In a first-quarter earnings call with analysts, Las Vegas-based cash-access-products company Everi Holdings touted recent deals for an Australia-based financial-technology provider and a Florida-based historical-horse-racing company, as it posted increases in first-quarter earnings and revenue, both of which also topped Wall Street forecasts.
In a statement Tuesday, Everi said its net income was $31.5 million, or 31 cents per diluted share, up from $20.5 million, or 21 cents per diluted share, a year earlier. The latest per-share results topped the average 28-cents-per-share earnings forecast of analysts surveyed by Seeking Alpha.
Adjusted earnings before interest, taxes, depreciation, and amortization, a cash-flow measure that excludes one-time costs, rose 18.8% to a record $89.6 million from $75.4 million.
Revenue rose 26.4% to $175.6 million from $139.1 million, led by a quarterly record $134.4 million in recurring revenue. The latest revenue figure topped Seeking Alpha-polled analysts’ $169.4 million forecast.
Everi reported that its games segment revenue rose 29.2% to $98.3 million from $76.1 million, boosted by a 21% increase in gaming-operations revenue, including a 129% increase in digital gaming and a 56% increase in gaming equipment and systems.
Everi’s installed base reached a record 17,328 units as of March 31, a 9%, or 1,379-unit, increase from a year earlier.
Fintech revenue rose 23% to a quarterly record of $77.3 million from $63 million. A 29% increase in financial-access services, 36% growth in hardware sales, and a 3% increase in software and other revenue buoyed the overall result.
In February, Everi Holdings acquired Australia-based ecash Holdings Pty Ltd., a cash-handling and financial- payment-systems provider and developer, for about $22.8 million. Ecash serves gaming companies in Australia, Asia, Europe and the United States. Everi said ecash and a games-development team will form the nucleus of a new Everi game studio in Australia.
This week, Everi acquired Intuicode Gaming, a Boynton Beach, Florida, game-development and engineering company, for $12.5 million. In 2021, Intuicode generated more than $10 million in annual revenue from gaming-machine sales and recurring-participation revenue from game-theme placements at U.S. historic horse racing locations.
In a conference call with analysts and journalists, Everi Chief Executive Officer Randy Taylor said his company will expand into new markets.
“We will continue to pursue the acquisition of tuck-in assets and businesses that add new products, product categories, and geographies to grow our total addressable market,” Taylor said.
Chief Financial Officer Mark Labay said Everi expects steadying of casino visitation and continued installed-base increases to spur overall revenue growth. He added that Everi expects daily win per unit to remain around or above $40 for 2022.
Everi Holdings shares rose 92 cents, or 6.09%, Tuesday to close at $16.02 on the Nasdaq. The shares fell 27 cents, or 1.69% after hours to settle at $15.75.
Follow Matthew Crowley on Twitter @copyjockey.
