United States

Securities and Exchange Commission

 

WASHINGTON, D.C. 20549

______________________

 

FORM 8-K

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

______________________

 

Date of report (date of earliest event reported):


April 25, 2013


INTERNATIONAL GAME TECHNOLOGY

------------------------------------------------------------------------------------------------------------------

(Exact name of registrant as specified in its charter)

 

 

Nevada

--------------------------

(State or Other Jurisdiction

of Incorporation)

001-10684

--------------------------

(Commission

File Number)

88-0173041

--------------------------

(I.R.S. Employer

Identification Number)

6355 South Buffalo Drive, Las Vegas, Nevada 89113

----------------------------------------------------------------------------------

(Address of principal executive offices)

 

(702) 669-7777

----------------------------------------------------------------------------------

(Registrant’s telephone number, including area code)

 

not applicable

----------------------------------------------------------------------------------

(Former name or former address, if changed since last report.)

 

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 



 
 
 

 

 

Item 2.02. Results of Operations and Financial Condition. 


The following information is furnished pursuant to Item 2.02, “Results of Operations and Financial Condition.”


International Game Technology announced results for its most recent quarter. The full text of the press release is furnished as Exhibit 99.1 to this report.

 


Item 9.01 Financial Statements and Exhibits.


(d)       Exhibits

 

99.1     Press Release dated April 25, 2013

 

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


 

INTERNATIONAL GAME TECHNOLOGY

 

Date: April 25, 2013

 

 

 

 

By:

/s/ John Vandemore

 
 

John Vandemore

 

Chief Financial Officer and Treasurer

 

 

 

 

3


igt20130424_8kex99-1.htm

 

Exhibit 99.1

 

International Game Technology Reports Second Quarter Fiscal Year 2013 Results

 

Second Quarter Highlights (compared to last year’s second quarter)

 

Total revenues increased 11% to $600 million

 

North America product sales revenue increased 25%

 

GAAP earnings per share from continuing operations increased 38% to $0.29

 

Adjusted earnings per share from continuing operations increased 33% to $0.36

 

GAAP operating income increased 10% to $129 million

 

Adjusted operating income increased 13% to $164 million

 

Sold 8,400 North America replacement units, up 68%

 

 

Social gaming revenues increased 31% to $54 million sequentially from our 2013 fiscal first quarter, as average revenue per daily active user grew 19% to $0.37 sequentially.

 

 

(LAS VEGAS – Apr. 25, 2013) – International Game Technology (NYSE: IGT) today reported operating results for the second quarter ended March 31, 2013.

 

“We are very pleased with our momentum through the second quarter, demonstrating the strength of our comprehensive strategy – leveraging our core business, broadening the distribution of our premier content, and generating shareholder returns,” said Patti Hart, CEO of IGT. “As we continue to deliver on this strategy, we expect that this will be our fourth consecutive year of double digit growth in adjusted earnings per share from continuing operations.”

 

 
 

 

 

 

International Game Technology Reports 2013 Second Quarter Results

Page 2 of 15


Consolidated Results

 

($ in millions, except per share amounts)

Quarters Ended

March 31,

 

Six Months Ended

March 31,

 
 

2013

2012

% Change

2013

2012

% Change

GAAP Measures

                                               

Revenue

  $ 600.0   $ 541.2     11 %   $ 1,130.2   $ 986.8     15 %

Operating income

  $ 129.3   $ 118.0     10 %   $ 247.7   $ 217.9     14 %

Income from continuing operations

  $ 78.2   $ 62.4     25 %   $ 143.5   $ 112.7     27 %

Earnings per share from continuing operations

  $ 0.29   $ 0.21     38 %   $ 0.54   $ 0.38     42 %

Net operating cash flows

                          $ 182.5   $ 176.7     3 %
                                                 

Non-GAAP Measures

                                               

Adjusted operating income

  $ 163.5   $ 144.7     13 %   $ 301.0   $ 245.8     22 %

Adjusted income from continuing operations

  $ 95.1   $ 79.5     20 %   $ 171.5   $ 130.6     31 %

Adjusted earnings per share from continuing operations

  $ 0.36   $ 0.27     33 %   $ 0.64   $ 0.44     45 %

Free cash flow (after dividends)

                          $ 91.4   $ 17.4     425 %
 

Adjusted operating income, adjusted income from continuing operations, adjusted earnings per share from continuing operations and free cash flow are non-GAAP financial measures. Reconciliations between GAAP and non-GAAP measures are provided at the end of this release.

 

 

Revenues increased 11% to $600 million in the second quarter, driven by growth in North America machine sales and social gaming.

 

Adjusted earnings per share from continuing operations increased 33% to $0.36 for the second quarter.

 

Non-GAAP adjusted financial measures for the second quarter ended March 31, 2013 exclude acquisition-related charges for DoubleDown, fees related to the proxy contest, Alabama note impairment and certain discrete tax benefits.

 

 
 

 

 

 

International Game Technology Reports 2013 Second Quarter Results

Page 3 of 15

 

Gaming Operations (excluding Interactive)

 

($ in millions, unless otherwise noted)

Quarters Ended

March 31,

 

Six Months Ended

March 31,

 
 

2013

2012

% Change

2013

2012

% Change

                                                 

Revenue

  $ 254.3   $ 266.1     -4 %   $ 496.9   $ 518.1     -4 %

Gross profit

  $ 156.7   $ 163.1     -4 %   $ 309.8   $ 317.1     -2 %

Gross margin

    62 %     61 %     2 %     62 %     61 %     2 %

Installed base

    56,700     56,100     1 %     56,700     56,100     1 %

Average revenue per unit per day (0.00)

  $ 49.26   $ 52.34     -6 %   $ 47.99   $ 51.75     -7 %

 

 

Revenues decreased 4% to $254 million in the second quarter primarily due to lower MegaJackpots® revenue.

 

Gross margin increased to 62% from 61% in the second quarter, primarily due to lower jackpot expenses and depreciation.

 

Installed base increase was driven by lease operations growth globally.

 

Average revenue per unit per day in the second quarter was $49.26, down 6% over the prior year quarter, primarily due to lower yields, most significant in MegaJackpots®, and up 5% sequentially due to seasonal gaming trends.

 

Product Sales

($ in millions, unless otherwise noted)

Quarters Ended

March 31,

 

Six Months Ended

March 31,

 
 

2013

2012

% Change

2013

2012

% Change

                                                 

Revenue

  $ 279.0   $ 240.8     16 %   $ 513.7   $ 421.8     22 %

Gross profit

  $ 144.0   $ 132.0     9 %   $ 269.5   $ 223.6     21 %

Gross margin

    52 %     55 %     -5 %     52 %     53 %     -2 %

Units recognized ('000)

    14.3     10.2     40 %     25.0     17.5     43 %

Average machine sales price ('000)

  $ 14.1   $ 15.8     -11 %   $ 14.4   $ 15.8     -9 %

 

 

Revenues increased 16% to $279 million and units recognized increased 40% to 14,300 in the second quarter, primarily due to increased North America machine sales related to Canadian VLT customers, as well as an increase in North America new openings.

 

 
 

 

 

 

International Game Technology Reports 2013 Second Quarter Results

Page 4 of 15

 

 

Gross margin decreased to 52% from 55% in the second quarter due to targeted promotional activity, unfavorable mix shift and higher non-standard manufacturing costs.

 

Average machine sales price in the second quarter decreased 11% compared to the prior year quarter mainly due to targeted promotional activity and an increased mix of lower-priced VLT sales.

 

Interactive

($ in millions, unless otherwise noted)

Quarters Ended

March 31,

 

Six Months Ended

March 31,

 
 

2013

2012

% Change

2013

2012

% Change

                                                 

Revenue

  $ 66.7   $ 34.3     94 %   $ 119.6   $ 46.9     155 %

Social gaming

  $ 54.3   $ 21.3     155 %   $ 95.6   $ 21.3     349 %

IGTi

  $ 12.4   $ 13.0     -5 %   $ 24.0   $ 25.6     -6 %
                                                 

Gross Margin

    61 %     54 %     13 %     60 %     53 %     13 %

Social gaming

    61 %     61 %     -     61 %     61 %     -

IGTi

    59 %     42 %     40 %     55 %     47 %     17 %
                                                 

Double Down Average User Statistics*

                                               

DAU (Daily active users) ('000)

    1,690     1,350     25 %     1,575     1,350     17 %

MAU (Monthly active users) ('000)

    6,276     4,975     26 %     5,596     4,975     12 %

Bookings per DAU (0.00)

  $ 0.37   $ 0.24     54 %   $ 0.34   $ 0.24     42 %

*as a single application with multiple games, active users equal unique users

 

 

Social gaming revenues in the second quarter increased 31% sequentially to $54 million, primarily driven by an increase in both average DAU and average bookings per DAU.

 

Average DAU were 1.7 million in the second quarter, an increase of 16% compared to the prior sequential quarter and an increase of 25% compared to the prior year quarter.

 

Average bookings per DAU increased 19% sequentially to $0.37 in the second quarter and 54% over the same quarter last year.

 

 
 

 

 

 

International Game Technology Reports 2013 Second Quarter Results

Page 5 of 15

 

Operating Expenses and Other Income/Expense

($ in millions)

Quarters Ended

March 31,

 

Six Months Ended

March 31,

 
 

2013

2012

% Change

2013

2012

% Change

Operating Expenses

                                               

Selling, general & administrative

  $ 110.7   $ 109.3     1 %   $ 210.9   $ 199.1     6 %

Research & development

    58.1     55.3     5 %     112.5     102.2     10 %

Depreciation & amortization

19.7

19.3

    2 %     38.7     34.7     12 %

Contingent acquisition related costs

    21.9     11.7     87 %     39.3     11.7     236 %

Impairment

1.6 -

*

1.6 -

*

Total operating expenses

  $ 212.0   $ 195.6     8 %   $ 403.0   $ 347.7     16 %
                                                 

Adjusted Operating Expenses

                                               

Total

  $ 180.1   $ 171.2     5 %   $ 349.3   $ 322.1     8 %

 

Adjusted operating expenses is a non-GAAP financial measure. Reconciliations between GAAP and non-GAAP measures are provided at the end of this release.


 

 

Second quarter operating expenses increased over the prior year quarter primarily due to additional expenses from DoubleDown and unfavorable bad debt provisions.

 

Adjusted operating expenses were 30% of revenues for the second quarter compared to 32% of revenues in the prior year quarter.

 

Balance Sheet and Capital Deployment

($ in millions)

March 31,

2013

September 30,

2012

% Change

                         

Cash and equivalents (including restricted amounts)

  $ 312.3   $ 288.2     8 %

Working capital

  $ 663.9   $ 633.0     5 %

Contractual debt obligations

  $ 1,770.0   $ 1,790.0     -1 %

 

 

 

During the second quarter the company returned $94 million to shareholders. The company repurchased 4.4 million shares of common stock at an average price of $17.03 per share for a total cost of $75 million and also returned $19 million in the form of dividends.

 

Other

References to per share amounts in this release are based on diluted shares of common stock, unless otherwise specified. Reconciliations of all GAAP to Non-GAAP financial measures are provided at the end of this release.

 

 

 
 

 

 

 

International Game Technology Reports 2013 Second Quarter Results

Page 6 of 15

 

Outlook

Based on current expectations and the operating results for the second quarter of fiscal 2013, the company is increasing its fiscal year 2013 guidance for adjusted earnings from continuing operations to $1.26 to $1.32 per share.

GAAP earnings per share from continuing operations for fiscal year 2013 will include acquisition-related expenses, primarily related to DoubleDown, proxy contest-related fees and certain tax-related benefits the amount of which are not determinable at this time. The company may also recognize charges for impairment, other acquisition-related expenses, resolution of certain tax items, and/or other items that are not currently determinable, but may be significant. For this reason, the Company is unable to provide estimates for full-year GAAP earnings per share from continuing operations at this time.

 

Earnings Conference Call

As previously announced on Apr. 4, 2013, IGT will host a conference call to discuss its Second Quarter 2013 earnings results on Thursday, Apr. 25, 2013, at 2:00 p.m. PDT (or 5:00 p.m. EDT). The access numbers are as follows:

Domestic callers dial +1 800-369-1753, passcode IGT

International callers dial +1 312-470-7067, passcode IGT

The conference call will also be broadcast live over the Internet. A link to the webcast is available at the IGT website: http://www.IGT.com/investors. The call will be archived until Thursday, May 9, 2013 at http://www.IGT.com/investors, for those interested parties that are unable to participate during the live webcast.

A taped replay of the conference call will be available after the conference call. This replay will run through Thursday, May 9, 2013. The access numbers are as follows:

Domestic callers dial +1 888-566-0041

International callers dial +1 402-998-0492

 

Q2 FY 2013 Excel file

 

Q2 FY 2013 PDF of this press release

 

 
 

 

 

 

International Game Technology Reports 2013 Second Quarter Results

Page 7 of 15

 

Forward-Looking Statements

 

This press release contains forward-looking statements that involve risks and uncertainties. These statements include our expected future financial and operational performance (including our guidance for fiscal year 2013) and our strategic and operational plans. These statements involve a number of risks and uncertainties that could cause actual results to differ materially from the results predicted, and reported results should not be considered an indication of future performance. Among the factors that could cause actual results and outcomes to differ materially from those contained in such forward-looking statements are the following: general economic conditions and changes in economic conditions affecting the gaming industry; new or changing laws or regulations or new interpretations of existing laws or regulations affecting our business; difficulties or delays in obtaining or maintaining necessary licenses or approvals; slow growth in the number of new gaming jurisdictions or new casinos or the rate of replacement of existing gaming machines; changes in operator or player preferences for our products; our ability to compete in the gaming industry with new or existing competitors; our ability to develop and introduce new products and their acceptance by our customers; risks related to our international operations; our ability to protect our intellectual property; adverse results of litigation, including intellectual property infringement claims; risks related to business combinations, investments in intellectual property and the integration of acquisitions; and future developments or changes affecting online gaming or social casino-style gaming, which is a new and evolving industry. A further list and description of these and other risks, uncertainties and other matters can be found in our annual report and other reports filed with the Securities and Exchange Commission, including under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for fiscal 2012 filed with the SEC on November 28, 2012 and our Quarterly Report on Form 10-Q for our fiscal quarter ended December 31, 2012 filed with the SEC on February 6, 2013 and available on the SEC website at www.sec.gov and on the investor relations section of our website at www.IGT.com/investors. Additional information will also be set forth in our Quarterly Report on Form 10-Q for our fiscal quarter ended March 31, 2013, which we expect to file with the SEC in the second quarter of calendar 2013. All information provided in this release is as of April 25, 2013, and IGT does not intend, and undertakes no duty, to update this information to reflect subsequent events or circumstances.

 

 

IGT Resources:

●     Like us on Facebook

●     Play DoubleDown Casino Games

●     Like DoubleDown Casino on Facebook

●     Follow us on Twitter  

●     View IGT's YouTube Channel

●     Check out our other Games and Gaming Systems 

 

 
 

 

 

 

International Game Technology Reports 2013 Second Quarter Results

Page 8 of 15

 

About IGT

International Game Technology (NYSE: IGT) is a global leader in casino gaming entertainment and continues to transform the industry by translating casino player experiences to social, mobile and interactive environments for markets around the world. IGT's acquisition of DoubleDown Interactive provides engaging social casino style entertainment to more than 6 million players monthly. More information about IGT is available at IGT.com or connect with IGT at @IGTNews or facebook.com/IGT. Anyone can play at the DoubleDown Casino by visiting http://apps.facebook.com/doubledowncasino or doubledowncasino.com

 

 

IGT Contacts:

 

Michael Greene

Senior Manager, Investor Relations

 

Kate Pearlman

Vice President, Investor Relations and Treasury

 

+1 866-296-4232

 

 
 

 

 

 

International Game Technology Reports 2013 Second Quarter Results

Page 9 of 15

 

CONSOLIDATED STATEMENTS OF INCOME (Unaudited and Condensed)

 

Periods Ended March 31,

 

Second Quarters

Six Months

 

2013

2012

2013

2012

(In millions, except per share amounts)

                               

Revenues

                               

Gaming operations

  $ 254.3   $ 266.1   $ 496.9   $ 518.1

Product sales

    279.0     240.8     513.7     421.8

Interactive

    66.7     34.3     119.6     46.9

Total revenues

    600.0     541.2     1,130.2     986.8

Costs and operating expenses

                               

Cost of gaming operations

    97.6     103.0     187.1     201.0

Cost of product sales

    135.0     108.8     244.2     198.2

Cost of interactive

    26.1     15.8     48.2     22.0

Selling, general and administrative

    110.7     109.3     210.9     199.1

Research and development

    58.1     55.3     112.5     102.2

Depreciation and amortization

19.7

19.3

    38.7     34.7

Contingent acquisition related costs

    21.9     11.7     39.3     11.7

Impairment

    1.6     -     1.6     -

Total costs and operating expenses

    470.7     423.2     882.5     768.9

Operating income

    129.3     118.0     247.7     217.9

Other income (expense)

                               

Interest income

    11.1     10.8     22.4     22.9

Interest expense

    (30.3 )     (30.0 )     (62.0 )     (60.1 )

Other

    (2.5 )     (2.0 )     (2.7 )     (4.8 )

Total other income (expense)

    (21.7 )     (21.2 )     (42.3 )     (42.0 )

Income from continuing operations before tax

    107.6     96.8     205.4     175.9

Income tax provision

    29.4     34.4     61.9     63.2

Income from continuing operations

    78.2     62.4     143.5     112.7

Loss from discontinued operations, net of tax

    -     (0.5 )     -     (1.5 )

Net income

  $ 78.2   $ 61.9   $ 143.5   $ 111.2

Basic earnings (loss) per share

                               

Continuing operations

  $ 0.30   $ 0.21   $ 0.54   $ 0.38

Discontinued operations

    -     -     -     (0.01 )

Net income

  $ 0.30   $ 0.21   $ 0.54   $ 0.37

Diluted earnings (loss) per share

                               

Continuing operations

  $ 0.29   $ 0.21   $ 0.54   $ 0.38

Discontinued operations

    -     -     -     (0.01 )

Net income

  $ 0.29   $ 0.21   $ 0.54   $ 0.37

Weighted average shares outstanding

                               

Basic

    263.6     296.7     264.7     297.0

Diluted

    265.6     298.1     266.7     298.6

 

 
 

 

 

 

International Game Technology Reports 2013 Second Quarter Results

Page 10 of 15

 

CONSOLIDATED BALANCE SHEET (Unaudited and Condensed)

 

 

March 31,

2013

September 30,

2012

(In millions)

               

Assets

               

Current assets

               

Cash and equivalents

  $ 236.5   $ 206.3

Restricted cash and investments

    75.8     81.9

Jackpot annuity investments

    58.5     60.2

Receivables, net

    578.3     564.8

Inventories

    89.4     92.9

Other assets and deferred costs

    249.1     257.2

Total current assets

    1,287.6     1,263.3

Property, plant and equipment, net

    511.5     555.7

Jackpot annuity investments

    279.6     295.7

Contracts and notes receivable, net

    115.2     139.3

Goodwill and other intangibles, net

    1,629.1     1,663.1

Other assets and deferred costs

    376.7     368.0

Total Assets

  $ 4,199.7   $ 4,285.1

Liabilities and Shareholders' Equity

               

Current liabilities

               

Accounts payable

  $ 86.4   $ 87.5

Jackpot liabilities, current portion

    140.2     152.4

Dividends payable

20.8

    16.0

Other accrued liabilities

    376.3     374.4

Total current liabilities

    623.7     630.3

Long-term debt

    1,829.3     1,846.4

Jackpot liabilities

    308.9     328.6

Other liabilities

    195.3     282.0

Total Liabilities

    2,957.2     3,087.3

Total Equity

    1,242.5     1,197.8

Total Liabilities and Shareholders' Equity

  $ 4,199.7   $ 4,285.1

 
 

 

 

 

International Game Technology Reports 2013 Second Quarter Results

Page 11 of 15

 

CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited and Condensed)


 

Six Months Ended

March 31,

 

2013

2012

(In millions)

               

Operating

               

Net income

  $ 143.5   $ 111.2

Depreciation and amortization

    117.8     115.2

Other non-cash items

    54.8     42.1

Changes in operating assets and liabilities, excluding acquisitions:

               

Receivables

    (21.2 )     (28.5 )

Inventories

    9.4     (14.6 )

Accounts payable and accrued liabilities

    (61.8 )     3.8

Jackpot liabilities

    (40.7 )     (21.9 )

Income taxes, net of employee stock plans

    (21.9 )     (13.8 )

Other assets and deferred costs

    2.6     (16.8 )

Net operating cash flows

    182.5     176.7

Investing

               

Capital expenditures

    (56.4 )     (123.6 )

Proceeds from assets sold

    8.3     19.8

Jackpot annuity investments, net

    27.1     23.6

Changes in restricted cash

    5.8     3.2

Loans receivable, net

    15.1     14.9

Business acquisitions, net of cash acquired

    -     (233.0 )

Net investing cash flows

    (0.1 )     (295.1 )

Financing

               

Debt related proceeds (payments), net

    (20.0 )     -

Employee stock plan proceeds

    8.3     14.3

Share repurchases

    (75.1 )     (50.1 )

Noncontrolling interest acquired

    -     (2.5 )

Dividends paid

    (34.7 )     (35.7 )

Acquisition-related contingent consideration

    (27.9 )     -

Net financing cash flows

    (149.4 )     (74.0 )

Foreign exchange rates effect on cash

    (2.8 )     3.5

Net change in cash and equivalents

    30.2     (188.9 )

Beginning cash and equivalents

    206.3     460.0

Ending cash and equivalents

  $ 236.5   $ 271.1

 
 

 

 

 

 

International Game Technology Reports 2013 Second Quarter Results

Page 12 of 15

 

SUPPLEMENTAL DATA (Unaudited)   
 

Periods Ended March 31,

Revenue Metrics

Second Quarters

Six Months

 

2013

2012

2013

2012

In millions, unless otherwise noted

                               

Gaming Operations

                               

Revenues

  $ 254.3   $ 266.1   $ 496.9   $ 518.1

North America

    220.3     233.1     428.8     452.6

International

    34.0     33.0     68.1     65.5

Gross margin

    62 %     61 %     62 %     61 %

North America

    60 %     59 %     61 %     59 %

International

    69 %     75 %     69 %     74 %

Installed base ('000)

    56.7     56.1     56.7     56.1

North America

    42.6     42.7     42.6     42.7

International

    14.1     13.4     14.1     13.4

Average revenue per unit per day (0.00)

  $ 49.26   $ 52.34   $ 47.99   $ 51.75

Product Sales

                               

Revenues

  $ 279.0   $ 240.8   $ 513.7   $ 421.8

North America

    200.6     160.8     359.5     263.9

International

    78.4     80.0     154.2     157.9

Machines

  $ 202.4   $ 161.1   $ 359.8   $ 276.8

North America

    148.7     101.4     250.5     160.5

International

    53.7     59.7     109.3     116.3

Non-machine

  $ 76.6   $ 79.7   $ 153.9   $ 145.0

North America

    51.9     59.4     109.0     103.4

International

    24.7     20.3     44.9     41.6

Gross margin

    52 %     55 %     52 %     53 %

North America

    53 %     57 %     54 %     55 %

International

    49 %     50 %     48 %     49 %

Units recognized ('000)

    14.3     10.2     25.0     17.5

North America

    11.1     6.8     18.3     10.6

International

    3.2     3.4     6.7     6.9

Units shipped ('000) [includes units where revenues deferred]

    14.3     10.5     23.7     17.0

North America

    11.1     6.7     18.0     10.2

New

    2.7     1.7     4.4     2.4

Replacement

    8.4     5.0     13.6     7.8

International

    3.2     3.8     5.7     6.8

New

    1.0     2.0     1.9     3.3

Replacement

    2.2     1.8     3.8     3.5

Average machine sales price ('000)

  $ 14.1   $ 15.8   $ 14.4   $ 15.8

North America

    13.4     14.9     13.7     15.1

International

    16.6     17.6     16.3     16.9

Interactive

                               

Revenues

  $ 66.7   $ 34.3   $ 119.6   $ 46.9

North America

    54.8     21.6     96.7     21.7

International

    11.9     12.7     22.9     25.2

Social

    54.3     21.3     95.6     21.3

North America

    54.3     21.3     95.6     21.3

International

    -     -     -     -

IGTi

    12.4     13.0     24.0     25.6

North America

    0.5     0.3     1.1     0.4

International

    11.9     12.7     22.9     25.2

Gross margin

    61 %     54 %     60 %     53 %

North America

    61 %     58 %     61 %     58 %

International

    58 %     47 %     54 %     49 %

DoubleDown Casino® Average User Statistics*

                               

Daily active users (DAU) ('000)

    1,690     1,350     1,575     1,350

Monthly active users (MAU) ('000)

    6,276     4,975     5,596     4,975

Bookings per DAU (0.00)

  $ 0.37   $ 0.24   $ 0.34   $ 0.24

*as a single application with multiple games, active users equal unique users

                               

 
 

 

 

 

International Game Technology Reports 2013 Second Quarter Results

Page 13 of 15

 

Reconciliations of GAAP to Non-GAAP Adjusted Financial Measures

(in millions, except EPS) 


Second Quarter Ended March 31, 2013

                                               
                                 

Continuing Operations

 

Revenue

Cost of

Revenues

Operating

Expenses

Operating

Income

Net

Earnings (a)

Diluted

EPS

                                                 

GAAP measures

  $ 600.0   $ 258.7   $ 212.0   $ 129.3   $ 78.2   $ 0.29

% of revenue

                    35 %     22 %                

Acquisition related charges: (b)

                                               

Contingent retention & earn-out

    -     -     (21.9 )     21.9     14.6     0.06

Amortization of intangibles

    -     (2.3 )     (4.5 )     6.8     4.5     0.02

Proxy fees

    -     -     (3.9 )     3.9     2.6     0.01

Alabama Note impairment

    -     -     (1.6 )     1.6     1.1     - </