Everi says Q4 results reflect impact from casino closures
Company will take advantage of favorable market conditions to reprice $735m in debt.
Everi Holdings Inc., a Las Vegas-based provider of casino gaming products, financial technology and player loyalty solutions, on Tuesday unveiled preliminary financial results for the fourth quarter and full year 2020.
Everi said its results “demonstrate sequential improvement,” but also reflect continued impact from the COVID-19 pandemic and related casino closures.
In addition, the company said it intends to “take advantage of favorable market conditions” to lower its cost of debt by repricing a $735.5m loan currently due in 2024.
According to Everi, Q4 consolidated revenue will be in a range of approximately $117m to $121m, up slightly from $112.1m in Q3 2020, but down from $145.2m in Q4 2019.
The company said it expects to book a quarterly net loss in a range of $1.4m to $0.3m, inclusive of approximately $1.5m in pre-tax charges related to the consolidation of facilities and inventory write-offs.
The anticipated Q4 2020 net loss is similar to the net loss of $0.9m it had in Q3 2020, and an improvement from the net loss of $4.1m Q4 2019. The latter included a $6.4m pre-tax charge for litigation settlement and approximately $1.6m in additional charges.
Everi said it expects Adjusted EBITDA for Q4 2020 will be in a range of $60m to $62m, roughly in line with $59.8m in Q3 2020 and $63.2m in Q4 2019.
Revenue for full year 2020 is expected to be in a range of $381m to $385m with net loss in a range of $85m to $83m, a big drop from revenue of $533.2m and net income of $16.5m in 2019. The company said this reflects the significant impact of the pandemic’s effect on the casino and hospitality industry throughout the year.
Michael Rumbolz, CEO of Everi, said in a statement, “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.”
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