In preparation for BYI's F3Q 2013 earnings release tomorrow, we’ve put together the recent pertinent forward looking company commentary.
POST FQ2 CONFERENCE CALL COMMENTS
- "With respect to games operations… NASCAR is one of the most anticipated games and that should be coming out in the next few months. The Hot Shot Dual Wheel… is an internal brand. We recently introduced a WAP game with a dual wheel, a big cabinet. That has just hit the floors, very small sample size, not statistically significant, but very, very good start… Pawn Stars on the premium segment, we know the reports have been very good from casinos. So overall we feel very good about our product momentum."
- "Our market share in WAP is probably about 10% now, give or take around that and that applies to the premium segment as well. So both in the WAP and premium segment we have tremendous opportunities for growth."
- "Our game development capacity has gone up a lot. So there is a good set of WAP and premium titles that are being worked on now that will hit the market at a steady rate. And also we've become much better at handling brands and licenses, and when you do a good job with games like GREASE and Michael Jackson, what tends to happen is the next set of negotiations tend to become easier.
- In the June, July, August timeframe we have a whole lot of new titles that come from these diverse studios and third-party partners."
- [GREASE AND MJ] "Both of them beat that target of 750 very comfortably; so both of them did very well."
- "In Canada VLT we were awarded two separate contracts for about 2,200 units. About half of those were sold in the first half of fiscal 2013, probably finish up the rest of that in the second half of the fiscal 2013."
- "Within Illinois, we have contracts in place for 4,000 units. We've sold, a little under 600 so far through December, probably take about two years to complete those with the bars and taverns getting licensed throughout the state. I think the market overall is probably about 15,000 to 18,000 VLTs, assuming that Chicago does not opt in."
- "So Italy is not going to be a major needle-mover for us in the near term, but it's a very good market for us to be in the long-term. So that's an investment we are making for our long-term, because that's a significant market that we are committed to."
- "The replacement cycle continues to improve; albeit at a measured pace, probably about 55,000 units replaced in calendar 2012. I think most people in your shoes think that it probably goes to about 60,000 in calendar 2013, which make sense to us."
- "The other opportunity for us in game equipment margins is conversion kits as we build out a bigger presence of the newer cabinets, the video versions that should give us an opportunity longer term to sell more conversion kits into that footprint."
- "As we continue to generate significant free cash flow, the best use beyond some of the smaller tuck-in acquisitions that Ramesh talked about earlier is to buyback our stock and return capital to shareholders and we've been doing that for about 21 quarters now and don't expect any significant changes in that strategy."
YOUTUBE FROM FQ2 CONFERENCE CALL
- "Maintenance revenues for the quarter were a record…. as we continue to grow the number of units connected to our systems and the average maintenance revenue per connection. Sequentially, recent conversions of Class II systems to traditional SDS systems, which reduced our centrally-determined system unit count in Gaming Operations, drove additional maintenance revenue growth."
- "We had approximately $126 million available under our current board-authorized share repurchase plan."
- "Even with G2E expenses in both quarters, which approximated $2 million, we were able to increase our operating margins to 24% versus 20% in the prior year"
- "We will be launching two additional titles, Hot Shot Progressive and NASCAR on the Cash Connection link during the coming months."
- "We expect Tiki Magic, the much anticipated follow-up title to the very successful Cash Wizard theme to launch later this quarter."
- "During the quarter, we announced an agreement to provide 650 VLTs to WCLC Canada and expect to begin shipping the initial tranche during the March quarter."
- "International Games sales have been a disappointment once again… We have multiple product development initiatives currently underway focused on these international markets… We remain confident such efforts will pay off with improved International Games sales in the future."
- "On the Systems front, we expect fiscal 2013 to be our best year ever with increasingly visible backlog strength for the quarters ahead."
- "Our Cloud-based Mobile platform offering a non-wagering portfolio of content and services continues its strong momentum and has now grown to more six million users. Thanks to the measurable return on investment these mobile applications are generating for our customers, we are seeing significant growth both in new customer acquisitions, which has grown by more than 50% year-over-year to over 75% now and in the delivery of new applications and features for existing customers."
- "For the quarter… we had some unusual SG&A expenses to the tune of about $2.9 million."
- "With respect to the Atlantic Lottery… somewhere around 1,200 to 1,300 of those shipped, so the remainder of those will likely come into this fiscal year."