- SYSTEMS REVENUE SETS QUARTERLY RECORD OF $76 MILLION, UP 48 PERCENT FROM PRIOR YEAR
- WIDE-AREA PROGRESSIVE INSTALLED BASE GROWS 12 PERCENT AND SETS RECORD QUARTERLY REVENUE
- INCREASES FISCAL 2014 DILUTED EPS GUIDANCE TO $3.80 TO $4.10
|First Quarter Fiscal Year 2014 Highlights|
|Three Months Ended September 30,|
|2013||% Rev||2012||% Rev|
|(dollars in millions, except per share amounts)|
|Gaming Equipment (1)||$||36.0||50||%||$||39.2||47||%|
|Total gross margin||$||164.2||66||%||$||148.8||63||%|
|Selling, general and administrative||$||72.4||29||%||$||64.5||27||%|
|Research and development costs||29.5||12||%||25.1||11||%|
|Depreciation and amortization||5.3||2||%||5.6||2||%|
|(1)||Gross Margin from Gaming Equipment and Systems excludes amortization related to certain intangibles, including core technology and license rights, which are included in depreciation and amortization.|
|Three Months Ended September 30,|
|New gaming devices||3,995||4,608|
|New unit Average Selling Price (“ASP”)||$||16,307||$||16,853|
|As of September 30,|
|End-of-period installed base:|
|Linked progressive systems||2,522||2,251|
|Rental and daily-fee games||14,533||14,971|
|Lottery systems (2)||11,907||12,040|
|Centrally determined systems||33,711||39,192|
|(2)||Excludes 727 and 537 electronic table games operating as of September 30, 2013 and 2012, respectively.|
- Total revenue increased 6 percent to a first-quarter record $249 million as compared with $235 million last year.
- Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, share-based compensation and acquisition-related costs), a non-GAAP financial measure, increased 10 percent to a first-quarter record $87 million as compared with $79 million last year.
- Selling, general and administrative expenses (“SG&A”) increased to 29 percent of total revenues as compared with 27 percent last year, primarily driven by $5 million of costs associated with the planned acquisition of SHFL entertainment. After adjusting for acquisition-related costs, SG&A was 27 percent of total revenues in the current period.
- Research and development expenses (“R&D”) increased to 12 percent of total revenues as compared with 11 percent last year.
- Operating income increased 6 percent to a first-quarter record $57 million compared with $54 million last year. After adjusting for acquisition-related costs, operating margin increased to 25 percent from 23 percent last year.
- Diluted EPS increased 26 percent to a quarterly record $0.97 from $0.77 last year.
- Revenues decreased 14 percent to $71 million as compared with $83 million last year, driven primarily by the expected absence of sales of Canadian video lottery terminal units in the current period compared to 670 units last year. Current period sales included the shipment of 456 units into the Illinois video gaming terminal (“VGT”) market.
- ASP of new gaming devices decreased 3 percent to $16,307 per unit from $16,853 last year, primarily as a result of lower ASP’s in certain international jurisdictions.
- New-unit sales to international customers were 20 percent of total new-unit shipments.
- Gross margin increased to 50 percent from 47 percent last year, due to continued cost reductions on the Pro Series™ line of cabinets and sales mix.
- Revenues increased to a first-quarter record $102 million as compared with $101 million last year, driven primarily by a 12 percent growth in the installed base of WAP games, as well as a first-quarter record for lottery systems revenue.
- Gross margin increased to 70 percent from 69 percent last year, primarily due to lower jackpot expense.
- Revenues increased 48 percent to a quarterly record $76 million as compared with $51 million last year.
- Maintenance revenues increased 21 percent to a quarterly record $25 million as compared with $21 million last year.
- Gross margin decreased to 75 percent from 77 percent last year, primarily as a result of the change in product mix. Specifically, hardware sales were 30 percent of systems revenues, and software and service sales were 37 percent, as compared to 26 percent for hardware and 34 percent for software and services in the same period last year.