machine units sold
|
|
|
|
|
|
|
|
|
|
|
|
New/expansion
|
|
485
|
|
151
|
|
221%
|
|
|
|
524
|
|
Replacement
|
|
1,241
|
|
846
|
|
47%
|
|
|
|
1,683
|
|
Total machine
units sold
|
|
1,726
|
|
997
|
|
73%
|
|
|
|
2,207
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Selling
Price (ASP), in absolute $
|
|
|
|
|
|
|
|
|
|
|
|
US &
Canada
|
|
$13,900
|
|
$13,800
|
|
1%
|
|
|
|
$13,900
|
|
Rest of
world
|
|
$14,400
|
|
$12,100
|
|
19%
|
|
|
|
$12,700
|
|
Total
ASP
|
|
$14,100
|
|
$13,300
|
|
6%
|
|
|
|
$13,400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gaming Systems
Revenue
|
|
38
|
|
31
|
|
22%
|
|
|
|
39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3'21
|
|
Q3'20
|
|
Y/Y
Change
(%)
|
|
|
|
Q2'21
|
|
DIGITAL &
BETTING
|
|
|
Constant
Currency
Change
(%)(1)
|
Sequential
Change
as
Reported
(%)
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
Service
|
|
43
|
|
31
|
|
39%
|
|
36%
|
|
43
|
—%
|
Product
sales
|
|
—
|
|
—
|
|
(66)%
|
|
(66)%
|
|
(0)
|
NA
|
Total
revenue
|
|
43
|
|
31
|
|
37%
|
|
35%
|
|
42
|
2%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
12
|
|
6
|
|
100%
|
|
90%
|
|
9
|
35%
|
Adjusted
EBITDA(1)
|
|
15
|
|
9
|
|
66%
|
|
59%
|
|
13
|
18%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
|
|
|
|
|
|
|
|
|
|
|
|
Revenue (by
geography)
|
|
|
|
|
|
|
|
|
|
|
|
US &
Canada
|
|
556
|
|
443
|
|
26%
|
|
25%
|
|
561
|
(1)%
|
Italy
|
|
294
|
|
248
|
|
18%
|
|
19%
|
|
353
|
(17)%
|
Rest of
world
|
|
134
|
|
125
|
|
7%
|
|
6%
|
|
127
|
5%
|
Total
revenue
|
|
984
|
|
816
|
|
21%
|
|
20%
|
|
1,041
|
(5)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Non-GAAP measures; see
disclaimer and reconciliations to the most directly comparable GAAP
measure included herein
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International Game
Technology PLC
|
Consolidated
Statements of Operations
|
($ in millions
and shares in thousands, except per share
amounts)
|
Unaudited
|
|
|
|
|
|
|
|
|
|
For the three months
ended
|
|
For the nine months
ended
|
|
September
30,
|
|
September
30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Service
revenue
|
832
|
|
|
713
|
|
|
2,634
|
|
|
1,891
|
|
Product
sales
|
152
|
|
|
104
|
|
|
406
|
|
|
340
|
|
Total
revenue
|
984
|
|
|
816
|
|
|
3,039
|
|
|
2,230
|
|
|
|
|
|
|
|
|
|
Cost of
services
|
422
|
|
|
418
|
|
|
1,302
|
|
|
1,194
|
|
Cost of product
sales
|
93
|
|
|
83
|
|
|
253
|
|
|
243
|
|
Selling, general and
administrative
|
195
|
|
|
179
|
|
|
588
|
|
|
511
|
|
Research and
development
|
63
|
|
|
48
|
|
|
179
|
|
|
140
|
|
Goodwill
impairment
|
—
|
|
|
—
|
|
|
—
|
|
|
296
|
|
Restructuring
|
(1)
|
|
|
—
|
|
|
(1)
|
|
|
47
|
|
Other operating
expense
|
—
|
|
|
1
|
|
|
1
|
|
|
3
|
|
Total operating
expenses
|
772
|
|
|
730
|
|
|
2,323
|
|
|
2,434
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
212
|
|
|
87
|
|
|
716
|
|
|
(204)
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
79
|
|
|
101
|
|
|
264
|
|
|
297
|
|
Foreign exchange
(gain) loss, net
|
(6)
|
|
|
149
|
|
|
(62)
|
|
|
153
|
|
Other expense,
net
|
1
|
|
|
6
|
|
|
96
|
|
|
34
|
|
Total
non-operating expenses
|
74
|
|
|
256
|
|
|
298
|
|
|
485
|
|
Income (loss) from
continuing operations before
provision for (benefit from) income taxes
|
138
|
|
|
(170)
|
|
|
418
|
|
|
(689)
|
|
Provision for
(benefit from) income taxes
|
37
|
|
|
(41)
|
|
|
217
|
|
|
(45)
|
|
Income (loss) from
continuing operations
|
101
|
|
|
(129)
|
|
|
200
|
|
|
(644)
|
|
Income from
discontinued operations, net of tax
|
—
|
|
|
26
|
|
|
24
|
|
|
25
|
|
Gain on sale of
discontinued operations, net of tax
|
—
|
|
|
—
|
|
|
391
|
|
|
—
|
|
Income from
discontinued operations
|
—
|
|
|
26
|
|
|
415
|
|
|
25
|
|
Net income
(loss)
|
101
|
|
|
(102)
|
|
|
615
|
|
|
(619)
|
|
Less: Net income
attributable to non-controlling interests
from continuing operations
|
36
|
|
|
25
|
|
|
155
|
|
|
40
|
|
Less: Net income
(loss) attributable to non-controlling
interests from discontinued operations
|
—
|
|
|
1
|
|
|
(2)
|
|
|
(3)
|
|
Net income (loss)
attributable to IGT PLC
|
65
|
|
|
(128)
|
|
|
462
|
|
|
(656)
|
|
|
|
|
|
|
|
|
|
Net income (loss)
from continuing operations
attributable to IGT PLC per common share - basic
|
0.32
|
|
|
(0.75)
|
|
|
0.22
|
|
|
(3.34)
|
|
Net income (loss)
from continuing operations
attributable to IGT PLC per common share - diluted
|
0.31
|
|
|
(0.75)
|
|
|
0.22
|
|
|
(3.34)
|
|
Net income (loss)
attributable to IGT PLC per
common share - basic
|
0.32
|
|
|
(0.62)
|
|
|
2.25
|
|
|
(3.20)
|
|
Net income (loss)
attributable to IGT PLC per
common share - diluted
|
0.31
|
|
|
(0.62)
|
|
|
2.24
|
|
|
(3.20)
|
|
Weighted-average
shares - basic
|
205,188
|
|
|
204,857
|
|
|
205,048
|
|
|
204,680
|
|
Weighted-average
shares - diluted
|
206,899
|
|
|
204,857
|
|
|
206,728
|
|
|
204,680
|
|
International Game
Technology PLC
|
Consolidated
Balance Sheets
|
($ in
millions)
|
Unaudited
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
|
2021
|
|
2020
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
435
|
|
|
907
|
|
Restricted cash and
cash equivalents
|
|
152
|
|
|
199
|
|
Trade and other
receivables, net
|
|
1,017
|
|
|
846
|
|
Inventories
|
|
181
|
|
|
169
|
|
Other current
assets
|
|
607
|
|
|
480
|
|
Assets held for
sale
|
|
4
|
|
|
839
|
|
Total current
assets
|
|
2,396
|
|
|
3,440
|
|
Systems, equipment and
other assets related to contracts, net
|
|
956
|
|
|
1,068
|
|
Property, plant and
equipment, net
|
|
118
|
|
|
132
|
|
Operating lease
right-of-use assets
|
|
283
|
|
|
288
|
|
Goodwill
|
|
4,670
|
|
|
4,713
|
|
Intangible assets,
net
|
|
1,453
|
|
|
1,577
|
|
Other non-current
assets
|
|
1,500
|
|
|
1,774
|
|
Total non-current
assets
|
|
8,981
|
|
|
9,552
|
|
Total
assets
|
|
11,376
|
|
|
12,992
|
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
1,003
|
|
|
1,126
|
|
Current portion of
long-term debt
|
|
—
|
|
|
393
|
|
Other current
liabilities
|
|
825
|
|
|
847
|
|
Liabilities held for
sale
|
|
—
|
|
|
250
|
|
Total current
liabilities
|
|
1,828
|
|
|
2,615
|
|
Long-term debt, less
current portion
|
|
6,544
|
|
|
7,857
|
|
Deferred income
taxes
|
|
392
|
|
|
333
|
|
Operating lease
liabilities
|
|
269
|
|
|
266
|
|
Other non-current
liabilities
|
|
322
|
|
|
360
|
|
Total non-current
liabilities
|
|
7,528
|
|
|
8,816
|
|
Total
liabilities
|
|
9,355
|
|
|
11,431
|
|
Commitments and
contingencies
|
|
|
|
|
IGT PLC's
shareholders' equity
|
|
1,317
|
|
|
777
|
|
Non-controlling
interests
|
|
704
|
|
|
784
|
|
Shareholders'
equity
|
|
2,021
|
|
|
1,561
|
|
Total liabilities
and shareholders' equity
|
|
11,376
|
|
|
12,992
|
|
International Game
Technology PLC
|
Consolidated
Statements of Cash Flows
|
($ in
millions)
|
Unaudited
|
|
For the three months
ended
|
|
For the nine months
ended
|
|
September
30,
|
|
September
30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
Net income
(loss)
|
101
|
|
(102)
|
|
615
|
|
(619)
|
Less: Income from
discontinued operations
|
—
|
|
26
|
|
415
|
|
25
|
Adjustments to
reconcile net income (loss) from continuing operations to net cash
provided by
operating activities from continuing operations:
|
|
|
|
|
|
|
|
Depreciation
|
81
|
|
91
|
|
246
|
|
265
|
Amortization of
upfront license fees
|
54
|
|
54
|
|
164
|
|
156
|
Amortization
|
51
|
|
53
|
|
150
|
|
160
|
Stock-based
compensation
|
11
|
|
1
|
|
22
|
|
(11)
|
Debt issuance cost
amortization
|
4
|
|
5
|
|
15
|
|
16
|
Loss on extinguishment
of debt
|
1
|
|
—
|
|
92
|
|
28
|
Goodwill
impairment
|
—
|
|
—
|
|
—
|
|
296
|
Foreign exchange
(gain) loss, net
|
(6)
|
|
149
|
|
(62)
|
|
153
|
Deferred income
taxes
|
(27)
|
|
(70)
|
|
56
|
|
(107)
|
Other non-cash items,
net
|
(6)
|
|
1
|
|
(1)
|
|
—
|
Changes in operating
assets and liabilities, excluding the effects of acquisitions and
dispositions:
|
|
|
|
|
|
|
|
Trade and other
receivables
|
(50)
|
|
81
|
|
(184)
|
|
169
|
Inventories
|
(17)
|
|
(3)
|
|
(12)
|
|
(9)
|
Accounts
payable
|
(101)
|
|
(25)
|
|
(77)
|
|
(45)
|
Other assets and
liabilities
|
18
|
|
(18)
|
|
4
|
|
(85)
|
Net cash provided
by operating activities from continuing operations
|
113
|
|
191
|
|
613
|
|
344
|
Net cash provided
by (used in) operating activities from discontinued
operations
|
—
|
|
95
|
|
(31)
|
|
267
|
Net cash provided
by operating activities
|
113
|
|
285
|
|
582
|
|
610
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
Capital
expenditures
|
(47)
|
|
(65)
|
|
(168)
|
|
(204)
|
Proceeds from sale of
assets
|
3
|
|
1
|
|
15
|
|
6
|
Other
|
—
|
|
2
|
|
1
|
|
12
|
Net cash used in
investing activities from continuing operations
|
(44)
|
|
(62)
|
|
(152)
|
|
(186)
|
Net cash provided
by (used in) investing activities from discontinued
operations
|
118
|
|
(1)
|
|
852
|
|
(21)
|
Net cash provided
by (used in) investing activities
|
74
|
|
(63)
|
|
700
|
|
(207)
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
Net (repayments of)
proceeds from Revolving Credit Facilities
|
(498)
|
|
(579)
|
|
17
|
|
146
|
Principal payments on
long-term debt
|
(424)
|
|
—
|
|
(2,846)
|
|
(959)
|
Net (payments of)
receipts from financial liabilities
|
(55)
|
|
59
|
|
(52)
|
|
96
|
Payments of debt
issuance costs
|
(7)
|
|
(2)
|
|
(14)
|
|
(21)
|
Payments in connection
with the extinguishment of debt
|
—
|
|
—
|
|
(85)
|
|
(25)
|
Net proceeds from
(repayments of) short-term borrowings
|
16
|
|
(83)
|
|
19
|
|
(8)
|
Proceeds from
long-term debt
|
589
|
|
—
|
|
1,339
|
|
750
|
Dividends
paid
|
—
|
|
—
|
|
—
|
|
(41)
|
Dividends paid -
non-controlling interests
|
—
|
|
(45)
|
|
(89)
|
|
(136)
|
Return of capital -
non-controlling interests
|
(31)
|
|
—
|
|
(92)
|
|
—
|
Capital increase -
non-controlling interests
|
1
|
|
1
|
|
12
|
|
3
|
Other
|
(3)
|
|
(3)
|
|
(12)
|
|
(9)
|
Net cash used in
financing activities
|
(412)
|
|
(650)
|
|
(1,804)
|
|
(204)
|
|
|
|
|
|
|
|
|
Net (decrease)
increase in cash and cash equivalents and restricted cash and cash
equivalents
|
(225)
|
|
(428)
|
|
(522)
|
|
200
|
Effect of exchange
rate changes on cash and cash equivalents and restricted cash and
cash
equivalents
|
(6)
|
|
38
|
|
(19)
|
|
46
|
Cash and cash
equivalents and restricted cash and cash equivalents at the
beginning of the period
|
819
|
|
1,530
|
|
1,129
|
|
894
|
Cash and cash
equivalents and restricted cash and cash equivalents at the end of
the period
|
588
|
|
1,140
|
|
588
|
|
1,140
|
Less: Cash and cash
equivalents and restricted cash and cash equivalents of
discontinued operations
|
—
|
|
19
|
|
—
|
|
19
|
Cash and cash
equivalents and restricted cash and cash equivalents at the end of
the period of
continuing operations
|
588
|
|
1,121
|
|
588
|
|
1,121
|
|
|
|
|
|
|
|
|
Supplemental Cash
Flow Information
|
|
|
|
|
|
|
|
Interest
paid
|
104
|
|
141
|
|
323
|
|
372
|
Income taxes
paid
|
64
|
|
20
|
|
104
|
|
38
|
International Game
Technology PLC
|
Net
Debt
|
($ in
millions)
|
Unaudited
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
|
2021
|
|
2020
|
6.250% Senior Secured
U.S. Dollar Notes due February 2022
|
|
—
|
|
|
1,004
|
|
4.750% Senior Secured
Euro Notes due February 2023
|
|
—
|
|
|
1,038
|
|
5.350% Senior Secured
U.S. Dollar Notes due October 2023
|
|
61
|
|
|
61
|
|
3.500% Senior Secured
Euro Notes due July 2024
|
|
576
|
|
|
610
|
|
6.500% Senior Secured
U.S. Dollar Notes due February 2025
|
|
1,093
|
|
|
1,092
|
|
4.125% Senior Secured
U.S. Dollar Notes due April 2026
|
|
743
|
|
|
—
|
|
3.500% Senior Secured
Euro Notes due June 2026
|
|
863
|
|
|
913
|
|
6.250% Senior Secured
U.S. Dollar Notes due January 2027
|
|
745
|
|
|
744
|
|
2.375% Senior Secured
Euro Notes due April 2028
|
|
575
|
|
|
608
|
|
5.250% Senior Secured
U.S. Dollar Notes due January 2029
|
|
744
|
|
|
743
|
|
Senior Secured
Notes
|
|
5,399
|
|
|
6,813
|
|
|
|
|
|
|
Euro Term Loan
Facilities due January 2027
|
|
1,145
|
|
|
1,044
|
|
Long-term debt,
less current portion
|
|
6,544
|
|
|
7,857
|
|
|
|
|
|
|
Euro Term Loan
Facility due January 2027
|
|
—
|
|
|
393
|
|
Current portion of
long-term debt
|
|
—
|
|
|
393
|
|
|
|
|
|
|
Short-term
borrowings
|
|
19
|
|
|
—
|
|
Total
debt
|
|
6,563
|
|
|
8,250
|
|
|
|
|
|
|
Less: Cash and cash
equivalents
|
|
435
|
|
|
907
|
|
Less: Debt issuance
costs, net - Revolving Credit Facilities due July 2024
|
|
18
|
|
|
24
|
|
Net
debt
|
|
6,109
|
|
|
7,319
|
|
|
|
|
|
|
Note: Net debt is a
non-GAAP financial measure
|
|
|
|
|
International Game
Technology PLC
|
|
Reconciliation of
Non-GAAP Financial Measures
|
|
($ in
millions)
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended September 30, 2021
|
|
|
|
|
|
|
|
|
|
Business
|
|
|
|
|
|
|
|
Global
|
|
Global
|
|
Digital
&
|
|
Segment
|
|
Corporate
|
|
Total IGT
|
|
|
Lottery
|
|
Gaming
|
|
Betting
|
|
Total
|
|
and Other
|
|
PLC
|
Income from
continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
101
|
Provision for income
taxes
|
|
|
|
|
|
|
|
|
|
|
|
37
|
Interest expense,
net
|
|
|
|
|
|
|
|
|
|
|
|
79
|
Foreign exchange gain,
net
|
|
|
|
|
|
|
|
|
|
|
|
(6)
|
Other non-operating
expense, net
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Operating income
(loss)
|
|
234
|
|
31
|
|
12
|
|
278
|
|
(66)
|
|
212
|
Depreciation
|
|
48
|
|
29
|
|
4
|
|
81
|
|
—
|
|
81
|
Amortization - service
revenue (1)
|
|
54
|
|
—
|
|
—
|
|
54
|
|
—
|
|
54
|
Amortization -
non-purchase accounting
|
|
8
|
|
1
|
|
—
|
|
10
|
|
1
|
|
11
|
Amortization - purchase
accounting
|
|
—
|
|
—
|
|
—
|
|
—
|
|
40
|
|
40
|
Restructuring
|
|
—
|
|
—
|
|
(1)
|
|
(1)
|
|
—
|
|
(1)
|
Stock-based
compensation
|
|
3
|
|
2
|
|
—
|
|
5
|
|
6
|
|
11
|
Other
(2)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Adjusted
EBITDA
|
|
347
|
|
64
|
|
15
|
|
426
|
|
(19)
|
|
407
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities - continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
113
|
|
Capital
expenditures
|
|
|
|
|
|
|
|
|
|
|
|
(47)
|
Free Cash
Flow
|
|
|
|
|
|
|
|
|
|
|
|
66
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes amortization of upfront
license fees
|
|
(2) Primarily includes
transaction-related costs
|
|
International Game
Technology PLC
|
|
Reconciliation of
Non-GAAP Financial Measures
|
|
($ in
millions)
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended September 30, 2020
|
|
|
|
|
|
|
|
|
|
Business
|
|
|
|
|
|
|
|
Global
|
|
Global
|
|
Digital
&
|
|
Segment
|
|
Corporate
|
|
Total IGT
|
|
|
|
Lottery
|
|
Gaming
|
|
Betting
|
|
Total
|
|
and Other
|
|
PLC
|
Loss from continuing
operations
|
|
|
|
|
|
|
|
|
|
|
|
(129)
|
Benefit from income
taxes
|
|
|
|
|
|
|
|
|
|
|
|
(41)
|
Interest expense,
net
|
|
|
|
|
|
|
|
|
|
|
|
101
|
Foreign exchange loss,
net
|
|
|
|
|
|
|
|
|
|
|
|
149
|
Other non-operating
expense, net
|
|
|
|
|
|
|
|
|
|
|
|
6
|
Operating income
(loss)
|
|
196
|
|
(56)
|
|
6
|
|
146
|
|
(59)
|
|
87
|
Depreciation
|
|
51
|
|
36
|
|
4
|
|
91
|
|
—
|
|
91
|
Amortization - service
revenue (1)
|
|
54
|
|
—
|
|
—
|
|
54
|
|
—
|
|
54
|
Amortization -
non-purchase accounting
|
|
8
|
|
2
|
|
—
|
|
10
|
|
1
|
|
11
|
Amortization - purchase
accounting
|
|
—
|
|
—
|
|
—
|
|
—
|
|
42
|
|
42
|
Stock-based
compensation
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1
|
|
1
|
Other
(2)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1
|
|
1
|
Adjusted
EBITDA
|
|
309
|
|
(18)
|
|
9
|
|
301
|
|
(13)
|
|
287
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
discontinued operations
|
|
|
|
|
|
|
|
|
|
|
|
26
|
Provision for income
taxes
|
|
|
|
|
|
|
|
|
|
|
|
14
|
Interest expense,
net
|
|
|
|
|
|
|
|
|
|
|
|
—
|
Depreciation
|
|
|
|
|
|
|
|
|
|
|
|
11
|
Amortization
|
|
|
|
|
|
|
|
|
|
|
|
13
|
Adjusted EBITDA -
discontinued operations
|
|
|
|
|
|
|
|
|
|
|
|
65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA -
combined
|
|
|
|
|
|
|
|
|
|
|
|
352
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities - continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
191
|
Capital
expenditures
|
|
|
|
|
|
|
|
|
|
|
|
(65)
|
Free Cash
Flow
|
|
|
|
|
|
|
|
|
|
|
|
126
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes amortization of upfront
license fees
|
|
(2) Primarily includes
transaction-related costs
|
|
International Game
Technology PLC
|
|
Reconciliation of
Non-GAAP Financial Measures
|
|
($ in
millions)
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the nine months
ended September 30, 2021
|
|
|
|
|
|
|
|
|
|
Business
|
|
|
|
|
|
|
|
Global
|
|
Global
|
|
Digital
&
|
|
Segment
|
|
Corporate
|
|
Total IGT
|
|
|
Lottery
|
|
Gaming
|
|
Betting
|
|
Total
|
|
and Other
|
|
PLC
|
Income from
continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
200
|
Provision for income
taxes
|
|
|
|
|
|
|
|
|
|
|
|
217
|
Interest expense,
net
|
|
|
|
|
|
|
|
|
|
|
|
264
|
Foreign exchange gain,
net
|
|
|
|
|
|
|
|
|
|
|
|
(62)
|
Other non-operating
expense, net
|
|
|
|
|
|
|
|
|
|
|
|
96
|
Operating income
(loss)
|
|
871
|
|
7
|
|
28
|
|
906
|
|
(190)
|
|
716
|
Depreciation
|
|
144
|
|
92
|
|
11
|
|
247
|
|
(1)
|
|
246
|
Amortization - service
revenue (1)
|
|
164
|
|
—
|
|
—
|
|
164
|
|
—
|
|
164
|
Amortization -
non-purchase accounting
|
|
25
|
|
4
|
|
—
|
|
29
|
|
3
|
|
32
|
Amortization - purchase
accounting
|
|
—
|
|
—
|
|
—
|
|
—
|
|
118
|
|
118
|
Restructuring
|
|
(1)
|
|
—
|
|
(1)
|
|
(1)
|
|
—
|
|
(1)
|
Stock-based
compensation
|
|
5
|
|
4
|
|
—
|
|
10
|
|
12
|
|
22
|
Other
(2)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1
|
|
1
|
Adjusted
EBITDA
|
|
1,209
|
|
107
|
|
39
|
|
1,355
|
|
(57)
|
|
1,299
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
discontinued operations
|
|
|
|
|
|
|
|
|
|
|
|
415
|
Gain on sale of
discontinued operations
|
|
|
|
|
|
|
|
|
|
|
|
(396)
|
Provision for income
taxes
|
|
|
|
|
|
|
|
|
|
|
|
4
|
Interest expense,
net
|
|
|
|
|
|
|
|
|
|
|
|
—
|
Depreciation
|
|
|
|
|
|
|
|
|
|
|
|
—
|
Amortization
|
|
|
|
|
|
|
|
|
|
|
|
—
|
Adjusted EBITDA -
discontinued operations
|
|
|
|
|
|
|
|
|
|
|
|
23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA -
combined
|
|
|
|
|
|
|
|
|
|
|
|
1,322
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities - continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
613
|
|
Capital
expenditures
|
|
|
|
|
|
|
|
|
|
|
|
(168)
|
Free Cash
Flow
|
|
|
|
|
|
|
|
|
|
|
|
445
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes amortization of upfront
license fees
|
|
(2) Primarily includes
transaction-related costs
|
|
International Game
Technology PLC
|
|
Reconciliation of
Non-GAAP Financial Measures
|
|
($ in
millions)
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the nine months
ended September 30, 2020
|
|
|
|
|
|
|
|
|
|
Business
|
|
|
|
|
|
|
|
Global
|
|
Global
|
|
Digital
&
|
|
Segment
|
|
Corporate
|
|
Total IGT
|
|
|
Lottery
|
|
Gaming
|
|
Betting
|
|
Total
|
|
and Other
|
|
PLC
|
Loss from continuing
operations
|
|
|
|
|
|
|
|
|
|
|
|
(644)
|
Benefit from income
taxes
|
|
|
|
|
|
|
|
|
|
|
|
(45)
|
Interest expense,
net
|
|
|
|
|
|
|
|
|
|
|
|
297
|
Foreign exchange loss,
net
|
|
|
|
|
|
|
|
|
|
|
|
153
|
Other non-operating
expense, net
|
|
|
|
|
|
|
|
|
|
|
|
34
|
Operating income
(loss)
|
|
447
|
|
(170)
|
|
3
|
|
280
|
|
(484)
|
|
(204)
|
Goodwill
impairment
|
|
—
|
|
—
|
|
—
|
|
—
|
|
296
|
|
296
|
Depreciation
|
|
147
|
|
106
|
|
11
|
|
264
|
|
1
|
|
265
|
Amortization - service
revenue (1)
|
|
156
|
|
—
|
|
—
|
|
156
|
|
—
|
|
156
|
Amortization -
non-purchase accounting
|
|
22
|
|
5
|
|
—
|
|
27
|
|
2
|
|
30
|
Amortization -
purchase accounting
|
|
—
|
|
—
|
|
—
|
|
—
|
|
131
|
|
131
|
Restructuring
|
|
5
|
|
34
|
|
1
|
|
41
|
|
6
|
|
47
|
Stock-based
compensation
|
|
(4)
|
|
(5)
|
|
—
|
|
(9)
|
|
(2)
|
|
(11)
|
Other
(2)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
3
|
|
3
|
Adjusted
EBITDA
|
|
773
|
|
(28)
|
|
14
|
|
759
|
|
(47)
|
|
713
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
discontinued operations
|
|
|
|
|
|
|
|
|
|
|
|
25
|
Provision for income
taxes
|
|
|
|
|
|
|
|
|
|
|
|
10
|
Interest expense,
net
|
|
|
|
|
|
|
|
|
|
|
|
—
|
Depreciation
|
|
|
|
|
|
|
|
|
|
|
|
36
|
Amortization
|
|
|
|
|
|
|
|
|
|
|
|
41
|
Adjusted EBITDA -
discontinued operations
|
|
|
|
|
|
|
|
|
|
|
|
112
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA -
combined
|
|
|
|
|
|
|
|
|
|
|
|
825
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities - continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
344
|
|
Capital
expenditures
|
|
|
|
|
|
|
|
|
|
|
|
(204)
|
Free Cash
Flow
|
|
|
|
|
|
|
|
|
|
|
|
139
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes amortization of upfront
license fees
|
|
(2) Primarily includes
transaction-related costs
|
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/international-game-technology-plc-reports-third-quarter-2021-results-301419546.html
SOURCE International Game Technology PLC