Everi Holdings Inc. (EVRI) Misses Q4 EPS by 29c, Revenue Beats

Everi Holdings Inc. (NYSE: EVRI) reported Q4 EPS of ($0.37), $0.29 worse than the analyst estimate of ($0.08). Revenue for the quarter came in at $247.9 million versus the consensus estimate of $234.1 million.

2018 Outlook

Everi today provided its forecast for 2018 financial and operational metrics. The Company expects to generate revenue and Adjusted EBITDA growth in 2018 with Adjusted EBITDA expected to grow 6% to 8% to between $225 million to $230 million.

The Company also provided the following expectations and assumptions that underlie its 2018 financial outlook:

• The Company expects full year Games unit sales will increase approximately 10% from the 3,647 units sold in 2017. ASP for units sold in 2018 is expected to be comparable to the ASP for units sold in 2017.
• The Games installed base at December 31, 2018 is expected to increase approximately 7% to 8% from the 13,296 units reported at December 31, 2017 reflecting in part ongoing growth in the premium unit installed base driven by growth in wide-area progressive (“WAP”) placements.
• The Company expects that the DWPU for its installed base will be higher in each quarter of 2018 compared to the DWPU of the comparable quarterly periods in 2017.
• Payments Adjusted EBITDA is expected to grow in the mid-single digits compared to 2017. This assumes sustained performance in the gaming industry and United States economy as a whole.
• Revenue from the sale and service of fully integrated kiosks and compliance products is expected to be higher in 2018 compared to 2017.
• Capital expenditures in 2018 are expected to be approximately $125 million to $130 million, which includes total placement fee payments of approximately $20.2 million.
• Depreciation expense is expected to be approximately $56 million to $60 million and amortization expense is expected to be approximately $66 million to $70 million.
• Net interest expense is expected to be approximately $83 million to $87 million, inclusive of Vault Cash interest expense of approximately $7 million and $2 million of imputed interest on the Player Station Agreement. Non-cash amortization of debt issuance costs is expected to be approximately $3.4 million.
• The Company expects to record a provision for income tax of between $3 million and $5 million for 2018, which includes cash tax payments of approximately $2 million.

For a reconciliation of projected net loss to projected Adjusted EBITDA, see the Reconciliation of Projected Net Loss to Projected EBITDA and Projected Adjusted EBITDA provided at the end of this release.

For earnings history and earnings-related data on Everi Holdings Inc. (EVRI) click here.

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