International Game Technology PLC (NYSE:IGT) Q1 2020 Earnings Conference Call - Final Transcript

May 18, 2020 • 08:00 am ET

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International Game Technology PLC (NYSE:IGT) Q1 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by and welcome to the IGT First Quarter 2020 Results Conference Call.

[Operator Instructions]

After the speaker presentation, there will be a question-and-answer session.

[Operator Instructions]

I would now like to hand the conference over to your first speaker today, Jim Hurley, Senior Vice President, Investor Relations. Thank you. Please go ahead, sir.

Executive
James Hurley

Thank you and thank you all for joining us on IGT's First Quarter 2020 Conference Call. Given the exceptional circumstances created by the COVID-19 outbreak, we are presenting the results from multiple locations. So, please bear with us if we encounter any technical difficulties.

On today's call are Marco Sala, our Chief Executive Officer, and Max Chiara, our newly appointed Chief Financial Officer. After introductory remarks from Marco and Max, we will open the call up for your questions.

During today's call, we will be making some forward-looking statements within the meaning of federal securities laws. Forward-looking statements are not guarantees and our actual results may differ materially from those expressed or implied in the forward-looking statements. The principal risks and uncertainties that could cause our results to differ materially from our current expectations are detailed in our latest earnings release and in our SEC filings.

During this call, we may discuss certain non-GAAP financial measures. In our press release, slides accompanying this webcast and our filings with the SEC, each of which is posted on our Investor Relations website, you will find additional disclosures regarding these non-GAAP measures, including reconciliations of these measures with the comparable GAAP measures.

Now, I will turn the call over to Marco Sala.

Executive
Marco Sala

Thank you, Jim, and good day to everyone on the call. First, let me say that I hope you and your loved ones are staying safe and keeping healthy in these uncertain times. My heart goes out to those who are dealing with COVID-19. I am grateful for the front-line workers that are helping us all through this pandemic and for the IGT team who have rallied tremendously over the last several weeks.

Now, let me turn to the first quarter. Our focus shifted radically as COVID-19 turned into a global pandemic late in the period. Our business was off to a good start in January and February, building on the momentum we had coming out of 2019: lottery same-store revenues for instant-tickets and draw games were up mid-single digit; replacement unit shipments of gaming machines increased over 30% and installed base yields were strong. But since late February, when the virus began to have a serious impact on Italy, the safety and well-being of our people, our customers and communities all over the world became our top priority.

The first thing we did was create a cross-functional global COVID-19 crisis management team, comprised of senior leaders throughout the organization. Groups with dedicated work streams meet daily to ensure we are executing on our priorities. Robust business continuity plans were implemented quickly and we were prepared as the virus spread. In fact,