Everi Holdings Inc has published its financial results for the first quarter of 2022, reporting record Q1 numbers in revenue and net income.
Commenting on the results, CEO Randy Taylor noted that the company’s strong start to the year reflects their global workforce’s “successful delivery of innovative, high-value solutions”.
Publishing its Q1 results, the Las Vegas-based casino games and player loyalty solutions provider registered a Q1 revenue increase of 26% to a Q1 record of $175.6m (Q1 2021: $139.1m), driven by growth in its gaming and FinTech operations.
Gaming operations improvements included a 21% rise in gaming operations revenues, a 129% growth in digital gaming revenues, and a 56% year-over-year increase in sales of gaming machines.
From a total Q1 revenue of $98.3m (Q1 2021: $76.1m), land-based casinos recorded a revenue of $64.8m (Q1 2021: $55.7m), digital gaming reported revenues of $5.5m (Q1 2021: $2.4m), and gaming equipment and systems revenues came in at $28m (Q1 2021: $18m).
FinTech revenues for Q1 came in at $77.3m (Q1 2021: $63m), with a 29% increase in financial access services, 36% growth in hardware sales, and a 3% increase in software and other revenues. Recurring group revenues grew by 23% to $134.4m while non-recurring sales increased by 38% to $41.2m.
Taylor commented: “We delivered record first quarter financial results, including revenues, net income, adjusted EBITDA, and free cash flow.
“Our performance was a strong start to the year and reflects our talented global workforce’s successful delivery of innovative, high-value solutions that continue to generate increased demand due to their ability to help our customers grow their businesses and improve their cost efficiencies.”
Everi’s operating income during the quarter rose by 31% to $52.6m (Q1 2021: $40.2m), reflecting ‘the benefit of higher revenues and lower depreciation and amortization expense, partially offset by higher research and development expense’.
Meanwhile, its net income grew by 54% to $31.5m, or $0.31 per diluted share (Q1 2021: $20.5m, or $0.21 per diluted share).
The firm reported that its adjusted EBITDA improved by 19% to a Q1 record $89.6m (Q1 2021: $75.4m), which the company notes is down to ‘the revenue mix change arising from the substantially greater growth in gaming machine and hardware sales, together with higher research and development expense that supports the company’s focus on increased internal, new product development’.
Free cash flow, on the other hand, rose by 19% to $51.6m (Q1 2021: $43.5m).
“The improved operating results, led by growth in our high-margin recurring revenue streams, which were up 23% year over year to $134.4m, are translating into sustainable Free Cash Flow,” added Taylor.
“This enables us to continue prioritizing return-focused investments that will grow our addressable markets, further support our internal product innovation and pursue additional accretive, scalable acquisitions.”
He continued: “At the same time, our improved balance sheet and strong free cash flow also provide the flexibility to return capital to shareholders through a share repurchase program, as we believe our stock offers a great value at the current valuation.”
Taylor expressed his confidence that, thanks to the company’s stability and its development prospects, year-over-year improvement should remain consistent as the year rolls on.
“Given the ongoing strength of our business and our growth opportunities, we expect to remain on track to deliver continued year-over-year growth in 2022,” he concluded.