LAS VEGAS, March 25, 2014 /PRNewswire/ -- International
Game Technology (NYSE: IGT) is taking actions to re-align its cost
structure for long-term earnings growth.
In order to responsibly address the challenges facing the gaming
industry and their related impact on IGT, the Company is enacting
cost-cutting measures including the reduction of its global
workforce by 7 percent to realize expected cost savings of
$30 million in the current fiscal
year and an estimated $50 million on
an annual run-rate basis.
The Company is lowering its fiscal year 2014 guidance for
adjusted earnings per share from continuing operations from
$1.28 to $1.38 to $1.00 to $1.10. The Company is also providing
guidance for adjusted earnings per share from continuing operations
of $0.17 to $0.19 for the second
fiscal quarter of 2014.
"As we reach the halfway point in our fiscal year, you can see
this is a challenging time for the industry and IGT. We knew
that our success in 2013 would be difficult to replicate.
However, we did not expect such a sharp decline in North American
gross gaming revenues, or further degradation in the international
currency, compliance, and importation environment," said
Patti Hart, IGT CEO.
In addition to the actions mentioned above, IGT is taking a
number of decisive actions to position for long-term earnings
growth:
- Continued commitment to improve its gaming operations
performance
- Secured a new global licensing agreement with Sony, which
provides IGT with expanded franchise rights for Wheel of Fortune
through the year 2024
- Launching Powerbucks, a new interstate progressive jackpot, in
Nevada, New Jersey, South
Dakota, and Canada expected
by the end of the fiscal year
- Preserving its $200 million
annual R&D investment, to maintain industry leading innovation
- Reached a new agreement with Action Gaming to solidify IGT's
90-plus percent market share in video poker
- Re-engineering its game development process to leverage its
strength in social gaming to improve land-based game
performance
- Increasing its commitment to the Asian market
The opportunity for further discussion of IGT's re-alignment and
strategic initiatives will be available on a conference call with
CEO Patti Hart and CFO John Vandemore at 8:30
a.m. EDT on Wednesday, March 26. Dial-in information
is below.
Conference Call
IGT will host a conference call on Wednesday, March 26, 2014, at 5:30 a.m. PDT (or 8:30
a.m. EDT). The access numbers are as follows:
Domestic callers dial +1 800-857-5746, passcode IGT
International callers dial +1 517-308-9488, 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
through Wednesday, April 9, 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 Wednesday, April 9, 2014. The access
numbers are as follows:
Domestic callers dial +1 866-443-4143
International callers dial +1 203-369-1111
Adjusted earnings per share from continuing operations is a
non-GAAP financial measure. GAAP earnings per share from
continuing operations for fiscal year 2014 will include
acquisition-related expenses, primarily related to DoubleDown,
severance costs, currency devaluation expenses, asset impairment
charges, 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. Additionally, GAAP earnings per
share from continuing operations for the second quarter of fiscal
year 2014 will include acquisition-related expenses, primarily
related to DoubleDown, severance costs, currency devaluation
expenses, and asset impairment charges. The company may also
recognize other items that are not currently determinable, but may
be significant. For this reason, the company is unable to provide
estimates for GAAP earnings per share from continuing operations
for the second quarter of fiscal year 2014 at this time.
Forward-Looking Statements
This press release contains forward-looking statements that
involve risks and uncertainties. These statements include
implementation of certain cost reduction initiatives and our
estimated cost savings related to such initiatives, our expected
future financial and operational performance (including our
guidance for fiscal year 2014 and the second quarter of
fiscal 2014), our recently executed agreement with Sony, 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, including regulatory and
currency risks; 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 our Quarterly Report on Form 10-Q for our
fiscal quarter ended December 31,
2013 filed with the SEC on February
5, 2014 and available on the SEC website at www.sec.gov and
on the investor relations section of our website at
www.IGT.com/investors. All information provided in this
release is as of March 25, 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
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SOURCE IGT