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8-K - 8-K - BALLY TECHNOLOGIES, INC.a14-20293_18k.htm

Exhibit 99.1

 

GRAPHIC

 

 

 

 

 

 

Investor Contact: Michael J. Carlotti

 

Media Contact: Mike Trask

(702) 532-7995

 

(702) 532-7451

mcarlotti@ballytech.com

 

mtrask@ballytech.com

 

 

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

 

-                   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

 

 

LAS VEGAS, August 27, 2014 — 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.”

 



 

Bally Technologies, Inc. Reports Adjusted EPS of $4.32 and Diluted EPS of $2.52 for Fiscal 2014

Page - 2 of 8

 

Fiscal Year 2014 Highlights

 

 

 

Three Months Ended June 30,

 

Year Ended June 30,

 

 

 

2014

 

%
Rev

 

 

2013

 

%
Rev

 

2014 (3)

 

%
Rev

 

 

2013

 

%
Rev

 

 

 

 

(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%

 

405.4

 

33%

 

 

405.0

 

41%

 

Systems

 

 

75.7

 

22%

 

72.9

 

27%

 

327.8

 

27%

 

 

252.2

 

25%

 

Table Products

 

 

41.8

 

12%

 

 

 

100.2

 

8%

 

 

 

 

Total revenues

 

$

342.2

 

100%

 

$

264.4

 

100%

 

$

1,215.1

 

100%

 

$

997.0

 

100%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Margin: (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EGM

 

$

62.2

 

52%

 

$

44.0

 

50%

 

$

190.5

 

50%

 

$

170.6

 

50%

 

Gaming Operations

 

 

61.3

 

59%

 

71.0

 

69%

 

266.6

 

66%

 

 

282.8

 

70%

 

Systems

 

 

54.0

 

71%

 

57.7

 

79%

 

236.1

 

72%

 

 

192.6

 

76%

 

Table Products

 

 

30.7

 

73%

 

 

 

70.6

 

70%

 

 

 

 

Total gross margin

 

$

208.2

 

61%

 

$

172.7

 

65%

 

$

763.8

 

63%

 

$

 646.0

 

65%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

$

91.5

 

27%

 

$

72.1

 

27%

 

$

343.1

 

28%

 

$

276.7

 

28%

 

Research and development costs

 

 

37.0

 

11%

 

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

 

$

59.6

 

17%

 

$

64.6

 

24%

 

$

227.2

 

19%

 

$

235.5

 

24%

 

GAAP Diluted EPS

 

$

0.31

 

 

 

$

0.95

 

 

 

$

2.52

 

 

 

$

3.45

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Measures: (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

$

0.95

 

 

 

$

4.32

 

 

 

$

3.45

 

 

 

 

(1)          Gross Margin excludes amortization related to intangible assets which are included in depreciation and amortization (“D&A”).

(2)          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)          Results for the year ended June 30, 2014 include SHFL entertainment, Inc. (“SHFL”) results beginning on November 25, 2013.

 

 

 

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”)

 

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

 

 



 

Bally Technologies, Inc. Reports Adjusted EPS of $4.32 and Diluted EPS of $2.52 for Fiscal 2014

Page - 3 of 8

 

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.

 



 

Bally Technologies, Inc. Reports Adjusted EPS of $4.32 and Diluted EPS of $2.52 for Fiscal 2014

Page - 4 of 8

 

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.

 



 

Bally Technologies, Inc. Reports Adjusted EPS of $4.32 and Diluted EPS of $2.52 for Fiscal 2014

Page - 5 of 8

 

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.

 



 

Bally Technologies, Inc. Reports Adjusted EPS of $4.32 and Diluted EPS of $2.52 for Fiscal 2014

Page - 6 of 8

 

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. Reports Adjusted EPS of $4.32 and Diluted EPS of $2.52 for Fiscal 2014

Page - 7 of 8

 

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. Reports Adjusted EPS of $4.32 and Diluted EPS of $2.52 for Fiscal 2014

Page - 8 of 8

 

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