IGT - International Game Technology PLC Reports First Quarter 2018 Results
"Compelling content and technology solutions are driving our results," said Marco Sala, CEO of IGT. "Lottery same-store revenue growth was among the highest levels in the last several quarters, even in our largest markets. A sharp increase in systems sales, double-digit growth in global gaming machine replacement unit shipments, and sequential improvement in the North America installed base confirm the good momentum of our global Gaming business. The positive underlying contribution from each of our operating segments provides a strong start to the year." Read the article here
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Net loss of $103 million includes $97 million of net foreign exchange loss; Adjusted net income was $31 million
- Adjusted EBITDA of $436 million on strong global casino system sales, continued growth in lottery same-store revenues, and Italy sports betting results
- Net debt of $7,525 million includes $119 million of net negative foreign currency impact
- North America region simplified and consolidated under the leadership of Renato Ascoli as CEO of North America
- Cash dividend declared of $0.20 per ordinary share
- Company to host Investor Day on August 2, 2018
LONDON, May 21, 2018 /PRNewswire/ -- International Game Technology PLC ("IGT") (NYSE: IGT) today reported financial results for the first quarter ended March 31, 2018. Tomorrow, at 8:00 a.m. EDT, management will host a conference call and webcast to present the first quarter results; access details are provided below.
"Compelling content and technology solutions are driving our results," said Marco Sala, CEO of IGT. "Lottery same-store revenue growth was among the highest levels in the last several quarters, even in our largest markets. A sharp increase in systems sales, double-digit growth in global gaming machine replacement unit shipments, and sequential improvement in the North America installed base confirm the good momentum of our global Gaming business. The positive underlying contribution from each of our operating segments provides a strong start to the year."
"We are solidly positioned to achieve our 2018 strategic and financial goals," said Alberto Fornaro, CFO of IGT. "With revenue growing 5% and Adjusted EBITDA up 18%, our first quarter results are some of the best we've reported."
Overview of Consolidated First Quarter Results
|
Quarter Ended |
Y/Y |
Constant |
||
|
2018 (1) |
2017 |
(%) |
(%) |
|
|
(In $ millions, unless otherwise noted) |
||||
|
Revenue |
1,207 |
1,153 |
5% |
(-2%) |
|
Operating income |
197 |
119 |
65% |
48% |
|
Net loss per diluted share |
($0.51) |
($0.27) |
N/M |
|
|
Net debt |
7,525 |
7,398 |
2% |
|
|
Adjusted EBITDA |
436 |
371 |
18% |
8% |
|
Adjusted operating income |
251 |
238 |
6% |
(-3%) |
|
Adjusted net income per diluted share |
$0.15 |
$0.29 |
(-48%) |
|
|
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. |
|
(1) On January 1, 2018, IGT adopted ASU 2014-09 (Topic 606), Revenue from Contracts with Customers ("ASC 606"). This positively impacted Revenue in the first quarter by $3 million and EBITDA and Adjusted EBITDA by $15 million. Comparative schedules summarizing the impact on the first quarter Condensed Consolidated Statements of Operations and Condensed Consolidated Balance Sheets are included later in this release. |
Consolidated revenue was $1,207 million, up 5% from the prior-year quarter
- Up 4% at constant currency and scope (adjusted for the sale of Double Down Interactive LLC ("DoubleDown"))
- Driven by strong global casino systems sales, broad-based momentum in lottery, and Italy sports betting results
Adjusted EBITDA rose 18% to $436 million, up 14% at constant currency and scope
- Higher underlying revenue and profit across all business segments
- Includes $15 million timing benefit from adoption of new accounting standard, ASC 606
Adjusted operating income was $251 million, a 6% increase from the prior-year period
- Increase driven by revenue growth
- Selling, general and administrative expenses up $15 million compared to the prior year, which had benefited from $18 million in one-off bad debt recovery
Interest expense was $110 million compared to $115 million in the prior-year period
Provision for income taxes rose to $61 million from a $10 million benefit in the prior-year period
- Reflects increases in valuation allowances in the U.K. and higher tax accruals in the current quarter
- Prior-year benefit driven by pretax loss in the quarter
Net loss attributable to IGT was $103 million in the quarter; Adjusted net income attributable to IGT was $31 million
Net loss per diluted share of ($0.51); Adjusted net income per diluted share of $0.15
Cash from operations was $77 million compared to $294 million in the prior-year quarter, the decline primarily attributed to
- A change in accounting standards requiring restricted cash to be included with cash and cash equivalents within the statement of cash flows
- The timing of Italy receivables and incentive compensation payments
Cash and cash equivalents were $570 million as of March 31, 2018, compared to $1,057 million as of December 31, 2017
- Maturity of €500 million 6.625% Senior Secured Notes funded in the quarter
Net debt was $7,525 million as of March 31, 2018, compared to $7,319 million as of December 31, 2017
- $119 million net negative impact from foreign currency adjustments
- $50 million reclassified from cash to restricted cash due to legislative changes impacting the Italy commercial services business
Operating Segment Review
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