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Everi Results Affected by Covid-19, But Top Estimates

Everi Results Affected by Covid-19, But Top Estimates

Gaming supplier Everi Holdings Inc. posted a second-quarter net loss of $68.5 million compared to net income of $5.5 million in the same period last year, and a net loss of $13.5 million in the first quarter of 2020. However, the company’s CEO had better news in a positive pre-tax earnings report, thanks to cost-cutting measures.

The loss was caused by casino closures in Everi’s key markets due to the Covid-19 pandemic, the company reported.

The net loss included $14.8 million in pre-tax charges associated with asset write-offs and write-downs, severance, facility consolidation and business restructuring costs to streamline operations and improve the group’s cost structure, Everi said in a press release.

Revenue for the reporting period was $38.7 million compared to $129.7 million a year ago. “The closing of casinos due to the Covid-19 pandemic resulted in revenues declining to essentially zero until the casinos began to slowly reopen in May with the pace steadily ramping through June,” the company said in the release.

Adjusted earnings before interest, taxation, depreciation and amortization (EBITDA) was $3.3 million for the three months to June 30, compared to $64.1 million in the prior-year period. The result was driven by positive contributions from both the games and fintech segments, said Everi.

“We achieved better-than-expected results in the second quarter, including a return to positive adjusted EBITDA more quickly than we anticipated at the beginning of the quarter,” said Everi CEO Michael Rumbolz, in a statement accompanying the earnings release.

He said a variety of “swift actions” to reduce costs and preserve liquidity resulted in the positive EBITDA. “In addition, as our customers began to reopen faster than previously expected, we benefited from our prior investments in technology innovations and game development through the strong performance of our fintech solutions and installed base of recurring-revenue games,” Rumbolz said.