International Game Technology Plc Reports Third Quarter 2024 Results Reflecting Continuing Operations After Announced Sale Of Gaming & Digital

• Q3'24 revenue of $587 million reflects sustained momentum in Italy and improved U.S. instant ticket and draw game wagers
• Operating income of $110 million includes $38 million restructuring charge associated with proactively optimizing general & administrative and operating activities following transformational actions over the last several years
• Adjusted EBITDA of $264 million and Adjusted EBITDA margin of 44.9% highlight attractive profit profile of pure play lottery business
• Year-to-date cash from operations of $724 million, with $489 million from continuing operations; continuing operations represents over 85% of year-to-date consolidated free cash flow
• Introducing Q4'24 and FY'24 outlook for continuing operations

LONDON, Nov. 12, 2024 /PRNewswire/ -- International Game Technology PLC ("IGT") (NYSE:IGT) today reported financial results for the third quarter ended September 30, 2024. This quarter marks the first reporting period where the results of the Gaming & Digital business are classified as discontinued operations. The sale of Gaming & Digital was announced on July 26, 2024, in a transaction expected to close by the end of the third quarter of 2025. Today, at 8:00 a.m. EST, management will host a conference call and webcast to present the results; access details are provided below.

"Our third-quarter and year-to-date performance underscores the strength and resilience of our business model marked by our scale, attractive margin structure, and strong cash generation," said Vince Sadusky, CEO of IGT. "Over the first nine months, we generated $1.9 billion in revenue, led by steady Italy growth and improved third quarter trends in the U.S. We are excited to build upon a solid foundation as we transform into a leaner, more focused global lottery pure play and capitalize on attractive industry dynamics."

"Sustained cash flow generation in the first nine months was predominantly driven by continuing operations," said Max Chiara, CFO of IGT. "The value of IGT is enhanced on a go-forward basis by a low pro forma leverage profile and by the launch of a cost optimization initiative as we look to right size the organization while supporting long-term growth initiatives."

Overview of Consolidated Third Quarter 2024 Results

	Quarter Ended			Y/Y Change	Constant Currency Change
All amounts from continuing operations	September 30,
	2024		2023
($ in millions, except per share data)
GAAP Financials:
Revenue	587		601	(2) %	(3) %
Operating income	110		163	(33) %	(33) %
Operating income margin	18.7 %		27.1 %
Earnings per share - diluted	$(0.39)		$0.23	NA
Net cash provided by operating activities	173		226	(23) %
Cash and cash equivalents	501		483	4 %
Non-GAAP Financial Measures:
Adjusted EBITDA	264		279	(6) %	(6) %
Adjusted EBITDA margin	44.9 %		46.4 %
Adjusted earnings per share - diluted	$(0.02)		$0.04	NA
Free cash flow	144		195	(26) %
Net debt	5,156		5,327	(3) %
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:

• Announced sale of Gaming & Digital business to funds managed by affiliates of Apollo Global Management, Inc. for $4.05 billion in cash
• Executed 10-year facilities management contract extension with North Carolina Education Lottery
• Awarded three-year primary instant ticket printing contract with Portugal's national lottery, following a competitive procurement process
• Strengthened partnership with La Française des Jeux, operator of the French national lottery, with signing of three-year instant ticket printing contract
• Successfully issued €500M 4.25% Senior Secured Notes due 2030; subsequent call of $500M 6.50% Notes due 2025

Third Quarter 2024 Financial Highlights:

Revenue of $587 million compared to $601 million in the prior-year period

• Elevated U.S. multi-state jackpot activity in the prior year
• 2.7% Italy same-store sales growth and improvement in U.S. instant ticket and draw game trends, partially offset by customer allowance
• Increased other service revenue related to non-wager-based service contracts in Europe
• Multi-year central system software license and higher terminal sales in the prior year, partially offset by higher instant ticket printing in the current year

Gross profit of $263 million versus $278 million in the prior year

• High profit flow-through from U.S. multi-state jackpot activity in the prior year, partially offset by positive geographic mix in the current year
• Stronger terminal sales and more favorable product mix in the prior year

Selling, general, and administrative expenses of $101 million compared to $106 million in the prior-year period with the improvement primarily related to lower legal costs

Research and development of $12 million versus $9 million in the prior year related to increased investment in growth initiatives

Operating income of $110 million versus $163 million in the prior year, primarily driven by a $38 million restructuring charge associated with OPtiMa 3.0, a program focused on optimizing general & administrative and operating activities following transformational actions over the last several years (see "Other Developments" section for further details)

Adjusted EBITDA of $264 million compared to $279 million in the prior-year period; Adjusted EBITDA margin of 44.9% versus 46.4% in the prior year

• High profit flow-through from elevated U.S. multi-state jackpot sales in prior year partially offset by positive geographic mix in the current year
• Higher terminal sales and beneficial product mix in prior year
• Lower legal costs in the current year
• Investment in growth initiatives

Net interest expense of $53 million in line with $54 million in the prior year

Foreign exchange loss of $39 million, compared to a gain of $36 million in the prior year, primarily due to non-cash impact of fluctuations in the EUR/USD exchange rate on debt and loss on a foreign currency hedge related to issuance of EUR debt

Other non-operating expense, net, of $2 million versus $3 million in the prior year

Income tax provision of $61 million, compared to $65 million in the prior year, primarily related to non-deductible foreign exchange losses and restructuring costs

Net income of $43 million versus $123 million in the prior-year period

Diluted loss per share from continuing operations of $0.39 compared to diluted earnings per share from continuing operations of $0.23 in the prior year primarily driven by the after-tax impact of foreign currency losses versus foreign currency gains in the prior year ($0.42 per share) and restructuring costs ($0.13 per share); adjusted diluted loss per share from continuing operations of $0.02 compared to adjusted diluted earnings per share from continuing operations of $0.04 in the prior year driven by lower operating income, partially offset by a higher effective tax rate

Nine Months Ended September 30, 2024 Financial Highlights:

Revenue of $1.86 billion compared to $1.85 billion in the prior year

• Elevated U.S. multi-state jackpot activity in the prior year
• 3.1% Italy same-store sales growth
• Increased other service revenue related to non-wager-based service contracts in Europe
• Higher instant ticket printing services in the current year

Operating income of $507 million versus $555 million in the prior year, primarily driven by a $38 million restructuring charge associated with OPtiMa 3.0, a program focused on optimizing general & administrative and operating activities following transformational actions over the last several years (see "Other Developments" section for further details)

Adjusted EBITDA of $880 million compared to $898 million in the prior-year period; Adjusted EBITDA margin of 47.3% versus 48.6% in the prior year

• High profit flow-through from elevated U.S. multi-state jackpot sales in prior year
• Higher-margin product sales mix in prior year
• Continued cost management discipline and lower legal costs in the current year
• Investment in growth initiatives

Diluted earnings per share from continuing operations of $0.17 compared to $0.38 in the prior-year period, primarily driven by the after-tax impact of foreign currency losses versus foreign currency gains in the prior year ($0.16 per share) and restructuring costs ($0.12 per share); adjusted diluted earnings per share from continuing operations of $0.46 compared to $0.41 in the prior year driven by a reduced effective tax rate

Year-to-date cash from operations of $724 million, $489 million from continuing operations; free cash flow from continuing operations of $385 million

Net debt of $5.2 billion in line with balance at December 31, 2023; pro forma net debt leverage of 2.6x aligns Adjusted EBITDA from continuing operations with the committed $2 billion debt reduction upon closing the sale of the Gaming & Digital business

Cash and Liquidity Update
Total liquidity of $1.9 billion as of September 30, 2024; $0.5 billion in unrestricted cash and $1.4 billion in additional borrowing capacity from undrawn credit facilities

Other Developments
Initiated OPtiMa 3.0, a multi-year program aimed at optimizing the Company's general & administrative and operating activities following transformational actions over the last several years, and to position the Company for success as a global lottery pure play

• Immediately addresses stranded corporate costs associated with the sale of Gaming & Digital business
• $40 million of annualized cost savings expected by the end of 2026; approximately 50% of those savings expected to be realized by the end of 2025
• $38 million restructuring charge, $27 million after tax, incurred in the third quarter of 2024, primarily related to the planned reduction of approximately 3% of the Company's global workforce

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

• Record date of November 26, 2024
• Payment date of December 10, 2024

Introducing Fourth Quarter and Full Year 2024 Outlook
Fourth Quarter

• Revenue of $640 - $690 million
• Adjusted EBITDA of $280 - $300 million

Full Year

• Revenue of $2.50 - $2.55 billion
• Adjusted EBITDA of $1.16 - $1.18 billion

The Company has provided select recast historical income statement, cash flow, and KPI data (both on a U.S. GAAP and non-GAAP basis) in the body of this news release to show the impact of Gaming & Digital as discontinued operations.

Earnings Conference Call and Webcast
November 12, 2024, at 8:00 a.m. EST

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 2024 are calculated using the same foreign exchange rates as the corresponding 2023 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. As a result, the sum of the components may not equal the total amount reported in millions due to rounding. Certain columns and rows within tables may not add due to the use of rounded numbers. 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 jurisdictions around the world, and create value by adhering to the highest standards of service, integrity, and responsibility. IGT has approximately 11,000 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, including with respect to the proposed sale of the Gaming & Digital business to funds managed by affiliates of Apollo Global Management, Inc. (the "Buyer"). These statements may discuss goals, intentions, and expectations as to future plans and strategies, transactions, including the sale of Gaming & Digital to the Buyer, trends, events, dividends, results of operations, and/or financial condition or measures, including our expectations on the future release of revenue, Adjusted EBITDA, and any other future financial performance guidance for continuing operations, 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," "outlook," "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, 2023 and other documents filed or furnished 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 may affect the Company's business, including management's discussion and analysis of potential or actual impacts to operations and financial performance. 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 (e.g., gains/losses on extinguishment and modifications of debt, etc.), 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.

Adjusted EBITDA margin represents Adjusted EBITDA divided by revenue

Adjusted EPS represents diluted earnings per share (a GAAP measure), excluding the effects of foreign exchange, impairments, amortization from purchase accounting, discrete tax items, and other significant non-recurring adjustments that are not reflective of on-going operational activities (e.g., gains/losses on sale of business, gains/losses on extinguishment and modifications of debt, etc.). Adjusted EPS is calculated using diluted weighted-average number of shares outstanding, including the impact of any potentially dilutive common stock equivalents that are anti-dilutive to GAAP net income (loss) per share but dilutive to Adjusted EPS. Management believes that Adjusted EPS 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 classified as held for sale. Cash and cash equivalents, including cash and cash equivalents 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 IGT's 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 is a non-GAAP financial measure that expresses current financial data using the prior-year/period exchange rate (i.e., the exchange rate 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.

Outlook for Fiscal 2024 and Guidance Policy
The Company's updated guidance for fiscal 2024 is:

• Total revenue of approximately $2.50 - $2.55 billion
• Adjusted EBITDA of $1.16 - $1.18 billion

The Company provides guidance of select information related to its financial and operating performance, and such measures may differ from year to year. The guidance is only an estimate of what the Company believes is realizable as of the date of this release. Actual results will vary from the guidance and the variations may be material. The Company undertakes no intent or obligation to publicly update or revise any of these projections, whether as a result of new information, future events or otherwise, except as required by law.

A reconciliation of the Company's forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measure cannot be provided without unreasonable effort. This is due to the inherent difficulty of accurately forecasting the occurrence and financial impact of the adjusting items necessary for such a reconciliation to be prepared, for example, the provision for income taxes or net foreign exchange gain/loss, as such items have not yet occurred, are out of the Company's control, or cannot be reasonably predicted.

Contact:
Phil O'Shaughnessy, Global Communications, toll free in U.S./ Canada +1 (844) IGT-7452; outside U.S./ Canada [phone]
Matteo Selva, Italian media inquiries, [phone]
James Hurley, Investor Relations, [phone]

Select Performance and KPI data: ($ in millions, unless otherwise noted)
								Constant
		Q3'24		Q3'23				Currency
Revenue						Y/Y Change		Change (1)
Service
Instant ticket & draw wager-based revenue		477		472		1 %		- %
U.S. multi-state jackpot wager-based revenue		21		47		(56) %		(56) %
Upfront license fee amortization		(48)		(47)		(2) %		- %
Other		116		105		11 %		11 %
Total service revenue		566		576		(2) %		(2) %
Product sales		20		25		(17) %		(19) %
Total revenue		587		601		(2) %		(3) %
Operating income		110		163		(33) %		(33) %
Adjusted EBITDA (1)		264		279		(6) %		(6) %
Same-store sales growth (%) at constant currency (wager-based growth) (2)
Global
Instant ticket & draw games		1.0 %		(0.8 %)
U.S. multi-state jackpots		(55.2 %)		43.6 %
Total		(5.8 %)		3.1 %
U.S. & Canada
Instant ticket & draw games		0.2 %		(1.0 %)
U.S. multi-state jackpots		(55.2 %)		43.6 %
Total		(9.8 %)		4.9 %
Italy
Instant ticket & draw games		2.7 %		4.7 %
Rest of world
Instant ticket & draw games		1.9 %		(6.9 %)
Revenue (by geography)
U.S. & Canada		284		306		(7) %		(7) %
Italy		228		218		5 %		3 %
Rest of world		75		77		(3) %		(3) %
Total revenue		587		601		(2) %		(3) %
(1) Non-GAAP measure; see disclaimer on page 6 and reconciliations to the most directly comparable GAAP measure in Appendix for further details
(2) Same-store sales represents the change in wagers recorded in lottery jurisdictions where IGT is the operator or facilities management supplier, using the same lottery jurisdictions and perimeter for comparisons between periods

International Game Technology PLC
Consolidated Statements of Operations
($ and shares in millions, except per share amounts)
Unaudited
	For the three months ended				For the nine months ended
	September 30,				September 30,
	2024		2023		2024		2023
Service revenue	566		576		1,771		1,767
Product sales	20		25		89		82
Total revenue	587		601		1,861		1,849
Cost of services	300		301		907		894
Cost of product sales	24		22		71		59
Selling, general and administrative	101		106		300		312
Research and development	12		9		34		27
Restructuring	38		-		39		2
Other operating expense, net	2		-		3		-
Total operating expenses	477		438		1,354		1,294
Operating income	110		163		507		555
Interest expense, net	53		54		160		154
Foreign exchange loss (gain), net	39		(36)		23		(9)
Other non-operating expense, net	2		3		9		9
Total non-operating expenses	94		21		192		155
Income from continuing operations before provision for income taxes	15		142		315		400
Provision for income taxes	61		65		161		209
(Loss) income from continuing operations	(46)		77		154		192
Income from discontinued operations, net of tax	88		46		101		88
Net income	43		123		256		280
Less: Net income attributable to non-controlling interests from continuing operations	34		31		120		115
Less: Net income (loss) attributable to non-controlling interests from discontinued operations	1		(2)		5		2
Net income attributable to IGT PLC	7		94		130		164
Net (loss) income from continuing operations attributable to IGT PLC per common share - basic	(0.39)		0.23		0.17		0.39
Net (loss) income from continuing operations attributable to IGT PLC per common share - diluted	(0.39)		0.23		0.17		0.38
Net income attributable to IGT PLC per common share - basic	0.04		0.47		0.65		0.82
Net income attributable to IGT PLC per common share - diluted	0.04		0.46		0.64		0.81
Weighted-average shares - basic	202		200		201		200
Weighted-average shares - diluted	202		203		203		202

International Game Technology PLC
Consolidated Balance Sheets
($ in millions)
Unaudited
		September 30,		December 31,
		2024		2023
Assets
Current assets:
Cash and cash equivalents		501		508
Restricted cash and cash equivalents		102		146
Trade and other receivables, net		394		403
Inventories, net		123		110
Other current assets		152		141
Assets held for sale		4,783		816
Total current assets		6,056		2,123
Systems, equipment and other assets related to contracts, net		578		622
Property, plant and equipment, net		78		74
Operating lease right-of-use assets		102		103
Goodwill		2,684		2,678
Intangible assets, net		77		87
Other non-current assets		677		835
Assets held for sale		-		3,943
Total non-current assets		4,196		8,342
Total assets		10,252		10,465
Liabilities and shareholders' equity
Current liabilities:
Accounts payable		662		643
Current portion of long-term debt		224		-
Short-term borrowings		27		16
Other current liabilities		481		561
Liabilities held for sale		1,169		472
Total current liabilities		2,563		1,691
Long-term debt, less current portion		5,406		5,655
Deferred income taxes		178		178
Operating lease liabilities		84		88
Other non-current liabilities		127		129
Liabilities held for sale		-		771
Total non-current liabilities		5,795		6,821
Total liabilities		8,358		8,513
Commitments and contingencies
IGT PLC's shareholders' equity		1,482		1,443
Non-controlling interests		412		510
Shareholders' equity		1,894		1,952
Total liabilities and shareholders' equity		10,252		10,465

International Game Technology PLC
Consolidated Statements of Cash Flows
($ in millions)
Unaudited
	For the three months ended				For the nine months ended
	September 30,				September 30,
	2024		2023		2024		2023
Cash flows from operating activities
Net income	43		123		256		280
Less: Income from discontinued operations, net of tax	88		46		101		88
Adjustments to reconcile net income to net cash provided by operating activities from continuing operations:
Amortization of upfront license fees	51		50		150		149
Depreciation	42		45		127		134
Foreign exchange loss (gain), net	39		(36)		23		(9)
Stock-based compensation	12		11		31		29
Amortization	8		9		24		30
Deferred income taxes	(21)		14		(11)		29
Other non-cash items, net	1		6		8		11
Changes in operating assets and liabilities, excluding the effects of dispositions:
Trade and other receivables	(8)		11		11		(23)
Inventories	(6)		(12)		(12)		(37)
Accounts payable	87		20		18		11
Accrued interest payable	(34)		(27)		(44)		(33)
Accrued income taxes	(6)		(14)		3		99
Other assets and liabilities	52		72		7		39
Net cash provided by operating activities from continuing operations	173		226		489		620
Net cash provided by operating activities from discontinued operations	87		70		235		20
Net cash provided by operating activities	260		296		724		641
Cash flows from investing activities
Capital expenditures	(30)		(31)		(104)		(104)
Other	2		1		1		-
Net cash used in investing activities from continuing operations	(27)		(29)		(103)		(104)
Net cash used in investing activities from discontinued operations	(62)		(69)		(166)		(185)
Net cash used in investing activities	(90)		(98)		(270)		(289)
Cash flows from financing activities
Net proceeds from short-term borrowings	27		55		11		56
Net receipts from (payments on) financial liabilities	12		(61)		(52)		(66)
Principal payments on long-term debt	(500)		-		(500)		(462)
Proceeds from long-term debt	556		-		556		-
Net (repayments of) proceeds from Revolving Credit Facilities	(82)		5		(119)		478
Dividends paid	(40)		(40)		(121)		(120)
Dividends paid - non-controlling interests	-		-		(159)		(151)
Return of capital - non-controlling interests	(10)		(10)		(55)		(55)
Other	(16)		(8)		(28)		(24)
Net cash used in financing activities from continuing operations	(54)		(58)		(467)		(346)
Net cash used in financing activities from discontinued operations	(19)		(9)		(39)		(25)
Net cash used in financing activities	(73)		(67)		(505)		(371)
Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents	98		130		(51)		(19)
Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents	17		(32)		(14)		(24)
Cash and cash equivalents and restricted cash and cash equivalents at the beginning of the period	559		599		739		740
Cash and cash equivalents and restricted cash and cash equivalents at the end of the period	674		697		674		697
Less: Cash and cash equivalents and restricted cash and cash equivalents of discontinued operations	71		107		71		107
Cash and cash equivalents and restricted cash and cash equivalents at the end of the period of continuing operations	604		590		604		590
Supplemental disclosures of cash flow information for continuing operations:
Interest paid	87		81		204		188
Income taxes paid	87		65		169		81

International Game Technology PLC
Net Debt
($ in millions)
Unaudited
	September 30,		December 31,
	2024		2023
6.500% Senior Secured U.S. Dollar Notes due February 2025	-		499
4.125% Senior Secured U.S. Dollar Notes due April 2026	748		747
3.500% Senior Secured Euro Notes due June 2026	838		826
6.250% Senior Secured U.S. Dollar Notes due January 2027	748		747
2.375% Senior Secured Euro Notes due April 2028	557		550
5.250% Senior Secured U.S. Dollar Notes due January 2029	746		745
4.250% Senior Secured Euro Notes due March 2030	553		-
Senior Secured Notes	4,190		4,113
Euro Term Loan Facilities due January 2027	666		876
Revolving Credit Facility A due July 2027	212		207
Revolving Credit Facility B due July 2027	338		458
Long-term debt, less current portion	5,406		5,655
Euro Term Loan Facilities due January 2027	224		-
Current portion of long-term debt	224		-
Short-term borrowings	27		16
Total debt	5,657		5,671
Less: Cash and cash equivalents	501		508
Net debt	5,156		5,163
Note: Net debt is a non-GAAP financial measure

International Game Technology PLC Reconciliation of Non-GAAP Financial Measures (Unaudited, $ in millions)
		For the three months ended September 30,				For the nine months ended September 30,
		2024		2023		2024		2023
(Loss) income from continuing operations		(46)		77		154		192
Provision for income taxes		61		65		161		209
Interest expense, net		53		54		160		154
Foreign exchange loss (gain), net		39		(36)		23		(9)
Other non-operating expense, net		2		3		9		9
Operating income		110		163		507		555
Depreciation		42		45		127		134
Amortization - service revenue (1)		51		50		150		149
Amortization - non-purchase accounting		6		6		17		17
Amortization - purchase accounting		2		4		7		13
Restructuring		38		-		39		2
Stock-based compensation		12		11		31		29
Other		2		-		3		-
Adjusted EBITDA		264		279		880		898
(1) Includes amortization of upfront license fees
Cash flows from operating activities - continuing operations		173		226		489		620
Capital expenditures		(30)		(31)		(104)		(104)
Free Cash Flow		144		195		385		516

International Game Technology PLC Reconciliation of Non-GAAP Financial Measures (Unaudited)
		For the three months ended September 30,												For the nine months ended September 30,
		2024						2023						2024						2023
		Pre-Tax Impact		Tax Impact (1)		Net Impact		Pre-Tax Impact		Tax Impact (1)		Net Impact		Pre-Tax Impact		Tax Impact (1)		Net Impact		Pre-Tax Impact		Tax Impact (1)		Net Impact
Reported EPS from continuing operations attributable to IGT PLC - diluted						(0.39)						0.23						0.17						0.38
Adjustments:
Foreign exchange loss (gain), net		0.19		(0.03)		0.22		(0.18)		0.02		(0.20)		0.11		-		0.11		(0.04)		0.01		(0.05)
Amortization - purchase accounting		0.01		-		0.01		0.02		-		0.01		0.03		0.01		0.03		0.06		0.01		0.05
Restructuring		0.19		0.06		0.13		-		-		-		0.19		0.06		0.13		0.01		-		0.01
Other (non-recurring adjustments)		0.01		-		0.01		-		-		-		0.02		-		0.02		0.02		-		0.02
Net adjustments						0.38						(0.18)						0.29						0.03
Adjusted EPS from continuing operations attributable to IGT PLC - diluted
						(0.02)						0.04						0.46						0.41
Reported effective tax rate						394.3 %						45.7 %						51.0 %						52.1 %
Adjusted effective tax rate						68.9 %						63.6 %						45.1 %						51.8 %
Adjusted EPS weighted average shares outstanding (in millions)						202(2)						203(3)						203(3)						202(3)
(1) Calculated based on nature of item, including any realizable deductions, and statutory tax rate in effect for the relevant jurisdiction
(2) Excludes the anti-dilutive impact of share-based payment awards
(3) Includes the dilutive impact of share-based payment awards

Recast Historical Financial Information

Recast data reflects the treatment of IGT's Gaming & Digital businesses as discontinued operations and revised revenue and KPI components.

International Game Technology PLC Consolidated Statements of Operations (Unaudited, $ and shares in millions, except per share amounts)
		For the three months ended				For the three months ended								For the year ended
		2024				2023								2022
		June 30,		March 31,		December 31,		September 30,		June 30,		March 31,		December 31,
Service revenue		586		619		592		576		588		602		2,440
Product sales		27		42		89		25		35		22		157
Total revenue		613		661		681		601		623		624		2,597
Cost of services		304		304		313		301		298		296		1,280
Cost of product sales		22		26		53		22		21		15		120
Selling, general and administrative		96		102		95		106		104		102		400
Research and development		11		11		10		9		9		9		45
Other operating expense, net		1		-		12		-		2		-		9
Total operating expenses		434		443		483		438		434		422		1,854
Operating income		179		219		197		163		190		202		743
Interest expense, net		53		53		54		54		50		50		216
Foreign exchange (gain) loss, net		(4)		(11)		52		(36)		3		25		17
Gain on sale of business		-		-		-		-		-		-		(278)
Other non-operating expense, net		3		4		4		3		-		6		15
Total non-operating expense (income), net		52		46		110		21		53		80		(29)
Income from continuing operations before provision for income taxes		127		173		88		142		137		122		772
Provision for income taxes		43		57		15		65		67		76		212
Income from continuing operations		84		116		73		77		69		46		560
Income (loss) from discontinued operations, net of tax		-		13		(46)		46		21		22		(146)
Net income		85		128		27		123		90		67		414
Less: Net income attributable to non-controlling interests from continuing operations		41		45		35		31		42		42		139
Less: Net income (loss) attributable to non-controlling interests from discontinued operations		2		2		-		(2)		2		2		-
Net income (loss) attributable to IGT PLC		42		82		(7)		94		46		23		275
Net income from continuing operations attributable to IGT PLC per common share - basic		0.21		0.35		0.19		0.23		0.14		0.02		2.08
Net income from continuing operations attributable to IGT PLC per common share - diluted		0.21		0.35		0.19		0.23		0.14		0.02		2.07
Net income (loss) attributable to IGT PLC per common share - basic		0.21		0.41		(0.04)		0.47		0.23		0.11		1.36
Net income (loss) attributable to IGT PLC per common share - diluted		0.21		0.40		(0.04)		0.46		0.23		0.11		1.35
Weighted-average shares - basic		201		200		200		200		200		200		202
Weighted-average shares - diluted		203		203		200		203		203		202		203

Select Performance and KPI data: ($ in millions, unless otherwise noted)
		For the three months ended				For the three months ended								For the year ended
		2024				2023								2022
		June 30,		March 31,		December 31,		September 30,		June 30,		March 31,		December 31,
Revenue
Service
Instant ticket & draw wager-based revenue		487		514		500		472		485		501		1,846
U.S. multi-state jackpot wager-based revenue		23		31		33		47		18		31		115
Upfront license fee amortization		(47)		(47)		(47)		(47)		(47)		(47)		(183)
Other		124		121		107		105		131		117		662
Total service revenue		586		619		592		576		588		602		2,440
Product Sales		27		42		89		25		35		22		157
Total revenue		613		661		681		601		623		624		2,597
Same-store sales growth (%) at constant currency (wager-based growth) (1)
Global
Instant ticket & draw games		(0.2) %		(0.2) %		(0.1) %		(0.8) %		2.0 %		5.0 %		(3.7) %
U.S. multi-state jackpots		22.5 %		(0.8) %		(28.7) %		43.6 %		(2.1) %		62.3 %		21.0 %
Total		0.9 %		(0.3) %		(3.5) %		3.1 %		1.8 %		8.0 %		(2.2) %
U.S. & Canada
Instant ticket & draw games		(1.9) %		(2.6) %		(0.9) %		(1.0) %		0.4 %		3.4 %		(3.0) %
U.S. multi-state jackpots		22.5 %		(0.8) %		(28.7) %		43.6 %		(2.1) %		62.3 %		21.0 %
Total		- %		(2.4) %		(5.8) %		4.9 %		0.2 %		8.3 %		(0.7) %
Italy
Instant ticket & draw games		2.3 %		4.4 %		2.9 %		4.7 %		8.0 %		10.3 %		(8.5) %
Rest of world
Instant ticket & draw games		3.0 %		2.6 %		(1.1) %		(6.9) %		0.3 %		3.6 %		0.6 %
(1) Same-store sales represents the change in wagers recorded in lottery jurisdictions where IGT is the operator or facilities management supplier, using the same lottery jurisdictions and perimeter for comparisons between periods

International Game Technology PLC
Consolidated Statements of Cash Flows
($ in millions)
Unaudited
	For the three months ended				For the three months ended								For the year ended
	2024				2023								2022
	June 30,		March 31,		December 31,		September 30,		June 30,		March 31,		December 31,
Cash flows from operating activities
Net income	85		128		27		123		90		67		414
Less: Income (loss) from discontinued operations, net of tax	-		13		(46)		46		21		22		(146)
Adjustments to reconcile net income to net cash provided by operating activities from continuing operations:
Depreciation	43		41		42		45		45		44		181
Amortization	8		8		10		9		10		10		45
Amortization of upfront license fees	49		50		50		50		50		49		193
Deferred income taxes	5		5		(65)		14		7		7		(42)
Stock-based compensation	9		9		5		11		10		8		34
Foreign exchange (gain) loss, net	(4)		(11)		52		(36)		3		25		17
Gain on sale of business	-		-		-		-		-		-		(278)
Other non-cash items, net	3		4		3		6		(1)		6		16
Changes in operating assets and liabilities, excluding the effects of dispositions:
Trade and other receivables	64		(45)		(32)		11		23		(57)		114
Inventories	(4)		(2)		16		(12)		(5)		(20)		(17)
Accounts payable	(44)		(25)		71		20		(112)		103		(60)
Accrued interest payable	27		(37)		34		(27)		28		(35)		(15)
Accrued income taxes	2		6		12		(14)		50		64		(29)
Other assets and liabilities	8		(53)		24		72		-		(33)		14
Net cash provided by operating activities from continuing operations	250		65		295		226		176		218		734
Net cash provided by (used in) operating activities from discontinued operations	93		55		104		70		(142)		93		165
Net cash provided by operating activities	343		120		400		296		34		311		899
Cash flows from investing activities
Capital expenditures	(40)		(35)		(43)		(31)		(36)		(38)		(162)
Proceeds from sale of business, net of cash and restricted cash transferred	-		-		-		-		-		-		476
Other	1		(2)		(4)		1		1		(2)		13
Net cash (used in) provided by investing activities from continuing operations	(39)		(37)		(47)		(29)		(35)		(39)		328
Net cash used in investing activities from discontinued operations	(58)		(46)		(57)		(69)		(64)		(52)		(159)
Net cash (used in) provided by investing activities	(97)		(83)		(104)		(98)		(99)		(91)		168
Cash flows from financing activities
Net (payments of) proceeds from short-term borrowings	(6)		(9)		(43)		55		(53)		53		(51)
Net (payments on) receipts from financial liabilities	(1)		(63)		67		(61)		(14)		8		75
Principal payments on long-term debt	-		-		(339)		-		-		(462)		(597)
Net proceeds from (repayments of) Revolving Credit Facilities	35		(72)		131		5		81		392		72
Repurchases of treasury shares	-		-		-		-		-		-		(115)
Dividends paid	(80)		-		(40)		(40)		(40)		(40)		(161)
Dividends paid - non-controlling interests	(59)		(100)		-		-		(59)		(92)		(176)
Return of capital - non-controlling interests	(35)		(10)		(18)		(10)		(36)		(10)		(75)
Other	(12)		1		(4)		(8)		(10)		(6)		(34)
Net cash used in financing activities from continuing operations	(159)		(253)		(246)		(58)		(130)		(157)		(1,063)
Net cash used in financing activities from discontinued operations	(11)		(9)		(21)		(9)		(11)		(5)		(3)
Net cash used in financing activities	(170)		(262)		(267)		(67)		(141)		(163)		(1,065)
Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents	76		(225)		29		130		(206)		57		2
Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents	(14)		(18)		13		(32)		(1)		8		(70)
Cash and cash equivalents and restricted cash and cash equivalents at the beginning of the period	497		739		697		599		805		740		808
Cash and cash equivalents and restricted cash and cash equivalents at the end of the period	559		497		739		697		599		805		740
Less: Cash and cash equivalents and restricted cash and cash equivalents of discontinued operations	86		83		86		107		115		104		99
Cash and cash equivalents and restricted cash and cash equivalents at the end of the period of continuing operations	473		414		653		590		484		701		642
Supplemental disclosures of cash flow information for continuing operations:
Interest paid	26		91		20		81		23		84		228
Income taxes paid	36		46		68		65		10		5		283

International Game Technology PLC
Reconciliation of Non-GAAP Financial Measures
(Unaudited, $ in millions)
		For the three months ended				For the three months ended								For the year ended
		2024				2023								2022
		June 30,		March 31,		December 31,		September 30,		June 30,		March 31,		December 31,
Income from continuing operations		84		116		73		77		69		46		560
Provision for income taxes		43		57		15		65		67		76		212
Interest expense, net		53		53		54		54		50		50		216
Foreign exchange (gain) loss, net		(4)		(11)		52		(36)		3		25		17
Gain on sale of business		-		-		-		-		-		-		(278)
Other non-operating expense, net		3		4		4		3		-		6		15
Operating income		179		219		197		163		190		202		743
Depreciation		43		41		42		45		45		44		181
Amortization - service revenue (1)		49		50		50		50		50		49		193
Amortization - non-purchase accounting		6		6		6		6		6		6		27
Amortization - purchase accounting		2		3		3		4		4		4		18
Stock-based compensation		9		9		5		11		10		8		34
Other		1		-		12		-		2		-		9
Adjusted EBITDA		290		327		316		279		305		314		1,205
(1) Includes amortization of upfront license fees
Cash flows from operating activities - continuing operations		250		65		295		226		176		218		734
Capital expenditures		(40)		(35)		(43)		(31)		(36)		(38)		(162)
Free Cash Flow		210		30		253		195		140		181		572

		For the three months ended
		2024
		June 30,						March 31,
		Pre-Tax Impact		Tax Impact (1)		Net Impact		Pre-Tax Impact		Tax Impact (1)		Net Impact
Reported EPS from continuing operations attributable to IGT PLC - diluted						0.21						0.35
Adjustments:
Foreign exchange (gain) loss, net		(0.02)		0.01		(0.03)		(0.06)		0.02		(0.08)
Amortization - purchase accounting		0.01		-		0.01		0.01		-		0.01
Other (non-recurring adjustments)		0.01		-		0.01		-		-		-
Net adjustments						(0.01)						(0.07)
Adjusted EPS from continuing operations attributable to IGT PLC - diluted						0.20						0.28
Reported effective tax rate						33.6 %						33.1 %
Adjusted effective tax rate						35.6 %						38.2 %
Adjusted EPS weighted average shares outstanding (in millions)						203(2)						203(2)
(1) Calculated based on nature of item, including any realizable deductions, and statutory tax rate in effect for the relevant jurisdiction
(2) Includes the dilutive impact of share-based payment awards

		For the three months ended																								For the year ended
		2023																								2022
		December 31,						September 30,						June 30,						March 31,						December 31,
		Pre-Tax Impact		Tax Impact (1)		Net Impact		Pre-Tax Impact		Tax Impact (1)		Net Impact		Pre-Tax Impact		Tax Impact (1)		Net Impact		Pre-Tax Impact		Tax Impact (1)		Net Impact		Pre-Tax Impact		Tax Impact (1)		Net Impact
Reported EPS from continuing operations attributable to IGT PLC - diluted						0.19						0.23						0.14						0.02						2.07
Adjustments:
Foreign exchange (gain) loss, net		0.26		(0.04)		0.30		(0.18)		0.02		(0.20)		0.01		-		0.01		0.12		(0.02)		0.14		0.08		0.08		0.01
Amortization - purchase accounting		0.02		-		0.01		0.02		-		0.01		0.02		-		0.02		0.02		-		0.02		0.09		0.02		0.07
Restructuring		0.06		0.02		0.04		-		-		-		0.01		-		0.01		-		-		-		0.03		0.01		0.02
Other (non-recurring adjustments)		-		-		-		-		-		-		-		-		-		0.02		-		0.02		0.07		0.01		0.07
Net adjustments						0.35						(0.18)						0.03						0.18						0.17
Adjusted EPS from continuing operations attributable to IGT PLC - diluted						0.54						0.04						0.17						0.20						2.24
Reported effective tax rate						17.0 %						45.7 %						49.3 %						62.6 %						27.5 %
Adjusted effective tax rate						7.6 %						63.6 %						48.0 %						47.1 %						28.3 %
Adjusted EPS weighted average shares outstanding (in millions)						203(2)						203(2)						203(2)						202(2)						203(2)
(1) Calculated based on nature of item, including any realizable deductions, and statutory tax rate in effect for the relevant jurisdiction
(2) Includes the dilutive impact of share-based payment awards

SOURCE International Game Technology PLC