Las Vegas manufacturer Everi Holdings sees revenue, cash flow rise

Revenue and cash flow continued to rise for Las Vegas-based gaming equipment manufacturer Everi Holdings, and the company on Monday announced a new cost-cutting measure, the refinancing of an $820 million term loan.

Company executives reported a loss of $4.3 million, or 6 cents a share, on revenue of $247.3 million for the quarter that ended Sept. 30. That compares with a loss of $8.3 million, or 12 cents a share, on revenue of $222.2 million for the same quarter in 2016.

A survey of four Wall Street analysts projected revenue of $229.8 million but a loss of just 1 cent per share.

Still, executives with the company, a market leader in casino payment technology, said its products received a warm response at the Global Gaming Expo this month.

“It’s truly an understatement to say that G2E 2017 was our best showing ever for both our payments and games segments,” said Michael Rumbolz, Everi’s president and CEO. “I went into G2E very optimistic, but our customers are always the real judge and jury. I left there with the feeling that across the board that we not only accomplished our goals, we exceeded many of them.”

Rumbolz said it’s easy for G2E attendees to experience sensory overload on the show floor, but he felt the company’s payments products message resonated.

“It was clear that our payments products and our demonstrations to customers easily cut through that noise to capture those customers’ attention,” Rumbolz told investors on Monday’s earnings call. “We have continued to innovate in our payments products because, even though we already have a dominant industry position, we expect to not just maintain our leadership position, but to extend it.”

Rumbolz said a previous refinancing strategy saved $8 million annually and accelerated free cash flow. Everi did not project savings for the planned move, but analyst John Davis of St. Louis-based Stifel Financial said the refinancing could result in $13 million in annual savings for the company.

The term loan is due to mature in 2024, and the company anticipates repricing it in the next two weeks. Company executives also are looking at refinancing $350 million of 10 percent senior unsecured notes due in 2022.

On Monday, Everi shares closed up 5 cents a share, or 0.6 percent, to $8.15 on above-average volume. After hours, shares rose another 4 cents, or 0.5 percent, to $8.19.

Correction: This story has been updated to clarify the company’s refinancing strategy.

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