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Jun 30, 2020
Everi Q2 2020 Earnings Report
Achieved better-than-expected results with a return to positive Adjusted EBITDA, driven by swift actions to reduce operating costs and preserve liquidity.
Key Takeaways
Everi Holdings Inc. reported a decrease in revenue to $38.7 million compared to $129.7 million a year ago, and a net loss of $68.5 million, or $0.80 per diluted share. However, the company achieved positive Adjusted EBITDA of $3.3 million and expects to generate positive free cash flow in the third quarter.
Revenue was $38.7 million, compared to $129.7 million a year ago.
Net loss was $68.5 million, or a loss of $0.80 per diluted share, inclusive of $14.8 million of pre-tax charges.
Adjusted EBITDA was $3.3 million compared to $64.1 million a year ago, driven by positive contributions from both the Games and FinTech segments.
Cash and cash equivalents increased to $257.4 million at June 30, 2020, from $49.9 million at March 31, 2020.
Everi
Everi
Everi Revenue by Segment
Revenue by Segment
Games Revenue
CapyFin.comFinTech Revenue
CapyFin.com Forward Guidance
Everi expects to generate positive Adjusted EBITDA in the 2020 third quarter and now expects to return to Free Cash Flow generation in the third quarter.
Positive Outlook
- Return to Free Cash Flow generation in the third quarter.
- Operational and product development initiatives will support goal of enhancing shareholder value.
- Cash access portion of FinTech business is processing same-store transactional volumes at levels that are, on average, only moderately below the prior-year.
- Benefit from the 636-unit growth in installed premium games since the beginning of 2020.
- Products and services continue to reflect a return to the performance momentum we were achieving before COVID-19.
Challenges Ahead
- Impact of the ongoing COVID-19 global pandemic on business, operations and financial condition
- History of net losses and ability to generate profits in the future
- Substantial leverage and the related covenants that restrict operations
- Ability to generate sufficient cash to service all indebtedness, fund working capital, and capital expenditures
- Ability to withstand unanticipated impacts of a pandemic outbreak of uncertain duration
Revenue & Expenses
Visualization of income flow from segment revenue to net income