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SEC Filings, Earing Reports, Press Releases
International Game Technology Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: February 11, 2010 06:12AM
International Game Technology (IGT) filed Quarterly Report for the period ended 2010-01-02.
Highlight of Business Operations:
The adoption of this new accounting guidance increased first quarter noncash interest expense $9.3 million for fiscal 2010 and $5.1 million for fiscal 2009. On an annual basis for fiscal 2010 and 2009, noncash interest expense will increase approximately $30.0 million and fiscal 2009 Debenture repurchase gains decrease approximately $5.0 million, reducing diluted EPS approximately $0.06 for fiscal 2010 and $0.08 for 2009.
Pending legal issues in Alabama have caused several charitable bingo properties to close their operations. At issue is the definition of “bingo.” Our charitable bingo operations and investments in Alabama represented approximately 2% or $9.4 million of quarterly consolidated revenues and 2% or $98.5 million of total assets, primarily development financing notes, as of and for December 31, 2009.
Gross profit and margin improvement was driven by reduced costs, primarily jackpot expense largely due to favorable interest rate changes, depreciation, royalties, and service labor. The prior year quarter gross profit also included approximately $11.5 million related to the extra week. Jackpot expense decreased $27.0 million overall, $19.0 million due to favorable interest rate movement compared to the prior year quarter. Additional information is available about factors affecting jackpot expense in our Annual Report on Form 10-K for the year ended September 30, 2009 under the caption MDA—CRITICAL ACCOUNTING ESTIMATES—Jackpot Liabilities and Expenses.
Deferred revenue decreased $15.2 million during the first quarter of fiscal 2010 to $106.8 million at December 31, 2009, primarily due to the completion of obligations under multi-element contracts. During the current quarter, we shipped 1,900 units for which revenues were deferred and recognized revenues for 2,600 units previously shipped, for a net decrease of 700 units in deferred revenue. “Units shipped” represent all units shipped to customers during the period and include units shipped for which revenues were deferred to future periods.
Stocks Discussed: IGT,