This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Ader Group Sends Letter To IGT Stockholders Highlighting Customer Concerns With IGT


The Ader nominees have a forward-looking plan to refocus IGT on its core slot machine and systems business in order to increase shareholder value.  As detailed in our presentation, we believe that our plan could create incremental annual EBITDA of $160-200 million with an associated upfront investment of $125-150 million.

Our nominees would seek to implement our plan as follows:
  • Re-engage with IGT's customers to improve their confidence in the company;
  • Refocus internal efforts on the company's core slot machine and systems business;
  • Reevaluate policies which we believe have alienated IGT from its front-line employees in its core business; and
  • Initiate a strategic review to improve the implementation of the company's social gaming effort.

Elements of our plan include:
  • Revenue Enhancement Opportunities – $125-150 million of potential EBITDA Opportunity (with an associated capital spend of $60-75 million)
    • Gaming Operations
      • Leveraging opportunities to make yield improvements in Mega Jackpot Progressives
      • Improving Gaming Operations Mix and Market Share by refocusing on the highly profitable wide-area progressive business
      • Improving efforts in International Markets–Focus on higher-growth Asian and Latin American markets
      • Expanding into fast-growing Asian-centric Electronic Table Games Segment
    • Product Sales
      • Positioning IGT for Domestic Replacement Cycle Uptick–Seek to improve anemic Ship Share
      • Pursuing significant upside potential in Asian and Latin American product sales
  • Expense Initiatives – $35-50 million of potential EBITDA Opportunity (with an associated capital spend of $60-75 million)
    • SG&A Opportunities – Economizing on Flight Operations (IGT recently purchased a Gulfstream V that we believe is unnecessary, as there are more cost-effective ways to conduct necessary private air travel) and recalibrating bloated corporate Legal and Internal Sales staffing.
    • Adjusting R&D spending by focusing on core business and developing a new game platform to replace the costly AVP (advanced video platform)
    • Improving COGS/Margin by rationalizing manufacturing overhead through process improvement


3 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs