Casino technology supplier Everi Holdings Inc says it has implemented “targeted furloughs and company-wide salary reductions” due to the business disruption to the gaming industry caused by the Covid-19 virus. Such measures were in order “to maintain balance sheet flexibility and preserve liquidity,” the company said in a press release on Tuesday.
Everi said its chief executive Michael Rumbolz had “elected to cut his salary to zero” and the firm’s executive team had agreed to reduce their respective salaries by 70 percent. “The effect of these actions has lowered the company’s future cash payroll expense to less than US$2 million per month,” said the firm.
Everi said also that it had drawn down US$35 million on its revolving credit facility to provide the firm with “additional near-term liquidity,” and has “cancelled or delayed material capital expenditures”.
The firm said additionally that it had withdrawn the guidance for full-year 2020 provided in March, “given the current operating environment and the uncertain timeline and impact” on the company’s operations as a result of “widespread casino closures” across North America.
“While revenue for the first two months of the year increased in line with our forecast compared to the same two-month period a year ago, our customers’ ability to operate has been severely impacted by the nearly-universal directives to close facilities across North America to protect the public,” the statement quoted Everi’s CEO as saying.
Mr Rumbolz added: “With essentially all revenue and the associated workload having been reduced to near zero and limited visibility as to when our customers may reopen for business, we have taken decisive actions appropriate for the current level of business and to prepare our company to withstand a potentially prolonged period of minimal industry activity.”
The company’s CEO said the measures now implemented were “appropriate” to preserve the firm’s liquidity. “We expect these to be temporary but prudent steps designed to ensure that Everi is best positioned to withstand this disruption and will be prepared to support ourcustomers once they begin to reopen their facilities,” the executive added.
The company said earlier this month it had promoted Randy Taylor to the newly-created role of president and chief operating officer, and also secured the services of Mr Rumbolz via a 14-month contract extension, through to March 31, 2022.
