IGT ha annunciato i risultati finanziari del secondo trimestre terminato il 30 giugno 2024, registrando un reddito operativo record e un EBITDA rettificato, esclusi i costi di separazione e dismissione.
Risultati Finanziari del Q2 2024:
- Ricavi del secondo trimestre: 1,05 miliardi di dollari, in linea con le previsioni
- Reddito operativo: 230 milioni di dollari
- EBITDA rettificato: 420 milioni di dollari
- Flusso di cassa operativo: oltre 460 milioni di dollari nella prima metà dell’anno
- Flusso di cassa libero: oltre 260 milioni di dollari nella prima metà dell’anno
Dichiarazioni del management
“IGT ha conseguito risultati forti nel primo semestre, inclusi ricavi operativi e EBITDA rettificato record, al netto dei costi di separazione e dismissione”, ha dichiarato Vince Sadusky, CEO di IGT.
“Investimenti costanti nella tecnologia, contenuti di gioco e altre soluzioni innovative ci forniscono una solida base su cui costruire mentre perseguiamo i nostri obiettivi di crescita. La recente vendita del nostro business Gaming & Digital per 4,05 miliardi di dollari è un passo importante per sbloccare il valore intrinseco delle attività di IGT”.
“Abbiamo generato oltre 460 milioni di dollari di flusso di cassa operativo nella prima metà dell’anno e il nostro bilancio è più forte che mai”, ha affermato Max Chiara, CFO di IGT. “La nostra ampia liquidità e le gestibili scadenze del debito a breve termine ci offrono una notevole flessibilità in vista degli investimenti imminenti per estendere e garantire il nostro portafoglio di contratti della lotteria a lungo termine per gli anni futuri”.
Punti chiave
- Contratto di gestione delle strutture della durata di sette anni con la Colorado Lottery e estensione del contratto di tre anni con la Mississippi Lottery Corporation.
- Contratto di contenuti iLottery di cinque anni con Atlantic Lottery Corporation e lancio di iLottery in Connecticut.
- Successo continuo nella conquista di contratti per lotterie istantanee, incluso un accordo di cinque anni con ONCE in Spagna e un’estensione di tre anni in Mississippi.
- Lancio di Tiger and Dragon sul cabinet PeakCurve49, classificato come il miglior nuovo gioco premium nel settore; introduzione di Whitney Houston sul nuovo cabinet SkyRise™.
- Lancio recente del pluripremiato gioco Prosperity Link™ in formato digitale negli Stati Uniti.
- Crescita internazionale con la distribuzione di Diamond Mania MLP nel mercato spagnolo AWP, l’acquisto da parte di Holland Casino di 500 cabinet Video Poker PeakBar Top™ e l’espansione del footprint HHR a Malta.
- Pubblicazione del 17° rapporto annuale sulla sostenibilità, evidenziando i successi in ambito Ambientale, Sociale e di Governance.
- Vittoria nella categoria “Diversity and Inclusion” ai Women in Gaming Diversity Awards 2024 e riconoscimento come “Best Place to Work for Disability Inclusion”.
Aggiornamenti Finanziari
- Ricavi consolidati: 1,05 miliardi di dollari, in linea con lo stesso periodo dell’anno precedente.
- Reddito operativo: 230 milioni di dollari, rispetto ai 251 milioni del periodo precedente; esclusi 26 milioni di dollari di costi di separazione e dismissione, il reddito operativo è salito a 256 milioni.
- EBITDA rettificato: 420 milioni di dollari, rispetto ai 443 milioni del periodo precedente; esclusi i costi di separazione e dismissione, l’EBITDA rettificato è stato stabile a 446 milioni.
- Debito netto: 5,1 miliardi di dollari al 30 giugno 2024, invariato rispetto al 31 dicembre 2023.
Aggiornamento su liquidità e dividendi
- Liquidità totale: 1,7 miliardi di dollari al 30 giugno 2024; $0,4 miliardi in contanti non vincolati e 1,3 miliardi in capacità di credito aggiuntiva non utilizzata.
- Dividendo trimestrale: 0,20 dollari per azione ordinaria, con data di registrazione il 13 agosto 2024 e pagamento il 27 agosto 2024.
Vendita del Business Gaming & Digital
Come annunciato il 26 luglio 2024, IGT ha stipulato un accordo definitivo per vendere il proprio business Gaming & Digital a fondi gestiti da affiliati di Apollo per 4,05 miliardi di dollari in proventi lordi in contanti. La transazione dovrebbe essere completata entro la fine del terzo trimestre del 2025.
Previsioni per l’Anno 2024
A causa della prevista vendita del business Gaming & Digital, IGT prevede di classificare e riportare i risultati di Gaming & Digital come operazioni discontinue a partire dal terzo trimestre del 2024. Di conseguenza, l’azienda sta ritirando le precedenti previsioni finanziarie per l’intero anno. IGT prevede di fornire una previsione per le operazioni continuative dell’intero anno 2024 una volta completata la preparazione del rapporto sulle operazioni discontinue.
Constant |
Sequential |
||||||||||
Q2’24 |
Q2’23 |
Currency |
Change as |
||||||||
GLOBAL LOTTERY |
Y/Y Change |
Change(1) |
Q1’24 |
Reported |
|||||||
Revenue |
|||||||||||
Service |
|||||||||||
Operating and facilities management contracts |
620 |
623 |
(1) % |
— % |
653 |
(5) % |
|||||
Upfront license fee amortization |
(47) |
(47) |
1 % |
— % |
(47) |
1 % |
|||||
Operating and facilities management contracts, net |
573 |
576 |
(1) % |
— % |
605 |
(5) % |
|||||
Other |
13 |
13 |
7 % |
11 % |
13 |
— % |
|||||
Total service revenue |
586 |
588 |
— % |
— % |
619 |
(5) % |
|||||
Product sales |
27 |
35 |
(25) % |
(25) % |
42 |
(37) % |
|||||
Total revenue |
613 |
624 |
(2) % |
(2) % |
661 |
(7) % |
|||||
Operating income |
212 |
229 |
(8) % |
(7) % |
258 |
(18) % |
|||||
Adjusted EBITDA(1) |
311 |
332 |
(6) % |
(6) % |
355 |
(12) % |
|||||
Global same-store sales growth (%) |
|||||||||||
Instant ticket & draw games |
(0.5 %) |
2.3 % |
(0.2 %) |
||||||||
Multi-jurisdiction jackpots |
20.2 % |
(5.3 %) |
(1.0 %) |
||||||||
Total |
0.9 % |
1.8 % |
(0.3 %) |
||||||||
North America & Rest of world same-store sales growth (%) |
|||||||||||
Instant ticket & draw games |
(1.4 %) |
0.8 % |
(1.6 %) |
||||||||
Multi-jurisdiction jackpots |
20.2 % |
(5.3 %) |
(1.0 %) |
||||||||
Total |
0.6 % |
0.2 % |
(1.5 %) |
||||||||
Italy same-store sales growth (%) |
|||||||||||
Instant ticket & draw games |
2.3 % |
8.0 % |
4.4 % |
||||||||
(1) Non-GAAP measure; see disclaimer on page 5 and reconciliations to the most directly comparable GAAP measure in Appendix for further details |
|||||||||||
Constant |
Sequential |
||||||||||
Q2’24 |
Q2’23 |
Currency |
Change as |
||||||||
GAMING & DIGITAL |
Y/Y Change |
Change(1) |
Q1’24 |
Reported |
|||||||
Revenue |
|||||||||||
Service |
|||||||||||
Terminal |
133 |
128 |
4 % |
4 % |
131 |
1 % |
|||||
iGaming |
45 |
48 |
(7) % |
(6) % |
48 |
(6) % |
|||||
Systems, software, and other |
73 |
71 |
3 % |
3 % |
75 |
(3) % |
|||||
Total service revenue |
250 |
247 |
2 % |
2 % |
253 |
(1) % |
|||||
Product sales |
|||||||||||
Terminal |
120 |
139 |
(14) % |
(14) % |
110 |
9 % |
|||||
Systems, software, and other |
66 |
45 |
45 % |
46 % |
43 |
54 % |
|||||
Total product sales revenue |
186 |
185 |
1 % |
1 % |
153 |
21 % |
|||||
Total revenue |
436 |
432 |
1 % |
1 % |
406 |
7 % |
|||||
Operating income |
103 |
89 |
16 % |
16 % |
81 |
28 % |
|||||
Adjusted EBITDA(1) |
151 |
133 |
13 % |
14 % |
127 |
19 % |
|||||
Installed base units |
|||||||||||
Casino |
53,588 |
51,304 |
4 % |
53,368 |
|||||||
Casino – L/T lease(2) |
697 |
851 |
(18) % |
701 |
|||||||
Total installed base units |
54,285 |
52,155 |
4 % |
54,069 |
|||||||
Installed base units (by geography) |
|||||||||||
US & Canada |
34,320 |
33,554 |
2 % |
34,146 |
|||||||
Rest of world |
19,965 |
18,601 |
7 % |
19,923 |
|||||||
Total installed base units |
54,285 |
52,155 |
4 % |
54,069 |
|||||||
Yields (by geography)(3), in absolute $ |
|||||||||||
US & Canada |
$42.01 |
$41.89 |
— % |
$41.17 |
|||||||
Rest of world |
$7.45 |
$7.44 |
— % |
$7.13 |
|||||||
Total yields |
$29.14 |
$29.56 |
(1) % |
$28.51 |
|||||||
Global machine units sold |
|||||||||||
New/expansion |
1,060 |
1,061 |
— % |
203 |
|||||||
Replacement |
6,570 |
7,208 |
(9) % |
6,424 |
|||||||
Total machine units sold |
7,630 |
8,269 |
(8) % |
6,627 |
|||||||
US & Canada machine units sold |
|||||||||||
New/expansion |
696 |
1,046 |
(33) % |
46 |
|||||||
Replacement |
4,436 |
5,278 |
(16) % |
5,014 |
|||||||
Total machine units sold |
5,132 |
6,324 |
(19) % |
5,060 |
|||||||
(1) Non-GAAP measures; see disclaimer on page 5 and reconciliations to the most directly comparable GAAP measure in Appendix for further details |
|||||||||||
(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 |
|||||||||||
Constant |
Sequential |
||||||||||
Q2’24 |
Q2’23 |
Currency |
Change as |
||||||||
GAMING & DIGITAL (Continued) |
Y/Y Change |
Change(1) |
Q1’24 |
Reported |
|||||||
Rest of world machine units sold |
|||||||||||
New/expansion |
364 |
15 |
NM |
157 |
|||||||
Replacement |
2,134 |
1,930 |
11 % |
1,410 |
|||||||
Total machine units sold |
2,498 |
1,945 |
28 % |
1,567 |
|||||||
Average Selling Price (ASP), in absolute $ |
|||||||||||
US & Canada |
$16,400 |
$16,700 |
(2) % |
$16,900 |
|||||||
Rest of world |
$13,500 |
$16,000 |
(16) % |
$14,800 |
|||||||
Total ASP |
$15,400 |
$16,500 |
(7) % |
$16,400 |
|||||||
Constant |
Sequential |
||||||||||
Q2’24 |
Q2’23 |
Currency |
Change as |
||||||||
CONSOLIDATED |
Y/Y Change |
Change(1) |
Q1’24 |
Reported |
|||||||
Revenue (by geography) |
|||||||||||
US & Canada |
661 |
650 |
2 % |
2 % |
660 |
— % |
|||||
Italy |
237 |
240 |
(1) % |
(1) % |
258 |
(8) % |
|||||
Rest of world |
151 |
164 |
(8) % |
(8) % |
150 |
1 % |
|||||
Total revenue |
1,049 |
1,055 |
(1) % |
— % |
1,067 |
(2) % |
|||||
(1) Non-GAAP measure; see disclaimer on page 5 and reconciliations to the most directly comparable GAAP measure in Appendix for further details |
|||||||||||
International Game Technology PLC |
|||||||
Consolidated Statements of Operations |
|||||||
($ and shares in millions, except per share amounts) |
|||||||
Unaudited |
|||||||
For the three months ended |
For the six months ended |
||||||
June 30, |
June 30, |
||||||
2024 |
2023 |
2024 |
2023 |
||||
Service revenue |
837 |
835 |
1,709 |
1,681 |
|||
Product sales |
213 |
220 |
408 |
435 |
|||
Total revenue |
1,049 |
1,055 |
2,117 |
2,116 |
|||
Cost of services |
411 |
402 |
823 |
800 |
|||
Cost of product sales |
130 |
131 |
248 |
258 |
|||
Selling, general and administrative |
199 |
208 |
407 |
425 |
|||
Research and development |
53 |
60 |
108 |
122 |
|||
Separation and divestiture costs |
26 |
3 |
44 |
3 |
|||
Total operating expenses |
819 |
805 |
1,631 |
1,610 |
|||
Operating income |
230 |
251 |
486 |
506 |
|||
Interest expense, net |
73 |
71 |
145 |
141 |
|||
Foreign exchange loss (gain), net |
— |
5 |
(15) |
32 |
|||
Other non-operating expense (income), net |
1 |
(2) |
3 |
2 |
|||
Total non-operating expenses |
74 |
75 |
132 |
176 |
|||
Income before provision for income taxes |
156 |
176 |
353 |
330 |
|||
Provision for income taxes |
71 |
86 |
141 |
173 |
|||
Net income |
85 |
90 |
213 |
157 |
|||
Less: Net income attributable to non-controlling interests |
43 |
44 |
89 |
88 |
|||
Net income attributable to IGT PLC |
42 |
46 |
123 |
69 |
|||
Net income attributable to IGT PLC per common share – basic |
0.21 |
0.23 |
0.61 |
0.35 |
|||
Net income attributable to IGT PLC per common share – diluted |
0.20 |
0.23 |
0.61 |
0.34 |
|||
Weighted-average shares – basic |
201 |
200 |
201 |
200 |
|||
Weighted-average shares – diluted |
203 |
203 |
203 |
202 |
International Game Technology PLC |
||||
Consolidated Balance Sheets |
||||
($ in millions) |
||||
Unaudited |
||||
June 30, |
December 31, |
|||
2024 |
2023 |
|||
Assets |
||||
Current assets: |
||||
Cash and cash equivalents |
438 |
572 |
||
Restricted cash and cash equivalents |
121 |
167 |
||
Trade and other receivables, net |
651 |
685 |
||
Inventories, net |
310 |
317 |
||
Other current assets |
443 |
382 |
||
Total current assets |
1,963 |
2,123 |
||
Systems, equipment and other assets related to contracts, net |
895 |
928 |
||
Property, plant and equipment, net |
120 |
119 |
||
Operating lease right-of-use assets |
216 |
230 |
||
Goodwill |
4,485 |
4,507 |
||
Intangible assets, net |
1,492 |
1,555 |
||
Other non-current assets |
871 |
1,004 |
||
Total non-current assets |
8,080 |
8,342 |
||
Total assets |
10,042 |
10,465 |
||
Liabilities and shareholders’ equity |
||||
Current liabilities: |
||||
Accounts payable |
695 |
797 |
||
Current portion of long-term debt |
713 |
— |
||
Short-term borrowings |
— |
16 |
||
Other current liabilities |
923 |
879 |
||
Total current liabilities |
2,331 |
1,691 |
||
Long-term debt, less current portion |
4,833 |
5,655 |
||
Deferred income taxes |
349 |
344 |
||
Operating lease liabilities |
199 |
214 |
||
Other non-current liabilities |
453 |
609 |
||
Total non-current liabilities |
5,835 |
6,821 |
||
Total liabilities |
8,166 |
8,513 |
||
Commitments and contingencies |
||||
IGT PLC’s shareholders’ equity |
1,503 |
1,443 |
||
Non-controlling interests |
374 |
510 |
||
Shareholders’ equity |
1,877 |
1,952 |
||
Total liabilities and shareholders’ equity |
10,042 |
10,465 |
International Game Technology PLC |
|||||||
Consolidated Statements of Cash Flows |
|||||||
($ in millions) |
|||||||
Unaudited |
|||||||
For the three months ended |
For the six months ended |
||||||
June 30, |
June 30, |
||||||
2024 |
2023 |
2024 |
2023 |
||||
Cash flows from operating activities |
|||||||
Net income |
85 |
90 |
213 |
157 |
|||
Adjustments to reconcile net income to net cash provided by operating activities: |
|||||||
Depreciation |
73 |
74 |
144 |
151 |
|||
Amortization |
56 |
54 |
111 |
110 |
|||
Amortization of upfront license fees |
50 |
50 |
100 |
100 |
|||
Deferred income taxes |
13 |
28 |
12 |
55 |
|||
Stock-based compensation |
11 |
12 |
22 |
23 |
|||
Foreign exchange loss (gain), net |
— |
5 |
(15) |
32 |
|||
Other non-cash items, net |
— |
3 |
3 |
9 |
|||
Changes in operating assets and liabilities: |
|||||||
Trade and other receivables |
67 |
39 |
24 |
6 |
|||
Inventories |
14 |
(25) |
7 |
(63) |
|||
Accounts payable |
(26) |
(118) |
(71) |
(7) |
|||
DDI / Benson Matter provision |
— |
(220) |
— |
(220) |
|||
Accrued interest payable |
13 |
15 |
(13) |
(4) |
|||
Accrued income taxes |
(1) |
23 |
3 |
64 |
|||
Other assets and liabilities |
(11) |
3 |
(75) |
(68) |
|||
Net cash provided by operating activities |
343 |
34 |
463 |
345 |
|||
Cash flows from investing activities |
|||||||
Capital expenditures |
(101) |
(99) |
(185) |
(193) |
|||
Other |
4 |
— |
5 |
3 |
|||
Net cash used in investing activities |
(97) |
(99) |
(180) |
(190) |
|||
Cash flows from financing activities |
|||||||
Payments on license obligations |
(7) |
(7) |
(14) |
(8) |
|||
Net (payments of) proceeds from short-term borrowings |
(6) |
(53) |
(16) |
— |
|||
Net payments on financial liabilities |
(1) |
(14) |
(64) |
(6) |
|||
Principal payments on long-term debt |
— |
— |
— |
(462) |
|||
Net proceeds from (repayments of) Revolving Credit Facilities |
35 |
81 |
(37) |
473 |
|||
Dividends paid |
(80) |
(40) |
(80) |
(80) |
|||
Dividends paid – non-controlling interests |
(61) |
(61) |
(162) |
(152) |
|||
Return of capital – non-controlling interests |
(35) |
(36) |
(45) |
(46) |
|||
Other |
(15) |
(12) |
(14) |
(23) |
|||
Net cash used in financing activities |
(170) |
(141) |
(433) |
(303) |
|||
Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents |
76 |
(206) |
(149) |
(149) |
|||
Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents |
(14) |
(1) |
(31) |
7 |
|||
Cash and cash equivalents and restricted cash and cash equivalents at the beginning of the period |
496 |
805 |
739 |
740 |
|||
Cash and cash equivalents and restricted cash and cash equivalents at the end of the period |
558 |
599 |
558 |
599 |
|||
Supplemental Cash Flow Information |
|||||||
Interest paid |
62 |
58 |
162 |
148 |
|||
Income taxes paid |
59 |
35 |
126 |
54 |
International Game Technology PLC |
|||
Net Debt |
|||
($ in millions) |
|||
Unaudited |
|||
June 30, |
December 31, |
||
2024 |
2023 |
||
6.500% Senior Secured U.S. Dollar Notes due February 2025 |
— |
499 |
|
4.125% Senior Secured U.S. Dollar Notes due April 2026 |
747 |
747 |
|
3.500% Senior Secured Euro Notes due June 2026 |
801 |
826 |
|
6.250% Senior Secured U.S. Dollar Notes due January 2027 |
747 |
747 |
|
2.375% Senior Secured Euro Notes due April 2028 |
533 |
550 |
|
5.250% Senior Secured U.S. Dollar Notes due January 2029 |
746 |
745 |
|
Senior Secured Notes |
3,574 |
4,113 |
|
Euro Term Loan Facilities due January 2027 |
636 |
876 |
|
Revolving Credit Facility A due July 2027 |
233 |
207 |
|
Revolving Credit Facility B due July 2027 |
391 |
458 |
|
Long-term debt, less current portion |
4,833 |
5,655 |
|
6.500% Senior Secured U.S. Dollar Notes due February 2025 |
499 |
— |
|
Euro Term Loan Facilities due January 2027 |
214 |
— |
|
Current portion of long-term debt |
713 |
— |
|
Short-term borrowings |
— |
16 |
|
Total debt |
5,547 |
5,671 |
|
Less: Cash and cash equivalents |
438 |
572 |
|
Net debt |
5,109 |
5,099 |
|
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 June 30, 2024 |
||||||||||
Business |
||||||||||
Global |
Gaming & |
Segments |
Corporate |
Total |
||||||
Lottery |
Digital |
Total |
and Other |
IGT PLC |
||||||
Net income |
85 |
|||||||||
Provision for income taxes |
71 |
|||||||||
Interest expense, net |
73 |
|||||||||
Other non-operating expense, net |
1 |
|||||||||
Operating income (loss) |
212 |
103 |
315 |
(86) |
230 |
|||||
Depreciation |
43 |
31 |
74 |
— |
73 |
|||||
Amortization – service revenue (1) |
49 |
— |
50 |
— |
50 |
|||||
Amortization – non-purchase accounting |
5 |
16 |
20 |
1 |
21 |
|||||
Amortization – purchase accounting |
— |
— |
— |
35 |
35 |
|||||
Stock-based compensation |
2 |
1 |
3 |
7 |
11 |
|||||
Adjusted EBITDA |
311 |
151 |
463 |
(43) |
420 |
|||||
Cash flows from operating activities |
343 |
|||||||||
Capital expenditures |
(101) |
|||||||||
Payments on license obligations |
(7) |
|||||||||
Free Cash Flow |
235 |
|||||||||
Pre-Tax |
Tax Impact (2)(3) |
Net |
||||||||
Reported EPS attributable to IGT PLC – diluted |
0.20 |
|||||||||
Adjustments: |
||||||||||
Foreign exchange loss, net |
(0.01) |
0.01 |
(0.02) |
|||||||
Currency conversion impacts of hyper-inflationary economies |
0.01 |
— |
0.01 |
|||||||
Amortization – purchase accounting |
0.17 |
0.04 |
0.13 |
|||||||
Discrete tax items |
— |
(0.03) |
0.03 |
|||||||
Net adjustments |
0.16 |
|||||||||
Adjusted EPS attributable to IGT PLC – diluted (4) |
0.36 |
|||||||||
(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 45.7%. Adjusted for the above items, the effective tax rate was 38.8% |
||||||||||
(4) Adjusted EPS was calculated using weighted average shares outstanding of 203 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 June 30, 2023 |
||||||||||
Business |
||||||||||
Global |
Gaming & |
Segments |
Corporate |
Total |
||||||
Lottery |
Digital |
Total |
and Other |
IGT PLC |
||||||
Net income |
90 |
|||||||||
Provision for income taxes |
86 |
|||||||||
Interest expense, net |
71 |
|||||||||
Foreign exchange loss, net |
5 |
|||||||||
Other non-operating income, net |
(2) |
|||||||||
Operating income (loss) |
229 |
89 |
319 |
(68) |
251 |
|||||
Depreciation |
44 |
31 |
75 |
(1) |
74 |
|||||
Amortization – service revenue (1) |
50 |
— |
50 |
— |
50 |
|||||
Amortization – non-purchase accounting |
5 |
11 |
16 |
1 |
17 |
|||||
Amortization – purchase accounting |
— |
— |
— |
38 |
38 |
|||||
Stock-based compensation |
2 |
2 |
4 |
8 |
12 |
|||||
Adjusted EBITDA |
332 |
133 |
465 |
(22) |
443 |
|||||
Cash flows from operating activities |
34 |
|||||||||
Capital expenditures |
(99) |
|||||||||
Payments on license obligations |
(7) |
|||||||||
Free Cash Flow |
(72) |
|||||||||
Payments on DDI / Benson Matter, net of cash tax benefit ($12 million) |
208 |
|||||||||
Adjusted Free Cash Flow |
136 |
|||||||||
Pre-Tax |
Tax Impact (2) (3) |
Net |
||||||||
Reported EPS attributable to IGT PLC – diluted |
0.23 |
|||||||||
Adjustments: |
||||||||||
Foreign exchange loss, net |
— |
— |
— |
|||||||
Currency conversion impacts of hyper-inflationary economies |
0.02 |
— |
0.02 |
|||||||
Amortization – purchase accounting |
0.19 |
0.05 |
0.14 |
|||||||
Discrete tax items |
— |
(0.05) |
0.05 |
|||||||
Other (non-recurring adjustments) |
0.01 |
— |
0.01 |
|||||||
Net adjustments |
0.22 |
|||||||||
Adjusted EPS attributable to IGT PLC – diluted (4) |
0.45 |
|||||||||
(1) Includes amortization of upfront license fees |
||||||||||
(2) Calculated based on nature of item, including any realizable deductions, and statutory tax rate in effect for the relevant jurisdiction |
||||||||||
(3) The reported effective tax rate was 48.9%. Adjusted for the above items, the effective tax rate was 38.8% |
||||||||||
(4) Adjusted EPS was calculated using weighted average shares outstanding of 203 million, which includes the dilutive impact of share-based payment awards |
International Game Technology PLC |
||||||||||
Reconciliation of Non-GAAP Financial Measures |
||||||||||
($ in millions, except per share amounts) |
||||||||||
Unaudited |
||||||||||
For the six months ended June 30, 2024 |
||||||||||
Business |
||||||||||
Global |
Gaming & |
Segments |
Corporate |
Total |
||||||
Lottery |
Digital |
Total |
and Other |
IGT PLC |
||||||
Net income |
213 |
|||||||||
Provision for income taxes |
141 |
|||||||||
Interest expense, net |
145 |
|||||||||
Foreign exchange gain, net |
(15) |
|||||||||
Other non-operating expense, net |
3 |
|||||||||
Operating income (loss) |
470 |
184 |
654 |
(168) |
486 |
|||||
Depreciation |
83 |
61 |
145 |
(1) |
144 |
|||||
Amortization – service revenue (1) |
99 |
1 |
100 |
— |
100 |
|||||
Amortization – non-purchase accounting |
10 |
30 |
39 |
2 |
41 |
|||||
Amortization – purchase accounting |
— |
— |
— |
70 |
70 |
|||||
Stock-based compensation |
5 |
3 |
7 |
15 |
22 |
|||||
Adjusted EBITDA |
667 |
278 |
945 |
(82) |
863 |
|||||
Cash flows from operating activities |
463 |
|||||||||
Capital expenditures |
(185) |
|||||||||
Payments on license obligations |
(14) |
|||||||||
Free Cash Flow |
264 |
|||||||||
Pre-Tax |
Tax Impact (2) (3) |
Net |
||||||||
Reported EPS attributable to IGT PLC – diluted |
0.61 |
|||||||||
Adjustments: |
||||||||||
Foreign exchange gain, net |
(0.10) |
0.03 |
(0.13) |
|||||||
Currency conversion impacts of hyper-inflationary |
0.02 |
— |
0.02 |
|||||||
Amortization – purchase accounting |
0.34 |
0.08 |
0.26 |
|||||||
Discrete tax items |
— |
(0.06) |
0.06 |
|||||||
Net adjustments |
0.22 |
|||||||||
Adjusted EPS attributable to IGT PLC – diluted (4) |
0.82 |
|||||||||
(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 39.8%. Adjusted for the above items, the effective tax rate was 37.1% |
||||||||||
(4) Adjusted EPS was calculated using weighted average shares outstanding of 203 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 six months ended June 30, 2023 |
||||||||||
Business |
||||||||||
Global |
Gaming & |
Segments |
Corporate |
Total |
||||||
Lottery |
Digital |
Total |
and Other |
IGT PLC |
||||||
Net income |
157 |
|||||||||
Provision for income taxes |
173 |
|||||||||
Interest expense, net |
141 |
|||||||||
Foreign exchange loss, net |
32 |
|||||||||
Other non-operating expense, net |
2 |
|||||||||
Operating income (loss) |
469 |
173 |
642 |
(136) |
506 |
|||||
Depreciation |
87 |
64 |
150 |
1 |
151 |
|||||
Amortization – service revenue (1) |
99 |
— |
100 |
— |
100 |
|||||
Amortization – non-purchase accounting |
10 |
21 |
31 |
2 |
32 |
|||||
Amortization – purchase accounting |
— |
— |
— |
77 |
77 |
|||||
Stock-based compensation |
4 |
4 |
8 |
14 |
23 |
|||||
Adjusted EBITDA |
671 |
262 |
933 |
(41) |
891 |
|||||
Cash flows from operating activities |
345 |
|||||||||
Capital expenditures |
(193) |
|||||||||
Payments on license obligations |
(8) |
|||||||||
Free Cash Flow |
143 |
|||||||||
Payments on DDI / Benson Matter, net of cash tax benefit ($12 million) |
208 |
|||||||||
Adjusted Free Cash Flow |
351 |
|||||||||
Pre-Tax |
Tax Impact (2) (3) |
Net |
||||||||
Reported EPS attributable to IGT PLC – diluted |
0.34 |
|||||||||
Adjustments: |
||||||||||
Foreign exchange loss, net |
0.12 |
(0.02) |
0.14 |
|||||||
Currency conversion impacts of hyper-inflationary |
0.04 |
— |
0.04 |
|||||||
Amortization – purchase accounting |
0.38 |
0.09 |
0.29 |
|||||||
Loss on extinguishment and modifications of debt, net |
0.02 |
— |
0.02 |
|||||||
Discrete tax items |
— |
(0.10) |
0.10 |
|||||||
Other (non-recurring adjustments) |
0.01 |
— |
0.01 |
|||||||
Net adjustments |
0.60 |
|||||||||
Adjusted EPS attributable to IGT PLC – diluted (4) |
0.94 |
|||||||||
(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 52.5%. Adjusted for the above items, the effective tax rate was 37.5% |
||||||||||
(4) Adjusted EPS was calculated using weighted average shares outstanding of 202 million, which includes the dilutive impact of share-based payment awards |
sb/AGIMEG