LAS VEGAS, April 21, 2011 /PRNewswire/ — International Game Technology (NYSE: IGT) currently reported handling formula for a mercantile second entertain finished March 31, 2011. GAAP income from stability operations for a entertain was $70 million, or $0.23 per share, compared to $26 million, or $0.08 per share, in a same entertain final year. Excluding a impact of final year’s Alabama impairment, practiced income from operations softened 18% on a dollar basement and 21% on a per share basis.
For a 6 months finished March 31, 2011, GAAP income from stability operations totaled $143 million or $0.48 per share compared to $101 million or $0.34 per share for a same duration final year. The stream 6 month duration was agreeably impacted by $0.04 per share from certain dissimilar taxation advantages and a advantage on a sale of a equity investment in China LotSynergy Holdings Ltd. during a initial 3 months of a mercantile year. Adjusted income from stability operations for a initial 6 months was $132 million or $0.44 per share for mercantile 2011 compared to $134 million or $0.45 per share for mercantile 2010. Adjusted income from stability operations is a non-GAAP magnitude and a supplemental GAAP to non-GAAP settlement is supposing during a finish of this release.
“Our second entertain formula simulate a advances we are creation towards relocating IGT to a position of larger financial strength. We continue to denote a precedence in a handling denote with clever opening in distinction margins,” pronounced Patti Hart, President and CEO of IGT. “Although we sojourn in a severe environment, a nearby and long-term outlooks for a Company are improving and we demeanour brazen to stating a swell in entrance quarters.”
Total revenues for a second entertain augmenting 1% to $492 million, of that 56% was generated from gaming operations and 44% from product sales, compared to $487 million for a same entertain final year.
Consolidated sum distinction for a entertain augmenting 7% to $292 million compared to $272 million in a before year second quarter, due to softened product sales volume.
Operating income for a second entertain was $131 million contra $64 million in final year’s second quarter, that was negatively impacted by a Alabama spoil of $53 million.
For a 6 months finished March 31, 2011, sum revenues decreased 4% compared to a before year duration to $957 million. Consolidated sum distinction and handling income for a 6 month duration were $568 million and $252 million, respectively compared to $568 million and $208 million in a before year period. Items inspiring comparability for both a entertain and six-month durations are remarkable in a supplemental report during a finish of this release.
Second entertain revenues from gaming operations totaled $278 million compared to $280 million for a same entertain final year. Average income per territory in a second entertain was $53.62, an boost of $3.24 per day from a immediately preceding entertain and an boost of $2.66 year over year. The year over year boost was especially due to an augmenting brew of higher-yielding MegaJackpots® games and opening improvements in domestic wide-area progressive, racinos and ubiquitous franchise operations.
Gaming operations sum distinction of $173 million and sum domain of 62% in a second entertain were prosaic compared to a before year quarter. Improvement in per territory yields equivalent a revoke commissioned bottom compared to a before year, down mostly due to removals from Alabama free bingo comforts and conversions of leased games to for-sale units in Mexico.
At March 31, 2011, IGT’s gaming operations commissioned bottom totaled 57,100 units, an boost of 400 units from a immediately preceding entertain especially due to an boost in ubiquitous franchise operations and MegaJackpots® games.
Second entertain product sales revenues were $215 million, adult 4% from $207 million a year ago. Globally, a Company famous 10,200 units in a quarter, adult 9% sequentially and down 1% from final year’s second quarter. The Company famous 10% some-more units in North America while International units were down 12% year over year. Sequentially, North America units famous grew 12% and International units grew 5%.
Product sales sum distinction in a second entertain augmenting 21% to $119 million and sum domain softened 700 bps to 55% compared to final year’s second quarter. The boost in sum domain resulted from improvements to both a geographic and product sales brew sum with product cost efficiencies, such as revoke obsolescence and redo costs.
Operating Expenses and Other Income/Expense
Second entertain handling losses decreased to $161 million from $208 million in a before year quarter, that enclosed a $53 million item impairment. SGA as a commission of sum income augmenting 100 bps compared to final year’s second entertain essentially due to enlargement of a interactive gaming initiatives and aloft non-static remuneration expenses.
Other expense, net, for a second entertain was prosaic compared to a before year.
Cash Flows, Balance Sheet and Capital Deployment
For a initial 6 months of mercantile 2011, IGT generated $264 million in money from operations compared to $277 million in a before year period.
Working collateral augmenting to $759 million during March 31, 2011 compared to $620 million during Sept. 30, 2010. Cash equivalents and short-term investments (inclusive of limited amounts) totaled $373 million and contractual debt obligations totaled $1.65 billion during March 31, 2011. During a second entertain of mercantile 2011, a Company paid all of a superb borrowings underneath a credit trickery and augmenting a money balances by scarcely $150 million. As formerly announced on April 15, 2011, a Company entered into a new $750 million, five-year revolving credit trickery with a associate of banks replacing a prior $1.2 billion revolving credit facility. The new unsecured trickery provides a revoke all-in drawn seductiveness rate and extends a majority from June 2012 to April 2016. The Company might ask an boost in a trickery distance adult to an additional $250 million during any time during a life of a facility. The seductiveness rate and trickery price are theme to adjustment, on a shifting scale, formed on a debt rating of a Company’s comparison unsecured debt or a net saved debt formed precedence ratio, whichever is some-more auspicious to a Company. Initially, a germane seductiveness rate will be equal to LIBOR and 122.5 basement points on borrowings and a trickery price equal to 27.5 basement points. The Company expects that a new trickery will revoke seductiveness expense, including deferred charity costs amortization, by approximately $14 million on an annual basis.
As of April 21, 2011, there were no superb borrowings underneath a credit facility.
On April 18, 2011, IGT executed $250 million notional value seductiveness rate swaps that cancel on June 15, 2019, that effectively sell a remaining bound seductiveness payments on a 7.5% Bonds due 2019 for non-static rate seductiveness payments formed on six-month LIBOR and 409 basement points set in balance with payments due on June 15 and Dec. 15 of any year.
References to per share amounts in this recover are formed on diluted shares of a common stock, unless differently specified.
Based on stream expectations and a handling formula for a initial 6 months of mercantile 2011, a Company is augmenting a mercantile year 2011 superintendence for practiced advantage from stability operations to a operation of $0.84 to $0.90 per share. This operation excludes a auspicious impact of $0.04 per share from certain adjustments minute in a supplemental settlement during a finish of this release.
Earnings Conference Call
As formerly announced on March 31, 2011, IGT will horde a discussion call per a Second Quarter Fiscal Year 2011 advantage recover on Thurs., Apr 21, 2011 during 2:00 p.m. PDT. The entrance numbers are as follows:
The discussion call will also be promote live over a Internet. A couple to a webcast is accessible during a IGT website: http://www.IGT.com/InvestorRelations. If meddlesome parties are incompetent to attend during a live webcast, a call will be archived until Thurs., Apr 28, 2011 also during http://www.IGT.com/InvestorRelations.
Interested parties who can't attend during a time of a call might listen to a taped replay of a whole discussion call commencing during approximately 4:00 p.m. PDT on Thurs., Apr 21, 2011. This replay will run by Thurs., Apr 28, 2011. The entrance numbers are as follows:
Q2 FY 2011 Excel file
Q2 FY 2011 PDF of this press release
Safe Harbor Statement underneath a Private Securities Litigation Reform Act of 1995
This press recover contains forward-looking statements that engage risks and uncertainties. These statements embody a approaching destiny financial and operational opening (including a superintendence for mercantile 2011), approaching annual seductiveness responsibility reductions from a new credit trickery and new seductiveness rate swaps, and a vital and operational plans. Actual formula might differ materially from a formula predicted, and reported formula should not be deliberate an denote of destiny performance. The intensity risks and uncertainties that could means tangible formula to differ from a formula likely include, among others, ubiquitous mercantile conditions and changes in mercantile conditions inspiring a casino industry; problems or delays in receiving or progressing required licenses or approvals; delayed expansion in a series of new gaming jurisdictions or new casinos or a rate of deputy of existent gaming machines; changes in user or actor preferences for a games; foe in a gaming attention from a flourishing series of companies; changes in laws or regulations inspiring a business; a ability to rise and deliver new products and their acceptance by a customers; a ability to strengthen a egghead property; changes in seductiveness rates inspiring a kitty guilt expense; risks associated to a ubiquitous operations and a additional risks and uncertainties enclosed underneath a captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in a Annual Report on Form 10-K for mercantile 2010 filed with a SEC on Dec. 1, 2010, and a Quarterly Report on Form 10-Q for a mercantile entertain finished Dec. 31, 2010 filed with a SEC on February 9, 2011, and accessible on a SEC website during www.sec.gov and on a financier family territory of a website during www.IGT.com. Additional information will also be set onward in a Quarterly Report on Form 10-Q for a mercantile entertain finished March 31, 2011, that we pattern to record with a SEC in a second entertain of calendar 2011. All information supposing in this recover is as of April 21, 2011, and IGT undertakes no avocation to refurbish this information.
International Game Technology (NYSE: IGT) is a tellurian personality in a design, growth and make of gaming machines and systems products, as good as online and mobile gaming solutions for regulated markets. More information about IGT is accessible during www.IGT.com or follow IGT on Twitter during @IGTNews or Facebook during www.facebook.com/IGT.
Unaudited Supplemental Data (continued)
Reconciliation of GAAP to Non-GAAP Measures
Adjusted Income from Continuing Operations
Adjusted EPS from Continuing Operations
Six Months Ended
(In millions, solely EPS)
GAAP income from stability operations
Investment advantage (no taxation benefit)
Total adjustments before tax
Tax outcome *
Certain dissimilar taxation equipment (benefits)
Total adjustments after tax
Adjusted income from stability operations
GAAP EPS from stability operations
Certain dissimilar taxation equipment (benefits)
Adjusted EPS from stability operations
*at core taxation rate of 37.1% for mercantile 2010
Adjusted income from stability operations and practiced EPS from stability operations are both supplemental non-GAAP financial measures ordinarily used by government and attention analysts to weigh a financial performance. Adjusted income from stability operations should not be construed as an choice to income from stability operations, and practiced EPS from stability operations should not be construed as an choice to EPS from stability operations, as indicators of a handling opening dynamic in suitability with generally supposed accounting principles. All companies do not calculate practiced income from stability operations or practiced EPS from stability operations in a same manner, and IGT’s display might not be allied to that of other companies.
SOURCE International Game Technology
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