LAS VEGAS (Nov. 8, 2023) – Everi Holdings Inc. (NYSE: EVRI) (“Everi” or the “Company”), a premier provider of land-based and digital casino gaming content and products, financial technology, player loyalty solutions, and bingo, today announced results for the third quarter ended September 30, 2023 and provided an update on its full year outlook.
- Revenues increased 1% to $206.6 million from $204.3 million a year ago
- FinTech segment revenues grew 4% to $95.1 million, reflecting a 12% increase in software and other revenues and a 7% rise in financial access revenues partially offset by a 20% decrease in hardware revenues
- Games segment revenues declined 1% to $111.5 million, reflecting a 5% rise in gaming operations revenues offset by a 12% decline in gaming equipment and systems sales revenues
- Recurring revenues grew 7% to $154.3 million and represented 75% of total revenues; non-recurring revenues declined 14% to $52.3 million reflecting lower gaming unit and FinTech hardware sales
- Net income decreased to $26.6 million, or $0.29 per diluted share, compared to $29.4 million, or $0.30 per diluted share, in the 2022 third quarter, a slight decrease from the prior year period
- Adjusted EPS, a non-GAAP financial measure, was $0.44 per diluted share flat with the prior-year period
- Adjusted EBITDA, a non-GAAP financial measure, was $96.2 million compared with $96.6 million in the 2022 third quarter
- Free Cash Flow, a non-GAAP financial measure, was impacted by discrete capital expenditures of approximately $6.0 million related to the build-out of the new consolidated production facility and certain technology investments as well as higher net cash interest payments of $4.7 million resulting in Free Cash Flow of $34.3 million in the third quarter of 2023 compared to $44.9 million in the prior-year period
- Repurchased 2.4 million shares for $33.9 million in the 2023 third quarter, with $106.1 million remaining available under the current $180 million share repurchase authorization.
Randy Taylor, Chief Executive Officer of Everi, said, “We continue to execute on our operational and product roadmap to drive long-term profitable growth in both our Games and Fintech businesses. We are introducing our next generation of for-sale and for-lease cabinets supported by more than 80 new game themes representing the most diverse range of gaming content in the Company’s history, including an increased emphasis on the video reel segment. We continue to add to and strengthen our FinTech product and service offerings that provide connectivity and value for our customers.
“Additionally, we are making progress in the integration of our recent acquisitions to establish the foundation for new avenues of growth both in Games, such as for Bingo, Historical Horse Racing (“HHR”) and Video Lottery Terminal (“VLT”) market categories, and in FinTech where we look to extend our Digital Neighborhood to bring new value to casino operators through our on-premise mobile gaming offering and an enhanced mobile wallet, as well as to expand into non-gaming sports and entertainment venues and other global gaming markets. We remain on track to enter these new markets including the VLT category and the UK mobile gaming market in early 2024 and other new international markets in late 2024 and 2025, which should contribute incremental revenue growth opportunities.
“Our third quarter results reflected the near-term headwinds in our Games segment including the impact from lower unit sales and lower daily win per unit. Despite these challenges, we continue to generate strong Free Cash Flow which totaled $122.1 million for the first nine months of the year. This level of Free Cash Flow has allowed us to aggressively return capital to our shareholders as reflected in our $74 million of share repurchases so far in 2023 and to continually reinvest in our product portfolio. We believe our investment in R&D, our deep pipeline of innovative new cabinets and content, and the positive feedback received for our newest product introductions at this year’s G2E position us well to return to growth next year and beyond.”