GGRAsia – Everi expects record quarterly results, plans refinancing

Everi expects record quarterly results, plans refinancing

Jun 22, 2021 Newsdesk Industry Talk, Latest News

Casino equipment maker and financial technology (fintech) supplier Everi Holdings Inc says it expects “record second-quarter results,” on the back of “substantial growth” in its business compared to pre-pandemic levels. The company also announced plans to refinance its outstanding debt.

In a Monday press release, Everi said it expected second-quarter consolidated revenues in the range of US$167 million to US$172 million, an improvement from the US$139.1 million recorded in the first three months of 2021, and an increase of “more than 25 percent compared to US$129.7 million in the pre-pandemic 2019 second quarter.”

The company also said second-quarter 2021 net income should be between US$31 million to US$34 million, a new quarterly record. The firm posted an all-time quarterly record net income in the first quarter of 2021.

Everi said additionally it anticipated adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) in the range of US$87 million to US$91 million in the three months to June 30, compared to US$75.4 million in the 2021 first quarter and US$64.1 million in the 2019 second quarter.

In Monday’s release, the company said it would “take advantage of favourable market conditions,” and refinance its US$35-million revolving credit facility due 2022 and its US$820 million term loan facility due 2024. Everi also plans to “prepay in full” its US$125-million incremental term loan facility due 2024, and redeem the US$285.4 million of unsecured notes due 2025, according to the announcement.

Everi said that after refinancing its nearly US$1.15-billion total outstanding debt, it expected to have US$1.0-billion of outstanding total debt and to have a new US$125-million revolving credit facility “that will be undrawn at closing.”

According to Monday’s statement, Everi’s cash and cash equivalents rose to US$360.8 million as of May 31, compared to US$335.1 million as of March 31, 2021.

The release quoted Michael Rumbolz, Everi’s chief executive, as saying: “Both our games and fintech segments are performing significantly above pre-pandemic periods, driving substantial improvements in our total revenue, net income, adjusted EBITDA, and free cash flow.”

The CEO said the group’s gaming operations installed base had continued to grow during the second quarter, “fuelled primarily by a greater number of premium units, which is also driving new record levels of daily win per unit.”

He added: “We also expect our gaming machine unit sales in the second quarter will well exceed the level shipped in the first quarter of 2021.”