GGRAsia – Everi unable to file 1Q report on time amid Covid-19 crisis

Everi unable to file 1Q report on time amid Covid-19 crisis

May 05, 2020 Newsdesk Industry Talk, Latest News

U.S.-based casino technology supplier Everi Holdings Inc says it is “unable to file” on time its quarterly report for the quarter ended March 31 due to the outbreak of the Covid-19 disease, and the related efforts to contain the further spread of the pandemic. The report was expected to be filed by May 11.

“The company’s operations have experienced significant disruptions as a result of the circumstances surrounding the Covid-19 pandemic,” stated Everi in a Monday filing.

It added: “The company expects to file the quarterly report no later than June 25, 2020, 45 days after the original filing deadline.”

Everi said last month that its business was being negatively affected by the coronavirus crisis. In Monday’s filing, Everi said such impacts included the effects of the institution of social distancing measures and other restrictions that had led to the “temporary closures of nearly all of the company’s casino customers”.

The crisis had also “significantly” impacted demand for the company’s products and services, leading to the closure of several offices, and the “furlough of more than half of the company’s employees,” stated Everi.

“The office closures, employee furloughs, and work from home policy have, in turn, caused a delay in the preparation and filing of the quarterly report,” said the company. “Considering the impact of these factors, the company will be unable to compile and review certain information required to file the quarterly report by May 11, 2020… without unreasonable effort or expense,” it added.

Michael Rumbolz, Everi chief executive, made reference in a release last month to the wide-scale shutdown of the casino industry around the world in the wake of the novel coronavirus crisis. He said that the company’s revenue and workload had “essentially … been reduced to near zero”.

In March, Everi had already announced “targeted furloughs and company-wide salary reductions” due to the business disruption caused by the Covid-19 pandemic.

In April, the casino technology supplier said it had acquired a US$125-million incremental term loan and achieved some easing of conditions on an existing senior secured credit agreement with lenders.

Fitch Ratings Inc said in mid-April that it had downgraded Everi long-term issuer default ratings (IDRs) to ‘B’ from ‘B+’.