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Everi reported US$82.1-million loss in 2020

Casino equipment supplier Everi Holdings Ltd slipped to a US$82.1-million loss in 2020, compared to making a US$17.7-million profit in 2019, amid what it described as the “continued impact from the Covid-19 pandemic and related casino closures”.

In the fourth quarter, the group’s net income improved year-on-year. Such income for the three months to December 31 was positive by US$1.1 million, versus a US$4.1 million loss in the prior-year period, it said in a Tuesday filing in the United States.

The net loss in the 2019 fourth quarter had included a US$6.4 million pre-tax charge related to a litigation settlement and US$1.6 million of additional charges.

Everi’s fourth-quarter 2020 revenues rose to US$119.6 million sequentially from US$112.1 million in the third quarter.

Judged year-on-year, fourth-quarter revenues were down 17.6 percent on the US$145.2 million achieved a year earlier.

The latest fourth-quarter adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA), a non-GAAP financial measure, increased to US$61.2 million from US$59.8 million in the 2020 third quarter. Adjusted EBITDA was US$63.2 million in the 2019 fourth quarter.

“The quarterly sequential increase in revenues, net income and adjusted EBITDA achieved in the fourth quarter reflects the strength and balance of our businesses, in particular our significant percentage of higher-margin recurring revenues,” said Michael Rumbolz, Everi’s chief executive, in prepared remarks contained in the results.

Fourth-quarter 2020 games segment revenues were US$64.9 million, compared to US$77.1 million in the fourth quarter of 2019, “primarily reflecting a decrease in electronic gaming machine sales due to ongoing capital conservation efforts by casino operators as they sought to mitigate the impact of the Covid-19 pandemic,” said the firm.

Everi’s installed base of gaming machines as of December 31 had increased by 1,034 units year-on-year and by 489 units on a quarterly sequential basis to a “record” 15,745 units, said the company.

“A key factor behind the momentum in our games segment has been the quarterly sequential growth throughout 2020 in the total installed base of our gaming operations, as well as the increases in daily win per unit of our active units,” said Mr Rumbolz in his commentary.

Gaming operation revenue was nearly US$49.7 million compared to US$50.5 million in the prior-year period, “inclusive of the impact from casino closures and inactive units at open casinos, due to social distancing requirements,” said the firm.

The principal amount of Everi’s outstanding debt as of December 31, was just under US$1.15 billion, versus just over US$1.12 billion, 12 months earlier. The filing made no mention of a dividend.

In January the firm had said it was looking to take advantage of “favourable market conditions” to lower its cost of debt by repricing US$735.5 million of its first-lien term loan due in 2024.

The group held net cash of US$139.1 million as of December 31, compared to US$126.1 million a year earlier.