International Game Technology PLC Reports Fourth Quarter And Full Year 2016 Results
LONDON, March 9, 2017 /PRNewswire/ --
- Fourth quarter net income of $233 million; adjusted EBITDA of $422 million reflects broad-based lottery growth and higher gaming product sales
- 2016 net income of $211 million; adjusted 2016 EBITDA of $1,755 million on strong North America and Italy performance
- Net debt of $7,569 million at year end
- Cash dividend declared of $0.20 per ordinary share
International Game Technology PLC ("IGT") (NYSE: IGT) today reported financial results for the fourth quarter and year ended December 31, 2016. Today, at 8:00 a.m. EST / 1:00 p.m. GMT / 2:00 p.m. CET, management will host a conference call and webcast to present the fourth quarter and full year 2016 results; access details are provided below.
"We reached many important milestones in 2016," said Marco Sala, CEO of IGT. "We reinforced our number one position in Lottery globally, achieving robust same-store revenue growth and securing valuable, multi-year contracts. We also made good progress with our Gaming turnaround, developing compelling new titles and hardware, in addition to expanding our International presence. We operate in growing global market segments and IGT has a long history of investing in innovation to create shareholder value."
"We achieved our financial goals for 2016 and ended the year in strong financial condition," said Alberto Fornaro, CFO of IGT. "Disciplined capital management enabled us to reduce our debt and improve our leverage profile despite the large upfront investment in the Italy Lotto. We expect 2017 to evolve as a year of two halves, with difficult comparisons in the first part of the year easing as we reach the second half."
Summary of Consolidated Fourth Quarter and Full Year Financial Results
|
Reported |
|||||||
|
Constant |
|||||||
|
Quarter Ended December 31, |
2016 |
2015 |
Change |
Currency |
|||
|
(%) |
Change (%) |
||||||
|
(In US $ millions, unless otherwise noted) |
|||||||
|
Revenue |
1,321 |
1,365 |
-3% |
-2% |
|||
|
Operating Income |
138 |
132 |
5% |
5% |
|||
|
Net income per diluted share |
1.15 |
0.37 |
NM |
NM |
|||
|
Net debt |
7,569 |
7,707 |
-2% |
- |
|||
|
Adjusted EBITDA |
422 |
449 |
-6% |
-6% |
|||
|
Adjusted Operating Income |
281 |
293 |
-4% |
-4% |
|||
|
Adjusted net income per diluted share |
0.88 |
0.63 |
40% |
NA |
|||
|
Reported |
Pro forma | ||||||
|
Constant | |||||||
|
Year Ended December 31, |
2016 |
2015 |
Change |
2016 |
2015 |
Change |
Currency |
|
(%) |
(%) |
Change (%) | |||||
|
(In US $ millions, unless otherwise noted) |
|||||||
|
Revenue |
5,154 |
4,689 |
10% |
5,154 |
5,088 |
1% |
2% |
|
Operating Income |
660 |
540 |
22% |
660 |
533 |
24% |
24% |
|
Net income (loss) per diluted share |
1.05 |
(0.39) |
NM |
1.05 |
NA |
NA |
NA |
|
Net debt |
7,569 |
7,707 |
-2% |
7,569 |
7,707 |
-2% |
- |
|
Adjusted EBITDA |
1,755 |
1,611 |
9% |
1,755 |
1,704 |
3% |
3% |
|
Adjusted Operating Income |
1,167 |
1,043 |
12% |
1,167 |
1,069 |
9% |
9% |
|
Adjusted net income per diluted share |
2.33 |
1.88 |
24% |
2.33 |
NA |
NA |
NA |
|
Note: Pro forma is defined as the combined results of GTECH and legacy IGT for period prior to the second quarter of 2015. Adjusted operating income, adjusted EBITDA, and adjusted net income per diluted share are non-GAAP financial measures. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are provided at the end of this news release. |
Comparability of Results
All figures presented in this news release are prepared under U.S. GAAP, unless noted otherwise.
As a result of the combination of GTECH S.p.A. ("GTECH") and International Game Technology ("legacy IGT"), which was completed on April 7, 2015, a number of items affect the comparability of reported results. Reported financial information for the full year 2016 includes the results of operations of IGT PLC for the entire period, while reported financial information for the full year 2015 period includes IGT PLC for the second, third, and fourth quarters and only GTECH operations in the first quarter. Pro forma figures represent the combined results of both companies.
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.
Reported 2016 results were impacted by the strengthening of the U.S. dollar compared to the euro; the daily average Euro to U.S. dollar foreign exchange rate was 1.08 in the fourth quarter of 2016 compared to 1.10 in the fourth quarter of 2015, and was 1.11 for the full year 2016 period compared to 1.11 in 2015. Constant currency changes for 2016 are calculated using the same foreign exchange rates as the corresponding 2015 period.
Management believes that referring to certain pro forma, constant currency, or adjusted measures is a more useful way to evaluate the Company's underlying performance.
Overview of Consolidated Fourth Quarter Results
Consolidated revenue declined 3% to $1,321 million from $1,365 million in the fourth quarter of 2015, which included approximately $20 million of revenue benefits related to the catch-up reclassification of Stability Law taxes on gaming machines in Italy. Lower revenue reflects global lottery growth that was more than offset by lower gaming service revenue, mostly at DoubleDown.
Global lottery same-store revenue, excluding Italy, increased 2% during the fourth quarter while Italy lottery wagers increased 4%. Product sales rose 1% in the quarter on higher North America systems sales and the contribution from a recent intellectual property settlement. The Company shipped 10,320 gaming machines worldwide during the fourth quarter.
Adjusted EBITDA of $422 million was 6% below the fourth quarter of 2015. Operating income was $138 million compared to $132 million in the fourth quarter of 2015, and adjusted operating income was $281 million compared to $293 million in the prior year. The declines in adjusted EBITDA and adjusted operating income primarily reflect an incremental $14 million of Italy value-added tax ("VAT") credit in the prior-year period, in addition to higher selling, general and administrative expenses.
Interest expense was $116 million compared to $119 million in the prior-year period.
Net income attributable to IGT was $233 million in the fourth quarter of 2016, reflecting the impact of $196 million in primarily non-cash foreign exchange gains and the favorable settlement of discrete tax items. On an adjusted basis, net income attributable to IGT was $179 million. The Company reported net income per diluted share of $1.15 and earned $0.88 per diluted share on an adjusted basis.
Cash from operations was $985 million in the full-year period and capital expenditures were $557 million. The Company made two of three upfront installment payments for the new Lotto concession in Italy during the year.
Cash and cash equivalents were $294 million as of December 31, 2016, compared to $627 million as of December 31, 2015. Net debt was $7,569 million as of December 31, 2016.
Operating Segment Review
North America Gaming & Interactive Revenue for the North America Gaming & Interactive segment was $368 million compared to $378 million in the fourth quarter of 2015.
Gaming service revenue was $230 million compared to $263 million in the prior-year period, primarily driven by fewer daily active users ("DAU") at DoubleDown and a year-on-year decrease in the installed base.
Product sales rose 20% to $138 million in the quarter primarily driven by large systems sales; the contribution from a recent intellectual property settlement; and, as previously communicated, revenue associated with certain gaming machines shipped in the third quarter of 2016. The segment shipped 5,419 units in the period compared to 6,597 units in the fourth quarter of 2015, which included an additional 1,100 Canada video lottery terminals ("VLT").
Operating income for North America Gaming & Interactive was $101 million compared to $106 million in the fourth quarter of 2015. The decline is primarily due to lower DoubleDown and gaming service revenue, partially offset by higher product sales.
North America Lottery North America Lottery revenue was $284 million, up 6% from the fourth quarter of 2015.
Service revenue of $267 million increased 5%. Lottery same-store revenue rose 1.5%, supported by the third consecutive year of strong instant tickets performance. Multi-state Jackpot game performance was modestly below the prior year's level after several quarters of above-average results.
Product sales were $17 million, compared to $14 million in the fourth quarter of 2015, primarily due to increased instant ticket printing activity.
Operating income for North America Lottery increased 54% to $65 million compared to the fourth quarter of 2015. Higher revenues, in addition to lower depreciation and amortization expense associated with recent lottery contract extensions, contributed to the substantial profit growth.
International International revenue was $220 million compared to $265 million in the fourth quarter of 2015. On a constant currency basis, International revenue declined 15%.
International lottery same-store revenue increased 2.6% on broad-based geographical strength that was tempered by weakness in the United Kingdom.
International gaming service revenue rose 6% on a constant currency basis, primarily due to growth in the commercial gaming installed base, and despite approximately 600 units that were converted to product sales. The installed base grew in Eastern Europe, South Africa and Mexico.
Product sales were below the prior-year period, mostly on lottery product sales, which reflect the natural variability of that business. Gaming terminal sales declined slightly on lower unit volume. Systems sales increased double-digits year-over-year. The segment shipped a total of 4,901 gaming machines compared to 4,965 last year.
International operating income was $44 million compared to $55 million in the fourth quarter of 2015, reflecting lower revenue.
Italy Italy revenue was $449 million compared to $455 million in the fourth quarter of 2015. At constant currency, revenue was in line with the prior year. The fourth quarter comparisons are impacted by an approximately $20 million catch-up Stability Law reclassification booked in the prior-year period, in addition to one month of amortization of the new Lotto upfront concession fee.
Total Lotto wagers in the quarter were €2,141 million, 15% greater than the €1,855 million achieved in the prior-year period. Strong Lotto performance was a result of significant late number activity and high single-digit growth in 10eLotto. Excluding late numbers, Lotto wagers increased 2% over the same period last year. Instant-ticket wagers were €2,289 million versus €2,391 million in the fourth quarter of 2015.
Machine gaming service revenue was down given the prior-year Stability Law reclassification. Sports betting wagers increased 6% on growth in live wagers.
Operating income for the Italy segment was $130 million compared to $132 million in the fourth quarter of 2015. At constant currency, operating income was stable as strong Lotto growth compensated for the VAT credit in the prior year.
Overview of Consolidated Full Year 2016 Results
Reported consolidated revenue was $5,154 million compared to $4,689 million in 2015. On a pro forma, constant currency basis, consolidated revenue increased 2%, primarily reflecting growth in lottery service revenue that was partially offset by lower DoubleDown performance and gaming product sales.
During the year, the Company shipped 33,147 gaming machines worldwide and global lottery same-store revenue, excluding Italy, increased 8%. Italy lottery wagers rose 6% in 2016.
On a reported basis, adjusted EBITDA of $1,755 million was 9% greater than the 2015 level. On a pro forma, constant currency basis, adjusted EBITDA increased 3%.
Reported operating income was $660 million compared to $540 million in 2015. On a pro forma, constant currency basis, adjusted operating income was 9% greater than 2015, primarily reflecting higher lottery service revenue that was partially offset by lower lottery product sales.
Interest expense was $469 million compared to $458 million in the prior-year period.
Net income attributable to IGT was $211 million in 2016. On an adjusted basis, net income was $472 million. The Company reported earnings per diluted share of $1.05 and earned $2.33 per diluted share on an adjusted basis in 2016.
Other Developments
In a separate news release issued today, the Company announced that Heather J. McGregor was appointed as an independent director to its board of directors.
Additionally, the Company's board of directors has declared a quarterly cash dividend of $0.20 per ordinary share. The dividend is payable on April 6, 2017 to all shareholders of record as of the close of business on March 23, 2017.
Outlook
The Company currently expects to achieve adjusted EBITDA of $1,680-$1,760 million for the full year 2017 period, as operational growth compensates for the Powerball and late numbers benefits recorded in 2016, in addition to new Lotto concession impacts in 2017.
Maintenance capital expenditures are expected to be $525-$575 million, including approximately $100 million related to the timing of the new Florida Lottery contract. Growth capital expenditures will be approximately $100 million.
The Italy Lotto renewal will require an outlay of approximately $320 million ($195 million net, after minority partner contribution), relating to the final upfront concession payment and associated network and infrastructure upgrades. Net debt is expected to be $7,600-$7,800 million at the end of 2017.
The Company's outlook assumes an average euro/dollar exchange rate of 1.10.
Conference Call and Webcast
Today, at 8:00 a.m. EST / 1:00 p.m. GMT / 2:00 p.m. CET, management will host a conference call to present the fourth quarter and full year 2016 results. Listeners may access a live webcast of the conference call along with accompanying slides under "News, Events and Presentations" on IGT's Investor Relations website at www.IGT.com. A replay of the webcast will be available on the website following the live event. To listen by telephone, the dial-in number is +44 (0) 20 3427 1904 for participants in the United Kingdom and +1-646-254-3362 for listeners outside the United Kingdom. The conference ID/confirmation code is 6623346. A telephone replay of the call will be available for one week at +44 (0) 20 3427 0598 or +1-347-366-9565 using the conference ID/confirmation code 6623346.
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 Interactive 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 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 International Game Technology PLC 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 are subject to various risks and uncertainties, many of which are outside International Game Technology PLC'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 the forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include (but are not limited to) the possibility that the businesses of International Game Technology (Nevada) and GTECH S.p.A. will not be integrated successfully, or that the combined companies will not realize estimated cost savings, synergies, growth or other anticipated benefits or that such benefits may take longer to realize than expected; unanticipated costs of integration of International Game Technology (Nevada) and GTECH S.p.A.; the possibility that International Game Technology PLC will be unable to pay future dividends to shareholders or that the amount of such dividends may be less than anticipated; the possibility that International Game Technology PLC may not obtain its anticipated financial results in one or more future periods; reductions in customer spending; a slowdown in customer payments and changes in customer demand for products and services as a result of changing economic conditions or otherwise; unanticipated changes relating to competitive factors in the industries in which International Game Technology PLC operates; International Game Technology PLC's ability to hire and retain key personnel; the impact of the consummation of the business combination on relationships with third parties, including customers, employees and competitors; International Game Technology PLC's ability to attract new customers and retain existing customers in the manner anticipated; reliance on and integration of information technology systems; changes in legislation or governmental regulations affecting International Game Technology PLC, including as a consequence of the announced withdrawal of the U.K. from the EU; international, national or local economic, social or political conditions that could adversely affect International Game Technology PLC or its customers; conditions in the credit markets; changes in the top management team; risks associated with assumptions International Game Technology PLC makes in connection with its critical accounting estimates; the resolution of pending and potential future legal, regulatory or tax proceedings and investigations; and International Game Technology PLC's international operations, which are subject to the risks of currency fluctuations and foreign exchange controls. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties that affect International Game Technology PLC's business, including those described in International Game Technology PLC's annual report on Form 20-F for the financial year ended December 31, 2015 and other documents filed from time to time with the Securities and Exchange Commission (the "SEC"), which are available on the SEC website at www.sec.gov and on the investor relations section of International Game Technology PLC's website at www.IGT.com. Except as required under applicable law, International Game Technology PLC does not assume any obligation to update the forward-looking statements. Nothing in this news release is intended, or is to be construed, as a profit forecast or to be interpreted to mean that earnings per International Game Technology PLC share for the current or any future financial years will necessarily match or exceed the historical published earnings per International Game Technology PLC share, as applicable. All forward-looking statements contained in this news release are qualified in their entirety by this cautionary statement. All subsequent written or oral forward-looking statements attributable to International Game Technology PLC, or persons acting on its behalf, are expressly qualified in their entirety by this cautionary statement.
Contact: Robert K. Vincent, 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 Simone Cantagallo, +39 06 51899030; for Italian media inquiries
|
International Game Technology PLC | ||||
|
Condensed Consolidated Statements of Operations | ||||
|
($ and shares in thousands, except per share data) | ||||
|
Unaudited | ||||
|
For the three months ended | ||||
|
December 31, | ||||
|
2016 |
2015 | |||
|
Service revenue |
1,061,669 |
1,109,029 | ||
|
Product sales |
259,547 |
255,928 | ||
|
Total revenue |
1,321,216 |
1,364,957 | ||
|
Cost of services |
641,649 |
674,302 | ||
|
Cost of sales |
179,240 |
180,021 | ||
|
Selling, general and administrative |
236,547 |
242,997 | ||
|
Research and development |
87,182 |
84,552 | ||
|
Restructuring expense |
6,420 |
35,326 | ||
|
Impairment loss |
31,162 |
12,497 | ||
|
Transaction expense, net |
1,030 |
3,701 | ||
|
Total operating expenses |
1,183,230 |
1,233,396 | ||
|
Operating income |
137,986 |
131,561 | ||
|
Interest income |
2,553 |
4,765 | ||
|
Other income (expense), net |
23,359 |
(2,074) | ||
|
Foreign exchange gain, net |
195,587 |
91,105 | ||
|
Interest expense |
(115,520) |
(119,334) | ||
|
Total non-operating income (expenses) |
105,979 |
(25,538) | ||
|
Income before provision for income taxes |
243,965 |
106,023 | ||
|
(Benefit from) provision for income taxes |
(5,387) |
22,990 | ||
|
Net income |
249,352 |
83,033 | ||
|
Less: Net income attributable to non-controlling interests |
16,034 |
9,533 | ||
|
Net income attributable to IGT PLC |
233,318 |
73,500 | ||
|
Net income attributable to IGT PLC per common share - basic |
1.15 |
0.37 | ||
|
Net income attributable to IGT PLC per common share - diluted |
1.15 |
0.37 | ||
|
Weighted-average shares - basic |
202,324 |
199,862 | ||
|
Weighted-average shares - diluted |
203,146 |
200,731 | ||
|
International Game Technology PLC | ||||
|
Condensed Consolidated Statements of Operations | ||||
|
($ and shares in thousands, except per share data) | ||||
|
Unaudited | ||||
|
For the year ended | ||||
|
December 31, | ||||
|
2016 |
2015 | |||
|
Service revenue |
4,375,586 |
3,977,693 | ||
|
Product sales |
778,310 |
711,363 | ||
|
Total revenue |
5,153,896 |
4,689,056 | ||
|
Cost of services |
2,553,479 |
2,417,315 | ||
|
Cost of sales |
582,358 |
520,343 | ||
|
Selling, general and administrative |
945,824 |
795,252 | ||
|
Research and development |
343,531 |
277,401 | ||
|
Restructuring expense |
27,934 |
76,896 | ||
|
Impairment loss |
37,744 |
12,497 | ||
|
Transaction expense, net |
2,590 |
49,396 | ||
|
Total operating expenses |
4,493,460 |
4,149,100 | ||
|
Operating income |
660,436 |
539,956 | ||
|
Interest income |
12,840 |
17,681 | ||
|
Other income (expense), net |
18,365 |
(122,295) | ||
|
Foreign exchange gain, net |
101,040 |
5,611 | ||
|
Interest expense |
(469,268) |
(457,984) | ||
|
Total non-operating expenses |
(337,023) |
(556,987) | ||
|
Income (loss) before provision for income taxes |
323,413 |
(17,031) | ||
|
Provision for income taxes |
59,206 |
38,896 | ||
|
Net income (loss) |
264,207 |
(55,927) | ||
|
Less: Net income attributable to non-controlling interests |
52,870 |
19,647 | ||
|
Net income (loss) attributable to IGT PLC |
211,337 |
(75,574) | ||
|
Net income (loss) attributable to IGT PLC per common share - basic |
1.05 |
(0.39) | ||
|
Net income (loss) attributable to IGT PLC per common share - diluted |
1.05 |
(0.39) | ||
|
Weighted-average shares - basic |
201,511 |
192,398 | ||
|
Weighted-average shares - diluted |
202,214 |
192,398 | ||
|
International Game Technology PLC | |||
|
Condensed Consolidated Balance Sheets | |||
|
($ thousands) | |||
|
Unaudited | |||
|
December 31, | |||
|
2016 |
2015 | ||
|
ASSETS |
|||
|
Current assets: |
|||
|
Cash and cash equivalents |
294,094 |
627,484 | |
|
Restricted cash and investments |
247,222 |
169,101 | |
|
Trade and other receivables, net |
947,237 |
959,592 | |
|
Inventories |
347,494 |
269,982 | |
|
Other current assets |
424,727 |
423,701 | |
|
Income taxes receivable |
28,792 |
35,514 | |
|
Total current assets |
2,289,566 |
2,485,374 | |
|
Systems, equipment and other assets related to contracts, net |
1,199,674 |
1,127,518 | |
|
Property, plant and equipment, net |
357,841 |
349,677 | |
|
Goodwill, net |
6,810,012 |
6,830,499 | |
|
Intangible assets, net |
2,874,031 |
3,335,633 | |
|
Other non-current assets |
1,497,662 |
937,917 | |
|
Deferred income taxes |
31,376 |
48,074 | |
|
Total non-current assets |
12,770,596 |
12,629,318 | |
|
Total Assets |
15,060,162 |
15,114,692 | |
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||
|
Current liabilities: |
|||
|
Accounts payable |
1,216,079 |
1,057,860 | |
|
Other current liabilities |
1,097,045 |
922,586 | |
|
Current portion of long-term debt |
77 |
160 | |
|
Income taxes payable |
28,590 |
30,020 | |
|
Total current liabilities |
2,341,791 |
2,010,626 | |
|
Long-term debt, less current portion |
7,863,085 |
8,334,013 | |
|
Deferred income taxes |
761,924 |
941,418 | |
|
Other non-current liabilities |
444,556 |
462,493 | |
|
Total non-current liabilities |
9,069,565 |
9,737,924 | |
|
Total Liabilities |
11,411,356 |
11,748,550 | |
|
Commitments and contingencies |
- |
- | |
|
Shareholders' and mezzanine equity |
3,648,806 |
3,366,142 | |
|
Total liabilities and shareholders' equity |
15,060,162 |
15,114,692 | |
|
International Game Technology PLC | ||||
|
Consolidated Statements of Cash Flows | ||||
|
($ thousands) | ||||
|
Unaudited | ||||
|
For the year ended December 31, | ||||
|
2016 |
2015 | |||
|
Operating activities |
||||
|
Net income (loss) |
264,207 |
(55,927) | ||
|
Adjustments for: |
||||
|
Amortization |
492,021 |
410,264 | ||
|
Depreciation |
390,448 |
369,564 | ||
|
Amortization of upfront payments to customers |
116,980 |
107,812 | ||
|
Impairment loss |
37,744 |
12,497 | ||
|
Stock-based compensation expense |
26,346 |
36,067 | ||
|
Debt issuance cost amortization |
18,347 |
40,366 | ||
|
Foreign exchange gain, net |
(101,040) |
(5,611) | ||
|
Loss on extinguishment of debt |
- |
73,806 | ||
|
Other, net |
(142) |
50,626 | ||
|
Cash flows before changes in operating assets and liabilities |
1,244,911 |
1,039,464 | ||
|
Changes in operating assets and liabilities: |
||||
|
Trade and other receivables |
(23,758) |
83,218 | ||
|
Inventories |
(61,026) |
72 | ||
|
Accounts payable |
(27,123) |
(53,762) | ||
|
Other assets and liabilities |
(147,661) |
(282,995) | ||
|
Net cash flows from operating activities |
985,343 |
785,997 | ||
|
Investing activities |
||||
|
Upfront payments to customers |
(665,260) |
- | ||
|
Capital expenditures |
(557,238) |
(402,634) | ||
|
Purchases of jackpot annuity investments |
(2,596) |
(6,799) | ||
|
Proceeds from jackpot annuity investments |
16,565 |
36,215 | ||
|
Proceeds from sale of assets |
185,798 |
230,587 | ||
|
Acquisition of IGT, net of cash acquired |
- |
(3,241,415) | ||
|
Other |
2,735 |
22,523 | ||
|
Net cash flows used in investing activities |
(1,019,996) |
(3,361,523) | ||
|
Financing activities |
||||
|
Principal payments on long-term debt |
(357,513) |
(2,714,867) | ||
|
Dividends paid |
(161,179) |
(209,589) | ||
|
Return of capital - non-controlling interest |
(35,407) |
(30,568) | ||
|
Dividends paid - non-controlling interest |
(32,717) |
(29,156) | ||
|
Debt issuance costs paid |
(10,825) |
(84,859) | ||
|
Payments for accelerated stock awards |
(3,489) |
(14,867) | ||
|
Proceeds from stock options |
12,699 |
10,672 | ||
|
Net receipts from (payments of) financial liabilities |
30,595 |
(21,539) | ||
|
Capital increase - non-controlling interest |
256,455 |
9,049 | ||
|
Payments in connection with note consents |
- |
(29,022) | ||
|
Payments on bridge facility |
- |
(51,409) | ||
|
Payments in connection with the early extinguishment of debt |
- |
(79,526) | ||
|
Payments to withdrawing shareholders |
- |
(407,759) | ||
|
Proceeds from interest rate swaps |
- |
67,773 | ||
|
Proceeds from issuance of long-term debt |
- |
6,521,991 | ||
|
Other |
(10,758) |
(16,158) | ||
|
Net cash flows (used in) provided by financing activities |
(312,139) |
2,920,166 | ||
|
Net (decrease) increase in cash and cash equivalents |
(346,792) |
344,640 | ||
|
Effect of exchange rate changes on cash |
13,402 |
(34,262) | ||
|
Cash and cash equivalents at the beginning of the period |
627,484 |
317,106 | ||
|
Cash and cash equivalents at the end of the period |
294,094 |
627,484 | ||
|
Supplemental Cash Flow Information: |
||||
|
Interest paid |
(450,655) |
(365,479) | ||
|
Income taxes paid |
(183,278) |
(199,195) | ||
|
International Game Technology PLC | |||
|
Net Debt | |||
|
($ thousands) | |||
|
December 31, | |||
|
2016 |
2015 | ||
|
Long-term debt, less current portion |
|||
|
6.250% Senior Secured Notes due 2022 |
1,472,150 |
1,468,875 | |
|
6.500% Senior Secured Notes due 2025 |
1,085,537 |
1,084,249 | |
|
4.750% Senior Secured Notes due 2023 |
884,917 |
912,418 | |
|
4.125% Senior Secured Notes due 2020 |
730,465 |
752,212 | |
|
5.625% Senior Secured Notes due 2020 |
593,954 |
592,245 | |
|
7.500% Senior Secured Notes due 2019 |
521,894 |
530,009 | |
|
6.625% Senior Secured Notes due 2018 |
521,556 |
533,915 | |
|
4.750% Senior Secured Notes due 2020 |
509,050 |
520,649 | |
|
5.500% Senior Secured Notes due 2020 |
126,294 |
126,833 | |
|
5.350% Senior Secured Notes due 2023 |
61,187 |
61,303 | |
|
Senior Secured Notes |
6,507,004 |
6,582,708 | |
|
Term Loan Facilities due 2019 |
839,552 |
866,785 | |
|
Revolving Credit Facilities due 2021 |
516,529 |
834,968 | |
|
Capital Securities |
- |
49,472 | |
|
Other |
- |
80 | |
|
Long-term debt, less current portion |
7,863,085 |
8,334,013 | |
|
Current portion of long-term debt |
77 |
160 | |
|
Total debt |
7,863,162 |
8,334,173 | |
|
Cash and cash equivalents |
294,094 |
627,484 | |
|
Net debt |
7,569,068 |
7,706,689 | |
|
International Game Technology PLC | ||||
|
Adjusted EBITDA and Free Cash Flow | ||||
|
Reconciliations of Non-GAAP Financial Measures | ||||
|
($ thousands) | ||||
|
For the three months ended | ||||
|
December 31, | ||||
|
2016 |
2015 | |||
|
Net income |
249,352 |
83,033 | ||
|
(Benefit from) provision for income taxes |
(5,387) |
22,990 | ||
|
Non-operating (income) expenses |
(105,979) |
25,538 | ||
|
Amortization |
114,858 |
124,000 | ||
|
Depreciation |
97,164 |
109,888 | ||
|
Amortization of upfront payments to customers |
31,820 |
26,634 | ||
|
Impairment loss |
31,162 |
12,497 | ||
|
Restructuring expense |
6,420 |
35,326 | ||
|
Stock-based compensation expense |
1,844 |
3,335 | ||
|
Transaction expense, net |
1,030 |
3,701 | ||
|
Non-cash purchase accounting (excluding D&A) |
(126) |
1,865 | ||
|
Adjusted EBITDA |
422,158 |
448,807 | ||
|
Cash flows from operating activities |
364,346 |
315,003 | ||
|
Capital expenditures |
(185,741) |
(113,891) | ||
|
Upfront payments to customers |
(274,870) |
- | ||
|
Free Cash Flow |
(96,265) |
201,112 | ||
|
International Game Technology PLC | ||||||||
|
Adjusted EBITDA and Free Cash Flow | ||||||||
|
Reconciliations of Non-GAAP Financial Measures | ||||||||
|
($ thousands) | ||||||||
|
For the year ended | ||||||||
|
December 31, 2016 |
December 31, 2015 | |||||||
|
As Reported |
Legacy IGT |
Pro Forma | ||||||
|
Net income (loss) |
264,207 |
(55,927) |
(13,085) |
(69,012) | ||||
|
Provision for (benefit from) income taxes |
59,206 |
38,896 |
(4,126) |
34,770 | ||||
|
Non-operating expenses |
337,023 |
556,987 |
10,057 |
567,044 | ||||
|
Amortization |
492,021 |
410,264 |
6,107 |
416,371 | ||||
|
Depreciation |
390,448 |
369,564 |
28,960 |
398,524 | ||||
|
Amortization of upfront payments to customers |
116,980 |
107,812 |
3,556 |
111,368 | ||||
|
Impairment loss |
37,744 |
12,497 |
6,100 |
18,597 | ||||
|
Restructuring expense |
27,934 |
76,896 |
- |
76,896 | ||||
|
Stock-based compensation expense |
26,346 |
36,067 |
5,951 |
42,018 | ||||
|
Transaction expense, net |
2,590 |
34,529 |
18,782 |
53,311 | ||||
|
Non-cash purchase accounting (excluding D&A) |
795 |
23,099 |
- |
23,099 | ||||
|
Other |
- |
- |
30,956 |
30,956 | ||||
|
Adjusted EBITDA |
1,755,294 |
1,610,684 |
93,258 |
1,703,942 | ||||
|
Cash flows from operating activities |
985,343 |
785,997 |
82,698 |
868,695 | ||||
|
Capital expenditures |
(557,238) |
(402,634) |
(26,096) |
(428,730) | ||||
|
Upfront payments to customers |
(665,260) |
- |
- |
- | ||||
|
Free Cash Flow |
(237,155) |
383,363 |
56,602 |
439,965 | ||||
|
International Game Technology PLC | ||||||||||||
|
Condensed Consolidated Statement of Operations | ||||||||||||
|
Reconciliation of Non-GAAP Financial Measures | ||||||||||||
|
($ and shares in thousands, except per share data) | ||||||||||||
|
Adjustments |
||||||||||||
|
Q4 2016 |
Impairment/ |
Transaction |
Q4 2016 | |||||||||
|
As |
Purchase |
Foreign |
Restructuring |
(Income) |
As | |||||||
|
Reported |
Accounting |
Exchange |
Expense |
Expense |
Adjusted | |||||||
|
Total revenue |
1,321,216 |
244 |
- |
- |
- |
1,321,460 | ||||||
|
Cost of services |
641,649 |
(44,186) |
- |
- |
- |
597,463 | ||||||
|
Cost of sales |
179,240 |
(29,845) |
- |
- |
- |
149,395 | ||||||
|
Selling, general and administrative |
236,547 |
(29,468) |
- |
- |
- |
207,079 | ||||||
|
Research and development |
87,182 |
(277) |
- |
- |
- |
86,905 | ||||||
|
Restructuring expense |
6,420 |
- |
- |
(6,420) |
- |
- | ||||||
|
Impairment loss |
31,162 |
(30,000) |
- |
(1,162) |
- |
- | ||||||
|
Transaction expense, net |
1,030 |
- |
- |
- |
(1,030) |
- | ||||||
|
Total operating expenses |
1,183,230 |
(133,776) |
- |
(7,582) |
(1,030) |
1,040,842 | ||||||
|
Operating income |
137,986 |
134,020 |
- |
7,582 |
1,030 |
280,618 | ||||||
|
Foreign exchange gain, net |
195,587 |
- |
(195,587) |
- |
- |
- | ||||||
|
Other income, net |
23,359 |
11,672 |
- |
- |
- |
35,031 | ||||||
|
Interest expense, net |
(112,967) |
2,084 |
- |
- |
- |
(110,883) | ||||||
|
Total non-operating income (expenses) |
105,979 |
13,756 |
(195,587) |
- |
- |
(75,852) | ||||||
|
Income before provision for income taxes |
243,965 |
147,776 |
(195,587) |
7,582 |
1,030 |
204,766 | ||||||
|
(Benefit from) provision for income taxes (a) |
(5,387) |
51,662 |
(50,323) |
13,230 |
356 |
9,538 | ||||||
|
Net income |
249,352 |
96,114 |
(145,264) |
(5,648) |
674 |
195,228 | ||||||
|
Less: Net income attributable to non-controlling interests |
16,034 |
26 |
- |
- |
- |
16,060 | ||||||
|
Net income attributable to IGT PLC |
233,318 |
96,088 |
(145,264) |
(5,648) |
674 |
179,168 | ||||||
|
Net income per common share - diluted |
1.15 |
0.88 | ||||||||||
|
Weighted-average shares - diluted |
203,146 |
203,146 | ||||||||||
|
(a) Provision for income taxes was determined based on the statutory tax rate in effect in the respective jurisdiction where the adjustment originated. |
|
International Game Technology PLC | |||||||||||||
|
Condensed Consolidated Statement of Operations | |||||||||||||
|
Reconciliation of Non-GAAP Financial Measures | |||||||||||||
|
($ and shares in thousands, except per share data) | |||||||||||||
|
Adjustments |
|||||||||||||
|
Q4 2015 |
Impairment/ |
Transaction |
Q4 2015 |
||||||||||
|
As |
Purchase |
Foreign |
Restructuring |
and Refinancing |
As |
||||||||
|
Reported |
Accounting |
Exchange |
Expense |
Expense |
Adjusted |
||||||||
|
Total revenue |
1,364,957 |
1,622 |
- |
- |
- |
1,366,579 |
|||||||
|
Cost of services |
674,302 |
(44,064) |
- |
- |
- |
630,238 |
|||||||
|
Cost of sales |
180,021 |
(29,897) |
- |
- |
- |
150,124 |
|||||||
|
Selling, general and administrative |
242,997 |
(34,295) |
- |
- |
- |
208,702 |
|||||||
|
Research and development |
84,552 |
(466) |
- |
- |
- |
84,086 |
|||||||
|
Restructuring expense |
35,326 |
- |
- |
(35,326) |
- |
- |
|||||||
|
Impairment loss |
12,497 |
- |
- |
(12,497) |
- |
- |
|||||||
|
Transaction expense, net |
3,701 |
- |
- |
- |
(3,701) |
- |
|||||||
|
Total operating expenses |
1,233,396 |
(108,722) |
- |
(47,823) |
(3,701) |
1,073,150 |
|||||||
|
Operating income |
131,561 |
110,344 |
- |
47,823 |
3,701 |
293,429 |
|||||||
|
Interest expense, net |
(114,569) |
3,531 |
- |
- |
- |
(111,038) |
|||||||
|
Other (expense) income, net |
(2,074) |
13,540 |
- |
- |
- |
11,466 |
|||||||
|
Foreign exchange gain, net |
91,105 |
- |
(91,105) |
- |
- |
- |
|||||||
|
Total non-operating expenses |
(25,538) |
17,071 |
(91,105) |
- |
- |
(99,572) |
|||||||
|
Income before provision for income taxes |
106,023 |
127,415 |
(91,105) |
47,823 |
3,701 |
193,857 |
|||||||
|
Provision for income taxes (a) |
22,990 |
40,283 |
(22,895) |
16,165 |
414 |
56,957 |
|||||||
|
Net income |
83,033 |
87,132 |
(68,210) |
31,658 |
3,287 |
136,900 |
|||||||
|
Less: Net income attributable to non-controlling interests |
9,533 |
25 |
- |
- |
- |
9,558 |
|||||||
|
Net income attributable to IGT PLC |
73,500 |
87,107 |
(68,210) |
31,658 |
3,287 |
127,342 |
|||||||
|
Net income per common share - diluted |
0.37 |
0.63 |
|||||||||||
|
Weighted-average shares - diluted |
200,731 |
200,731 |
|||||||||||
|
(a) Provision for income taxes was determined based on the statutory tax rate in effect in the respective jurisdiction where the adjustment originated. |
|
International Game Technology PLC | ||||||||||||
|
Condensed Consolidated Statement of Operations | ||||||||||||
|
Reconciliation of Non-GAAP Financial Measures | ||||||||||||
|
($ and shares in thousands, except per share data) | ||||||||||||
|
Year to date |
Adjustments |
Year to date | ||||||||||
|
December 2016 |
Impairment/ |
December 2016 | ||||||||||
|
As |
Purchase |
Foreign |
Restructuring |
Transaction |
As | |||||||
|
Reported |
Accounting |
Exchange |
Expense |
Expense |
Adjusted | |||||||
|
Total revenue |
5,153,896 |
1,576 |
- |
- |
- |
5,155,472 | ||||||
|
Cost of services |
2,553,479 |
(181,552) |
- |
- |
- |
2,371,927 | ||||||
|
Cost of sales |
582,358 |
(118,936) |
- |
- |
- |
463,422 | ||||||
|
Selling, general and administrative |
945,824 |
(134,325) |
- |
- |
- |
811,499 | ||||||
|
Research and development |
343,531 |
(1,736) |
- |
- |
- |
341,795 | ||||||
|
Restructuring expense |
27,934 |
- |
- |
(27,934) |
- |
- | ||||||
|
Impairment loss |
37,744 |
(30,000) |
- |
(7,744) |
- |
- | ||||||
|
Transaction expense, net |
2,590 |
- |
- |
- |
(2,590) |
- | ||||||
|
Total operating expenses |
4,493,460 |
(466,549) |
- |
(35,678) |
(2,590) |
3,988,643 | ||||||
|
Operating income |
660,436 |
468,125 |
- |
35,678 |
2,590 |
1,166,829 | ||||||
|
Foreign exchange gain, net |
101,040 |
- |
(101,040) |
- |
- |
- | ||||||
|
Other income, net |
18,365 |
15,553 |
- |
- |
- |
33,918 | ||||||
|
Interest expense, net |
(456,428) |
8,231 |
- |
- |
- |
(448,197) | ||||||
|
Total non-operating expenses |
(337,023) |
23,784 |
(101,040) |
- |
- |
(414,279) | ||||||
|
Income before provision for income taxes |
323,413 |
491,909 |
(101,040) |
35,678 |
2,590 |
752,550 | ||||||
|
Provision for income taxes (a) |
59,206 |
174,000 |
(26,892) |
20,948 |
658 |
227,920 | ||||||
|
Net income |
264,207 |
317,909 |
(74,148) |
14,730 |
1,932 |
524,630 | ||||||
|
Less: Net income attributable to non-controlling interests |
52,870 |
102 |
- |
- |
- |
52,972 | ||||||
|
Net income attributable to IGT PLC |
211,337 |
317,807 |
(74,148) |
14,730 |
1,932 |
471,658 | ||||||
|
Net income per common share - diluted |
1.05 |
2.33 | ||||||||||
|
Weighted-average shares - diluted |
202,214 |
202,214 | ||||||||||
|
(a) Provision for income taxes was determined based on the statutory tax rate in effect in the respective jurisdiction where the adjustment originated. |
|
International Game Technology PLC | ||||||||||||||||
|
Condensed Consolidated Statement of Operations | ||||||||||||||||
|
Reconciliation of Non-GAAP Financial Measures | ||||||||||||||||
|
($ and shares in thousands, except per share data) | ||||||||||||||||
|
Year to date |
Adjustments |
Year to date |
Year to date | |||||||||||||
|
December 2015 |
Impairment/ |
Transaction |
December 2015 |
December 2015 | ||||||||||||
|
As |
Purchase |
Foreign |
Restructuring |
and Refinancing |
As |
Pro Forma |
Pro forma | |||||||||
|
Reported |
Accounting |
Exchange |
Expense |
Expense |
Adjusted |
Adjustments |
and Adjusted | |||||||||
|
Total revenue |
4,689,056 |
15,541 |
- |
- |
- |
4,704,597 |
399,387 |
5,103,984 | ||||||||
|
Cost of services |
2,417,315 |
(148,750) |
- |
- |
- |
2,268,565 |
113,306 |
2,381,871 | ||||||||
|
Cost of sales |
520,343 |
(96,661) |
- |
- |
- |
423,682 |
63,355 |
487,037 | ||||||||
|
Selling, general and administrative |
795,252 |
(101,319) |
- |
- |
- |
693,933 |
134,166 |
828,099 | ||||||||
|
Research and development |
277,401 |
(2,159) |
- |
- |
- |
275,242 |
62,760 |
338,002 | ||||||||
|
Restructuring expense |
76,896 |
- |
- |
(76,896) |
- |
- |
- |
- | ||||||||
|
Impairment loss |
12,497 |
- |
- |
(12,497) |
- |
- |
- |
- | ||||||||
|
Transaction expense, net |
49,396 |
- |
- |
- |
(49,396) |
- |
- |
- | ||||||||
|
Total operating expenses |
4,149,100 |
(348,889) |
- |
(89,393) |
(49,396) |
3,661,422 |
373,587 |
4,035,009 | ||||||||
|
Operating income |
539,956 |
364,430 |
- |
89,393 |
49,396 |
1,043,175 |
25,800 |
1,068,975 | ||||||||
|
Interest expense, net |
(440,303) |
3,530 |
- |
- |
- |
(436,773) |
||||||||||
|
Other (expense) income, net |
(122,295) |
19,581 |
- |
- |
117,877 |
15,163 |
||||||||||
|
Foreign exchange gain, net |
5,611 |
- |
(5,611) |
- |
- |
- |
||||||||||
|
Total non-operating expenses |
(556,987) |
23,111 |
(5,611) |
- |
117,877 |
(421,610) |
||||||||||
|
(Loss) income before provision for income taxes |
(17,031) |
387,541 |
(5,611) |
89,393 |
167,273 |
621,565 |
||||||||||
|
Provision for income taxes (a) |
38,896 |
132,298 |
(3,127) |
29,165 |
41,529 |
238,761 |
||||||||||
|
Net (loss) income |
(55,927) |
255,243 |
(2,484) |
60,228 |
125,744 |
382,804 |
||||||||||
|
Less: Net income attributable to non-controlling interests |
19,647 |
102 |
- |
- |
- |
19,749 |
||||||||||
|
Net (loss) income attributable to IGT PLC |
(75,574) |
255,141 |
(2,484) |
60,228 |
125,744 |
363,055 |
||||||||||
|
Net (loss) income per common share - diluted |
(0.39) |
1.88 |
||||||||||||||
|
Weighted-average shares - diluted |
192,398 |
193,559 |
||||||||||||||
|
(a) Provision for income taxes was determined based on the statutory tax rate in effect in the respective jurisdiction where the adjustment originated. |
|
International Game Technology PLC Segment Performance (Pro forma) | |||||||||||||
|
Revenue Detail | |||||||||||||
|
($ millions) | |||||||||||||
|
INTERNATIONAL GAME TECHNOLOGY PLC |
Quarter Change |
YTD Change | |||||||||||
|
2015 |
2016 |
Percentage |
Constant FX |
Percentage |
Constant FX | ||||||||
|
Q4 |
YTD |
Q4 |
YTD |
Q4 |
Q4 |
YTD |
YTD | ||||||
|
Gaming |
Total Revenue |
762 |
2,725 |
730 |
2,667 |
-4.3% |
-3.3% |
-2.2% |
-1.4% | ||||
|
Gaming Services |
547 |
2,036 |
492 |
1,976 |
-9.9% |
-8.5% |
-3.0% |
-1.9% | |||||
|
Terminal |
359 |
1,343 |
325 |
1,282 |
-9.6% |
-8.6% |
-4.6% |
-3.7% | |||||
|
Social (DDI) |
84 |
317 |
61 |
279 |
-27.6% |
-27.4% |
-12.0% |
-12.0% | |||||
|
Other |
104 |
375 |
107 |
415 |
3.1% |
6.8% |
10.5% |
13.1% | |||||
|
Product Sales |
216 |
690 |
237 |
691 |
10.0% |
9.9% |
0.2% |
0.2% | |||||
|
Terminal |
154 |
482 |
157 |
449 |
1.9% |
1.9% |
-6.7% |
-6.8% | |||||
|
Other |
62 |
208 |
81 |
242 |
30.0% |
29.6% |
16.4% |
16.5% | |||||
|
Lottery |
Total Revenue |
521 |
2,046 |
514 |
2,170 |
-1.3% |
-0.8% |
6.1% |
6.6% | ||||
|
Lottery Services |
484 |
1,930 |
494 |
2,086 |
1.9% |
2.5% |
8.0% |
8.6% | |||||
|
FM/Concessions |
430 |
1,717 |
444 |
1,829 |
3.1% |
4.5% |
6.5% |
7.3% | |||||
|
LMA |
35 |
128 |
37 |
174 |
5.0% |
5.0% |
36.3% |
36.3% | |||||
|
Other Services |
19 |
85 |
13 |
82 |
-30.8% |
-49.8% |
-3.9% |
-6.9% | |||||
|
Product Sales |
36 |
115 |
20 |
85 |
-44.6% |
-44.1% |
-26.5% |
-26.2% | |||||
|
Terminal |
15 |
41 |
1 |
11 |
-96.5% |
-96.5% |
-74.4% |
-74.1% | |||||
|
Systems/Other |
22 |
74 |
20 |
74 |
-9.2% |
-8.3% |
0.2% |
0.6% | |||||
|
Other |
Total Revenue |
82 |
318 |
78 |
317 |
-4.7% |
-4.1% |
-0.2% |
1.1% | ||||
|
Service Revenue |
78 |
312 |
76 |
314 |
-2.8% |
-2.7% |
0.8% |
1.8% | |||||
|
Product Sales |
4 |
5 |
2 |
3 |
-43.5% |
-32.1% |
-53.2% |
-42.2% | |||||
|
Consolidated |
Revenue |
1,365 |
5,088 |
1,321 |
5,154 |
-3.2% |
-2.4% |
1.3% |
2.0% | ||||
|
Operating Income: |
|||||||||||||
|
Segment Total |
336 |
1,245 |
340 |
1,374 |
1.0% |
1.5% |
10.4% |
10.9% | |||||
|
Purchase Accounting |
(110) |
(372) |
(134) |
(468) |
21.5% |
21.6% |
25.9% |
26.0% | |||||
|
Corporate Support |
(94) |
(340) |
(68) |
(246) |
-28.3% |
-26.3% |
-27.7% |
-26.2% | |||||
|
Total |
132 |
533 |
138 |
660 |
4.9% |
4.6% |
23.9% |
23.9% | |||||
|
NORTH AMERICA GAMING & INTERACTIVE |
Quarter Change |
YTD Change | |||||||||||
|
2015 |
2016 |
Percentage |
Constant FX |
Percentage |
Constant FX | ||||||||
|
Q4 |
YTD |
Q4 |
YTD |
Q4 |
Q4 |
YTD |
YTD | ||||||
|
Gaming |
Total Revenue |
378 |
1,413 |
368 |
1,373 |
-2.5% |
-2.6% |
-2.8% |
-2.7% | ||||
|
Gaming Services |
263 |
1,025 |
230 |
975 |
-12.3% |
-12.2% |
-4.8% |
-4.8% | |||||
|
Terminal |
137 |
571 |
126 |
525 |
-7.8% |
-7.8% |
-8.1% |
-8.0% | |||||
|
Social (DDI) |
84 |
317 |
61 |
279 |
-27.6% |
-27.4% |
-12.0% |
-12.0% | |||||
|
Other |
42 |
137 |
44 |
171 |
3.2% |
3.2% |
25.3% |
25.3% | |||||
|
Product Sales |
115 |
388 |
138 |
398 |
19.8% |
19.5% |
2.7% |
2.8% | |||||
|
Terminal |
80 |
267 |
85 |
250 |
6.4% |
6.0% |
-6.4% |
-6.4% | |||||
|
Other |
35 |
121 |
53 |
148 |
50.2% |
50.2% |
23.0% |
23.2% | |||||
|
Total |
Revenue |
378 |
1,413 |
368 |
1,373 |
-2.5% |
-2.6% |
-2.8% |
-2.7% | ||||
|
Operating Income |
106 |
335 |
101 |
344 |
-5.3% |
-8.6% |
2.8% |
-0.7% | |||||
|
NORTH AMERICA LOTTERY |
Quarter Change |
YTD Change | |||||||||||
|
2015 |
2016 |
Percentage |
Constant FX |
Percentage |
Constant FX | ||||||||
|
Q4 |
YTD |
Q4 |
YTD |
Q4 |
Q4 |
YTD |
YTD | ||||||
|
Gaming |
Total Revenue |
37 |
149 |
35 |
146 |
-7.0% |
-6.9% |
-1.6% |
-1.5% | ||||
|
Gaming Services |
37 |
148 |
35 |
146 |
-5.9% |
-5.9% |
-1.0% |
-0.9% | |||||
|
Terminal |
25 |
103 |
24 |
100 |
-5.6% |
-5.6% |
-2.8% |
-2.8% | |||||
|
Social (DDI) |
0 |
0 |
0 |
0 |
0.0% |
0.0% |
0.0% |
0.0% | |||||
|
Other |
12 |
45 |
11 |
46 |
-6.6% |
-6.4% |
3.2% |
3.5% | |||||
|
Product Sales |
0 |
1 |
(0) |
0 |
0.0% |
0.0% |
-86.9% |
-86.6% | |||||
|
Terminal |
(0) |
0 |
0 |
(0) |
0.0% |
0.0% |
0.0% |
0.0% | |||||
|
Other |
0 |
1 |
(0) |
0 |
0.0% |
0.0% |
-84.4% |
-84.1% | |||||
|
Lottery |
Total Revenue |
232 |
916 |
250 |
1,047 |
7.7% |
7.7% |
14.3% |
14.3% | ||||
|
Lottery Services |
219 |
864 |
232 |
982 |
6.3% |
6.3% |
13.6% |
13.6% | |||||
|
FM/Concessions |
161 |
636 |
159 |
686 |
-1.1% |
-1.1% |
7.9% |
7.9% | |||||
|
LMA |
35 |
128 |
37 |
174 |
5.0% |
5.0% |
36.3% |
36.3% | |||||
|
Other Services |
22 |
101 |
36 |
122 |
62.0% |
62.0% |
21.1% |
21.1% | |||||
|
Product Sales |
13 |
52 |
17 |
65 |
31.1% |
31.2% |
25.7% |
25.8% | |||||
|
Terminal |
0 |
5 |
0 |
10 |
-28.0% |
-27.9% |
79.0% |
79.0% | |||||
|
Systems/Other |
13 |
46 |
17 |
55 |
32.3% |
32.4% |
19.5% |
19.6% | |||||
|
Total |
Revenue |
269 |
1,065 |
284 |
1,194 |
5.7% |
5.7% |
12.1% |
12.1% | ||||
|
Operating Income |
43 |
195 |
65 |
300 |
53.8% |
53.6% |
54.4% |
54.0% | |||||
|
INTERNATIONAL |
Quarter Change |
YTD Change | |||||||||||
|
2015 |
2016 |
Percentage |
Constant FX |
Percentage |
Constant FX | ||||||||
|
Q4 |
YTD |
Q4 |
YTD |
Q4 |
Q4 |
YTD |
YTD | ||||||
|
Gaming |
Total Revenue |
148 |
502 |
144 |
473 |
-3.0% |
0.5% |
-5.8% |
-2.0% | ||||
|
Gaming Services |
47 |
197 |
44 |
181 |
-5.5% |
5.5% |
-8.4% |
1.3% | |||||
|
Terminal |
13 |
59 |
12 |
51 |
-1.6% |
13.0% |
-14.5% |
2.4% | |||||
|
Social (DDI) |
0 |
0 |
0 |
0 |
0.0% |
0.0% |
0.0% |
0.0% | |||||
|
Other |
34 |
138 |
32 |
130 |
-7.0% |
2.8% |
-5.8% |
0.8% | |||||
|
Product Sales |
101 |
305 |
99 |
293 |
-1.8% |
-1.8% |
-4.1% |
-4.1% | |||||
|
Terminal |
74 |
214 |
72 |
199 |
-2.7% |
-2.5% |
-6.9% |
-7.0% | |||||
|
Other |
27 |
91 |
28 |
93 |
0.9% |
0.0% |
2.5% |
2.5% | |||||
|
Lottery |
Total Revenue |
95 |
342 |
59 |
282 |
-38.2% |
-37.5% |
-17.4% |
-14.4% | ||||
|
Lottery Services |
72 |
279 |
56 |
263 |
-22.2% |
-21.5% |
-5.6% |
-2.1% | |||||
|
FM/Concessions |
55 |
206 |
51 |
206 |
-6.1% |
0.4% |
0.3% |
6.1% | |||||
|
LMA |
0 |
0 |
0 |
0 |
0.0% |
0.0% |
0.0% |
0.0% | |||||
|
Other Services |
17 |
73 |
4 |
57 |
-74.6% |
-93.0% |
-22.3% |
-25.3% | |||||
|
Product Sales |
23 |
63 |
3 |
19 |
-87.6% |
-86.8% |
-69.3% |
-68.7% | |||||
|
Terminal |
15 |
36 |
0 |
1 |
-97.8% |
-97.8% |
-97.4% |
-97.1% | |||||
|
Systems/Other |
9 |
27 |
3 |
18 |
-70.6% |
-68.6% |
-32.5% |
-31.6% | |||||
|
Other |
Total Revenue |
22 |
78 |
18 |
72 |
-20.8% |
-21.1% |
-8.6% |
-3.8% | ||||
|
Service Revenue |
18 |
73 |
15 |
69 |
-15.9% |
-18.8% |
-5.2% |
-0.9% | |||||
|
Product Sales |
4 |
5 |
2 |
3 |
-43.5% |
-32.1% |
-53.2% |
-42.2% | |||||
|
Total |
Revenue |
265 |
923 |
220 |
827 |
-17.1% |
-14.9% |
-10.3% |
-6.8% | ||||
|
Operating Income |
55 |
165 |
44 |
144 |
-20.1% |
-13.3% |
-12.7% |
-1.7% | |||||
|
ITALY |
Quarter Change |
YTD Change | |||||||||||
|
2015 |
2016 |
Percentage |
Constant FX |
Percentage |
Constant FX | ||||||||
|
Q4 |
YTD |
Q4 |
YTD |
Q4 |
Q4 |
YTD |
YTD | ||||||
|
Gaming |
Total Revenue |
201 |
678 |
183 |
676 |
-8.8% |
-7.6% |
-0.3% |
-0.1% | ||||
|
Gaming Services |
200 |
676 |
183 |
674 |
-8.8% |
-7.6% |
-0.2% |
0.0% | |||||
|
Terminal |
185 |
610 |
162 |
606 |
-12.1% |
-11.0% |
-0.7% |
-0.5% | |||||
|
Social (DDI) |
0 |
0 |
0 |
0 |
0.0% |
0.0% |
0.0% |
0.0% | |||||
|
Other |
16 |
66 |
20 |
68 |
29.8% |
32.7% |
3.8% |
4.5% | |||||
|
Product Sales |
0 |
2 |
0 |
1 |
0.0% |
0.0% |
-30.8% |
-30.7% | |||||
|
Terminal |
0 |
1 |
0 |
0 |
0.0% |
0.0% |
-98.6% |
-98.6% | |||||
|
Other |
0 |
1 |
0 |
1 |
0.0% |
0.0% |
3.9% |
4.1% | |||||
|
Lottery |
Total Revenue |
194 |
787 |
205 |
840 |
5.8% |
7.0% |
6.7% |
6.8% | ||||
|
Lottery Services |
194 |
787 |
205 |
840 |
5.8% |
7.0% |
6.7% |
6.8% | |||||
|
FM/Concessions |
215 |
876 |
233 |
937 |
8.5% |
9.8% |
7.0% |
7.1% | |||||
|
LMA |
0 |
0 |
0 |
0 |
0.0% |
0.0% |
0.0% |
0.0% | |||||
|
Other Services |
(21) |
(89) |
(27) |
(97) |
33.7% |
35.8% |
9.5% |
9.8% | |||||
|
Product Sales |
0 |
0 |
0 |
0 |
0.0% |
0.0% |
0.0% |
0.0% | |||||
|
Terminal |
0 |
0 |
0 |
0 |
0.0% |
0.0% |
0.0% |
0.0% | |||||
|
Systems/Other |
0 |
0 |
0 |
0 |
0.0% |
0.0% |
0.0% |
0.0% | |||||
|
Other |
Total Revenue |
60 |
239 |
60 |
245 |
1.2% |
2.2% |
2.6% |
2.7% | ||||
|
Service Revenue |
60 |
239 |
60 |
245 |
1.2% |
2.2% |
2.6% |
2.7% | |||||
|
Product Sales |
0 |
0 |
0 |
0 |
0.0% |
0.0% |
0.0% |
0.0% | |||||
|
Total |
Revenue |
455 |
1,704 |
449 |
1,761 |
-1.3% |
-0.1% |
3.4% |
3.5% | ||||
|
Operating Income |
132 |
550 |
130 |
586 |
-2.1% |
-0.9% |
6.5% |
6.5% | |||||
|
Key Performance Indicators (KPIs) | ||||||||||
|
Consolidated Key Performance Indicators (KPIs) | ||||||||||
|
Fourth Quarter |
Full Year | |||||||||
|
Periods Ended December 31 |
2016 |
2015 |
% change |
2016 |
2015 |
% change | ||||
|
Installed base (end of period) |
||||||||||
|
Casino |
34,653 |
34,568 |
0.2% |
34,653 |
34,568 |
0.2% | ||||
|
VLT - Government Sponsored (ex-Italy) |
15,150 |
15,491 |
-2.2% |
15,150 |
15,491 |
-2.2% | ||||
|
VLT - Italy Supplier (B2B) |
8,840 |
8,291 |
6.6% |
8,840 |
8,291 |
6.6% | ||||
|
Total installed base |
58,643 |
58,350 |
0.5% |
58,643 |
58,350 |
0.5% | ||||
|
Yield (average revenue per unit per day - $0.00) |
30.27 |
32.71 |
-7.5% |
31.92 |
33.74 |
-5.4% | ||||
|
Additional Italian Network Details: |
||||||||||
|
VLT - Operator (B2C) |
11,036 |
11,115 |
-0.7% |
11,036 |
11,115 |
-0.7% | ||||
|
AWP |
58,937 |
58,328 |
1.0% |
58,937 |
58,328 |
1.0% | ||||
|
Machine units shipped |
||||||||||
|
New/Expansion |
3,073 |
2,640 |
16.4% |
7,922 |
6,821 |
16.1% | ||||
|
Replacement |
7,247 |
8,922 |
-18.8% |
25,225 |
28,338 |
-11.0% | ||||
|
Total machines shipped |
10,320 |
11,562 |
-10.7% |
33,147 |
35,159 |
-5.7% | ||||
|
Global lottery same-store revenue growth |
||||||||||
|
Instants & draw games |
2.3% |
3.8% | ||||||||
|
Multistate Jackpots |
-2.9% |
40.7% | ||||||||
|
Total lottery same-store revenue growth (ex-Italy) |
1.8% |
8.1% | ||||||||
|
Italy lottery revenue growth |
7.4% |
7.0% | ||||||||
|
North America KPIs |
||||||||||
|
Fourth Quarter |
Full Year | |||||||||
|
Periods Ended December 31 |
2016 |
2015 |
% change |
2016 |
2015 |
% change | ||||
|
Installed base (end of period) |
||||||||||
|
Casino |
24,472 |
25,418 |
-3.7% |
24,472 |
25,418 |
-3.7% | ||||
|
VLT - Government Sponsored |
14,878 |
15,241 |
-2.4% |
14,878 |
15,241 |
-2.4% | ||||
|
Total installed base |
39,350 |
40,659 |
-3.2% |
39,350 |
40,659 |
-3.2% | ||||
|
Machine units shipped |
||||||||||
|
New/Expansion |
1,733 |
2,191 |
-20.9% |
5,929 |
4,389 |
35.1% | ||||
|
Replacement |
3,686 |
4,406 |
-16.3% |
13,842 |
16,993 |
-18.5% | ||||
|
Total machines shipped |
5,419 |
6,597 |
-17.9% |
19,771 |
21,382 |
-7.5% | ||||
|
DoubleDown |
||||||||||
|
Revenue ($ Thousands) |
61,702 |
83,598 |
-26.2% |
280,010 |
316,999 |
-11.7% | ||||
|
Mobile penetration |
58% |
53% |
9.4% |
55% |
48% |
15.4% | ||||
|
DAU (Daily Active Users) 1 |
1,406 |
1,897 |
-25.9% |
1,610 |
1,879 |
-14.3% | ||||
|
MAU (Monthly Active Users) 1 |
3,369 |
4,411 |
-23.6% |
3,839 |
4,526 |
-15.2% | ||||
|
Bookings per DAU ($0.00) 1 |
$ 0.48 |
$ 0.47 |
2.0% |
$ 0.48 |
$ 0.47 |
1.4% | ||||
|
Lottery same-store revenue growth |
||||||||||
|
Instants & draw games |
1.9% |
3.9% | ||||||||
|
Multistate Jackpots |
-1.5% |
48.7% | ||||||||
|
Total lottery same-store revenue growth |
1.5% |
9.7% | ||||||||
|
1As a single application with multiple games, active users equal unique users | ||||||||||
|
International KPIs |
||||||||||
|
Fourth Quarter |
Full Year | |||||||||
|
Periods Ended December 31 |
2016 |
2015 |
% change |
2016 |
2015 |
% change | ||||
|
Installed base (end of period) |
||||||||||
|
Casino |
10,181 |
9,150 |
11.3% |
10,181 |
9,150 |
11.3% | ||||
|
VLT - Government Sponsored |
272 |
250 |
8.8% |
272 |
250 |
8.8% | ||||
|
Total installed base |
10,453 |
9,400 |
11.2% |
10,453 |
9,400 |
11.2% | ||||
|
Machine units shipped |
||||||||||
|
New/Expansion |
1,340 |
449 |
198.4% |
1,993 |
2,432 |
-18.1% | ||||
|
Replacement |
3,561 |
4,516 |
-21.1% |
11,383 |
11,345 |
0.3% | ||||
|
Total machines shipped |
4,901 |
4,965 |
-1.3% |
13,376 |
13,777 |
-2.9% | ||||
|
Lottery same-store revenue growth |
||||||||||
|
Instants & draw games |
3.5% |
3.7% | ||||||||
|
Multistate Jackpots |
-9.1% |
-3.3% | ||||||||
|
Total lottery same-store revenue growth |
2.6% |
3.2% | ||||||||
|
Italy KPIs |
||||||||||
|
Fourth Quarter |
Full Year | |||||||||
|
Periods Ended December 31 |
2016 |
2015 |
% change |
2016 |
2015 |
% change | ||||
|
(In € millions, except machines) |
||||||||||
|
Lottery |
||||||||||
|
Lotto wagers |
2,141 |
1,855 |
15.4% |
8,093 |
7,077 |
14.4% | ||||
|
10eLotto |
1,239 |
1,147 |
7.9% |
4,716 |
4,287 |
10.0% | ||||
|
Core |
577 |
638 |
-9.6% |
2,227 |
2,447 |
-9.0% | ||||
|
Late Numbers |
326 |
70 |
367.0% |
1,150 |
343 |
235.6% | ||||
|
Scratch & Win Wagers |
2,289 |
2,391 |
-4.3% |
8,935 |
9,016 |
-0.9% | ||||
|
Italy lottery revenue growth |
7.4% |
7.0% | ||||||||
|
Gaming |
||||||||||
|
Installed base (end of period) |
||||||||||
|
VLT - Operator (B2C) |
11,036 |
11,115 |
-0.7% |
11,036 |
11,115 |
-0.7% | ||||
|
VLT - Supplier (B2B) |
8,840 |
8,291 |
6.6% |
8,840 |
8,291 |
6.6% | ||||
|
AWP |
58,937 |
58,328 |
1.0% |
58,937 |
58,328 |
1.0% | ||||
|
Total Installed Base |
78,813 |
77,734 |
1.4% |
78,813 |
77,734 |
1.4% | ||||
|
Wagers |
||||||||||
|
VLT - Operator (B2C) |
1,428 |
1,440 |
-0.8% |
5,460 |
5,433 |
0.5% | ||||
|
AWP |
1,087 |
1,159 |
-6.2% |
4,188 |
4,388 |
-4.6% | ||||
|
Interactive Wagers (Gaming) |
443 |
414 |
7.1% |
1,659 |
1,672 |
-0.8% | ||||
|
Other |
||||||||||
|
Sports Betting Wagers1 |
250 |
236 |
5.9% |
855 |
864 |
-1.1% | ||||
|
Sports Betting Payout (%)1 |
85.9% |
84.6% |
1.3 pp |
84.0% |
83.7% |
0.3 pp | ||||
|
1Includes Virtual Wagers and Pools & Horses | ||||||||||
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/international-game-technology-plc-reports-fourth-quarter-and-full-year-2016-results-300421063.html
SOURCE International Game Technology PLC