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Everi Holdings reports third straight profitable quarter

Updated November 6, 2018 - 6:19 pm

Everi Holdings Inc. reported its third straight profitable quarter Tuesday and its ninth straight quarter of year-over-year increases in revenue and adjusted cash flow.

The Las Vegas-based gaming equipment manufacturer’s revenue and earnings for the quarter that ended Sept. 30 beat Wall Street analysts’ expectations.

The company reported net income of $2.1 million, or 3 cents a share, on revenue of $120.3 million, up 17.3 percent from the same quarter in 2017. The average estimate of five analysts had forecast a loss of 1 cent per share and revenue of $113.5 million.

The solid quarter resulted in Everi executives affirming guidance of between $228 million and $231 million in adjusted cash flow for 2018.

Everi President and CEO Michael Rumbolz said the company’s games division and its Financial Technology Solutions subsidiary both performed well during the quarter, with FinTech revenue and cash flow at record levels of $54.5 million and $26.5 million, respectively.

The games division produced its second-best quarterly performance, with revenue at $65.8 million and cash flow at $31.8 million.

“The 1,165 games sold in the third quarter set a new record for quarterly unit sales since our acquisition of the games business and represented our second consecutive record quarter for this metric,” Rumbolz said in a conference call with investors Tuesday.

During the call, executives said the company’s products were well-received at last month’s Global Gaming Expo in Las Vegas. “Our strategic road map is being executed at the highest level,” Rumbolz said.

The company is on track to produce a new game cabinet each year for a variety of game themes that include Willie Nelson- and Brady Bunch-branded slots and the Lightning Diamonds, Blazin’ Ice and Raging Buffalos franchises.

On Monday, Everi announced a four-year extension of its cash advance, ATM, check warranty and redemption device services agreement with Penn National Gaming, North America’s largest regional gaming operator. Penn has 40 properties in 18 locations.

Everi’s stock closed up 3 cents, or 0.4 percent, to $7.44 a share in light trading Tuesday. After hours, the stock climbed another 49 cents, or 6.6 percent, to $7.93 a share.

Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on Twitter.

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