EVERI REPORTS RECORD FOURTH QUARTER AND FULL YEAR 2021 RESULTS

LAS VEGAS, March 1, 2022 /PRNewswire/ — Everi Holdings Inc. (NYSE: EVRI) (“Everi” or the “Firm”), a premier supplier of land-based and digital on line casino gaming content material and merchandise, monetary know-how and participant loyalty options, in the present day introduced outcomes for the fourth quarter and full 12 months ended December 31, 2021

Fourth Quarter 2021 Monetary Highlights

• Revenues rose 51% to a quarterly file $180.4 million from $119.6 million within the 2020 fourth quarter.
• Internet earnings grew to a file $89.4 million, or $0.88 per diluted share, in comparison with $1.1 million, or $0.01 per diluted share, within the 2020 fourth quarter; web earnings within the 2021 fourth quarter contains an enchancment of 180% in working earnings in addition to a $63.5 million, or $0.62 per share, earnings tax profit associated to the reversal of deferred tax asset valuation allowances.
• Adjusted EBITDA, a non-GAAP monetary measure, elevated 45% to a fourth quarter file $88.8 million from $61.2 million within the 2020 fourth quarter.
• Free Money Move, a non-GAAP monetary measure, rose 37% to $19.7 million, inclusive of $31.5 million in placement charges paid to increase an settlement with a buyer and to fund incremental placements with one other buyer, in comparison with $14.4 million of Free Money Move within the 2020 fourth quarter.

File Full Yr 2021 Monetary Highlights

• Revenues rose 72% to $660.4 million in comparison with $383.7 million in 2020, and exceeded the prior file 12 months achieved in 2019 by 24%, or $127.2 million.
• Internet earnings, inclusive of $34.4 million in pre-tax prices for the extinguishment of debt related to the Firm’s refinancing of its excellent debt within the third quarter and the earnings tax profit famous above, elevated to a file $152.9 million, or $1.53 per diluted share, in comparison with a web lack of $81.7 million, or $(0.96) per diluted share, in 2020 and was $136.4 million increased than 2019.  
• Adjusted EBITDA, a non-GAAP monetary measure, elevated 97% to $347.2 million in comparison with $176.5 million in 2020 and was 37%, or $94.0 million, increased than the prior file of $253.2 million generated in 2019.
• Free Money Move, a non-GAAP monetary measure, elevated to a file $158.7 million from $28.9 million in 2020 and was greater than triple the $43.8 million generated in 2019.

Michael Rumbolz, Chief Govt Officer of Everi, mentioned, “Our file fourth quarter 2021 outcomes capped a 12 months during which we delivered record-setting annual monetary efficiency throughout our enterprise. Pushed by vital successes in each our Video games and FinTech segments, we achieved new all-time full-year information for revenues, web earnings, Adjusted EBITDA, and Free Money Move.

“This efficiency displays our strategic concentrate on rising our recurring revenues and our continued funding within the growth of recent and enhanced merchandise that assist our clients develop income and handle their enterprise extra successfully. The devoted and collaborative efforts of our proficient world workforce to execute on our working priorities is clearly evidenced in these robust outcomes. As we start 2022, our core recurring-revenue companies proceed to develop and our newer initiatives – together with iGaming and cashless pockets know-how – have a robust basis from which we count on to generate substantial contributions to our future monetary efficiency. 

“For 2022, we count on one other 12 months of regular development as our working outcomes profit from the continued growth of our put in base of leased gaming items, rising ship share of gaming machines offered, continued will increase in same-store monetary entry transactions and ongoing natural development of our Loyalty and regulatory compliance (“RegTech”) options. Ongoing momentum in these product classes mixed with our prudent administration of working and R&D bills is predicted to ship one other 12 months of robust Free Money Move era that can proceed to allow Everi to allocate capital in the direction of return-focused investments that generate additional development.

“Our capital allocation priorities will concentrate on growing funding in inside product innovation and product enhancements to maintain constant longer-term development, in addition to the continued pursuit of scalable, bolt-on acquisitions that may broaden our product portfolio, increase our addressable market, geographically develop our presently served markets, and additional diversify our income sources.  Our latest bulletins to accumulate ecash Holdings and sure belongings of Atlas Gaming in Australia present long-term development alternatives that complement our enterprise strengths.”

Randy Taylor, Everi’s President and Chief Working Officer, added, “Our fourth quarter monetary outcomes replicate the profitable alignment and execution of our working initiatives. Regardless of a 12 months that started with substantial pandemic impacts, our Video games enterprise achieved file gaming machine unit gross sales and ended the 12 months with a record-high gaming operations put in base. Our FinTech enterprise generated vital year-over-year quarterly development in same-store monetary entry transactions and funds processed that exceeded historic development charges and our Loyalty and RegTech software program options recorded double-digit income will increase. 

“Our working momentum has been pushed primarily by the energy of our high-margin Video games and FinTech recurring income operations. Momentum in our Video games enterprise is evidenced by the achievement of the 11^th consecutive quarter-end enhance in our put in base of gaming operations items, inclusive of higher-earning premium items that helped drive a year-over-year enhance in each day win per unit. File quarterly slot machine gross sales of 1,910 items, a 62% sequential enhance over the robust 2021 third quarter unit gross sales and a 42% year-over-year enchancment over the 2019 fourth quarter, replicate continued development in our ship share of alternative items. With annual trade alternative gross sales anticipated to extend in 2022, the investments we now have made to broaden and prolong our Video games portfolio have positioned Everi to attain constant progress in the direction of our longer-term goal of a 15% ship share for items offered.

“Our FinTech enterprise generated file income, working revenue and Adjusted EBITDA within the fourth quarter, reflecting the good thing about our investments within the growth of a complete portfolio of built-in options that permit clients to function extra effectively and productively. In the course of the quarter, we facilitated greater than 31 million transactions that delivered almost $10 billion in worth of funds to on line casino flooring, a 25% enhance over the then-record degree of funds delivered within the pre-pandemic 2019 fourth quarter. 

“Our improved earnings proceed to translate into substantial Free Money Move, which elevated greater than five-fold 12 months over 12 months in 2021 to $158.7 million; a degree that exceeds the final 5 years mixed.  We count on to proceed to generate robust Free Money Move this 12 months, which positions us to extend the capital we allocate in the direction of return-focused investments in product innovation to maintain our development and supply continued optionality to pursue accretive, scalable acquisitions that additional improve our development prospects. We consider the Firm’s finest years are nonetheless forward and with a well-defined working plan and our staff’s distinctive ongoing execution, we’ll proceed to construct stakeholder worth.”

Consolidated Full Quarter Comparative Outcomes (unaudited) 

Video games Phase Full Quarter Comparative Outcomes (unaudited)

2021 Fourth Quarter Video games Phase Highlights

Video games phase revenues elevated to a quarterly file $105.4 million in comparison with $64.9 million within the fourth quarter of 2020, reflecting file gross sales of gaming machines and development in gaming operations revenues, which incorporates will increase in each the put in unit base and in Every day Win per Unit (“DWPU”).

Working earnings elevated to $26.0 million in comparison with $1.3 million within the fourth quarter of 2020, reflecting the good thing about increased revenues, a larger contribution from the higher-margin gaming operations enterprise, in addition to decrease amortization expense attributable to sure beforehand acquired belongings that grew to become absolutely amortized within the fourth quarter of 2020. Adjusted EBITDA rose to $55.9 million, from $37.9 million within the fourth quarter of 2020.

Gaming operations income grew 40% to $69.8 million from $49.7 million a 12 months in the past.

• DWPU elevated to $40.83 within the fourth quarter of 2021 in comparison with $32.15 within the fourth quarter of 2020, primarily reflecting the continued growth of the Firm’s higher-performing premium video games, in addition to the profit from the improved participant exercise at casinos because the year-over-year influence of the pandemic subsided.
• The put in base as of December 31, 2021 was a file 16,903 items, a year-over-year enhance of seven%, or 1,158 items. The put in base elevated by 482 items on a quarterly sequential foundation. In January 2022, subsequent to year-end, 204 gaming items went reside at a brand new Oklahoma tribal on line casino that was initially scheduled to open within the 2021 fourth quarter.
• The premium portion of the put in base elevated by 21%, or 1,362 items, 12 months over 12 months and by 489 items on a quarterly sequential foundation to a file 7,840 items. This was the 14th consecutive quarterly sequential enhance in premium items. Development was pushed partly by continued placements of Cashnado™ items, in addition to the Firm’s standard premium mechanical reel video games and Vast-area Progressive (“WAP”) gaming machines. 
• Digital income rose 156% to $4.1 million in comparison with $1.6 million a 12 months in the past and was 4 occasions the 2019 quantity. The B2B income enhance greater than offset a decline in B2C income because the Firm has now absolutely exited its B2C social gaming operations. Digital income development displays an expanded base of iGaming operator websites that includes Everi’s video games – together with new buyer websites in Connecticut, and in Ontario and New Brunswick, Canada, that went reside in the course of the 2021 fourth quarter – together with a rising library of accessible slot content material.
• Revenues from the New York Lottery programs enterprise elevated to $5.9 million in comparison with $4.5 million within the fourth quarter of 2020.

Gaming gear and programs revenues generated from the sale of gaming machines and different associated components and gear grew to a quarterly file $35.6 million within the fourth quarter of 2021 in comparison with $15.2 million within the fourth quarter of 2020. The Firm offered a quarterly file 1,910 new items at a median promoting worth (“ASP”) of $18,106 within the 2021 fourth quarter, up 140% from 797 items at an ASP of $18,060 within the 2020 fourth quarter. The unit development displays a rise in trade ship share pushed by the recognition of an increasing recreation library supporting the Empire Flex™ video reel cupboard and the continued efficiency of the Participant Basic™ mechanical reel cupboard. 

Monetary Expertise Options Phase Full Quarter Comparative Outcomes (unaudited)*

2021 Fourth Quarter Monetary Expertise Options (“FinTech”) Phase Highlights

FinTech revenues for the 2021 fourth quarter elevated to a file $75.0 million in comparison with $54.6 million within the fourth quarter of 2020, primarily reflecting a rise in monetary entry companies and software program and different revenues.

Working earnings rose to $21.9 million in comparison with $15.8 million within the fourth quarter of 2020. The rise primarily displays the good thing about increased revenues partially offset by a rise in analysis and growth expense in help of recent merchandise, similar to new and enhanced Loyalty merchandise, the Firm’s CashClub Pockets^® digital know-how answer and new RegTech choices. Adjusted EBITDA was $32.8 million in comparison with $23.3 million within the fourth quarter of 2020. 

• Monetary entry companies revenues, which embody cashless and cash-dispensing debit and bank card transactions and examine companies, elevated 55% from the fourth quarter of 2020 to a quarterly file $48.1 million, reflecting continued energy in on line casino exercise. The variety of monetary transactions accomplished elevated 35% within the fourth quarter 2021 in comparison with the fourth quarter of 2020 and was up 6% over the transactional exercise of the pre-COVID fourth quarter of 2019.
• Software program and different revenues, which embody Loyalty and RegTech software program, product subscriptions, kiosk upkeep companies, and different income, rose 17% to a file $17.9 million in comparison with $15.3 million within the fourth quarter 2020.  Roughly 76% and 77% of software program and different revenues have been of a recurring nature within the 2021 and 2020 fourth quarter durations, respectively.
• {Hardware} gross sales revenues elevated 8% to $9.0 million in comparison with in comparison with $8.3 million within the fourth quarter of 2020.

Steadiness Sheet and Liquidity

• As of December 31, 2021, the Firm had money and money equivalents of $302.0 million and a Internet Money Place of $99.4 million.
• Early within the 2021 fourth quarter, the Firm paid $28.9 million to increase its placement settlement with a buyer to a time period of six years and $2.6 million to fund incremental placements with one other buyer for a time period of 83 months. The Firm doesn’t count on to pay any placement charges in 2022.

Outlook

Everi in the present day initiated annual steering for 2022, together with the expectation for year-over-year will increase in income, Adjusted EBITDA and Free Money Move. The Firm expects working earnings to extend 8% to 13% 12 months over 12 months driving web earnings to a variety of $125 million to $132 million and Adjusted EBITDA to extend 6% to eight% 12 months over 12 months to a variety of $368 million to $376 million. Elements thought of in Everi’s 2022 outlook embody:

• Broad-based income development throughout the Firm’s operations, pushed by:
• Continued will increase within the put in base of gaming operations items, together with each customary and premium gaming machines, with DWPU anticipated to stay above $40 whereas nonetheless reflecting some quarterly variability attributable to continued results of pandemic-related exercise, in addition to seasonal influences;
• Greater annual unit gross sales for gaming machines;
• Optimistic same-store development tendencies within the Firm’s monetary entry companies, which additionally replicate new agreements with further on line casino operators for Everi’s CashClub Pockets know-how; 
• Elevated revenues from Loyalty and RegTech software program options, together with continued development in software program upkeep and help; and,
• Greater annual gross sales of FinTech {hardware}.
• Working and R&D bills are anticipated to extend, reflecting aggressive trade pressures on wages and advantages, in addition to development of headcount to help the Firm’s anticipated income positive factors and to help inside product growth.  
• Capital expenditures are anticipated to be between $120 million and $132 million. No placement charges are anticipated to be paid in 2022.
• The Firm expects to start to file earnings taxes in 2022 at an anticipated price of roughly 23%.  Nonetheless, money taxes are anticipated to stay minimal in the course of the 12 months because the Firm will offset earned earnings in opposition to a portion of its $361 million of gross web working loss carryforwards.
• The Firm’s 2022 outlook doesn’t ponder any further significant influence from a macroeconomic or pandemic-related setback; it does replicate, nevertheless, a probable influence from much less authorities stimulus advantages and a rise in inflationary stress on shopper discretionary spending.

A abstract and reconciliation of the monetary targets are included in a supplemental desk on the finish of this launch.

Investor Convention Name and Webcast

The Firm will host an investor convention name to debate its 2021 fourth quarter and full 12 months outcomes at 11:00 a.m. EST (8:00 a.m. PST) in the present day. The convention name could also be accessed reside by telephone by dialing (201) 689-8471. A replay of the decision will probably be obtainable starting at 2:00 p.m. ET in the present day and could also be accessed by dialing +1 (412) 317-6671; the PIN quantity is 13727092. A replay will probably be obtainable till March 8, 2022. The decision additionally will probably be webcast reside and archived on www.everi.com (choose “Buyers” adopted by “Occasions & Contact”).

Non-GAAP Monetary Data

To be able to improve investor understanding of the underlying tendencies in our enterprise, our money steadiness, and money obtainable for our working wants, and to offer for higher comparability between durations in numerous years, we’re offering on this press launch Adjusted EBITDA, Free Money Move, Internet Money Place and Internet Money Out there, which aren’t measures of our monetary efficiency or place beneath United States Usually Accepted Accounting Ideas (“GAAP”). Accordingly, Adjusted EBITDA and Free Money Move shouldn’t be thought of in isolation or as an alternative to measures ready in accordance with GAAP.  These measures needs to be learn along side our web earnings, working earnings, and money movement information ready in accordance with GAAP. With respect to Internet Money Place and Internet Money Out there, these measures needs to be learn along side money and money equivalents ready in accordance with GAAP.

We outline Adjusted EBITDA as earnings (loss) earlier than curiosity, taxes, depreciation and amortization, loss on extinguishment of debt, non-cash inventory compensation expense, accretion of contract rights, write-downs of stock, property and gear and intangible belongings, worker severance prices and different associated bills, litigation settlement acquired web of authorized prices, international change loss, asset acquisition expense, non-recurring skilled charges, and one-time costs. We current Adjusted EBITDA, as we use this measure to handle our enterprise and contemplate this measure to be supplemental to our working efficiency. We additionally make sure compensation choices based mostly, partly, on our working efficiency, as measured by Adjusted EBITDA; and our present credit score facility and present senior unsecured notes require us to adjust to a consolidated secured leverage ratio that features efficiency metrics considerably much like Adjusted EBITDA.

We outline Free Money Move as Adjusted EBITDA much less money paid for curiosity, money paid for capital expenditures, money paid for placement charges, and money paid for taxes web of refunds.  We current Free Money Move as a measure of efficiency and consider it offers buyers with one other indicator of our working efficiency. It shouldn’t be inferred that your entire Free Money Move quantity is accessible for discretionary expenditures.

A reconciliation of the Firm’s web earnings (loss) per GAAP to Adjusted EBITDA and Free Money Move is included within the Unaudited Reconciliation of Chosen Monetary GAAP to Non-GAAP Measures offered on the finish of this launch. Moreover, a reconciliation of every phase’s working earnings to EBITDA and Adjusted EBITDA can be included. On a phase degree, working earnings per GAAP, somewhat than web earnings per GAAP, is reconciled to EBITDA and Adjusted EBITDA because the Firm doesn’t report web earnings by phase. Administration believes that this presentation is significant to buyers in evaluating the efficiency of the Firm’s segments.

We outline (i) Internet Money Place as money and money equivalents plus settlement receivables much less settlement liabilities and (ii) Internet Money Out there as Internet Money Place plus undrawn quantities obtainable beneath our revolving credit score facility. We current Internet Money Place as a result of our money place, as measured by money and money equivalents, relies upon upon modifications in settlement receivables and the timing of funds associated to settlement liabilities. As such, our money and money equivalents can change considerably based mostly upon the timing of our receipt of funds for settlement receivables and funds we make to clients for our settlement liabilities.  We current Internet Money Out there as administration screens this quantity in reference to its forecasting of money flows and future money necessities.

A reconciliation of the Firm’s money and money equivalents per GAAP to Internet Money Place and Internet Money Out there is included within the Unaudited Reconciliation of Money and Money Equivalents to Internet Money Place and Internet Money Out there offered on the finish of this launch.

Cautionary Be aware Relating to Ahead-Trying Statements

This press launch comprises “forward-looking statements” as outlined within the U.S. Non-public Securities Litigation Reform Act of 1995. On this context, forward-looking statements deal with our anticipated future enterprise and monetary efficiency, and sometimes include phrases similar to “purpose,” “goal,” “indication,” “future,” “assume,” “estimate,” “count on,” “anticipate,” “intend,” “plan,” “consider,” “search,” “challenge,” “could,” “ought to,” “will,” “can,” “might,” “intention to,” “designed to,” “will present,” or “favorably positioned” or related expressions to determine forward-looking statements. Examples of forward-looking statements embody, amongst others, statements concerning our means to execute on key initiatives and ship ongoing working and monetary enhancements together with steering associated to 2022 monetary and operational metrics; regain or keep income, earnings and Free Money Move momentum; maintain our total development; drive development of the gaming operations put in base and DWPU; proceed increasing the parts of the gaming ground the Firm’s video games deal with; efficiently carry out obligations required by acquisition agreements; and create incremental worth for our shareholders, in addition to statements concerning our expectations for the trade surroundings and the adoption of our merchandise and applied sciences.

Ahead-looking statements are neither historic info nor assurances of future efficiency. As an alternative, they’re based mostly solely on our present beliefs, expectations, and assumptions concerning the way forward for our enterprise, future plans and techniques, projections, anticipated occasions and tendencies, the financial system and different future circumstances. As a result of forward-looking statements relate to the longer term, they’re topic to inherent dangers, uncertainties and modifications in circumstances which are usually troublesome to foretell and plenty of of that are past our management. Our precise outcomes and monetary situation could differ materially from these indicated in forward-looking statements. Essential components that might trigger our precise outcomes and monetary situation to vary materially from these indicated within the forward-looking statements embody, with out limitation, the influence of the continued COVID-19 world pandemic on our enterprise, operations and monetary situation, together with (i) actions taken by worldwide, federal, state, tribal and municipal governmental and regulatory companies to include the COVID-19 public well being emergency or mitigate its influence, (ii) the direct and oblique financial results of COVID-19 and measures to include it, together with directives, orders or related actions by worldwide, federal, state, tribal and municipal governmental and regulatory companies to control freedom of motion and enterprise operations similar to journey restrictions, border closures, enterprise closures, limitations on public gatherings, quarantines and shelter-in-place orders in addition to re-opening security protocols; our historical past of web losses and our means to generate income sooner or later; our means to generate income sooner or later and to create incremental worth for shareholders; our debt leverage and the associated covenants that prohibit our operations; our means to adjust to our debt covenants and repair excellent debt; our means to generate ample money to service all of our indebtedness, fund working capital and capital expenditures; our means to resist unanticipated impacts of a pandemic outbreak of unsure length; our means to resist the lack of income in the course of the closure of our clients’ amenities; our means to take care of our present clients; technological obsolescence and our means to adapt to evolving applied sciences; our means to regain or keep income, earnings, and money movement momentum, and to reinforce shareholder worth within the long-term; our means to execute on mergers, acquisitions and/or strategic alliances, together with the timing and shutting of acquisitions and our means to combine and function such acquisitions in keeping with our forecasts in an effort to obtain future development; our means to execute on key initiatives and ship ongoing enhancements; our means to entry the capital markets to boost funds; expectations concerning development for the Firm’s put in base and each day win per day; expectations concerning growth and placement charge preparations; expectations for re-opening of casinos; inaccuracies in underlying working assumptions; expectations concerning clients’ and gaming patrons’ preferences and calls for for future service and product choices; the general development of the gaming trade, if any; gaming market contraction; our means to switch income related to terminated contracts; margin degradation from contract renewals; our means to adjust to the Europay, MasterCard and Visa world customary for playing cards outfitted with safety chip know-how; our means to efficiently introduce new and enhanced services, together with third-party licensed content material; our means to forestall, mitigate or well timed get well from cybersecurity breaches, assaults and compromises; gaming institution and patron preferences; failure to regulate product growth prices and create profitable new merchandise; anticipated gross sales efficiency; worker turnover; nationwide and worldwide financial and trade circumstances; our means to resist world provide chain disruption; modifications in world market, enterprise and regulatory circumstances arising because of the COVID-19 world pandemic; modifications in gaming regulatory, card affiliation and statutory necessities; regulatory and licensing difficulties, aggressive pressures and modifications within the aggressive surroundings; operational limitations; our means to adjust to regulatory necessities beneath the Fee Card Trade (“PCI”) Information Safety Requirements and keep our licensed standing; modifications to tax legal guidelines; uncertainty of litigation outcomes; rate of interest fluctuations; enterprise prospects; unanticipated bills or capital wants and people different dangers and uncertainties mentioned in our most up-to-date Annual Report on Kind 10-Okay filed with the U.S. Securities and Change Fee anticipated to be filed on March 1, 2022. Given these dangers and uncertainties, there might be no assurance that the forward-looking info contained on this press launch will actually transpire or show to be correct. Readers are cautioned to not place undue reliance on the forward-looking statements contained herein, that are based mostly solely on info presently obtainable to us and communicate solely as of the date hereof.

This press launch needs to be learn along side our Annual Report on Kind 10-Okay for the 12 months ended December 31, 2021, and with the knowledge included in our different press releases, stories and different filings with the SEC. Understanding the knowledge contained in these filings is vital in an effort to absolutely perceive our reported monetary outcomes and our enterprise outlook for future durations.

About Everi

Everi’s mission is to guide the gaming trade by means of the facility of individuals, creativeness and know-how. With a concentrate on participant engagement and serving to on line casino clients function extra effectively, the Firm develops entertaining recreation content material and gaming machines, gaming programs, and companies for land-based and iGaming operators. The Firm can be a preeminent and complete supplier of trusted monetary know-how options that energy the on line casino ground whereas enhancing operational efficiencies and fulfilling regulatory compliance necessities, together with services that facilitate handy and safe money and cashless monetary transactions, self-service participant loyalty instruments and purposes, and regulatory and intelligence software program. For extra info, please go to www.everi.com, which is up to date often with monetary and different details about the Firm.

SOURCE Everi Holdings Inc.