Everi (EVRI) - 2021 Q1 - Quarterly Report

Financial Performance - Total revenues for the three months ended March 31, 2021, were $139.1 million, a 22.8% increase from $113.3 million in the same period of 2020[8] - Gaming total revenues reached $76.2 million, up 32.9% from $57.3 million year-over-year[8] - FinTech total revenues increased to $63.0 million, representing an 12.4% growth compared to $56.0 million in the prior year[8] - Operating income for Q1 2021 was $40.2 million, significantly higher than $10.4 million in Q1 2020[8] - Net income for the three months ended March 31, 2021, was $20.5 million, compared to a net loss of $13.5 million in the same period last year[8] - Basic earnings per share for Q1 2021 were $0.24, compared to a loss of $0.16 per share in Q1 2020[10] Cash and Liquidity - Cash and cash equivalents increased to $335.1 million as of March 31, 2021, up from $251.7 million at the end of 2020[12] - Cash provided by operating activities was $111,606 for the three months ended March 31, 2021, compared to cash used of $(130,836) in the same period of 2020[15] - Total cash, cash equivalents, and restricted cash at the end of the period increased to $335,679 from $57,110 at the end of the same period in 2020[15] - The company continues to monitor liquidity levels and may evaluate capital resource alternatives to provide additional financial flexibility[32] Assets and Liabilities - Total assets as of March 31, 2021, were $1.54 billion, an increase from $1.48 billion at December 31, 2020[12] - Total liabilities remained stable at approximately $1.52 billion as of March 31, 2021, compared to $1.49 billion at the end of 2020[12] - Stockholders' equity improved to $17.5 million as of March 31, 2021, from a deficit of $7.9 million at December 31, 2020[12] - The balance of accumulated deficit as of March 31, 2021, was $(274,086), an improvement from $(294,620) at the beginning of the year[19] Segment Performance - The company operates across two business segments: Games and FinTech, providing a range of gaming technology and financial technology solutions[24] - Revenue from Gaming Operations for the three months ended March 31, 2021, included lease revenue of approximately $40.8 million, up from $34.0 million in the same period of 2020[42] - The Games segment generated total revenues of $76,151 thousand for the three months ended March 31, 2021, up from $57,290 thousand in 2020, representing a growth of 32.9%[138] - The FinTech segment reported total revenues of $62,962 thousand for the three months ended March 31, 2021, an increase of 12.4% from $56,018 thousand in 2020[138] Operational Metrics - The company continues to focus on enhancing player engagement and operational efficiencies in the gaming industry[23] - As of March 31, 2021, approximately 5% of casinos in the United States remained closed, impacting demand for products and services[31] - The company has implemented measures to mitigate risks associated with the COVID-19 pandemic, including monitoring customer volumes and liquidity levels[30] Debt and Financing - Total long-term debt as of March 31, 2021, is $1,128.8 million, slightly up from $1,128.0 million at December 31, 2020[12] - The company has a total of $820 million in a Term Loan Facility maturing in 2024, with an interest rate of LIBOR+2.75%[103] - The Incremental Term Loan of $125 million also matures in 2024, with an interest rate of LIBOR+10.50%[106] - The company accrued approximately $14.0 million for legal contingencies related to FACTA matters, expecting to recover about $7.7 million from insurance providers[116] Accounting and Compliance - The company recognized approximately $10.5 million in revenue from beginning contract liability during the three months ended March 31, 2021[40] - The company’s goodwill is tested for impairment annually, with the next assessment scheduled for the beginning of the fourth fiscal quarter[49] - The company has not identified any recently issued accounting guidance that would significantly impact its consolidated financial statements as of March 31, 2021[57] Stockholder Information - The weighted average number of common shares outstanding for basic earnings per share was 86,984 thousand for the three months ended March 31, 2021, compared to 84,624 thousand in 2020[125] - The company has suspended its share repurchase program, which was authorized for up to $10.0 million, due to COVID-19[124] - Everi's additional paid-in capital reached $471.902 million as of March 31, 2021, reflecting a growth from $445.162 million at the start of 2020[19]