2018 Q3 Form 10-Q Financial Statement

#000131856818000034 Filed on November 06, 2018

View on sec.gov

Income Statement

Concept 2018 Q3 2017 Q3
Revenue $120.3M $247.3M
YoY Change -51.35% 11.32%
Cost Of Revenue $24.60M $163.7M
YoY Change -84.97% 14.69%
Gross Profit $95.73M $83.66M
YoY Change 14.42% 5.24%
Gross Profit Margin 79.55% 33.83%
Selling, General & Admin
YoY Change
% of Gross Profit
Research & Development $5.407M $4.545M
YoY Change 18.97% 1.91%
% of Gross Profit 5.65% 5.43%
Depreciation & Amortization $17.30M $12.54M
YoY Change 38.0% 1.39%
% of Gross Profit 18.08% 14.99%
Operating Expenses $5.407M $4.545M
YoY Change 18.97% 1.91%
Operating Profit $21.51M $19.80M
YoY Change 8.66% 71.06%
Interest Expense -$20.16M -$23.37M
YoY Change -13.73% -5.83%
% of Operating Profit -93.72% -118.05%
Other Income/Expense, Net -$20.16M -$23.37M
YoY Change -13.73% -5.83%
Pretax Income $1.350M -$3.573M
YoY Change -137.78% -73.02%
Income Tax -$719.0K $716.0K
% Of Pretax Income -53.26%
Net Earnings $2.069M -$4.289M
YoY Change -148.24% -48.04%
Net Earnings / Revenue 1.72% -1.73%
Basic Earnings Per Share $0.03 -$0.06
Diluted Earnings Per Share $0.03 -$0.06
COMMON SHARES
Basic Shares Outstanding 69.75M shares 66.90M shares
Diluted Shares Outstanding 74.59M shares 66.90M shares

Balance Sheet

Concept 2018 Q3 2017 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $128.7M $108.5M
YoY Change 18.62% 19.89%
Cash & Equivalents $128.7M $108.5M
Short-Term Investments
Other Short-Term Assets $3.932M $4.697M
YoY Change -16.29% -75.02%
Inventory $25.90M $23.79M
Prepaid Expenses $10.07M $7.870M
Receivables $286.9M $172.4M
Other Receivables $0.00 $0.00
Total Short-Term Assets $464.2M $327.2M
YoY Change 41.87% 49.69%
LONG-TERM ASSETS
Property, Plant & Equipment $118.0M $109.4M
YoY Change 7.86% 6.73%
Goodwill $640.6M $640.6M
YoY Change 0.0%
Intangibles $296.3M $338.1M
YoY Change -12.35%
Long-Term Investments
YoY Change
Other Assets $6.319M $7.450M
YoY Change -15.18% -13.37%
Total Long-Term Assets $1.070B $1.098B
YoY Change -2.58% -11.25%
TOTAL ASSETS
Total Short-Term Assets $464.2M $327.2M
Total Long-Term Assets $1.070B $1.098B
Total Assets $1.534B $1.426B
YoY Change 7.62% -2.1%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $66.07M $62.42M
YoY Change 5.84% -62.37%
Accrued Expenses $26.70M $25.50M
YoY Change 4.71% -9.89%
Deferred Revenue $13.47M
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $8.200M $8.200M
YoY Change 0.0% -18.0%
Total Short-Term Liabilities $452.7M $332.3M
YoY Change 36.23% 46.53%
LONG-TERM LIABILITIES
Long-Term Debt $1.156B $1.131B
YoY Change 2.26% 1.61%
Other Long-Term Liabilities $3.100M $25.60M
YoY Change -87.89% 675.76%
Total Long-Term Liabilities $1.195B $1.217B
YoY Change -1.84% 9.05%
TOTAL LIABILITIES
Total Short-Term Liabilities $452.7M $332.3M
Total Long-Term Liabilities $1.195B $1.217B
Total Liabilities $1.647B $1.549B
YoY Change 6.33% 14.92%
SHAREHOLDERS EQUITY
Retained Earnings -$233.7M -$221.2M
YoY Change 5.66%
Common Stock $297.8M $274.0M
YoY Change 8.7%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$113.2M -$123.8M
YoY Change
Total Liabilities & Shareholders Equity $1.534B $1.426B
YoY Change 7.62% -2.1%

Cashflow Statement

Concept 2018 Q3 2017 Q3
OPERATING ACTIVITIES
Net Income $2.069M -$4.289M
YoY Change -148.24% -48.04%
Depreciation, Depletion And Amortization $17.30M $12.54M
YoY Change 38.0% 1.39%
Cash From Operating Activities $43.20M -$4.100M
YoY Change -1153.66% -113.95%
INVESTING ACTIVITIES
Capital Expenditures -$20.60M -$26.40M
YoY Change -21.97% 28.78%
Acquisitions
YoY Change
Other Investing Activities -$5.200M -$10.10M
YoY Change -48.51% 1342.86%
Cash From Investing Activities -$25.80M -$36.50M
YoY Change -29.32% 72.17%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 1.000M 100.0K
YoY Change 900.0% -104.0%
NET CHANGE
Cash From Operating Activities 43.20M -4.100M
Cash From Investing Activities -25.80M -36.50M
Cash From Financing Activities 1.000M 100.0K
Net Change In Cash 18.40M -40.50M
YoY Change -145.43% -810.53%
FREE CASH FLOW
Cash From Operating Activities $43.20M -$4.100M
Capital Expenditures -$20.60M -$26.40M
Free Cash Flow $63.80M $22.30M
YoY Change 186.1% -55.31%

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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">BUSINESS</font></div><div style="line-height:120%;padding-bottom:12px;padding-top:12px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Everi Holdings Inc. (&#8220;Everi Holdings&#8221;, &#8220;Holdings&#8221; or &#8220;Everi&#8221;) is a holding company, the assets of which are the issued and outstanding shares of capital stock of each of Everi Games Holding Inc. (&#8220;Everi Games Holding&#8221;), which owns all of the issued and outstanding shares of capital stock of Everi Games Inc. (&#8220;Everi Games&#8221; or &#8220;Games&#8221;) and Everi Payments Inc. (&#8220;Everi Payments&#8221; or &#8220;Payments&#8221;). Unless otherwise indicated, the terms the &#8220;Company,&#8221; &#8220;we,&#8221; &#8220;us&#8221; and &#8220;our&#8221; refer to Holdings together with its consolidated subsidiaries. </font></div><div style="line-height:120%;padding-bottom:12px;padding-top:12px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Everi is a leading supplier of technology solutions for the casino gaming industry.&#160;We provide casino operators with a diverse portfolio of products including innovative gaming machines that power the casino floor, and casino operational and management systems that include comprehensive end-to-end payments solutions, critical intelligence offerings, and gaming operations efficiency technology.</font></div><div style="line-height:120%;padding-bottom:12px;padding-top:12px;text-align:justify;font-size:11pt;"><font style="font-family:inherit;font-size:10pt;">Everi Holdings reports its results of operations based on </font><font style="font-family:inherit;font-size:10pt;">two</font><font style="font-family:inherit;font-size:10pt;"> operating segments: Games and FinTech. Effective </font><font style="font-family:inherit;font-size:10pt;">April&#160;1, 2018</font><font style="font-family:inherit;font-size:10pt;">, we changed the name of the operating segment previously referred to as &#8220;Payments&#8221; to &#8220;Financial Technology Solutions&#8221; (&#8220;Everi FinTech&#8221; or &#8220;FinTech&#8221;). We believe this reference more accurately reflects the focus of the business segment on delivering innovative and integrated solutions to enhance the efficiency of the casino operator, support the comprehensive regulatory and tax requirements of their gaming customers and improve players&#8217; gaming experience by providing easy access to their funds and payment of winnings</font><font style="font-family:inherit;font-size:11pt;">. </font></div><div style="line-height:120%;padding-bottom:12px;padding-top:12px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Everi Games provides a number of products and services for casinos, including: (a) gaming machines primarily comprised of Class II and Class III slot machines placed under participation or fixed fee lease arrangements or sold to casino customers, including the award-winning TournEvent&#174;; and (b) system software, licenses, ancillary equipment and maintenance to its casino customers. Everi Games also develops and manages the central determinant system for the video lottery terminals installed in the State of New York.</font></div><div style="line-height:120%;padding-bottom:12px;padding-top:12px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Everi FinTech provides its casino customers cash access and related products and services, including: (a) access to cash at gaming facilities via Automated Teller Machine (&#8220;ATM&#8221;) cash withdrawals, credit card cash access transactions, point of sale (&#8220;POS&#8221;) debit card cash access transactions and check verification and warranty services; (b) equipment that provides cash access and efficiency related services; (c) products and services that improve credit decision making, automate cashier operations and enhance patron marketing activities for gaming establishments; (d) compliance, audit and data solutions; and (e) online payment processing solutions for gaming operators in states that offer intrastate, Internet-based gaming and lottery activities.</font></div></div>
us-gaap Prior Period Reclassification Adjustment Description
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:12px;padding-top:12px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Reclassifications were made to the prior-period Financial Statements to conform to the current period presentation, except for the adoption impact of the application of ASC 606 utilizing the modified retrospective transition method.</font></div></div>

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