Las Vegas-based slot machine and payment kiosk specialist, Everi Holdings, has recorded revenue of $111m in Q1 2018 allowing the company to pursue a re-pricing to a ‘Senior Secured Term Loan’ in order to ‘lower cash interest costs and lower its cost of capital’ according to its latest financial report.
Everi’s two main sources of revenue include its games segment and its payment segment. The games segments revenue accounted for $60.2m up 8.8% from Q1 2017. The payment segment grew more rapidly at 10.9%. However, its revenue total was slightly less than its games counterpart at $50.8m.
The company’s two major segments helped the overall revenue improve from $101m in Q1 2017 to $110m in Q1 2018, representing growth of 9.9%.
Net income in the Q1 2018 report totalled $4.6m which was a turnaround from the $3.5m loss recorded in Q1 2017.
Operating income also grew 8.4% to $24.5m compared to $22.6m during Q1 2017. This was partly credited to the unit sales average price which rose by 4% along with the 4.5% increase in daily win per unit.
These successful results saw the company's EBITDA improve from $54.2m during Q1 2017 to $58m in Q12018.
Commenting on the report Michael Rumbolz, President and Chief Executive Officer of Everi, said: “Our first quarter growth and expectation for our Games and Payments segments’ performance in 2018 offer clear evidence that our investments are generating solid returns. We continue to update and transform our product portfolio and expand our ability to provide casino operators with the products they need to grow revenues."
Everi also announced that it intends to re-price its $814m Term Loan, scheduled to mature in 2024, taking advantage of the company’s stronger financial position.
Discussing the refinancing Randy Taylor, Executive Vice President and Chief Financial Officer for Everi, added: “We have established a track record of generating consistent improvements in our financial profile which we believe creates the opportunity to continue to pursue actions to further lower our annual cash interest costs. If successful, the re-pricing of our Term Loan will further benefit our future free cash flow generation that we believe is already poised to accelerate going forward. Our priority for free cash flow is to reduce leverage.”