Everi (US:EVRI)2023-05-09 16:00Revenue Performance - Total revenues for Q1 2023 reached $200,472,000, a 14.1% increase from $175,616,000 in Q1 2022[10] - Gaming total revenues increased to $107,374,000, up 9.9% from $98,336,000 year-over-year[10] - FinTech total revenues rose to $93,098,000, representing a 20.4% increase compared to $77,280,000 in the same period last year[10] - Total revenues for the Games segment increased to $107,374 thousand in Q1 2023, up 9.4% from $98,336 thousand in Q1 2022[10] - The FinTech segment reported total revenues of $93,098 thousand for Q1 2023, representing a 20.4% increase from $77,280 thousand in Q1 2022[99] Income and Earnings - Operating income for Q1 2023 was $52,046,000, slightly down from $52,591,000 in Q1 2022[10] - Net income for Q1 2023 was $28,066,000, a decrease of 11.6% from $31,522,000 in Q1 2022[10] - Basic earnings per share for Q1 2023 was $0.32, compared to $0.34 in Q1 2022[12] - The company reported a net income of $28,066,000 for Q1 2023, compared to $31,522,000 for Q1 2022, indicating a decrease of approximately 11.5% year-over-year[17] - The effective income tax rate for the three months ended March 31, 2023, was 17.6%, down from 23.6% in the same period of 2022[92] Cash and Assets - Cash and cash equivalents at the end of Q1 2023 totaled $293,207,000, a slight decrease from $293,394,000 at the end of 2022[15] - Total assets decreased to $1,743,570,000 from $1,918,243,000 at the end of 2022[15] - As of March 31, 2023, total trade and other receivables amounted to approximately $143.5 million, a decrease from $146.7 million as of December 31, 2022[65] - Total liabilities decreased to $1,488,323,000 from $1,700,602,000 at the end of the previous year[15] Inventory and Expenditures - Total inventory increased to $68,608,000 as of March 31, 2023, from $58,350,000 at December 31, 2022, representing a 17.7% increase[68] - Capital expenditures for Q1 2023 amounted to $29,821,000, compared to $23,639,000 in Q1 2022[16] - Research and development expenses increased to $10,653 thousand in Q1 2023, compared to $7,630 thousand in Q1 2022, marking a rise of approximately 39.5%[96] Debt and Financing - Total long-term debt was $971,112,000 as of March 31, 2023, slightly down from $971,995,000 at December 31, 2022[72] - The weighted average interest rate on the Term Loan was 7.03% for the three months ended March 31, 2023[75] - The fair value of the $600 million term loan was estimated at $584.301 million as of March 31, 2023, while the fair value of the $400 million unsecured notes was $358 million[32] Acquisitions and Growth - The acquisition of eCash Holdings Pty Limited involved a total consideration of approximately $15 million, with additional payments of AUD$13 million expected[46] - The acquisition of Intuicode Gaming Corporation is expected to total approximately $27.1 million, with contingent consideration based on revenue targets[47] - The acquisition of Video King for approximately $59 million is expected to enhance growth in the Games segment and expand the addressable market for digital gaming content[103] Operational Challenges - The company continues to face challenges from macro-economic volatility, including inflation and supply chain disruptions, impacting operational costs and product delivery[25] - The company experienced macro-economic volatility impacting supply chain and pricing pressures, which have led to increased costs[25] Share Repurchase and Stock Information - As of March 31, 2023, the remaining availability under the existing $150 million share repurchase program was $65.7 million, with no shares repurchased during the three months ended March 31, 2023[88] - On May 3, 2023, the Board of Directors approved a new share repurchase program not to exceed $180 million, replacing the previous program[105] - The weighted average number of common shares outstanding for basic earnings per share was 88,355 thousand for the three months ended March 31, 2023, down from 91,408 thousand in 2022, indicating a decrease of approximately 3.8%[89]