Expects Quarterly Records for: Revenue of $167 Million to $172 Million, Net Income of $31 Million to $34 Million, Adjusted EBITDA of $87 Million to $91 Million, and Free Cash Flow of $32 Million to $36 Million
Announces Refinancing of its Outstanding Total Debt with Anticipated Prepayment of $144.9 Million
LAS VEGAS, June 21, 2021 /PRNewswire/ -- Everi Holdings Inc. (NYSE: EVRI) ("Everi" or the "Company"), a premier provider of land-based and digital casino gaming content and products, financial technology and player loyalty solutions, today announced that in connection with its plan to take advantage of favorable market conditions to lower its cost of debt and extend maturities through a refinancing of its total outstanding debt, the Company has announced certain expected financial results for the second quarter ending June 30, 2021. The expected record 2021 second quarter results demonstrate meaningful quarterly sequential improvement compared to the 2021 first quarter results as well as substantial growth compared to the pre-pandemic 2019 second quarter results, even with a continued albeit lesser impact from the COVID19 pandemic.
Announces Plan to Refinance Outstanding Debt
The Company announced a plan to take advantage of favorable market conditions to refinance its outstanding total debt and extend maturities. Everi plans to refinance its $35 million Revolving Credit Facility due 2022 and its $820 million Term Loan Facility due 2024, prepay in full its $125 million Incremental Term Loan Facility due 2024, and redeem the $285.4 million of Unsecured Notes due 2025. After refinancing its $1,144.9 million total outstanding debt, the Company expects to have $1.0 billion of outstanding total debt and to have a new $125 million Revolving Credit Facility that will be undrawn at closing.
Expected 2021 Second Quarter Results
The Company expects 2021 second quarter consolidated revenues of approximately $167 million to $172 million reflecting a quarterly sequential improvement from $139.1 million in the 2021 first quarter and an increase of more than 25% compared to $129.7 million in the pre-pandemic 2019 second quarter. The Company expects 2021 second quarter net income of $31 million to $34 million compared to $20.5 million in the 2021 first quarter and $5.5 million in the 2019 second quarter. Diluted earnings per share are expected to be $0.31 to $0.34 compared to $0.21 per share in the 2021 first quarter and $0.07 per share in the 2019 second quarter.
In addition, the Company expects that Adjusted EBITDA, a non-GAAP financial measure, will be $87 million to $91 million in the 2021 second quarter, compared to $75.4 million in the 2021 first quarter and $64.1 million in the 2019 second quarter. The Company expects that the Games and FinTech segment contributions to revenues and Adjusted EBITDA in the 2021 second quarter results will approximate a proportional split in a manner consistent with the 2021 first quarter results.
As a result of the higher revenues and net income, Free Cash Flow is expected to be $32 million to $36 million for the 2021 second quarter. Reflecting the substantial benefits of improved revenues and consistent operating execution, which is driving higher margins, Everi's cash and cash equivalents rose to $360.8 million as of May 31, 2021, compared to $335.1 million as of March 31, 2021, and $251.7 million as of December 31, 2020. Net Cash Position, a non-GAAP financial measure, which includes the impact of the full receipt of outstanding settlement receivables and the full payment of outstanding settlement liabilities from cash and cash equivalents, rose to $225.5 million as of May 31, 2021, compared to $182.6 million as of March 31, 2021, and $139.1 million as of December 31, 2020.
Michael Rumbolz, Chief Executive Officer of Everi, said, "Our expected record 2021 second quarter results highlight the ongoing strength of our core recurring revenue businesses and the benefit of our organic growth initiatives. Both our Games and FinTech segments are performing significantly above pre-pandemic periods, driving substantial improvements in our total revenue, net income, Adjusted EBITDA, and Free Cash Flow. Since March, the total value processed of our financial access transactions on a same-store basis has been consistently trending at a mid-teens percentage growth rate above the comparable 2019 volumes. This is significantly higher than our mid-single digit percentage historical average growth rate. Additionally, our gaming operations installed base has continued to grow, fueled primarily by a greater number of premium units, which is also driving new record levels of Daily Win per Unit. We also expect our gaming machine unit sales in the second quarter will well exceed the level shipped in the first quarter of 2021.
"Our strong performance is driven by the collaborative efforts of the worldwide Everi Team to continuously enhance our product portfolio and innovate new products that help our customers extend the connection with their guests and operate more efficiently, as well as our focus on providing unmatched customer service. Given the momentum of our products in both of our business segments and our continued focus on operating execution, as well as the potential opportunity to lower our annual interest expense through refinancing of our outstanding debt, we believe Everi is well positioned to continue to generate strong Free Cash Flow and further grow shareholder value."
The expected unaudited results announced in this release are derived from preliminary expected internal financial reports and are subject to revision based on the Company's procedures and controls associated with the completion of its quarter-end financial reporting, including all customary reviews and approvals of such financial statements for the quarter ending June 30, 2021. Accordingly, actual results may differ from these preliminary results and such differences may be material. The Company anticipates releasing its 2021 second quarter results on August 4, 2021, after market close.