Despite announcing a 16.7 percent third quarter sales decrease from $134.6 m to $112.1 m, Everi Holdings celebrated a “significant quarterly sequential improvement” as well as a “quicker than previously expected recovery”
The company claims that its operating results reflect the ongoing impact of the COVID-19 pandemic, including ongoing casino closures and capacity constraints at reopened facilities, even though the number of reopened facilities increased over the period and capacity constraints at some properties eased.
Revenue in the ‘games’ division of the business came in at $57.2m, reflecting a 17.4 percent decline from $69.3m, led by a reduction in sales of electronic gaming machines due to operators’ capital saving initiatives as they tried to minimise the health crisis’s effects.
The ‘fintech’ portion of Everi saw revenue drop by 15.9 percent to $54.9 million (2019: $65.3 million), largely reflecting the effect of some casino closures over the period.
During Q3, operating income decreased by 27.8 percent to $19.7 million (2019: $27.3 million), net loss dropped by $900,000 compared to revenue of $9.3 million a year ago, and adjusted EBITDA fell by 7.5 percent from $64.7 million to $59.8 million.
In contrast to $34.6 m and $30.1 m in 2019, Adjusted EBITDA was $32.9 m and $26.8 m across the games and fintech divisions.
Everi’s chief executive officer, Michael Rumbolz, said: “The significant quarterly sequential improvement in revenue, net income, adjusted EBITDA and free cash flow in the third quarter demonstrates a quicker than previously expected recovery in our results.
“Our operations strengthened throughout the third quarter, with better performance at the end of the quarter compared to earlier in the quarter. While the future impact of the pandemic remains uncertain, our improved results highlight the resilience and strength of our recurring-revenue streams.”
Despite traditional seasonal effects in the fourth quarter, based on current conditions and performance patterns in both operating segments of the business, Everi expects net income and adjusted EBITDA to be comparable to the results of the third quarter of 2020.
“We believe the strength of our product development and cost containment initiatives will support our goal of enhancing long-term stakeholder value,” concluded Rumbolz.