International edition
September 27, 2021

Selling, general and administrative expenses increased to 30 % of total revenues

Bally reports first quarter 2011 results

(US).- Bally Technologies announced diluted earnings per share from continuing operations of us$ 0.40 on revenue of us$ 171 million for the three months ended last September 30. It had certain post-closing adjustments related to the sale of the Rainbow Casino during the three months ended September 30, which reduced its gain on the sale in fiscal 2010 by approximately us$ 0.4 million, net of income taxes. “During fiscal 2011, we have already purchased 826,000 shares of common stock for us$ 27 million, us$ 22 million of which was in our first quarter,” said Neil Davidson, the company’s Chief Financial Officer.

Delays in certain decisions and the unfavorable timing of some go-lives related to our systems resulted in lower than normal quarterly systems revenues; however, we continue to see strong growth opportunities in systems,” said Richard M. Haddrill, the Company’s CEO. “We are well positioned to capitalize on our innovation in new products and our investments in new jurisdictions in 2011.”

“During fiscal 2011, we have already purchased 826,000 shares of common stock for us$ 27 million, us$ 22 million of which was in our first quarter,” said Neil Davidson, the Company’s Chief Financial Officer. “This quarter represents the twelfth quarter in a row that the Company has repurchased its common stock. Since December 2007, we have repurchased approximately 5.3 million shares of our common stock for us$ 180 million.”

“Revenues in gaming operations set another all-time quarterly record driven by the success of Cash Spin featuring our innovative U-Spin T play mechanic,” said Gavin Isaacs, Bally’s Chief Operating Officer. “Cash Spin is the fastest premium game release in the company’s history. We are particularly excited about this year’s Global Gaming Expo, where we will showcase our first ALPHA 2 for-sale and participation games on our new Pro Series line of cabinets and introduce a new branded, third-party-developed wide-area progressive.”

“Our systems business continues to outpace the industry through new and enhanced technology products that help our customers reduce costs, protect previously invested capital, and deliver more powerful player experiences floor-wide across the entire casino,” said Ramesh Srinivasan, the company’s Executive VP – Bally Systems. “Our release of iVIEW DM is continuing to gain traction in the marketplace. New content for iVIEW DM will be released during the coming weeks leading up to G2E, including the DM Wheel utilizing our U-Spin technology for floor-wide bonusing, making the product’s value proposition even more compelling.”

-Selling, general and administrative expenses increased to 30 % of total revenues as compared with 24 % last year.
-Research and development expenses increased to 13 %of total revenues as compared with 10 % last year.
-Operating margin decreased to 20 % as compared with 26 % last year.
-Adjusted EBITDA from continuing operations (earnings before interest, taxes, depreciation and amortization, including asset impairment charges and share-based compensation), a non-GAAP financial measure, decreased to us$ 58 million as compared with us$ 70 million last year.
-Diluted EPS from continuing operations decreased to us$ 0.40 from us$ 0.50 last year.

Gaming Equipment
-Revenues decreased to us$ 51 million as compared with us$ 62 million last year.
-New gaming device sales decreased to 2,823 units as compared with 3,936 units last year, driven by fewer new openings and expansions during the period and a continued sluggish North America replacement cycle.
-New-unit sales to international customers were 823 units, or 29 % of total new-unit shipments as compared with 1,518 units last year.
-ASP of new gaming devices increased by 11 % to us$ 15,685 per unit, primarily as a result of product mix.
-Gross margin increased to 49 % from 48 % last year, primarily due to improved manufacturing efficiencies and improved material costs related to production of our ALPHA Elite cabinets, including our popular V32 cabinet, and lower royalty expense.

Gaming Operations
-Revenues increased to a quarterly record of us$ 79 million as compared with us$ 71 million last year, driven by placement of new premium games throughout the quarter.
-Gross margin decreased slightly to 72 % as compared with 73 % last year.´

-Revenues decreased to us$ 41 million as compared with us$ 54 million last year, due to a lower number of large go lives during the quarter.
-Gross margin increased to 73 % from 67 % last year, primarily as a result of the change in mix of products sold and an increase in maintenance revenues.
-Maintenance revenues increased to us$ 16 million as compared with us$13 million last year.

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