INTERNATIONAL GAME TECHNOLOGY PLC REPORTS THIRD QUARTER 2024 RESULTS REFLECTING CONTINUING OPERATIONS AFTER ANNOUNCED SALE OF GAMING & DIGITAL
-
Q3'24 revenue of
$587 million reflects sustained momentum inItaly and improvedU.S. instant ticket and draw game wagers -
Operating income of
$110 million includes$38 million restructuring charge associated with proactively optimizing general & administrative and operating activities following transformational actions over the last several years -
Adjusted EBITDA of
$264 million and Adjusted EBITDA margin of 44.9% highlight attractive profit profile of pure play lottery business -
Year-to-date cash from operations of
$724 million , with$489 million from continuing operations; continuing operations represents over 85% of year-to-date consolidated free cash flow - Introducing Q4'24 and FY'24 outlook for continuing operations
"Our third-quarter and year-to-date performance underscores the strength and resilience of our business model marked by our scale, attractive margin structure, and strong cash generation," said
"Sustained cash flow generation in the first nine months was predominantly driven by continuing operations," said
Overview of Consolidated Third Quarter 2024 Results
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Quarter Ended |
Y/Y |
Constant |
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All amounts from continuing operations |
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|
2024 |
|
2023 |
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($ in millions, except per share data) |
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GAAP Financials: |
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|
|
|
Revenue |
587 |
|
601 |
(2) % |
(3) % |
|
|
|
|
|
|
|
|
Operating income |
110 |
|
163 |
(33) % |
(33) % |
|
Operating income margin |
18.7 % |
|
27.1 % |
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Earnings per share - diluted |
|
|
|
NA |
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|
|
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|
|
Net cash provided by operating activities |
173 |
|
226 |
(23) % |
|
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|
|
|
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Cash and cash equivalents |
501 |
|
483 |
4 % |
|
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Non-GAAP Financial Measures: |
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|
Adjusted EBITDA |
264 |
|
279 |
(6) % |
(6) % |
|
Adjusted EBITDA margin |
44.9 % |
|
46.4 % |
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Adjusted earnings per share - diluted |
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NA |
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Free cash flow |
144 |
|
195 |
(26) % |
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Net debt |
5,156 |
|
5,327 |
(3) % |
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Note: Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are provided at the end of this news release |
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Key Highlights:
- Announced sale of Gaming & Digital business to funds managed by affiliates of Apollo Global Management, Inc. for
$4.05 billion in cash - Executed 10-year facilities management contract extension with
North Carolina Education Lottery - Awarded three-year primary instant ticket printing contract with
Portugal's national lottery, following a competitive procurement process - Strengthened partnership with La Française des Jeux, operator of the French national lottery, with signing of three-year instant ticket printing contract
- Successfully issued €500M 4.25% Senior Secured Notes due 2030; subsequent call of
$500M 6.50% Notes due 2025
Third Quarter 2024 Financial Highlights:
Revenue of $587 million compared to $601 million in the prior-year period
- Elevated
U.S. multi-state jackpot activity in the prior year - 2.7%
Italy same-store sales growth and improvement inU.S. instant ticket and draw game trends, partially offset by customer allowance - Increased other service revenue related to non-wager-based service contracts in
Europe - Multi-year central system software license and higher terminal sales in the prior year, partially offset by higher instant ticket printing in the current year
Gross profit of
- High profit flow-through from
U.S. multi-state jackpot activity in the prior year, partially offset by positive geographic mix in the current year - Stronger terminal sales and more favorable product mix in the prior year
Selling, general, and administrative expenses of $101 million compared to $106 million in the prior-year period with the improvement primarily related to lower legal costs
Research and development of $12 million versus $9 million in the prior year related to increased investment in growth initiatives
Operating income of
Adjusted EBITDA of
- High profit flow-through from elevated
U.S. multi-state jackpot sales in prior year partially offset by positive geographic mix in the current year - Higher terminal sales and beneficial product mix in prior year
- Lower legal costs in the current year
- Investment in growth initiatives
Net interest expense of
Foreign exchange loss of
Other non-operating expense, net, of
Income tax provision of
Net income of
Diluted loss per share from continuing operations of
Nine Months Ended
Revenue of
- Elevated
U.S. multi-state jackpot activity in the prior year - 3.1%
Italy same-store sales growth - Increased other service revenue related to non-wager-based service contracts in
Europe - Higher instant ticket printing services in the current year
Operating income of $507 million versus $555 million in the prior year, primarily driven by a
Adjusted EBITDA of $880 million compared to $898 million in the prior-year period; Adjusted EBITDA margin of 47.3% versus 48.6% in the prior year
- High profit flow-through from elevated
U.S. multi-state jackpot sales in prior year - Higher-margin product sales mix in prior year
- Continued cost management discipline and lower legal costs in the current year
- Investment in growth initiatives
Diluted earnings per share from continuing operations of
Year-to-date cash from operations of $724 million, $489 million from continuing operations; free cash flow from continuing operations of $385 million
Net debt of
Cash and Liquidity Update
Total liquidity of
Other Developments
Initiated OPtiMa 3.0, a multi-year program aimed at optimizing the Company's general & administrative and operating activities following transformational actions over the last several years, and to position the Company for success as a global lottery pure play
- Immediately addresses stranded corporate costs associated with the sale of Gaming & Digital business
-
$40 million of annualized cost savings expected by the end of 2026; approximately 50% of those savings expected to be realized by the end of 2025 -
$38 million restructuring charge,$27 million after tax, incurred in the third quarter of 2024, primarily related to the planned reduction of approximately 3% of the Company's global workforce
The Company's Board of Directors declared a quarterly cash dividend of
- Record date of
November 26, 2024 - Payment date of
December 10, 2024
Introducing Fourth Quarter and Full Year 2024 Outlook
Fourth Quarter
- Revenue of
$640 -$690 million - Adjusted EBITDA of
$280 -$300 million
Full Year
- Revenue of
$2.50 -$2.55 billion - Adjusted EBITDA of
$1.16 -$1.18 billion
The Company has provided select recast historical income statement, cash flow, and KPI data (both on a
Earnings Conference Call and Webcast
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
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 jurisdictions 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
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., 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.
Adjusted EBITDA margin represents Adjusted EBITDA divided by revenue
Adjusted EPS represents diluted earnings per share (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., 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 classified as held for sale. Cash and cash equivalents, including cash and cash equivalents 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 is a non-GAAP financial measure that expresses current financial data using the prior-year/period exchange rate (i.e., the exchange rate 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.
Outlook for Fiscal 2024 and Guidance Policy
The Company's updated guidance for fiscal 2024 is:
- Total revenue of approximately
$2.50 -$2.55 billion - Adjusted EBITDA of
$1.16 -$1.18 billion
The Company provides guidance of select information related to its financial and operating performance, and such measures may differ from year to year. The guidance is only an estimate of what the Company believes is realizable as of the date of this release. Actual results will vary from the guidance and the variations may be material. The Company undertakes no intent or obligation to publicly update or revise any of these projections, whether as a result of new information, future events or otherwise, except as required by law.
A reconciliation of the Company's forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measure cannot be provided without unreasonable effort. This is due to the inherent difficulty of accurately forecasting the occurrence and financial impact of the adjusting items necessary for such a reconciliation to be prepared, for example, the provision for income taxes or net foreign exchange gain/loss, as such items have not yet occurred, are out of the Company's control, or cannot be reasonably predicted.
Contact:
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Select Performance and KPI data: ($ in millions, unless otherwise noted) |
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Constant |
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Q3'24 |
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Q3'23 |
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Currency |
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Revenue |
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Y/Y Change |
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Change(1) |
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Service |
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Instant ticket & draw wager-based revenue |
|
477 |
|
472 |
|
1 % |
|
— % |
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U.S. multi-state jackpot wager-based revenue |
|
21 |
|
47 |
|
(56) % |
|
(56) % |
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Upfront license fee amortization |
|
(48) |
|
(47) |
|
(2) % |
|
— % |
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Other |
|
116 |
|
105 |
|
11 % |
|
11 % |
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Total service revenue |
|
566 |
|
576 |
|
(2) % |
|
(2) % |
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Product sales |
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20 |
|
25 |
|
(17) % |
|
(19) % |
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Total revenue |
|
587 |
|
601 |
|
(2) % |
|
(3) % |
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|
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|
|
|
|
|
|
|
|
|
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Operating income |
|
110 |
|
163 |
|
(33) % |
|
(33) % |
|
|
Adjusted EBITDA(1) |
|
264 |
|
279 |
|
(6) % |
|
(6) % |
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Same-store sales growth (%) at constant currency (wager-based growth) (2) |
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Global |
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Instant ticket & draw games |
|
1.0 % |
|
(0.8 %) |
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(55.2 %) |
|
43.6 % |
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Total |
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(5.8 %) |
|
3.1 % |
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Instant ticket & draw games |
|
0.2 % |
|
(1.0 %) |
|
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|
|
|
|
|
(55.2 %) |
|
43.6 % |
|
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|
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Total |
|
(9.8 %) |
|
4.9 % |
|
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Instant ticket & draw games |
|
2.7 % |
|
4.7 % |
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Rest of world |
|
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Instant ticket & draw games |
|
1.9 % |
|
(6.9 %) |
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Revenue (by geography) |
|
|
|
|
|
|
|
|
|
|
|
|
284 |
|
306 |
|
(7) % |
|
(7) % |
|
|
|
|
228 |
|
218 |
|
5 % |
|
3 % |
|
|
Rest of world |
|
75 |
|
77 |
|
(3) % |
|
(3) % |
|
|
Total revenue |
|
587 |
|
601 |
|
(2) % |
|
(3) % |
|
|
|
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|
|
|
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(1) Non-GAAP measure; see disclaimer on page 6 and reconciliations to the most directly comparable GAAP measure in Appendix for further details |
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(2) Same-store sales represents the change in wagers recorded in lottery jurisdictions where IGT is the operator or facilities management supplier, using the same lottery jurisdictions and perimeter for comparisons between periods |
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Consolidated Statements of Operations |
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($ and shares in millions, except per share amounts) |
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Unaudited |
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For the three months ended |
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For the nine months ended |
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|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
Service revenue |
566 |
|
576 |
|
1,771 |
|
1,767 |
|
Product sales |
20 |
|
25 |
|
89 |
|
82 |
|
Total revenue |
587 |
|
601 |
|
1,861 |
|
1,849 |
|
|
|
|
|
|
|
|
|
|
Cost of services |
300 |
|
301 |
|
907 |
|
894 |
|
Cost of product sales |
24 |
|
22 |
|
71 |
|
59 |
|
Selling, general and administrative |
101 |
|
106 |
|
300 |
|
312 |
|
Research and development |
12 |
|
9 |
|
34 |
|
27 |
|
Restructuring |
38 |
|
— |
|
39 |
|
2 |
|
Other operating expense, net |
2 |
|
— |
|
3 |
|
— |
|
Total operating expenses |
477 |
|
438 |
|
1,354 |
|
1,294 |
|
|
|
|
|
|
|
|
|
|
Operating income |
110 |
|
163 |
|
507 |
|
555 |
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
53 |
|
54 |
|
160 |
|
154 |
|
Foreign exchange loss (gain), net |
39 |
|
(36) |
|
23 |
|
(9) |
|
Other non-operating expense, net |
2 |
|
3 |
|
9 |
|
9 |
|
Total non-operating expenses |
94 |
|
21 |
|
192 |
|
155 |
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before provision for income taxes |
15 |
|
142 |
|
315 |
|
400 |
|
Provision for income taxes |
61 |
|
65 |
|
161 |
|
209 |
|
(Loss) income from continuing operations |
(46) |
|
77 |
|
154 |
|
192 |
|
Income from discontinued operations, net of tax |
88 |
|
46 |
|
101 |
|
88 |
|
Net income |
43 |
|
123 |
|
256 |
|
280 |
|
Less: Net income attributable to non-controlling interests |
34 |
|
31 |
|
120 |
|
115 |
|
Less: Net income (loss) attributable to non-controlling |
1 |
|
(2) |
|
5 |
|
2 |
|
Net income attributable to |
7 |
|
94 |
|
130 |
|
164 |
|
|
|
|
|
|
|
|
|
|
Net (loss) income from continuing operations |
(0.39) |
|
0.23 |
|
0.17 |
|
0.39 |
|
Net (loss) income from continuing operations |
(0.39) |
|
0.23 |
|
0.17 |
|
0.38 |
|
Net income attributable to |
0.04 |
|
0.47 |
|
0.65 |
|
0.82 |
|
Net income attributable to |
0.04 |
|
0.46 |
|
0.64 |
|
0.81 |
|
Weighted-average shares - basic |
202 |
|
200 |
|
201 |
|
200 |
|
Weighted-average shares - diluted |
202 |
|
203 |
|
203 |
|
202 |
|
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Consolidated Balance Sheets |
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($ in millions) |
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Unaudited |
||||
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|
|
|
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|
|
|
|
|
|
|
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|
2024 |
|
2023 |
|
Assets |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
|
501 |
|
508 |
|
Restricted cash and cash equivalents |
|
102 |
|
146 |
|
Trade and other receivables, net |
|
394 |
|
403 |
|
Inventories, net |
|
123 |
|
110 |
|
Other current assets |
|
152 |
|
141 |
|
Assets held for sale |
|
4,783 |
|
816 |
|
Total current assets |
|
6,056 |
|
2,123 |
|
Systems, equipment and other assets related to contracts, net |
|
578 |
|
622 |
|
Property, plant and equipment, net |
|
78 |
|
74 |
|
Operating lease right-of-use assets |
|
102 |
|
103 |
|
|
|
2,684 |
|
2,678 |
|
Intangible assets, net |
|
77 |
|
87 |
|
Other non-current assets |
|
677 |
|
835 |
|
Assets held for sale |
|
— |
|
3,943 |
|
Total non-current assets |
|
4,196 |
|
8,342 |
|
Total assets |
|
10,252 |
|
10,465 |
|
|
|
|
|
|
|
Liabilities and shareholders' equity |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Accounts payable |
|
662 |
|
643 |
|
Current portion of long-term debt |
|
224 |
|
— |
|
Short-term borrowings |
|
27 |
|
16 |
|
Other current liabilities |
|
481 |
|
561 |
|
Liabilities held for sale |
|
1,169 |
|
472 |
|
Total current liabilities |
|
2,563 |
|
1,691 |
|
Long-term debt, less current portion |
|
5,406 |
|
5,655 |
|
Deferred income taxes |
|
178 |
|
178 |
|
Operating lease liabilities |
|
84 |
|
88 |
|
Other non-current liabilities |
|
127 |
|
129 |
|
Liabilities held for sale |
|
— |
|
771 |
|
Total non-current liabilities |
|
5,795 |
|
6,821 |
|
Total liabilities |
|
8,358 |
|
8,513 |
|
Commitments and contingencies |
|
|
|
|
|
|
|
1,482 |
|
1,443 |
|
Non-controlling interests |
|
412 |
|
510 |
|
Shareholders' equity |
|
1,894 |
|
1,952 |
|
Total liabilities and shareholders' equity |
|
10,252 |
|
10,465 |
|
|
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Consolidated Statements of Cash Flows |
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($ in millions) |
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Unaudited |
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|
For the three months ended |
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For the nine months ended |
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|
||||
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|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
Cash flows from operating activities |
|
|
|
|
|
|
|
|
Net income |
43 |
|
123 |
|
256 |
|
280 |
|
Less: Income from discontinued operations, net of tax |
88 |
|
46 |
|
101 |
|
88 |
|
Adjustments to reconcile net income to net cash provided by operating activities from |
|
|
|
|
|
|
|
|
Amortization of upfront license fees |
51 |
|
50 |
|
150 |
|
149 |
|
Depreciation |
42 |
|
45 |
|
127 |
|
134 |
|
Foreign exchange loss (gain), net |
39 |
|
(36) |
|
23 |
|
(9) |
|
Stock-based compensation |
12 |
|
11 |
|
31 |
|
29 |
|
Amortization |
8 |
|
9 |
|
24 |
|
30 |
|
Deferred income taxes |
(21) |
|
14 |
|
(11) |
|
29 |
|
Other non-cash items, net |
1 |
|
6 |
|
8 |
|
11 |
|
Changes in operating assets and liabilities, excluding the effects of dispositions: |
|
|
|
|
|
|
|
|
Trade and other receivables |
(8) |
|
11 |
|
11 |
|
(23) |
|
Inventories |
(6) |
|
(12) |
|
(12) |
|
(37) |
|
Accounts payable |
87 |
|
20 |
|
18 |
|
11 |
|
Accrued interest payable |
(34) |
|
(27) |
|
(44) |
|
(33) |
|
Accrued income taxes |
(6) |
|
(14) |
|
3 |
|
99 |
|
Other assets and liabilities |
52 |
|
72 |
|
7 |
|
39 |
|
Net cash provided by operating activities from continuing operations |
173 |
|
226 |
|
489 |
|
620 |
|
Net cash provided by operating activities from discontinued operations |
87 |
|
70 |
|
235 |
|
20 |
|
Net cash provided by operating activities |
260 |
|
296 |
|
724 |
|
641 |
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
|
|
Capital expenditures |
(30) |
|
(31) |
|
(104) |
|
(104) |
|
Other |
2 |
|
1 |
|
1 |
|
— |
|
Net cash used in investing activities from continuing operations |
(27) |
|
(29) |
|
(103) |
|
(104) |
|
Net cash used in investing activities from discontinued operations |
(62) |
|
(69) |
|
(166) |
|
(185) |
|
Net cash used in investing activities |
(90) |
|
(98) |
|
(270) |
|
(289) |
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
|
|
Net proceeds from short-term borrowings |
27 |
|
55 |
|
11 |
|
56 |
|
Net receipts from (payments on) financial liabilities |
12 |
|
(61) |
|
(52) |
|
(66) |
|
Principal payments on long-term debt |
(500) |
|
— |
|
(500) |
|
(462) |
|
Proceeds from long-term debt |
556 |
|
— |
|
556 |
|
— |
|
Net (repayments of) proceeds from Revolving Credit Facilities |
(82) |
|
5 |
|
(119) |
|
478 |
|
Dividends paid |
(40) |
|
(40) |
|
(121) |
|
(120) |
|
Dividends paid - non-controlling interests |
— |
|
— |
|
(159) |
|
(151) |
|
Return of capital - non-controlling interests |
(10) |
|
(10) |
|
(55) |
|
(55) |
|
Other |
(16) |
|
(8) |
|
(28) |
|
(24) |
|
Net cash used in financing activities from continuing operations |
(54) |
|
(58) |
|
(467) |
|
(346) |
|
Net cash used in financing activities from discontinued operations |
(19) |
|
(9) |
|
(39) |
|
(25) |
|
Net cash used in financing activities |
(73) |
|
(67) |
|
(505) |
|
(371) |
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents |
98 |
|
130 |
|
(51) |
|
(19) |
|
Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash |
17 |
|
(32) |
|
(14) |
|
(24) |
|
Cash and cash equivalents and restricted cash and cash equivalents at the beginning of the |
559 |
|
599 |
|
739 |
|
740 |
|
Cash and cash equivalents and restricted cash and cash equivalents at the end of the period |
674 |
|
697 |
|
674 |
|
697 |
|
Less: Cash and cash equivalents and restricted cash and cash equivalents of discontinued |
71 |
|
107 |
|
71 |
|
107 |
|
Cash and cash equivalents and restricted cash and cash equivalents at the end of the period of |
604 |
|
590 |
|
604 |
|
590 |
|
|
|
|
|
|
|
|
|
|
Supplemental disclosures of cash flow information for continuing operations: |
|
|
|
|
|
|
|
|
Interest paid |
87 |
|
81 |
|
204 |
|
188 |
|
Income taxes paid |
87 |
|
65 |
|
169 |
|
81 |
|
|
|||
|
Net Debt |
|||
|
($ in millions) |
|||
|
Unaudited |
|||
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
2023 |
|
6.500% Senior Secured |
— |
|
499 |
|
4.125% Senior Secured |
748 |
|
747 |
|
3.500% Senior Secured Euro Notes due |
838 |
|
826 |
|
6.250% Senior Secured |
748 |
|
747 |
|
2.375% Senior Secured Euro Notes due |
557 |
|
550 |
|
5.250% Senior Secured |
746 |
|
745 |
|
4.250% Senior Secured Euro Notes due |
553 |
|
— |
|
Senior Secured Notes |
4,190 |
|
4,113 |
|
|
|
|
|
|
Euro Term Loan Facilities due |
666 |
|
876 |
|
Revolving Credit Facility A due |
212 |
|
207 |
|
Revolving Credit Facility B due |
338 |
|
458 |
|
Long-term debt, less current portion |
5,406 |
|
5,655 |
|
|
|
|
|
|
Euro Term Loan Facilities due |
224 |
|
— |
|
Current portion of long-term debt |
224 |
|
— |
|
|
|
|
|
|
Short-term borrowings |
27 |
|
16 |
|
Total debt |
5,657 |
|
5,671 |
|
|
|
|
|
|
Less: Cash and cash equivalents |
501 |
|
508 |
|
Net debt |
5,156 |
|
5,163 |
|
|
|
|
|
|
|
|
|
|
|
Note: Net debt is a non-GAAP financial measure |
|
|
|
|
Reconciliation of Non-GAAP Financial Measures (Unaudited, $ in millions) |
||||||||
|
|
||||||||
|
|
|
For the three months ended |
|
For the nine months ended |
||||
|
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
(Loss) income from continuing operations |
|
(46) |
|
77 |
|
154 |
|
192 |
|
Provision for income taxes |
|
61 |
|
65 |
|
161 |
|
209 |
|
Interest expense, net |
|
53 |
|
54 |
|
160 |
|
154 |
|
Foreign exchange loss (gain), net |
|
39 |
|
(36) |
|
23 |
|
(9) |
|
Other non-operating expense, net |
|
2 |
|
3 |
|
9 |
|
9 |
|
Operating income |
|
110 |
|
163 |
|
507 |
|
555 |
|
Depreciation |
|
42 |
|
45 |
|
127 |
|
134 |
|
Amortization - service revenue (1) |
|
51 |
|
50 |
|
150 |
|
149 |
|
Amortization - non-purchase accounting |
|
6 |
|
6 |
|
17 |
|
17 |
|
Amortization - purchase accounting |
|
2 |
|
4 |
|
7 |
|
13 |
|
Restructuring |
|
38 |
|
— |
|
39 |
|
2 |
|
Stock-based compensation |
|
12 |
|
11 |
|
31 |
|
29 |
|
Other |
|
2 |
|
— |
|
3 |
|
— |
|
Adjusted EBITDA |
|
264 |
|
279 |
|
880 |
|
898 |
|
(1) Includes amortization of upfront license fees |
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities - continuing operations |
|
173 |
|
226 |
|
489 |
|
620 |
|
Capital expenditures |
|
(30) |
|
(31) |
|
(104) |
|
(104) |
|
Free Cash Flow |
|
144 |
|
195 |
|
385 |
|
516 |
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Financial Measures (Unaudited) |
|
||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||
|
|
|
For the three months ended |
|
For the nine months ended |
|
||||||||||||||||||||
|
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
||||||||||||||||
|
|
|
Pre-Tax |
|
Tax |
|
Net |
|
Pre-Tax |
|
Tax |
|
Net |
|
Pre-Tax |
|
Tax |
|
Net |
|
Pre-Tax |
|
Tax |
|
Net |
|
|
Reported EPS from continuing operations |
|
|
|
|
(0.39) |
|
|
|
|
|
0.23 |
|
|
|
|
|
0.17 |
|
|
|
|
|
0.38 |
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange loss (gain), net |
|
0.19 |
|
(0.03) |
|
0.22 |
|
(0.18) |
|
0.02 |
|
(0.20) |
|
0.11 |
|
— |
|
0.11 |
|
(0.04) |
|
0.01 |
|
(0.05) |
|
|
Amortization - purchase accounting |
|
0.01 |
|
— |
|
0.01 |
|
0.02 |
|
— |
|
0.01 |
|
0.03 |
|
0.01 |
|
0.03 |
|
0.06 |
|
0.01 |
|
0.05 |
|
|
Restructuring |
|
0.19 |
|
0.06 |
|
0.13 |
|
— |
|
— |
|
— |
|
0.19 |
|
0.06 |
|
0.13 |
|
0.01 |
|
— |
|
0.01 |
|
|
Other (non-recurring adjustments) |
|
0.01 |
|
— |
|
0.01 |
|
— |
|
— |
|
— |
|
0.02 |
|
— |
|
0.02 |
|
0.02 |
|
— |
|
0.02 |
|
|
Net adjustments |
|
|
|
|
|
0.38 |
|
|
|
|
|
(0.18) |
|
|
|
|
|
0.29 |
|
|
|
|
|
0.03 |
|
|
Adjusted EPS from continuing operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.02) |
|
|
|
|
|
0.04 |
|
|
|
|
|
0.46 |
|
|
|
|
|
0.41 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported effective tax rate |
|
|
|
|
|
394.3 % |
|
|
|
|
|
45.7 % |
|
|
|
|
|
51.0 % |
|
|
|
|
|
52.1 % |
|
|
Adjusted effective tax rate |
|
|
|
|
|
68.9 % |
|
|
|
|
|
63.6 % |
|
|
|
|
|
45.1 % |
|
|
|
|
|
51.8 % |
|
|
Adjusted EPS weighted average shares outstanding (in millions) |
|
|
|
202(2) |
|
|
|
|
|
203(3) |
|
|
|
|
|
203(3) |
|
|
|
|
|
202(3) |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
(1) Calculated based on nature of item, including any realizable deductions, and statutory tax rate in effect for the relevant jurisdiction |
|
||||||||||||||||||||||||
|
(2) Excludes the anti-dilutive impact of share-based payment awards |
|
||||||||||||||||||||||||
|
(3) Includes the dilutive impact of share-based payment awards |
|
||||||||||||||||||||||||
Recast Historical Financial Information
Recast data reflects the treatment of IGT's Gaming & Digital businesses as discontinued operations and revised revenue and KPI components.
|
Consolidated Statements of Operations (Unaudited, $ and shares in millions, except per share amounts) |
||||||||||||||
|
|
||||||||||||||
|
|
|
For the three months ended |
|
For the three months ended |
|
For the year ended |
||||||||
|
|
|
2024 |
|
2023 |
|
2022 |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service revenue |
|
586 |
|
619 |
|
592 |
|
576 |
|
588 |
|
602 |
|
2,440 |
|
Product sales |
|
27 |
|
42 |
|
89 |
|
25 |
|
35 |
|
22 |
|
157 |
|
Total revenue |
|
613 |
|
661 |
|
681 |
|
601 |
|
623 |
|
624 |
|
2,597 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of services |
|
304 |
|
304 |
|
313 |
|
301 |
|
298 |
|
296 |
|
1,280 |
|
Cost of product sales |
|
22 |
|
26 |
|
53 |
|
22 |
|
21 |
|
15 |
|
120 |
|
Selling, general and administrative |
|
96 |
|
102 |
|
95 |
|
106 |
|
104 |
|
102 |
|
400 |
|
Research and development |
|
11 |
|
11 |
|
10 |
|
9 |
|
9 |
|
9 |
|
45 |
|
Other operating expense, net |
|
1 |
|
— |
|
12 |
|
— |
|
2 |
|
— |
|
9 |
|
Total operating expenses |
|
434 |
|
443 |
|
483 |
|
438 |
|
434 |
|
422 |
|
1,854 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
179 |
|
219 |
|
197 |
|
163 |
|
190 |
|
202 |
|
743 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
53 |
|
53 |
|
54 |
|
54 |
|
50 |
|
50 |
|
216 |
|
Foreign exchange (gain) loss, net |
|
(4) |
|
(11) |
|
52 |
|
(36) |
|
3 |
|
25 |
|
17 |
|
Gain on sale of business |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(278) |
|
Other non-operating expense, net |
|
3 |
|
4 |
|
4 |
|
3 |
|
— |
|
6 |
|
15 |
|
Total non-operating expense (income), net |
|
52 |
|
46 |
|
110 |
|
21 |
|
53 |
|
80 |
|
(29) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before |
|
127 |
|
173 |
|
88 |
|
142 |
|
137 |
|
122 |
|
772 |
|
Provision for income taxes |
|
43 |
|
57 |
|
15 |
|
65 |
|
67 |
|
76 |
|
212 |
|
Income from continuing operations |
|
84 |
|
116 |
|
73 |
|
77 |
|
69 |
|
46 |
|
560 |
|
Income (loss) from discontinued operations, net of tax |
|
— |
|
13 |
|
(46) |
|
46 |
|
21 |
|
22 |
|
(146) |
|
Net income |
|
85 |
|
128 |
|
27 |
|
123 |
|
90 |
|
67 |
|
414 |
|
Less: Net income attributable to non-controlling |
|
41 |
|
45 |
|
35 |
|
31 |
|
42 |
|
42 |
|
139 |
|
Less: Net income (loss) attributable to non-controlling |
|
2 |
|
2 |
|
— |
|
(2) |
|
2 |
|
2 |
|
— |
|
Net income (loss) attributable to |
|
42 |
|
82 |
|
(7) |
|
94 |
|
46 |
|
23 |
|
275 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income from continuing operations attributable |
|
0.21 |
|
0.35 |
|
0.19 |
|
0.23 |
|
0.14 |
|
0.02 |
|
2.08 |
|
Net income from continuing operations attributable |
|
0.21 |
|
0.35 |
|
0.19 |
|
0.23 |
|
0.14 |
|
0.02 |
|
2.07 |
|
Net income (loss) attributable to |
|
0.21 |
|
0.41 |
|
(0.04) |
|
0.47 |
|
0.23 |
|
0.11 |
|
1.36 |
|
Net income (loss) attributable to |
|
0.21 |
|
0.40 |
|
(0.04) |
|
0.46 |
|
0.23 |
|
0.11 |
|
1.35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares - basic |
|
201 |
|
200 |
|
200 |
|
200 |
|
200 |
|
200 |
|
202 |
|
Weighted-average shares - diluted |
|
203 |
|
203 |
|
200 |
|
203 |
|
203 |
|
202 |
|
203 |
|
Select Performance and KPI data: ($ in millions, unless otherwise noted) |
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended |
|
For the three months ended |
|
For the year ended |
||||||||
|
|
|
2024 |
|
2023 |
|
2022 |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Instant ticket & draw wager-based revenue |
|
487 |
|
514 |
|
500 |
|
472 |
|
485 |
|
501 |
|
1,846 |
|
U.S. multi-state jackpot wager-based revenue |
|
23 |
|
31 |
|
33 |
|
47 |
|
18 |
|
31 |
|
115 |
|
Upfront license fee amortization |
|
(47) |
|
(47) |
|
(47) |
|
(47) |
|
(47) |
|
(47) |
|
(183) |
|
Other |
|
124 |
|
121 |
|
107 |
|
105 |
|
131 |
|
117 |
|
662 |
|
Total service revenue |
|
586 |
|
619 |
|
592 |
|
576 |
|
588 |
|
602 |
|
2,440 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product Sales |
|
27 |
|
42 |
|
89 |
|
25 |
|
35 |
|
22 |
|
157 |
|
Total revenue |
|
613 |
|
661 |
|
681 |
|
601 |
|
623 |
|
624 |
|
2,597 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same-store sales growth (%) at constant currency (wager-based growth) (1) |
||||||||||||||
|
Global |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Instant ticket & draw games |
|
(0.2) % |
|
(0.2) % |
|
(0.1) % |
|
(0.8) % |
|
2.0 % |
|
5.0 % |
|
(3.7) % |
|
|
|
22.5 % |
|
(0.8) % |
|
(28.7) % |
|
43.6 % |
|
(2.1) % |
|
62.3 % |
|
21.0 % |
|
Total |
|
0.9 % |
|
(0.3) % |
|
(3.5) % |
|
3.1 % |
|
1.8 % |
|
8.0 % |
|
(2.2) % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Instant ticket & draw games |
|
(1.9) % |
|
(2.6) % |
|
(0.9) % |
|
(1.0) % |
|
0.4 % |
|
3.4 % |
|
(3.0) % |
|
|
|
22.5 % |
|
(0.8) % |
|
(28.7) % |
|
43.6 % |
|
(2.1) % |
|
62.3 % |
|
21.0 % |
|
Total |
|
— % |
|
(2.4) % |
|
(5.8) % |
|
4.9 % |
|
0.2 % |
|
8.3 % |
|
(0.7) % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Instant ticket & draw games |
|
2.3 % |
|
4.4 % |
|
2.9 % |
|
4.7 % |
|
8.0 % |
|
10.3 % |
|
(8.5) % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rest of world |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Instant ticket & draw games |
|
3.0 % |
|
2.6 % |
|
(1.1) % |
|
(6.9) % |
|
0.3 % |
|
3.6 % |
|
0.6 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Same-store sales represents the change in wagers recorded in lottery jurisdictions where IGT is the operator or facilities management supplier, using the same lottery jurisdictions and perimeter for comparisons between periods |
||||||||||||||
|
|
||||||||||||||
|
|
|||||||||||||
|
Consolidated Statements of Cash Flows |
|||||||||||||
|
($ in millions) |
|||||||||||||
|
Unaudited |
|||||||||||||
|
|
For the three months ended |
|
For the three months ended |
|
For the year ended |
||||||||
|
|
2024 |
|
2023 |
|
2022 |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
85 |
|
128 |
|
27 |
|
123 |
|
90 |
|
67 |
|
414 |
|
Less: Income (loss) from discontinued operations, net of tax |
— |
|
13 |
|
(46) |
|
46 |
|
21 |
|
22 |
|
(146) |
|
Adjustments to reconcile net income to net cash provided by operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
43 |
|
41 |
|
42 |
|
45 |
|
45 |
|
44 |
|
181 |
|
Amortization |
8 |
|
8 |
|
10 |
|
9 |
|
10 |
|
10 |
|
45 |
|
Amortization of upfront license fees |
49 |
|
50 |
|
50 |
|
50 |
|
50 |
|
49 |
|
193 |
|
Deferred income taxes |
5 |
|
5 |
|
(65) |
|
14 |
|
7 |
|
7 |
|
(42) |
|
Stock-based compensation |
9 |
|
9 |
|
5 |
|
11 |
|
10 |
|
8 |
|
34 |
|
Foreign exchange (gain) loss, net |
(4) |
|
(11) |
|
52 |
|
(36) |
|
3 |
|
25 |
|
17 |
|
Gain on sale of business |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(278) |
|
Other non-cash items, net |
3 |
|
4 |
|
3 |
|
6 |
|
(1) |
|
6 |
|
16 |
|
Changes in operating assets and liabilities, excluding the effects of dispositions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade and other receivables |
64 |
|
(45) |
|
(32) |
|
11 |
|
23 |
|
(57) |
|
114 |
|
Inventories |
(4) |
|
(2) |
|
16 |
|
(12) |
|
(5) |
|
(20) |
|
(17) |
|
Accounts payable |
(44) |
|
(25) |
|
71 |
|
20 |
|
(112) |
|
103 |
|
(60) |
|
Accrued interest payable |
27 |
|
(37) |
|
34 |
|
(27) |
|
28 |
|
(35) |
|
(15) |
|
Accrued income taxes |
2 |
|
6 |
|
12 |
|
(14) |
|
50 |
|
64 |
|
(29) |
|
Other assets and liabilities |
8 |
|
(53) |
|
24 |
|
72 |
|
— |
|
(33) |
|
14 |
|
Net cash provided by operating activities from continuing operations |
250 |
|
65 |
|
295 |
|
226 |
|
176 |
|
218 |
|
734 |
|
Net cash provided by (used in) operating activities from discontinued |
93 |
|
55 |
|
104 |
|
70 |
|
(142) |
|
93 |
|
165 |
|
Net cash provided by operating activities |
343 |
|
120 |
|
400 |
|
296 |
|
34 |
|
311 |
|
899 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures |
(40) |
|
(35) |
|
(43) |
|
(31) |
|
(36) |
|
(38) |
|
(162) |
|
Proceeds from sale of business, net of cash and restricted cash transferred |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
476 |
|
Other |
1 |
|
(2) |
|
(4) |
|
1 |
|
1 |
|
(2) |
|
13 |
|
Net cash (used in) provided by investing activities from continuing operations |
(39) |
|
(37) |
|
(47) |
|
(29) |
|
(35) |
|
(39) |
|
328 |
|
Net cash used in investing activities from discontinued operations |
(58) |
|
(46) |
|
(57) |
|
(69) |
|
(64) |
|
(52) |
|
(159) |
|
Net cash (used in) provided by investing activities |
(97) |
|
(83) |
|
(104) |
|
(98) |
|
(99) |
|
(91) |
|
168 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (payments of) proceeds from short-term borrowings |
(6) |
|
(9) |
|
(43) |
|
55 |
|
(53) |
|
53 |
|
(51) |
|
Net (payments on) receipts from financial liabilities |
(1) |
|
(63) |
|
67 |
|
(61) |
|
(14) |
|
8 |
|
75 |
|
Principal payments on long-term debt |
— |
|
— |
|
(339) |
|
— |
|
— |
|
(462) |
|
(597) |
|
Net proceeds from (repayments of) Revolving Credit Facilities |
35 |
|
(72) |
|
131 |
|
5 |
|
81 |
|
392 |
|
72 |
|
Repurchases of treasury shares |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(115) |
|
Dividends paid |
(80) |
|
— |
|
(40) |
|
(40) |
|
(40) |
|
(40) |
|
(161) |
|
Dividends paid - non-controlling interests |
(59) |
|
(100) |
|
— |
|
— |
|
(59) |
|
(92) |
|
(176) |
|
Return of capital - non-controlling interests |
(35) |
|
(10) |
|
(18) |
|
(10) |
|
(36) |
|
(10) |
|
(75) |
|
Other |
(12) |
|
1 |
|
(4) |
|
(8) |
|
(10) |
|
(6) |
|
(34) |
|
Net cash used in financing activities from continuing operations |
(159) |
|
(253) |
|
(246) |
|
(58) |
|
(130) |
|
(157) |
|
(1,063) |
|
Net cash used in financing activities from discontinued operations |
(11) |
|
(9) |
|
(21) |
|
(9) |
|
(11) |
|
(5) |
|
(3) |
|
Net cash used in financing activities |
(170) |
|
(262) |
|
(267) |
|
(67) |
|
(141) |
|
(163) |
|
(1,065) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents |
76 |
|
(225) |
|
29 |
|
130 |
|
(206) |
|
57 |
|
2 |
|
Effect of exchange rate changes on cash and cash equivalents and restricted cash |
(14) |
|
(18) |
|
13 |
|
(32) |
|
(1) |
|
8 |
|
(70) |
|
Cash and cash equivalents and restricted cash and cash equivalents at the |
497 |
|
739 |
|
697 |
|
599 |
|
805 |
|
740 |
|
808 |
|
Cash and cash equivalents and restricted cash and cash equivalents at the end of the period |
559 |
|
497 |
|
739 |
|
697 |
|
599 |
|
805 |
|
740 |
|
Less: Cash and cash equivalents and restricted cash and cash equivalents of |
86 |
|
83 |
|
86 |
|
107 |
|
115 |
|
104 |
|
99 |
|
Cash and cash equivalents and restricted cash and cash equivalents at the end of |
473 |
|
414 |
|
653 |
|
590 |
|
484 |
|
701 |
|
642 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental disclosures of cash flow information for continuing operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest paid |
26 |
|
91 |
|
20 |
|
81 |
|
23 |
|
84 |
|
228 |
|
Income taxes paid |
36 |
|
46 |
|
68 |
|
65 |
|
10 |
|
5 |
|
283 |
|
|
||||||||||||||
|
Reconciliation of Non-GAAP Financial Measures |
||||||||||||||
|
(Unaudited, $ in millions) |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended |
|
For the three months ended |
|
For the year ended |
||||||||
|
|
|
2024 |
|
2023 |
|
2022 |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
84 |
|
116 |
|
73 |
|
77 |
|
69 |
|
46 |
|
560 |
|
Provision for income taxes |
|
43 |
|
57 |
|
15 |
|
65 |
|
67 |
|
76 |
|
212 |
|
Interest expense, net |
|
53 |
|
53 |
|
54 |
|
54 |
|
50 |
|
50 |
|
216 |
|
Foreign exchange (gain) loss, net |
|
(4) |
|
(11) |
|
52 |
|
(36) |
|
3 |
|
25 |
|
17 |
|
Gain on sale of business |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(278) |
|
Other non-operating expense, net |
|
3 |
|
4 |
|
4 |
|
3 |
|
— |
|
6 |
|
15 |
|
Operating income |
|
179 |
|
219 |
|
197 |
|
163 |
|
190 |
|
202 |
|
743 |
|
Depreciation |
|
43 |
|
41 |
|
42 |
|
45 |
|
45 |
|
44 |
|
181 |
|
Amortization - service revenue (1) |
|
49 |
|
50 |
|
50 |
|
50 |
|
50 |
|
49 |
|
193 |
|
Amortization - non-purchase accounting |
|
6 |
|
6 |
|
6 |
|
6 |
|
6 |
|
6 |
|
27 |
|
Amortization - purchase accounting |
|
2 |
|
3 |
|
3 |
|
4 |
|
4 |
|
4 |
|
18 |
|
Stock-based compensation |
|
9 |
|
9 |
|
5 |
|
11 |
|
10 |
|
8 |
|
34 |
|
Other |
|
1 |
|
— |
|
12 |
|
— |
|
2 |
|
— |
|
9 |
|
Adjusted EBITDA |
|
290 |
|
327 |
|
316 |
|
279 |
|
305 |
|
314 |
|
1,205 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes amortization of upfront license fees |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities - continuing operations |
|
250 |
|
65 |
|
295 |
|
226 |
|
176 |
|
218 |
|
734 |
|
Capital expenditures |
|
(40) |
|
(35) |
|
(43) |
|
(31) |
|
(36) |
|
(38) |
|
(162) |
|
Free Cash Flow |
|
210 |
|
30 |
|
253 |
|
195 |
|
140 |
|
181 |
|
572 |
|
|
|
For the three months ended |
|
|||||||||||
|
|
|
2024 |
|
|
||||||||||
|
|
|
|
|
|
|
|
||||||||
|
|
|
Pre-Tax |
|
Tax |
|
Net |
|
Pre-Tax |
|
Tax |
|
Net |
|
|
|
Reported EPS from continuing operations |
|
|
|
0.21 |
|
|
|
|
|
0.35 |
|
|
||
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange (gain) loss, net |
|
(0.02) |
|
0.01 |
|
(0.03) |
|
(0.06) |
|
0.02 |
|
(0.08) |
|
|
|
Amortization - purchase accounting |
|
0.01 |
|
— |
|
0.01 |
|
0.01 |
|
— |
|
0.01 |
|
|
|
Other (non-recurring adjustments) |
|
0.01 |
|
— |
|
0.01 |
|
— |
|
— |
|
— |
|
|
|
Net adjustments |
|
|
|
|
|
(0.01) |
|
|
|
|
|
(0.07) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EPS from continuing operations |
|
|
|
0.20 |
|
|
|
|
|
0.28 |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported effective tax rate |
|
|
|
|
|
33.6 % |
|
|
|
|
|
33.1 % |
|
|
|
Adjusted effective tax rate |
|
|
|
|
|
35.6 % |
|
|
|
|
|
38.2 % |
|
|
|
Adjusted EPS weighted average shares outstanding (in millions) |
|
|
|
|
|
203(2) |
|
|
|
|
|
203(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
(1) Calculated based on nature of item, including any realizable deductions, and statutory tax rate in effect for the relevant jurisdiction |
||||||||||||||
|
(2) Includes the dilutive impact of share-based payment awards |
||||||||||||||
|
|
|
For the three months ended |
|
For the year ended |
|
||||||||||||||||||||||||||
|
|
|
2023 |
|
2022 |
|
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
|
|
Pre-Tax |
|
Tax |
|
Net |
|
Pre-Tax |
|
Tax |
|
Net |
|
Pre-Tax |
|
Tax |
|
Net |
|
Pre-Tax |
|
Tax |
|
Net |
|
Pre-Tax |
|
Tax |
|
Net |
|
|
Reported EPS from continuing operations |
|
|
|
0.19 |
|
|
|
|
|
0.23 |
|
|
|
|
|
0.14 |
|
|
|
|
|
0.02 |
|
|
|
|
|
2.07 |
|
||
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange (gain) loss, net |
|
0.26 |
|
(0.04) |
|
0.30 |
|
(0.18) |
|
0.02 |
|
(0.20) |
|
0.01 |
|
— |
|
0.01 |
|
0.12 |
|
(0.02) |
|
0.14 |
|
0.08 |
|
0.08 |
|
0.01 |
|
|
Amortization - purchase accounting |
|
0.02 |
|
— |
|
0.01 |
|
0.02 |
|
— |
|
0.01 |
|
0.02 |
|
— |
|
0.02 |
|
0.02 |
|
— |
|
0.02 |
|
0.09 |
|
0.02 |
|
0.07 |
|
|
Restructuring |
|
0.06 |
|
0.02 |
|
0.04 |
|
— |
|
— |
|
— |
|
0.01 |
|
— |
|
0.01 |
|
— |
|
— |
|
— |
|
0.03 |
|
0.01 |
|
0.02 |
|
|
Other (non-recurring adjustments) |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
0.02 |
|
— |
|
0.02 |
|
0.07 |
|
0.01 |
|
0.07 |
|
|
Net adjustments |
|
|
|
|
|
0.35 |
|
|
|
|
|
(0.18) |
|
|
|
|
|
0.03 |
|
|
|
|
|
0.18 |
|
|
|
|
|
0.17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EPS from continuing operations |
|
|
|
0.54 |
|
|
|
|
|
0.04 |
|
|
|
|
|
0.17 |
|
|
|
|
|
0.20 |
|
|
|
|
|
2.24 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported effective tax rate |
|
|
|
|
|
17.0 % |
|
|
|
|
|
45.7 % |
|
|
|
|
|
49.3 % |
|
|
|
|
|
62.6 % |
|
|
|
|
|
27.5 % |
|
|
Adjusted effective tax rate |
|
|
|
|
|
7.6 % |
|
|
|
|
|
63.6 % |
|
|
|
|
|
48.0 % |
|
|
|
|
|
47.1 % |
|
|
|
|
|
28.3 % |
|
|
Adjusted EPS weighted average shares outstanding (in millions) |
|
|
|
|
|
203(2) |
|
|
|
|
|
203(2) |
|
|
|
|
|
203(2) |
|
|
|
|
|
202(2) |
|
|
|
|
|
203(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Calculated based on nature of item, including any realizable deductions, and statutory tax rate in effect for the relevant jurisdiction |
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|
(2) Includes the dilutive impact of share-based payment awards |
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View original content to download multimedia:https://www.prnewswire.com/news-releases/international-game-technology-plc-reports-third-quarter-2024-results-reflecting-continuing-operations-after-announced-sale-of-gaming--digital-302301877.html
SOURCE
