Las Vegas-based gaming-equipment and cash-access provider Everi Holdings enjoyed a huge COVID bounce-back in the second quarter. Quarterly revenue, net income, earnings per share, and adjusted cash flow all hit record highs and company officials touted a refinancing it said will enable future success.
In a statement, Everi said its net income was $36.2 million, or 36 cents per diluted share, for the three months ended June 30, reversing a year-earlier loss of $68.5 million, or 80 cents per share.
The latest result topped the 33 cents per share consensus estimate of analysts surveyed by Seeking Alpha.
Adjusted earnings before interest, taxes, depreciation and amortization, a cash flow measure that excludes one-time costs, surged to $92.5 million from $3.3 million.
Revenue rose more than fourfold to $172.6 million from $38.7 million and topped the $35 million forecast of Seeking Alpha-polled analysts.
“Our results were even slightly ahead of the expected range that we announced in June in conjunction with our refinancing activity,” CEO Michael Rumbolz said in a conference call with analysts and journalists.
“Operationally, our excellent performance clearly demonstrates that the complementary nature of our games and (financial technology) segments has never been stronger.”
In Everi’s games segment, revenue increased to a quarterly record $99.3 million from $20.9 million a year earlier and gaming-operations revenue grew to $73.2 million, another record, from $13.9 million a year earlier. Daily win per unit rose to a quarterly record $45.66 in 2021’s second quarter of 2021 from $9.84 a year earlier.
Everi’s installed-games base as of June 30 increased by 9% or 1,313 units, year to year.
In Everi’s financial-technology segment, second-quarter revenue rose to a record $73.2 million from $17.8 million a year earlier. Increased revenue from financial-access services boosted the latest overall result.
Financial-access-services revenue, which includes cashless and cash-dispensing debit and credit-card transactions and check services, rose 16% to $44.8 million from $10 million, reflecting continued improvements in casino activity.
As the quarter ended, Everi made a series of refinancing transactions that reduced overall debt by $1 billion.
Rumbolz said in opening remarks that the company has never been in better shape. “We’re in a position right now where we have been continuously growing for the last several years, and we’ve been doing it in a combination of both organic and acquisition-related product sets,” Rumbolz said later during the question-and-answer session. “We continue to look at … additional products that may have been developed outside of our company … that would fit well with our digital platform.”
Everi Holdings shares rose 31 cents, or 1.43%, Monday to close at $22.02 on the New York Stock Exchange in regular trading, but fell 2 cents, or 0.09%, to settle at $22 after hours. The company’s shares have risen 67.8% in 2021.
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