Las Vegas-based gaming-equipment and cash-access provider Everi Holdings sold nearly 2,000 gambling machines and delivered more than $10 billion to casino floors in the second quarter. And though revenue rose to a record, net income fell, pushed lower by an income-tax-provision increase.
Earnings per share matched Wall Street expectations; revenue topped them.
In a statement, Everi said its net income was $32.5 million, or 33 cents per diluted share, for the three months ended June 30, down from $36.2 million, or 36 cents per diluted share, a year earlier. An income-tax provision increased $9.3 million in the 2022 second quarter related to the reversal of a fourth-quarter 2021 deferred-tax asset-valuation allowance.
The latest per-share result matched the 33-cents-per-share forecast of analysts surveyed by Seeking Alpha.
Earnings before interest, taxes, depreciation, and amortization, a cash-flow measure that excludes one-time costs, rose 2.1% to $94.4 million from $92.5 million.
Revenue rose 14.3% to a record $197.2 million from $172.6 million and topped the $180.9 million forecast of Seeking Alpha-polled analysts. A 37% increase in sales of gaming machines and financial-technology hardware fueled the increase.
Everi’s games segment revenue grew 13% to a record $112.3 million from $99.3 million, boosted by record gaming-machine sales and digital-gaming revenue growth. Everi’s installed games base increased 7% from a year earlier to a record 17,464 units. The company sold a record 1,957 gaming machines, an increase of 555 units from 1,402 units a year earlier.
Financial-technology revenue rose 16% to $84.9 million from $73.2 million. A 22% increase in software and other revenue and a 17% improvement in revenue from hardware sales pushed the overall total higher.
Financial-access-services revenue, including cashless and cash-dispensing debit and credit-card transactions and check services, reached a quarterly record $50.9 million, up 14% from a year earlier. Financial-technology-hardware sales revenue rose 17% to a record $15 million from $12.8 million.
“These results demonstrate our ability to offer industry-leading integrated solutions that help drive increases in same-store activity and cost efficiencies for our customers,” Chief Executive Officer Randy Taylor said in a statement. “With the planned introductions of … our Digital Neighborhood of integrated solutions, our fintech business is positioned to deliver consistent growth.”
In a conference call with analysts and journalists, Taylor said he expected Everi’s January acquisitions of Melbourne, Australia-based Atlas Gaming and May acquisition of Boynton Beach, Florida-based Intuicode Gaming Corp. increased its capacity to develop more games.
Also in the quarter, Everi bought back 2 million shares for $33.3 million.
Everi Holdings shares rose 7 cents, or 0.36%, Wednesday to close at $19.78 on the Nasdaq Stock Market. The share price has fallen 5.9% in 2022.
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