[August 27, 2014] |
|
Bally Technologies, Inc. Reports Record Revenue of $1.2 Billion and Record Adjusted EPS of $4.32 with GAAP Diluted EPS of $2.52 for the Year Ended June 30, 2014
LAS VEGAS --(Business Wire)--
Bally Technologies, Inc. (NYSE: BYI)
Bally Technologies' Chief Executive Officer Richard Haddrill (Photo: Business Wire)
-
TOTAL REVENUE INCREASES TO A RECORD $1.2 BILLION, UP 22 PERCENT
FROM PRIOR YEAR
-
ACHIEVES QUARTERLY NORTH AMERICA REPLACEMENT-UNIT SALES OF 2,503,
UP 3 PERCENT FROM PRIOR YEAR
-
SYSTEMS REVENUE SETS AN ANNUAL RECORD OF $328 MILLION, UP 30
PERCENT FROM PRIOR YEAR
-
WIDE-AREA PROGRESSIVE REVENUE SETS ANNUAL AND QUARTERLY RECORDS
Bally
Technologies, Inc. (NYSE: BYI) ("Bally" or the "Company"), a
leader in gaming machines, table game products, casino-management
systems, interactive applications, and networked and server-based
systems for the global gaming industry, today announced record annual
and quarterly revenue of $1.2 billion and $342 million, respectively,
and Adjusted EPS of $4.32 for the year ended June 30, 2014 and $1.20 for
the three months ended June 30, 2014. Adjusted EPS for the year and
three months ended June 30, 2014 includes a $0.11 and $0.01 per share
loss, respectively, from unfavorable foreign currency movements. Diluted
earnings per share ("GAAP Diluted EPS") were $2.52 and $0.31 for the
year and three months ended June 30, 2014, respectively.
"Fiscal 2014 highlights our commitment to our partners and customers in
delivering world-class player experiences through innovative products
and services," said Richard Haddrill, the Company's Chief Executive
Officer. "Strong demand for our newest cabinet, the Pro Wave™, helped
grow domestic new unit sales by 18 percent over the previous quarter.
With SHFL in the mix, we grew our international new unit sales by 25
percent further driving our global presence. We continued to deliver new
and exciting titles such as Titanic™ that drove our WAP revenue to
record levels. Our Systems technology continues to present a compelling
value proposition to our customers as evidenced by another year of
record revenue. On the interactive side, we acquired Dragonplay on July
1, 2014, a leading online social casino company, further strengthening
our presence in the fast-growing social and mobile gaming platform."
Fiscal Year 2014 Highlights
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Three Months Ended June 30,
|
|
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Year Ended June 30,
|
|
|
|
2014
|
|
% Rev
|
|
2013
|
|
% Rev
|
|
|
|
2014 (3)
|
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% Rev
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2013
|
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% Rev
|
|
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(dollars in millions, except per share amounts)
|
Revenues:
|
|
|
|
Electronic Gaming Machines ("EGM")
|
|
|
$
|
119.9
|
|
35
|
%
|
|
$
|
88.7
|
|
34
|
%
|
|
|
$
|
381.7
|
|
32
|
%
|
|
$
|
339.8
|
|
34
|
%
|
Gaming Operations
|
|
|
104.8
|
|
31
|
%
|
|
|
102.8
|
|
39
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%
|
|
|
|
405.4
|
|
33
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%
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|
405.0
|
|
41
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%
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Systems
|
|
|
75.7
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|
22
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%
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|
|
72.9
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|
27
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%
|
|
|
|
327.8
|
|
27
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%
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|
252.2
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|
25
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%
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Table Products
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41.8
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|
12
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%
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-
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-
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100.2
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8
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%
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-
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|
-
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Total revenues
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|
$
|
342.2
|
|
100
|
%
|
|
$
|
264.4
|
|
100
|
%
|
|
|
$
|
1,215.1
|
|
100
|
%
|
|
$
|
997.0
|
|
100
|
%
|
|
|
|
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Gross Margin: (1)
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EGM
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$
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62.2
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52
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%
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|
$
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44.0
|
|
50
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%
|
|
|
$
|
190.5
|
|
50
|
%
|
|
$
|
170.6
|
|
50
|
%
|
Gaming Operations
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|
|
61.3
|
|
59
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%
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|
|
71.0
|
|
69
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%
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|
|
|
266.6
|
|
66
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%
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282.8
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|
70
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%
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Systems
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54.0
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|
71
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%
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|
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57.7
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|
79
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%
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|
|
|
236.1
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|
72
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%
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192.6
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|
76
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%
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Table Products
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30.7
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|
73
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%
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|
|
-
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|
-
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70.6
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|
70
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%
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-
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|
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-
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Total gross margin
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|
$
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208.2
|
|
61
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%
|
|
$
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172.7
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|
65
|
%
|
|
|
$
|
763.8
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|
63
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%
|
|
$
|
646.0
|
|
65
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%
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|
|
|
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Selling, general and administrative
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$
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91.5
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27
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%
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$
|
72.1
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|
27
|
%
|
|
|
$
|
343.1
|
|
28
|
%
|
|
$
|
276.7
|
|
28
|
%
|
Research and development costs
|
|
|
37.0
|
|
11
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%
|
|
|
30.3
|
|
11
|
%
|
|
|
|
135.9
|
|
11
|
%
|
|
111.1
|
|
11
|
%
|
Depreciation and amortization
|
|
|
20.1
|
|
6
|
%
|
|
|
5.7
|
|
3
|
%
|
|
|
|
57.6
|
|
5
|
%
|
|
22.7
|
|
3
|
%
|
Operating income
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|
|
$
|
59.6
|
|
17
|
%
|
|
$
|
64.6
|
|
24
|
%
|
|
|
|
|
$
|
227.2
|
|
19
|
%
|
|
$
|
235.5
|
|
24
|
%
|
GAAP Diluted EPS
|
|
|
$
|
0.31
|
|
|
|
$
|
0.95
|
|
|
|
|
|
|
$
|
2.52
|
|
|
|
$
|
3.45
|
|
|
|
|
|
|
|
|
|
|
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|
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|
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|
|
|
|
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Non-GAAP Measures: (2)
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|
Adjusted Operating Income
|
|
|
$
|
92.3
|
|
27
|
%
|
|
$
|
64.6
|
|
24
|
%
|
|
|
|
|
$
|
321.0
|
|
26
|
%
|
|
$
|
235.5
|
|
24
|
%
|
Adjusted EBITDA
|
|
|
$
|
121.7
|
|
36
|
%
|
|
$
|
87.5
|
|
33
|
%
|
|
|
|
|
$
|
428.0
|
|
35
|
%
|
|
$
|
332.5
|
|
33
|
%
|
Adjusted EPS
|
|
|
$
|
1.20
|
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|
$
|
0.95
|
|
|
|
|
|
|
$
|
4.32
|
|
|
|
$
|
3.45
|
|
|
|
(1)
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Gross Margin excludes amortization related to intangible assets
which are included in depreciation and amortization ("D&A").
|
(2)
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Adjusted Operating Income, Adjusted EBITDA (earnings before
interest, taxes, depreciation and amortization, share-based
compensation and restructuring and acquisition-related costs) and
Adjusted EPS are Non-GAAP financial measures. Reconciliations
between GAAP and Non-GAAP measures can be found at the end of this
press release.
|
(3)
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Results for the year ended June 30, 2014 include SHFL entertainment,
Inc. ("SHFL") results beginning on November 25, 2013.
|
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As of June 30,
|
|
|
|
2014
|
|
2013
|
End-of-period installed base:
|
|
|
|
|
|
Linked progressive systems
|
|
|
2,486
|
|
2,463
|
Rental and daily-fee games
|
|
|
16,080
|
|
14,855
|
Lottery systems (1)
|
|
|
12,543
|
|
11,846
|
Centrally determined systems
|
|
|
29,663
|
|
35,284
|
Utility products
|
|
|
8,923
|
|
NA
|
Proprietary Table Games ("PTG")
|
|
|
3,037
|
|
NA
|
Table game progressive units, table game side bets, and add-ons
|
|
|
5,685
|
|
NA
|
(1)
|
|
Excludes 703 and 727 third-party Electronic Table System ("ETS")
seats operating as of June 30, 2014 and 2013, respectively.
|
|
|
|
Three Months Ended June 30,
|
|
|
Year Ended June 30,
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
Operating Statistics
|
|
|
Units Sold
|
|
Average Selling Price ("ASP")
|
|
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Units Sold
|
|
ASP
|
|
|
Units Sold
|
|
ASP
|
|
|
Units Sold
|
|
ASP
|
New EGM
|
|
|
6,350
|
|
$
|
17,472
|
|
|
4,911
|
|
$
|
16,224
|
|
|
20,775
|
|
$
|
16,799
|
|
|
19,007
|
|
$
|
16,411
|
Utility products
|
|
|
630
|
|
$
|
16,032
|
|
|
NA
|
|
NA
|
|
|
1,556
|
|
$
|
16,143
|
|
|
NA
|
|
NA
|
Highlights of Certain Results for the Three Months Ended June 30, 2014
Overall
-
Total revenue increased 29 percent to a quarterly record $342 million
as compared with $264 million last year.
-
Adjusted EBITDA increased 39 percent to a quarterly record $122
million as compared with $88 million last year.
-
Selling, general and administrative expenses ("SG&A") remained
constant at 27 percent of total revenues and includes $11 million of
restructuring and acquisition-related costs. After adjusting for these
costs, SG&A was 24 percent of total revenues in the current period,
down from 27 percent last year.
-
Research and development expenses ("R&D") remained constant at 11
percent of total revenue.
-
Operating income decreased 8 percent to $60 million as compared with
$65 million last year. Adjusted Operating Income increased by 43
percent to a record $92 million. Adjusted operating margin increased
to 27 percent from 24 percent last year.
-
GAAP Diluted EPS was $0.31 as compared with $0.95 last year. Adjusted
EPS increased 26 percent to a quarterly record $1.20 from $0.95 last
year. GAAP Diluted EPS and Adjusted EPS for the current period
included a $0.01 per share loss from unfavorable foreign currency
movements.
Electronic Gaming Machines
-
Revenues increased 35 percent to $120 million as compared with $89
million last year, driven by higher replacement sales, and the sale of
1,262 Equinox™ units and 343 ETS seats.
-
ASP of new electronic gaming devices increased 8 percent to $17,472
per unit from $16,224 last year, primarily as a result of geographic
mix and sales of the new Pro Wave™ cabinet, which carry higher ASPs.
-
New-unit sales to international customers were 36 percent of total new
unit shipments compared to 24 percent in the prior year period.
-
Gross margin increased to 52 percent from 50 percent last year,
primarily due to regional mix particularly towards the Australian and
Asian markets.
Gaming Operations
-
Revenues increased to $105 million as compared with $103 million last
year, driven by continued placement of premium games, record wide-area
progressive ("WAP") revenue, and the inclusion of 2,173 leased ETS
seats, partially offset by decreases in participation revenue during
the same period.
-
Gross margin decreased to 59 percent from 69 percent last year,
primarily due to higher jackpot expenses and $7 million of
restructuring and acquisition-related costs. After adjusting for these
costs, gross margin was 65 percent.
Systems
-
Revenues increased 4 percent to $76 million as compared with $73
million last year, driven primarily by hardware revenue.
-
Maintenance revenues decreased 5 percent to $23 million as compared
with $25 million last year, driven primarily by certain customer
credits issued.
-
Gross margin decreased to 71 percent from 79 percent last year,
primarily due to the higher mix of hardware revenues generated during
the current period. Specifically, hardware sales were 37 percent of
systems revenues, and software and service sales were 32 percent, as
compared to 28 percent for hardware sales and 38 percent for software
and services sales in the same period last year.
Table Products
-
Revenues from Table Products were $42 million, with Utility products
revenue of $27 million and PTG revenue of $15 million, and are
entirely due to the acquisition of SHFL.
-
Gross margin was 73 percent. Gross margin was impacted by $2 million
of acquisition-related costs. After adjusting for these costs, gross
margin was 77 percent.
Highlights of Certain Results for the Year Ended June 30, 2014
Overall
-
Total revenue increased 22 percent to a record $1,215 million as
compared with $997 million last year.
-
Adjusted EBITDA increased 29 percent to a record $428 million as
compared with $333 million last year.
-
SG&A remained constant at 28 percent of total revenues and includes
$44 million of restructuring and acquisition-related costs. After
adjusting for these costs, SG&A was 25 percent of total revenues in
the current period down from 28 percent last year.
-
R&D remained constant at 11 percent of total revenues.
-
Operating income decreased 4 percent to $227 million as compared with
$236 million last year. Adjusted Operating Income increased 36 percent
to a record $321 million. Adjusted operating margin increased to a 26
percent from 24 percent last year.
-
GAAP Diluted EPS was $2.52 as compared with $3.45 last year. Adjusted
EPS increased 25 percent to a record $4.32 from $3.45 last year. GAAP
Diluted EPS and Adjusted EPS for the current period included a $0.11
per share loss from unfavorable foreign currency movements.
Electronic Gaming Machines
-
Revenues increased 12 percent to $382 million as compared with $340
million last year, driven by the shipment of 2,834 units into the
Illinois Video Game Terminal ("VGT") market, and the sale of 2,779
Equinox™ units and 644 ETS seats, partially offset by a decrease in
Canadian video lottery terminal ("VLT") units sold from 2,226 units in
fiscal year 2013, when compared to 25 units this fiscal year 2014.
-
ASP of new gaming devices increased to $16,799 per unit from $16,411
last year, due primarily to geographic mix and sales of the new Pro
Wave™ cabinet which carry higher ASPs.
-
New-unit sales to international customers were 31 percent of total new
unit shipments compared with 19 percent last year.
-
Gross margin remained constant at 50 percent and includes
approximately $4 million of acquisition-related costs. After adjusting
for these costs, gross margin was 51 percent.
Gaming Operations
-
Revenues increased in fiscal year 2014, driven by significant
investments we have made in our game development studios and game
platforms over the past few years, the continued placement of premium
games, record WAP revenue, and the inclusion of 2,173 leased ETS
seats, partially offset by decreases in participation revenue during
the same period.
-
Gross margin decreased to 66 percent from 70 percent last year,
primarily due to higher-than-expected jackpot expenses, the inclusion
of lower margin leased ETS seats, and approximately $8 million of
restructuring and acquisition-related costs. After adjusting for these
costs, gross margin was 68 percent.
Systems
-
Revenues increased 30 percent to a record $328 million as compared
with $252 million last year, due primarily to large system
installations and continued growth of our recurring customer base.
-
Maintenance revenues increased 7 percent to a record $97 million as
compared with $91 million last year.
-
Gross margin decreased to 72 percent from 76 percent last year,
primarily due to the higher mix of hardware revenues generated during
the current period. Specifically, hardware sales were 38 percent of
systems revenues, and software and service sales were 32 percent, as
compared to 30 percent for hardware sales and 34 percent for software
and services sales in the same period last year.
Table Products
-
Revenues from Table Products were $100 million, with Utility products
revenue of $65 million and PTG revenue of $35 million, and are
entirely due to the acquisition of SHFL.
-
Gross margin was 70 percent. Gross margin was impacted by
approximately $5 million of acquisition-related costs. After adjusting
for these one-time costs, gross margin was 76 percent.
Non-GAAP Financial Measures
The following table reconciles the Company's net income attributable to
Bally Technologies, Inc., as determined in accordance with generally
accepted accounting principles ("GAAP"), to Adjusted EBITDA:
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
|
|
(in millions)
|
Net income attributable to Bally Technologies, Inc.
|
|
|
$
|
12.2
|
|
$
|
37.3
|
|
|
$
|
98.6
|
|
$
|
141.4
|
Interest expense, net
|
|
|
17.7
|
|
3.0
|
|
|
47.8
|
|
12.8
|
Income tax expense
|
|
|
21.6
|
|
21.2
|
|
|
66.1
|
|
76.6
|
Depreciation and amortization
|
|
|
40.3
|
|
22.3
|
|
|
133.7
|
|
88.3
|
Share-based compensation
|
|
|
3.6
|
|
3.7
|
|
|
14.0
|
|
13.4
|
Restructuring and acquisition-related costs
|
|
|
19.0
|
|
-
|
|
|
60.5
|
|
-
|
Loss on extinguishment of debt
|
|
|
|
7.3
|
|
|
-
|
|
|
|
7.3
|
|
|
-
|
Adjusted EBITDA
|
|
|
$
|
121.7
|
|
$
|
87.5
|
|
|
$
|
428.0
|
|
$
|
332.5
|
Adjusted EBITDA is a supplemental Non-GAAP financial measure used by the
Company's management and by some industry analysts to evaluate the
Company's ability to service debt, and is used by some investors and
financial analysts in the gaming industry in measuring and comparing
Bally's leverage, liquidity, and operating performance to other gaming
companies. Adjusted EBITDA should not be considered an alternative to
operating income or net cash from operations as determined in accordance
with GAAP. Not all companies calculate Adjusted EBITDA the same way, and
the Company's presentation may be different from those presented by
other companies.
The components of restructuring charges are related primarily to
executive transition costs, inventory and fixed assets write-offs and
non-cancelable lease costs related to excess facilities.
Acquisition-related costs include financial advisory, legal and debt
fees; accounting, consulting, and professional fees associated with due
diligence, valuation and integration; severance; and adjustments related
to step-up in inventory basis and amortization of purchased intangible
assets.
The following tables reconcile the Company's GAAP to Non-GAAP Financial
Measures:
Three Months Ended June 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
|
|
SG&A
|
|
|
|
Operating
|
|
Net
|
|
|
|
|
|
Revenues
|
|
Margin (1)
|
|
Expenses
|
|
D&A
|
|
Income
|
|
Income (2)
|
|
EPS
|
|
|
|
(in millions, except per share data)
|
GAAP Measures
|
|
|
$
|
342.2
|
|
$
|
208.2
|
|
|
$
|
91.5
|
|
|
$
|
20.1
|
|
|
$
|
59.6
|
|
|
$
|
12.2
|
|
$
|
0.31
|
GAAP %
|
|
|
|
|
61
|
%
|
|
27
|
%
|
|
|
|
17
|
%
|
|
|
|
|
Amortization of purchased intangibles
|
|
|
-
|
|
-
|
|
|
-
|
|
|
(13.4
|
)
|
|
13.4
|
|
|
8.6
|
|
0.22
|
Restructuring and acquisition-related costs
|
|
|
-
|
|
8.5
|
|
|
(10.8
|
)
|
|
-
|
|
|
19.3
|
|
|
15.5
|
|
0.40
|
Loss on extinguishment of debt
|
|
|
-
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
4.7
|
|
0.12
|
One-time income tax items (3)
|
|
|
-
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
5.8
|
|
0.15
|
Total adjustments
|
|
|
-
|
|
8.5
|
|
|
(10.8
|
)
|
|
(13.4
|
)
|
|
32.7
|
|
|
34.6
|
|
0.89
|
Adjusted Non-GAAP Measures
|
|
|
$
|
342.2
|
|
$
|
216.7
|
|
|
$
|
80.7
|
|
|
$
|
6.7
|
|
|
$
|
92.3
|
|
|
$
|
46.8
|
|
$
|
1.20
|
Adjusted %
|
|
|
|
|
63
|
%
|
|
24
|
%
|
|
|
|
27
|
%
|
|
|
|
|
(1)
|
|
Gross Margin excludes amortization related to intangible assets
which are included in depreciation and amortization.
|
(2)
|
|
Adjustments are tax affected at 35.5%, with the exception of
non-deductible items included in restructuring and
acquisition-related costs.
|
(3)
|
|
Income tax expense was impacted by the write-off of net operating
loss carryforwards.
|
Year Ended June 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
|
|
SG&A
|
|
|
|
Operating
|
|
Net
|
|
|
|
|
|
Revenues
|
|
Margin (1)
|
|
Expenses
|
|
D&A
|
|
Income
|
|
Income (2)
|
|
EPS
|
|
|
|
(in millions, except per share data)
|
GAAP Measures
|
|
|
$
|
1,215.1
|
|
$
|
763.8
|
|
|
$
|
343.1
|
|
|
$
|
57.6
|
|
|
$
|
227.2
|
|
|
$
|
98.6
|
|
$
|
2.52
|
GAAP %
|
|
|
|
|
63
|
%
|
|
28
|
%
|
|
|
|
19
|
%
|
|
|
|
|
Amortization of purchased intangibles
|
|
|
-
|
|
-
|
|
|
-
|
|
|
(33.0
|
)
|
|
33.0
|
|
|
21.3
|
|
0.54
|
Restructuring and acquisition-related costs
|
|
|
-
|
|
16.9
|
|
|
(43.9
|
)
|
|
-
|
|
|
60.8
|
|
|
42.2
|
|
1.08
|
Loss on extinguishment of debt
|
|
|
-
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
4.7
|
|
0.12
|
One-time income tax items (3)
|
|
|
-
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
2.2
|
|
0.06
|
Total adjustments
|
|
|
-
|
|
16.9
|
|
|
(43.9
|
)
|
|
(33.0
|
)
|
|
93.8
|
|
|
70.4
|
|
1.80
|
Adjusted Non-GAAP Measures
|
|
|
$
|
1,215.1
|
|
$
|
780.7
|
|
|
$
|
299.2
|
|
|
$
|
24.6
|
|
|
$
|
321.0
|
|
|
$
|
169.0
|
|
$
|
4.32
|
Adjusted %
|
|
|
|
|
64
|
%
|
|
25
|
%
|
|
|
|
26
|
%
|
|
|
|
|
(1)
|
|
Gross Margin excludes amortization related to intangible assets
which are included in depreciation and amortization.
|
(2)
|
|
Adjustments are tax affected at 35.5%, with the exception of
non-deductible items included in restructuring and
acquisition-related costs.
|
(3)
|
|
Income tax expense was favorably impacted by a one-time IRS
settlement partially offset by a write-off of net operating loss
carryforwards.
|
Adjusted EPS and other such adjusted measures are supplemental Non-GAAP
financial measures that the Company's management believes more
accurately reflects the Company's operating results for the periods
presented. Adjusted measures should not be considered an alternative to
GAAP measures as determined in accordance with GAAP.
About
Bally Technologies, Inc.
Founded in 1932, Bally Technologies (NYSE: BYI) provides the global
gaming industry with innovative games, table game products, systems,
mobile, and iGaming solutions that drive revenue and provide operating
efficiencies for gaming operators. For more information, please visit http://www.ballytech.com.
Connect with Bally on Facebook,
Twitter,
YouTube,
and LinkedIn.
This press release may contain "forward looking" statements within
the meaning of the Securities Act of 1933, as amended, and the
Securities Exchange Act of 1934, as amended, and is subject to the safe
harbors created thereby. Forward looking statements are subject to
change and involve risks and uncertainties that could significantly
affect future results, including those risks detailed from time to time
in the Company's filings with the Securities and Exchange Commission.
Although the Company believes any expectations expressed in any
forward looking statements are reasonable, future results may differ
materially from those expressed in any forward looking statements. The
Company undertakes no obligation to update the information in this press
release except as required by law and represents that the information
speaks only as of today's date.
- BALLY TECHNOLOGIES, INC. -
BALLY TECHNOLOGIES, INC. AND SUBSIDIARIES UNAUDITED
CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE
MONTHS AND YEAR ENDED JUNE, 30 2014 AND JUNE 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
|
|
|
(in 000s, except per share amounts)
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
Gaming equipment and systems
|
|
|
$
|
209,457
|
|
$
|
161,625
|
|
|
|
$
|
743,571
|
|
$
|
592,061
|
|
Product lease, operation and royalty
|
|
|
132,754
|
|
102,777
|
|
|
|
471,521
|
|
404,978
|
|
|
|
|
342,211
|
|
264,402
|
|
|
|
1,215,092
|
|
997,039
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
Cost of gaming equipment and systems (1)
|
|
|
84,568
|
|
59,827
|
|
|
|
298,297
|
|
228,805
|
|
Cost of product lease, operation and royalty(1)
|
|
|
49,458
|
|
31,868
|
|
|
|
152,979
|
|
122,188
|
|
Selling, general and administrative
|
|
|
91,491
|
|
72,099
|
|
|
|
343,152
|
|
276,685
|
|
Research and development costs
|
|
|
36,972
|
|
30,326
|
|
|
|
135,862
|
|
111,118
|
|
Depreciation and amortization
|
|
|
20,108
|
|
5,687
|
|
|
|
57,568
|
|
22,733
|
|
|
|
|
282,597
|
|
199,807
|
|
|
|
987,858
|
|
761,529
|
|
Operating income
|
|
|
59,614
|
|
64,595
|
|
|
|
227,234
|
|
235,510
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
1,965
|
|
1,590
|
|
|
|
8,911
|
|
5,328
|
|
Interest expense
|
|
|
(19,677
|
)
|
(4,576
|
)
|
|
|
(56,760
|
)
|
(18,120
|
)
|
Loss on extinguishment of debt
|
|
|
(7,346
|
)
|
-
|
|
|
|
(7,346
|
)
|
-
|
|
Other, net
|
|
|
(637
|
)
|
(3,107
|
)
|
|
|
(6,199
|
)
|
(6,443
|
)
|
Income from operations before income taxes
|
|
|
33,919
|
|
58,502
|
|
|
|
165,840
|
|
216,275
|
|
Income tax expense
|
|
|
(21,597
|
)
|
(21,229
|
)
|
|
|
(66,074
|
)
|
(76,574
|
)
|
Net income
|
|
|
12,322
|
|
37,273
|
|
|
|
99,766
|
|
139,701
|
|
Less net income (loss) attributable to noncontrolling interests
|
|
|
161
|
|
(64
|
)
|
|
|
1,166
|
|
(1,743
|
)
|
Net income attributable to Bally Technologies, Inc.
|
|
|
$
|
12,161
|
|
$
|
37,337
|
|
|
|
$
|
98,600
|
|
$
|
141,444
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted earnings per share attributable to Bally
Technologies, Inc.:
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
|
|
$
|
0.32
|
|
$
|
0.96
|
|
|
|
$
|
2.56
|
|
$
|
3.53
|
|
Diluted earnings per share
|
|
|
$
|
0.31
|
|
$
|
0.95
|
|
|
|
$
|
2.52
|
|
$
|
3.45
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
38,511
|
|
38,696
|
|
|
|
38,489
|
|
40,120
|
|
Diluted
|
|
|
39,022
|
|
39,374
|
|
|
|
39,138
|
|
40,992
|
|
(1)
|
|
Cost of gaming equipment and systems and product lease, operation
and royalty exclude amortization related to intangible assets which
are included in depreciation and amortization.
|
BALLY TECHNOLOGIES, INC. AND SUBSIDIARIES UNAUDITED
CONSOLIDATED BALANCE SHEETS AS OF JUNE 30, 2014 AND
JUNE 30, 2013
|
|
|
|
|
|
|
|
|
|
|
June 30, 2014
|
|
|
June 30, 2013
|
|
|
|
(in 000s, except par value amount)
|
ASSETS
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
77,439
|
|
|
|
$
|
63,220
|
|
Restricted cash
|
|
|
17,179
|
|
|
|
12,939
|
|
Accounts and notes receivable, net of allowances for doubtful
accounts of $14,806 and $14,813
|
|
|
314,119
|
|
|
|
248,497
|
|
Inventories
|
|
|
82,289
|
|
|
|
68,407
|
|
Prepaid and refundable income tax
|
|
|
21,938
|
|
|
|
21,845
|
|
Deferred income tax assets
|
|
|
36,934
|
|
|
|
38,305
|
|
Deferred cost of revenue
|
|
|
15,723
|
|
|
|
22,417
|
|
Prepaid assets
|
|
|
21,800
|
|
|
|
14,527
|
|
Other current assets
|
|
|
6,013
|
|
|
|
2,920
|
|
Total current assets
|
|
|
593,434
|
|
|
|
493,077
|
|
Restricted long-term cash and investments
|
|
|
93,977
|
|
|
|
14,786
|
|
Long-term accounts and notes receivables, net of allowances for
doubtful accounts of $929 and $1,764
|
|
|
50,329
|
|
|
|
65,456
|
|
Property, plant and equipment, net
|
|
|
70,218
|
|
|
|
35,097
|
|
Leased gaming equipment, net
|
|
|
131,504
|
|
|
|
113,751
|
|
Goodwill
|
|
|
1,003,377
|
|
|
|
172,162
|
|
Intangible assets, net
|
|
|
508,245
|
|
|
|
25,076
|
|
Deferred income tax assets
|
|
|
3,892
|
|
|
|
17,944
|
|
Income tax receivable
|
|
|
457
|
|
|
|
1,837
|
|
Deferred cost of revenue
|
|
|
6,989
|
|
|
|
12,105
|
|
Other assets, net
|
|
|
56,389
|
|
|
|
27,974
|
|
Total assets
|
|
|
$
|
2,518,811
|
|
|
|
$
|
979,265
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
37,651
|
|
|
|
$
|
25,863
|
|
Accrued and other liabilities
|
|
|
115,010
|
|
|
|
91,127
|
|
Jackpot liabilities
|
|
|
11,726
|
|
|
|
11,731
|
|
Deferred revenue
|
|
|
43,161
|
|
|
|
62,254
|
|
Income tax payable
|
|
|
5,554
|
|
|
|
11,345
|
|
Current maturities of long-term debt
|
|
|
38,465
|
|
|
|
24,615
|
|
Total current liabilities
|
|
|
251,567
|
|
|
|
226,935
|
|
Long-term debt, net of current maturities
|
|
|
1,886,953
|
|
|
|
580,000
|
|
Deferred revenue
|
|
|
20,209
|
|
|
|
23,696
|
|
Other income tax liability
|
|
|
10,355
|
|
|
|
12,658
|
|
Deferred income tax liabilities
|
|
|
110,899
|
|
|
|
171
|
|
Other liabilities
|
|
|
32,907
|
|
|
|
16,633
|
|
Total liabilities
|
|
|
2,312,890
|
|
|
|
860,093
|
|
Commitments and contingencies
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
Common stock, $.10 par value; 100,000 shares authorized; 66,047 and 65,318
shares issued and 38,694 and 38,855 outstanding
|
|
|
6,595
|
|
|
|
6,523
|
|
Treasury stock at cost, 27,353 and 26,463 shares
|
|
|
(1,134,407
|
)
|
|
|
(1,058,381
|
)
|
Additional paid-in capital
|
|
|
593,427
|
|
|
|
535,759
|
|
Accumulated other comprehensive loss
|
|
|
(5,423
|
)
|
|
|
(10,692
|
)
|
Retained earnings
|
|
|
744,939
|
|
|
|
646,339
|
|
Total Bally Technologies, Inc. stockholders' equity
|
|
|
205,131
|
|
|
|
119,548
|
|
Noncontrolling interests
|
|
|
790
|
|
|
|
(376
|
)
|
Total stockholders' equity
|
|
|
205,921
|
|
|
|
119,172
|
|
Total liabilities and stockholders' equity
|
|
|
$
|
2,518,811
|
|
|
|
$
|
979,265
|
|
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