Gaming-machine and financial-technology hardware sales sent third-quarter revenue to a record for Las Vegas-based gaming-equipment and cash-access provider Everi Holdings. Although revenue topped Wall Street forecasts, earnings per share fell short.
In a statement Wednesday, Everi said net income was $29.4 million, or 30 cents per diluted share, for the three months ended Sept. 30, up from $6.7 million, or 7 cents per diluted share, a year earlier. The latest result missed the 35-cents-per-share consensus estimate of analysts surveyed by Seeking Alpha.
The 2021 third quarter included a $34.4 million pretax charge for debt extinguishment related to debt refinancing.
Adjusted earnings before interest, taxes, depreciation, and amortization, a cash-flow measure that excludes one-time costs, increased 7% to a quarterly record $96.6 million from $90.6 million.
Revenue grew 21% to a quarterly record of $204.3 million from $168.3 million and topped the $195.2 million consensus forecast of Seeking Alpha-polled analysts.
“With our solid balance sheet, this tremendous free cash flow provides the capital to drive future growth through investment in our new-product-development initiatives and the acquisition of complementary businesses,” Chief Executive Officer Randy Taylor said in a conference call with analysts and journalists. “At the same time, we are well positioned to return value to shareholders through share repurchases.”
Everi delivered $10.9 billion to casino floors in the third quarter.
Everi’s financial-technology revenue rose 26.8% to $91.8 million from $72.4 million. An 81% jump in hardware-sales revenue complemented a 31% increase in software and other revenues and a 15% increase in financial-access-services revenue.
In the company’s games segment, third-quarter revenue rose 17% to $112.5 million from $95.8 million. A 57% increase in the number of gaming machines sold helped drive the segment’s revenue higher.
Everi sold 1,841 gaming machines in the quarter, up 56.5% from 1,176 units a year earlier.
“Over the last 12 months, we have sold more than 7,100 units. This represents the highest number of unit sales for any 12-month period in our history,” Chief Financial Officer Mark Labay said. “And individually, each of the last four quarters represents our four highest quarters of unit sales. Although visibility into longer term, operator capital spending remains limited, our backlog of orders for the remainder of the year and into early 2023 remains solid, and we are on track to continue our unit-sales momentum.”
Everi’s installed games base increased 8%, or by 1,314 units, year over year. The company’s installed games base stood at 17,735 units as of Sept. 30. Daily win per unit was $39.56 in the third quarter, down 7.4% from $42.74 a year earlier.
Everi Holdings shares fell 63 cents, or 3.74%, Wednesday to close at $16.22 on the Nasdaq Stock Market. The shares rebounded after hours, adding 58 cents, or 3.58%, to settle at $16.80. The share price has fallen 25.6% in 2022.
