Everi (EVRI) Q4 2024 earnings summary

Executive summary

• Total revenues for 2024 were $757.9 million, down 6% year-over-year, driven by a 12% decline in Games segment revenue, while FinTech revenue was flat.

• Net income for 2024 was $15.0 million, a decrease of 82% from $84.0 million in 2023, with diluted EPS of $0.17 compared to $0.91 in the prior year.

• Operating income fell 50% to $89.2 million, with margin dropping to 12% from 22% in 2023.

• Everi entered into a definitive agreement to be acquired alongside IGT Gaming by Apollo-managed funds for $14.25 per share in cash; the transaction is pending regulatory approval.

• The company faced macroeconomic headwinds, including inflation, supply chain disruptions, and increased wage costs.

Financial highlights

• Games segment revenue declined 12% to $378.9 million, with gaming operations revenue down 9% and equipment/systems revenue down 19%.

• FinTech segment revenue was $379.0 million, up slightly by $0.3 million, with growth in software and financial access services offset by lower hardware sales.

• Total costs and expenses increased 6% to $668.7 million, driven by higher operating, R&D, and depreciation expenses.

• Cash flow from operations was $318.4 million, up $26.2 million year-over-year; capital expenditures were $156.4 million.

• As of year-end, cash and cash equivalents were $400.7 million, with $950.9 million in total debt and $255.9 million in stockholders' equity.

Outlook and guidance

• The pending acquisition by Apollo funds is expected to close following regulatory approvals, after which Everi will be privately held and delisted.

• Management expects continued macroeconomic volatility, supply chain challenges, and competitive pressures to impact both Games and FinTech segments.

• The company anticipates ongoing investment in R&D and product innovation to support future growth.