Everi back to black with US$4.6-mln 1Q profit
Everi Holdings Inc, a U.S.-based specialist in cash handling technology and electronic game content for the casino industry, reported net income of US$4.6 million for the first quarter of 2018. That compares to a net loss of US$3.5 million in the prior-year period, the firm said in a Monday filing to the New York Stock Exchange.
Revenues for the first three months of 2018 increased 9.9 percent year-on-year to US$111 million. Games segment revenue was US$60.2 million for the first quarter of 2018, up 8.9 percent; the payments segment reported revenues of US$50.8 million, an increase of 10.9 percent.
The company reported operating income of US$24.5 million for the period, compared to US$22.6 million in the first quarter of 2017.
Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) for the three months ended March 31 increased by US$3.8 million – or 7.0 percent – to US$58 million.
Commenting on the firm’s first-quarter performance, Michael Rumbolz, president and chief executive of Everi, said: “Our operating momentum continued in the first quarter of 2018 as comparable revenue rose nearly 10 percent, adjusted EBITDA grew more than 7 percent and we returned to profitability. Our continued growth reflects year-over-year improvement in all of our key performance indicators, including unit sales, average selling price, total installed units and daily win per unit.”
In the games segment, Everi said the average number of units installed in the first quarter this year increased to 13,805, from 13,074 in the prior-year period. The company sold a total of 1,063 gaming units during the reporting period.
Revenues from gaming operations were US$40.1 million in the three months to March 31, compared to US$36.5 million in the prior-year period. “The increase reflects year-over-year growth in the installed base and in the estimated daily win per unit,” said the firm.
The number of installed units at March 31, 2018, increased 1,102 units year-on-year to 14,124 units and increased 828 units on a quarterly sequential basis.
An “expanded and improved product portfolio” was “helping to drive increased ship share and growth in both placements and the yield of our installed base,” said Mr Rumbolz in the prepared statement.
He added: “Sales of the Empire MPX cabinet more than doubled on a quarterly sequential basis and we believe the favourable player reaction received to date will help drive further sales momentum going forward.”
Everi also announced on Monday the intention to reprice its US$814-million term loan that is scheduled to mature in 2024, in order to “lower cash interest costs and lower its cost of capital. The company said it expects the repricing exercise be completed “within the next 14 days”.
“If successful, the repricing of our term loan will further benefit our future free cash flow generation that we believe is already poised to accelerate going forward. Our priority for free cash flow is to reduce leverage,” said Randy Taylor, Everi’s executive vice president and chief financial officer, in a statement contained in Monday’s filing.
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