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Everi Announces Selected Preliminary Fourth Quarter 2020 Results in Connection With Opportunity to Reprice a Portion of Its Outstanding Debt

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LAS VEGAS, Jan. 26, 2021 (GLOBE NEWSWIRE) — Everi Holdings Inc. (NYSE: EVRI) (“Everi” or the “Company”), a premier provider of land-based and digital casino gaming products, financial technology and player loyalty solutions, today announced selected preliminary financial results for the fourth quarter and full year ended December 31, 2020, in connection with an opportunity to take advantage of favorable market conditions to lower its cost of debt by repricing $735.5 million of its First Lien Term Loan due 2024. While the expected results demonstrate sequential improvement, the preliminary 2020 fourth quarter results reflect continued impact from the COVID-19 pandemic and related casino closures.

The Company expects 2020 fourth quarter consolidated revenues to be in a range of approximately $117 million to $121 million reflecting quarterly sequential improvement from $112.1 million in the 2020 third quarter. Revenues were $145.2 million in the 2019 fourth quarter. The Company expects its quarterly net loss to be in a range of $1.4 million to $0.3 million, inclusive of approximately $1.5 million in pre-tax charges related to the consolidation of certain facilities and the write-off of certain inventory. This compares to a net loss of $0.9 million in the 2020 third quarter and a net loss of $4.1 million in the 2019 fourth quarter, which included the impact of a $6.4 million pre-tax charge for litigation settlement and approximately $1.6 million of additional charges.

The Company further expects that Adjusted EBITDA, a non-GAAP financial measure, will be in a range of $60 million to $62 million for the 2020 fourth quarter, compared to $59.8 million in the 2020 third quarter, and $63.2 million in the 2019 fourth quarter.

Reflecting the significant impact of the pandemic’s effect on the casino and hospitality industry throughout the year, revenue for 2020 is expected to be in a range of $381 million to $385 million with net loss in a range of $85 million to $83 million compared with revenues of $533.2 million and net income of $16.5 million in 2019.

Michael Rumbolz, Chief Executive Officer of Everi, said, “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. 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. This includes our efforts to innovate new products that help our customers extend the connection with their guests and operate more efficiently. The combination of our improved operating performance and the ongoing benefits of our cost-enhancement initiatives is expected to result in Free Cash Flow that is approximately triple the amount we reported in last year’s fourth quarter. 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.”

The preliminary unaudited results noted in this release are derived from preliminary internal financial reports and are subject to revision based on the Company’s procedures and controls associated with the completion of its year-end financial reporting, including all the customary reviews and approvals, and completion of the audit by the Company’s independent registered public accounting firm of its audit of such financial statements for the year ended December 31, 2020. Accordingly, actual results may differ from these preliminary results and such differences may be material. The Company currently anticipates releasing its 2020 fourth quarter and full year results on March 9, 2021 after the market close.

The Company is sharing these preliminary financial results in connection with a potential repricing transaction, in which it would take advantage of favorable market conditions to negotiate and reprice its $735.5 million of First Lien Term Loan.

Cautionary Note Regarding Forward-Looking Statements

The preliminary unaudited 2020 fourth quarter and full year results noted above are derived from preliminary internal financial reports and are subject to revision upon the completion of the Company’s customary financial reporting process, including customary reviews, internal audit procedures and approvals. Accordingly, actual results may differ from these preliminary results and such differences may be material.

This press release contains “forward-looking statements” as defined in the U.S. Private Securities Litigation Reform Act of 1995. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as “goal,” “target,” “future,” “estimate,” “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “project,” “may,” “should,” or “will” and similar expressions to identify forward-looking statements. Examples of forward-looking statements include, among others, statements the Company makes regarding its ability to reprice its outstanding $735.5 million aggregate principal First Lien Term Loan that matures in 2024, its expectation that the proposed repricing transaction will lower its annual cash interest expense and enhance its financial flexibility, its expectations regarding its 2020 fourth quarter and annual results of operations.

The forward-looking statements in this press release are subject to additional risks and uncertainties, including those set forth under the heading “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our filings with the Securities and Exchange Commission (the “SEC”), including, without limitation, our Annual Report on Form 10‑K for the fiscal year ended December 31, 2019 filed with the SEC on March 2, 2020 and subsequent periodic reports, and are based on information available to us on the date hereof.

These cautionary statements qualify our forward-looking statements and you are cautioned not to place undue reliance on these forward-looking statements. Any forward-looking statement contained herein speaks only as of the date on which it is made, and we do not intend, and assume no obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

This press release should be read in conjunction with our most recent reports on Form 10‑K and Form 10‑Q, and the information included in our other press releases, reports and other filings with the SEC. Understanding the information contained in these filings is important in order to fully understand our reported financial results and our business outlook for future periods.

Non-GAAP Financial Information

In order to enhance investor understanding of the underlying trends in our business, our cash balance and cash available for our operating needs, and to provide for better comparability between periods in different years, we are providing in this press release Adjusted EBITDA, and Free Cash Flow, which are not measures of our financial performance or position under United States Generally Accepted Accounting Principles (“GAAP”). Accordingly, Adjusted EBITDA, and Free Cash Flow should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP and should be read in conjunction with our net earnings (loss), operating income (loss), basic or diluted earnings (loss) per share and cash flow data prepared in accordance with GAAP.

We define Adjusted EBITDA as earnings (loss) before interest, taxes, depreciation and amortization, non-cash stock compensation expense, accretion of contract rights, the write-off of inventory, property and equipment and intangible assets, the adjustment of certain purchase accounting liabilities, non-recurring professional fees, value added tax refunds net of related professional fees, a litigation settlement charge, certain non-cash inventory write-off charges and certain office consolidation gains and expenses. We present Adjusted EBITDA as we use this measure to manage our business and consider this measure to be supplemental to our operating performance. We also make certain compensation decisions based, in part, on our operating performance, as measured by Adjusted EBITDA; and our credit facility, senior secured notes and senior unsecured notes require us to comply with a consolidated secured leverage ratio that includes performance metrics substantially similar to Adjusted EBITDA.

A reconciliation of the Company’s expected net loss per GAAP to Adjusted EBITDA for the fourth quarter of 2020 and the actual net loss per GAAP to Adjusted EBITDA for the fourth quarter of 2019 is provided at the end of this release.

We define Free Cash Flow as Adjusted EBITDA less cash paid for interest, cash paid for capital expenditures, cash paid for placement fees, and cash paid for taxes net of refunds. We present Free Cash Flow as a measure of performance and believe it provides investors with another indicator of our operating performance. It should not be inferred that the entire Free Cash Flow amount is available for discretionary expenditures.

A reconciliation of the Company’s net income per GAAP to Adjusted EBITDA and Free Cash Flow is included in the Unaudited Reconciliation of Net Income to EBITDA and Adjusted EBITDA and to Free Cash Flow provided at the end of this release. Additionally, a reconciliation of each segment’s operating income to EBITDA and Adjusted EBITDA is also included. On a segment level, operating income per GAAP, rather than net earnings per GAAP, is reconciled to EBITDA and Adjusted EBITDA as the Company does not report net earnings by segment. Management believes that this presentation is meaningful to investors in evaluating the performance of the Company’s segments.

About Everi

Everi (NYSE: EVRI) is a leading supplier of imaginative entertainment and trusted technology solutions for the casino and digital gaming industry. Everi’s mission is to transform the casino floor through innovative gaming and financial technology and loyalty solutions. With a focus on both land-based and digital gaming operators and players, the Company develops entertaining games and gaming machines, gaming systems and services that facilitate memorable player experiences, and is a preeminent and comprehensive provider of financial products and services that offer convenient and secure cash and cashless-based financial transactions, self-service player loyalty tools and applications, and intelligence software and other intuitive solutions that improve casino operational efficiencies and fulfill regulatory compliance requirements. Everi provides these products and services in its effort to help make customers even more successful. For more information, please visit www.everi.com, which is updated regularly with financial and other information about the Company.

CONTACTS
Investor Relations
 
Everi Holdings Inc.
William Pfund
SVP, Investor Relations
702-676-9513 or [email protected] 
JCIR
Richard Land, James Leahy
212-835-8500 or [email protected] 


EVERI HOLDINGS INC. AND SUBSIDIARIES
UNAUDITED RECONCILIATION OF NET LOSS TO EBITDA AND ADJUSTED EBITDA
AND FREE CASH FLOW
($ in thousands)
 
  Three Months Ended December 31,
  2020   2019
  Expected Range   Actual Reported
Net loss $ (1,400 )   $ (300 )   $ (4,144 )
Income tax provision (benefit) 800     (500 )   2,224  
Loss on extinguishment of debt         179  
Interest expense, net of interest income 18,300     18,400     17,714  
Operating income $ 17,700     $ 17,600     $ 15,973  
           
Plus: depreciation and amortization 35,700     37,000     34,930  
EBITDA $ 53,400     $ 54,600     $ 50,903  
           
Non-cash stock compensation expense 2,800     3,000     3,716  
Accretion of contract rights 2,300     2,500     2,170  
Write-off of inventory, property and equipment and intangible assets 700     900     425  
Adjustment to certain purchase accounting liabilities         (129 )
Non-recurring professional fees and other, net         (281 )
Litigation settlement accrual         6,350  
Office and warehouse consolidation, net 800     1,000      
Adjusted EBITDA $ 60,000     $ 62,000     $ 63,154  
           
Cash paid for interest (22,100 )   (22,400 )   (25,274 )
Cash paid for capital expenditures (24,600 )   (23,500 )   (32,649 )
Cash paid for placement fees     (100 )    
Cash paid for income taxes, net of refunds (800 )       (763 )
Free Cash Flow $ 12,500     $ 16,000     $ 4,468  

With an experience of over 8 years in the online gambling industry, as an affiliate, later affiliate manager and consultant, I consider myself a veteran of the industry and can guarantee that you will be served with the most accurate information.

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Push Gaming enjoys further Spanish market growth with Bally’s Interactive

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B2B gaming supplier Push Gaming has significantly amplified its European presence, launching its portfolio of hit titles in Spain with the prominent operator Bally’s Interactive. This strategic move is part of the studio’s broader growth strategy to appeal to a wider range of markets and player profiles.

Bally’s Interactive now has access to a variety of Push Gaming titles, including legacy hits such as Jammin’ Jars and Wild Swarm, along with all of the supplier’s expansive roadmap of high-quality new games like recent hit Wild Swarm Triple Hive

The Spanish activation builds upon an already robust collaboration between the two across the highly competitive UK market. Push Gaming is strategically focused on supporting its partners in newly regulated and key existing markets to achieve significant market share.

This latest launch will enable Push to further harness the impact of iGaming in Spain. According to the latest reports from the national regulator Dirección General de Ordenación del Juego (DGOJ), 2024 saw record-breaking performance with GGR reaching a high of €1.45 billion, representing a substantial 17.6% increase from the previous year. Online casinos were the primary source of this revenue, generating €730.7 million in GGR (up 17%), with slots contributing €472.2 million.

This partnership showcases Push Gaming’s commitment to expanding its reach across key regulated global territories and driving the Push Gaming brand in line with its ambitious growth strategy.

Joanna Wren, Senior Commercial Operations Manager at Push Gaming, said: “Launching our portfolio in Spain with Bally’s Interactive continues our growth in Europe. Strengthening our partnership with this top-tier operator boosts our confidence for a successful future in the region.

“Our goal is to achieve significant market share by developing our game range to suit a wide variety of player profiles while maintaining the high quality we are known for. We’re confident that our established localisation strategy, combined with our exciting slot content and Bally’s Interactive’s outstanding support, will ensure our titles resonate strongly with players and drive significant growth in the region.”

Richard Harris, CCO at Bally’s Interactive, said: “We are excited to introduce Push Gaming titles to our platform and are proud to host its brand in Spain. Its games align perfectly with our commitment to providing Spanish players with the highest quality and most entertaining casino content.

“Given the impressive performance of Push Gaming’s titles with our UK brands, we believe its content will attract players and help maintain our success in this vibrant market.”

The post Push Gaming enjoys further Spanish market growth with Bally’s Interactive appeared first on European Gaming Industry News.

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Betandyou supports the Legends Charity Game in Lisbon

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Betandyou is proud to announce its support for Legends Charity Game, a spectacular charity football match taking place at the iconic José Alvalade Stadium, bringing together over 50,000 fans in the stands and millions more watching online and on TV across the globe.

This is more than just a match, it’s a historic meeting of football legends. The pitch will host some of the greatest names in football history, including Kaká, Roberto Carlos, Carles Puyol, Del Piero, John Terry, Michael Owen, Petr Čech, and many others. Led by Peter Schmeichel and Diego Lugano, the World Legends will face the Portugal Legends, delivering a once-in-a-lifetime football spectacle.

But the true goal is charity. The event aims to raise over €1,000,000 to support children and families in Ukraine, Portugal, and around the world. Every goal scored, every cheer from the stands, and every contribution will help transform lives.

As a proud donor of the tournament, Winandyou contributed €10000, reinforcing its commitment to unity, support, and social responsibility. For us, it is not only about creating opportunities within the betting and affiliate industry, but also about making a meaningful difference where it matters most.

“We are proud to support such a significant event. The Legends Charity Game brings millions of people together and proves that sport has the power to change the world. For Betandyou, this is a chance to contribute to a greater cause and support those in need,” CEO of the company stated.

The Legends Charity Game is more than football. It’s a game where legends of the past help shape a brighter future.

The post Betandyou supports the Legends Charity Game in Lisbon appeared first on European Gaming Industry News.

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1/ST CONTENT and Italy’s MASAF form new partnership ahead of the Breeders’ Cup

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Distribution deal sees leading racing provider for the Americas extend its scope into Italy’s local pool betting via governing body for horse racing

1/ST CONTENT, the pre-eminent provider of premium North and South American horse racing content and a key division of 1/ST, has continued to grow its international footprint in a new partnership with the Italian Ministry of Agriculture, Food Sovereignty and Forestry (MASAF) in the run-up to the Breeders’ Cup World Championships, one of the true highlights on the global racing calendar.

The deal now opens a breakthrough gateway for local pool betting on North American, South American and Turkish racing in Italy – and was soft-launched over last month’s 100th edition of the Hambletonian at The Meadowlands, NJ. This milestone renewal, the pinnacle of harness racing and a format of the sport which is particularly popular with Italian racing fans, fostered immediate fan engagement, as reported by MASAF this month via https://www.grandeippicaitaliana.it/.

The agreement kicks off with the 2025 flagship finale at the Breeders’ Cup World Championships in Del Mar (31 October – 1 November) and brings many of the premier stateside races to Italy, including the Pegasus World Cup (24 January) and the Triple Crown contests of Preakness 151 (16 May) and the Belmont Stakes (6 June). In the aggregate, 1/ST CONTENT’s extensive content portfolio maps approximately 90% of all North American racetracks, alongside South American and Turkish venues, neatly complementing Italy’s domestic sporting action with a reliable source of fast-settling betting content between 18:00 and 05:00 CET.

Italian and North American horse racing currently enjoy a strong reciprocal bond, thanks to three of Italy’s leading jockeys in Frankie Dettori, Umberto Rispoli and Antonio Fresu plying their trade in North America. These three Italian ambassadors were recently introduced to a mainstream global audience via Netflix’s acclaimed Race For The Crown.

1/ST CONTENT’s worldwide experience and customer base for pools betting features the Americas, Morocco, Italy, Singapore, Australia, Turkey, Sweden, France, New Zealand and Hong Kong. As a result, by leveraging 1/ST CONTENT’s unparalleled expertise in capturing and streaming elite live-racing events, bettors across Italy can now enjoy a best-in-breed international racing experience.

Key features of the deal include but are not limited to:

  1. Comprehensive Coverage: exclusive signals of all racetracks in the United States, Canada, South America and Turkey, ensuring an extensive and diverse range of racing content for Italian audiences.
  2. Cutting-Edge Technology: high-quality, immersive broadcasts, providing viewers with an unparalleled access to live racing and informative content that both engages the seasoned viewer and educates those unfamiliar with the sport.
  3. Enhanced Viewer Engagement: accompanying innovative marketing strategies, promotions, and engagement initiatives, enhancing the overall viewer experience and speaking to a dedicated racing community in Italy

Simon Fraser, Senior Vice President International at 1/ST CONTENT, said: “We’re thrilled to be working as a partner with MASAF on a program to rejuvenate their horse racing audience and breathe new life into the Italian industry. Our collaboration marks a cornerstone from which we can build together to ensure that racing is competitive with other betting options and further expands 1/ST’s global reach.”

Remo Chiodi, Director General for Horse Racing at MASAF, added: “This partnership is part of a broader framework aimed at strengthening relations between Italy and the United States in the horseracing sector: it is a path that consolidates ties between the two countries, enhances both our national excellence and international achievements, and opens up new opportunities for growth and exchange. It is a step that also involves breeding and training, while highlighting the image of Italian racing excellence in the United States, represented by our most renowned jockeys competing overseas.

“Thanks to this agreement, major American racing events will be broadcast free-to-air on EQU TV, expanding the television offering and allowing betting on the races within a fully integrated system. After years of challenges, Italian racing is redefining the entire sector to restore our sport to a position of strength, both at home and abroad.”

The post 1/ST CONTENT and Italy’s MASAF form new partnership ahead of the Breeders’ Cup appeared first on European Gaming Industry News.

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