Las Vegas-based Everi Holdings Inc. surprised analysts for the second straight quarter, beating earnings and revenue estimates as the gaming equipment company posted its fourth straight profitable quarter.
The company on Tuesday also announced an acquisition that Everi President and CEO Michael Rumbolz said “improves Everi’s ability to generate additional free cash flow.”
Rumbolz did not elaborate on the $40 million acquisition or identify the company that he described as “a leading provider of casino loyalty and marketing solutions.”
Everi paid $20 million of the purchase price with cash on hand and expects to pay the balance over the next two years.
“The acquired assets include existing technology related to self-service kiosks and a marketing platform as well as other intellectual property,” Rumbolz said. “The company also acquired a portfolio of over 50 customer contracts representing over 100 casino locations where the platform is currently installed that provide a stream of high-margin recurring revenue related to software maintenance and support.”
Everi, formerly known as Global Cash Access Holdings, Inc., reported net income of $3.2 million, or 6 cents a share, on revenue of $119.5 million for the quarter that ended Dec. 31.
In the fourth quarter of 2017, the company had a loss of $24.9 million, or 37 cents a share, on revenue of $247.9 million. The large loss in 2017 was attributed to the early extinguishment of a loan debt that year.
Seven Wall Street analysts on average expected a loss of 5 cents a share for the quarter this year and revenue of $114.2 million.
Everi shares rose 7 cents, 0.9 percent, to close at $7.97 Tuesday, on volume about twice the daily average. In after-hours trading, the issue climbed an additional 13 cents, 1.6 percent, to close at $8.10 a share.
Everi Holdings Inc.
Fourth-quarter revenue and earnings for Las Vegas-based gaming equipment manufacturer Everi Holdings. (NYSE: EVRI).
4Q 2018: $119.5 million
4Q 2017: $247.9 million
4Q 2018: $3.2 million
4Q 2017: ($24.9 million)
Earnings/(loss) per share
4Q 2018: 6 cents
4Q 2017: (37 cents)