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Despite continued struggles in 2020 due to expanded constraints imposed on casino locations, Everi has celebrated the “significant advances” of its games and fintech product portfolios.
As predicted, the company reported fourth-quarter sales of $119.5 million, a small improvement from the previous quarter’s $112.1 million but a 17.6 percent decrease from the previous year’s $145.1 million.
The gaming division of the company fell 14.1 percent to $64.9 million (2019: $77.1 million), owing to lower electronic gaming machine revenues as a result of casino operators’ continued capital conservation initiatives as they tried to offset the effects of the COVID-19 pandemic.
Everi’s fintech division saw sales drop 24.4 percent to $54.7 million (2019: $68.1 million), owing to closures and decreased casino operation as a result of the flu pandemic, according to the company.
The quarter’s net loss was $1.1 million, compared to $4.1 million in the previous quarter, with adjusted EBITDA dipping marginally to $61.2 million (2019: $63.2 million).
Revenue dropped 38.9 percent to $383.6 million (2019: $533.2 million), with a net loss of $81.6 million compared to $16.5 million in 2019, and adjusted EBITDA down 43.4 percent to $176.5 million (2019: $253.2 million).
Company strength and balance
Everi’s CEO, Michael Rumbolz, said: “The quarterly sequential increase in revenues, net income and adjusted EBITDA achieved in the fourth quarter reflects the strength and balance of our businesses, in particular our significant percentage of higher-margin recurring revenues, and our track record of consistent operating execution.
“Year-over-year progress in several of our operating metrics, despite increased restrictions on certain casino activities during the quarter, is a direct result of the significant advances in our games and fintech product portfolios.
“These advances reflect our focus on developing new, innovative products to help our customers extend their relationship with their guests and operate more efficiently, and for which we are seeing increasing demand.
“Our improved operating performance, together with the ongoing benefits of our cost savings initiatives, resulted in an increase in operating income, our return to generating net income and in free cash flow more than tripling compared to last year’s fourth quarter.”
2021 Q1 predicted to outperform 2020
Moreover, despite the ongoing impact of casino closures, slower activity to-date in 2021, and severe winter weather that impacted much of the country in February, Everi predicts that 2021 Q1 will outperform 2020, and will be comparable to, or slightly ahead of, its most recent performance.
Everi predicts that operating results in the second half of 2021 will outperform those in the first half of the year, barring any further macroeconomic or pandemic-related setbacks.
Rumbolz adds: “Despite the ongoing impact of the COVID-19 pandemic, our games development teams continue to create original, entertaining, in-demand games that provide memorable player experiences.
“At the same time, our fintech development teams are achieving consistent progress in the creation of a fully integrated digital neighbourhood for casinos that drives improved operational efficiencies and creates seamless, convenient player transactions.
“Our success in implementing our new product development priorities is driving continued strength in key performance metrics and enabling us to execute on new opportunities, such as the burgeoning demand for cashless funding solutions.
“This success, combined with our focus on optimising our operations, is enabling Everi to address the industry’s current challenges and further positioning us to consistently grow our financial results as the operating environment normalises.”