GGRAsia – Everi posts 4Q loss on litigation costs, revenue up 22pct

Everi posts 4Q loss on litigation costs, revenue up 22pct

Mar 03, 2020 Newsdesk Industry Talk, Latest News

Everi Holdings Inc, a United States-based specialist in cash handling technology and electronic game content for the casino industry, reported a net loss of US$4.1 million for the fourth quarter of 2019, compared with a profit of US$4.2 million a year earlier. The firm said the net loss was due to a pre-tax US$6.4-million charge related to a litigation settlement regarding to its fintech operations.

In addition, the company provided an initial outlook for some 2020 financial and operational metrics. Everi said it expected to continue to generate in 2020 year-over-year growth respectively in revenue, net income, adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) and free cash flow. Adjusted EBITDA was expected to increase to a range of US$272 million to US$282 million, the firm said in a Monday filing to the New York Stock Exchange.

It was also announced on Monday that Everi’s board had authorised a US$10-million share repurchase programme.

The company said it achieved overall “record” financial results for the fourth quarter of last year, boosted by an increase in total revenue. Aggregate revenues for the three months to December 31 increased 21.5 percent year-on-year to approximately US$145.2 million, said the firm.

Games segment revenue was US$77.0 million for the fourth quarter of 2019, up 15.0 percent from the prior-year period. The fintech division reported revenue of US$65.3 million, an increase of 29.7 percent from the comparable period in 2018.

The company reported overall operating income of US$16.0 million for the three months to December 31, 7.2 percent lower compared to US$17.2 million a year earlier.

Adjusted EBITDA for the reporting period increased by US$8.6 million – or 15.8 percent year-on-year – to US$63.2 million.

Everi posted net income of US$16.5 million for full-2019, up by one-third in year-on-year terms. The increase was on revenue that grew by 13.6 percent to a record US$533.2 million, said the firm.

Commenting on the firm’s full-year performance, Michael Rumbolz, president and chief executive of Everi, said in a prepared statement: “For 2019, our games business achieved a record level of unit sales, a record year-end installed base and a 15-percent improvement in full-year daily win per unit.”

In the games segment, Everi said it sold a total of 1,348 gaming units during the fourth quarter of 2019, an uncrease of 14.5 percent from the year-ago period. The average sales price however declined by 6.6 percent to US$17,630.

Mr Rumbolz added: “We also established a strong foundation to deliver growth from our entry into the player loyalty products and services market.”

Everi said in December it would pay a total of US$20 million to acquire certain assets of privately-held Micro Gaming Technologies Inc. The latter firm produces software to automate, track and report casino player promotions on behalf of gaming venue operators, according to its corporate website.