International Game Technology PLC (NYSE:IGT) Q2 2020 Earnings Conference Call - Final Transcript

Aug 04, 2020 • 08:00 am ET


International Game Technology PLC (NYSE:IGT) Q2 2020 Earnings Conference Call - Final Transcript


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

[Operator Instructions]

I would now like to hand the conference over to your speaker today, Mr. Jim Hurley, SVP of Investor Relations. Sir, you may begin.

James Hurley

Thank you, and thank you all for joining us on IGT's second quarter 2020 conference call. We're presenting the results today 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 Chief Financial Officer. After introductory remarks from Marco and Max, we'll open the call 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 comparable GAAP measures.

And now I'll turn the call over to Marco Sala.

Marco Sala

Thank you, Jim, and hello, everyone. I hope you and your loved ones remain safe and healthy in these uncertain times.

Our second quarter results clearly reflect the world being in varying stages of lockdown, especially in April and May. With casinos and gaming also closed, foot traffic reduced and lotto retail outlets and sport events canceled, the shutdown impacted all operations in our key markets. That said, our performance proved better than we expected back in May at the time of our Q1 call. This is a result of adding a diverse global portfolio of product and solution across the regulated gaming spectrum.

We also had an important benefit from the swift cost-saving measures we implemented to manage the pandemic. The $168 million of EBITDA we generated in the period include the positive contributions from our North America gaming and lottery segments as well as from Italy. We delivered over $100 million in positive free cash flow in the second quarter. It is a significant achievement and a clear indication we are executing well. Our better-than-expected results demonstrated the high engagement maintained by IGT team and our customers. I know it is not easy in the current environment, and I'm grateful for their incredible dedication and partnership.

Financial performance aside, we have had a chance to appreciate the importance of diversity, equity and inclusion among our employees and the community we serve. These have always been core values for us, and they are critical in this current context. IGT stands with our employees, customer, players and communities in the fight for racial