LAS VEGAS, Jan. 23, 2014 /PRNewswire/ -- International
Game Technology (NYSE: IGT) today reported operating results for
the first quarter ended December 31,
2013.
(Logo: http://photos.prnewswire.com/prnh/20131003/LA91408LOGO)
"In our fiscal first quarter we expanded revenue while
maintaining strong operating income and cash flows despite market
challenges," said Patti Hart, CEO of
IGT. "We remain confident that our focus on content, distribution
and maximizing shareholder value while improving efficiencies will
position us for success in fiscal 2014."
Consolidated
Results
|
|
|
|
|
|
|
|
First Quarters
Ended December 31,
|
2013
|
2012
|
%
Change
|
(In millions,
except per share amounts)
|
|
|
|
GAAP
Measures
|
|
|
|
Revenue
|
$ 541.2
|
$ 530.3
|
2%
|
Operating
income
|
103.7
|
118.4
|
-12%
|
Net income
|
79.2
|
65.3
|
21%
|
Earnings per
share
|
$
0.31
|
$
0.24
|
29%
|
Net operating cash
flows
|
$
76.1
|
$
94.5
|
-19%
|
|
|
|
|
Non-GAAP
Measures
|
|
|
|
Adjusted operating
income
|
$ 123.8
|
$ 137.6
|
-10%
|
Adjusted net
income
|
62.9
|
76.2
|
-17%
|
Adjusted earnings per
share
|
$
0.25
|
$
0.28
|
-11%
|
Free cash flow
(before dividends)
|
$
51.5
|
$
56.9
|
-9%
|
|
|
Adjusted operating
income, adjusted net income, adjusted earnings per share 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 2% to $541
million, primarily driven by North
America growth in social gaming and machine sales.
- GAAP earnings per share increased 29% to $0.31.
- Adjusted earnings per share decreased 11% to $0.25.
Gaming
Operations
|
|
|
|
|
|
|
|
First Quarters
Ended December 31,
|
2013
|
2012
|
%
Change
|
(In millions,
unless otherwise noted)
|
|
|
|
Revenue
|
$ 223.0
|
$ 242.6
|
-8%
|
Gross
profit
|
136.2
|
153.1
|
-11%
|
Gross
margin
|
61%
|
63%
|
-3%
|
Installed base
('000)
|
54.3
|
56.8
|
-4%
|
Yield (average
revenue per unit per day - $0.00)
|
$ 44.99
|
$ 46.80
|
-4%
|
- Revenues decreased 8% to $223
million in the first quarter primarily due to lower North
America MegaJackpots® revenue.
- Gross margin decreased to 61% from 63% compared to the prior
year quarter, primarily due to lower yield.
- Installed base decreased driven by a decline in North America
MegaJackpots® and International lease operations units.
- Average revenue per unit per day in the quarter was
$44.99, down 4% over the prior year
quarter primarily due to lower MegaJackpots® yields and down 8%
sequentially in-line with seasonal trends.
Product
Sales
|
|
|
|
|
|
|
|
First Quarters
Ended December 31,
|
2013
|
2012
|
%
Change
|
(In millions,
unless otherwise noted)
|
|
|
|
Revenue
|
$ 243.6
|
$ 234.8
|
4%
|
Gross
profit
|
126.9
|
125.6
|
1%
|
Gross
margin
|
52%
|
53%
|
-3%
|
Machine units
recognized ('000)
|
12.8
|
10.7
|
20%
|
Machine average sales
price ('000)
|
$
13.2
|
$
14.8
|
-11%
|
- Revenues increased 4% to $244
million in the first quarter, due to increased North America machine sales largely related to
video poker sales.
- Gross margin decreased to 52% from 53%, as the first quarter of
2013 benefited from a $5.0 million
royalty settlement fee.
- Average machine sales prices declined to $13,200 in the first quarter primarily due to a
higher mix of video poker unit sales to Caesar's Entertainment, as
well as some foreign currency pressures.
Interactive
|
|
|
|
|
|
|
|
First Quarters
Ended December 31,
|
2013
|
2012
|
%
Change
|
(In millions,
unless otherwise noted)
|
|
|
|
Revenue
|
$ 74.6
|
$ 52.9
|
41%
|
Social gaming
|
64.8
|
41.3
|
57%
|
IGTi
|
9.8
|
11.6
|
-16%
|
|
|
|
|
Gross
Margin
|
63%
|
58%
|
9%
|
Social gaming
|
62%
|
60%
|
3%
|
IGTi
|
64%
|
51%
|
25%
|
|
|
|
|
DoubleDown average
user statistics*
|
|
|
|
DAU (Daily active users) ('000)
|
1,716
|
1,462
|
17%
|
MAU (Monthly active users) ('000)
|
6,198
|
4,931
|
26%
|
Bookings per DAU ($0.00)
|
$ 0.42
|
$ 0.31
|
35%
|
|
|
|
|
*as a single
application with multiple games, active users equal unique
users
|
- Social gaming revenues increased 57% to $65 million in the first quarter compared to the
prior year quarter and increased 6% sequentially, primarily driven
by an increase in both average DAU and bookings per DAU.
- Average DAU were 1.7 million, an increase of 17% over the prior
year quarter.
- Average MAU were 6.2 million, an increase of 26% compared to
the prior year quarter.
- Average bookings per DAU was $0.42, an increase of 35% over the same quarter
last year.
- DoubleDown was GAAP accretive in the first quarter of
2014.
Operating
Expenses
|
|
|
|
|
|
|
|
First Quarters
Ended December 31,
|
2013
|
2012
|
%
Change
|
(In millions,
unless otherwise noted)
|
|
|
|
Operating
Expenses
|
|
|
|
Selling, general
& administrative
|
$ 117.8
|
$ 100.2
|
18%
|
Research &
development
|
60.3
|
54.4
|
11%
|
Depreciation &
amortization
|
16.7
|
19.0
|
-12%
|
Contingent
acquisition-related costs
|
11.3
|
17.5
|
-35%
|
Total operating
expenses
|
$
206.1
|
$
191.1
|
8%
|
|
|
|
|
Adjusted Operating
Expenses
|
|
|
|
Total
|
$
189.3
|
$
169.2
|
12%
|
|
|
|
|
Adjusted operating
expenses is a non-GAAP financial measure. Reconciliations
between GAAP and non-GAAP measures are provided at the end of this
release.
|
- Adjusted first quarter operating expenses increased over the
prior year quarter primarily due to higher advertising at
DoubleDown and higher R&D expenses.
- Adjusted operating expenses were 35% of revenues for the first
quarter compared to 32% of revenues in the prior year quarter.
Balance Sheet and
Capital Deployment
|
|
|
|
|
|
|
December
31,
|
|
September
30,
|
|
|
|
2013
|
|
2013
|
|
% Change
|
(In millions,
unless otherwise noted)
|
|
|
|
|
|
Cash and equivalents
(including restricted amounts)
|
$
648.0
|
|
$
809.1
|
|
-20%
|
Working
capital
|
117.9
|
|
267.5
|
|
-56%
|
Contractual debt
obligations
|
2,150.0
|
|
2,150.0
|
|
0%
|
- During the first quarter, the company received 8.2 million
shares related to the previously announced accelerated share
repurchase (ASR). The total number of shares repurchased by
IGT under the ASR through the completion date of January 22, 2014 was 11.6 million, at a
discounted average price of $17.22
per share, representing approximately 5% of the total shares
outstanding when the program commenced.
- During the quarter, the company announced its fifth consecutive
quarterly cash dividend increase, up 57% compared to the same
quarter last year.
- During the first quarter, the company returned $226 million in the form of dividends and share
repurchases to its shareholders.
Other
References to per share amounts in this release
are based on weighted average diluted shares of common stock
outstanding, unless otherwise specified.
Outlook
Given declining gross gaming revenue trends,
we anticipate that the lower end of our previously announced
guidance range is more likely, with potential further downside
risk. We are in the process of implementing a number of
measures, including cost reductions, to mitigate this risk.
GAAP earnings per share from continuing operations for fiscal
year 2014 will include acquisition-related expenses, primarily
related to DoubleDown, severance costs, and certain discrete tax
items or benefits, the amount of which is not determinable at this
time. 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
January 9, 2014, IGT will host a
conference call to discuss its first quarter fiscal year 2014
earnings results on Thursday, January 23,
2014, at 2:00 p.m. PST. The
access numbers are as follows:
Domestic callers dial +1 877-891-6979, passcode IGT
International callers dial +1 773-756-4700, 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
Thursday, February 6, 2014 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 Thursday, February 6, 2014. The access
numbers are as follows:
Domestic callers dial +1 866-513-4385
International callers dial +1 203-369-1984
Q1 FY 2014 Excel file
Q1 FY 2014 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 2014) 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; our ability to implement and manage cost
reduction initiatives; future developments or changes affecting
online gaming or social casino-style gaming, which is a new and
evolving industry; and risks related to business combinations,
investments in intellectual property and the integration of
acquisitions. 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 2013 filed with the SEC on November
26, 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 December 31, 2013,
which we expect to file with the SEC in the first quarter of
calendar 2014. All information provided in this release is as
of January 23, 2014, and IGT does not
intend, and undertakes no duty, to update this information to
reflect subsequent events or circumstances.
IGT Resources:
- Like us on Facebook
- Play DoubleDown Casino Games
- Like DoubleDown Casino on Facebook
- Follow us on Twitter
- View IGT's YouTube Channel
- Check out our other Games and Gaming Systems
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)
|
|
|
|
|
First Quarters
Ended December 31,
|
|
2013
|
2012
|
(In millions,
except per share amounts)
|
|
|
|
Revenues
|
|
|
|
Gaming
operations
|
|
$ 223.0
|
$ 242.6
|
Product
sales
|
|
243.6
|
234.8
|
Interactive
|
|
74.6
|
52.9
|
Total
revenues
|
|
541.2
|
530.3
|
Costs and
operating expenses
|
|
|
|
Cost of gaming
operations
|
|
86.8
|
89.5
|
Cost of product
sales
|
|
116.7
|
109.2
|
Cost of
interactive
|
|
27.9
|
22.1
|
Selling, general and
administrative
|
|
117.8
|
100.2
|
Research and
development
|
|
60.3
|
54.4
|
Depreciation and
amortization
|
|
16.7
|
19.0
|
Contingent
acquisition-related costs
|
|
11.3
|
17.5
|
Total costs and
operating expenses
|
|
437.5
|
411.9
|
Operating
income
|
|
103.7
|
118.4
|
Other income
(expense)
|
|
|
|
Interest
income
|
|
10.1
|
11.3
|
Interest
expense
|
|
(36.4)
|
(31.7)
|
Other
|
|
(1.9)
|
(0.3)
|
Total other income
(expense)
|
|
(28.2)
|
(20.7)
|
Income before
tax
|
|
75.5
|
97.7
|
Income tax provision
(benefit)
|
|
(3.7)
|
32.4
|
Net
income
|
|
$ 79.2
|
$ 65.3
|
Basic earnings per
share
|
|
$
0.31
|
$
0.25
|
Diluted earnings
per share
|
|
$
0.31
|
$
0.24
|
Weighted average
shares outstanding
|
|
|
|
Basic
|
|
252.6
|
265.9
|
Diluted
|
|
255.3
|
267.9
|
Consolidated
Balance Sheet (Unaudited and Condensed)
|
|
|
|
|
|
|
|
December
31,
|
|
September
30,
|
|
2013
|
|
2013
|
(In
millions)
|
|
|
|
Assets
|
|
|
|
Current
assets
|
|
|
|
Cash and
equivalents
|
$
480.6
|
|
$
713.3
|
Investment
securities
|
99.5
|
|
28.8
|
Restricted cash and
investments
|
67.9
|
|
67.0
|
Jackpot annuity
investments
|
55.9
|
|
56.5
|
Receivables,
net
|
574.7
|
|
577.9
|
Inventories
|
74.5
|
|
90.1
|
Other assets and
deferred costs
|
225.2
|
|
242.4
|
Total current
assets
|
1,578.3
|
|
1,776.0
|
Property, plant and
equipment, net
|
467.3
|
|
483.9
|
Jackpot annuity
investments
|
264.4
|
|
268.6
|
Contracts and notes
receivable, net
|
166.5
|
|
165.6
|
Goodwill and other
intangibles, net
|
1,588.0
|
|
1,601.7
|
Other assets and
deferred costs
|
283.0
|
|
317.0
|
Total
Assets
|
$
4,347.5
|
|
$
4,612.8
|
Liabilities and
Shareholders' Equity
|
|
|
|
Current
liabilities
|
|
|
|
Short-term
debt
|
$
836.4
|
|
$
826.6
|
Accounts
payable
|
96.9
|
|
110.0
|
Jackpot liabilities,
current portion
|
126.0
|
|
131.7
|
Dividends
payable
|
27.5
|
|
25.9
|
Other accrued
liabilities
|
373.6
|
|
414.3
|
Total current
liabilities
|
1,460.4
|
|
1,508.5
|
Long-term
debt
|
1,356.4
|
|
1,366.3
|
Jackpot
liabilities
|
286.7
|
|
293.3
|
Other
liabilities
|
139.1
|
|
190.6
|
Total
Liabilities
|
3,242.6
|
|
3,358.7
|
Total
Equity
|
1,104.9
|
|
1,254.1
|
Total Liabilities
and Shareholders' Equity
|
$
4,347.5
|
|
$
4,612.8
|
Consolidated
Statements of Cash Flows (Unaudited and Condensed)
|
|
|
|
|
Three Months Ended
December 31,
|
2013
|
|
2012
|
(In
millions)
|
|
|
|
Operating
|
|
|
|
Net income
|
$
79.2
|
|
$
65.3
|
Adjustments:
|
|
|
|
Depreciation and
amortization
|
51.3
|
|
57.7
|
Acquisition-related
contingent earn-out costs
|
4.5
|
|
2.1
|
Other non-cash
items
|
28.6
|
|
30.5
|
Changes in operating
assets and liabilities, excluding acquisitions:
|
|
|
|
Receivables
|
(13.2)
|
|
14.4
|
Inventories
|
15.6
|
|
2.6
|
Accounts payable and
accrued liabilities
|
(51.0)
|
|
(83.5)
|
Jackpot
liabilities
|
(16.6)
|
|
(24.2)
|
Income taxes, net of
employee stock plans
|
(17.8)
|
|
28.8
|
Other assets and
deferred costs
|
(4.5)
|
|
0.8
|
Net operating cash
flows
|
76.1
|
|
94.5
|
Investing
|
|
|
|
Capital
expenditures
|
(24.6)
|
|
(37.6)
|
Investment
securities, net
|
(70.6)
|
|
-
|
Jackpot annuity
investments, net
|
9.0
|
|
9.9
|
Changes in restricted
cash
|
(0.8)
|
|
5.7
|
Loans receivable,
net
|
6.4
|
|
7.6
|
Other
|
3.3
|
|
4.6
|
Net investing cash
flows
|
(77.3)
|
|
(9.8)
|
Financing
|
|
|
|
Debt-related proceeds
(payments), net
|
(0.5)
|
|
(75.0)
|
Employee stock plan
proceeds
|
8.3
|
|
1.8
|
Share repurchases,
including net shares
|
(211.0)
|
|
-
|
Dividends
paid
|
(25.9)
|
|
(16.1)
|
Net financing cash
flows
|
(229.1)
|
|
(89.3)
|
Foreign exchange
rates effect on cash
|
(2.4)
|
|
(1.0)
|
Net change in cash
and equivalents
|
(232.7)
|
|
(5.6)
|
Beginning cash and
equivalents
|
713.3
|
|
206.3
|
Ending cash and
equivalents
|
$
480.6
|
|
$
200.7
|
Supplemental Data
(Unaudited)
|
|
|
|
|
|
Revenue
Metrics
|
|
|
First Quarters
Ended December 31,
|
2013
|
2012
|
In millions,
unless otherwise noted
|
|
|
Gaming
Operations
|
|
|
Revenues
|
$
223.0
|
$
242.6
|
North
America
|
191.6
|
208.6
|
International
|
31.4
|
34.0
|
Gross
margin
|
61%
|
63%
|
North
America
|
59%
|
62%
|
International
|
72%
|
69%
|
Installed base
(units '000)
|
54.3
|
56.8
|
North
America
|
41.3
|
43.0
|
International
|
13.0
|
13.8
|
Yield (average
revenue per unit per day - $0.00)
|
$44.99
|
$46.80
|
Product
Sales
|
|
|
Revenues
|
$
243.6
|
$
234.8
|
North
America
|
170.0
|
158.9
|
International
|
73.6
|
75.9
|
Machines
|
$
167.0
|
$
157.5
|
North
America
|
118.0
|
101.8
|
International
|
49.0
|
55.7
|
Non-machine
|
$
76.6
|
$
77.3
|
North
America
|
52.0
|
57.1
|
International
|
24.6
|
20.2
|
Gross
margin
|
52%
|
53%
|
North
America
|
53%
|
56%
|
International
|
50%
|
48%
|
Machine units
recognized ('000)
|
12.8
|
10.7
|
North
America
|
9.6
|
7.2
|
International
|
3.2
|
3.5
|
Machine units
shipped ('000) [includes units where revenues
deferred]
|
13.0
|
9.3
|
North
America
|
9.8
|
6.8
|
New
|
3.7
|
1.7
|
Replacement
|
6.1
|
5.1
|
International
|
3.2
|
2.5
|
New
|
0.7
|
0.8
|
Replacement
|
2.5
|
1.7
|
Machine ASP
('000)
|
$
13.2
|
$
14.8
|
North
America
|
12.3
|
14.1
|
International
|
15.3
|
16.1
|
Interactive
|
|
|
Revenues
|
$
74.6
|
$
52.9
|
North
America
|
65.8
|
41.9
|
International
|
8.8
|
11.0
|
Social
Gaming
|
64.8
|
41.3
|
North
America
|
64.8
|
41.3
|
International
|
-
|
-
|
IGTi
|
9.8
|
11.6
|
North
America
|
1.0
|
0.6
|
International
|
8.8
|
11.0
|
Gross
margin
|
63%
|
58%
|
North
America
|
62%
|
60%
|
International
|
66%
|
50%
|
DoubleDown
average user statistics*
|
|
|
DAU (Daily active
users) ('000)
|
1,716
|
1,462
|
MAU (Monthly active
users) ('000)
|
6,198
|
4,931
|
Bookings per DAU
($0.00)
|
$0.42
|
$0.31
|
*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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
Ended December 31, 2013
|
|
|
|
|
|
Cost of
Gaming Operations
|
Cost of
Interactive
|
Operating
Expenses
|
Operating
Income
|
Net
Income (a)
|
Diluted
EPS
|
|
|
|
|
|
|
|
GAAP
measures
|
$
86.8
|
$
27.9
|
$
206.1
|
$
103.7
|
$
79.2
|
$0.31
|
% of
revenue
|
|
|
38%
|
19%
|
|
|
Acquisition-related
charges: (b)
|
|
|
|
|
|
|
Contingent retention
& earn-out
|
|
-
|
(11.3)
|
11.3
|
7.5
|
0.03
|
Amortization of
intangibles
|
|
(2.7)
|
(3.4)
|
6.1
|
4.0
|
0.02
|
Severance
|
(0.6)
|
-
|
(2.1)
|
2.7
|
1.8
|
0.01
|
Certain discrete tax
items (benefits)
|
|
-
|
-
|
-
|
(29.6)
|
(0.12)
|
Total non-GAAP
adjustments
|
(0.6)
|
(2.7)
|
(16.8)
|
20.1
|
(16.3)
|
(0.06)
|
|
|
|
|
|
|
|
Adjusted
measures
|
$
86.2
|
$
25.2
|
$
189.3
|
$
123.8
|
$
62.9
|
$0.25
|
% of
revenue
|
|
|
35%
|
23%
|
|
|
|
|
|
|
|
|
|
(a)Adjustments
tax effected at 34%
|
|
|
|
|
(b)Primarily
related to DoubleDown
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
Ended December 31, 2012
|
|
|
|
|
|
|
Product Sales
Revenue
|
Cost of
Interactive
|
Operating
Expenses
|
Operating
Income
|
Net
Income (a)
|
Diluted
EPS
|
|
|
|
|
|
|
|
GAAP
measures
|
$
234.8
|
$
22.1
|
$
191.1
|
$
118.4
|
$
65.3
|
$0.24
|
% of
revenue
|
|
|
36%
|
22%
|
|
|
Acquisition-related
charges: (b)
|
|
|
|
|
|
|
Contingent retention
& earn-out
|
-
|
-
|
(17.5)
|
17.5
|
11.5
|
0.04
|
Amortization of
intangibles
|
-
|
(2.3)
|
(4.4)
|
6.7
|
4.4
|
0.02
|
Royalty
settlement
|
(5.0)
|
-
|
-
|
(5.0)
|
(5.0)
|
(0.02)
|
Total non-GAAP
adjustments
|
(5.0)
|
(2.3)
|
(21.9)
|
19.2
|
10.9
|
0.04
|
|
|
|
|
|
|
|
Adjusted
measures
|
$
229.8
|
$
19.8
|
$
169.2
|
$
137.6
|
$
76.2
|
$0.28
|
% of
revenue
|
|
|
32%
|
26%
|
|
|
|
|
|
|
|
|
|
(a) Adjustments
tax effected at 34%, except no tax effect on royalty
settlement
|
(b) Primarily
related to DoubleDown
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
For The First Quarters Ended December 31,
|
|
|
2013
|
|
2012
|
|
|
|
|
|
GAAP Net
income
|
|
$
79.2
|
|
$
65.3
|
Other (income)
expense, net
|
|
28.2
|
|
20.7
|
Income tax
provision
|
|
(3.7)
|
|
32.4
|
Depreciation and
amortization
|
|
51.3
|
|
57.7
|
Other
charges:
|
|
|
|
|
Share-based
compensation
|
|
8.9
|
|
8.6
|
Contingent
acquisition-related costs
|
|
11.3
|
|
17.5
|
Adjusted
EBITDA
|
|
$
175.2
|
|
$
202.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow For
The Three Months Ended December 31,
|
|
|
|
|
|
2013
|
|
2012
|
|
|
|
|
|
GAAP net operating
cash flows
|
|
$
76.1
|
|
$
94.5
|
Investment in
property, plant and equipment
|
|
(7.6)
|
|
(7.3)
|
Investment in gaming
operations equipment
|
|
(16.9)
|
|
(30.1)
|
Investment in
intellectual property
|
|
(0.1)
|
|
(0.2)
|
Free Cash Flow
(before dividends)
|
|
51.5
|
|
56.9
|
Dividends
paid
|
|
(25.9)
|
|
(16.1)
|
Free Cash Flow
(after dividends)
|
|
$
25.6
|
|
$
40.8
|
|
|
|
|
|
|
|
|
|
|
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