Everi (US:EVRI)2023-08-08 16:00Revenue Performance - Total revenues for Q2 2023 reached $208.7 million, a 5.7% increase from $197.2 million in Q2 2022[10] - Gaming operations revenue was $77.8 million, up 5.8% from $74.1 million in the same period last year[10] - FinTech total revenues increased to $95.6 million, representing an 12.6% growth compared to $84.9 million in Q2 2022[10] - Total revenues for the three months ended June 30, 2023, were $208.7 million, an increase from $197.2 million in the same period of 2022, representing a growth of approximately 7.6%[10] - Games segment total revenues for the three months ended June 30, 2023, were $113.1 million, compared to $112.3 million in 2022, showing a slight increase of 0.7%[96] - FinTech segment total revenues for the three months ended June 30, 2023, reached $95.6 million, up from $84.9 million in 2022, reflecting a growth of about 12.7%[99] Income and Earnings - Net income for the six months ended June 30, 2023, was $55.5 million, down 13.4% from $64.0 million in the same period of 2022[10] - Basic earnings per share for Q2 2023 was $0.31, a decrease from $0.35 in Q2 2022[11] - The company reported a comprehensive income of $27.5 million for Q2 2023, down from $29.9 million in Q2 2022[10] - Operating income for the three months ended June 30, 2023, was $53.3 million, compared to $54.5 million in the same period of 2022, indicating a decrease of approximately 2.3%[10] - Net income for the three months ended June 30, 2023, was approximately $26.8 million, a decrease of 5.6% from $28.4 million in the same period in 2022[56] Assets and Liabilities - Total assets decreased to $1.71 billion as of June 30, 2023, from $1.92 billion at the end of 2022[14] - Total liabilities decreased to $1.47 billion as of June 30, 2023, compared to $1.70 billion at the end of 2022[14] - Cash and cash equivalents dropped to $210.6 million from $293.4 million at the end of 2022[14] - Total current assets as of June 30, 2023, were $528,842, a decrease from $773,206 as of December 31, 2022[14] - The balance of trade and other receivables as of June 30, 2023, was approximately $145.7 million, slightly down from $146.7 million at the end of 2022[63] Cash Flow and Investments - Cash provided by operating activities increased to $96,200,000, up 29.6% from $74,235,000 in the prior year[15] - Net cash used in investing activities rose to $119,085,000, compared to $93,774,000 in the same period last year, reflecting increased acquisitions[15] - The company reported a net decrease in cash and cash equivalents of $79,871,000 for the period, compared to a decrease of $64,150,000 in the prior year[15] - The company reported a total of $215,192,000 in cash, cash equivalents, and restricted cash as of June 30, 2023, down from $295,063,000 at the end of 2022[25] Research and Development - Research and development expenses for the six months ended June 30, 2023, were $32.7 million, up from $26.6 million in the same period last year[10] - Research and development expenses for the three months ended June 30, 2023, were $16.6 million, compared to $14.1 million in 2022, representing an increase of approximately 18%[10] - Research and development expenses for the Games segment increased to $11,172,000 in Q2 2023, compared to $9,467,000 in Q2 2022, a rise of 18.0%[96] Acquisitions - The acquisition of eCash Holdings Pty Limited involved an initial payment of approximately $15 million, with additional payments expected to total around $24.9 million[41] - The acquisition of Venuetize, Inc. was completed for approximately $18.2 million, with total expected consideration reaching approximately $21.0 million[43] - The total purchase consideration for the acquisition of VKGS LLC was approximately $61.3 million, including a post-closing working capital payment of $0.3 million[46][48] - The Company recognized approximately $31.4 million in revenue from beginning contract liabilities during the six months ended June 30, 2023, compared to $21.1 million for the same period in 2022[33] Stock and Shareholder Information - The company had approximately 87.7 million shares issued and outstanding as of June 30, 2023, with 34.6 million shares held in treasury[86] - During the three and six months ended June 30, 2023, the company repurchased 2.7 million shares at an average price of $14.80 per share for a total of $40 million[87] - The remaining availability under the $180 million share repurchase program was $140 million as of June 30, 2023[87] - The company authorized a new share repurchase program not to exceed $180 million, effective until November 3, 2024[86] Debt and Interest - Total long-term debt as of June 30, 2023, was $970.23 million, slightly down from $971.99 million at the end of 2022[69] - The weighted average interest rate on the Term Loan was 7.51% for the three months ended June 30, 2023[74] - The outstanding balance of the senior unsecured notes was $400.0 million, accruing interest at a rate of 5.00% per annum[75] - Interest expenses related to fund usage fees were approximately $5.9 million and $10.2 million for the three and six months ended June 30, 2023, respectively, compared to $1.7 million and $2.7 million for the same periods in 2022[57] Legal and Compliance - The company was in compliance with the covenants and terms of its credit facilities and unsecured notes as of June 30, 2023[76] - The company is involved in various legal proceedings, but believes that the resolution will not have a material adverse impact on its financial condition[77]