The management and board of directors of gaming supplier Everi Holdings Inc. have implemented measures “to maintain balance sheet flexibility and preserve liquidity,” given the disruption caused by the Covid-19 virus and resulting casino shutdowns.
In April, the company announced targeted furloughs and company-wide salary reductions. It also drew down $35 million on its revolving credit facility to provide additional near-term liquidity and canceled or delayed material capital expenditures.
Everi President and CEO Michael Rumbolz cut his salary to zero and the executive team elected to reduce their salaries by 70 percent. The effect of those actions lowered the company’s future cash payroll expenses to less than $2 million per month.
“As we face the challenges presented by Covid-19, the health and welfare of our teams, our customers, their guests and people everywhere are of our utmost concern,” said Rumbolz. “With essentially all revenue and the associated workload having been reduced to near zero and limited visibility as to when our customers may reopen for business, we have taken decisive actions appropriate for the current level of business and to prepare our company to withstand a potentially prolonged period of minimal industry activity.”
He said the layoffs “are the appropriate steps to preserve our liquidity and manage our business in the current environment.
“We expect these to be temporary but prudent steps, designed to ensure that Everi is best positioned to withstand this disruption and will be prepared to support our customers once they begin to reopen their facilities. We are also reviewing options to obtain additional capital resources on acceptable terms to provide additional financial flexibility.”
Rumbolz said he and others at the company look forward “to resuming normal operations as soon as conditions permit and regaining our pre-pandemic momentum to get back on track for a bright and successful future.”