A major interest expense increase dampened first-quarter earnings for Everi Holdings. The Las Vegas-based gaming-equipment and cash-access provider said earnings per share fell from a year earlier. But adjusted earnings and revenue both rose, topping Wall Street estimates.
In a statement Wednesday, Everi said net income was $28.1 million, or 30 cents per diluted share, for the three months ended March 31, down from net $31.5 million, or 31 cents per diluted share, a year earlier. A $6.6 million increase in net interest expense squeezed the results.
Adjusted earnings, which exclude one-time costs, were 43 cents per share, topping the 24-cent-per-share consensus forecast of analysts surveyed by Seeking Alpha.
Adjusted earnings before interest, taxes, depreciation, and amortization, a cash-flow measure that also excludes one-time costs, rose 3% to $92.5 million from $89.6 million. The company said the result reflected the effect of $3.6 million in higher development costs to support future growth.
Revenue rose 14% to $200.5 million from $175.6 million and topped the $190.62 million forecast of Seeking Alpha-polled analysts.
Everi expects net income of $92 million to $100 million this year and adjusted EBITDA of $384 million to $396 million.
Chief Executive Officer Randy Taylor said in a conference call with analysts and journalists that his company had managed economic uncertainty and remained poised to grow. “Our recent acquisitions have expanded our addressable market, while also enabling us to leverage our existing product development capabilities and distribution to scale these products for future growth.”
In Everi’s gaming segment, total installed base rose 2.9% to 17,841 from 17,328 and revenue increased 9% to $107.4 million from $98.3 million. A 15% increase in gaming-equipment sales and a 7% increase in gaming operations boosted overall revenue.
Everi said the 2022 acquisition of Intuicode Gaming contributed $3.1 million in first-quarter game-segment revenue. (Everi acquired Intuicode Gaming, a Boynton Beach, Florida, game-development and engineering company, for $12.5 million in May 2022.)
In Everi’s financial-technology segment, revenue rose 20% to $93.1 million from $77.3 million, reflecting a 13% increase in financial access services, a 35% increase in software and other revenue, and a 34% increase in hardware sales.
Financial-access services revenue, including cashless and cash-dispensing debit- and credit-card transactions and check services, increased 13% to $56.2 million. Funds delivered to casino floors increased 14% to $11.5 billion, a quarterly record.
Everi shares rose 29 cents, or 1.9%, Wednesday to close at $15.32 on the New York Stock Exchange.
