Gaming equipment provider Everi Holdings said Tuesday it was taking advantage of favorable market conditions to reprice $735.5 million of its long-term debt.
As part of the announcement, the Las Vegas-based company said its fourth-quarter reflected an improvement over the previous three months but remain impacted by the ongoing COVID-19 pandemic and its related casino closures.
“Even with increased casino closures and further restrictions on certain casino activities in the fourth quarter, the sequential progress of our expected financial and operating results demonstrate the significant improvements to our Games and FinTech product portfolios over the last several years,” Everi CEO Mike Rumbolz said in a statement.
Everi said it was able to renegotiate $735.5 million of its debt due in 2024. The company had total debt of $1.14 billion at the end of September.
Everi said it expects to report 2020 fourth-quarter revenues to be in a range of $117 million to $121 million, an improvement over the third quarter revenues of $112.1 million. A year ago, the company’s fourth-quarter revenues were $145.2 million.
Everi said its quarterly net loss would range between $1.4 million to $300,000, which includes approximately $1.5 million in pre-tax charges. The company lost $900,000 in the third quarter and $4.1 million in the 2019 fourth quarter.
“Our preliminary 2020 fourth-quarter results reflect quarterly sequential improvement highlighting the ongoing strength and balance of our business, as well as the benefit of our focus on consistent improvement in our operating execution,” Rumbolz said.
Fourth-quarter cash flow is expected to range between $60 million to $62 million, compared to $59.8 million in the 2020 third quarter, and $63.2 million in the 2019 fourth quarter.
Everi said the “significant impact” of the pandemic on the casino and hospitality industry would cause the company’s total 2020 revenue to be in a range of $381 million to $385 million with a net loss in a range of $85 million to $83 million. In 2019, Everi reported revenues of $533.2 million and net income of $16.5 million.
Truist Securities gaming analyst Barry Jonas told investors Everi’s fourth quarter was “solid” given the increased casino closures and restrictions throughout the last three months of the year.
“(The) commentary around sequential improvements in the first quarter is also very positive,” Jonas said.
Rumbolz said Everi will continue rolling out new products in 2021, including an expansion of its mobile wallet technology and other cashless gaming and digital payment products. Everi has rolled out the mobile wallet at properties in Florida operated by the Seminole Indian Tribe and at the WinStar World Casino in Oklahoma, which is operated by the Chickasaw Nation.
“We expect our operating strength and momentum to continue in the 2021 first quarter, as casinos again begin to reopen and casino activities improve compared to 2020 fourth-quarter levels,” Rumbolz said.
Shares of Everi, traded on the New York Stock Exchange, closed at $13.34, up 32 cents or 2.46%.
Howard Stutz is the executive editor of CDC Gaming. He can be reached at hstutz@cdcgaming.com. Follow @howardstutz on Twitter.
