U.S.-based Everi Holdings Inc on Monday announced preliminary financial results for the first quarter of 2017, saying it expected a narrower net loss compared to the prior-year period. Everi – a specialist in cash handling technology and electronic game content for the casino industry – said the announcement was made in connection with a proposed refinancing plan.
The company expects consolidated revenues for the three months to March 31 to be in the range of US$233 million to US$238 million. That compares to revenues of US$205.8 million in the first quarter of 2016.
Everi said its quarterly net loss should to be in the range of US$6 million to US$4 million for the first quarter of 2017, compared to a net loss of US$13.2 million in the prior-year period.
The company also anticipates its consolidated adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) for the first quarter of 2017 to be in the range of US$52 million to US$54 million. The firm reported consolidated adjusted EBITDA of US$45.7 million for the first quarter of 2016.
Michael Rumbolz, Everi’s president and chief executive, said in a statement: “Our preliminary 2017 first quarter results include year-over-year revenue and adjusted EBITDA growth for both our games and payments segments, which reflect the company’s continued successful execution against its strategic priorities.”
He added: “We are well positioned to deliver consistent operating performance momentum over the balance of 2017 and beyond.”
The company said it expects to report its full first-quarter results on May 9.
Telsey Advisory Group LLC stated that preliminary results indicate that Everi will “modestly exceed expectations”.
“Although positive, the modest upside does not suggest that the outlook for the year should change in trajectory, with tempered results through the first three quarters of the year and stronger fourth quarter,” analyst David Katz wrote in a Monday note.
Everi said the announcement of the selected preliminary results was made in connection with a plan to refinance both its outstanding US$335 million of senior secured notes due in 2021 and its existing term loan maturing in 2020. As of Monday, the outstanding balance on the term loan stood at nearly US$462.3 million, according to the firm.
The company said it expects the proposed refinancing transaction “to lower its annual cash interest expense, enhance its financial flexibility and extend its maturity schedule”. Everi did not disclose details about the refinancing plan.
“The refinancing, assuming it is successful, should enhance the free cash flow prospects for the company and add stability to the balance sheet in a leverage-focused story,” said Telsey’s Mr Katz.
May 20, 2019Japan’s “very low unemployment” could be a major problem for international casino firms hoping to hire thousands of locals, should such firms win one of up to three casino licences on offer in...
"There’s a lot of competition and politics involved, but we are absolutely confident about our bid for Osaka”
Chairman and chief executive of Melco Resorts