LONDON, Nov. 14, 2019 /PRNewswire/ -- International
Game Technology PLC ("IGT") (NYSE:IGT) today reported financial
results for the third quarter ended September 30, 2019. Today, at 8:00 a.m. EST, management will host a conference
call and webcast to present the results; access details are
provided below.
"Our core businesses achieved significant momentum in the third
quarter and year-to-date periods," said Marco Sala, CEO of IGT. "Key performance
indicators were solid in the quarter – gaming machine unit
shipments increased 44%, while same-store revenue for draw games
and instants rose 4%. Our leading positions are rooted in our focus
on player-driven performance, which was on display at recent
lottery and gaming trade shows and should sustain our momentum
going forward."
"IGT has generated free cash flow in excess of $450 million in the first nine months," said
Alberto Fornaro, CFO of IGT.
"This confirms the inflection we expected to achieve this year. We
are well positioned to achieve our 2019 strategic and financial
goals."
Overview of Consolidated Third Quarter 2019 Results
|
|
|
|
Constant
|
|
Quarter
Ended
|
Y/Y
|
Currency
|
|
September
30,
|
Change
|
Change
|
|
2019
|
2018
|
(%)
|
(%)
|
(In $ millions,
unless otherwise noted)
|
|
|
|
|
Revenue
|
1,153
|
1,156
|
0%
|
3%
|
Operating
income
|
154
|
200
|
-23%
|
-19%
|
Net income/(loss) per
diluted share
|
$0.51
|
$0.11
|
NM
|
|
Adjusted
EBITDA
|
407
|
443
|
- 8%
|
-5%
|
Adjusted operating
income
|
221
|
257
|
-14%
|
-11%
|
Adjusted net income
per diluted share
|
$0.21
|
$0.31
|
-32%
|
|
Net debt
|
7,354
|
7,570
|
-3%
|
|
|
Note: Adjusted
EBITDA, adjusted operating income, and adjusted net income per
diluted share are non-GAAP financial measures. Reconciliations of
non-GAAP financial measures to the most directly comparable GAAP
financial measures are provided at the end of this news
release.
|
Consolidated revenue of $1.15
billion, up 3% at constant currency
- Sharp growth in global gaming product sales
- Overcame significant Finland
multi-year software sale in prior-year quarter and impact of higher
machine gaming taxes in Italy
At constant currency, operating income down 19% to $154 million; adjusted operating income down 11%
to $221 million
- Non-cash write-down of pre-paid social gaming-related
license
Adjusted EBITDA declined 5% at constant currency to $407 million
- Differential profit flow-through on revenue mix, primarily due
to high-margin Finland software
transaction in prior year
- Higher R&D and SG&A expenses, primarily due to
timing
Interest expense, net was $103
million, down 1% from the prior-year quarter
Income taxes of $45 million;
adjusted taxes of $51 million, down
from $60 million on lower pre-tax
income
Net income attributable to IGT was $104
million; adjusted net income attributable to IGT was
$43 million, down from $64 million in the prior year
Net income per diluted share of $0.51; adjusted net income per diluted share of
$0.21 versus $0.31 in the prior year
Net debt of $7.35 billion, down 5%
from $7.76 billion at December 31, 2018
Operating Segment Review
North America Gaming & Interactive
Select Financial
Data
|
|
|
Constant
|
|
Key Performance
Indicators
|
|
|
%
|
Period Ended
September 30
|
Q3
'19
|
Q3
'18
|
FX
|
|
Period Ended
September 30
|
Q3
'19
|
Q3
'18
|
Change
|
Gaming
|
|
Total
revenue
|
253
|
231
|
10%
|
|
Installed base
units (end of period)
|
|
|
|
|
Gaming
services
|
146
|
152
|
-4%
|
|
Casino
|
21,071
|
23,357
|
-9.8%
|
|
|
Terminal
|
103
|
106
|
-2%
|
|
|
|
|
|
|
|
Other
|
43
|
46
|
-7%
|
|
Machine units
shipped
|
|
|
|
|
Product
sales
|
107
|
79
|
36%
|
|
New/expansion
|
791
|
843
|
-6.2%
|
|
|
Terminal
|
74
|
54
|
37%
|
|
Replacement
|
4,150
|
2,998
|
38.4%
|
|
|
Other
|
33
|
25
|
34%
|
|
Total
machines shipped
|
4,941
|
3,841
|
28.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
Total
revenue
|
4
|
0
|
NM
|
|
|
|
|
|
|
Service
revenue
|
4
|
0
|
NM
|
|
|
|
|
|
|
|
|
|
|
Note: Oklahoma
agreement executed in Q2'19 reduces installed base by 2,223 units;
no impact to units shipped
|
Total
|
|
Revenue
|
257
|
231
|
12%
|
|
|
|
|
|
|
Operating
income
|
62
|
45
|
34%
|
|
|
|
|
|
Revenue of $257 million, up
11%
- Product sales revenue of $107
million, up 36% over the prior year
-
- Terminal product sales rose 37%
-
- Significant increase in replacement units driven by strength of
product offering; higher average selling price
- Lower new/expansion activity compared to the prior year
- Other product sales up 34% on high-margin, multi-year
technology license
- Gaming service revenue of $146
million, compared to $152
million in the prior-year period
-
- Installed base stable year-over-year and sequentially on an
underlying basis; yields higher
- Impact of multi-year poker contracts executed in prior
periods
- Other service revenue driven by contribution from sports
betting
Operating income of $62 million,
up 38% compared to the prior year
- Increased unit shipments
- High-margin, multi-year technology license
North America Lottery
Select Financial
Data
|
|
|
Constant
|
|
Key Performance
Indicators
|
|
|
%
|
Period Ended
September 30
|
Q3
'19
|
Q3
'18
|
FX
|
|
Period Ended
September 30
|
Q3
'19
|
Q3
'18
|
Change
|
Gaming
|
|
Total
revenue
|
38
|
37
|
1%
|
|
Installed base
units (end of period)
|
|
|
|
|
Gaming
services
|
37
|
37
|
1%
|
|
VLT - Government sponsored
|
14,294
|
14,965
|
-4.5%
|
|
|
Terminal
|
24
|
25
|
-4%
|
|
|
|
|
|
|
|
Other
|
13
|
12
|
11%
|
|
Lottery same-store
revenue growth
|
|
|
|
|
Product
sales
|
0
|
0
|
0%
|
|
Instant
ticket & draw games
|
|
|
3.9%
|
|
|
|
|
|
|
|
|
Multistate jackpots
|
|
|
-28.2%
|
Lottery
|
|
Total
revenue
|
242
|
242
|
0%
|
|
Total
lottery same-store revenue growth
|
|
|
0.0%
|
|
Lottery
services
|
215
|
225
|
-4%
|
|
|
|
|
|
|
|
FMC
|
193
|
200
|
-4%
|
|
|
|
|
|
|
|
Instant ticket
& draw games
|
157
|
164
|
-4%
|
|
|
|
|
|
|
|
Other
services
|
36
|
36
|
0%
|
|
|
|
|
|
|
|
LMA
|
23
|
25
|
-10%
|
|
|
|
|
|
|
Product
sales
|
26
|
17
|
54%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
Total
revenue
|
1
|
0
|
NM
|
|
|
|
|
|
|
Service
revenue
|
1
|
0
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Revenue
|
281
|
279
|
1%
|
|
|
|
|
|
|
Operating
income
|
51
|
60
|
-15%
|
|
|
|
|
|
Revenue of $281 million,
essentially in line with the prior year
- Lottery service revenue of $215
million, compared to $225
million in the prior year
-
- Instant ticket & draw game same-store revenue up 3.9%
driven by broad-based strength across jurisdictions
- Lower multistate jackpot activity
- Impact of Illinois contract
conclusion
- Lottery product sales revenue up on strong demand for
self-service vending machines
- Gaming service revenue stable
Operating income of $51 million,
down from $60 million
- Impact of Illinois and lower
jackpot activity (including effect on LMAs)
- Expenses related to Rhode
Island contract extension
International
Select Financial
Data
|
|
|
Constant
|
|
Key Performance
Indicators
|
|
|
%
|
Period Ended
September 30
|
Q3
'19
|
Q3
'18
|
FX
|
|
Period Ended
September 30
|
Q3
'19
|
Q3
'18
|
Change
|
Gaming
|
|
Total
revenue
|
118
|
98
|
27%
|
|
Installed base
units (end of period)
|
|
|
|
|
Gaming
services
|
27
|
33
|
-12%
|
|
Casino
|
9,877
|
12,332
|
-19.9%
|
|
|
Terminal
|
11
|
13
|
-13%
|
|
VLT - Government sponsored
|
4,455
|
3,675
|
21.2%
|
|
|
Other
|
16
|
19
|
-11%
|
|
Total
installed base units
|
14,332
|
16,007
|
-10.5%
|
|
Product
sales
|
91
|
65
|
46%
|
|
|
|
|
|
|
|
Terminal
|
65
|
47
|
42%
|
|
Machine units
shipped
|
|
|
|
|
|
Other
|
26
|
18
|
57%
|
|
New/expansion
|
210
|
529
|
-60.3%
|
|
|
|
|
|
|
|
|
Replacement
|
5,034
|
2,681
|
87.8%
|
Lottery
|
|
Total
revenue
|
79
|
100
|
-19%
|
|
Total
machines shipped
|
5,244
|
3,210
|
63.4%
|
|
Lottery
services
|
73
|
69
|
9%
|
|
|
|
|
|
|
|
FMC
|
73
|
69
|
9%
|
|
Lottery same-store
revenue growth
|
|
|
|
|
|
Instant ticket
& draw games
|
55
|
54
|
7%
|
|
Instant
ticket & draw games
|
|
|
5.0%
|
|
|
Other
services
|
17
|
15
|
17%
|
|
Multistate jackpots
|
|
|
29.3%
|
|
Product
sales
|
6
|
31
|
-80%
|
|
Total
lottery same-store revenue growth
|
|
|
6.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
Total
revenue
|
16
|
18
|
0%
|
|
|
|
|
|
|
Service
revenue
|
16
|
17
|
2%
|
|
|
|
|
|
|
Product
sales
|
0
|
0
|
0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Revenue
|
213
|
216
|
3%
|
|
|
|
|
|
|
Operating
income
|
30
|
56
|
-40%
|
|
|
|
|
|
Revenue of $213 million, up 3% at
constant currency
- Gaming product sales revenue of $91
million, up 46% at constant currency
-
- Broad-based geographic demand drives significant increase in
units shipped, including 1,547 Sweden VLTs
- Other product sales up on higher systems revenue
- Gaming service revenue was $27
million
-
- Year-over-year and sequential declines in the installed base
due to conversions in prior periods
- Lower interactive performance
- Other revenue stable
- Lottery service revenue of $73
million, up 9% at constant currency, fueled by 6.5%
same-store revenue growth
- Lottery product sales reflect significant Finland software sale in the prior year
Operating income of $30 million
compared to $56 million in the prior
year
- Differential profit flow-through of revenue mix (high-margin
Finland software sale in prior
year)
Italy
Select Financial
Data
|
|
|
Constant
|
|
Key Performance
Indicators
|
|
|
%
|
Period Ended
September 30
|
Q3
'19
|
Q3
'18
|
FX
|
|
Period Ended
September 30
|
Q3
'19
|
Q3
'18
|
Change
|
Gaming
|
|
Total
revenue
|
154
|
175
|
-7%
|
|
(In € millions,
except machines)
|
|
|
|
|
Gaming
services
|
154
|
175
|
-7%
|
|
Lottery
|
|
|
|
|
|
Terminal
|
138
|
159
|
-8%
|
|
Lotto
wagers
|
1,882
|
1,913
|
-1.6%
|
|
|
Other
|
16
|
16
|
1%
|
|
10eLotto
|
1,341
|
1,361
|
-1.5%
|
|
Product
sales
|
0
|
0
|
0%
|
|
Core
|
477
|
434
|
10.0%
|
|
|
|
|
|
|
|
|
Late
numbers
|
19
|
70
|
-72.3%
|
Lottery
|
|
Total
revenue
|
172
|
184
|
-1%
|
|
MillionDAY
|
44
|
47
|
-6.4%
|
|
Lottery
services
|
172
|
184
|
-1%
|
|
|
|
|
|
|
|
FMC
|
172
|
184
|
-1%
|
|
Scratch & Win
wagers
|
2,197
|
2,179
|
0.8%
|
|
|
Instant ticket
& draw games
|
219
|
233
|
-1%
|
|
|
|
|
|
|
|
Other
services
|
(47)
|
(49)
|
1%
|
|
Italy lottery
revenue growth
|
|
|
-1.1%
|
|
Product
sales
|
0
|
0
|
0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gaming
|
|
|
|
Other
|
|
Total
revenue
|
76
|
70
|
14%
|
|
Installed base
(end of period)
|
|
|
|
|
Service
revenue
|
76
|
70
|
14%
|
|
VLT -
Operator (B2C)
|
10,984
|
11,027
|
-0.4%
|
|
Product
sales
|
0
|
0
|
0%
|
|
VLT -
Supplier (B2B)
|
7,514
|
8,094
|
-7.2%
|
|
|
|
|
|
|
|
|
AWP
|
41,129
|
43,074
|
-4.5%
|
Total
|
|
Revenue
|
402
|
430
|
-1%
|
|
Total
installed base
|
59,627
|
62,195
|
-4.1%
|
|
Operating
income
|
127
|
145
|
-7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wagers
|
|
|
|
|
|
|
|
|
|
|
|
VLT -
Operator (B2C)
|
1,324
|
1,426
|
-7.1%
|
|
|
|
|
|
|
|
|
AWP
|
877
|
879
|
-0.3%
|
|
|
|
|
|
|
|
|
Interactive wagers (gaming)
|
492
|
447
|
10.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
Sports
betting wagers (1)
|
227
|
225
|
0.8%
|
|
|
|
|
|
|
|
|
Sports
betting payout (%) (1)
|
83.4%
|
81.1%
|
2.3
pp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
virtual wagers and pools & horses
|
Revenue of $402 million,
relatively stable at constant currency
- Lottery service revenue of $172
million, essentially in line with the prior year at constant
currency, on stable wagers
- Gaming service revenue of $154
million compared to $175
million in the prior year
-
- Increased taxes on AWPs and VLTs
- Other service revenue of $76
million, up 14% at constant currency
-
- Growth in commercial services
- Lower sports betting payout in the prior year
Operating income of $127 million,
down 7% at constant currency
- Higher gaming machine taxes and sports betting payout
Other Developments
The Company's Board of Directors
declared a quarterly cash dividend of $0.20 per ordinary share
- Record date of November 29,
2019
- Payment date of December 13,
2019
Issuance of €500 million 2.375% Notes due 2028, as previously
announced
- Net proceeds used to pay €320 million term loan amortization
due January 2020
- Balance used to repay all utilizations under revolving credit
facilities
2019 Outlook
- Adjusted EBITDA of $1.675 -
$1.735 billion remains unchanged
- Updating capital expenditures to $450 - $500
million; previously $450 -
$550 million
- Full-year EUR/USD exchange rate of 1.12
Conference Call and Webcast
November 14, 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 1869816
- 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 1869816
Comparability of Results
All figures presented in this news release are prepared under
U.S. GAAP, unless noted otherwise. Adjusted figures exclude the
impact of items such as purchase accounting, impairment charges,
restructuring expense, foreign exchange, and certain one-time,
primarily transaction-related items. Reconciliations to the most
directly comparable U.S. GAAP measures are included in the tables
in this news release. Constant currency changes for 2019 are
calculated using the same foreign exchange rates as the
corresponding 2018 period. Management uses non-GAAP financial
measures to understand and compare operating results across
accounting periods, for internal budgeting and forecasting
purposes, and to evaluate the Company's financial performance.
Management believes these non-GAAP financial measures reflect the
Company's ongoing business in a manner that allows for meaningful
period-to-period comparisons and analysis of business trends. These
constant currency changes and non-GAAP financial measures should
however be viewed in addition to, and not as an alternative for,
the Company's reported results prepared in accordance with U.S.
GAAP.
About IGT
IGT (NYSE:IGT) is the global leader in
gaming. We enable players to experience their favorite games across
all channels and regulated segments, from Gaming Machines and
Lotteries to Digital and Social Gaming. Leveraging a wealth of
premium content, substantial investment in innovation, in-depth
customer intelligence, operational expertise and leading-edge
technology, our gaming solutions anticipate the demands of
consumers wherever they decide to play. We have a well-established
local presence and relationships with governments and regulators in
more than 100 countries around the world, and create value by
adhering to the highest standards of service, integrity, and
responsibility. IGT has over 12,000 employees. For more
information, please visit www.IGT.com.
Cautionary Statement Regarding Forward-Looking
Statements
This news release may contain forward-looking statements (including
within the meaning of the Private Securities Litigation Reform Act
of 1995) concerning International Game Technology PLC and its
consolidated subsidiaries (the "Company") and other matters. These
statements may discuss goals, intentions, and expectations as to
future plans, trends, events, dividends, results of operations, or
financial condition, or otherwise, based on current beliefs of the
management of the Company as well as assumptions made by, and
information currently available to, such management.
Forward-looking statements may be accompanied by words such as
"aim," "anticipate," "believe," "plan," "could," "would," "should,"
"shall", "continue," "estimate," "expect," "forecast," "future,"
"guidance," "intend," "may," "will," "possible," "potential,"
"predict," "project" or the negative or other variations of them.
These forward-looking statements speak only as of the date on which
such statements are made and are subject to various risks and
uncertainties, many of which are outside the Company's control.
Should one or more of these risks or uncertainties materialize, or
should any of the underlying assumptions prove incorrect, actual
results may differ materially from those predicted in the
forward-looking statements and from past results, performance, or
achievements. Therefore, you should not place undue reliance on
such statements. Factors that could cause actual results to differ
materially from those in the forward-looking statements include
(but are not limited to) the factors and risks described in the
Company's annual report on Form 20-F for the financial year ended
December 31, 2018 and other documents
filed from time to time with the SEC, which are available on the
SEC's website at www.sec.gov and on the investor relations section
of the Company's website at www.IGT.com. Except as required under
applicable law, the Company does not assume any obligation to
update these forward-looking statements. You should carefully
consider these factors and other risks and uncertainties that
affect the Company's business. All forward-looking statements
contained in this news release are qualified in their entirety by
this cautionary statement.
Contact:
Phil O'Shaughnessy, Global
Communications, toll free in U.S./Canada +1 (844) IGT-7452; outside
U.S./Canada +1 (401) 392-7452
Francesco Luti, +39 3485475493; for
Italian media inquiries
James Hurley, Investor Relations, +1
(401) 392-7190
International Game
Technology PLC
|
Consolidated
Statements of Operations
|
($ and shares
in thousands, except per share amounts)
|
Unaudited
|
|
|
|
|
|
For the three
months ended
|
|
September
30,
|
|
2019
|
|
2018
|
|
|
|
|
Service
revenue
|
921,712
|
|
963,265
|
Product
sales
|
231,535
|
|
192,565
|
Total
revenue
|
1,153,247
|
|
1,155,830
|
|
|
|
|
Cost of
services
|
575,594
|
|
586,811
|
Cost of product
sales
|
136,246
|
|
107,311
|
Selling, general and
administrative
|
201,416
|
|
194,099
|
Research and
development
|
68,804
|
|
63,277
|
Impairment
|
432
|
|
1,530
|
Other operating
expense, net
|
16,873
|
|
2,774
|
Total operating
expenses
|
999,365
|
|
955,802
|
|
|
|
|
Operating
income
|
153,882
|
|
200,028
|
|
|
|
|
Interest expense,
net
|
(102,551)
|
|
(103,553)
|
Foreign exchange
gain, net
|
124,068
|
|
21,104
|
Other expense,
net
|
(308)
|
|
(17,244)
|
Total
non-operating income (expenses)
|
21,209
|
|
(99,693)
|
|
|
|
|
Income before
provision for income taxes
|
175,091
|
|
100,335
|
|
|
|
|
Provision for income
taxes
|
44,530
|
|
46,327
|
|
|
|
|
Net
income
|
130,561
|
|
54,008
|
|
|
|
|
Less: Net income
attributable to non-controlling interests
|
26,998
|
|
31,709
|
|
|
|
|
Net income
attributable to IGT PLC
|
103,563
|
|
22,299
|
|
|
|
|
|
|
|
|
Net income
attributable to IGT PLC per common share - basic
|
0.51
|
|
0.11
|
Net income
attributable to IGT PLC per common share - diluted
|
0.51
|
|
0.11
|
|
|
|
|
Weighted-average
shares - basic
|
204,435
|
|
204,219
|
Weighted-average
shares - diluted
|
204,528
|
|
204,344
|
International Game
Technology PLC
|
Consolidated
Statements of Operations
|
($ and shares
in thousands, except per share amounts)
|
Unaudited
|
|
|
|
|
|
For the nine
months ended
|
|
September
30,
|
|
2019
|
|
2018
|
|
|
|
|
Service
revenue
|
2,892,774
|
|
3,017,283
|
Product
sales
|
639,642
|
|
547,841
|
Total
revenue
|
3,532,416
|
|
3,565,124
|
|
|
|
|
Cost of
services
|
1,765,519
|
|
1,812,553
|
Cost of product
sales
|
397,217
|
|
333,065
|
Selling, general and
administrative
|
616,516
|
|
605,405
|
Research and
development
|
200,305
|
|
198,497
|
Impairment
|
432
|
|
1,530
|
Other operating
(income) expense, net
|
(3,322)
|
|
7,974
|
Total operating
expenses
|
2,976,667
|
|
2,959,024
|
|
|
|
|
Operating
income
|
555,749
|
|
606,100
|
|
|
|
|
Interest expense,
net
|
(309,480)
|
|
(313,721)
|
Foreign exchange
gain, net
|
141,609
|
|
96,955
|
Other income
(expense), net
|
22,687
|
|
(45,567)
|
Total
non-operating expenses
|
(145,184)
|
|
(262,333)
|
|
|
|
|
Income before
provision for income taxes
|
410,565
|
|
343,767
|
|
|
|
|
Provision for income
taxes
|
160,522
|
|
159,064
|
|
|
|
|
Net
income
|
250,043
|
|
184,703
|
|
|
|
|
Less: Net income
attributable to non-controlling interests
|
101,370
|
|
104,054
|
|
|
|
|
Net income
attributable to IGT PLC
|
148,673
|
|
80,649
|
|
|
|
|
|
|
|
|
Net income
attributable to IGT PLC per common share - basic
|
0.73
|
|
0.40
|
Net income
attributable to IGT PLC per common share - diluted
|
0.73
|
|
0.39
|
|
|
|
|
Weighted-average
shares - basic
|
204,352
|
|
204,009
|
Weighted-average
shares - diluted
|
204,532
|
|
204,375
|
International Game
Technology PLC
|
Consolidated
Balance Sheets
|
($
thousands)
|
Unaudited
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
2019
|
|
2018
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
542,425
|
|
250,669
|
Restricted cash and
cash equivalents
|
221,233
|
|
261,108
|
Trade and other
receivables, net
|
899,665
|
|
949,085
|
Inventories
|
253,949
|
|
282,698
|
Other current
assets
|
471,239
|
|
504,061
|
Income taxes
receivable
|
49,214
|
|
39,075
|
Total current
assets
|
2,437,725
|
|
2,286,696
|
Systems, equipment
and other assets related to contracts, net
|
1,298,394
|
|
1,404,426
|
Property, plant and
equipment, net
|
138,708
|
|
185,349
|
Operating lease
right-of-use-assets
|
344,146
|
|
-
|
Goodwill
|
5,535,003
|
|
5,580,227
|
Intangible assets,
net
|
1,873,123
|
|
2,044,723
|
Other non-current
assets
|
1,939,337
|
|
2,108,964
|
Deferred income
taxes
|
33,819
|
|
38,117
|
Total non-current
assets
|
11,162,530
|
|
11,361,806
|
Total
assets
|
13,600,255
|
|
13,648,502
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
1,069,275
|
|
1,142,371
|
Other current
liabilities
|
790,326
|
|
816,722
|
Current portion of
long-term debt
|
447,678
|
|
-
|
Short-term
borrowings
|
740
|
|
34,822
|
Income taxes
payable
|
53,414
|
|
8,209
|
Total current
liabilities
|
2,361,433
|
|
2,002,124
|
Long-term debt, less
current portion
|
7,468,948
|
|
7,977,267
|
Deferred income
taxes
|
440,903
|
|
446,083
|
Income taxes
payable
|
25,654
|
|
25,654
|
Operating lease
liabilities
|
311,673
|
|
-
|
Other non-current
liabilities
|
374,601
|
|
445,445
|
Total non-current
liabilities
|
8,621,779
|
|
8,894,449
|
Total
liabilities
|
10,983,212
|
|
10,896,573
|
Commitments and
contingencies
|
|
|
|
Shareholders'
equity
|
2,617,043
|
|
2,751,929
|
Total liabilities
and shareholders' equity
|
13,600,255
|
|
13,648,502
|
International Game
Technology PLC
|
Consolidated
Statements of Cash Flows
|
($
thousands)
|
Unaudited
|
|
|
|
For the nine
months ended
|
|
September
30,
|
|
2019
|
|
2018
|
Cash flows from
operating activities
|
|
|
|
Net income
|
250,043
|
|
184,703
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation
|
315,291
|
|
312,203
|
Amortization
|
207,161
|
|
204,256
|
Service revenue
amortization
|
154,630
|
|
164,952
|
Stock-based
compensation expense
|
20,046
|
|
24,944
|
Debt issuance cost
amortization
|
17,004
|
|
16,511
|
Loss on
extinguishment of debt
|
11,964
|
|
49,460
|
Deferred income
taxes
|
2,590
|
|
11,815
|
Impairment
|
432
|
|
1,530
|
Gain on sale of
assets
|
(65,324)
|
|
(5,568)
|
Foreign exchange
gain, net
|
(141,609)
|
|
(96,955)
|
Other non-cash costs,
net
|
48,299
|
|
8,700
|
Changes in operating
assets and liabilities, excluding the effects of
acquisitions:
|
|
|
|
Trade and other
receivables
|
16,546
|
|
92,823
|
Inventories
|
23,875
|
|
(26,682)
|
Upfront Italian
license fee
|
-
|
|
(366,270)
|
Accounts
payable
|
611
|
|
(123,057)
|
Other assets and
liabilities
|
(72,854)
|
|
(204,053)
|
Net cash provided
by operating activities
|
788,705
|
|
249,312
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
Capital
expenditures
|
(332,716)
|
|
(374,313)
|
Proceeds from sale of
assets
|
100,743
|
|
8,200
|
Other
|
6,126
|
|
2,064
|
Net cash used in
investing activities
|
(225,847)
|
|
(364,049)
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
Principal payments on
long-term debt
|
(1,264,647)
|
|
(1,658,753)
|
Dividends paid -
non-controlling interests
|
(135,684)
|
|
(126,926)
|
Dividends
paid
|
(122,616)
|
|
(122,394)
|
Return of capital -
non-controlling interests
|
(80,384)
|
|
(64,974)
|
Net (payments of)
proceeds from short-term borrowings
|
(34,519)
|
|
29,957
|
Debt issuance costs
paid
|
(24,787)
|
|
(10,199)
|
Payments in
connection with extinguishment of debt
|
(8,598)
|
|
(42,148)
|
Net receipts from
(payments of) financial liabilities
|
753
|
|
(36,407)
|
Capital increase -
non-controlling interests
|
1,369
|
|
135,536
|
Proceeds from
long-term debt
|
1,397,025
|
|
1,415,762
|
Other
|
(7,798)
|
|
(18,051)
|
Net cash used in
financing activities
|
(279,886)
|
|
(498,597)
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents, and restricted
cash
|
282,972
|
|
(613,334)
|
Effect of exchange
rate changes on cash and cash equivalents, and restricted
cash
|
(31,091)
|
|
10,924
|
Cash and cash
equivalents, and restricted cash at the beginning of the
period
|
511,777
|
|
1,305,430
|
Cash and cash
equivalents, and restricted cash at the end of the
period
|
763,658
|
|
703,020
|
|
|
|
|
|
|
|
|
Supplemental
Cash Flow Information:
|
|
|
|
Interest
paid
|
(371,847)
|
|
(419,508)
|
Income taxes
paid
|
(138,009)
|
|
(125,388)
|
International Game
Technology PLC
|
Net
Debt
|
($
thousands)
|
Unaudited
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
2019
|
|
2018
|
|
|
|
|
4.125% Senior Secured
Notes due February 2020(2)
|
-
|
|
499,167
|
4.750% Senior Secured
Notes due March 2020 (2)
|
-
|
|
438,252
|
5.500% Senior Secured
Notes due June 2020 (1)
|
-
|
|
27,519
|
6.250% Senior Secured
Notes due February 2022 (1)
|
1,491,826
|
|
1,469,609
|
4.750% Senior Secured
Notes due February 2023 (2)
|
918,800
|
|
964,730
|
5.350% Senior Secured
Notes due October 2023(1)
|
60,910
|
|
60,983
|
3.500% Senior Secured
Notes due July 2024 (2)
|
540,006
|
|
567,179
|
6.500% Senior Secured
Notes due February 2025 (1)
|
1,089,555
|
|
1,088,385
|
3.500% Senior Secured
Notes due June 2026 (2)
|
809,246
|
|
-
|
6.250% Senior Secured
Notes due January 2027(1)
|
743,203
|
|
742,667
|
2.375% Senior Secured
Notes due April 2028 (2)
|
539,115
|
|
-
|
Senior Secured
Notes, long-term
|
6,192,661
|
|
5,858,491
|
|
|
|
|
Term Loan Facilities
due January 2023 (2)
|
1,276,287
|
|
1,705,395
|
Revolving Credit
Facilities due July 2024 (1) (2)
|
-
|
|
413,381
|
Long-term debt,
less current portion
|
7,468,948
|
|
7,977,267
|
|
|
|
|
4.750% Senior Secured
Notes due March 2020 (2)
|
420,273
|
|
-
|
5.500% Senior Secured
Notes due June 2020 (1)
|
27,405
|
|
-
|
Current portion of
long-term debt
|
447,678
|
|
-
|
|
|
|
|
Short-term
borrowings
|
740
|
|
34,822
|
Total
debt
|
7,917,366
|
|
8,012,089
|
|
|
|
|
Less: Cash and cash
equivalents
|
542,425
|
|
250,669
|
Less: Debt issuance
costs, net - Revolving Credit Facilities due July 2024
|
21,311
|
|
-
|
|
|
|
|
Net
debt
|
7,353,630
|
|
7,761,420
|
|
|
|
|
(1) U.S.
dollar-denominated debt
|
|
|
|
(2)
Euro-denominated debt
|
|
|
|
Note: Net debt is a
non-GAAP financial measure
|
|
|
|
International Game
Technology PLC
|
Adjusted EBITDA
and Free Cash Flow
|
Reconciliations of
Non-GAAP Financial Measures
|
($
thousands)
|
Unaudited
|
|
|
|
|
|
|
|
|
|
For the three months
ended
|
|
September
30,
|
|
2019
|
|
2018
|
|
|
|
|
Net income
|
130,561
|
|
54,008
|
Provision for income
taxes
|
44,530
|
|
46,327
|
Non-operating
(income) expenses
|
(21,209)
|
|
99,693
|
Depreciation
|
106,020
|
|
109,755
|
Amortization
|
69,960
|
|
67,806
|
Service revenue
amortization
|
50,695
|
|
53,837
|
Stock-based
compensation expense
|
7,544
|
|
7,825
|
Impairment
|
432
|
|
1,530
|
Other
|
18,543
|
|
2,541
|
Adjusted
EBITDA
|
407,076
|
|
443,322
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
196,984
|
|
129,162
|
Capital
expenditures
|
(101,713)
|
|
(115,346)
|
Free Cash
Flow
|
95,271
|
|
13,816
|
International Game
Technology PLC
|
Adjusted EBITDA
and Free Cash Flow
|
Reconciliations of
Non-GAAP Financial Measures
|
($
thousands)
|
Unaudited
|
|
|
|
|
|
|
|
|
|
For the nine months
ended
|
|
September
30,
|
|
2019
|
|
2018
|
|
|
|
|
Net income
|
250,043
|
|
184,703
|
Provision for income
taxes
|
160,522
|
|
159,064
|
Non-operating
expenses
|
145,184
|
|
262,333
|
Depreciation
|
315,291
|
|
312,203
|
Amortization
|
207,161
|
|
204,256
|
Service revenue
amortization
|
154,630
|
|
164,952
|
Stock-based
compensation expense
|
20,046
|
|
24,944
|
Impairment
|
432
|
|
1,530
|
Other
|
24,149
|
|
7,308
|
Adjusted
EBITDA
|
1,277,458
|
|
1,321,293
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
788,705
|
|
249,312
|
Capital
expenditures
|
(332,716)
|
|
(374,313)
|
Free Cash
Flow
|
455,989
|
|
(125,001)
|
International Game Technology
PLC
|
Consolidated
Statement of Operations
|
Reconciliation of Non-GAAP Financial
Measures
|
($ and
shares in thousands, except per share amounts)
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter to
date
|
|
|
|
|
|
|
|
|
|
Quarter to
date
|
|
September
2019
|
|
Adjustments
|
|
September
2019
|
|
As
|
|
Purchase
|
|
Foreign
|
|
|
|
Refinancing
and
|
|
As
|
|
Reported
|
|
Accounting
|
|
Exchange
|
|
Impairment
|
|
Other
|
|
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
1,153,247
|
|
(181)
|
|
-
|
|
-
|
|
-
|
|
1,153,066
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services
|
575,594
|
|
(17,947)
|
|
-
|
|
-
|
|
-
|
|
557,647
|
Cost of product
sales
|
136,246
|
|
(3,955)
|
|
-
|
|
-
|
|
-
|
|
132,291
|
Selling,
general and administrative
|
201,416
|
|
(26,788)
|
|
-
|
|
-
|
|
-
|
|
174,628
|
Research and
development
|
68,804
|
|
(1)
|
|
-
|
|
-
|
|
-
|
|
68,803
|
Impairment
|
432
|
|
-
|
|
-
|
|
(432)
|
|
-
|
|
-
|
Other operating
expense (income), net
|
16,873
|
|
-
|
|
-
|
|
-
|
|
(18,615)
|
|
(1,742)
|
Total
operating expenses
|
999,365
|
|
(48,691)
|
|
-
|
|
(432)
|
|
(18,615)
|
|
931,627
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
153,882
|
|
48,510
|
|
-
|
|
432
|
|
18,615
|
|
221,439
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense, net
|
(102,551)
|
|
25
|
|
-
|
|
-
|
|
-
|
|
(102,526)
|
Foreign
exchange gain, net
|
124,068
|
|
-
|
|
(124,068)
|
|
-
|
|
-
|
|
-
|
Other (expense)
income, net
|
(308)
|
|
-
|
|
-
|
|
-
|
|
2,336
|
|
2,028
|
Total
non-operating income (expenses)
|
21,209
|
|
25
|
|
(124,068)
|
|
-
|
|
2,336
|
|
(100,498)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before provision for income taxes
|
175,091
|
|
48,535
|
|
(124,068)
|
|
432
|
|
20,951
|
|
120,941
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes (a)
|
44,530
|
|
11,666
|
|
(10,993)
|
|
-
|
|
5,368
|
|
50,571
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
130,561
|
|
36,869
|
|
(113,075)
|
|
432
|
|
15,583
|
|
70,370
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net
income attributable to non-controlling interests
|
26,998
|
|
25
|
|
-
|
|
-
|
|
-
|
|
27,023
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to IGT PLC
|
103,563
|
|
36,844
|
|
(113,075)
|
|
432
|
|
15,583
|
|
43,347
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
per common share - diluted
|
0.51
|
|
|
|
|
|
|
|
|
|
0.21
|
Weighted-average shares -
diluted
|
204,528
|
|
|
|
|
|
|
|
|
|
204,528
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Adjustments
for income taxes are determined based on the statutory tax rate in
effect in the respective jurisdiction where the adjustment
originated.
|
International Game Technology
PLC
|
Consolidated
Statement of Operations
|
Reconciliation of Non-GAAP Financial
Measures
|
($ and
shares in thousands, except per share amounts)
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year to
date
|
|
|
|
|
|
|
|
|
|
Year to
date
|
|
September
2019
|
|
Adjustments
|
|
September
2019
|
|
As
|
|
Purchase
|
|
Foreign
|
|
|
|
Refinancing
and
|
|
As
|
|
Reported
|
|
Accounting
|
|
Exchange
|
|
Impairment
|
|
Other
|
|
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
3,532,416
|
|
(540)
|
|
-
|
|
-
|
|
-
|
|
3,531,876
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services
|
1,765,519
|
|
(54,491)
|
|
-
|
|
-
|
|
-
|
|
1,711,028
|
Cost of product
sales
|
397,217
|
|
(11,736)
|
|
-
|
|
-
|
|
-
|
|
385,481
|
Selling,
general and administrative
|
616,516
|
|
(79,368)
|
|
-
|
|
-
|
|
-
|
|
537,148
|
Research and
development
|
200,305
|
|
(293)
|
|
-
|
|
-
|
|
-
|
|
200,012
|
Impairment
|
432
|
|
-
|
|
-
|
|
(432)
|
|
-
|
|
-
|
Other operating
income, net
|
(3,322)
|
|
-
|
|
-
|
|
-
|
|
(24,366)
|
|
(27,688)
|
Total
operating expenses
|
2,976,667
|
|
(145,888)
|
|
-
|
|
(432)
|
|
(24,366)
|
|
2,805,981
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
555,749
|
|
145,348
|
|
-
|
|
432
|
|
24,366
|
|
725,895
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense, net
|
(309,480)
|
|
76
|
|
-
|
|
-
|
|
-
|
|
(309,404)
|
Foreign
exchange gain, net
|
141,609
|
|
-
|
|
(141,609)
|
|
-
|
|
-
|
|
-
|
Other income,
net
|
22,687
|
|
-
|
|
-
|
|
-
|
|
11,964
|
|
34,651
|
Total
non-operating expenses
|
(145,184)
|
|
76
|
|
(141,609)
|
|
-
|
|
11,964
|
|
(274,753)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before provision for income taxes
|
410,565
|
|
145,424
|
|
(141,609)
|
|
432
|
|
36,330
|
|
451,142
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
income taxes (a)
|
160,522
|
|
34,908
|
|
(10,819)
|
|
-
|
|
6,730
|
|
191,341
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
250,043
|
|
110,516
|
|
(130,790)
|
|
432
|
|
29,600
|
|
259,801
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net
income attributable to non-controlling interests
|
101,370
|
|
76
|
|
-
|
|
-
|
|
-
|
|
101,446
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to IGT PLC
|
148,673
|
|
110,440
|
|
(130,790)
|
|
432
|
|
29,600
|
|
158,355
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
per common share - diluted
|
0.73
|
|
|
|
|
|
|
|
|
|
0.77
|
Weighted-average shares -
diluted
|
204,532
|
|
|
|
|
|
|
|
|
|
204,532
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Adjustments
for income taxes are determined based on the statutory tax rate in
effect in the respective jurisdiction where the adjustment
originated.
|
International Game Technology
PLC
|
Consolidated
Statement of Operations
|
Reconciliation of Non-GAAP Financial
Measures
|
($ and
shares in thousands, except per share amounts)
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter to
date
|
|
|
|
|
|
|
|
|
|
Quarter to
date
|
|
September
2018
|
|
Adjustments
|
|
September
2018
|
|
As
|
|
Purchase
|
|
Foreign
|
|
|
|
Refinancing
and
|
|
As
|
|
Reported
|
|
Accounting
|
|
Exchange
|
|
Impairment
|
|
Other
|
|
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
1,155,830
|
|
(181)
|
|
-
|
|
-
|
|
-
|
|
1,155,649
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services
|
586,811
|
|
(21,241)
|
|
-
|
|
-
|
|
-
|
|
565,570
|
Cost of product
sales
|
107,311
|
|
(3,954)
|
|
-
|
|
-
|
|
-
|
|
103,357
|
Selling,
general and administrative
|
194,099
|
|
(27,017)
|
|
-
|
|
-
|
|
-
|
|
167,082
|
Research and
development
|
63,277
|
|
(232)
|
|
-
|
|
-
|
|
-
|
|
63,045
|
Impairment
|
1,530
|
|
-
|
|
-
|
|
(1,530)
|
|
-
|
|
-
|
Other operating
expense, net
|
2,774
|
|
-
|
|
-
|
|
-
|
|
(2,774)
|
|
-
|
Total
operating expenses
|
955,802
|
|
(52,444)
|
|
-
|
|
(1,530)
|
|
(2,774)
|
|
899,054
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
200,028
|
|
52,263
|
|
-
|
|
1,530
|
|
2,774
|
|
256,595
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense, net
|
(103,553)
|
|
524
|
|
-
|
|
-
|
|
-
|
|
(103,029)
|
Foreign
exchange gain, net
|
21,104
|
|
-
|
|
(21,104)
|
|
-
|
|
-
|
|
-
|
Other (expense)
income, net
|
(17,244)
|
|
-
|
|
-
|
|
-
|
|
19,875
|
|
2,631
|
Total
non-operating expenses
|
(99,693)
|
|
524
|
|
(21,104)
|
|
-
|
|
19,875
|
|
(100,398)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before provision for income taxes
|
100,335
|
|
52,787
|
|
(21,104)
|
|
1,530
|
|
22,649
|
|
156,197
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
income taxes (a)
|
46,327
|
|
12,846
|
|
301
|
|
-
|
|
690
|
|
60,164
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
54,008
|
|
39,941
|
|
(21,405)
|
|
1,530
|
|
21,959
|
|
96,033
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net
income attributable to non-controlling interests
|
31,709
|
|
27
|
|
-
|
|
-
|
|
-
|
|
31,736
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to IGT PLC
|
22,299
|
|
39,914
|
|
(21,405)
|
|
1,530
|
|
21,959
|
|
64,297
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
per common share - diluted
|
0.11
|
|
|
|
|
|
|
|
|
|
0.31
|
Weighted-average shares -
diluted
|
204,344
|
|
|
|
|
|
|
|
|
|
204,344
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Adjustments
for income taxes are determined based on the statutory tax rate in
effect in the respective jurisdiction where the adjustment
originated.
|
International Game Technology
PLC
|
Consolidated
Statement of Operations
|
Reconciliation of Non-GAAP Financial
Measures
|
($ and
shares in thousands, except per share amounts)
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year to
date
|
|
|
|
|
|
|
|
|
|
Year to
date
|
|
September
2018
|
|
Adjustments
|
|
September
2018
|
|
As
|
|
Purchase
|
|
Foreign
|
|
|
|
Refinancing
and
|
|
As
|
|
Reported
|
|
Accounting
|
|
Exchange
|
|
Impairment
|
|
Other
|
|
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
3,565,124
|
|
(540)
|
|
-
|
|
-
|
|
-
|
|
3,564,584
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services
|
1,812,553
|
|
(63,457)
|
|
-
|
|
-
|
|
-
|
|
1,749,096
|
Cost of product
sales
|
333,065
|
|
(11,735)
|
|
-
|
|
-
|
|
-
|
|
321,330
|
Selling,
general and administrative
|
605,405
|
|
(80,602)
|
|
-
|
|
-
|
|
-
|
|
524,803
|
Research and
development
|
198,497
|
|
(686)
|
|
-
|
|
-
|
|
-
|
|
197,811
|
Impairment
|
1,530
|
|
-
|
|
-
|
|
(1,530)
|
|
-
|
|
-
|
Other operating
expense, net
|
7,974
|
|
-
|
|
-
|
|
-
|
|
(7,974)
|
|
-
|
Total
operating expenses
|
2,959,024
|
|
(156,480)
|
|
-
|
|
(1,530)
|
|
(7,974)
|
|
2,793,040
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
606,100
|
|
155,940
|
|
-
|
|
1,530
|
|
7,974
|
|
771,544
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense, net
|
(313,721)
|
|
1,536
|
|
-
|
|
-
|
|
-
|
|
(312,185)
|
Foreign
exchange gain, net
|
96,955
|
|
-
|
|
(96,955)
|
|
-
|
|
-
|
|
-
|
Other (expense)
income, net
|
(45,567)
|
|
(2,184)
|
|
-
|
|
-
|
|
49,459
|
|
1,708
|
Total
non-operating expenses
|
(262,333)
|
|
(648)
|
|
(96,955)
|
|
-
|
|
49,459
|
|
(310,477)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before provision for income taxes
|
343,767
|
|
155,292
|
|
(96,955)
|
|
1,530
|
|
57,433
|
|
461,067
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
income taxes (a)
|
159,064
|
|
37,101
|
|
6,630
|
|
-
|
|
1,831
|
|
204,626
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
184,703
|
|
118,191
|
|
(103,585)
|
|
1,530
|
|
55,602
|
|
256,441
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net
income attributable to non-controlling interests
|
104,054
|
|
77
|
|
-
|
|
-
|
|
-
|
|
104,131
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to IGT PLC
|
80,649
|
|
118,114
|
|
(103,585)
|
|
1,530
|
|
55,602
|
|
152,310
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
per common share - diluted
|
0.39
|
|
|
|
|
|
|
|
|
|
0.75
|
Weighted-average shares -
diluted
|
204,375
|
|
|
|
|
|
|
|
|
|
204,375
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Adjustments
for income taxes are determined based on the statutory tax rate in
effect in the respective jurisdiction where the adjustment
originated.
|
INTERNATIONAL GAME
TECHNOLOGY PLC
|
Select Financial
Data
|
|
|
Constant
|
|
Key Performance
Indicators
|
|
|
%
|
Period Ended
September 30
|
Q3
'19
|
Q3
'18
|
FX
|
|
Period Ended
September 30
|
Q3
'19
|
Q3
'18
|
Change
|
Gaming
|
|
Total
revenue
|
563
|
541
|
7%
|
|
Installed base
units (end of period)
|
|
|
|
|
Gaming
services
|
364
|
397
|
-5%
|
|
Casino
|
30,948
|
35,689
|
-13.3%
|
|
|
Terminal
|
276
|
303
|
-6%
|
|
VLT -
Government sponsored (ex-Italy)
|
18,749
|
18,640
|
0.6%
|
|
|
Other
|
88
|
94
|
-4%
|
|
VLT -
Italy supplier (B2B)
|
7,514
|
8,094
|
-7.2%
|
|
Product
sales
|
199
|
144
|
41%
|
|
Total
installed base units
|
57,211
|
62,423
|
-8.3%
|
|
|
Terminal
|
139
|
101
|
39%
|
|
Yield
(average gross revenue per unit per day)
|
$ 28.46
|
$ 27.84
|
2.2%
|
|
|
Other
|
60
|
43
|
44%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional Italian network details:
|
|
|
|
Lottery
|
|
Total
revenue
|
493
|
527
|
-4%
|
|
VLT -
Operator (B2C)
|
10,984
|
11,027
|
-0.4%
|
|
Lottery
services
|
460
|
479
|
-1%
|
|
AWP
|
41,129
|
43,074
|
-4.5%
|
|
|
FMC
|
438
|
454
|
-1%
|
|
|
|
|
|
|
|
Instant ticket
& draw games
|
431
|
452
|
-1%
|
|
Machine units
shipped
|
|
|
|
|
|
Other
services
|
6
|
2
|
113%
|
|
New/expansion
|
1,001
|
1,372
|
-27.0%
|
|
|
LMA
|
23
|
25
|
-10%
|
|
Replacement
|
9,184
|
5,679
|
61.7%
|
|
Product
sales
|
33
|
48
|
-32%
|
|
Total
machines shipped
|
10,185
|
7,051
|
44.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
Total
revenue
|
97
|
88
|
17%
|
|
Global lottery
same-store revenue growth
|
|
|
|
|
Service
revenue
|
97
|
88
|
17%
|
|
Instant
ticket & draw games
|
|
|
4.2%
|
|
Product
sales
|
0
|
0
|
0%
|
|
Multistate jackpots
|
|
|
-19.5%
|
|
|
|
|
|
|
|
|
Total
lottery same-store revenue growth (ex-Italy)
|
|
1.7%
|
Consolidated
|
|
Revenue
|
1,153
|
1,156
|
3%
|
|
Italy
lottery revenue growth
|
|
|
-1.1%
|
|
Operating
Income:
|
|
|
|
|
|
|
|
|
|
|
Segment
total
|
270
|
306
|
-9%
|
|
|
|
|
|
|
|
Purchase
accounting
|
(49)
|
(52)
|
7%
|
|
|
|
|
|
|
|
Corporate
support
|
(67)
|
(54)
|
-28%
|
|
|
|
|
|
|
|
Total
|
154
|
200
|
-19%
|
|
|
|
|
|
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SOURCE International Game Technology PLC