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INTERNATIONAL GAME TECHNOLOGY PLC REPORTS FIRST QUARTER 2022 RESULTS

IGT
  • Revenue up 4% compared to the prior year, or 7% at constant currency, to $1.1 billion, driven by significantly higher Global Gaming product sales; revenue and profit aligned with historic peak levels
  • Operating income of $252 million; operating income margin of 24% exceeds outlook by 200 basis points
  • Adjusted EBITDA of $433 million matches prior year's record level at constant currency; 41% adjusted EBITDA margin among the highest level in Company history
  • Returned a record $80 million to shareholders via cash dividend and share repurchases for second consecutive quarter
  • Reaffirming full-year 2022 revenue and profit outlook

LONDON, May 10, 2022 /PRNewswire/ -- International Game Technology PLC ("IGT") (NYSE:IGT) today reported financial results for the first quarter ended March 31, 2022. Today, at 8:00 a.m. EDT, management will host a conference call and webcast to present the results; access details are provided below.

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 Lotteries and Gaming Machines 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 unrivaled gaming experiences that engage players and drive growth. We have a well-established local presence and relationships with governments and regulators in more than 100 countries around the world, and create value by adhering to the highest standards of service, integrity, and responsibility. IGT has approximately 10,500 employees. For more information, please visit www.igt.com.

"The first quarter results clearly reflect the power of our portfolio," said Vince Sadusky, CEO of IGT, "The quarter's strong margin profile highlights the long-term recovery of the gaming business as well as increased levels of lottery play from pre-COVID periods. The Company's initiatives around a simplified corporate structure have resulted in strong liquidity as we continue to invest in product development and return capital to shareholders."

"This quarter marks excellent progress on the profitable growth trajectory outlined at our November 2021 Investor Day. The benefits we are realizing from continued discipline around cost and cash flow management are evident in profit margins that are among the highest in the last three years and in significantly lower interest expense," said Max Chiara, CFO of IGT. "We are on pace with our leverage target for the year and expect further improvement with the expected proceeds from the announced asset disposition."

Overview of Consolidated First Quarter 2022 Results


Quarter Ended

Y/Y
Change
(%)

Constant
Currency
Change
(%)

All amounts from continuing operations

March 31,




2022


2021



($ in millions)






GAAP Financials:






Revenue






Global Lottery

680


749

(9)%

(6)%

Global Gaming

325


228

42%

43%

Digital & Betting

47


38

24%

24%

Total revenue

1,051


1,015

4%

7%







Operating income (loss)






Global Lottery

252


337

(25)%

(21)%

Global Gaming

52


(26)

NA

NA

Digital & Betting

13


7

101%

100%

Corporate support expense

(26)


(19)

(34)%

(43)%

Other(1)

(38)


(39)

1%

1%

Total operating income

252


260

(3)%

2%

Operating income margin

24%


26%









Net cash provided by operating activities

189


251

(25)%








Cash and cash equivalents

600


748

(20)%








Non-GAAP Financial Measures:






Adjusted EBITDA






Global Lottery

356


447

(20)%

(17)%

Global Gaming

81


8

NM

NM

Digital & Betting

17


10

63%

63%

Corporate support expense

(21)


(16)

(27)%

(38)%

Total Adjusted EBITDA

433


450

(4)%

—%

Adjusted EBITDA margin

41%


44%









Free cash flow

115


204

(43)%








Net debt

5,832


7,069

(17)%









(1) Primarily includes purchase price amortization

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:

  • Secured three-year lottery contract extension with the Missouri Lottery; awarded multi-year instant ticket contract with Lotto Baden-Württemberg in Germany
  • Executed broad patent cross-licensing agreement with Aristocrat Leisure Limited
  • Recently signed agreement with Atlantic Lottery Corporation to provide 1,375 CrystalDual® 27 video lottery terminals
  • Launched high-performing IGT PlayCasino games in West Virginia, expanding digital footprint to five U.S. states, and in Ontario, as market expands to include commercial operators
  • Extended sports betting momentum through strategic agreements with Meruelo Gaming LLC and Kalispel Casino
  • Recently won "Casino Supplier of the Year" at Global Gaming Awards London and "Multi-Channel Supplier of the Year" at International Gaming Awards
  • PeakSlant32™ cabinet, Regal Riches™ slot game, Floor Manager™ systems solution, and Diversity and Inclusion achievements receive top honors at The Casino Awards 2022
  • Earned "Best Place to Work for LGBTQ+ Equality" designation by Human Rights Campaign Foundation
  • Joined the Science Based Targets initiative (SBTi), officially pledging to set targets to reduce greenhouse gas emissions

Financial Highlights:
Consolidated revenue of $1.1 billion, up 4% as reported and 7% at constant currency, from $1.0 billion in the prior year

  • Global Lottery revenue of $680 million compared to $749 million in the prior-year period, which included $95 million in prior-year benefits from Italy gaming hall closures, higher multi-state jackpot activity, and incentive accruals related to LMA agreements; 4% increase year-over-year excluding said benefits
  • Global Gaming revenue increases 42% to $325 million, driven by significantly higher product sales revenue and higher active installed base units
  • Digital & Betting revenue up 24% to $47 million, as double-digit growth across activities continues; year-over-year increase driven by market expansion, organic growth, and timing of jackpots

Operating income of $252 million, compared to $260 million in the prior year, down 3% as reported but up 2% at constant currency

  • Global Lottery operating income down, primarily due to about $80 million in prior-year benefits referenced above
  • Increased high-margin intellectual property royalties in Global Gaming and lower jackpot accruals in Digital & Betting
  • Disciplined cost management

Adjusted EBITDA of $433 million, compared to $450 million in the prior-year period, matches prior year's record level at constant currency; Adjusted EBITDA margin of 41%, among the highest in Company history

Net interest expense of $76 million compared to $94 million in the prior year, driven by lower average debt balances and interest rates

Provision for income taxes of $65 million compared to $148 million in the prior year, primarily due to lower pre-tax income and a decrease in incremental valuation allowances on deferred tax assets

Net income of $117 million versus $138 million in the prior-year period, driven by a reduction in foreign exchange gains, partially offset by lower income taxes and cost of debt

Net debt of $5.8 billion compared to $5.9 billion at December 31, 2021; Net debt leverage of 3.5x, stable compared to December 31, 2021

Cash and Liquidity Update

  • Total liquidity of $2.3 billion as of March 31, 2022; $600 million in unrestricted cash and $1.7 billion in additional borrowing capacity

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

  • Ex-dividend date of May 23, 2022
  • Record date of May 24, 2022
  • Payment date of June 7, 2022

On April 11, 2022, the Company announced an agreement to acquire iSoftBet, a leading iGaming content provider and third-party game aggregator, for €160 million; transaction expected to close during the second quarter of 2022

In February 2022, the Company announced an agreement to sell its Italian proximity payment/commercial services business for €700 million; transaction expected to close during the third quarter of 2022

In January 2022, the Company announced several Executive and Board leadership changes including the retirement of Lorenzo Pellicioli as Chairperson of the Board of Directors, appointment of Marco Sala as Executive Chair of the Board of Directors, Vincent Sadusky as CEO and Executive Director, and Maria Pinelli and Ashley M. Hunter as members of the Board of Directors

Reaffirming Full-year Revenue and Profit Outlook; Introducing Second Quarter 2022 Outlook
Full Year

  • Revenue of $4.1 billion - $4.3 billion
  • Operating income margin of 20% - 22%
  • Cash from operations of $850 - $1,000 million
  • Capital expenditures of ~$400 million

Second Quarter

  • Revenue of $1.0 billion - $1.1 billion
  • Operating income margin of 20% - 22%

Outlook based on EUR/USD exchange rate of 1.12; excludes impact from sale of Italian commercial services business

Earnings Conference Call and Webcast
May 10, 2022, at 8:00 a.m. EDT

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.

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 2022 are calculated using the same foreign exchange rates as the corresponding 2021 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. Certain amounts in columns and rows within tables may not foot due to rounding. 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 Lotteries and Gaming Machines 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 unrivaled gaming experiences that engage players and drive growth. We have a well-established local presence and relationships with governments and regulators in more than 100 countries around the world, and create value by adhering to the highest standards of service, integrity, and responsibility. IGT has approximately 10,500 employees. For more information, please visit www.IGT.com.

Cautionary Statement Regarding Forward-Looking Statements
This news release may contain forward-looking statements (including within the meaning of the Private Securities Litigation Reform Act of 1995) concerning International Game Technology PLC and its consolidated subsidiaries (the "Company") and other matters. These statements may discuss goals, intentions, and expectations as to future plans, trends, events, dividends, results of operations, or financial condition, or otherwise, based on current beliefs of the management of the Company as well as assumptions made by, and information currently available to, such management. Forward-looking statements may be accompanied by words such as "aim," "anticipate," "believe," "plan," "could," "would," "should," "shall", "continue," "estimate," "expect," "forecast," "future," "guidance," "intend," "may," "will," "possible," "potential," "predict," "project" or the negative or other variations of them. These forward-looking statements speak only as of the date on which such statements are made and are subject to various risks and uncertainties, many of which are outside the Company's control. Should one or more of these risks or uncertainties materialize, or should any of the underlying assumptions prove incorrect, actual results may differ materially from those predicted in the forward-looking statements and from past results, performance, or achievements. Therefore, you should not place undue reliance on such statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include (but are not limited to) the factors and risks described in the Company's annual report on Form 20-F for the financial year ended December 31, 2021 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, net, foreign exchange gain (loss), net, other non-operating expenses, net, 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. Management believes that Adjusted EBITDA is 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 equivalents, including cash and cash equivalents held for sale. Cash and cash equivalents, including cash and cash equivalents classified as held for sale, 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. 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 or constant FX is a non-GAAP financial measure that expresses the current financial data using the prior-year/period exchange rate (i.e., the month end 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)












Sequential









Constant



Change as



Q1'22


Q1'21


Y/Y Change


Currency



Reported

GLOBAL LOTTERY




(%)


Change (%)(1)


Q4'21

(%)

Revenue












Service












Operating and facilities management contracts


599


695


(14)%


(11)%


608

(1)%

Upfront license fee amortization


(49)


(52)


7%


—%


(50)

3%

Operating and facilities management contracts, net


551


643


(14)%


(11)%


558

(1)%

Other


84


83


2%


9%


87

(4)%

Total service revenue


635


725


(13)%


(9)%


646

(2)%













Product sales


45


23


95%


105%


42

8%

Total revenue


680


749


(9)%


(6)%


687

(1)%













Operating income


252


337


(25)%


(21)%


217

16%

Adjusted EBITDA(1)


356


447


(20)%


(17)%


336

6%













Global same-store sales growth (%)












Instant ticket & draw games


(6.7%)


27.4%






6.6%


Multi-jurisdiction jackpots


(40.0%)


94.7%






21.7%


Total


(10.3%)


32.4%






7.7%














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












Instant ticket & draw games


(3.9%)


20.9%






6.3%


Multi-jurisdiction jackpots


(40.0%)


94.7%






21.7%


Total


(9.0%)


27.8%






7.8%














Italy same-store sales growth (%)












Instant ticket & draw games


(14.5%)


52.2%






7.7%














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













Sequential









Constant



Change as



Q1'22


Q1'21


Y/Y Change


Currency



Reported

GLOBAL GAMING




(%)


Change (%)(1)


Q4'21

(%)

Revenue












Service












Terminal


108


90


20%


20%


109

(2)%

Systems, software, and other


58


49


18%


19%


54

7%

Total service revenue


165


139


19%


20%


163

1%













Product sales












Terminal


104


62


69%


70%


110

(5)%

Other


55


28


99%


101%


48

16%

Total product sales revenue


160


90


78%


80%


158

1%

Total revenue


325


228


42%


43%


321

1%













Operating income (loss)


52


(26)


NA


NA


36

43%

Adjusted EBITDA(1)


81


8


NM


NM


66

23%













Installed base units












Casino


47,237


48,230


(2)%




47,732


Casino - L/T lease(2)


1,142


1,135


1%




1,117


Total installed base units


48,379


49,365


(2)%




48,849














Installed base units (by geography)












US & Canada


32,772


34,138


(4)%




33,437


Rest of world


15,607


15,227


2%




15,412


Total installed base units


48,379


49,365


(2)%




48,849














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












US & Canada


$39.05


$32.27


21%




$38.95


Rest of world


$5.77


$2.58


124%




$5.39


Total yields


$28.19


$22.93


23%




$28.27














Global machine units sold












New/expansion


328


884


(63)%




(11)


Replacement


6,848


3,521


94%




7,377


Total machine units sold


7,176


4,405


63%




7,366














US & Canada machine units sold












New/expansion


18


620


(97)%




(452)

(4)

Replacement


5,299


2,276


133%




5,547


Total machine units sold


5,317


2,896


84%




5,095














(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 lower active units in the prior year

(4) Negative units due to reclass between New/expansion and Replacement units













Sequential









Constant



Change as



Q1'22


Q1'21


Y/Y Change


Currency



Reported

GLOBAL GAMING (Continued)




(%)


Change (%)(1)


Q4'21

(%)

Rest of world machine units sold












New/expansion


310


264


17%




441


Replacement


1,549


1,245


24%




1,830


Total machine units sold


1,859


1,509


23%




2,271














Average Selling Price (ASP), in absolute $












US & Canada


$14,800


$13,900


6%




$15,300


Rest of world


$12,300


$13,700


(10)%




$13,400


Total ASP


$14,200


$13,800


3%




$14,700














Gaming Systems Revenue


43


30


42%




42





































Sequential









Constant



Change as



Q1'22


Q1'21


Y/Y Change


Currency



Reported

DIGITAL & BETTING




(%)


Change (%)(1)


Q4'21

(%)

Revenue












Service


47


37


27%


27%


41

14%

Product sales



1


(72)%


(71)%


1

(51)%

Total revenue


47


38


24%


24%


42

13%













Operating income


13


7


101%


100%


5

167%

Adjusted EBITDA(1)


17


10


63%


63%


9

89%

























CONSOLIDATED












Revenue (by geography)












US & Canada


598


542


10%


10%


591

1%

Italy


298


348


(14)%


(8)%


305

(2)%

Rest of world


155


124


25%


31%


154

1%

Total revenue


1,051


1,015


4%


7%


1,050

—%













(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


March 31,


2022


2021

Service revenue

846


901

Product sales

205


114

Total revenue

1,051


1,015





Cost of services

428


441

Cost of product sales

122


73

Selling, general and administrative

193


186

Research and development

57


55

Total operating expenses

799


755





Operating income

252


260





Interest expense, net

76


94

Foreign exchange gain, net

(3)


(145)

Other (income) expense, net

(3)


25

Total non-operating expenses (income)

70


(27)

Income from continuing operations before provision for income taxes

182


287

Provision for income taxes

65


148

Income from continuing operations

117


138

Income from discontinued operations, net of tax


11

Net income

117


149

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

38


59

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


(2)

Net income attributable to IGT PLC

79


92





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

0.39


0.39

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

0.39


0.38

Net income attributable to IGT PLC per common share - basic

0.39


0.45

Net income attributable to IGT PLC per common share - diluted

0.39


0.44

Weighted-average shares - basic

203,743


204,857

Weighted-average shares - diluted

205,166


206,504

International Game Technology PLC

Consolidated Balance Sheets

($ in millions)

Unaudited








March 31,


December 31,



2022


2021

Assets





Current assets:





Cash and cash equivalents


600


591

Restricted cash and cash equivalents


85


218

Trade and other receivables, net


714


903

Inventories


208


183

Other current assets


594


589

Assets held for sale


672


4

Total current assets


2,873


2,487

Systems, equipment and other assets related to contracts, net


904


937

Property, plant and equipment, net


114


119

Operating lease right-of-use assets


267


283

Goodwill


4,358


4,656

Intangible assets, net


1,360


1,413

Other non-current assets


1,373


1,429

Total non-current assets


8,376


8,836

Total assets


11,249


11,322






Liabilities and shareholders' equity





Current liabilities:





Accounts payable


783


1,035

Short term borrowings


40


52

Other current liabilities


899


828

Liabilities held for sale


289


Total current liabilities


2,011


1,914

Long-term debt, less current portion


6,438


6,477

Deferred income taxes


380


368

Operating lease liabilities


252


269

Other non-current liabilities


335


323

Total non-current liabilities


7,404


7,437

Total liabilities


9,415


9,351

Commitments and contingencies





IGT PLC's shareholders' equity


1,313


1,282

Non-controlling interests


521


689

Shareholders' equity


1,834


1,971

Total liabilities and shareholders' equity


11,249


11,322

International Game Technology PLC

Consolidated Statements of Cash Flows

($ in millions)

Unaudited


For the three months ended


March 31,


2022


2021

Cash flows from operating activities




Net income

117


149

Less: Income from discontinued operations, net of tax


11

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




Depreciation

74


82

Amortization of upfront license fees

51


55

Amortization

47


49

Stock-based compensation

10


4

Deferred income taxes

9


100

Debt issuance cost amortization

4


6

Loss on extinguishment of debt


24

Foreign exchange gain, net

(3)


(145)

Other non-cash items, net

(8)


Changes in operating assets and liabilities:




Trade and other receivables

(35)


(86)

Inventories

(25)


4

Accounts payable

18


115

Other assets and liabilities

(71)


(95)

Net cash provided by operating activities from continuing operations

189


251

Net cash used in operating activities from discontinued operations


(36)

Net cash provided by operating activities

189


215





Cash flows from investing activities




Capital expenditures

(73)


(48)

Proceeds from sale of assets

11


6

Other

1


Net cash used in investing activities from continuing operations

(62)


(42)

Net cash used in investing activities from discontinued operations


(10)

Net cash used in investing activities

(62)


(51)





Cash flows from financing activities




Net repayments of short-term borrowings

(12)


Net proceeds from Revolving Credit Facilities

33


432

Net receipts from financial liabilities

43


9

Principal payments on long-term debt


(1,387)

Payments in connection with the extinguishment of debt


(22)

Payments of debt issuance costs


(6)

Proceeds from long-term debt


750

Repurchases of common stock

(39)


Dividends paid

(41)


Dividends paid - non-controlling interests

(98)


(69)

Return of capital - non-controlling interests

(10)


(11)

Capital increase - non-controlling interests


10

Other

(7)


(5)

Net cash used in financing activities

(131)


(301)





Net decrease in cash and cash equivalents and restricted cash and cash equivalents

(4)


(137)

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

(13)


(36)

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

808


1,129

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

791


956

Less: Cash and cash equivalents included within assets held for sale

39


Less: Restricted cash and cash equivalents included within assets held for sale

67


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


24

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

685


932





Supplemental Cash Flow Information




Interest paid

106


166

Income taxes paid

7


4

International Game Technology PLC

Net Debt

($ in millions)

Unaudited








March 31,


December 31,



2022


2021

5.350% Senior Secured U.S. Dollar Notes due October 2023


61


61

3.500% Senior Secured Euro Notes due July 2024


553


564

6.500% Senior Secured U.S. Dollar Notes due February 2025


1,094


1,093

4.125% Senior Secured U.S. Dollar Notes due April 2026


744


744

3.500% Senior Secured Euro Notes due June 2026


828


844

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


745


745

2.375% Senior Secured Euro Notes due April 2028


551


562

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


744


744

Senior Secured Notes


5,319


5,357






Euro Term Loan Facilities due January 2027


1,099


1,121

U.S. Dollar Revolving Credit Facility A due July 2024


19


Long-term debt, less current portion


6,438


6,477






Short-term borrowings


40


52

Total debt


6,477


6,529






Less: Cash and cash equivalents


600


591

Less: Cash and cash equivalents included within assets held for sale


39


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


6


17

Net debt


5,832


5,922






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 March 31, 2022









Business







Global


Global


Digital &


Segment


Corporate


Total IGT



Lottery


Gaming


Betting


Total


and Other


PLC

Income from continuing operations












117

Provision for income taxes












65

Interest expense, net












76

Foreign exchange gain, net












(3)

Other non-operating income, net












(3)

Operating income (loss)


252


52


13


316


(64)


252

Depreciation


44


27


4


75



74

Amortization - service revenue (1)


51




51



51

Amortization - non-purchase accounting


7


2



9


1


9

Amortization - purchase accounting






38


38

Stock-based compensation


2


2



4


6


10

Adjusted EBITDA


356


81


17


454


(21)


433



























Cash flows from operating activities - continuing operations












189

Capital expenditures












(73)

Free Cash Flow












115














(1) Includes amortization of upfront license fees

International Game Technology PLC

Reconciliation of Non-GAAP Financial Measures

($ in millions)

Unaudited
















For the three months ended March 31, 2021









Business







Global


Global


Digital &


Segment


Corporate


Total IGT



Lottery


Gaming


Betting


Total


and Other


PLC

Income from continuing operations












138

Provision for income taxes












148

Interest expense, net












94

Foreign exchange gain, net












(145)

Other non-operating expense, net












25

Operating income (loss)


337


(26)


7


318


(58)


260

Depreciation


47


32


4


83


(1)


82

Amortization - service revenue (1)


55




55



55

Amortization - non-purchase accounting


8


1



9


1


10

Amortization - purchase accounting






39


39

Stock-based compensation


1


1



2


2


4

Adjusted EBITDA


447


8


10


466


(16)


450



























Cash flows from operating activities - continuing operations












251

Capital expenditures












(48)

Free Cash Flow












204














(1) Includes amortization of upfront license fees

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/international-game-technology-plc-reports-first-quarter-2022-results-301543130.html

SOURCE International Game Technology PLC



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