Q1 2024 Everi Holdings Inc Earnings Call Transcript
Key Points
- Everi Holdings Inc (EVRI) is progressing with its planned merger with IGT's global gaming and play digital businesses, aiming to close in late 2024 or early 2025, which is expected to accelerate revenue growth and expand into new jurisdictions.
- The company has increased investment in research and development, leading to the approval of 34 new games in the last four months of 2023 and an additional 18 year-to-date, which are beginning to show positive market recognition.
- Everi Holdings Inc (EVRI) reported strong performance in its Player Classic signature cabinet and is optimistic about the newly introduced game themes.
- The company's core fintech cash access services business continues to grow, processing more transactions and delivering more dollars to customers' operations than in any previous quarter.
- Everi Holdings Inc (EVRI) anticipates a special dividend to shareholders prior to the merger close, reflecting the company's strong free cash flow generation.
- The transition to new family cabinet and game content has been challenging and slower than expected, impacting business performance in the first quarter.
- Revenue from both gaming operations and gaming equipment and systems declined year over year, with a notable decline in installed base by 595 units from year-end.
- The early performance of the Dynasty View cabinet was not as strong as anticipated, although improvements are expected with the rollout of additional game themes.
- Financial access services experienced some weakness in January due to weather issues, although there was some recovery in February and March.
- The company incurred $15.7 million in one-time professional fees, employee retention awards, and other costs related to the planned merger, which impacted the reported operating expense trends.
Good morning and thank you for standing by. Welcome to the Everi Holdings 2024 first quarter and year end earnings conference call. (Operator Instructions) As a reminder, this call is being recorded.
Now let me turn the call over to Jennifer Hills, Vice President, Investor Relations. Please go ahead.
Thank you, operator. Let me begin with a reminder that our Safe Harbor disclaimer, which covers today's call and webcast contains forward looking statements that involve risks and uncertainties and could cause actual results to differ materially from those discussed on today's call. These risks and uncertainties include but are not limited to those contained in our earnings release today and in our SEC filings, which are posted in the Investors section of our corporate website at everi.com.
Because of the potential risks, we caution not to place undue reliance on forward-looking statements. We do not intend and assume no obligation to update any forward looking statements which are made only as of
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