Everi Holdings Inc. (EVRI) Tops Q3 EPS by 18c

Everi Holdings Inc. (NYSE: EVRI) reported Q3 EPS of ($0.01), $0.18 better than the analyst estimate of ($0.19). Revenue for the quarter came in at $112.1 million versus the consensus estimate of $89.84 million.

Michael Rumbolz, Chief Executive Officer of Everi, said, “The significant quarterly sequential improvement in revenue, net income, Adjusted EBITDA and Free Cash Flow in the third quarter demonstrates a quicker than previously expected recovery in our results. Our operations strengthened throughout the third quarter, with better performance at the end of the quarter compared to earlier in the quarter. While the future impact of the pandemic remains uncertain, our improved results highlight the resilience and strength of our recurring-revenue streams.

"The installed base of our gaming operations premium units increased year over year by 40% in the quarter, largely reflecting a return to the strong, pre-pandemic performance levels of our active units. In addition, the number and value of cash access funding transactions improved during the third quarter, and casino operators demonstrated their further preference for our loyalty products, with a significant year-over-year increase in the sales of our self-service kiosks. This strong operating performance, combined with the benefits of our initiatives to streamline operations and improve our overall cost structure, resulted in Free Cash Flow that was more than double last year’s level. This improvement in cash flow and liquidity enabled us to repay the outstanding balance on our revolving credit facility and reduce future interest costs, while positioning us to maintain appropriate liquidity to prudently manage through this still uncertain environment.

“I am extremely proud of the Everi Team’s exceptional and selfless response to these challenging times. Our collective efforts have allowed us to discover new ways to collaborate and create exciting products that assist our customers in restoring and growing their businesses while continually moving Everi forward," Rumbolz added. “The creative talents and passion of our employees were recognized with our premium game, The Vault™, winning the Gold Medal for Best Product for the 2020 GGB Gaming & Technology Awards, which comes on top of winning the Gold Medal last year, and our digital mobile CashClub Wallet® solution for casinos being awarded the Silver Medal for Best Consumer Technology, the third consecutive year of recognition for our FinTech business.

"Barring additional COVID-19 setbacks and reflecting our recent momentum, we currently expect to achieve 2020 fourth quarter net income and Adjusted EBITDA comparable to the 2020 third quarter results, despite typical fourth-quarter seasonal influences. Our focus on innovation across our portfolio of products and solutions, from exciting game development to innovative cashless funding solutions, remains a high priority. Importantly, in support of our Digital Neighborhood strategy focused on offering a comprehensive integrated set of financial and player loyalty solutions, we continued development of our CashClub Wallet® cashless and contactless mobile app ahead of its rollout with the first two casino customers later this month. Our CashClub Wallet® solution is a true digital wallet that can serve as the hub to fund a player’s activities across the casino’s entire ecosystem, from a casino’s on-premise activities to its online offerings.”

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

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