IGT
$25.45
International Game Technology
$1.25
5.17%
Earnings Details
3rd Quarter September 2021
Tuesday, November 9, 2021 6:40:00 AM
Tweet Share Watch
Summary

International Game Technology Misses

International Game Technology (IGT) reported 3rd Quarter September 2021 earnings of $0.31 per share on revenue of $984.0 million. The consensus earnings estimate was $0.21 per share on revenue of $974.9 million. The Earnings Whisper number was $0.35 per share. Revenue grew 0.3% on a year-over-year basis.

The company said it expects 2021 revenue of approximately $4.10 billion. The current consensus revenue estimate is $4.02 billion for the year ending December 31, 2021.

International Game Technology is a gaming company specializing in the design, development, manufacturing and marketing of casino-style gaming equipment, systems technology and game content across multiple platforms.

Results
Reported Earnings
$0.31
Earnings Whisper
$0.35
Consensus Estimate
$0.21
Reported Revenue
$984.0 Mil
Revenue Estimate
$974.9 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

International Game Technology PLC Reports Third Quarter 2021 Results

LONDON, Nov. 9, 2021 /PRNewswire/ -- International Game Technology PLC ("IGT") (NYSE:IGT) today reported financial results for the third quarter ended September 30, 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.

"Broad-based momentum across our Lottery, Gaming, and Digital & Betting activities drove significant improvement in key financial and performance metrics in the third quarter," said Marco Sala, CEO of IGT. "Revenue grew over 20% and operating income more than doubled, highlighting the strength of our portfolio. Based on our excellent year-to-date results and our solid financial condition, the Board reinstated a quarterly cash dividend, signaling their confidence in the Company's prospects."

"We are supporting strong top-line growth with strategic investments in the business while still making good progress on optimizing our cost structure," said Max Chiara, CFO of IGT. "Achieving our goal of  reducing net debt leverage below 4.0x was a big accomplishment in the quarter. We look forward to sharing our strategy, long-term growth initiatives, and capital allocation plans during our upcoming investor day on November 16, 2021."

Overview of Consolidated Third Quarter 2021 Results



Quarter Ended

Y/Y
Change
(%)

Constant
Currency
Change
(%)

All amounts from continuing operations

September 30,


2021


2020

($ in millions, unless otherwise noted)






GAAP Financials:






Revenue






 Global Lottery 

652


570

14%

15%

 Global Gaming

289


216

34%

34%

 Digital & Betting

43


31

37%

35%

Total revenue

984


816

21%

20%







Operating income (loss)






Global Lottery

234


196

19%

20%

Global Gaming

31


(56)

NA

NA

Digital & Betting

12


6

100%

90%

Corporate support expense

(26)


(17)

(54)%

(54)%

Other(1)

(40)


(42)

5%

5%

Total operating income (loss)

212


87

144%

145%

Operating Income margin

22%


11%









Net cash provided by operating activities

113


191

(41)%








Cash and cash equivalents

435


936

(53)%








Non-GAAP Financial Measures:






Adjusted EBITDA






Global Lottery

347


309

12%

13%

Global Gaming

64


(18)

NA

NA

Digital & Betting

15


9

66%

59%

Corporate support expense

(19)


(13)

(46)%

(46)%

Total Adjusted EBITDA

407


287

42%

42%

Adjusted EBITDA margin

41%


35%









Free cash flow

66


126

(48)%








Net debt(2)

6,109


7,250

(16)%









(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

Key Highlights:

  • Sustained player demand in Global Lottery propels strong results; profit and related margins remain among the strongest in segment history
  • Global Gaming achieves highest quarterly revenue and profit levels in seven quarters as progressive recovery continues
  • Digital & Betting rapidly gaining scale with significantly higher revenue and profit driven by new and existing markets
  • Strong year-to-date operating cash flow of $613 million and free cash flow of $445 million
  • Successfully amended and extended term loan facility, adding an ESG margin adjustment demonstrating IGT's commitment to sustainability
  • Awarded 10-year lottery contract with Connecticut Lottery Corporation following a competitive procurement
  • Recently signed seven-year contract with La Française des Jeux, operator of the French National Lottery, to upgrade its lottery central system to IGT's advanced Aurora™ platform featuring enhanced, omnichannel capabilities
  • Strengthened Digital & Betting leadership with appointment of Joe Asher as President of Sports Betting and Gil Rotem as President of iGaming
  • Announced several turnkey sports betting solutions, including full retail and mobile services for Angel Of The Winds Casino Resort, Oneida Casino, and Snoqualmie Casino
  • Extended cashless momentum with agreements to deploy Resort Wallet and IGTPay at Agua Caliente Casino and Indigo Sky properties
  • Won several industry awards, including:
    • "Technology Provider of the Year" and "Lottery Product of the Year" at 2021 International Gaming Awards
    • "Product Innovation of the Year" for Resort Wallet and IGTPay cashless technologies at 2021 Global Gaming Awards Las Vegas
    • "Best Consumer-Service Technology" for CrystalFlex sports betting terminal at 2021 GGB Gaming & Technology Awards

Financial highlights:

Consolidated revenue of $984 million, up 21% compared to the prior year

  • Global Lottery revenue rises 14% to $652 million, as sustained momentum drives 9% global same-store sales growth
  • Global Gaming revenue of $289 million, up from $216 million in the prior year and $274 million sequentially as market recovery progresses
  • Digital & Betting revenue increases 37% to $43 million, with double-digit growth across activities

Operating income of $212 million, up 144% from the prior year

  • High profit flow-through of Global Lottery same-store sales growth
  • Mix of high-margin Italy lottery sales
  • Strong operating leverage across businesses
  • Disciplined cost management and benefits from OPtiMa structural cost-savings program

Net interest expense of $79 million compared to $101 million in the prior year, driven by lower average debt balances and interest rates

Provision for income taxes of $37 million compared to a benefit from income taxes of $41 million in the prior year, on significant increase in operating profitability

Net income of $101 million versus net loss of $129 million in the prior-year period, driven by higher revenue and operating profit, and a reduction in foreign exchange losses

Adjusted EBITDA of $407 million compared to $287 million in the prior-year period; Adjusted EBITDA margin of 41%, among the highest level in Company history

Net debt of $6.1 billion, down $1.2 billion from $7.3 billion at December 31, 2020; Net debt leverage of 3.8x, down from 6.4x at December 31, 2020, driven by strong cash flow generation and proceeds from sale of Italy gaming businesses, including €100 million installment received during Q3'21

Cash and Liquidity Update

  • Total liquidity of $2.2 billion as of September 30, 2021; $435 million in unrestricted cash and $1.8 billion in additional borrowing capacity
  • Executed amendment and extension of Term Loan Facility
    • Enhancing credit profile, increasing liquidity, and extending debt maturities
    • Includes ESG margin adjustment, highlighting commitment to sustainability; achieved higher ESG rating in Q3'21, lowering borrowing costs

Other Developments
The Company's Board of Directors declared a quarterly cash dividend of $0.20 per common share

  • Ex-dividend date of November 22, 2021
  • Record date of November 23, 2021
  • Payment date of December 7, 2021

Investor Day Details
IGT will host a virtual Investor Day on Tuesday, November 16, 2021, at 8:30 a.m. EST

  • Senior management will present an in-depth review of the Company's business strategy, long-term growth prospects, and capital allocation plans
  • A live webcast is available under "Events Calendar" on IGT's Investor Relations website at www.IGT.com
  • Registration for the event is required and can be completed in advance
  • A replay will also be available on the website following the call

Raising Full-year 2021 Outlook (Continuing operations)

  • Revenue of ~$4.1 billion
  • Updating operating income outlook to ~$900 million from ~$800 million
  • Depreciation and amortization of ~$700 - $725 million
  • Cash from operations of ~$850 - $900 million
  • Capital expenditures below $300 million
  • Does not factor in any additional impact from COVID-19 restrictions

Earnings Conference Call and Webcast 
November 9, 2021, 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 11,000 employees. For more information, please visit www.IGT.com.

Cautionary Statement Regarding Forward-Looking Statements
This news release may contain forward-looking statements (including within the meaning of the Private Securities Litigation Reform Act of 1995) concerning 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 of 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. Adjusted EBITDA – discontinued operations represents income (loss) from discontinued operations (a GAAP measure) before income taxes, interest expense, depreciation and amortization, and gain on sale of discontinued operations. Adjusted EBITDA – combined represents Total Adjusted EBITDA plus Adjusted EBITDA – discontinued operations. Management believes that the non-GAAP measures just mentioned are useful in providing period-to-period comparisons of the results of the Company's ongoing operational performance.

Net debt is a non-GAAP financial measure that represents debt (a GAAP measure, calculated as long-term obligations plus short-term borrowings) minus capitalized debt issuance costs and cash and cash and 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 is a non-GAAP financial measure that represents the ratio of Net debt as of a particular balance sheet date to Adjusted EBITDA for the last twelve months ("LTM") prior to such date. 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


Q3'21


Q3'20


Y/Y Change

(%)


Constant
Currency
Change (%)
(1)


Q2'21

Sequential

Change as

Reported

(%)

Revenue













Service












Operating and facilities management contracts


590


525


12%


12%


675

(13)%

Upfront license fee amortization


(51)


(52)


1%


—%


(53)

2%

Operating and facilities management contracts, net


539


474


14%


14%


623

(13)%

Other


78


76


4%


5%


79

(1)%

Total service revenue


617


549


12%


13%


702

(12)%













Product sales


35


20


71%


70%


23

51%

Total revenue


652


570


14%


15%


725

(10)%













Operating income


234


196


19%


20%


300

(22)%

Adjusted EBITDA(1)


347


309


12%


13%


414

(16)%













Global same-store sales growth (%)












Instant ticket & draw games


7.1%


10.6%






34.9%


Multi-jurisdiction jackpots


42.2%


(14.3)%






28.8%


Total


9.3%


8.7%






34.5%














North America & Rest of world same-store sales growth (%)












Instant ticket & draw games


4.6%


15.0%






20.5%


Multi-jurisdiction jackpots


42.2%


(14.3)%






28.8%


Total


7.5%


12.1%






21.1%














Italy same-store sales growth (%)












Instant ticket & draw games


16.3%


(3.5)%






115.2%














(1) Non-GAAP measures; see disclaimer and reconciliations to the most directly comparable GAAP measure included herein










































Q3'21


Q3'20


Y/Y Change

(%)


Constant

Currency

Change (%)(1)


Q2'21


GLOBAL GAMING



Sequential

Change as

Reported

(%)

Revenue












Service












Terminal


116


81


44%


43%


108

8%

Systems, software, and other


56


51


8%


8%


48

16%

Total service revenue


172


133


30%


30%


156

10%













Product sales












Terminal


81


49


64%


63%


86

(6)%

Other


36


34


7%


6%


31

14%

Total product sales revenue


117


83


41%


40%


118

(1)%

Total revenue


289


216


34%


34%


274

6%













Operating income (loss)


31


(56)


NA


NA


1

NM

Adjusted EBITDA(1)


64


(18)


NA


NA


35

80%













Installed base units












Casino


48,434


48,280


—%




47,964


Casino - L/T lease(2)


1,144


1,102


4%




1,136


Total installed base units


49,578


49,382


—%




49,100














Installed base units (by geography)












US & Canada


34,347


34,584


(1)%




33,820


Rest of world


15,231


14,798


3%




15,280


Total installed base units


49,578


49,382


—%




49,100














Yields (by geography)(3), in absolute $












US & Canada


$40.79


$26.79


52%




$38.41


Rest of world


$5.64


$4.31


31%




$4.03


Total yields


$29.67


$19.88


49%




$27.49














Global machine units sold












New/expansion


1,009


818


23%




1,167


Replacement


4,692


2,853


64%




5,168


Total machine units sold


5,701


3,671


55%




6,335














US & Canada machine units sold












New/expansion


524


667


(21)%




643


Replacement


3,451


2,007


72%




3,485


Total machine units sold


3,975


2,674


49%




4,128














(1) Non-GAAP measures; see disclaimer and reconciliations to the most directly comparable GAAP measure included herein




(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








































Q3'21


Q3'20


Y/Y Change

(%)




Q2'21


GLOBAL GAMING (Continued)



Constant

Currency

Change (%)(1)

Sequential

Change as

Reported

(%)

Rest of world machine units sold












New/expansion


485


151


221%




524


Replacement


1,241


846


47%




1,683


Total machine units sold


1,726


997


73%




2,207














Average Selling Price (ASP), in absolute $












US & Canada


$13,900


$13,800


1%




$13,900


Rest of world


$14,400


$12,100


19%




$12,700


Total ASP


$14,100


$13,300


6%




$13,400














Gaming Systems Revenue


38


31


22%




39




















































Q3'21


Q3'20


Y/Y Change

(%)




Q2'21


DIGITAL & BETTING



Constant

Currency

Change (%)(1)

Sequential

Change as

Reported

(%)

Revenue












Service


43


31


39%


36%


43

—%

Product sales




(66)%


(66)%


(0)

NA

Total revenue


43


31


37%


35%


42

2%













Operating income


12


6


100%


90%


9

35%

Adjusted EBITDA(1)


15


9


66%


59%


13

18%

























CONSOLIDATED












Revenue (by geography)












US & Canada


556


443


26%


25%


561

(1)%

Italy


294


248


18%


19%


353

(17)%

Rest of world


134


125


7%


6%


127

5%

Total revenue


984


816


21%


20%


1,041

(5)%

























(1) Non-GAAP measures; see disclaimer and reconciliations to the most directly comparable GAAP measure included herein
















 

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 nine months ended


September 30,


September 30,


2021


2020


2021


2020

Service revenue

832



713



2,634



1,891


Product sales

152



104



406



340


Total revenue

984



816



3,039



2,230










Cost of services

422



418



1,302



1,194


Cost of product sales

93



83



253



243


Selling, general and administrative

195



179



588



511


Research and development

63



48



179



140


Goodwill impairment







296


Restructuring

(1)





(1)



47


Other operating expense



1



1



3


Total operating expenses

772



730



2,323



2,434










Operating income (loss)

212



87



716



(204)










Interest expense, net

79



101



264



297


Foreign exchange (gain) loss, net

(6)



149



(62)



153


Other expense, net

1



6



96



34


Total non-operating expenses

74



256



298



485


Income (loss) from continuing operations before
provision for (benefit from) income taxes

138



(170)



418



(689)


Provision for (benefit from) income taxes

37



(41)



217



(45)


Income (loss) from continuing operations

101



(129)



200



(644)


Income from discontinued operations, net of tax



26



24



25


Gain on sale of discontinued operations, net of tax





391




Income from discontinued operations



26



415



25


Net income (loss)

101



(102)



615



(619)


Less: Net income attributable to non-controlling interests
from continuing operations

36



25



155



40


Less: Net income (loss) attributable to non-controlling
interests from discontinued operations



1



(2)



(3)


Net income (loss) attributable to IGT PLC

65



(128)



462



(656)










Net income (loss) from continuing operations
attributable to IGT PLC per common share - basic

0.32



(0.75)



0.22



(3.34)


Net income (loss) from continuing operations
attributable to IGT PLC per common share - diluted

0.31



(0.75)



0.22



(3.34)


Net income (loss) attributable to IGT PLC per
common share - basic

0.32



(0.62)



2.25



(3.20)


Net income (loss) attributable to IGT PLC per
common share - diluted

0.31



(0.62)



2.24



(3.20)


Weighted-average shares - basic

205,188



204,857



205,048



204,680


Weighted-average shares - diluted

206,899



204,857



206,728



204,680


 

International Game Technology PLC

Consolidated Balance Sheets

($ in millions)

Unaudited








September 30,


December 31,



2021


2020

Assets





Current assets:





Cash and cash equivalents


435



907


Restricted cash and cash equivalents


152



199


Trade and other receivables, net


1,017



846


Inventories


181



169


Other current assets


607



480


Assets held for sale


4



839


Total current assets


2,396



3,440


Systems, equipment and other assets related to contracts, net


956



1,068


Property, plant and equipment, net


118



132


Operating lease right-of-use assets


283



288


Goodwill


4,670



4,713


Intangible assets, net


1,453



1,577


Other non-current assets


1,500



1,774


Total non-current assets


8,981



9,552


Total assets


11,376



12,992







Liabilities and shareholders' equity





Current liabilities:





Accounts payable


1,003



1,126


Current portion of long-term debt




393


Other current liabilities


825



847


Liabilities held for sale




250


Total current liabilities


1,828



2,615


Long-term debt, less current portion


6,544



7,857


Deferred income taxes


392



333


Operating lease liabilities


269



266


Other non-current liabilities


322



360


Total non-current liabilities


7,528



8,816


Total liabilities


9,355



11,431


Commitments and contingencies





IGT PLC's shareholders' equity


1,317



777


Non-controlling interests


704



784


Shareholders' equity


2,021



1,561


Total liabilities and shareholders' equity


11,376



12,992


 

International Game Technology PLC

Consolidated Statements of Cash Flows

($ in millions)

Unaudited


For the three months ended


For the nine months ended


September 30,


September 30,


2021


2020


2021


2020

Cash flows from operating activities








Net income (loss)

101


(102)


615


(619)

Less: Income from discontinued operations


26


415


25

Adjustments to reconcile net income (loss) from continuing operations to net cash provided by
operating activities from continuing operations:








Depreciation

81


91


246


265

Amortization of upfront license fees

54


54


164


156

Amortization

51


53


150


160

Stock-based compensation

11


1


22


(11)

Debt issuance cost amortization

4


5


15


16

Loss on extinguishment of debt

1



92


28

Goodwill impairment




296

Foreign exchange (gain) loss, net

(6)


149


(62)


153

Deferred income taxes

(27)


(70)


56


(107)

Other non-cash items, net

(6)


1


(1)


Changes in operating assets and liabilities, excluding the effects of acquisitions and dispositions:








Trade and other receivables

(50)


81


(184)


169

Inventories

(17)


(3)


(12)


(9)

Accounts payable

(101)


(25)


(77)


(45)

Other assets and liabilities

18


(18)


4


(85)

Net cash provided by operating activities from continuing operations

113


191


613


344

Net cash provided by (used in) operating activities from discontinued operations


95


(31)


267

Net cash provided by operating activities

113


285


582


610









Cash flows from investing activities








Capital expenditures

(47)


(65)


(168)


(204)

Proceeds from sale of assets

3


1


15


6

Other


2


1


12

Net cash used in investing activities from continuing operations

(44)


(62)


(152)


(186)

Net cash provided by (used in) investing activities from discontinued operations

118


(1)


852


(21)

Net cash provided by (used in) investing activities

74


(63)


700


(207)









Cash flows from financing activities








Net (repayments of) proceeds from Revolving Credit Facilities

(498)


(579)


17


146

Principal payments on long-term debt

(424)



(2,846)


(959)

Net (payments of) receipts from financial liabilities

(55)


59


(52)


96

Payments of debt issuance costs

(7)


(2)


(14)


(21)

Payments in connection with the extinguishment of debt



(85)


(25)

Net proceeds from (repayments of) short-term borrowings

16


(83)


19


(8)

Proceeds from long-term debt

589



1,339


750

Dividends paid




(41)

Dividends paid - non-controlling interests


(45)


(89)


(136)

Return of capital - non-controlling interests

(31)



(92)


Capital increase - non-controlling interests

1


1


12


3

Other

(3)


(3)


(12)


(9)

Net cash used in financing activities

(412)


(650)


(1,804)


(204)









Net (decrease) increase in cash and cash equivalents and restricted cash and cash equivalents

(225)


(428)


(522)


200

Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash
equivalents

(6)


38


(19)


46

Cash and cash equivalents and restricted cash and cash equivalents at the beginning of the period

819


1,530


1,129


894

Cash and cash equivalents and restricted cash and cash equivalents at the end of the period

588


1,140


588


1,140

Less: Cash and cash equivalents and restricted cash and cash equivalents of discontinued operations


19



19

Cash and cash equivalents and restricted cash and cash equivalents at the end of the period of
continuing operations

588


1,121


588


1,121









Supplemental Cash Flow Information








Interest paid

104


141


323


372

Income taxes paid

64


20


104


38

 

International Game Technology PLC

Net Debt

($ in millions)

Unaudited








September 30,


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


576



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


743




3.500% Senior Secured Euro Notes due June 2026


863



913


6.250% Senior Secured U.S. Dollar Notes due January 2027


745



744


2.375% Senior Secured Euro Notes due April 2028


575



608


5.250% Senior Secured U.S. Dollar Notes due January 2029


744



743


Senior Secured Notes


5,399



6,813







Euro Term Loan Facilities due January 2027


1,145



1,044


Long-term debt, less current portion


6,544



7,857







Euro Term Loan Facility due January 2027




393


Current portion of long-term debt




393







Short-term borrowings


19




Total debt


6,563



8,250







Less: Cash and cash equivalents


435



907


Less: Debt issuance costs, net - Revolving Credit Facilities due July 2024


18



24


Net debt


6,109



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 September 30, 2021










Business








Global


Global


Digital &


Segment


Corporate


Total IGT



Lottery


Gaming


Betting


Total


and Other


PLC

Income from continuing operations












101

Provision for income taxes












37

Interest expense, net












79

Foreign exchange gain, net












(6)

Other non-operating expense, net












1

Operating income (loss)


234


31


12


278


(66)


212

Depreciation


48


29


4


81



81

Amortization - service revenue (1)


54




54



54

Amortization - non-purchase accounting


8


1



10


1


11

Amortization - purchase accounting






40


40

Restructuring




(1)


(1)



(1)

Stock-based compensation


3


2



5


6


11

Other (2)







Adjusted EBITDA


347


64


15


426


(19)


407




























Cash flows from operating activities - continuing operations












113


Capital expenditures












(47)

Free Cash Flow












66





























(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 three months ended September 30, 2020










Business








Global


Global


Digital &


Segment


Corporate


Total IGT




Lottery


Gaming


Betting


Total


and Other


PLC

Loss from continuing operations












(129)

Benefit from income taxes












(41)

Interest expense, net












101

Foreign exchange loss, net












149

Other non-operating expense, net












6

Operating income (loss)


196


(56)


6


146


(59)


87

Depreciation


51


36


4


91



91

Amortization - service revenue (1)


54




54



54

Amortization - non-purchase accounting


8


2



10


1


11

Amortization - purchase accounting






42


42

Stock-based compensation






1


1

Other (2)






1


1

Adjusted EBITDA


309


(18)


9


301


(13)


287














Income from discontinued operations












26

Provision for income taxes












14

Interest expense, net












Depreciation












11

Amortization












13

Adjusted EBITDA - discontinued operations












65














Adjusted EBITDA - combined












352














Cash flows from operating activities - continuing operations












191

Capital expenditures












(65)

Free Cash Flow












126














(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 nine months ended September 30, 2021










Business








Global


Global


Digital &


Segment


Corporate


Total IGT



Lottery


Gaming


Betting


Total


and Other


PLC

Income from continuing operations












200

Provision for income taxes












217

Interest expense, net












264

Foreign exchange gain, net












(62)

Other non-operating expense, net












96

Operating income (loss)


871


7


28


906


(190)


716

Depreciation


144


92


11


247


(1)


246

Amortization - service revenue (1)


164




164



164

Amortization - non-purchase accounting


25


4



29


3


32

Amortization - purchase accounting






118


118

Restructuring


(1)



(1)


(1)



(1)

Stock-based compensation


5


4



10


12


22

Other (2)






1


1

Adjusted EBITDA


1,209


107


39


1,355


(57)


1,299














Income from discontinued operations












415

Gain on sale of discontinued operations












(396)

Provision for income taxes












4

Interest expense, net












Depreciation












Amortization












Adjusted EBITDA - discontinued operations












23














Adjusted EBITDA - combined












1,322















Cash flows from operating activities - continuing operations












613


Capital expenditures












(168)

Free Cash Flow












445















(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 nine months ended September 30, 2020










Business








Global


Global


Digital &


Segment


Corporate


Total IGT



Lottery


Gaming


Betting


Total


and Other


PLC

Loss from continuing operations












(644)

Benefit from income taxes












(45)

Interest expense, net












297

Foreign exchange loss, net












153

Other non-operating expense, net












34

Operating income (loss)


447


(170)


3


280


(484)


(204)

Goodwill impairment






296


296

Depreciation


147


106


11


264


1


265

Amortization - service revenue (1)


156




156



156

Amortization - non-purchase accounting


22


5



27


2


30

Amortization - purchase accounting






131


131

Restructuring


5


34


1


41


6


47

Stock-based compensation


(4)


(5)



(9)


(2)


(11)

Other (2)






3


3

Adjusted EBITDA


773


(28)


14


759


(47)


713














Income from discontinued operations












25

Provision for income taxes












10

Interest expense, net












Depreciation












36

Amortization












41

Adjusted EBITDA - discontinued operations












112














Adjusted EBITDA - combined












825















Cash flows from operating activities - continuing operations












344


Capital expenditures












(204)

Free Cash Flow












139





























(1) Includes amortization of upfront license fees


(2) Primarily includes transaction-related costs


 

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SOURCE International Game Technology PLC