Revenue increases in financial technology and games helped slot machine and financial equipment maker Everi Holdings post second-quarter rises in net income and revenue. Both figures topped Wall Street forecasts.
But a statement accompanying Tuesday’s results didn’t say whether Las Vegas-based Everi would continue to exploring selling itself off or spinning off its financial technology unit. Bloomberg News in May said Everi was working with a financial adviser to solicit potential buyout offers, including several from private equity firms.
In a statement Tuesday, Las Vegas-based Everi reported net income of $5.5 million, or 7 cents per share, for the three months ended June 30, up from net income of $1.5 million, or 2 cents per share, a year earlier.
The latest result surpassed the 6 cents per share forecast by analysts surveyed by Zacks Investment Research.
Adjusted earnings before interest, taxes, depreciation and amortization, a cash flow measure that filters out nonrecurring costs, rose 7.7 percent to $64.1 million from $59.5 million.
Quarterly revenue rose 9.3 percent to a record $129.7 million from $118.7 million, also topped the $127.9 million forecast of Zacks-polled analysts.
In a statement accompanying the results, Everi President and CEO Michael Rumbolz said revenue and adjusted EBITDA have grown for 12 consecutive quarters, and net income has increased for six consecutive quarters.
Everi’s gaming operations revenue rose 5.3 percent from a year earlier to a record $46 million from $43.7 million. On a quarterly sequential basis, the company’s installed gaming equipment base grew by 50 units, reflecting the continued expansion of premium units.
Everi’s financial technology revenue rose 14.4 percent to $60.3 million from $52.7 million, bolstered by a 62.5 percent jump in equipment sales revenue to $7.8 million from $4.8 million.
“Our FinTech business … continues to grow,” Rumbolz said in the statement. “We are successfully executing on the attractive replacement cycle opportunity for integrated kiosk sales, with the second quarter representing another period of strong equipment sales.”
In May, SunTrust Bank gaming analyst Barry Jonas said the Everi merger, or spin-off speculation thereof, had centered on the company’s financial transaction services division. Everi was formed when financial transaction equipment provider Global Cash Access acquired slot machine developer MultiMedia Games in 2014 for $1.2 billion.
Investor interest in Everi was piqued in January, when the company extended Rumbolz’s contract by two years through January 2021. The deal was to have expired in May.
The Seeking Alpha website has reported that Raymond James analysts speculate Everi shares would be worth $15 to $16 in a takeover scenario; the higher end would represent a 45 percent premium based on Tuesday’s closing price.
Everi Holdings shares rose 11 cents, or 1 percent, Tuesday to close at $11.11 on the New York Stock Exchange. The share price has more than doubled since 2019 trading began Jan. 2.
Follow Matthew Crowley on Twitter @copyjockey
