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International Game Technology PLC Reports Fourth Quarter and Full Year 2021 Results
- Full year operating income of $902 million, the highest in Company history, on strong Global Lottery operating leverage and company-wide structural cost savings
- Generated over $1.0 billion in cash from operations and $770 million in free cash flow in 2021, including record-level cash flows for a quarterly period in the fourth quarter, on strong performance and disciplined capital management
- Reduced net debt by $1.4 billion; leverage improves to 3.5x, the lowest level in Company history, achieving the 2022 leverage target a year early
- Reinstated shareholder returns in the fourth quarter with payment of $0.20 quarterly cash dividend and over $40 million in share repurchases
- Reaffirming full-year 2022 guidance provided at recent Investor Day
LONDON, March 1, 2022 /PRNewswire/ -- International Game Technology PLC ("IGT") (NYSE: IGT) today reported financial results for the fourth quarter and full year ended December 31, 2021. Today, at 8:00 a.m. EST, management will host a conference call and webcast to present the results; access details are provided below.
"Our 2021 financial results reflect the best revenue, profit, and cash flow performance in the last four years, meeting or exceeding target levels on strong performance across the portfolio," said Vince Sadusky, CEO of IGT. "We made important progress on several strategic objectives, and I am excited to be leading IGT in the next chapter of its evolution. We have set aggressive but achievable multi-year goals and we have a focused strategy to maximize value for all stakeholders."
"Improving leverage to 3.5x a year ahead of schedule enables us to pursue a balanced capital allocation framework that supports investing for growth, continued debt reduction, and the reinstatement of capital returns through quarterly dividends and share repurchases," said Max Chiara, CFO of IGT. "As we enter 2022, the Company is in a very good place with a solid financial condition and a strong foundation for further growth."
Overview of Consolidated Fourth Quarter and Full Year 2021 Results
|
|
Quarter Ended |
Y/Y |
Constant |
Year Ended |
Y/Y |
Constant |
||||
|
All amounts from continuing operations |
December 31, |
December 31, |
||||||||
|
|
2021 |
|
2020 |
2021 |
|
2020 |
||||
|
(In $ millions, unless otherwise noted) |
|
|
|
|
|
|
|
|
|
|
|
GAAP Financials: |
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
Global Lottery |
687 |
|
630 |
9% |
12% |
2,812 |
|
2,164 |
30% |
28% |
|
Global Gaming |
321 |
|
222 |
45% |
45% |
1,112 |
|
837 |
33% |
32% |
|
Digital & Betting |
42 |
|
33 |
25% |
24% |
165 |
|
115 |
44% |
40% |
|
Total revenue |
1,050 |
|
885 |
19% |
21% |
4,089 |
|
3,115 |
31% |
29% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income/(loss) |
|
|
|
|
|
|
|
|
|
|
|
Global Lottery |
217 |
|
195 |
11% |
14% |
1,088 |
|
642 |
69% |
65% |
|
Global Gaming |
36 |
|
(42) |
NA |
NA |
43 |
|
(212) |
NA |
NA |
|
Digital & Betting |
5 |
|
3 |
41% |
19% |
33 |
|
6 |
421% |
383% |
|
Corporate support expense |
(33) |
|
(20) |
(66)% |
(76)% |
(104) |
|
(76) |
(37)% |
(33)% |
|
Other(1) |
(39) |
|
(40) |
2% |
2% |
(158) |
|
(468) |
66% |
66% |
|
Total operating income/(loss) |
186 |
|
96 |
93% |
96% |
902 |
|
(107) |
NA |
NA |
|
Operating Income margin |
18% |
|
11% |
|
|
22% |
|
(3)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
396 |
|
251 |
58% |
|
1,010 |
|
595 |
70% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
591 |
|
907 |
(35)% |
|
591 |
|
907 |
(35)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial Measures: |
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
Global Lottery |
336 |
|
313 |
7% |
10% |
1,545 |
|
1,086 |
42% |
39% |
|
Global Gaming |
66 |
|
(10) |
NA |
NA |
173 |
|
(38) |
NA |
NA |
|
Digital & Betting |
9 |
|
8 |
12% |
3% |
48 |
|
22 |
116% |
105% |
|
Corporate support expense |
(24) |
|
(16) |
(49)% |
(62)% |
(80) |
|
(62) |
(29)% |
(24)% |
|
Total Adjusted EBITDA |
387 |
|
295 |
31% |
33% |
1,686 |
|
1,008 |
67% |
64% |
|
Adjusted EBITDA margin |
37% |
|
33% |
|
|
41% |
|
32% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow |
326 |
|
201 |
62% |
|
771 |
|
340 |
127% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net debt(2) |
|
|
|
|
|
5,922 |
|
7,319 |
(19)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Primarily includes purchase price amortization |
||||||||||
|
(2) Historical net debt recast to only reflect continuing operations |
||||||||||
|
Note: Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are provided at the end of this news release |
||||||||||
Fourth Quarter and Full Year 2021 Key Highlights:
- Hosted Investor Day introducing Grow, Innovate, and Optimize strategic initiatives to deliver compelling 2025 financial targets
- Mid-single digit organic revenue and mid-teens operating income compound annual growth rates from 2021 - 2025
- Cumulative cash from operations of approximately $4.0 billion and free cash flow of about $2.4 billion from 2022 - 2025
- Completed sale of Italy B2C gaming businesses; net proceeds used to reduce debt
- Created stand-alone Digital & Betting segment; strengthened leadership with appointments of Joe Asher and Gil Rotem
- Achieved over $200 million in OPtiMa structural cost savings versus 2019
- Reinstated $0.20 per common share quarterly cash dividend; repurchased 1.5 million shares for $41 million at an average price of $27.22 per share
- Awarded 10-year lottery contract with Connecticut Lottery Corporation, replacing an incumbent following a competitive procurement
- Won "Casino Supplier of the Year" award in 2021 Global Gaming Awards London
- Extended cashless momentum with several deployments and regulatory approval in Nevada
- Company's lottery operations re-certified by World Lottery Association for Corporate Social Responsibility Standards and Responsible Gaming Framework for Suppliers
Full Year 2021 Financial Highlights:
Revenue of $4.1 billion, up 31% from $3.1 billion in the prior year, driven by impressive growth across segments
- Global Lottery revenue of $2.8 billion, up from $2.2 billion, driven by 20% same-store sales growth and including around $165 million in benefits from certain discrete items in the first half of 2021
- Global Gaming revenue rises 33% to $1.1 billion, as continued recovery drives key performance indicators higher
- Digital & Betting revenue increases to $165 million, up 44%, propelled by new jurisdictions and customers
Operating income of $902 million, versus operating loss of $107 million in the prior-year period
- Driven by double-digit revenue growth
- Strong profit flow-through in Global Lottery segment enhanced by positive mix of high-margin Italy lottery sales; contribution of about $140 million from certain discrete items in the first half of 2021
- Improved operating leverage from revenue growth coupled with benefit of structural cost savings in Global Gaming
- Digital & Betting increases significantly on solid operating leverage
Net interest expense of $341 million, compared to $398 million in the prior year
- Net proceeds from asset sale and free cash flow generation drove lower average debt balances
- Proactive liability management actions lowered the average cost of debt
Provision for income taxes of $274 million versus $28 million in the prior year driven by significant increase in operating profitability and valuation allowances on deferred tax assets
Net income of $670 million compared to net loss of $839 million in the prior-year period
- Significant increase in profit
- Gain on sale of Italy gaming businesses
- Goodwill impairment and non-cash foreign exchange losses in prior year
Adjusted EBITDA totaled nearly $1.7 billion, up 67% compared to the prior year; Adjusted EBITDA margin of 41%, among the highest level in Company history
Cash from operations was $1.0 billion compared to $595 million in the prior-year period
- Strong performance and rigorous management of invested capital
- Record free cash flow of $771 million, up from $340 million
Shareholder returns reinstated with $41 million deployed for $0.20 per share quarterly cash dividend and $41 million for share repurchases
Net debt of $5.9 billion, down $1.4 billion from $7.3 billion at December 31, 2020
- Strong cash flow generation
- Proceeds from sale of Italy B2C gaming businesses
- Net debt leverage of 3.5x, down from 6.4x at December 31, 2020, the lowest level in Company history and achieving the 2022 leverage target a year early
Fourth Quarter 2021 Financial Highlights:
Consolidated revenue of $1.0 billion, up 19% from $885 million in the prior-year period, on double-digit, constant currency growth across segments
- Global Lottery revenue totals $687 million, up from $630 million in the prior year, on 8% same-store sales growth
- Global Gaming revenue of $321 million, up 45% from the prior year, primarily driven by higher replacement unit sales and average selling prices
- Digital & Betting revenue rises to $42 million compared to $33 million in the prior year, propelled by new jurisdictions and customers
Operating income of $186 million, nearly doubling from $96 million in the prior year
- Revenue growth with strong profit flow-through
- Sustained focus on cost discipline/avoidance
Net interest expense of $77 million, down from $101 million in the prior-year
- Lower average debt balances
- Proactive liability management actions lowered the average cost of debt
Provision for income taxes of $56 million, down from $73 million, as prior year impacted by non-deductible foreign exchange losses and valuation allowances on deferred tax assets
Net income was $55 million versus a net loss of $220 million due to increased profit and lower non-cash foreign exchange losses
Adjusted EBITDA of $387 million, up 31% from $295 million in the prior year
Cash from operations of $396 million, up 58% from $251 million in the prior-year period
- Solid financial performance and invested capital management
- Free cash flow of $326 million, up from $201 million
- Record-level quarterly cash flow generation
Cash and Liquidity Update
Total liquidity of $2.3 billion as of December 31, 2021; $591 million in unrestricted cash and $1.7 billion in additional borrowing capacity
Recently received credit rating upgrades with Standard & Poor's rising to BB+ and Moody's to Ba2, both with a stable outlook
Other Developments
On January 20, 2022, the Company announced several Executive and Board leadership changes
- Lorenzo Pellicioli to retire as Chairperson of the Board of Directors
- Marco Sala appointed Executive Chair of the Board of Directors
- Vincent Sadusky appointed CEO and Executive Director
- Maria Pinelli appointed to the Board of Directors and Chair of the Audit Committee
- Ashley M. Hunter appointed to the Board of Directors and Nominating and Corporate Governance Committee
Yesterday, the Company announced an agreement to sell its Italian proximity payment business
- €700 million purchase price; €630M enterprise value
- Net proceeds primarily used to reduce debt
- Transaction expected to close during the third quarter of 2022
The Company's Board of Directors declared a quarterly cash dividend of $0.20 per common share
- Ex-dividend date of March 14, 2022
- Record date of March 15, 2022
- Payment date of March 29, 2022
Reaffirming Full-year and Introducing First Quarter 2022 Outlook
Full-year
- Revenue of ~$4.1 billion - $4.3 billion
- Operating income margin of 20% - 22%
- Cash from operations of $850 million - $1,000 million
- Capital expenditures of $400 million - $450 million
First quarter
- Revenue of ~$1.0 billion - $1.1 billion
- Operating income margin of 20% - 22%
Outlook not adjusted for announced sale of Italian proximity payment business or any impact from the Russia/Ukraine conflict
Earnings Conference Call and Webcast:
March 1, 2022, at 8:00 a.m. EST
To register to participate in the conference call, or to listen to the live audio webcast, please visit the "Events Calendar" on IGT's Investor Relations website at www.IGT.com. A replay will be available on the website following the live event.
Note: Certain totals in the tables included in this press release may not add due to rounding
Comparability of Results
All figures presented in this news release are prepared under U.S. GAAP, unless noted otherwise. Adjusted figures exclude the impact of items such as purchase accounting, impairment charges, restructuring expense, foreign exchange, and certain one-time, primarily transaction-related items. Reconciliations to the most directly comparable U.S. GAAP measures are included in the tables in this news release. Constant currency changes for 2021 are calculated using the same foreign exchange rates as the corresponding 2020 period. Management uses non-GAAP financial measures to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, and to evaluate the Company's financial performance. Management believes these non-GAAP financial measures reflect the Company's ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of business trends. These constant currency changes and non-GAAP financial measures should however be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with U.S. GAAP. Amounts reported in millions are computed based on amounts in thousands. As a result, the sum of the components may not equal the total amount reported in millions due to rounding. Certain columns and rows within tables may not add due to the use of rounded numbers. Percentages and earnings per share amounts presented are calculated from the underlying unrounded amounts.
About IGT
IGT (NYSE:IGT) is a global leader in gaming. We deliver entertaining and responsible gaming experiences for players across all channels and regulated segments, from Gaming Machines and Lotteries 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 unrivalled gaming experiences that engage players and drive growth. We have a well-established local presence and relationships with governments and regulators in more than 100 countries around the world, and create value by adhering to the highest standards of service, integrity, and responsibility. IGT has approximately 10,500 employees. For more information, please visit www.IGT.com.
Cautionary Statement Regarding Forward-Looking Statements
This news release may contain forward-looking statements (including within the meaning of the Private Securities Litigation Reform Act of 1995) concerning International Game Technology PLC and its consolidated subsidiaries (the "Company") and other matters. These statements may discuss goals, intentions, and expectations as to future plans, trends, events, dividends, results of operations, or financial condition, or otherwise, based on current beliefs of the management of the Company as well as assumptions made by, and information currently available to, such management. Forward-looking statements may be accompanied by words such as "aim," "anticipate," "believe," "plan," "could," "would," "should," "shall", "continue," "estimate," "expect," "forecast," "future," "guidance," "intend," "may," "will," "possible," "potential," "predict," "project" or the negative or other variations of them. These forward-looking statements speak only as of the date on which such statements are made and are subject to various risks and uncertainties, many of which are outside the Company's control. Should one or more of these risks or uncertainties materialize, or should any of the underlying assumptions prove incorrect, actual results may differ materially from those predicted in the forward-looking statements and from past results, performance, or achievements. Therefore, you should not place undue reliance on such statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include (but are not limited to) the factors and risks described in the Company's annual report on Form 20-F for the financial year ended December 31, 2020 and other documents filed from time to time with the SEC, which are available on the SEC's website at www.sec.gov and on the investor relations section of the Company's website at www.IGT.com. Except as required under applicable law, the Company does not assume any obligation to update these forward-looking statements. You should carefully consider these factors and other risks and uncertainties that affect the Company's business. Nothing in this news release is intended, or is to be construed, as a profit forecast or to be interpreted to mean that the financial performance of International Game Technology PLC for the current or any future financial years will necessarily match or exceed the historical published financial performance or International Game Technology PLC, as applicable. All forward-looking statements contained in this news release are qualified in their entirety by this cautionary statement. All subsequent written or oral forward-looking statements attributable to International Game Technology PLC, or persons acting on its behalf, are expressly qualified in their entirety by this cautionary statement.
Non-GAAP Financial Measures
Management supplements the reporting of financial information, determined under GAAP, with certain non-GAAP financial information. Management believes the non-GAAP information presented provides investors with additional useful information, but it is not intended to nor should it be considered in isolation or as a substitute for the related GAAP measures. Moreover, other companies may define non-GAAP measures differently, which limits the usefulness of these measures for comparisons with such other companies. The Company encourages investors to review its financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure.
Adjusted EBITDA represents net income (loss) from continuing operations (a GAAP measure) before income taxes, interest expense, foreign exchange gain (loss), other non-operating expenses, depreciation, impairment losses, amortization (service revenue, purchase accounting and non-purchase accounting), restructuring expenses, stock-based compensation, litigation expense (income), and certain other non-recurring items. Other non-recurring items are infrequent in nature and are not reflective of ongoing operational activities. For the business segments, Adjusted EBITDA represents segment operating income (loss) before depreciation, amortization (service revenue, purchase accounting and non-purchase accounting), restructuring expenses, stock-based compensation, litigation expense (income) and certain other non-recurring items.
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. Cash and cash equivalents 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 and Leverage are non-GAAP financial measures 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. Prior to the disposal of the Italian B2C gaming businesses in the second quarter of 2021, management calculated the Net debt leverage ratio as the ratio of Net debt as of a particular balance sheet date to the LTM of Adjusted EBITDA – combined prior to such date. Management believes that Net debt leverage is a useful measure to assess our 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 the current financial data using the prior-year/period exchange rate (i.e., the exchange rates used in preparing the financial statements for the prior year). Management believes that constant currency is a useful measure to compare period-to-period results without regard to the impact of fluctuating foreign currency exchange rates.
A reconciliation of the non-GAAP measures to the corresponding amounts prepared in accordance with GAAP appears in the tables in this release. The tables provide additional information as to the items and amounts that have been excluded from the adjusted measures.
Contact:
Phil O'Shaughnessy, Global Communications, toll free in U.S./Canada +1 (844) IGT-7452; outside U.S./Canada +1 (401) 392-7452
Francesco Luti, +39 06 5189 9184; for Italian media inquiries
James Hurley, Investor Relations, +1 (401) 392-7190
Select Performance and KPI data: (In $ millions, unless otherwise noted)
|
GLOBAL LOTTERY |
|
Q4'21 |
|
Q4'20 |
|
Y/Y |
|
Constant |
|
FY'21 |
|
FY'20 |
|
Y/Y |
|
Constant |
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating and facilities management contracts |
|
608 |
|
549 |
|
11% |
|
13% |
|
2,569 |
|
1,944 |
|
32% |
|
30% |
|
Upfront license fee amortization |
|
(50) |
|
(52) |
|
5% |
|
—% |
|
(206) |
|
(200) |
|
(3)% |
|
—% |
|
Operating and facilities management contracts, net |
|
558 |
|
497 |
|
12% |
|
15% |
|
2,363 |
|
1,744 |
|
35% |
|
33% |
|
Other |
|
87 |
|
86 |
|
1% |
|
6% |
|
327 |
|
299 |
|
10% |
|
7% |
|
Total service revenue |
|
646 |
|
583 |
|
11% |
|
13% |
|
2,690 |
|
2,043 |
|
32% |
|
29% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product sales |
|
42 |
|
47 |
|
(11)% |
|
(10)% |
|
123 |
|
121 |
|
1% |
|
—% |
|
Total revenue |
|
687 |
|
630 |
|
9% |
|
12% |
|
2,812 |
|
2,164 |
|
30% |
|
28% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
217 |
|
195 |
|
11% |
|
14% |
|
1,088 |
|
642 |
|
69% |
|
65% |
|
Adjusted EBITDA(1) |
|
336 |
|
313 |
|
7% |
|
10% |
|
1,545 |
|
1,086 |
|
42% |
|
39% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global same-store sales growth (%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Instant ticket & draw games |
|
6.6% |
|
8.2% |
|
|
|
|
|
18.1% |
|
1.6% |
|
|
|
|
|
Multi-jurisdiction jackpots |
|
21.7% |
|
4.5% |
|
|
|
|
|
46.4% |
|
(17.0%) |
|
|
|
|
|
Total |
|
7.7% |
|
7.9% |
|
|
|
|
|
20.1% |
|
0.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America and Rest of world same-store sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Instant ticket & draw games |
|
6.3% |
|
10.7% |
|
|
|
|
|
12.7% |
|
7.3% |
|
|
|
|
|
Multi-jurisdiction jackpots |
|
21.7% |
|
4.5% |
|
|
|
|
|
46.4% |
|
(17.0%) |
|
|
|
|
|
Total |
|
7.8% |
|
10.1% |
|
|
|
|
|
15.6% |
|
4.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Italy same-store sales growth (%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Instant ticket & draw games |
|
7.7% |
|
0.4% |
|
|
|
|
|
38.9% |
|
(16.1%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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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||||||||||||||||
|
|
||||||||||||||||
|
GLOBAL GAMING |
|
Q4'21 |
|
Q4'20 |
|
Y/Y |
|
Constant |
|
FY'21 |
|
FY'20 |
|
Y/Y |
|
Constant |
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Terminal |
|
109 |
|
85 |
|
29% |
|
29% |
|
424 |
|
298 |
|
42% |
|
42% |
|
Systems, software, and other |
|
54 |
|
48 |
|
12% |
|
13% |
|
206 |
|
186 |
|
11% |
|
11% |
|
Total service revenue |
|
163 |
|
133 |
|
23% |
|
24% |
|
630 |
|
483 |
|
30% |
|
30% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Terminal |
|
110 |
|
59 |
|
85% |
|
87% |
|
339 |
|
205 |
|
65% |
|
63% |
|
Other |
|
48 |
|
30 |
|
60% |
|
61% |
|
143 |
|
148 |
|
(4)% |
|
(5)% |
|
Total product sales revenue |
|
158 |
|
89 |
|
77% |
|
78% |
|
482 |
|
354 |
|
36% |
|
34% |
|
Total revenue |
|
321 |
|
222 |
|
45% |
|
45% |
|
1,112 |
|
837 |
|
33% |
|
32% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
36 |
|
(42) |
|
NA |
|
NA |
|
43 |
|
(212) |
|
NA |
|
NA |
|
Adjusted EBITDA(1) |
|
66 |
|
(10) |
|
NA |
|
NA |
|
173 |
|
(38) |
|
NA |
|
NA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Installed base units |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Casino |
|
47,732 |
|
48,232 |
|
(1%) |
|
|
|
47,732 |
|
48,232 |
|
(1%) |
|
|
|
Casino - L/T lease (2) |
|
1,117 |
|
1,068 |
|
5% |
|
|
|
1,117 |
|
1,068 |
|
5% |
|
|
|
Total installed base units |
|
48,849 |
|
49,300 |
|
(1%) |
|
|
|
48,849 |
|
49,300 |
|
(1%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Installed base units (by geography) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US & Canada |
|
33,437 |
|
34,275 |
|
(2%) |
|
|
|
33,437 |
|
34,275 |
|
(2%) |
|
|
|
Rest of world |
|
15,412 |
|
15,025 |
|
3% |
|
|
|
15,412 |
|
15,025 |
|
3% |
|
|
|
Total installed base units |
|
48,849 |
|
49,300 |
|
(1%) |
|
|
|
48,849 |
|
49,300 |
|
(1%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yields (by geography)(3), in absolute $ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US & Canada |
|
$38.95 |
|
$27.88 |
|
40% |
|
|
|
$37.62 |
|
$24.34 |
|
55% |
|
|
|
Rest of world |
|
$5.39 |
|
$3.33 |
|
62% |
|
|
|
$4.42 |
|
$3.67 |
|
20% |
|
|
|
Total yields |
|
$28.27 |
|
$20.32 |
|
39% |
|
|
|
$27.11 |
|
$18.06 |
|
50% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global machine units sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New/expansion |
|
(11) |
|
666 |
|
NA |
|
|
|
3,049 |
|
3,046 |
|
—% |
|
|
|
Replacement |
|
7,377 |
|
3,662 |
|
101% |
|
|
|
20,758 |
|
11,616 |
|
79% |
|
|
|
Total machine units sold |
|
7,366 |
|
4,328 |
|
70% |
|
|
|
23,807 |
|
14,662 |
|
62% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US & Canada machine units sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New/expansion |
|
(452) |
|
668 |
|
NA |
|
|
|
1,335 |
|
2,753 |
|
(52%) |
|
|
|
Replacement |
|
5,547 |
|
2,636 |
|
110% |
|
|
|
14,759 |
|
8,009 |
|
84% |
|
|
|
Total machine units sold |
|
5,095 |
|
3,304 |
|
54% |
|
|
|
16,094 |
|
10,762 |
|
50% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Non-GAAP measure; see disclaimer on page 6 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, comparability on a Y/Y basis hindered due to fewer active units |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GLOBAL GAMING (Continued) |
|
Q4'21 |
|
Q4'20 |
|
Y/Y |
|
Constant |
|
FY'21 |
|
FY'20 |
|
Y/Y |
|
Constant |
|
Rest of world machine units sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New/expansion |
|
441 |
|
(2) |
|
NA |
|
|
|
1,714 |
|
293 |
|
485% |
|
|
|
Replacement |
|
1,830 |
|
1,026 |
|
78% |
|
|
|
5,999 |
|
3,607 |
|
66% |
|
|
|
Total machine units sold |
|
2,271 |
|
1,024 |
|
122% |
|
|
|
7,713 |
|
3,900 |
|
98% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average selling price (ASP), in absolute $ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US & Canada |
|
15,300 |
|
14,200 |
|
8% |
|
|
|
14,300 |
|
14,200 |
|
1% |
|
|
|
Rest of world |
|
13,400 |
|
10,400 |
|
29% |
|
|
|
13,500 |
|
12,400 |
|
9% |
|
|
|
Total ASP |
|
14,700 |
|
13,300 |
|
11% |
|
|
|
14,100 |
|
13,800 |
|
2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gaming systems revenue |
|
42 |
|
38 |
|
11% |
|
|
|
149 |
|
136 |
|
9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIGITAL & BETTING |
|
Q4'21 |
|
Q4'20 |
|
Y/Y |
|
Constant |
|
FY'21 |
|
FY'20 |
|
Y/Y |
|
Constant |
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service |
|
41 |
|
33 |
|
24% |
|
22% |
|
163 |
|
114 |
|
44% |
|
39% |
|
Product sales |
|
1 |
|
— |
|
347% |
|
348% |
|
1 |
|
1 |
|
55% |
|
55% |
|
Total revenue |
|
42 |
|
33 |
|
25% |
|
24% |
|
165 |
|
115 |
|
44% |
|
40% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
5 |
|
3 |
|
41% |
|
19% |
|
33 |
|
6 |
|
421% |
|
383% |
|
Adjusted EBITDA(1) |
|
9 |
|
8 |
|
12% |
|
3% |
|
48 |
|
22 |
|
116% |
|
105% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue (by geography) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US & Canada |
|
591 |
|
490 |
|
21% |
|
20% |
|
2,250 |
|
1,748 |
|
29% |
|
28% |
|
Italy |
|
305 |
|
266 |
|
15% |
|
20% |
|
1,300 |
|
862 |
|
51% |
|
46% |
|
Rest of world |
|
154 |
|
130 |
|
19% |
|
22% |
|
539 |
|
505 |
|
7% |
|
4% |
|
Total revenue |
|
1,050 |
|
885 |
|
19% |
|
21% |
|
4,089 |
|
3,116 |
|
31% |
|
29% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Non-GAAP measure; see disclaimer on page 6 and reconciliations to the most directly comparable GAAP measure in Appendix for further details |
||||||||||||||||
|
International Game Technology PLC |
|||||||
|
Consolidated Statements of Operations |
|||||||
|
($ in millions and shares in thousands, except per share amounts) |
|||||||
|
Unaudited |
|||||||
|
|
|
|
|
|
|
|
|
|
|
For the three months ended |
|
For the year ended |
||||
|
|
December 31, |
|
December 31, |
||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
Service revenue |
850 |
|
749 |
|
3,483 |
|
2,640 |
|
Product sales |
200 |
|
136 |
|
606 |
|
476 |
|
Total revenue |
1,050 |
|
885 |
|
4,089 |
|
3,115 |
|
|
|
|
|
|
|
|
|
|
Cost of services |
452 |
|
440 |
|
1,754 |
|
1,634 |
|
Cost of product sales |
124 |
|
103 |
|
377 |
|
346 |
|
Selling, general and administrative |
222 |
|
196 |
|
810 |
|
707 |
|
Research and development |
59 |
|
51 |
|
238 |
|
191 |
|
Restructuring |
7 |
|
(2) |
|
6 |
|
45 |
|
Goodwill impairment |
— |
|
— |
|
— |
|
296 |
|
Other operating expense |
— |
|
1 |
|
1 |
|
4 |
|
Total operating expenses |
864 |
|
789 |
|
3,187 |
|
3,223 |
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
186 |
|
96 |
|
902 |
|
(107) |
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
77 |
|
101 |
|
341 |
|
398 |
|
Foreign exchange (gain) loss, net |
(4) |
|
155 |
|
(66) |
|
309 |
|
Other expense (income), net |
2 |
|
(1) |
|
98 |
|
33 |
|
Total non-operating expenses |
75 |
|
255 |
|
373 |
|
740 |
|
Income (loss) from continuing operations before |
111 |
|
(159) |
|
529 |
|
(848) |
|
Provision for income taxes |
56 |
|
73 |
|
274 |
|
28 |
|
Income (loss) from continuing operations |
55 |
|
(232) |
|
255 |
|
(875) |
|
Income from discontinued operations, net of tax |
— |
|
12 |
|
24 |
|
37 |
|
Gain on sale of discontinued operations, net of tax |
— |
|
— |
|
391 |
|
— |
|
Income from discontinued operations |
— |
|
12 |
|
415 |
|
37 |
|
Net income (loss) |
55 |
|
(220) |
|
670 |
|
(839) |
|
Less: Net income attributable to non-controlling |
35 |
|
24 |
|
190 |
|
64 |
|
Less: Net (loss) income attributable to non-controlling |
— |
|
(2) |
|
(2) |
|
(5) |
|
Net income (loss) attributable to IGT PLC |
19 |
|
(242) |
|
482 |
|
(898) |
|
|
|
|
|
|
|
|
|
|
Net income (loss) from continuing operations |
0.10 |
|
(1.25) |
|
0.32 |
|
(4.59) |
|
Net income (loss) from continuing operations |
0.09 |
|
(1.25) |
|
0.31 |
|
(4.59) |
|
Net income (loss) attributable to IGT PLC per |
0.10 |
|
(1.18) |
|
2.35 |
|
(4.39) |
|
Net income (loss) attributable to IGT PLC per |
0.09 |
|
(1.18) |
|
2.33 |
|
(4.39) |
|
Weighted-average shares - basic |
204,673 |
|
204,857 |
|
204,954 |
|
204,725 |
|
Weighted-average shares - diluted |
206,996 |
|
204,857 |
|
206,795 |
|
204,725 |
|
International Game Technology PLC |
|
|||
|
Consolidated Balance Sheets |
|
|||
|
($ in millions) |
|
|||
|
Unaudited |
|
|||
|
|
|
|
|
|
|
|
December 31, |
|
||
|
|
2021 |
|
2020 |
|
|
Assets |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
591 |
|
907 |
|
|
Restricted cash and cash equivalents |
218 |
|
199 |
|
|
Trade and other receivables, net |
903 |
|
846 |
|
|
Inventories |
183 |
|
169 |
|
|
Other current assets |
589 |
|
480 |
|
|
Assets held for sale |
4 |
|
839 |
|
|
Total current assets |
2,487 |
|
3,440 |
|
|
Systems, equipment and other assets related to contracts, net |
937 |
|
1,068 |
|
|
Property, plant and equipment, net |
119 |
|
132 |
|
|
Operating lease right-of-use assets |
283 |
|
288 |
|
|
Goodwill |
4,656 |
|
4,713 |
|
|
Intangible assets, net |
1,413 |
|
1,577 |
|
|
Other non-current assets |
1,429 |
|
1,774 |
|
|
Total non-current assets |
8,836 |
|
9,552 |
|
|
Total assets |
11,322 |
|
12,992 |
|
|
|
|
|
|
|
|
Liabilities and shareholders' equity |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Accounts payable |
1,035 |
|
1,126 |
|
|
Current portion of long-term debt |
— |
|
393 |
|
|
Short-term borrowings |
52 |
|
— |
|
|
Other current liabilities |
828 |
|
846 |
|
|
Liabilities held for sale |
— |
|
250 |
|
|
Total current liabilities |
1,914 |
|
2,615 |
|
|
Long-term debt, less current portion |
6,477 |
|
7,857 |
|
|
Deferred income taxes |
368 |
|
333 |
|
|
Operating lease liabilities |
269 |
|
266 |
|
|
Other non-current liabilities |
323 |
|
360 |
|
|
Total non-current liabilities |
7,437 |
|
8,816 |
|
|
Total liabilities |
9,351 |
|
11,431 |
|
|
Commitments and contingencies |
|
|
|
|
|
IGT PLC's shareholders' equity |
1,282 |
|
777 |
|
|
Non-controlling interests |
689 |
|
784 |
|
|
Total shareholders' equity |
1,971 |
|
1,561 |
|
|
Total liabilities and shareholders' equity |
11,322 |
|
12,992 |
|
|
International Game Technology PLC |
|||||||
|
Consolidated Statements of Cash Flows |
|||||||
|
($ in millions) |
|||||||
|
Unaudited |
|||||||
|
|
|
|
|
|
|
|
|
|
|
For the three months ended |
|
For the year ended |
||||
|
|
December 31, |
|
December 31, |
||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
Cash flows from operating activities |
|
|
|
|
|
|
|
|
Net income (loss) |
55 |
|
(220) |
|
670 |
|
(839) |
|
Less: Income from discontinued operations |
— |
|
12 |
|
415 |
|
37 |
|
Adjustments to reconcile net income (loss) from continuing operations to net cash provided by |
|
|
|
|
|
|
|
|
Depreciation |
79 |
|
90 |
|
325 |
|
355 |
|
Amortization of upfront license fees |
53 |
|
55 |
|
216 |
|
210 |
|
Amortization |
51 |
|
51 |
|
201 |
|
211 |
|
Loss on extinguishment of debt |
— |
|
— |
|
92 |
|
28 |
|
Deferred income taxes |
(17) |
|
28 |
|
38 |
|
(78) |
|
Stock-based compensation |
13 |
|
4 |
|
35 |
|
(7) |
|
Debt issuance cost amortization |
4 |
|
6 |
|
19 |
|
21 |
|
Goodwill impairment |
— |
|
— |
|
— |
|
296 |
|
Gain on sale of assets |
(3) |
|
— |
|
(9) |
|
— |
|
Foreign exchange (gain) loss, net |
(4) |
|
155 |
|
(66) |
|
309 |
|
Other non-cash items, net |
2 |
|
(1) |
|
7 |
|
(2) |
|
Changes in operating assets and liabilities, excluding the effects of acquisitions and |
|
|
|
|
|
|
|
|
Trade and other receivables |
89 |
|
(95) |
|
(95) |
|
74 |
|
Inventories |
(1) |
|
26 |
|
(13) |
|
17 |
|
Accounts payable |
41 |
|
49 |
|
(36) |
|
5 |
|
Other assets and liabilities |
37 |
|
116 |
|
41 |
|
31 |
|
Net cash provided by operating activities from continuing operations |
396 |
|
251 |
|
1,010 |
|
595 |
|
Net cash provided by (used in) operating activities from discontinued operations |
— |
|
4 |
|
(31) |
|
271 |
|
Net cash provided by operating activities |
396 |
|
255 |
|
978 |
|
866 |
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
|
|
Capital expenditures |
(71) |
|
(50) |
|
(238) |
|
(255) |
|
Proceeds from sale of assets |
6 |
|
3 |
|
21 |
|
9 |
|
Other |
— |
|
— |
|
1 |
|
12 |
|
Net cash used in investing activities from continuing operations |
(64) |
|
(48) |
|
(216) |
|
(233) |
|
Net cash (used in) provided by investing activities from discontinued operations |
— |
|
(14) |
|
852 |
|
(35) |
|
Net cash (used in) provided by investing activities |
(64) |
|
(62) |
|
636 |
|
(269) |
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
|
|
Principal payments on long-term debt |
— |
|
— |
|
(2,846) |
|
(959) |
|
Payments in connection with the extinguishment of debt |
— |
|
— |
|
(85) |
|
(25) |
|
Net receipts from (payments of) financial liabilities |
2 |
|
(29) |
|
(50) |
|
67 |
|
Payments of debt issuance costs |
— |
|
— |
|
(14) |
|
(22) |
|
Net (repayments of) proceeds from Revolving Credit Facilities |
— |
|
(175) |
|
17 |
|
(29) |
|
Net proceeds from (payments of) short-term borrowings |
33 |
|
— |
|
51 |
|
(7) |
|
Proceeds from long-term debt |
— |
|
— |
|
1,339 |
|
750 |
|
Repurchases of common stock |
(41) |
|
— |
|
(41) |
|
— |
|
Dividends paid |
(41) |
|
— |
|
(41) |
|
(41) |
|
Dividends paid - non-controlling interests |
(2) |
|
— |
|
(91) |
|
(136) |
|
Return of capital - non-controlling interests |
(34) |
|
(32) |
|
(127) |
|
(32) |
|
Capital increase - non-controlling interests |
— |
|
5 |
|
12 |
|
8 |
|
Other |
(10) |
|
(3) |
|
(23) |
|
(11) |
|
Net cash used in financing activities |
(94) |
|
(234) |
|
(1,898) |
|
(438) |
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents |
238 |
|
(40) |
|
(284) |
|
159 |
|
Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash |
(17) |
|
30 |
|
(37) |
|
76 |
|
Cash and cash equivalents and restricted cash and cash equivalents at the beginning of the |
588 |
|
1,140 |
|
1,129 |
|
894 |
|
Cash and cash equivalents and restricted cash and cash equivalents at the end of the period |
808 |
|
1,129 |
|
808 |
|
1,129 |
|
Less: Cash and cash equivalents and restricted cash and cash equivalents of discontinued |
— |
|
23 |
|
— |
|
23 |
|
Cash and cash equivalents and restricted cash and cash equivalents at the end of the period of |
808 |
|
1,106 |
|
808 |
|
1,106 |
|
|
|
|
|
|
|
|
|
|
Supplemental Cash Flow Information: |
|
|
|
|
|
|
|
|
Interest paid |
46 |
|
37 |
|
369 |
|
410 |
|
Income taxes paid |
85 |
|
51 |
|
188 |
|
89 |
|
International Game Technology PLC |
||||
|
Net Debt |
||||
|
($ in millions) |
||||
|
Unaudited |
||||
|
|
|
|
|
|
|
|
|
December 31, |
||
|
|
|
2021 |
|
2020 |
|
6.250% Senior Secured U.S. Dollar Notes due February 2022 |
|
— |
|
1,004 |
|
4.750% Senior Secured Euro Notes due February 2023 |
|
— |
|
1,038 |
|
5.350% Senior Secured U.S. Dollar Notes due October 2023 |
|
61 |
|
61 |
|
3.500% Senior Secured Euro Notes due July 2024 |
|
564 |
|
610 |
|
6.500% Senior Secured U.S. Dollar Notes due February 2025 |
|
1,093 |
|
1,092 |
|
4.125% Senior Secured U.S. Dollar Notes due April 2026 |
|
744 |
|
— |
|
3.500% Senior Secured Euro Notes due June 2026 |
|
844 |
|
913 |
|
6.250% Senior Secured U.S. Dollar Notes due January 2027 |
|
745 |
|
744 |
|
2.375% Senior Secured Euro Notes due April 2028 |
|
562 |
|
608 |
|
5.250% Senior Secured U.S. Dollar Notes due January 2029 |
|
744 |
|
743 |
|
Senior Secured Notes |
|
5,357 |
|
6,813 |
|
|
|
|
|
|
|
Euro Term Loan Facilities due January 2027 |
|
1,121 |
|
1,044 |
|
Long-term debt, less current portion |
|
6,477 |
|
7,857 |
|
|
|
|
|
|
|
Euro Term Loan Facilities due January 2027 |
|
— |
|
393 |
|
Current portion of long-term debt |
|
— |
|
393 |
|
|
|
|
|
|
|
Short-term borrowings |
|
52 |
|
— |
|
Total debt |
|
6,529 |
|
8,250 |
|
|
|
|
|
|
|
Less: Cash and cash equivalents |
|
591 |
|
907 |
|
Less: Debt issuance costs, net - Revolving Credit Facilities due July 2024 |
|
17 |
|
24 |
|
Net debt |
|
5,922 |
|
7,319 |
|
|
|
|
|
|
|
Note: Net debt is a non-GAAP financial measure |
|
|
|
|
|
International Game Technology PLC |
||||||||||||
|
Reconciliation of Non-GAAP Financial Measures |
||||||||||||
|
($ in millions) |
||||||||||||
|
Unaudited |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended December 31, 2021 |
||||||||||
|
|
|
Global |
|
Global |
|
Digital & |
|
Business |
|
Corporate |
|
Total IGT |
|
Income from continuing operations |
|
|
|
|
|
|
|
|
|
|
|
55 |
|
Provision for income taxes |
|
|
|
|
|
|
|
|
|
|
|
56 |
|
Interest expense, net |
|
|
|
|
|
|
|
|
|
|
|
77 |
|
Foreign exchange gain, net |
|
|
|
|
|
|
|
|
|
|
|
(4) |
|
Other non-operating expense, net |
|
|
|
|
|
|
|
|
|
|
|
2 |
|
Operating income (loss) |
|
217 |
|
36 |
|
5 |
|
258 |
|
(72) |
|
186 |
|
Depreciation |
|
47 |
|
29 |
|
4 |
|
79 |
|
— |
|
79 |
|
Amortization - service revenue (1) |
|
53 |
|
— |
|
— |
|
53 |
|
— |
|
53 |
|
Amortization - non-purchase accounting |
|
9 |
|
1 |
|
— |
|
11 |
|
1 |
|
12 |
|
Amortization - purchase accounting |
|
— |
|
— |
|
— |
|
— |
|
39 |
|
39 |
|
Restructuring |
|
8 |
|
(4) |
|
— |
|
4 |
|
3 |
|
7 |
|
Stock-based compensation |
|
3 |
|
4 |
|
— |
|
7 |
|
6 |
|
13 |
|
Adjusted EBITDA |
|
336 |
|
66 |
|
9 |
|
411 |
|
(24) |
|
387 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities - continuing |
|
|
|
|
|
|
|
|
|
|
|
396 |
|
Capital expenditures |
|
|
|
|
|
|
|
|
|
|
|
(71) |
|
Free Cash Flow |
|
|
|
|
|
|
|
|
|
|
|
326 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes amortization of upfront license fees |
|
|
|
|
|
|
|
|
||||
|
International Game Technology PLC |
||||||||||||
|
Reconciliation of Non-GAAP Financial Measures |
||||||||||||
|
($ in millions) |
||||||||||||
|
Unaudited |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended December 31, 2020 |
||||||||||
|
|
|
Global |
|
Global |
|
Digital & |
|
Business |
|
Corporate |
|
Total IGT |
|
Loss from continuing operations |
|
|
|
|
|
|
|
|
|
|
|
(232) |
|
Provision for income taxes |
|
|
|
|
|
|
|
|
|
|
|
73 |
|
Interest expense, net |
|
|
|
|
|
|
|
|
|
|
|
101 |
|
Foreign exchange loss, net |
|
|
|
|
|
|
|
|
|
|
|
155 |
|
Other non-operating income, net |
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Operating income (loss) |
|
195 |
|
(42) |
|
3 |
|
156 |
|
(60) |
|
96 |
|
Depreciation |
|
54 |
|
32 |
|
4 |
|
90 |
|
— |
|
90 |
|
Amortization - service revenue (1) |
|
55 |
|
— |
|
— |
|
55 |
|
— |
|
55 |
|
Amortization - non-purchase accounting |
|
8 |
|
2 |
|
— |
|
10 |
|
1 |
|
11 |
|
Amortization - purchase accounting |
|
— |
|
— |
|
— |
|
— |
|
40 |
|
40 |
|
Restructuring |
|
— |
|
(2) |
|
1 |
|
(2) |
|
— |
|
(2) |
|
Stock-based compensation |
|
1 |
|
1 |
|
— |
|
2 |
|
2 |
|
4 |
|
Other (2) |
|
— |
|
— |
|
— |
|
— |
|
1 |
|
1 |
|
Adjusted EBITDA |
|
313 |
|
(10) |
|
8 |
|
311 |
|
(16) |
|
295 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities - continuing |
|
|
|
|
|
|
|
|
|
|
|
251 |
|
Capital expenditures |
|
|
|
|
|
|
|
|
|
|
|
(50) |
|
Free Cash Flow |
|
|
|
|
|
|
|
|
|
|
|
201 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes amortization of upfront license fees |
|
|
|
|
|
|
|
|
||||
|
(2) Primarily includes transaction-related costs |
|
|
|
|
|
|
|
|
||||
|
International Game Technology PLC |
||||||||||||
|
Reconciliation of Non-GAAP Financial Measures |
||||||||||||
|
($ in millions) |
||||||||||||
|
Unaudited |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended December 31, 2021 |
||||||||||
|
|
|
Global |
|
Global |
|
Digital & |
|
Business |
|
Corporate |
|
Total IGT |
|
Income from continuing operations |
|
|
|
|
|
|
|
|
|
|
|
255 |
|
Provision for income taxes |
|
|
|
|
|
|
|
|
|
|
|
274 |
|
Interest expense, net |
|
|
|
|
|
|
|
|
|
|
|
341 |
|
Foreign exchange gain, net |
|
|
|
|
|
|
|
|
|
|
|
(66) |
|
Other non-operating expense, net |
|
|
|
|
|
|
|
|
|
|
|
98 |
|
Operating income (loss) |
|
1,088 |
|
43 |
|
33 |
|
1,164 |
|
(262) |
|
902 |
|
Depreciation |
|
191 |
|
121 |
|
15 |
|
326 |
|
(1) |
|
325 |
|
Amortization - service revenue (1) |
|
216 |
|
— |
|
— |
|
216 |
|
— |
|
216 |
|
Amortization - non-purchase accounting |
|
34 |
|
5 |
|
— |
|
40 |
|
3 |
|
43 |
|
Amortization - purchase accounting |
|
— |
|
— |
|
— |
|
— |
|
158 |
|
158 |
|
Restructuring |
|
8 |
|
(4) |
|
(1) |
|
3 |
|
2 |
|
6 |
|
Stock-based compensation |
|
8 |
|
8 |
|
1 |
|
17 |
|
18 |
|
35 |
|
Other (2) |
|
— |
|
— |
|
— |
|
— |
|
1 |
|
1 |
|
Adjusted EBITDA |
|
1,545 |
|
173 |
|
48 |
|
1,766 |
|
(80) |
|
1,686 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities - continuing |
|
|
|
|
|
|
|
|
|
|
|
1,010 |
|
Capital expenditures |
|
|
|
|
|
|
|
|
|
|
|
(238) |
|
Free Cash Flow |
|
|
|
|
|
|
|
|
|
|
|
771 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes amortization of upfront license fees |
|
|
|
|
|
|
|
|
||||
|
(2) Primarily includes transaction-related costs |
|
|
|
|
|
|
|
|
||||
|
|
||||||||||||
|
International Game Technology PLC |
||||||||||||
|
Reconciliation of Non-GAAP Financial Measures |
||||||||||||
|
($ in millions) |
||||||||||||
|
Unaudited |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended December 31, 2020 |
||||||||||
|
|
|
Global |
|
Global |
|
Digital & |
|
Business |
|
Corporate |
|
Total IGT |
|
Loss from continuing operations |
|
|
|
|
|
|
|
|
|
|
|
(875) |
|
Provision for income taxes |
|
|
|
|
|
|
|
|
|
|
|
28 |
|
Interest expense, net |
|
|
|
|
|
|
|
|
|
|
|
398 |
|
Foreign exchange loss, net |
|
|
|
|
|
|
|
|
|
|
|
309 |
|
Other non-operating expense, net |
|
|
|
|
|
|
|
|
|
|
|
33 |
|
Operating income (loss) |
|
642 |
|
(212) |
|
6 |
|
436 |
|
(544) |
|
(107) |
|
Goodwill impairment |
|
— |
|
— |
|
— |
|
— |
|
296 |
|
296 |
|
Depreciation |
|
201 |
|
138 |
|
14 |
|
354 |
|
1 |
|
355 |
|
Amortization - service revenue (1) |
|
210 |
|
— |
|
— |
|
210 |
|
— |
|
210 |
|
Amortization - non-purchase accounting |
|
30 |
|
7 |
|
— |
|
38 |
|
3 |
|
41 |
|
Amortization - purchase accounting |
|
— |
|
— |
|
— |
|
— |
|
170 |
|
170 |
|
Restructuring |
|
5 |
|
32 |
|
2 |
|
39 |
|
6 |
|
45 |
|
Stock-based compensation |
|
(3) |
|
(4) |
|
— |
|
(7) |
|
— |
|
(7) |
|
Other (2) |
|
— |
|
— |
|
— |
|
— |
|
4 |
|
4 |
|
Adjusted EBITDA |
|
1,086 |
|
(38) |
|
22 |
|
1,070 |
|
(62) |
|
1,008 |
|
|
|
|
|
|
|
|
|
|
|
|
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Cash flows from operating activities - continuing |
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595 |
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Capital expenditures |
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(255) |
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Free Cash Flow |
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340 |
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(1) Includes amortization of upfront license fees |
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(2) Primarily includes transaction-related costs |
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View original content to download multimedia:https://www.prnewswire.com/news-releases/international-game-technology-plc-reports-fourth-quarter-and-full-year-2021-results-301492207.html
SOURCE International Game Technology PLC
