In preparation for IGT's F4Q 2012 earnings release Thursday, we’ve put together the recent pertinent forward looking company commentary.
YOUTUBE FROM F3Q CONFERENCE CALL
- "We continued to see positive growth in our global fixed fee installed base, with an increase of 10% this year."
- "We remain confident that our international business will continue to be a strong contributor to both revenue and earnings moving forward."
- "The gaming operations environment, particularly in the wide-area progressives, remains extremely competitive."
- "We expect our fully diluted weighted average shares outstanding to be 291 million shares for fiscal 2012. Inclusive of dividends, we anticipate returning over $0.5 billion to shareholders in fiscal 2012, a clear indication of the strength of our cash flows and confidence in our strategies."
- [4Q outlook] "I think Double Down is the same. Double Down, we have a couple new products launching in August."
- "We have a couple thousand, I think, coming in the next quarter, but it's coming into new provinces where we have to get through the compliance process, so those things are in the balance. We have a little bit of Illinois in the fourth quarter. Currently, again, those things sit in the balance in many cases. We've got a couple of new Ohio properties that can go either way in the quarter."
- "We always hear very optimistic things about the intent to purchase. I think it has been less predictable. You can see in our North American replacements there were very strong shipments this quarter. We felt very good about the replacement market, so I think that that's an indication of confidence. We'd like to see that trend continue. The things that we hear from operators would indicate they'd like to continue to put capital to work, so we just have to get a little help from the economy."
- "The share repurchase is now factored into our guidance."
- "It's a fiercely competitive market and probably as competitive as it has ever been."
- "I'd characterize the VLT and the used unit sales, they're obviously dragging down the ASP. And then absent that, the sales pricing is flat against the backdrop that Patti mentioned on a unit-to-unit basis, with the non-MLD units in the mix higher than we had expected, but essentially pricing flat among those products."
- "We're obviously handily beating last year on the revenue line, but we're having challenges on the margin associated with game ops and then some of the international product sales, and we expect that those will continue to a degree."
- "But I think the yield declines are really, it's a three-headed monster for us, right. We have the economy, which I think is having an impact for us. It has been a much more elongated, as we all know, protracted recovery. So the economy is having an impact. The competition is having an impact. There are a lot more choices of games, particularly in the wide-area progressive area. That wide-area progressive business model has been under pressure for some time, and there is a lot of choices there. And then the last is we have a couple of products that aren't performing in that area that we're addressing. We've made some changes. We've made personnel changes and some process changes and some quality testing changes that I think have been long overdue."
- [2Q SG&A, R&D, D&A good run rates?] "I think you're going to continue to see some level of growth there as, for example, advertising and selling continue to factor into the Double Down model. But we will continue to make those investments as long as they're accompanied by growth in revenue, which we are seeing."
- "There's nothing that leads us to believe in any way, shape, or form at the moment that we would have an impairment issue with Double Down."
- [NA competitive environment] "I think the competitive environment there has remained relatively constant. So I would say it certainly hasn't decreased, but we haven't really seen a significant uptick either in either discounting or in the sheer volume of competitive product that's available."
- [Double Downs] "It's that need to move into the translation era with the product, into new languages... If you looked at English speaking companies, you would see it's the lion's share of the revenue. So that's an area I think that we have to make some improvement in, not just from a product perspective, but from a marketing perspective....(timing of new language conversions) I would say most of it you'll see in calendar year 2013."