Everi Announces Selected Preliminary Fourth Quarter 2020 Results

Everi Holdings Inc., a premier provider of land-based and digital casino gaming products, financial technology and player loyalty solutions, today announced selected preliminary financial results for the fourth quarter and full year ended December 31, 2020, in connection with an opportunity to take advantage of favorable market conditions to lower its cost of debt by repricing $735.5 million of its First Lien Term Loan due 2024. While the expected results demonstrate sequential improvement, the preliminary 2020 fourth quarter results reflect continued impact from the COVID-19 pandemic and related casino closures.

The company expects 2020 fourth quarter consolidated revenues to be in a range of approximately $117 million to $121 million reflecting quarterly sequential improvement from $112.1 million in the 2020 third quarter. Revenues were $145.2 million in the 2019 fourth quarter. The company expects its quarterly net loss to be in a range of $1.4 million to $0.3 million, inclusive of approximately $1.5 million in pre-tax charges related to the consolidation of certain facilities and the write-off of certain inventory. This compares to a net loss of $0.9 million in the 2020 third quarter and a net loss of $4.1 million in the 2019 fourth quarter, which included the impact of a $6.4 million pre-tax charge for litigation settlement and approximately $1.6 million of additional charges.

The company further expects that Adjusted EBITDA, a non-GAAP financial measure, will be in a range of $60 million to $62 million for the 2020 fourth quarter, compared to $59.8 million in the 2020 third quarter, and $63.2 million in the 2019 fourth quarter.

Reflecting the significant impact of the pandemic’s effect on the casino and hospitality industry throughout the year, revenue for 2020 is expected to be in a range of $381 million to $385 million with net loss in a range of $85 million to $83 million compared with revenues of $533.2 million and net income of $16.5 million in 2019.

Michael Rumbolz, Chief Executive Officer of Everi, said, “Our preliminary 2020 fourth quarter results reflect quarterly sequential improvement highlighting the ongoing strength and balance of our business, as well as the benefit of our focus on consistent improvement in our operating execution. Even with increased casino closures and further restrictions on certain casino activities in the fourth quarter, the sequential progress of our expected financial and operating results demonstrate the significant improvements to our Games and FinTech product portfolios over the last several years. This includes our efforts to innovate new products that help our customers extend the connection with their guests and operate more efficiently. The combination of our improved operating performance and the ongoing benefits of our cost-enhancement initiatives is expected to result in Free Cash Flow that is approximately triple the amount we reported in last year’s fourth quarter. We expect our operating strength and momentum to continue in the 2021 first quarter, as casinos again begin to reopen and casino activities improve compared to 2020 fourth quarter levels.”

The preliminary unaudited results noted in this release are derived from preliminary internal financial reports and are subject to revision based on the Company’s procedures and controls associated with the completion of its year-end financial reporting, including all the customary reviews and approvals, and completion of the audit by the company’s independent registered public accounting firm of its audit of such financial statements for the year ended December 31, 2020. Accordingly, actual results may differ from these preliminary results and such differences may be material. The company currently anticipates releasing its 2020 fourth quarter and full year results on March 9, 2021 after the market close.

The company is sharing these preliminary financial results in connection with a potential repricing transaction, in which it would take advantage of favorable market conditions to negotiate and reprice its $735.5 million of First Lien Term Loan.