Everi Holdings Inc, a provider of land-based and digital casino gaming content and products, financial technology, and player loyalty solutions, has published its financial results for the third quarter of 2021.
For Q3, which ended September 30, 2021, Everi’s revenue, operating earnings, and free cash flow grew, and further growth is expected for these categories throughout the remainder of this year and into 2022.
The firm noted that since Q3 2020 was significantly impacted by the COVID-19 pandemic, it believes a more meaningful comparison for its Q3 2021 and an indication of its growth is Q3 2019’s results, for which revenues and Adjusted EBITDA were higher than Q3 2020.
During Q3, Everi’s revenues rose 25% to $168.3m, compared to $134.6m in Q3 2019. Its operating income more than doubled to a record $55.1m (Q3 2019: $27.3m), net income, inclusive of $34.4m in pre-tax costs for the extinguishment of debt associated with the firm’s refinancing of its outstanding debt in the quarter, decreased to $6.7m or $0.07 per diluted share (Q3 2019: $9.3m or $0.12 per diluted share).
The firm’s adjusted EBITDA, a non-GAAP financial measure, increased 40% to $90.6m (Q3 2019: $64.7m), while its free cash flow, a non-GAAP financial measure, improved to a quarterly record of $56.3m (Q3 2019: $11.1m).
Everi reported it now expects full-year revenue of $645m to $653m, net income of $98m to $100m, adjusted EBITDA of $342m to $346m, and free cash flow of $155m to $160m.
CEO, Michael Rumbolz, commented: “The growth in our third quarter revenue, operating earnings, and Free Cash Flow demonstrate the substantial ongoing momentum in our financial performance. We expect that further growth across both our Games and FinTech segments will continue for the remainder of this year and into 2022 and beyond.
“We expect to continue to benefit from the expansion of our installed base of leased gaming units, growth in ship share, same-store increases in financial access transactions, and the ongoing organic growth of our loyalty and regulatory compliance solutions.
“We believe the ongoing strength across both businesses and our deep pipeline of new offerings will drive consistent earnings and revenue growth as well as the continued generation of significant Free Cash Flow.”
Randy Taylor, Everi’s Chief Operating Officer, added: “Our strong quarterly financial results are directly correlated to the continued successful execution of our strategic growth initiatives, leading to consistent new demand for our products.
“A key driver of our operating momentum is the continued growth of our high-margin, recurring revenue streams, which increased to more than $131m, a quarterly record. This strength translates to improved cash flow, which provides additional capital we can allocate towards return-focused investments in product innovation to drive sustainable growth, as well as the flexibility to pursue and successfully integrate and scale accretive bolt-on acquisitions.”