By BBBB
For the three-month period ended March 31, net income totaled us$ 128.2 million versus us$ 124 million in the same quarter last year. The second quarter of the current year included an insurance settlement related to Gulf Coast property damage and business interruption and a net benefit from the sale of a corporate asset, which together totaled us$ 13.5 million, after tax.
For the six-month period, net income totaled us$ 249.2 million compared to us$ 244.6 million in the prior year.
Second quarter financial highlights include: Record gaming operations revenues up 10% from the prior year quarter, record gaming operations installed base of 54,800 machines, record Adjusted EBITDA totaling us$ 277.9 million and year-to-date cash flow from operations of us$ 366.5 million, up 79% from the prior year period.
“IGT’s gaming operations continue to thrive and expand, with an all-time high installed base of games driving another quarter of record financial results for the recurring revenue sector of our business,” said Chairman and CEO TJ Matthews.
“With the increase in our share repurchase authorization announced today, we reaffirm our confidence and optimism in the long-term future of our company and plan to continue our stock buyback program as part of our ongoing strategy to return significant capital to our shareholders.” He affirmed.
For the three-month period ended March 31, 2007, revenues and gross profit from gaming operations reached a record us$ 341.1 million and us$ 211 million, respectively, compared to us$ 311.2 million and us$ 183.9 million in the prior year quarter. Gross margins on gaming operations totaled 62% versus 59% in the prior year quarter. Margins in the current period were favorably impacted by reduced jackpot-related expense, as well as the property damage portion of the Gulf Coast insurance settlement of us$ 5 million, before tax.
For the six-month period, revenues and gross profit totaled us$ 666 million and us$ 397.7 million, respectively, compared to us$ 602.9 million and us$ 349.4 million in the prior year period. Year-over-year improvement was attributed to the growth and enhanced performance of our installed base.
The installed base of recurring revenue machines ended the quarter at a record 54,800 units, an increase of 10,400 units from the prior year quarter and 1,700 units from the immediately preceding quarter. Growth was primarily the result of incremental lease operations placements in Mexico, New York, Delaware and Rhode Island and incremental casino operations placements in Oklahoma, California and Florida.
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