Revenues Grew 21% to an All-time Quarterly
Record $204.3 Million
LAS
VEGAS, Nov. 8, 2022 /PRNewswire/ -- Everi
Holdings Inc. (NYSE: EVRI) ("Everi" or the "Company"), a premier
provider of land-based and digital casino gaming content and
products, financial technology and player loyalty solutions, today
announced results for the third quarter ended September 30,
2022. Reflecting the expectation for steady operating performance
in the fourth quarter, the Company also narrowed its full-year
guidance ranges for net income, Adjusted EBITDA and Free Cash
Flow.
Third Quarter 2022 Highlights
- Revenues grew 21% to an all-time quarterly record of
$204.3 million from $168.3 million in the 2021 third quarter,
reflecting a 9% increase in recurring revenues to $143.6 million and a 64% increase in
non-recurring revenues to $60.7
million, primarily for sales of gaming machines and FinTech
hardware.
- FinTech segment revenues rose 27%, reflecting an 81%
increase in hardware revenues, a 31% increase in software and other
revenues, and a 15% rise in financial access revenues, which were
driven by $10.9 billion of funds
delivered to casino floors.
- Games segment revenues rose 17%, reflecting a 57% increase
in shipments of gaming machines to 1,841 units, as well as a 5%
increase in revenues from gaming operations, which included the
benefit of a 1,314-unit year-over-year increase in the installed
game base.
- Net income increased to $29.4
million, or $0.30 per diluted
share, compared to $6.7 million, or
$0.07 per diluted share, in the 2021
third quarter. The provision for income taxes increased
$10.6 million in the 2022 third
quarter related to the reversal of the deferred tax asset valuation
allowance in the 2021 fourth quarter and the inclusion in the
prior-year period of a pre-tax charge of $34.4 million for loss on extinguishment of
debt.
- Adjusted EBITDA, a non-GAAP financial measure, increased 7%
to an all-time quarterly record $96.6
million compared to $90.6
million in the 2021 third quarter.
- Free Cash Flow, a non-GAAP financial measure, was
$43.9 million compared with
$56.3 million in the 2021 third
quarter, partly due to a change in the timing of the $10.0 million semi-annual interest payment on the
Company's 5% senior unsecured notes.
- Repurchased 0.9 million shares of stock for $16.0 million in the 2022 third quarter.
Randy Taylor, Chief Executive
Officer of Everi, said, "The third quarter year-over-year increases
in revenues, net income and Adjusted EBITDA and our consistent
improvement in our financial results throughout 2022 reflect the
operating momentum across each of our businesses due to the
continued broad-based demand for our products. Our strong financial
results this year have been driven by steady growth in our
recurring revenue streams together with a record level of revenues
from gaming machine and FinTech hardware sales. Our focus on
top-line growth and operational excellence is delivering consistent
year-over-year earnings growth and strong Free Cash Flow
generation.
"We received tremendous positive customer response to the launch
of our newest products displayed at the Global Gaming Expo ("G2E")
in early October, quite possibly our best-ever show. This favorable
feedback combined with the growth prospects related to our recent
acquisitions, fortifies our confidence for continued operating
momentum and strong cash flow in 2023. Our capital allocation
priorities remain directed toward extending the success we have
achieved through investments in high-return internal product
development to grow our core businesses and prudent acquisitions
that extend our product and service capabilities to expand our
addressable markets, as well as continuing to return capital to our
shareholders. With our confidence in our long-term growth prospects
and a belief that the current valuation of our Company does not
fully reflect our underlying strength and growth opportunities, we
have been returning capital to shareholders through opportunistic
repurchases of our shares as part of our focus on creating
additional long-term shareholder value."
Consolidated Full Quarter Comparative Results
(unaudited)
|
As of and for the
Three Months
Ended September 30,
|
|
2022
|
|
2021
|
|
(in millions, except
per share amounts)
|
Revenues
|
$
204.3
|
|
$
168.3
|
|
|
|
|
Operating income
(1)
|
$
54.6
|
|
$
55.1
|
|
|
|
|
Net income
(1)
|
$
29.4
|
|
$
6.7
|
|
|
|
|
Earnings per diluted
share (1)
|
$
0.30
|
|
$
0.07
|
|
|
|
|
Weighted average
diluted shares outstanding
|
96.4
|
|
101.4
|
|
|
|
|
Adjusted EBITDA
(2)
|
$
96.6
|
|
$
90.6
|
|
|
|
|
Free Cash Flow
(2)
|
$
43.9
|
|
$
56.3
|
|
|
|
|
Principal amount of
outstanding debt
|
$
994.0
|
|
$
1,000.0
|
|
|
|
|
Cash and cash
equivalents
|
$
258.6
|
|
$
215.6
|
|
|
|
|
Net Cash Position
(3)
|
$
103.3
|
|
$
88.6
|
|
|
(1)
|
Operating income, net
income, and earnings per diluted share for the three months ended
September 30, 2022, included $2.1 million in professional fees
associated with acquisitions and for non-recurring litigation
costs. Net income and earnings per diluted share for the three
months ended September 30, 2021, included a $34.4 million pre-tax
charge for the extinguishment of debt related to the Company's debt
transactions.
|
(2)
|
For a reconciliation of
net income to Adjusted EBITDA and Free Cash Flow, see the Unaudited
Reconciliation of Selected Financial GAAP to Non-GAAP Measures
provided toward the end of this release.
|
(3)
|
For a reconciliation of
Net Cash Position to Cash and Cash Equivalents, see the Unaudited
Reconciliation of Cash and Cash Equivalents to Net Cash Position
and Net Cash Available toward the end of this release.
|
|
|
|
|
Third Quarter 2022 Results Overview
Revenues for the three-month period ended September 30,
2022 increased 21% to $204.3 million compared to $168.3 million in the third quarter of 2021.
Recurring revenues increased 9% driven by growth in both the Games
and FinTech segments to $143.6
million from $131.2 million in
the prior-year period. Revenues from non-recurring sales
increased 64% to $60.7 million
compared with $37.1 million in the
prior-year period.
Operating income for the 2022 third quarter was $54.6 million compared to $55.1 million in the prior-year period. The
lower operating margin compared to the same period a year ago
primarily reflects a change in the revenue mix, which resulted from
the substantially greater growth in sales of gaming machines and
FinTech hardware (that have lower margins) as the Company
successfully increases its ship share and expands into new markets.
Higher research and development expense that supports the step-up
in the Company's focus on internal new product development and
increased depreciation and amortization also impacted the operating
margin comparison. While operating costs increased year over year,
largely attributable to recent acquisitions and increased legal
costs, they declined slightly as a percentage of revenues in the
2022 third quarter compared to the prior-year period.
Net income increased 339% to $29.4 million, or $0.30 per diluted share, compared to $6.7 million, or $0.07 per diluted share, in the third quarter of
2021. The provision for income taxes increased $10.6 million in the 2022 third quarter and was
attributable to the reversal of the full valuation allowance on
certain deferred tax assets that occurred in the 2021 fourth
quarter. The 2021 third quarter included a pre-tax charge of
$34.4 million for the loss on
extinguishment of debt related to the Company's debt refinancing
transactions.
Adjusted EBITDA increased 7% to an all-time quarterly record
$96.6 million from $90.6 million in the prior-year period.
Free Cash Flow was $43.9 million
compared with $56.3 million in the
year-ago period. A change in the timing of the semi-annual interest
payment on the Company's 5% senior unsecured notes, attributable to
the refinancing of the Company's debt in 2021, resulted in a
$10 million semi-annual interest
payment in the 2022 third quarter while the comparable payment in
the prior year occurred in the second quarter.
Outlook
Everi today tightened its full year 2022 guidance for net income
to $112 million to $117 million, Adjusted EBITDA to $371 million to $376
million and Free Cash Flow to $190
million to $197 million.
The Company's updated guidance does not contemplate any
additional material macroeconomic impact, such as a
pandemic-related setback, recessionary or inflationary influence on
consumer spending, a material supply chain disruption, or other
changes in global market conditions. A summary and reconciliation
of the full year 2022 financial targets are included in a
supplemental table at the end of this release.
Games Segment Full Quarter Comparative Results
(unaudited)
|
Three Months Ended
September 30,
|
|
2022
|
|
2021
|
|
(in millions, except
unit amounts
and prices)
|
Games
revenues
|
|
|
|
Gaming operations -
Land-based casinos
|
$
69.9
|
|
$
67.8
|
Gaming operations -
Digital iGaming
|
5.1
|
|
3.8
|
Gaming
operations - Total
|
75.0
|
|
71.6
|
Gaming equipment and
systems
|
37.5
|
|
24.2
|
Gaming
other
|
—
|
|
—
|
Games total
revenues
|
$
112.5
|
|
$
95.8
|
|
|
|
|
Operating
income
|
$
25.8
|
|
$
30.2
|
|
|
|
|
Adjusted EBITDA
(1)
|
$
57.2
|
|
$
57.7
|
|
|
|
|
Research and
development expense
|
$
11.3
|
|
$
6.4
|
|
|
|
|
Capital
expenditures
|
$
25.5
|
|
$
19.3
|
|
|
|
|
Gaming operations
information:
|
|
|
|
Units installed at
period end:
|
|
|
|
Class II
|
10,183
|
|
9,525
|
Class III
|
7,552
|
|
6,896
|
Total installed base
at period end
|
17,735
|
|
16,421
|
|
|
|
|
Premium
units
|
8,725
|
|
7,351
|
|
|
|
|
Average units
installed during period
|
17,669
|
|
16,232
|
|
|
|
|
Daily win per unit
("DWPU") (2)
|
$
39.56
|
|
$
42.74
|
|
|
|
|
Unit sales
information:
|
|
|
|
Units sold
|
1,841
|
|
1,176
|
Average sales price
("ASP")
|
$
18,496
|
|
$
18,014
|
|
|
(1)
|
For a reconciliation of
net income to Adjusted EBITDA, see the Unaudited Reconciliation of
Selected Financial GAAP to Non-GAAP measures provided toward the
end of this release.
|
(2)
|
Daily win per unit
reflects the total of all units installed at casinos, inclusive of
casinos closed due to the COVID pandemic and inactive units, where
such units would have recorded no revenue and excludes the impact
of the direct costs associated with the Company's wide-area
progressive jackpot expense.
|
|
|
|
|
2022 Third Quarter Games Segment
Highlights
Games segment revenues grew 17% to $112.5 million compared to $95.8 million in the third quarter of 2021,
primarily driven by a 57% increase in the number of gaming machines
sold, as well as further growth in gaming operations revenues,
including from digital gaming operations.
Operating income was $25.8 million compared to $30.2 million in the third quarter of 2021,
reflecting higher revenues from gaming machine sales, offset by
lower margins on machine sales due to increased supply chain costs
as well as higher operating expenses, including increased costs
associated with acquisitions and higher research and development
expense, reflecting an increased investment in games development
and engineering costs. Adjusted EBITDA was $57.2 million compared to $57.7 million in the third quarter of 2021.
Revenues from the recent acquisition of Intuicode Gaming were
$2.3 million in the 2022 third
quarter.
Gaming operations revenues increased 5% to $75.0 million compared to $71.6 million a year ago.
- The installed base increased 8%, or by 1,314 units, year over
year and increased by 271 units on a quarterly sequential base to
17,735 units as of September 30,
2022.
- The premium portion of the installed base increased by 19%, or
1,374 units, year over year and by 370 units on a quarterly
sequential basis to 8,725 units. Growth was driven in part by
continued placements of Cashnado™ and Smokin' Hot Stuff
Fire and Ice™ units, as well as the Company's popular premium
mechanical reel games, and its Wide-area Progressive ("WAP") gaming
machines.
- Daily Win per Unit ("DWPU") was $39.56 in the third quarter of 2022 compared to
$42.74 in the third quarter of
2021.
- Revenues from digital gaming rose 34% to $5.1 million in the third quarter of 2022
compared to $3.8 million in the third
quarter of 2021. The increase in Digital revenues reflects an
expansion in the number of Gaming operator sites featuring Everi's
games along with growth in the library of available slot
content.
Gaming equipment and systems revenues generated from the sale of
gaming machines, including historical horse racing ("HHR") units
and other related parts and equipment, increased 55% to
$37.5 million in the third
quarter of 2022 compared to $24.2 million in the third quarter of
2021.
- The Company sold 1,841 gaming machines at an average selling
price ("ASP") of $18,496 in the 2022
third quarter, up 665 units or 57%, from the 1,176 units sold at an
ASP of $18,014 in the 2021 third
quarter. The Company estimates its quarterly industry ship share
expanded year over year, primarily driven by sales of the newly
launched Player Classic Signature™ mechanical reel cabinet,
ongoing sales of the Player Classic™ mechanical reel
cabinet, and demand for the expanding game library supporting the
Empire Flex™ video reel cabinet.
Financial Technology Solutions Segment Full Quarter
Comparative Results (unaudited)
|
Three Months Ended
September 30,
|
|
2022
|
|
2021
|
|
(in millions, unless
otherwise noted)
|
FinTech
revenues
|
|
|
|
Financial access
services
|
$
53.3
|
|
$
46.4
|
Software and
other
|
22.2
|
|
17.0
|
Hardware
|
16.3
|
|
9.0
|
FinTech total
revenues
|
$
91.8
|
|
$
72.4
|
|
|
|
|
Operating income
(1)
|
$
28.8
|
|
$
24.9
|
|
|
|
|
Adjusted EBITDA
(2)
|
$
39.4
|
|
$
32.9
|
|
|
|
|
Research and
development expenses
|
$
5.5
|
|
$
3.2
|
|
|
|
|
Capital
expenditures
|
$
6.7
|
|
$
4.8
|
|
|
|
|
Value of financial
access transactions:
|
|
|
|
Funds advanced
|
$
2,777.2
|
|
$
2,352.7
|
Funds dispensed
|
7,630.1
|
|
7,164.0
|
Check warranty
|
449.5
|
|
393.2
|
Total value
processed
|
$
10,856.8
|
|
$
9,909.9
|
|
|
|
|
Number of financial
access transactions:
|
|
|
|
Funds advanced
|
3.6
|
|
3.3
|
Funds dispensed
|
29.0
|
|
28.6
|
Check warranty
|
0.9
|
|
0.9
|
Total transactions
completed
|
33.5
|
|
32.8
|
|
Rounding may cause
variances.
|
(1)
|
Operating income for
the three months ended September 30, 2022, included $2.1 million
for professional fees associated with certain acquisitions and
non-recurring litigation costs.
|
(2)
|
For a reconciliation of
net income to Adjusted EBITDA, see the Unaudited Reconciliation of
Selected Financial GAAP to Non-GAAP Measures provided toward the
end of this release.
|
|
|
|
|
2022 Third Quarter Financial Technology Solutions
("FinTech") Segment Highlights
FinTech revenues for the 2022 third quarter increased 27% to
$91.8 million compared to
$72.4 million in the 2021 third
quarter, reflecting a 15% increase in financial access services, a
31% increase in software and other revenues, and an 81% improvement
in revenues from hardware sales. Revenues from the recent
acquisition of ecash Holdings contributed $4.0 million in the 2022 third quarter.
Operating income increased 16% to $28.8 million in the 2022 third quarter
compared to $24.9 million in the
prior-year period, reflecting a benefit from higher revenues
partially offset by higher legal costs and increased research and
development expense in support of new and enhanced Loyalty
products, the Company's digital CashClub Wallet®,
new RegTech products, and other software and hardware offerings.
Adjusted EBITDA rose 20% to an all-time, quarterly record of
$39.4 million compared to
$32.9 million in the 2021 third
quarter.
- Financial access services revenues, which include cashless and
cash-dispensing debit and credit card transactions and check
services, increased 15% versus the 2021 third quarter to
$53.3 million, reflecting
continued strength in same-store financial funding transactions, as
well as growth from new customer additions. Funds delivered to
casino floors increased 10% to $10.9
billion on a 2% increase in the number of completed
financial transactions together with an increase in average
transaction size. While representing less than 5% of funding
transactions, cashless transactions (including both digital wallet
and paper gaming voucher transactions) increased 58% year over
year. The Company's CashClub Wallet technology is currently
deployed at or being deployed across 14 jurisdictions at 38
casinos.
- Software and other revenues, which include Loyalty and RegTech
software, product subscriptions, kiosk maintenance services, and
other revenues, rose 31% to $22.2 million in the third quarter of 2022
compared to $17.0 million in the
third quarter 2021. Approximately 69% and 77% of software and
other revenues were of a recurring nature in the 2022 and 2021
third quarter periods, respectively.
- Hardware sales revenues increased 81% to $16.3 million compared to $9.0 million in the third quarter of 2021. The
record level of self-service kiosks and other hardware products
sold in the quarter reflect ongoing demand for the Company's
hardware and software solutions that deliver optimal performance
and improved cost efficiencies to casino operators, including
$2.8 million of revenues from ecash
Holdings' voucher redemption kiosks.
Balance Sheet and Liquidity
- As of September 30, 2022, the
Company had $258.6 million of cash
and cash equivalents, and its Net Cash Position was $103.3 million.
- The Company repurchased 0.9 million shares of its common stock
for total consideration of $16.0
million during the quarter, and as of September 30, 2022, had $100.6 million remaining under the existing
$150-million share repurchase program
approved by the Board in the 2022 second quarter.
- Subsequent to end of the 2022 third quarter, the Company closed
on its acquisition for substantially all of the assets of Venuetize
Inc., paying $18.0 million with
additional performance-based payments of $2
million to $6 million expected
during the next 30 months.
Investor Conference Call and Webcast
The Company will host an investor conference call to discuss its
2022 third quarter results at 11:00 a.m.
EST (8:00 a.m. PST) today. The
conference call may be accessed live by phone by dialing (201)
689-8471. A replay of the call will be available beginning at
2:00 p.m. ET today and may be
accessed by dialing (412) 317-6671; the PIN number is 13733645. A
replay will be available until November 15,
2022. The call also will be webcast live and archived on
www.everi.com (select "Investors" followed by "Events &
Contact").
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, 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, loss on extinguishment of debt,
non-cash stock compensation expense, accretion of contract rights,
litigation settlement received net of legal costs, office
consolidation costs, asset acquisition expense, certain
non-recurring professional fees, certain litigation costs, and
one-time charges. 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 credit
facility and 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 net of refunds. 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 Selected Financial GAAP to Non-GAAP Measures
provided at the end of this release. Additionally, a reconciliation
of each segment's operating income to EBITDA and Adjusted EBITDA is
also included. On a segment level, operating income per GAAP,
rather than net earnings per GAAP, is reconciled to EBITDA and
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 Net Cash Position as cash and cash equivalents plus
settlement receivables less settlement liabilities and 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. Forward-looking statements are neither historical facts nor
assurances of future performance, but instead are based only on our
current beliefs, expectations, and assumptions regarding the future
of our business, plans and strategies, projections, anticipated
events and trends, the economy, and other future conditions, as of
the date this press release is issued. Forward-looking statements
often, but do not always, contain words such as "expect,"
"anticipate," "aim to," "designed to," "intend," "plan," "believe,"
"goal," "target," "future," "assume," "estimate," "indication,"
"seek," "project," "may," "can," "could," "should," "favorably
positioned," or "will" and other words and terms of similar
meaning. Readers are cautioned not to place undue reliance on
the forward-looking statements contained herein, which are based
only on information currently available to us and only as of the
date hereof.
Examples of forward-looking statements include, among others,
statements regarding our ability to execute on key initiatives and
deliver ongoing operating and financial improvements, including
guidance related to 2022 financial and operational metrics;
maintain revenue, earnings and Free Cash Flow momentum; sustain our
overall growth; drive growth of the gaming operations installed
base and DWPU; continue expanding the portions of the gaming floor
the Company's games address, including into the Historical Horse
Racing category of gaming devices and the Company's overall
targeted ship share of gaming machines sold; successfully perform
obligations required by acquisition agreements; and create
incremental value for our shareholders, as well as statements
regarding our expectations for the industry environment and the
adoption of our products and technologies.
Forward-looking statements are subject to inherent risks,
uncertainties, and changes in circumstances that are often
difficult to predict and many of which are beyond our control,
including, but not limited to, statements regarding: trends,
developments, and uncertainties impacting our business, including
our ability to withstand: global supply chain disruption;
inflationary impact on supply chain costs; changes in global
market, business and regulatory conditions arising as a result of
the COVID-19 global pandemic, including any related public health
confidence and availability of discretionary spending income of
casino patrons, as well as expectations for the closing or
re-opening of casinos; product innovations that address customer
needs in a new and evolving operating environment; to regain or
maintain revenue, earnings, and cash flow momentum, and to enhance
shareholder value in the long-term; trends in gaming establishment
and patron usage of our products; benefits realized by using our
products and services; benefits and/or costs associated with
mergers, acquisitions, and/or strategic alliances; product
development, including the release of new game features, additional
games, and system releases in the future; regulatory approvals;
gaming and financial regulatory and legal, card association, and
statutory compliance and changes; the implementation of new or
amended card association and payment network rules or
interpretations; consumer collection activities; competition
(including consolidations); tax liabilities; goodwill impairment
charges; international expansion; resolution of litigation or
government investigations; our dividend policy; new customer
contracts and contract renewals; financial performance and results
of operations (including revenues, expenses, margins, earnings,
cash flow, and capital expenditures); inflationary impact on labor
costs and retention; interest rates and interest expense;
borrowings and debt repayments; and equity incentive activity and
compensation expense.
Our actual results and financial condition may differ materially
from those indicated in forward-looking statements, and important
factors that could cause them to do so include, but are not limited
to, the following: our ability to generate profits in the future
and to create incremental value for shareholders; our ability to
withstand inflationary and other factors that pressure
discretionary consumer spending; our ability to execute on mergers,
acquisitions and/or strategic alliances, including our ability to
integrate and operate such acquisitions or alliances consistent
with our forecasts in order to achieve future growth; our ability
to execute on key initiatives and deliver ongoing improvements;
expectations regarding growth for the Company's installed base and
daily win per unit; expectations regarding placement fee
arrangements; inaccuracies in underlying operating assumptions; the
impact of the COVID-19 and its subsequent variations global
pandemic on our business, operations and financial condition,
including (i) actions taken by international, federal, state,
tribal and municipal governmental and regulatory agencies to
contain the COVID-19 public health emergency or mitigate its
impact, (ii) the direct and indirect economic effects of COVID-19
and measures to contain it, including directives, orders or similar
actions by international, federal, state, tribal and municipal
governmental and regulatory agencies to regulate freedom of
movement and business operations such as travel restrictions,
border closures, business closures, limitations on public
gatherings, quarantines and shelter-in-place orders as well as
re-opening safety protocols; changes in global market, business,
and regulatory conditions arising as a result of the COVID-19
global pandemic; our history of net losses and our ability to
generate profits in the future; our leverage and the related
covenants that restrict our operations; our ability to withstand
unanticipated impacts of a pandemic outbreak of uncertain duration;
our ability to withstand the loss of revenue during the closure of
our customers' facilities; our ability to generate sufficient cash
to service all of our indebtedness, fund working capital, and
capital expenditures; our ability to maintain our current
customers; expectations regarding customers' preferences and
demands for future product and service offerings; growth of the
gaming industry, if any; our ability to replace revenue associated
with terminated contracts; margin degradation from contract
renewals; our ability to comply with the Europay, MasterCard, and
Visa global standard for cards equipped with security chip
technology; our ability to successfully introduce new products and
services, including third-party licensed content; gaming
establishment and patron preferences; failure to control product
development costs and create successful new products; anticipated
sales performance; our ability to prevent, mitigate, or timely
recover from cybersecurity breaches, attacks, and compromises;
national and international economic and industry conditions;
changes in gaming regulatory, card association, and statutory
requirements; regulatory and licensing difficulties, competitive
pressures and changes in the competitive environment; operational
limitations; gaming market contraction; changes to tax laws;
uncertainty of litigation outcomes; interest rate fluctuations;
business prospects; unanticipated expenses or capital needs;
technological obsolescence and our ability to adapt to evolving
technologies; our ability to comply with our debt covenants and
service outstanding debt; employee hiring, turnover, and retention;
our ability to comply with regulatory requirements under the
Payment Card Industry ("PCI") Data Security Standards and maintain
our certified status; and those other risks and uncertainties
discussed in "Item 7. Management's Discussion and Analysis of
Financial Condition and Results of Operations" and "Item 1A. Risk
Factors" of our Annual Report on Form 10-K for the year ended
December 31, 2021 (the "Annual
Report"). Given these risks and uncertainties, there can be no
assurance that the forward-looking information contained in this
press release will in fact transpire or prove to be accurate.
This press release should be read in conjunction with our Annual
Report on Form 10-K for the year ended December 31, 2021, 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's mission is to lead the gaming industry through the power
of people, imagination and technology. With a focus on player
engagement and helping casino customers operate more efficiently,
the Company develops entertaining game content and gaming machines,
gaming systems, and services for land-based and iGaming operators.
The Company is also a preeminent and comprehensive provider of
trusted financial technology solutions that power the casino floor
while improving operational efficiencies and fulfilling regulatory
compliance requirements, including products and services that
facilitate convenient and secure cash and cashless financial
transactions, self-service player loyalty tools and applications,
and regulatory and intelligence software. For more information,
please visit www.everi.com, which is updated regularly with
financial and other information about the Company.
Investor Relations
Contacts:
|
|
Everi Holdings
Inc.
|
|
|
|
William
Pfund
|
Steven Kopjo
|
SVP, Investor
Relations
|
Director, Investor
Relations
|
702-676-9513 or
william.pfund@everi.com
|
702-785-7157 or
steven.kopjo@everi.com
|
|
|
JCIR
|
Richard Land, James
Leahy
|
212-835-8500 or
evri@jcir.com
|
|
Join Everi on Social Media
Twitter:
https://twitter.com/everi_inc
LinkedIn: https://www.linkedin.com/company/everi
Facebook: https://www.facebook.com/EveriHoldingsInc/
Instagram: https://www.instagram.com/everi_inc
|
|
EVERI
HOLDINGS INC. AND SUBSIDIARIES
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND
|
COMPREHENSIVE
INCOME
|
(In thousands,
except earnings per share amounts)
|
|
|
Three Months Ended
September 30,
|
|
Nine Months
Ended September 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Revenues
|
|
|
|
|
|
|
|
Games
revenues
|
|
|
|
|
|
|
|
Gaming operations
|
$
74,979
|
|
$
71,580
|
|
$
219,311
|
|
$
202,941
|
Gaming equipment and
systems
|
37,500
|
|
24,220
|
|
103,766
|
|
68,298
|
Gaming other
|
41
|
|
33
|
|
126
|
|
82
|
Games total revenues
|
112,520
|
|
95,833
|
|
323,203
|
|
271,321
|
FinTech
revenues
|
|
|
|
|
|
|
|
Financial access
services
|
53,296
|
|
46,421
|
|
154,051
|
|
129,973
|
Software and
other
|
22,192
|
|
17,024
|
|
59,056
|
|
49,874
|
Hardware
|
16,310
|
|
9,024
|
|
40,846
|
|
28,829
|
FinTech total revenues
|
91,798
|
|
72,469
|
|
253,953
|
|
208,676
|
Total revenues
|
204,318
|
|
168,302
|
|
577,156
|
|
479,997
|
Costs and
expenses
|
|
|
|
|
|
|
|
Games
cost of revenues (1)
|
|
|
|
|
|
|
|
Gaming operations
|
6,557
|
|
5,675
|
|
18,674
|
|
15,776
|
Gaming equipment and
systems
|
22,545
|
|
13,503
|
|
62,721
|
|
39,058
|
Games total cost of revenues
|
29,102
|
|
19,178
|
|
81,395
|
|
54,834
|
FinTech
cost of revenues (1)
|
|
|
|
|
|
|
|
Financial access
services
|
2,760
|
|
1,830
|
|
7,405
|
|
4,863
|
Software and
other
|
1,163
|
|
1,063
|
|
2,984
|
|
3,196
|
Hardware
|
10,771
|
|
5,380
|
|
27,074
|
|
17,078
|
FinTech total cost of revenues
|
14,694
|
|
8,273
|
|
37,463
|
|
25,137
|
Operating
expenses
|
56,354
|
|
47,121
|
|
161,230
|
|
133,320
|
Research and
development
|
16,803
|
|
9,598
|
|
43,386
|
|
26,799
|
Depreciation
|
17,444
|
|
14,463
|
|
48,342
|
|
46,571
|
Amortization
|
15,303
|
|
14,596
|
|
43,582
|
|
43,680
|
Total costs and
expenses
|
149,700
|
|
113,229
|
|
415,398
|
|
330,341
|
Operating
income
|
54,618
|
|
55,073
|
|
161,758
|
|
149,656
|
Other
expenses
|
|
|
|
|
|
|
|
Interest expense, net
of interest income
|
14,880
|
|
14,257
|
|
38,522
|
|
50,488
|
Loss on extinguishment
of debt
|
—
|
|
34,389
|
|
—
|
|
34,389
|
Total other
expenses
|
14,880
|
|
48,646
|
|
38,522
|
|
84,877
|
Income before
income tax
|
39,738
|
|
6,427
|
|
123,236
|
|
64,779
|
Income tax provision
(benefit)
|
10,329
|
|
(319)
|
|
29,784
|
|
1,285
|
Net
income
|
29,409
|
|
6,746
|
|
93,452
|
|
63,494
|
Foreign currency
translation loss
|
(2,639)
|
|
(442)
|
|
(4,665)
|
|
(335)
|
Comprehensive
income
|
$
26,770
|
|
$
6,304
|
|
$
88,787
|
|
$
63,159
|
|
|
(1)
|
Exclusive of
depreciation and amortization.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Earnings per
share
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.33
|
|
$
0.07
|
|
$
1.03
|
|
$
0.72
|
Diluted
|
|
$
0.30
|
|
$
0.07
|
|
$
0.95
|
|
$
0.64
|
Weighted average
common shares outstanding
|
|
|
|
|
|
|
|
|
Basic
|
|
90,014
|
|
90,322
|
|
91,039
|
|
88,688
|
Diluted
|
|
96,436
|
|
101,359
|
|
98,306
|
|
99,581
|
|
|
|
EVERI HOLDINGS INC.
AND SUBSIDIARIES
|
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In thousands,
except par value amounts)
|
|
|
At September
30,
|
|
At December
31,
|
|
2022
|
|
2021
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
258,627
|
|
$
302,009
|
Settlement
receivables
|
76,854
|
|
89,275
|
Trade and other
receivables, net of allowances for credit losses of $5,977 and
$5,161 at September 30, 2022 and December 31, 2021,
respectively
|
116,843
|
|
104,822
|
Inventory
|
55,890
|
|
29,233
|
Prepaid expenses and
other current assets
|
39,009
|
|
27,299
|
Total current
assets
|
547,223
|
|
552,638
|
Non-current
assets
|
|
|
|
Property and
equipment, net
|
130,545
|
|
119,993
|
Goodwill
|
707,214
|
|
682,663
|
Other intangible
assets, net
|
230,928
|
|
214,594
|
Other
receivables
|
24,777
|
|
13,982
|
Deferred tax assets,
net
|
179
|
|
32,121
|
Other
assets
|
28,657
|
|
19,659
|
Total non-current
assets
|
1,122,300
|
|
1,083,012
|
Total
assets
|
$
1,669,523
|
|
$
1,635,650
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Settlement
liabilities
|
$
232,147
|
|
$
291,861
|
Accounts payable
and accrued expenses
|
209,766
|
|
173,933
|
Current portion
of long-term debt
|
6,000
|
|
6,000
|
Total current
liabilities
|
447,913
|
|
471,794
|
Non-current
liabilities
|
|
|
|
Deferred tax
liabilities, net
|
345
|
|
—
|
Long-term debt, less
current portion
|
972,877
|
|
975,525
|
Other accrued expenses
and liabilities
|
29,669
|
|
13,831
|
Total non-current
liabilities
|
1,002,891
|
|
989,356
|
Total
liabilities
|
1,450,804
|
|
1,461,150
|
Commitments and
contingencies
|
|
|
|
Stockholders'
equity
|
|
|
|
Convertible preferred
stock, $0.001 par value, 50,000 shares authorized and no shares
outstanding at September 30, 2022 and December 31, 2021,
respectively
|
—
|
|
—
|
Common stock, $0.001
par value, 500,000 shares authorized and 119,258 and 89,972 shares
issued and outstanding at September 30, 2022, respectively,
and 116,996 and 91,313 shares issued and outstanding at
December 31, 2021, respectively
|
119
|
|
117
|
Additional paid-in
capital
|
522,353
|
|
505,757
|
Accumulated
deficit
|
(48,303)
|
|
(141,755)
|
Accumulated other
comprehensive loss
|
(6,120)
|
|
(1,455)
|
Treasury stock, at
cost, 29,286 and 25,683 shares at September 30, 2022 and
December 31, 2021, respectively
|
(249,330)
|
|
(188,164)
|
Total stockholders'
equity
|
218,719
|
|
174,500
|
Total liabilities
and stockholders' equity
|
$
1,669,523
|
|
$
1,635,650
|
|
|
|
EVERI
HOLDINGS INC. AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
|
|
Nine Months
Ended September 30,
|
|
2022
|
|
2021
|
Cash flows from
operating activities
|
|
|
|
Net income
|
$
93,452
|
|
$
63,494
|
Adjustments to
reconcile net income to cash provided by operating
activities:
|
|
|
|
Depreciation
|
48,342
|
|
46,571
|
Amortization
|
43,582
|
|
43,680
|
Non-cash lease
expense
|
3,599
|
|
3,400
|
Amortization of
financing costs and discounts
|
2,140
|
|
3,234
|
Loss on sale or
disposal of assets
|
420
|
|
1,616
|
Accretion of contract
rights
|
7,367
|
|
6,966
|
Provision for credit
losses
|
7,286
|
|
5,499
|
Deferred income
taxes
|
28,042
|
|
(174)
|
Reserve for inventory
obsolescence
|
659
|
|
1,610
|
Loss on extinguishment
of debt
|
—
|
|
34,389
|
Stock-based
compensation
|
15,012
|
|
12,404
|
Changes in operating
assets and liabilities:
|
|
|
|
Settlement
receivables
|
12,251
|
|
10,056
|
Trade and other
receivables
|
(23,845)
|
|
(25,522)
|
Inventory
|
(23,026)
|
|
(5,569)
|
Prepaid expenses and
other assets
|
(26,388)
|
|
(8,068)
|
Settlement
liabilities
|
(59,432)
|
|
4,371
|
Accounts payable and
accrued expenses
|
17,453
|
|
45,543
|
Net cash provided
by operating activities
|
146,914
|
|
243,500
|
Cash flows from
investing activities
|
|
|
|
Capital
expenditures
|
(92,225)
|
|
(73,288)
|
Acquisitions, net of
cash acquired
|
(33,250)
|
|
(15,000)
|
Proceeds from sale of
property and equipment
|
115
|
|
215
|
Placement fee
agreements
|
(547)
|
|
—
|
Net cash used in
investing activities
|
(125,907)
|
|
(88,073)
|
Cash flows from
financing activities
|
|
|
|
Proceeds from new term
loan
|
—
|
|
600,000
|
Repayments of new term
loan
|
(4,500)
|
|
—
|
Repayments of prior
term loan
|
—
|
|
(735,500)
|
Repayment of prior
incremental term loan
|
—
|
|
(124,375)
|
Proceeds from 2021
unsecured notes
|
—
|
|
400,000
|
Repayments of 2017
unsecured notes
|
—
|
|
(285,381)
|
Fees associated with
debt transactions - new debt
|
—
|
|
(19,797)
|
Fees associated with
debt transactions - prior debt
|
—
|
|
(20,828)
|
Proceeds from exercise
of stock options
|
1,586
|
|
14,012
|
Treasury stock -
restricted share vestings and withholdings
|
(11,815)
|
|
(8,909)
|
Treasury stock -
repurchase of shares
|
(49,351)
|
|
—
|
Payment of contingent
consideration, acquisition
|
—
|
|
(9,875)
|
Net cash used in
financing activities
|
(64,080)
|
|
(190,653)
|
Effect of exchange
rates on cash and cash equivalents
|
(1,106)
|
|
(237)
|
Cash, cash
equivalents and restricted cash
|
|
|
|
Net decrease for the
period
|
(44,179)
|
|
(35,463)
|
Balance, beginning of
the period
|
303,726
|
|
252,349
|
Balance, end of the
period
|
$
259,547
|
|
$
216,886
|
|
|
|
EVERI
HOLDINGS INC. AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
|
|
Nine Months
Ended September 30,
|
|
2022
|
|
2021
|
Supplemental cash
disclosures
|
|
|
|
Cash paid for
interest
|
$
42,070
|
|
$
45,167
|
Cash paid for income
tax, net
|
846
|
|
975
|
Supplemental
non-cash disclosures
|
|
|
|
Accrued and unpaid
capital expenditures
|
$
5,511
|
|
$
32,999
|
Transfer of leased
gaming equipment to inventory
|
7,758
|
|
5,636
|
|
|
|
EVERI
HOLDINGS INC. AND SUBSIDIARIES
|
UNAUDITED
RECONCILIATION OF CASH AND CASH EQUIVALENTS
|
TO NET CASH POSITION
AND NET CASH AVAILABLE
|
(In
thousands)
|
|
|
At September
30,
|
|
At December
31,
|
|
At September
30,
|
|
2022
|
|
2021
|
|
2021
|
Cash
available
|
|
|
|
|
|
Cash and cash
equivalents (1)
|
$
258,627
|
|
$
302,009
|
|
$
215,551
|
Settlement
receivables
|
76,854
|
|
89,275
|
|
50,596
|
Settlement
liabilities
|
(232,147)
|
|
(291,861)
|
|
(177,582)
|
Net Cash
Position
|
103,334
|
|
99,423
|
|
88,565
|
|
|
|
|
|
|
Undrawn revolving
credit facility
|
125,000
|
|
125,000
|
|
125,000
|
Net Cash
Available
|
$
228,334
|
|
$
224,423
|
|
$
213,565
|
|
|
(1)
|
Cash and cash
equivalents does not include $0.9 million, $1.7 million, and $1.3
million of restricted cash at September 30, 2022, December 31,
2021, and September 30, 2021, respectively.
|
|
|
|
EVERI
HOLDINGS INC. AND SUBSIDIARIES
|
UNAUDITED
RECONCILIATION OF SELECTED FINANCIAL GAAP TO NON-GAAP
MEASURES
|
(In
thousands)
|
|
|
Three Months Ended
September 30, 2022
|
|
Games
|
|
FinTech
|
|
Total
|
Net
income
|
|
|
|
|
$
29,409
|
Income tax
provision
|
|
|
|
|
10,329
|
Interest expense, net
of interest income
|
|
|
|
|
14,880
|
Operating
income
|
$
25,782
|
|
$
28,836
|
|
$
54,618
|
|
|
|
|
|
|
Plus: depreciation and
amortization
|
26,478
|
|
6,269
|
|
32,747
|
EBITDA
|
$
52,260
|
|
$
35,105
|
|
$
87,365
|
|
|
|
|
|
|
Non-cash stock-based
compensation expense
|
2,428
|
|
2,273
|
|
4,701
|
Accretion of contract
rights
|
2,470
|
|
—
|
|
2,470
|
Litigation
fees
|
—
|
|
1,977
|
|
1,977
|
Non-recurring
professional fees and other
|
$
4
|
|
$
118
|
|
$
122
|
Adjusted
EBITDA
|
$
57,162
|
|
$
39,473
|
|
$
96,635
|
|
|
|
|
|
|
Cash paid for
interest
|
|
|
|
|
(19,811)
|
Cash paid for capital
expenditures
|
|
|
|
|
(32,181)
|
Cash paid for placement
fees
|
|
|
|
|
—
|
Cash paid for income
taxes, net
|
|
|
|
|
(759)
|
Free Cash
Flow
|
|
|
|
|
$
43,884
|
|
|
|
EVERI
HOLDINGS INC. AND SUBSIDIARIES
|
UNAUDITED
RECONCILIATION OF SELECTED FINANCIAL GAAP TO NON-GAAP
MEASURES
|
(In
thousands)
|
|
|
Three Months Ended
September 30, 2021
|
|
Games
|
|
FinTech
|
|
Total
|
Net
income
|
|
|
|
|
$
6,746
|
Income tax
benefit
|
|
|
|
|
(319)
|
Loss on extinguishment
of debt
|
|
|
|
|
34,389
|
Interest expense, net
of interest income
|
|
|
|
|
14,257
|
Operating
income
|
$
30,199
|
|
$
24,874
|
|
$
55,073
|
|
|
|
|
|
|
Plus: depreciation and
amortization
|
23,300
|
|
5,759
|
|
29,059
|
EBITDA
|
$
53,499
|
|
$
30,633
|
|
$
84,132
|
|
|
|
|
|
|
Non-cash stock-based
compensation expense
|
1,904
|
|
2,048
|
|
3,952
|
Accretion of contract
rights
|
2,330
|
|
—
|
|
2,330
|
Non-recurring
professional fees and other
|
—
|
|
184
|
|
184
|
Adjusted
EBITDA
|
$
57,733
|
|
$
32,865
|
|
$
90,598
|
|
|
|
|
|
|
Cash paid for
interest
|
|
|
|
|
(9,858)
|
Cash paid for capital
expenditures
|
|
|
|
|
(24,054)
|
Cash paid for placement
fees
|
|
|
|
|
—
|
Cash paid for income
taxes, net
|
|
|
|
|
(409)
|
Free Cash
Flow
|
|
|
|
|
$
56,277
|
|
|
|
EVERI
HOLDINGS INC. AND SUBSIDIARIES
|
UNAUDITED
RECONCILIATION OF SELECTED FINANCIAL GAAP TO NON-GAAP
MEASURES
|
(In
thousands)
|
|
|
Nine Months
Ended September 30, 2022
|
|
Games
|
|
FinTech
|
|
Total
|
Net
income
|
|
|
|
|
$
93,452
|
Income tax
provision
|
|
|
|
|
29,784
|
Interest expense, net
of interest income
|
|
|
|
|
38,522
|
Operating
income
|
$
82,462
|
|
$
79,296
|
|
$
161,758
|
|
|
|
|
|
|
Plus: depreciation and
amortization
|
73,065
|
|
18,859
|
|
91,924
|
EBITDA
|
$
155,527
|
|
$
98,155
|
|
$
253,682
|
|
|
|
|
|
|
Non-cash stock-based
compensation expense
|
7,714
|
|
7,298
|
|
15,012
|
Accretion of contract
rights
|
7,367
|
|
—
|
|
7,367
|
Office consolidation
costs
|
678
|
|
—
|
|
678
|
Litigation
fees
|
—
|
|
1,977
|
|
1,977
|
Non-recurring
professional fees and other
|
38
|
|
1,926
|
|
1,964
|
Adjusted
EBITDA
|
$
171,324
|
|
$
109,356
|
|
$
280,680
|
|
|
|
|
|
|
Cash paid for
interest
|
|
|
|
|
(42,070)
|
Cash paid for capital
expenditures
|
|
|
|
|
(92,225)
|
Cash paid for placement
fees
|
|
|
|
|
(547)
|
Cash paid for income
taxes, net
|
|
|
|
|
(846)
|
Free Cash
Flow
|
|
|
|
|
$
144,992
|
|
|
|
EVERI
HOLDINGS INC. AND SUBSIDIARIES
|
UNAUDITED
RECONCILIATION OF SELECTED FINANCIAL GAAP TO NON-GAAP
MEASURES
|
(In
thousands)
|
|
|
Nine Months
Ended September 30, 2021
|
|
Games
|
|
FinTech
|
|
Total
|
Net
income
|
|
|
|
|
$
63,494
|
Income tax
provision
|
|
|
|
|
1,285
|
Loss on extinguishment
of debt
|
|
|
|
|
34,389
|
Interest expense, net
of interest income
|
|
|
|
|
50,488
|
Operating
income
|
$
76,064
|
|
$
73,592
|
|
$
149,656
|
|
|
|
|
|
|
Plus: depreciation and
amortization
|
73,586
|
|
16,665
|
|
90,251
|
EBITDA
|
$
149,650
|
|
$
90,257
|
|
$
239,907
|
|
|
|
|
|
|
Non-cash stock-based
compensation expense
|
6,075
|
|
6,329
|
|
12,404
|
Accretion of contract
rights
|
6,966
|
|
—
|
|
6,966
|
Litigation settlement,
net
|
—
|
|
(1,107)
|
|
(1,107)
|
Asset acquisition
expense, non-recurring professional fees and other
|
—
|
|
268
|
|
268
|
Adjusted
EBITDA
|
$
162,691
|
|
$
95,747
|
|
$
258,438
|
|
|
|
|
|
|
Cash paid for
interest
|
|
|
|
|
(45,167)
|
Cash paid for capital
expenditures
|
|
|
|
|
(73,288)
|
Cash paid for placement
fees
|
|
|
|
|
—
|
Cash paid for income
taxes, net
|
|
|
|
|
(975)
|
Free Cash
Flow
|
|
|
|
|
$
139,008
|
|
|
|
EVERI
HOLDINGS INC. AND SUBSIDIARIES
|
RECONCILIATION OF
PROJECTED NET INCOME TO PROJECTED EBITDA AND PROJECTED ADJUSTED
EBITDA FOR THE YEAR ENDING DECEMBER 31, 2022
|
(In
thousands)
|
|
|
2022 Guidance Range
(1)
|
|
Low
|
|
High
|
Projected net
income
|
$
112,000
|
|
$
117,000
|
Projected income tax
provision @ 24% - 25%
|
37,000
|
|
39,000
|
Projected interest
expense, net of interest income
|
56,000
|
|
54,000
|
Projected operating
income
|
$
205,000
|
|
$
210,000
|
|
|
|
|
Plus: projected
depreciation and amortization
|
130,000
|
|
128,000
|
Projected
EBITDA
|
$
335,000
|
|
$
338,000
|
|
|
|
|
Projected non-cash
stock compensation expense
|
20,000
|
|
21,000
|
Projected accretion of
contract rights
|
10,000
|
|
10,000
|
Projected office
consolidation costs, asset acquisition and non-recurring
professional fees, and certain litigation fees
|
6,000
|
|
7,000
|
Projected Adjusted
EBITDA
|
$
371,000
|
|
$
376,000
|
|
|
|
|
Projected cash paid for
interest
|
(57,000)
|
|
(54,000)
|
Projected cash paid for
capital expenditures
|
(121,000)
|
|
(123,000)
|
Projected cash paid for
placement fees
|
(500)
|
|
(500)
|
Projected cash paid for
income taxes, net of refunds
|
(2,500)
|
|
(1,500)
|
Projected Free Cash
Flow
|
$
190,000
|
|
$
197,000
|
|
|
(1)
|
All figures presented
are projected estimates for the year ending December 31,
2022.
|
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SOURCE Everi Holdings Inc.