Printer Friendly

INTERNATIONAL GAME TECHNOLOGY REPORTS 50-PERCENT GROWTH IN NET EARNINGS

 RENO, Nev., July 20 /PRNewswire/ -- International Game Technology (NYSE: IGT) reported a 50-percent growth in net income and a 44-percent increase in earnings per share (fully diluted) for the third quarter ended June 30, 1993. Net income for the quarter was $30.0 million, or 23 cents per share, compared to $20.0 million, or 16 cents per share in the corresponding prior-year quarter. Record revenues for the third quarter reached $141.2 million, an increase of 15 percent over the $123.3 million a year ago.
 For the nine months ended June 30, 1993, net income was $84.3 million, or 64 cents per fully diluted share, including an after- tax gain of $14.0 million related to the sale of the company's riverboat investments. Before the gain, net income and earnings per share were $70.3 million and 53 cents, respectively. This represents a year-over- year improvement in net income and earnings per share of 69 percent and 56 percent, respectively. Revenues for the nine-month period grew 26 percent to $343.8 million from $272.1 million a year ago.
 The improvement in 1993 earnings resulted primarily from a 17-percent growth in product sales revenue for the quarter, and a 35-percent increase for the year. Additionally, the company showed increases in gaming and casino operations revenue of 10 percent and 14 percent respectively, for the quarter and nine months ended June 30, 1993.
 The company shipped over 19,000 units during the quarter, and 43,000 year-to-date. This compares to 15,000 and 30,000 units shipped in the same periods last year. The increase in unit sales is primarily attributable to added demand from U.S. riverboats, Indian Casinos, cruise ships and greater sales to Nevada and Atlantic City casinos. Overseas, product sales also grew as a result of expanded efforts in Europe and 2,800 pachisuro machines to the company's Japanese distributor.
 Operating expenses increased 10 percent and 21 percent for the quarter and the nine-month period. The growth is primarily due to additional depreciation recorded on machines leased to customers in Colorado and to riverboat operators in Mississippi, Iowa and Illinois. Additionally, research and development expenses grew resulting from additional engineering costs in North America and Australia.
 Operating income grew to record levels during the quarter and nine-month period to $43.4 million and $97.3 million, respectively, representing a 26-percent increase for the quarter and a 43-percent improvement year-to-date.
 Other income and expense netted income of $6.0 million for the quarter, and $41.7 million for the nine months ended June 30, 1993. The additional non-operating income results from the gain recorded on the company's sale of its riverboat operations during the first quarter of fiscal 1993 as well as gains from the sale of certain securities held in its investment portfolio. Additionally, interest income increased as a result of the investment of proceeds received on the sale of its riverboat operations.
 On June 30, 1993, the company announced the declaration of its second 3-cents-per-share quarterly dividend payable on Sept. 1, 1993, to shareholders of record at the close of business on Aug. 2, 1993.
 As previously announced at the February shareholders meeting, John J. "Bud" Russell became chief executive officer at the end of this quarter. To keep pace with and fulfill the rapid increase in demand for IGT products worldwide, Charles Mathewson, chairman of the board of directors, announced today a reorganization aimed at obtaining the efficiency and responsiveness of fully integrated, decentralized profit centers with experienced senior IGT executives providing centralized strategic direction and oversight.
 Joining Russell in the newly created "Office of the President" will be Executive Vice Presidents G. Thomas Baker -- Finance; Peter D. Dickinson -- Corporate Operations; Robert M. McMonigle -- Corporate Relations; and Raymond D. Pike -- Corporate Development. To assume the direct responsibilities for two new organizational profit centers, Russell appointed Robert A. Bittman as president of IGT North America and Dick Vink as president of IGT International
 International Game Technology is the world leader in the design, development and manufacture of microprocessor-based gaming products and proprietary software systems in all legalized gaming jurisdictions.
 INTERNATIONAL GAME TECHNOLOGY
 Financial Highlights
 (In Thousands Except Per Share Amount)
 Three months Nine months
 ended June 30, ended June 30,
 1993 1992 1993 1992
 Revenues
 Product sales $ 92,090 $ 78,850 $214,162 $158,667
 Gaming and casino
 operations 49,115 44,460 129,628 113,445
 Total revenues 141,205 123,310 343,790 272,112
 Costs and expenses
 Cost of product sales 46,463 41,936 107,767 84,231
 Gaming and casino
 operations 21,437 20,372 57,002 50,166
 Selling, general and
 administrative 18,591 17,138 49,408 47,360
 Depreciation and
 amortization 5,843 4,789 16,807 11,375
 Research and development 4,112 3,340 11,996 7,867
 Provision for bad debts 1,362 1,299 3,526 3,290
 Total costs and
 expenses 97,808 88,874 246,506 204,289
 Income from operations 43,397 34,436 97,284 67,823
 Other income (expense)
 Interest income 6,808 5,231 19,611 15,544
 Interest expense (3,531) (3,473) (10,895) (10,281)
 Minority interest in
 income of consolidated
 subsidiaries (136) (106) (552) (378)
 Equity in unconsolidated
 subsidiaries -- (1) 631 (791)
 Gain on the sale of assets 2,952 110 9,583 132
 Gain on the sale of
 investments in riverboat
 operations -- -- 23,586 --
 Other (104) (3,000) (231) (3,000)
 Other income
 (expense), net 5,989 (1,239) 41,733 1,226
 Income before
 income taxes 49,386 33,197 139,017 69,049
 Provision for income taxes 19,376 13,224 54,719 27,567
 Net income $ 30,010 $ 19,973 $ 84,298 $ 41,482
 Primary earnings per share $0.24 $0.17 $0.68 $0.35
 Fully diluted earnings
 per share $0.23 $0.16 $0.64 $0.34
 Weighted average common and
 common equivalent shares
 outstanding 124,973 120,514 124,683 119,758
 Weighted average common shares
 assuming full dilution 136,667 135,133 138,336 134,805
 -0- 7/20/93
 /CONTACT: G. Thomas Baker of International Game Technology, 702-688-0110/
 (IGT)


CO: International Game Technology ST: Nevada IN: CNO SU: ERN

GT-SG -- SF004 -- 6547 07/20/93 08:20 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 20, 1993
Words:1046
Previous Article:NEW HORIZONS EARNS $839,000, OR 38 CENTS PER SHARE, IN SECOND QUARTER; NON-PERFORMING ASSETS DECLINE 36 PERCENT TO 1.94 PERCENT OF TOTAL ASSETS
Next Article:CONTINENTAL SAVINGS OF AMERICA ANNOUNCES EARNINGS FOR THE PERIOD ENDED JUNE 30, 1993
Topics:


Related Articles
INTERNATIONAL GAME TECHNOLOGY REPORTS 74 PERCENT INCREASE IN OPERATING PROFITS FOR THE FIRST QUARTER ENDED DEC. 31, 1992
INTERNATIONAL GAME TECHNOLOGY REPORTS STRONG INCREASES IN NET INCOME FOR THE QUARTER AND SIX MONTHS ENDED MARCH 31, 1993
JOHNSON & JOHNSON FIRST QUARTER EPS UP 10.3 PERCENT SALES INCREASE 3.8 PERCENT
CAMPBELL REPORTS RECORD SALES, EARNINGS FOR FOURTH QUARTER AND 1995 FISCAL YEAR; EPS UP 12 PERCENT FOR YEAR
EMERSON REPORTS 38TH CONSECUTIVE YEAR OF INCREASED EARNINGS AND EARNINGS PER SHARE
TYCO REPORTS HIGHEST EVER THIRD QUARTER EARNINGS EARNINGS UP 21 PERCENT TO 52 CENTS
Visio Corporation Reports Third Quarter 1999 Results Company Continues To Penetrate Corporate Market.
Airborne Freight Corporation Reports Second Quarter 1999 Results.
Electronic Arts Announces Third Fiscal Quarter Results.
Cardinal Health Reports Record Fourth Quarter And Fiscal Year 2003 Financial Performance; Full year operating cash flow reaches record $1.4 billion.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters