Everi Holdings Inc. (NYSE:EVRI) Q3 2022 Results Conference Call November 8, 2022 11:00 AM ET Company Participants Bill Pfund - Senior Vice President, Investor Relations Randy Taylor - Chief Executive Officer Mark Labay - Chief Financial Officer Darren Simmons - EVP & FinTech Business Leader Conference Call Participants Jeff Stantial - Stifel David Bain - B. Riley Barry Jonas - Truist David Katz - Jefferies John Davis - Raymond James Operator Hello everyone, and thank you for standing by. Welcome to the Eve ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-32622 EVERI HOLDINGS INC. (Exact name of registrant as specified in its charter) Delaware 20-0723270 (State or other jurisd ...

EVERI Everi Holdings Inc. Mark Labay, EVP & CFO Bill Pfund, SVP-IR Robert W. Baird Consumer & Technology Conference – 6/8/2022 NYSE: EVRI © 2022 Everi Holdings Inc. SAFE HARBOR DISCLAIMER Forward-Looking Statements This presentation contains "forward-looking statements" as defined in the U.S. Private Securities Litigation Reform Act of 1995. Generally, forward-looking statements address our expected future business and financial performance, and often contain words such as "goal," "target," "indication," "f ...

Everi Holdings, Inc. (NYSE:EVRI) Q2 2022 Earnings Conference Call August 3, 2022 11:00 AM ET Company Participants Bill Pfund - SVP, IR Randy Taylor - CEO Mark Labay - CFO Kate Lowenhar - Fisher, General Counsel Dean Ehrlich - Games Business Leader Darren Simmons - FinTech Business Leader Conference Call Participants Barry Jonas - Truist Securities David Bain - B. Riley Securities John Davis - Raymond James George Sutton - Craig Hallum David Katz - Jefferies Chad Beynon - Macquarie Jeff Stantial - Stifel Edw ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-32622 EVERI HOLDINGS INC. (Exact name of registrant as specified in its charter) Delaware 20-0723270 (State or other jurisdictio ...

Everi Holdings Inc.(NYSE:EVRI) Q1 2022 Earnings Conference Call May 10, 2022 11:00 AM ET Company Participants Bill Pfund - VP, IR Randy Taylor - CEO Mark Labay - CFO Kate Lowenhar-Fisher - General Counsel Dean Ehrlich - Games Business Leader Darren Simmons - FinTech Business Leader Conference Call Participants Jeff Stantial - Stifel Barry Jonas - Truist Chad Beynon - Macquarie John Davis - Raymond James David Katz - Jefferies George Sutton - Hallum Edward Engel - ROTH Capital Ricardo Chinchilla - Deutsche B ...

PART I: FINANCIAL INFORMATION [Item 1: Financial Statements](index=3&type=section&id=Item%201%3A%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Q1 2022 vs Q1 2021, covering operations, balance sheets, cash flows, equity, and detailed notes on accounting policies and key financial activities [Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) Q1 2022 saw total revenues increase 26% to **$175.6 million**, net income rise 54% to **$31.5 million**, and diluted EPS grow to **$0.31** Q1 2022 vs. Q1 2021 Statement of Operations Highlights (in thousands, except EPS) | Metric | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | **Total Revenues** | $175,616 | $139,113 | | **Operating Income** | $52,591 | $40,194 | | **Net Income** | $31,522 | $20,534 | | **Diluted EPS** | $0.31 | $0.21 | Revenue by Segment (in thousands) | Segment | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | **Games Total Revenues** | $98,336 | $76,151 | | **FinTech Total Revenues** | $77,280 | $62,962 | [Unaudited Condensed Consolidated Balance Sheets](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Total assets slightly decreased to **$1.616 billion**, liabilities fell to **$1.404 billion**, and stockholders' equity rose to **$211.7 million** by March 31, 2022 Balance Sheet Summary (in thousands) | Account | March 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $269,400 | $302,009 | | **Total current assets** | $516,390 | $552,638 | | **Total assets** | $1,616,022 | $1,635,650 | | **Total current liabilities** | $407,045 | $471,794 | | **Long-term debt, less current portion** | $974,642 | $975,525 | | **Total liabilities** | $1,404,310 | $1,461,150 | | **Total stockholders' equity** | $211,712 | $174,500 | [Unaudited Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow significantly decreased to **$5.3 million** in Q1 2022, while cash used in investing activities increased to **$36.9 million** Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $5,274 | $111,606 | | **Net cash used in investing activities** | $(36,900) | $(29,955) | | **Net cash (used in) provided by financing activities** | $(1,201) | $1,799 | | **Net (decrease) increase for the period** | $(32,691) | $83,330 | [Unaudited Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) Stockholders' equity increased to **$211.7 million** by March 31, 2022, primarily driven by **$31.5 million** in net income - Stockholders' equity increased by **$37.2 million** during Q1 2022, moving from **$174.5 million** to **$211.7 million**, mainly due to net income of **$31.5 million**[19](index=19&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, segments (Games, FinTech), the **ecash acquisition**, debt structure, legal contingencies, and subsequent events like the **Intuicode acquisition** and a new share repurchase program - The company operates and reports financial performance across two business segments: **Games** and **Financial Technology Solutions (FinTech)**[23](index=23&type=chunk) - On March 1, 2022, the company acquired **ecash Holdings Pty Limited**, an Australian provider of cash handling and payment solutions, for a total purchase consideration of approximately **$30.9 million USD**[69](index=69&type=chunk)[73](index=73&type=chunk) - As of March 31, 2022, total outstanding debt was **$997.0 million**, primarily consisting of a **$600 million New Term Loan** due 2028 and **$400 million in 5.00% Unsecured Notes** due 2029[103](index=103&type=chunk) - Subsequent to the quarter end, on April 30, 2022, the company acquired **Intuicode Gaming Corporation** to accelerate its entry into the Historical Horse Racing (HHR) games market[146](index=146&type=chunk) - On May 4, 2022, the Board of Directors authorized a new share repurchase program for up to **$150 million**, superseding the previous program[150](index=150&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202%3A%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Q1 2022 saw **26% revenue growth** to **$175.6 million**, with operating income up **31%** and net income up **54%**, though operating cash flow significantly decreased Q1 2022 vs. Q1 2021 Performance Summary (in thousands) | Metric | Q1 2022 | Q1 2021 | % Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | $175,616 | $139,113 | 26% | | Games Revenues | $98,336 | $76,151 | 29% | | FinTech Revenues | $77,280 | $62,962 | 23% | | **Operating Income** | $52,591 | $40,194 | 31% | | **Net Income** | $31,522 | $20,534 | 54% | - The increase in Games revenue was driven by a **larger installed base**, **higher average daily win per unit**, and an **increase in the number of gaming machines sold**[183](index=183&type=chunk) - FinTech revenue growth was fueled by **increased transaction volumes**, contributions from the **newly acquired ecash business**, and **higher kiosk sales**[184](index=184&type=chunk) - Interest expense decreased by **39%** to **$11.3 million** due to savings from the debt refinancing completed in Q3 2021[194](index=194&type=chunk) - Net cash from operating activities decreased by **$106.3 million**, primarily due to changes in working capital associated with settlement receivables and liabilities in the FinTech segment[204](index=204&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=38&type=section&id=Item%203%3A%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Market risks primarily involve interest rate fluctuations on variable-rate debt; a **100 basis point** increase in federal funds rate or LIBOR would impact income and interest expense - A **100 basis point** increase in the target federal funds rate would have an approximate **$3.9 million** annual impact on income before tax, based on the **$390.4 million** outstanding balance of third-party vendor funds[217](index=217&type=chunk) - A **100 basis point** increase in the applicable LIBOR would result in an approximate **$6.0 million** increase in annual interest expense on the **$597.0 million** outstanding New Term Loan[219](index=219&type=chunk) - The company is evaluating the transition from **LIBOR** to the **Secured Overnight Financing Rate (SOFR)** and does not anticipate a material impact on its business or financial results[221](index=221&type=chunk) [Controls and Procedures](index=39&type=section&id=Item%204%3A%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of March 31, 2022, with no material changes to internal controls - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were **effective** as of March 31, 2022[223](index=223&type=chunk) - There were no changes during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[224](index=224&type=chunk) PART II: OTHER INFORMATION [Legal Proceedings](index=40&type=section&id=Item%201%3A%20Legal%20Proceedings) The company is involved in ongoing legal proceedings, including an antitrust matter, a patent infringement suit, and a FACTA violation claim, which it plans to defend vigorously - The company is defending against an antitrust lawsuit filed by **NRT Technology Corp.**, with a trial currently set for **September 26, 2022**[121](index=121&type=chunk) - **Sightline Payments LLC** has filed a patent infringement lawsuit related to **Everi's CashClub Wallet** product[124](index=124&type=chunk) - A new civil action was filed by **Mary Parrish** on December 28, 2021, alleging a violation of the **Fair and Accurate Credit Transactions Act (FACTA)**[125](index=125&type=chunk) [Risk Factors](index=40&type=section&id=Item%201A%3A%20Risk%20Factors) No material changes have occurred to the risk factors previously disclosed in the company's 2021 Annual Report on Form 10-K - The risk factors included in the company's 2021 Annual Report have not materially changed[227](index=227&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=40&type=section&id=Item%202%3A%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q1 2022, **18,300 shares** were withheld for tax obligations from vested restricted stock awards, with no share repurchases under the program - A total of **18,300 shares** of common stock were withheld during Q1 2022 to satisfy tax withholding obligations related to the vesting of restricted stock awards[228](index=228&type=chunk) - No shares were repurchased under the company's share repurchase program during the three months ended March 31, 2022[230](index=230&type=chunk) [Other Information](index=41&type=section&id=Item%205%3A%20Other%20Information) On May 4, 2022, a new **$150 million** share repurchase program was authorized for 18 months, replacing the prior authorization - A new share repurchase program was authorized on May 4, 2022, for an amount not to exceed **$150 million** over an **18-month period**[236](index=236&type=chunk) [Exhibits](index=42&type=section&id=Item%206%3A%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications required by Sarbanes-Oxley Act and XBRL data - The report includes required certifications from the **CEO** and **CFO** under **Sections 302 and 906 of the Sarbanes-Oxley Act**[238](index=238&type=chunk)

Financial Data and Key Metrics Changes - The company generated a record $56 million of free cash flow in Q3 2021, showing significant growth compared to 2020 and pre-pandemic 2019 [6][11] - Total revenue from recurring operations grew 42% year-over-year and 31% compared to Q3 2019, accounting for 78% of Q3 revenue [13] - Adjusted EBITDA is expected to be in the range of $342 million to $346 million for the full year, with net income projected between $98 million to $100 million [21] Business Line Data and Key Metrics Changes - Gaming operations revenue increased 52% year-over-year and 48% over Q3 2019, with a total installed base up 8% year-over-year [13][14] - Product sales revenue more than doubled from Q3 2020 and was up 24% compared to Q3 2019, driven largely by replacement sales [14] - FinTech segment revenues increased 32% year-over-year and 11% over Q3 2019, with financial access services revenues up 8% compared to 2019 [15][16] Market Data and Key Metrics Changes - The CashClub Wallet is now deployed in 15 casinos across four jurisdictions, with plans for additional launches by year-end [8] - Digital gaming revenue saw a 90% year-over-year increase, with new content going live in Ontario and Connecticut [14] Company Strategy and Development Direction - The company plans to focus on internal organic growth opportunities, investing in product development in both games and FinTech businesses [11][12] - There is an emphasis on high return capital investments to expand the gaming operation's installed base and secure placements for extended periods [12] - The company is also evaluating bolt-on acquisitions to complement its core businesses and expand into new geographies [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing growth trajectory, with expectations for continued strong performance in both gaming operations and FinTech segments [17][19] - The company anticipates a sequential increase in capital expenditures and placement fees in Q4, driven by new agreements and installations [19][20] - There is a high probability of reversing some deferred tax asset valuation allowances, potentially resulting in a significant non-cash income tax benefit [22] Other Important Information - The company showcased several new products at the G2E tradeshow, including new patron loyalty and RegTech related products [9][10] - Management highlighted the importance of customer feedback and the competitive advantage of their cashless solutions [7][8] Q&A Session Summary Question: Thoughts on FinTech adoption and penetration - Management indicated that they are not yet capturing all relevant data but expect to have KPIs soon, with encouraging growth in patron usage [23][24] Question: Industry replacement levels for 2022 - Management believes replacement levels will be slightly better next year, but provided limited additional color [25] Question: Composition of the 15% games target - Management sees the target as achievable, with a mix of mechanical and video products, but specifics depend on customer purchasing behavior [27] Question: Impact of supply chain issues - Management reported no material impact from supply chain issues to date, though challenges exist [28] Question: Investment goals and areas of focus - Management is looking for products, technologies, and talents that can scale and complement existing offerings [32] Question: Margin sustainability and future expectations - Management expects margins to gradually revert closer to historic levels as the mix of revenue changes [38] Question: Opportunities with Shift4 partnership - The focus is on expanding retail opportunities, with potential for sports wagering integration in the future [40][41] Question: Digital gaming growth and content development - Management sees significant growth opportunities in porting existing content to digital platforms, with a focus on internal investments [58][60]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-32622 EVERI HOLDINGS INC. (Exact name of registrant as specified in its charter) Delaware 20-0723270 (State or other jurisd ...

Everi Holdings Inc. (NYSE:EVRI) Q2 2021 Earnings Conference Call August 4, 2021 11:00 AM ET Company Participants Bill Pfund - Senior Vice President, Investor Relations Mike Rumbolz - Chairman and Chief Executive Officer Randy Taylor - President and Chief Operating Officer Mark Labay - Chief Financial Officer Kate Lowenhar-Fisher - General Counsel Dean Ehrlich - Executive Vice President and Games Business leader Darren Simmons - Executive Vice President and FinTech Business Leader Conference Call Participant ...