EVRI - Earnings call transcript Q4 2020

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Operator

Greetings and welcome to the Everi Holdings Inc. Fourth Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. to conference like host, to now Mr. would turn over the your I Vice Investor Pfund, President, Bill Senior Relations. ahead, go Please sir.

Bill Pfund

Thank you, Hector. Welcome, everyone.

Let Harbor disclaimer webcast. of our today's everyone and me call that remind covers Safe

could section and posted Our will involve uncertainties of limited to during and those contain today not materially corporate statements in our SEC in release risks the We those cause call earnings include, assumptions, are call. but results Investors actual are to These update everi.com. and forward-looking risks our in at which any and contained intend forward-looking from discussed assume our differ that and to, obligation filings, website other not statements. which do no uncertainties

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

each will net to refer EBITDA, leverage cash GAAP flow, such non-GAAP net most directly position. net measures cash measure ratio reconciliation A measure free comparable can financial debt also We be total of and debt, a non-GAAP total to and the as adjusted certain description related replay our can found is as recorded. website. our release in link and Investors being and webcast This Investors X-K our call in found the webcast well as call the to section of A of Section on today's earnings and in website. the be

our Fintech Executive the Joining Business Labay, Mike Officer; Taylor, Financial Randy Officer; Chief Darren and Ehrlich, today Simmons, President Leader; me Operating our our Leader. and our call Mark Chief on Rumbolz, Games Dean Chief Officer; are Business

the call Now over it's to turn my pleasure to Mike.

Mike Rumbolz

by today. joining and everyone highlights and and I'd observations. Thank thank good afternoon few you, like begin to a for us sharing you Bill

the January. continued with today. were announced pandemic-related results early challenges numbers to results the and began from in industry in continue in quarterly demonstrate quarter These preliminary impact which our we the recovery XXXX even progress fourth that Our line that sequential in

resulted which and closures reduced restrictions in in casino in and both occurred activity. December, despite jurisdictional increase an improvement increased Our November casino

generated Our income year-over-year. from our adjusted cash sequentially free we net positive EBITDA and significantly quarter revenue and and improved improved the third flow

Now of in our of base because innovative revenues, grow The the segments attain have investment whose course, revenue developing of games a our most build of streams, our time, relationships made the then, dedication between and increasingly our team impressive several are demand and it of and of they both balance collaboration and customers FinTech our Also, of execution our quarter large track happen. their consistent reflects efficiencies. Everi at importantly, fourth the strengths operating which products with performance company. recurring business and that focused stronger execution guests our record same help greater operating all in have

high-margin our success popular operators. our with operations evidenced is content. and installed gaming strong most portfolio continued of casino increase players of for The a that large are creative of revenues proven Now be is is and are both revenue The games in both games incredibly businesses FinTech to the the on component as of base, and engaging growth is the nature. common growing that the generating this priority sequential our the industry premium business, recovers. operations recurring to have This gaming In result resilient significantly, of developing performance games recurring in original, games. in clearly portions our businesses' installed

now to unit make suppliers pandemic. our our our base, At installed win been footprint for increased past each the year-end, installed record including, end growth consecutive XX% for of by challenges premium other many units games total per in the been then pandemic, that games quarters the Premium a than despite in of of more have of XXXX caused which despite premium the every at was came of Our daily installed up have which XXXX. games posed quarter This driver XX XX% performance. impact base and or the had of has we installed up reductions of quarter our the X,XXX our the base space. compared

is growth win our of in in to to our the largest installed are well right ship suppliers that for Given propel during operators of way. the Games last casino of years base, achieved said per have consistent our the unit, on way, our continue of ongoing organic business. elements I daily growth am premier of our pipeline become confident and North place the our several we our and to sales games unit And products, the another we growing one in share America goal new

up includes now Our showing revenues one XX% are providing customer beginning jurisdictions and significant the this ramp year. year-over-year time, we also launched iGaming with service game in BXB is our XXXX, it customer just this Michigan, sites are digital server remote up. of with we January we From launched for just growth to to US which directly April in and slot in three content business XX

to day we we the XX% of about represented in casinos On launch that nine content the one. of number top-performing games online the six we opened, market. launch a went average, partner Michigan a As have at were of and live on

provider a the As key casino an for BetMGM were example, we launch. content

then offering integrate game one to Ruby continue titles popular of regular content expect innovative a most on since additional we basis. to into been has and Our their Double their

their FinTech the the library games on extension the business, best-performing number Rush our based As integrated two in a we us strength gaining of digital as new taxable performing earnings our is focus US and digital iGaming, Canadian since site, a interest ahead. top and games. well and top joined revenues gaming multiple in jurisdictions neighborhood. which on great across revenue with contributor proven to the have strategic game that Street as of gives comprehensive content an our and XX remains in and will XXXX growing years when have daily our tremendous of confidence the wagering business source start be of increasing the as we And The average five example game among development another total

at During with our our Wallet needs the each of CashClub by choose levels their to White system, plans to branding, and Wallet our they flexible their digital features their both mobile to chose fully the which large to customizable began and that of went casino Casino's the solution. own fourth experience patrons with the is initial of live want move cashless for meet customers. and a differing of with CashClub first they and two then carry customers two marketing label speed our wallets operators launch timing fit can our their quarter, Each With the level forward. soft to offer comfort guests. align with to customers powered

the our retail with enables resort operators' Wallet enterprise casinos. financial customers infrastructure investments hub a can breadth the the in act to entire our across to and payments deliver gaming and our the By as in addition CashClub Our and casino as digital integrated advanced to digital for other beverage, our central technology, food floor solutions capability and banking operators a from leveraging experiences hotel of existing patron the the wallet alongside of service amenities. the casino

wallet. can and at wallet multiple one casinos, be the same of jurisdictions each every casinos, operators' used the one Importantly, multiple

the it also can offerings online operators with their provide as online bridge experience waitering, and land-based iGaming sports for patron's to such funding Now with experience.

for solution convenience Wallet is fully with step our of providing cash regulatory, players a next cost in financial efficiency access complements service operators. integrated services. and CashClub compliance is with significant our Our the all for It and loyalty, offerings together

and the our to their patron that opportunity connection savings, wallet, operators cost gathered is In time addition extend spending intelligence with patrons. to data and on relationship provides the with their through

state Casino's needs various financial controls. seamlessly and and United It into world. fits extensive house meets regulators gaming We in existing wallet of and also digital of needs forefront the the at and banking loyalty payments of federal digital the the at as well the are level, in believe as of we convergence regulators other truly of casino the States. the back Our the relevant processes the

With meet history we requirements player capabilities industry differentiated a that of truly and we the offer the high-value stringent compliance our funding solution.

where yet share point we specific data. stage not appropriate Given a are the of to early deployment, at it's

initial patrons that will the performed And Everi by providing patrons, highly another our transactions expectation for the ahead. in been from response cashless remains positive. has yet of driver transactions the growth However number casinos increase years the total

solution share further goes live we as these additional cash trends about our months with insights As the to coming you. in base the user and expect at expands, casinos

let over turn call to Now the Randy. me

Randy Taylor

hello call on Thank everyone you to Mike afternoon. this and the

to We show year XXXX the by severe operating and improvements the ahead. in the to positive caused inflection pandemic of most throughout expect from challenges further achieve we continue

generated months and we are investments. we recovery cash leveraging industry ongoing on growth our on the from growth strengths adoption our returns benefit higher and to that organic the product by we in flows as our Even the better rates pre-pandemic and maintaining drive focus and expect strategies

daily performance performance in were success has lower product and in in the generated which driven flat impact As our per units the believe our sets growth the peer of of We gaming operating base trend closed XXXX, base seeing resulted units. due which impressive our before same despite the pandemic. and casino has an our continues our premium with win noted and operations to casinos quarter the particularly vast unit continued daily performance, was the games gaming win primarily is per revenue to outpaced from majority unit demonstrate and of the business record our inactive installed solid Mike our from execution operations by fourth development Revenue activity. of in essentially installed we

Currently of the in XX installed and from WAP wide consistent and of units units. units has WAP quarters. end end or the Tribal of III installed we units up New of the base been avenue Since commercial XXXX Jersey. XXXX, progressive III Nevada grown units the initial consecutive trial XXX XXXX. our for base every XXXX, quarter a underway Class XX% of At Class Another installed in launch area at of field totaled footprint WAP have WAP II the has early Class growth

to expect both Class units go adding for in states live growth. channel quarter second commercial WAP new We our continue operators to a the with in III

performing Flex cabinet. equipment sales. the creative Cabinet on Flex driven basis, behind cabinets Performance in-casino one by Report The the seven the popular original content number top rebound and strong ranked QX also were a unit Cabinet for has in Portrait last up nice is focus our performance of developing key been Empire the sequential engaging Eilers-Fantini newest quarterly a sales cabinet in factor the in Our the our on consecutive months. a differentiated category and

ongoing the and increased most sales related pandemic. third mode to quarter, the the despite to remain conservation the unit in over that capital operators XX% uncertainty Our a due fact

Our of cabinets sale in our average the to most slightly reported line sales with we new reflects quarters. are of generally Empire but was a our ship units in grow we recent results overall of Flex mix favorable up mix believe competitors, year-over-year, for share. price Based QX continuing several for-sale sold. on the This our

Performance We real cabinet, ranked operations feedback which of as segment, is expect cash in Game years, of to mechanical expanding FinTech the XX, this believe Flex the set. is high revenues ongoing our XXXX, and our denomination that our with themes together the for gains our outpaced overwhelming game XX themes the the customers of to including ship quarter game quarter. over in third share the access continue the top we denomination Similar part garnering for-sale gaming the the due in the peer in has success the the that In three positive continue Eilers-Fantini top our growth Flex from XX declined modestly -- several of last from majority, for their high to products players, fourth the library also growth, Report. capture majority performing to Empire

the February. were our casinos and from particularly from Given revenues third With weather the reduction activity, QX in has when from impact our customer and sales additional products our severe impact activity primarily improving an in XX% in transactional pleased casino reopening loyalty that XXXX, by cash of increase up disrupted in the activity was driven access the our higher quarterly The the in there unit November was base, of which country to quarter. the casino from reflected a rebounding, restrictions sales led sequential much and kiosks, a FinTech overall increased that to I'm promotional our broad Equipment self-service and notwithstanding December, same-store revenue increase closures the of end X% loyalty increase and closures. year-over-year casino and note on of in XX% since been kiosks. basis revenue the

kiosks, are deliveries, they demand opting see dates our While delivery orders. for some financial we continue longer even delay preferring for solid their as to to or operators place

However, further given believe operators will the improve as to replacements ease of opportunity of conditions growth average the concerns and casinos, age macro and or the we about units capital and improve kiosks financial investing. for

loyalty or on called software utilizes include our redesign complete a kiosk to team hung XX-inch Kiosk, and refresh its has Prelude, Promo the in standalone Regarding enrollment wall. capabilities. improve With with starts the hardware done Prelude our a of our kiosks, our new and upgrading be month. product self-service The the our a now With conjunction a hardware efficiency kiosk design, undertook team J-shaped monitor either loyalty the its new XX-inch monitor, footprint player shipping can this engagement. of to new

With Loyalty enhances giant expand a operators loyalty platform to to the Software, convenience value dramatically step capabilities, and their our which significantly players. Trilogy taken has casino forward the new its for

programs, card has large at casinos live currently games, and Trilogy experience that teams. solution development loyalty across fencing. Trilogy digital, Trilogy cross-functional the between for is went compliance programs and promo loyalty traditional promotions, geo enrollment marketing touch Trilogy in Our our the by casino. beyond our player patron alerts, product designed information points QX. drawings, utilizing two additional all in goes sign-ups targeted platform gift and enhanced points reprints, unify The integration card payments to and multiple are line resort within

other grow the and X% Information This portfolio, opportunity an as interest customer revenues. of for As we and well operators expands sequentially to from significant a year. full to product software busy, our believe pipeline loyalty basis, our third the quarter. related recurring our to we player reflects revenue that we of expand our up have provides in and This maintenance increase to products us XXXX, and is value the growth compliance very With was loyalty will contract, launch a service services recurring team revenue, new a our the on substantial customer and provide look continue base products additional revenue base. up X% our portion ongoing as and regulatory significant operator each subscription upcoming our throughout and year-over-year this of value products. they new

as to Our installations Jackpot also JackpotXchange our and several advantage Xpress new CashClub Xpress At Wallet in Mobile the Jackpot XXXX, to allows mobile with digital Jackpot continue Jackpot of casino Xpress such grow upgrade solution a operator addition as a with compliance Trilogy unlock major to device, the and pipeline. we end have Jackpot launched pay the Xpress solutions neighborhood and positive Jackpot several continues footprint momentum more and an products. average new Professional regulatory features new kiosk. with professional show to or edition attendance an efficiently key process take in operators integrations Xpress securely Everi and award-winning jurisdictions. The using enables of

Express expect partners this well Nevada to We launched field our start trials jurisdictions. key other as year product the new as Jackpot with several into in several

to Now, current over trends. I'd on Mark share turn Mark? the to his our like and performance to call perspective

Mark Labay

we added to the $X no of reported I recorded initiatives. remotely as ongoing related these non-recurring that in Thanks with our to back believe EBITDA $X.X million of These our charges Games costs the to in million charges adjusted $X.X were longer primarily are and the reductions begin, Randy. certain these would To fourth our determining that nature, more quarter, related the of warehouse associated of work the we note charges in needed million office support workforce and consolidation cost FinTech facilities were exiting savings and continues segment as and segment.

period the lower From perspective, expenditures. year-over-year a new for most investment key essentially is part believe portion in ago an quarter interest versus impressive also our As warehouse the is result certain inventory we an this items cash expenditures our A EBITDA. increase we was move I in facility. want improvement disposed in and our financial our that of capital the operations not free to consolidation, gaming to fourth excess did cash overall level of on old equivalent of reduction more and year capital adjusted installed reflects in which year-over-year than This flow tripled our base. of

Our quarterly sequential basis installed net our fourth base by XXX increased units. quarter

ongoing way inhibits our not a did in our cut So, that we capital growth. expenditures

results. the from the which your and in XXXX expenditure the towards are acquisition of XXXX included cash flow are paid LIBOR Those not that As the and we cash in In rate we second operating expect for cash free half quarter quarter senior million you XX review environment ongoing And saved secured an they the funding cash this our of computation, is contingent you interest consideration models impact the approximately to settlement XXXX that floor market points, of to from savings charges include, Atrient, Also XXXX for generate a remind boost the the cash first including of the that I free basis price of up reported million flow our there reduced our notable expected will XXXX. an our rates. to in that paid final related on will results interest million advantage to $XXX.X provide reduced included expected first us payment final half the quarter basis cash flow, items a in and purchase took are $X.X we floor payment the in be approximately earned, MGT on expected of asset annualized These of look million in of cash litigation several to million balances. in our but $X which of in total XXXX. the February, was first that term fourth the loan. part is will remaining be asset the $X XXXX. acquisition would by the lower current We $XX at

taxes, years. $XXX to meaningful loss more cash million of taxes next carry-forwards, do net with the cash not accumulated several Regarding expect we than operating for pay

our Our ultimately primary to will be pandemic use and our leverage. our cash free liquidity reduce during flow of this growing bolster to

momentum towards lower change the our ratio. did has While slowed achieving goal leverage net leverage, pandemic of a lower our not it

share outlook. Now, perspectives markets believe me industry on longer is event. let a some but a appear you recovery when to financial our an gaming rather near-term The macro now no and if,

least the desire least loosened, in are overall macro-related While by that the of need created patient factors which until Not more is remain in in views. be other public large customers we the part our represent to capital restrictions increase, conservation of At as and the improvement some these public believe would pandemic to still gathering a mode. considered further there and vaccination near-term rates is becomes uncertainty outlook, significant by that settings. the comfortable

many look their activity our restrictions As are customers caused to the of casinos first others we have still quarter, lower still closed. that impacted while levels, by

current since in generate XXXX. positive quarter free record net cash activity in that anticipate will our current ahead generated of and first may quarter guardedly Given fourth improve exceed expect will levels gaming first our we the or quarter year slightly environment we again and flow are quarter We also flow we the to that adjusted EBITDA sequentially prior revenue be have and optimistic this our first and end, free for comparable to seen the of income. performance cash

corresponding is back some a a the the With position significant and further the performance questions. half up of first return recovery gradual macro While macro of I'll overall a in gaming that, forecasting population typical best ramp industry to Barring believe second as make of we current quarterly favorite and portion improvement the as demographics XXXX. customers' of becomes compared not our setbacks in call the likely industry their we a environment, more a and better that half of the are without turn industry to larger operator now the the vaccinated for would players casinos. Everi enjoy any to year to the that

Operator

comes we with Bain with Thank you. time, line this question-and-answer question. Your your from the Instructions] [Operator session. B. conducting first question David will proceed At of Riley. be a Please

David Bain

you, Thank Great. again. nice quarter very

I rock is, the thinking up of start, actually we sign the to hard Florida could was structural my make to to in just one left wallet. since over how standard changes be for but TITO It So, intuitive. floor completely time. the this the and user the on fast I end largest went digital question And this

on can great strategies promote was to the or to share that linkage there player will curious just end I'm as that as ramp was some signage broad-based of placed the So in floor. casinos that But promote proliferation? what order how you you the to are

Mike Rumbolz

discussing additional play their customer, and making actually the the offer most that has and frictionless some them or them the patron either comp, loyalty to of of space them on that of can then certainly the activity system, them also Everi, But to sort the whether it cash through can Good phone you be a adoption is the have Sure. casino spend program casino hear longer. the the provide of increase operators from make way incentivize the first or use to probably loyalty and for incentive types. access to Thanks. it in they considering that to you through to and back can offer And one David. of activity bring clearest a judge is that we an that which so of know And incentives. ways been is the connected is wallet the keep through the operators free methods an easiest to variety getting

offering space kinds sports see offers further space. iGaming the the into of in and that that either you iGaming, wallet already or online some the see expand sports operator wallet casinos the also in the degree can enticement the wagering to wagering also to that an using various adoption expand you have by we As of as

I the creativity the the need. up anticipate So with many those would really as it's as of probably being after come to but first, amongst operators they

David Bain

Right.

Okay. industry. return Thank and improvement speaking the the key the mean, But sort gradual of the of And we've your demographic all the and you're the and I comments of Mark, you. in been commentary remark sales you encouraging with near-term cited appreciate and understand then I on sort the team. hearing operator also

normalcy understand trying maybe the XXXX? of just using think that Just to kind the back big to deeper get about benchmark into could before of a we can be XXXX, we you opine end or like year? should Just Is there anything there picture helpful. that on would any

Mark Labay

improvement. in Randy his on hit we've think I some seen commentary how it

all call think I kind -- I'll that them were in quarter terms we patrons. the bit challenging little the volumes being a would fourth was performed by that of transactional agree of

more casinos were of restrictions casinos, implemented. As closed as the result and a further pandemic,

buzz and well kind still little But basis just happening better. installed Year perform New is but base like-for-like what seen of nicely we a benchmark think And our to could that's And XXXX the as seeing doing not very well. very premium since we to things and have pipeline an the new of is levels. of positions come choppy. excuse, on of our a lot on a start a FinTech levels little like a have possibly a that if some in but that and gotten are units. better start a growth to that I Where it's I even varying back XXXX in compared fact be the since that some you the we're QX compliance approaching has think side, demand those little play us loyalty bit, a products our February, into look we've things bit think products our products the XXXX was there. seem we is on there really bit, generating is, in I what benefit our weather The

start be of really think is to sales, XXXX new do challenge approaching capital the you have going in us those products levels some before to the those capital for and we them. and to could to equipment as we they So wait be that but terms they games available of for that customers start start be to think our certain be commit back biggest kiosk willing they really patrons or

David Bain

it. Got

Okay, great. guys. Thank you,

Randy Taylor

David. Thanks,

Operator

Stantial of Your with question. with your from Please next question comes Stifel. proceed the Jeff line

Jeff Stantial

afternoon, Good everyone. Thanks. great. Hey,

to gaming. First – We've if this I the competitive cashless going on there. of just changed struck is just curious do value thoughts or on would consider positioning, to separately get several last call. the Just of strategic I'm you start this on want partnerships start seen approach your something your earnings kind overall since presents market share, term? think out curious longer you thoughts yourself most upside updated has

Mike Rumbolz

– really his for we product jurisdictional. system floor. omnichannel our mean Sure. I our announcements by The and I'll operators, is system give online. hasn't various things. view as product. thoughts with you In of We the to We're – in competitors. my especially multi is view certainly can multi-platform weigh can on whatever Darren after. an let are changed the agnostic We're go

multi multiple and also online to in that purchases casino to ability and in can also only operators and jurisdictions food has the for we matter the retail beverage in we're an the open entertainment, online that wallet store. wallet to we operator well if as with offering hotel retail are But the up casinos. same wallet my used be So the are knowledge that we same And casino also system. – with as

those first time. that are So to from with the wallet, of I'm other not coming all trying enter opportunities benefits concerned the and our various space companies additional really about as for

Jeff Stantial

of you've on think average. of call in of I their for do some target. speaking, is And accelerated and to mean one the it forward tenancies has And gears want you're go-forward folks purchasing Thanks. reconsider demand run is, recent we to kind question survey seeing see pandemic the I you historically machines the the see to called start for to XX% industry A we moving catalyst there's helpful. your ship or that a gaming Is capital by normalize? to basis? historical expecting as to or be XX% that's seeing share sales you about allocate Switching managers whatever is budgets you call ICs what that of like quoted now similar segment. slot past because it out path this, shocks now, long-term to something the or them. potential a my Great, to kind over you kind equipment that XX-month know, think of guess rate on do are call I

Mike Rumbolz

he's can Yes. to big development testament it's games get too Dean In my ahead, the But his to And job to I XX% hit the soon, day of the that to really we change want of a That because the that pretty done. Jeff. to been have mark. it's the certainly tremendous sales. percentage the going performance actually end be at it studios part if another have from driving games that's don't the view, of

of think the the very all – goal. their and the share Dean's sales of as side. those those a was ability into seamlessly really greater floor ship combination I well And fit has honesty the long-term But the the the cabinets XX% new in – beauty driven As to configuration. on

it see before force raise to have up it We we actually occur again. to him

Jeff Stantial

Great. Thanks. on strong congrats another very and quarter. helpful That’s

Mike Rumbolz

you. Thank

Operator

Jonas line question. the Your your Please Securities. Barry proceed with next question of comes with Truist from

Barry Jonas

on about you maybe been how a by this do that think ask margin segment or sustainable to you've go-forward basis? the guys. margins specifically now, much of seeing Hey, Wanted expansion is

Mark Labay

to now was of Barry, take the to we in recovery. greater of action on get how I right previous I of think guess look -- Again, this our out strength back come is quickly. some our beneficial this recurring very said terms of ability calls, we've I'll one us our revenue streams very our mix some in

seen So those has higher-margin revenue, where the again, equipment because cash are gaming operations it's the in whether we've services And usually are side. on been inventory those generally challenges a our there the it's products, products. the component whether the revenue in lower-margin sales and access

structure, margins. of But to I out streams continue also term you expanding effectively what our costs office the we'll especially think to doing our So I on but to recurring in spaces, is margin. of move higher very as managing expense cost the some the forward, you'll think near reducing we've trying that that better, trim been have costs our the or higher have is those going things, which like managing revenue help unnecessary we're things see side

term it think kind continue of first mentioned XXXX revenue. longer have margins you're you'll normalize, total ways. comparability forward, that I terms And two want in our being I the going to recurring think Bain attack larger you if to portion of see as of as to that we kind probably us we for going So question, streams, higher a see of as to it David of slightly of on you'll think revenue more

Barry Jonas

same and And updated Great. experienced benefits experienced to you and any lack I have about company? Mike, after FinTech the the industry you the house in XXXX, what thinking gaming you've in do thereof or guess

Mike Rumbolz

several Actually, I observations. mean, do. I've got I well

segments I sales together make first was really revenue I a beyond amount of the of games that And often it. recurring one quicker being my as pushes company. under one and to bullish these tremendous on into I'm resilience came I'm both in businesses two swan of if FinTech. to the there's time strategic see I'm both don't and and But in reason to constantly I you back businesses, them the dollars so do amazing no that. both see not than the always keeping a said any prepared camp The finding is And quickly, going I probably the said up? -- of I'm about would black split asked the our remarks, right home revenues -- But well of synergy that mean, and umbrella. resilient shoot even the to company, a further me I've great need next for equipment course. because asked

proven really it. I this highly think they're has and complementary

Barry Jonas

so guys. right. All Thanks much Understood.

Mike Rumbolz

Barry. Thanks,

Operator

comes the BTIG. proceed Your next question with Please your Palmer of from question. Mark line with

Mark Palmer

Yes. Thanks gentlemen.

there I out are the think which on not you with other are But to Wallet, we wallet. know relative the on share other that at market take conceptually, point about rate how question to that the wallets regard should digital to wallet from Another the are CashClub you the metrics at participants? various ready

Mike Rumbolz

in the and should live two say I that. say. to of and a But speak two aware operators casinos else and I'm solution turn we're casino Yeah. I alive in -- it Well with to -- not has we're the tracking I'll adoption anyone that's two guess the would that first that's anyone Darren over let thing one rate. in I him uptake

in the One and out wallet it nobody casinos operators of has that multiple there. those has same

others, them having with that I a of respect at point. kind uptake know real any don't to this I So see

they're have I want do But bit a you objectives think you behind to Darren, that share? quite us.

Darren Simmons

translate I own terms encouraging. days, very customers. what is look of again, I how planning consider still just again, they Well the early in would early this But into data And soft it's their still really their with very enterprise. launches about our Yeah. think all

got sort you If look for a comments user there's of experience transformation. it's earlier, that simplified that's lot Dave's -- with efficiencies digital along think because a great the come of David tilly operators this about

certainly So I for the whether for on just will data their provides patron and expect that alternative sports iGaming. I strong be us, whether be online differentiated early another on platforms the how can of retail, be information terms be that this think enjoying that adoption we the their they connect brick-and-mortar, -- they're move that or have in from that and the it entertainment how whether because that operators the their their needle experience will based patients again our to

Mark Palmer

Thanks very much.

Operator

line question. Group. comes with from with question the proceed next Chad of Your Please your Macquarie Beynon

Chad Beynon

results. guys. question my taking for Congrats Thanks afternoon. on Good the

Mike Rumbolz

Yeah. Hi.

Chad Beynon

game the division As entire calls whether a ops about be conference were we things it think premium days the just bit former investor your when or more little know and opportunity on predictable. and prior at unit I base?

in and think you Can cabinet in terms goals further ops the where could just currently help gaming And you of drive think units. some guys and for us as that and that given XXXX space should in XXXX as far XXXX? if remains in goals XXXX XXXX provided had stands? growth You the exceeded I you it those I go division units expect about maybe asking in the white we or can space white this

Mike Rumbolz

installed but which now you that to quarters my can in for churn at out underlying take point previously of some it I then had on growth. certainly we to of last III view going Yeah some installed growth turn to can that this don't our the the go base a I put over absolutely. the the the we II see Class same games know see Well, we've another expect Dean expect he's growth that maintain hit in from and key, is I'll XX to also But some out metric give that you I base. year. consecutive I rate, Dean. But responsible I Class is may and casinos we he's have to have that now for of change. that expect

issues? speak to those So to Dean, want you do

Dean Ehrlich

that but Empire that continue got Fusion. them I Arena I if mean just five to I'd opportunities. high bottom is wheel Empire product into Revolve we we call line Look, our is really or installed denomination. -- between or categories different Skyline mechanical Chad, I base. Renegade then don't issues, Flex would We know launched product call And potential the it's develop our DCX

that get plenty to Now some opportunity. we're on starting has traction significant of

will are much you've it our as product tone, the but plan allow us best what building grow to customers. do our have So and And industry depends advantage is that possible. happens take as I within to and to a But heard blocks our that out to is a as offering on continue there. our repetitive think of

Chad Beynon

it. then important outlook and competitors. for division, market and iGaming the for positive interactive formerly a the in small digital your side digital you much game regarding the for Dean for but is Thanks. about that appreciate North America Great. larger guys talked on DraftKings probably And the

It so You more and more working there's should of things wanted little really the titles. a you game if could are fragmented just is less few further kind entry. elaborated there? well. be go just you some what space. much could a a to barriers opportunity It a successes the digital just out on plan frame sounds like far. about of ask if talk that wondering perspective But there the obviously, And, you have from to But

Mike Rumbolz

ability games would made have note other to they're going our RGS the to it mean to to the to I'm really Sure. each made that are produced we -- that digital. sites. I of digital turn to I over for And in And are Randy speak our of them -- for for that. But send

catalog to haven't a you but game features using So lot types to they're going? want the speak Randy sheer field in really the depth to do and But they game along where dipped into you digital see haven't mean, we games existing of could. play of that -- our the of bring our I yet we number

Randy Taylor

and Jersey launched we didn't Sure. opening When with would in Pennsylvania Mike we of in remarks, launch started in in we put to New as that his I XXXX Michigan. extent. Chad, say six sites the

room launch there's believe, iGaming still locations to games. operate with we other our So with

makes our provide we're think with we We very to good think more launch. can a there's for to we've we We any in also as So want opportunity Canada. sites RGS it our up, launch operators got spot launch up And us whatever believe in very with. jurisdiction to easy games. opens

starting of – I quickly we and to done in content needs wants they're content And some Mike looking very the of as whoever a the we've they of some what had we've and to lot for said, I think can we're success for, meet think and And a as however, that, want. Michigan, that special we've well. that's got as operators the launching. good had launch, known lays just be in partner we out

agreement in an think we us, and grow for we're continue think this well area that So to with is we're you positioned will we there. that

Chad Beynon

Appreciate Randy. it. Best Thanks, luck. of

Randy Taylor

you. Thank

Mike Rumbolz

Thanks, Chad.

Operator

George comes question Please Sutton question. Craig-Hallum. the your from of next Your line proceed with with

George Sutton

Thank and you. very is he head actually with but to – hope big gets killing it. hate Mike, I I that a mean will disagree you, Dean

Mike Rumbolz

him that. tell going not I'm to Yeah. Unfortunately,

George Sutton

a see very long-term you're have little obviously transactions a And suggesting to good that interesting because that, too well, seeing impact seeing it's want I'd and Mike very give Can you. you you're a that head Frankly, lines? of of early you wins. on you see But a was more information you're along but may in terms get economic big that versus because wallet give what Darren like the those detail you as can yet, CashClub a Wallet via much made to lot comment don't traditional. more

Mike Rumbolz

Actually that let the whatever all on? Yeah. are why is complementary overall do say, that's really we number of why to land-based We assign a that's Darren, I'll digital that me in for what think to That's but – to you transactions. it And have see are excites percentage you that, – transactions and these me transactions me you, the existing addition growth existing those to transactions. land-based want Darren the the let George us. to what more to that that so take But, give transactions me want much. as to

Darren Simmons

Sure.

Payments I say that greater out strategy digital and volumes, & think see frequency. out of of kind payments data are would that the adoption greater do what a the take Digital channel is to there, I you – of going you points transactions, has you page retail greater just

again, we early the where about of at. say, would I so really we're indications feel And good

now payment players, I ticket value frequency, you which type patrons. friction a this we And you're strong frame of the greater transactions adoption. customers, brings will terms hear a is that this their operators got across but we've see And right? that. got are a free, about reference not in going see adopt their I obviously – view, exactly I these wallet we one then but you're it more a we TITO to support, for our to their We've of that ramp doesn't just the of pipeline volumes, as is I think continue see ticket, of you strategy mean, and players it going you up. greater it's pin digital cannibalize strategy technology, again, because to greater enterprise, just purchase method, because anything. which think very a think of their It's to a is to with and think enterprise, looking I see debit quick right the of see

maybe we as I data months, the coming going what we'll stronger thought more in get think I And is be surprised. the think, originally. to be than adoption we I think think I

George Sutton

will Great. I it's or exciting. No, Randy for I all That's very mention, get think know me, Mark to if we but big heads immediately. want did that

Mike Rumbolz

Yes.

You will.

Mark Labay

You will.

Randy Taylor

Thanks, George.

Mark Labay

Thanks, George.

Operator

with next line Jefferies. Your the of question. question comes proceed Please from your with Katz David

Cassandra Lee

Cassandra on David. asking Hi. behalf This is of

Mike Rumbolz

Hi Cassandra

Cassandra Lee

Hi.

as So can you jurisdiction a the multiple elaborate mentioned mobile a little You on wallet? advantage. competitive bit

So, others a time people what replicate be to line would be challenge or the catch for that will for to up?

Mike Rumbolz

Well I ahead. Go ahead, Darren. go

Darren Simmons

Sure. Yes.

that different the jurisdictions holding those addresses monies patrons very a that mean multiple all again between their for that able complex we with capabilities, digital So operate the operations jurisdictions. along casinos, for purposeful built to we've built and move casino and be multiple on solution built complexity to wallet then again, something operators monies and comes I

around other of components loyalty responsible is KYC tools So, a big now, our part our and obviously AML the the integration gaming into products. or tools and solution our

still what not away there, payment sort going is there I method traditional remember, mean, So typical is a out ATMs of usage significant, traditional and right? would I say overnight. cash access

move those digital for be -- that bridge patients to that use digital and bring the channel. we players that So, the able to

together. don't brick-and-mortar compelling. mission-critical AML weaves and together having to I provide bring that provide operators of in we really that end kind all standpoint, of the source terms and a that's the believe, it the operator that single the day, because, together across think very need is of those compelling makes we -- services the you for online of and I and all loyalty very from of competitor brought that that it how at recognize the that solution so, an And there's And

Cassandra Lee

interested improve be areas? more, trend as what Got kind it. also Thank your you just cash you. of leverage down free like one would and And flow and in tuck-ins

Mike Rumbolz

our makes it’d be complementary think or to ledger, time is looking Yes. lead -- potential long something businesses always be sense. that we technology. is on whether our company But existing a that we're again, already look would side of either product looking Cassandra, a and purchasing to to that have integrate develop has offering we'd too easier at that would tuck-in business the in-house just something smaller would Games. or to FinTech by be developed We

Cassandra Lee

color. your for you Thank Thanks. see. I

Operator

line next James. with from Your Please Davis John proceed comes question. of question Raymond your with the

John Davis

were day. guys. guys down what I with Obviously, I Quickly would on if afternoon just wanted turned closures. but hit sequentially, had that per to machines good it that on. casino expected on an idea didn't like of you slightly the But think, had look Hey, know I was win

If you sequentially, Just be flat up was helpful? had guess, would there color on day the per any that sequentially? win a

Mark Labay

John, I'll you. take this for

on per happen same I that the is casino closures units, in think Again, probably of estimates think, running our we've they patron are. QX. active kind the of did by in that and suggested that, we number daily we're of around same where $XX.X impacted win unit reduced

from number down it's the installed bit in a benefiting but units of base. the little still out premium increased sequentially, So,

John Davis

is or advantage, loyalty CashClub with assets bought for tribes competitive ask point this and fact some there, relative Okay. casino Wallet. differently, something want loyalty the that can with you Wallet a the little ask that maybe that that or And aren't that the then as Is is to of to that a you focused necessarily at on. are I How this offerings important is Darren, the operator. that have peer the on as the CashClub integration that how out offering embed then differentiated you did seen the two cash the

Just loyalty like curious CashClub. in what the integration looks with kind of

Darren Simmons

club. which an in and wallet, in up enrollment of desires into the the a precisely strategically, point they player's for integrations of terms And do Sure. we with entry digital we an the expectation the acquisitions operators, platform made card, again, neighborhood. provides the from players Well, because that club, again, loyalty the launching what I sign digital loyalty mean, the players the as

for and in player's to to providing a sign platform So be this enroll club. players we're able up

makes be transition that you compelling. to And promotional in offering player only incentives integration to Mike more to that of that having up the then and So wallet, able the just sign from to mentioned, also offering as layer kind in, digital not the standpoint, that much platform. then start club through a that but

it are be around promotions free-play, connection compelling. So and that have -- that you can that whatever, incentivized dollars, very could be the whether through that

reality and you whatnot kind look are out and kind If at the of all is if would offerings. kind those the think operator of promotions more out give there. a And think I promotional is, what of, something. of our non-gaming part away to of exists And I or platform promotions, critical you an of gaming than say, oven of toaster you just going promotions and in wild, the mean, right? as world, loyalty

is engagement. very, about engage and this very now We've looking share and far above it's so channel mobile framework, is an in players gone from the just platform is And the promotions wallet Our we're operators platform beyond is a platform. the compelling. both, tying and engagement together loyalty what digital what you with which just how for, our and are doing

John Davis

sheet to Randy and we're And like vaccines the over hop getting Okay. a then, and of taking out. step rolling for No, capital I that's -- on probably structure. here want feels to be helpful. about piece And it's second. knock a just talk it huge back Mark, general balance or just bit the but little seem a

the from this that here. of a cash year we the Flex kind just Free of long And about normalcy on down leverage as long-term of, the how step sheet this year capital you to just bonds, so, half in of do maybe kind December, year. make-whole structure into remind your think over hopefully, thoughts next we how time? half kind get and flow of the perspective? But back and us, again you balance to in I curious of, some in sort how But envision think back get transforming back

Mark Labay

Yes.

and you to term we effectively I is now, cycle, we here pandemic And in flow related think, we our right incremental free where cash today. we're continue we the still as still each quarter. are on sit maintaining liquidity the our borrowed loan, to incremental sheet pointed balance generate out, cash sitting as the

premium months a down of look look mentioned term sheet, on lot think, structure the to premium that So X% on hole XXXX as the make at balance redeem and notes, we the through eliminating we you December I on we continue then some the have come a we've throughout and to at step that, higher-priced incremental have that opportunities got of debt XXXX, early. capital loan, thereafter. a in we have to little to those And for the bit do the pay a notes six as is

And have interest move costs, So throughout as a improve and reshuffle we I our of and overall we how XXXX. cash as do that can progress flexibility and think see we to lot that into the reduce we opportunities year.

John Davis

Okay. Thanks All right. guys.

Mark Labay

John. Thanks

Mike Rumbolz

Thanks John.

Operator

Please of comes next question. your question Hargreaves Stifel. the with proceed David line from Your with

David Hargreaves

assume level. cash willing commentary business in were to from sense I'm it. I with you're directionally to things is but the just some us some could restrictions the you the going. references call seeing like you. talk of in And the can regional. answered, sort if Vegas cash of I volumes, how anything you Mostly commensurate the you've past, uptick earlier wondering are quarter. of Great, looking Thank regional regionally, access about been offer kind a any appreciate what trends, access high in weather easing probably give

Mark Labay

we've reported entered it puts think, the was one every November Yeah, worse probably terms continue through convey, just February, of has coming but to down terms a little is of think pandemic. the that. where, as but certainly of in David. little was to is at This revenue people. is, I'll people a and What of impacts guardedly the but they along you. gaming saw we closed I we've in all what on given kind opposed month bit continue the bit that that the more is bit I optimistic accumulates that in Texas for yet, any just seemed tell were home, more what better little Fantini entered of or snow there, QX. haven't and And you a tried to of Oklahoma, and whether revenue out trend of to same-store its take probably our January. seen sequentially being into they commercial And with region report bit improvement. mid-teens. improve. for weather data. as the would February, kind XXXX happened there got where than saw trends. than what that in seen more we've QX, little of gaming I operators not light resurgence I have XX%, national you was we we we're And warnings better worst. December we're big saw December in you saw prior I as of in think, in Look, out we've lines probably -- a than And month us, things October January that seen winter right on storm numbers it

David Hargreaves

Thank Great. very you much.

Operator

Ladies the Mr. I and And Taylor, the of the reached call turn end Randy to gentlemen, for to closing would have back session. like question-and-answer we remarks.

Randy Taylor

Thank expect In long-term relative should ahead, we flow. and higher in recovery provide demonstrate financial and revenues grow free lead our This cash value the you, to Operator. EBITDA that characteristics closing, adjusted as and year look focus to achieve attractive valuations. ability shareholder we to further to build our to

our you. you industry's to believe, of call. forward and are quarterly the to long-term of We Games well taken, company. we the providing we've value positioned enhance update and Thank actions the With gaming strength look our recovery the the next on FinTech we an segments, ongoing

Operator

This concludes today's conference.

you at this Thank You lines participation. your for your may time. disconnect

Everi (EVRI) 10 Mar 212020 Q4 Earnings call transcript