Despite the coronavirus outbreak shutting down much of China’s industry, Everi Holdings executives are making assurances that their production has not been disrupted.
This statement came as part of a fourth-quarter earnings call on March 2. Everi CEO Michael Rumbolz explained:
“We really haven’t seen any real problems in the supply chain yet. We continue to monitor that carefully and we do continue to look to secondary sources in the event that some of our smaller supply needs end up drying up and being impacted by the coronavirus in Asia. Currently, we think we’re in good shape for the next couple of quarters.”
There has been some impact on the gaming sector overall, but Rubolz noted “Everi has not experienced a discernible impact to date.” He further added that “at the present time, the guidance presented in our earnings release today does not contemplate any impact from the virus.”
Rumbolz also had positive news regarding the company’s fourth-quarter earnings. He explained that for the 14th straight quarter the company had record revenues and cash flow. Revenue reached $145.2 million, a nearly $26 million increase for the same quarter in 2018.
While Everi Holdings has not been affected by the outbreak, the same cannot be said for many other companies around the globe. China has established itself as one of the leading providers of goods for consumers, but the recent epidemic has forced many of their plants to cease operations. This is had a huge impact on companies like Apple, Microsoft, and Walmart.
In addition, China has become the leading consumer when it comes to natural resources such as food, oil, rocks, and other raw materials. The impact of this virus is not only affecting the goods and services that are sold in other countries, but also what is brought to China. With many quarantined in their homes, shipments of goods are not reaching the inner parts of the country, leaving many businesses struggling to receive items they need. This could causes a crisis of supply for many companies across the globe.
However, this is not the case at Everi. The manufacturer of the “Shark Week Jaws of Steel” game also produces cabinets and financial technology products, but none of these products appears to be impacted by the loss of Chinese labor. As aresult, Rumbolz is confident that quarterly earnings will continue to rise for the remainder of 2020.