Executives of Las Vegas-based Everi Holdings say they’re on the way toward becoming more than just a casino cash access company.
The company formerly known as Global Cash Access Holdings that primarily provided ATMs and other cash transaction devices in casinos adopted the Everi name in 2015 and moved toward diversifying its product line.
Everi’s bid to diversify resulted in a 13.4 percent increase in revenue in 2017 over the previous year and the company’s fourth-quarter performance helped narrow losses.
It was the sixth straight quarter of revenue and cash-flow growth.
“We have achieved tremendous progress over the past two years,” Everi President and CEO Michael Rumbolz said Tuesday in a conference call with investors after reporting earnings for the quarter that ended Dec. 31. “Today, Everi is a growing gaming technology solutions provider,” Rumbolz said.
The company benefited from a $23.8 million boost in revenue resulting from federal tax-reform legislation.
For the quarter, Everi lost $25 million, 37 cents a share, on revenue of $247.9 million. For the same quarter a year earlier, the company lost $217.3 million, $3.29 a share, on revenue of $217.5 million.
“While our growth and the tangible results of our investments are notable, I believe our progress is also currently somewhat underappreciated,” Rumbolz said. “We’re at a point in our business that as we continue to demonstrate our ongoing progress in growing our business and our earnings, we believe our accomplishments and our position within the industry will be better appreciated and valued. We’re focused on continued growth in our business and value creation for our shareholders and we have every expectation that we will achieve both of those.”
The company was able to improve daily win per unit for the first time in eight quarter, thanks to the introduction of Everi’s first wide-area progressive slots, new licensed content, including the popular “Brady Bunch” franchise, and a new slot cabinet known as the Empire MPX.
Rumbolz said the company is transitioning from niche markets of Class III machines at tribal casinos in Washington and Oklahoma to a full-service equipment supplier with a more compelling portfolio.
Everi Holdings shares have risen almost 1 percent since the beginning of the year.
In Tuesday trading, the shares were down 11 cents, 1.4 percent, to $7.59 a share on slightly-below-average volume. After hours, shares dipped further, 19 cent, 2.5 percent, to $7.33 a share.
Everi Holdings Inc.
Fourth-quarter revenue and earnings for Las Vegas-based Everi Holdings Inc., parent company of Everi Games. (New York Stock Exchange: EVRI).
4Q 2017 4Q 2016 Change
Revenue $247.9 million $217.5 million +14%
Loss $25 million $217.3 million +88.5%
Loss per share 37 cents $3.29 +88.8%