Everi Holdings Inc. (NYSE: EVRI) reported Q2 EPS of $0.07, $0.64 better than the analyst estimate of ($0.57). Revenue for the quarter came in at $38.7 million versus the consensus estimate of $21.58 million.

Second Quarter 2020 Results

• Revenue was $38.7 million compared to $129.7 million a year ago
• Net loss was $68.5 million, or a loss of $0.80 per diluted share, inclusive of $14.8 million of pre-tax charges associated with asset write-offs and write-downs, severance, facility consolidation and certain business restructuring costs to streamline operations and improve our cost structure; Net income was $5.5 million, or $0.07 per diluted share, in the prior year period
• Adjusted EBITDA, a non-GAAP financial measure, was $3.3 million compared to $64.1 million a year ago, driven by positive contributions from both the Games and FinTech segments
• Cash and cash equivalents increased to $257.4 million at June 30, 2020, from $49.9 million at March 31, 2020; Net Cash Position, a non-GAAP financial measure, rose to $133.2 million at June 30, 2020 from $40.4 million at March 31, 2020, reflecting approximately $118 million of net proceeds from an incremental term loan in April and the benefit of changes in working capital

Michael Rumbolz, Chief Executive Officer of Everi, said, “We achieved better-than-expected results in the second quarter, including a return to positive Adjusted EBITDA more quickly than we anticipated at the beginning of the quarter. This was the result of several factors, including the swift actions we took in March when the pandemic struck to reduce our operating costs and preserve liquidity during the time casinos were shut down; as well as our focus on enhancing operational efficiencies and pursuing higher-value opportunities. In addition, as our customers began to reopen faster than previously expected, we benefited from our prior investments in technology innovations and game development through the strong performance of our FinTech solutions and installed base of recurring-revenue games.

“As we move through the third quarter, our products and services continue to reflect a return to the performance momentum we were achieving before COVID-19. The units in our gaming operations installed base that are active are performing at levels comparable to our experience pre-pandemic. In addition, the cash access portion of our FinTech business is processing same-store transactional volumes at levels that are, on average, only moderately below the prior-year. Reflecting these trends, as well as the benefit from the 636-unit growth in installed premium games since the beginning of 2020, we expect quarterly sequential growth in the second half of 2020, including a return to Free Cash Flow generation in the third quarter, which is earlier than we had previously anticipated.

“Looking forward, the Everi Team continues to focus on helping our customers and prioritizing innovation across our portfolio of products and solutions, from game development to cashless funding solutions,” Rumbolz added. “We are favorably positioned to leverage our industry leadership in cash access funding and self-service player loyalty products to lead the future evolution toward cashless funding and to successfully capitalize on the additional growth opportunities presented by the increased interest from both casino operators and players for cashless and contactless options. These forward-thinking solutions include the immediate availability of our cashless QuikTicket™ gaming voucher and a unique fully cashless mobile solution with the development of our CashClub® Wallet. We believe we have unique high-value FinTech and Games solutions that will help our customers address the new operating environment in their reopened properties, which when combined with our more streamlined operating approach, will help us regain the revenue, earnings and cash flow momentum we consistently demonstrated prior to the pandemic.”

2020 Outlook

As previously disclosed, due to the COVID-19 pandemic and the ongoing uncertainty regarding its magnitude and duration, Everi has withdrawn the 2020 financial outlook it provided on March 2, 2020.

Despite the existing uncertainty in the current environment, based on current conditions and performance trends, the Company continues to expect to generate positive Adjusted EBITDA in the 2020 third quarter and now expects to return to Free Cash Flow generation in the third quarter, compared to its prior expectation that it would not begin to generate Free Cash Flow until the 2020 fourth quarter.

“As additional casinos across the country continue to reopen and the industry continues its return toward normalized operations, we believe our operational and product development initiatives will support our goal of enhancing shareholder value,” said Rumbolz.

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