2019 Q1 Form 10-Q Financial Statement

#000131856819000074 Filed on May 07, 2019

View on sec.gov

Income Statement

Concept 2019 Q1 2018 Q1
Revenue $123.8M $111.0M
YoY Change 11.51% -53.27%
Cost Of Revenue $24.64M $20.88M
YoY Change 17.98% -86.37%
Gross Profit $99.14M $90.12M
YoY Change 10.01% 6.9%
Gross Profit Margin 80.09% 81.19%
Selling, General & Admin
YoY Change
% of Gross Profit
Research & Development $7.531M $4.311M
YoY Change 74.69% -5.11%
% of Gross Profit 7.6% 4.78%
Depreciation & Amortization $14.79M $12.83M
YoY Change 15.31% -54.45%
% of Gross Profit 14.92% 14.23%
Operating Expenses $7.531M $4.311M
YoY Change 74.69% -5.11%
Operating Profit $25.87M $24.49M
YoY Change 5.64% 8.35%
Interest Expense -$20.40M $20.31M
YoY Change -200.46% -180.9%
% of Operating Profit -78.85% 82.92%
Other Income/Expense, Net -$20.40M $20.31M
YoY Change -200.46% -181.04%
Pretax Income $5.472M $4.184M
YoY Change 30.78% -270.5%
Income Tax -$388.0K -$425.0K
% Of Pretax Income -7.09% -10.16%
Net Earnings $5.860M $4.609M
YoY Change 27.14% -231.39%
Net Earnings / Revenue 4.73% 4.15%
Basic Earnings Per Share $0.08 $0.07
Diluted Earnings Per Share $0.08 $0.06
COMMON SHARES
Basic Shares Outstanding 70.33M shares 68.69M shares
Diluted Shares Outstanding 75.26M shares 73.29M shares

Balance Sheet

Concept 2019 Q1 2018 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $139.9M $132.6M
YoY Change 5.51% 3.67%
Cash & Equivalents $139.9M $132.6M
Short-Term Investments
Other Short-Term Assets $3.215M $3.522M
YoY Change -8.72% -83.69%
Inventory $24.80M $24.71M
Prepaid Expenses $10.81M $9.326M
Receivables $331.6M $209.6M
Other Receivables $0.00 $0.00
Total Short-Term Assets $518.6M $387.4M
YoY Change 33.85% 47.81%
LONG-TERM ASSETS
Property, Plant & Equipment $113.1M $118.0M
YoY Change -4.21% 21.31%
Goodwill $673.4M $640.6M
YoY Change 5.13%
Intangibles $293.0M $315.4M
YoY Change -7.12%
Long-Term Investments
YoY Change
Other Assets $21.67M $6.748M
YoY Change 221.13% -11.21%
Total Long-Term Assets $1.113B $1.087B
YoY Change 2.4% 2.73%
TOTAL ASSETS
Total Short-Term Assets $518.6M $387.4M
Total Long-Term Assets $1.113B $1.087B
Total Assets $1.632B $1.475B
YoY Change 10.66% 11.68%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $85.38M $72.55M
YoY Change 17.7% -62.7%
Accrued Expenses $28.30M $23.30M
YoY Change 21.46% -25.32%
Deferred Revenue $23.89M
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 $515.3M $389.3M
YoY Change 32.37% 50.89%
LONG-TERM LIABILITIES
Long-Term Debt $1.154B $1.158B
YoY Change -0.4% 4.27%
Other Long-Term Liabilities $31.30M $14.00M
YoY Change 123.57% 382.76%
Total Long-Term Liabilities $1.212B $1.210B
YoY Change 0.19% 8.64%
TOTAL LIABILITIES
Total Short-Term Liabilities $515.3M $389.3M
Total Long-Term Liabilities $1.212B $1.210B
Total Liabilities $1.728B $1.599B
YoY Change 8.03% 11.84%
SHAREHOLDERS EQUITY
Retained Earnings -$223.6M -$237.2M
YoY Change -5.73%
Common Stock $305.8M $288.8M
YoY Change 5.87%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$95.80M -$124.7M
YoY Change
Total Liabilities & Shareholders Equity $1.632B $1.475B
YoY Change 10.66% 11.68%

Cashflow Statement

Concept 2019 Q1 2018 Q1
OPERATING ACTIVITIES
Net Income $5.860M $4.609M
YoY Change 27.14% -231.39%
Depreciation, Depletion And Amortization $14.79M $12.83M
YoY Change 15.31% -54.45%
Cash From Operating Activities -$112.2M $32.75M
YoY Change -442.55% 4.27%
INVESTING ACTIVITIES
Capital Expenditures -$22.20M -$26.30M
YoY Change -15.59% 52.91%
Acquisitions $20.00M $0.00
YoY Change
Other Investing Activities -$25.30M -$4.600M
YoY Change 450.0% 53.33%
Cash From Investing Activities -$47.49M -$30.91M
YoY Change 53.64% 52.81%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $15.00K $38.00K
YoY Change -60.53% 442.86%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $2.621M $2.000M
YoY Change 31.05% -179.94%
NET CHANGE
Cash From Operating Activities -$112.2M $32.75M
Cash From Investing Activities -$47.49M -$30.91M
Cash From Financing Activities $2.621M $2.000M
Net Change In Cash -$157.4M $3.988M
YoY Change -4046.84% -55.62%
FREE CASH FLOW
Cash From Operating Activities -$112.2M $32.75M
Capital Expenditures -$22.20M -$26.30M
Free Cash Flow -$89.99M $59.05M
YoY Change -252.39% 21.48%

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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;). Unless otherwise indicated, the terms the &#8220;Company,&#8221; &#8220;we,&#8221; &#8220;us,&#8221; and &#8220;our&#8221; refer to Everi 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 financial technology solutions, critical intelligence offerings, and gaming operations efficiency technology. Everi also provides tier one land-based game content to online social and real-money markets via its Remote Game Server and operates social play for fun casinos.</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 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 April&#160;1, 2018, 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></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 gaming operators products and services, 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 </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">TournEvent</font><font style="font-family:inherit;font-size:10pt;">&#174; terminals that allow operators to switch from in-revenue gaming to out-of-revenue tournaments; (b) system software, licenses, and ancillary equipment; and (c) business-to-consumer and business-to-business interactive activities. In addition, Everi Games develops and manages the central determinant system for the video lottery terminals (&#8220;VLTs&#8221;) installed in the State of New York, and it also provides similar technology in certain tribal jurisdictions.</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 gaming operators 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) self-service enrollment and loyalty card printing equipment; (d) products and services that improve credit decision making, automate cashier operations, and enhance patron marketing activities for gaming establishments; (e) compliance, audit, and data solutions; and (f) online payment processing solutions for gaming operators in states that offer intrastate, Internet-based gaming and lottery activities.</font></div></div>

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