Gtech Earnings Fall for Fourth Quarter

From Gtech and Reuters Business Wire

Gtech, a one-third owner of Turfway Park, announced Friday a 13.8% decrease in fourth quarter earnings per share and a 51.5% decrease in earnings per share for its fiscal year ending Feb. 24.

Revenue for the fourth quarter of fiscal 2001 declined 8% to $245.9 million, down from $267.2 million for the fourth quarter of fiscal 2000. Net income was $25.9 million, or 75 cents per diluted share, compared with $30.1 million, or 87 cents per diluted share, for the same period last year. For the recently completed fourth quarter, Gtech (NYSE:GTK) recorded a special charge of $2.3 million, or 4 cents per share, in connection with a companywide value assessment. Excluding the special charge, the company reported net income of $27.3 million or 79 cents per diluted share for the fourth quarter.

For fiscal year 2001, revenue declined approximately 7% to $936.5 million from $1.01 billion in fiscal 2000. Net income was $43.1 million, or $1.25 per basic share, compared with net income of $93.6 million, or $2.58 per basic share in fiscal 2000. The results for the year include special charges totaling $42.3 million, or 74 cents per share, and additional non-cash charges associated with a stock plan implemented in the second quarter of fiscal 2001 of $5.2 million, or 9 cents per share. Excluding the special and additional charges, the company reported net income of $72.0 million or $2.08 per diluted share for the full year.

"Over the past eight months, we have worked hard to improve our efficiency, streamline our cost base, and strengthen our competitive position," said Gtech chairman W. Bruce Turner. "This has enabled us to deliver performance in line with our revised guidance."

The company has forecast first-quarter profits per share of 61 to 63 cents and 2002 earnings per share of $2.70 to $2.75.