Selling and administrative expenses in the September 2012 quarter of $34.4 million were $3.9 million lower than the year-ago period as the prior year included $4.3 million in bad debt expense related to the write-down of Mexican customer receivables. Higher marketing and incremental administrative expenses to support interactive products and services were partially offset by ongoing cost savings initiatives.
Depreciation and amortization expense was $28.0 million in the September 2012 quarter compared with $22.6 million in the year-ago quarter and $25.3 million in the June 2012 quarter. The increase primarily reflects the Company’s investment in gaming operations equipment over the last 12 months to upgrade and transition its installed base of participation units, coupled with the additional depreciation associated with the completion of a new facility plus amortization of finite-lived intangible assets from our two acquisitions in the June 2012 quarter.
Cash Flow and Balance Sheet
Cash flow provided by operating activities for the quarter ended September 30, 2012, was $21.0 million, a year-over-year increase of $7.9 million, or a 60% improvement over the prior year, reflecting higher net income, depreciation and amortization and share-based compensation, partially offset by lower other non-cash items. Total receivables, net were $387.8 million at September 30, 2012, compared with $334.6 million at September 30, 2011, which reflects the use of the Company’s financial liquidity to support customers’ efforts to refresh their slot base during a period of constrained capital for many casino operators. Total receivables, net were down from $405.1 million at June 30, 2012, reflecting the lower seasonal revenue on a quarterly sequential basis. Inventory was $52.5 million, or $11.9 million lower than at September 30, 2011, primarily reflecting operational improvements and lower finished goods inventory, and was slightly below the $53.3 million in inventory at June 30, 2012. Total current liabilities at September 30, 2012, declined $40.5 million from June 30, 2012, due to lower accounts payables and lower accrued liabilities reflecting the timing of income tax payments.
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