If the Fool still ran the old Rule Maker portfolio, slot-machine maker International Game Technology
For the fourth quarter, International Game Technology's adjusted income from continuing operations climbed 21% to $127.7 million, or $0.35 per share -- edging estimates by a couple of pennies. Including a $77 million charge from the early retirement of debt and a $3.6 million tax adjustment, net income was $0.15 per share. Meanwhile, revenues jumped 14% to $621.7 million.
Its revenues from gaming operations rose 12.4% to $308.8 million, as its installed base of recurring revenue machines increased by 9.4% over the past year to a record 37,200 units. And despite a decline in worldwide shipments to 32,500 units from 32,800, product sales revenue increased 15% from last year's quarter to $312.9 million, reflecting stronger pricing.
Average selling prices climbed 12.5% domestically and 34% internationally.
In fiscal 2004, free cash flow jumped 47.4% to $412.7 million, one-third of which was paid out in the form of a dividend. As a result, International Game Technology announced in September that it had upped its quarterly dividend from $0.10 to $0.12 per share. In addition, the company also bought back 3.4 million shares during the quarter for $105.6 million, or $31.01 per share.
International Game Technology expects the growth to continue as slot markets continue to open up and every casino operator -- from locals in riverboat casino operators such as Harrah's Entertainment
Following this morning's announcement, International Game Technology shares were up 7% to $35.45 in early afternoon trading.
For more on the company and slot machines, check out:
- Alliance Gaming Misses the Boat
- IGT Rolls On
- The Magnitude of Pennsylvania's Slots
- Those Pennies Add Up
Fool contributor Jeff Hwang owns shares of both International Game Technology and Ameristar Casinos.