Gaming innovation leader reports sixth quarter of growth

Highlights include:

* FIRST QUARTER REVENUE rose 6 percent to $725.4 million, up from $682.0 million a year ago. The growth was led by a 24 percent increase in global new unit shipments of gaming machines and a 33 percent increase in interactive revenue. Foreign exchange had an $8.1 million, or 1 percent, unfavorable impact on revenue.

* OPERATING INCOME in the first quarter increased 75 percent to $88.0 million from $50.3 million a year ago as a result of the revenue growth and lower cost structure. NET LOSS was $100.8 million compared with $92.3 million in the prior-year period, as the increase in operating income was offset by a $29.7 million loss on extinguishment and modification of debt and a $35.9 million increase in the income tax provision.

* ATTRIBUTABLE EBITDA ("AEBITDA"), a non-GAAP financial measure as defined below, increased to $286.6 million from $258.8 million a year ago driven by the higher revenue and lower cost structure; and AEBITDA margin, a non-GAAP financial measure as defined below, improved to 39.5 percent from 37.9 percent in the prior-year period.

* NET CASH FROM OPERATING ACTIVITIES rose to $111.0 million, inclusive of $12.6 million of cash payments related to the business improvement initiatives previously announced and implemented in the 2016 fourth quarter, from $101.1 million a year ago.

* The Company completed REFINANCING TRANSACTIONS during the first quarter 2017 that lowered cash interest costs at current rates, reduced exposure to variable interest rates, and extended a substantial portion of its debt maturities.

* At March 31, 2017, the Company had fully repaid borrowings under its revolving credit facility, and its CASH AND AVAILABILITY under its revolving credit facility was $657.7 million.

"Our continued steady improvement in revenue and margin are a direct result of our focus on creating innovative products that drive demand and our commitment to operational excellence," said CEO Kevin Sheehan. "This is a great start to the year, with all three of our business segments contributing to growth. We have a tremendous global team firmly focused on unlocking the power of our brands, strengthening our commitment to innovation, and executing a disciplined fiscal approach to enhance long-term shareholder value. We are building for our future."

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CFO Michael Quartieri added:All across our global businesses, we are improving our operational excellence that parlays our strength in innovation to drive enhanced financial results and stronger cash flow. We expect these initiatives will drive profitable growth and increased cash flow that will provide further opportunities to deleverage in 2017 and beyond.

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