International Game Technology PLC Reports Fourth Quarter And Full Year 2017 Results
- Fourth quarter net income of $80 million includes one-time, non-cash tax benefit; adjusted EBITDA of $452 million reflects strong International performance, Italy sports betting results, and lower operating expenses
- 2017 net loss of $1,069 million includes previously reported $714 million non-cash impairment charge and $444 million of primarily non-cash net foreign exchange loss
- 2017 adjusted EBITDA of $1,676 million at top of expected range
- Net debt of $7,319 million at year end, better than outlook
- Cash dividend declared of $0.20 per ordinary share
LONDON, March 8, 2018 /PRNewswire/ -- International Game Technology PLC ("IGT") (NYSE: IGT) today reported financial results for the fourth quarter and year ended December 31, 2017. Today, at 8:00 a.m. EST, management will host a conference call and webcast to present the fourth quarter and full year 2017 results; access details are provided below.
"We had a strong finish to 2017, amplifying the progress we made throughout the year," said Marco Sala, CEO of IGT. "We delivered outstanding results in our Lottery business and improved our key performance indicators in the Gaming business. These achievements were enhanced by disciplined expense management. Bringing innovative content and technology to market remains the cornerstone of our strategy. Last year, we executed well along this path and established a solid foundation for growth in 2018 and beyond."
"We met all of our financial objectives for the year, including the top end of our EBITDA expectations. Net debt was slightly better than our outlook, despite the early Scratch & Win renewal in the fourth quarter," said Alberto Fornaro, CFO of IGT. "The results for the fourth quarter and full year highlight the diversity and resilience of the IGT franchise."
Summary of Consolidated Fourth Quarter and Full Year 2017 Financial Results
| Summary of Consolidated Fourth Quarter 2017 Financial Results |
||||
| Quarter Ended |
Change |
Constant Currency |
||
| 2017 |
2016 |
(%) |
(%) |
|
| (In $ millions, unless otherwise noted) |
||||
| Revenue |
1,346 |
1,321 |
2% |
-2% |
| Operating income |
194 |
138 |
41% |
32% |
| Net income per diluted share |
$0.39 |
$1.15 |
N/M |
|
| Net debt |
7,319 |
7,569 |
-3% |
|
| Adjusted EBITDA |
452 |
422 |
7% |
2% |
| Adjusted operating income |
268 |
281 |
-4% |
-9% |
| Adjusted net income per diluted share |
$0.02 |
$0.88 |
N/M |
|
| Year Ended |
Change |
Constant |
||
| 2017 |
2016 |
(%) |
(%) |
|
| (In $ millions, unless otherwise noted) |
||||
| Revenue |
4,939 |
5,154 |
-4% |
-5% |
| Operating income |
(51) |
660 |
- |
|
| Net income per diluted share |
($5.26) |
$1.05 |
- |
|
| Net debt |
7,319 |
7,569 |
-3% |
|
| Adjusted EBITDA |
1,676 |
1,755 |
-5% |
-6% |
| Adjusted operating income |
1,028 |
1,167 |
-12% |
-13% |
| Adjusted net income per diluted share |
$0.86 |
$2.33 |
N/M |
|
| 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. |
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 2017 are calculated using the same foreign exchange rates as the corresponding 2016 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.
Overview of Consolidated Fourth Quarter Results
Consolidated revenue was $1,346 million compared to $1,321 million in the fourth quarter of 2016. At constant currency and scope (which adjusts for the Italy Lotto upfront payment amortization and the sale of Double Down Interactive LLC ("DoubleDown")), revenue was up 3%.
Adjusted operating income was $268 million compared to $281 million in the prior-year period. Adjusted EBITDA was $452 million compared to $422 million in the fourth quarter of 2016, on strong International performance, Italy sports betting results, and lower operating expenses.
Interest expense was $114 million compared to $116 million in the prior-year period.
Benefit from income taxes rose to $83 million from $5 million in the fourth quarter of 2016. Tax dynamics in the fourth quarter of 2017 primarily reflect the non-cash impacts of recent U.S. tax reform. Additional detail on the tax impacts is provided with the reconciliation tables in this news release.
Net income attributable to IGT was $80 million in the fourth quarter of 2017. On an adjusted basis, net income attributable to IGT was $4 million. The Company reported net income per diluted share of $0.39 and earned $0.02 per diluted share on an adjusted basis, which includes $0.66 of non-cash, net negative tax impacts.
Cash from operations was $686 million in 2017 versus $281 million in 2016. As previously disclosed, gross upfront payments for Italian license fees are now included in Cash Flows from Operating Activities. Capital expenditures were $698 million in 2017 compared to $542 million in the prior year.
Cash and cash equivalents were $1,057 million as of December 31, 2017, compared to $294 million as of December 31, 2016. Net debt was $7,319 million as of December 31, 2017, compared to $7,569 million as of December 31, 2016.
Operating Segment Review
North America Gaming & Interactive
Revenue for North America Gaming & Interactive was $281 million compared to $368 million in the fourth quarter of 2016. At constant scope, revenue was down 9%, primarily on lower product sales.
Gaming service revenue was $167 million compared to $230 million in the prior-year period. The decline is primarily attributed to the sale of DoubleDown and a year-over-year decrease in the installed base. Yields were stable with the prior year.
Product sales revenue of $113 million declined from $138 million in the prior year, which benefited from significant new and expansion gaming machine and systems sales, as well as higher intellectual property revenue. The segment shipped 5,295 gaming machine units in the quarter compared to 5,419 units in the prior-year period.
Operating income for North America Gaming & Interactive was $69 million compared to $102 million in the fourth quarter of 2016. The decline is attributable to the sale of DoubleDown, lower revenue, and the timing of jackpot expense, partially offset by lower operating costs.
North America Lottery
North America Lottery revenue of $304 million was up 7% from the prior-year period, on strong wager growth and product sales.
Lottery same-store revenue rose 8.3%, supported by broad-based strength in instant tickets and draw games as well as multistate jackpots.
Product sales revenue doubled to $34 million, primarily due to lottery terminal and VLT central system sales.
Operating income was relatively stable at $66 million in the fourth quarter, as revenue growth was offset by higher service delivery costs and legal fees.
International
International revenue of $280 million was up 27% from the prior year, reflecting strong growth in both Lottery and Gaming.
Lottery same-store revenue was slightly below the prior year. Broad-based strength in EMEA and Latin America was offset by weakness in Colombia. U.K. Lottery trends were stable.
Gaming service revenue from terminals was up 1% at constant currency, as a higher installed base was offset by lower average yields due to the geographic mix of revenue. The installed base grew to 15,543 machines from 10,453 in the fourth quarter of 2016 on unit growth in Africa, Greek VLTs, and video bingo machines.
Product sales revenue rose 20%, benefiting from higher lottery software sales. The segment shipped a total of 5,565 gaming machine units during the fourth quarter of 2017 compared to 4,901 units in the prior-year period, as a 41% increase in replacement units more than offset lower new and expansion activity.
Operating income of $72 million increased 64%, reflecting higher revenue and disciplined cost management.
Italy
Italy revenue rose 7% to $481 million. At constant currency and scope, revenue was stable with the prior-year period.
Total Lotto wagers were €1,951 million compared to €2,141 million in the prior-year period. Excluding Late Numbers, Lotto wagers increased 4% over the prior-year period reflecting strong growth in 10eLotto.
Scratch & Win wagers increased 2% to €2,344 million on continued demand for Miliardario and multiplier tickets.
Machine gaming revenue was slightly below the prior year, primarily on the higher gaming machine taxes that went in effect in April 2017.
Sports betting revenues were up sharply on higher wagers and lower payout. Wagers grew over 8% as a result of recent network optimization and increased levels of online play. Total payout of 76.2% was 10 percentage points below the prior year.
Operating income was $115 million compared to $129 million in the prior-year period, reflecting higher depreciation and amortization related to the new Lotto concession.
Overview of Consolidated Full Year 2017 Results
Consolidated revenue was $4,939 million compared to $5,154 million in 2016. At constant currency and scope, consolidated revenue was in line with the prior year.
Global lottery same-store revenue, excluding Italy, increased 0.7% in 2017, on top of 8.1% growth in 2016, which included a record Powerball jackpot. Italy lottery wagers declined 3% in 2017 primarily as a result of high Late Numbers activity in the prior year. Excluding Late Numbers, Lotto wagers increased 3% over the prior year.
The Company shipped 32,103 gaming machines worldwide in 2017. The total installed base grew over 6% to 62,236 units.
Adjusted operating income was $1,028 million compared to $1,167 million in the prior year. Adjusted EBITDA of $1,676 million declined 6% at constant currency from $1,755 million in 2016 primarily due to the high-margin contribution from elevated jackpot and Late Number activity in the prior year, in addition to the DoubleDown sale, partially offset by expense savings.
Interest expense was $459 million compared to $469 million in the prior-year period.
Benefit from income taxes was $29 million compared to a provision for taxes of $59 million in 2016, reflecting the impact of recent U.S. tax reform.
Net loss attributable to IGT was $1,069 million in 2017 and includes a $714 million non-cash impairment charge and $444 million of primarily non-cash net foreign exchange loss. On an adjusted basis, net income was $175 million. The Company reported net loss per diluted share of ($5.26) and earned $0.86 per diluted share on an adjusted basis in 2017.
Other Developments
The Company's board of directors declared a quarterly cash dividend of $0.20 per ordinary share. The dividend is payable on April 5, 2018 to holders of record as of the close of business on March 22, 2018.
Outlook
The Company currently expects to achieve adjusted EBITDA of $1,700-$1,780 million in 2018. Capital expenditures are expected to be $575-$625 million. The Company's outlook assumes a 2018 average EUR/USD exchange rate of 1.22.
The Italy Scratch & Win renewal will require upfront payments of approximately €750 million during 2018, which will be reflected in Cash Flows from Operating Activities. The €270 million in contributions from minority partners for their portion of these payments will be included in Cash Flows from Financing Activities.
Conference Call and Webcast
Today, at 8:00 a.m. EST, management will host a conference call to present the fourth quarter and full year 2017 results. Listeners may access a live webcast of the conference call along with accompanying slides under "News, Events & 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 US/Canada toll-free dial-in number is +1 844 842 7999 and the dial-in number for participants outside the US/Canada is +1 612 979 9887. The conference ID/confirmation code is 4448629. A telephone replay of the call will be available for one week at +1 855 859 2056 for the US/Canada or +1 404 537 3406 outside the US/Canada using the conference ID/confirmation code 4448629.
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 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, 2016 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. All subsequent written or oral forward-looking statements attributable to International Game Technology PLC, or persons acting on its behalf, are expressly qualified in its 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, |
|||
| 2017 |
2016 |
||
| Service revenue |
1,073,079 |
1,061,669 |
|
| Product sales |
272,591 |
259,547 |
|
| Total revenue |
1,345,670 |
1,321,216 |
|
| Cost of services |
686,802 |
641,649 |
|
| Cost of product sales |
176,375 |
179,240 |
|
| Selling, general and administrative |
208,522 |
236,547 |
|
| Research and development |
70,946 |
87,182 |
|
| Restructuring expense |
9,170 |
6,420 |
|
| Impairment loss |
- |
31,162 |
|
| Transaction (income) expense, net |
(58) |
1,030 |
|
| Total operating expenses |
1,151,757 |
1,183,230 |
|
| Operating income |
193,913 |
137,986 |
|
| Interest income |
2,444 |
2,553 |
|
| Interest expense |
(114,405) |
(115,520) |
|
| Foreign exchange (loss) gain, net |
(59,228) |
195,587 |
|
| Other (expense) income, net |
(146) |
23,359 |
|
| Total non-operating (expenses) income |
(171,335) |
105,979 |
|
| Income before benefit from income taxes |
22,578 |
243,965 |
|
| Benefit from income taxes |
(83,346) |
(5,387) |
|
| Net income |
105,924 |
249,352 |
|
| Less: Net income attributable to non-controlling interests |
26,195 |
16,034 |
|
| Net income attributable to IGT PLC |
79,729 |
233,318 |
|
| Net income attributable to IGT PLC per common share - basic |
0.39 |
1.15 |
|
| Net income attributable to IGT PLC per common share - diluted |
0.39 |
1.15 |
|
| Weighted-average shares - basic |
203,513 |
202,324 |
|
| Weighted-average shares - diluted |
204,104 |
203,146 |
|
| International Game Technology PLC |
|||
| Condensed Consolidated Statements of Operations |
|||
| ($ and shares in thousands, except per share data) |
|||
| Unaudited |
|||
| For the year ended |
|||
| December 31, |
|||
| 2017 |
2016 |
||
| Service revenue |
4,136,556 |
4,375,586 |
|
| Product sales |
802,403 |
778,310 |
|
| Total revenue |
4,938,959 |
5,153,896 |
|
| Cost of services |
2,553,083 |
2,553,479 |
|
| Cost of product sales |
579,431 |
582,358 |
|
| Selling, general and administrative |
816,093 |
945,824 |
|
| Research and development |
313,088 |
343,531 |
|
| Restructuring expense |
39,876 |
27,934 |
|
| Impairment loss |
715,220 |
37,744 |
|
| Transaction (income) expense, net |
(26,740) |
2,590 |
|
| Total operating expenses |
4,990,051 |
4,493,460 |
|
| Operating (loss) income |
(51,092) |
660,436 |
|
| Interest income |
10,436 |
12,840 |
|
| Interest expense |
(458,899) |
(469,268) |
|
| Foreign exchange (loss) gain, net |
(443,977) |
101,040 |
|
| Other (expense) income, net |
(33,393) |
18,365 |
|
| Total non-operating expenses |
(925,833) |
(337,023) |
|
| (Loss) income before (benefit from) provision for income taxes |
(976,925) |
323,413 |
|
| (Benefit from) provision for income taxes |
(29,414) |
59,206 |
|
| Net (loss) income |
(947,511) |
264,207 |
|
| Less: Net income attributable to non-controlling interests |
121,065 |
52,870 |
|
| Net (loss) income attributable to IGT PLC |
(1,068,576) |
211,337 |
|
| Net (loss) income attributable to IGT PLC per common share - basic |
(5.26) |
1.05 |
|
| Net (loss) income attributable to IGT PLC per common share - diluted |
(5.26) |
1.05 |
|
| Weighted-average shares - basic |
203,130 |
201,511 |
|
| Weighted-average shares - diluted |
203,130 |
202,214 |
|
| International Game Technology PLC |
||||
| Condensed Consolidated Statements of Cash Flows |
||||
| ($ thousands) |
||||
| Unaudited |
||||
| For the year ended December 31, |
||||
| 2017 |
2016 |
|||
| Restated |
||||
| Cash flows from operating activities |
||||
| Net (loss) income |
(947,511) |
264,207 |
||
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: |
||||
| Impairment loss |
715,220 |
37,744 |
||
| Foreign exchange loss (gain), net |
443,977 |
(101,040) |
||
| Amortization |
401,355 |
492,021 |
||
| Depreciation |
401,085 |
390,448 |
||
| Service revenue amortization |
209,774 |
116,980 |
||
| Loss on early extinguishment of debt |
25,733 |
- |
||
| Debt issuance cost amortization |
23,217 |
18,347 |
||
| Stock-based compensation expense |
4,704 |
26,346 |
||
| Non-cash gain on sale of Double Down Interactive LLC |
(51,348) |
- |
||
| Deferred income tax provision |
(296,265) |
(153,649) |
||
| Other non-cash costs, net |
25,768 |
(142) |
||
| Changes in operating assets and liabilities, excluding the effects of disposition and acquisition: |
||||
| Trade and other receivables |
45,465 |
(23,758) |
||
| Inventories |
51,406 |
(76,321) |
||
| Upfront Italian license fees |
(244,698) |
(665,260) |
||
| Accounts payable |
(3,031) |
(22,855) |
||
| Other assets and liabilities |
(118,923) |
(21,736) |
||
| Net cash provided by operating activities |
685,928 |
281,332 |
||
| Cash flows from investing activities |
||||
| Proceeds from sale of Double Down Interactive LLC, net of cash divested |
823,788 |
- |
||
| Proceeds from sale of assets |
167,452 |
185,798 |
||
| Capital expenditures |
(698,010) |
(541,943) |
||
| Other |
5,435 |
40,160 |
||
| Net cash provided by (used in) investing activities |
298,665 |
(315,985) |
||
| Cash flows from financing activities |
||||
| Principal payments on long-term debt |
(1,754,259) |
(357,513) |
||
| Dividends paid |
(162,528) |
(161,179) |
||
| Return of capital - non-controlling interests |
(84,391) |
(35,407) |
||
| Dividends paid - non-controlling interests |
(57,908) |
(32,717) |
||
| Payments in connection with the early extinguishment of debt |
(38,832) |
- |
||
| Debt issuance costs paid |
(16,378) |
(10,825) |
||
| Net (payments of) receipts from financial liabilities |
(150) |
30,595 |
||
| Capital increase - non-controlling interests |
148,468 |
256,455 |
||
| Proceeds from long-term debt |
1,762,270 |
- |
||
| Other |
(43,264) |
(1,548) |
||
| Net cash used in financing activities |
(246,972) |
(312,139) |
||
| Net increase (decrease) in cash and cash equivalents |
737,621 |
(346,792) |
||
| Effect of exchange rate changes on cash |
25,703 |
13,402 |
||
| Cash and cash equivalents at the beginning of the period |
294,094 |
627,484 |
||
| Cash and cash equivalents at the end of the period |
1,057,418 |
294,094 |
||
| Supplemental Cash Flow Information: |
||||
| Interest paid |
(417,110) |
(450,655) |
||
| Income taxes paid |
(296,386) |
(183,278) |
||
| International Game Technology PLC |
|||
| Condensed Consolidated Balance Sheets |
|||
| ($ thousands) |
|||
| Unaudited |
|||
| December 31, |
|||
| 2017 |
2016 |
||
| Assets |
|||
| Current assets: |
|||
| Cash and cash equivalents |
1,057,418 |
294,094 |
|
| Restricted cash and investments |
248,012 |
247,222 |
|
| Trade and other receivables, net |
937,854 |
947,237 |
|
| Inventories |
319,545 |
347,494 |
|
| Other current assets |
407,520 |
424,727 |
|
| Income taxes receivable |
94,168 |
28,792 |
|
| Total current assets |
3,064,517 |
2,289,566 |
|
| Systems, equipment and other assets related to contracts, net |
1,434,194 |
1,199,674 |
|
| Property, plant and equipment, net |
193,723 |
357,841 |
|
| Goodwill |
5,723,815 |
6,810,012 |
|
| Intangible assets, net |
2,273,460 |
2,874,031 |
|
| Other non-current assets |
2,427,953 |
1,497,662 |
|
| Deferred income taxes |
41,546 |
31,376 |
|
| Total non-current assets |
12,094,691 |
12,770,596 |
|
| Total assets |
15,159,208 |
15,060,162 |
|
| Liabilities, redeemable non-controlling interests, and shareholders' equity |
|||
| Current liabilities: |
|||
| Accounts payable |
1,240,753 |
1,216,079 |
|
| Other current liabilities |
1,780,875 |
1,097,045 |
|
| Current portion of long-term debt |
599,114 |
77 |
|
| Income taxes payable |
55,935 |
28,590 |
|
| Total current liabilities |
3,676,677 |
2,341,791 |
|
| Long-term debt, less current portion |
7,777,445 |
7,863,085 |
|
| Deferred income taxes |
491,460 |
761,924 |
|
| Income taxes payable |
55,665 |
- |
|
| Other non-current liabilities |
446,113 |
444,556 |
|
| Total non-current liabilities |
8,770,683 |
9,069,565 |
|
| Total liabilities |
12,447,360 |
11,411,356 |
|
| Commitments and contingencies |
|||
| Redeemable non-controlling interests and shareholders' equity |
2,711,848 |
3,648,806 |
|
| Total liabilities, redeemable non-controlling interests, and shareholders' equity |
15,159,208 |
15,060,162 |
|
| International Game Technology PLC |
|||
| Net Debt |
|||
| ($ thousands) |
|||
| December 31, |
|||
| 2017 |
2016 |
||
| 6.250% Senior Secured Notes due 2022 |
1,470,075 |
1,472,150 |
|
| 6.500% Senior Secured Notes due 2025 |
1,086,913 |
1,085,537 |
|
| 4.750% Senior Secured Notes due 2023 |
1,008,601 |
884,917 |
|
| 4.125% Senior Secured Notes due 2020 |
833,655 |
730,465 |
|
| 5.625% Senior Secured Notes due 2020 |
595,767 |
593,954 |
|
| 4.750% Senior Secured Notes due 2020 |
585,171 |
509,050 |
|
| 7.500% Senior Secured Notes due 2019 |
148,231 |
521,894 |
|
| 5.500% Senior Secured Notes due 2020 |
125,709 |
126,294 |
|
| 5.350% Senior Secured Notes due 2023 |
61,082 |
61,187 |
|
| 6.625% Senior Secured Notes due 2018 |
- |
521,556 |
|
| Senior Secured Notes |
5,915,204 |
6,507,004 |
|
| Term Loan Facilities due 2023 |
1,785,361 |
- |
|
| Revolving Credit Facilities due 2021 |
76,880 |
516,529 |
|
| Term Loan Facilities due 2019 |
- |
839,552 |
|
| Long-term debt, less current portion |
7,777,445 |
7,863,085 |
|
| 6.625% Senior Secured Notes due 2018 |
599,114 |
- |
|
| Other |
- |
77 |
|
| Current portion of long-term debt |
599,114 |
77 |
|
| Total debt |
8,376,559 |
7,863,162 |
|
| Cash and cash equivalents |
1,057,418 |
294,094 |
|
| Net debt |
7,319,141 |
7,569,068 |
|
| International Game Technology PLC |
||||
| Adjusted EBITDA and Free Cash Flow |
||||
| Reconciliations of Non-GAAP Financial Measures |
||||
| ($ thousands) |
||||
| For the three months ended |
||||
| December 31, |
||||
| 2017 |
2016 |
|||
| Net income |
105,924 |
249,352 |
||
| Benefit from income taxes |
(83,346) |
(5,387) |
||
| Non-operating expenses (income) |
171,335 |
(105,979) |
||
| Depreciation |
111,997 |
97,164 |
||
| Amortization |
83,366 |
114,858 |
||
| Service revenue amortization |
54,456 |
31,820 |
||
| Restructuring expense |
9,170 |
6,420 |
||
| Impairment loss |
- |
31,162 |
||
| Transaction (income) expense, net |
(58) |
1,030 |
||
| Non-cash purchase accounting (excluding D&A) |
(223) |
(126) |
||
| Stock-based compensation expense |
(398) |
1,844 |
||
| Adjusted EBITDA |
452,223 |
422,158 |
||
| Cash flows from operating activities |
270,343 |
86,067 |
||
| Capital expenditures |
(145,841) |
(185,741) |
||
| Free Cash Flow |
124,502 |
(99,674) |
||
| International Game Technology PLC |
||||
| Adjusted EBITDA and Free Cash Flow |
||||
| Reconciliations of Non-GAAP Financial Measures |
||||
| ($ thousands) |
||||
| For the year ended |
||||
| December 31, |
||||
| 2017 |
2016 |
|||
| Net (loss) income |
(947,511) |
264,207 |
||
| (Benefit from) provision for income taxes |
(29,414) |
59,206 |
||
| Non-operating expenses |
925,833 |
337,023 |
||
| Impairment loss |
715,220 |
37,744 |
||
| Amortization |
401,355 |
492,021 |
||
| Depreciation |
401,085 |
390,448 |
||
| Service revenue amortization |
209,774 |
116,980 |
||
| Restructuring expense |
39,876 |
27,934 |
||
| Stock-based compensation expense |
4,704 |
26,346 |
||
| Non-cash purchase accounting (excluding D&A) |
(736) |
795 |
||
| Bad debt recovery |
(17,858) |
- |
||
| Transaction (income) expense, net |
(26,740) |
2,590 |
||
| Adjusted EBITDA |
1,675,588 |
1,755,294 |
||
| Cash flows from operating activities |
685,928 |
281,332 |
||
| Capital expenditures |
(698,010) |
(541,943) |
||
| Free Cash Flow |
(12,082) |
(260,611) |
||
| 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 2017 |
Q4 2017 |
||||||||||||
| As |
Purchase |
Foreign |
Restructuring |
Transaction |
As |
||||||||
| Reported |
Accounting |
Exchange |
Expense |
Income |
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 |
|||||||
| Foreign exchange loss, net |
(59,228) |
- |
59,228 |
- |
- |
- |
|||||||
| Other expense, net |
(146) |
1 |
- |
- |
(8) |
(153) |
|||||||
| Interest expense, net |
(111,961) |
513 |
- |
- |
- |
(111,448) |
|||||||
| Total non-operating expenses |
(171,335) |
514 |
59,228 |
- |
(8) |
(111,601) |
|||||||
| Income before benefit from 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 $73.3 million one-time, non-cash tax expense for the write-of of a deferred tax asset related primarily to unrealized foreign exchange losses. |
|||||||||||||
| International Game Technology PLC |
|||||||||||||
| Condensed Consolidated Statement of Operations |
|||||||||||||
| Reconciliation of Non-GAAP Financial Measures |
|||||||||||||
| ($ and shares in thousands, except per share data) |
|||||||||||||
| Year to date |
Adjustments |
Year to date |
|||||||||||
| December 2017 |
Impairment/ |
Transaction Income |
December 2017 |
||||||||||
| As |
Purchase |
Foreign |
Restructuring |
and Refinancing |
As |
||||||||
| Reported |
Accounting |
Exchange |
Expense |
Expense |
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 |
|||||||
| Foreign exchange loss, net |
(443,977) |
- |
443,977 |
- |
- |
- |
|||||||
| Other (expense) income, net |
(33,393) |
1,568 |
- |
- |
35,420 |
3,595 |
|||||||
| Interest expense, net |
(448,463) |
2,928 |
- |
- |
- |
(445,535) |
|||||||
| 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 $73.3 million one-time, non-cash tax expense for the write-offf of a deferred tax asset related primarily to unrealized foreign exchange losses. |
|||||||||||||
| (d) Weighted-average shares – diluted, as adjusted, include shares that were excluded from the as reported computation, due to the net loss as reported. |
|||||||||||||
| International Game Technology PLC |
||||||||||||
| Condensed Consolidated Statement of Operations |
||||||||||||
| Reconciliation of Non-GAAP Financial Measures |
||||||||||||
| ($ and shares in thousands, except per share data) |
||||||||||||
| Adjustments |
||||||||||||
| Q4 2016 |
Impairment/ |
Q4 2016 |
||||||||||
| As |
Purchase |
Foreign |
Restructuring |
Transaction |
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 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) Adjustments for income taxes are determined based on the statutory tax rate in effect in the respective jurisdiction where the adjustment originated. |
||||||||||||
| International Game Technology PLC |
||||||||||||
| 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) Adjustments for income taxes are determined based on the statutory tax rate in effect in the respective jurisdiction where the adjustment originated. |
||||||||||||
| International Game Technology PLC Segment Performance |
|||||||||||||
| Revenue Detail |
|||||||||||||
| ($ millions) |
|||||||||||||
| INTERNATIONAL GAME TECHNOLOGY PLC |
Quarter Change |
YTD Change |
|||||||||||
| 2016 |
2017 |
Percentage |
Constant FX |
Percentage |
Constant FX |
||||||||
| Q4 |
YTD |
Q4 |
YTD |
Q4 |
Q4 |
YTD |
YTD |
||||||
| Gaming |
Total Revenue |
730 |
2,667 |
664 |
2,501 |
-9.0% |
-12.5% |
-6.2% |
-7.2% |
||||
| Gaming Services |
492 |
1,976 |
452 |
1,836 |
-8.1% |
-12.5% |
-7.1% |
-8.2% |
|||||
| Terminal |
325 |
1,282 |
331 |
1,284 |
2.0% |
-3.3% |
0.2% |
-1.3% |
|||||
| Social (DDI) |
61 |
279 |
0 |
111 |
-100.0% |
-100.0% |
-60.1% |
-59.9% |
|||||
| Other |
107 |
415 |
121 |
440 |
13.0% |
9.3% |
6.2% |
5.6% |
|||||
| Product Sales |
237 |
691 |
212 |
665 |
-10.7% |
-12.5% |
-3.7% |
-4.6% |
|||||
| Terminal |
156 |
449 |
146 |
444 |
-6.9% |
-9.0% |
-1.1% |
-2.1% |
|||||
| Other |
81 |
243 |
66 |
222 |
-18.2% |
-19.2% |
-8.6% |
-9.3% |
|||||
| Lottery |
Total Revenue |
520 |
2,176 |
559 |
2,067 |
7.6% |
3.6% |
-5.0% |
-5.9% |
||||
| Lottery Services |
500 |
2,092 |
511 |
1,952 |
2.2% |
-1.6% |
-6.7% |
-7.5% |
|||||
| FM/Concessions |
444 |
1,829 |
463 |
1,769 |
4.3% |
-1.6% |
-3.3% |
-4.8% |
|||||
| LMA |
37 |
174 |
36 |
157 |
-3.1% |
-3.1% |
-9.7% |
-9.7% |
|||||
| Other Services |
19 |
88 |
12 |
25 |
-36.0% |
2.6% |
-71.1% |
-57.8% |
|||||
| Product Sales |
20 |
85 |
48 |
115 |
140.0% |
130.8% |
35.8% |
33.9% |
|||||
| Terminal |
1 |
11 |
2 |
4 |
266.8% |
266.8% |
-63.5% |
-63.5% |
|||||
| Systems/Other |
20 |
74 |
47 |
111 |
136.7% |
127.3% |
50.0% |
47.8% |
|||||
| Other |
Total Revenue |
72 |
311 |
122 |
371 |
70.3% |
55.7% |
19.4% |
15.3% |
||||
| Service Revenue |
70 |
308 |
110 |
349 |
57.8% |
43.8% |
13.1% |
9.2% |
|||||
| Product Sales |
2 |
3 |
12 |
22 |
465.9% |
432.1% |
N/M |
N/M |
|||||
| Consolidated |
Revenue |
1,321 |
5,154 |
1,346 |
4,939 |
1.9% |
-2.5% |
-4.2% |
-5.3% |
||||
| Operating Income: |
|||||||||||||
| Segment Total |
340 |
1,374 |
322 |
1,210 |
-5.3% |
-9.4% |
-11.9% |
-12.7% |
|||||
| Purchase Accounting |
(134) |
(468) |
(65) |
(1,064) |
-51.3% |
-51.4% |
127.4% |
126.3% |
|||||
| Corporate Support |
(68) |
(246) |
(63) |
(197) |
-7.6% |
-10.3% |
-19.8% |
-22.2% |
|||||
| Total |
138 |
660 |
194 |
(51) |
40.5% |
31.9% |
-107.7% |
-109.3% |
|||||
| NORTH AMERICA GAMING & INTERACTIVE |
Quarter Change |
YTD Change |
|||||||||||
| 2016 |
2017 |
Percentage |
Constant FX |
Percentage |
Constant FX |
||||||||
| Q4 |
YTD |
Q4 |
YTD |
Q4 |
Q4 |
YTD |
YTD |
||||||
| Gaming |
Total Revenue |
368 |
1,373 |
281 |
1,158 |
-23.8% |
-24.1% |
-15.7% |
-15.8% |
||||
| Gaming Services |
230 |
975 |
167 |
781 |
-27.4% |
-27.5% |
-19.9% |
-19.9% |
|||||
| Terminal |
126 |
525 |
118 |
488 |
-6.0% |
-6.2% |
-7.0% |
-7.1% |
|||||
| Social (DDI) |
61 |
279 |
0 |
111 |
-100.0% |
-100.0% |
-60.1% |
-59.9% |
|||||
| Other |
44 |
171 |
49 |
181 |
11.5% |
11.4% |
5.8% |
5.8% |
|||||
| Product Sales |
138 |
398 |
113 |
377 |
-17.8% |
-18.3% |
-5.3% |
-5.5% |
|||||
| Terminal |
85 |
249 |
72 |
244 |
-14.6% |
-15.1% |
-2.2% |
-2.4% |
|||||
| Other |
53 |
149 |
41 |
133 |
-22.9% |
-23.4% |
-10.5% |
-10.8% |
|||||
| Total |
Revenue |
368 |
1,373 |
281 |
1,158 |
-23.8% |
-24.1% |
-15.7% |
-15.8% |
||||
| Operating Income |
102 |
349 |
69 |
279 |
-32.6% |
-30.8% |
-20.1% |
-19.8% |
|||||
| NORTH AMERICA LOTTERY |
Quarter Change |
YTD Change |
|||||||||||
| 2016 |
2017 |
Percentage |
Constant FX |
Percentage |
Constant FX |
||||||||
| Q4 |
YTD |
Q4 |
YTD |
Q4 |
Q4 |
YTD |
YTD |
||||||
| Gaming |
Total Revenue |
35 |
146 |
42 |
162 |
20.6% |
18.9% |
11.0% |
10.5% |
||||
| Gaming Services |
35 |
146 |
38 |
150 |
8.1% |
7.2% |
2.6% |
2.2% |
|||||
| Terminal |
24 |
100 |
24 |
99 |
1.6% |
1.6% |
-0.4% |
-0.4% |
|||||
| Social (DDI) |
0 |
0 |
0 |
0 |
0.0% |
0.0% |
0.0% |
0.0% |
|||||
| Other |
11 |
46 |
13 |
50 |
22.2% |
19.2% |
9.0% |
7.7% |
|||||
| Product Sales |
(0) |
0 |
4 |
13 |
N/M |
N/M |
N/M |
N/M |
|||||
| Terminal |
0 |
(0) |
0 |
0 |
N/M |
N/M |
N/M |
N/M |
|||||
| Other |
(0) |
0 |
4 |
13 |
N/M |
N/M |
N/M |
N/M |
|||||
| Lottery |
Total Revenue |
250 |
1,047 |
262 |
1,023 |
5.0% |
4.8% |
-2.3% |
-2.4% |
||||
| Lottery Services |
232 |
982 |
232 |
943 |
0.0% |
0.0% |
-4.0% |
-4.0% |
|||||
| FM/Concessions |
159 |
686 |
165 |
660 |
3.4% |
3.4% |
-3.8% |
-3.8% |
|||||
| LMA |
37 |
174 |
36 |
157 |
-3.1% |
-3.1% |
-9.7% |
-9.7% |
|||||
| Other Services |
36 |
122 |
32 |
126 |
-11.9% |
-11.9% |
3.2% |
3.2% |
|||||
| Product Sales |
17 |
65 |
30 |
80 |
71.9% |
69.5% |
22.4% |
21.4% |
|||||
| Terminal |
0 |
10 |
2 |
4 |
N/M |
N/M |
-61.8% |
-61.9% |
|||||
| Systems/Other |
17 |
55 |
28 |
76 |
62.8% |
60.4% |
37.0% |
35.9% |
|||||
| Total |
Revenue |
284 |
1,194 |
304 |
1,185 |
6.9% |
6.5% |
-0.7% |
-0.8% |
||||
| Operating Income |
65 |
299 |
66 |
289 |
0.8% |
0.6% |
-3.4% |
-3.7% |
|||||
| INTERNATIONAL |
Quarter Change |
YTD Change |
|||||||||||
| 2016 |
2017 |
Percentage |
Constant FX |
Percentage |
Constant FX |
||||||||
| Q4 |
YTD |
Q4 |
YTD |
Q4 |
Q4 |
YTD |
YTD |
||||||
| Gaming |
Total Revenue |
144 |
473 |
149 |
472 |
3.6% |
-0.1% |
-0.3% |
-1.3% |
||||
| Gaming Services |
44 |
181 |
55 |
197 |
23.5% |
18.8% |
9.3% |
9.3% |
|||||
| Terminal |
12 |
51 |
13 |
51 |
1.8% |
0.7% |
1.3% |
1.6% |
|||||
| Social (DDI) |
0 |
0 |
0 |
0 |
0.0% |
0.0% |
0.0% |
0.0% |
|||||
| Other |
32 |
130 |
42 |
146 |
31.9% |
25.7% |
12.4% |
12.3% |
|||||
| Product Sales |
99 |
293 |
94 |
275 |
-5.4% |
-8.6% |
-6.2% |
-7.8% |
|||||
| Terminal |
72 |
199 |
73 |
200 |
2.2% |
-1.9% |
0.1% |
-1.8% |
|||||
| Other |
28 |
93 |
21 |
75 |
-24.9% |
-25.9% |
-19.6% |
-20.7% |
|||||
| Lottery |
Total Revenue |
65 |
288 |
99 |
323 |
53.0% |
50.3% |
11.9% |
13.3% |
||||
| Lottery Services |
62 |
269 |
80 |
288 |
29.8% |
29.4% |
6.9% |
8.8% |
|||||
| FM/Concessions |
51 |
206 |
52 |
198 |
0.6% |
-5.3% |
-4.1% |
-4.6% |
|||||
| LMA |
0 |
0 |
0 |
0 |
0.0% |
0.0% |
0.0% |
0.0% |
|||||
| Other Services |
10 |
63 |
28 |
90 |
175.7% |
202.6% |
42.9% |
52.9% |
|||||
| Product Sales |
3 |
19 |
19 |
35 |
N/M |
499.6% |
80.8% |
75.8% |
|||||
| Terminal |
0 |
1 |
0 |
0 |
-100.0% |
-100.0% |
-81.3% |
-81.3% |
|||||
| Systems/Other |
3 |
18 |
19 |
35 |
N/M |
N/M |
88.9% |
83.6% |
|||||
| Other |
Total Revenue |
12 |
65 |
32 |
94 |
178.0% |
161.6% |
44.0% |
40.1% |
||||
| Service Revenue |
9 |
63 |
20 |
72 |
110.0% |
97.8% |
14.3% |
11.0% |
|||||
| Product Sales |
2 |
3 |
12 |
22 |
465.9% |
432.1% |
N/M |
N/M |
|||||
| Total |
Revenue |
220 |
827 |
280 |
889 |
27.2% |
23.2% |
7.5% |
7.1% |
||||
| Operating Income |
44 |
142 |
72 |
164 |
64.3% |
56.9% |
15.2% |
17.2% |
|||||
| ITALY |
Quarter Change |
YTD Change |
|||||||||||
| 2016 |
2017 |
Percentage |
Constant FX |
Percentage |
Constant FX |
||||||||
| Q4 |
YTD |
Q4 |
YTD |
Q4 |
Q4 |
YTD |
YTD |
||||||
| Gaming |
Total Revenue |
183 |
676 |
193 |
707 |
5.1% |
-5.0% |
4.7% |
1.6% |
||||
| Gaming Services |
183 |
674 |
192 |
706 |
5.2% |
-4.9% |
4.7% |
1.6% |
|||||
| Terminal |
162 |
606 |
176 |
644 |
8.3% |
-2.1% |
6.2% |
3.0% |
|||||
| Social (DDI) |
0 |
0 |
0 |
0 |
0.0% |
0.0% |
0.0% |
0.0% |
|||||
| Other |
20 |
68 |
16 |
62 |
-19.6% |
-27.2% |
-8.6% |
-11.3% |
|||||
| Product Sales |
0 |
1 |
0 |
1 |
-59.6% |
-62.2% |
-11.3% |
-11.9% |
|||||
| Terminal |
0 |
0 |
0 |
0 |
N/M |
N/M |
N/M |
N/M |
|||||
| Other |
0 |
1 |
0 |
1 |
-59.6% |
-62.2% |
-22.9% |
-23.3% |
|||||
| Lottery |
Total Revenue |
205 |
840 |
198 |
721 |
-3.5% |
-12.7% |
-14.2% |
-16.8% |
||||
| Lottery Services |
205 |
840 |
198 |
721 |
-3.5% |
-12.7% |
-14.2% |
-16.8% |
|||||
| FM/Concessions |
233 |
937 |
246 |
912 |
5.8% |
-4.3% |
-2.7% |
-5.7% |
|||||
| LMA |
0 |
0 |
0 |
0 |
0.0% |
0.0% |
0.0% |
0.0% |
|||||
| Other Services |
(27) |
(97) |
(48) |
(191) |
75.1% |
58.6% |
96.0% |
90.3% |
|||||
| 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 |
245 |
90 |
277 |
49.8% |
35.5% |
12.8% |
8.8% |
||||
| Service Revenue |
60 |
245 |
90 |
277 |
49.8% |
35.5% |
12.8% |
8.8% |
|||||
| Product Sales |
0 |
0 |
0 |
0 |
0.0% |
0.0% |
0.0% |
0.0% |
|||||
| Total |
Revenue |
449 |
1,761 |
481 |
1,705 |
7.2% |
-3.1% |
-3.2% |
-6.2% |
||||
| Operating Income |
129 |
584 |
115 |
479 |
-10.4% |
-19.9% |
-18.0% |
-20.5% |
|||||
| KEY PERFORMANCE INDICATORS (KPIs) |
|||||||
| Consolidated Key Performance Indicators (KPIs) |
|||||||
| Fourth Quarter |
Full Year |
||||||
| Period Ended December 31 |
2017 |
2016 |
% change |
2017 |
2016 |
% change |
|
| Installed base (end of period) |
|||||||
| Casino |
35,625 |
34,653 |
2.8% |
35,625 |
34,653 |
2.8% |
|
| VLT - Government Sponsored (ex-Italy) |
18,019 |
15,150 |
18.9% |
18,019 |
15,150 |
18.9% |
|
| VLT - Italy Supplier (B2B) |
8,592 |
8,840 |
-2.8% |
8,592 |
8,840 |
-2.8% |
|
| Total installed base |
62,236 |
58,643 |
6.1% |
62,236 |
58,643 |
6.1% |
|
| Yield (average revenue per unit per day - $0.00) |
27.49 |
30.27 |
-9.2% |
29.26 |
31.92 |
-8.3% |
|
| Additional Italian Network Details: |
|||||||
| VLT - Operator (B2C) |
10,985 |
11,036 |
-0.5% |
10,985 |
11,036 |
-0.5% |
|
| AWP |
56,590 |
58,937 |
-4.0% |
56,590 |
58,937 |
-4.0% |
|
| Machine units shipped |
|||||||
| New/Expansion |
1,349 |
3,073 |
-56.1% |
5,855 |
7,922 |
-26.1% |
|
| Replacement |
9,511 |
7,247 |
31.2% |
26,248 |
25,225 |
4.1% |
|
| Total machines shipped |
10,860 |
10,320 |
5.2% |
32,103 |
33,147 |
-3.1% |
|
| Global lottery same-store revenue growth |
|||||||
| Instants & draw games |
5.0% |
4.0% |
|||||
| Multistate Jackpots |
15.3% |
-18.7% |
|||||
| Total lottery same-store revenue growth (ex-Italy) |
6.0% |
0.7% |
|||||
| Italy lottery revenue growth |
-12.6% |
-16.7% |
|||||
| North America KPIs |
|||||||
| Fourth Quarter |
Full Year |
||||||
| Period Ended December 31 |
2017 |
2016 |
% change |
2017 |
2016 |
% change |
|
| Installed base (end of period) |
|||||||
| Casino |
22,807 |
24,472 |
-6.8% |
22,807 |
24,472 |
-6.8% |
|
| VLT - Government Sponsored |
15,294 |
14,878 |
2.8% |
15,294 |
14,878 |
2.8% |
|
| Total installed base |
38,101 |
39,350 |
-3.2% |
38,101 |
39,350 |
-3.2% |
|
| Machine units shipped |
|||||||
| New/Expansion |
805 |
1,733 |
-53.5% |
4,099 |
5,929 |
-30.9% |
|
| Replacement |
4,490 |
3,686 |
21.8% |
14,030 |
13,842 |
1.4% |
|
| Total machines shipped |
5,295 |
5,419 |
-2.3% |
18,129 |
19,771 |
-8.3% |
|
| Lottery same-store revenue growth |
|||||||
| Instants & draw games |
7.1% |
5.1% |
|||||
| Multistate Jackpots |
17.7% |
-21.0% |
|||||
| Total lottery same-store revenue growth |
8.3% |
0.6% |
|||||
| International KPIs |
|||||||
| Fourth Quarter |
Full Year |
||||||
| Period Ended December 31 |
2017 |
2016 |
% change |
2017 |
2016 |
% change |
|
| Installed base (end of period) |
|||||||
| Casino |
12,818 |
10,181 |
25.9% |
12,818 |
10,181 |
25.9% |
|
| VLT - Government Sponsored |
2,725 |
272 |
901.8% |
2,725 |
272 |
901.8% |
|
| Total installed base |
15,543 |
10,453 |
48.7% |
15,543 |
10,453 |
48.7% |
|
| Machine units shipped |
|||||||
| New/Expansion |
544 |
1,340 |
-59.4% |
1,756 |
1,993 |
-11.9% |
|
| Replacement |
5,021 |
3,561 |
41.0% |
12,218 |
11,383 |
7.3% |
|
| Total machines shipped |
5,565 |
4,901 |
13.5% |
13,974 |
13,376 |
4.5% |
|
| Lottery same-store revenue growth |
|||||||
| Instants & draw games |
-1.2% |
0.8% |
|||||
| Multistate Jackpots |
0.6% |
1.9% |
|||||
| Total lottery same-store revenue growth |
-1.1% |
0.9% |
|||||
| Italy KPIs |
|||||||
| Fourth Quarter |
Full Year |
||||||
| Period Ended December 31 |
2017 |
2016 |
% change |
2017 |
2016 |
% change |
|
| (In € millions, except machines) |
|||||||
| Lottery |
|||||||
| Lotto wagers |
1,951 |
2,141 |
-8.9% |
7,481 |
8,093 |
-7.6% |
|
| 10eLotto |
1,386 |
1,239 |
11.9% |
5,160 |
4,716 |
9.4% |
|
| Core |
508 |
577 |
-12.0% |
2,011 |
2,227 |
-9.7% |
|
| Late Numbers |
57 |
326 |
-82.5% |
310 |
1,150 |
-73.0% |
|
| Scratch & Win Wagers |
2,344 |
2,289 |
2.4% |
9,065 |
8,935 |
1.5% |
|
| Italy lottery revenue growth |
-12.6% |
-16.7% |
|||||
| Gaming |
|||||||
| Installed base (end of period) |
|||||||
| VLT - Operator (B2C) |
10,985 |
11,036 |
-0.5% |
10,985 |
11,036 |
-0.5% |
|
| VLT - Supplier (B2B) |
8,592 |
8,840 |
-2.8% |
8,592 |
8,840 |
-2.8% |
|
| AWP |
56,590 |
58,937 |
-4.0% |
56,590 |
58,937 |
-4.0% |
|
| Total Installed Base |
76,167 |
78,813 |
-3.4% |
76,167 |
78,813 |
-3.4% |
|
| Wagers |
|||||||
| VLT - Operator (B2C) |
1,428 |
1,428 |
0.0% |
5,543 |
5,460 |
1.5% |
|
| AWP |
1,032 |
1,087 |
-5.1% |
3,949 |
4,188 |
-5.7% |
|
| Interactive Wagers (Gaming) |
461 |
443 |
4.0% |
1,745 |
1,659 |
5.2% |
|
| Other |
|||||||
| Sports Betting Wagers1 |
271 |
250 |
8.8% |
959 |
855 |
12.2% |
|
| Sports Betting Payout (%)1 |
76.2% |
85.9% |
-9.7 pp |
82.7% |
84.0% |
-1.3 pp |
|
| 1Includes Virtual Wagers and Pools & Horses |
SOURCE International Game Technology PLC
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