Music & Games

Everi Holdings lifts Q4, FY 2022 revenue, earnings tumble

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March 1, 2023

Everi Holdings Inc., a game machine manufacturer, lifted its Q4 and FY 2022 revenues, while earnings took a hit, according to an earnings release. Highlights include:

• Revenue increased 14%, from $180.4 million in Q4 2021 to $205.36 million for the quarter ending Dec. 31, 2022. Organic revenues increased 8% to $16.6 million, while revenues from recent acquisitions contributed $8.3 million, or 5%, of the year-over-year growth. Recurring revenues increased 9%, from $131.7 million to $142.9 million in the comparative quarters, driven by growth in both the games and fintech segments.
• Net income fell from $89.4 million to $27 million in the comparative quarters.
• Diluted earnings per share fell from 88 cents to 28 cents in the comparative quarters, while basic EPS fell from 98 cents to 30 cents.
• Games segment revenues increased 7%, from $105.4 million to $113.2 million in the comparative quarters, primarily reflecting a 12% increase in revenues from gaming machine sales and a 5% increase in gaming operations revenues, including digital gaming operations. The acquisition of Intuicode Gaming contributed $2 million in revenues in the 2022 fourth quarter.
• The installed base expanded 6% to 17,975 units in the comparative quarters. Growth was driven in part by continued placements of Smokin' Hot Stuff Fire and Ice video units and the company's mechanical reel games.
• Daily win per unit fell 5%, from $40.83 to $37.76 in comparative quarters, reflecting typical quarterly industry seasonal influences.
• Revenues from digital gaming rose 51%, from $4.1 million to $6.2 million in the comparative quarters, reflecting growth in the library of available slot content along with an expansion in the number of gaming operator sites featuring Everi games.
• Fintech revenue increased 23%, from $75 million to $92.2 million in the comparative quarters, reflecting 10% growth in financial access services, an 18% gain in software and other revenues and a 102% increase in hardware sales. Organic growth of 15% was complemented by $6.3 million in revenues from the acquisitions of ecash Holdings and Venuetize.
• Full-year revenue increased from $660.4 million in 2021 to $782.5 million in 2022.
• Gaming operations revenue increased 5%, from $69.8 million to $73.4 million in the comparative years.
• Net income fell from $152.9 million to $120.5 million in the comparative years.
• Basic EPS fell from $1.71 to $1.33 while diluted EPS fell from $1.53 to $1.24 in the comparative years.

Shares traded today at $19.20 against a 52-week range of $13.52 to $23.39.

The $205.36 million in quarterly revenue beat analyst expectations by $7.81 million, and the GAAP EPS of 28 cents beat expectations by 4 cents, according to Seeking Alpha.

"Everi ended 2022 with another quarter of strong performance, including record fourth quarter revenue and adjusted EBITDA, which extended our record of successful execution on our operating priorities," CEO Randy Taylor said in the press release.

The company initiated full year 2023 guidance for net income of $88 million to $100 million.

Diluted earnings per share are expected to be 93 cents to $1.05, and adjusted diluted EPS is expected to be $1.50 to $1.65.