LAS VEGAS, April 22, 2014 /PRNewswire/ -- International Game Technology (NYSE: IGT) today reported operating results for the second quarter ended March 31, 2014.
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"During the quarter, we took decisive action to reduce IGT's cost structure and position the company for long-term earnings growth," said Patti Hart, CEO of IGT. "Looking forward, we are confident that we will be able to leverage our leaner cost structure, substantial R&D investments and premium brands to drive shareholder value."
Consolidated Results
Second Quarters Six Months --------------- ---------- Periods Ended March 31, 2014 2013 % Change 2014 2013 % Change ------- ---- ---- -------- ---- ---- -------- (In millions, except per share amounts) GAAP Measures Revenue $512.8 $600.0 -15% $1,054.0 $1,130.2 -7% Operating income 72.1 129.3 -44% 175.7 247.7 -29% Net income 25.7 78.2 -67% 105.0 143.5 -27% Earnings per share $0.10 $0.29 -66% $0.42 $0.54 -22% Net operating cash flows $(65.2) $182.5 -136% Non-GAAP Measures Adjusted operating income $107.5 $163.5 -34% $231.2 $301.0 -23% Adjusted net income 49.4 95.1 -48% 112.4 171.5 -34% Adjusted earnings per share $0.20 $0.36 -44% $0.45 $0.64 -30% Free cash flow (before dividends) $(111.4) $126.1 -188% Adjusted operating income, adjusted net income, adjusted earnings per share and free cash flow are non-GAAP financial measures. Reconciliations between GAAP and non-GAAP measures are provided at the end of this release.
-- Revenues decreased 15% to $513 million primarily due to declines in machine sales and gaming operations. -- Adjusted earnings decreased 44% to $0.20 per share. -- Non-GAAP adjusted financial measures for the second quarter ended March 31, 2014 excluded acquisition-related charges for DoubleDown, an impairment to certain receivables in Alabama, business realignment, and legal accruals.
Gaming Operations
Second Quarters Six Months --------------- ---------- Periods Ended March 31, 2014 2013 % Change 2014 2013 % Change ------- ---- ---- -------- ---- ---- -------- (In millions, unless otherwise noted) Revenue $230.4 $254.3 -9% $453.4 $496.9 -9% Gross profit 140.4 156.7 -10% 276.6 309.8 -11% Gross margin 61% 62% -1% 61% 62% -2% Installed base ('000) 53.4 56.7 -6% 53.4 56.7 -6% Yield (average revenue per unit per day - $0.00) $47.00 $49.26 -5% $46.11 $47.99 -4%
-- Revenues decreased 9% to $230 million in the second quarter primarily due to lower MegaJackpots® revenue. -- Gross margins are consistent with prior-year results. -- Installed base decreased 6% driven by a decline in North America MegaJackpots® and International lease operations units. -- Average revenue per unit per day in the second quarter was $47.00, down 5% over the prior year quarter, primarily due to lower MegaJackpots® performance, but up 4% sequentially due to seasonal gaming trends.
Product Sales
Second Quarters Six Months --------------- ---------- Periods Ended March 31, 2014 2013 % Change 2014 2013 % Change ------- ---- ---- -------- ---- ---- -------- (In millions, unless otherwise noted) Revenue $202.6 $279.0 -27% $446.2 $513.7 -13% Gross profit 104.0 144.0 -28% 230.9 269.5 -14% Gross margin 51% 52% -1% 52% 52% 0% Machine units recognized ('000) 7.9 14.3 -45% 20.7 25.0 -17% Machine average sales price ('000) $14.7 $14.1 4% $13.7 $14.4 -5%
-- Revenues decreased 27% to $203 million in the second quarter, primarily due to lower machine unit volume, with the most significant decrease in North America replacement units, as the prior-year quarter benefited from 3,500 Canadian replacement units. -- Gross margins are consistent with prior-year results. -- Average machine sales price increased 4% to $14,700 in the second quarter due to higher mix of higher-priced units.
Interactive
Second Quarters Six Months --------------- ---------- Periods Ended March 31, 2014 2013 % Change 2014 2013 % Change ------------- ---- ---- -------- ---- ---- -------- (In millions, unless otherwise noted) Revenue $79.8 $66.7 20% $154.4 $119.6 29% Social gaming 68.8 54.3 27% 133.6 95.6 40% IGTi 11.0 12.4 -11% 20.8 24.0 -13% Gross Margin 61% 61% 0% 62% 60% 3% Social gaming 62% 61% 2% 62% 61% 2% IGTi 54% 59% -8% 59% 55% 7% DoubleDown average user statistics* DAU (Daily active users) ('000) 1,775 1,690 5% 1,745 1,575 11% MAU (Monthly active users) ('000) 6,218 6,276 -1% 6,208 5,596 11% Bookings per DAU ($0.00) $0.43 $0.37 16% $0.42 $0.34 24% *as a single application with multiple games, active users equal unique users
-- Social gaming revenues increased 27% to $69 million in the second quarter compared to the prior year quarter and increased 6% sequentially, driven by an increase in both average DAU and bookings per DAU. -- Average DAU were 1.8 million, an increase of 5% over the prior year quarter. -- Average bookings per DAU were $0.43, an increase of 16% over the same quarter last year.
Operating Expenses
Second Quarters Six Months --------------- ---------- Periods Ended March 31, 2014 2013 % Change 2014 2013 % Change ------------ ---- ---- -------- ---- ---- -------- (In millions, unless otherwise noted) Operating Expenses ------------------ Selling, general & administrative $124.1 $110.7 12% $242.1 $210.9 15% Research & development 58.5 58.1 1% 118.8 112.5 6% Depreciation & amortization 16.6 19.7 -16% 33.2 38.7 -14% Contingent acquisition- related costs 3.7 21.9 -83% 15.0 39.3 -62% Impairment and restructuring 17.8 1.6 * 17.8 1.6 * ---- --- ---- --- Total operating expenses $220.7 $212.0 4% $426.9 $403.0 6% ====== ====== ====== ====== Adjusted Operating Expenses --------------------------- Total $188.0 $180.1 4% $377.4 $349.3 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.
-- The increase in second quarter total operating expenses was primarily attributable to a legal accrual of $8 million, as lower acquisition-related costs were nearly offset by an increase in impairment and restructuring resulting from our business realignment announced in March 2014. -- Selling, general and administrative expenses also increased $5 million related to player marketing expenses in correlation with social gaming revenue growth and $3.2 million for bad debt provisions in the international business. -- Adjusted operating expenses were 37% of revenues for the second quarter compared to 30% of revenues in the prior year quarter.
Balance Sheet and Capital Deployment
March 31, September 30, 2014 2013 % Change ---- ---- -------- (In millions, unless otherwise noted) Cash and equivalents (including restricted amounts) $432.3 $809.1 -47% Working capital (27.2) 267.5 -110% Contractual debt obligations 2,150.0 2,150.0 0%
-- During the quarter, the company invested $185 million to extend land-based licensing rights for Wheel of Fortune and Jeopardy through 2024, as well as expand rights to include social gaming and online real-money wagering in the U.S. -- The company returned $27 million to its shareholders through dividends during the quarter.
Other
References to per share amounts in this release are based on weighted average diluted shares of common stock outstanding, unless otherwise specified.
Outlook
The company is reiterating its fiscal year 2014 revised guidance for adjusted earnings from continuing operations of $1.00 to $1.10 per share.
GAAP earnings per share from continuing operations for fiscal year 2014 will include acquisition-related expenses, primarily related to DoubleDown, severance costs, business realignment expenses, asset impairment charges, legal accrual charges, and certain discrete tax items or benefits, the amount of which is not determinable at this time. The company may also recognize 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 April 8, 2014, IGT will host a conference call to discuss its second quarter fiscal year 2014 earnings results on Tuesday, April 22, 2014, at 2:00 p.m. PDT. The access numbers are as follows:
Domestic callers dial +1 877-891-6979, passcode IGT
International callers dial +1 773-756-4700, 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 through Tuesday, May 6, 2014 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 Tuesday, May 6, 2014. The access numbers are as follows:
Domestic callers dial +1 866-566-0708
International callers dial +1 203-369-3622
Q2 FY 2014 Excel file
Q2 FY 2014 PDF of this press release
Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. These statements include our expected future financial and operational performance (including our guidance for fiscal year 2014) and our strategic and operational plans. These statements involve a number of risks and uncertainties that could cause actual results to differ materially from the results predicted, and reported results should not be considered an indication of future performance. Among the factors that could cause actual results and outcomes to differ materially from those contained in such forward-looking statements are the following: general economic conditions and changes in economic conditions affecting the gaming industry; new or changing laws or regulations or new interpretations of existing laws or regulations affecting our business; difficulties or delays in obtaining or maintaining necessary licenses or approvals; slow growth in the number of new gaming jurisdictions or new casinos or the rate of replacement of existing gaming machines; changes in operator or player preferences for our products; our ability to compete in the gaming industry with new or existing competitors; our ability to develop and introduce new products and their acceptance by our customers; risks related to our international operations; our ability to protect our intellectual property; adverse results of litigation, including intellectual property infringement claims; our ability to leverage reduction initiatives; risks related to business combinations, investments in intellectual property and the integration of acquisitions; and future developments or changes affecting online gaming or social casino-style gaming, which is a new and evolving industry. A further list and description of these and other risks, uncertainties and other matters can be found in our annual report and other reports filed with the 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 2013 filed with the SEC on November 26, 2013 and our Quarterly Report on Form 10-Q for our quarter ended December 31, 2013 filed with the SEC on February 5, 2014 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 second quarter ended March 31, 2014, which we expect to file with the SEC in the second quarter of calendar 2014. All information provided in this release is as of April 22, 2014, 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
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:
Kate Pearlman
Vice President, Investor Relations and Treasury
+1 866-296-4232
InvestorRelations@IGT.com
CONSOLIDATED STATEMENTS OF INCOME (Unaudited and Condensed)
Second Quarters Six Months --------- ---------- Periods Ended March 31, 2014 2013 2014 2013 ----------------------- ---- ---- ---- ---- (In millions, except per share amounts) Revenues Gaming operations $230.4 $254.3 $453.4 $496.9 Product sales 202.6 279.0 446.2 513.7 Interactive 79.8 66.7 154.4 119.6 ---- ---- ----- ----- Total revenues 512.8 600.0 1,054.0 1,130.2 Costs and operating expenses Cost of gaming operations 90.0 97.6 176.8 187.1 Cost of product sales 98.6 135.0 215.3 244.2 Cost of interactive 31.4 26.1 59.3 48.2 Selling, general and administrative 124.1 110.7 242.1 210.9 Research and development 58.5 58.1 118.8 112.5 Depreciation and amortization 16.6 19.7 33.2 38.7 Contingent acquisition- related costs 3.7 21.9 15.0 39.3 Impairment and restructuring 17.8 1.6 17.8 1.6 ---- --- ---- --- Total costs and operating expenses 440.7 470.7 878.3 882.5 Operating income 72.1 129.3 175.7 247.7 ---- ----- ----- ----- Other income (expense) Interest income 10.7 11.1 20.9 22.4 Interest expense (36.9) (30.3) (73.3) (62.0) Other (3.4) (2.5) (5.3) (2.7) ---- ---- ---- ---- Total other income (expense) (29.6) (21.7) (57.7) (42.3) Income before tax 42.5 107.6 118.0 205.4 Income tax provision 16.8 29.4 13.0 61.9 ---- ---- ---- ---- Net income $25.7 $78.2 $105.0 $143.5 ===== ===== ====== ====== Basic earnings per share $0.10 $0.30 $0.42 $0.54 Diluted earnings per share $0.10 $0.29 $0.42 $0.54 Weighted average shares outstanding Basic 247.7 263.6 250.2 264.7 Diluted 248.6 265.6 251.9 266.7
CONSOLIDATED BALANCE SHEET (Unaudited and Condensed)
March 31, September 30, 2014 2013 ---- ---- (In millions) Assets Current assets Cash and equivalents $355.8 $713.3 Investment securities 15.0 28.8 Restricted cash and investments 61.5 67.0 Jackpot annuity investments 55.0 56.5 Receivables, net 551.5 577.9 Inventories 76.0 90.1 Other assets and deferred costs 284.4 242.4 ----- ----- Total current assets 1,399.2 1,776.0 Property, plant and equipment, net 443.9 483.9 Jackpot annuity investments 253.3 268.6 Contracts and notes receivable, net 143.6 165.6 Goodwill and other intangibles, net 1,577.8 1,601.7 Other assets and deferred costs 483.7 317.0 ----- ----- Total Assets $4,301.5 $4,612.8 ======== ======== Liabilities and Shareholders' Equity Current liabilities Short-term debt $846.4 $826.6 Accounts payable 92.9 110.0 Jackpot liabilities, current portion 121.9 131.7 Dividends payable 27.2 25.9 Other accrued liabilities 338.0 414.3 ----- ----- Total current liabilities 1,426.4 1,508.5 Long-term debt 1,357.1 1,366.3 Jackpot liabilities 278.5 293.3 Other liabilities 124.9 190.6 ----- ----- Total Liabilities 3,186.9 3,358.7 Total Equity 1,114.6 1,254.1 ------- ------- Total Liabilities and Shareholders' Equity $4,301.5 $4,612.8 ======== ========
CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited and Condensed)
Six Months Ended March 31, 2014 2013 -------------------------- ---- ---- (In millions) Operating Net income $105.0 $143.5 Adjustments: Depreciation and amortization 99.4 117.8 Acquisition-related contingent earn-out costs 6.6 16.2 Other non-cash items 64.8 54.7 Changes in operating assets and liabilities, excluding acquisitions: Receivables 15.5 (21.1) Inventories 13.4 9.4 Accounts payable and accrued liabilities (50.2) (78.0) Jackpot liabilities (32.9) (40.7) Income taxes, net of employee stock plans (50.4) (21.9) Other assets (236.4) 2.6 ------ --- Net operating cash flows (65.2) 182.5 ----- ----- Investing Capital expenditures (46.2) (56.4) Investment securities, net 13.9 - Jackpot annuity investments, net 25.0 27.1 Changes in restricted cash 5.6 5.8 Loans receivable payments received 14.9 15.1 Proceeds from assets sold 7.8 8.3 --- --- Net investing cash flows 21.0 (0.1) ---- ---- Financing Debt-related proceeds (payments), net (0.6) (20.0) Employee stock plan proceeds 12.0 8.3 Share repurchases, including net shares (211.3) (75.1) Dividends paid (53.4) (34.7) Acquisition-related contingent consideration (56.1) (27.9) ----- ----- Net financing cash flows (309.4) (149.4) ------ ------ Foreign exchange rates effect on cash and equivalents (3.9) (2.8) ---- ---- Net change in cash and equivalents (357.5) 30.2 Beginning cash and equivalents 713.3 206.3 ----- ----- Ending cash and equivalents $355.8 $236.5 ====== ======
SUPPLEMENTAL DATA (Unaudited)
Revenue Metrics Second Quarters Six Months --------------- ---------- Periods Ended March 31, 2014 2013 2014 2013 ----------------------- ---- ---- ---- ---- In millions, unless otherwise noted Gaming Operations ----------------- Revenues $230.4 $254.3 $453.4 $496.9 North America 200.1 220.3 391.7 428.8 International 30.3 34.0 61.7 68.1 Gross margin 61% 62% 61% 62% North America 58% 60% 59% 61% International 78% 69% 75% 69% Installed base (units '000) 53.4 56.7 53.4 56.7 North America 40.4 42.6 40.4 42.6 International 13.0 14.1 13.0 14.1 Yield (average revenue per unit per day -$0.00) $47.00 $49.26 $46.11 $47.99 Product Sales ------------- Revenues $202.6 $279.0 $446.2 $513.7 North America 143.8 200.6 313.8 359.5 International 58.8 78.4 132.4 154.2 Machines $116.0 $202.4 $282.9 $359.8 North America 79.1 148.7 197.2 250.5 International 36.9 53.7 85.7 109.3 Non-machine $86.6 $76.6 $163.3 $153.9 North America 64.7 51.9 116.6 109.0 International 21.9 24.7 46.7 44.9 Gross margin 51% 52% 52% 52% North America 56% 53% 54% 54% International 40% 49% 46% 48% Machine units recognized ('000) 7.9 14.3 20.7 25.0 North America 5.7 11.1 15.3 18.3 International 2.2 3.2 5.4 6.7 Machine units shipped ('000) [includes units where revenues deferred] 7.6 14.3 20.6 23.7 North America 5.5 11.1 15.3 18.0 New 2.1 2.7 5.8 4.4 Replacement 3.4 8.4 9.5 13.6 International 2.1 3.2 5.3 5.7 New 0.6 1.0 1.2 1.9 Replacement 1.5 2.2 4.1 3.8 Machine ASP ('000) $14.7 $14.1 $13.7 $14.4 North America 13.9 13.4 12.9 13.7 International 16.6 16.6 15.9 16.3 Interactive ----------- Revenues $79.8 $66.7 $154.4 $119.6 North America 70.3 54.8 136.1 96.7 International 9.5 11.9 18.3 22.9 Social Gaming 68.8 54.3 133.6 95.6 North America 68.8 54.3 133.6 95.6 International - - - - IGTi 11.0 12.4 20.8 24.0 North America 1.5 0.5 2.5 1.1 International 9.5 11.9 18.3 22.9 Gross margin 61% 61% 62% 60% North America 62% 61% 62% 61% International 51% 58% 58% 54% DoubleDown average user statistics* DAU (Daily active users) ('000) 1,775 1,690 1,745 1,575 MAU (Monthly active users) ('000) 6,218 6,276 6,208 5,596 Bookings per DAU ($0.00) $0.43 $0.37 $0.42 $0.34 *as a single application with multiple games, active users equal unique users
Reconciliations of GAAP to Non-GAAP Adjusted Financial Measures
(in millions, except EPS)
Cost of Operating Operating Net Diluted Interactive Expenses Income Earnings EPS (a) --- Second Quarter Ended March 31, 2014 ---------- GAAP measures $31.4 $220.7 $72.1 $25.7 $0.10 % of revenue 43% 14% Acquisition- related charges: (b) Contingent retention & earn- out - (3.7) 3.7 2.5 0.01 Amortization of intangibles (2.7) (3.4) 6.1 4.1 0.02 Business realignment - (16.5) 16.5 11.0 0.05 Alabama note impairment - (1.3) 1.3 0.9 - Legal accrual - (7.8) 7.8 5.2 0.02 Total non- GAAP adjustments (2.7) (32.7) 35.4 23.7 0.10 Adjusted measures $28.7 $188.0 $107.5 $49.4 $0.20 % of revenue 37% 21% === === (a) Adjustments tax effected at 33%; (b) Primarily DoubleDown Cost of Operating Operating Net Diluted Interactive Expenses Income Earnings EPS (a) --- Second Quarter Ended March 31, 2013 ---------- GAAP measures $26.1 $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 - Certain discrete tax items (benefits) - - - (5.9) (0.02) Total non- GAAP adjustments (2.3) (31.9) 34.2 16.9 0.07 Adjusted measures $23.8 $180.1 $163.5 $95.1 $0.36 % of revenue 30% 27% === === (a) Adjustments tax effected at 34%; (b) Primarily DoubleDown
Product Cost of Cost of Operating Operating Net Diluted Sales Gaming Interactive Expenses Income Earnings EPS Revenue Operations (a) ------- ---------- --- Six Months Ended March 31, 2014 ---------- GAAP measures $446.2 $176.8 $59.3 $426.9 $175.7 $105.0 $0.42 % of revenue 41% 17% Acquisition- related charges: (b) Contingent retention & earn- out - - - (15.0) 15.0 10.0 0.04 Amortization of intangibles - - (5.4) (6.8) 12.2 8.1 0.03 Business realignment - - - (16.5) 16.5 11.0 0.05 Alabama note impairment - - - (1.3) 1.3 0.9 - Legal accrual - - - (7.8) 7.8 5.2 0.02 Severance - (0.6) - (2.1) 2.7 1.8 0.01 Certain discrete tax items (benefits) - - - - - (29.6) (0.12) Total non- GAAP adjustments - (0.6) (5.4) (49.5) 55.5 7.4 0.03 Adjusted measures $446.2 $176.2 $53.9 $377.4 $231.2 $112.4 $0.45 % of revenue 36% 22% === === (a) Adjustments tax effected at 33%; (b) Primarily DoubleDown Product Sales Revenue Cost of Cost of Operating Operating Net Diluted Gaming Operations Interactive Expenses Income Earnings (a) EPS ----------------- ----------- -------- ------ ----------- --- Six Months Ended March 31, 2013 ---------- GAAP measures $513.7 $187.1 $48.2 $403.0 $247.7 $143.5 $0.54 % of revenue 36% 22% Acquisition- related charges: (b) Contingent retention & earn- out - - - (39.3) 39.3 26.2 0.10 Amortization of intangibles - - (4.6) (8.9) 13.5 9.0 0.03 Proxy Fees - - - (3.9) 3.9 2.6 0.01 Alabama note impairment - - - (1.6) 1.6 1.1 - Royalty settlement (5.0) - - - (5.0) (5.0) (0.02) Certain discrete tax items (benefits) - - - - - (5.9) (0.02) Total non- GAAP adjustments (5.0) - (4.6) (53.7) 53.3 28.0 0.10 Adjusted measures $508.7 $187.1 $43.6 $349.3 $301.0 $171.5 $0.64 % of revenue 31% 27% === === (a) Adjustments tax effected at 34%, except no tax effect on royalty settlement; (b) Primarily DoubleDown
Adjusted EBITDA For The Periods Ended March 31, ------------------------ Second Quarters Six Months --------------- ---------- 2014 2013 2014 2013 ---- ---- ---- ---- GAAP Net income $25.7 $78.2 $105.0 $143.5 Other (income) expense, net 29.6 21.7 57.7 42.3 Income tax provision 16.8 29.4 13.0 61.9 Depreciation and amortization 48.1 60.1 99.4 117.8 Other charges: Share-based compensation 7.6 9.9 16.5 18.6 Contingent acquisition- related costs 3.7 21.9 15.0 39.3 Impairment 17.8 1.6 17.8 1.6 ---- --- ---- --- Adjusted EBITDA $149.3 $222.8 $324.4 $425.0 ====== ====== ====== ====== Free Cash Flow For The Six Months Ended March 31, -------------------------- 2014 2013 ---- ---- GAAP net operating cash flows $(65.2) $182.5 Investment in property, plant and equipment (11.8) (8.1) Investment in gaming operations equipment (31.6) (48.1) Investment in intellectual property (2.8) (0.2) ---- ---- Free Cash Flow (before dividends) (111.4) 126.1 Dividends paid (53.4) (34.7) ----- ----- Free Cash Flow (after dividends) $(164.8) $91.4 ======= =====
We believe that certain non- GAAP financial measures, when presented in conjunction with comparable GAAP (Generally Accepted Accounting Principles) measures, are useful because that information is an appropriate measure for evaluating our operating performance. Non- GAAP information is used to evaluate business performance and management's effectiveness. These measures should be considered in addition to, not as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. Non- GAAP financial measures may not be calculated in the same manner by all companies and therefore may not be comparable. ------------------------------
SOURCE International Game Technology