Earnings call transcript Q2 2023

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Operator

Hello, everyone. Thank you for standing by and welcome to the Everi Holdings Inc.

Second Quarter 2023 Earnings Conference Call.

During today’s presentation, all parties will be in a listen-only mode.

Following the prepared remarks, the call will be opened for question-and-answer session.

call recorded. this reminder, a is being As

Now, Jennifer Please Hills, turn the go to Ms. call over Vice let me ahead. President Investor Relations.

Jennifer Hills

Thank operator. you,

Let results statements that Safe risks and other on that today’s and to, a release website could These and materially involve me risks cause from that of which discussed uncertainties actual call filings, forward-looking in disclaimer, those today in differ call. are covers our contains section webcast, uncertainties limited begin with to include, Harbor reminder posted today’s not at are earnings contained our and Investors in SEC which but everi.com. the corporate our those

do the cautioned of no you are assume potential forward-looking undue obligation not to of update reliance XX, which August risks, as intend statements. only not are made any and place Because We XXXX. statements, today, to on forward-looking

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

Mark Counsel; Leader. Chief Taylor, Business and Officer; Dean Simmons, Leader; Randy Labay, Business Lowenhar-Fisher, Financial Games Darren are today Executive call our Ehrlich, Officer; Chief On Kate General FinTech

to turn Now the I will over Randy. call

Randy Taylor

of million XX.X year-to-date free This the us. all you EBITDA cash flow million. flow of thank our quarter XX.X and joining and morning, Good adjusted Jennifer. we brings cash XX.X revenue reported million, you, to In XXX.X free million. of Thank for

shareholders assets free to to the used XX return we to through certain million acquire repurchase. cash balance along quarter with flow cash Video second the King of from our generated sheet In and

revenue double-digit prior over its with the a XX% continued year business strong period. FinTech Our increase

due Games a unit sales Our in compared expansions of as primarily new QX strong to lower relatively to prior year, quarter unit for XXXX. year was revenue and sales openings compared our business in flat in the to the XXXX,

with driven in business to our revenue continues customers and to by casino double-digit the products to strong growth floor growth the existing dollars and perform new Our well and customers. delivered expansion of services FinTech for

signed diverse, Greenfield driven that revenue This growth single-digit full-year payments, opportunity will high-recurring we a the healthy growth creates and of that by product believe is provide runway line, loyalty revenue our of orders for across solutions. of existing including a a pipeline high mobile regtech,

expect strategy total As we are executing centers we grow our which multiyear the of reinvest value and interconnected the neighborhood addressable growth, touch we to points, operator maximizing market. through that on both digital our for around our patron will

We are for integrations. the through now financial can services fully attended, need enable in or expanding the across mobile across, We flows slot floor also without access channels. caps casino system self-service cash external sign-ups and

tickets voucher. their flows And the to QuikTicket, Concierge, QuickTransfer, tables, at allows and purchase card, of deposit service now payment to our our traditional gaming cash slots By leveraging extend directly full cashless bank which product, we slot mobile our patrons a their kiosk. back

financial traction, their and cashless gain work to our to to patrons. services products digital continues customers capabilities with wallet digital access as adopt Our new they and we and closely provide

transactions to their the most of is per a the overall floor. showing cash increase wallet spent the visit mature per data ties XX% using the a X.X to and of majority compelling dollar number visit. that more with wallet The wallet the XX% XX% And than accounts property patrons in have their of more installed shown

to gaming this Apple distributed markets. our recent already Pay, generating increases. with to and revenue grow as business the We our which growth additional remain acquisitions, of added including ecash, North opportunities on types payment bullish grow and acceptance the American have patron including We expect should PayPal in wallet long-term QuickTransfer drive

also ongoing our grow leveraging is initiatives entertainment, contributing mobile first and revenues and beverage hotel, sports, to loyalty. base recurring into will that and market to with capabilities Venuetize food retail, our expand combined our venues, by our payments

GXE All on will this standard services. products be digital ecosystem gold of at and display demonstrating mission-critical of our

business executing we on are roadmap. our extensive Games product our new In

family introduction new the the over and generation premium We sale several of our are next quarters. moving cabinets for of forward with next

family of first cabinet At Dynasty new the and to increasing we the sales generation Dynasty to growing sales Vue themes, our and of end expect the cabinet future. Vue. of the next we With portfolio continue began an the to be contributor a cabinets, in ramp selling this sale in game our of first quarter, game for

Soul to-date. introduce this that will next Dynasty October. Dynasty inch we on Building of hardware, foundation XX CPU quarter. a is and This integrated Soul a in with based portrait most cabinet, fourth curved button available cabinet will in be beginning a our our additional sale cabinet The more for and DXE screen powerful includes sale a panel for

mentioned headwinds. However, as slight quarter seeing our in call, we near-term are first we

of games. industry and In video sale these the the mechanical category, dynamics in highly headwinds reflect for our competitive both

introduced largest success in segment many time have first the of new in for two the suppliers of the of the history mechanical cabinets years. real example, For

the high in to games, great be expect and leader to denom With a real we continued denom segment. continue our performance this of mechanical low

competition. cabinet the and games should video segments, Our content mechanical game provide and all in for both growth despite longer-term game roadmap increased our

XXXX, premium the we originally with experience of than to churn first higher anticipated. cabinets a continue base slightly installed Consistent in our quarter

in accelerated premium Dynamic so in quarter. and Reserve two provide of introduce Dynasty install and PC new both cabinets ahead for we cabinets base. We our third to GXE introduction that premium expect these late in The plan of hardware launch new cabinets, our them could was cabinets

both differentiated new Australia, forward first include products content our portfolio themes showing be cabinets developed U.S. number to game in of games will successful tremendous in themes, With addition and studio a our great this content at are the game to we looking we game in of the another GXE. Our believe by will GXE new and

continue We a cash investments returned business. in strong of our flow portion game make future scale adjacent has free revenues, increase game categories for digital growth. we content development, our to internal and set neighborhood year-over-year up FinTech will in the that digital This as utilize to strategy well continue a to XX% to us

also markets our support in horseracing, platform. the our payments expected loyalty propel and and cast with distributed Bingo us into Video our of entrance mobile to of into XXXX, in our launch gaming omnichannel the deployment Our expansion continued historical has expand King, [indiscernible] allowed acquisition gaming planned

opportunity provides our into which force additional On May our platform. Xst, ultimately gaming asset our these acquisition sales well The an for underway. existing of assets Video leverage relationships to Everi we closed integration is content and to of expand grow and King, an business the

We have already second customers have customers from existing in interest begun the and our increased to new Everi during quarter, seen new add we Bingo products.

continue to those addition on side to to games Everi offering of kiosk, tablets, from provide ultimately King, into Bingo Video wallet our including the acquired expect We solutions the cashless products growth and integrations incremental with opportunities. integrate

the over call outlook provide who me remainder insight the the second our and financials turn into will of quarter more Mark, to let for year. Now current

Mark Labay

Thanks, Randy.

year-over-year revenue XX% more to of by driven in growth by color adding operating quarterly our in We a and begin results. little growth me FinTech X%, a growth games. Let revenues X% reported a

delivered X%. which grew FinTech We five their XX% year. revenue, services continued increase nearly see second to XX.X financial of and a value patrons, in is which strong to million compared by our growth the a quarter or to in financial billion access last customers

hardware spending. other Additionally, labor segment by EBITDA for of year. cost increased for the and R&D year-over-year impact XX inclusive by sales X% of prior Adjusted XX% the higher software revenues of X% to and increased increased the increased million and FinTech

Within was adjusted XX million with EBITDA compared a XX million year-ago. the segment, game

will base than installed our by second the year’s less base the units units as last believe installed of XXX June. of end any the year sequentially. XX second We be Our declines increased the further but X% quarter, in of of in half installed from units declined

a higher lower mixed gaming financial by sales. a the expanded margin hundred points basis to XX.X%, to from due margin gaming services hardware access and and primarily gross equipment operations shift margin, Consolidated to

revenues adjusted X% year-over-year rose XX% payroll higher EBITDA compared of XX.X reflecting XX% invest year-ago Consolidated continue as was future with to a R&D percentage we for million. spending EBITDA growth. as to and a Adjusted expenses

in of We this EBITDA the mid range a end as expect XX% remain high to through of to year. revenue the adjusted percentage

the $X.XX to Our in quarter second adjusted year-ago. $X.XX a EPS compared was

during offset substantially the lower share decrease rising shares the diluted repurchase interest higher from interest tax as expense net incurred outstanding partially impact result a provision our a A rates. and in primarily of our quarter from income activity,

million, the XX million expense increase Interest prior was in an of quarter XX year the quarter. from

of we loan has million of rate of half notes have billion and a X% term at a XXX As interest XXX outstanding variable a a that reminder, unsecured rate. and fixed

on interest Vault Cash fee Also included usage is our the ATM cash in arrangements. expense

cash the expense be in to to million expected end Our quarter. the XXXX estimated full-year vault for is compared XX only of our million approximately at nine

X.X%. borrowing Our was average approximately rate weighted

with adjusted on leverage We total times expectation to X.X our quarter and our range. remains debt with X free ended target comfortable costs. current in second our level we cash which the net EBITDA, remain X.X Based line current strong interest for of trailing flow, our time cash with at

We expect target remain to XXXX. at this below throughout or

with flow offset generated by million was costs, primarily of year-ago. XX.X interest quarter The of capital in the six compared was XX.X million result the million net seven decline Free lower partially expenditures. of cash increased a cash million

the May discussed year, add we of million last in would million acquired began common activity since our our X.X share have stock shares shares repurchasing for Randy XXX approximately in repurchase of common I stock. Although total we that, of quarter,

decline second primary offset of equity shares more new and X,XXX,XXX share repurchases been in These the our from issuances have plan, than the X% the diluted fully incentive share outstanding or driver quarter. have in our employee

remaining repurchase Board million authorized by $XXX XXX the May. under to the available million a have We in

first our strategy our maintain to current to investments that business allocation continue focus long-term opportunities. expect direct We generate the in capital on growth and

flow investments, Second, to to growth free of a after making consistent towards cash acquisition that repurchases, our portion opportunities returning and support we utilize excess seek will we the product stockholders. And our objectives. these expect development share a approach finally,

an EBITDA half, to our revised our of XXXX, first expectation generated second XXX.X we above guidance. modest million of half for in growth the for annual With on outlook. the Moving the have adjusted

cash is applies adjusted XXX are yield between strong revised free currently Our million to XXX we for flow and million flow and of cash trading flow XXX This of between at expectation XXX level cash midpoint XX%. a remains of free approximately million million. EBITDA to of the free

items related we have for the the discrete income certain the pretax provision to XX% of to to current on Due expectation for to increased a benefit taxes XX% reduced income. our year, basis GAAP of

of have EPS of net per future result share our to count adjusted $X.XX now on and XX we to all and XXX of not based $X.XX for activity. at expect and This range of between a the income estimate buyback adjusted potential outstanding raised the net EPS. does the reductions As changes, shares million second and due quarter share diluted from annual reflect end outlook any We million these for additional share. a income the is benefit

our now prepared the our over questions. And will call turn I to with conclude for operator that, remarks

Operator

with Instructions] question Jefferies. And our Katz David [Operator the comes line first you. Thank from of

David Katz

for me Hi. morning Morning, you. everyone. is It for and still

we If sense GXE. ago. I relatively some going to talked And just clear just know premium to hit ready where the a those going are want see sort market be new we us I this, are. you we about of get we could have XX-days side, to to What on be as are say, the that into product participation give

from the Help market hit point meets how sell unit on. day to to your roll conceivably flow could understand of us ready the that expectations. wind and sort per flow and it start if

Randy Taylor

couple are things. you a think I So

are So be GXE. two actually out going we cabinets before to that premium have

fourth end of some And expect quarter, see placed early to the quarter. this so those of at we

content one think I in the - QX in And cabinets roadmap of support then of QX in more we one coming two have in to out the And have XXXX. premium look, XXXX those. early and we

my be, churn. So, the I first talked we about would think

we lost From There is XX in only churn. viewpoint, the units really quarter. my more

our the opening comments, of X% in back the may we of than year. less said where or his Mark was go we at around As base think, as install end

which So to is to hold it are install me, doing. we important our I base, think

about. you will told the what Our our have be That expectation. XX, is win And where what above per we talked day we we that appears that about, which is be full-year. for still or is to

that there products third year. these think is be out just in won’t that then new should get the of and come Again, out come is products So, other late units placed positive there the that quarter. quarter, fourth I two next

XXXX I and when my So think base back of to to expectation, a day win install and will up creep when start we go expectation growth. we our see is end clearly towards XXXX to, the the turnaround see per is

the have So we I a good new got are waiting should towards new And of end sign are work for year. the think the and fact think cabinets people content we great into and new the year coming of in a show amount is out. holding next again that hard and growth I

David Katz

is? is for topic fair there like been, commentary And capital I conceivably X.X look that that around that at place level sit this leverage, turns, like on quickly ideal any to leading your follow allocation just could potentially whether level, but ideal two know of I amount or you is sort you or what did some in question you be, is between for thoughts and can leverage not I or on is any if somewhere and as do have feel way, a should a the target we of feel you lower be you reason? the share And higher of you do

Randy Taylor

that higher? don’t Could Yes, want I bothers. and times. really like don’t two and much more like times. go little to I a think above I to three two go think the than maybe I X we quarters, between X.X but we X.X the

so continue And that I think shoot to will for. we that what is

we think a I so a from in good And are leverage David. position standpoint,

really up. something So in opportunistically any don’t unless comes change that there I see is

Operator

Barry Our next question of with from line Securities. Jonas the comes Truist

Barry Jonas

that across really you sounded despite share? are better flattish And trends us market would gaining same-store solid helpful. DGR relative business help market. out be access you understand Cash just Can growth the maybe color any outperformance

Randy Taylor

and the Darren more continue correct then Barry, than I can me. we things. access? will bit say a to help that would do our little couple win I probably does than lose, overall add in cash a we We But growth

to would we I floor. say, low mid seeing the is to what on in a that, been same-store have growth cash single-digit

is, more probably were we I our GGR, couple think So I of with why a think but is things. from that in-line standpoint, performing better

more to cash ability win And us than our it do lose. with all, more ability, more and networking, to to It cash we how to second our we of better just just the better our One, we is just I transactions access. products, believe just think we put allows process have floor.

market. but I we than in-line, it perform expect So it the to in is better think

Darren Simmons

That is perfect, is Randy. good. That

Barry Jonas

relative at any us what How to hoping EBITDA was more adding think Thanks. help if progressing? little just is get Video integration on then about change. And thinking last least to there contribution And guidance, quarter, also, is were it Great. to a King. color the is you

Randy Taylor

would really I integration that acquisition months Sure. visited, going well. the Look, say ago. is couple actually a I

is well I it are group. really think run. a tight They

separate team, someone gentleman named was Richards, big of have the that. this Tim actual a who We oversees He acquisition part keen itself. from

the the or what integration far, and seeing expected growth projected at we are had acquisition. gone well than So we very more actually has

had I’m we in provide? sure what on how not much that we anything add to want you do Mark, the guidance?

Mark Labay

we annualized haven’t so we out could we be basis think contribution on think talked we seven us. for think framed acquisition, guidance, the million Randy. kind I or explicit of about EBITDA a really have we it But I as certainly, any provided that

that think see set tremendous and get core is on. our customer it really expand nice layered some as and opportunities and products other existing to integrated product take future in again, periods some in it And growth our we there we get of

Operator

Our of with next Stantial question comes the Jeff line from Stifel.

Jeff Stantial

you slower for previously things, Is sales would softness you color Dean, Vue Steppers? additional Is it out are sort one which guys. the to had frame Randy, seeing the some morning you incremental last side help you Good to relative the you some driving see expectations just slot it the whoever specifically be maybe Dynasty are spoke. of of help. the taking wants of modeled? takeaway a this, of in broadly calling the we take ramp on what Thanks. off any Are half? shift here than seeing in competition our on just add questions. Just Thanks could for and competition back us main appears more to context to this you speaking? to Starting

Randy Taylor

pretty think then One, the year, you things. two it half we back amount in back that. I Steppers. of couple that the on a much. year And of Jeff. the as fair I strong a not looked and really half say We nailed at things, had have Probably a Sure, right? would of of XXXX, included

went And that and decline into, QX, still expected QX, had of look. nice cabinet saw share that on very happened there QX. we had as mechanical that sales, pressure our and some sales. We we Stepper in a be a we would in always

We really more than divvying are in they past. that think have the perators up

the than I operators where sharing. have past a are I they think think share our got product we fair that, more now probably in

of now the stepper as from So that my be is kind is had little I a thought quite so more, And and that the but product of it. video bit it not been we ramp less, ramping. expect impact, we would is up, we wrapping half. think is offsetting QX offset impact standpoint that, the steppers see back amount real sale that in had the to we is a expected going of better And

have sale a end year. at for this We the coming know new we of

I would in there growth think doing And lot still product for the very is well. mechanical look, opportunity is our say, a I still us. of So

I in rank mean, high both IRS and we denom. denom in high low

happy product, amount on impact So, of revised the will it projections we we the saw on what the QX. in but our for I of are year with the be needed say to back based half really - is the

Jeff Stantial

it I this by are bit shifting will all, the in And and their some little little suppliers? a things at of market how strategy mean categories make incremental, operator your to - given then know let purchasing purchasing theme, R&D sense how but and than on view you makes that of sticking or in seeing your it what thinking more they the to about call out strategically these we change are this guess spreading between is invest others a more start behavior bit I what are different does evolve, me Does they different continues that to sense. as if changes

Randy Taylor

we no, well, Yes, And a is game bit, but team Jeff. spot know been, clearly it the Dean where you mean, that where our is is can that I and think, resources on, our and add are to. has we are I in video Greenfield little putting

great We the have side. stepper product a share and in a great

do feel we like content cabinets got and to back new we that got up. we And have have

focused R&D that progress the of So and where our is video most make on the we because our can we think is growth.

to know there, you anything have don’t if Dean? add I in else

Dean Ehrlich

Nope, covered you it.

Operator

Chad Macquarie. from is Beynon question next Our with

Chad Beynon

is competitors. just side, of your a in movement, level On question. some the the last quarter been from and guess some FinTech months six high I There

view as in three space. the the partnerships in further big are industry business a making on anything of can how push to the two what you acceptance hold. how kind Has into FinTech of in years or takes your they next regarding in changed be Just this terms outlook of

Randy Taylor

Look, I say say can But of understand will that little competitive. a a had deal go is still being have competitor aggressive. I I is be couple know I we may every changes more there where think would I it. we a it into,

bigger the is are on calls they provider and with provider. listen talk I Darren I or and whether a bit. It a Darren, Because a smaller quite competitive,

ability competitive, with go think, view, better to our we it more our of provide always will be but in products I and our So, products. and suite

will outlook than we cashless great think on we wallet, as a win to that doesn’t it FinTech. think So, that lose earlier, to is said really think continue generally We it grow. it more and change will continue We business. I grow. our We

our we adding that and to while to it Bingo. think with to We payments loyalty payments just will grow overall the continue adding byproduct, hopefully think and that and omnichannel and

of FinTech can I places think are grow. other a there number that

And so bullishness will our, say, of really I it FinTech hasn’t side on business. the changed the

Darren Simmons

a I overall we mobile and think just on our little Chad, far includes a what again, strategies. strategy, overall have of been of what add I sort which lot is, as working digital cashless as just would bit

of We that of value continue to robust we create diverse the and call a set as we tremendous kind product the there. amount have, in in mentioned

platform a transactions, because offer really because in app about is just it a trick that the across it pony one integrated could so, not our And right, it the view ecosystem gives differentiated us, customers becomes an do my that is to how very to important. is, reality

got our significant is provide And, that what for we we believe a to value content create payments say loyalty across, and have which example, that into tremendous that customers. we video what I bring would things other will again is game, to we believe something our more opportunities and obviously platform, like

our with so, long-term year. terms with that the what of with we again, in products, of the one customers take acquisitions last FinTechs, Venutized more made the with value greater providing Because, we and again, the are

from sports because the includes that, we operators are and beverage, enterprise, across create is, venues, about is thinking gaming hotel, just which relationships. food really stepping Again, of sports, trying the relationships, teams seeing we which floor value relationships, what just retail, sports league are to not their outside

for executing been that now different And that so we long-term our years. is have strategy

really as to that, traction gain so, we we forward. move think I And start

for been investing gives what executing a different layup have time, think goal we long-term. got been significantly is for it a we that been our on. we Randy and so And said, as us And product is have and long new the I that have that

Chad Beynon

a terms I that, iGaming. way the Appreciate launching know market currently business, Thanks. world the growth. about about in biggest UK, then can bigger sequential nice iGaming in guys have you into talk on is you there Anything some which And talked the you what in Darren. financials for we how partner mean and a can this games market would in kind in to XXXX Thanks. are signings market? have titles it should working about and think bigger And in of the that or or of when beyond? presence

Randy Taylor

I But the one are that add, our in talked the We I we integrating do now. about the U.S. how here UK UK think than I in think and the in license we thing can have have it. is a different little doing

So us plan but is we year. get I on think, late UK, plan, think, and digital of to in probably we allows business. into once are that that outside the really year I expand grow this then But it that next

right excited in getting target, the just are UK. still we on we pleased very the And I’m now on digital of with U.S., would getting are very say about But outside we I where and the plan, side. are on

Operator

with question ROTH Partners. next of from comes Our Engel the Capital line Edward

Edward Engel

Hi. for my taking you Thank question.

You in of maybe And the push expected would kind in second have half then of talked next back releases about year well. bit. first half to a of just Were the those any originally little this of year? some they happen as product

Randy Taylor

case. the a really into we cabinets We are and this that year. think, I not is - the couple actually premium of forward the talking the pulled third quarter about products of

to but up. the everything base. install of games GXE, our for cabinets was new have to given kind set team we at I having pressure, the And pulled anticipated think debut those we think I

the quarter next But cabinets really, I and of the planned think bigger for in year next second two first were year. quarter

put Our at the can year. of to prior the we goal summer is what GXE show always field to in next

and have to also you we that, on. are what that content is working behind So, the have

Edward Engel

more guess kind move through And releases? cadence we air the product you even of of little much going next of into then that, I product beyond kind quarter are and kind this have a of we in picture, of pocket bigger kind second year to I once kind then leases of consistent guess, when get

Randy Taylor

there. have our That more would I not much intention, one will hardware would much mean, be where would say a at cadence, But most definitely. intention, we stop are did time. is consistent have our I I we at. look, That that is so

Operator

question Sutton from next the with Hallam. comes line of Craig George Our

George Sutton

mobile Darren, statistics those seeing the but to are for question wallet I where XX% never a XX% aggressively a I that A are think laid getting customers, if the you I with wallet. why not have a just spend admittedly run wouldn’t adding I’m be you you lift casino, out with mobile sure

walk you offering. So you just you can as hearing thought process are back this, are pitching the that through

Darren Simmons

trends that are compelling that have fact, has the the in Those I the flows, is think and we the the we floor have of data I the to some talked have gone Look, that to we seeing now. that very what and wallet. cash converted as more of highest think properties about remarks we said we are is about XX% in prepared the overall to cash mature we

And our would say customers. having with we are conversations the are great so, I that

got a have We terrific pipeline.

a year. operators add of here number We are expecting properties to through this the end of and

of a we for very thinking what those their said and strategically any is retrenching with it, difficulty business It again about change our getting important, sort of XXXX know XXXX conversations. real just just So, dynamics in they making are is and now coming cadence and there do I sort need and always to all of out like sort if have is of the they right. don’t after of investments which

part thing. a needs overall not It digital strategy. be an one is to just This trick of

the I conversations think are So, positive.

expect We continue ramp. to have got a think lot of to projects I in now, flight and right we

success. over wasn’t It dissimilar overnight it the to not Tito came an years. right. Again, ramped into And market, up just

even was We how recall, expect terrific. because - the as it helping in was you performance. I same mean, exact terms of the thing data

operators same thing adopting are this which what are to think on. it they that their the overall rate at I think all I compelling, as strategy, the makes far so, And working is again, want of sort to and as they go

George Sutton

question Great for point. A Mark. quick

use weakness the today, I’m are to interest effectively a to that percentage portion elevate I flow? to cash mean, You potentially extent curious, mentioned you or weakness free from a of buyback of seeing free you are would so. stock? your reactive would flow cash that we in perspective, the to just relative do your plans the

Mark Labay

pretty We that in the tuck-ins, accelerate strategy at of on new investments, the acquisitions, our best into growth, first in have looking been get capital and terms and off allocation markets. alternatives building investing always foremost maybe strategic within, to us clear

was piece price a still And our that is are in are where great we of stock shareholders. third I kind repurchase capital and very share believe investment ourselves. to we compelling or a returning

we of obviously, bit own And is it look maybe our if will you when a opportunistic buys to price would more. buying bit us be little lower, expect little a stock it And the less. rises, be So stock. for

Randy Taylor

I would say, just is yes. the George. answer

Operator

next with Davis And John of you. Thank Raymond our from question comes James. the line

John Davis

morning, for I Randy base guys. a and second. touch Good install just on the to Dean, want

flattish. seems I And the you to plan there of XQ. it think back get now if back growth we kind go last is that hopes was to more quarter, that in

that kind of Just of there of change the what drove assuming curious it kind messaging, and change have I kind right? that that in what

Randy Taylor

John. right. It is semantics, all

still end I because we the of will example. we I I would think an and give don’t quarter, fourth towards didn’t just, I know, I say, know. you tried to say,

doing base than and in. because We customer churn? they your We didn’t the bit Those take a of come install seen out little are What they may then we a back is have John. come a had anticipated, some units have churn renovation. that more offline

impact that So one it. to is

really will to bit seasonality trying have to out tide a coming there turn in the two Second of that quarter of they as be that little Fourth struggle as quarter. and think all, I are a wise, well. fourth is we products a new realistic we of

that end So, not I’m it excuse mean, I to move and in would towards that XXXX, be trying this start in just here. really thought year, in QX look, me, QX be XXXX. would positively we of yes, always I to QX. say, then cute the

But, hate am. John. think Look, I to with pull so, back. I’m XX don’t pleased I unit I say

our base, there, it up is for If can install most that continue year, and what can really new we John. hold concerned we if I’m products because next think us get then the hold about, I sets it I well to out think

a I’m products do. see hopeful major XXXX. are doing type this more end it but, year maybe - towards them the we to of a bit So probably look, not indication will we want it is if is into in change, still new little these some pushing to what see just of

John Davis

That Mark or FinTech. like No. then, either looks and And the helpful. Okay. Darren, is the yield

revenue So at, look if cash process. volume just the I your access over

quarter. XX was it but a stable the in basis out for over think, time pretty while been a that to about points four is anything that it half the quarter. is this up back call I sustainable? know, basis Like and Is points cashless in You it is there? first

Just to out curious, anything call there?

Darren Simmons

look, I think of access to based see a signature pickup financial I mean, little the transactions. bit we are continuing in a

a a much product per you if think or ATMs basis, as or for probably transaction card like on basis. So of margin like lower credit opposed to your usage

that for outpatient shift But that, happening or to I the picks a wouldn’t spend those material it shift, than I So say other of up credit anything wouldn’t money. more to you kind say kind line. flow there levels the is the would the is but we through material little call get seeing I are bottom bit faster of shift. pre pandemic of returning card out

Operator

comments. end closing We the back have to Mr. question and reached of to floor like I answer session and Randy for turn the our over would Taylor

Randy Taylor

We joining providing thank as you. quarter look as update today. results. an we October third at Everi for in everybody you your forward well in GXE us to Thank like to appreciate in quarter third our Just and our for interest

Operator

concludes teleconference. This you. today’s Thank

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

Everi (EVRI) 9 Aug 232023 Q2 Earnings call transcript