International Game Technology Reports Third Quarter Fiscal Year 2013 Results

Third Quarter Highlights (compared to last year's third quarter)

- Total revenues increased 9% to $579 million, primarily due to substantial increases in North America product sales and social gaming

- Social gaming revenues increased 105% to $61 million and average revenue per daily active user grew 60% to $0.40

- GAAP earnings per share from continuing operations increased 56% to $0.25

- Adjusted earnings per share from continuing operations increased 43% to $0.33

News provided by

International Game Technology

Jul 23, 2013, 04:15 ET

LAS VEGAS, July 23, 2013 /PRNewswire/ -- International Game Technology (NYSE: IGT) today reported operating results for the third quarter ended June 30, 2013.

(Logo: http://photos.prnewswire.com/prnh/20130130/LA50769LOGO)

"We are pleased to report another quarter of strong financial performance demonstrated by growth in revenue, operating income and EPS," said Patti Hart, CEO of IGT. "Our momentum continues and is bolstered by our focused attention on the execution of our business strategy and positive leverage from the broad distribution of our best-in-class content." 

Consolidated Results

($ in millions, except per share amounts)

Quarters Ended

Nine Months Ended

June 30,

June 30,

2013

2012

% Change

2013

2012

% Change

GAAP Measures











Revenue

$ 579.0

$ 532.8

9%

$ 1,709.2

$ 1,519.6

12%

Operating income

$ 123.0

$   95.5

29%

$    370.7

$    313.5

18%

Income from continuing operations

$   65.7

$   46.9

40%

$    209.2

$    159.6

31%

Earnings per share from continuing operations

$   0.25

$   0.16

56%

$      0.79

$      0.54

46%

Net operating cash flows






$    335.2

$    327.0

3%













Non-GAAP Measures











Adjusted operating income

$ 154.1

$ 129.3

19%

$    455.2

$    375.3

21%

Adjusted income from continuing operations

$   86.4

$   68.5

26%

$    258.1

$    199.2

30%

Adjusted earnings per share from continuing operations

$   0.33

$   0.23

43%

$      0.97

$      0.67

45%

Free cash flow (after dividends)






$    182.6

$    102.7

78%













Adjusted operating income, adjusted income from continuing operations, adjusted earnings per share from continuing operations and free cash flow are non-GAAP financial measures.  Reconciliations between GAAP and non-GAAP measures are provided at the end of this release.
  • Revenues increased 9% to $579 million, primarily driven by growth in North America machine sales and social gaming.
  • Adjusted earnings per share from continuing operations increased 43% to $0.33.
  • Non-GAAP adjusted financial measures for the quarter ended June 30, 2013 exclude acquisition-related charges for DoubleDown, proxy contest-related fees and building impairment.

Gaming Operations

($ in millions, unless otherwise noted)

Quarters Ended

Nine Months Ended

June 30,

June 30,

2013

2012

% Change

2013

2012

% Change













Revenue

$ 247.3

$ 258.2

-4%

$ 744.3

$ 776.4

-4%

Gross profit

$ 151.7

$ 155.7

-3%

$ 461.6

$ 472.9

-2%

Gross margin

61%

60%

2%

62%

61%

2%

Installed base

56,700

56,900

-

56,700

56,900

-

Average revenue per unit per day (0.00)

$ 47.96

$ 50.20

-4%

$ 47.91

$ 51.31

-7%
  • Revenues decreased 4% to $247 million primarily due to lower MegaJackpots® revenue.
  • Gross margin increased to 61% from 60% compared to the prior year quarter, primarily due to lower jackpot expenses and depreciation.
  • Average revenue per unit per day in the quarter was $47.96, down 4% over the prior year quarter and down 3% sequentially, both primarily due to lower yields, most significantly in MegaJackpots®.

Product Sales

($ in millions, unless otherwise noted)

Quarters Ended

Nine Months Ended

June 30,

June 30,

2013

2012

% Change

2013

2012

% Change













Revenue

$ 259.2

$ 231.6

12%

$ 772.9

$ 653.4

18%

Gross profit

$ 139.9

$ 124.4

12%

$ 409.2

$ 348.0

18%

Gross margin

54%

54%

-

53%

53%

-

Units recognized ('000)

13.4

11.6

16%

38.4

29.1

32%

Average machine sales price ('000)

$   13.3

$   13.7

-3%

$   14.0

$   15.0

-7%
  • Revenues increased 12% to $259 million and units recognized increased 16% to 13,400, primarily due to increased North America machines related to Canadian VLT customers and non-machine sales.
  • Average machine sales price decreased 3% compared to the prior year quarter mainly due to an increased mix of lower-priced VLT sales.

Interactive

($ in millions, unless otherwise noted)

Quarters Ended

Nine Months Ended

June 30,

June 30,

2013

2012

% Change

2013

2012

% Change













Revenue

$ 72.5

$ 43.0

69%

$ 192.0

$ 89.8

114%

    Social gaming

$ 61.4

$ 29.9

105%

$ 157.1

$ 51.2

207%

    IGTi

$ 11.1

$ 13.1

-15%

$   34.9

$ 38.6

-10%













Gross Margin

63%

52%

21%

61%

53%

15%

    Social gaming

62%

61%

2%

61%

61%

-

    IGTi

65%

32%

103%

58%

42%

38%













Double Down Average User Statistics*











    DAU (Daily active users) ('000)

1,690

1,355

25%

1,613

1,351

19%

    MAU (Monthly active users) ('000)

6,658

5,217

28%

5,950

5,110

16%

    Bookings per DAU (0.00)

$ 0.40

$ 0.25

60%

$   0.36

$ 0.25

44%

*as a single application with multiple games, active users equal unique users
  • Social gaming revenues more than doubled compared to the prior year quarter and increased 13% from the prior sequential quarter to $61 million, primarily driven by increased average bookings per DAU.
  • Average DAU were 1.7 million, an increase of 25% over the prior year quarter and flat compared to the prior sequential quarter.
  • Average MAU were 6.7 million, an increase of 28% compared to the prior year quarter and an increase of 6% compared to the prior sequential quarter.
  • Average bookings per DAU increased 60% over the same quarter last year and 8% from the prior sequential quarter to $0.40.

Operating Expenses and Other Income/Expense

($ in millions)

Quarters Ended

Nine Months Ended

June 30,

June 30,

2013

2012

% Change

2013

2012

% Change

Operating Expenses











Selling, general & administrative

$ 114.4

$ 104.9

9%

$ 325.0

$ 303.8

7%

Research & development

59.8

55.1

9%

172.3

157.3

10%

Depreciation & amortization

19.3

21.1

-9%

58.0

55.8

4%

Contingent acquisition related costs

19.2

26.0

-26%

58.6

37.8

55%

Impairment

1.5

-

*

3.1

-

*

Total operating expenses

$ 214.2

$ 207.1

3%

$ 617.0

$ 554.7

11%













Adjusted Operating Expenses











    Total

$ 185.4

$ 175.0

6%

$ 534.4

$ 496.9

8%













Adjusted operating expenses is a non-GAAP financial measure.  Reconciliations between GAAP and non-GAAP measures are provided at the end of this release.
  • Third quarter operating expenses increased 3% over the prior year quarter primarily due to increased headcount, professional fees including proxy contest-related expenses and advertising expenses related to increased online social gaming revenues, partially offset by decreases in bad debt provisions and acquisition-related charges.
  • Adjusted operating expenses were 32% of revenues compared to 33% of revenues in the prior year quarter.

Balance Sheet and Capital Deployment


($ in millions)

June 30,

September 30,


2013

2012

% Change






Cash and equivalents (including restricted amounts)

$    302.1

$     288.2

5%

Working capital

$  (228.8)

$     633.0

-136%

Contractual debt obligations

$ 1,650.0

$  1,790.0

-8%
  • During the quarter, the company announced its third consecutive quarterly cash dividend increase, an increase of 50% compared to the dividend paid in the same quarter last year. 

Other

References to per share amounts in this release are based on diluted shares of common stock, unless otherwise specified.

Outlook

Based on current expectations and the operating results for the third quarter of fiscal 2013, the company is affirming its fiscal year 2013 guidance for adjusted earnings from continuing operations of $1.26 to $1.32 per share. 

GAAP earnings per share from continuing operations for fiscal year 2013 will include acquisition-related expenses, primarily related to DoubleDown, proxy contest-related fees, certain tax-related items and impairment charges.  The company may also recognize other items that are not currently determinable, but may be significant. For this reason, the company is unable to provide estimates for full-year GAAP earnings per share from continuing operations at this time.

Earnings Conference Call

As previously announced on July 9, 2013, IGT will host a conference call to discuss its Third Quarter 2013 earnings results on Tuesday, July 23, 2013, at 2:00 p.m. PDT (or 5:00 p.m. EDT). The access numbers are as follows:

Domestic callers dial +1 877-601-4716, passcode IGT
International callers dial +1 773-756-4816, passcode IGT

The conference call will also be broadcast live over the Internet. A link to the webcast is available at the IGT website: http://www.IGT.com/investors.  The call will be archived until Tuesday, August 6, 2013 at http://www.IGT.com/investors, for those interested parties that are unable to participate during the live webcast.

A taped replay of the conference call will be available after the conference call. This replay will run through Tuesday, August 6, 2013.  The access numbers are as follows:

Domestic callers dial +1 866-395-7260
International callers dial +1 203-369-0489

Q3 FY 2013 Excel file

Q3 FY 2013 PDF of this press release

Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties.  These statements include our expected future financial and operational performance (including our guidance for fiscal year 2013) and our strategic and operational plans.  These statements involve a number of risks and uncertainties that could cause actual results to differ materially from the results predicted, and reported results should not be considered an indication of future performance.  Among the factors that could cause actual results and outcomes to differ materially from those contained in such forward-looking statements are the following: general economic conditions and changes in economic conditions affecting the gaming industry; new or changing laws or regulations or new interpretations of existing laws or regulations affecting our business; difficulties or delays in obtaining or maintaining necessary licenses or approvals; slow growth in the number of new gaming jurisdictions or new casinos or the rate of replacement of existing gaming machines; changes in operator or player preferences for our products; our ability to compete in the gaming industry with new or existing competitors; our ability to develop and introduce new products and their acceptance by our customers; risks related to our international operations; our ability to protect our intellectual property; adverse results of litigation, including intellectual property infringement claims; risks related to business combinations, investments in intellectual property and the integration of acquisitions; and future developments or changes affecting online gaming or social casino-style gaming, which is a new and evolving industry.  A further list and description of these and other risks, uncertainties and other matters can be found in our annual report and other reports filed with the Securities and Exchange Commission, including under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for fiscal 2012 filed with the SEC on November 28, 2012 and our Quarterly Report on Form 10-Q for our fiscal quarter ended March 31, 2013 filed with the SEC on May 8, 2013 and available on the SEC website at www.sec.gov and on the investor relations section of our website at www.IGT.com/investors.  Additional information will also be set forth in our Quarterly Report on Form 10-Q for our fiscal quarter ended June 30, 2013, which we expect to file with the SEC in the third quarter of calendar 2013.  All information provided in this release is as of July 23, 2013, and IGT does not intend, and undertakes no duty, to update this information to reflect subsequent events or circumstances.

IGT Resources:

About IGT

International Game Technology (NYSE: IGT) is a global leader in casino gaming entertainment and continues to transform the industry by translating casino player experiences to social, mobile and interactive environments for markets around the world. IGT's acquisition of DoubleDown Interactive provides engaging social casino style entertainment to more than 6 million players monthly. More information about IGT is available at IGT.com or connect with IGT at @IGTNews or facebook.com/IGT. Anyone can play at the DoubleDown Casino by visiting http://apps.facebook.com/doubledowncasino or doubledowncasino.com

CONSOLIDATED STATEMENTS OF INCOME (Unaudited and Condensed)







Periods Ended June 30,

Third Quarters

Nine Months

2013

2012

2013

2012

(In millions, except per share amounts)




Revenues




Gaming operations

$ 247.3

$ 258.2

$  744.3

$  776.4

Product sales

259.2

231.6

772.9

653.4

Interactive

72.5

43.0

192.0

89.8

   Total revenues

579.0

532.8

1,709.2

1,519.6

Costs and operating expenses




Cost of gaming operations

95.6

102.5

282.7

303.5

Cost of product sales

119.3

107.2

363.7

305.4

Cost of interactive

26.9

20.5

75.1

42.5

Selling, general and administrative

114.4

104.9

325.0

303.8

Research and development

59.8

55.1

172.3

157.3

Depreciation and amortization

19.3

21.1

58.0

55.8

Contingent acquisition-related costs

19.2

26.0

58.6

37.8

Impairment 

1.5

-

3.1

-

   Total costs and operating expenses

456.0

437.3

1,338.5

1,206.1

Operating income

123.0

95.5

370.7

313.5

Other income (expense)




Interest income

11.5

11.0

34.0

33.9

Interest expense

(30.5)

(30.8)

(92.4)

(90.9)

Other  

(6.7)

(1.6)

(9.6)

(6.4)

    Total other income (expense)

(25.7)

(21.4)

(68.0)

(63.4)

Income from continuing operations before tax 

97.3

74.1

302.7

250.1

Income tax provision 

31.6

27.2

93.5

90.5

Income from continuing operations

65.7

46.9

209.2

159.6

Loss from discontinued operations, net of tax

-

(0.3)

-

(1.8)

Net income

$   65.7

$   46.6

$  209.2

$  157.8

Basic earnings (loss) per share




Continuing operations

$   0.25

$   0.16

$    0.79

$    0.54

Discontinued operations

-

-

-

(0.01)

Net income

$   0.25

$   0.16

$    0.79

$    0.53

Diluted earnings (loss) per share




Continuing operations

$   0.25

$   0.16

$    0.79

$    0.54

Discontinued operations

-

-

-

(0.01)

Net income

$   0.25

$   0.16

$    0.79

$    0.53

Weighted average shares outstanding




Basic

260.6

292.7

263.4

295.6

Diluted 

263.2

294.3

265.6

297.2

CONSOLIDATED BALANCE SHEET (Unaudited and Condensed)






 June 30, 

 September 30, 

2013

2012

(In millions)


Assets


Current assets


Cash and equivalents

$    229.3

$               206.3

Restricted cash and investments

72.8

81.9

Jackpot annuity investments 

57.4

60.2

Receivables, net

560.1

564.8

Inventories

95.4

92.9

Other assets and deferred costs

254.3

257.2

  Total current assets

1,269.3

1,263.3

Property, plant and equipment, net

499.2

555.7

Jackpot annuity investments 

272.7

295.7

Contracts and notes receivable, net

123.5

139.3

Goodwill and other intangibles, net

1,610.6

1,663.1

Other assets and deferred costs

339.1

368.0

Total Assets

$ 4,114.4

$            4,285.1

Liabilities and Shareholders' Equity


Current liabilities


Short-term debt

$    850.0

$                       -

Accounts payable

98.7

87.5

Jackpot liabilities, current portion

139.3

152.4

Dividends payable

23.5

16.0

Other accrued liabilities  

386.6

374.4

  Total current liabilities

1,498.1

630.3

Long-term debt

835.2

1,846.4

Jackpot liabilities

296.5

328.6

Other liabilities

197.1

282.0

Total Liabilities

2,826.9

3,087.3

Total Equity

1,287.5

1,197.8

Total Liabilities and Shareholders' Equity

$ 4,114.4

$            4,285.1

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited and Condensed)





Nine Months Ended

June 30,

2013

2012

(In millions)


Operating


Net income

$ 209.2

$ 157.8

Adjustments:


Depreciation and amortization

175.6

179.3

Acquisition-related contingent earn-out costs

28.0

11.1

Other non-cash items

74.6

64.4

Changes in operating assets and liabilities, excluding acquisitions:


Receivables

(20.7)

(24.6)

Inventories

3.7

(14.4)

Accounts payable and accrued liabilities

(58.7)

14.5

Jackpot liabilities

(58.2)

(38.5)

Income taxes, net of employee stock plans

(25.5)

(6.5)

Other assets and deferred costs

7.2

(16.1)

Net operating cash flows

335.2

327.0

Investing


Capital expenditures

(97.1)

(170.8)

Jackpot annuity investments, net

39.3

36.7

Changes in restricted cash

8.8

6.7

Loans receivable, net

22.6

21.5

Business acquisitions, net of cash acquired

-

(233.9)

Other

15.3

29.6

Net investing cash flows

(11.1)

(310.2)

Financing


Debt-related proceeds (payments), net

(143.2)

280.0

Employee stock plan proceeds

13.7

15.1

Share repurchases

(81.0)

(475.1)

Noncontrolling interest acquired

-

(2.5)

Dividends paid

(55.5)

(53.5)

Acquisition-related contingent consideration

(27.9)

-

Net financing cash flows

(293.9)

(236.0)

Foreign exchange rates effect on cash 

(7.2)

0.5

Net change in cash and equivalents

23.0

(218.7)

Beginning cash and equivalents

206.3

460.0

Ending cash and equivalents

$ 229.3

$ 241.3

SUPPLEMENTAL DATA (Unaudited)











Periods Ended June 30,

Revenue Metrics

Third Quarters

Nine Months

2013

2012

2013

2012

In millions, unless otherwise noted




Gaming Operations




Revenues

$ 247.3

$ 258.2

$ 744.3

$ 776.4

North America

214.1

225.6

643.0

678.2

International

33.2

32.6

101.3

98.2

Gross margin

61%

60%

62%

61%

North America

60%

60%

61%

60%

International

69%

62%

69%

70%

Installed base ('000)

56.7

56.9

56.7

56.9

North America

42.5

43.4

42.5

43.4

International

14.2

13.5

14.2

13.5

Average revenue per unit per day (0.00)

$47.96

$50.20

$47.91

$51.31

Product Sales




Revenues

$ 259.2

$ 231.6

$ 772.9

$ 653.4

North America

184.7

160.1

544.2

424.0

International

74.5

71.5

228.7

229.4

Machines

$ 177.9

$ 159.2

$ 537.8

$ 436.0

North America

123.5

107.8

374.1

268.3

International

54.4

51.4

163.7

167.7

Non-machine

$   81.3

$   72.4

$ 235.1

$ 217.4

North America

61.2

52.3

170.1

155.7

International

20.1

20.1

65.0

61.7

Gross margin

54%

54%

53%

53%

North America

56%

56%

55%

56%

International

50%

49%

49%

49%

Units recognized ('000)

13.4

11.6

38.4

29.1

North America

10.0

8.2

28.3

18.8

International

3.4

3.4

10.1

10.3

Units shipped ('000) [includes units where revenues deferred]

13.6

12.6

37.2

29.6

North America

10.3

8.7

28.3

18.9

New

2.5

3.1

6.9

5.4

Replacement

7.8

5.6

21.4

13.5

International

3.3

3.9

8.9

10.7

New

0.9

1.1

2.7

4.4

Replacement

2.4

2.8

6.2

6.3

Average machine sales price ('000)

$   13.3

$   13.7

$   14.0

$   15.0

North America

12.4

13.1

13.2

14.3

International

16.1

15.1

16.2

16.3

Interactive




Revenues

$   72.5

$   43.0

$ 192.0

$   89.8

North America

62.2

30.3

158.8

52.0

International

10.3

12.7

33.2

37.8

Social

61.4

29.9

157.1

51.2

North America

61.4

29.9

157.1

51.2

International

-

-

-

-

IGTi

11.1

13.1

34.9

38.6

North America

0.8

0.4

1.7

0.8

International

10.3

12.7

33.2

37.8

Gross margin

63%

52%

61%

53%

North America

63%

62%

62%

60%

International

65%

30%

58%

42%

DoubleDown Casino®Average User Statistics*




Daily active users (DAU) ('000)

1,690

1,355

1,613

1,351

Monthly active users (MAU) ('000)

6,658

5,217

5,950

5,110

Bookings per DAU (0.00)

$0.40

$0.25

$0.36

$0.25

*as a single application with multiple games, active users equal unique users




Reconciliations of GAAP to Non-GAAP Adjusted Financial Measures 

(In millions, except EPS)

















Third Quarter Ended June 30, 2013










Continuing Operations

Product Sales Revenue

Cost of
Interactive

Operating
Expenses

Operating
Income

Net
Earnings (a)

Diluted
EPS







GAAP measures

$ 259.2

$  26.9

$ 214.2

$ 123.0

$  65.7

$ 0.25

% of revenue

37%

21%

Acquisition-related charges: (b)





Contingent retention & earn-out

-

-

(19.2)

19.2

12.8

0.05

Amortization of intangibles

-

(2.3)

(4.4)

6.7

4.4

0.02

Proxy fees

-

-

(3.7)

3.7

2.5

0.01

Building impairment

-

-

(1.5)

1.5

1.0

-

Total non-GAAP adjustments

-

(2.3)

(28.8)

31.1

20.7

0.08







Adjusted measures

$   259.2

$  24.6

$ 185.4

$ 154.1

$  86.4

$ 0.33

% of revenue

32%

27%


Nine Months Ended June 30, 2013









Continuing Operations

Product Sales Revenue

Cost of
Interactive

Operating
Expenses

Operating
Income

Net
Earnings (a)

Diluted
EPS







GAAP measures

$ 772.9

$  75.1

$ 617.0

$ 370.7

$ 209.2

$ 0.79

% of revenue

36%

22%

Acquisition-related charges: (b)





Contingent retention & earn-out

-

-

(58.6)

58.6

39.1

0.14

Amortization of intangibles

-

(6.9)

(13.3)

20.2

13.5

0.05

Proxy fees

-

-

(7.6)

7.6

5.1

0.02

Impairment

-

-

(3.1)

3.1

2.1

0.01

Royalty settlement

(5.0)

-

-

(5.0)

(5.0)

(0.02)

Certain discrete tax items (benefits)

-

-

-

-

(5.9)

(0.02)

Total non-GAAP adjustments

(5.0)

(6.9)

(82.6)

84.5

48.9

0.18







Adjusted measures

$ 767.9

$  68.2

$ 534.4

$ 455.2

$ 258.1

$ 0.97

% of revenue

31%

27%








(a)Adjustments tax effected at 33%, except no tax effect on royalty settlement

(b)Primarily related to DoubleDown 

Third Quarter Ended June 30, 2012








Continuing Operations

Cost of
Interactive

Operating
Expenses

Operating
Income

Net
Earnings (a)

Diluted
EPS






GAAP measures

$  20.5

$ 207.1

$  95.5

$  46.9

$ 0.16

% of revenue

39%

18%

Acquisition-related charges: (b)




Contingent retention & earn-out

-

(26.0)

26.0

16.6

0.06

Amortization of intangibles

(1.7)

(4.7)

6.4

4.1

0.01

Professional fees

-

(0.1)

0.1

0.1

-

Severance

-

(1.3)

1.3

0.8

-

Total non-GAAP adjustments

(1.7)

(32.1)

33.8

21.6

0.07






Adjusted measures

$  18.8

$ 175.0

$ 129.3

$  68.5

$ 0.23

% of revenue

33%

24%

Nine Months Ended June 30, 2012







Continuing Operations

Cost of
Interactive

Operating
Expenses

Operating
Income

Net
Earnings (a)

Diluted
EPS






GAAP measures

$  42.5

$ 554.7

$ 313.5

$ 159.6

$  0.54

% of revenue

37%

21%

Acquisition-related charges: (b)




Contingent retention & earn-out

-

(37.8)

37.8

24.2

0.08

Amortization of intangibles

(4.0)

(8.6)

12.6

8.1

0.03

Professional fees

-

(5.8)

5.8

3.7

0.01

Distributor settlement

-

(3.1)

3.1

2.0

0.01

Severance

-

(2.5)

2.5

1.6

-

Total non-GAAP adjustments

(4.0)

(57.8)

61.8

39.6

0.13






Adjusted measures

$  38.5

$ 496.9

$ 375.3

$ 199.2

$  0.67

% of revenue

33%

25%







(a) Adjustments tax effected at 36%



(b) Primarily related to DoubleDown 



Adjusted EBITDA For The Periods Ended June 30,

Third Quarters

Nine Months

2013

2012

2013

2012








GAAP Income from continuing operations

$    65.7

$    46.9

$  209.2

$  159.6

Other (income) expense, net

25.7

21.4

68.0

63.4

Income tax provision

31.6

27.2

93.5

90.5

Depreciation and amortization

57.8

64.1

175.6

179.3

Other charges:






Share-based compensation 

10.1

8.8

28.7

25.4

Contingent acquisition-related costs

19.2

26.0

58.6

37.8

Impairment 

1.5

-

3.1

-

Adjusted EBITDA 

$  211.6

$  194.4

$  636.7

$  556.0








Free Cash Flow For The Nine Months Ended June 30,



2013

2012




GAAP net operating cash flows

$  335.2

$  327.0

Investment in property, plant and equipment

(18.7)

(35.3)

Investment in gaming operations equipment

(78.1)

(133.2)

Investment in intellectual property

(0.3)

(2.3)

Free Cash Flow (before dividends)

238.1

156.2

Dividends paid

(55.5)

(53.5)

Free Cash Flow (after dividends)

$  182.6

$  102.7

We believe that certain non-GAAP financial measures, when presented in conjunction with comparable GAAP (Generally Accepted Accounting Principles) measures, are useful because that information is an appropriate measure for evaluating our operating performance. Non-GAAP information is used to evaluate business performance and management's effectiveness. These measures should be considered in addition to, not as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. Non-GAAP financial measures may not be calculated in the same manner by all companies and therefore may not be comparable.

SOURCE International Game Technology

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

icon3
440k+
Newsrooms &
Influencers
icon1
9k+
Digital Media
Outlets
icon2
270k+
Journalists
Opted In
GET STARTED