Everi Holdings has record second-quarter revenue; Wall Street forecasts topped

Everi Holdings has record second-quarter revenue; Wall Street forecasts topped

  • Matthew Crowley, CDC Gaming Reports
August 4, 2022 2:09 PM
  • Matthew Crowley, CDC Gaming Reports
  • United States
  • Suppliers

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.

Follow Matthew Crowley on Twitter @copyjockey

Follow Matthew Crowley on Twitter @copyjockey.