News Release
IGT Reports First Quarter Fiscal Year 2015 Results
Jan 27, 2015
"Our continued focus on profitability has resulted in strong gross margins this quarter, including improvements in gaming operations gross margins," said
Consolidated Results
|
First Quarters Ended December 31, |
2014 |
2013 |
% Change |
|||||||||
|
(In millions, except per share amounts) |
||||||||||||
|
GAAP Measures |
||||||||||||
|
Revenue |
$ |
450.6 |
$ |
541.2 |
-17 |
% |
||||||
|
Operating income |
63.5 |
103.7 |
-39 |
% |
||||||||
|
Net income |
35.0 |
79.2 |
-56 |
% |
||||||||
|
Earnings per share |
$ |
0.14 |
$ |
0.31 |
-55 |
% |
||||||
|
Net operating cash flows |
$ |
102.9 |
$ |
76.1 |
35 |
% |
||||||
|
Non-GAAP Measures (1) |
||||||||||||
|
Adjusted operating income |
$ |
85.4 |
$ |
123.8 |
-31 |
% |
||||||
|
Adjusted net income |
47.7 |
62.9 |
-24 |
% |
||||||||
|
Adjusted earnings per share |
$ |
0.19 |
$ |
0.25 |
-24 |
% |
||||||
|
Free cash flow (before dividends) |
$ |
78.3 |
$ |
51.5 |
52 |
% |
||||||
|
(1) |
Adjusted operating income, adjusted net income, adjusted earnings per share and free cash flow are non-GAAP financial measures. |
|
Reconciliations between GAAP and non-GAAP measures are provided at the end of this release. |
- Total revenue decreased 17% to
$451 million , primarily driven by declines in product sales, partially offset by an increase in social gaming revenue. - GAAP net income and EPS in the prior-year quarter were also favorably impacted by a
$30 million audit settlement with theIRS related to prior tax years. - Operating cash flow increased by
$27 million as improvements in certain working capital metrics offset the decline in net income. - First quarter results included an extra week due to the Company's 52/53-week fiscal year, where fiscal 2015 will contain 53 weeks versus the normal 52 weeks in fiscal 2014. Therefore the current year quarter was 14 weeks in length from
September 28, 2014 toJanuary 3, 2015 , as compared to 13 weeks in the prior year quarter. - The extra week of operations during the quarter contributed approximately
$22 million in revenue and$2 million in operating income.
Gaming Operations
|
First Quarters Ended December 31, |
2014 |
2013 |
Change |
|||||||||
|
(In millions, unless otherwise noted) |
||||||||||||
|
Revenue |
$ |
211.1 |
$ |
223.0 |
-5 |
% |
||||||
|
Gross profit |
131.3 |
136.2 |
-4 |
% |
||||||||
|
Gross margin |
62 |
% |
61 |
% |
1 |
pp |
||||||
|
Installed base ('000) |
45.4 |
54.3 |
-16 |
% |
||||||||
|
Yield (average revenue per unit per day - $0.00) |
$ |
46.36 |
$ |
44.99 |
3 |
% |
||||||
- First quarter revenue decreased 5% to
$211 million primarily due to installed base declines, partially offset by improved yield. - Gross margin increased to 62% compared to the prior-year quarter, primarily due to improved yield.
- Installed base decreased 16% driven largely by declines in International, primarily due to lease operation unit conversions in the prior year, and declines in North America MegaJackpots® ("MJP"), most significantly in the standalone category.
- Average revenue per unit per day in the first quarter was
$46.36 , up 3% over the prior year quarter, largely driven by higher North America MJP WAP yields.
Product Sales
|
First Quarters Ended December 31, |
2014 |
2013 |
Change |
|||||||||
|
(In millions, unless otherwise noted) |
||||||||||||
|
Revenue |
$ |
148.0 |
$ |
243.6 |
-39 |
% |
||||||
|
Gross profit |
71.0 |
126.9 |
-44 |
% |
||||||||
|
Gross margin |
48 |
% |
52 |
% |
-4 |
pp |
||||||
|
Machine units recognized ('000) |
5.8 |
12.8 |
-55 |
% |
||||||||
|
Machine average sales price ('000) |
$ |
13.9 |
$ |
13.2 |
5 |
% |
||||||
- Revenue decreased 39% to
$148 million in the first quarter, primarily due to lower machine unit volume, as the prior year quarter benefited from 2,800 video poker units under a large contract and 825 additional Illinois VLT units. - Gross margin decreased to 48% from 52% primarily due to lower manufacturing productivity associated with reduced volumes.
- Average machine sales prices increased 5% to
$13,900 in the first quarter primarily due to a more favorable product mix.
Interactive
|
First Quarters Ended December 31, |
2014 |
2013 |
Change |
|||||||||
|
(In millions, unless otherwise noted) |
||||||||||||
|
Revenue |
$ |
91.5 |
$ |
74.6 |
23 |
% |
||||||
|
Social gaming |
79.4 |
64.8 |
23 |
% |
||||||||
|
IGTi |
12.1 |
9.8 |
23 |
% |
||||||||
|
Gross Margin |
61 |
% |
63 |
% |
-2 |
pp |
||||||
|
DoubleDown average user statistics (1) |
||||||||||||
|
DAU (Daily active users) ('000) |
1,910 |
1,716 |
11 |
% |
||||||||
|
MAU (Monthly active users) ('000) |
5,212 |
6,198 |
-16 |
% |
||||||||
|
Bookings per DAU ($0.00) |
$ |
0.43 |
$ |
0.42 |
2 |
% |
||||||
|
(1) |
as a single application with multiple games, active users equal unique users |
- Social gaming revenue in the first quarter increased 23% to
$79 million compared to the prior year quarter, driven by increases in both average DAU and bookings per DAU. Mobile revenue comprised 39% of total bookings in the first quarter and increased 68% compared to the prior year period. - Average DAU were 1.9 million, an increase of 11% over the prior year quarter due to improved content and enhanced player retention and engagement strategies.
- Average MAU were 5.2 million, a decrease of 16% compared to the prior year quarter, primarily due to increased marketing efforts to procure higher-quality players.
- Average bookings per DAU in the first quarter were
$0.43 , an increase of 2% over the same quarter last year.
Operating Expenses
|
First Quarters Ended December 31, |
2014 |
2013 |
% Change |
|||||||||
|
(In millions) |
||||||||||||
|
Selling, general & administrative |
$ |
108.5 |
$ |
117.8 |
-8 |
% |
||||||
|
Research & development |
57.3 |
60.3 |
-5 |
% |
||||||||
|
Depreciation & amortization |
13.7 |
16.7 |
-18 |
% |
||||||||
|
Contingent acquisition-related costs |
2.5 |
11.3 |
-78 |
% |
||||||||
|
Impairment, restructuring, and merger-related |
12.9 |
- |
* |
|||||||||
|
Total operating expenses |
$ |
194.9 |
$ |
206.1 |
-5 |
% |
||||||
|
Adjusted Operating Expenses (1) |
$ |
176.4 |
$ |
189.3 |
-7 |
% |
||||||
|
(1) |
Adjusted operating expenses is a non-GAAP financial measure. Reconciliations between GAAP and non-GAAP measures are provided at the end of this release. |
- Adjusted operating expenses decreased 7% to
$176 million , primarily due to cost savings initiatives resulting from theMarch 2014 business realignment. - GAAP operating expenses decreased 5% to
$195 million , primarily due to the cost savings initiatives mentioned above, as well as lower contingent acquisition-related costs, partially offset by merger-related costs of$13.9 million . - The extra week of operations during the quarter contributed approximately
$12 million in operating expenses.
Balance Sheet and Capital Deployment
|
(In millions) |
December 31, 2014 |
September 30, 2014 |
% Change |
|||||||||
|
Cash and equivalents (including restricted amounts) |
$ |
267.6 |
$ |
314.4 |
-15 |
% |
||||||
|
Working capital |
657.5 |
676.3 |
-3 |
% |
||||||||
|
Contractual debt obligations |
1,750.0 |
1,825.0 |
-4 |
% |
||||||||
- Operating cash flow was
$103 million in the first quarter on net income of$35 million . - Contractual debt obligations decreased
$75 million due to partial repayment of the company's revolving credit facility. - Outstanding borrowings under the company's revolving credit facility were
$450 million as ofDecember 31, 2014 . - The company returned
$55 million to its shareholders through two dividend payments that occurred during the first quarter.
Other
References to per share amounts in this release are based on diluted shares of common stock, unless otherwise specified.
Outlook
IGT will not provide financial guidance for fiscal year 2015.
Earnings Conference Call
There will be no earnings conference call.
Q1 FY 2015 PDF of this press release
Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. These statements include our expected future financial and operational performance and our strategic and operational plans. These statements involve a number of risks and uncertainties that could cause actual results to differ materially from the results predicted, and reported results should not be considered an indication of future performance. Among the factors that could cause actual results and outcomes to differ materially from those contained in such forward-looking statements are the following: general economic conditions and changes in economic conditions affecting the gaming industry; new or changing laws or regulations or new interpretations of existing laws or regulations affecting our business; difficulties or delays in obtaining or maintaining necessary licenses or approvals; slow growth in the number of new gaming jurisdictions or new casinos or the rate of replacement of existing gaming machines; changes in operator or player preferences for our products; our ability to compete in the gaming industry with new or existing competitors; our ability to develop and introduce new products and their acceptance by our customers; risks related to our international operations; our ability to protect our intellectual property; adverse results of litigation, including intellectual property infringement claims; our ability to leverage cost reduction initiatives; risks related to business combinations, investments in intellectual property and the integration of acquisitions; and future developments or changes affecting online gaming or social casino-style gaming, which is a new and evolving industry.
A further list and description of these and other risks, uncertainties and other matters can be found in our annual report and other reports filed with the
IGT Resources:
- Like us on
Facebook - Play DoubleDown Casino Games
Like DoubleDown Casino onFacebook - Follow us on Twitter
- View IGT's YouTube Channel
About IGT:
International Game Technology (NYSE: IGT) is a global leader in casino gaming entertainment and continues to transform the industry by translating casino player experiences to social, mobile and interactive environments for markets around the world. IGT's acquisition of DoubleDown Interactive provides engaging social casino style entertainment to approximately 5 million players monthly. More information about IGT is available at IGT.com or connect with IGT at @IGTNews or facebook.com/IGT. Anyone can play at the DoubleDown Casino by visiting http://apps.facebook.com/doubledowncasino or doubledowncasino.com .
IGT Contacts:
Vice President, Investor Relations and Treasury
Director, Investor Relations
+1 866-296-4232
InvestorRelations@IGT.com
|
CONSOLIDATED STATEMENTS OF INCOME (Unaudited and Condensed) |
||||||||
|
First Quarters Ended December 31, |
2014 |
2013 |
||||||
|
(In millions, except per share amounts) |
||||||||
|
REVENUES |
||||||||
|
Gaming operations |
$ |
211.1 |
$ |
223.0 |
||||
|
Product sales |
148.0 |
243.6 |
||||||
|
Interactive |
91.5 |
74.6 |
||||||
|
Total |
450.6 |
541.2 |
||||||
|
COSTS AND OPERATING EXPENSES |
||||||||
|
Cost of gaming operations |
79.8 |
86.8 |
||||||
|
Cost of product sales |
77.0 |
116.7 |
||||||
|
Cost of interactive |
35.4 |
27.9 |
||||||
|
Selling, general and administrative |
108.5 |
117.8 |
||||||
|
Research and development |
57.3 |
60.3 |
||||||
|
Depreciation and amortization |
13.7 |
16.7 |
||||||
|
Contingent acquisition-related |
2.5 |
11.3 |
||||||
|
Impairment, restructuring, and merger-related |
12.9 |
- |
||||||
|
Total |
387.1 |
437.5 |
||||||
|
OPERATING INCOME |
63.5 |
103.7 |
||||||
|
OTHER INCOME (EXPENSE) |
||||||||
|
Interest income |
9.3 |
10.1 |
||||||
|
Interest expense |
(21.3) |
(36.4) |
||||||
|
Other |
0.2 |
(1.9) |
||||||
|
Total |
(11.8) |
(28.2) |
||||||
|
INCOME BEFORE TAX |
51.7 |
75.5 |
||||||
|
Income tax provision (benefit) |
16.7 |
(3.7) |
||||||
|
NET INCOME |
$ |
35.0 |
$ |
79.2 |
||||
|
EARNINGS PER SHARE |
||||||||
|
Basic |
$ |
0.14 |
$ |
0.31 |
||||
|
Diluted |
$ |
0.14 |
$ |
0.31 |
||||
|
WEIGHTED AVERAGE SHARES OUTSTANDING |
||||||||
|
Basic |
247.6 |
252.6 |
||||||
|
Diluted |
249.9 |
255.3 |
||||||
|
CONSOLIDATED BALANCE SHEET (Unaudited and Condensed) |
||||||||
|
December 31, |
September 30, |
|||||||
|
2014 |
2014 |
|||||||
|
(In millions) |
||||||||
|
ASSETS |
||||||||
|
Cash and equivalents |
$ |
201.6 |
$ |
255.1 |
||||
|
Restricted cash and investment securities |
66.0 |
59.3 |
||||||
|
Jackpot annuity investments |
51.9 |
53.0 |
||||||
|
Receivables, net |
463.9 |
530.2 |
||||||
|
Inventories |
72.0 |
71.4 |
||||||
|
Other assets and deferred costs |
237.3 |
252.1 |
||||||
|
Total current assets |
1,092.7 |
1,221.1 |
||||||
|
Property, plant and equipment, net |
405.2 |
412.7 |
||||||
|
Jackpot annuity investments |
235.5 |
236.7 |
||||||
|
Contracts and notes receivable, net |
97.1 |
115.5 |
||||||
|
Goodwill and other intangible assets, net |
1,524.7 |
1,542.5 |
||||||
|
Other assets and deferred costs |
453.4 |
461.0 |
||||||
|
TOTAL ASSETS |
$ |
3,808.6 |
$ |
3,989.5 |
||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||||
|
Accounts payable |
$ |
66.3 |
$ |
77.7 |
||||
|
Jackpot liabilities, current portion |
117.5 |
117.5 |
||||||
|
Dividends payable |
- |
27.2 |
||||||
|
Other accrued liabilities |
251.4 |
322.4 |
||||||
|
Total current liabilities |
435.2 |
544.8 |
||||||
|
Long-term debt |
1,810.2 |
1,878.6 |
||||||
|
Jackpot liabilities |
259.5 |
261.6 |
||||||
|
Other liabilities |
110.4 |
106.9 |
||||||
|
TOTAL LIABILITIES |
2,615.3 |
2,791.9 |
||||||
|
TOTAL EQUITY |
1,193.3 |
1,197.6 |
||||||
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
3,808.6 |
$ |
3,989.5 |
||||
|
CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited and Condensed) |
||||||||
|
Three Months Ended December 31, |
2014 |
2013 |
||||||
|
(In millions) |
||||||||
|
OPERATING |
||||||||
|
Net income |
$ |
35.0 |
$ |
79.2 |
||||
|
Adjustments: |
||||||||
|
Depreciation and amortization |
38.3 |
51.3 |
||||||
|
Acquisition-related contingent earn-out costs |
2.4 |
4.5 |
||||||
|
Other non-cash items |
14.0 |
28.6 |
||||||
|
Changes in operating assets and liabilities, excluding acquisitions: |
||||||||
|
Receivables |
73.4 |
(13.2) |
||||||
|
Inventories |
(1.2) |
15.6 |
||||||
|
Accounts payable and accrued liabilities |
(80.1) |
(51.0) |
||||||
|
Jackpot liabilities |
(5.7) |
(16.6) |
||||||
|
Income taxes, net of employee stock plans |
5.8 |
(17.8) |
||||||
|
Other assets and deferred costs |
21.0 |
(4.5) |
||||||
|
Net operating cash flows |
102.9 |
76.1 |
||||||
|
INVESTING |
||||||||
|
Capital expenditures |
(24.6) |
(24.6) |
||||||
|
Proceeds from assets sold |
6.0 |
3.3 |
||||||
|
Investment securities, net |
- |
(70.6) |
||||||
|
Jackpot annuity investments, net |
6.1 |
9.0 |
||||||
|
Changes in restricted cash |
(6.8) |
(0.8) |
||||||
|
Loans receivable, net |
- |
6.4 |
||||||
|
Net investing cash flows |
(19.3) |
(77.3) |
||||||
|
FINANCING |
||||||||
|
Debt-related proceeds (payments), net |
(75.0) |
(0.5) |
||||||
|
Employee stock plan proceeds |
3.8 |
8.3 |
||||||
|
Share repurchases, including net shares |
(8.1) |
(211.0) |
||||||
|
Dividends paid |
(54.6) |
(25.9) |
||||||
|
Net financing cash flows |
(133.9) |
(229.1) |
||||||
|
FOREIGN EXCHANGE RATES EFFECT ON CASH AND EQUIVALENTS |
(3.2) |
(2.4) |
||||||
|
NET CHANGE IN CASH AND EQUIVALENTS |
(53.5) |
(232.7) |
||||||
|
BEGINNING CASH AND EQUIVALENTS |
255.1 |
713.3 |
||||||
|
ENDING CASH AND EQUIVALENTS |
$ |
201.6 |
$ |
480.6 |
||||
|
SUPPLEMENTAL DATA (Unaudited) |
||||||||
|
REVENUE METRICS |
||||||||
|
First Quarters Ended December 31, |
2014 |
2013 |
||||||
|
(in millions, unless otherwise noted) |
||||||||
|
GAMING OPERATIONS |
||||||||
|
Revenues |
$ |
211.1 |
$ |
223.0 |
||||
|
North America |
188.0 |
191.6 |
||||||
|
International |
23.1 |
31.4 |
||||||
|
Gross margin |
62 |
% |
61 |
% |
||||
|
North America |
62 |
% |
59 |
% |
||||
|
International |
67 |
% |
72 |
% |
||||
|
Installed base (units '000) |
45.4 |
54.3 |
||||||
|
North America |
36.7 |
41.3 |
||||||
|
International |
8.7 |
13.0 |
||||||
|
Yield (average revenue per unit per day - $0.00) |
$ |
46.36 |
$ |
44.99 |
||||
|
PRODUCT SALES |
||||||||
|
Revenues |
$ |
148.0 |
$ |
243.6 |
||||
|
North America |
94.0 |
170.0 |
||||||
|
International |
54.0 |
73.6 |
||||||
|
Machines |
$ |
80.1 |
$ |
167.0 |
||||
|
North America |
51.7 |
118.0 |
||||||
|
International |
28.4 |
49.0 |
||||||
|
Non-machine |
$ |
67.9 |
$ |
76.6 |
||||
|
North America |
42.3 |
52.0 |
||||||
|
International |
25.6 |
24.6 |
||||||
|
Gross margin |
48 |
% |
52 |
% |
||||
|
North America |
50 |
% |
53 |
% |
||||
|
International |
45 |
% |
50 |
% |
||||
|
Machine units recognized ('000) |
5.8 |
12.8 |
||||||
|
North America |
3.9 |
9.6 |
||||||
|
International |
1.9 |
3.2 |
||||||
|
Machine units shipped ('000) [includes units where revenues deferred] |
5.9 |
13.0 |
||||||
|
North America |
4.2 |
9.8 |
||||||
|
New |
0.7 |
3.7 |
||||||
|
Replacement |
3.5 |
6.1 |
||||||
|
International |
1.7 |
3.2 |
||||||
|
New |
0.5 |
0.7 |
||||||
|
Replacement |
1.2 |
2.5 |
||||||
|
Machine ASP ('000) |
$ |
13.9 |
$ |
13.2 |
||||
|
North America |
13.4 |
12.3 |
||||||
|
International |
15.1 |
15.3 |
||||||
|
INTERACTIVE |
||||||||
|
Revenues |
$ |
91.5 |
$ |
74.6 |
||||
|
North America |
81.5 |
65.8 |
||||||
|
International |
10.0 |
8.8 |
||||||
|
Social Gaming - North America |
79.4 |
64.8 |
||||||
|
IGTi |
12.1 |
9.8 |
||||||
|
North America |
2.1 |
1.0 |
||||||
|
International |
10.0 |
8.8 |
||||||
|
Gross margin |
61 |
% |
63 |
% |
||||
|
North America |
61 |
% |
62 |
% |
||||
|
International |
65 |
% |
66 |
% |
||||
|
DoubleDown average user metrics |
||||||||
|
DAU (daily active users) ('000) |
1,910 |
1,716 |
||||||
|
MAU (monthly active users) ('000) |
5,212 |
6,198 |
||||||
|
Bookings per DAU ($0.00) |
$ |
0.43 |
$ |
0.42 |
||||
|
Reconciliations of GAAP to Non-GAAP Adjusted Financial Measures |
||||||||||||||||||||||||
|
(in millions, except EPS) |
||||||||||||||||||||||||
|
First Quarter Ended December 31, 2014 |
Cost of Gaming Operations |
Cost of Interactive |
Operating Expenses |
Operating Income |
Net Earnings (a) |
Diluted EPS |
||||||||||||||||||
|
GAAP measures |
$ |
79.8 |
$ |
35.4 |
$ |
194.9 |
$ |
63.5 |
$ |
35.0 |
$ |
0.14 |
||||||||||||
|
% of revenue |
43 |
% |
14 |
% |
||||||||||||||||||||
|
Acquisition-related charges: (b) |
||||||||||||||||||||||||
|
Contingent retention & earn-out |
- |
- |
(2.5) |
2.5 |
1.7 |
0.01 |
||||||||||||||||||
|
Amortization of intangibles |
- |
(2.5) |
(2.2) |
4.7 |
3.2 |
0.01 |
||||||||||||||||||
|
Recovery of Alabama note impairment |
- |
- |
1.0 |
(1.0) |
(0.7) |
- |
||||||||||||||||||
|
Merger-related costs |
- |
- |
(13.9) |
13.9 |
9.2 |
0.04 |
||||||||||||||||||
|
Severance |
(0.9) |
- |
(0.9) |
1.8 |
1.2 |
- |
||||||||||||||||||
|
Certain discrete tax items (benefits) |
- |
- |
- |
- |
(1.9) |
(0.01) |
||||||||||||||||||
|
Total non-GAAP adjustments |
(0.9) |
(2.5) |
(18.5) |
21.9 |
12.7 |
0.05 |
||||||||||||||||||
|
Adjusted measures |
$ |
78.9 |
$ |
32.9 |
$ |
176.4 |
$ |
85.4 |
$ |
47.7 |
$ |
0.19 |
||||||||||||
|
% of revenue |
39 |
% |
19 |
% |
||||||||||||||||||||
|
(a) Adjustments tax effected at 34%; (b) Primarily DoubleDown |
||||||||||||||||||||||||
|
First Quarter Ended December 31, 2013 |
Cost of Gaming Operations |
Cost of Interactive |
Operating Expenses |
Operating Income |
Net Earnings (a) |
Diluted EPS |
||||||||||||||||||
|
GAAP measures |
$ |
86.8 |
$ |
27.9 |
$ |
206.1 |
$ |
103.7 |
$ |
79.2 |
$ |
0.31 |
||||||||||||
|
% of revenue |
38 |
% |
19 |
% |
||||||||||||||||||||
|
Acquisition-related charges: (b) |
||||||||||||||||||||||||
|
Contingent retention & earn-out |
- |
- |
(11.3) |
11.3 |
7.5 |
0.03 |
||||||||||||||||||
|
Amortization of intangibles |
- |
(2.7) |
(3.4) |
6.1 |
4.0 |
0.02 |
||||||||||||||||||
|
Severance |
(0.6) |
- |
(2.1) |
2.7 |
1.8 |
0.01 |
||||||||||||||||||
|
Certain discrete tax items (benefits) |
- |
- |
- |
- |
(29.6) |
(0.12) |
||||||||||||||||||
|
Total non-GAAP adjustments |
(0.6) |
(2.7) |
(16.8) |
20.1 |
(16.3) |
(0.06) |
||||||||||||||||||
|
Adjusted measures |
$ |
86.2 |
$ |
25.2 |
$ |
189.3 |
$ |
123.8 |
$ |
62.9 |
$ |
0.25 |
||||||||||||
|
% of revenue |
35 |
% |
23 |
% |
||||||||||||||||||||
|
(a) Adjustments tax effected at 34%; (b) Primarily DoubleDown |
||||||||||||||||||||||||
|
Adjusted EBITDA For The First Quarters Ended December 31, |
2014 |
2013 |
||||||
|
GAAP Net income |
$ |
35.0 |
$ |
79.2 |
||||
|
Other (income) expense, net |
11.8 |
28.2 |
||||||
|
Income tax provision |
16.7 |
(3.7) |
||||||
|
Depreciation and amortization |
38.3 |
51.3 |
||||||
|
Other charges: |
||||||||
|
Share-based compensation |
8.7 |
8.9 |
||||||
|
Contingent acquisition-related costs |
2.5 |
11.3 |
||||||
|
Impairment, restructuring, and merger-related |
12.9 |
- |
||||||
|
Adjusted EBITDA |
$ |
125.9 |
$ |
175.2 |
||||
|
Free Cash Flow For The Three Months Ended December 31, |
2014 |
2013 |
||||||
|
GAAP net operating cash flows |
$ |
102.9 |
$ |
76.1 |
||||
|
Investment in property, plant and equipment |
(7.2) |
(7.6) |
||||||
|
Investment in gaming operations equipment |
(17.3) |
(16.9) |
||||||
|
Investment in intellectual property |
(0.1) |
(0.1) |
||||||
|
Free Cash Flow (before dividends) |
78.3 |
51.5 |
||||||
|
Dividends paid |
(54.6) |
(25.9) |
||||||
|
Free Cash Flow (after dividends) |
$ |
23.7 |
$ |
25.6 |
||||
|
We believe that certain non-GAAP financial measures, when presented in conjunction with comparable GAAP (Generally Accepted Accounting Principles) measures, are useful because that information is an appropriate measure for evaluating our operating performance. Non-GAAP information is used to evaluate business performance and management's effectiveness. These measures should be considered in addition to, not as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. Non-GAAP financial measures may not be calculated in the same manner by all companies and therefore may not be comparable. |
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SOURCE IGT
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