Gaming supplier Everi Holdings Inc. reported a loss of $13.5 million for the quarter ended March 31, compared to net income of $5.9 million a year ago.
Revenue was $113.3 million compared to $123.8 million a year ago. Adjusted EBITDA, a non-GAAP financial measure, was $52.3 million compared to $61.3 million a year ago. Free Cash Flow, a non-GAAP financial measure, was $18.4 million compared to $21.2 million in the prior year.
According to the company, revenue was impacted by the March casino closures due to the Covid-19 pandemic. In its note accompanying the earnings report, the company noted that it took swift action to increase liquidity and reduce cash outflows when the closure began.
Everi CEO Michael Rumbolz said the same in an interview published by Asia Gaming Brief.
“The significant improvement in our operating metrics in the first two months of 2020, including revenue, earnings, and cash flow, demonstrates the strength in our business prior to the outbreak of the Covid-19 pandemic,” Rumbolz said.
“Since the onset of the pandemic and the resulting closure of our customers’ casinos in mid-March, our attention has been on addressing the impact on our employees and their families, our customers and our company. We acted aggressively to preserve cash and improve our liquidity position to allow the company to achieve our long-term goals as our customers’ operations begin to reopen. These actions included dramatically reducing our near-term cash burn rate, accessing the capital markets in April for an incremental $125 million term loan, and amending certain financial covenants of our existing credit agreement.”
In an interview with CDC Gaming Reports, Rumbolz said the company also has adjusted its product roadmap. “We anticipated that there would be a demand for new solutions that are contactless and cashless, and that support social-distancing,” he said. “Even as we took significant actions to reduce costs and capital spending, we also furthered the progress we were making in our innovation and development projects that align with the new normal.”
