Everi Holdings Inc has achieved record revenue results, that have surpassed its peak corporate results achieved during 2019.
Publishing its FY2021 results, the Las Vegas-based casino games and player loyalty solutions provider registered a Q4 revenue increase of 51% to a record of $180.4m (Q4 2020: $119.6m).
A strong end-of-year closing saw Everi’s FY2021 revenues improve by 72% to $660m (2020: $383), exceeding 2019’s record year by 24%, or $127.2m.
During Q4, Everi’s net income rose to a record $89.4m, or $0.88 per diluted share (Q4 2020: $1.1m, or $0.01 per diluted share) including a 180% growth in operating income as well as a $63.5m, or $0.62 per share, income tax benefit related to the reversal of deferred tax asset valuation allowances.
Everi’s adjusted EBITDA improved by 45% to a Q4 record of $88.8m (Q4 2020: $61.2m), while its free cash flow grew by 37% to $19.7m, inclusive of $31.5m in placement fees paid to extend an agreement with a customer and to fund incremental placements with another customer (Q4 2020: $14.4m).
The group’s full-year net income, inclusive of $34.4m in pre-tax costs for the extinguishment of debt associated with the refinancing of its outstanding debt in Q3 and the income tax benefit noted above, rose to a record $152.9m, or $1.53 per diluted share (2020: net loss of $81.7m, or $(0.96) per diluted share), and $136.4m higher than 2019.
FY2021’s adjusted EBITDA increased 97% to $347.2m (2020: $176.5m), 37% better than the previous record of $253.2m generated in 2019. Free cash flow grew to a record $158.7m (2020: $28.9m), more than tripling 2019’s $43.8m.
CEO Michael Rumbolz stated: “Our record fourth quarter 2021 results capped a year in which we delivered record-setting annual financial performance across our business. Driven by significant successes in both our Games and FinTech segments, we achieved new all-time full-year records for revenues, net income, Adjusted EBITDA, and Free Cash Flow.
“This performance reflects our strategic focus on growing our recurring revenues and our continued investment in the development of new and enhanced products that help our customers grow revenue and manage their business more effectively. The dedicated and collaborative efforts of our talented global workforce to execute on our operating priorities is clearly evidenced in these strong results.”
For 2022, Everi expects operating income to increase 8% to 13% YoY. As a result, it believes net income will land in the range of $125m to $132m and Adjusted EBITDA to increase 6% to 8% YoY to a range of $368m to $376m.
Rumbolz continued: “For 2022, we expect another year of steady growth as our operating results benefit from the continued expansion of our installed base of leased gaming units, growing ship share of gaming machines sold, continued increases in same-store financial access transactions, and ongoing organic growth of our Loyalty and regulatory compliance (RegTech) solutions.
“Ongoing momentum in these product categories combined with our prudent management of operating and R&D expenses is expected to deliver another year of strong Free Cash Flow generation that will continue to enable Everi to allocate capital towards return-focused investments that generate further growth.”