[PART I: FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%3A%20FINANCIAL%20INFORMATION) [Item 1: Financial Statements](index=4&type=section&id=Item%201%3A%20Financial%20Statements) This section presents Everi Holdings Inc.'s unaudited condensed consolidated financial statements for Q1 2019 and 2018, covering income, balance sheets, cash flows, and notes [Unaudited Condensed Consolidated Statements of Income and Comprehensive Income](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) Total revenues for Q1 2019 increased 11.5% to $123.8 million, with net income rising to $5.9 million and diluted EPS to $0.08 Consolidated Statements of Income (Q1 2019 vs. Q1 2018) | Financial Metric | Q1 2019 (In thousands) | Q1 2018 (In thousands) | Change (%) | | :--- | :--- | :--- | :--- | | **Total Revenues** | **$123,775** | **$111,001** | **+11.5%** | | Games Revenues | $67,427 | $60,217 | +12.0% | | FinTech Revenues | $56,348 | $50,784 | +11.0% | | **Operating Income** | **$25,872** | **$24,491** | **+5.6%** | | **Net Income** | **$5,860** | **$4,609** | **+27.1%** | | **Diluted EPS** | **$0.08** | **$0.06** | **+33.3%** | [Unaudited Condensed Consolidated Balance Sheets](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2019, total assets increased to $1.63 billion, total liabilities to $1.73 billion, and stockholders' deficit reduced to $95.8 million Consolidated Balance Sheets (As of March 31, 2019 vs. Dec 31, 2018) | Account | March 31, 2019 (In thousands) | Dec 31, 2018 (In thousands) | | :--- | :--- | :--- | | **Total Current Assets** | **$518,568** | **$488,940** | | Cash and cash equivalents | $139,857 | $297,532 | | Goodwill | $673,447 | $640,537 | | **Total Assets** | **$1,632,004** | **$1,548,261** | | **Total Current Liabilities** | **$515,318** | **$471,636** | | Long-term debt, less current portion | $1,153,807 | $1,155,016 | | **Total Liabilities** | **$1,727,806** | **$1,657,156** | | **Total Stockholders' Deficit** | **($95,802)** | **($108,895)** | [Unaudited Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For Q1 2019, net cash used in operating activities was $112.2 million, a significant shift from $32.8 million provided in Q1 2018 Consolidated Statements of Cash Flows (Q1 2019 vs. Q1 2018) | Cash Flow Activity | Q1 2019 (In thousands) | Q1 2018 (In thousands) | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | ($112,188) | $32,751 | | Net cash used in investing activities | ($47,490) | ($30,910) | | Net cash provided by financing activities | $2,621 | $2,000 | | **Net (decrease) increase for the period** | **($157,400)** | **$3,988** | - The significant increase in cash used in operating activities was primarily due to a **$175.7 million** increase in settlement receivables, compared to a **$73.6 million** decrease in the prior-year period[21](index=21&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section details the company's accounting policies and financial results, including business segments, ASC 842 adoption, and the Atrient acquisition - The company operates through two segments: **Games** (gaming machines, systems, interactive) and **FinTech** (cash access, compliance, loyalty solutions), with the 'Payments' segment renamed to 'FinTech' effective April 1, 2018[29](index=29&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk) - On March 8, 2019, the company acquired certain assets of Atrient, Inc. for an expected purchase price of approximately **$50 million**, including **$20 million** paid at closing[89](index=89&type=chunk) - The company adopted the new lease accounting standard **ASC 842** on January 1, 2019, recognizing **$14.1 million** in operating lease Right-of-Use (ROU) assets and corresponding liabilities[72](index=72&type=chunk)[80](index=80&type=chunk)[81](index=81&type=chunk) Segment Performance (Q1 2019 vs Q1 2018) | Segment | Metric | Q1 2019 (In thousands) | Q1 2018 (In thousands) | | :--- | :--- | :--- | :--- | | **Games** | Revenues | $67,427 | $60,217 | | | Operating Income | $3,104 | $4,353 | | **FinTech** | Revenues | $56,348 | $50,784 | | | Operating Income | $22,768 | $20,138 | [Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operations](index=46&type=section&id=Item%202%3A%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2019 financial results, highlighting a 12% revenue increase to $123.8 million driven by Games and FinTech segment growth Results of Operations Summary (Q1 2019 vs. Q1 2018) | Metric | Q1 2019 (In thousands) | Q1 2018 (In thousands) | Change (%) | | :--- | :--- | :--- | :--- | | **Total Revenues** | **$123,775** | **$111,001** | **+12%** | | Games Revenues | $67,427 | $60,217 | +12% | | FinTech Revenues | $56,348 | $50,784 | +11% | | **Operating Income** | **$25,872** | **$24,491** | **+6%** | | **Net Income** | **$5,860** | **$4,609** | **+27%** | - The increase in **Games revenue** was driven by higher unit sales, a greater average daily win per unit from the installed base, and growth in interactive revenue[215](index=215&type=chunk) - The increase in **FinTech revenue** was due to higher transaction volumes from cash access services and increased equipment sales at higher average selling prices[216](index=216&type=chunk) - Research and development costs increased by **75%** to **$7.5 million**, primarily due to higher payroll and related expenses in both Games and FinTech segments[222](index=222&type=chunk) Net Cash Position (Non-GAAP) | Component | March 31, 2019 (In thousands) | Dec 31, 2018 (In thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $139,857 | $297,532 | | Settlement receivables | $259,288 | $82,359 | | Settlement liabilities | ($354,402) | ($334,198) | | **Net cash position** | **$44,743** | **$45,693** | | Undrawn revolving credit facility | $35,000 | $35,000 | | **Net cash available** | **$79,743** | **$80,693** | [Item 3: Quantitative and Qualitative Disclosures about Market Risk](index=57&type=section&id=Item%203%3A%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company is exposed to market risks, primarily from interest rate fluctuations, with a 1% increase in federal funds rate impacting pre-tax income by $2.7 million - The company is exposed to interest rate risk on its ATM cash funding arrangements, where a **1%** increase in the federal funds rate would impact income before tax by approximately **$2.7 million** annually, based on **$267.0 million** of ATM cash utilized[265](index=265&type=chunk) - A **1%** increase in LIBOR would impact interest expense by **$8.1 million** annually, based on the **$805.7 million** outstanding variable-rate debt from Credit Facilities[266](index=266&type=chunk) - Exposure to foreign currency exchange risk from foreign operations is considered **not material**, and the company does not currently hedge this risk[264](index=264&type=chunk) [Item 4: Controls and Procedures](index=58&type=section&id=Item%204%3A%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2019 - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of the end of the period covered by the report[268](index=268&type=chunk) - Changes were made to internal control over financial reporting to address the adoption of **ASC 842** (Leases), but these did **not materially affect** the overall internal control structure[269](index=269&type=chunk)[270](index=270&type=chunk) [PART II: OTHER INFORMATION](index=59&type=section&id=PART%20II%3A%20OTHER%20INFORMATION) [Item 1: Legal Proceedings](index=59&type=section&id=Item%201%3A%20Legal%20Proceedings) The company is involved in various legal proceedings but does not expect a material adverse impact on its financial position or operations - Information regarding legal proceedings is referenced in 'Note 13 — Commitments and Contingencies', stating the company does not expect any **material adverse impact** from current legal matters[272](index=272&type=chunk)[155](index=155&type=chunk) [Item 1A: Risk Factors](index=59&type=section&id=Item%201A%3A%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for FY2018 - The risk factors included in the Annual Report on Form 10-K for the fiscal year ended December 31, 2018 have **not materially changed**[273](index=273&type=chunk) [Item 2: Unregistered Sales of Equity Securities and Use of Proceeds](index=59&type=section&id=Item%202%3A%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the quarter, the company withheld 2,100 shares of common stock at an average price of $7.02 per share to satisfy tax withholding requirements Issuer Purchases of Equity Securities (Q1 2019) | Period | Total Shares Purchased (in thousands) | Average Price per Share | | :--- | :--- | :--- | | Jan 2019 | 0.5 | $5.39 | | Feb 2019 | 0.5 | $6.83 | | Mar 2019 | 1.1 | $7.83 | | **Total** | **2.1** | **$7.02** | - The shares were withheld from vested restricted stock awards to satisfy **minimum statutory tax withholding requirements**[275](index=275&type=chunk) [Item 6: Exhibits](index=60&type=section&id=Item%206%3A%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including employment agreements, CEO and CFO certifications, and XBRL data files - The report includes **certifications** from the CEO and CFO as required by **Sections 302 and 906 of the Sarbanes-Oxley Act**[285](index=285&type=chunk)

Everi Holdings Inc. (NYSE:EVRI) Q4 2018 Results Earnings Conference Call March 12, 2019 5:00 PM ET Company Participants Mark Labay - SVP, Strategic Development and IR Michael Rumbolz - President and CEO Randy Taylor - CFO Dean Ehrlich - Games Business Leader Darren Simmons - FinTech Business Leader Harper Ko - General Counsel and Chief Legal Officer Conference Call Participants John Davis - Raymond James Barry Jonas - SunTrust George Sutton - Craig-Hallum. David Katz - Jefferies Brian McGill - Telsey Operat ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10‑K (Mark One) x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018 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) | --- | --- | |------------------------------------ ...