Looking Beyond the Obvious: Everi Holdings Inc. (NYSE: EVRI)

On 13 Dec 2019, Everi Holdings Inc. (NYSE: EVRI) spotted trading -7.10% off 52-week high price. On the other end, the stock has been noted 172.06% away from the low price over the last 52-weeks. The stock changed -6.30% to recent value of $12.95. The stock transacted 1653307 shares during most recent day however it has an average volume of 954.44K shares. The company has 80.52M of outstanding shares and 71.6M shares were floated in the market.

Everi Holdings Inc. (EVRI) recently stated record financial results for the third quarter ended September 30, 2019 and reiterated its financial targets for the full year.

Third Quarter 2019 Results Overview

Revenues for the third quarter of 2019 increased 12% to a record $134.6M, from $120.3M in the third quarter of 2018. Games and FinTech section revenues increased 5% to $69.3M and 20% to $65.3M, respectively, for the third quarter of 2019.

Operating income increased 27% to $27.3M for the third quarter of 2019 contrast to $21.5M in the third quarter of 2018, reflecting an about 200 basis point improvement in operating margin to 20% from 18%. Net income increased 350% to $9.3M and diluted earnings per share over tripled to $0.12, contrast with net income of $2.1M and $0.03 per diluted share, in the prior-year period.

Adjusted EBITDA for the third quarter of 2019 increased 11% to a record $64.7M from $58.3M in the third quarter of 2018. Games and FinTech section Adjusted EBITDA increased to $34.6M and $30.1M, respectively, for the three months ended September 30, 2019, contrast with Games and FinTech Adjusted EBITDA for the third quarter 2018 of $31.8M and $26.5M, respectively.

2019 Third Quarter Games Section Highlights

Games section revenues increased 5% to $69.3M in the third quarter of 2019 contrast to $65.8M in the third quarter of 2018.

Revenues from gaming operations increased $5.0M, or 11%, to a record $48.5M in the third quarter of 2019, contrast to $43.5M in the prior-year period. The year-over-year improvement primarily reflects a 15% increase in estimated DWPU.
° DWPU increased 15%, or $4.50, to a record $33.95 in the third quarter of 2019, contrast to $29.45 in the prior-year period. The increase reflects, in part, improvements in overall unit performance following the Company’s investments in design and development of new games and cabinets, capital investments to refresh and upgrade a important portion of the installed base over the last several years and the growth in premium unit placements, including WAP games. This was the eighth consecutive quarter of year-over-year growth in DWPU.
° The installed base at September 30, 2019 increased by 156 units year over year to a record quarter-ending level of 14,272 units and grew by 578 units on a quarterly sequential basis, primarily reflecting the continued expansion of premium units within the installed base. With over 30% of the installed units now being premium games and the steady demand for its newest products, the Company is favorably positioned for further gaming operations revenue growth in the fourth quarter.
° The premium portion of the installed base increased 55% year over year, or by 1,555 units, to 4,395 units, which was 982 units higher on a quarterly sequential basis. WAP units, a subcomponent of premium units, grew by 331 units year over year and by 66 units on a quarterly sequential basis to 866 units at September 30, 2019.
° Interactive revenue over doubled to $1.2M in the third quarter of 2019 contrast to $0.5M in the prior-year period.
° Revenues from the New York Lottery business were $4.8M in the third quarter of 2019 contrast to $4.7M in the prior-year period.

Revenues generated from the sale of gaming units and other related parts and equipment totaled $19.6M in the third quarter of 2019 contrast to revenues of $21.1M in the prior-year period. Unit sales reduced by 125 units to 1,040 units in the third quarter of 2019 contrast to 1,165 units in the prior-year period, primarily reflecting a 60-unit decrease in sales to international consumers and a 120-unit conversion from lease to sale at one consumer location in the previous year. The ASP increased to $17,983 contrast with $17,005 in the prior-year period.  The ASP for the third quarter 2018 reflects the lower-priced international unit sales.

Other gaming revenues, which primarily includes revenues from TournEvent of Champions® qualifying events at participating casinos, was $1.1M for the third quarter of 2019 contrast with $1.2M in the prior-year period.

Its earnings per share (EPS) expected to touch remained 113.70% for this year while earning per share for the next 5-years is expected to reach at 20.00%. EVRI has a gross margin of 79.50% and an operating margin of 18.80% while its profit margin remained 4.90% for the last 12 months.   According to the most recent quarter its current ratio was 1 that represents company’s ability to meet its current financial obligations. The price moved ahead of 0.73% from the mean of 20 days, 17.12% from mean of 50 days SMA and performed 23.43% from mean of 200 days price. Company’s performance for the week was 5.97%, 4.02% for month and YTD performance remained 151.46%.

 

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