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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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G2 and Logitech G Team Up for Logitech G PLAY 2025: A Celebration of Breakthrough Moments and Women in Esports

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G2 Esports and Logitech G join forces for Logitech G PLAY 2025, Logitech G’s annual flagship event, set to take place on September 17 at 18:45 CEST. This year’s event celebrates Breakthrough Moments in play, and highlights the importance of diversity, inclusion, and empowerment in esports and gaming.

The event kicks off with a Logitech G Keynote, broadcast on YouTube via @LogitechG, and sets the tone for the evening highlighting new products, new designs and innovations for gamers, and the future of esports.

Following the Keynote, G2 will host a panel featuring leading women in the industry, and will dive into the defining breakthrough moments that have shaped these women’s careers, as well as the broader challenges and opportunities for women in esports.

  • Laure Valée – On-Air Talent
  • Athena “Kitty” Jiang – Influencer and content creator
  • Michaela “mimi” Lintrup – Professional VALORANT player and G2 Gozen captain
  • Petra “Petra” Stoker – Professional VALORANT player for G2 Gozen
  • Hosted by ChelseaBytes – G2 content creator and advocate for diversity in gaming

The panel will be broadcast from the G2 HQ in Berlin on mimi’s Twitch channel – mimimimichaela, and feature a Q&A from the live audience. If you’re local to Berlin and would like to attend, let us know and we can add you to the guestlist.

Event Details:

  • Date: Wednesday 17 September
  • Time: 18:45 CEST
  • Location: Berlin @ G2 HQ, online mimimimichaela, and keynote via @LogitechG
  • Agenda: Logitech G Keynote, G2 Panel

 

The post G2 and Logitech G Team Up for Logitech G PLAY 2025: A Celebration of Breakthrough Moments and Women in Esports appeared first on European Gaming Industry News.

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Gaming Americas Weekly Roundup – September 8-15

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Welcome to our weekly roundup of American gambling news again! Here, we are going through the weekly highlights of the American gambling industry which include the latest news and new partnerships. Read on and get updated.

Latest News

IGT announced that its much-anticipated Wheel of Fortune Big Money Spin electronic table game (ETG) recently made its world debut at Downtown Grand Casino in Las Vegas, Nev. The vibrant standalone ETG game includes many of the attributes that have propelled the success of the Wheel of Fortune slots franchise for nearly three decades including word puzzles, wheel spins and exciting jackpot rewards. The game is accompanied by an attention-grabbing, 9-plus-feet upright video wheel that stands independent of the ETG terminals and entertains casino guests with the famous “WHEEL-OF-FORTUNE!” chant.

MGM Resorts International has announced that Corey Sanders, Chief Operating Officer, will retire from the company after more than 30 years of dedicated service and leadership. Sanders has agreed to remain COO through Dec. 31, 2025, and to serve as an advisor to the President and CEO through Dec. 31, 2026. The Company intends to name a new COO to serve as Sanders’ successor later this month. Sanders is currently MGM Resorts’ Chief Operating Officer, overseeing the company’s Las Vegas and regional properties as well as multiple corporate departments, including Hospitality, Gaming, Human Resources and Strategic Initiatives. Prior to that, he served as the company’s Chief Financial Officer and Treasurer.

Members of Kletsel Dehe Wintun Nation, the Sherwood Valley Rancheria of Pomo Indians, the Mechoopda Indian Tribe of Chico Rancheria and Big Lagoon Rancheria gathered outside the State Capitol in Sacramento to protest Assembly Bill 831 (AB 831). If passed, the bill would limit economic opportunities available to less wealthy tribes in the state by banning legitimate online social games using sweepstakes promotions. It would also eliminate more than $1 billion of existing economic activity generated by the industry in California, and close off a potential new revenue source for the state via sensible, modern regulation and taxation.

Partnerships

Genius Sports Limited has expanded its long-term partnership with Hard Rock Bet Sportsbook (Hard Rock Bet) to power the top-rated platform with its market-leading official data, trading and marketing solutions, as well as its ground-breaking BetVision product. Genius Sports has worked in partnership with the leading operator since 2021, providing the highest quality official data and pinpoint trading solutions across top tier leagues globally, including the Premier League, Serie A, European Leagues, Liga MX, NFL and more. Hard Rock Bet will be able to provide its customers with Genius Sports’ first-of-its-kind BetVision low latency streaming solution.

Quick Custom Intelligence (QCI), a leading provider of data-driven casino intelligence and player engagement platforms, has announced that Dania Beach Casino is continuing to benefit from its deployment of the QCI Nimble platform. While the property currently focuses on the QCI Host and QCI Marketing modules, it has expressed enthusiasm about the capabilities of the new AGI56 release and its impact on future customer engagement strategies. AGI56 represents the most ambitious release in QCI’s history, with the platform undergoing a full refresh of its technology stack, improved integration of advanced analytics, and the introduction of generative AI-driven tooling through Chatalytics.com. QCI’s platform is currently deployed in more than 350 casinos worldwide.

The post Gaming Americas Weekly Roundup – September 8-15 appeared first on European Gaming Industry News.

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🚀 Stellar Soft: From Africa’s Betting Shops to the Future of Global iGaming

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The iGaming industry is one of the fastest-changing landscapes in the world. New technologies, shifting regulations, and evolving player expectations create both challenges and enormous opportunities. In this environment, only those who dare to innovate, adapt, and partner wisely are able to thrive.

One company that embodies this journey is Stellar Bets — an ambitious software provider that began in Africa and is now preparing to reshape the future of retail betting in Europe. Our story is not just about creating games. It’s about building a complete ecosystem for operators, affiliates, and entrepreneurs — and opening doors for long-term partnerships across continents.

🌍 Humble Beginnings, Bold Vision

When we entered the African market, the industry was already crowded with solutions. Many thought there was little room left for innovation. But we believed otherwise.

From the start, we knew the secret to success wasn’t just about building games — it was about designing ecosystems. Operators needed more than entertainment; they needed reliable tools, sustainable margins, and technology that would support them in real conditions — including low internet speeds, limited hardware, and highly competitive retail environments.

Our first big step was the launch of Stellar Rocket, a crash game that quickly captured the imagination of African players. With stunning visuals, a dynamic multiplier, and an innovative balance between player wins and operator profitability, it became much more than just a game — it became a movement.

Within months, betting shops from Nigeria to Kenya were reporting higher engagement, stronger retention, and more stable revenue. The success of Stellar Rocket proved that innovation could transform even the most traditional retail setups.

📈 Growth Backed by Numbers

Success stories are powerful, but in iGaming the numbers matter most.

  • In 2024–2025, Stellar Bets expanded into more than 15 African countries.
  • Successfully achieved the ideal balance between player satisfaction and operator profitability with our Next-Gen RTP System.
  • Operators reported 30–45% revenue growth after integrating our solutions.

This growth wasn’t accidental. It came from a deep commitment to R&D, continuous improvement, and a philosophy that sees technology as a service to both operators and players.

And here’s the key: we didn’t just help operators earn more — we also made sure players enjoyed fairer, more exciting experiences. In a market where achieving both can be challenging, this balance clearly sets Stellar Bets apart.

🎮 Beyond Games: Building an Ecosystem

The heart of Stellar Bets has always been innovation, but we quickly realized that individual games are not enough. Operators need comprehensive solutions to scale their business.

That’s why we built an ecosystem:

  • Stellar Box — a plug-and-play solution that allows operators to deploy instantly.
  • Stellar Kiosk — an all-in-one machine with built-in computer and receipt printer.
  • Cloud-based admin tools — for user management, analytics, and cashier control.
  • Proprietary hardware — designed for stable operation even in areas with low bandwidth.
  • AI-powered RTP engine — balancing fairness for players and profits for operators.

And perhaps the most groundbreaking innovation of all — HomePlay.

📱 HomePlay: Bridging Offline and Online

Retail betting shops are still the heartbeat of many markets. But until recently, their biggest limitation was the number of physical terminals. Only so many customers could play at the same time.

With HomePlay, we changed that forever.

This breakthrough technology transforms every smartphone inside a betting shop into a personal gaming station. Customers join live Stellar Rocket sessions using their own devices, while the cashier desk continues to handle all deposits and withdrawals.

✅ No waiting lines.
✅ No need for extra hardware.
✅ Every customer becomes an active participant.
✅ Revenue per square meter grows exponentially.

In essence, HomePlay gave new life to retail betting, transforming it from a simple place to play into a vibrant community where thousands of players share emotions and experiences — while providing operators with a scalable, compliant, and seamlessly integrated tool.

For many partners, this feature alone was a game-changer — and it’s one of the clearest examples of how Stellar Bets delivers innovation designed for real-world business impact.

💡 The Secret Behind Our Success

One question we often get is: how can a startup compete with legacy companies in the iGaming space?

The answer is simple — being a startup is our biggest advantage.

🔹 Agility over bureaucracy — We test, pivot, and bring innovations to market quickly, while larger companies get stuck in long decision-making cycles.
🔹 Innovation in our DNA — We don’t just rely on proven models. We experiment, take risks, and introduce features that others are too slow to try.
🔹 Closer to the player — Our teams listen, analyze, and adapt in real time, creating products that reflect what players actually want.
🔹 Growth mindset — Every market matters. Every operator matters. Every affiliate matters. For us, every partnership is a chance to grow together.

🔹 Constant rapid development — We continuously expand our product portfolio, scale operations, and evolve to meet the needs of new markets.

But above all, we recognize the importance of technological excellence — investing in R&D, proprietary hardware, and resilient software that deliver security, stability, and reliability for both operators and players. It’s this mindset that has powered Stellar Bets from a small startup into one of the most recognized software providers in Africa.

🤝 Reshaping the Future of iGaming Together

After building a strong foundation across Africa, we are now preparing for the next chapter — entering the European market. We see great potential in several EU countries where many operators still depend on outdated systems and solutions.

Our goal is not just to expand, but to bring real value: technology that has proven itself in highly competitive retail environments, tools that balance innovation with compliance, and products that boost both player satisfaction and operator revenue.

For us, Europe is an opportunity to share what we’ve learned, adapt to new contexts, and grow together with forward-looking partners who are ready for benefit from:

✅ A personal account manager.
✅ 24/7 technical support.
✅ Access to a constantly evolving ecosystem.

We know our success depends on the success of our partners. That’s why we treat every collaboration as a joint venture — where both sides grow together.

And here’s our invitation: if you are looking for an iGaming software partner who delivers not just games, but full-scale solutions designed for growth — Stellar Bets is ready to work with you. Let’s reshape the future of iGaming — together.

📩 Contact us: [email protected]
🌐 Visit: stellar-bets.com
💼 LinkedIn: Stellar Bets

The post 🚀 Stellar Soft: From Africa’s Betting Shops to the Future of Global iGaming appeared first on European Gaming Industry News.

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