Everi Holdings Inc. (NYSE:EVRI) (“Everi” or the “Company”) today
reported record financial results for the first quarter ended March
31, 2019.
“Our record first quarter results reflect the
eleventh consecutive quarter we have achieved year over year
revenue and Adjusted EBITDA growth as we again generated solid
organic growth while also benefiting from initial contributions of
our recent acquisition of player loyalty technology,” said Everi
President and CEO, Michael Rumbolz. “First quarter revenues rose
11.5% to a record $123.8 million, net income improved 28% to $5.9
million, Adjusted EBITDA rose 5.7% to a record $61.3 million and
Free Cash Flow improved 80% to $21.2 million. These results reflect
ongoing improvement in both of our segments including a quarterly
record for FinTech revenue and FinTech Adjusted EBITDA, and a
quarterly record for Games revenue, including record gaming
operations revenue. Overall 2019 is off to the solid start we
anticipated and as a result, we remain on track to achieve our full
year expectation for Adjusted EBITDA of between $252 million to
$255 million. We also continue to expect that Free Cash Flow will
approximately double compared to the nearly $25 million in Free
Cash Flow generated in 2018.”
Consolidated Full Quarter Comparative
Results (unaudited)
|
Three Months
Ended March 31, |
|
2019 |
|
2018 |
|
|
|
(in
millions, except per share amounts) |
Revenues |
$ |
123.8 |
|
|
$ |
111.0 |
|
|
|
|
|
Operating income (1) |
$ |
25.9 |
|
|
$ |
24.5 |
|
|
|
|
|
Net income (1) |
$ |
5.9 |
|
|
$ |
4.6 |
|
|
|
|
|
Net earnings per diluted share
(1) |
$ |
0.08 |
|
|
$ |
0.06 |
|
|
|
|
|
Diluted shares
outstanding |
75.3 |
|
|
73.3 |
|
|
|
|
|
Adjusted EBITDA (2) |
$ |
61.3 |
|
|
$ |
58.0 |
|
(1) Operating income, net income and net earnings per diluted
share for the three months ended March 31, 2019 included
approximately $0.5 million of operating expense related to the
acquisition of certain player loyalty assets and other
non-recurring professional service fees.(2) For a reconciliation of
net income to Adjusted EBITDA, see the Unaudited Reconciliation of
Net Income to EBITDA and Adjusted EBITDA and to Free Cash Flow
provided at the end of this release.
Mr. Rumbolz added, “Our investments in new
cabinets, game content and features continue to strengthen the
appeal of our Games’ segment portfolio for customers and their
players. We sold a record number of new units in the first quarter,
with more than 80% of the 1,259 units sold on either our newer
Empire MPX cabinet or our recently updated, popular Player Classic
cabinet for the mechanical reel segment. Our game performance also
drove a nearly 12%, or $3.36, year over year increase in the daily
win per unit for our installed units - our highest ever
improvement. We are delivering higher performing games across
our entire installed base, with the continued growth of premium
units, and specifically our wide-area progressive (“WAP”) units
representing a significant driver of this growth. The number
of WAP unit placements in our premium unit installed base has grown
approximately 80% year-over year and approximately 20% since year
end. Interactive revenue increased five-fold year over year to
approximately $1.0 million as we continue to scale the business and
benefit from the availability of over 20 game themes on our Remote
Game Server that was recently approved for real-money wagering in
its first domestic market.
“FinTech is delivering similar growth across all
of the key business drivers, including growth in core cash access
services revenue, reflecting consistent market share gains and
increases in same store transactions and dollars processed. We also
sold our highest number of kiosks in 14 quarters as we begin to
realize the benefits of the expected uptick in our unit replacement
cycle, and we continue to generate growth in information services
and other revenues, including the initial benefits from the
recently acquired player loyalty technology.
“Our first quarter results and our expectations
for full year growth in revenue and Adjusted EBITDA as well as for
continued acceleration in our Free Cash Flow provide ample proof
that Everi possesses an attractive growth profile. We remain
focused on leveraging this growth profile to deliver increased
shareholder value.”
First Quarter 2019 Results
Overview
Revenues for the first quarter of 2019 increased
11.5% to a record $123.8 million, from $111.0 million in the first
quarter of 2018. Games and FinTech segment revenues were
$67.5 million and $56.3 million, respectively, for the first
quarter of 2019. Operating income of $25.9 million for the first
quarter of 2019 compares to $24.5 million in the first quarter of
2018.
The Company recorded income before income tax of
$5.5 million in the first quarter of 2019 compared to $4.2 million
in the first quarter of 2018. Net income increased
approximately 28.3% to $5.9 million, or $0.08 per diluted share,
for the first quarter of 2019 as compared to net income of $4.6
million, or $0.06 per diluted share, in the prior-year period.
Adjusted EBITDA for the first quarter of 2019
increased approximately 5.7%, or $3.3 million, to a record $61.3
million from $58.0 million in the first quarter of 2018.
Games and FinTech segment Adjusted EBITDA for the three months
ended March 31, 2019 were $33.1 million and $28.2 million,
respectively. Games and FinTech segment Adjusted EBITDA for
the three months ended March 31, 2018 were $31.7 million and $26.3
million, respectively.
Games Segment Full Quarter Comparative
Results (unaudited)
|
Three Months
Ended March 31, |
|
2019 |
|
2018 |
|
|
|
(in millions, except unit amounts and prices) |
Revenues |
$ |
67.5 |
|
$ |
60.2 |
|
|
|
|
Operating income (1) |
$ |
3.1 |
|
$ |
4.4 |
|
|
|
|
Adjusted EBITDA (2) |
$ |
33.1 |
|
$ |
31.7 |
|
|
|
|
Unit sales: |
|
|
|
Units sold |
1,259 |
|
1,063 |
Average sales price ("ASP") |
$ |
17,361 |
|
$ |
17,745 |
|
|
|
|
Gaming operations installed
base: |
|
|
|
Average units installed during period: |
|
|
|
Average units installed |
13,634 |
|
13,805 |
Approximate daily win per unit (3) |
$ |
31.76 |
|
$ |
28.40 |
|
|
|
|
Units installed at end of period: |
|
|
|
Class II |
9,218 |
|
9,497 |
Class III |
4,426 |
|
4,627 |
Total installed base |
13,644 |
|
14,124 |
|
|
|
|
Installed base - Oklahoma |
6,400 |
|
6,838 |
Installed base - non-Oklahoma |
7,244 |
|
7,286 |
Total installed base |
13,644 |
|
14,124 |
|
|
|
|
Premium units |
3,004 |
|
2,797 |
(1) Operating income for the three months ended
March 31, 2019 includes the impact of approximately $0.2 million
related to certain non-recurring professional fees.(2) For a
reconciliation of net income to Adjusted EBITDA, see the Unaudited
Reconciliation of Net Income to EBITDA and Adjusted EBITDA and to
Free Cash Flow provided at the end of this release.(3) Approximate
daily win per unit excludes the impact of the direct costs
associated with the Company’s wide-area progressive jackpot
expense.
2019 First Quarter Games Segment
Highlights
Games segment revenues were $67.5 million in the
first quarter of 2019 compared to $60.2 million in the first
quarter of 2018.
- Revenues from gaming operations increased approximately 10.5%,
or $4.2 million, to a record $44.3 million in the first quarter of
2019 compared to $40.1 million in the prior-year period. The
year-over-year improvement reflects an approximate 12% increase in
estimated daily win per unit (“DWPU”) to $31.76, which was
partially offset by the anticipated year-over-year decline in the
average installed base.º As anticipated, the installed base
at March 31, 2019 decreased by 480 units year over year and by 355
units on a quarterly sequential basis to 13,644 units, primarily
reflecting the removal of approximately 330 lower performing units
from a customer in Oklahoma and the sale of approximately 200 units
from the installed base to a customer in Indiana.º The
premium portion of the installed base increased 7.4% year over
year, or 207 units, to 3,004 units. Wide-area progressive
units, which are a component of premium units, rose 320 units year
over year and by 119 units on a quarterly sequential basis to 723
units at March 31, 2019.º DWPU in the first quarter of
2019 increased 11.8%, or $3.36, to $31.76, compared to $28.40 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
and an increase in premium unit placements, including wide-area
progressive games. This was the sixth consecutive quarter of
year-over-year growth in DWPU.º Interactive revenue was
$1.0 million in the first quarter of 2019 compared to $0.2 million
in the prior-year period.º Revenues from the New York
Lottery business were $4.7 million in the first quarter of 2019
compared to $4.5 million in the prior-year period.
- Revenues generated from the sale of gaming units and other
related parts and equipment totaled $23.1 million in the first
quarter of 2019 compared to revenues of $20.2 million in the
prior-year period. Unit sales increased 18% year over year to 1,259
units in the first quarter of 2019 compared to 1,063 units in the
prior-year period.
- Other gaming revenues, which include revenues from TournEvent
of Champions® qualifying events, were less than $0.1 million in
both periods.
Financial Technology Solutions Segment
Full Quarter Comparative Results (unaudited)
|
Three Months
Ended March 31, |
|
2019 |
|
2018 |
|
|
|
(in millions, unless otherwise noted) |
Revenues |
$ |
56.3 |
|
$ |
50.8 |
|
|
|
|
Operating income (1) |
$ |
22.8 |
|
$ |
20.1 |
|
|
|
|
Adjusted EBITDA (2) |
$ |
28.2 |
|
$ |
26.3 |
|
|
|
|
Aggregate dollar amount processed
(in billions): |
|
|
|
Cash advance |
$ |
1.9 |
|
$ |
1.7 |
ATM |
$ |
5.3 |
|
$ |
4.8 |
Check warranty |
$ |
0.3 |
|
$ |
0.3 |
|
|
|
|
Number of transactions completed
(in millions): |
|
|
|
Cash advance |
2.9 |
|
2.7 |
ATM |
24.8 |
|
22.9 |
Check warranty |
0.9 |
|
0.9 |
(1) Operating income for the three months ended
March 31, 2019 includes the impact of approximately $0.3 million of
non-recurring operating expenses related to the acquisition of
certain player loyalty assets and other professional service
fees.(2) For a reconciliation of net income to Adjusted EBITDA, see
the Unaudited Reconciliation of Net Income to EBITDA and Adjusted
EBITDA and to Free Cash Flow at the end of this release.
2019 First Quarter Financial Technology
Solutions Segment Highlights
FinTech revenues increased approximately 10.8%
to $56.3 million in the first quarter of 2019 compared to $50.8
million in the prior-year period.
- Revenues from cash access services, which include ATM, cash
advance and check services, increased 6.8%, or $2.6 million, to
$40.8 million in the first quarter of 2019 compared to $38.2
million in the first quarter of 2018. 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 or
expansions.
- Equipment sales revenues increased 59%, or $2.6 million, to
$7.0 million in the first quarter of 2019 compared to $4.4 million
in the first quarter of 2018. This increase is the result of higher
year over year sales of fully integrated kiosks and other operator
efficiency products in the first quarter of 2019.
- Revenues from information services and other, which includes
kiosk maintenance, compliance products, Central Credit, player
loyalty and other revenue, increased $0.3 million, to $8.5 million,
in the first quarter of 2019 compared to $8.2 million in the first
quarter of 2018.
2019 Outlook
Everi reiterated its 2019 forecast initially
provided on March 12, 2019. 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 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 driven by
expected growth in revenue related to the servicing of FinTech
equipment, higher compliance revenue and software sales,
maintenance and professional services from the recently acquired
player loyalty technology.
The Company expects capital expenditures and
placement fees for 2019 will be between $122 million and $125
million, which includes approximately $3 million to $5 million
related to the player loyalty acquisition.
For a reconciliation of projected net income to
projected Adjusted EBITDA, see the Reconciliation of Projected Net
Income to Projected EBITDA, Projected Adjusted EBITDA and Free Cash
Flow provided at the end of this release.
Investor Conference Call and
Webcast
The Company will host an investor conference
call to discuss its 2019 first quarter results at 5:00 p.m. ET
today. The conference call may be accessed live over the
phone by dialing (866) 548-4713 or for international callers by
dialing (323) 794-2093. 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
3668090. The replay will be available until May 14,
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, 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, and Free Cash Flow 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, operating income, basic or diluted earnings 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 before
interest, taxes, depreciation and amortization, non-cash stock
compensation expense, accretion of contract rights, and the expense
related to the acquisition of certain player loyalty assets and
other non-recurring professional service 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 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 believe it provides
investors with another indicator of our operating performance. 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 per
GAAP to Adjusted EBITDA and Free Cash Flow is included in the
Unaudited Reconciliation of Net Income to EBITDA and Adjusted
EBITDA and to Free Cash Flow provided at the end of this release.
Additionally, a reconciliation of each segment’s operating income
to Adjusted EBITDA is also included. On a segment level, operating
income per GAAP, rather than net earnings per GAAP, is reconciled
to Adjusted EBITDA as the Company does not report net earnings by
segment. 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, cash interest 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 Report on Form 10-K for the year ended
December 31, 2018 , 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-Q 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.
Contacts
Investor RelationsRichard Land, James
LeahyJCIR212-835-8500 or evri@jcir.com
|
EVERI HOLDINGS INC. AND SUBSIDIARIES |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
AND |
COMPREHENSIVE INCOME |
(In thousands, except earnings per share
amounts) |
|
|
Three Months Ended March 31, |
|
2019 |
|
2018 |
Revenues |
|
|
|
Games
revenues |
|
|
|
Gaming operations |
$ |
44,286 |
|
|
$ |
40,056 |
|
Gaming equipment and systems |
23,087 |
|
|
20,154 |
|
Gaming other |
54 |
|
|
7 |
|
Games total revenues |
67,427 |
|
|
60,217 |
|
|
|
|
|
FinTech
revenues |
|
|
|
Cash access services |
40,832 |
|
|
38,218 |
|
Equipment |
7,028 |
|
|
4,419 |
|
Information services and other |
8,488 |
|
|
8,147 |
|
FinTech total revenues |
56,348 |
|
|
50,784 |
|
|
|
|
|
Total revenues |
123,775 |
|
|
111,001 |
|
|
|
|
|
Costs and
expenses |
|
|
|
Games cost of
revenues |
|
|
|
Gaming operations |
4,124 |
|
|
4,182 |
|
Gaming equipment and systems |
12,529 |
|
|
10,741 |
|
Gaming other |
— |
|
|
— |
|
Games total cost of revenues |
16,653 |
|
|
14,923 |
|
|
|
|
|
FinTech cost of
revenues |
|
|
|
Cash access services |
2,697 |
|
|
2,231 |
|
Equipment |
4,330 |
|
|
2,514 |
|
Information services and other |
958 |
|
|
1,216 |
|
FinTech total cost of revenues |
7,985 |
|
|
5,961 |
|
|
|
|
|
Operating expenses |
34,648 |
|
|
32,187 |
|
Research and
development |
7,531 |
|
|
4,311 |
|
Depreciation |
14,789 |
|
|
12,825 |
|
Amortization |
16,297 |
|
|
16,303 |
|
Total costs and expenses |
97,903 |
|
|
86,510 |
|
|
|
|
|
Operating income |
25,872 |
|
|
24,491 |
|
|
|
|
|
Other
expenses |
|
|
|
Interest expense, net
of interest income |
20,400 |
|
|
20,307 |
|
Total other expenses |
20,400 |
|
|
20,307 |
|
|
|
|
|
Income before income tax |
5,472 |
|
|
4,184 |
|
|
|
|
|
|
|
|
Income tax benefit |
(388) |
|
|
|
(425 |
) |
Net income |
5,860 |
|
|
|
4,609 |
|
Foreign currency
translation |
504 |
|
|
|
323 |
|
Comprehensive income |
$ |
6,364 |
|
|
$ |
4,932 |
|
Earnings per
share |
|
|
|
|
|
|
|
Basic |
$ |
0.08 |
|
|
$ |
0.07 |
|
Diluted |
$ |
0.08 |
|
|
$ |
0.06 |
|
Weighted average
common shares outstanding |
|
|
|
|
|
|
Basic |
70,334 |
|
|
|
68,686 |
|
Diluted |
75,256 |
|
|
|
73,285 |
|
|
|
|
|
|
|
|
|
EVERI HOLDINGS INC. AND SUBSIDIARIES |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(In thousands) |
|
|
Three Months Ended March 31, |
|
2019 |
|
2018 |
Cash flows from
operating activities |
|
|
|
Net income |
$ |
5,860 |
|
|
$ |
4,609 |
|
Adjustments to reconcile net income to cash (used in) provided by
operating activities: |
|
|
|
Depreciation |
14,789 |
|
|
12,825 |
|
Amortization |
16,297 |
|
|
16,303 |
|
Amortization of financing costs and discounts |
890 |
|
|
905 |
|
Loss (gain) on sale or disposal of assets |
513 |
|
|
(13 |
) |
Accretion of contract rights |
2,122 |
|
|
2,057 |
|
Provision for bad debts |
2,864 |
|
|
2,182 |
|
Deferred income taxes |
(513 |
) |
|
(561 |
) |
Reserve for obsolescence |
441 |
|
|
305 |
|
Stock-based compensation |
1,773 |
|
|
2,350 |
|
Changes in operating assets and liabilities: |
|
|
|
Settlement receivables |
(175,748 |
) |
|
73,571 |
|
Trade and other receivables |
(12,385 |
) |
|
(9,715 |
) |
Inventory |
57 |
|
|
(1,157 |
) |
Other assets |
(16,756 |
) |
|
1,251 |
|
Settlement liabilities |
19,931 |
|
|
(74,617 |
) |
Other liabilities |
27,677 |
|
|
2,456 |
|
Net cash (used in) provided by operating
activities |
(112,188 |
) |
|
32,751 |
|
Cash flows from investing
activities |
|
|
|
Capital expenditures |
(22,194 |
) |
|
(26,339 |
) |
Acquisition |
(20,000 |
) |
|
— |
|
Proceeds from sale of fixed assets |
33 |
|
|
72 |
|
Placement fee agreements |
(5,329 |
) |
|
(4,643 |
) |
Net cash used in investing activities |
(47,490 |
) |
|
(30,910 |
) |
Cash flows from financing
activities |
|
|
|
Repayments of credit facilities |
(2,050 |
) |
|
(2,050 |
) |
Proceeds from exercise of stock options |
4,686 |
|
|
4,088 |
|
Purchase of treasury stock |
(15 |
) |
|
(38 |
) |
Net cash provided by financing activities |
2,621 |
|
|
2,000 |
|
Effect of exchange rates on cash |
(343 |
) |
|
147 |
|
Cash, cash equivalents
and restricted cash |
|
|
|
Net (decrease) increase for the period |
(157,400 |
) |
|
3,988 |
|
Balance, beginning of the period |
299,181 |
|
|
129,604 |
|
Balance, end of the period |
$ |
141,781 |
|
|
$ |
133,592 |
|
|
|
|
|
|
|
|
|
|
EVERI HOLDINGS INC. AND SUBSIDIARIES |
UNAUDITED RECONCILIATION OF CASH AND CASH
EQUIVALENTS |
TO NET CASH POSITION AND NET CASH AVAILABLE |
(In thousands) |
|
|
At March 31, |
|
At December 31, |
|
2019 |
|
2018 |
Cash
available |
|
|
|
Cash and cash equivalents |
$ |
139,857 |
|
|
$ |
297,532 |
|
Settlement receivables |
259,288 |
|
|
82,359 |
|
Settlement liabilities |
(354,402 |
) |
|
(334,198 |
) |
Net cash position |
44,743 |
|
45,693 |
|
|
|
|
Undrawn revolving credit facility |
35,000 |
|
35,000 |
|
|
|
|
Net cash available |
$ |
79,743 |
|
|
$ |
80,693 |
|
|
|
|
|
|
|
|
|
|
EVERI HOLDINGS INC. AND SUBSIDIARIES |
UNAUDITED RECONCILIATION OF NET INCOME TO EBITDA AND
ADJUSTED EBITDA AND |
TO FREE CASH FLOW |
(In thousands) |
|
|
Three Months Ended March 31, 2019 |
|
Three Months Ended March 31, 2018 |
|
Games |
|
FinTech |
|
Total |
|
Games |
|
FinTech |
|
Total |
Net income |
|
|
|
|
$ |
5,860 |
|
|
|
|
|
|
$ |
4,609 |
|
Income tax benefit |
|
|
|
|
(388 |
) |
|
|
|
|
|
(425 |
) |
Interest expense, net of interest
income |
|
|
|
|
20,400 |
|
|
|
|
|
|
20,307 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
$ |
3,104 |
|
|
$ |
22,768 |
|
|
$ |
25,872 |
|
|
$ |
4,353 |
|
|
$ |
20,138 |
|
|
$ |
24,491 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Plus: depreciation and
amortization |
27,156 |
|
|
3,930 |
|
|
31,086 |
|
|
24,623 |
|
|
4,505 |
|
|
29,128 |
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
$ |
30,260 |
|
|
$ |
26,698 |
|
|
$ |
56,958 |
|
|
$ |
28,976 |
|
|
$ |
24,643 |
|
|
$ |
53,619 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash stock compensation
expense |
557 |
|
|
1,216 |
|
|
1,773 |
|
|
627 |
|
|
1,723 |
|
|
2,350 |
|
Accretion of contract rights |
2,122 |
|
|
— |
|
|
2,122 |
|
|
2,057 |
|
|
— |
|
|
2,057 |
|
Asset acquisition expense and
other non-recurring professional fees |
186 |
|
|
271 |
|
|
457 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA |
$ |
33,125 |
|
|
$ |
28,185 |
|
|
$ |
61,310 |
|
|
$ |
31,660 |
|
|
$ |
26,366 |
|
|
$ |
58,026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid for interest |
|
|
|
|
(12,470 |
) |
|
|
|
|
|
(15,206 |
) |
Cash paid for capital
expenditures |
|
|
|
|
(22,194 |
) |
|
|
|
|
|
(26,339 |
) |
Cash paid for placement fees |
|
|
|
|
(5,329 |
) |
|
|
|
|
|
(4,643 |
) |
Cash paid for income taxes, net
of refunds |
|
|
|
|
(92 |
) |
|
|
|
|
|
(66 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash
Flow |
|
|
|
|
$ |
21,225 |
|
|
|
|
|
|
$ |
11,772 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EVERI HOLDINGS INC. AND SUBSIDIARIES |
RECONCILIATION OF PROJECTED NET INCOME TO PROJECTED
EBITDA |
AND PROJECTED ADJUSTED EBITDA AND TO PROJECTED FREE CASH
FLOW |
FOR THE YEAR ENDING DECEMBER 31, 2019 |
(In thousands) |
|
|
2019 Adjusted EBITDA Guidance Range(1) |
|
Low |
|
High |
Projected net income |
$ |
16,600 |
|
|
$ |
22,000 |
|
Projected income tax benefit |
(1,000 |
) |
|
(2,000 |
) |
Projected interest expense, net
of interest income |
86,000 |
|
|
83,000 |
|
|
|
|
|
Projected operating income |
$ |
101,600 |
|
|
$ |
103,000 |
|
|
|
|
|
Projected depreciation and
amortization |
132,000 |
|
|
136,000 |
|
|
|
|
|
Projected EBITDA |
$ |
233,600 |
|
|
$ |
239,000 |
|
|
|
|
|
Projected non-cash stock
compensation expense |
8,000 |
|
|
7,000 |
|
Projected accretion of contract
rights |
10,000 |
|
|
8,000 |
|
Projected asset acquisition
expense and other non-recurring professional fees |
400 |
|
|
1,000 |
|
|
|
|
|
Projected Adjusted EBITDA |
$ |
252,000 |
|
|
$ |
255,000 |
|
|
|
|
|
Projected cash paid for
interest |
(82,000 |
) |
|
(80,000 |
) |
Projected cash paid for capital
expenditures |
(105,000 |
) |
|
(108,000 |
) |
Projected cash paid for placement
fees |
(17,000 |
) |
|
(17,000 |
) |
Projected cash paid for income
taxes, net of refunds |
(1,000 |
) |
|
(1,000 |
) |
|
|
|
|
Projected Free Cash Flow |
$ |
47,000 |
|
|
$ |
49,000 |
|
(1) All figures presented are projected
estimates for the year ending December 31, 2019.
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