Everi (EVRI) Q2 2024 earnings summary

Executive summary

• Total revenues for Q2 2024 were $191.2 million, down 8% year-over-year, mainly due to a 14% decline in Games and a 2% decline in FinTech revenues.

• Net income for Q2 2024 was $9.2 million, a 67% decrease from $27.4 million in Q2 2023, driven by lower revenues and higher operating expenses.

• Operating income for Q2 2024 was $30.1 million, down 44% year-over-year, with operating margin dropping to 16% from 26%.

• A definitive all-cash acquisition agreement was reached in July 2024, with shareholders to receive $14.25 per share and the company to be taken private.

• The previously announced merger with IGT was terminated by mutual consent with no penalties.

Financial highlights

• Games revenues fell 14% year-over-year to $97.7 million, with unit sales down 31% and daily win per unit down 8%.

• FinTech revenues decreased 2% to $93.5 million, mainly due to lower hardware sales, partially offset by higher transaction and software revenues.

• Diluted EPS for Q2 2024 was $0.11, compared to $0.31 in Q2 2023.

• For the six months ended June 30, 2024, total revenues were $380.5 million, down 7% year-over-year, and net income was $13.7 million, down 75%.

• Cash and cash equivalents at June 30, 2024 were $229.4 million; total borrowings were $969.7 million.

Outlook and guidance

• Management expects sufficient cash flows and available credit to meet operating, capital, and debt servicing needs in the near and long term.

• The pending acquisition is subject to regulatory and shareholder approval and is expected to result in delisting and transition to private ownership.

• The company anticipates continued investment in product development and operational efficiency.