EVRI - Earnings call transcript Q2 2019

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, everyone, and welcome to the Everi Holdings Inc.

Second Quarter 2019 Earnings Conference Call. Today's conference is being recorded.

At this time, I'd like to turn things over to Mark Labay, Senior Vice President of Finance and Investor Relations. Please go ahead, sir.

Mark Labay

welcome call. and Kelly, you, to the Thank

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

the who experience most Investor Also day-to-day brings Relations. the IR on activities. Pfund a today equipment fully in will as including Everi gaming tremendous is call us assume joined I'm weeks, in coming many Vice is of Investor space. Bill recently Relations, familiar joining already our he Bill during of amount sure the recently supplier President of and you, he to

Richard work Bill Jim continue JCIR you Land JCIR also Mike, earnings with of information closely at for and both and be Randy and I while continue Leahy to will At find contact release, to today's the the Bill. can end forward, involved team. moving

to to Everi. are With here at to us officially we that, with welcome have pleased and I'd the let know how Bill like him just everyone team

Bill Pfund

Mark. Thanks

excited on very value, increased join I'm community. investment the Everi team with including interaction of the driving expansion our shareholder to continue the as we at to focus talented

by me that in our webcast. the covers our reminding public this the Let begin Safe transition filings of everyone Harbor disclaimer call and

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

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

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

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

being included archived. call the A also call the Relations and has a website, of will to is link webcast Investor replay been section be webcast. our This within of the corporate

President With that, am Chief Executive Officer, introduce and pleased I to Rumbolz. Mike our

Mike Rumbolz

afternoon, you Good everyone. Well, to Bill. thank thank us good for It's welcome, have onboard. joining you And today. you and

reported in revenue afternoon adjusted quarter sixth This and we profitability. of XXth our EBITDA both consecutive of consecutive year-over-year our growth quarter and

X.X% to $XX.X Our a $XXX.X million. second and rose a revenue increased EBITDA adjusted record X.X% quarter million to record

revenue both million, quarter per also Games FinTech were diluted for and Second or businesses was note, records. Of adjusted and income $X.XX $X.X net EBITDA share. our quarterly

EBITDA on In will our moments, drivers majority growth reflects Randy few first business, continued but a of of I across performance results you with key million metrics performance to in like our business. the in the of $XX.X more review key detail financial focus would of our and Games indicators. some adjusted the

at average a sales second quarter, X,XXX essentially our price and a gaming basis sequential in consistent our We sold machines with quarterly flat was $XX,XXX on the and record expectations.

our for the our popular quarter achieved growth EXX Player in and growth. strong record unit cabinet, games This games by both sales was of was video quarter our sequential sixth The well sales in cabinet. as quarterly our our of XXXX Classic demand consecutive quarterly seventh consecutive mechanical as second reel

specifically and such Xuan up games our the is are new the Surge, this game. for a GXE EXX cabinet, year, Dragon last Fu the as to success which we popular Money of follow Driving developed debuted Ball, at which

players We games drive also XXXX game Core games, mechanical unit one as Player continue will strength expect these that in which for new high-denom our I note and our readers Guide. sales Diamond for to for Reinforcing cabinets, our continue release Readers' reel HDX reel best and Awards California we dollar Gaming to in Classic Choice the the in selected would number healthy Black platforms. the and Southern slot mechanical

is in million gaming in achieved the quarter. second $XX as record we noteworthy equally operations progress Our revenue of

in the in per recent unit. of during returned similar rose in in increase quarterly base quarters, revenue growth highest we the installed our to which ever Also per to second this in sequential win win our of quarterly a was our half unit, the daily and note, As we key X% level year. $XX.XX, trend daily expect growth to of our see quarter, the driver

support compared in cabinets our Premium installed base a only units footprint. our limited our of end with of expanding comprised base XX% at year premium premium cabinets. with At XX% premium ago. the been of the refreshing XXXX, has XX% represented new legacy-style achieved June that about An approximately we've older success content total XX legacy in important element

premium Today, cabinets older base. the only XX% represent of installed these

a from Our cabinet. Empire demand new improvement initiative and these in strong our our content to older the replace the footprint new XXXX for benefit positioning to units significant is

base becoming growth the at only At continuing EXXXX titles of units for see premium had we we exhibited the placements older locations. EXXXX and customer opportunity an our second popular quarter, installed game the of our base. in the stabilized player end strong XXX cabinet, demand With for on our

less present of than These locations represent half our market leased customers. of

at performance over least current placements to development several the these the themes, see additional growth for next in of the the our With new units we and new annualized titles, quarters. demand of strong EXXXX expect double-digit

units XX, comprise March our June base. year. of about WAP At within wide-area base or Today, installed over are units installed our was X% WAPs. just or The this WAP XX up is units, highest-performing units of which our premium our total XXX XX% progressive segment units from

our pipeline believe of of level penetration further we for our new growth. games, an there's With existing and casino opportunity

a second process WAP However, is operators, with WAP footprint historically and the casino unit expectations of modest expanding of challenging a the level the therefore for year. growth our in are half

games more is XXX of are than Week. currently March games year. Wheel end Smokin'Hot very our about Stuff of had cabinet on A our Stuff XXXX this the Shark couple for Wicked empire performing At of XXX XXst more quarter, Wheel units Smokin'Hot Wicked and we second noteworthy well up installed, which the

We game continue our lease theme demand customers. building to strong see for this among

up that best-performing continues and end. At quarter our to had XXX end, first quarter the Week of XXX Week, portfolio. units our the from game exceed units Arena advantage Shark we takes performance of games The technology, installed, is which Shark in

Week continuing third the the of strong Given quarter. expect to the of we units demand, base by double installed end Shark the

few have I current our by teams to improving cabinets and slot and lines, experience efforts done we ship that growth. years, opportunities the players' last focused of believe us, dramatically are our in designers the Everi. continued a game product expanding cabinet that's fantastic to for more job will create very support well performing both offered we grow continue our While our share, remain and expect expand on R&D

ever. exciting be year's our This most will GXE GXE

We efforts introduction new will be innovative of development games. showcasing our teams' the with

In product have next depth, addition, importantly, significant by and will primarily these summer. games category field-ready be

so the that in expect half first Everi offerings At new We brand to we that XXXX. these be GXE, game released see you cabinet share we there will exciting we with also hope you. can to demonstrate of a of new many

Turning Interactive. to

while also initiative XXXX is business, a XXXX. of revenue our first Interactive about of million the progress this still first part our nicely. small Our continues increased $X.X venture half to over And half

Remote new On our live has of gaming the for for for above New months or performing three RGS short, side and in been BXB is money expectations. Game Server, Interactive, real Jersey about our

We in live coming other going the we're markets. go-live additional opportunities Pennsylvania in weeks, in several and anticipate exploring

materialize of had Now revenue had these earlier taken we opportunities in than while XXXX, to some longer initially anticipated. approvals jurisdictional we expected have see

business, Jackpot our Super metrics to direct-to-customer early offerings. results. showing Rollin' both digital Vegas promising for BXC, The patron efforts are gaming acquisition very High we social and our continue in Slots In invest

In one Best learn number rated were that Reader's Mobile to Slot Choice excited in Gaming casino social fact, our in extensive the Guide. we was Super player XXXX Awards an the Jackpot for App Slots the Southern California for poll voting

of from of successful revenue architecture. the design improve to new of game digital result making capability a library, we're continued our significant quickly. as our growth content RGS taking to investment is expect add thereby advantage flexible themes our enhance advantage that the land-based We new quickly A themes to our in

simultaneous example. theme of our slot casinos launch Core our a a HDX in May game on The channel land-based money this is cash great almost launch our launched with into into our cabinet. social We casinos

Turning a year-over-year now the continued and share. was in market EBITDA growth. grew adjusted total second business. quarter consecutive dollars both volumes for second our Transaction FinTech quarter record to processed our tenth revenue The XXXX we to quarter increase and and

achievement adjusted business, XX% the from number amount contributions loyalty and $XX.X technology. for transactions same-store total acquired also up continued both was in prior our our face increased cash over million year, FinTech consecutive total nearly reflects EBITDA of This locations. quarter. access the Record inclusive In second of quarter XXth player processed the growth of

base. ability a the recently these also these and increase are and our our Randy Now walk several our on interchange revenues you a customers, challenging few It were a costs time portion to in ATM customer costs agreements of of the flat in was by of an of specifics through our related timing pass large with to certain to overall, minutes. will challenged renewed reflecting that transactions regarding

that's more loyalty of side, equipment year the prior over $X.X equipment or than the the in revenues million were from quarter. business. player XX%, the And up On FinTech $X.X inclusive quarter million, sales

refresh Now equipment. we've our highlighted of our belief that for previously stages for early a cycle in we're the kiosk you

this casino need estimated approximately three and years operators volume installed keep to high driving service equipment both old. more related beginning is the maintenance the to for access refresh cycle spurring crucial agreements. equipment transaction maintained. XXXX, And This state-of-the-art for of the well we were kiosks, revenues increased At cash these of it's the that productive of XX% than given self-service kiosks

replace continues older expect the And enter As to will their coming base to believe years we for benefit this of the continue maintenance into we FinTech units. customers and products and years grow contracts to expand revenue growth overall units year. service existing in older,

loyalty from our of comprised I Revenue kiosk XX% million acquired just million, other that $X.X player $X.X and and revenue the service marketing or from revenues is information This increased including and services discussed. business. maintenance

software recurring loyalty and also new revenue sales It products. and with includes from support information, compliance, associated credit player maintenance and license software our

as increase compliance reporting Now revenue basis. is nicely start rebounded in a a quarter anticipated, from revenue in solutions now slight its year-to-date the first on and slow from

moving into XXXX. annual EBITDA adjusted Now in as million our revenue in year-over-year $XXX afternoon's are range $XXX press release, reaffirming and guidance, we This million. our a of includes outlook to growth for this noted

expect down flow pay to Additionally, deploy that the to cash our we paid flow we free priority this this is in double quarter. $XX.X our year, term end, debt. million and on loan To to down free second cash

like call over with turn to And the that, Randy. I'd to

Randy Taylor

afternoon, Thank good and you, everyone. Mike,

FinTech XXXX a in increase revenue. in $XXX.X XX% of million, quarter second revenue and a the X% reflecting year-over-year revenues were Games a increase record For total

$X.X XXXX our Our increased EBITDA player quarter record million, the marketing both revenue million Games $XX.X X.X%, business segments. or FinTech Adjusted generated quarter. to $X.X adjusted in the of reflecting loyalty by of second and for and EBITDA million in

or our $X.X business. operations record revenue million, segment, $X.X million gaming a inclusive from to $X.X quarterly million operations from New Game over and million, York our X.X%, of In our increased year year $XX Lottery Interactive

installed end was occurred the this the of and a year-over-year base year, half previously removals decline had the early quarter The year basis. in primarily smaller base quarterly over discussed increased our While unit year. XXXX second reflected that on sequential non-premium

installed growth the in increase base. quarterly premium units unit of sequential our XX reflects The primarily

the quarters, fourth due and premium our We grow EXXXX base the to expect our for in total third both installed cabinet. to strong primarily demand

more $X.XX installed The impact year-over-year unit the from offset lower increase our in the of daily win per base. than

well expected our further as This be in unit, of new installed premium this Although per percentage as second to of base. our the is achieve XXXX. expect fueled daily win ever growth in half units will by higher we our premium growth highest a games

growth as of Interactive High compared money second offerings, and our are to Our our business Driving expected revenue along XXXX BXb social traction, we higher BXC Slots Interactive Super to social continues Jackpot with to periods. gaming gain expansions platforms expect this real of prior in half Vegas. Rollin' be and gaming the of and

quarter in last machine were selling million compared XXXX offset in by was by from increase quarter. Revenues of QX a the slight partially $XX,XXX to $XX,XXX year's sales driven game the average in The the increase XXXX. second XX.X% compared $XX.X second to for to year-over-year unit in price $XX.X million quarter decrease in sales,

half second increase look in our XXXX As our first the to we XX% growth. sales half we of in half unit expectations the unit following sales have of strong for second the year, revised

we growth timing With a and late to of of GXE the annual in mid-to-high quarter year expecting unit strong be the the in fourth single-digit sales XXXX, this comp range. are our

rate due the the floor will in our number believe inclusion ASP expectations want remain growing should to fourth Overall, for we and XXXX. still we above industry Even a translate will $XX,XXX. last share for ASP of year's our exceed of point that comp and up tough year share in with quarter. the be against fourth the average I to of units a growth revision, out quarter into also unit this strategic large sales full customer to high the a our ship sold tournament growth

operations. was marketing our EBITDA year and includes compared second quarter. to of to SG&A Interactive with the segment BXC the expense, Adjusted relates higher decline XXXX primarily for XX.X% R&D in the associated XX% The margin higher Game which costs in prior quarter

second dollars For the and the our quarter segment, in XXth of growth both processed. same-store marked consecutive transactions quarter FinTech

in However, cash services factors. market from flat the growth access to year access same-store prior primarily two growing compared were revenues to by increase and were The share from benefit when cash quarter. the revenue offset

agreements higher highlighted we slightly customers to with renewed of quarter our on customers commission our we first as payments for core that recently those services. largest First, several call, advance include cash

recurring secure flow net revenue lower portion meaningful of access in revenues future will extensions a services. these slightly Importantly, result for cash and cash

and these expect We transactions in increased customers, dollars growth revenue. to to processed lead should see continued future with which

to certain quarter, net certain costs fees quarter, experienced lost Second, in adjusted all increase interchange-related in have through would during the million transactions. amounted approximately flowed changed an which directly interchange revenue we This ATM the EBITDA. $X for of to

changes future reductions in notice along one-time as allow customers. after a to pass higher generally to we Therefore, us akin these our interchange agreements along customer Our these charge, more as to impact is a of proper expect costs commission QX periods. to the in pass significant portion

revenues expect We cash year. to return second our growth in the the access of will half

revenue due million quarter, sales million of fully a ASP other player operator operations. sales $X.X higher XX%, or higher and in loyalty our $X average than more sales was and primarily products efficiency kiosks year-over-year up to of from marketing the equipment and Equipment at integrated

loyalty from million of revenue, our this other and and our solutions, which services of a includes support prior was nature. credit, of Information in player compared and to primary the loyalty sales increase year compliance The maintenance, from rose which driver products, most $X.X revenues period. products, software recurring kiosk player central are XX%

to from operations net new the inclusion from and and strong expect macro FinTech openings and our should and year. We our our overall be revenue marketing Cash sales of new due growth operations. for Harbor. of benefit double-digit like for information business remainder the growth will loyalty services Boston kiosks customer This access economy, equipment driven in sales to the the Encore continue casino wins, other and by pipeline equipment our services primarily the

grow the Adjusted related adjusted second contributions acquired operations. XX.X% was XX% the to compared loyalty We FinTech to also margin the XXXX, expect single player to of second high the XXXX. in compared the for in to inclusive digits segment of quarter FinTech EBITDA EBITDA full-year the for quarter

credit under to ongoing facility principal our utilized long-term a in Moving leverage, quarter. the outstanding we was of our The portion second sheet. our to revolving no June debt we XXXX. our the and on commitment amounts outstanding XXth, had flow cash of to Reflecting reduce balance as free billion, debt $X.XX

of to flow $X payments total excess made million We XXXX required the approximately with cash on outstanding loan related million our term payment. $XX.X

we to flow utilize continue pay cash to down free Going further forward, debt.

our ratio was weighted June debt on outstanding average leverage X.X% rate our declined to XXth. interest obligation total times at The total EBITDA. adjusted approximately And X.X

XXXX, For million. $XX $XX million reflecting environment, rate consolidated our the to range a interest expectations the interest have improvement expense of in we lowered to for

in of amortization insurance reduction cash bulk and includes interest year million Our on debt million to approximately $X.X the costs. expectation capitalized a for full non-cash in $X

other fees capital totaled million. placement million totaled $X.X quarter second expenditures and the In $XX.X

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

XXXX, July entered our under without agreement will which our placement we continue fees Oklahoma XXXX. into Station June required unless the in Agreement, with we we footprint. our placement In in expand customer additional payment Player through fee final made now This XXXX, largest

we over we the would the XXXX, million, expect minimal payments will and foreseeable placement future. fees be fee placement for just expect For full-year $XX

$XX between is includes loyalty business. our total the CapEx the at Our and estimate CapEx million. expected approximately be to million. XXXX of CapEx range $XX $XXX acquired FinTech is to expected Games million our and $XX midpoint between This to be and for is related expected $XX total million CapEx player million

year, potentially which than related less note half CapEx estimated in was suggests spend the million range. $XX.X segment that Game our to the would approximately customer spend the could equipment we our that of I first for

the of previously equipment XXXX, have the strong anticipated growth second in I EXXXX in premium half cabinets. expect installed reflecting and to to for expenditures mentioned, we Mike base due the as ramp demand our gaming However,

$XXX of reiterated we afternoon for $XXX to EBITDA adjusted our outlook million. million This XXXX

opportunities, includes as Our foreseeable well headwinds from we our as discussed. the guidance full-year the impact

I underlying to impact strength we in addressing would the highlight that challenges, our continues on of focused our our these guidance. to and mitigating core while is achieve full-year believe the us business team position

modeling outstanding, remaining profitable modeling of XXXX. to in of our quarters we of - expect of shares the each outstanding For for remain

increase diluted the half expect second the the have million outstanding shares due and to therefore We in count per share an to of experienced in shares employee the equity to of increase quarter awards, year. approximately our exercising we XX slightly

in depreciation approximately million to We expect total our acquisition. loyalty our $XXX and amortization expense for estimate be to XXXX inclusive $XXX million, player of

We cash expect expect and million to $X million, record between an income tax benefit approximately $X tax of payments of we and $X million.

expect compared we flow cash this million. year free free cash XXXX to nearly Finally, of will $XX double flow

With the operator the that, now back call will to for I questions. turn

Operator

[Operator Instructions] We'll Raymond Davis today hear James. from first John with

John Davis

Atrient Maybe of acquisition contribution disclose helpful? you just the just little how bit cross-sell Just Maybe what's any and your the going. it's success relative level going there had talk far? is the there the quarter, high opportunity? be how is what kind a to so the would about and Have in outlook expectations, color

Randy Taylor

That's very is That's performing well. Yes, I very now, it. But some a can nutshell, why we color. been it's John, were bought from it's exceeding pretty We've slightly acquisition Darren did say our why and they would which here, a but what right probably we standpoint. expectations, did, I high. we got he it our in would say, good add

that's some Again, can be which equipment sales, lumpy. of

XX little were just it. can but only But that, a what very really owned days. and a the determining always customers about we've are since is selling we're Again, but us, excited cross our when about So he's seeing, not hit those difficult only over it little talk excited. for Darren for sales

Darren Simmons

into at the Randy do. think of all we FinTech certainly deals. products, all scale We was how we Yes, are cross our look and our as of do the can that leverage definitely really loyalty I of mentioned, good. quarter to all deals platform those opportunities of the And We all seeing to sell our services, with that look bring strong. our

at we're that as QX the to So of of really happy with with and rest the forward year looking platform. where

John Davis

goes understand quarter. maybe then yield, Randy, in And quickly, the the just the I interchange, so of dynamics the third away that payments

it's in think something I or third and some the partially fourth it $X you quarter goes million out third that quarter million. That away $X quarter? that called is or was takes time,

basically, renewals, impacts? versus renewal the what's of parse the half? trying X interchange assuming And back impact just then the yield - continue the and throughout kind sorry, to decline will point impact of renewal the basis the I'm the X% in the

Randy Taylor

couple think things. I so Yes, a

of but we a so improve. have really hit we out that it see about that the one a laid was will And So back pass a able through million call of hit $X should that net because lot some time quarter revenue net you in to lower like we quarter, us. the forward, in and going and and revenue have our be to notice, that

it what they'll $X totally the hard because the transactions start their had you And start to to see, hard customers, it's out. and but larger think - piece gotten I lap. that can do, haven't an large on customers on also parse on is, impact. to piece million the just is of the depends on it's I it a to volume level But out, The they parse to they'll the because

in in XXXX. these were the of later year Some

piece, So on of should a interchange built think one that's just to forward. the not we reoccur some that which was been but the little I bit, going focus in wanted

John Davis

WAP last you I called know, out one year. back then slower growth And of the for in me. Mike, half the the

per the our better came day than think expectations. in win I

think I was little over the in it quarter. a up X%

should what in year? and kind this half of should that win imply back the So lower how the per of day WAP about think for we sales the

Mike Rumbolz

into units have of long with have smaller suggesting placements the a a we don't long because Yes, wide-area history discussions I that very difficult with it out they're to casinos. had think having knocking more I of WAP about our I been don't think Casinos on you progressive was to date. their tend floor. be putting get park to - They

message is don't solid us during progressive well was steady so and have to the of And to with process, think rest we've That everyone throughout industry. year. expecting we're done expect the all blowouts be it's but the process units the and it a date, of I trying wide-area just really to to I to

Randy Taylor

John, at say, I a backlog. that. got would but That is slower, our unit, EXXXX, little a be in may premium really it's it, looking the has which nice not only

So day high I expect that - QX QX. per per that win do the unit and to be in growth up digit in in single

So I if you're that's wouldn't... what looking at,

Mike Rumbolz

start wouldn't number... that wouldn't I I bringing - start

Randy Taylor

one This will times is conclusion of come that the a don't hey, few to I there. say,

to now right growth continues we half CapEx has that per in is that digit and stronger really rate. some place the we why perform way think product them, win single hold back if can which feel it the of of the can the high I in year, is the day per unit

Darren Simmons

get commercial installed base we also progressive the story into a comes wide-area and really so to markets And XXXX as forth.

So was point in do an a in we're markets all because what like, time. wanted looks to intend XXXX that's we're be in at - but that giving the you expectation not we we in what that to

John Davis

That's guys. Thanks, great news.

Mike Rumbolz

Thanks John.

Operator

next SunTrust. Jonas hear We'll with Barry from

Barry Jonas

for joining Bill, Congrats the team.

points are you here guidance? your think what sit the wondering do the and in of low we As end flex between high just August,

Mike Rumbolz

to us the fulfill have loyalty the be and clearly continue our it. games putting on ability we we of that What of ability a number question. will increase ability into be just economy of that orders with it. The all the to play laundry floors, product actually. that purchased we're casino macro for There's and premium a our to penetration units, ranked, could to wide-area the going list continue It player the

kind way that laundry the are XX a if of come us for different the through. And not of or together, end, end from ones, one that to list to top stop be had have one could be will way line or low of us any you the Those you there'll or other. combination get important things but XX but a would the then them being push the singularly top either all

Barry Jonas

larger seen distributor. recently of an competitors your with two we've deals then Oklahoma And announce

for if locked where you - properties see Just potential contractually in? not wondering share dynamics you're market in changes any where in

Mike Rumbolz

predict. always decision. It's up Well, their to that's hard clearly the It's with operator.

from they're So to the day, devices to to the and deals going But those their share And III going two to in providers third-party. been seen the of to them. Class the unit to devices, continue it's provide up continue you've base. have at of end they're premium

far, to something I Oklahoma see in our subject Class like be II And so reason footprint any should why that. don't

Darren Simmons

add know would as I Barry, you And content that, good what, prevails. Simple that.

especially Our backlog's it putting we've point, the an out to to we as out on continue titles strong, very, put premium and long this very as similar successful been side, have shouldn't impact.

Barry Jonas

world, share cash the of payment like seems non-gaming lose to other transactions payments. in Last one, one continue side. just a the on It level high form

we cycle think world? that you do gaming for where in the Just are

Mike Rumbolz

because Well, of be we're that the beginning cycle. we're want developing the we at prepared eWallet to in specifically case

Darren Simmons

us. Yes, I think cash is still for strong

the is strong transaction look a at flexibility type. a you provides very a If from type, volume transaction for of by It standpoint lot consumer. cash we still what do

not So soon. that's going away anytime

pivoted mentioned, certainly away our with overall our strategy assist to is to able forms going become be not of customers as cash soon. digital But be have payment Mike But to more cashless. their we able address strategy to to anytime

they to for customers gaming convenient think our however their able their we've seen of access able funds payment experience. make forms to all customers have is, want their to and I be to want to it what support be

Mike Rumbolz

And Barry, purely I would add digital that, transactions. on end the have you one

can it's cash. a on floor. from center slot of We've the the ticket directly that. kiosk introduced have you that it end, really right other product the in then use purchase On where and actually pure the sits the QuikTicket you

universe the the into doesn't So it digital cash, you eliminates immediately. put but it

Darren Simmons

desire is, to Yes. the And be that whether have be to what digital holistic we or mortar. with able operators for their interactive, a if have experience do I some brick think consolidated it whether they wagering see and sports business, be

able be to to bring want two they how together. seeing we're So those

I to well be positioned we're So think that. able do to

Operator

George Instructions] move next Sutton [Operator to with Craig-Hallum. We'll

George Sutton

was the is full. half of in like give granular but Randy Surge, can the Stuff some talked is substantial to the things cetera. product half Well, glass us point compares Dean Shark about, items more from would good new is, have glass et Myths out some he And which sense. QX Smokin'Hot some & market. to you Week always if And Wheel, you referring as you tough George full. that the of to I'm ask also Wicked about and like Dragon Legends, just

DeanEhrlich

level, high that tell and I'd our product robust. sale two standard would next couple to the our both XX have XX next the introduced are introduced pretty category in And we'll side. in few we premium quarters, then I will the over just premium within both have category for you a amount and in of the video say somewhere area, months. of to releases that'll be At between in three, mechanical titles XX be

going So we're is as in they out Shark to we're Wheel of with I would level putting which have Week, with you that phenomenal seen at a show. and GXE, if why great come success Wicked Smokin'Hot ourselves we've a Mike a mentioned, position, tell

right than spit go titles, displaying. better now excited about be titles into Really many more for of whole here time the laundry probably to rather I couldn't too bunch going talk could what a during to call. another out left I to about be specifics. there's conference of the list we're but

Mike Rumbolz

in letting thing the that thing would know say, I ever in out seen several company performance have been development One in our people been since that last newest the and development the teams. best teams have have has last together how Dean in - titles that the George, But - have months we of came the been doing. one his we not well would shy this about I come

point. investments doing 'XX coming on tribute the So a off And 'XX. is And that 'XX, why end pay finding teams we really that's now made that to coalescing, best this 'XX, rhythm. the in 'XX and and their newest think in I to the see together, started starting our itself early titles you have coordinating, of at the

Dean Ehrlich

thing I add. would only The

a next will especially and If on DCX, want new with The cabinet. you about, couple Kid. of being coming new titles within pretty of you brand we're cabinet see Karate out the Those a months, Mask couple excited our

future. We near the on coming our in mechanical also Zoltar out very side have

So out my are top three that's head, those of content the good off of are but right premium shortly. a the field there's list those pretty just to hit - going a

George Sutton

the having unit of some cost year-over-year units sense you a give us Can of just trial mentioned out you there. numbers? new trial Randy,

Randy Taylor

George, the our down. Actually, interesting units that are trial thing, is coming

quarter. under XXX So the they're the of end at

things to to think really Dean I we're talked long. keep there and not out Mike about, believe having do that as I as all So trials the and many

So we've trials. always had

our CapEx are hits of every don't I but because mentioned to as it So which spend down, units part I think speaks us of them product. number the quarter, the

think trial speaks willing that speaks - I quicker. are it fact the the the to take to of people It product. to them

that encouraging from very so it's And been been standpoint. it's very -

Operator

Brad to you open. move Boyer. still Brad, we'll Do question. from a your line And Stifel, have is

Brad Boyer

Sorry, guys. mute. on I was

You're correct.

be Just get to wins just question for probably you've if want for talk a the you flavor premium these me commercial earlier side, operators, I'm operator? of to to footprint opportunity heard diverse sense as of is WAP properties product, Could we to give be correctly that today could though opportunity Dean. could type on on to of with some WAP transition that of take a some sort of had, a but the sort by there the into 'XX. comment little over-indexed more It especially best your there reluctant sounds is and so trying there Bill. early a sort side. wins, I how and as Anyway, suited that be early of to particularly expected, of sort my first that didn't travel been some nice have like, that

the wins you give of could a diversity flavor early premium? just a of me bit little the So on on

Dean Ehrlich

about spread premium earlier, commercial was launched at the it's What in not was mentioning talking Mike across all. and side progressive the say non-WAP is wide-area would I on out what board have we I the side.

premium, growth the for But I fairly of categories spread tell in within across come product the major opportunity, a will which different segments. that's So out we XXXX. breadth are would you

Mike Rumbolz

half what in in we're view the lease there, casinos we the of only less Brad, I we end of mentioned believe have was product penetrated that about that than that XXX accept of casinos the At that I day those. as

Randy Taylor

XXX.

Mike Rumbolz

of less And market products. for those the what half that's than as view XXX. we

Randy Taylor

into over both on to Brad, about his with EXXXXs we he into was big and where lot And side, a our how top But put his knew cabinet with commercial. we I of was have the and year more [indiscernible] was Dean very that's put where it he there. performing, slow we as until, he - think to as he with work them, push have think op wide-area Dean could like is progressive I work this game can excited and is - said, felt limited of it's banks also get we going down out That as ability out. this I

day that I have And we that's that unit. in some older doing real $XX, it's $XX be That's the doing, replace per look, growth I'm by can can daily it, going beneficial. a something get stuff comfortable can with still if we and why replace. to to win I something And

Dean Ehrlich

it, now Brad, the of my I excitement level I think would arms wrap is way best around manifesting. really our

five hit that about We of swim have lanes categories segment. premium product that different

the Skyline have killing each lanes. Classics, between very then a from coming which those So our of now, out and it set we and Renegade launching products Player right DCX, of of robust swim is Revolve, EXXXX,

talk these each great you few if been what, they're of seeing teams a we we've we know position. few they see things XX-plus the last that and do months, the launched And to what getting do those. that supposed months, about we're what cover when over are in So within next

Brad Boyer

And more sounds of question, correctly, it comment I of at sort is growth my Mike, better of exclusive if heard And in unit to your of quarter XXX half part just second to have Week of then end. get premium. back the expectations you a on this kind But around just general, in the is not participation like premium sense year. - Shark so trying

third products Stuff. to, And to I as out growth quarter. double well then the see Smokin'Hot end that some expecting on you in the you're you just You're the Dean, side. there lease continued expecting to assume of have other alluded some as by

you be color not but could would So what around sure say how else growth any helpful. could in you we should units, think about provide

Mike Rumbolz

have indicated than the No, the of we at to machines Brad. Yes. intend had of end at end year. year Well, we last that understood, we all had the more along

that So The trying you finite more ins installed outs will base to grow. are our to there for difficulty in of is and a go on. that get number tons

the of - to get more are continue a Class expansions, mindful fair also... and we so II Class we're plan in - our that while that the III, get that year. undertaking then true casino new end holding have their machines out be are fact disruption is casinos we will far at of a may start base. installed our to it's for interest, there that to have in our within share example, like, we And But and going be openings And things always to there from the shifting that

Dean Ehrlich

a disclose out we at took And that prior. I a units non, hundred would say, we also customer challenge-yielding several

got into So well. we to bake it as that

Brad Boyer

It starved for prominent new opportunity, the of, the of hardware. for several Mike. and to US operators grow like lastly the then are more And HRM Dean In kind continues content, new seems here.

market, you guys. would that thoughts Just curious level interested if any had the you ever Thanks. that be high and guys on anything if

Mike Rumbolz

No, devices, and who's we of need. that - and would aware in be we're have in much opportunities, we're followed so markets. we're should historical always discussions we on those content in interested new they new assume you potential new people absolutely. how always with Brad, interested we looking space at always And would in And markets, and racing the

Operator

from now We'll Telsey Advisory McGill hear Brian Group. with

Brian McGill

the impact Good to changed with And as consolidation on guess I operators hear he's question corporate buyers And the to we Bill further industry? we the back. the where general? on and congratulations have I results. Have from Game are well. had sales. in quarter? what's any Glad a with last

Dean Ehrlich

right, to got until out they especially finish year with the a to of going you, going as announcement - they and know still once But out see. and see, happening activity Well, there's it end. still be wait strategic accounts. on out wait The the year, among between Without some their the sort to would much We're sort question is detail, going off. has completely that's there's and shut to things be not then we major is the we going There how Brian, too much along, next to I it's Eldorado. need comes that activity. definite into not tell

Mike Rumbolz

coming the got what I you difficult the you that easy over think quarter. were part before hearing grown continue fourth us, into did and comps just come of over yet to the to we when grow from what not we've third again. it's was frankly, you've year to while grow, up now some against And

at we environment it what in to the and everyone Then budgets, mindful well, make just there that what that they and understands have out not have out going of properties, expenditures, their sure we of was It year. they look we they're more us question still tell or to after we're sure as so beginning And potential going want at than some and these is for that our capital marks around that, have them. of set they're goals be challenging the there the budgets. a

Randy Taylor

in of back year, as Yes. tougher And in done to We've we that, I growth half. say XX% talk XX.X% first half did the what quarter. the said, would also the the comps Mike trying we're about, in

to trying realistic XX% base that, every doing Sure, - we to do trying a do it. let grow. on difficult to think think could, know just look, need I that Could we people be but continues is to on that focused better? people we're quarter So to I

Mike Rumbolz

of already sales getting. standard kind that reasons end games you - the the amazing been true the the one of has And we've look, is end shown Well, in of that's games. our at lease at performance been the the that that day, our has increases see same significantly. and come thing up with we've But our

not by towel throwing means, Brian. the we're in So any

Randy Taylor

it we believe continue well back very I that's end which with doing and what Dean our And continues, Yes, comes sales. said, Game look, it we'll performance all think is to. the where if we is,

Brian McGill

and about how the Then renegotiations spend I'm talking the curious term. arrangements share with down about overall Governor could And that need installed there what there in revenue do longer for has industry to pretty aggressive think base more. tribes compact the that and Oklahoma, the mean been you

Mike Rumbolz

you, thing politics on been for talk the on As much I've get one with love to customers Governor's the in, probably side our would involved when to other. are me especially I not and as that's good told a that

take a I I'll Brian. pass think that, on So

banded they're them Governor. the think through tribes right as have with to support their and I now can taken help it's And their position, to go the together, tribes, we'll these we what negotiations as they've through supplier a going they the go do to negotiations. them

Brian McGill

think happen that might with up ultimately do Texas then II would any the you as on And in bigger from what And potentially? you a end lastly, that much benefit update facility? Alabama-Coushattas, could Class

Mike Rumbolz

with the I in one know I honest don't know being courts. - been of until going much Texas to be challenges depend going overturned have I don't the think to to you you. growth that see courts, that's there's the by on that Yes, made be

so it. far seen And haven't we

bill rather know, but trying Congress convince a doesn't be a to in this pass to if front - I than trust I'd judge of me, in it Yes. favor. my

Brian McGill

Yes, --. we if seems maybe through, it well, could like gets

Mike Rumbolz

I to XXX%. it you happen. with it see would to I'm love love see happen. Would

difficult it I be get how to best I just know it'd ever. think legislation. the thing is

Operator

will have And Jefferies. which question, with from Katz final be one for we David time

David Katz

very from the your picked earnings the you've the absolute of calls, disclaimer best. at somebody shortlist you read really If needed beginning the of to

Mike Rumbolz

so. thought times, him it several having We read We it by auditioned so.

David Katz

looking yourself don't lot from glass the hard and quite opposed be in to sit want I'm discourse up at much earnings But you've Look, particular, guys of operators that. we valuation. talked guessing a But about few participation just yet is past some bought to he's through, we costs, kind I is the that the and hours empty, calls shown one as that it cutting so David. obviously a something times. much of within half read so see the of probably consolidation, around of XX with games. And you

But who the looking of commercial just point there's good, your are could costs out market see are talk games do quite which to beyond a this same way. obviously at entities to much in us there's question. start there freely the exactly because no at you tribal games don't lots there. as against How And that work of you, good

Dean Ehrlich

the very meaningful would going little content spend tied. I of floor. same going to et to you way leases, a bit, being customers know be it its stick a to particular It's tighter? contribution of prudent great people that's on type that product way with operating but gotten they that years the through. what, the to you a to finds the I'm still work the how And their I it's theme, - yes, cetera. tight sure, little tell been Has would prevails. it's XX always going dollars David, bit great business this to segment. There are being last been for And say, any

Mike Rumbolz

game, to of because the you spend there then taken it. the that's been to we've go, billions from the natural seen tension natural been an and have that back with floor, and up, money balloon put you Megabucks on always as David, this operators tension up tension And expect David, over dollars there's down not of Wheel come then balloon seen since we changed. down. a of position, and, look, a industry, and operators the And suppliers box with come take casinos. there's out hotel we've of the back And $XX,XXX and casinos And been the build industry, since as has always go an casino winnings always and a share the and a the Fortune, and this then suppliers over

there, other hasn't always that it conversation more its The is But sometimes tension raises changed. frequently than around times. head and really it

casino floor. a the games out win that better to there some going contest. the And casino Dean's on to point, ones are that floor in participate always be that will any games So will and are

us at we overall They and partner, But expect And were to help casino a position that's hear from or you in produce least us tribal operators way intent that to good operations. addition, that point that net speaking. a with that they take raise what to their games and their income also good the you do. their same speak don't have that operators commercial is

Operator

things time, Randy for back this closing at Taylor And to to turn like remarks. I'd

Randy Taylor

look us Thanks we following progress seeing joining. joining to afternoon. in our of quarter our this Thank for report GXE further call at will November. many And you business October. on on for the that, forward when you results in We we third XXXX discuss

Mike Rumbolz

Thanks, everyone.

Operator

conclude you Again joining Thank all conference. that us. will for today’s

Everi (EVRI) 11 Aug 192019 Q2 Earnings call transcript