Everi Holdings President Randy Taylor was asked by an analyst Monday what kind of car he was driving this quarter.
Pre-pandemic, when Everi’s stock was around $14 a share, Taylor said he said the company was flying along like a Ferrari on the open road. During the recovery, as casinos began to reopen across the country following several months of COVID-19 influenced shutdowns, Taylor said the gaming equipment and financial services provider was like a jeep traveling along rugged terrain.
Taylor didn’t provide a car comparison for Everi as the company announced its third quarter earnings, but he said the road to recovery has gotten much smoother.
Las Vegas-based Everi said its quarterly numbers, while lower than third quarter results from 2019, were sequentially better than the second quarter, which was heavily impacted by the COVID-19 shutdowns.
Everi CEO Mike Rumbolz said the company’s results signified a “faster-than-expected recovery,” acknowledging the regional and tribal casinos utilizing the company’s games and equipment, from which Everi earns a share of the revenue streams.
“Our third quarter results also demonstrate that the focus on our long-term strategies and investments across our product portfolio have positioned us to continue to grow both of our business segments going forward,” Rumbolz said.
In the quarter that ended Sept. 30, Everi’s total revenues were $112.1 million, a decline of 16.7% compared to the third quarter in 2019, but almost three times higher than the company’s second quarter results.
Other quarterly figures marked a similar comparison.
Operating income was $19.7 million, down 27.8% from a year ago, but a much more pleasing number compared to an operating loss of $52.7 million in the second quarter. Everi recorded a net loss of $900,000, far below the net income of $9.3 million a year ago. However, the figure was a significant improvement over the $68.5 million net loss the company posted in the second quarter.
Rumbolz said the sales of premium Everi slot machines increased by 40% in the quarter, “largely reflecting a return to the strong, pre-pandemic performance levels of our active units”
He spent a fair amount of time on the call addressing Everi’s “digital neighborhood,” a term which encompasses more than just its cash access solutions and kiosks; it also integrates loyalty programs, and includes the introduction of a comprehensive mobile wallet that he termed “the next step forward” in “offering convenience for players and significant cost efficiencies for operators.”
With the casino industry, its operators and customers newly focused on digital technology and cashless gaming solutions, Rumbolz said Everi’s product “is a convergence of our digital cash access funding capabilities with our digital player loyalty services.”
Calling it both “a mobile app and true digital wallet,” Everi executives said the product can act as the hub for payments from the gaming floor, food and beverage, retail, hotel rooms, and resort amenities.
“It can even provide the funds for players to engage with an operator’s online retail and entertainment channels, such as iGaming and online sportsbooks,” Rumbolz said.
He said the mobile wallet would “go live” with two tribal casino operators this month.
Shares of Everi closed at $9.03 on the New York Stock Exchange Monday, up 42 cents or 4.88%.
Howard Stutz is the executive editor of CDC Gaming. He can be reached at hstutz@cdcgaming.com. Follow @howardstutz on Twitter.
