EX-99.1 2 a10-9224_1ex99d1.htm EX-99.1

Exhibit 99.1

 

GRAPHIC

 

Investor Contact: Michael J. Carlotti

 

Media Contact: Laura Olson-Reyes

(702) 584-7995

 

(702) 584-7742

mcarlotti@ballytech.com

 

lolson-reyes@ballytech.com

 

BALLY TECHNOLOGIES, INC. REPORTS THIRD-QUARTER RESULTS

 

·                  DILUTED EPS OF $0.39 AFTER A $0.13 PER SHARE IMPAIRMENT CHARGE ON ITS ALABAMA CHARITABLE BINGO ASSETS

 

·                  THIRD QUARTER REVENUE FROM CONTINUING OPERATIONS OF $191 MILLION

 

·                  GAMING EQUIPMENT GROSS MARGIN IMPROVED TO A THIRD QUARTER RECORD OF 51 PERCENT FROM 45 PERCENT LAST YEAR

 

·                  NEW UNITS SOLD TO INTERNATIONAL CUSTOMERS SET AN ALL-TIME RECORD 2,122 UNITS

 

·                  ORDERS IN PROCESS FOR CASH SPIN NOW NEARLY 1,000 UNITS

 

·                  FISCAL 2010 DILUTED EPS GUIDANCE OF $2.15 TO $2.25 EXCLUDING THE IMPACT OF THE ALABAMA IMPAIRMENT CHARGE AND THE PENDING GAIN ON THE RAINBOW CASINO SALE

 

LAS VEGAS, April 29, 2010 — Bally Technologies, Inc. (NYSE: BYI), a leader in slots, video machines, casino management systems, networked and server-based solutions for the global gaming industry, announced today diluted earnings per share (“Diluted EPS”) of $0.39 and $1.50 on revenue of $191 million and $583 million for the three months and nine months ended March 31, 2010, respectively, which excludes revenues of $10 million and $28 million, respectively, from discontinued operations related to the Rainbow Casino.  Excluding the impairment charge related to the Alabama charitable bingo assets, diluted EPS was $0.52 and $1.63 for the three and nine months ended March 31, 2010, respectively.

 

“We are pleased with the progress of our strategic initiatives during the quarter, including international expansion, balance sheet management, systems leadership, new product initiatives, and the announced sale of Rainbow Casino,” said Richard M. Haddrill, the Company’s Chief Executive Officer. “We believe that our recent launch of a series of premium participation games and our upcoming release of ALPHA 2 will allow us to capitalize on the spending upturn we expect to see in the coming year.”

 

“Our balance sheet strength continues to improve as we further reduced our debt by $9 million, repurchased $13 million of our common stock, and increased cash by $11 million during the quarter,” added Robert C. Caller, the Company’s Chief Financial Officer.  “We are also pleased with our recent bank amendment, which raised $75 million in incremental undrawn revolver capacity and reduced pricing on our existing term and revolver by 50 basis points.  We believe this transaction was the first reduction in pricing to an existing bank facility in the U.S. gaming industry since the credit crisis began in 2008.”

 

RAINBOW CASINO

 

The Company recently announced it had reached a definitive agreement to sell the Rainbow Casino to Isle of Capri Casinos, Inc. (NASDAQ:  ISLE).  Results from Rainbow are included in discontinued operations for all periods presented.  For the three and nine months periods ended March 31, 2010, revenues were $10 million and $28 million and Diluted EPS were $0.03 and $0.08, respectively.  The Company expects to close the transaction on or about June 30, 2010.

 


 

ALABAMA IMPAIRMENT CHARGES

 

The legality of charitable bingo gaming in Alabama is under challenge by the state’s governor.  Legislation to put the legality question to a public referendum in Alabama failed to pass in the recently concluded legislative session.  There are also several lawsuits pending before the state’s Supreme Court which could negatively affect charitable gaming in Alabama.  Several of the charitable bingo properties voluntarily ceased operations during the quarter pending resolution of the matter, while two others continue to operate.  As a result of these recent actions, the Company concluded that it is unlikely that gaming will continue in its present form, thereby impacting the recoverability of the associated assets.  As such, the Company recorded an impairment charge of $11.4 million during the quarter ended March 31, 2010, which included the impairment of $5.5 million in notes and accounts receivable and $5.9 million in long-lived assets.

 

Third Quarter Fiscal 2010 Bally Technologies, Inc. Continuing Operations Highlights (excluding the Rainbow Casino)

 

 

 

Three Months Ended March 31,

 

Nine Months Ended March 31,

 

 

 

2010

 

2009

 

2010

 

2009

 

 

 

(dollars in millions, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

Total Revenues

 

$

190.6

 

$

196.8

 

$

582.9

 

$

647.8

 

Operating Income

 

$

35.1

 

$

47.4

 

$

135.7

 

$

155.0

 

Net income

 

$

20.6

 

$

27.1

 

$

81.8

 

$

87.8

 

Adjusted EBITDA

 

$

67.1

 

$

66.6

 

$

210.4

 

$

211.5

 

Diluted EPS

 

$

0.36

 

$

0.48

 

$

1.42

 

$

1.54

 

 

Three Months Ended March 31, 2010 Compared with Three Months Ended March 31, 2009

 

·                  Diluted EPS decreased to $0.36 from $0.48 last year.  Three months ended March 31, 2010 Diluted EPS reflects an impairment charge of $0.13 per share related to Alabama.

·                  Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, including asset impairment charges and share-based compensation), a non-GAAP financial measure, remained constant at $67 million in both periods.

·                  Operating margin declined to 18 percent from 24 percent last year.  Excluding the impairment charge, operating margin remained constant at 24 percent in both periods.

·                  Total revenues decreased to $191 million as compared with $197 million last year.

·                  Selling, general and administrative expenses (“SG&A”) increased to 28 percent of total revenues as compared with 26 percent last year as a result of lower revenues.

·                  Research and development expenses (“R&D”) increased to 11 percent of total revenues as compared with 10 percent last year.

 

Nine Months Ended March 31, 2010 Compared with Nine Months Ended March 31, 2009

 

·                  Diluted EPS decreased to $1.42 from $1.54 last year.  Nine months ended March 31, 2010 Diluted EPS reflects an impairment charge of $0.13 per share related to Alabama.  During the nine months ended March 31, 2009, the Company’s Diluted EPS benefited from a $0.03 gain from insurance reimbursement, which reduced SG&A.

·                  Adjusted EBITDA decreased slightly to $210 million from $212 million in the prior period.

·                  Operating margin decreased to 23 percent from 24 percent last year.  Excluding the impairment charge, operating margin increased to 25 percent in the current period.

·                  Total revenues decreased to $583 million as compared with $648 million last year.

·                  SG&A expenses increased to 26 percent of total revenues as compared with 25 percent last year as a result of lower revenues.

·                  R&D expenses increased to 10 percent of total revenues as compared with 9 percent last year.

 

During the quarter, the Company repurchased more than 322,000 shares of its common stock for approximately $13 million.  During the first nine months of fiscal 2010, the Company repurchased over 1,100,000 shares of its common stock for approximately $44 million.  This month, the Company’s Board of Directors also authorized a new $150 million share-repurchase program.  Under the Company’s amended credit agreement effective April 9, 2010, the Company has unlimited capacity to repurchase its common stock or make other restricted payments as long as its gross leverage ratio remains below 1.0.  At March 31, 2010, the Company’s leverage ratio was 0.6.

 

2


 

Unaudited summary financial information for the Bally Gaming Equipment and Systems segment for the three months and nine months ended March 31, 2010 and 2009 is presented below:

 

 

 

Three Months Ended March 31,

 

Nine Months Ended March 31,

 

 

 

2010

 

% Rev

 

2009

 

% Rev

 

2010

 

% Rev

 

2009

 

% Rev

 

 

 

(dollars in millions)

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gaming Equipment

 

$

69.4

 

36

%

$

70.2

 

36

%

$

210.2

 

36

%

$

278.8

 

43

%

Gaming Operations

 

69.7

 

37

%

70.0

 

35

%

209.6

 

36

%

204.2

 

32

%

Systems

 

51.5

 

27

%

56.6

 

29

%

163.1

 

28

%

164.8

 

25

%

Total revenues

 

$

190.6

 

100

%

$

196.8

 

100

%

$

582.9

 

100

%

$

647.8

 

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Margin:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gaming Equipment (1)

 

$

35.5

 

51

%

$

31.2

 

45

%

$

106.4

 

51

%

$

128.5

 

46

%

Gaming Operations

 

49.9

 

72

%

50.7

 

72

%

149.8

 

71

%

143.3

 

70

%

Systems (1) (2)

 

38.8

 

75

%

40.0

 

71

%

116.1

 

71

%

117.0

 

71

%

Total gross margin

 

$

124.2

 

65

%

$

121.9

 

62

%

$

372.3

 

64

%

$

388.8

 

60

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative (3)

 

$

52.5

 

28

%

$

50.2

 

26

%

$

151.5

 

26

%

$

161.3

 

25

%

Research and development costs

 

20.3

 

11

%

19.3

 

10

%

59.3

 

10

%

58.5

 

9

%

Impairment charges

 

11.4

 

6

%

—

 

—

 

11.4

 

2

%

—

 

—

 

Depreciation and amortization (3)

 

4.9

 

2

%

5.0

 

2

%

14.4

 

3

%

14.0

 

2

%

Operating income

 

$

35.1

 

18

%

$

47.4

 

24

%

$

135.7

 

23

%

$

155.0

 

24

%

 

(1)          Gross Margin from Gaming Equipment and Systems excludes amortization related to certain intangibles, including core technology and license rights, which are included in depreciation and amortization.

(2)          Certain costs of system sales previously included in SG&A costs have been reclassified in the prior year to conform to the current year presentation.

(3)          Costs previously included in the Parent Company’s SG&A and depreciation and amortization in the prior year have been consolidated with Bally Gaming Equipment and Systems in the current period.

 

 

 

Three Months Ended
March 31,

 

Nine Months Ended
March 31,

 

 

 

2010

 

2009

 

2010

 

2009

 

Operating Statistics

 

 

 

 

 

 

 

 

 

New gaming devices

 

4,571

 

4,368

 

13,504

 

17,065

 

Original Equipment Manufacturer (“OEM”) units

 

—

 

—

 

—

 

505

 

New unit Average Selling Price (“ASP”)

 

$

13,979

 

$

14,191

 

$

14,134

 

$

14,263

 

 

 

 

As of March 31,

 

 

 

2010

 

2009

 

End-of-period installed base:

 

 

 

 

 

Gaming monitoring units installed base

 

381,000

 

355,000

 

Systems managed cashless games

 

318,000

 

306,000

 

 

 

 

 

 

 

Total linked progressive systems

 

1,010

 

1,221

 

Rental and daily-fee games

 

12,514

 

12,208

 

Lottery systems

 

7,774

 

8,152

 

Centrally determined systems

 

50,245

 

47,637

 

 

“We now have orders in process for nearly 1,000 Cash Spins, which won ‘Best Slot Product’ at G2E,” said Gavin Isaacs, the Company’s Chief Operating Officer.  “We have begun shipping Cash Spin and expect 500 units to be placed by June 30, 2010.  Early results for Cash Spin are outstanding and recently placed Hot Shot Progressive Cash WheelsTM, Fireball TM, and our Dual Vision two-player cabinet are also easily outperforming floor averages.  Our pipeline for gaming operations products has never been stronger which will help us grow our installed base of premium gaming operations machines over the next 24 months.  Finally, we are very excited about the upcoming launch of our new ALPHA 2 technology this summer.”

 

“Our systems business continues to lead the industry through new and enhanced technology products that help our customers reduce cost, protect invested capital, and deliver more powerful player experiences,” said Ramesh Srinivasan, the Company’s Executive Vice President — Systems.  “While the extent of no-decisions and delayed decisions continue to be higher than normal, our pipeline and win/loss ratio have never been better.  iVIEW DM TM is rapidly gaining strong interest in the industry.  We expect to continue to grow our market share as evidenced by the recent Isle of Capri enterprise-wide contract announced earlier this month.”

 

3


 

Highlights of Certain Results for the Three Months Ended March 31, 2010

 

Gaming Equipment

 

·                  Revenues decreased to $69 million as compared with $70 million last year.

·                  New gaming device sales increased to 4,571 units as compared with 4,368 units last year, driven by increased international units sold but offset by fewer new openings and expansions during the period.

·                  New unit sales to international customers were an all-time record 2,122 units, or 46 percent of total new-unit shipments as compared with 1,609 units last year.

·                  ASP of new gaming devices decreased slightly by 1.5% to $13,979 per unit, primarily as a result of lower priced shipments to one international market where the Company also earns a recurring fee.

·                  Gross margin increased to a third quarter record of 51 percent from 45 percent last year, primarily due to improved manufacturing efficiencies, improved material costs and usage, and a reduction in royalty expense.

 

Gaming Operations

 

·                  Revenues were $70 million - approximately the same as last year.

·                  Gross margin remained at 72 percent in both periods.

 

Systems

 

·                  Revenues declined to $52 million as compared with $57 million last year, primarily as a result in the reduction of the number of installations during the period which was partially offset by higher maintenance revenues.

·                  Gross margin increased to 75 percent from 71 percent last year, primarily as a result of the change in mix of products sold and a reduction in hardware costs.

·                  Maintenance revenues increased to a quarterly record $15 million as compared with $13 million last year.

 

Highlights of Certain Results for the Nine Months Ended March 31, 2010

 

Gaming Equipment

 

·                  Revenues decreased to $210 million as compared with $279 million last year.

·                  New gaming device sales decreased to 13,504 units as compared with 17,065 units last year, primarily as a result of the continued sluggish North America replacement market and fewer new openings and expansions during the period.

·                  New unit sales to international customers were 5,295 units, or 39 percent of total new-unit shipments as compared with 4,218 units last year.

·                  ASP of new gaming devices decreased by 1% to $14,134 per unit, primarily as a result of lower priced shipments to one international market where the Company also earns a recurring fee.

·                  Gross margin increased to 51 percent from 46 percent last year, primarily due to improved manufacturing efficiencies, improved material costs and usage, a reduction in royalty expense, and lower inventory write-downs.

 

Gaming Operations

 

·                  Revenues increased to $210 million as compared with $204 million last year, primarily driven by an increase in participation and license revenue.

·                  Gross margin increased to 71 percent from 70 percent, primarily as a result of increases in participation and license revenue which had little associated variable costs, which was partially offset by higher progressive jackpot expenses.

 

Systems

 

·                  Revenues decreased slightly to $163 million as compared with $165 million last year, primarily as a result in the reduction of the number of installations during the period which was partially offset by higher maintenance revenues.

·                  Gross margin remained constant at 71 percent in both periods.

·                  Maintenance revenues increased to a record $43 million, as compared with $38 million in the same period last year.

 

4


 

Fiscal 2010 Business Update

 

The Company provided fiscal 2010 guidance for Diluted EPS of $2.15 to $2.25 (excluding the $0.13 per diluted share impact of the Alabama impairment charges and the pending gain on the Rainbow Casino sale).  This guidance considers a continued sluggish North American replacement market, the loss of gaming revenues in Alabama, and lower than expected win-per-day in gaming operations in the third quarter offset by the Company’s expected continued competitive position and ongoing cost savings and gross margin initiatives.

 

The Company has provided this range of earnings guidance for fiscal 2010 to give investors general information on the overall direction of its business at this time. The guidance provided is subject to numerous uncertainties, including, among others, overall economic and capital markets conditions, the market for gaming devices and systems, changes in gaming legislation, competitive product introductions, complex revenue-recognition rules related to the Company’s business, and assumptions about the Company’s new product introductions and regulatory approvals.  The Company does not intend and undertakes no obligation to update its forward-looking statements, including forecasts, potential opportunities for growth in new and existing markets, and future prospects for proposed new products.  Accordingly, the Company does not intend to update guidance during the quarter.  Additional information about the factors that could potentially affect the Company’s financial results included in today’s press release and its SEC filings can be found in the Company’s Annual Report on Form 10-K and quarterly reports on Form 10-Q.

 

Non-GAAP Financial Measures

 

The following table reconciles the Company’s net income attributable to Bally Technologies, Inc., as determined in accordance with generally accepted accounting principles (“GAAP”), to Adjusted EBITDA from Continuing Operations and Total Adjusted EBITDA:

 

 

 

Three Months Ended
March 31,

 

Nine Months Ended
March 31,

 

 

 

2010

 

2009

 

2010

 

2009

 

 

 

(in 000s)

 

Net income from Continuing Operations

 

$

20,577

 

$

27,098

 

$

81,778

 

$

87,806

 

Impairment charges

 

11,379

 

—

 

11,379

 

—

 

Interest expense, net

 

2,126

 

3,485

 

7,340

 

12,683

 

Income tax expense

 

11,262

 

15,072

 

43,973

 

49,178

 

Depreciation and amortization

 

18,299

 

17,186

 

55,438

 

50,989

 

Share-based compensation

 

3,421

 

3,761

 

10,502

 

10,813

 

Adjusted EBITDA from Continuing Operations

 

$

67,064

 

$

66,602

 

$

210,410

 

$

211,469

 

Discontinued Operations EBITDA

 

4,025

 

4,249

 

10,130

 

10,628

 

Total Adjusted EBITDA

 

$

71,089

 

$

70,851

 

$

220,540

 

$

222,097

 

 

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, including asset impairment charges and share-based compensation) is a supplemental non-GAAP financial measure used by the Company’s management and by some industry analysts to evaluate the Company’s ability to service debt, and is used by some investors and financial analysts in the gaming industry in measuring and comparing Bally’s leverage, liquidity, and operating performance to other gaming companies.  Adjusted EBITDA for the nine-month period ended March 31, 2009 includes the $3 million insurance reimbursement from previous claims for the 2005 U.S. Gulf Coast hurricanes.  Adjusted EBITDA should not be considered an alternative to operating income or net cash from operations as determined in accordance with GAAP.  Not all companies calculate Adjusted EBITDA the same way, and the Company’s presentation may be different from those presented by other companies.

 

Earnings Conference Call and Webcast

 

As previously announced, the Company is hosting a conference call and webcast today at 4:30 p.m. EDT (1:30 p.m. PDT). The conference-call dial-in numbers are 866-277-1182 or 617-597-5359 (International); passcode “Bally”.  The webcast can be accessed by visiting BallyTech.com and selecting “Investor Relations.”  Interested parties should initiate the call and webcast process at least five minutes prior to the beginning of the presentation.  For those who miss this event, an archived version will be available at BallyTech.com until May 29, 2010.

 

5


 

About Bally Technologies, Inc.

 

With a history dating back to 1932, Las Vegas-based Bally Technologies designs, manufactures, operates, and distributes advanced gaming devices, systems, and technology solutions worldwide. Bally’s product line includes reel-spinning slot machines, video slots, wide-area progressives, and Class II, lottery, and central determination games and platforms. As the world’s No. 1 gaming systems company, Bally also offers an array of casino management, slot accounting, bonusing, cashless, and table-management solutions. The Company also owns and operates Rainbow Casino in Vicksburg, Miss. Additional Company information, including the Company’s investor presentations, can be found at BallyTech.com.

 

This news release may contain “forward-looking” statements within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, and is subject to the safe harbors created thereby.  Forward looking-statements are subject to change and involve risks and uncertainties that could significantly affect future results, including those risks detailed from time to time in the Company’s filings with the Securities and Exchange Commission.  Although the Company believes any expectations expressed in any forward-looking statements are reasonable, future results may differ materially from those expressed in any forward-looking statements.  The Company undertakes no obligation to update the information in this press release except as required by law and represents that the information speaks only as of today’s date.

 

— BALLY TECHNOLOGIES, INC. —

 

6


 

BALLY TECHNOLOGIES, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE MONTHS AND NINE MONTHS ENDED MARCH 31, 2010 AND MARCH 31, 2009

 

 

 

Three Months Ended
March 31,

 

Nine Months Ended
March 31,

 

 

 

2010

 

2009

 

2010

 

2009

 

 

 

(in 000s, except per share amounts)

 

Revenues:

 

 

 

 

 

 

 

 

 

Gaming equipment and systems

 

$

120,917

 

$

126,828

 

$

373,333

 

$

443,643

 

Gaming operations

 

69,723

 

69,986

 

209,610

 

204,169

 

 

 

190,640

 

196,814

 

582,943

 

647,812

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

Cost of gaming equipment and systems (1)

 

46,590

 

55,620

 

150,765

 

198,152

 

Cost of gaming operations

 

19,865

 

19,349

 

59,854

 

60,908

 

Selling, general and administrative

 

52,545

 

50,168

 

151,462

 

161,231

 

Research and development costs

 

20,279

 

19,291

 

59,321

 

58,493

 

Impairment charges

 

11,379

 

—

 

11,379

 

—

 

Depreciation and amortization

 

4,910

 

4,943

 

14,442

 

14,014

 

 

 

155,568

 

149,371

 

447,223

 

492,798

 

Operating income

 

35,072

 

47,443

 

135,720

 

155,014

 

Other income (expense):

 

 

 

 

 

 

 

 

 

Interest income

 

944

 

696

 

2,268

 

2,779

 

Interest expense

 

(3,069

)

(4,181

)

(9,607

)

(15,462

)

Other, net

 

(955

)

(798

)

(1,897

)

(5,066

)

Income from continuing operations before income taxes

 

31,992

 

43,160

 

126,484

 

137,265

 

Income tax expense

 

(11,262

)

(15,073

)

(43,973

)

(49,178

)

Income from continuing operations

 

20,730

 

28,087

 

82,511

 

88,087

 

Discontinued operations:

 

 

 

 

 

 

 

 

 

Income from discontinued operations before income taxes

 

3,431

 

3,688

 

8,050

 

9,100

 

Income tax expense

 

(1,068

)

(1,159

)

(2,508

)

(2,860

)

Income from discontinued operations

 

2,363

 

2,529

 

5,542

 

6,240

 

Net income

 

23,093

 

30,616

 

88,053

 

94,327

 

Less net income attributable to noncontrolling interests

 

534

 

1,365

 

1,617

 

1,208

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Bally Technologies, Inc.

 

$

22,559

 

$

29,251

 

$

86,436

 

$

93,119

 

Basic earnings per share:

 

 

 

 

 

 

 

 

 

Income from continuing operations attributable to Bally Technologies, Inc.

 

$

0.37

 

$

0.50

 

$

1.50

 

$

1.61

 

Discontinued operations attributable to Bally Technologies, Inc

 

0.04

 

0.04

 

0.09

 

0.10

 

Basic earnings attributable to Bally Technologies, Inc. per share

 

$

0.41

 

$

0.54

 

$

1.59

 

$

1.71

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share:

 

 

 

 

 

 

 

 

 

Income from continuing operations attributable to Bally Technologies, Inc.

 

$

0.36

 

$

0.48

 

$

1.42

 

$

1.54

 

Discontinued operations attributable to Bally Technologies, Inc.

 

0.03

 

0.04

 

0.08

 

0.09

 

Diluted earnings attributable to Bally Technologies, Inc. per share

 

$

0.39

 

$

0.52

 

$

1.50

 

$

1.63

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

54,771

 

54,204

 

54,517

 

54,567

 

Diluted

 

57,716

 

56,446

 

57,715

 

57,104

 

Amounts attributable to Bally Technologies, Inc. common stockholders:

 

 

 

 

 

 

 

 

 

Income from continuing operations, net of tax

 

$

20,577

 

$

27,099

 

$

81,778

 

$

87,806

 

Income from discontinued operations, net of tax

 

1,982

 

2,152

 

4,658

 

5,313

 

Net income

 

$

22,559

 

$

29,251

 

$

86,436

 

$

93,119

 

 

(1)          Cost of gaming equipment and systems exclude amortization related to certain intangibles, including core technology and license rights, which are included in depreciation and amortization.

 

7


 

BALLY TECHNOLOGIES, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF MARCH 31, 2010 AND JUNE 30, 2009

 

 

 

March 31,
2010

 

June 30,
2009

 

 

 

(in 000s, except share
amounts)

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

75,993

 

$

55,886

 

Restricted cash

 

7,278

 

9,076

 

Accounts and notes receivable, net of allowances for doubtful accounts of $10,103 and $8,897

 

219,143

 

174,653

 

Inventories

 

42,914

 

52,887

 

Prepaid and refundable income tax

 

35,216

 

43,756

 

Deferred income tax assets

 

37,301

 

35,802

 

Deferred cost of revenue

 

17,493

 

21,906

 

Prepaid assets

 

11,672

 

7,347

 

Assets held for sale

 

46,068

 

51,284

 

Other current assets

 

3,689

 

13,010

 

Total current assets

 

496,767

 

465,607

 

Restricted long-term investments

 

12,238

 

12,097

 

Long-term receivables, net of allowances for doubtful accounts of $5,169 and $0

 

30,222

 

9,826

 

Property, plant and equipment, net of accumulated depreciation of $49,269 and $43,777

 

31,147

 

33,410

 

Leased gaming equipment, net of accumulated depreciation of $145,775 and $117,638

 

79,333

 

95,012

 

Goodwill

 

161,700

 

161,960

 

Intangible assets, net

 

36,851

 

32,198

 

Deferred income tax assets

 

22,027

 

17,276

 

Long-term deferred cost of revenue

 

33,707

 

41,615

 

Other assets, net

 

11,202

 

11,881

 

Total assets

 

$

915,194

 

$

880,882

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

22,364

 

$

19,864

 

Accrued liabilities

 

42,434

 

45,515

 

Customer deposits

 

10,164

 

10,375

 

Jackpot liabilities

 

10,240

 

12,171

 

Deferred revenue

 

42,040

 

49,122

 

Income tax payable

 

784

 

2,971

 

Liabilities related to assets held for sale

 

2,404

 

2,695

 

Current maturities of long-term debt

 

40,034

 

35,337

 

Total current liabilities

 

170,464

 

178,050

 

Long-term debt, net of current maturities

 

142,500

 

173,750

 

Long-term deferred revenue

 

45,501

 

60,464

 

Other income tax liability

 

19,885

 

22,072

 

Other liabilities

 

8,386

 

7,797

 

Total liabilities

 

386,736

 

442,133

 

Commitments and contingencies

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

Special stock, 10,000,000 shares authorized: Series E, $100 liquidation value; 115 shares issued and outstanding

 

12

 

12

 

Common stock, $.10 par value; 100,000,000 shares authorized; 59,060,000 and 57,091,000 shares issued and 55,157,000 and 54,312,000 outstanding

 

5,893

 

5,703

 

Treasury stock at cost, 3,903,000 and 2,779,000 shares

 

(109,470

)

(64,727

)

Additional paid-in capital

 

378,777

 

330,465

 

Accumulated other comprehensive loss

 

(1,575

)

(770

)

Retained earnings

 

252,059

 

165,623

 

Total Bally Technologies, Inc. stockholders’ equity

 

525,696

 

436,306

 

Noncontrolling interests

 

2,762

 

2,443

 

Total stockholders’ equity

 

528,458

 

438,749

 

Total liabilities and stockholders’ equity

 

$

915,194

 

$

880,882

 

 

8