Everi Holdings Inc – a specialist in cash handling technology and electronic game content for the casino industry – has replaced its chief executive with effect from February 13, the firm said in a press release on Tuesday.
Ram Chary has been succeeded by board member and Nevada casino industry veteran Michael Rumbolz, who has the title interim president and CEO.
Everi Holdings saw its stock price decline by nearly 36.0 percent month-on-month in January and by nearly 57.5 percent year-on-year that month according to the latest edition of the AGEM Index, compiled by the Association of Gaming Equipment Manufacturers in collaboration with research firm Applied Analysis LLC.
“While this was a difficult decision, the board believes this move is in the company’s best interest,” said E. Miles Kilburn, Everi Holdings’ chairman, in a statement contained in the press release.
The board would consider internal and external candidates for the role, and “expects to hire a CEO who has a strong track record of success,” added the company in the document.
The firm’s directors “likely identified communication gaps between Mr Chary and certain tribal [gaming industry] customers, investors and games employees,” said analyst David Bain of brokerage Sterne Agee CRT in a note on Tuesday.
Mr Rumbolz “has the tools to quicken the strategic pace and will fill the communication gaps,” said Mr Bain, adding that the brokerage believes that Everi Holdings “wishes to quicken execution” of the company’s development strategy.
Analysts David Katz and Brian Davis of Telsey Advisory Group LLC said in note the same day: “We believe that the focus of the interim management team will be to review the progress of the current strategy rather than to redirect it.”
They added that involved: “… increasing distribution on the gaming side through broadening the licensed gaming offerings,” and “accelerating the product development process and maintaining current standing with casino customers.”
Mr Rumbolz has been a member of Everi Holdings’ board since August 2010. He most recently served as an independent consultant to Everi Holdings and previously was the chairman and CEO of Cash Systems Inc, a competitor that was acquired by Everi Holdings in 2008. Mr Rumbolz is also a former vice chairman of Casino Data Systems Inc, and was previously the president and CEO of Anchor Gaming Inc. Additionally, he has served as a chairman of the Nevada Gaming Control Board, and is a former Chief Deputy Attorney General of the State of Nevada.
“During the interim I will work directly with our talented executive team to ensure there are no disruptions to our daily business operations,” said Mr Rumbolz in Everi Holdings’ press announcement.
“I will continue to execute the existing corporate strategy in our games and payments businesses for the gaming industry, and given the strength of our offerings and the market opportunities available to us, I feel confident about our long-term potential to drive growth and shareholder value,” he added.
Sterne Agee CRT’s Mr Bain said: “We hope he stays long-term.”
“We believe Mr Rumbolz’s gaming/processing background/relationships and forward-thinking concepts surrounding a potential convergence of cash processing and the casino floor are extremely well-suited to drive Everi shareholder value.”
Until August, Everi Holdings was known as Global Cash Access Holdings Inc. Under that name it acquired in 2014 – in a US$1.2-billion deal – Multimedia Games Holding Co Inc, a maker and supplier of systems, content and electronic gaming units for casinos. The deal was approved by the Nevada Gaming Commission in December that year.
Everi Holdings is expected to report 2015 fourth quarter and full year financial results in March.
