– Consolidated revenue of $982 million driven by the strongest lottery same-store sales growth in seven quarters; sharp improvement from the second quarter across all major revenue sources
– Delivered $285 million in cash from operating activities and $220 million in free cash flow during the third quarter; reduced net debt by $46 million as reported and $228 million at constant currency during the third quarter
– Net loss of $128 million includes $149 million in foreign exchange losses, primarily non-cash; Adjusted net income was $54 million
– Solid lottery profit flow-through and benefit of cost-saving actions led to $354 million in Adjusted EBITDA
PR Newswire
LONDON, Nov. 11, 2020 /PRNewswire/ — International Game Technology PLC (“IGT”) (NYSE: IGT) today reported financial results for the third quarter ended September 30, 2020. Tomorrow, at 8:00 a.m. EST, management will host a conference call and webcast to present the results; access details are provided below.
“The resilience of our portfolio, particularly in lottery, and benefits from our swift cost reduction initiatives are on full display in our third quarter results,” said Marco Sala, CEO of IGT. “Strong player demand and a host of compelling new games, systems, and digital solutions led to a sharp, sequential improvement in our most important markets. We continue to monitor the evolution and impact of the pandemic around the world. With a simplified organization firmly in place, we are creating a leaner, stronger IGT.”
“Robust cash flow generation during the quarter and year-to-date periods have enabled us to improve our liquidity and reduce net debt,” said Max Chiara, CFO of IGT. “We are on track to achieve our 2020 temporary cost-reduction targets and have identified a number of initiatives that will enable us to deliver over $200 million of structural savings over the next two years. As a result, the improvement in our profitability should support our continued focus on reducing debt.”
Overview of Consolidated Third Quarter 2020 Results
|
Quarter Ended |
Y/Y |
Constant |
|||
|
September 30, |
Change |
Currency |
|||
|
2020 |
2019 |
(%) |
Change (%) |
||
|
|
|||||
|
|
|||||
|
Revenue |
|||||
|
Global Lottery |
570 |
552 |
3% |
0% |
|
|
Global Gaming |
412 |
601 |
(31)% |
(34)% |
|
|
|
982 |
1,153 |
(15)% |
(17)% |
|
|
Operating income (loss) |
|||||
|
Global Lottery |
196 |
161 |
22% |
17% |
|
|
Global Gaming |
(8) |
68 |
NA |
NA |
|
|
Corporate support expense |
(18) |
(26) |
33% |
37% |
|
|
Other(1) |
(42) |
(49) |
13% |
13% |
|
|
Total operating income |
129 |
154 |
(16)% |
(22)% |
|
|
Net (loss) income attributable to IGT PLC |
(128) |
104 |
NA |
||
|
|
|||||
|
Adjusted net income attributable to IGT PLC |
54 |
43 |
25% |
||
|
Adjusted EBITDA |
|||||
|
Global Lottery |
309 |
270 |
14% |
10% |
|
|
Global Gaming |
58 |
156 |
(63)% |
(65)% |
|
|
Corporate support expense |
(13) |
(20) |
32% |
36% |
|
|
|
354 |
407 |
(13)% |
(17)% |
|
|
Net debt |
7,243 |
7,354 |
(2)% |
||
|
|
|||||
|
Note: Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are provided at the end of this news release |
|||||
Key Highlights:
- Delivered $220 million in positive free cash flow in the quarter; generated $610 million in cash from operations and $384 million in free cash flow year-to-date
- Robust player demand drives highest Global Lottery same-store sales growth and Adjusted EBITDA in seven quarters
- Signed 2-year contract extension with New York Lottery
- Recently awarded 7-year contracts with Poland and Nebraska Lotteries following competitive bid processes
- Sharp, sequential improvement in Global Gaming revenue and profit following acute impact of the pandemic in the second quarter
- 41% increase in Digital & Betting revenue; launched full-service, in-house U.S. sports betting trading team in the third quarter and recently established new partnerships with Boyd Gaming and the National Basketball Association (NBA)
- Awarded three spots on Casino Journal’s esteemed “Top 20 Most Innovative Gaming Technology Products Awards,” the most of any gaming supplier
- Cashless solutions gaining traction as Resort Wallet™ launched at Resorts World Catskills
Financial highlights:
Third quarter 2020 results reflect the continued, global impact of the COVID-19 pandemic, but at a lower level compared to the second quarter
Resilient consolidated revenue of $982 million, down 15% from the prior year
- Global Lottery revenue of $570 million, up 3%, driven by double-digit growth in North America same-store sales
- Global Gaming revenue totals $412 million, down 31% on pandemic-related closures and restrictions; positive sequential trends as casinos re-open and installed base is gradually reactivated
Operating income of $129 million, compared to $154 million in the prior year
- Benefit of disciplined cost-saving actions
- Global Lottery same-store sales growth translates into high profit flow-through
- Contribution from Global Gaming impacted by $36 million higher bad debt and obsolescence charges, primarily due to the protracted pandemic slow-down in business activities
Net interest expense of $101 million compared to $103 million in the prior year
Benefit from income taxes of $27 million, compared to a provision for income taxes of $45 million, driven by lower pre-tax income and the tax impact of significant foreign exchange losses in the third quarter of 2020 versus significant foreign exchange gains in the prior-year period
Net loss attributable to IGT was $128 million; adjusted net income attributable to IGT of $54 million compared to adjusted net income of $43 million in the prior year
- Net loss includes $149 million in non-cash foreign exchange loss, primarily on Euro-denominated debt instruments
Net loss per diluted share of $0.62; adjusted net income per diluted share of $0.26 compared to adjusted net income per diluted share of $0.21 in the prior year
Adjusted EBITDA of $354 million compared to $407 million in the prior-year period
- Benefit from previously mentioned cost-saving actions
- Global Lottery achieves highest segment-level Adjusted EBITDA in seven quarters
Net debt of $7.24 billion compared to $7.38 billion at December 31, 2019; Net debt to LTM adjusted EBITDA of 5.72x up from 4.31x at December 31, 2019, due to pandemic’s impact on EBITDA in the first nine months of 2020
Cash and Liquidity Update
- At September 30, 2020, liquidity totaled $2.55 billion, an improvement from the second quarter level on strong cash flow generation; comprised of $943 million in unrestricted cash and $1.61 billion available under revolving credit facilities
Conference Call and Webcast:
November 12, 2020, at 8:00 a.m. EST
Live webcast available under “News, Events & Presentations” on IGT’s Investor Relations website at www.IGT.com; replay available on the website following the live event
Dial-In Numbers
- US/Canada toll-free dial-in number: +1 844 842 7999
- Outside the US/Canada toll-free number: +1 612 979 9887
- Conference ID/confirmation code: 9189642
- A telephone replay of the call will be available for one week
- US/Canada replay number: +1 855 859 2056
- Outside the US/Canada replay number: +1 404 537 3406
- ID/Confirmation code: 9189642
Note: Certain totals in the tables included in this press release may not add due to rounding
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 2020 are calculated using the same foreign exchange rates as the corresponding 2019 period. Management uses non-GAAP financial measures to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, and to evaluate the Company’s financial performance. Management believes these non-GAAP financial measures reflect the Company’s ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of business trends. These constant currency changes and non-GAAP financial measures should however be viewed in addition to, and not as an alternative for, the Company’s reported results prepared in accordance with U.S. GAAP.
About IGT
IGT (NYSE:IGT) is the global leader in gaming. We deliver entertaining and responsible gaming experiences for players across all channels and regulated segments, from Gaming Machines and Lotteries to Sports Betting and Digital. Leveraging a wealth of compelling content, substantial investment in innovation, player insights, operational expertise, and leading-edge technology, our solutions deliver unrivalled gaming experiences that engage players and drive growth. 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 approximately 11,000 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, 2019 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. Nothing in this news release is intended, or is to be construed, as a profit forecast or to be interpreted to mean that the financial performance of International Game Technology PLC for the current or any future financial years will necessarily match or exceed the historical published financial performance or International Game Technology PLC, as applicable. All forward-looking statements contained in this news release are qualified in their entirety by this cautionary statement. All subsequent written or oral forward-looking statements attributable to International Game Technology PLC, or persons acting on its behalf, are expressly qualified in their entirety by this cautionary statement.
Non-GAAP Financial Measures
Management supplements the reporting of financial information, determined under GAAP, with certain non-GAAP financial information. Management believes the non-GAAP information presented provides investors with additional useful information, but it is not intended to nor should it be considered in isolation or as a substitute for the related GAAP measures. Moreover, other companies may define non-GAAP measures differently, which limits the usefulness of these measures for comparisons with such other companies. The Company encourages investors to review its financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure.
Consolidated Adjusted EBITDA represents net income (loss) (a GAAP measure) before income taxes, interest expense, foreign exchange gain (loss), other non-operating expenses, depreciation, impairment losses, amortization (service revenue, purchase accounting and non-purchase accounting) restructuring expenses, stock-based compensation, and certain other non-recurring items. Other non-recurring items are infrequent in nature and are not reflective of on-going operational activities. For the business segments, Adjusted EBITDA represents segment operating income (loss) before depreciation, amortization (service revenue, purchase accounting and non-purchase accounting) restructuring expenses, stock-based compensation, and certain other non-recurring items. Adjusted net (loss) income attributable to IGT PLC represents Net (loss) income attributable to IGT PLC before foreign exchange, purchase accounting depreciation and amortization, restructuring expenses, loss on extinguishment of debt and certain other non-recurring items. Adjusted Diluted EPS represents Adjusted net (loss) income attributable to IGT PLC per weighted-average number of common shares outstanding during the period that takes into consideration potential common shares outstanding deriving from the IGT PLC share-based payment awards, when inclusion is not antidilutive. Other non-recurring items are discrete, infrequent in nature and are not reflective of on-going operational activities. Management believes that the non-GAAP measures just mentioned are useful in providing period-to-period comparisons of the results of the Company’s ongoing operational performance.
Net debt is a non-GAAP financial measure that represents debt (a GAAP measure, calculated as long-term obligations plus short-term borrowings) minus cash and equivalents. Cash and cash equivalent are subtracted from the GAAP measure because they could be used to reduce the Company’s debt obligations. Management believes that net debt is a useful measure to monitor leverage and evaluate the balance sheet.
Free cash flow is a non-GAAP financial measure that represents cash flow from operations (a GAAP measure) less capital expenditures. Management believes free cash flow is a useful measure of liquidity and an additional basis for assessing IGT’s ability to fund its activities, including debt service and distribution of earnings to shareholders.
A reconciliation of the non-GAAP measures to the corresponding amounts prepared in accordance with GAAP appears in the tables in this release. The tables provide additional information as to the items and amounts that have been excluded from the adjusted measures.
Contact:
Phil O’Shaughnessy, Global Communications, toll free in U.S./Canada +1 (844) IGT-7452; outside U.S./Canada +1 (401) 392-7452
Francesco Luti, +39 3485475493; for Italian media inquiries
James Hurley, Investor Relations, +1 (401) 392-7190
|
|
||||||||||
|
|
|
|
|
|||||||
|
|
|
|||||||||
|
|
||||||||||
|
|
||||||||||
|
Operating and facilities management contracts |
525 |
502 |
5% |
1% |
||||||
|
Upfront license fee amortization |
(52) |
(48) |
(7)% |
0% |
||||||
|
Operating and facilities management contracts, net |
474 |
454 |
4% |
2% |
||||||
|
Other |
76 |
66 |
15% |
9% |
||||||
|
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
|
|
||||||||||
|
Instant ticket & draw games |
10.6% |
|||||||||
|
Multi-jurisdiction jackpots |
(14.3)% |
|||||||||
|
|
|
|||||||||
|
|
||||||||||
|
Instant ticket & draw games |
15.0% |
|||||||||
|
Multi-jurisdiction jackpots |
(14.3)% |
|||||||||
|
|
|
|||||||||
|
|
||||||||||
|
Instant ticket & draw games |
|
|||||||||
|
|
|
|
|
|||||||
|
|
|
|||||||||
|
|
||||||||||
|
|
||||||||||
|
Terminal |
193 |
276 |
(30)% |
(33)% |
||||||
|
Systems, software, and other |
138 |
126 |
10% |
6% |
||||||
|
|
|
|
|
|
||||||
|
|
||||||||||
|
Terminal |
49 |
139 |
(64)% |
(65)% |
||||||
|
Other |
32 |
60 |
(47)% |
(48)% |
||||||
|
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
|
|
||||||||||
|
Casino |
48,280 |
51,592 |
(6)% |
|||||||
|
Casino – L/T lease (1) |
1,102 |
— |
NA |
|||||||
|
Italy VLT – Operator (B2C) |
10,845 |
10,984 |
(1)% |
|||||||
|
Italy VLT – Supplier (B2B) |
7,112 |
7,514 |
(5)% |
|||||||
|
Italy AWP |
36,279 |
41,129 |
(12)% |
|||||||
|
|
|
|
|
|||||||
|
|
||||||||||
|
US & Canada |
34,584 |
37,260 |
(7)% |
|||||||
|
Rest of world |
14,798 |
14,332 |
3% |
|||||||
|
Subtotal |
49,382 |
51,592 |
(4)% |
|||||||
|
Italy |
54,236 |
59,627 |
(9)% |
|||||||
|
|
|
|
|
|||||||
|
|
||||||||||
|
US & Canada |
$26.79 |
$41.31 |
(35)% |
|||||||
|
Rest of world (ex-Italy) |
$4.31 |
$8.04 |
(46)% |
|||||||
|
|
|
|
|
|||||||
|
|
||||||||||
|
New/expansion |
818 |
1,001 |
(18)% |
|||||||
|
Replacement |
2,853 |
9,190 |
(69)% |
|||||||
|
|
|
|
|
|||||||
|
|
||||||||||
|
New/expansion |
667 |
791 |
(16)% |
|||||||
|
Replacement |
2,007 |
4,150 |
(52)% |
|||||||
|
|
|
|
|
|||||||
|
|
||||||||||
|
|
||||||||||
|
|
|
|
|
|||||||
|
|
|
|||||||||
|
|
||||||||||
|
New/expansion |
151 |
210 |
(28)% |
|||||||
|
Replacement |
846 |
5,040 |
(83)% |
|||||||
|
|
|
|
|
|||||||
|
|
||||||||||
|
US & Canada |
13,800 |
14,800 |
(7)% |
|||||||
|
Rest of world |
12,100 |
11,800 |
3% |
|||||||
|
|
|
|
|
|||||||
|
|
|
|
|
|||||||
|
|
||||||||||
|
|
|
|
|
|||||||
|
|
|
|
|
|||||||
|
|
|
|
|
|||||||
|
|
|
|
|
|||||||
|
|
|
|
|
|||||||
|
|
|
|||||||||
|
|
||||||||||
|
US & Canada |
443 |
538 |
(18)% |
(18)% |
||||||
|
Italy |
416 |
402 |
3% |
(4)% |
||||||
|
Rest of world |
123 |
213 |
(42)% |
(43)% |
||||||
|
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
|
|
||||||||||
|
|
|||||||||||
|
|
|||||||||||
|
|
|||||||||||
|
|
|||||||||||
|
For the three months ended |
For the nine months ended |
||||||||||
|
September 30, |
September 30, |
||||||||||
|
2020 |
2019 |
2020 |
2019 |
||||||||
|
Service revenue |
880,133 |
921,712 |
2,223,772 |
2,892,774 |
|||||||
|
Product sales |
101,377 |
231,535 |
335,417 |
639,642 |
|||||||
|
|
981,510 |
1,153,247 |
2,559,189 |
3,532,416 |
|||||||
|
Cost of services |
541,118 |
575,594 |
1,479,605 |
1,765,519 |
|||||||
|
Cost of product sales |
81,516 |
136,246 |
239,822 |
397,217 |
|||||||
|
Selling, general and administrative |
180,315 |
201,416 |
515,858 |
616,516 |
|||||||
|
Research and development |
48,039 |
68,804 |
140,111 |
200,305 |
|||||||
|
Restructuring |
(98) |
16,152 |
46,955 |
21,853 |
|||||||
|
Goodwill impairment |
— |
— |
296,000 |
— |
|||||||
|
Other operating expense (income), net |
2,118 |
1,153 |
3,721 |
(24,743) |
|||||||
|
|
853,008 |
999,365 |
2,722,072 |
2,976,667 |
|||||||
|
|
128,502 |
153,882 |
(162,883) |
555,749 |
|||||||
|
Interest expense, net |
(101,023) |
(102,551) |
(297,284) |
(309,480) |
|||||||
|
Foreign exchange (loss) gain, net |
(149,403) |
124,068 |
(153,427) |
141,609 |
|||||||
|
Other (expense) income, net |
(7,031) |
(308) |
(39,791) |
22,687 |
|||||||
|
|
(257,457) |
21,209 |
(490,502) |
(145,184) |
|||||||
|
|
(128,955) |
175,091 |
(653,385) |
410,565 |
|||||||
|
(Benefit from) provision for income taxes |
(26,617) |
44,530 |
(34,806) |
160,522 |
|||||||
|
|
(102,338) |
130,561 |
(618,579) |
250,043 |
|||||||
|
Less: Net income attributable to non-controlling interests |
25,652 |
26,998 |
37,315 |
101,370 |
|||||||
|
|
(127,990) |
103,563 |
(655,894) |
148,673 |
|||||||
|
|
(0.62) |
0.51 |
(3.20) |
0.73 |
|||||||
|
|
(0.62) |
0.51 |
(3.20) |
0.73 |
|||||||
|
|
204,857 |
204,435 |
204,680 |
204,352 |
|||||||
|
|
204,857 |
204,528 |
204,680 |
204,532 |
|||||||
|
|
|||||
|
|
|||||
|
|
|||||
|
|
|||||
|
September 30, |
December 31, |
||||
|
2020 |
2019 |
||||
|
|
|||||
|
Current assets: |
|||||
|
Cash and cash equivalents |
943,346 |
662,934 |
|||
|
Restricted cash and cash equivalents |
196,252 |
231,317 |
|||
|
Trade and other receivables, net |
828,459 |
1,006,127 |
|||
|
Inventories |
183,220 |
161,790 |
|||
|
Other current assets |
556,607 |
571,869 |
|||
|
|
2,707,884 |
2,634,037 |
|||
|
Systems, equipment and other assets related to contracts, net |
1,180,511 |
1,307,940 |
|||
|
Property, plant and equipment, net |
129,636 |
146,055 |
|||
|
Operating lease right-of-use assets |
332,121 |
341,538 |
|||
|
Goodwill |
5,188,657 |
5,451,494 |
|||
|
Intangible assets, net |
1,672,750 |
1,836,002 |
|||
|
Other non-current assets |
1,779,807 |
1,927,524 |
|||
|
|
10,283,482 |
11,010,553 |
|||
|
|
12,991,366 |
13,644,590 |
|||
|
|
|||||
|
Current liabilities: |
|||||
|
Accounts payable |
1,116,854 |
1,120,922 |
|||
|
Current portion of long-term debt |
374,656 |
462,155 |
|||
|
Short-term borrowings |
4 |
3,193 |
|||
|
Other current liabilities |
1,006,658 |
882,081 |
|||
|
|
2,498,172 |
2,468,351 |
|||
|
Long-term debt, less current portion |
7,821,723 |
7,600,169 |
|||
|
Deferred income taxes |
272,555 |
366,822 |
|||
|
Operating lease liabilities |
305,805 |
310,721 |
|||
|
Other non-current liabilities |
372,428 |
413,549 |
|||
|
|
8,772,511 |
8,691,261 |
|||
|
|
11,270,683 |
11,159,612 |
|||
|
|
|||||
|
|
1,720,683 |
2,484,978 |
|||
|
|
12,991,366 |
13,644,590 |
|||
|
|
|||||||
|
|
|||||||
|
|
|||||||
|
|
|||||||
|
For the three months ended |
For the nine months ended |
||||||
|
September 30, |
September 30, |
||||||
|
2020 |
2019 |
2020 |
2019 |
||||
|
|
|||||||
|
Net (loss) income |
(102,338) |
130,561 |
(618,579) |
250,043 |
|||
|
Adjustments to reconcile net (loss) income to net cash provided by operating activities: |
|||||||
|
Depreciation |
102,578 |
106,020 |
300,826 |
315,291 |
|||
|
Goodwill impairment |
— |
— |
296,000 |
— |
|||
|
Amortization |
65,624 |
69,960 |
201,581 |
207,161 |
|||
|
Amortization of upfront license fees |
54,229 |
50,695 |
155,576 |
154,630 |
|||
|
Foreign exchange loss (gain), net |
149,403 |
(124,068) |
153,427 |
(141,609) |
|||
|
(Gain) loss on extinguishment of debt |
(10) |
2,336 |
28,267 |
11,964 |
|||
|
Debt issuance cost amortization |
5,451 |
5,481 |
15,748 |
17,004 |
|||
|
Loss (gain) on sale of assets |
389 |
(2,085) |
455 |
(65,324) |
|||
|
Stock-based compensation |
1,103 |
7,544 |
(10,703) |
20,046 |
|||
|
Deferred income taxes |
(69,815) |
(3,925) |
(106,520) |
2,590 |
|||
|
Other non-cash items, net |
2,621 |
17,339 |
5,125 |
48,731 |
|||
|
Changes in operating assets and liabilities, excluding the effects of acquisitions: |
|||||||
|
Trade and other receivables |
58,553 |
(32,513) |
198,131 |
16,546 |
|||
|
Inventories |
(3,457) |
23,073 |
(9,435) |
23,875 |
|||
|
Accounts payable |
(17,984) |
57,928 |
(23,646) |
611 |
|||
|
Other assets and liabilities |
38,867 |
(111,362) |
24,060 |
(72,854) |
|||
|
|
285,214 |
196,984 |
610,313 |
788,705 |
|||
|
|
|||||||
|
Capital expenditures |
(65,668) |
(101,713) |
(225,847) |
(332,716) |
|||
|
Proceeds from sale of assets |
1,272 |
35,314 |
6,457 |
100,743 |
|||
|
Other |
1,540 |
3,581 |
12,437 |
6,126 |
|||
|
|
(62,856) |
(62,818) |
(206,953) |
(225,847) |
|||
|
|
|||||||
|
Principal payments on long-term debt |
(579,175) |
(431,518) |
(959,275) |
(1,264,647) |
|||
|
Payments in connection with extinguishment of debt |
— |
— |
(25,000) |
(8,598) |
|||
|
Payments of debt issuance costs |
(1,863) |
(18,853) |
(21,479) |
(24,787) |
|||
|
Net payments of short-term borrowings |
(82,537) |
(54,092) |
(7,610) |
(34,519) |
|||
|
Proceeds from long-term debt |
— |
550,050 |
895,896 |
1,397,025 |
|||
|
Net receipts from financial liabilities |
59,230 |
12,148 |
95,698 |
753 |
|||
|
Dividends paid |
— |
(40,887) |
(40,887) |
(122,616) |
|||
|
Dividends paid – non-controlling interests |
(44,516) |
(6,290) |
(135,892) |
(135,684) |
|||
|
Return of capital – non-controlling interests |
— |
(9,985) |
— |
(80,384) |
|||
|
Capital increase – non-controlling interests |
1,304 |
294 |
3,334 |
1,369 |
|||
|
Other |
(2,540) |
(1,065) |
(8,598) |
(7,798) |
|||
|
|
(650,097) |
(198) |
(203,813) |
(279,886) |
|||
|
Net (decrease) increase in cash and cash equivalents and restricted cash and cash equivalents |
(427,739) |
133,968 |
199,547 |
282,972 |
|||
|
Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents |
37,575 |
(27,343) |
45,800 |
(31,091) |
|||
|
Cash and cash equivalents and restricted cash and cash equivalents at the beginning of the period |
1,529,762 |
657,033 |
894,251 |
511,777 |
|||
|
|
1,139,598 |
763,658 |
1,139,598 |
763,658 |
|||
|
|
|||||||
|
Interest paid |
(141,263) |
(160,256) |
(372,127) |
(371,847) |
|||
|
Income taxes paid |
(41,637) |
(88,232) |
(59,432) |
(138,009) |
|||
|
|
|||||
|
|
|||||
|
|
|||||
|
|
|||||
|
September 30, |
December 31, |
||||
|
2020 |
2019 |
||||
|
6.250% Senior Secured U.S. Dollar Notes due February 2022 |
1,004,662 |
1,491,328 |
|||
|
4.750% Senior Secured Euro Notes due February 2023 |
989,909 |
948,382 |
|||
|
5.350% Senior Secured U.S. Dollar Notes due October 2023 |
60,811 |
60,885 |
|||
|
3.500% Senior Secured Euro Notes due July 2024 |
581,534 |
557,331 |
|||
|
6.500% Senior Secured U.S. Dollar Notes due February 2025 |
1,091,210 |
1,089,959 |
|||
|
3.500% Senior Secured Euro Notes due June 2026 |
871,151 |
835,105 |
|||
|
6.250% Senior Secured U.S. Dollar Notes due January 2027 |
743,958 |
743,387 |
|||
|
2.375% Senior Secured Euro Notes due April 2028 |
580,333 |
556,403 |
|||
|
5.250% Senior Secured U.S. Dollar Notes due January 2029 |
743,004 |
— |
|||
|
|
6,666,572 |
6,282,780 |
|||
|
Euro Term Loan Facility due January 2023 |
994,835 |
1,317,389 |
|||
|
U.S. Dollar Revolving Credit Facility A due July 2024 |
160,316 |
— |
|||
|
|
7,821,723 |
7,600,169 |
|||
|
4.750% Senior Secured Euro Notes due March 2020 |
— |
434,789 |
|||
|
5.500% Senior Secured U.S. Dollar Notes due June 2020 |
— |
27,366 |
|||
|
Euro Term Loan Facility due January 2023 |
374,656 |
— |
|||
|
|
374,656 |
462,155 |
|||
|
Short-term borrowings |
4 |
3,193 |
|||
|
|
8,196,383 |
8,065,517 |
|||
|
Less: Cash and cash equivalents |
943,346 |
662,934 |
|||
|
Less: Debt issuance costs, net – Euro Revolving Credit Facility B due July 2024 |
10,422 |
20,464 |
|||
|
|
7,242,615 |
7,382,119 |
|||
|
Note: Net debt is a non-GAAP financial measure |
|||||
|
|
||||||||||||||
|
|
||||||||||||||
|
|
||||||||||||||
|
|
||||||||||||||
|
For the three months ended September 30, 2020 |
||||||||||||||
|
Operating |
||||||||||||||
|
Global |
Global |
Segment |
Corporate |
Total |
||||||||||
|
Lottery |
Gaming |
Total |
and Other |
IGT PLC |
||||||||||
|
Net loss |
(102,338) |
|||||||||||||
|
Benefit from income taxes |
(26,617) |
|||||||||||||
|
Interest expense, net |
101,023 |
|||||||||||||
|
Foreign exchange loss, net |
149,403 |
|||||||||||||
|
Other non-operating expense, net |
7,031 |
|||||||||||||
|
Operating income (loss) |
195,766 |
(7,550) |
188,216 |
(59,714) |
128,502 |
|||||||||
|
Depreciation |
51,248 |
51,007 |
102,255 |
323 |
102,578 |
|||||||||
|
Amortization – service revenue (1) |
54,229 |
— |
54,229 |
— |
54,229 |
|||||||||
|
Amortization – non-purchase accounting |
7,926 |
15,178 |
23,104 |
762 |
23,866 |
|||||||||
|
Amortization – purchase accounting |
— |
— |
— |
41,758 |
41,758 |
|||||||||
|
Restructuring |
(52) |
(428) |
(480) |
382 |
(98) |
|||||||||
|
Stock-based compensation |
81 |
71 |
152 |
951 |
1,103 |
|||||||||
|
Other (2) |
— |
— |
— |
2,118 |
2,118 |
|||||||||
|
|
|
|
|
|
|
|||||||||
|
Cash flows from operating activities |
285,214 |
|||||||||||||
|
Capital expenditures |
(65,668) |
|||||||||||||
|
|
|
|||||||||||||
|
Net loss attributable to IGT PLC |
(127,990) |
|||||||||||||
|
Foreign exchange loss, net |
149,403 |
|||||||||||||
|
|
42,069 |
|||||||||||||
|
Restructuring |
(98) |
|||||||||||||
|
Gain on extinguishment of debt |
(10) |
|||||||||||||
|
Other (2) |
2,118 |
|||||||||||||
|
Income tax impact on adjustments (3) |
(11,167) |
|||||||||||||
|
|
|
|||||||||||||
|
Weighted-average shares – diluted |
204,857 |
|||||||||||||
|
Adjusted weighted-average shares – diluted (4) |
205,013 |
|||||||||||||
|
Net loss attributable to IGT PLC per common share – diluted |
(0.62) |
|||||||||||||
|
|
|
|||||||||||||
|
|
||||||||||||||
|
|
||||||||||||||
|
|
||||||||||||||
|
|
||||||||||||||
|
|
||||||||||||||
|
|
||||||||||||||
|
|
||||||||||||||
|
|
||||||||||||||
|
For the three months ended September 30, 2019 |
||||||||||||||
|
Operating |
||||||||||||||
|
Global |
Global |
Segment |
Corporate |
Total |
||||||||||
|
Lottery |
Gaming |
Total |
and Other |
IGT PLC |
||||||||||
|
Net income |
130,561 |
|||||||||||||
|
Provision for income taxes |
44,530 |
|||||||||||||
|
Interest expense, net |
102,551 |
|||||||||||||
|
Foreign exchange gain, net |
(124,068) |
|||||||||||||
|
Other non-operating expense, net |
308 |
|||||||||||||
|
Operating income (loss) |
160,820 |
68,025 |
228,845 |
(74,963) |
153,882 |
|||||||||
|
Depreciation |
50,099 |
55,160 |
105,259 |
761 |
106,020 |
|||||||||
|
Amortization – service revenue (1) |
50,695 |
— |
50,695 |
— |
50,695 |
|||||||||
|
Amortization – non-purchase accounting |
6,843 |
14,415 |
21,258 |
754 |
22,012 |
|||||||||
|
Amortization – purchase accounting |
— |
— |
— |
47,948 |
47,948 |
|||||||||
|
Restructuring |
211 |
16,283 |
16,494 |
(342) |
16,152 |
|||||||||
|
Stock-based compensation |
1,582 |
2,126 |
3,708 |
3,836 |
7,544 |
|||||||||
|
Other (2) |
— |
432 |
432 |
2,391 |
2,823 |
|||||||||
|
|
|
|
|
|
|
|||||||||
|
Cash flows from operating activities |
196,984 |
|||||||||||||
|
Capital expenditures |
(101,713) |
|||||||||||||
|
|
|
|||||||||||||
|
Net income attributable to IGT PLC |
103,563 |
|||||||||||||
|
Foreign exchange gain, net |
(124,068) |
|||||||||||||
|
|
48,580 |
|||||||||||||
|
Restructuring |
16,152 |
|||||||||||||
|
Loss on extinguishment of debt |
2,336 |
|||||||||||||
|
Other (2) |
2,823 |
|||||||||||||
|
Income tax impact on adjustments (3) |
(6,041) |
|||||||||||||
|
|
|
|||||||||||||
|
Weighted-average shares – diluted |
204,528 |
|||||||||||||
|
Adjusted weighted-average shares – diluted |
204,528 |
|||||||||||||
|
Net income attributable to IGT PLC per common share – diluted |
0.51 |
|||||||||||||
|
|
|
|||||||||||||
|
|
||||||||||||||
|
|
||||||||||||||
|
|
||||||||||||||
|
|
|||||||||||||||
|
|
|||||||||||||||
|
|
|||||||||||||||
|
|
|||||||||||||||
|
For the nine months ended September 30, 2020 |
|||||||||||||||
|
Operating |
|||||||||||||||
|
Global |
Global |
Segment |
Corporate |
Total |
|||||||||||
|
Lottery |
Gaming |
Total |
and Other |
IGT PLC |
|||||||||||
|
Net loss |
(618,579) |
||||||||||||||
|
Benefit from income taxes |
(34,806) |
||||||||||||||
|
Interest expense, net |
297,284 |
||||||||||||||
|
Foreign exchange loss, net |
153,427 |
||||||||||||||
|
Other non-operating expense, net |
39,791 |
||||||||||||||
|
Operating income (loss) |
446,965 |
(124,787) |
322,178 |
(485,061) |
(162,883) |
||||||||||
|
Goodwill impairment |
— |
— |
— |
296,000 |
296,000 |
||||||||||
|
Depreciation |
147,055 |
152,670 |
299,725 |
1,101 |
300,826 |
||||||||||
|
Amortization – service revenue (1) |
155,576 |
— |
155,576 |
— |
155,576 |
||||||||||
|
Amortization – non-purchase accounting |
22,006 |
46,726 |
68,732 |
2,341 |
71,073 |
||||||||||
|
Amortization – purchase accounting |
— |
— |
— |
130,508 |
130,508 |
||||||||||
|
Restructuring |
5,332 |
35,430 |
40,762 |
6,193 |
46,955 |
||||||||||
|
Stock-based compensation |
(3,713) |
(5,063) |
(8,776) |
(1,927) |
(10,703) |
||||||||||
|
Other (2) |
— |
— |
— |
3,623 |
3,623 |
||||||||||
|
|
|
|
|
|
|
||||||||||
|
Cash flows from operating activities |
610,313 |
||||||||||||||
|
Capital expenditures |
(225,847) |
||||||||||||||
|
|
|
||||||||||||||
|
Net loss attributable to IGT PLC |
(655,894) |
||||||||||||||
|
Foreign exchange loss, net |
153,427 |
||||||||||||||
|
Goodwill impairment |
296,000 |
||||||||||||||
|
|
131,442 |
||||||||||||||
|
Restructuring |
46,955 |
||||||||||||||
|
Loss on extinguishment of debt |
23,250 |
||||||||||||||
|
Other (2) |
3,623 |
||||||||||||||
|
Income tax impact on adjustments (3) |
(49,430) |
||||||||||||||
|
|
|
||||||||||||||
|
Weighted-average shares – diluted |
204,680 |
||||||||||||||
|
Adjusted weighted-average shares – diluted |
204,680 |
||||||||||||||
|
Net loss attributable to IGT PLC per common share – diluted |
(3.20) |
||||||||||||||
|
|
|
||||||||||||||
|
|
|||||||||||||||
|
|
|||||||||||||||
|
|
|||||||||||||||
|
|
||||||||||||||
|
|
||||||||||||||
|
|
||||||||||||||
|
|
||||||||||||||
|
For the nine months ended September 30, 2019 |
||||||||||||||
|
Operating |
||||||||||||||
|
Global |
Global |
Segment |
Corporate |
Total |
||||||||||
|
Lottery |
Gaming |
Total |
and Other |
IGT PLC |
||||||||||
|
Net income |
250,043 |
|||||||||||||
|
Provision for income taxes |
160,522 |
|||||||||||||
|
Interest expense, net |
309,480 |
|||||||||||||
|
Foreign exchange gain, net |
(141,609) |
|||||||||||||
|
Other non-operating income, net |
(22,687) |
|||||||||||||
|
Operating income (loss) |
542,913 |
239,940 |
782,853 |
(227,104) |
555,749 |
|||||||||
|
Depreciation |
147,461 |
165,490 |
312,951 |
2,340 |
315,291 |
|||||||||
|
Amortization – service revenue (1) |
154,629 |
— |
154,629 |
— |
154,629 |
|||||||||
|
Amortization – non-purchase accounting |
18,175 |
43,090 |
61,265 |
2,231 |
63,496 |
|||||||||
|
Amortization – purchase accounting |
— |
— |
— |
143,666 |
143,666 |
|||||||||
|
Restructuring |
1,003 |
16,959 |
17,962 |
3,891 |
21,853 |
|||||||||
|
Stock-based compensation |
3,854 |
5,088 |
8,942 |
11,104 |
20,046 |
|||||||||
|
Other (2) |
— |
432 |
432 |
2,296 |
2,728 |
|||||||||
|
|
|
|
|
|
|
|||||||||
|
Cash flows from operating activities |
788,705 |
|||||||||||||
|
Capital expenditures |
(332,716) |
|||||||||||||
|
|
|
|||||||||||||
|
Net income attributable to IGT PLC |
148,673 |
|||||||||||||
|
Foreign exchange gain, net |
(141,609) |
|||||||||||||
|
|
145,562 |
|||||||||||||
|
Restructuring |
21,853 |
|||||||||||||
|
Loss on extinguishment of debt |
11,964 |
|||||||||||||
|
Other (2) |
2,728 |
|||||||||||||
|
Income tax impact on adjustments (3) |
(30,819) |
|||||||||||||
|
|
|
|||||||||||||
|
Weighted-average shares – diluted |
204,532 |
|||||||||||||
|
Adjusted weighted-average shares – diluted |
204,532 |
|||||||||||||
|
Net income attributable to IGT PLC per common share – diluted |
0.73 |
|||||||||||||
|
|
|
|||||||||||||
|
|
||||||||||||||
|
|
||||||||||||||
|
|
||||||||||||||
View original content to download multimedia:http://www.prnewswire.com/news-releases/international-game-technology-plc-reports-third-quarter-2020-results-301171346.html
SOURCE International Game Technology PLC
