2024 Q1 Form 10-K Financial Statement

#000131856824000009 Filed on February 29, 2024

View on sec.gov

Income Statement

Concept 2024 Q1 2023 Q4 2023
Revenue $189.3M $192.0M $807.8M
YoY Change -5.55% -6.49% 3.23%
Cost Of Revenue $36.21M $35.78M $161.2M
YoY Change -9.08% -23.0% -2.47%
Gross Profit $153.1M $156.3M $646.6M
YoY Change -4.68% -1.66% 4.76%
Gross Profit Margin 80.88% 81.37% 80.04%
Selling, General & Admin $4.000M
YoY Change 14.29%
% of Gross Profit 0.62%
Research & Development $19.31M $18.78M $67.63M
YoY Change 19.97% 9.56% 11.74%
% of Gross Profit 12.61% 12.02% 10.46%
Depreciation & Amortization $20.00M $36.63M $78.69M
YoY Change 5.55% 6.38% 17.8%
% of Gross Profit 13.06% 23.44% 12.17%
Operating Expenses $19.31M $134.7M $67.63M
YoY Change 19.97% 25.56% 11.74%
Operating Profit $24.75M $21.52M $179.3M
YoY Change -52.44% -58.29% -15.97%
Interest Expense -$18.80M -$19.66M -$77.69M
YoY Change 4.62% 14.11% 39.35%
% of Operating Profit -75.95% -91.37% -43.34%
Other Income/Expense, Net -$18.80M -$77.69M
YoY Change 4.62% 39.35%
Pretax Income $5.952M $1.857M $101.6M
YoY Change -82.53% -94.6% -35.54%
Income Tax $1.398M -$35.00K $17.59M
% Of Pretax Income 23.49% -1.88% 17.32%
Net Earnings $4.554M $1.892M $84.00M
YoY Change -83.77% -93.0% -30.29%
Net Earnings / Revenue 2.41% 0.99% 10.4%
Basic Earnings Per Share $0.05 $0.96
Diluted Earnings Per Share $0.05 $0.02 $0.91
COMMON SHARES
Basic Shares Outstanding 83.78M shares 85.57M shares 87.18M shares
Diluted Shares Outstanding 87.29M shares 91.99M shares

Balance Sheet

Concept 2024 Q1 2023 Q4 2023
SHORT-TERM ASSETS
Cash & Short-Term Investments $277.7M $277.7M
YoY Change -9.57% -9.57%
Cash & Equivalents $268.6M $267.2M $267.2M
Short-Term Investments
Other Short-Term Assets $2.578M $33.38M
YoY Change 11.7% 33.12%
Inventory $78.58M $70.62M $70.62M
Prepaid Expenses $25.61M
Receivables $549.8M $549.8M
Other Receivables $0.00 $0.00
Total Short-Term Assets $921.2M $931.5M $931.5M
YoY Change 52.19% 20.48% 20.48%
LONG-TERM ASSETS
Property, Plant & Equipment $160.7M $152.7M $180.2M
YoY Change 21.51% 14.26% 19.48%
Goodwill $737.1M $737.8M
YoY Change 2.7% 3.06%
Intangibles $229.4M $234.1M
YoY Change -1.76% -1.74%
Long-Term Investments
YoY Change
Other Assets $39.68M $38.08M $11.19M
YoY Change 52.8% 36.46% -9.18%
Total Long-Term Assets $1.201B $1.192B $1.192B
YoY Change 5.55% 4.13% 4.13%
TOTAL ASSETS
Total Short-Term Assets $921.2M $931.5M $931.5M
Total Long-Term Assets $1.201B $1.192B $1.192B
Total Assets $2.123B $2.124B $2.124B
YoY Change 21.74% 10.72% 10.72%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $30.26M $693.2M
YoY Change 2.08% 39.33%
Accrued Expenses $39.73M $39.73M
YoY Change -17.43% -17.43%
Deferred Revenue $51.40M
YoY Change 1.03%
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $1.500M $6.000M $6.000M
YoY Change 0.0% 0.0% 0.0%
Total Short-Term Liabilities $881.2M $884.5M $884.5M
YoY Change 82.47% 27.94% 27.94%
LONG-TERM LIABILITIES
Long-Term Debt $967.6M $968.5M $968.5M
YoY Change -0.36% -0.36% -0.36%
Other Long-Term Liabilities $31.00M $31.00M
YoY Change -0.9% -0.9%
Total Long-Term Liabilities $1.010B $1.013B $999.5M
YoY Change 0.47% 0.39% -0.38%
TOTAL LIABILITIES
Total Short-Term Liabilities $881.2M $884.5M $884.5M
Total Long-Term Liabilities $1.010B $1.013B $999.5M
Total Liabilities $1.891B $1.898B $1.898B
YoY Change 27.08% 11.59% 11.59%
SHAREHOLDERS EQUITY
Retained Earnings $67.29M $62.73M
YoY Change 889.49% -394.98%
Common Stock $563.5M $561.1M
YoY Change 4.8% 6.35%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $231.3M $226.1M $226.1M
YoY Change
Total Liabilities & Shareholders Equity $2.123B $2.124B $2.124B
YoY Change 21.74% 10.72% 10.72%

Cashflow Statement

Concept 2024 Q1 2023 Q4 2023
OPERATING ACTIVITIES
Net Income $4.554M $1.892M $84.00M
YoY Change -83.77% -93.0% -30.29%
Depreciation, Depletion And Amortization $20.00M $36.63M $78.69M
YoY Change 5.55% 6.38% 17.8%
Cash From Operating Activities $55.13M $131.2M $292.2M
YoY Change 73.86% 4.38% 7.18%
INVESTING ACTIVITIES
Capital Expenditures $42.74M $47.61M $145.1M
YoY Change 43.34% 34.7% 13.75%
Acquisitions $59.41M
YoY Change 15.46%
Other Investing Activities $68.00K $101.0K -$59.20M
YoY Change 1.49% -100.56% 14.35%
Cash From Investing Activities -$42.68M -$47.51M -$204.3M
YoY Change 43.43% -11.09% 13.92%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $100.0M
YoY Change 18.56%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -$9.951M -26.34M -$110.9M
YoY Change 767.57% -27.81% 10.31%
NET CHANGE
Cash From Operating Activities $55.13M 131.2M $292.2M
Cash From Investing Activities -$42.68M -47.51M -$204.3M
Cash From Financing Activities -$9.951M -26.34M -$110.9M
Net Change In Cash $1.539M 57.38M -$22.56M
YoY Change 140.47% 60.25% 160.38%
FREE CASH FLOW
Cash From Operating Activities $55.13M $131.2M $292.2M
Capital Expenditures $42.74M $47.61M $145.1M
Free Cash Flow $12.38M $83.62M $147.1M
YoY Change 556.17% -7.48% 1.41%

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CY2023 us-gaap Nature Of Operations
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BUSINESS<div style="margin-bottom:9pt;margin-top:9pt;text-align:justify"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:11pt;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="margin-bottom:9pt;margin-top:9pt;text-align:justify"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:11pt;font-weight:400;line-height:120%">Everi develops and offers products and services that provide gaming entertainment, improve our customers’ patron engagement, and help our casino customers operate their businesses more efficiently. We develop and supply entertaining game content, gaming machines and gaming systems and services for land-based and iGaming operators. Everi is a provider of financial technology solutions that power casino floors, provide operational efficiencies, and help fulfill regulatory requirements. The Company also develops and supplies player loyalty tools and mobile-first applications that enhance patron engagement for our customers and venues in the casino, sports, entertainment and hospitality industries. In addition, the Company provides bingo solutions through its consoles, electronic gaming tablets and related systems.</span></div><div style="margin-bottom:9pt;margin-top:9pt;text-align:justify"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:11pt;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="margin-bottom:9pt;margin-top:9pt;text-align:justify"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:11pt;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, Class III and Historic Horse Racing (“HHR”) slot machines placed under participation and 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; (iii) business-to-business (“B2B”) digital online gaming activities; and (iv) bingo solutions through consoles, integrated electronic gaming tablets and related systems.</span></div><div style="margin-bottom:9pt;margin-top:9pt;text-align:justify"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:11pt;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. We also develop and offer mobile-first applications aimed at enhancing patron engagement for customers in the casino, sports, entertainment, and hospitality industries. </span><span style="background-color:#ffffff;color:#000000;font-family:'Calibri',sans-serif;font-size:11pt;font-weight:400;line-height:120%">Our solutions are secured using an end-to-end security suite to protect against cyber-related attacks allowing us to maintain appropriate levels of security. </span><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:11pt;font-weight:400;line-height:120%">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 loyalty and fully integrated kiosk 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="margin-bottom:9pt;margin-top:9pt;text-align:justify"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:11pt;font-weight:700;line-height:120%">Macro-Economic Volatility and Global Instability, Employment Constraints and Supply Chain Disruptions</span></div><div style="margin-bottom:9pt;margin-top:9pt;text-align:justify"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:11pt;font-weight:400;line-height:120%">We have experienced an impact from macro-economic volatility as a result of inflation, interest rate movements and global instability, particularly as it relates to our supply chain, both from an upstream and downstream </span></div><div style="margin-bottom:9pt;margin-top:9pt;text-align:justify"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:11pt;font-weight:400;line-height:120%">perspective, which impacts the delivery of our products; and we continue to evaluate the effects of interest rate movements on our variable rate debt and pricing pressures on our business. </span></div><div style="margin-bottom:9pt;margin-top:9pt;text-align:justify"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:11pt;font-weight:400;line-height:120%">We have experienced an impact from employment constraints as a result of inflation that has significantly increased over prior years. This has placed pressure on competitive wages, which has led to increases in wages and other related costs.</span></div><div style="margin-bottom:9pt;margin-top:9pt;text-align:justify"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:11pt;font-weight:400;line-height:120%">We have experienced an impact from supply chain disruptions that have resulted in additional costs incurred to develop, produce, and ship our products.</span></div>
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CY2023 evri Term Of Development And Placement Fee Agreement
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CY2022 us-gaap Research And Development Expense
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60500000 usd
CY2021 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
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DefinedContributionPlanMaximumAnnualContributionsPerEmployeePercent
0.75
CY2023 us-gaap Defined Contribution Plan Cost Recognized
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6300000 usd
CY2022 us-gaap Defined Contribution Plan Cost Recognized
DefinedContributionPlanCostRecognized
4600000 usd
CY2021 us-gaap Defined Contribution Plan Cost Recognized
DefinedContributionPlanCostRecognized
2600000 usd
CY2023 us-gaap Operating Lease Cost
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6786000 usd
CY2022 us-gaap Operating Lease Cost
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6008000 usd
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P12M
CY2022 evri Trade And Loans Receivable Contractual Terms
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P12M
CY2023 us-gaap Use Of Estimates
UseOfEstimates
We have made estimates and judgments affecting the amounts reported in these financial statements and the accompanying notes in conformity with GAAP. The actual results may materially differ from these estimates.
CY2021 us-gaap Operating Lease Cost
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5474000 usd
CY2023 us-gaap Variable Lease Cost
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1461000 usd
CY2022 us-gaap Variable Lease Cost
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1164000 usd
CY2021 us-gaap Variable Lease Cost
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1267000 usd
CY2023 evri Non Cash Lease Expense
NonCashLeaseExpense
6100000 usd
CY2022 evri Non Cash Lease Expense
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4800000 usd
CY2023 us-gaap Prior Period Reclassification Adjustment Description
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<div style="margin-bottom:9pt;margin-top:9pt;text-align:justify"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:11pt;font-weight:400;line-height:120%">Certain amounts in the accompanying consolidated financial statements and accompanying notes have been reclassified to be consistent with the current year presentation. These reclassifications had no effect on net income for the prior periods.</span></div><div style="margin-bottom:9pt;margin-top:9pt;text-align:justify"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:11pt;font-weight:400;line-height:120%">The Company determined that the placement fee arrangements were previously misclassified in its Statements of Cash Flows. Previously, these placement fee arrangements were reported as cash flows from investing activities, and they should have been presented as cash flows from operating activities for the fiscal years ended December 31, 2022 and 2021. The error has been corrected by adjusting each of the affected financial statement categories for these prior periods. The changes in the prior periods were made to conform to the current period presentation. For additional information, refer to </span><span style="color:#0000ff;font-family:'Calibri',sans-serif;font-size:11pt;font-weight:400;line-height:120%;text-decoration:underline"><a href="#i70f666a85bce4bb493265c0065bec571_1896" style="color:#0000ff;font-family:'Calibri',sans-serif;font-size:11pt;font-weight:400;line-height:120%;text-decoration:underline">“Item 8 — Financial Statements and Supplementary Data — Notes to Consolidated Financial Statements — Note 20 — Error Correction of an Immaterial Prior Year Misstatement.”</a></span></div>
CY2022Q4 us-gaap Contract With Customer Asset Net
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CY2021Q4 us-gaap Contract With Customer Asset Net
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15221000 usd
CY2023Q4 us-gaap Contract With Customer Asset Net
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26635000 usd
CY2022Q4 us-gaap Contract With Customer Asset Net
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22417000 usd
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CY2022 us-gaap Increase Decrease In Contract With Customer Asset
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CY2021Q4 us-gaap Contract With Customer Liability
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CY2023Q4 us-gaap Contract With Customer Liability
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CY2022Q4 us-gaap Contract With Customer Liability
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53419000 usd
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CY2022 us-gaap Increase Decrease In Contract With Customer Liability
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16804000 usd
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36000000 usd
CY2022 us-gaap Contract With Customer Liability Revenue Recognized
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27500000 usd
CY2021 evri Non Cash Lease Expense
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4400000 usd
CY2023 us-gaap Business Acquisitions Pro Forma Revenue
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817000000 usd
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CY2022Q4 us-gaap Operating Lease Right Of Use Asset
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CY2022Q4 us-gaap Operating Lease Liability Noncurrent
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P10Y
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CY2023Q4 us-gaap Lessee Operating Lease Liability Payments Due
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CY2023Q4 us-gaap Operating Lease Liability
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CY2023Q4 us-gaap Long Term Debt
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CY2022Q4 us-gaap Long Term Debt
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