2022 Q1 Form 10-Q Financial Statement

#000131856822000123 Filed on May 10, 2022

View on sec.gov

Income Statement

Concept 2022 Q1 2021 Q1
Revenue $175.6M $139.1M
YoY Change 26.24% 22.77%
Cost Of Revenue $31.83M $21.60M
YoY Change 47.35% 9.64%
Gross Profit $143.8M $117.5M
YoY Change 22.37% 25.53%
Gross Profit Margin 81.88% 84.46%
Selling, General & Admin
YoY Change
% of Gross Profit
Research & Development $12.52M $8.413M
YoY Change 48.81% 0.69%
% of Gross Profit 8.71% 7.16%
Depreciation & Amortization $15.22M $16.18M
YoY Change -5.92% -0.41%
% of Gross Profit 10.59% 13.77%
Operating Expenses $12.52M $8.413M
YoY Change 48.81% 0.69%
Operating Profit $52.59M $40.19M
YoY Change 30.84% 285.52%
Interest Expense -$11.35M -$18.47M
YoY Change -38.56% 5.55%
% of Operating Profit -21.58% -45.95%
Other Income/Expense, Net -$11.35M -$18.47M
YoY Change -38.56% -25.75%
Pretax Income $41.24M $21.72M
YoY Change 89.86% -250.32%
Income Tax $9.721M $1.189M
% Of Pretax Income 23.57% 5.47%
Net Earnings $31.52M $20.53M
YoY Change 53.51% -252.62%
Net Earnings / Revenue 17.95% 14.76%
Basic Earnings Per Share $0.34 $0.24
Diluted Earnings Per Share $0.31 $0.21
COMMON SHARES
Basic Shares Outstanding 91.41M shares 86.98M shares
Diluted Shares Outstanding 101.5M shares 97.97M shares

Balance Sheet

Concept 2022 Q1 2021 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $277.5M $340.1M
YoY Change -18.41% 581.56%
Cash & Equivalents $269.4M $335.1M
Short-Term Investments
Other Short-Term Assets $2.482M $1.282M
YoY Change 93.6% -7.17%
Inventory $45.70M $29.73M
Prepaid Expenses $15.74M $13.18M
Receivables $173.4M $126.1M
Other Receivables $0.00 $0.00
Total Short-Term Assets $516.4M $510.8M
YoY Change 1.1% 172.97%
LONG-TERM ASSETS
Property, Plant & Equipment $119.3M $109.9M
YoY Change 8.54% -13.49%
Goodwill $695.4M $682.0M
YoY Change 1.96% 0.07%
Intangibles $221.7M $203.1M
YoY Change 9.18% -23.56%
Long-Term Investments
YoY Change
Other Assets $24.45M $19.81M
YoY Change 23.43% 2.41%
Total Long-Term Assets $1.100B $1.029B
YoY Change 6.86% -7.22%
TOTAL ASSETS
Total Short-Term Assets $516.4M $510.8M
Total Long-Term Assets $1.100B $1.029B
Total Assets $1.616B $1.540B
YoY Change 4.95% 18.79%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $47.18M $79.96M
YoY Change -40.99% 25.42%
Accrued Expenses $33.42M $29.60M
YoY Change 12.89% 37.67%
Deferred Revenue $38.88M $27.89M
YoY Change 39.41% -10.69%
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $6.000M $1.250M
YoY Change 380.0%
Total Short-Term Liabilities $407.0M $356.6M
YoY Change 14.15% 108.98%
LONG-TERM LIABILITIES
Long-Term Debt $974.6M $1.129B
YoY Change -13.66% 8.37%
Other Long-Term Liabilities $22.62M $16.10M
YoY Change 40.52% 12.59%
Total Long-Term Liabilities $997.3M $1.166B
YoY Change -14.45% 7.81%
TOTAL LIABILITIES
Total Short-Term Liabilities $407.0M $356.6M
Total Long-Term Liabilities $997.3M $1.166B
Total Liabilities $1.404B $1.522B
YoY Change -7.75% 21.6%
SHAREHOLDERS EQUITY
Retained Earnings -$110.2M -$274.1M
YoY Change -59.78% 21.07%
Common Stock $511.4M $472.0M
YoY Change 8.34% 4.64%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $211.7M $17.53M
YoY Change
Total Liabilities & Shareholders Equity $1.616B $1.540B
YoY Change 4.95% 18.79%

Cashflow Statement

Concept 2022 Q1 2021 Q1
OPERATING ACTIVITIES
Net Income $31.52M $20.53M
YoY Change 53.51% -252.62%
Depreciation, Depletion And Amortization $15.22M $16.18M
YoY Change -5.92% -0.41%
Cash From Operating Activities $5.274M $111.6M
YoY Change -95.27% -185.3%
INVESTING ACTIVITIES
Capital Expenditures -$23.64M -$20.00M
YoY Change 18.2% -11.11%
Acquisitions $13.32M $10.00M
YoY Change 33.18% 0.0%
Other Investing Activities -$13.26M -$9.900M
YoY Change 33.95% -6.6%
Cash From Investing Activities -$36.90M -$29.96M
YoY Change 23.18% -9.4%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $400.0K $173.0K
YoY Change 131.21% 311.9%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -$1.201M $1.799M
YoY Change -166.76% -102.46%
NET CHANGE
Cash From Operating Activities $5.274M $111.6M
Cash From Investing Activities -$36.90M -$29.96M
Cash From Financing Activities -$1.201M $1.799M
Net Change In Cash -$32.69M $83.33M
YoY Change -139.23% -134.79%
FREE CASH FLOW
Cash From Operating Activities $5.274M $111.6M
Capital Expenditures -$23.64M -$20.00M
Free Cash Flow $28.91M $131.6M
YoY Change -78.03% -221.48%

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BUSINESS<div style="margin-bottom:9pt;margin-top:9pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Everi Holdings Inc. (“Everi Holdings,” or “Everi”) is a holding company, the assets of which are the issued and outstanding shares of capital stock of each of Everi Payments Inc. (“Everi FinTech” or “FinTech”) and Everi Games Holding Inc., which owns all of the issued and outstanding shares of capital stock of Everi Games Inc. (“Everi Games” or “Games”). Unless otherwise indicated, the terms the “Company,” “we,” “us,” and “our” refer to Everi Holdings together with its consolidated subsidiaries.</span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Everi is a supplier of entertainment and technology solutions for the casino and digital gaming industry. The Company develops game content and gaming machines, gaming systems and services for land-based and iGaming operators. The Company is also a provider of financial technology solutions that power the casino floor, including products and services that facilitate cash and cashless financial transactions, self-service player loyalty tools and applications, and regulatory and intelligence software.</span></div><div style="text-align:justify"><span><br/></span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Everi reports its financial performance, and organizes and manages its operations, across the following two business segments: (i) Games and (ii) Financial Technology Solutions (“FinTech”). </span></div><div style="text-align:justify"><span><br/></span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Everi Games provides gaming operators with gaming technology and entertainment products and services, including: (i) gaming machines, primarily comprising Class II and Class III slot machines placed under participation or fixed-fee lease arrangements or sold to casino customers; (ii) providing and maintaining the central determinant systems for the video lottery terminals (“VLTs”) installed in the State of New York and similar technology in certain tribal jurisdictions; and (iii) business-to-business (“B2B”) </span><span style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">digital online gaming activities.</span></div><div style="text-align:justify"><span><br/></span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Everi FinTech provides gaming operators with financial technology products and services, including: (i) financial access and related services supporting digital, cashless and physical cash options across mobile, assisted and self-service channels; (ii) loyalty and marketing software and tools, regulatory and compliance (“RegTech”) software solutions, other information-related products and services, and hardware maintenance services; and (iii) associated casino patron self-service hardware that utilizes our financial access, software and other services. Our services operate as part of an end-to-end security suite to protect against cyber-related attacks and maintain the necessary secured environments to maintain compliance with applicable regulatory requirements. These solutions include: access to cash and cashless funding at gaming facilities via Automated Teller Machine (“ATM”) debit withdrawals, credit card financial access transactions, and point of sale (“POS”) debit card purchases at casino cages, kiosk and mobile POS devices; accounts for the CashClub Wallet, check warranty services, self-service ATMs and fully integrated kiosk and maintenance services; self-service loyalty tools and promotion management software; compliance, audit, and data software; casino credit data and reporting services; marketing and promotional offering subscription-based services; and other ancillary offerings. </span></div><div style="text-align:justify"><span><br/></span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Impact of the Coronavirus Disease 2019 (“COVID-19”) Pandemic</span></div><div style="margin-bottom:9pt;margin-top:9pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:112%">The COVID-19 pandemic has negatively impacted the global economy, disrupted global supply chains, lowered equity market valuations, created significant volatility in the financial markets, increased unemployment levels, and caused temporary, and in certain cases, permanent closures of many businesses. The initial impacts from the COVID-19 pandemic have begun to subside with certain aspects of the global economy, equity market valuations, and increased unemployment levels showing signs of recovery. The gaming industry was not immune to these factors as our casino customers closed their gaming establishments in the first quarter of 2020, with many beginning to reopen their operations over the remainder of 2020 and throughout 2021. </span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:112%">Since the onset of COVID-19, we have implemented measures to mitigate our exposure throughout the global pandemic. While there may be further uncertainty facing our customers as a result of COVID-19, we continue to evaluate our business strategies and the impacts of the global pandemic on our results of operations and financial condition and make business decisions to mitigate further risk. While gaming industry conditions have improved significantly in the first quarter of 2022 and year ended December 31, 2021, compared to 2020, it is unclear if the customer equipment purchases will consistently return to pre-COVID levels. Resurgences of COVID-19 and its variants could impact future customer operations or our own; however, we continue to monitor the impacts of the global pandemic and make adjustments to our business, accordingly. </span></div><div style="text-align:justify"><span><br/></span></div><div style="text-align:justify"><span style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Our revenues and liquidity for the first quarter of 2022 exceeded the first quarter of 2021, as nearly all of our casino customer locations have again reopened. With various limitations still in effect, we expect that demand and supply for our products and </span></div><div style="text-align:justify"><span style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">services may be tempered in the short-term, to the extent gaming activity decreases at our customers’ locations, or fails to increase at expected rates, and to the extent our customers decide to continue to restrict their capital spending as a result of uncertainty in the industry, or that supply chain disruptions might impact customer deliveries or otherwise.</span></div><div style="text-align:justify"><span><br/></span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The impact of the COVID-19 pandemic also exacerbates the risks disclosed in our Annual Report on Form 10-K for the year ended December 31, 2021 (the “Annual Report”), including, but not limited to: our ability to generate revenues and, earn profits, our ability to service existing and attract new customers and maintain our overall competitiveness in the market; the potential for significant fluctuations in demand for our products and services; overall trends in the gaming industry impacting our business, and</span><span style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> potential volatility in our stock price, among other concerns such as cybersecurity exposure.</span></div>
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CY2022Q1 us-gaap Other Assets Miscellaneous Noncurrent
OtherAssetsMiscellaneousNoncurrent
355000 USD
CY2021Q4 us-gaap Other Assets Miscellaneous Noncurrent
OtherAssetsMiscellaneousNoncurrent
418000 USD
CY2022Q1 us-gaap Other Assets Noncurrent
OtherAssetsNoncurrent
24450000 USD
CY2021Q4 us-gaap Other Assets Noncurrent
OtherAssetsNoncurrent
19659000 USD
CY2022Q1 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
371356000 USD
CY2022Q1 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
252061000 USD
CY2022Q1 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
119295000 USD
CY2021Q4 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
362919000 USD
CY2021Q4 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
242926000 USD
CY2021Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
119993000 USD
CY2022Q1 us-gaap Depreciation
Depreciation
15200000 USD
CY2021Q1 us-gaap Depreciation
Depreciation
16200000 USD
CY2022Q1 us-gaap Goodwill
Goodwill
695400000 USD
CY2021Q4 us-gaap Goodwill
Goodwill
682700000 USD
CY2022Q1 us-gaap Goodwill Impairment Loss
GoodwillImpairmentLoss
0 USD
CY2021Q1 us-gaap Goodwill Impairment Loss
GoodwillImpairmentLoss
0 USD
CY2022Q1 us-gaap Finite Lived Intangible Assets Gross
FiniteLivedIntangibleAssetsGross
747156000 USD
CY2022Q1 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
525419000 USD
CY2022Q1 us-gaap Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
221737000 USD
CY2021Q4 us-gaap Finite Lived Intangible Assets Gross
FiniteLivedIntangibleAssetsGross
724931000 USD
CY2021Q4 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
510337000 USD
CY2021Q4 us-gaap Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
214594000 USD
CY2022Q1 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
13600000 USD
CY2021Q1 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
14700000 USD
CY2022Q1 us-gaap Impairment Of Intangible Assets Excluding Goodwill
ImpairmentOfIntangibleAssetsExcludingGoodwill
0 USD
CY2021Q1 us-gaap Impairment Of Intangible Assets Excluding Goodwill
ImpairmentOfIntangibleAssetsExcludingGoodwill
0 USD
CY2021Q4 evri Processing And Related Expenses Current
ProcessingAndRelatedExpensesCurrent
3619000 USD
CY2022Q1 evri Customer Commissions Payable
CustomerCommissionsPayable
65764000 USD
CY2021Q4 evri Customer Commissions Payable
CustomerCommissionsPayable
57515000 USD
CY2022Q1 us-gaap Accounts Payable Current
AccountsPayableCurrent
47184000 USD
CY2021Q4 us-gaap Accounts Payable Current
AccountsPayableCurrent
25453000 USD
CY2022Q1 us-gaap Contract With Customer Liability Current
ContractWithCustomerLiabilityCurrent
38877000 USD
CY2021Q4 us-gaap Contract With Customer Liability Current
ContractWithCustomerLiabilityCurrent
36238000 USD
CY2022Q1 us-gaap Employee Related Liabilities Current
EmployeeRelatedLiabilitiesCurrent
17893000 USD
CY2021Q4 us-gaap Employee Related Liabilities Current
EmployeeRelatedLiabilitiesCurrent
29125000 USD
CY2022Q1 us-gaap Operating Lease Liability Current
OperatingLeaseLiabilityCurrent
5842000 USD
CY2021Q4 us-gaap Operating Lease Liability Current
OperatingLeaseLiabilityCurrent
5663000 USD
CY2022Q1 us-gaap Interest Payable Current
InterestPayableCurrent
5816000 USD
CY2021Q4 us-gaap Interest Payable Current
InterestPayableCurrent
9273000 USD
CY2022Q1 evri Processing And Related Expenses Current
ProcessingAndRelatedExpensesCurrent
3865000 USD
CY2021Q4 us-gaap Accrued Income Taxes Current
AccruedIncomeTaxesCurrent
2756000 USD
CY2022Q1 us-gaap Accrued Income Taxes Current
AccruedIncomeTaxesCurrent
3317000 USD
CY2022Q1 us-gaap Other Accrued Liabilities Current
OtherAccruedLiabilitiesCurrent
3996000 USD
CY2021Q4 us-gaap Other Accrued Liabilities Current
OtherAccruedLiabilitiesCurrent
4291000 USD
CY2022Q1 us-gaap Accounts Payable And Accrued Liabilities Current
AccountsPayableAndAccruedLiabilitiesCurrent
192554000 USD
CY2021Q4 us-gaap Accounts Payable And Accrued Liabilities Current
AccountsPayableAndAccruedLiabilitiesCurrent
173933000 USD
CY2022Q1 us-gaap Debt Instrument Carrying Amount
DebtInstrumentCarryingAmount
997000000 USD
CY2021Q4 us-gaap Debt Instrument Carrying Amount
DebtInstrumentCarryingAmount
998500000 USD
CY2022Q1 us-gaap Debt Instrument Unamortized Discount Premium And Debt Issuance Costs Net
DebtInstrumentUnamortizedDiscountPremiumAndDebtIssuanceCostsNet
16358000 USD
CY2021Q4 us-gaap Debt Instrument Unamortized Discount Premium And Debt Issuance Costs Net
DebtInstrumentUnamortizedDiscountPremiumAndDebtIssuanceCostsNet
16975000 USD
CY2022Q1 us-gaap Long Term Debt
LongTermDebt
980642000 USD
CY2021Q4 us-gaap Long Term Debt
LongTermDebt
981525000 USD
CY2022Q1 us-gaap Long Term Debt Current
LongTermDebtCurrent
6000000 USD
CY2021Q4 us-gaap Long Term Debt Current
LongTermDebtCurrent
6000000 USD
CY2022Q1 us-gaap Long Term Debt Noncurrent
LongTermDebtNoncurrent
974642000 USD
CY2021Q4 us-gaap Long Term Debt Noncurrent
LongTermDebtNoncurrent
975525000 USD
CY2022Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
91408000 shares
CY2021Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
86984000 shares
CY2022Q1 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
10063000 shares
CY2021Q1 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
10984000 shares
CY2022Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
101471000 shares
CY2021Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
97968000 shares
CY2022Q1 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
0 shares
CY2021Q1 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
0 shares
CY2022Q1 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.236
CY2022Q1 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate
0.210
CY2021Q1 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.055
CY2021Q1 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate
0.210
CY2022Q1 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
2200000 USD
CY2022Q1 us-gaap Assets
Assets
1616022000 USD
CY2021Q4 us-gaap Assets
Assets
1635650000 USD
CY2022Q1 us-gaap Common Stock Shares Outstanding
CommonStockSharesOutstanding
91500000 shares
CY2022Q1 us-gaap Treasury Stock Common Shares
TreasuryStockCommonShares
25700000 shares

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