LONDON, Nov. 14, 2017 /PRNewswire/ -- International
Game Technology PLC ("IGT") (NYSE:IGT) today reported financial
results for the third quarter and nine months ended September 30, 2017. Today, at 8:00 a.m. EST, management will host a conference
call and webcast to present the third quarter results; access
details are provided below.
"Our strong third quarter performance reflects the scope
and balance of our business," said Marco Sala, CEO of IGT. "Our largest global
Lottery operations are growing steadily and acceptance of
our newest gaming machines is expanding around the world. The
significant increase in Gaming and Lottery product sales
demonstrates clear interest in our systems and technology
solutions. We expect our sustained investment in
innovation, led by a customer-first, player-centric focus, to drive
continued momentum in both Lottery and Gaming."
"Thanks to a favorable product sales mix and reduced
operating expenses, Adjusted EBITDA improved from the
prior-year period, after considering certain non-comparable
items, such as the DoubleDown sale," said Alberto Fornaro, CFO of IGT. "Based on the
year-to-date results and current exchange rates, we
expect to achieve Adjusted EBITDA of $1,640-$1,680 million for the full-year
period."
Summary of Consolidated Third Quarter 2017 Financial
Results
|
Quarter Ended
September 30,
|
Change
|
Constant
Currency
Change
|
|
2017
|
2016
|
(%)
|
(%)
|
(In $ millions,
unless otherwise noted)
|
|
|
|
|
Revenue
|
1,221
|
1,266
|
-4%
|
-6%
|
Operating income
(loss)
|
(556)
|
164
|
-439%
|
-447%
|
Net (loss) income per
diluted share
|
(3.95)
|
(0.01)
|
NM
|
|
Net debt
|
7,335
|
7,937
|
-8%
|
|
Adjusted
EBITDA
|
428
|
430
|
0%
|
-3%
|
Adjusted operating
income
|
258
|
286
|
-10%
|
-12%
|
Adjusted net income
per diluted share
|
0.40
|
0.45
|
-11%
|
|
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 Third Quarter Results
Consolidated revenue was $1,221
million compared to $1,266
million in the third quarter of 2016. Revenue was down 6% in
constant currency, primarily on the sale of Double Down Interactive
LLC ("DoubleDown") and new Lotto concession amortization. Adjusted
for these items, consolidated revenue was up 2% in constant
currency, reflecting growth in global Lottery and Gaming revenue.
Global lottery same-store revenue, excluding Italy, grew a robust 6.8% in the third
quarter, led by broad-based strength in North America. In Italy, late numbers activity was considerably
lower than the elevated levels in the third quarter of 2016.
Excluding late numbers, Italy
lottery wagers increased 6% on exceptional growth for both 10eLotto
and Scratch & Win.
Gaming service revenue declined 9%, primarily impacted by the
DoubleDown sale; adjusted for DoubleDown, gaming service revenue
increased 5%. The global installed base grew 3,275 units from the
prior-year period, including expansion for both casino and VLT
units. Global gaming product revenue increased 9% from the
prior-year period on strong system and software sales. The Company
shipped 6,406 gaming machines worldwide during the third quarter
with higher average selling prices than the prior year.
Operating loss of $556 million is
due to a non-cash, non-tax deductible impairment charge of
$714 million to write down the
carrying value of the Company's North America Gaming and
Interactive reporting unit to fair value. The impairment charge
reflects a delayed recovery for the North America Gaming and
Interactive reporting unit. Going forward, revenue and profit
levels for the North America Gaming and Interactive reporting unit
are expected to grow as new games and cabinets come to market. The
impairment charge has no impact on the Company's operations, cash
flow, ability to service debt, compliance with financial covenants,
or underlying liquidity.
Adjusted operating income was $258
million compared to $286
million in the prior-year period. Adjusted EBITDA was
$428 million compared to $430 million in the third quarter of 2016, as
higher product sales and lower operating expenses essentially
compensated for the DoubleDown sale and the timing of incentive
contributions from the New Jersey Lottery.
Interest expense was $114 million
compared to $118 million in the
prior-year period.
Net loss attributable to IGT was $804
million in the third quarter of 2017, reflecting the
previously mentioned impairment charge and $118 million of net foreign exchange loss. On an
adjusted basis, net income attributable to IGT was to $81 million. The Company reported a net loss per
diluted share of $(3.95) and earned
$0.40 per diluted share on an
adjusted basis.
Cash from operations was $601
million in the first nine months of the year and capital
expenditures were $552 million.
Cash and cash equivalents were $300
million as of September 30,
2017, compared to $294 million
as of December 31, 2016. Net debt was
$7,335 million as of September 30, 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 $262 million compared to $317 million in the third quarter of 2016.
Comparability is affected by the DoubleDown sale; adjusted for
DoubleDown, revenue for North America Gaming & Interactive rose
4% in the third quarter.
Service revenue was $171 million
compared to $241 million in the
prior-year period, the decline is primarily attributed to
DoubleDown and a year-over-year decrease in the installed base.
Product sales revenue increased 20% to $91 million, driven by large software and system
sales. The segment shipped 3,597 gaming machine units in the
quarter compared to 5,238 units in the prior-year period, when
there was significant new and expansion and VLT replacement
activity. Average selling price per unit was higher, supported by
demand for new cabinets.
Operating income for North America Gaming & Interactive was
$65 million compared to $68 million in the third quarter of 2016. The
decline is entirely attributable to the DoubleDown sale, which was
largely offset by a high-margin product sales mix and lower
operating expenses.
North America Lottery
North America Lottery revenue of
$307 million was in line with the
prior-year period, which included a significant incentive
contribution from the New Jersey Lottery; the 2017 New Jersey
incentive was mostly recognized in the second quarter of 2017.
Adjusting for the timing of the New
Jersey contribution, revenue increased 9% from the prior
year.
Lottery same-store revenue rose 9.4% on top of 6.3% growth in
the prior year, supported by broad-based strength in draw-based
games, instant tickets, and multi-state jackpots. Product sales
were significantly above the prior year.
Operating income for North America Lottery was $75 million compared to $85 million in the third quarter of 2016.
Adjusted for the timing of the New Jersey Lottery incentive,
operating income was up double-digits on the high profit
flow-through of strong same-store revenue growth.
International
International revenue increased 9% to
$234 million, and was up 8% on a
constant currency basis.
Lottery service revenue of $70
million was essentially in line with the prior year, as a
1.4% decline in same-store revenue was offset by a higher effective
rate in the period.
Gaming service revenue increased 36% to $59 million, reflecting the benefit of discrete,
non-recurring items and significant expansion in the installed
base.
Product sales revenue rose 5% to $87
million, supported by Gaming system and Lottery software
sales. Gaming terminal sales were below the prior year, as the
segment shipped a total of 2,809 gaming machine units during the
third quarter of 2017 compared to 3,742 units in the prior-year
period.
International operating income of $40
million increased 7% at constant currency, reflecting higher
revenue and disciplined cost management that was partially offset
by product mix.
Italy
Italy revenue was $418
million compared to $426
million in the third quarter of 2016. The decline in revenue
is entirely attributable to amortization associated with the new
Lotto concession and significantly lower late numbers activity.
Total Lotto wagers in the quarter were €1,815 million compared
to €1,967 million in the prior-year period. Excluding late numbers,
Lotto wagers increased 7% over the prior- year period reflecting
strong growth in 10eLotto. Instant-ticket wagers grew 5% reaching
€2,198 million on the strong acceptance of new games.
Machine gaming service revenue was down in constant currency on
higher gaming machine taxes that were partially offset by improved
VLT performance. Sports betting revenue rose on strong wager
growth.
Italy operating income was
$126 million compared to $147 million in the third quarter of 2016. The
decrease was entirely attributable to the new Lotto amortization,
as strong underlying performance offset higher gaming machine taxes
and lower late number wagers.
Other Developments
The Company's board of directors declared a quarterly cash
dividend of $0.20 per ordinary share.
The dividend is payable on December 12,
2017 to holders of record as of the close of business on
November 28,
2017.
Outlook
Based on the year-to-date results and current exchange rates,
the Company expects to achieve adjusted EBITDA of $1,640-$1,680 million for the full-year period.
Net debt is expected to remain essentially in line with the third
quarter level.
Conference Call and Webcast
Today, at 8:00 a.m. EST,
management will host a conference call to present the third quarter
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 2259942. 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 2259942.
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
|
|
September
30,
|
|
2017
|
|
2016
|
|
|
|
|
Service
revenue
|
1,013,054
|
|
1,088,842
|
Product
sales
|
208,147
|
|
176,808
|
Total
revenue
|
1,221,201
|
|
1,265,650
|
|
|
|
|
Cost of
services
|
625,247
|
|
625,235
|
Cost of product
sales
|
150,358
|
|
136,702
|
Selling, general and
administrative
|
196,862
|
|
242,510
|
Research and
development
|
79,009
|
|
87,354
|
Restructuring
expense
|
9,976
|
|
5,658
|
Impairment
loss
|
715,220
|
|
4,230
|
Transaction expense,
net
|
627
|
|
129
|
Total operating
expenses
|
1,777,299
|
|
1,101,818
|
|
|
|
|
Operating (loss)
income
|
(556,098)
|
|
163,832
|
|
|
|
|
Interest
income
|
2,906
|
|
3,240
|
Other (expense)
income, net
|
(9,802)
|
|
2,907
|
Foreign exchange
loss, net
|
(117,526)
|
|
(21,143)
|
Interest
expense
|
(113,711)
|
|
(117,618)
|
Total
non-operating expenses
|
(238,133)
|
|
(132,614)
|
|
|
|
|
(Loss) income
before (benefit from) provision for income taxes
|
(794,231)
|
|
31,218
|
|
|
|
|
(Benefit from)
provision for income taxes
|
(19,824)
|
|
12,812
|
|
|
|
|
Net (loss)
income
|
(774,407)
|
|
18,406
|
|
|
|
|
Less: Net income
attributable to non-controlling interests
|
29,207
|
|
20,309
|
|
|
|
|
Net loss
attributable to IGT PLC
|
(803,614)
|
|
(1,903)
|
|
|
|
|
|
|
|
|
Net loss
attributable to IGT PLC per common share - basic
|
(3.95)
|
|
(0.01)
|
Net loss
attributable to IGT PLC per common share - diluted
|
(3.95)
|
|
(0.01)
|
|
|
|
|
Weighted-average
shares - basic
|
203,489
|
|
202,029
|
Weighted-average
shares - diluted
|
203,489
|
|
202,029
|
International Game
Technology PLC
|
Condensed
Consolidated Statements of Operations
|
($ and shares
in thousands, except per share data)
|
Unaudited
|
|
|
|
|
|
For the nine
months ended
|
|
September
30,
|
|
2017
|
|
2016
|
|
|
|
|
Service
revenue
|
3,063,477
|
|
3,313,917
|
Product
sales
|
529,812
|
|
518,763
|
Total
revenue
|
3,593,289
|
|
3,832,680
|
|
|
|
|
Cost of
services
|
1,866,281
|
|
1,911,830
|
Cost of product
sales
|
403,056
|
|
403,118
|
Selling, general and
administrative
|
607,571
|
|
709,277
|
Research and
development
|
242,142
|
|
256,349
|
Restructuring
expense
|
30,706
|
|
21,514
|
Impairment
loss
|
715,220
|
|
6,582
|
Transaction (income)
expense, net
|
(26,682)
|
|
1,560
|
Total operating
expenses
|
3,838,294
|
|
3,310,230
|
|
|
|
|
Operating (loss)
income
|
(245,005)
|
|
522,450
|
|
|
|
|
Interest
income
|
7,992
|
|
10,287
|
Other expense,
net
|
(33,247)
|
|
(4,994)
|
Foreign exchange
loss, net
|
(384,749)
|
|
(94,547)
|
Interest
expense
|
(344,494)
|
|
(353,748)
|
Total
non-operating expenses
|
(754,498)
|
|
(443,002)
|
|
|
|
|
(Loss) income
before provision for income taxes
|
(999,503)
|
|
79,448
|
|
|
|
|
Provision for income
taxes
|
53,932
|
|
64,593
|
|
|
|
|
Net (loss)
income
|
(1,053,435)
|
|
14,855
|
|
|
|
|
Less: Net income
attributable to non-controlling interests
|
94,870
|
|
36,836
|
|
|
|
|
Net loss
attributable to IGT PLC
|
(1,148,305)
|
|
(21,981)
|
|
|
|
|
|
|
|
|
Net loss
attributable to IGT PLC per common share - basic
|
(5.66)
|
|
(0.11)
|
Net loss
attributable to IGT PLC per common share - diluted
|
(5.66)
|
|
(0.11)
|
|
|
|
|
Weighted-average
shares - basic
|
203,002
|
|
201,238
|
Weighted-average
shares - diluted
|
203,002
|
|
201,238
|
International Game
Technology PLC
|
Condensed
Consolidated Balance Sheets
|
($
thousands)
|
Unaudited
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
2017
|
|
2016
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
300,079
|
|
294,094
|
Restricted cash and
investments
|
236,731
|
|
247,222
|
Trade and other
receivables, net
|
948,993
|
|
947,237
|
Inventories
|
370,911
|
|
347,494
|
Other current
assets
|
400,991
|
|
424,727
|
Income taxes
receivable
|
26,919
|
|
28,792
|
Total
current assets
|
2,284,624
|
|
2,289,566
|
|
|
|
|
Systems, equipment
and other assets related to contracts, net
|
1,405,335
|
|
1,199,674
|
Property, plant and
equipment, net
|
197,633
|
|
357,841
|
Goodwill,
net
|
5,715,885
|
|
6,810,012
|
Intangible assets,
net
|
2,325,960
|
|
2,874,031
|
Other non-current
assets
|
1,485,199
|
|
1,497,662
|
Deferred income
taxes
|
32,303
|
|
31,376
|
Total
non-current assets
|
11,162,315
|
|
12,770,596
|
|
|
|
|
Total
assets
|
13,446,939
|
|
15,060,162
|
|
|
|
|
Liabilities,
redeemable non-controlling interests, and shareholders'
equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
1,150,748
|
|
1,216,079
|
Other current
liabilities
|
814,161
|
|
1,097,045
|
Current portion of
long-term debt
|
588,342
|
|
77
|
Income taxes
payable
|
165,072
|
|
28,590
|
Total
current liabilities
|
2,718,323
|
|
2,341,791
|
|
|
|
|
Long-term debt, less
current portion
|
7,046,678
|
|
7,863,085
|
Deferred income
taxes
|
602,015
|
|
761,924
|
Other non-current
liabilities
|
434,174
|
|
444,556
|
Total
non-current liabilities
|
8,082,867
|
|
9,069,565
|
|
|
|
|
Total
liabilities
|
10,801,190
|
|
11,411,356
|
|
|
|
|
Commitments and
contingencies
|
-
|
|
-
|
|
|
|
|
Redeemable
non-controlling interests and shareholders' equity
|
2,645,749
|
|
3,648,806
|
|
|
|
|
Total liabilities,
redeemable non-controlling interests, and shareholders'
equity
|
13,446,939
|
|
15,060,162
|
International Game
Technology PLC
|
Condensed
Consolidated Statements of Cash Flows
|
($
thousands)
|
Unaudited
|
|
|
|
|
|
|
|
For the nine
months ended
|
|
|
September
30,
|
|
|
2017
|
|
2016
|
Operating
activities
|
|
|
|
|
Net (loss)
income
|
|
(1,053,435)
|
|
14,855
|
Adjustments
for:
|
|
|
|
|
Impairment
loss
|
|
715,220
|
|
6,582
|
Foreign exchange
loss, net
|
|
384,749
|
|
94,547
|
Amortization
|
|
317,989
|
|
377,163
|
Depreciation
|
|
289,088
|
|
293,284
|
Amortization of
upfront payments to customers
|
|
155,318
|
|
85,160
|
Loss on early
extinguishment of debt
|
|
35,428
|
|
-
|
Debt issuance cost
amortization
|
|
16,602
|
|
13,757
|
Stock-based
compensation expense
|
|
5,102
|
|
24,502
|
Non-cash gain on sale
of Double Down Interactive LLC
|
|
(51,348)
|
|
-
|
Other, net
|
|
8,428
|
|
16,603
|
Cash flows before
changes in operating assets and liabilities
|
|
823,141
|
|
926,453
|
Changes in operating
assets and liabilities, net of disposition:
|
|
|
|
|
Trade and other
receivables
|
|
42,023
|
|
83,085
|
Inventories
|
|
16,526
|
|
(46,761)
|
Accounts
payable
|
|
(60,733)
|
|
(135,297)
|
Other assets and
liabilities
|
|
(220,004)
|
|
(206,483)
|
Net cash flows
provided by operating activities
|
|
600,953
|
|
620,997
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
Proceeds from sale of
Double Down Interactive LLC, net of cash divested
|
|
823,788
|
|
-
|
Proceeds from sale of
assets
|
|
168,201
|
|
55,713
|
Upfront payments to
customers
|
|
(185,368)
|
|
(390,390)
|
Capital
expenditures
|
|
(552,169)
|
|
(371,497)
|
Other
|
|
2,779
|
|
15,196
|
Net cash flows
provided by (used in) investing activities
|
|
257,231
|
|
(690,978)
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
Principal payments on
long-term debt
|
|
(1,601,134)
|
|
(177,977)
|
Dividends
paid
|
|
(121,840)
|
|
(120,726)
|
Return of capital -
non-controlling interests
|
|
(62,538)
|
|
(35,407)
|
Dividends paid -
non-controlling interests
|
|
(51,508)
|
|
(27,813)
|
Payments in
connection with the early extinguishment of debt
|
|
(38,832)
|
|
-
|
Net payments of
financial liabilities
|
|
(32,495)
|
|
-
|
Debt issuance costs
paid
|
|
(16,350)
|
|
(10,736)
|
Capital increase -
non-controlling interests
|
|
127,211
|
|
151,359
|
Proceeds from
long-term debt
|
|
938,160
|
|
-
|
Other
|
|
(24,785)
|
|
2,225
|
Net cash flows
used in financing activities
|
|
(884,111)
|
|
(219,075)
|
|
|
|
|
|
Net decrease in cash
and cash equivalents
|
|
(25,927)
|
|
(289,056)
|
Effect of exchange
rate changes on cash
|
|
31,912
|
|
11,471
|
Cash and cash
equivalents at the beginning of the period
|
|
294,094
|
|
627,484
|
Cash and cash
equivalents at the end of the period
|
|
300,079
|
|
349,899
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Cash Flow Information:
|
|
|
|
|
Interest
paid
|
|
(397,555)
|
|
(408,864)
|
Income taxes
paid
|
|
(159,613)
|
|
(136,015)
|
International Game
Technology PLC
|
Net
Debt
|
($
thousands)
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
2017
|
|
2016
|
|
|
|
|
6.250% Senior Secured
Notes due 2022
|
1,476,058
|
|
1,472,150
|
6.500% Senior Secured
Notes due 2025
|
1,086,560
|
|
1,085,537
|
4.750% Senior Secured
Notes due 2023
|
992,426
|
|
884,917
|
4.125% Senior Secured
Notes due 2020
|
820,013
|
|
730,465
|
5.625% Senior Secured
Notes due 2020
|
595,304
|
|
593,954
|
4.750% Senior Secured
Notes due 2020
|
574,535
|
|
509,050
|
7.500% Senior Secured
Notes due 2019
|
148,876
|
|
521,894
|
5.500% Senior Secured
Notes due 2020
|
125,856
|
|
126,294
|
5.350% Senior Secured
Notes due 2023
|
61,106
|
|
61,187
|
6.625% Senior Secured
Notes due 2018
|
-
|
|
521,556
|
Senior Secured
Notes
|
5,880,734
|
|
6,507,004
|
|
|
|
|
Term Loan Facilities
due 2023
|
935,198
|
|
-
|
Revolving Credit
Facilities due 2021
|
230,746
|
|
516,529
|
Term Loan Facilities
due 2019
|
-
|
|
839,552
|
Long-term debt,
less current portion
|
7,046,678
|
|
7,863,085
|
|
|
|
|
6.625% Senior Secured
Notes due 2018
|
588,320
|
|
-
|
Other
|
22
|
|
77
|
Current portion of
long-term debt
|
588,342
|
|
77
|
|
|
|
|
Total
debt
|
7,635,020
|
|
7,863,162
|
|
|
|
|
Cash and cash
equivalents
|
300,079
|
|
294,094
|
|
|
|
|
Net
debt
|
7,334,941
|
|
7,569,068
|
International Game Technology
PLC
|
Condensed
Consolidated Statement of Operations
|
Reconciliation of Non-GAAP Financial
Measures
|
($ and
shares in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
Q3
2017
|
|
|
|
|
|
Impairment/
|
|
Transaction
|
|
Q3
2017
|
|
|
As
|
|
Purchase
|
|
Foreign
|
|
Restructuring
|
|
and
Refinancing
|
|
As
|
|
|
Reported
|
|
Accounting
|
|
Exchange
|
|
Expense
|
|
Expense,
net
|
|
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
1,221,201
|
|
(182)
|
|
-
|
|
-
|
|
-
|
|
1,221,019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services
|
|
625,247
|
|
(36,918)
|
|
-
|
|
-
|
|
-
|
|
588,329
|
Cost of product
sales
|
|
150,358
|
|
(23,961)
|
|
-
|
|
-
|
|
-
|
|
126,397
|
Selling,
general and administrative
|
|
196,862
|
|
(27,180)
|
|
-
|
|
-
|
|
-
|
|
169,682
|
Research and
development
|
|
79,009
|
|
(15)
|
|
-
|
|
-
|
|
-
|
|
78,994
|
Restructuring
expense
|
|
9,976
|
|
-
|
|
-
|
|
(9,976)
|
|
-
|
|
-
|
Impairment
loss
|
|
715,220
|
|
-
|
|
-
|
|
(715,220)
|
|
-
|
|
-
|
Transaction
expense, net
|
|
627
|
|
-
|
|
-
|
|
-
|
|
(627)
|
|
-
|
Total
operating expenses
|
|
1,777,299
|
|
(88,074)
|
|
-
|
|
(725,196)
|
|
(627)
|
|
963,402
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
(loss) income
|
|
(556,098)
|
|
87,892
|
|
-
|
|
725,196
|
|
627
|
|
257,617
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
exchange loss, net
|
|
(117,526)
|
|
-
|
|
117,526
|
|
-
|
|
-
|
|
-
|
Other expense,
net
|
|
(9,802)
|
|
(84)
|
|
-
|
|
-
|
|
9,703
|
|
(183)
|
Interest
expense, net
|
|
(110,805)
|
|
610
|
|
-
|
|
-
|
|
-
|
|
(110,195)
|
Total
non-operating expenses
|
|
(238,133)
|
|
526
|
|
117,526
|
|
-
|
|
9,703
|
|
(110,378)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)
income before (benefit from) provision for income
taxes
|
|
(794,231)
|
|
88,418
|
|
117,526
|
|
725,196
|
|
10,330
|
|
147,239
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Benefit from)
provision for income taxes (a)
|
|
(19,824)
|
|
30,834
|
|
26,056
|
|
2,998
|
|
(3,230)
|
|
36,834
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
(774,407)
|
|
57,584
|
|
91,470
|
|
722,198
|
|
13,560
|
|
110,405
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net
income attributable to non-controlling interests
|
|
29,207
|
|
26
|
|
-
|
|
-
|
|
-
|
|
29,233
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income attributable to IGT PLC
|
|
(803,614)
|
|
57,558
|
|
91,470
|
|
722,198
|
|
13,560
|
|
81,172
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income per common share - diluted
|
|
(3.95)
|
|
|
|
|
|
|
|
|
|
0.40
|
Weighted-average shares - diluted
(b)
|
|
203,489
|
|
|
|
|
|
|
|
|
|
203,689
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Benefit from
income taxes was determined based on the statutory tax rate in
effect in the respective jurisdiction where the adjustment
originated.
|
(b) Weighted-average
shares – diluted, as adjusted, include shares that were excluded
from the as reported computation, due to the net loss as reported.
|
International Game Technology
PLC
|
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
|
|
|
September
2017
|
|
|
|
|
|
Impairment/
|
|
Transaction
|
|
September
2017
|
|
|
As
|
|
Purchase
|
|
Foreign
|
|
Restructuring
|
|
and
Refinancing
|
|
As
|
|
|
Reported
|
|
Accounting
|
|
Exchange
|
|
Expense
|
|
Expense,
net
|
|
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
3,593,289
|
|
(540)
|
|
-
|
|
-
|
|
-
|
|
3,592,749
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services
|
|
1,866,281
|
|
(117,658)
|
|
-
|
|
-
|
|
-
|
|
1,748,623
|
Cost of product
sales
|
|
403,056
|
|
(77,261)
|
|
-
|
|
-
|
|
-
|
|
325,795
|
Selling,
general and administrative
|
|
607,571
|
|
(90,277)
|
|
-
|
|
-
|
|
-
|
|
517,294
|
Research and
development
|
|
242,142
|
|
(426)
|
|
-
|
|
-
|
|
-
|
|
241,716
|
Restructuring
expense
|
|
30,706
|
|
-
|
|
-
|
|
(30,706)
|
|
-
|
|
-
|
Impairment
loss
|
|
715,220
|
|
-
|
|
-
|
|
(715,220)
|
|
-
|
|
-
|
Transaction
income, net
|
|
(26,682)
|
|
-
|
|
-
|
|
-
|
|
26,682
|
|
-
|
Total
operating expenses
|
|
3,838,294
|
|
(285,622)
|
|
-
|
|
(745,926)
|
|
26,682
|
|
2,833,428
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
(loss) income
|
|
(245,005)
|
|
285,082
|
|
-
|
|
745,926
|
|
(26,682)
|
|
759,321
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
exchange loss, net
|
|
(384,749)
|
|
-
|
|
384,749
|
|
-
|
|
-
|
|
-
|
Other (expense)
income, net
|
|
(33,247)
|
|
1,567
|
|
-
|
|
-
|
|
35,428
|
|
3,748
|
Interest
expense, net
|
|
(336,502)
|
|
2,415
|
|
-
|
|
-
|
|
-
|
|
(334,087)
|
Total
non-operating expenses
|
|
(754,498)
|
|
3,982
|
|
384,749
|
|
-
|
|
35,428
|
|
(330,339)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)
income before provision for income taxes
|
|
(999,503)
|
|
289,064
|
|
384,749
|
|
745,926
|
|
8,746
|
|
428,982
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
income taxes (a)
|
|
53,932
|
|
101,066
|
|
87,152
|
|
9,132
|
|
(88,159)
|
|
163,123
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
(1,053,435)
|
|
187,998
|
|
297,597
|
|
736,794
|
|
96,905
|
|
265,859
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net
income attributable to non-controlling interests
|
|
94,870
|
|
77
|
|
-
|
|
-
|
|
-
|
|
94,947
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income attributable to IGT PLC
|
|
(1,148,305)
|
|
187,921
|
|
297,597
|
|
736,794
|
|
96,905
|
|
170,912
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income per common share - diluted
|
|
(5.66)
|
|
|
|
|
|
|
|
|
|
0.84
|
Weighted-average shares - diluted
(b)
|
|
203,002
|
|
|
|
|
|
|
|
|
|
203,303
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Provision for
income taxes was determined based on the statutory tax rate in
effect in the respective jurisdiction where the adjustment
originated.
|
(b) Weighted-average
shares – diluted, as adjusted, include shares that were excluded
from the as reported computation, due to the net loss as reported.
|
International Game Technology
PLC
|
Condensed
Consolidated Statement of Operations
|
Reconciliation of Non-GAAP Financial
Measures
|
($ and
shares in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
Q3
2016
|
|
|
|
|
|
Impairment/
|
|
Transaction
|
|
Q3
2016
|
|
|
As
|
|
Purchase
|
|
Foreign
|
|
Restructuring
|
|
(Income)
|
|
As
|
|
|
Reported
|
|
Accounting
|
|
Exchange
|
|
Expense
|
|
Expense
|
|
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
1,265,650
|
|
376
|
|
-
|
|
-
|
|
-
|
|
1,266,026
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services
|
|
625,235
|
|
(46,222)
|
|
-
|
|
-
|
|
-
|
|
579,013
|
Cost of
sales
|
|
136,702
|
|
(29,740)
|
|
-
|
|
-
|
|
-
|
|
106,962
|
Selling,
general and administrative
|
|
242,510
|
|
(35,254)
|
|
-
|
|
-
|
|
-
|
|
207,256
|
Research and
development
|
|
87,354
|
|
(465)
|
|
-
|
|
-
|
|
-
|
|
86,889
|
Restructuring
expense
|
|
5,658
|
|
-
|
|
-
|
|
(5,658)
|
|
-
|
|
-
|
Impairment
loss
|
|
4,230
|
|
-
|
|
-
|
|
(4,230)
|
|
-
|
|
-
|
Transaction
expense, net
|
|
129
|
|
-
|
|
-
|
|
-
|
|
(129)
|
|
-
|
Total
operating expenses
|
|
1,101,818
|
|
(111,681)
|
|
-
|
|
(9,888)
|
|
(129)
|
|
980,120
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
163,832
|
|
112,057
|
|
-
|
|
9,888
|
|
129
|
|
285,906
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
exchange loss, net
|
|
(21,143)
|
|
-
|
|
21,143
|
|
-
|
|
-
|
|
-
|
Other income,
net
|
|
2,907
|
|
(211)
|
|
-
|
|
-
|
|
-
|
|
2,696
|
Interest
expense, net
|
|
(114,378)
|
|
2,073
|
|
-
|
|
-
|
|
-
|
|
(112,305)
|
Total
non-operating expenses
|
|
(132,614)
|
|
1,862
|
|
21,143
|
|
-
|
|
-
|
|
(109,609)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before provision for income taxes
|
|
31,218
|
|
113,919
|
|
21,143
|
|
9,888
|
|
129
|
|
176,297
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
income taxes (a)
|
|
12,812
|
|
40,437
|
|
9,857
|
|
2,538
|
|
40
|
|
65,684
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
18,406
|
|
73,482
|
|
11,286
|
|
7,350
|
|
89
|
|
110,613
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net
income attributable to non-controlling interests
|
|
20,309
|
|
26
|
|
-
|
|
-
|
|
-
|
|
20,335
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income attributable to IGT PLC
|
|
(1,903)
|
|
73,456
|
|
11,286
|
|
7,350
|
|
89
|
|
90,278
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income per common share - diluted
|
|
(0.01)
|
|
|
|
|
|
|
|
|
|
0.45
|
Weighted-average shares -
diluted
|
|
202,029
|
|
|
|
|
|
|
|
|
|
202,606
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
|
September
2016
|
|
|
|
|
|
Impairment/
|
|
|
|
September
2016
|
|
|
As
|
|
Purchase
|
|
Foreign
|
|
Restructuring
|
|
Transaction
|
|
As
|
|
|
Reported
|
|
Accounting
|
|
Exchange
|
|
Expense
|
|
Expense
|
|
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
3,832,680
|
|
1,332
|
|
-
|
|
-
|
|
-
|
|
3,834,012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services
|
|
1,911,830
|
|
(137,366)
|
|
-
|
|
-
|
|
-
|
|
1,774,464
|
Cost of
sales
|
|
403,118
|
|
(89,091)
|
|
-
|
|
-
|
|
-
|
|
314,027
|
Selling,
general and administrative
|
|
709,277
|
|
(104,857)
|
|
-
|
|
-
|
|
-
|
|
604,420
|
Research and
development
|
|
256,349
|
|
(1,459)
|
|
-
|
|
-
|
|
-
|
|
254,890
|
Restructuring
expense
|
|
21,514
|
|
-
|
|
-
|
|
(21,514)
|
|
-
|
|
-
|
Impairment
loss
|
|
6,582
|
|
-
|
|
-
|
|
(6,582)
|
|
-
|
|
-
|
Transaction
expense, net
|
|
1,560
|
|
-
|
|
-
|
|
-
|
|
(1,560)
|
|
-
|
Total
operating expenses
|
|
3,310,230
|
|
(332,773)
|
|
-
|
|
(28,096)
|
|
(1,560)
|
|
2,947,801
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
522,450
|
|
334,105
|
|
-
|
|
28,096
|
|
1,560
|
|
886,211
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
exchange loss, net
|
|
(94,547)
|
|
-
|
|
94,547
|
|
-
|
|
-
|
|
-
|
Other expense,
net
|
|
(4,994)
|
|
3,881
|
|
-
|
|
-
|
|
-
|
|
(1,113)
|
Interest
expense, net
|
|
(343,461)
|
|
6,147
|
|
-
|
|
-
|
|
-
|
|
(337,314)
|
Total
non-operating expenses
|
|
(443,002)
|
|
10,028
|
|
94,547
|
|
-
|
|
-
|
|
(338,427)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before provision for income taxes
|
|
79,448
|
|
344,133
|
|
94,547
|
|
28,096
|
|
1,560
|
|
547,784
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
income taxes (a)
|
|
64,593
|
|
122,338
|
|
23,431
|
|
7,718
|
|
302
|
|
218,382
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
14,855
|
|
221,795
|
|
71,116
|
|
20,378
|
|
1,258
|
|
329,402
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net
income attributable to non-controlling interests
|
|
36,836
|
|
76
|
|
-
|
|
-
|
|
-
|
|
36,912
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income attributable to IGT PLC
|
|
(21,981)
|
|
221,719
|
|
71,116
|
|
20,378
|
|
1,258
|
|
292,490
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income per common share - diluted
|
|
(0.11)
|
|
|
|
|
|
|
|
|
|
1.45
|
Weighted-average shares -
diluted
|
|
201,238
|
|
|
|
|
|
|
|
|
|
201,901
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
Adjusted EBITDA
and Free Cash Flow
|
Reconciliations of
Non-GAAP Financial Measures
|
($
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended
|
|
|
September
30,
|
|
|
2017
|
|
2016
|
|
|
|
|
|
Net (loss)
income
|
|
(774,407)
|
|
18,406
|
(Benefit from)
provision for income taxes
|
|
(19,824)
|
|
12,812
|
Non-operating
expenses
|
|
238,133
|
|
132,614
|
Impairment
loss
|
|
715,220
|
|
4,230
|
Depreciation
|
|
103,182
|
|
94,403
|
Amortization
|
|
99,562
|
|
124,089
|
Amortization of
upfront payments to customers
|
|
54,279
|
|
29,982
|
Restructuring
expense
|
|
9,976
|
|
5,658
|
Stock-based
compensation expense
|
|
1,829
|
|
7,468
|
Transaction expense,
net
|
|
627
|
|
129
|
Bad debt
expense
|
|
4
|
|
-
|
Non-cash purchase
accounting (excluding D&A)
|
|
(126)
|
|
67
|
Adjusted
EBITDA
|
|
428,455
|
|
429,858
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
57,729
|
|
97,190
|
Capital
expenditures
|
|
(181,579)
|
|
(151,865)
|
Free Cash
Flow
|
|
(123,850)
|
|
(54,675)
|
|
|
|
|
|
|
|
|
|
|
|
|
For the nine months
ended
|
|
|
September
30,
|
|
|
2017
|
|
2016
|
|
|
|
|
|
Net (loss)
income
|
|
(1,053,435)
|
|
14,855
|
Provision for income
taxes
|
|
53,932
|
|
64,593
|
Non-operating
expenses
|
|
754,498
|
|
443,002
|
Impairment
loss
|
|
715,220
|
|
6,582
|
Amortization
|
|
317,989
|
|
377,163
|
Depreciation
|
|
289,088
|
|
293,284
|
Amortization of
upfront payments to customers
|
|
155,318
|
|
85,160
|
Restructuring
expense
|
|
30,706
|
|
21,514
|
Stock-based
compensation expense
|
|
5,102
|
|
24,502
|
Non-cash purchase
accounting (excluding D&A)
|
|
(513)
|
|
921
|
Bad debt
recovery
|
|
(17,858)
|
|
-
|
Transaction (income)
expense, net
|
|
(26,682)
|
|
1,560
|
Adjusted
EBITDA
|
|
1,223,365
|
|
1,333,136
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
600,953
|
|
620,997
|
Capital
expenditures
|
|
(552,169)
|
|
(371,497)
|
Upfront payments to
customers
|
|
(185,368)
|
|
(390,390)
|
Free Cash
Flow
|
|
(136,584)
|
|
(140,890)
|
International Game
Technology PLC Segment Performance
|
Revenue
Detail
|
($
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTERNATIONAL GAME
TECHNOLOGY PLC
|
|
Quarter
Change
|
|
|
|
|
2016
|
2017
|
|
Percentage
|
Constant
FX
|
|
|
|
|
Q3
|
Q3
|
|
Q3
|
Q3
|
Gaming
|
|
Total
Revenue
|
644
|
611
|
|
-5.1%
|
-7.1%
|
|
|
|
|
|
|
|
|
|
Gaming
Services
|
489
|
443
|
|
-9.4%
|
-11.7%
|
|
|
Terminal
|
322
|
319
|
|
-1.1%
|
-3.8%
|
|
|
Social
(DDI)
|
66
|
0
|
|
-100.0%
|
-100.0%
|
|
|
Other
|
101
|
124
|
|
23.1%
|
20.8%
|
|
|
|
|
|
|
|
|
|
Product
Sales
|
155
|
168
|
|
8.6%
|
7.4%
|
|
|
Terminal
|
108
|
98
|
|
-9.7%
|
-10.7%
|
|
|
Other
|
47
|
70
|
|
50.8%
|
49.5%
|
|
|
|
|
|
|
|
|
|
Lottery
|
|
Total
Revenue
|
545
|
521
|
|
-4.4%
|
-6.0%
|
|
|
|
|
|
|
|
|
|
Lottery
Services
|
523
|
487
|
|
-6.9%
|
-8.6%
|
|
|
FM/Concessions
|
436
|
448
|
|
2.7%
|
-0.4%
|
|
|
LMA
|
59
|
34
|
|
-42.9%
|
-42.9%
|
|
|
Other
Services
|
28
|
5
|
|
-81.5%
|
-63.1%
|
|
|
|
|
|
|
|
|
|
Product
Sales
|
22
|
34
|
|
55.3%
|
55.9%
|
|
|
Terminal
|
2
|
1
|
|
-63.2%
|
-63.2%
|
|
|
Systems/Other
|
20
|
34
|
|
65.2%
|
65.8%
|
|
|
|
|
|
|
|
|
|
Other
|
|
Total
Revenue
|
77
|
89
|
|
16.1%
|
10.7%
|
|
|
|
|
|
|
|
|
|
Service
Revenue
|
77
|
84
|
|
8.6%
|
3.2%
|
|
Product
Sales
|
(0)
|
6
|
|
NM
|
NM
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
Revenue
|
1,266
|
1,221
|
|
-3.5%
|
-5.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income:
|
|
|
|
|
|
|
|
Segment
Total
|
338
|
305
|
|
-9.6%
|
-11.3%
|
|
|
Purchase
Accounting
|
(112)
|
(802)
|
|
615.6%
|
615.6%
|
|
|
Corporate
Support
|
(62)
|
(59)
|
|
-3.9%
|
-5.6%
|
|
|
Total
|
164
|
(556)
|
|
-439.4%
|
-442.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NORTH AMERICA
GAMING & INTERACTIVE
|
|
Quarter
Change
|
|
|
|
|
2016
|
2017
|
|
Percentage
|
Constant
FX
|
|
|
|
|
Q3
|
Q3
|
|
Q3
|
Q3
|
Gaming
|
|
Total
Revenue
|
317
|
262
|
|
-17.5%
|
-17.7%
|
|
|
|
|
|
|
|
|
|
Gaming
Services
|
241
|
171
|
|
-29.1%
|
-29.2%
|
|
|
Terminal
|
133
|
123
|
|
-8.0%
|
-8.2%
|
|
|
Social
(DDI)
|
66
|
0
|
|
-100.0%
|
-100.0%
|
|
|
Other
|
42
|
48
|
|
14.9%
|
14.8%
|
|
|
|
|
|
|
|
|
|
Product
Sales
|
76
|
91
|
|
19.7%
|
19.1%
|
|
|
Terminal
|
51
|
47
|
|
-9.3%
|
-9.5%
|
|
|
Other
|
24
|
44
|
|
80.5%
|
79.2%
|
|
|
|
|
|
|
|
|
|
Total
|
|
Revenue
|
317
|
262
|
|
-17.5%
|
-17.7%
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
68
|
65
|
|
-4.1%
|
-2.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NORTH AMERICA
LOTTERY
|
|
Quarter
Change
|
|
|
|
|
2016
|
2017
|
|
Percentage
|
Constant
FX
|
|
|
|
|
Q3
|
Q3
|
|
Q3
|
Q3
|
Gaming
|
|
Total
Revenue
|
37
|
48
|
|
29.7%
|
28.9%
|
|
|
|
|
|
|
|
|
|
Gaming
Services
|
37
|
40
|
|
8.1%
|
7.3%
|
|
|
Terminal
|
25
|
25
|
|
0.3%
|
0.3%
|
|
|
Social
(DDI)
|
0
|
0
|
|
0.0%
|
0.0%
|
|
|
Other
|
12
|
14
|
|
25.2%
|
22.5%
|
|
|
|
|
|
|
|
|
|
Product
Sales
|
0
|
8
|
|
NM
|
NM
|
|
|
Terminal
|
0
|
6
|
|
0.0%
|
0.0%
|
|
|
Other
|
0
|
2
|
|
NM
|
NM
|
|
|
|
|
|
|
|
|
|
Lottery
|
|
Total
Revenue
|
271
|
259
|
|
-4.1%
|
-4.2%
|
|
|
|
|
|
|
|
|
|
Lottery
Services
|
253
|
237
|
|
-6.1%
|
-6.1%
|
|
|
FM/Concessions
|
163
|
171
|
|
4.7%
|
4.7%
|
|
|
LMA
|
59
|
34
|
|
-42.9%
|
-42.9%
|
|
|
Other
Services
|
31
|
33
|
|
6.7%
|
6.7%
|
|
|
|
|
|
|
|
|
|
Product
Sales
|
18
|
22
|
|
24.1%
|
22.9%
|
|
|
Terminal
|
2
|
1
|
|
-63.2%
|
-63.2%
|
|
|
Systems/Other
|
16
|
22
|
|
33.2%
|
31.9%
|
|
|
|
|
|
|
|
|
|
Total
|
|
Revenue
|
307
|
307
|
|
-0.1%
|
-0.2%
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
85
|
75
|
|
-11.6%
|
-11.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTERNATIONAL
|
|
Quarter
Change
|
|
|
|
|
2016
|
2017
|
|
Percentage
|
Constant
FX
|
|
|
|
|
Q3
|
Q3
|
|
Q3
|
Q3
|
Gaming
|
|
Total
Revenue
|
122
|
128
|
|
4.8%
|
2.9%
|
|
|
|
|
|
|
|
|
|
Gaming
Services
|
43
|
59
|
|
36.3%
|
34.0%
|
|
|
Terminal
|
12
|
14
|
|
10.9%
|
11.2%
|
|
|
Social
(DDI)
|
0
|
0
|
|
0.0%
|
0.0%
|
|
|
Other
|
31
|
45
|
|
46.6%
|
43.3%
|
|
|
|
|
|
|
|
|
|
Product
Sales
|
79
|
69
|
|
-12.4%
|
-14.2%
|
|
|
Terminal
|
57
|
45
|
|
-19.9%
|
-21.8%
|
|
|
Other
|
22
|
24
|
|
6.8%
|
5.4%
|
|
|
|
|
|
|
|
|
|
Lottery
|
|
Total
Revenue
|
75
|
82
|
|
8.9%
|
11.0%
|
|
|
|
|
|
|
|
|
|
Lottery
Services
|
71
|
70
|
|
-1.6%
|
0.1%
|
|
|
FM/Concessions
|
51
|
48
|
|
-5.5%
|
-7.9%
|
|
|
LMA
|
0
|
0
|
|
0.0%
|
0.0%
|
|
|
Other
Services
|
20
|
22
|
|
8.3%
|
20.3%
|
|
|
|
|
|
|
|
|
|
Product
Sales
|
4
|
12
|
|
191.9%
|
200.1%
|
|
|
Terminal
|
0
|
0
|
|
0.0%
|
0.0%
|
|
|
Systems/Other
|
4
|
12
|
|
191.9%
|
200.1%
|
|
|
|
|
|
|
|
|
|
Other
|
|
Total
Revenue
|
18
|
24
|
|
31.9%
|
28.9%
|
|
|
|
|
|
|
|
|
|
Service
Revenue
|
18
|
18
|
|
-0.4%
|
-3.2%
|
|
Product
Sales
|
(0)
|
6
|
|
NM
|
NM
|
|
|
|
|
|
|
|
|
|
Total
|
|
Revenue
|
215
|
234
|
|
8.5%
|
7.9%
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
38
|
40
|
|
3.8%
|
7.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ITALY
|
|
Quarter
Change
|
|
|
|
|
2016
|
2017
|
|
Percentage
|
Constant
FX
|
|
|
|
|
Q3
|
Q3
|
|
Q3
|
Q3
|
Gaming
|
|
Total
Revenue
|
168
|
173
|
|
3.1%
|
-2.6%
|
|
|
|
|
|
|
|
|
|
Gaming
Services
|
168
|
173
|
|
3.1%
|
-2.6%
|
|
|
Terminal
|
151
|
157
|
|
3.8%
|
-1.9%
|
|
|
Social
(DDI)
|
0
|
0
|
|
0.0%
|
0.0%
|
|
|
Other
|
16
|
16
|
|
-3.7%
|
-9.0%
|
|
|
|
|
|
|
|
|
|
Product
Sales
|
0
|
0
|
|
5.7%
|
0.3%
|
|
|
Terminal
|
0
|
0
|
|
-100.0%
|
-100.0%
|
|
|
Other
|
0
|
0
|
|
7.0%
|
1.5%
|
|
|
|
|
|
|
|
|
|
Lottery
|
|
Total
Revenue
|
199
|
180
|
|
-9.9%
|
-14.8%
|
|
|
|
|
|
|
|
|
|
Lottery
Services
|
199
|
180
|
|
-9.9%
|
-14.8%
|
|
|
FM/Concessions
|
222
|
229
|
|
3.2%
|
-2.5%
|
|
|
LMA
|
0
|
0
|
|
0.0%
|
0.0%
|
|
|
Other
Services
|
(23)
|
(50)
|
|
115.8%
|
103.9%
|
|
|
|
|
|
|
|
|
|
Product
Sales
|
0
|
0
|
|
0.0%
|
0.0%
|
|
|
Terminal
|
0
|
0
|
|
0.0%
|
0.0%
|
|
|
Systems/Other
|
0
|
0
|
|
0.0%
|
0.0%
|
|
|
|
|
|
|
|
|
|
Other
|
|
Total
Revenue
|
59
|
66
|
|
11.3%
|
5.2%
|
|
|
|
|
|
|
|
|
|
Service
Revenue
|
59
|
66
|
|
11.3%
|
5.2%
|
|
Product
Sales
|
0
|
0
|
|
0.0%
|
0.0%
|
|
|
|
|
|
|
|
|
|
Total
|
|
Revenue
|
426
|
418
|
|
-1.8%
|
-7.2%
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
147
|
126
|
|
-14.5%
|
-20.0%
|
|
|
|
|
|
|
|
|
Consolidated Key
Performance Indicators (KPIs)
|
|
|
|
|
Third
Quarter
|
Period Ended
September 30
|
2017
|
2016
|
%
change
|
|
|
|
|
Installed base
(end of period)
|
|
|
|
Casino
|
35,946
|
34,159
|
5.2%
|
VLT -
Government Sponsored (ex-Italy)
|
16,794
|
15,594
|
7.7%
|
VLT -
Italy Supplier (B2B)
|
8,752
|
8,464
|
3.4%
|
Total
installed base
|
61,492
|
58,217
|
5.6%
|
Yield
(average revenue per unit per day - $0.00)
|
29.07
|
32.27
|
-9.9%
|
|
|
|
|
Additional Italian Network Details:
|
|
|
|
VLT -
Operator (B2C)
|
10,958
|
10,930
|
0.3%
|
AWP
|
59,084
|
58,069
|
1.7%
|
|
|
|
|
Machine units
shipped
|
|
|
|
New/Expansion
|
905
|
2,315
|
-60.9%
|
Replacement
|
5,501
|
6,665
|
-17.5%
|
Total
machines shipped
|
6,406
|
8,980
|
-28.7%
|
|
|
|
|
Global lottery
same-store revenue growth
|
|
|
|
Instants
& draw games
|
|
|
4.2%
|
Multistate Jackpots
|
|
|
24.3%
|
Total
lottery same-store revenue growth (ex-Italy)
|
|
|
6.8%
|
Italy
lottery revenue growth
|
|
|
-14.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
KPIs
|
|
|
|
|
Third
Quarter
|
Period Ended
September 30
|
2017
|
2016
|
%
change
|
|
|
|
|
Installed base
(end of period)
|
|
|
|
Casino
|
22,924
|
24,163
|
-5.1%
|
VLT - Government Sponsored
|
15,225
|
15,322
|
-0.6%
|
Total
installed base
|
38,149
|
39,485
|
-3.4%
|
|
|
|
|
Machine units
shipped
|
|
|
|
New/Expansion
|
729
|
2,017
|
-63.9%
|
Replacement
|
2,868
|
3,221
|
-11.0%
|
Total
machines shipped
|
3,597
|
5,238
|
-31.3%
|
|
|
|
|
Lottery same-store
revenue growth
|
|
|
|
Instants
& draw games
|
|
|
6.3%
|
Multistate Jackpots
|
|
|
26.4%
|
Total
lottery same-store revenue growth
|
|
|
9.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
KPIs
|
|
|
|
|
Third
Quarter
|
Period Ended
September 30
|
2017
|
2016
|
%
change
|
|
|
|
|
Installed base
(end of period)
|
|
|
|
Casino
|
13,022
|
9,996
|
30.3%
|
VLT - Government Sponsored
|
1,569
|
272
|
476.8%
|
Total
installed base
|
14,591
|
10,268
|
42.1%
|
|
|
|
|
Machine units
shipped
|
|
|
|
New/Expansion
|
176
|
298
|
-40.9%
|
Replacement
|
2,633
|
3,444
|
-23.5%
|
Total
machines shipped
|
2,809
|
3,742
|
-24.9%
|
|
|
|
|
Lottery same-store
revenue growth
|
|
|
|
Instants
& draw games
|
|
|
-1.8%
|
Multistate Jackpots
|
|
|
5.8%
|
Total
lottery same-store revenue growth
|
|
|
-1.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Italy
KPIs
|
|
|
|
|
Third
Quarter
|
Period Ended
September 30
|
2017
|
2016
|
%
change
|
(In € millions,
except machines)
|
|
|
|
Lottery
|
|
|
|
Lotto
wagers
|
1,815
|
1,967
|
-7.7%
|
10eLotto
|
1,261
|
1,094
|
15.3%
|
Core
|
494
|
550
|
-10.1%
|
Late
Numbers
|
60
|
324
|
-81.6%
|
|
|
|
|
Scratch & Win
Wagers
|
2,198
|
2,091
|
5.1%
|
|
|
|
|
Italy lottery
revenue growth
|
|
|
-14.9%
|
|
|
|
|
Gaming
|
|
|
|
Installed base
(end of period)
|
|
|
|
VLT -
Operator (B2C)
|
10,958
|
10,930
|
0.3%
|
VLT -
Supplier (B2B)
|
8,752
|
8,464
|
3.4%
|
AWP
|
59,084
|
58,069
|
1.7%
|
Total
Installed Base
|
78,794
|
77,463
|
1.7%
|
|
|
|
|
Wagers
|
|
|
|
VLT -
Operator (B2C)
|
1,329
|
1,309
|
1.5%
|
AWP
|
948
|
986
|
-3.9%
|
Interactive Wagers (Gaming)
|
404
|
393
|
2.8%
|
|
|
|
|
Other
|
|
|
|
Sports
Betting Wagers1
|
204
|
178
|
14.6%
|
Sports
Betting Payout (%)1
|
83.3%
|
82.1%
|
1.1
pp
|
|
|
|
|
1Includes Virtual Wagers and Pools
& Horses
|
|
|
|
View original content with
multimedia:http://www.prnewswire.com/news-releases/international-game-technology-plc-reports-third-quarter-2017-results-300555088.html
SOURCE International Game Technology PLC