Everi repricing debt, says 4Q results show improvement
Everi Holdings Inc, a specialist in cash handling technology and electronic game content for the casino industry, says it expects fourth-quarter 2020 consolidated revenues to be in a range of US$117 million to US$121 million, “reflecting quarterly sequential improvement from US$112.1 million in the 2020 third quarter.”
The firm’s preliminary financial results for the fourth quarter were released on Tuesday, in connection with the announcement of an exercise to reprice a portion of its outstanding debt. The company said it was looking to take advantage of “favourable market conditions” to lower its cost of debt by repricing US$735.5 million of its first lien term loan due in 2024.
In its latest announcement, Everi Holdings said it expected its net loss in the three months to December 31 to be in a range of US$1.4 million to US$0.3 million, inclusive of approximately US$1.5-million in pre-tax charges related to the consolidation of certain facilities and the write-off of certain inventory. That compares to a net loss of US$0.9 million in the third quarter, and a net loss of US$4.1 million in the fourth quarter of 2019.
Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) for the final quarter of 2020 were likely to be in a range of US$60 million to US$62 million, compared to US$59.8 million in the previous three months, said the company.
“While the expected results demonstrate sequential improvement, the preliminary 2020 fourth-quarter results reflect continued impact from the Covid-19 pandemic and related casino closures,” stated Everi.
Due to the “significant impact” of the pandemic on the casino and hospitality industries, revenue for 2020 is expected to be in a range of US$381 million to US$385 million, with net loss between US$85 million to US$83 million. That compares with revenues of US$533.2 million and net income of US$16.5 million in 2019.
The statement quoted Michael Rumbolz, Everi’s chief executive, as saying: “Our preliminary 2020 fourth-quarter results reflect quarterly sequential improvement highlighting the ongoing strength and balance of our business, as well as the benefit of our focus on consistent improvement in our operating execution.”
He added: “Even with increased casino closures and further restrictions on certain casino activities in the fourth quarter, the sequential progress of our expected financial and operating results demonstrate the significant improvements to our Games and FinTech [financial technology] product portfolios over the last several years.”
Mr Rumbolz said additionally that the company expected the “operating strength and momentum” to continue in the first quarter this year, “as casinos again begin to reopen and casino activities improve compared to 2020 fourth-quarter levels.”
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