International Game Technology PLC Reports Fourth Quarter And Full Year 2018 Results
- 2018 full year net loss of $21 million includes $120 million of non-cash impairment charges; 2018 Adjusted EBITDA of $1,737 million within expected range when normalized for FX
- Fourth quarter net loss of $102 million reflects non-cash impairment charges; Adjusted EBITDA of $416 million on strong global Lottery performance and North America gaming machine unit shipments
- Net debt of $7,761 million; final installment of Scratch & Win license fee paid in fourth quarter
- Cash dividend declared of $0.20 per ordinary share
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 |
Y/Y |
Constant |
||
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 |
Y/Y |
Constant |
||
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 |
Revenue |
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 |
Revenue |
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) |
SOURCE International Game Technology PLC
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