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Everi’s record second quarter financial achievements have been credited to an improvement in industry trends as well as the implementation of continuing growth plans.
Although sales, net income, adjusted EBITDA, and free cash flow are all somewhat over the corresponding ranges announced earlier in the year, this is in line with the firm’s Q2 estimate stated in June 2021.
Furthermore, the figures demonstrate a quarterly sequential improvement over the first quarter of the year, indicating continued strength in casino patron demand while also indicating the ongoing, but diminished, impact of the COVID-19 epidemic.
Revenues increased 33 percent to $172.6 million in the fiscal year ending June 30, 2021, compared to $129.7 million in 2019 (2020: $38.7 million), with the group’s games segment reaching a new high of $99.3 million (2020: $20.9 million & 2019: $69.4 million) and fintech reaching an all-time high of $73.2 million (2020: $17.8 million & 2019: $60.3 million).
Michael Rumbolz, CEO of Everi said: “The strong momentum to-date this year in revenues, earnings and cash flow is being driven by consistent improvements in our games and fintech segment operating performance, demonstrating yet again the substantial demand that exists for our high-value products.
“A key highlight of our significant growth compared to pre-pandemic periods is the strength of our recurring revenue streams, which comprise an increased percentage of our overall business mix. This revenue is a significant contributor to our growing free cash flow, which in turn has allowed us to dramatically lower our net leverage.
“Accordingly, we are favourably positioned to prudently invest in both internal product innovation and complementary, high-return, accretive acquisitions that will support our future growth.”
In the second quarter, net income was $36.2 million (2020: -$68.4 million; 2019: $5.5 million), with adjusted EBITDA of $92.5 million (2020: $3.3 million; 2019: $64.1 million). When compared to two years ago, free cash flow surged by 462 percent to $39.2 million.
Games and Fintech segments
Everi’s chief operating officer, Randy Taylor, explained: “Our record quarterly revenue was up 33 per cent over the pre-COVID 2019 second quarter, primarily driven by the strength in our recurring revenue operations in both our games and fintech segments.
“Our games segment momentum reflects the continued growth in our installed base of gaming operations units, particularly increased placements of our higher-earning premium units that drove the increase in daily win per unit.
“In addition, slot machine sales increased by 49 per cent sequentially from the 2021 first quarter, reflecting what we believe is another quarter of higher ship share of replacement units.
“Second quarter unit sales also benefited from a larger share of shipments to new casino openings and expansions than we have historically achieved together, with a greater number of new casino openings and expansions than typically experienced in a quarter.
“Our fintech segment continues to benefit from our comprehensive, integrated financial access services and regtech software solutions, as well as our newer loyalty products such as our updated and upgraded self-service loyalty kiosks.
“Our strong fintech industry position enables Everi to benefit from the widespread increase in casino player activity, which drove mid-teens percentage growth in the number of financial access transactions we processed as compared to 2019 second quarter volumes; a rate that was significantly above our historical rate of growth.”
Everi has also offered full-year guidance, with sales of $615 million to $635 million, net income of $87 million to $95 million, adjusted EBITDA of $332 million to $342 million, and free cash flow of $168 million to $177 million expected.