Retail

Everi Holdings reports record Q4 2021 revenue

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March 1, 2022

Everi Holdings, a provider of game content and gaming machines, gaming systems and services for land-based and iGaming operators, reported record revenue for the Q4 2021 ending Dec. 31, 2021, according to an earnings release. Highlights include:

• Revenue rose 51% from $119.6 million in Q4 2020 to a quarterly record $180.39 million in Q4 2021.
• Net income grew to a record $89.4 million, or 88 cents per diluted share, compared to $1.1 million, or 1 cent per diluted share, in the 2020 fourth quarter; net income in the 2021 fourth quarter includes an improvement of 180% in operating income as well as a $63.5 million income tax benefit related to the reversal of deferred tax asset valuation allowances.
• Games segment revenue increased to a quarterly record $105.4 million compared to $64.9 million in the fourth quarter of 2020, reflecting record sales of gaming machines and growth in gaming operations revenue, which includes increases in both the installed unit base and in daily win per unit.
• Fintech revenue for the 2021 fourth quarter increased to a record $75 million compared to $54.6 million in the fourth quarter of 2020, primarily reflecting an increase in financial access services and software and other revenues.
• Revenue rose 72% from $383.7 million in 2020 to $660.4 million in 2021, and exceeded the prior record year achieved in 2019 by 24%, or $127.2 million.
• Net income, inclusive of $34.4 million in pre-tax costs for the extinguishment of debt associated with the company's refinancing of its outstanding debt in the third quarter and the income tax benefit, increased to a record $152.9 million, or $1.53 per diluted share, compared to a net loss of $81.7 million, or 96 cents per diluted share, in 2020 and was $136.4 million higher than 2019.
• Gaming operations revenue grew 40% to $69.8 million from $49.7 million a year ago.

Shares traded today at $22.31 against a 52-week range of $12.77-$26.61.

The $180.39 in quarterly revenue beat analyst expectations by $12.9 million while the Q4 GAAP EPS of 88 cents beat expectations by 52 cents, according to Seeking Alpha.

"For 2022, we expect another year of steady growth as our operating results benefit from the continued expansion of our installed base of leased gaming units, growing ship share of gaming machines sold, continued increases in same-store financial access transactions and ongoing organic growth of our loyalty and regulatory compliance solutions," CEO Michael Rumbolz said in the release.