- Everi (NYSE:EVRI) trades 3.7% higher premarket after expecting record Q2 consolidated revenues of ~$167M to $172M indicating a quarterly sequential improvement from $139.1M in Q1 and an increase of more than 25% compared to $129.7M in pre-pandemic Q2 2019.
- Q2 net income is seen at $31 to $34M compared to $20.5M in the Q1 and $5.5M in the Q2 2019; diluted EPS are expected to be $0.31 to $0.34 compared to $0.21 per share in Q1 and $0.07/share in Q2 2019.
- Adj. EBITDA expected to be $87 to $91M compared to $75.4M in Q1 and $64.1M in Q2 2019.
- It expects that the Games and FinTech segment contributions to revenues and adj. EBITDA in Q2 results will approximate a proportional split in a manner consistent with Q1.
- Free Cash Flow is expected to be $32 to $36M in Q2; Everi's cash and equivalents rose to $360.8M as of May 31, 2021, compared to $335.1M as of Mar. 31, 2021, and $251.7M as of Dec. 31, 2020.
- We also expect our gaming machine unit sales in Q2 will well exceed the level shipped in Q1.
- Everi also plans to refinance its $35M revolving credit facility due 2022 and its $820M term loan facility due 2024, prepay in full its $125M incremental term loan facility due 2024, and redeem the $285.4M of unsecured notes due 2025.
- Post refinancing its $1,144.9M total outstanding debt, the company expects to have $1B of outstanding total debt and to have a new $125M revolving credit facility that will be undrawn at closing.