weather icon Clear

Everi Holdings produces second straight profitable quarter

Las Vegas-based gaming technology provider Everi Holdings reported its second straight profitable quarter Tuesday, exceeding analysts’ expectations for revenue and hitting the forecast for earnings.

“Ongoing customer demand for products across the spectrum of our games and financial technology solutions portfolio is driving growth across the key performance indicators of our business,” Everi President and CEO Michael Rumbolz said in a release issued Tuesday afternoon.

He said adjusted cash flow increased 10 percent to a record $59.5 million for the quarter.

The company had record quarterly unit sales, its highest ever quarter-end installed base, a record year-over-year rise in daily win per unit, up by $2.42 or 9 percent.

The company’s financial technology revenue improved by more than 11 percent with adjusted cash flow rising for the ninth straight quarter.

In a conference call with analysts Tuesday, executives said the results were an indication that Everi has grown beyond being just a casino cash access business and its core ATM products.

The company produces a series of reel slot machine games called “Super Jackpot” and themed slot machines using the imagery of country star Willie Nelson.

Executives said new offerings would be demonstrated at October’s Global Gaming Expo in Las Vegas and details of some of the company’s capital expense goals would be outlined at Everi’s first-ever analyst day on Sept. 26 in Chicago.

Everi raised its projected adjusted cash flow for 2018 from $228 million to $231 million.

The company reported net income of $1.5 million, 2 cents a share, on revenue of $118.7 million for the quarter that ended June 30. That compared to a loss of $19.1 million, 29 cents a share, on revenue of $102.1 million for the same period a year earlier.

A survey of four Wall Street analysts on average expected the 2 cents a share earnings, but only anticipated revenue of $110.5 million.

Everi stock on Tuesday closed down 9 cents, 1.1 percent, to $7.79 a share on average volume. After hours, the stock rebounded by 20 cents, 2.6 percent, to $7.99, $1 below the issue’s 52-week high price.

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