Everi Holdings Inc, a U.S.-based specialist in cash handling technology and electronic game content for the casino industry, saw its net loss for the three months to December 31 widen year-on-year.
Such loss was US$217.3 million, compared to US$86.6 million in the prior-year period.
It included a “non-cash US$146.3 million goodwill impairment charge, US$1.4 million for separation costs related to the company’s former chief executive, and US$400,000 for costs associated with the relocation of our Las Vegas games manufacturing operations [to Austin, Texas] for the three months ended December 31, 2016; and a non-cash US$75.0 million goodwill impairment charge for the three months ended December 31, 2015,” the group said in a Tuesday statement to the New York Stock Exchange following the filing of its results.
Everi had announced in February 2016 that it had replaced its then CEO Ram Chary, installing board member and Nevada casino industry veteran Michael Rumbolz initially as interim president and CEO. Mr Rumbolz was later confirmed as permanent replacement.
Everi said on Tuesday that revenues for the fourth quarter of 2016 increased 6.4 percent to US$217.5 million, from US$204.4 million in the fourth quarter of 2015. Games and payments segment revenues were US$54.6 million and US$162.9 million, respectively, for the fourth quarter of 2016. The company reported an operating loss of US$140.0 million for the fourth quarter of 2016 compared to an operating loss of US$68.9 million in the prior-year period.
“Throughout the majority of 2016, we successfully implemented initiatives that have stabilised our business and strengthened our ability to generate consistent growth,” said Mr Rumbolz in a statement accompanying the results.
For the year ended December 31, 2016, the group’s revenues from operations outside the United States were 3.7 percent of total revenue.
Its full-year net loss rose 138 percent year-on-year, to nearly US$249.5 million, compared to nearly US$105.0 million in the prior-year period. The operating loss for the full year was nearly US$118.6 million, compared to US$9.7 million in 2015.
Total 2016 revenues rose 4 percent year-on-year, to US$859.5 million. Aggregate costs and expenses for the full year rose 17 percent, to US$978.0 million.
The Everi Holdings brand was formed in August 2015, following a US$1.1-billion cash-consideration merger in December 2014 of Las Vegas-based Global Cash Access Holdings Inc and Multimedia Games Holding Co Inc.
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”We expect Goa to quickly become a US$1 billion market as it transitions to land-based casinos (from US$150 million today), which is still just a fraction of India’s total GGR potential of US$10 billion to US$17 billion”
Analyst at Union Gaming Securities Asia