Everi Holdings Inc. reported record financial results for the first quarter ended March 31, 2021. The first-quarter results are a quarterly sequential improvement from the 2020 fourth quarter and reflect the ongoing but reduced impact from the Covid-19 pandemic, as well as strong casino patron demand.
As the first quarter 2020 financial results reflect the onset of the Covid-19 pandemic, Everi officials say a more meaningful comparison for the 2021 first quarter performance is the 2019 first quarter. The 2019 first-quarter results were higher than the 2020 first quarter results.
Among the highlights of Q1 202, revenues rose to a first-quarter record $139.1 million compared to $123.8 million in the 2019 first quarter. Net income improved to a quarterly record $20.5 million, or 21 cents per diluted share, compared to $5.9 million, or 8 cents per diluted share, in the 2019 first quarter. Adjusted EBITDA, a non-GAAP financial measure, increased to a quarterly record $75.4 million compared to $61.3 million in the 2019 first quarter. Free cash flow, a non-GAAP financial measure, was $43.5 million compared to $21.2 million in the 2019 first quarter.
“We are off to a strong start in 2021 with first-quarter record revenue, and all-time quarterly record net income, adjusted EBITDA and free cash flow,” said Everi CEO Michael Rumbolz. “The substantial improvement in our operating results demonstrates the significant ongoing demand for our products in both our games and fintech segments. Our success in developing player-popular slot products and the industry attractiveness of our trusted financial and loyalty products are a direct reflection of our continued investment in the creation of new and enhanced products and services, as well as the talent and dedication of our entire Everi team.
“Our games segment momentum continues to reflect ongoing growth in our installed base of gaming operations units, in particular the consistent increases in placements of our higher-earning premium units that are helping to drive higher daily win per unit. We also believe that the ship share of our for-sale gaming units continues to expand.
“Our fintech segment continues to benefit from our established leading share in the gaming fintech market as well as strong demand for our newer loyalty products and services together with a high level of interest in our cashless digital wallet solution. A key driver of the growth in our games and fintech business segments is our high-margin, recurring revenue streams, which we expect will help sustain our near- and long-term growth as the casino industry continues to recover.
“Importantly, our product momentum is translating into improvement in both our earnings and cash flow,” added Rumbolz. “This improvement enables us to continue to prudently invest in product innovation to sustain our growth, while also positioning Everi to return to our focus on reducing leverage. Our strong start to 2021, which has continued into the second quarter, is a great indication that we are already regaining our pre-pandemic momentum, including our expectation that 2021 full-year results will exceed the levels achieved in 2019.”