GGRAsia – Everi posts US$112mln 3Q rev, net loss reduced q-on-q

Everi posts US$112mln 3Q rev, net loss reduced q-on-q

Nov 03, 2020 Newsdesk Industry Talk, Latest News, Top of the deck

Casino equipment maker and financial technology (fintech) supplier Everi Holdings Inc posted a third-quarter net loss of US$0.9 million, compared to net income of US$9.3 million in the prior-year quarter. The figure was however a sequential improvement: the company had reported a net loss of US$68.5 million in the the second quarter this year.

The results for the July to September 2020 period still reflected the impact of the Covid-19 pandemic, “including continued casino closures and capacity limitations at reopened casinos, even as the number of reopened casinos improved during the third quarter and capacity limitations eased at certain properties,” the firm stated in a Monday release.

Revenue for the reporting period was US$112.1 million compared to US$134.6 million a year ago. In the second quarter of 2020, Everi had reported revenue of US$38.7 million.

Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) increased to US$59.8 million from US$3.3 million in the 2020 second quarter, “driven by improved contributions from both the games and fintech segments,” the firm said. Everi’s adjusted EBITDA had been US$64.7 million in the 2019 third quarter.

Everi’s free cash flow was positive US$22.8 million for the third quarter, compared to negative US$26.7 million in the April to June 2020 period.

“The significant quarterly sequential improvement in revenue, net income, adjusted EBITDA and free cash flow in the third quarter demonstrates a quicker than previously expected recovery in our results,” said Michael Rumbolz, the group’s chief executive, in prepared remarks accompanying Monday’s earnings release. “This strong operating performance, combined with the benefits of our initiatives to streamline operations and improve our overall cost structure.”

The CEO said that, “barring additional Covid-19 setbacks and reflecting our recent momentum,” Everi would likely achieve fourth quarter 2020 net income and adjusted EBITDA comparable to the third quarter results.

He added: “The installed base of our gaming operations premium units increased year-over-year by 40 percent in the [third] quarter, largely reflecting a return to the strong, pre-pandemic performance levels of our active units. In addition, the number and value of cash access funding transactions improved during the third quarter, and casino operators demonstrated their further preference for our loyalty products, with a significant year-over-year increase in the sales of our self-service kiosks.”

Everi said it had repaid in early September the entire US$35 million that was outstanding under an existing revolving credit facility. As a result, the company’s total principal debt balance outstanding as of September 30 was US$1.146 billion compared to US$1.181 billion at the end of the second quarter of 2020.