- Consolidated revenue of $1.06
billion, up 8% as reported and 14% at constant currency,
with contributions from each segment including over 30% growth in
Global Gaming
- Operating income of $211
million; operating income margin of 20% at high end of
outlook
- Adjusted EBITDA of $402
million reflects robust Global Lottery profitability and
strong increase from Global Gaming
- Received €700 million in gross proceeds from sale of Italian
proximity payments business; completed acquisition of iSoftBet, a
leading iGaming content provider and third-party aggregator, for
approximately €160 million
- Net debt leverage improves to 3.1x, the lowest level in
Company history
- $224 million returned to
shareholders via dividends and share repurchases through
mid-October, a record level in a fiscal-year period
- Targeting upper half of full-year 2022 outlook
range
LONDON, Nov. 8, 2022
/PRNewswire/ -- International Game Technology PLC ("IGT")
(NYSE:IGT) today reported financial results for the third quarter
ended September 30, 2022. Today, at 8:00 a.m. EST, management will host a conference
call and webcast to present the results; access details are
provided below.
"IGT's organization along three business segments enables our
teams to be focused on developing and delivering best-in-class
products and services," said Vince
Sadusky, CEO of IGT. "The accomplishments are evidenced
in accelerated revenue and profit expansion in the third quarter,
achieving the top-end of our margin outlook. Customer and player
demand trends remain encouraging and IGT's suite of innovative
products and solutions has never been better. In addition, we
reached the lowest debt leverage in the Company's history, while
returning a record $224 million in
capital to shareholders so far this year."
"Our strategy to innovate, optimize, and grow is fueling
progress across the portfolio," said Max
Chiara, CFO of IGT. "Robust year-to-date cash flows and
proceeds from the sale of the Italy proximity payments/commercial services
business, in addition to proactive liability management, enabled us
to reduce debt to the lowest level ever. This enhanced credit
profile provides greater financial flexibility to execute on the
broadened, balanced capital allocation strategy presented at the
Investor Day last November."
Overview of Consolidated Third Quarter 2022 Results
|
Quarter
Ended
|
Y/Y
Change
(%)
|
Constant
Currency
Change (%)
|
All amounts from
continuing operations
|
September
30,
|
|
2022
|
|
2021
|
($ in
millions)
|
|
|
|
|
|
GAAP
Financials:
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
Global
Lottery
|
626
|
|
652
|
(4) %
|
4 %
|
Global
Gaming
|
379
|
|
289
|
31 %
|
34 %
|
Digital &
Betting
|
54
|
|
43
|
27 %
|
34 %
|
Total
revenue
|
1,060
|
|
984
|
8 %
|
14 %
|
|
|
|
|
|
|
Operating income
(loss)
|
|
|
|
|
|
Global
Lottery
|
211
|
|
234
|
(10) %
|
— %
|
Global
Gaming
|
65
|
|
31
|
107 %
|
113 %
|
Digital &
Betting
|
12
|
|
12
|
(5) %
|
(3) %
|
Corporate support
expense
|
(36)
|
|
(26)
|
(38) %
|
(57) %
|
Other(1)
|
(41)
|
|
(40)
|
(1) %
|
(2) %
|
Total operating
income
|
211
|
|
212
|
— %
|
9 %
|
Operating income
margin
|
20 %
|
|
22 %
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
236
|
|
113
|
109 %
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
401
|
|
435
|
(8) %
|
|
|
|
|
|
|
|
Earnings per share -
diluted
|
$1.30
|
|
$0.31
|
319 %
|
|
|
|
|
|
|
|
Non-GAAP Financial
Measures:
|
|
|
|
|
|
Adjusted
EBITDA
|
|
|
|
|
|
Global
Lottery
|
310
|
|
347
|
(11) %
|
(1) %
|
Global
Gaming
|
96
|
|
64
|
50 %
|
55 %
|
Digital &
Betting
|
16
|
|
15
|
4 %
|
6 %
|
Corporate support
expense
|
(19)
|
|
(19)
|
1 %
|
(23) %
|
Total Adjusted
EBITDA
|
402
|
|
407
|
(1) %
|
7 %
|
Adjusted EBITDA
margin
|
38 %
|
|
41 %
|
|
|
|
|
|
|
|
|
Adjusted earnings
per share - diluted
|
$0.43
|
|
$0.38
|
13 %
|
|
|
|
|
|
|
|
Free cash
flow
|
163
|
|
66
|
148 %
|
|
|
|
|
|
|
|
Net
debt
|
5,075
|
|
6,109
|
(17) %
|
|
|
|
|
|
|
|
(1)
|
Primarily includes
purchase price amortization
|
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:
- Completed acquisition of iSoftBet, a leading iGaming content
provider and third-party aggregator, for approximately €160 million
in cash in July 2022
- Successfully completed sale of Italian proximity
payments/commercial services business in September 2022 for gross proceeds of €700
million
- Strengthened Lottery contract portfolio with four-year
extension in New York and
seven-year extension in Georgia as
primary technology supplier, and a new 10-year instant ticket
printing and services contract in Texas
- Signed agreement with Santa Casa de Misericórdia de Lisboa to
deliver up to 7,200 Retailer Vue™ lottery terminals in Portugal
- Award-winning Resort Wallet™ and IGTPay™ cashless gaming
solutions deployed enterprise-wide at Station Casinos properties in
Las Vegas and at Indigo Sky Casino
in Oklahoma
- Innovative products and solutions recognized with recent
industry awards including "Best Slot Product" for Prosperity Link™
video slot game in the 2022 GGB Gaming & Technology Awards and
"Land-Based Product of the Year" for PeakBarTop™ with Sports
Betting at 2022 Global Gaming Awards Las Vegas
- Expanded IGT's sports betting leadership in Washington State via multi-year contract with
Nisqually Red Wind Casino, leveraging IGT's full turnkey
solution
- Recognized as the top-ranking gaming supplier by the All-In
Diversity Project (AIDP)
Financial Highlights:
Consolidated revenue of
$1.06 billion increased 8%, or 14% at
constant currency, from $984 million in the prior year
- Global Lottery revenue of $626
million, down 4% but up 4% at constant currency, primarily
driven by strong, multi-jurisdictional jackpot activity
- Global Gaming revenue rose to $379
million, up 31% as reported and 34% at constant currency on
significant increases in machine shipments, average selling prices,
installed base yields, and intellectual property and multi-year
poker site licenses
- Digital & Betting revenue increased 27%, 34% at constant
currency, to $54 million, primarily
driven by iCasino with contributions from the iSoftBet acquisition,
new markets in North America, and
organic growth
Operating income of $211 million
consistent with the prior-year period, up 9% at constant
currency
- Global Lottery operating income of $211
million, down 10% as reported and stable at constant
currency, with strong 34% operating income margin despite lower
Italy contribution and increased
investment in research and development
- Global Gaming operating income more than doubled to
$65 million on significant operating
leverage, partially offset by increased supply chain costs
- Digital & Betting operating income of $12 million was relatively consistent with the
prior year despite continued investments to fund growth
- Corporate support and other expense of $76 million, up from $66
million in the prior year, driven by higher
transaction-related expenses
Adjusted EBITDA of $402 million,
stable as reported and up 7% at constant currency
Net interest expense of $73
million compared to $79
million in the prior year, driven by lower average debt
balances
Foreign exchange gain of $37 million, up from
$6 million, primarily reflecting the impact of fluctuations in
the EUR/USD exchange rate on debt
Other non-operating income of $139 million versus
non-operating expense of $1 million in the prior-year period,
primarily driven by gain on sale of business and a
$120 million incremental accrual associated with the
DDI/Benson matter
Income tax provision of $21 million compared to
$37 million in the prior year,
primarily driven by discrete tax benefit arising from the
DDI/Benson matter
Income from continuing operations of $294 million versus
$101 million in the prior-year period, driven by gain on sale
of business, higher foreign exchange gains, a decrease in income
taxes and cost of debt, partially offset by accrual related to the
DDI/Benson matter and loss on extinguishment of debt
Net debt of $5.1 billion compared
to $5.9 billion at December 31,
2021; Net debt leverage of 3.1x, down from 3.5x at
December 31, 2021
Cash and Liquidity Update
Total liquidity of
$2.2 billion as of
September 30, 2022; $0.4 billion in unrestricted cash and
$1.8 billion in additional
borrowing capacity from undrawn credit facilities
Successfully completed a partial tender of certain Senior
Secured Notes, repurchasing $400
million of 6.500% Notes due 2025 and €200 million of 3.500%
Notes due 2024
Other Developments
The Company's Board of Directors
declared a quarterly cash dividend of $0.20 per common share
- Ex-dividend date of November 25,
2022
- Record date of November 28,
2022
- Payment date of December 9,
2022
Repurchased 2.0 million shares for $39
million in the third quarter at an average price of
$19.35 per share and an incremental
0.6 million shares repurchased for $10
million through mid-October; 4.7 million shares repurchased
on a year-to-date basis through mid-October for $103 million at an average price of $21.52 per share
Completed the purchase of iSoftBet in July 2022 and sale of Italian proximity
payments/commercial services business in September 2022
Reached an agreement in principle to settle the Benson v.
DoubleDown Interactive LLC, et. al. lawsuit and associated
proceedings; the agreement remains contingent upon court approval
by the U.S. Federal District Court for the Western District of
Washington
Introducing Fourth Quarter 2022 Expectations; Targeting Upper
Half of Full-Year 2022 Outlook Range
Fourth Quarter
- Revenue of approximately $1.0
billion
- Operating income margin of 18% - 19% includes approximately 150
- 200 basis point impact from iSoftBet acquisition step-up
amortization, project-related costs, and restructuring
expenses
- Assumes EUR/USD exchange rate of 1.00
Full Year
- Revenue of $4.1 billion -
$4.2 billion
- Operating income margin of 20% - 22%
- Cash from operations of $850 -
$950 million
- Capital expenditures of approximately $350 million
Earnings Conference Call and Webcast
November 8, 2022, at 8:00 a.m.
EST
To register to participate in the conference call, or to listen
to the live audio webcast, please visit the "Events Calendar" on
IGT's Investor Relations website at www.IGT.com. A replay will
be available on the website following the live event.
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 2022 are calculated using the same foreign
exchange rates as the corresponding 2021 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. Amounts reported in millions are
computed based on amounts in thousands. Certain amounts in columns
and rows within tables may not foot due to rounding. Percentages
and earnings per share amounts presented are calculated from the
underlying unrounded amounts.
About IGT
IGT (NYSE:IGT) is a global leader in gaming.
We deliver entertaining and responsible gaming experiences for
players across all channels and regulated segments, from Lotteries
and Gaming Machines 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 unrivaled 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 10,500 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, 2021 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 of 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.
Adjusted EBITDA represents net income (loss) from continuing
operations (a GAAP measure) before income taxes, interest expense,
net, foreign exchange gain (loss), net, other non-operating
expenses (e.g., DDI / Benson
Matter provision, gains/losses on extinguishment and
modifications of debt, etc.), net, depreciation, impairment losses,
amortization (service revenue, purchase accounting and non-purchase
accounting), restructuring expenses, stock-based compensation,
litigation expense (income), and certain other non-recurring items.
Other non-recurring items are infrequent in nature and are not
reflective of ongoing 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, litigation expense (income) and certain
other non-recurring items. Management believes that Adjusted EBITDA
is useful in providing period-to-period comparisons of the results
of the Company's ongoing operational performance.
Adjusted EPS represents diluted earnings per share from
continuing operations (a GAAP measure), excluding the effects of
foreign exchange, impairments, amortization from purchase
accounting, discrete tax items, and other significant non-recurring
adjustments that are not reflective of on-going operational
activities (e.g., DDI / Benson
Matter provision, gains/losses on sale of business,
gains/losses on extinguishment and modifications of debt, etc.).
Adjusted EPS is calculated using diluted weighted-average number of
shares outstanding, including the impact of any potentially
dilutive common stock equivalents that are anti-dilutive to GAAP
net income (loss) per share but dilutive to Adjusted EPS.
Management believes that Adjusted EPS is 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 capitalized debt issuance costs and cash and cash
equivalents, including cash and cash equivalents held for sale.
Cash and cash equivalents, including cash and cash equivalents
classified as held for sale, 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.
Net debt leverage is a non-GAAP financial measure that
represents the ratio of Net debt as of a particular balance sheet
date to Adjusted EBITDA for the last twelve months ("LTM") prior to
such date. Management believes that Net debt leverage is a useful
measure to assess IGT's financial strength and ability to incur
incremental indebtedness when making key investment decisions.
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.
Constant currency or constant FX is a non-GAAP financial measure
that expresses the current financial data using the
prior-year/period exchange rate (i.e., the month end exchange rates
used in preparing the financial statements for the prior year).
Management believes that constant currency is a useful measure to
compare period-to-period results without regard to the impact of
fluctuating foreign currency exchange rates.
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 06 5189 9184;
for Italian media inquiries
James Hurley, Investor Relations, +1
(401) 392-7190
Select Performance
and KPI data: ($ in millions, unless otherwise
noted)
|
|
|
|
|
|
|
|
|
|
|
|
|
Sequential
|
|
|
|
|
|
|
|
|
Constant
|
|
|
Change
as
|
|
|
Q3'22
|
|
Q3'21
|
|
Y/Y
Change
|
|
Currency
|
|
|
Reported
|
GLOBAL
LOTTERY
|
|
|
|
( %)
|
|
Change
(%)(1)
|
|
Q2'22
|
( %)
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
Service
|
|
|
|
|
|
|
|
|
|
|
|
Operating and
facilities management contracts
|
|
561
|
|
590
|
|
(5) %
|
|
3 %
|
|
581
|
(3) %
|
Upfront license fee
amortization
|
|
(44)
|
|
(51)
|
|
15 %
|
|
— %
|
|
(46)
|
5 %
|
Operating and
facilities management contracts, net
|
|
518
|
|
539
|
|
(4) %
|
|
3 %
|
|
535
|
(3) %
|
Other
|
|
70
|
|
78
|
|
(11) %
|
|
3 %
|
|
85
|
(18) %
|
Total service
revenue
|
|
588
|
|
617
|
|
(5) %
|
|
3 %
|
|
621
|
(5) %
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
sales
|
|
39
|
|
35
|
|
12 %
|
|
18 %
|
|
27
|
42 %
|
Total
revenue
|
|
626
|
|
652
|
|
(4) %
|
|
4 %
|
|
648
|
(3) %
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
211
|
|
234
|
|
(10) %
|
|
— %
|
|
230
|
(9) %
|
Adjusted
EBITDA(1)
|
|
310
|
|
347
|
|
(11) %
|
|
(1) %
|
|
330
|
(6) %
|
|
|
|
|
|
|
|
|
|
|
|
|
Global same-store
sales growth (%)
|
|
|
|
|
|
|
|
|
|
|
|
Instant ticket &
draw games
|
|
(0.5 %)
|
|
7.1 %
|
|
|
|
|
|
(8.6 %)
|
|
Multi-jurisdiction
jackpots
|
|
46.7 %
|
|
42.2 %
|
|
|
|
|
|
10.8 %
|
|
Total
|
|
3.3 %
|
|
9.3 %
|
|
|
|
|
|
(7.4 %)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America &
Rest of world same-store sales growth (%)
|
|
|
|
|
|
|
|
|
|
|
|
Instant ticket &
draw games
|
|
(0.2 %)
|
|
4.6 %
|
|
|
|
|
|
(5.6 %)
|
|
Multi-jurisdiction
jackpots
|
|
46.7 %
|
|
42.2 %
|
|
|
|
|
|
10.8 %
|
|
Total
|
|
4.7 %
|
|
7.5 %
|
|
|
|
|
|
(4.2 %)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Italy same-store
sales growth (%)
|
|
|
|
|
|
|
|
|
|
|
|
Instant ticket &
draw games
|
|
(1.5 %)
|
|
16.3 %
|
|
|
|
|
|
(17.5 %)
|
|
|
|
(1)
|
Non-GAAP measures;
see disclaimer and reconciliations to the most directly comparable
GAAP measure included herein
|
|
|
|
|
|
|
|
|
|
|
|
Sequential
|
|
|
|
|
|
|
|
|
Constant
|
|
|
Change
as
|
|
|
Q3'22
|
|
Q3'21
|
|
Y/Y
Change
|
|
Currency
|
|
|
Reported
|
GLOBAL
GAMING
|
|
|
|
( %)
|
|
Change
(%)(1)
|
|
Q2'22
|
( %)
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
Service
|
|
|
|
|
|
|
|
|
|
|
|
Terminal
|
|
126
|
|
116
|
|
8 %
|
|
10 %
|
|
123
|
3 %
|
Systems, software, and
other
|
|
58
|
|
56
|
|
4 %
|
|
7 %
|
|
56
|
4 %
|
Total service
revenue
|
|
184
|
|
172
|
|
7 %
|
|
9 %
|
|
179
|
3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
sales
|
|
|
|
|
|
|
|
|
|
|
|
Terminal
|
|
140
|
|
81
|
|
72 %
|
|
77 %
|
|
108
|
30 %
|
Other
|
|
55
|
|
36
|
|
54 %
|
|
59 %
|
|
44
|
27 %
|
Total product sales
revenue
|
|
195
|
|
117
|
|
67 %
|
|
71 %
|
|
151
|
29 %
|
Total
revenue
|
|
379
|
|
289
|
|
31 %
|
|
34 %
|
|
330
|
15 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
65
|
|
31
|
|
107 %
|
|
113 %
|
|
57
|
15 %
|
Adjusted
EBITDA(1)
|
|
96
|
|
64
|
|
50 %
|
|
55 %
|
|
87
|
10 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Installed base
units
|
|
|
|
|
|
|
|
|
|
|
|
Casino
|
|
47,411
|
|
48,434
|
|
(2) %
|
|
|
|
46,765
|
|
Casino - L/T
lease(2)
|
|
1,116
|
|
1,144
|
|
(2) %
|
|
|
|
1,133
|
|
Total installed base
units
|
|
48,527
|
|
49,578
|
|
(2) %
|
|
|
|
47,898
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Installed base units
(by geography)
|
|
|
|
|
|
|
|
|
|
|
|
US &
Canada
|
|
32,303
|
|
34,347
|
|
(6) %
|
|
|
|
32,270
|
|
Rest of
world
|
|
16,224
|
|
15,231
|
|
7 %
|
|
|
|
15,628
|
|
Total installed base
units
|
|
48,527
|
|
49,578
|
|
(2) %
|
|
|
|
47,898
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yields (by
geography)(3), in absolute $
|
|
|
|
|
|
|
|
|
|
|
|
US &
Canada
|
|
$43.73
|
|
$40.79
|
|
7 %
|
|
|
|
$42.64
|
|
Rest of
world
|
|
$6.32
|
|
$5.64
|
|
12 %
|
|
|
|
$6.20
|
|
Total
yields
|
|
$31.09
|
|
$29.67
|
|
5 %
|
|
|
|
$30.55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global machine units
sold
|
|
|
|
|
|
|
|
|
|
|
|
New/expansion
|
|
1,005
|
|
1,009
|
|
— %
|
|
|
|
818
|
|
Replacement
|
|
7,960
|
|
4,692
|
|
70 %
|
|
|
|
6,378
|
|
Total machine units
sold
|
|
8,965
|
|
5,701
|
|
57 %
|
|
|
|
7,196
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US & Canada
machine units sold
|
|
|
|
|
|
|
|
|
|
|
|
New/expansion
|
|
959
|
|
524
|
|
83 %
|
|
|
|
469
|
|
Replacement
|
|
5,448
|
|
3,451
|
|
58 %
|
|
|
|
4,580
|
|
Total machine units
sold
|
|
6,407
|
|
3,975
|
|
61 %
|
|
|
|
5,049
|
|
|
(1)
|
Non-GAAP measures;
see disclaimer and reconciliations to the most directly comparable
GAAP measure included herein
|
(2)
|
Excluded from yield
calculations due to treatment as sales-type leases
|
(3)
|
Excludes Casino L/T
lease units due to treatment as sales-type leases; comparability on
a Y/Y basis hindered due to lower active units in the prior
year
|
|
|
|
|
|
|
|
|
|
|
|
Sequential
|
|
|
|
|
|
|
|
|
Constant
|
|
|
Change
as
|
|
|
Q3'22
|
|
Q3'21
|
|
Y/Y
Change
|
|
Currency
|
|
|
Reported
|
GLOBAL GAMING
(Continued)
|
|
|
|
( %)
|
|
Change
(%)(1)
|
|
Q2'22
|
( %)
|
Rest of world
machine units sold
|
|
|
|
|
|
|
|
|
|
|
|
New/expansion
|
|
46
|
|
485
|
|
(91) %
|
|
|
|
349
|
|
Replacement
|
|
2,512
|
|
1,241
|
|
102 %
|
|
|
|
1,798
|
|
Total machine units
sold
|
|
2,558
|
|
1,726
|
|
48 %
|
|
|
|
2,147
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Selling
Price (ASP), in absolute $
|
|
|
|
|
|
|
|
|
|
|
|
US &
Canada
|
|
$15,900
|
|
$13,900
|
|
14 %
|
|
|
|
$15,200
|
|
Rest of
world
|
|
$13,900
|
|
$14,400
|
|
(3) %
|
|
|
|
$13,400
|
|
Total
ASP
|
|
$15,400
|
|
$14,100
|
|
9 %
|
|
|
|
$14,600
|
|
|
(1)
|
Non-GAAP measures;
see disclaimer and reconciliations to the most directly comparable
GAAP measure included herein
|
|
|
|
|
|
|
|
|
|
|
|
Sequential
|
|
|
|
|
|
|
|
|
Constant
|
|
|
Change
as
|
|
|
Q3'22
|
|
Q3'21
|
|
Y/Y
Change
|
|
Currency
|
|
|
Reported
|
DIGITAL &
BETTING
|
|
|
|
( %)
|
|
Change
(%)(1)
|
|
Q2'22
|
( %)
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
Service
|
|
54
|
|
43
|
|
27 %
|
|
34 %
|
|
43
|
28 %
|
Product
sales
|
|
—
|
|
—
|
|
(91) %
|
|
(91) %
|
|
—
|
(89) %
|
Total
revenue
|
|
54
|
|
43
|
|
27 %
|
|
34 %
|
|
43
|
27 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
12
|
|
12
|
|
(5) %
|
|
(3) %
|
|
8
|
43 %
|
Adjusted
EBITDA(1)
|
|
16
|
|
15
|
|
4 %
|
|
6 %
|
|
12
|
32 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
|
|
|
|
|
|
|
|
|
|
|
|
Revenue (by
geography)
|
|
|
|
|
|
|
|
|
|
|
|
US &
Canada
|
|
651
|
|
556
|
|
17 %
|
|
17 %
|
|
585
|
11 %
|
Italy
|
|
247
|
|
294
|
|
(16) %
|
|
(1) %
|
|
288
|
(14) %
|
Rest of
world
|
|
161
|
|
134
|
|
21 %
|
|
32 %
|
|
148
|
9 %
|
Total
revenue
|
|
1,060
|
|
984
|
|
8 %
|
|
14 %
|
|
1,021
|
4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Non-GAAP measures;
see disclaimer and reconciliations to the most directly comparable
GAAP measure included herein
|
International Game
Technology PLC
|
Consolidated
Statements of Operations
|
($ in millions
and shares in thousands, except per share
amounts)
|
Unaudited
|
|
|
|
|
|
|
|
|
|
For the three months
ended
|
|
For the nine months
ended
|
|
September
30,
|
|
September
30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Service
revenue
|
826
|
|
832
|
|
2,514
|
|
2,634
|
Product
sales
|
234
|
|
152
|
|
618
|
|
406
|
Total
revenue
|
1,060
|
|
984
|
|
3,132
|
|
3,039
|
|
|
|
|
|
|
|
|
Cost of
services
|
415
|
|
422
|
|
1,263
|
|
1,302
|
Cost of product
sales
|
149
|
|
93
|
|
388
|
|
253
|
Selling, general and
administrative
|
207
|
|
195
|
|
595
|
|
588
|
Research and
development
|
67
|
|
63
|
|
185
|
|
179
|
Other operating
expense
|
8
|
|
—
|
|
9
|
|
1
|
Total operating
expenses
|
849
|
|
772
|
|
2,441
|
|
2,323
|
|
|
|
|
|
|
|
|
Operating
income
|
211
|
|
212
|
|
691
|
|
716
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
73
|
|
79
|
|
223
|
|
264
|
Foreign exchange gain,
net
|
(37)
|
|
(6)
|
|
(59)
|
|
(62)
|
Other non-operating
(income) expense, net
|
(139)
|
|
1
|
|
8
|
|
96
|
Total non-operating
(income) expenses
|
(103)
|
|
74
|
|
172
|
|
298
|
Income from continuing
operations before provision for
income taxes
|
315
|
|
138
|
|
519
|
|
418
|
Provision for income
taxes
|
21
|
|
37
|
|
74
|
|
217
|
Income from
continuing operations
|
294
|
|
101
|
|
445
|
|
200
|
Income from
discontinued operations, net of tax
|
—
|
|
—
|
|
—
|
|
24
|
Gain on sale of
discontinued operations, net of tax
|
—
|
|
—
|
|
—
|
|
391
|
Income from
discontinued operations
|
—
|
|
—
|
|
—
|
|
415
|
Net
income
|
294
|
|
101
|
|
445
|
|
615
|
Less: Net income
attributable to non-controlling
interests from continuing operations
|
29
|
|
36
|
|
105
|
|
155
|
Less: Net loss
attributable to non-controlling interests
from discontinued operations
|
—
|
|
—
|
|
—
|
|
(2)
|
Net income
attributable to IGT PLC
|
264
|
|
65
|
|
339
|
|
462
|
|
|
|
|
|
|
|
|
Net income from
continuing operations attributable
to IGT PLC per common share - basic
|
1.31
|
|
0.32
|
|
1.67
|
|
0.22
|
Net income from
continuing operations attributable
to IGT PLC per common share - diluted
|
1.30
|
|
0.31
|
|
1.66
|
|
0.22
|
Net income
attributable to IGT PLC per common
share - basic
|
1.31
|
|
0.32
|
|
1.67
|
|
2.25
|
Net income
attributable to IGT PLC per common
share - diluted
|
1.30
|
|
0.31
|
|
1.66
|
|
2.24
|
Weighted-average
shares - basic
|
201,593
|
|
205,188
|
|
202,669
|
|
205,048
|
Weighted-average
shares - diluted
|
203,105
|
|
206,899
|
|
204,104
|
|
206,728
|
International Game
Technology PLC
|
Consolidated Balance
Sheets
|
($ in
millions)
|
Unaudited
|
|
|
|
|
|
|
|
September
30,
|
|
December 31,
|
|
|
2022
|
|
2021
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
401
|
|
591
|
Restricted cash and
cash equivalents
|
|
116
|
|
218
|
Trade and other
receivables, net
|
|
674
|
|
903
|
Inventories,
net
|
|
251
|
|
183
|
Other current
assets
|
|
448
|
|
593
|
Total current
assets
|
|
1,890
|
|
2,487
|
Systems, equipment and
other assets related to contracts, net
|
|
874
|
|
937
|
Property, plant and
equipment, net
|
|
113
|
|
119
|
Operating lease
right-of-use assets
|
|
247
|
|
283
|
Goodwill
|
|
4,425
|
|
4,656
|
Intangible assets,
net
|
|
1,331
|
|
1,413
|
Other non-current
assets
|
|
1,148
|
|
1,429
|
Total non-current
assets
|
|
8,138
|
|
8,836
|
Total
assets
|
|
10,028
|
|
11,322
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
668
|
|
1,035
|
Short term
borrowings
|
|
—
|
|
52
|
DDI / Benson Matter
provision
|
|
270
|
|
—
|
Other current
liabilities
|
|
687
|
|
828
|
Total current
liabilities
|
|
1,625
|
|
1,914
|
Long-term debt, less
current portion
|
|
5,485
|
|
6,477
|
Deferred income
taxes
|
|
282
|
|
368
|
Operating lease
liabilities
|
|
233
|
|
269
|
Other non-current
liabilities
|
|
326
|
|
323
|
Total non-current
liabilities
|
|
6,326
|
|
7,437
|
Total
liabilities
|
|
7,951
|
|
9,351
|
Commitments and
contingencies
|
|
|
|
|
IGT PLC's
shareholders' equity
|
|
1,582
|
|
1,282
|
Non-controlling
interests
|
|
495
|
|
689
|
Shareholders'
equity
|
|
2,077
|
|
1,971
|
Total liabilities
and shareholders' equity
|
|
10,028
|
|
11,322
|
International Game
Technology PLC
|
Consolidated
Statements of Cash Flows
|
($ in
millions)
|
Unaudited
|
|
For the three months
ended
|
|
For the nine months
ended
|
|
September
30,
|
|
September
30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
Net income
|
294
|
|
101
|
|
445
|
|
615
|
Less: Income from
discontinued operations, net of tax
|
—
|
|
—
|
|
—
|
|
415
|
Adjustments to
reconcile net income from continuing operations to net cash
provided by
operating activities from continuing operations:
|
|
|
|
|
|
|
|
DDI / Benson Matter
provision
|
120
|
|
—
|
|
270
|
|
—
|
Depreciation
|
75
|
|
81
|
|
223
|
|
246
|
Amortization
|
48
|
|
51
|
|
142
|
|
150
|
Amortization of
upfront license fees
|
46
|
|
54
|
|
146
|
|
164
|
Loss on extinguishment
of debt
|
13
|
|
1
|
|
13
|
|
92
|
Stock-based
compensation
|
12
|
|
11
|
|
34
|
|
22
|
Amortization of debt
issuance costs
|
4
|
|
4
|
|
11
|
|
15
|
Foreign exchange gain,
net
|
(37)
|
|
(6)
|
|
(59)
|
|
(62)
|
Deferred income
taxes
|
(59)
|
|
(27)
|
|
(91)
|
|
56
|
Gain on sale of
business
|
(278)
|
|
—
|
|
(278)
|
|
—
|
Other non-cash items,
net
|
4
|
|
(6)
|
|
(6)
|
|
(1)
|
Changes in operating
assets and liabilities, excluding the effects of acquisitions
and
divestitures:
|
|
|
|
|
|
|
|
Trade and other
receivables
|
(38)
|
|
(50)
|
|
29
|
|
(184)
|
Inventories
|
(21)
|
|
(17)
|
|
(74)
|
|
(12)
|
Accounts
payable
|
105
|
|
(101)
|
|
(30)
|
|
(77)
|
Accrued interest
payable
|
(37)
|
|
(25)
|
|
(37)
|
|
(64)
|
Accrued income
taxes
|
(70)
|
|
(1)
|
|
(64)
|
|
58
|
Other assets and
liabilities
|
55
|
|
44
|
|
(53)
|
|
10
|
Net cash provided by
operating activities from continuing operations
|
236
|
|
113
|
|
621
|
|
613
|
Net cash used in
operating activities from discontinued operations
|
—
|
|
—
|
|
—
|
|
(31)
|
Net cash provided by
operating activities
|
236
|
|
113
|
|
621
|
|
582
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
Proceeds from sale of
business, net of cash and restricted cash transferred
|
497
|
|
—
|
|
497
|
|
—
|
Proceeds from sale of
assets
|
2
|
|
3
|
|
15
|
|
15
|
Capital
expenditures
|
(73)
|
|
(47)
|
|
(226)
|
|
(168)
|
Business acquisitions,
net of cash acquired
|
(142)
|
|
—
|
|
(142)
|
|
—
|
Other
|
1
|
|
—
|
|
1
|
|
1
|
Net cash provided by
(used in) investing activities from continuing
operations
|
284
|
|
(44)
|
|
145
|
|
(152)
|
Net cash provided by
investing activities from discontinued operations
|
126
|
|
118
|
|
126
|
|
852
|
Net cash provided by
investing activities
|
410
|
|
74
|
|
271
|
|
700
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
Principal payments on
long-term debt
|
(597)
|
|
(424)
|
|
(597)
|
|
(2,846)
|
Net (repayments of)
proceeds from Revolving Credit Facilities
|
(203)
|
|
(498)
|
|
42
|
|
17
|
Net payments of
financial liabilities
|
(38)
|
|
(55)
|
|
(2)
|
|
(52)
|
Payments of debt
issuance costs
|
(10)
|
|
(7)
|
|
(10)
|
|
(14)
|
Payments in connection
with the extinguishment of debt
|
(7)
|
|
—
|
|
(7)
|
|
(85)
|
Proceeds from
long-term debt
|
—
|
|
589
|
|
—
|
|
1,339
|
Net proceeds from
(payments of) short-term borrowings
|
1
|
|
16
|
|
(51)
|
|
19
|
Repurchases of common
stock
|
(39)
|
|
—
|
|
(93)
|
|
—
|
Dividends
paid
|
(40)
|
|
—
|
|
(121)
|
|
—
|
Dividends paid -
non-controlling interests
|
(4)
|
|
—
|
|
(177)
|
|
(89)
|
Return of capital -
non-controlling interests
|
(10)
|
|
(31)
|
|
(58)
|
|
(92)
|
Capital increase -
non-controlling interests
|
—
|
|
1
|
|
3
|
|
12
|
Other
|
(2)
|
|
(3)
|
|
(12)
|
|
(12)
|
Net cash used in
financing activities
|
(951)
|
|
(412)
|
|
(1,085)
|
|
(1,804)
|
|
|
|
|
|
|
|
|
Net decrease in cash
and cash equivalents and restricted cash and cash
equivalents
|
(305)
|
|
(225)
|
|
(193)
|
|
(522)
|
Effect of exchange rate
changes on cash and cash equivalents and restricted cash and
cash
equivalents
|
(36)
|
|
(6)
|
|
(98)
|
|
(19)
|
Cash and cash
equivalents and restricted cash and cash equivalents at the
beginning of the period
|
858
|
|
819
|
|
808
|
|
1,129
|
Cash and cash
equivalents and restricted cash and cash equivalents at the end of
the period of
continuing operations
|
517
|
|
588
|
|
517
|
|
588
|
|
|
|
|
|
|
|
|
Supplemental Cash
Flow Information
|
|
|
|
|
|
|
|
Interest
paid
|
110
|
|
104
|
|
259
|
|
323
|
Income taxes
paid
|
150
|
|
64
|
|
229
|
|
104
|
International Game
Technology PLC
|
Net
Debt
|
($ in
millions)
|
Unaudited
|
|
|
|
|
|
September
30,
|
|
December 31,
|
|
2022
|
|
2021
|
5.350% Senior Secured
U.S. Dollar Notes due October 2023
|
61
|
|
61
|
3.500% Senior Secured
Euro Notes due July 2024
|
292
|
|
564
|
6.500% Senior Secured
U.S. Dollar Notes due February 2025
|
697
|
|
1,093
|
4.125% Senior Secured
U.S. Dollar Notes due April 2026
|
745
|
|
744
|
3.500% Senior Secured
Euro Notes due June 2026
|
727
|
|
844
|
6.250% Senior Secured
U.S. Dollar Notes due January 2027
|
746
|
|
745
|
2.375% Senior Secured
Euro Notes due April 2028
|
484
|
|
562
|
5.250% Senior Secured
U.S. Dollar Notes due January 2029
|
744
|
|
744
|
Senior Secured
Notes
|
4,495
|
|
5,357
|
|
|
|
|
Euro Term Loan
Facilities due January 2027
|
966
|
|
1,121
|
U.S. Dollar Revolving
Credit Facility A due July 2027
|
24
|
|
—
|
Long-term debt, less
current portion
|
5,485
|
|
6,477
|
|
|
|
|
Short-term
borrowings
|
—
|
|
52
|
Total
debt
|
5,485
|
|
6,529
|
|
|
|
|
Less: Cash and cash
equivalents
|
401
|
|
591
|
Less: Debt issuance
costs, net - U.S. Dollar Revolving Credit Facility A due July
2027
|
—
|
|
10
|
Less: Debt issuance
costs, net - Euro Revolving Credit Facility B due July
2027
|
9
|
|
7
|
Net
debt
|
5,075
|
|
5,922
|
|
|
|
|
Note: Net debt is a
non-GAAP financial measure
|
|
|
|
International Game
Technology PLC
|
Reconciliation of
Non-GAAP Financial Measures
|
($ in millions,
except per share amounts)
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended September 30, 2022
|
|
|
|
|
|
|
|
|
Business
|
|
|
|
|
|
|
Global
|
|
Global
|
|
Digital
&
|
|
Segments
|
|
Corporate
|
|
Total
|
|
|
Lottery
|
|
Gaming
|
|
Betting
|
|
Total
|
|
and Other
|
|
IGT PLC
|
Income from continuing
operations
|
|
|
|
|
|
|
|
|
|
|
|
294
|
Provision for income
taxes
|
|
|
|
|
|
|
|
|
|
|
|
21
|
Interest expense,
net
|
|
|
|
|
|
|
|
|
|
|
|
73
|
Foreign exchange gain,
net
|
|
|
|
|
|
|
|
|
|
|
|
(37)
|
Other non-operating
income, net
|
|
|
|
|
|
|
|
|
|
|
|
(139)
|
Operating income
(loss)
|
|
211
|
|
65
|
|
12
|
|
287
|
|
(76)
|
|
211
|
Depreciation
|
|
44
|
|
27
|
|
4
|
|
75
|
|
—
|
|
75
|
Amortization - service
revenue (1)
|
|
46
|
|
—
|
|
—
|
|
46
|
|
—
|
|
46
|
Amortization -
non-purchase accounting
|
|
5
|
|
2
|
|
—
|
|
7
|
|
1
|
|
8
|
Amortization - purchase
accounting
|
|
—
|
|
—
|
|
—
|
|
—
|
|
40
|
|
40
|
Stock-based
compensation
|
|
2
|
|
2
|
|
—
|
|
5
|
|
7
|
|
12
|
Other
(2)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
8
|
|
8
|
Adjusted
EBITDA
|
|
310
|
|
96
|
|
16
|
|
422
|
|
(19)
|
|
402
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities - continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
236
|
Capital
expenditures
|
|
|
|
|
|
|
|
|
|
|
|
(73)
|
Free Cash
Flow
|
|
|
|
|
|
|
|
|
|
|
|
163
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-Tax
Impact
|
|
Tax Impact
(3)(4)
|
|
Net
Impact
|
Reported EPS from
continuing operations attributable to IGT PLC - diluted
|
|
|
|
|
|
|
|
1.30
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange gain,
net
|
|
|
|
|
|
|
|
(0.18)
|
|
0.04
|
|
(0.22)
|
Amortization - purchase
accounting
|
|
|
|
|
|
|
|
0.20
|
|
0.05
|
|
0.15
|
Loss on extinguishment
and modifications of debt, net
|
|
|
|
|
|
0.06
|
|
—
|
|
0.06
|
DDI / Benson Matter
provision
|
|
|
|
|
|
|
|
0.59
|
|
0.14
|
|
0.45
|
Gain on sale of
business
|
|
|
|
|
|
|
|
(1.37)
|
|
(0.01)
|
|
(1.36)
|
Other (non-recurring
adjustments)
|
|
|
|
|
|
|
|
0.05
|
|
—
|
|
0.04
|
Net
adjustments
|
|
|
|
|
|
|
|
|
|
|
|
(0.87)
|
Adjusted EPS from
continuing operations attributable to IGT PLC - diluted
(5)
|
|
|
|
|
|
0.43
|
|
|
(1)
|
Includes amortization
of upfront license fees
|
(2)
|
Primarily includes
transaction-related costs
|
(3)
|
Calculated based on
nature of item, including any realizable deductions, and statutory
tax rate in effect for the relevant jurisdiction
|
(4)
|
The reported effective
tax rate was 6.7%. Adjusted for the above items, the effective tax
rate was 36.2%
|
(5)
|
Adjusted EPS was
calculated using weighted average shares outstanding of 203.1
million, which includes the dilutive impact of share-based payment
awards
|
International Game
Technology PLC
|
Reconciliation of
Non-GAAP Financial Measures
|
($ in millions,
except per share amounts)
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended September 30, 2021
|
|
|
|
|
|
|
|
|
Business
|
|
|
|
|
|
|
Global
|
|
Global
|
|
Digital
&
|
|
Segments
|
|
Corporate
|
|
Total
|
|
|
Lottery
|
|
Gaming
|
|
Betting
|
|
Total
|
|
and Other
|
|
IGT PLC
|
Income from continuing
operations
|
|
|
|
|
|
|
|
|
|
|
|
101
|
Provision for income
taxes
|
|
|
|
|
|
|
|
|
|
|
|
37
|
Interest expense,
net
|
|
|
|
|
|
|
|
|
|
|
|
79
|
Foreign exchange gain,
net
|
|
|
|
|
|
|
|
|
|
|
|
(6)
|
Other non-operating
expense, net
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Operating income
(loss)
|
|
234
|
|
31
|
|
12
|
|
278
|
|
(66)
|
|
212
|
Depreciation
|
|
48
|
|
29
|
|
4
|
|
81
|
|
—
|
|
81
|
Amortization - service
revenue (1)
|
|
54
|
|
—
|
|
—
|
|
54
|
|
—
|
|
54
|
Amortization -
non-purchase accounting
|
|
8
|
|
1
|
|
—
|
|
10
|
|
1
|
|
11
|
Amortization - purchase
accounting
|
|
—
|
|
—
|
|
—
|
|
—
|
|
40
|
|
40
|
Stock-based
compensation
|
|
3
|
|
2
|
|
—
|
|
5
|
|
6
|
|
11
|
Adjusted
EBITDA
|
|
347
|
|
64
|
|
15
|
|
426
|
|
(19)
|
|
407
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities - continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
113
|
Capital
expenditures
|
|
|
|
|
|
|
|
|
|
|
|
(47)
|
Free Cash
Flow
|
|
|
|
|
|
|
|
|
|
|
|
66
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-Tax
Impact
|
|
Tax Impact
(2) (3)
|
|
Net
Impact
|
Reported EPS from
continuing operations attributable to IGT PLC - diluted
|
|
|
|
|
|
|
0.31
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange gain,
net
|
|
|
|
|
|
|
|
(0.03)
|
|
0.06
|
|
(0.09)
|
Amortization - purchase
accounting
|
|
|
|
|
|
|
|
0.19
|
|
0.05
|
|
0.15
|
Net
adjustments
|
|
|
|
|
|
|
|
|
|
|
|
0.06
|
Adjusted EPS from
continuing operations attributable to IGT PLC - diluted
(4)
|
|
|
|
|
|
0.38
|
|
|
(1)
|
Includes amortization
of upfront license fees
|
(2)
|
Calculated based on
nature of item, including any realizable deductions, and statutory
tax rate in effect for the relevant jurisdiction
|
(3)
|
The reported effective
tax rate was 26.8%. Adjusted for the above items, the effective tax
rate was 33.4%
|
(4)
|
Adjusted EPS was
calculated using weighted average shares outstanding of 206.9
million, which includes the dilutive impact of share-based payment
awards
|
International Game
Technology PLC
|
Reconciliation of
Non-GAAP Financial Measures
|
($ in
millions, except per share amounts)
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the nine months
ended September 30, 2022
|
|
|
|
|
|
|
|
|
Business
|
|
|
|
|
|
|
Global
|
|
Global
|
|
Digital
&
|
|
Segments
|
|
Corporate
|
|
Total
|
|
|
Lottery
|
|
Gaming
|
|
Betting
|
|
Total
|
|
and Other
|
|
IGT PLC
|
Income from continuing
operations
|
|
|
|
|
|
|
|
|
|
|
|
445
|
Provision for income
taxes
|
|
|
|
|
|
|
|
|
|
|
|
74
|
Interest expense,
net
|
|
|
|
|
|
|
|
|
|
|
|
223
|
Foreign exchange gain,
net
|
|
|
|
|
|
|
|
|
|
|
|
(59)
|
Other non-operating
expense, net
|
|
|
|
|
|
|
|
|
|
|
|
8
|
Operating income
(loss)
|
|
693
|
|
174
|
|
33
|
|
899
|
|
(208)
|
|
691
|
Depreciation
|
|
131
|
|
81
|
|
12
|
|
223
|
|
(1)
|
|
223
|
Amortization - service
revenue (1)
|
|
146
|
|
—
|
|
—
|
|
146
|
|
—
|
|
146
|
Amortization -
non-purchase accounting
|
|
18
|
|
5
|
|
—
|
|
23
|
|
2
|
|
25
|
Amortization - purchase
accounting
|
|
—
|
|
—
|
|
—
|
|
—
|
|
117
|
|
117
|
Stock-based
compensation
|
|
7
|
|
5
|
|
1
|
|
13
|
|
21
|
|
34
|
Other
(2)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
9
|
|
9
|
Adjusted
EBITDA
|
|
996
|
|
264
|
|
45
|
|
1,305
|
|
(60)
|
|
1,245
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities - continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
621
|
Capital
expenditures
|
|
|
|
|
|
|
|
|
|
|
|
(226)
|
Free Cash
Flow
|
|
|
|
|
|
|
|
|
|
|
|
395
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-Tax
Impact
|
|
Tax Impact
(3) (4)
|
|
Net
Impact
|
Reported EPS from
continuing operations attributable to IGT PLC - diluted
|
|
|
|
|
|
|
1.66
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange gain,
net
|
|
|
|
|
|
|
|
(0.29)
|
|
0.12
|
|
(0.41)
|
Amortization - purchase
accounting
|
|
|
|
|
|
|
|
0.57
|
|
0.14
|
|
0.43
|
Loss on extinguishment
and modifications of debt, net
|
|
|
|
|
|
0.06
|
|
—
|
|
0.06
|
Discrete tax
items
|
|
|
|
|
|
|
|
—
|
|
(0.15)
|
|
0.15
|
DDI / Benson Matter
provision
|
|
|
|
|
|
|
|
1.32
|
|
0.32
|
|
1.00
|
Gain on sale of
business
|
|
|
|
|
|
|
|
(1.36)
|
|
(0.01)
|
|
(1.35)
|
Other (non-recurring
adjustments)
|
|
|
|
|
|
|
|
0.04
|
|
—
|
|
0.04
|
Net
adjustments
|
|
|
|
|
|
|
|
|
|
|
|
(0.06)
|
Adjusted EPS from
continuing operations attributable to IGT PLC - diluted
(5)
|
|
|
|
|
|
1.60
|
|
|
|
(1)
|
Includes amortization
of upfront license fees
|
(2)
|
Primarily includes
transaction-related costs
|
(3)
|
Calculated based on
nature of item, including any realizable deductions, and statutory
tax rate in effect for the relevant jurisdiction
|
(4)
|
The reported effective
tax rate was 14.3%. Adjusted for the above items, the effective tax
rate was 26.9%
|
(5)
|
Adjusted EPS was
calculated using weighted average shares outstanding of 204.1
million, which includes the dilutive impact of share-based payment
awards
|
International Game
Technology PLC
|
Reconciliation of
Non-GAAP Financial Measures
|
($ in
millions, except per share amounts)
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the nine months
ended September 30, 2021
|
|
|
|
|
|
|
|
|
Business
|
|
|
|
|
|
|
Global
|
|
Global
|
|
Digital
&
|
|
Segments
|
|
Corporate
|
|
Total
|
|
|
Lottery
|
|
Gaming
|
|
Betting
|
|
Total
|
|
and Other
|
|
IGT PLC
|
Income from continuing
operations
|
|
|
|
|
|
|
|
|
|
|
|
200
|
Provision for income
taxes
|
|
|
|
|
|
|
|
|
|
|
|
217
|
Interest expense,
net
|
|
|
|
|
|
|
|
|
|
|
|
264
|
Foreign exchange gain,
net
|
|
|
|
|
|
|
|
|
|
|
|
(62)
|
Other non-operating
expense, net
|
|
|
|
|
|
|
|
|
|
|
|
96
|
Operating income
(loss)
|
|
871
|
|
7
|
|
28
|
|
906
|
|
(190)
|
|
716
|
Depreciation
|
|
144
|
|
92
|
|
11
|
|
247
|
|
(1)
|
|
246
|
Amortization - service
revenue (1)
|
|
164
|
|
—
|
|
—
|
|
164
|
|
—
|
|
164
|
Amortization -
non-purchase accounting
|
|
25
|
|
4
|
|
—
|
|
29
|
|
3
|
|
32
|
Amortization - purchase
accounting
|
|
—
|
|
—
|
|
—
|
|
—
|
|
118
|
|
118
|
Stock-based
compensation
|
|
5
|
|
4
|
|
—
|
|
10
|
|
12
|
|
22
|
Other
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1
|
|
1
|
Adjusted
EBITDA
|
|
1,209
|
|
107
|
|
39
|
|
1,355
|
|
(57)
|
|
1,299
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities - continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
613
|
Capital
expenditures
|
|
|
|
|
|
|
|
|
|
|
|
(168)
|
Free Cash
Flow
|
|
|
|
|
|
|
|
|
|
|
|
445
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-Tax
Impact
|
|
Tax Impact
(2) (3)
|
|
Net
Impact
|
Reported EPS from
continuing operations attributable to IGT PLC - diluted
|
|
|
|
|
|
|
0.22
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange gain,
net
|
|
|
|
|
|
|
|
(0.30)
|
|
0.08
|
|
(0.38)
|
Amortization - purchase
accounting
|
|
|
|
|
|
|
|
0.57
|
|
0.14
|
|
0.43
|
Loss on extinguishment
and modifications of debt, net
|
|
|
|
|
|
0.42
|
|
—
|
|
0.42
|
Discrete tax
items
|
|
|
|
|
|
|
|
—
|
|
(0.33)
|
|
0.33
|
Net
adjustments
|
|
|
|
|
|
|
|
|
|
|
|
0.81
|
Adjusted EPS from
continuing operations attributable to IGT PLC - diluted
(4)
|
|
|
|
|
|
1.03
|
|
|
(1)
|
Includes amortization
of upfront license fees
|
(2)
|
Calculated based on
nature of item, including any realizable deductions, and statutory
tax rate in effect for the relevant jurisdiction
|
(3)
|
The reported effective
tax rate was 52.0%. Adjusted for the above items, the effective tax
rate was 34.7%
|
(4)
|
Adjusted EPS was
calculated using weighted average shares outstanding of 206.7
million, which includes the dilutive impact of share-based payment
awards
|
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SOURCE International Game Technology PLC