LONDON, March 7, 2019 /PRNewswire/ -- International Game
Technology PLC ("IGT") (NYSE:IGT) today reported financial results
for the fourth quarter and full year ended December 31, 2018. Today, at 8:00 a.m. EST, management will host a conference
call and webcast to present the fourth quarter and full year
results; access details are provided below.
"Our 2018 results are in line with the improved
outlook we provided in October. The year was characterized by
strong global Lottery performance, resilience in Italy, and progress in North America Gaming,"
said Marco Sala, CEO of IGT.
"We've established solid foundations to build on – securing large,
long-term Lottery contracts in key markets and executing a full
refresh of our gaming machine cabinet and content portfolio. These
efforts will translate into improved free cash flow beginning in
2019."
"We achieved 4% Adjusted EBITDA growth on stable revenue at
constant currency and scope in 2018," said Alberto Fornaro, CFO of IGT. "We managed our
net debt effectively, while making large upfront payments for a key
Lottery license in Italy,
investing in long-term North America Lottery contracts, and
returning capital to shareholders through dividends. Our outlook
for 2019 Adjusted EBITDA of $1.70-$1.76 billion
assumes underlying growth for our core Lottery and Gaming
businesses."
Overview of Consolidated Fourth Quarter and Full Year 2018
Results
|
Quarter Ended
December 31,
|
Y/Y
Change
|
Constant
Currency
Change
|
|
2018(1)
|
2017
|
(%)
|
(%)
|
(In $ millions,
unless otherwise noted)
|
|
|
|
|
Revenue
|
1,266
|
1,346
|
-6%
|
-4%
|
Operating
income
|
41
|
194
|
-79%
|
-76%
|
Net income/(loss) per
diluted share
|
($0.50)
|
$0.39
|
NM
|
|
Net debt
|
7,761
|
7,319
|
6%
|
|
Adjusted
EBITDA
|
416
|
452
|
-8%
|
-6%
|
Adjusted operating
income
|
218
|
268
|
-19%
|
-17%
|
Adjusted net income
per diluted share
|
$0.24
|
$0.02
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31,
|
Y/Y
Change
|
Constant
Currency
Change
|
|
2018(1)
|
2017
|
(%)
|
(%)
|
(In $ millions,
unless otherwise noted)
|
|
|
|
|
Revenue
|
4,831
|
4,939
|
-2%
|
-3%
|
Operating
income
|
647
|
(51)
|
NM
|
|
Net income per
diluted share
|
($0.10)
|
($5.26)
|
NM
|
|
Net debt
|
7,761
|
7,319
|
6%
|
|
Adjusted
EBITDA
|
1,737
|
1,676
|
4%
|
2%
|
Adjusted operating
income
|
990
|
1,028
|
-4%
|
-6%
|
Adjusted net income
per diluted share
|
$0.98
|
$0.86
|
14%
|
|
|
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.
|
|
(1) On
January 1, 2018, IGT adopted ASU 2014-09 (Topic 606), Revenue from
Contracts with Customers ("ASC 606"). This negatively impacted
Revenue in the fourth quarter by $14 million and positively
impacted Adjusted EBITDA by $8 million. For the full year, Revenue
was negatively impacted by $65 million and Adjusted EBITDA was
positively impacted by $15 million. Comparative schedules
summarizing the impact on the fourth quarter and full year ended
December 31, 2018 Consolidated Statements of Operations are
included later in this release.
|
Overview of Consolidated Fourth Quarter 2018 Results
Consolidated revenue of $1,266
million, down 4% at constant currency
- Stable Gaming and Lottery revenue
- Decline driven by Sports Betting dynamics in the prior year,
including exceptionally low payout percentage in Italy and large International product
sales
- $14 million negative impact from
ASC 606
Adjusted EBITDA of $416 million,
down 6% at constant currency
- Lower revenue
- Increased SG&A due to timing differences of certain expense
accruals between years
Adjusted operating income was $218
million, a decline of 17% at constant currency
- Higher depreciation associated with recent Lottery contract
wins and extensions, upgrading of Gaming installed base
Interest expense was $108 million
compared to $114 million in the
prior-year quarter
Provision for income taxes was $30
million compared to a benefit of $83
million in the prior-year period
- One-time, non-cash benefit of $104
million related to U.S. tax reform in the prior year
Net loss attributable to IGT was $102
million in the quarter; Adjusted net income attributable to
IGT was $48 million
- Includes non-cash, non-tax-deductible impairment charge of
$119 million, reducing the carrying
value of the International segment
-
- Underlying International growth outlook unchanged
- Charge has no impact on the Company's operations, cash flow,
ability to service debt, compliance with financial covenants, or
underlying liquidity
Net loss per diluted share of $0.50; Adjusted net income per diluted share of
$0.24
Overview of Consolidated Full Year 2018 Results
Consolidated revenue was $4,831
million, stable at constant currency and scope
- Constant scope adjusts for the sale of Double Down Interactive,
LLC in June 2017
- Underlying improvement in North
America for both Gaming and Lottery
- Broad-based strength in Italy
- Lower International revenue
- $73 million negative impact from
reclass of jackpot expense to contra-revenue item under ASC
606
Adjusted EBITDA of $1,737 million,
up 4% at constant currency and scope
- Stable revenue
- Optimization of R&D
Adjusted operating income was $990
million, a decline of 3% at constant currency and scope
- Higher depreciation associated with recent Lottery contract
wins and extensions, upgrading of Gaming installed base
Capital Expenditures of $533
million compared to $698
million in the prior year
Cash from operations was $30
million for the full year
- Includes $878 million (gross)
upfront payments for the Italy Scratch & Win license
Cash and cash equivalents were $251
million as of December 31,
2018, compared to $1,057
million as of December 31,
2017
Net debt was $7,761 million as of
December 31, 2018, compared to
$7,319 million as of December 31, 2017
- Increase driven by Italy Scratch & Win upfront license
payments
Operating Segment Review
North America Gaming & Interactive
Select Financial
Data
|
|
|
Constant
|
|
Key Performance
Indicators
|
|
|
%
|
Period Ended
December 31
|
Q4
'18
|
Q4
'17
|
FX
|
|
Period Ended
December 31
|
Q4'18
|
Q4'17
|
Change
|
Gaming
|
|
Total
Revenue
|
273
|
281
|
-1%
|
|
Installed base
(end of period)
|
|
|
|
|
Gaming
Services
|
147
|
167
|
-12%
|
|
Casino
|
23,108
|
22,807
|
1.3%
|
|
|
Terminal
|
101
|
118
|
-14%
|
|
|
|
|
|
|
|
Social
(DDI)
|
0
|
0
|
0%
|
|
Machine units
shipped
|
|
|
|
|
|
Other
|
46
|
49
|
-5%
|
|
New/Expansion
|
247
|
805
|
-69.3%
|
|
Product
Sales
|
126
|
113
|
13%
|
|
Replacement
|
6,485
|
4,490
|
44.4%
|
|
|
Terminal
|
96
|
72
|
34%
|
|
Total
machines shipped
|
6,732
|
5,295
|
27.1%
|
|
|
Other
|
30
|
41
|
-26%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
Total
Revenue
|
2
|
0
|
NM
|
|
|
|
|
|
|
Service
Revenue
|
2
|
0
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Revenue
|
275
|
281
|
-1%
|
|
|
|
|
|
|
Operating
Income
|
51
|
69
|
-27%
|
|
|
|
|
|
Revenue down slightly to $275
million compared to $281
million in the prior-year quarter
- Up $9 million, or 3%, after
adjusting for $15 million jackpot
expense reclass (ASC 606)
- Product sales revenue up 11% to $126
million
-
- 27% increase in Gaming machine units shipped and higher average
selling prices
- Decline in Other product sales primarily driven by higher
intellectual property revenue in the prior year
- Gaming service revenue of $147
million compared to $167
million in the prior year
-
- Terminal service revenue stable after adjusting for jackpot
expense reclass
- Installed base increased 301 units on strength of new games and
cabinets
- Yields lower on shift in jurisdictional and machine mix
Operating income of $51 million
compared to $69 million in the
prior-year quarter
- Increased depreciation expense
- Contribution from high-margin intellectual property revenue in
the prior year
North America Lottery
Select Financial
Data
|
|
|
Constant
|
|
Key Performance
Indicators
|
|
|
%
|
Period Ended
December 31
|
Q4
'18
|
Q4
'17
|
FX
|
|
Period Ended
December 31
|
Q4'18
|
Q4'17
|
Change
|
Gaming
|
|
Total
Revenue
|
40
|
42
|
-3%
|
|
Installed base
(end of period)
|
|
|
|
|
Gaming
Services
|
40
|
38
|
8%
|
|
VLT - Government Sponsored
|
14,939
|
15,294
|
-2.3%
|
|
|
Terminal
|
25
|
24
|
2%
|
|
|
|
|
|
|
|
Other
|
16
|
13
|
18%
|
|
Lottery same-store
revenue growth
|
|
|
|
|
Product
Sales
|
0
|
4
|
NM
|
|
Instants
& draw games
|
|
|
5.0%
|
|
|
|
|
|
|
|
|
Multistate Jackpots
|
|
|
143.1%
|
Lottery
|
|
Total
Revenue
|
268
|
262
|
2%
|
|
Total
lottery same-store revenue growth
|
|
21.3%
|
|
Lottery
Services
|
255
|
232
|
10%
|
|
|
|
|
|
|
|
FMC
|
193
|
165
|
17%
|
|
|
|
|
|
|
|
LMA
|
29
|
36
|
-19%
|
|
|
|
|
|
|
|
Other
Services
|
33
|
32
|
5%
|
|
|
|
|
|
|
Product
Sales
|
13
|
30
|
-56%
|
|
|
|
|
|
|
|
Terminal
|
0
|
2
|
NM
|
|
|
|
|
|
|
|
Systems/Other
|
13
|
28
|
-53%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Revenue
|
309
|
304
|
2%
|
|
|
|
|
|
|
Operating
Income
|
79
|
66
|
21%
|
|
|
|
|
|
Revenue increased 2% to $309
million
- Lottery service revenue up 10% to $255
million
-
- Significant increase in Multistate Jackpots driven by
$1.5 billion Mega Millions
jackpot
- 5.0% same-store revenue growth for instant tickets and
draw-based games
- Lower LMA revenue (reimbursable expenses)
- Lottery product sales of $13
million compared to $30
million in prior year
-
- Prior year benefitted from higher lottery terminal sales and a
large Canadian VLT central system sale
Operating income increased 21% to $79
million
- Significant profit flow-through on robust same-store revenue
growth
- Partly offset by higher depreciation related to recent contract
wins and extensions
International
Select Financial
Data
|
|
|
Constant
|
|
Key Performance
Indicators
|
|
|
%
|
Period Ended
December 31
|
Q4
'18
|
Q4
'17
|
FX
|
|
Period Ended
December 31
|
Q4'18
|
Q4'17
|
Change
|
Gaming
|
|
Total
Revenue
|
127
|
149
|
-11%
|
|
Installed base
(end of period)
|
|
|
|
|
Gaming
Services
|
34
|
55
|
-33%
|
|
Casino
|
10,636
|
12,818
|
-17.0%
|
|
|
Terminal
|
13
|
13
|
16%
|
|
VLT - Government Sponsored
|
4,269
|
2,725
|
56.7%
|
|
|
Other
|
21
|
42
|
-48%
|
|
Total
installed base
|
14,905
|
15,543
|
-4.1%
|
|
Product
Sales
|
94
|
94
|
2%
|
|
|
|
|
|
|
|
Terminal
|
64
|
73
|
-11%
|
|
Machine units
shipped
|
|
|
|
|
|
Other
|
30
|
21
|
47%
|
|
New/Expansion
|
528
|
544
|
-2.9%
|
|
|
|
|
|
|
|
|
Replacement
|
4,730
|
5,021
|
-5.8%
|
Lottery
|
|
Total
Revenue
|
76
|
99
|
-20%
|
|
Total
machines shipped
|
5,258
|
5,565
|
-5.5%
|
|
Lottery
Services
|
72
|
80
|
-8%
|
|
|
|
|
|
|
|
FMC
|
56
|
55
|
7%
|
|
Lottery same-store
revenue growth
|
|
|
|
|
|
Other
Services
|
16
|
25
|
-38%
|
|
Instants
& draw games
|
|
|
4.1%
|
|
Product
Sales
|
4
|
19
|
-75%
|
|
Multistate Jackpots
|
|
|
8.6%
|
|
|
Systems/Other
|
4
|
19
|
-75%
|
|
Total
lottery same-store revenue growth
|
|
4.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
Total
Revenue
|
18
|
32
|
-41%
|
|
|
|
|
|
|
Service
Revenue
|
17
|
20
|
-4%
|
|
|
|
|
|
|
Product
Sales
|
0
|
12
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Revenue
|
221
|
280
|
-18%
|
|
|
|
|
|
|
Operating
Income
|
28
|
72
|
-57%
|
|
|
|
|
|
Revenue of $221 million compared
to $280 million in the prior-year
period
- Comparisons reflect significant contract-specific milestones
achieved in prior year
- Lottery service revenue of $72
million compared to $80
million in the prior year
-
- Same-store revenue growth of 4.4% driven by instant tickets,
draw-based games, and jackpot games
- Prior-year benefit from contract milestone-driven revenue
- Lottery product sales reflect higher software sales in the
prior year
- Gaming service revenue of $34
million compared to $55
million in the prior year
-
- Prior-year benefit from contract milestone-driven revenue
- Installed base decline includes 1,484-unit conversion sale,
partly offset by an increase in Greece VLTs
- Jackpot expense reclass of $2
million
- Gaming product sales revenue stable at $94 million
-
- Terminal revenue impacted by lower unit shipments to
Latin America and Europe
- Other product sales increased on higher software sales
Operating income of $28 million
compared to $72 million in the
prior-year period
- Lower revenue with less favorable mix
- Increased SG&A due to timing differences of certain expense
accruals between years
Italy
Select Financial
Data
|
|
|
Constant
|
|
Key Performance
Indicators
|
|
|
%
|
Period Ended
December 31
|
Q4
'18
|
Q4
'17
|
FX
|
|
Period Ended
December 31
|
Q4'18
|
Q4'17
|
Change
|
Gaming
|
|
Total
Revenue
|
192
|
193
|
4%
|
|
(In € millions,
except machines)
|
|
|
|
|
Gaming
Services
|
191
|
192
|
4%
|
|
Lottery
|
|
|
|
|
|
Terminal
|
174
|
176
|
3%
|
|
Lotto
wagers
|
2,089
|
1,951
|
7.1%
|
|
|
Other
|
18
|
16
|
12%
|
|
10eLotto
|
1,495
|
1,386
|
7.8%
|
|
Product
Sales
|
0
|
0
|
0%
|
|
Core
|
468
|
508
|
-7.9%
|
|
|
|
|
|
|
|
|
Late
Numbers
|
78
|
57
|
37.0%
|
Lottery
|
|
Total
Revenue
|
202
|
198
|
6%
|
|
MillionDAY
|
49
|
-
|
NM
|
|
Lottery
Services
|
202
|
198
|
6%
|
|
|
|
|
|
|
|
FMC
|
248
|
246
|
5%
|
|
Scratch & Win
Wagers
|
2,383
|
2,344
|
1.7%
|
|
|
Other
Services
|
(46)
|
(48)
|
0%
|
|
|
|
|
|
|
Product
Sales
|
0
|
0
|
0%
|
|
Italy lottery
revenue growth
|
|
|
6.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
Total
Revenue
|
68
|
90
|
-22%
|
|
Gaming
|
|
|
|
|
Service
Revenue
|
68
|
90
|
-22%
|
|
Installed base
(end of period)
|
|
|
|
|
Product
Sales
|
0
|
0
|
0%
|
|
VLT -
Operator (B2C)
|
10,991
|
10,985
|
0.1%
|
|
|
|
|
|
|
|
|
VLT -
Supplier (B2B)
|
8,058
|
8,592
|
-6.2%
|
Total
|
|
Revenue
|
462
|
481
|
0%
|
|
AWP
|
42,928
|
56,590
|
-24.1%
|
|
Operating
Income
|
118
|
115
|
7%
|
|
Total
Installed Base
|
61,977
|
76,167
|
-18.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wagers
|
|
|
|
|
|
|
|
|
|
|
|
VLT -
Operator (B2C)
|
1,564
|
1,428
|
9.5%
|
|
|
|
|
|
|
|
|
AWP
|
997
|
1,032
|
-3.4%
|
|
|
|
|
|
|
|
|
Interactive Wagers (Gaming)
|
492
|
461
|
6.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
Sports
Betting Wagers (1)
|
273
|
271
|
0.6%
|
|
|
|
|
|
|
|
|
Sports
Betting Payout (%) (1)
|
84.2%
|
76.2%
|
8.0
pp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)Includes Virtual Wagers and Pools
& Horses
|
|
Revenue of $462 million compared
to $481 million in the prior year,
stable at constant currency
- Lottery service revenue up 6% at constant currency
-
- Lotto wagers rose 7.1% on continued strength in 10eLotto and
contribution from MillionDAY
- Scratch & Win wagers rose 1.7% on relaunch of Multiplier
tickets
- Gaming service revenue up 4% at constant currency
-
- Strong improvement in machine productivity
- Increase in wagers helped mitigate state-mandated reductions in
AWP units, incremental taxes, and certain regional
restrictions
- Sports Betting wagers stable, payout of 84.2% reflects a more
normalized level
Operating income increased 7% at constant currency to
$118 million
- Broad-based wager growth with strong profit flow-through,
especially for Lotteries
- Partly offset by higher Sports Betting payout and increased
taxes on gaming machines
Other Developments
The Company's Board of Directors declared a quarterly cash
dividend of $0.20 per ordinary
share
- Record date of March 21,
2019
- Payment date of April 4,
2019
Outlook
- 2019 Adjusted EBITDA $1.70 -
$1.76 billion
- Capital expenditures of $450 -
$550 million
- Assumes a EUR/USD exchange rate of 1.15
Conference Call and Webcast
March 7, 2019, at 8:00 a.m. EST
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 7055579
- 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 7055579
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 2018 are
calculated using the same foreign exchange rates as the
corresponding 2017 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, 2017 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:
Angela Geryak Wiczek, Corporate
Communications, toll free in U.S./Canada +1 (844) IGT-7452; outside
U.S./Canada +1 (401) 392-7452
James Hurley, Investor Relations, +1
(401) 392-7190
Giuliano Frosini, +39 06 51899584;
for Italian media inquiries
International Game
Technology PLC
|
Consolidated
Statements of Operations
|
($ and shares
in thousands, except per share data)
|
Unaudited
|
|
|
|
|
|
For the three
months ended
|
|
December
31,
|
|
2018
|
|
2017
|
|
|
|
|
Service
revenue
|
1,029,031
|
|
1,073,079
|
Product
sales
|
237,101
|
|
272,591
|
Total
revenue
|
1,266,132
|
|
1,345,670
|
|
|
|
|
Cost of
services
|
638,105
|
|
686,802
|
Cost of product
sales
|
157,965
|
|
176,375
|
Selling, general and
administrative
|
238,654
|
|
208,522
|
Research and
development
|
64,782
|
|
70,946
|
Restructuring
expense
|
6,857
|
|
9,170
|
Impairment
loss
|
118,877
|
|
-
|
Transaction expense
(income), net
|
1
|
|
(58)
|
Total operating
expenses
|
1,225,241
|
|
1,151,757
|
|
|
|
|
Operating
income
|
40,891
|
|
193,913
|
|
|
|
|
Interest
income
|
4,632
|
|
2,444
|
Interest
expense
|
(108,298)
|
|
(114,405)
|
Foreign exchange gain
(loss), net
|
32,096
|
|
(59,228)
|
Other expense,
net
|
(9,040)
|
|
(146)
|
Total
non-operating expenses
|
(80,610)
|
|
(171,335)
|
|
|
|
|
(Loss) income
before provision for (benefit from) income taxes
|
(39,719)
|
|
22,578
|
|
|
|
|
Provision for
(benefit from) income taxes
|
30,337
|
|
(83,346)
|
|
|
|
|
Net (loss)
income
|
(70,056)
|
|
105,924
|
|
|
|
|
Less: Net income
attributable to non-controlling interests
|
31,943
|
|
26,195
|
|
|
|
|
Net (loss) income
attributable to IGT PLC
|
(101,999)
|
|
79,729
|
|
|
|
|
|
|
|
|
Net (loss) income
attributable to IGT PLC per common share - basic
|
(0.50)
|
|
0.39
|
Net (loss) income
attributable to IGT PLC per common share - diluted
|
(0.50)
|
|
0.39
|
|
|
|
|
Weighted-average
shares - basic
|
204,307
|
|
203,513
|
Weighted-average
shares - diluted
|
204,307
|
|
204,104
|
International Game
Technology PLC
|
Consolidated
Statements of Operations
|
($ and shares
in thousands, except per share data)
|
Unaudited
|
|
|
|
|
|
For the year
ended
|
|
December
31,
|
|
2018
|
|
2017
|
|
|
|
|
Service
revenue
|
4,046,314
|
|
4,136,556
|
Product
sales
|
784,942
|
|
802,403
|
Total
revenue
|
4,831,256
|
|
4,938,959
|
|
|
|
|
Cost of
services
|
2,450,658
|
|
2,553,083
|
Cost of product
sales
|
491,030
|
|
579,431
|
Selling, general and
administrative
|
844,059
|
|
816,093
|
Research and
development
|
263,279
|
|
313,088
|
Restructuring
expense
|
14,781
|
|
39,876
|
Impairment
loss
|
120,407
|
|
715,220
|
Transaction expense
(income), net
|
51
|
|
(26,740)
|
Total operating
expenses
|
4,184,265
|
|
4,990,051
|
|
|
|
|
Operating income
(loss)
|
646,991
|
|
(51,092)
|
|
|
|
|
Interest
income
|
14,231
|
|
10,436
|
Interest
expense
|
(431,618)
|
|
(458,899)
|
Foreign exchange gain
(loss), net
|
129,051
|
|
(443,977)
|
Other expense,
net
|
(54,607)
|
|
(33,393)
|
Total
non-operating expenses
|
(342,943)
|
|
(925,833)
|
|
|
|
|
Income (loss)
before provision for (benefit from) income taxes
|
304,048
|
|
(976,925)
|
|
|
|
|
Provision for
(benefit from) income taxes
|
189,401
|
|
(29,414)
|
|
|
|
|
Net income
(loss)
|
114,647
|
|
(947,511)
|
|
|
|
|
Less: Net income
attributable to non-controlling interests
|
135,997
|
|
121,065
|
|
|
|
|
Net loss
attributable to IGT PLC
|
(21,350)
|
|
(1,068,576)
|
|
|
|
|
|
|
|
|
Net loss
attributable to IGT PLC per common share - basic
|
(0.10)
|
|
(5.26)
|
Net loss
attributable to IGT PLC per common share - diluted
|
(0.10)
|
|
(5.26)
|
|
|
|
|
Weighted-average
shares - basic
|
204,083
|
|
203,130
|
Weighted-average
shares - diluted
|
204,083
|
|
203,130
|
International Game
Technology PLC
|
Consolidated
Balance Sheets
|
($
thousands)
|
Unaudited
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
2018
|
|
2017
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
250,669
|
|
1,057,418
|
Restricted cash and
cash equivalents
|
261,108
|
|
248,012
|
Trade and other
receivables, net
|
949,085
|
|
937,854
|
Inventories
|
282,698
|
|
319,545
|
Other current
assets
|
504,061
|
|
407,520
|
Income taxes
receivable
|
39,075
|
|
94,168
|
Total current
assets
|
2,286,696
|
|
3,064,517
|
Systems, equipment
and other assets related to contracts, net
|
1,404,426
|
|
1,434,194
|
Property, plant and
equipment, net
|
185,349
|
|
193,723
|
Goodwill
|
5,580,227
|
|
5,723,815
|
Intangible assets,
net
|
2,044,723
|
|
2,273,460
|
Other non-current
assets
|
2,108,964
|
|
2,427,953
|
Deferred income
taxes
|
38,117
|
|
41,546
|
Total non-current
assets
|
11,361,806
|
|
12,094,691
|
Total
assets
|
13,648,502
|
|
15,159,208
|
|
|
|
|
Liabilities,
redeemable non-controlling interests, and shareholders'
equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
1,142,371
|
|
1,240,753
|
Other current
liabilities
|
816,722
|
|
1,780,875
|
Current portion of
long-term debt
|
-
|
|
599,114
|
Short-term
borrowings
|
34,822
|
|
-
|
Income taxes
payable
|
8,209
|
|
55,935
|
Total current
liabilities
|
2,002,124
|
|
3,676,677
|
Long-term debt, less
current portion
|
7,977,267
|
|
7,777,445
|
Deferred income
taxes
|
446,083
|
|
491,460
|
Income taxes
payable
|
25,654
|
|
55,665
|
Other non-current
liabilities
|
445,445
|
|
446,113
|
Total non-current
liabilities
|
8,894,449
|
|
8,770,683
|
Total
liabilities
|
10,896,573
|
|
12,447,360
|
Commitments and
contingencies
|
|
|
|
Redeemable
non-controlling interests and shareholders' equity
|
2,751,929
|
|
2,711,848
|
Total liabilities,
redeemable non-controlling interests, and shareholders'
equity
|
13,648,502
|
|
15,159,208
|
International Game
Technology PLC
|
Consolidated
Statements of Cash Flows
|
($
thousands)
|
Unaudited
|
|
|
|
|
|
For the year
ended
|
|
|
December
31,
|
|
|
2018
|
|
2017
|
Cash flows from
operating activities
|
|
|
|
|
Net income
(loss)
|
|
114,647
|
|
(947,511)
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
Depreciation
|
|
432,899
|
|
401,085
|
Amortization
|
|
272,561
|
|
401,355
|
Service revenue
amortization
|
|
217,341
|
|
209,774
|
Impairment
loss
|
|
120,407
|
|
715,220
|
Loss on
extinguishment of debt
|
|
54,423
|
|
25,733
|
Stock-based
compensation expense
|
|
33,086
|
|
4,704
|
Debt issuance cost
amortization
|
|
22,042
|
|
23,217
|
Deferred income tax
provision
|
|
(34,494)
|
|
(296,265)
|
Foreign exchange
(gain) loss, net
|
|
(129,051)
|
|
443,977
|
Gain on sale of
Double Down Interactive LLC
|
|
-
|
|
(51,348)
|
Other non-cash costs,
net
|
|
29,550
|
|
25,768
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Trade and other
receivables
|
|
(54,356)
|
|
45,465
|
Inventories
|
|
12,556
|
|
51,406
|
Upfront Italian
license fees
|
|
(878,055)
|
|
(244,698)
|
Accounts
payable
|
|
(51,990)
|
|
(3,031)
|
Other assets and
liabilities
|
|
(131,940)
|
|
(141,463)
|
Net cash provided
by operating activities
|
|
29,626
|
|
663,388
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
Capital
expenditures
|
|
(533,052)
|
|
(698,010)
|
Proceeds from sale of
assets
|
|
19,243
|
|
167,452
|
Proceeds from sale of
Double Down Interactive LLC, net of cash divested
|
|
-
|
|
823,788
|
Other
|
|
2,272
|
|
2,336
|
Net cash (used in)
provided by investing activities
|
|
(511,537)
|
|
295,566
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
Principal payments on
long-term debt
|
|
(1,899,888)
|
|
(1,754,259)
|
Dividends
paid
|
|
(163,236)
|
|
(162,528)
|
Dividends paid -
non-controlling interests
|
|
(126,926)
|
|
(57,908)
|
Return of capital -
non-controlling interests
|
|
(85,121)
|
|
(84,391)
|
Payments in
connection with the extinguishment of debt
|
|
(49,976)
|
|
(38,832)
|
Debt issuance costs
paid
|
|
(17,033)
|
|
(16,378)
|
Net receipts from
(payments of) financial liabilities
|
|
7,123
|
|
(150)
|
Net proceeds from
short-term borrowings
|
|
34,822
|
|
-
|
Capital increase -
non-controlling interests
|
|
321,584
|
|
148,468
|
Proceeds from
long-term debt
|
|
1,687,761
|
|
1,762,270
|
Other
|
|
(20,655)
|
|
(43,264)
|
Net cash used in
financing activities
|
|
(311,545)
|
|
(246,972)
|
|
|
|
|
|
Net (decrease)
increase in cash and cash equivalents, and restricted
cash
|
|
(793,456)
|
|
711,982
|
Effect of exchange
rate changes on cash and cash equivalents, and restricted
cash
|
|
(197)
|
|
52,132
|
Cash and cash
equivalents, and restricted cash at the beginning of the
period
|
|
1,305,430
|
|
541,316
|
Cash and cash
equivalents, and restricted cash at the end of the
period
|
|
511,777
|
|
1,305,430
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Cash Flow Information:
|
|
|
|
|
Interest
paid
|
|
(445,698)
|
|
(417,110)
|
Income taxes
paid
|
|
(239,831)
|
|
(296,386)
|
International Game
Technology PLC
|
Net
Debt
|
($
thousands)
|
Unaudited
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
7.500% Senior Secured
Notes due July 2019
|
|
-
|
|
148,231
|
4.125% Senior Secured
Notes due February 2020
|
|
499,167
|
|
833,655
|
5.625% Senior Secured
Notes due February 2020
|
|
-
|
|
595,767
|
4.750% Senior Secured
Notes due March 2020
|
|
438,252
|
|
585,171
|
5.500% Senior Secured
Notes due June 2020
|
|
27,519
|
|
125,709
|
6.250% Senior Secured
Notes due February 2022
|
|
1,469,609
|
|
1,470,075
|
4.750% Senior Secured
Notes due February 2023
|
|
964,730
|
|
1,008,601
|
5.350% Senior Secured
Notes due October 2023
|
|
60,983
|
|
61,082
|
3.500% Senior Secured
Notes due July 2024
|
|
567,179
|
|
-
|
6.500% Senior Secured
Notes due February 2025
|
|
1,088,385
|
|
1,086,913
|
6.250% Senior Secured
Notes due January 2027
|
|
742,667
|
|
-
|
Senior Secured
Notes, long-term
|
|
5,858,491
|
|
5,915,204
|
|
|
|
|
|
Revolving Credit
Facilities due July 2021
|
|
413,381
|
|
76,880
|
Term Loan Facilities
due January 2023
|
|
1,705,395
|
|
1,785,361
|
Long-term debt,
less current portion
|
|
7,977,267
|
|
7,777,445
|
|
|
|
|
|
6.625% Senior Secured
Notes due February 2018
|
|
-
|
|
599,114
|
Current portion of
long-term debt
|
|
-
|
|
599,114
|
|
|
|
|
|
Short-term
borrowings
|
|
34,822
|
|
-
|
Total
debt
|
|
8,012,089
|
|
8,376,559
|
|
|
|
|
|
Less: Cash and cash
equivalents
|
|
250,669
|
|
1,057,418
|
|
|
|
|
|
Net
debt
|
|
7,761,420
|
|
7,319,141
|
|
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
|
|
|
December
31,
|
|
|
2018
|
|
2017
|
|
|
|
|
|
Net (loss)
income
|
|
(70,056)
|
|
105,924
|
Provision for
(benefit from) income taxes
|
|
30,337
|
|
(83,346)
|
Non-operating
expenses
|
|
80,610
|
|
171,335
|
Depreciation
|
|
120,696
|
|
111,997
|
Impairment
loss
|
|
118,877
|
|
-
|
Amortization
|
|
68,305
|
|
83,366
|
Service revenue
amortization
|
|
52,389
|
|
54,456
|
Stock-based
compensation expense
|
|
8,142
|
|
(398)
|
Restructuring
expense
|
|
6,857
|
|
9,170
|
Transaction expense
(income), net
|
|
1
|
|
(58)
|
Non-cash purchase
accounting (excluding D&A)
|
|
(201)
|
|
(223)
|
Adjusted
EBITDA
|
|
415,957
|
|
452,223
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
(219,686)
|
|
266,451
|
Capital
expenditures
|
|
(158,739)
|
|
(145,841)
|
Free Cash
Flow
|
|
(378,425)
|
|
120,610
|
International Game
Technology PLC
|
Adjusted EBITDA
and Free Cash Flow
|
Reconciliations of
Non-GAAP Financial Measures
|
($
thousands)
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year
ended
|
|
|
December
31,
|
|
|
2018
|
|
2017
|
|
|
|
|
|
Net income
(loss)
|
|
114,647
|
|
(947,511)
|
Provision for
(benefit from) income taxes
|
|
189,401
|
|
(29,414)
|
Non-operating
expenses
|
|
342,943
|
|
925,833
|
Depreciation
|
|
432,899
|
|
401,085
|
Amortization
|
|
272,561
|
|
401,355
|
Service revenue
amortization
|
|
217,341
|
|
209,774
|
Impairment
loss
|
|
120,407
|
|
715,220
|
Stock-based
compensation expense
|
|
33,086
|
|
4,704
|
Restructuring
expense
|
|
14,781
|
|
39,876
|
Transaction expense
(income), net
|
|
51
|
|
(26,740)
|
Non-cash purchase
accounting (excluding D&A)
|
|
(867)
|
|
(736)
|
Bad debt
recovery
|
|
-
|
|
(17,858)
|
Adjusted
EBITDA
|
|
1,737,250
|
|
1,675,588
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
29,626
|
|
663,388
|
Capital
expenditures
|
|
(533,052)
|
|
(698,010)
|
Free Cash
Flow
|
|
(503,426)
|
|
(34,622)
|
International Game
Technology PLC
|
ASC 606 - Revenue
Recognition Impact
|
Consolidated
Statements of Operations
|
($ thousands,
except per share data)
|
Unaudited
|
|
|
|
|
|
|
|
|
|
Q4
2018
|
|
|
Under Prior
Accounting
|
|
Revenue
Recognition
Adjustment
|
|
As
Adjusted
|
|
|
|
|
|
|
|
Revenue
|
|
1,280,449
|
|
(14,317)
|
|
1,266,132
|
Operating
expenses
|
|
(1,247,420)
|
|
22,179
|
|
(1,225,241)
|
Provision for income
taxes
|
|
(28,703)
|
|
(1,634)
|
|
(30,337)
|
Net loss attributable
to IGT PLC
|
|
(108,227)
|
|
6,228
|
|
(101,999)
|
|
|
|
|
|
|
|
Net loss attributable
to IGT PLC per common share - basic
|
|
(0.53)
|
|
0.03
|
|
(0.50)
|
Net loss attributable
to IGT PLC per common share - diluted
|
|
(0.53)
|
|
0.03
|
|
(0.50)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 2018
YTD
|
|
|
Under Prior
Accounting
|
|
Revenue
Recognition
Adjustment
|
|
As
Adjusted
|
|
|
|
|
|
|
|
Revenue
|
|
4,896,300
|
|
(65,044)
|
|
4,831,256
|
Operating
expenses
|
|
(4,264,321)
|
|
80,056
|
|
(4,184,265)
|
Provision for income
taxes
|
|
(187,897)
|
|
(1,504)
|
|
(189,401)
|
Net loss attributable
to IGT PLC
|
|
(34,858)
|
|
13,508
|
|
(21,350)
|
|
|
|
|
|
|
|
Net loss attributable
to IGT PLC per common share - basic
|
|
(0.17)
|
|
0.07
|
|
(0.10)
|
Net loss attributable
to IGT PLC per common share - diluted
|
|
(0.17)
|
|
0.07
|
|
(0.10)
|
International Game Technology
PLC
|
Consolidated
Statement of Operations
|
Reconciliation of Non-GAAP Financial
Measures
|
($ and
shares in thousands, except per share data)
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter to
date
|
|
Adjustments
|
|
Quarter to
date
|
|
|
December
2018
|
|
|
|
|
|
Impairment/
|
|
Transaction
|
|
December
2018
|
|
|
As
|
|
Purchase
|
|
Foreign
|
|
Restructuring
|
|
and
Refinancing
|
|
As
|
|
|
Reported
|
|
Accounting
|
|
Exchange
|
|
Expense
|
|
Expense,
net
|
|
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
1,266,132
|
|
(183)
|
|
-
|
|
-
|
|
-
|
|
1,265,949
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services
|
|
638,105
|
|
(20,548)
|
|
-
|
|
-
|
|
-
|
|
617,557
|
Cost of product
sales
|
|
157,965
|
|
(3,955)
|
|
-
|
|
-
|
|
-
|
|
154,010
|
Selling,
general and administrative
|
|
238,654
|
|
(27,018)
|
|
-
|
|
-
|
|
-
|
|
211,636
|
Research and
development
|
|
64,782
|
|
(218)
|
|
-
|
|
-
|
|
-
|
|
64,564
|
Restructuring
expense
|
|
6,857
|
|
-
|
|
-
|
|
(6,857)
|
|
-
|
|
-
|
Impairment
loss
|
|
118,877
|
|
-
|
|
-
|
|
(118,877)
|
|
-
|
|
-
|
Transaction
expense, net
|
|
1
|
|
-
|
|
-
|
|
-
|
|
(1)
|
|
-
|
Total
operating expenses
|
|
1,225,241
|
|
(51,739)
|
|
-
|
|
(125,734)
|
|
(1)
|
|
1,047,767
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
40,891
|
|
51,556
|
|
-
|
|
125,734
|
|
1
|
|
218,182
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense, net
|
|
(103,666)
|
|
27
|
|
-
|
|
-
|
|
-
|
|
(103,639)
|
Foreign
exchange gain, net
|
|
32,096
|
|
-
|
|
(32,096)
|
|
-
|
|
-
|
|
-
|
Other expense,
net
|
|
(9,040)
|
|
(127)
|
|
-
|
|
-
|
|
5,004
|
|
(4,163)
|
Total
non-operating expenses
|
|
(80,610)
|
|
(100)
|
|
(32,096)
|
|
-
|
|
5,004
|
|
(107,802)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)
income before provision for income taxes
|
|
(39,719)
|
|
51,456
|
|
(32,096)
|
|
125,734
|
|
5,005
|
|
110,380
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
income taxes (a)
|
|
30,337
|
|
7,082
|
|
(10,124)
|
|
1,764
|
|
1,095
|
|
30,154
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
(70,056)
|
|
44,374
|
|
(21,972)
|
|
123,970
|
|
3,910
|
|
80,226
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net
income attributable to non-controlling interests
|
|
31,943
|
|
25
|
|
-
|
|
-
|
|
-
|
|
31,968
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income attributable to IGT PLC
|
|
(101,999)
|
|
44,349
|
|
(21,972)
|
|
123,970
|
|
3,910
|
|
48,258
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income per common share - diluted
|
|
(0.50)
|
|
|
|
|
|
|
|
|
|
0.24
|
Weighted-average shares - diluted
(b)
|
|
204,307
|
|
|
|
|
|
|
|
|
|
204,328
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Adjustments
for income taxes are determined based on the statutory tax rate in
effect in the respective jurisdiction where the adjustment
originated.
|
(b)
Weighted-average shares – diluted, as adjusted, include shares that
were excluded from the as reported computation, due to the net loss
as reported.
|
International Game Technology
PLC
|
Consolidated
Statement of Operations
|
Reconciliation of Non-GAAP Financial
Measures
|
($ and
shares in thousands, except per share data)
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year to
date
|
|
Adjustments
|
|
Year to
date
|
|
|
December
2018
|
|
|
|
|
|
Impairment/
|
|
Transaction
|
|
December
2018
|
|
|
As
|
|
Purchase
|
|
Foreign
|
|
Restructuring
|
|
and
Refinancing
|
|
As
|
|
|
Reported
|
|
Accounting
|
|
Exchange
|
|
Expense
|
|
Expense,
net
|
|
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
4,831,256
|
|
(723)
|
|
-
|
|
-
|
|
-
|
|
4,830,533
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services
|
|
2,450,658
|
|
(84,005)
|
|
-
|
|
-
|
|
-
|
|
2,366,653
|
Cost of product
sales
|
|
491,030
|
|
(15,690)
|
|
-
|
|
-
|
|
-
|
|
475,340
|
Selling,
general and administrative
|
|
844,059
|
|
(107,620)
|
|
-
|
|
-
|
|
-
|
|
736,439
|
Research and
development
|
|
263,279
|
|
(904)
|
|
-
|
|
-
|
|
-
|
|
262,375
|
Restructuring
expense
|
|
14,781
|
|
-
|
|
-
|
|
(14,781)
|
|
-
|
|
-
|
Impairment
loss
|
|
120,407
|
|
-
|
|
-
|
|
(120,407)
|
|
-
|
|
-
|
Transaction
expense, net
|
|
51
|
|
-
|
|
-
|
|
-
|
|
(51)
|
|
-
|
Total
operating expenses
|
|
4,184,265
|
|
(208,219)
|
|
-
|
|
(135,188)
|
|
(51)
|
|
3,840,807
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
646,991
|
|
207,496
|
|
-
|
|
135,188
|
|
51
|
|
989,726
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense, net
|
|
(417,387)
|
|
1,563
|
|
-
|
|
-
|
|
-
|
|
(415,824)
|
Foreign
exchange gain, net
|
|
129,051
|
|
-
|
|
(129,051)
|
|
-
|
|
-
|
|
-
|
Other expense,
net
|
|
(54,607)
|
|
(2,311)
|
|
-
|
|
-
|
|
54,463
|
|
(2,455)
|
Total
non-operating expenses
|
|
(342,943)
|
|
(748)
|
|
(129,051)
|
|
-
|
|
54,463
|
|
(418,279)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before provision for income taxes
|
|
304,048
|
|
206,748
|
|
(129,051)
|
|
135,188
|
|
54,514
|
|
571,447
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
income taxes (a)
|
|
189,401
|
|
44,183
|
|
(3,494)
|
|
3,593
|
|
1,097
|
|
234,780
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
114,647
|
|
162,565
|
|
(125,557)
|
|
131,595
|
|
53,417
|
|
336,667
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net
income attributable to non-controlling interests
|
|
135,997
|
|
102
|
|
-
|
|
-
|
|
-
|
|
136,099
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income attributable to IGT PLC
|
|
(21,350)
|
|
162,463
|
|
(125,557)
|
|
131,595
|
|
53,417
|
|
200,568
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income per common share - diluted
|
|
(0.10)
|
|
|
|
|
|
|
|
|
|
0.98
|
Weighted-average shares - diluted
(b)
|
|
204,083
|
|
|
|
|
|
|
|
|
|
204,363
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Adjustments
for income taxes are determined based on the statutory tax rate in
effect in the respective jurisdiction where the adjustment
originated.
|
(b)
Weighted-average shares – diluted, as adjusted, include shares that
were excluded from the as reported computation, due to the net loss
as reported.
|
International Game Technology
PLC
|
Consolidated
Statement of Operations
|
Reconciliation of Non-GAAP Financial
Measures
|
($ and
shares in thousands, except per share data)
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter to
date
|
|
Adjustments
|
|
Quarter to
date
|
|
|
December
2017
|
|
|
|
|
|
|
|
|
|
December
2017
|
|
|
As
|
|
Purchase
|
|
Foreign
|
|
Restructuring
|
|
Transaction
|
|
As
|
|
|
Reported
|
|
Accounting
|
|
Exchange
|
|
Expense
|
|
Expense,
net
|
|
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
1,345,670
|
|
(182)
|
|
-
|
|
-
|
|
-
|
|
1,345,488
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services
|
|
686,802
|
|
(27,563)
|
|
-
|
|
-
|
|
-
|
|
659,239
|
Cost of product
sales
|
|
176,375
|
|
(10,454)
|
|
-
|
|
-
|
|
-
|
|
165,921
|
Selling,
general and administrative
|
|
208,522
|
|
(27,183)
|
|
-
|
|
-
|
|
-
|
|
181,339
|
Research and
development
|
|
70,946
|
|
(230)
|
|
-
|
|
-
|
|
-
|
|
70,716
|
Restructuring
expense
|
|
9,170
|
|
-
|
|
-
|
|
(9,170)
|
|
-
|
|
-
|
Transaction
income, net
|
|
(58)
|
|
-
|
|
-
|
|
-
|
|
58
|
|
-
|
Total
operating expenses
|
|
1,151,757
|
|
(65,430)
|
|
-
|
|
(9,170)
|
|
58
|
|
1,077,215
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
193,913
|
|
65,248
|
|
-
|
|
9,170
|
|
(58)
|
|
268,273
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense, net
|
|
(111,961)
|
|
513
|
|
-
|
|
-
|
|
-
|
|
(111,448)
|
Foreign
exchange loss, net
|
|
(59,228)
|
|
-
|
|
59,228
|
|
-
|
|
-
|
|
-
|
Other expense,
net
|
|
(146)
|
|
1
|
|
-
|
|
-
|
|
(8)
|
|
(153)
|
Total
non-operating expenses
|
|
(171,335)
|
|
514
|
|
59,228
|
|
-
|
|
(8)
|
|
(111,601)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before (benefit from) provision for income
taxes
|
|
22,578
|
|
65,762
|
|
59,228
|
|
9,170
|
|
(66)
|
|
156,672
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Benefit from)
provision for income taxes (a) (b) (c)
|
|
(83,346)
|
|
267,714
|
|
(60,593)
|
|
2,887
|
|
(2)
|
|
126,660
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
105,924
|
|
(201,952)
|
|
119,821
|
|
6,283
|
|
(64)
|
|
30,012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net
income attributable to non-controlling interests
|
|
26,195
|
|
25
|
|
-
|
|
-
|
|
-
|
|
26,220
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to IGT PLC
|
|
79,729
|
|
(201,977)
|
|
119,821
|
|
6,283
|
|
(64)
|
|
3,792
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
per common share - diluted
|
|
0.39
|
|
|
|
|
|
|
|
|
|
0.02
|
Weighted-average shares -
diluted
|
|
204,104
|
|
|
|
|
|
|
|
|
|
204,104
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Adjustments for
income taxes are determined based on the statutory tax rate in
effect in the respective jurisdiction where the adjustment
originated.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) As Reported
includes a net $103.6 million one-time, non-cash income tax benefit
related to the Tax Cuts and Jobs Act of 2017 (the "Tax Act")
composed of (i) a $64.4 million non-cash income tax expense for the
restatement of deferred tax assets and a $239.2 million non-cash
income tax benefit for the restatement of deferred tax liabilities
related to Purchase Accounting, both driven by the decrease in the
income tax rate from 35% to 21% and (ii) a $71.2 million non-cash
income tax expense in 2017 associated with unremitted foreign
earnings. Separate from the Tax Act, As Reported includes a $73.3
million one-time, non-cash tax expense for the write-off of a
deferred tax asset related primarily to unrealized foreign exchange
losses.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c) As Adjusted
excludes the $239.2 million non-cash income tax benefit for the
restatement of deferred tax liabilities related to Purchase
Accounting and the $73.3 million one-time, non-cash tax expense for
the write-of of a deferred tax asset related primarily to
unrealized foreign exchange losses.
|
International Game Technology
PLC
|
Consolidated
Statement of Operations
|
Reconciliation of Non-GAAP Financial
Measures
|
($ and
shares in thousands, except per share data)
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year to
date
|
|
Adjustments
|
|
Year to
date
|
|
|
December
2017
|
|
|
|
|
|
Impairment/
|
|
Transaction
|
|
December
2017
|
|
|
As
|
|
Purchase
|
|
Foreign
|
|
Restructuring
|
|
and
Refinancing
|
|
As
|
|
|
Reported
|
|
Accounting
|
|
Exchange
|
|
Expense
|
|
Expense,
net
|
|
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
4,938,959
|
|
(722)
|
|
-
|
|
-
|
|
-
|
|
4,938,237
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services
|
|
2,553,083
|
|
(145,221)
|
|
-
|
|
-
|
|
-
|
|
2,407,862
|
Cost of product
sales
|
|
579,431
|
|
(87,715)
|
|
-
|
|
-
|
|
-
|
|
491,716
|
Selling,
general and administrative
|
|
816,093
|
|
(117,460)
|
|
-
|
|
-
|
|
-
|
|
698,633
|
Research and
development
|
|
313,088
|
|
(656)
|
|
-
|
|
-
|
|
-
|
|
312,432
|
Restructuring
expense
|
|
39,876
|
|
-
|
|
-
|
|
(39,876)
|
|
-
|
|
-
|
Impairment
loss
|
|
715,220
|
|
-
|
|
-
|
|
(715,220)
|
|
-
|
|
-
|
Transaction
income, net
|
|
(26,740)
|
|
-
|
|
-
|
|
-
|
|
26,740
|
|
-
|
Total
operating expenses
|
|
4,990,051
|
|
(351,052)
|
|
-
|
|
(755,096)
|
|
26,740
|
|
3,910,643
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
(loss) income
|
|
(51,092)
|
|
350,330
|
|
-
|
|
755,096
|
|
(26,740)
|
|
1,027,594
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense, net
|
|
(448,463)
|
|
2,928
|
|
-
|
|
-
|
|
-
|
|
(445,535)
|
Foreign
exchange loss, net
|
|
(443,977)
|
|
-
|
|
443,977
|
|
-
|
|
-
|
|
-
|
Other (expense)
income, net
|
|
(33,393)
|
|
1,568
|
|
-
|
|
-
|
|
35,420
|
|
3,595
|
Total
non-operating expenses
|
|
(925,833)
|
|
4,496
|
|
443,977
|
|
-
|
|
35,420
|
|
(441,940)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)
income before (benefit from) provision for income
taxes
|
|
(976,925)
|
|
354,826
|
|
443,977
|
|
755,096
|
|
8,680
|
|
585,654
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Benefit from)
provision for income taxes (a) (b) (c)
|
|
(29,414)
|
|
368,780
|
|
26,559
|
|
12,019
|
|
(88,161)
|
|
289,783
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
(947,511)
|
|
(13,954)
|
|
417,418
|
|
743,077
|
|
96,841
|
|
295,871
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net
income attributable to non-controlling interests
|
|
121,065
|
|
102
|
|
-
|
|
-
|
|
-
|
|
121,167
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income attributable to IGT PLC
|
|
(1,068,576)
|
|
(14,056)
|
|
417,418
|
|
743,077
|
|
96,841
|
|
174,704
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income per common share - diluted
|
|
(5.26)
|
|
|
|
|
|
|
|
|
|
0.86
|
Weighted-average shares - diluted
(d)
|
|
203,130
|
|
|
|
|
|
|
|
|
|
203,504
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Adjustments for
income taxes are determined based on the statutory tax rate in
effect in the respective jurisdiction where the adjustment
originated.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) As Reported
includes a net $103.6 million one-time, non-cash income tax benefit
related to the Tax Cuts and Jobs Act of 2017 (the "Tax Act")
composed of (i) a $64.4 million non-cash income tax expense for the
restatement of deferred tax assets and a $239.2 million non-cash
income tax benefit for the restatement of deferred tax liabilities
related to Purchase Accounting, both driven by the decrease in the
income tax rate from 35% to 21% and (ii) a $71.2 million non-cash
income tax expense in 2017 associated with unremitted foreign
earnings. Separate from the Tax Act, As Reported includes a $73.3
million one-time, non-cash tax expense for the write-off of a
deferred tax asset related primarily to unrealized foreign exchange
losses.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c) As Adjusted
excludes the $239.2 million non-cash income tax benefit for the
restatement of deferred tax liabilities related to Purchase
Accounting and the $73.3 million one-time, non-cash tax expense for
the write-of of a deferred tax asset related primarily to
unrealized foreign exchange losses.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(d) Weighted-average
shares – diluted, as adjusted, include shares that were excluded
from the as reported computation, due to the net loss as reported.
|
INTERNATIONAL GAME
TECHNOLOGY PLC
|
|
|
|
Select Financial
Data
|
|
|
Constant
|
|
Key Performance
Indicators
|
|
|
%
|
Period Ended
December 31
|
Q4
'18
|
Q4
'17
|
FX
|
|
Period Ended
December 31
|
Q4'18
|
Q4'17
|
Change
|
Gaming
|
|
Total
Revenue
|
632
|
664
|
-2%
|
|
Installed base
(end of period)
|
|
|
|
|
Gaming
Services
|
413
|
452
|
-6%
|
|
Casino
|
33,744
|
35,625
|
-5.3%
|
|
|
Terminal
|
312
|
331
|
-3%
|
|
VLT -
Government Sponsored (ex-Italy)
|
19,208
|
18,019
|
6.6%
|
|
|
Social
(DDI)
|
0
|
0
|
0%
|
|
VLT -
Italy Supplier (B2B)
|
8,058
|
8,592
|
-6.2%
|
|
|
Other
|
100
|
121
|
-15%
|
|
Total
installed base
|
61,010
|
62,236
|
-2.0%
|
|
Product
Sales
|
220
|
212
|
6%
|
|
Yield
|
$26.90
|
$27.49
|
-2.1%
|
|
|
Terminal
|
159
|
146
|
12%
|
|
(average revenue per
unit per day)
|
|
|
|
|
|
Other
|
60
|
66
|
-7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional Italian Network Details:
|
|
|
|
Lottery
|
|
Total
Revenue
|
547
|
559
|
0%
|
|
VLT -
Operator (B2C)
|
10,991
|
10,985
|
0.1%
|
|
Lottery
Services
|
530
|
511
|
6%
|
|
AWP
|
42,928
|
56,590
|
-24.1%
|
|
|
FMC
|
497
|
466
|
9%
|
|
|
|
|
|
|
|
LMA
|
29
|
36
|
-19%
|
|
Machine units
shipped
|
|
|
|
|
|
Other
Services
|
3
|
9
|
-79%
|
|
New/Expansion
|
775
|
1,349
|
-42.6%
|
|
Product
Sales
|
17
|
48
|
-63%
|
|
Replacement
|
11,215
|
9,511
|
17.9%
|
|
|
Terminal
|
(0)
|
2
|
NM
|
|
Total
machines shipped
|
11,990
|
10,860
|
10.4%
|
|
|
Systems/Other
|
17
|
47
|
-62%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global lottery
same-store revenue growth
|
|
|
Other
|
|
Total
Revenue
|
87
|
122
|
-26%
|
|
Instants
& draw games
|
|
|
4.7%
|
|
Service
Revenue
|
87
|
110
|
-18%
|
|
Multistate Jackpots
|
|
|
122.7%
|
|
Product
Sales
|
0
|
12
|
NM
|
|
Total
lottery same-store revenue growth (ex-Italy)
|
16.9%
|
|
|
|
|
|
|
|
|
Italy
lottery revenue growth
|
|
|
6.0%
|
Consolidated
|
|
Revenue
|
1,266
|
1,346
|
-4%
|
|
|
|
|
|
|
Operating
Income:
|
|
|
|
|
|
|
|
|
|
|
Segment
Total
|
277
|
322
|
-12%
|
|
|
|
|
|
|
|
Purchase
Accounting
|
(170)
|
(65)
|
-160%
|
|
|
|
|
|
|
|
Corporate
Support
|
(67)
|
(63)
|
-10%
|
|
|
|
|
|
|
|
Total
|
41
|
194
|
-76%
|
|
|
|
|
|
Full Year Comparisons by Segment:
NORTH AMERICA
GAMING & INTERACTIVE
|
|
|
|
Select Financial
Data
|
|
|
Constant
|
|
Key Performance
Indicators
|
|
|
%
|
Period Ended
December 31
|
2018
|
2017
|
FX
|
|
Period Ended
December 31
|
2018
|
2017
|
Change
|
Gaming
|
|
Total
Revenue
|
1,001
|
1,158
|
-13%
|
|
Installed base
(end of period)
|
|
|
|
|
Gaming
Services
|
622
|
781
|
-20%
|
|
Casino
|
23,108
|
22,807
|
1.3%
|
|
|
Terminal
|
420
|
488
|
-14%
|
|
|
|
|
|
|
|
Social
(DDI)
|
0
|
111
|
-100%
|
|
Machine units
shipped
|
|
|
|
|
|
Other
|
202
|
181
|
11%
|
|
New/Expansion
|
3,917
|
4,099
|
-4.4%
|
|
Product
Sales
|
379
|
377
|
1%
|
|
Replacement
|
14,922
|
14,030
|
6.4%
|
|
|
Terminal
|
262
|
244
|
8%
|
|
Total
machines shipped
|
18,839
|
18,129
|
3.9%
|
|
|
Other
|
117
|
133
|
-12%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
Total
Revenue
|
2
|
(0)
|
NM
|
|
|
|
|
|
|
Service
Revenue
|
2
|
(0)
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Revenue
|
1,003
|
1,158
|
-13%
|
|
|
|
|
|
|
Operating
Income
|
219
|
279
|
-21%
|
|
|
|
|
|
NORTH AMERICA
LOTTERY
|
|
|
|
|
|
|
|
|
Select Financial
Data
|
|
|
Constant
|
|
Key Performance
Indicators
|
|
|
%
|
Period Ended
December 31
|
2018
|
2017
|
FX
|
|
Period Ended
December 31
|
2018
|
2017
|
Change
|
Gaming
|
|
Total
Revenue
|
154
|
162
|
-5%
|
|
Installed base
(end of period)
|
|
|
|
|
Gaming
Services
|
153
|
150
|
2%
|
|
VLT - Government Sponsored
|
14,939
|
15,294
|
-2.3%
|
|
|
Terminal
|
100
|
99
|
0%
|
|
|
|
|
|
|
|
Other
|
54
|
50
|
7%
|
|
Lottery same-store
revenue growth
|
|
|
|
|
Product
Sales
|
0
|
13
|
-97%
|
|
Instants
& draw games
|
|
|
5.0%
|
|
|
|
|
|
|
|
|
Multistate Jackpots
|
|
|
34.0%
|
Lottery
|
|
Total
Revenue
|
1,038
|
1,023
|
1%
|
|
Total
lottery same-store revenue growth
|
|
|
8.9%
|
|
Lottery
Services
|
958
|
943
|
2%
|
|
|
|
|
|
|
|
FMC
|
697
|
660
|
6%
|
|
|
|
|
|
|
|
LMA
|
129
|
157
|
-18%
|
|
|
|
|
|
|
|
Other
Services
|
131
|
126
|
4%
|
|
|
|
|
|
|
Product
Sales
|
80
|
80
|
1%
|
|
|
|
|
|
|
|
Terminal
|
24
|
4
|
NM
|
|
|
|
|
|
|
|
Systems/Other
|
57
|
76
|
-25%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Revenue
|
1,192
|
1,185
|
1%
|
|
|
|
|
|
|
Operating
Income
|
297
|
289
|
3%
|
|
|
|
|
|
INTERNATIONAL
|
|
|
|
|
|
|
|
|
Select Financial
Data
|
|
|
Constant
|
|
Key Performance
Indicators
|
|
|
%
|
Period Ended
December 31
|
2018
|
2017
|
FX
|
|
Period Ended
December 31
|
2018
|
2017
|
Change
|
Gaming
|
|
Total
Revenue
|
417
|
472
|
-10%
|
|
Installed base
(end of period)
|
|
|
|
|
Gaming
Services
|
140
|
197
|
-27%
|
|
Casino
|
10,636
|
12,818
|
-17.0%
|
|
|
Terminal
|
54
|
51
|
11%
|
|
VLT - Government Sponsored
|
4,269
|
2,725
|
56.7%
|
|
|
Other
|
86
|
146
|
-41%
|
|
Total
installed base
|
14,905
|
15,543
|
-4.1%
|
|
Product
Sales
|
277
|
275
|
2%
|
|
|
|
|
|
|
|
Terminal
|
193
|
200
|
-2%
|
|
Machine units
shipped
|
|
|
|
|
|
Other
|
84
|
75
|
12%
|
|
New/Expansion
|
1,880
|
1,756
|
7.1%
|
|
|
|
|
|
|
|
|
Replacement
|
11,820
|
12,218
|
-3.3%
|
Lottery
|
|
Total
Revenue
|
329
|
323
|
1%
|
|
Total
machines shipped
|
13,700
|
13,974
|
-2.0%
|
|
Lottery
Services
|
283
|
288
|
-2%
|
|
|
|
|
|
|
|
FMC
|
222
|
206
|
7%
|
|
Lottery same-store
revenue growth
|
|
|
|
|
|
Other
Services
|
61
|
81
|
-25%
|
|
Instants
& draw games
|
|
|
3.6%
|
|
Product
Sales
|
46
|
35
|
33%
|
|
Multistate Jackpots
|
|
|
-1.4%
|
|
|
Systems/Other
|
46
|
35
|
33%
|
|
Total
lottery same-store revenue growth
|
|
|
3.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
Total
Revenue
|
74
|
94
|
-21%
|
|
|
|
|
|
|
Service
Revenue
|
73
|
72
|
1%
|
|
|
|
|
|
|
Product
Sales
|
2
|
22
|
-93%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Revenue
|
820
|
889
|
-7%
|
|
|
|
|
|
|
Operating
Income
|
142
|
164
|
-13%
|
|
|
|
|
|
ITALY
|
|
|
|
|
|
|
|
|
|
Select Financial
Data
|
|
|
Constant
|
|
Key Performance
Indicators
|
|
|
%
|
Period Ended
December 31
|
2018
|
2017
|
FX
|
|
Period Ended
December 31
|
2018
|
2017
|
Change
|
Gaming
|
|
Total
Revenue
|
734
|
707
|
0%
|
|
(In € millions,
except machines)
|
|
|
|
|
Gaming
Services
|
733
|
706
|
0%
|
|
Lottery
|
|
|
|
|
|
Terminal
|
665
|
644
|
0%
|
|
Lotto
wagers
|
8,017
|
7,481
|
7.2%
|
|
|
Other
|
68
|
62
|
6%
|
|
10eLotto
|
5,728
|
5,160
|
11.0%
|
|
Product
Sales
|
1
|
1
|
-21%
|
|
Core
|
1,877
|
2,011
|
-6.7%
|
|
|
|
|
|
|
|
|
Late
Numbers
|
227
|
310
|
-26.9%
|
Lottery
|
|
Total
Revenue
|
793
|
721
|
6%
|
|
MillionDAY
|
185
|
-
|
NM
|
|
Lottery
Services
|
793
|
721
|
6%
|
|
|
|
|
|
|
|
FMC
|
991
|
912
|
5%
|
|
Scratch & Win
Wagers
|
9,207
|
9,065
|
1.6%
|
|
|
Other
Services
|
(198)
|
(191)
|
0%
|
|
|
|
|
|
|
Product
Sales
|
0
|
0
|
0%
|
|
Italy lottery
revenue growth
|
|
|
6.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
Total
Revenue
|
288
|
277
|
0%
|
|
Gaming
|
|
|
|
|
Service
Revenue
|
288
|
277
|
0%
|
|
Installed base
(end of period)
|
|
|
|
|
Product
Sales
|
0
|
0
|
0%
|
|
VLT -
Operator (B2C)
|
10,991
|
10,985
|
0.1%
|
|
|
|
|
|
|
|
|
VLT -
Supplier (B2B)
|
8,058
|
8,592
|
-6.2%
|
Total
|
|
Revenue
|
1,815
|
1,705
|
3%
|
|
AWP
|
42,928
|
56,590
|
-24.1%
|
|
Operating
Income
|
541
|
479
|
8%
|
|
Total
Installed Base
|
61,977
|
76,167
|
-18.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wagers
|
|
|
|
|
|
|
|
|
|
|
|
VLT -
Operator (B2C)
|
5,838
|
5,543
|
5.3%
|
|
|
|
|
|
|
|
|
AWP
|
3,717
|
3,949
|
-5.9%
|
|
|
|
|
|
|
|
|
Interactive Wagers (Gaming)
|
1,890
|
1,745
|
8.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
Sports
Betting Wagers (1)
|
988
|
959
|
3.1%
|
|
|
|
|
|
|
|
|
Sports
Betting Payout (%) (1)
|
82.4%
|
82.7%
|
-0.3
pp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)Includes Virtual Wagers and Pools
& Horses
|
|
INTERNATIONAL GAME
TECHNOLOGY PLC
|
|
|
|
Select Financial
Data
|
|
|
Constant
|
|
Key Performance
Indicators
|
|
|
%
|
Period Ended
December 31
|
2018
|
2017
|
FX
|
|
Period Ended
December 31
|
2018
|
2017
|
Change
|
Gaming
|
|
Total
Revenue
|
2,306
|
2,501
|
-8%
|
|
Installed base
(end of period)
|
|
|
|
|
Gaming
Services
|
1,649
|
1,836
|
-11%
|
|
Casino
|
33,744
|
35,625
|
-5.3%
|
|
|
Terminal
|
1,239
|
1,284
|
-5%
|
|
VLT -
Government Sponsored (ex-Italy)
|
19,208
|
18,019
|
6.6%
|
|
|
Social
(DDI)
|
0
|
111
|
-100%
|
|
VLT -
Italy Supplier (B2B)
|
8,058
|
8,592
|
-6.2%
|
|
|
Other
|
410
|
440
|
-7%
|
|
Total
installed base
|
61,010
|
62,236
|
-2.0%
|
|
Product
Sales
|
657
|
665
|
-1%
|
|
Yield
|
$ 27.72
|
$ 29.26
|
-5.3%
|
|
|
Terminal
|
455
|
444
|
3%
|
|
(average revenue per
unit per day)
|
|
|
|
|
|
Other
|
202
|
222
|
-9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional Italian Network Details:
|
|
|
|
Lottery
|
|
Total
Revenue
|
2,161
|
2,067
|
3%
|
|
VLT -
Operator (B2C)
|
10,991
|
10,985
|
0.1%
|
|
Lottery
Services
|
2,034
|
1,952
|
3%
|
|
AWP
|
42,928
|
56,590
|
-24.1%
|
|
|
FMC
|
1,910
|
1,778
|
5%
|
|
|
|
|
|
|
|
LMA
|
129
|
157
|
-18%
|
|
Machine units
shipped
|
|
|
|
|
|
Other
Services
|
(4)
|
17
|
-80%
|
|
New/Expansion
|
5,797
|
5,855
|
-1.0%
|
|
Product
Sales
|
127
|
115
|
11%
|
|
Replacement
|
26,742
|
26,248
|
1.9%
|
|
|
Terminal
|
25
|
4
|
NM
|
|
Total
machines shipped
|
32,539
|
32,103
|
1.4%
|
|
|
Systems/Other
|
102
|
111
|
-8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global lottery
same-store revenue growth
|
|
|
|
Other
|
|
Total
Revenue
|
364
|
371
|
-5%
|
|
Instants
& draw games
|
|
|
4.8%
|
|
Service
Revenue
|
363
|
349
|
1%
|
|
Multistate Jackpots
|
|
|
28.5%
|
|
Product
Sales
|
2
|
22
|
-93%
|
|
Total
lottery same-store revenue growth (ex-Italy)
|
|
7.6%
|
|
|
|
|
|
|
|
|
Italy
lottery revenue growth
|
|
|
6.0%
|
Consolidated
|
|
Revenue
|
4,831
|
4,939
|
-3%
|
|
|
|
|
|
|
Operating
Income:
|
|
|
|
|
|
|
|
|
|
|
Segment
Total
|
1,199
|
1,210
|
-3%
|
|
|
|
|
|
|
|
Purchase
Accounting
|
(325)
|
(1,064)
|
69%
|
|
|
|
|
|
|
|
Corporate
Support
|
(226)
|
(197)
|
-14%
|
|
|
|
|
|
|
|
Total
|
647
|
(51)
|
|
|
|
|
|
|
View original content to download
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SOURCE International Game Technology PLC