GGRAsia – Everi narrows 1Q loss, completes refinancing

Everi narrows 1Q loss, completes refinancing

May 10, 2017 Newsdesk Industry Talk, Latest News, Top of the deck

Everi Holdings Inc, a U.S.-based specialist in cash handling technology and electronic game content for the casino industry, saw its net loss for the three months to March 31 narrow year-on-year.

Such loss was US$3.5 million, compared to US$13.2 million in the prior-year period.

Revenues for the first quarter of 2017 increased 15.4 percent year-on-year to US$237.5 million. Games segment revenue was US$55.3 million for the first quarter of 2017, up 14.7 percent; the payments segment reported revenues of US$182.3 million, an increase of 15.7 percent.

Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) for the three months ended March 31 increased by US$8.4 million – or 18.4 percent – to US$54.2 million, the group said in a Tuesday statement to the New York Stock Exchange following the filing of its results.

Commenting on the firm’s first-quarter performance, Michael Rumbolz, president and chief executive of Everi, said: “Our 2017 first-quarter financial results, including double-digit year-over-year revenue and adjusted EBITDA growth, reflect the fourth consecutive quarter of successful execution against our strategic operating priorities.”

Mr Rumbolz added: “The introduction of new products, including games for our popular Core HDX gaming cabinet and continued demand for our three-reel mechanical games has helped drive consistent improvement in unit sales.”

Following its first-quarter results announcement, Everi updated the firm’s financial forecast for 2017. “Reflecting the slightly better than anticipated performance in the first quarter of 2017, the company raised the low end of its range for expected 2017 full year adjusted EBITDA, with the new range now between US$205 million and US$209 million,” it stated

Everi also announced on Tuesday the completion of a previously announced debt refinancing transaction of a first lien term loan – with an outstanding balance of approximately US$462 million that was scheduled to mature in 2020 – and of senior secured notes worth US$335 million that were scheduled to mature in 2021.

“The completed refinancing transaction consists of an US$820-million first lien term loan that is scheduled to mature in 2024 and a US$35-million revolving credit facility that is scheduled to mature in 2022,” the firm said. “The US$35-million revolving credit facility replaces the company’s former US$50-million revolving credit facility that was scheduled to mature in 2019,” Everi added.

“Our now completed refinancing transaction extends the maturity on a large portion of our outstanding debt and lowers our overall interest expense,” Randy Taylor, executive vice president and chief financial officer for Everi, said in Tuesday’s statement.

He added: “Based upon current interest rates, we expect the effect of this transaction will lower our annual cash interest expense by approximately US$8 million compared to our former facility while also enhancing our financial flexibility.”

The Everi brand was formed in August 2015, following a US$1.1-billion cash-consideration merger in December 2014 of Las Vegas-based Global Cash Access Holdings Inc and Multimedia Games Holding Co Inc.