EVRI - Earnings call transcript Q3 2018

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Operator

Good day, ladies and gentlemen, and welcome to the Everi Holdings Inc.

Third Quarter 2018 Earnings Call. I'd like to remind everyone this conference is being recorded. And at this time, I'd like to turn the conference over to Mark Labay, Senior Vice President, Strategic Development and Investor Relations.

Mark Labay

Thank you, Greg, and welcome to the call.

our Mike our President Ehrlich, Counsel. Chief business Darren are Officer; Chief our today and leader; Taylor, leader; Randy Financial Simmons, me Rumbolz, our and our Executive Games Harper Joining Ko, business General FinTech Officer; Dean

we webcast. remind that harbor like the covers this to public in our filings I'd call begin, safe Before everyone disclaimer and our

be but and risks be could from performance. are future the during Relations an do our corporate our this forward-looking indication all including, statements comments not and and forward-looking in We to subject to filings, made events no assume of intend any results not to statements, limited section contained update assumptions of cause those posted These obligation considered those described are Some contain that statements. SEC differ to Investor to, in not materially Web uncertainties, of call within forward-looking our the site. and which of should actual they

are statements, as which reliance of today. not speak on forward-looking to You only place undue cautioned

to the this enhance understanding these non-GAAP and management business our addition, of better between them years. because provide underlying non-GAAP comparability refer to We EBITDA certain EBITDA periods to different may call adjusted measures, measures such reference part in trends in uses business and adjusted and In manage as margin. the investor and to

of ASC after measures to XXXX of performance This as we're as leverage of us periods cost the metrics reporting a revenues adjusted revenue reported to We also Beginning non-GAAP X, adjusted had previously similar basis, been now by to operating secure required the make certain certain the in and recognition XXX. comparable measured with revenue amounts, understand periods amounts year, includes ratio of XXXX, reductions assuming and recorded net consolidated as our compensation decisions on to and EBITDA. performance for are comparability new rules assist adoption under on facility all comply our our based related substantially January of XXX. we revenue EBITDA, cost that credit for requires the under year and revenues prior that adjusted part

as-reported adjusted reconciliation refer earnings a of to these Form the please amounts in release. to XX-Q, our equivalent our For

more see Form these regarding For information our for adjustments, XX-Q quarter. please the

our For Web and of X-K, SEC a of measures full been reconciliation and non-GAAP have GAAP earnings the our on related see please site to Investors. available captioned results, which release with our corporate filed section within both the are

Relations the be our introduce within will is that, has webcast. call webcast corporate of replay included I'm pleased this Rumbolz. Executive With A archived. the being and Officer, been our to President Mike Web call link Finally, the Investor section site, a Chief to and of

Michael Rumbolz

thank This everyone, revenue consecutive EBITDA and good third and Mark, for we of quarter profitability. our ninth consecutive joining afternoon, and adjusted quarter afternoon, growth our us. you, Thank reported all you of year-over-year and

diluted rose their share. second came million, both comparable Third Games records, basis income both in was per and and ever. were or million to EBITDA and XX.X% on $X.X $XXX.X net X.X% adjusted EBITDA quarterly FinTech EBITDA a million. Adjusted quarter at revenue highest $XX.X $X.XX revenue to revenue adjusted levels increased and

to in full $XXX our strong date, business we year a million across for our the reiterated of afternoon, $XXX performance expectation EBITDA of range adjusted million. Given both segments to be this to

our quarterly second acquisition a represented Games again business third set quarter as consecutive this Adjusted for unit Games we our $XX.X Turning business generated highest Games now the EBITDA was quarter our since majority The the of of performance across in sold segment's new our for sales record business games metric. indicators. for X,XXX the quarter of third record growth second the the to million key ever highlights. and

total Third ever sales approximately reflect in quarter. of highest of reel these accounted quarter our mechanical games for sales games. XX% Each of unit EXX both unit sales and our the

Our year-to-date. The down certain the from due portion unit installed units was XXX XX reducing customer as base of California. of customers well removal floor quarter-ending XX,XXX Class II units quarter, and units overall XXX quarter-end the second count our is a anticipated units from size slot primarily of at up in to previously their as year-over-year a units

Wide-Area at Progressive base Our quarter-end a X,XXX of games, record our up installed year-over-year. units which a were record premium at games also units. quarter-end units hit is XXX in XXX The

WAP Our healthy proactive unit, in driving highest our X% that increase in in units, made improved GXE reception us confidence increase XX% for prospects road three level, representing for The first management our of which the base daily of premium in and for particularly the consistently And our is months our second first compared in newest business last the over in win the strategic helping this very installed we've up our We've received growth. up to products, continued to daily is year-over-year, that our executed Unit Games map almost unit metric. this clear of per per three Based strong year. drive very months all results. year-over-year or being installed end the increases that the highest from are years of we is improvement in investments sales better this the nine and the X% units, $X.XX base at our win at are on it's generated continued XXXX. XXXX. the quarters gives nine

cabinet at least road introduction new each product Our map includes planned the year. of one

introduce to expect we for XXXX, cabinet segment. our our DCX premium Empire curved XX-inch dual-screen For

game based introduction platforms. includes Lightning continue hardware consistent linked the themes to our of support to the bank current road also to cadence includes Zap map brand-new upon of a successful a highly Our This our new EXX. support progressive

sales. innovations This position our leader. reel we slot unit different have strong is our an for as mechanical themes the we cabinet where Classic clearly trend segment industry game and expect our support of a Additionally, demonstrated new of Player to merchandising floor X.X

Another initial was Renegade the success we've example is and evident recently our This our casinos. launched new product positive product success reception reaction four in received in of of on with introductions the that XXXX.

very sign While its on which features per win far it's more always is reels very of played video averages. above package, floor eye-catching hardware bonus as with rounds part large three this daily off early, platform, unique start, overhead to strong a unit casinos'

our We reflected our Day. well provided product this recent is growth, expectations have with at in we that as very premium for Overall, high positioned we've business for rollout. our Analyst as continued continue assumption Games the new

into international and the such also business. our our as entry ramp-up newer markets include discussed, of we As Games growth business will our interactive

server the expected positive very the is of XXXX. to towards of growth, and beginning of the business flow early while adjusted the propel still business Now then cash latter in introduction remote positive EBITDA XXXX in game recent our generation its in is days

business; FinTech XXXX growth. our dollars was the to year-over-year increase. seventh which now processed and in volumes Turning continue adjusted the Both quarter to and EBITDA consecutive quarter generated transaction third revenue we

and based gains Growth the In to healthy existing combined industry. addition, in set and I of set continues broad a quarterly both business record. the net lead competitive EBITDA functionality accounts. new renewals the adjusted positioning customer from million our integrated want wins to of with of FinTech our $XX.X remains quarter in competitive bid with highlight processes product the our

third same-store growth now gaming and dollars ended the in that in as the and to consecutive of transactions XX being macro had our by continue quarterly in well and from benefit also This of the quarter positive And as momentum processed. revenues are the generated highest processed. XXXX. in gross economy. resulted quarters We've total was in total transactions the We in sales quarter games customers September the finally, health equipment services revenue since has same-store dollars

certain at it and comprehensive taken Analyst This more leadership operators. leverage and new play products of also stand-alone that previously fully spent to about suite. our was presentations, monetize the believe This power highlight some operational how product time were fully would Day able XXX we've and showcase casino than enhanced our to We or we events marketing and for demonstrated and our the and to drive We applications of talking integrated concept a product that GXE that specific product floor. our further type of network there great customers enhancement casino like During casinos, opportunities our our network. is on solutions we've FinTech our increases the into bringing a kiosk are power regulatory them for value compliance our to show games functionality could to vision delivering industry solution evolution. and greater integrated efficiency. and features solutions, by our casino connected

our with Our market separates renewals bid our generating commitment led and we've that to customers. the has contract the resonates innovation success to products been wins. and This in with competitive and development

Going customers forward, develop we promote and more to applications effectively believe will efficiently. we operate market, will help them to and to our with continue collaborate that

-- developing position opportunities product e-wallet It's was like our wealth objectives. their of the and diverse help able how of technology the gaming new test is one we as ecosystem, operators casino goals a of This and We're including value is both of Everi on near- solution currently across GXE. operating e-wallet of needs address off we're sports high map them specifically tailored and to extremely into move address floors. to another the our that show customers' on to is to an those can highlight priority programs the product midst extremely channels CashClub financial guests in we a potential that two of casino and and Our seamlessly different wagering. road long-term different testament both development

new call we with talk finally extension X-year yesterday. Gaming before that I announced turn about our Now I'd like Randy, to to contract over Penn National the

operator and acquired business. of any the we can business. differentiate for properties. partner now In usually products industry-leading extension valued years, an we forefront road has affair. regional contested our Penn consistently innovation. This remain all we As products covers their to the these long-term is in existing win largest stated, gaming our appreciative their and Everi must operations, been a of America. that extremely highly our many technology prove that deliver renewals, newly we and of including a Penn on that North contract are ensures National Entertainment business map in of gaming at ourselves renewal We of have highly product is manner the our the must Pinnacle

confidence to and is the clear in Our as ability our extensions products to placed this evidence long-term that needs. new services execute ability meet their of our customers deliver have such and us

Randy. that, to call with like to the turn I Now over would

Randy Taylor

Please revenues based on as afternoon, of press is results of everyone. in you, that our comparable and Thank revenues Mike, the following cost our release. note discussion good the and reported

units million million for $XX.X XX% million million the we of York of year-over-year EBITDA segment which quarterly was Games the a million end comprised is installed $XX.X base our a of quarter. increased expectation. million over increased quarter $XXX.X at year compared revenue third $X.X at placements up approximately was Games compared the were being the million year-over-year. from gaming third last quarter and This On $X.XX. to $XX.X revenue Lottery units in quarter-end, FinTech. expectation revenues FinTech that XX increased $XXX,XXX XX to This total second increased $XX.X adjusted from XX% relatively XXX EBITDA our FinTech installed rose from million our of $XXX,XXX from per million. XX,XXX, year-over-year, installed premium ago, million year for segment, prior with or and which line modest On to for segment our approximately XXXX $XX.X the of Adjusted by daily the Games million unit -- Interactive our with win includes $X.X about a units were XXXX, basis, mentioned year. to while base our quarter in while of second $XX.X operations base, at $X.X $XX.X approximately New XX% includes the Within flat we XXX third the or our year-over-year. period. business, record decline WAP units operations revenue call, In to and quarter, or X.X% end and increased a up quarter million. X.X% our $XX.X Adjusted Games XXX increased year-over-year the For from EBITDA unit the is revenue units, our

as Mike well was due customers their II previously As anticipated portion to in of a floors overall certain primarily decline units our the the sequential Class at of a California. slot noted, reducing as customer removal

now the should be in to California We at a relatively growth year installed equate the into units reduction expect full believe year-end of and Class an end will X%. result additional as location our QX. installed about II This unit fourth at base at our flat in of quarter this base

our expect form premium we're growth grow and in from While quarter. growth generating XXXX. year-over-year unit the year, XX% year for we unit expect factors levels. This guidance growth total the this growth in seeing projections a per we prior unit games, we such installed base, basis the revenue the our Combining premium to still WAP driven Renegade benefits this slightly metric, new operation below on approximately from is including to which in win gaming from increases and the meet are should refreshing is success legacy the from continue the daily as largely the fourth

result the we by X%, will guidance base The revenue achieve to is operations growth that expected -- measure to is performance daily there stated our full enable have which clear our goals. slightly win consistent here lower growth installed year our above levels growth our that growth in unit revenue in for our and the modeled us several is key quarter. fourth per levers What should for this gaming XXXX the offset are expect achieve grow in revenues. expectations We we that approximately with

into the year-over-year. our while quarter game we a third year win daily our that for our in XX%. quarter. were an third impacted have continuing a quarter increase about upon are per over blended expectation sold raising an we XX,XXX-plus we to electronic at unit. per increase appropriate $X.X win per capital, third sold end an XX% compared million from of that of an If the over the quarter, believe market, on for operations at XX% a every international In to of had prudently $XX,XXX. our has our The were the And unit, XXXX, is year that annual sales we increase quarter, of ASP, To X,XXX in up record we the ASP daily the $XX.X flow make about unit unit win lower in of generated reduce an will portion which units translates highlighted the from revenue. XX maximize Based business sales business Revenues strong last manage included in our we day which ensure win XX%. and our ultimately that quarter spend we ASP gross our sound full sales to ASP at gaming making additional the the increases free to are must not the value XX% spend of we third $XX,XXX I our through Analyst the growth sales on As the and of for of units installed units margin million we By the improve XXX cash of generating also spend $X unit the of Day, generate. base not achieving capital unit in justifies into return can we're this investment. choices, an capital daily per

the The of We primarily compared EBITDA expenses, in SG&A cabinet revenues in decline in the quarter to includes XXXX. margin of quarter increased R&D the was hold third EXX XXXX $XX,XXX continue to costs to our and higher relates for and EBITDA operations. third cost range the Interactive to the the in margin the our Adjusted which adjusted for in expect quarter XX.X% or XX.X% Games ASP better. segment fourth

EBITDA of revenue FinTech adjusted the seventh and consecutive our for segment, the in both grew quarter XXXX, For quarter. third

of consecutive both XXth in dollars and processed. quarter the growth same-store marked also quarter transactions third The

a XXXX X% flat the XXX% equipment access revenues essentially quarter and services information cash Third increased while other services revenue, basis on and for comparable compared was year quarter. prior for sales to revenue

XX% from resulting EBITDA the we the quarter versus year XXXX. XXXX SG&A for on XX.X% the XXXX, to the increase over third with For third in XX.X% Adjusted primarily the an quarter basis total in full cost. compared decline expect a now FinTech XXXX, segment revenues for increase to FinTech margin was comparable

Moving total our balance we and plus we approximately repricing we September sheet, May year, principal our term In interest rate XX, our XXX soft debt of these at required September to revolving outstanding loan, basis of debt reduced on under $X.XX was loan. amounts XX. on was term borrowings our average term of repayments long-term In XXXX, rate repriced loan points. completed LIBOR a was outstanding The outstanding will that on our month. million the our agreed expire call the no credit provision made facility billion, this had this the and third the quarter, When interest X%. the on as spread we weighted $X.X we in to obligations to

our our expiration call With we to provision, of the continue monitor will the term cost loan. further on borrowings opportunities of the our reduce and of look strength to operating for markets results debt and the soft

was adjusted maximum secured at consolidated Xx. senior Our leverage X.Xx compared to of ratio quarter-end a leverage EBITDA

balance September XX, bulk from ATM $XXX.X utilized approximately outstanding of of As cash cash by providers million. the us is our

debt million in of are total and and $XX included incurred non-cash which interest interest For of May. XXXX, from on and early $X $X repricing $XX imputed issuance expect Player million, million, completed the includes the we bulk in on fees interest cash million continue $X.X of non-cash between loss debt of the amortization cost. the to we approximately of expense on Station capitalized this million Agreement Also in extinguishment

The third expenditures million, $XX.X other totaled totaled placement $X.X capital and fees quarter million.

FinTech and amount This was gaming design related was approximately million. installed units segment CapEx Excluding to new game expenditures Games $X.X million. was segment trial. related million. $X.X units upgrades, was approximately Games existing the includes CapEx placed equipment equipment platform CapEx capital replacement for to million and base fees, $X.X and $XX.X placement segment on

was end the XXX at count quarter units. the trial Our approximately of

year will will We be to approximately $XX million. segment $XX other Games placement expenditures segment $XX CapEx $XX capital games million and $XX be FinTech expect million approximately fees million full will be approximately to million. segment

million. customer expectation million CapEx continues $XX full to to $XX million be year, approximately placement costs. $XX total $XXX and $XX As capitalized such, will the be CapEx to $XX fees related year will inclusive the to million be $XXX to million for $XX related development of in for million to equipment, our the to million Of million

our impact reminder, fee through of a obligation As XXXX. placement third existing quarter CapEx will only quarterly the

Following that, in the additional installed at million to we of for XXXX least placement reiterated years EBITDA without related unit million. our remain afternoon, will fees. placements any This for another $XXX our outlook base $XXX adjusted X.X

continue also We for approximately should million shares. model profitable to diluted the you the year. to for full year And therefore, be shares at fully expect outstanding XX

to if price shares diluted stock our expect We fully increase increases.

depreciation we approximately to the cash million million Finally, to tax for and benefit is total of between $X.X payments questions. includes and million. income million. back amortization XXXX, record And of turn million that, for $X approximately will be expect call tax expected $XXX $X to which I $XXX expense to the finally, an With operator

Operator

have Instructions] with you, Thank Boyer [Operator First sir. Stifel. Brad we

Brad Boyer

and a for thanks taking guys, on Hey, my congrats quarter. solid questions,

around sales. First question is product the just

said, you certainly than in bit were it quite what expecting. a we As little came strong, better

with a the drove kind customer? or Was in quarter? could the around changes? Any all-around just in lumpiness bit an what there, more one solid you it provide any strength color of quarter? was particular orders timing Just Anything if curious little there

Dean Ehrlich

quarter, each reel player mean, as we between at an a Ehrlich. between mechanical, Core, put X.X driven like those, I It by Dean take there orders and customers. had multiple we is EXX this between class you was look EXX, XX% really Brad, of what Mike in small if mentioned, within our all-around solid Hey. out

felt and going pretty we good we in we all have shipped around momentum of So forward. current terms what the

Brad Boyer

Any some margin the there? anything going Was Was tied runs initial -- looked a color there that's Was to product anything margin new hardware? was sales, on gross then it at around some on the mix to margins on little Okay, And soft helpful. looking there? me. related?

Randy Taylor

a one, Yes, unit. to I a slightly EXX, little that higher a we remarks. talked talked about little in the about cost bit mean, we bit the

ASP. XX units at also that We international had a were lower

So that margin. impacted the

are focus to So an think two that in I items would forward. continue on area we those going

Brad Boyer

lastly, third any to for the that the of the going California called to and Okay, situation we are further there expect slate that's removals helpful. move removals sort And new fourth 'XX? in we out you Or is quarter, that from a that year? kind then quarter clean continue the should then into going as a X-quarter anticipation into of just be

Randy Taylor

we more Randy, don't was is customer believe the this I of there's from this of that end the have kind be of place not primarily that Class in believe to And again. I fourth that that really Brad, Class that taken one I will converting III. if setback II quarter. will that was all, any quarter. to think the fourth most, think

Brad Boyer

Perfect, thanks guys.

Randy Taylor

Thanks, Brad. Take Brad. care. I appreciate,

Operator

to move [Operator George we Sutton with Next Craig-Hallum. Instructions]

George Sutton

nice you, Thank and results.

mentioned guys, release, acceleration cash you that's something Frankly, free in flow not your and model. we press So generation. near-term

flow I just anything that. to upcoming that be So from change? cash Is perspective to expecting a discuss should we there wanted

Randy Taylor

trying out. million fee off. Randy. $XX that. We drops of $XX so know at drops we're I next George, million don't lay know I least to just million -- think again, $X into of or million, then $XX off is the 'XX, And kind another placement of this we think year, that

in than 'XX. really we But now, nice increase the free we there So feel flow in and nothing into Analyst cash different to like out be net where will at compared put we Day. 'XX are a

George Sutton

just definition near Understand. And maybe it's of different a term.

relative… So

Randy Taylor

be. Should

George Sutton

relative than historically you're talk away you've came a you Can products. demographics the various part the at was you were hitting your feel about breadth bigger hitting you with impressed I of of you're that that feels GXE thing from the like that the just Day market the really Analyst reception Games, much your got to Relative hitting. that? to different It

Dean Ehrlich

Dean. is this George,

rolling exceptional our Shark a that some and talked I thing is really products of of on bit that to amount of things our right Arena platform, -- the do pretty of Renegade, we So job taken products I think have you Week, even we're the our taken the player lower-denomination is video, categories. first of coming we DCX. will. little that just demographics, our mechanical But us there. video terms segment, get reel, we between cabinet QX QX covering it's with new the all XX-inch note Mike Skyline we Mike us also Revolve. I it's And high-denomination which out get a gamut after mechanical mentioned then mean, we've the our good out, to do got a note you've launching have to is of end the that about cover if dual-screen we're and And in our upcoming the premium

standard plenty there, video coming mechanical. and equally there's it and our especially bandwidth on premium So different out of our on side, we match segments the but

together, all robust. it's So that putting pretty

excited we're So very about it.

George Sutton

Dogg Truth I we're be next next to same on wavelength. Willie to Nelson, thinking Snoop but told, Bunch, the was Brady

Michael Rumbolz

said right? that the demographics, covers I all

Dean Ehrlich

much pretty Yes, yes. it, that covers

Michael Rumbolz

up mean, I it there. it Right sums perfectly.

George Sutton

Well, they're all today. voting

win daily could going something Is I'm surprises something just you do -- can to further really be that And see can we much you that positively. how continues curious, forward? improve? lastly, dynamic by you that continue surprised think to be us that So rate

Michael Rumbolz

least you our But as the -- some well lean impact is standard, toward not seeing. are But lot we and game our that think, know can I we installed which in improvement in continue the as as that it, had also. forward. I products also see something certainly better Dean to performance what installed of you've there by both our to comment that of been we surprised a premium balance going primarily, It's which you're premium, as more base, affect And with a base, that. I'm should hoping things going is be

Dean Ehrlich

of installed is do Yes, to -- standard going Mike also our a is a that's it's you're installed which those get blends our what better, said. ops roll it your about where was And seeing our in we through just product premium to gaming just lot translates better growth and as out It's for base, lion's it he but performance. products all performance, which better I on support really growth. share that of that you base in in

So in both it's direction. right the collectively pushing segments working

Michael Rumbolz

of I to words say So yes. Dean lot and a are using

Randy Taylor

our add, before, I works produces the it the when we're into and put talked also sense As And we of to CapEx, managing right? it would going makes out George, returns. prudently things

So things in improvement modeled think, per I our years couple all unit. three Day, Analyst those some the it's together. But we have our daily in over win definitely I continued of next agree, of in

George Sutton

Thanks, guys.

Michael Rumbolz

you. Thank

Randy Taylor

George. Thanks,

Operator

Moving have we Jefferies. on, David Katz with

Erik Hellquist

for Erik is How today? This are guys. Hi, doing you David. Hellquist on

Michael Rumbolz

don't all you say would I David. like sound

Erik Hellquist

Great.

the do gain So potential that on would on? just about And what deleveraging? want to the And where time decisions, you leverage could the kind be envision you touch of outside allocation the kind thinking leverage. capital Can through target-wise? remind of us choices be where think you

Michael Rumbolz

slightly those really again, over not in just -- of would end would hopefully two, are the kind of And years, that, to XXXX. in type our the number we're below an look about really which projections down debt. say, other cash talking LTM to covenant But or next Xx first couple would put now big under of talk and or that's some I be: be give accretive; let's total small right if expecting year. and to return goal going to it and of huge term, overall we I'll But down I'll just were is think now. the usually get right over But one, not Xx on we allocation, leverage be our we'd Xx. on, think based anything pay you would a near We're a to just better will requirement. that. the not So times or where capital we our and that we and usually by which maintenance they five tuck-in a any EBITDA, basis, want a -- tuck-ins, that Xx. at that And be consolidated, there the at cash our better look get years number we'll us still produce be on one be of over use adjusted find flow Ultimately, for

Erik Hellquist

looking kind to installed on about over switching headwinds great. to talk back year-end? discussed of and outlined to the and And the over base, so range some you just the the guidance execute might to of the quarter need the you range can get switching thinking you in back guidance, the fourth for you Okay, the guidance, about above at what

Randy Taylor

per where over looking we're sometimes range nothing that sale would, $X I but base But what $X there's somehow what increase or unit. Well, would think at within we'd we where gave. that's going we ends now. drive outside everything -- -- the But better thought we win you we If I and and X% comes did do clearly, us I for -- about know in to don't that done with take $X.XX looking quarters. numbers, at last right the we now, increase the that's look that really for out win that daily of if were in year, we've to big that two -- we're we're right that expecting somewhere But unit. the again, now. in our that's I think that range that better but still mean, per right If think we I think the that. be daily that performed if would better between and installed a that on not better be talked and be we're going not we're at,

Erik Hellquist

thinking XXXX actually sales And the past. you've seems we So sales, just momentum far current the trajectory, about expect where to the you're continue on one that last as one Okay. Should product into the goes? like going as in ahead games the in of been well

Randy Taylor

expectation. That's our

Dean Ehrlich

Yes.

Michael Rumbolz

yes. Oh,

Dean Ehrlich

and all new try reason features we've factors that. spending been The games developing and the specifically and was form to capital ensure the and

Erik Hellquist

Okay, thank you.

Michael Rumbolz

Thank you.

Dean Ehrlich

Erik. you, Thank

Operator

Next McGill Telsey we have Brian Group. Advisory from

Brian McGill

Yes, good afternoon.

Okay.

sales. this. seeing doesn't American corporate games on month, that And following I want going next Native in guess, was do last pullback there's But enough I could question into know been touching maybe probably he the on same maybe in up, even maybe was are year more get really the with there guess, strength So maybe then about the to that a purchases. you how attention? the there the I industry the replacements last see so, XXXX? by concern the then slot buyers -- just market over you like on talk you on saying

Michael Rumbolz

their only I fourth the this have we them -- would that. see. a CapEx be and the of that's of Sure, in gotten small operations the unless seeing in a generally that's with seasonal same we slower year, they first necessarily anything they very the is I'll a left of incentive the out point expend quarter basis the bit kind also CapEx corporate time calendar casino because or to so for are whatever there's part mean, customer budget. that budget that's bit shop a a to buyers, there, over yes, generally tackle a corporate is slowdown on. you they're But are slowdown left may kind running use a to American rush it But not but -- Native I down the that and to expect of it, a think correctly And that by no with. do running on you for lose them identified casino generally of

fact may to casino expansion with is this that their point in in that in their refresh, is up regard where in outliers purchases and ramping And are market their on It plans. where to depends at at therefore, time. and so have kind respect floor their respect of CapEx, any they you see if that refresh with

Brian McGill

something how that certainly out as XX How could about expansions the lastly, in or big about California that look maybe be be XX to on months? guys? material how that anything tribal the could Is you over -- and you next

Dean Ehrlich

Dean. I this look -- as Brian, I at two look it is components, at

out I between in X% are comfortable of at putting market kind numbers look That's ratchets that replacement So the and there. the people somewhere X%.

between the And units from XX,XXX New play coming that expect some. and product with, we our different those, that in can anywhere to are the believe to openings, we areas places sorts the then garner depending domestically. find share XX,XXX after of all from on we go

we upside? Yes. do So think there's

go continues performance to Our the direction. right

And Our do between at that like to somewhere over and supposed we're seen last to now, the to If we've rise. at X%. I'd XX% share what I X% call started do, we We're continues here, couple some point. When at years. be of we X%. it, were

in in replacement far that But of more for at both have that's better areas, our between total I two what those it openings. as new and numbers, we the look the us. the of as is what target becomes So terms

Brian McGill

thank you. Okay,

Michael Rumbolz

Okay.

Operator

All questions, to floor closing for turn remarks. right. And the any further to like I'd Taylor Randy no with back

Randy Taylor

our discussing quarter this for our business you the year. joining next progress We Thank us forward we XXXX further when on to afternoon. call fourth results in report Thank you. look

Michael Rumbolz

Thanks, everyone.

Operator

today's us. gentlemen, and call. ladies that again, Thank concludes once joining And you for

disconnect. You may now

Everi (EVRI) 9 Nov 182018 Q3 Earnings call transcript