Everi Holdings Inc, a provider of land-based and digital casino gaming content and products, financial technology, and loyalty solutions, has reported record financial results for the second quarter of 2021.
For Q2, which ended June 30, 2021, the company’s revenue, net income, adjusted EBITDA, and free cash flow are all slightly higher than expected and an improvement year-on-year, reflecting continued strength in casino patron demand whilst still managing the impact of the COVID-19 pandemic.
CEO Michael Rumbolz stated: “The record 2021 second quarter results reflect the substantial benefit of our execution of our ongoing growth initiatives, as well as improvement in industry trends.
“The strong momentum to-date this year in revenues, earnings and cash flow is being driven by consistent improvements in our Games and FinTech segment operating performance, demonstrating yet again the substantial demand that exists for our high-value products.”
Since Q2 2020 was severely impacted by casino closures related to the pandemic, Everi believes it is more meaningful to compare Q2 2021 to Q2 2019.
Revenues rose 33% to a quarterly record of $172.6m (Q2 2019: $129.7m, Q2 2020: $38.7m), while net income improved 560% to a quarterly record of $36.2m (Q2 2019: $5.5m, Q2 2020: $68.5m loss), or $0.36 per diluted share (Q2 2019: $0.07 per diluted share, Q2 2020: $0.8 loss per diluted share).
Adjusted EBITDA, a non-GAAP financial measure, increased 44% to a quarterly record of $92.5m (Q2 2019: $64.1m, Q2 2020: $3.3m), and free cash flow, a non-GAAP financial measure, increased 462% to $39.2m (Q2 2019: $7m, Q2 2020: $26.7m loss).
After quarter-end, the firm completed a successful refinancing that reduced total debt to $1bn, decreased cash interest costs, and extended maturities.
Rumbolz added: “A key highlight of our significant growth compared to pre-pandemic periods is the strength of our recurring revenue streams, which comprise an increased percentage of our overall business mix. This revenue is a significant contributor to our growing free cash flow, which in turn has allowed us to dramatically lower our net leverage.
“Accordingly, we are favorably positioned to prudently invest in both internal product innovation and complementary, high-return, accretive acquisitions that will support our future growth.”
CFO Mark Labay commented: “Our improved performance positioned us to obtain a strong response from the capital markets for our recent debt refinancing, including credit rating agency upgrades of all our newly issued debt instruments. This resulted in lower borrowing rates and extended debt maturities.
“Upon completion of this successful refinancing, at current interest rates, our annualized cash interest costs will now be approximately $23m less than at June 30, 2021. We expect our lower annual interest will contribute to the sustainability and further growth of our free cash flow.”
