- Fourth quarter Revenues increased 13.8% to $119.5
million
- Fourth quarter Net income improved to $4.2 million from
a loss of $25.0 million and Diluted Earnings per Share improved to
$0.06 from a loss of $(0.37)
- Adjusted EBITDA increased 6.4% to $54.6
million
Provides Outlook for 2019 Growth in
Revenue, Adjusted EBITDA and Free Cash Flow
Everi Holdings Inc. (NYSE:EVRI) (“Everi” or the “Company”) today
reported financial results for the fourth quarter and full year
ended December 31, 2018.
Michael Rumbolz, President and Chief Executive
Officer of Everi, commented, “Our fourth quarter results reflect
continued strong customer demand for new products across our
business segments as we achieved our tenth consecutive quarter of
revenue and Adjusted EBITDA growth and generated record fourth
quarter revenue and Adjusted EBITDA. Fourth quarter revenue rose
13.8% to $119.5 million and Adjusted EBITDA increased 6.4% to $54.6
million. Ongoing market share gains in both our Games and FinTech
segments are driving notable and consistent improvement across
virtually all of our key performance indicators, including a record
level of full year unit sales, our highest ever year-end installed
base, five consecutive quarters of daily win per unit growth, and
consistent year-over-year growth in cash access services revenue,
kiosk sales and compliance product-related revenue. As a
result of the increases across these and other key performance
metrics, 2018 full year consolidated revenue rose 14.3% to $469.5
million and Adjusted EBITDA increased 8.3% to a record $230.4
million. We also recorded four consecutive quarters of positive net
income and diluted earnings per share and reached an inflection
point in the acceleration of our free cash flow, as this metric
nearly doubled to $24.8 million.”
Consolidated Full Quarter Comparative
Results (unaudited)
|
Three Months Ended December 31, |
|
2018 |
|
2017 |
|
|
|
(in millions, except per share
amounts) |
Revenues (1) |
$ |
119.5 |
|
|
$ |
105.0 |
|
|
|
|
|
Operating income
(2) |
$ |
17.2 |
|
|
$ |
18.1 |
|
|
|
|
|
Net income (loss)
(2)(3) |
$ |
4.2 |
|
|
$ |
(25.0 |
) |
|
|
|
|
Net earnings (loss) per
diluted share (2)(3) |
$ |
0.06 |
|
|
$ |
(0.37 |
) |
|
|
|
|
Diluted shares
outstanding |
74.0 |
|
|
67.8 |
|
|
|
|
|
Adjusted EBITDA
(4) |
$ |
54.6 |
|
|
$ |
51.3 |
|
(1) Revenues for the three months ended December
31, 2017 are presented on a comparable basis to retrospectively
reflect a net versus gross reporting of revenues under ASC 606,
which primarily impacts the Company’s Financial Technology
Solutions business. This has no impact on the Company’s operating
income, net loss, net loss per diluted share, or Adjusted EBITDA.
For further discussion, see the Net Versus Gross Impacts on
Revenues and Cost of Revenues disclosure at the end of this
release.(2) Operating income, net income and net earnings per
diluted share for the three months ended December 31, 2018 included
approximately $0.4 million of non-recurring operating expenses
related to professional service fees and net income and net
earnings per diluted share for the three months ended December 31,
2018 included a tax benefit of approximately $7.4 million primarily
related to the reversal of a portion of the valuation allowance on
certain deferred tax assets.(3) Net loss and net loss per diluted
share for the three months ended December 31, 2017 included a $37.1
million loss on the extinguishment of debt incurred in connection
with the Company’s repricing of its First Lien Term Loan and
refinancing of its Senior Unsecured Notes, and $23.8 million of
income tax benefit primarily related to a provisional tax benefit
for the impact of the U.S. Tax Cuts and Jobs Act of 2017.(4) For a
reconciliation of net income (loss) to Adjusted EBITDA, see the
Unaudited Reconciliation of Net Income (Loss) to EBITDA and
Adjusted EBITDA and to Free Cash Flow and Adjusted EBITDA Margin on
as Comparable Basis provided at the end of this release.
Mr. Rumbolz added, “The investments we have made
in our FinTech and Games product portfolios over the last several
years have led to a greater range of products and services that are
delivering higher value to casino operators and better experiences
for their guests. As a result, we are expanding our presence on
casino floors in both business segments. Our FinTech solutions
offer industry-leading convenience and efficiency and we continue
to innovate in our core products and product extensions, enabling
us to meet new and evolving market demands. Our FinTech market
share continues to grow reflecting high customer retention levels,
our ability to secure the majority of new casino agreements and
consistent competitive wins. The expansion of our product offerings
in the Games business, including the introduction of new cabinets
and games, provides us with the ability to address new segments of
the slot floor and is helping this segment achieve our growth
goals. Our unit sales and ship share continue to improve, and we
have established a product pipeline that we expect will drive
ongoing improvements in our high-margin gaming operations business.
It is important to note, we generated a more than 70% increase in
our 2018 year-end installed base of high performing wide-area
progressive units, which helped drive consistent improvement in our
daily win per unit. We are also beginning to reap the
benefits of our efforts to leverage our game development
capabilities and technology platform in the Interactive gaming
space.
“Throughout 2018 we executed on key initiatives
which led to consistent improvement in our financial performance
which we believe provides the foundation for future growth. We
expect 2019 will demonstrate additional operating performance
momentum, including our expectation for full-year 2019 Adjusted
EBITDA growth to a range of $252 million to $255 million.
Reflecting our improving financial outlook and our diligence on
return-focused investment across the business, 2019 will also
highlight our ability to continue generating accelerating levels of
free cash flow.”
Acquisition of Self-Service Casino
Loyalty Enrollment and Marketing Platform
Everi also announced today that it recently
acquired certain casino gaming-related assets from a leading
provider of casino loyalty and marketing solutions. The acquired
assets include existing technology related to self-service kiosks
and a marketing platform as well as other intellectual property.
The Company also acquired a portfolio of over 50 customer contracts
representing over 100 casino locations where the platform is
currently installed that provide a stream of high-margin recurring
revenue related to software maintenance and support. The
Company paid $20 million of the $40 million purchase price from
cash balances on hand. The Company expects to pay the balance over
the next two years as well as contingent earnout consideration of
an additional $10 million at the end of a two-year earnout period
also from cash balances on hand. The tuck-in acquisition is
expected to be immediately additive to the Company’s Adjusted
EBITDA and improves Everi’s ability to generate additional free
cash flow.
The acquisition enhances the Company’s existing,
market-leading financial technology solution portfolio by adding
new touch-points for gaming patrons at customer locations and a new
player loyalty and marketing focused business line. Everi
intends to leverage its powerful gaming network to add valuable
transactional information for customers.
Mr. Rumbolz, said, “The addition of this
market-leading player loyalty platform enhances our existing
FinTech solution offering. It supplements our existing Information
Solutions capabilities, expands our products and services into a
new and growing business segment of Marketing Information Services,
and provides opportunities to achieve greater future growth.
“Our ability to integrate this robust player
loyalty platform with our payment solutions and growing compliance
suite through our already powerful proprietary network further
differentiates our comprehensive offerings and enhances the overall
value proposition of the FinTech services we provide to our
customers. We believe this attractive tuck-in acquisition
fits perfectly into our strategy of delivering products and
services that are focused on improving the guest experience,
growing our FinTech transactional base and creating operating
efficiencies for our customers.”
Fourth Quarter 2018 Results
Overview
Revenues are presented herein on a comparable
basis (see the Net Versus Gross Impacts on Revenues and Cost of
Revenues disclosure at the end of this release for a reconciliation
of 2017 amounts as reported to as adjusted).
Revenues for the fourth quarter of 2018
increased 13.8% to $119.5 million from $105.0 million in the fourth
quarter of 2017. Revenues from the Games and FinTech segments
were $67.0 million and $52.5 million, respectively, for the fourth
quarter of 2018. The Company reported operating income of $17.2
million for the fourth quarter of 2018, compared to operating
income of $18.1 million in the fourth quarter of 2017.
The Company recorded a loss before income tax of
$3.2 million in the fourth quarter of 2018 compared to a loss
before income tax of $48.8 million in the fourth quarter of
2017. The loss before income tax for the three months ended
December 31, 2017 included a $37.1 million loss on early
extinguishment of debt related to the Company’s repricing of its
First Lien Term Loan and refinancing of its former Senior Unsecured
Notes.
In the fourth quarter of 2018, the Company
recorded a non-cash income tax benefit of $7.4 million compared to
a non-cash income tax benefit of $23.8 million in the fourth
quarter of 2017. The income tax benefit recognized in the
fourth quarter of 2018 was primarily the result of the reversal of
a portion of the valuation allowance for certain deferred tax
assets. The income tax benefit recognized in the fourth quarter of
2017 was primarily due to a reduction in the carrying value of the
Company’s deferred tax liabilities as a result of the enactment of
the U.S. Tax Cuts and Jobs Act of 2017. The 2017 fourth
quarter income tax benefit was partially offset by an increase in
the valuation allowance for deferred tax assets.
The Company reported net income of $4.2 million,
or $0.06 per diluted share, for the fourth quarter of 2018 compared
to a net loss of $25.0 million, or a diluted loss per share of
$(0.37), in the prior-year period.
Adjusted EBITDA for the fourth quarter of 2018
increased approximately 6.4%, or $3.3 million, to a fourth quarter
record $54.6 million from $51.3 million in the fourth quarter of
2017. Games and FinTech segment Adjusted EBITDA for the three
months ended December 31, 2018 were $29.6 million and $25.0
million, respectively. Games and FinTech segment Adjusted
EBITDA for the three months ended December 31, 2017 were $27.2
million and $24.1 million, respectively.
Games Segment Full Quarter Comparative
Results (unaudited)
|
Three Months Ended December 31, |
|
2018 |
|
2017 |
|
|
|
(in millions, except unit amounts and
prices) |
Revenues (1) |
$ |
67.0 |
|
|
$ |
56.6 |
|
|
|
|
|
Operating loss (2) |
$ |
(2.8 |
) |
|
$ |
(0.3 |
) |
|
|
|
|
Adjusted EBITDA
(3) |
$ |
29.6 |
|
|
$ |
27.2 |
|
|
|
|
|
Unit sales: |
|
|
|
Units
sold |
1,177 |
|
|
926 |
|
Average
sales price ("ASP") |
$ |
18,875 |
|
|
$ |
17,611 |
|
|
|
|
|
Gaming operations
installed base: |
|
|
|
Average
units installed during period: |
|
|
|
Average
units installed |
13,966 |
|
|
13,216 |
|
Approximate daily win per unit (4) |
$ |
28.42 |
|
|
$ |
26.60 |
|
|
|
|
|
Units
installed at end of period: |
|
|
|
Class
II |
9,370 |
|
|
8,875 |
|
Class
III |
4,629 |
|
|
4,421 |
|
Total
installed base |
13,999 |
|
|
13,296 |
|
|
|
|
|
Installed
base - Oklahoma |
6,599 |
|
|
6,681 |
|
Installed
base - non-Oklahoma |
7,400 |
|
|
6,615 |
|
Total
installed base |
13,999 |
|
|
13,296 |
|
|
|
|
|
Premium
units |
2,859 |
|
|
2,532 |
|
(1) Revenues for the three months ended December
31, 2017 are presented on a comparable basis to retrospectively
reflect a net versus gross reporting of revenues under ASC 606,
which was not material for the Games operating segment.(2)
Operating loss for the three months ended December 31, 2018
includes the impact of approximately $0.2 million related to
certain non-recurring professional fees.(3) For a reconciliation of
net income (loss) to Adjusted EBITDA, see the Unaudited
Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA
and to Free Cash Flow and Adjusted EBITDA Margin on as Comparable
Basis provided at the end of this release.(4) Approximate daily win
per unit excludes the impact of the direct costs associated with
the Company’s wide-area progressive jackpot expense.
2018 Fourth Quarter Games Segment
Highlights
On a comparable revenue basis, Games segment
revenues were $67.0 million in the fourth quarter of 2018 compared
to $56.6 million in the fourth quarter of 2017.
- Revenues from gaming operations increased approximately 11.9%,
or $4.4 million, to $41.5 million in the fourth quarter of 2018
compared to $37.1 million in the prior-year period. The
increase reflects year-over-year growth in both the installed base
and estimated daily win per unit (“DWPU”).-- The installed base at
December 31, 2018 increased by 703 units year over year to 13,999
units. The premium unit portion of the installed base
increased 13% year over year, or 327 units, to 2,859 units.
Wide-area progressive units, which are a component of the premium
units, were 604 units at December 31, 2018. -- DWPU in
the fourth quarter of 2018 increased 6.8%, or $1.82, to $28.42,
compared to $26.60 in the prior-year period. The increase reflects,
in part, improvements in the overall unit performance following
capital investments in new cabinets and games to update a portion
of the installed base, as well as an increase in the premium unit
placements including wide-area progressive games. This was
the fifth consecutive quarter of year-over-year growth in
DWPU.-- Interactive revenue was $0.7 million in the fourth
quarter of 2018 compared to $0.2 million in the prior-year
period. -- Revenues from the New York Lottery business were
$4.5 million in the fourth quarter of 2018 compared to $4.4 million
in the prior-year period.
- Revenues generated from the sale of gaming units and other
related parts and equipment totaled $23.5 million in the fourth
quarter of 2018 compared to revenues of $17.5 million in the
prior-year period. -- Gaming unit sales increased 27% to 1,177
units in the fourth quarter of 2018 compared to 926 units in the
prior-year period.
- Other gaming revenues, which include revenues from TournEvent
of Champions® qualifying events, were $1.9 million in the fourth
quarter of both 2018 and 2017.
Financial Technology Solutions Segment Full Quarter
Comparative Results (unaudited)
|
Three Months Ended December 31, |
|
2018 |
|
2017 |
|
|
|
(in millions, unless otherwise
noted) |
Revenues (1) |
$ |
52.5 |
|
|
$ |
48.4 |
|
|
|
|
|
Operating income
(2) |
$ |
20.0 |
|
|
$ |
18.4 |
|
|
|
|
|
Adjusted EBITDA
(3) |
$ |
25.0 |
|
|
$ |
24.1 |
|
|
|
|
|
Aggregate dollar amount
processed (in billions): |
|
|
|
Cash
advance |
$ |
1.8 |
|
|
$ |
1.6 |
|
ATM |
$ |
4.9 |
|
|
$ |
4.4 |
|
Check
warranty |
$ |
0.3 |
|
|
$ |
0.3 |
|
|
|
|
|
Number of transactions
completed (in millions): |
|
|
|
Cash
advance |
2.8 |
|
|
2.5 |
|
ATM |
23.0 |
|
|
21.3 |
|
Check
warranty |
0.9 |
|
|
0.9 |
|
(1) Revenues for the three months ended December
31, 2017 are presented on a comparable basis to retrospectively
reflect a net versus gross reporting of revenues under ASC 606.
This has no impact on the Company’s operating income or Adjusted
EBITDA. For further discussion, see the Net Versus Gross Impacts on
Revenues and Cost of Revenues disclosure at the end of this
release.(2) Operating income for the three months ended December
31, 2018 includes the impact of approximately $0.2 million related
to certain non-recurring professional fees.(3) For a reconciliation
of net income (loss) to Adjusted EBITDA, see the Unaudited
Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA
and to Free Cash Flow and Adjusted EBITDA Margin on as Comparable
Basis provided at the end of this release.
2018 Fourth Quarter Financial Technology
Solutions Segment Highlights
On a comparable revenue basis, FinTech revenues increased
approximately 8.5% to $52.5 million in the fourth quarter of 2018
compared to $48.4 million in the prior year period.
- Revenues from cash access services, which include ATM, cash
advance and check services, increased 8.5%, or $3.1 million, to
$39.5 million in the fourth quarter of 2018 as compared to $36.4
million in the fourth quarter of 2017. The core cash access revenue
growth was the result of increased same store transactions and
dollars processed, as well as the benefits from new customer wins
from competitive bid processes and new casino openings.
- Equipment sales revenues increased 7.0%, or $0.3 million, to
$4.6 million in the fourth quarter of 2018 as compared to $4.3
million in the fourth quarter of 2017. This increase is the result
of higher sales of fully integrated kiosks in the fourth quarter of
2018 as compared to the prior-year period.
- Revenues from information services and other, which includes
kiosk maintenance, compliance products, Central Credit and other
revenue, increased $0.7 million to $8.4 million, in the fourth
quarter of 2018 as compared to $7.7 million in the fourth quarter
of 2017.
2019 Outlook
Everi today provided its initial forecast for certain 2019
financial and operational metrics. The Company expects to
generate growth in revenue, Adjusted EBITDA and Free Cash Flow in
2019. Adjusted EBITDA is expected to rise to between $252 million
to $255 million, with broad-based growth across the Company’s
operating segments including expectations for:
- An increase in Gaming unit sales from the 4,513 units sold in
2018;
- Growth in gaming operations driven by growth in both the DWPU
and an increase in the number of units in the year-end installed
base;
- Increasing Interactive revenue;
- Higher cash access service revenue in the FinTech segment;
- An increase in sales of fully integrated kiosks and other
FinTech equipment; and,
- An increase in information services and other revenue primarily
driven by expected growth in revenue related to the servicing of
FinTech equipment and higher compliance revenue, as well as initial
contributions related to the acquisition noted above.
In addition, excluding the capital expenditures
for the recently acquired business, the Company expects capital
expenditures and placement fees for 2019 will be less than the
amount spent in 2018.
For a reconciliation of projected net income to
projected Adjusted EBITDA, see the Reconciliation of Projected Net
Income to Projected EBITDA and Projected Adjusted EBITDA provided
at the end of this release.
New Revenue Recognition
Standard
In May 2014, the Financial Accounting
Standards Board issued a new standard related to revenue
recognition, commonly referred to as ASC 606. The Company
adopted the new standard effective January 1, 2018.
Revenues for the three and twelve month periods
ended December 31, 2017 have been presented on a comparable basis
to retrospectively reflect a net versus gross reporting of revenues
under ASC 606, which primarily impacts the Company’s Financial
Technology Solutions business. This has no impact on the Company’s
operating income, net income (loss), net earnings (loss) per
diluted share or Adjusted EBITDA. For a reconciliation of the as
adjusted to as reported amounts, see the Net Versus Gross Impacts
on Revenues and Cost of Revenues disclosure at the end of this
release.
Investor Conference Call and
Webcast
The Company will host an investor conference
call to discuss its 2018 fourth quarter and full year results at
5:00 p.m. ET today. The conference call may be accessed
live over the phone by dialing (800) 289-0438 or for international
callers by dialing (323) 794-2523. A replay will be available
beginning at 8:00 p.m. ET today and may be accessed by dialing
(844) 512-2921 or (412) 317-6671 for international callers; the PIN
number is 7779057. The replay will be available until March
19, 2019. The call will be webcast live from the Company’s
website at www.everi.com (select “Investors” followed by
“Events & Presentations”).
Non-GAAP Financial
Information
In order to enhance investor understanding of
the underlying trends in our business, our cash balance and cash
available for our operating needs, and to provide for better
comparability between periods in different years, we are providing
in this press release Adjusted EBITDA, Free Cash Flow, Adjusted
EBITDA Margin, net cash position and net cash available, which are
not measures of our financial performance or position under United
States Generally Accepted Accounting Principles (“GAAP”).
Accordingly, Adjusted EBITDA, Free Cash Flow and Adjusted EBITDA
Margin should not be considered in isolation or as a substitute for
measures prepared in accordance with GAAP. These measures
should be read in conjunction with, our net earnings (loss),
operating income (loss), basic or diluted earnings (loss) per share
and cash flow data prepared in accordance with GAAP. With respect
to net cash position and net cash available, these measures should
be read in conjunction with cash and cash equivalents prepared in
accordance with GAAP.
We define Adjusted EBITDA as earnings (loss)
before interest, taxes, depreciation and amortization, non-cash
stock compensation expense, accretion of contract rights, the
adjustment to certain purchase accounting liabilities, the
write-off of certain inventory and fixed assets and non-recurring
professional fees. We present Adjusted EBITDA as we use this
measure to manage our business and consider this measure to be
supplemental to our operating performance. We also make certain
compensation decisions based, in part, on our operating
performance, as measured by Adjusted EBITDA; and our current credit
facility and existing senior unsecured notes require us to comply
with a consolidated secured leverage ratio that includes
performance metrics substantially similar to Adjusted EBITDA. We
define Adjusted EBITDA Margin as Adjusted EBITDA divided by
revenues.
We define Free Cash Flow as Adjusted EBITDA less
cash paid for interest, cash paid for capital expenditures, cash
paid for placement fees, and cash paid for taxes. We present
Free Cash Flow as a measure of performance and the Company uses
this measure as an indication of the strength of the Company and
its ability to generate cash. We present this measure as we
believe it provides investors with a better understanding of our
opportunity to pay down debt. It should not be inferred that the
entire free cash flow amount is available for discretionary
expenditures.
A reconciliation of the Company’s net income
(loss) per GAAP to Adjusted EBITDA, Free Cash Flow and Adjusted
EBITDA Margin on as Comparable Basis is included in the Unaudited
Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA
and to Free Cash Flow and Adjusted EBITDA Margin provided at the
end of this release. Additionally, a reconciliation of each
segment’s operating income (loss) to Adjusted EBITDA is also
included. On a segment level, operating income (loss) per GAAP,
rather than net earnings (loss) per GAAP, is reconciled to Adjusted
EBITDA as the Company does not report net earnings (loss) by
segment. In addition, Adjusted EBITDA Margin is provided on a
segment level. Management believes that this presentation is
meaningful to investors in evaluating the performance of the
Company’s segments.
We define (i) net cash position as cash and cash
equivalents plus settlement receivables less settlement liabilities
and (ii) net cash available as net cash position plus undrawn
amounts available under our revolving credit facility. We present
net cash position because our cash position, as measured by
cash and cash equivalents, depends upon changes in settlement
receivables and the timing of payments related to settlement
liabilities. As such, our cash and cash equivalents can change
substantially based upon the timing of our receipt of payments for
settlement receivables and payments we make to customers for our
settlement liabilities. We present net cash available as
management monitors this amount in connection with its forecasting
of cash flows and future cash requirements.
A reconciliation of the Company’s cash and cash
equivalents per GAAP to net cash position and net cash available is
included in the Unaudited Reconciliation of Cash and Cash
Equivalents to Net Cash Position and Net Cash Available provided at
the end of this release.
Cautionary Note Regarding
Forward-Looking Statements
This press release contains “forward-looking
statements” as defined in the U.S. Private Securities Litigation
Reform Act of 1995. In this context, forward-looking statements
often address our expected future business and financial
performance, and often contain words such as “goal,” “target,”
“future,” “estimate,” “expect,” “anticipate,” “intend,” “plan,”
“believe,” “seek,” “project,” “may,” “should,” or “will” and
similar expressions to identify forward-looking statements.
Examples of forward-looking statements include, among others,
statements the Company makes regarding (a) its ability to continue
expanding the segments of the gaming floor the Company’s games
address; execute on key initiatives and deliver ongoing
improvements; accelerate free cash flow generation; integrate the
acquisition and achieve future growth; drive growth for the
Company’s installed base and its DWPU, and create incremental value
for its shareholders; and (b) its guidance related to 2019
financial and operational metrics, including Adjusted EBITDA, Free
Cash Flow, unit sales of Gaming units and FinTech equipment, the
installed base size and placements, DWPU, revenues, the
contribution from the acquisition and anticipated levels of capital
expenditures and placement fees, depreciation expense, amortization
expense, interest expense, and income tax benefit, including cash
tax payments, non-cash stock compensation expense, accretion of
contract rights and net income.
The forward-looking statements in this press
release are subject to additional risks and uncertainties,
including those set forth under the heading “Risk Factors” and
“Management’s Discussion and Analysis of Financial Condition and
Results of Operations” in our periodic reports filed with the
Securities and Exchange Commission (the “SEC”), including, without
limitation, our Annual Reports on Form 10-K and quarterly
reports on Form 10-Q, and are based on information available to us
on the date hereof.
These cautionary statements qualify our
forward-looking statements and you are cautioned not to place undue
reliance on these forward-looking statements. Any forward-looking
statement contained herein speaks only as of the date on which it
is made, and we do not intend, and assume no obligation, to update
or revise any forward-looking statements, whether as a result of
new information, future events or otherwise.
This press release should be read in conjunction
with the Form 10-K to which it relates, and with the information
included in our other press releases, reports and other filings
with the SEC. Understanding the information contained in these
filings is important in order to fully understand our reported
financial results and our business outlook for future periods.
About Everi
Everi is a leading supplier of technology
solutions for the casino gaming industry. The Company Powers the
Casino Floor® by providing casino operators with a diverse
portfolio of products including innovative gaming machines
and casino operational and management systems that include
comprehensive, end-to-end financial technology solutions, critical
intelligence offerings, and gaming operations efficiency
technology. Everi also provides proven, tier one land-based game
content to online social and real-money markets via its Remote Game
Server and operates social play for fun casinos. Everi’s mission is
to be a transformative force for casino operations by facilitating
memorable player experiences, delivering reliable protection and
security, and striving for customer satisfaction and operational
excellence. For more information, visit www.everi.com.
ContactsInvestor
RelationsRichard Land, James LeahyJCIR212-835-8500 or
evri@jcir.com
EVERI HOLDINGS INC. AND
SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF INCOME (LOSS) ANDCOMPREHENSIVE
INCOME (LOSS)(In thousands, except earnings (loss)
per share amounts)
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Revenues |
|
|
|
|
|
|
|
|
Games revenues |
|
|
|
|
|
|
|
|
Gaming operations |
|
$ |
41,528 |
|
|
$ |
37,435 |
|
|
$ |
168,146 |
|
|
$ |
148,654 |
|
Gaming
equipment and systems |
|
23,539 |
|
|
17,544 |
|
|
87,038 |
|
|
70,118 |
|
Gaming
other |
|
1,907 |
|
|
1,966 |
|
|
3,794 |
|
|
4,005 |
|
Games total revenues |
|
66,974 |
|
|
56,945 |
|
|
258,978 |
|
|
222,777 |
|
|
|
|
|
|
|
|
|
|
FinTech revenues |
|
|
|
|
|
|
|
|
Cash
access services |
|
39,442 |
|
|
178,942 |
|
|
156,806 |
|
|
707,222 |
|
Equipment |
|
4,639 |
|
|
4,251 |
|
|
20,977 |
|
|
13,258 |
|
Information services and other |
|
8,447 |
|
|
7,721 |
|
|
32,754 |
|
|
31,691 |
|
FinTech total revenues |
|
52,528 |
|
|
190,914 |
|
|
210,537 |
|
|
752,171 |
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
119,502 |
|
|
247,859 |
|
|
469,515 |
|
|
974,948 |
|
|
|
|
|
|
|
|
|
|
Costs and
expenses |
|
|
|
|
|
|
|
|
Games cost of revenues |
|
|
|
|
|
|
|
|
Gaming
operations |
|
4,603 |
|
|
4,525 |
|
|
17,603 |
|
|
15,741 |
|
Gaming
equipment and systems |
|
12,428 |
|
|
9,163 |
|
|
47,121 |
|
|
35,707 |
|
Gaming
other |
|
1,667 |
|
|
1,504 |
|
|
3,285 |
|
|
3,247 |
|
Games total cost of revenues |
|
18,698 |
|
|
15,192 |
|
|
68,009 |
|
|
54,695 |
|
|
|
|
|
|
|
|
|
|
FinTech cost of revenues |
|
|
|
|
|
|
|
|
Cash
access services |
|
2,807 |
|
|
144,696 |
|
|
9,717 |
|
|
572,880 |
|
Equipment |
|
2,815 |
|
|
2,199 |
|
|
12,601 |
|
|
7,717 |
|
Information services and other |
|
964 |
|
|
851 |
|
|
4,110 |
|
|
3,253 |
|
FinTech total cost of revenues |
|
6,586 |
|
|
147,746 |
|
|
26,428 |
|
|
583,850 |
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
37,122 |
|
|
31,700 |
|
|
142,298 |
|
|
118,935 |
|
Research and
development |
|
6,184 |
|
|
5,156 |
|
|
20,497 |
|
|
18,862 |
|
Depreciation |
|
17,395 |
|
|
12,517 |
|
|
61,225 |
|
|
47,282 |
|
Amortization |
|
16,302 |
|
|
17,419 |
|
|
65,245 |
|
|
69,505 |
|
Total costs and
expenses |
|
102,287 |
|
|
229,730 |
|
|
383,702 |
|
|
893,129 |
|
|
|
|
|
|
|
|
|
|
Operating
income |
|
$ |
17,215 |
|
|
$ |
18,129 |
|
|
$ |
85,813 |
|
|
$ |
81,819 |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Other
expenses |
|
|
|
|
|
|
|
|
Interest
expense, net of interest income |
|
20,412 |
|
|
29,830 |
|
|
83,001 |
|
|
102,136 |
|
Loss on
extinguishment of debt |
|
— |
|
|
37,135 |
|
|
166 |
|
|
51,750 |
|
Total other expenses |
|
20,412 |
|
|
66,965 |
|
|
83,167 |
|
|
153,886 |
|
|
|
|
|
|
|
|
|
|
Income (loss) before income tax |
|
(3,197 |
) |
|
(48,836 |
) |
|
2,646 |
|
|
(72,067 |
) |
|
|
|
|
|
|
|
|
|
Income
tax benefit |
|
(7,400 |
) |
|
(23,787 |
) |
|
(9,710 |
) |
|
(20,164 |
) |
Net income (loss) |
|
4,203 |
|
|
(25,049 |
) |
|
12,356 |
|
|
(51,903 |
) |
Foreign
currency translation |
|
(1,001 |
) |
|
146 |
|
|
(1,745 |
) |
|
1,856 |
|
Comprehensive
income (loss) |
|
$ |
3,202 |
|
|
$ |
(24,903 |
) |
|
$ |
10,611 |
|
|
$ |
(50,047 |
) |
Earnings (loss)
per share |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.06 |
|
|
$ |
(0.37 |
) |
|
$ |
0.18 |
|
|
$ |
(0.78 |
) |
Diluted |
|
$ |
0.06 |
|
|
$ |
(0.37 |
) |
|
$ |
0.17 |
|
|
$ |
(0.78 |
) |
Weighted
average common shares outstanding |
|
|
|
|
|
|
|
|
Basic |
|
70,196 |
|
|
67,755 |
|
|
69,464 |
|
|
66,816 |
|
Diluted |
|
74,024 |
|
|
67,755 |
|
|
73,796 |
|
|
66,816 |
|
The results for the three and twelve months
ended December 31, 2018 reflect the adoption of ASC 606.
EVERI HOLDINGS INC. AND
SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS(In
thousands)
|
Year Ended December 31, |
|
2018 |
|
2017 |
Cash flows from
operating activities |
|
|
|
Net income (loss) |
$ |
12,356 |
|
|
$ |
(51,903 |
) |
Adjustments to reconcile net income (loss) to cash provided by
operating activities: |
|
|
|
Depreciation |
61,225 |
|
|
47,282 |
|
Amortization |
65,245 |
|
|
69,505 |
|
Amortization of financing costs and discounts |
4,877 |
|
|
8,706 |
|
Loss on
sale or disposal of assets |
869 |
|
|
2,513 |
|
Accretion
of contract rights |
8,421 |
|
|
7,819 |
|
Provision
for bad debts |
11,459 |
|
|
9,737 |
|
Deferred
income taxes |
(10,343 |
) |
|
(20,015 |
) |
Write-down of inventory and fixed assets |
2,575 |
|
|
— |
|
Reserve
for obsolescence |
1,919 |
|
|
397 |
|
Loss on
extinguishment of debt |
166 |
|
|
51,750 |
|
Stock-based compensation |
7,251 |
|
|
6,411 |
|
Changes
in operating assets and liabilities: |
|
|
|
Settlement receivables |
143,705 |
|
|
(98,390 |
) |
Trade and
other receivables |
(29,320 |
) |
|
(884 |
) |
Inventory |
(3,848 |
) |
|
(5,753 |
) |
Prepaid
and other assets |
1,672 |
|
|
(1,105 |
) |
Settlement liabilities |
17,159 |
|
|
78,465 |
|
Accounts
payable and accrued expenses |
(1,102 |
) |
|
(8,276 |
) |
Net cash provided by operating activities |
294,286 |
|
|
96,259 |
|
Cash flows from
investing activities |
|
|
|
Capital
expenditures |
(103,031 |
) |
|
(96,490 |
) |
Proceeds
from sale of fixed assets |
237 |
|
|
10 |
|
Placement
fee agreements |
(20,556 |
) |
|
(13,300 |
) |
Net cash used in investing activities |
(123,350 |
) |
|
(109,780 |
) |
|
Year ended December 31, |
|
2018 |
|
2017 |
Cash flows from
financing activities |
|
|
|
Proceeds
from credit facility |
— |
|
|
820,000 |
|
Proceeds
from unsecured notes |
— |
|
|
375,000 |
|
Repayments of prior credit facility |
— |
|
|
(465,600 |
) |
Repayments of secured notes |
— |
|
|
(335,000 |
) |
Repayments of unsecured notes |
— |
|
|
(350,000 |
) |
Repayments of credit facility |
(8,200 |
) |
|
(4,100 |
) |
Debt
issuance costs and discounts |
(1,276 |
) |
|
(28,702 |
) |
Proceeds
from exercise of stock options |
9,610 |
|
|
10,906 |
|
Purchase
of treasury stock |
(123 |
) |
|
(110 |
) |
Net cash provided by financing activities |
11 |
|
|
22,394 |
|
Effect of
exchange rates on cash |
(1,370 |
) |
|
1,292 |
|
Cash, cash
equivalents and restricted cash |
|
|
|
Net
increase for the period |
169,577 |
|
|
10,165 |
|
Balance,
beginning of the period |
129,604 |
|
|
119,439 |
|
Balance, end of
the period |
$ |
299,181 |
|
|
$ |
129,604 |
|
|
|
|
|
|
|
|
|
EVERI HOLDINGS INC. AND
SUBSIDIARIESUNAUDITED NET VERSUS GROSS IMPACTS ON
REVENUES AND COST OF REVENUES(In
thousands)
|
Three Months Ended December 31, |
|
2018 |
|
2017 |
|
2017 |
|
2017 |
|
As Reported |
|
As Adjusted |
|
Adjustments |
|
As Reported |
Revenues |
|
|
|
|
|
|
|
Games revenues |
|
|
|
|
|
|
|
Gaming operations |
$ |
41,528 |
|
|
$ |
37,148 |
|
|
$ |
287 |
|
|
$ |
37,435 |
|
Gaming
equipment and systems |
23,539 |
|
|
17,544 |
|
|
— |
|
|
17,544 |
|
Gaming
other |
1,907 |
|
|
1,966 |
|
|
— |
|
|
1,966 |
|
Games total revenues |
66,974 |
|
|
56,658 |
|
|
287 |
|
|
56,945 |
|
FinTech revenues |
|
|
|
|
|
|
|
Cash
access services |
39,442 |
|
|
36,391 |
|
|
142,551 |
|
|
178,942 |
|
Equipment |
4,639 |
|
|
4,251 |
|
|
— |
|
|
4,251 |
|
Information services and other |
8,447 |
|
|
7,721 |
|
|
— |
|
|
7,721 |
|
FinTech total revenues |
52,528 |
|
|
48,363 |
|
|
142,551 |
|
|
190,914 |
|
Total revenues |
$ |
119,502 |
|
|
$ |
105,021 |
|
|
$ |
142,838 |
|
|
$ |
247,859 |
|
Costs and
expenses |
|
|
|
|
|
|
|
Games cost of revenues |
|
|
|
|
|
|
|
Gaming
operations |
$ |
4,603 |
|
|
$ |
4,238 |
|
|
$ |
287 |
|
|
$ |
4,525 |
|
Gaming
equipment and systems |
12,428 |
|
|
9,163 |
|
|
— |
|
|
9,163 |
|
Gaming
other |
1,667 |
|
|
1,504 |
|
|
— |
|
|
1,504 |
|
Games total cost of revenues |
18,698 |
|
|
14,905 |
|
|
287 |
|
|
15,192 |
|
FinTech cost of revenues |
|
|
|
|
|
|
|
Cash
access services |
2,807 |
|
|
2,145 |
|
|
142,551 |
|
|
144,696 |
|
Equipment |
2,815 |
|
|
2,199 |
|
|
— |
|
|
2,199 |
|
Information services and other |
964 |
|
|
851 |
|
|
— |
|
|
851 |
|
FinTech total cost of revenues |
6,586 |
|
|
5,195 |
|
|
142,551 |
|
|
147,746 |
|
Total cost of revenues |
$ |
25,284 |
|
|
$ |
20,100 |
|
|
$ |
142,838 |
|
|
$ |
162,938 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues for the three month period ended
December 31, 2017 are presented on a comparable basis to
retrospectively reflect a net versus gross reporting of revenues
under ASC 606, which primarily impacts the Company’s FinTech
business.
EVERI HOLDINGS INC. AND
SUBSIDIARIESUNAUDITED NET VERSUS GROSS IMPACTS ON
REVENUES AND COST OF REVENUES(In
thousands)
|
Year Ended December 31, |
|
2018 |
|
2017 |
|
2017 |
|
2017 |
|
As Reported |
|
As Adjusted |
|
Adjustments |
|
As Reported |
Revenues |
|
|
|
|
|
|
|
Games revenues |
|
|
|
|
|
|
|
Gaming operations |
$ |
168,146 |
|
|
$ |
148,089 |
|
|
$ |
565 |
|
|
$ |
148,654 |
|
Gaming
equipment and systems |
87,038 |
|
|
70,118 |
|
|
— |
|
|
70,118 |
|
Gaming
other |
3,794 |
|
|
4,005 |
|
|
— |
|
|
4,005 |
|
Games total revenues |
258,978 |
|
|
222,212 |
|
|
565 |
|
|
222,777 |
|
FinTech revenues |
|
|
|
|
|
|
|
Cash
access services |
156,806 |
|
|
143,585 |
|
|
563,637 |
|
|
707,222 |
|
Equipment |
20,977 |
|
|
13,258 |
|
|
— |
|
|
13,258 |
|
Information services and other |
32,754 |
|
|
31,691 |
|
|
— |
|
|
31,691 |
|
FinTech total revenues |
210,537 |
|
|
188,534 |
|
|
563,637 |
|
|
752,171 |
|
Total revenues |
$ |
469,515 |
|
|
$ |
410,746 |
|
|
$ |
564,202 |
|
|
$ |
974,948 |
|
Costs and
expenses |
|
|
|
|
|
|
|
Games cost of revenues |
|
|
|
|
|
|
|
Gaming
operations |
$ |
17,603 |
|
|
$ |
15,176 |
|
|
$ |
565 |
|
|
$ |
15,741 |
|
Gaming
equipment and systems |
47,121 |
|
|
35,707 |
|
|
— |
|
|
35,707 |
|
Gaming
other |
3,285 |
|
|
3,247 |
|
|
— |
|
|
3,247 |
|
Games total cost of revenues |
68,009 |
|
|
54,130 |
|
|
565 |
|
|
54,695 |
|
FinTech cost of revenues |
|
|
|
|
|
|
|
Cash
access services |
9,717 |
|
|
9,243 |
|
|
563,637 |
|
|
572,880 |
|
Equipment |
12,601 |
|
|
7,717 |
|
|
— |
|
|
7,717 |
|
Information services and other |
4,110 |
|
|
3,253 |
|
|
— |
|
|
3,253 |
|
FinTech total cost of revenues |
26,428 |
|
|
20,213 |
|
|
563,637 |
|
|
583,850 |
|
Total cost of revenues |
$ |
94,437 |
|
|
$ |
74,343 |
|
|
$ |
564,202 |
|
|
$ |
638,545 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues for the twelve month period ended
December 31, 2017 are presented on a comparable basis to
retrospectively reflect a net versus gross reporting of revenues
under ASC 606, which primarily impacts the Company’s FinTech
business.
EVERI HOLDINGS INC. AND
SUBSIDIARIESUNAUDITED RECONCILIATION OF CASH AND
CASH EQUIVALENTSTO NET CASH POSITION AND NET CASH
AVAILABLE(In thousands)
|
At December 31, |
|
At December 31, |
|
2018 |
|
2017 |
Cash
available |
|
|
|
Cash and
cash equivalents |
$ |
297,532 |
|
|
$ |
128,586 |
|
Settlement receivables |
82,359 |
|
|
227,403 |
|
Settlement liabilities |
(334,198 |
) |
|
(317,744 |
) |
Net cash position |
45,693 |
|
|
38,245 |
|
|
|
|
|
|
|
|
|
Undrawn
revolving credit facility |
35,000 |
|
|
35,000 |
|
|
|
|
|
Net cash available |
$ |
80,693 |
|
|
$ |
73,245 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EVERI HOLDINGS INC. AND
SUBSIDIARIESUNAUDITED RECONCILIATION OF NET INCOME
(LOSS) TO EBITDA AND ADJUSTED EBITDA AND TO FREE CASH FLOW AND
ADJUSTED EBITDA MARGIN ON AS COMPARABLE BASIS(In
thousands)
|
Three Months Ended December 31,
2018 |
|
Three Months Ended December 31,
2017 |
|
Games |
|
FinTech |
|
Total |
|
Games |
|
FinTech |
|
Total |
Net income (loss) |
|
|
|
|
$ |
4,203 |
|
|
|
|
|
|
$ |
(25,049 |
) |
Income tax benefit |
|
|
|
|
(7,400 |
) |
|
|
|
|
|
(23,787 |
) |
Loss on extinguishment
of debt |
|
|
|
|
— |
|
|
|
|
|
|
37,135 |
|
Interest expense, net
of interest income |
|
|
|
|
20,412 |
|
|
|
|
|
|
29,830 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (loss)
income |
$ |
(2,843 |
) |
|
$ |
20,058 |
|
|
$ |
17,215 |
|
|
$ |
(349 |
) |
|
$ |
18,478 |
|
|
$ |
18,129 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Plus: depreciation and
amortization |
29,878 |
|
|
3,819 |
|
|
33,697 |
|
|
25,328 |
|
|
4,608 |
|
|
29,936 |
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
$ |
27,035 |
|
|
$ |
23,877 |
|
|
$ |
50,912 |
|
|
$ |
24,979 |
|
|
$ |
23,086 |
|
|
$ |
48,065 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash stock
compensation expense |
242 |
|
|
891 |
|
|
1,133 |
|
|
287 |
|
|
1,000 |
|
|
1,287 |
|
Accretion of contract
rights |
2,122 |
|
|
— |
|
|
2,122 |
|
|
1,975 |
|
|
— |
|
|
1,975 |
|
Non-recurring
professional fees |
204 |
|
|
204 |
|
|
408 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA |
$ |
29,603 |
|
|
$ |
24,972 |
|
|
$ |
54,575 |
|
|
$ |
27,241 |
|
|
$ |
24,086 |
|
|
$ |
51,327 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid for
interest |
|
|
|
|
(26,679 |
) |
|
|
|
|
|
(29,114 |
) |
Cash paid for capital
expenditures |
|
|
|
|
(24,486 |
) |
|
|
|
|
|
(26,433 |
) |
Cash paid for placement
fees |
|
|
|
|
(5,256 |
) |
|
|
|
|
|
(168 |
) |
Cash paid for income
taxes |
|
|
|
|
(56 |
) |
|
|
|
|
|
380 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash
Flow |
|
|
|
|
$ |
(1,902 |
) |
|
|
|
|
|
$ |
(4,008 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues (1) |
$ |
66,974 |
|
|
$ |
52,528 |
|
|
$ |
119,502 |
|
|
$ |
56,658 |
|
|
$ |
48,363 |
|
|
$ |
105,021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Margin |
44 |
% |
|
48 |
% |
|
46 |
% |
|
48 |
% |
|
50 |
% |
|
49 |
% |
(1) Revenues for the three month period ended
December 31, 2017 are presented on a comparable basis to
retrospectively reflect a net versus gross reporting of revenues
under ASC 606, which primarily impacts the Company’s FinTech
business.
EVERI HOLDINGS INC. AND
SUBSIDIARIESUNAUDITED RECONCILIATION OF NET INCOME
(LOSS) TO EBITDA AND ADJUSTED EBITDA AND TO FREE CASH FLOW AND
ADJUSTED EBITDA MARGIN ON AS COMPARABLE BASIS(In
thousands)
|
Year Ended December 31, 2018 |
|
Year Ended December 31, 2017 |
|
Games |
|
FinTech |
|
Total |
|
Games |
|
FinTech |
|
Total |
Net income (loss) |
|
|
|
|
$ |
12,356 |
|
|
|
|
|
|
$ |
(51,903 |
) |
Income tax benefit |
|
|
|
|
(9,710 |
) |
|
|
|
|
|
(20,164 |
) |
Loss on extinguishment
of debt |
|
|
|
|
166 |
|
|
|
|
|
|
51,750 |
|
Interest expense, net
of interest income |
|
|
|
|
83,001 |
|
|
|
|
|
|
102,136 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income |
$ |
3,071 |
|
|
$ |
82,742 |
|
|
$ |
85,813 |
|
|
$ |
8,952 |
|
|
$ |
72,867 |
|
|
$ |
81,819 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Plus: depreciation and
amortization |
110,157 |
|
|
16,313 |
|
|
126,470 |
|
|
97,487 |
|
|
19,300 |
|
|
116,787 |
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
$ |
113,228 |
|
|
$ |
99,055 |
|
|
$ |
212,283 |
|
|
$ |
106,439 |
|
|
$ |
92,167 |
|
|
$ |
198,606 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash stock
compensation expense |
2,317 |
|
|
4,934 |
|
|
7,251 |
|
|
1,728 |
|
|
4,683 |
|
|
6,411 |
|
Accretion of contract
rights |
8,421 |
|
|
— |
|
|
8,421 |
|
|
7,819 |
|
|
— |
|
|
7,819 |
|
Write-off of inventory
and fixed assets |
2,575 |
|
|
— |
|
|
2,575 |
|
|
— |
|
|
— |
|
|
— |
|
Adjustment of certain
purchase accounting liabilities |
— |
|
|
(550 |
) |
|
(550 |
) |
|
— |
|
|
— |
|
|
— |
|
Non-recurring
professional fees |
204 |
|
|
204 |
|
|
408 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA |
$ |
126,745 |
|
|
$ |
103,643 |
|
|
$ |
230,388 |
|
|
$ |
115,986 |
|
|
$ |
96,850 |
|
|
$ |
212,836 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid for
interest |
|
|
|
|
(81,609 |
) |
|
|
|
|
|
(89,008 |
) |
Cash paid for capital
expenditures |
|
|
|
|
(103,031 |
) |
|
|
|
|
|
(96,490 |
) |
Cash paid for placement
fees |
|
|
|
|
(20,556 |
) |
|
|
|
|
|
(13,300 |
) |
Cash paid for income
taxes |
|
|
|
|
(402 |
) |
|
|
|
|
|
(180 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash
Flow |
|
|
|
|
$ |
24,790 |
|
|
|
|
|
|
$ |
13,858 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues (1) |
$ |
258,978 |
|
|
$ |
210,537 |
|
|
$ |
469,515 |
|
|
$ |
222,212 |
|
|
$ |
188,534 |
|
|
$ |
410,746 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Margin |
49 |
% |
|
49 |
% |
|
49 |
% |
|
52 |
% |
|
51 |
% |
|
52 |
% |
(1) Revenues for the twelve month period ended
December 31, 2017 are presented on a comparable basis to
retrospectively reflect a net versus gross reporting of revenues
under ASC 606, which primarily impacts the Company’s FinTech
business.
EVERI HOLDINGS INC. AND
SUBSIDIARIESRECONCILIATION OF PROJECTED NET INCOME
TO PROJECTED EBITDAAND PROJECTED ADJUSTED
EBITDAFOR THE YEAR ENDING DECEMBER 31,
2019(In thousands)
|
2019 Adjusted EBITDA Guidance Range
(1) |
|
Low |
|
High |
Projected net
income |
$ |
17,000 |
|
|
$ |
23,000 |
|
Projected income tax
benefit |
(3,000 |
) |
|
(5,000 |
) |
Projected interest
expense, net of interest income |
88,000 |
|
|
86,000 |
|
|
|
|
|
Projected operating income |
$ |
102,000 |
|
|
$ |
104,000 |
|
|
|
|
|
Plus: projected
depreciation and amortization |
132,000 |
|
|
136,000 |
|
|
|
|
|
Projected EBITDA |
$ |
234,000 |
|
|
$ |
240,000 |
|
|
|
|
|
Projected non-cash
stock compensation expense |
8,000 |
|
|
7,000 |
|
Projected accretion of
contract rights |
10,000 |
|
|
8,000 |
|
|
|
|
|
Projected Adjusted EBITDA |
$ |
252,000 |
|
|
$ |
255,000 |
|
|
|
|
|
|
|
|
|
(1) All figures presented are projected
estimates for the year ending December 31, 2019.
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