A 26% jump in its installed premium-games base and technological advances in its game and financial-technology product portfolios helped Everi Holdings reverse a year-earlier loss for the fourth quarter, though revenue fell. Both figures topped Wall Street forecasts.
In a statement Tuesday, the Las Vegas-based slot machine and financial equipment maker said its net income was $1.1 million, or 1 cent per diluted share, for the three months ended Dec. 31, reversing a year-earlier net loss of $4.1 million, or 5 cents per diluted share.
The latest result topped the breakeven per-share average forecast of analysts surveyed by Seeking Alpha.
Everi said its latest fourth-quarter result included $2 million in pretax charges related to facilities consolidation and the write-off of inventory. The year-earlier result included a $6.4 million pretax charge related to a litigation settlement and $1.6 million of additional charges.
Adjusted earnings before interest, taxes, depreciation and amortization, a cash flow measure that excludes one-time costs, fell 3.2% to $61.2 million from $63.2 million. Fourth-quarter revenue fell 17.6% $119.6 million from $145.2 million, but topped the $115.8 million average forecast of Seeking Alpha-polled analysts.
“Despite the ongoing impact of the pandemic, our games-development teams continue to create original, entertaining, in-demand games that provide memorable player experiences,” Everi CEO Michael Rumbolz said. “At the same time, our fintech development teams are achieving consistent progress in the creation of a fully integrated digital neighborhood for casinos that drives improved operational efficiencies and creates seamless, convenient player transactions.”
Fourth-quarter games-segment revenue fell 15.8% to $64.9 million from $77.1 million a year earlier. Everi said the decrease reflected a drop in electronic gaming machine sales, as casino operators conserved cash to mitigate COVID-19’s impact. Fourth-quarter financial technology revenue fell revenue 19.7% to $54.7 million from $68.1 million.
On a positive note, Everi’s installed-game base at Dec. 31 increased by 1,034 units year-over-year to a record 15,745 units. The premium portion of the installed base increased by 26%, or 1,318 units, year over year. Everi credited the increase to additional placements of its “The Vault” game theme, and solid performance of other premium game themes including “Smokin Hot Stuff Wicked Wheel” and “Shark Week.” Premium units represented 41% of the total installed base at quarter-end compared with 35% a year ago.
Chief Financial Officer and Executive Vice President Mark Labay said the recent repricing of $735.5 million of its senior secured term loan in February 2021 will save approximately $1.8 million in annualized interest costs at current rates.
For the full year ended Dec. 31, Everi had a net loss of $81.7 million, or 96 cents per share, down from net income of $16.5 million, or 21 cents per diluted share. Twelve-month revenue fell 17.3% $156.2 million from $188.8 million. Full-year results came from an 8-K filed with the Securities and Exchange Commission.
Everi shares rose 30 cents, or 2.11%, Tuesday to close at $14.51 on the Nasdaq. The shares rose an additional 49 cents, or 3.38 percent, to close at $15 in after-hours trading.
