Everi Holdings had a pretty bad second quarter, but it could have been worse. While the company saw a massive net loss, it credited a faster than expected reopening of casinos and cost cutting as their saviors during the worst of the Covid-19 pandemic.
Overall, the casino games supplier saw $38.7 million in revenue, a large drop from the $129.7 million it saw the year previous. That resulted in a net loss of $68.5 million, representing a loss of $0.80 per diluted share. For the same period in 2019, Everi had a net income of $5.5 million, or 7 cents per diluted share. Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization) was $3.3 million, falling from $64.1 million in 2019.
Everi’s CEO, Michael Rumbolz, says it could have been far worse, but earnings started coming on due to “the swift actions we took in March when the pandemic struck to reduce our operating costs and preserve liquidity during the time casinos were shut down; as well as our focus on enhancing operational efficiencies and pursuing higher-value opportunities.”
Rumbolz noted that Everi’s FinTech solutions showed strong performance, and Truist Securities gaming analyst Barry Jonas believes it will be on the back of that vertical that Everi shows strong recovery through the rest of the year. “We think these factor not only ongoing strength seen across our regional operator coverage but also company-specific growth drivers as Everi had strong momentum in their premium leased product and FinTech offerings into the pandemic,” he said.
A strong demand for innovative new products, despite a lack of casino players for the moment, is also expected to help the company. ”We believe we have unique high-value FinTech and Games solutions that will help our customers address the new operating environment in their reopened properties, which when combined with our more streamlined operating approach, will help us regain the revenue, earnings and cash flow momentum we consistently demonstrated prior to the pandemic,” wrote Rumbolz.
Those products should still be fairly easy to bring to market. Although tourism and business travel are down, Everi has noted in the past that the pandemic has done nothing to interrupt their supply chain. They have products to sell, should anyone want them.