EVRI - Earnings call transcript Q1 2024

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Operator

Good morning, and thank you for standing by. Welcome to the Everi Holdings 2024 First Quarter and Year-End Earnings Conference Call. [Operator Instructions].

As a reminder, this call is being recorded.

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

Jennifer Hills

operator. Thank you,

actual of begin release uncertainties disclaimer, with forward-looking our to XXXX. section corporate are me to, in risks, call. could statements. posted reminder only reliance and that in those contained materially discussed everi.com. those update of on and but a obligation intend covers our today's are of harbor today's website on cause May that assume not which in filings, Because uncertainties to made Investors at contains risks risks as today, any safe SEC to call differ which involve from today and you the are Let These place and forward-looking our that the statements, earnings potential results forward-looking are include, and statements no X, do limited cautioned We not our webcast undue not which

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

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

Randy. the will I call turn Now to over

Randy Taylor

morning, and joining you Thank us today. you, for Jennifer. all Good thank

businesses, possible, February plan and XX this Digital regarding First, few year. like merge details IGT's with Gaming provide a to Play was our Global announced which Everi to where more I would on

no progress specific or on this we our matters update at to proposed have time. antitrust regulatory merger, continue we make While regarding

the merger we the As messaged XXXX XXXX. in have late in still anticipate or closing early past, we

excited extremely together to bring best of are We opportunity of about our both the businesses. the

experienced growth accelerate growth our and new tremendous combining recognize past complementary the to revenue more our the we success jurisdictions. has Everi ability by rapidly While products over few in enter years,

Over significantly the increase years, past studios research to the we and of and our increased and several game in investment content. number development diversify expanded

more We will have these content our in successful also been a Combining for life opportunities cycle. product game us resources over lines expanding new provide by businesses our channels. product success greater give leveraging and into

established jurisdictions enable global stable combination with we quickly both for long-term business. opportunities land-based Additionally, enter believe IGT's our and will distribution more new to content provide global We risks. believe will less combined growth network the segment with in more this Games every digital

do today, side, On to interface casino to reduce Fintech we we to Fintech business. as able able IGT's system systems products that the will IGT customers. be multiple work operators Upon continue they closing, friction management And combine will will their closely with Fintech our more services and to gaming providers. for products with and systems provide from casino IGT's be with

our their patrons. providers work also for the transaction by system of to We seamless all casino positive to solutions cashless gaming a improve continue expansion will providing to with customers

to offer Additionally, complete access, a from combined, of financial will reg tech we we to systems, and games suite believe products loyalty. be able

productivity, synergies. the efficiencies up processes estimated planned business, of which net streamlining the and that capital synergies, combined They Games ability product in are the and ownership million the future. for estate are to in believe estimated have cash structure believe merger through not is to real by leveraging at we to $XX existing generate pro modest on The the X.Xx sets flow. in procurement the based lines closing an savings X.X equity for be rationalizing well deliver between We strong free leverage provides assembly with primarily where The company of shared driven $XX cash previous million forma can failed optimization. mergers gained supplier this

and revenue Additionally, from leveraging global come will opportunities growth combined networks product offering. a

As the dividend of as prior the a paid close merger an opportunity special of date be every part of the agreement, record to shareholders for also there's a transaction. to to

of this flow it for it and cash time dividend in the the generated adjustments transaction incur. the impacted point and dividend any, special essentially final this merger-related amount is agreement. the be at This process. we signing expenses will of to our less the transaction-related determine from close the other free the if the amount the expenses of takes by Therefore, to difficult is dividend, The

business to Turning the performance first the quarter. in

shoots has transition content game the new XXXX, appear. months of last While the see our slower XX games an have to they're starting new cabinet to approved we been additional green been approved challenging and than family In had the more year-to-date. and X expected, and XX

of early titles be new industry in surveys. core the recognized are starting of content, in In this the are category. denomination Sol in ranked XX top the stages the of in on both the #X several installing Dynasty low and Eilers to in this top the Pop rail video category, the cabinet versions for-sale cabinets Dynamite April portrait reached games but indexing We the indexing X report, new

have cabinet last be XXXX The a launch performed signature introduced lower-profile is Classic by yet limited new Player of spring Dynasty the that cabinet introduction with performance launch. was by to continue content at and has to results. themes several captured survey expected hampered was initially in this of recent Eilers well, Our game that

our XX are titles end all of base to expect currently by and we of There been installed have QX. that into introduced approved, these titles have the

premium Dynasty performance newest our the with Hot to theme, Sol The mask, improvements units. approved. these impact has was to in just sale quarter titles the Stuff expect the launched and should view smoking positively late We see and on lease link new been for both first which

expect to theme We this this installation of begin new month.

by our for to premium the newest rolled The scheduled Vault now. cabinet feeding Hot is of There of Zoltar our brand, released with year-end. Stuff families new more frenzy proprietary Master on end proven at cabinet are being based Dynamic theme quarter received this planned X out and be for are and Inferno cash the launched was third Dynasty year. of families, Mysteries X titles The later this Additionally, also

This the Finally, category. Class the games Wheel WAP at last Stuff of launched cabinet Classic the great and launched Hot III was in Jackpot year's Player with quarter end success. premium with Reserve third Casper

We plan of fully X these studio, new by deployed we things content first the launch Lightning quarter, new our to the and be and This cabinets Australian content in second and drive year. MightyKing. to developed Thunder investments half improvements will the the believe are in first

remain are anticipated, than in strategy. we improvements longer overall these Although taking confident our

steady of access grower services delivered in new to in This XXXX. In to in we have cash our Meanwhile, a that unit continues Fintech necessary been operations a core be more and units segments, sold process to business the the has with a first the any opportunity to the our expect transactions process previous Illinois are multiyear our quarter have customers' dollars quarter. terms more during of as product investment of half and VLTs. us, we enter final stages we again we than approval opens second to XX,XXX

exited of Consistent quarter, a And been improvement the with mid-single-digit by April we February. access impacted bad January financial in we were over to growth. but has the the operator stronger, many saw the we of as weather this our services negatively to reports, in to returned and expect low trend little some remainder continue year. we same-store

and challenges the strong to second to the growth opportunities expect we growth building blocks have believe for workplaces workplace on top patrons. experiences I present. in year first improvement of show is culture here innovation once Everi and the want I experienced USA employees at top in the my in again based are the remain half return focused remarks XXXX. for the for excited acknowledging primarily quarter, and to making our their ahead initiatives recognized our about of has for built want a team thank Everi. a It dedication and third needs our we on row. all the While by of I customers some a I their the by of to end the our

to Now let call the Mark. me turn over

Mark Labay

Randy. Thanks,

the me begin adding the quarter Let by our more and on year. outlook color first our of remainder a for little

in support our the new the declines to of as content quarter, and year-over-year expected, in quarterly gaming and to We unit and flat for cabinets both introducing new Revenue both base experienced we quarter. are we declined these gaming and the headwinds equipment and our experience sales. as operations cabinets. Games business During first transitioning was family to our fourth relatively installed systems continued

declined from of installed locations was base internal the While return our would by in units decline a use half of replace lower-performing a recovery of capital have where capital not decisions strategic our to to result not this met hurdles. year-end, XXX cabinets approximately

our third performing this, decline in have Dynasty cabinets The of To The late which Classic rolling expectations. themes to we and the Dynamic, remainder with quarter, deep is new rolled churn X now we out. the a our of attributable pipeline Player out older cabinets. in additional are to address Reserve the

$XX.XX of cabinets. total Sol these units in gain first cabinets cabinet March Near expect the to was As over launched and XXX early Dynasty on to we existing the recurring $X.X casino revenue The our King being the In new our and was in replace XX we quarter, offset new segment out term, as expect a win just placed decline per operations in and new stages premium combined of daily But Sync, installed installed Games cabinets floors. installations XX, mostly base. as slightly Video Daily traction, locations. newest video will per win we revenues cabinet first of have quarter is content. improve the the and placements. from half unit million revenues incremental increased but add unit from quarter the digital of about from from we fourth down roll in of

First XX,XXX. the initial unit average as been X,XXX the our the strong Dynasty expectations units system essentially at we sold of early quarter flat we an sales available, fourth quarter the gaming of equipment content as with as not view for has price Gaming were were limited With anticipated. performance selling sales and quarter. below

being for introduced customers the the launch first now momentum of We acceptance through in quarter, our we with with the stages the expect and are out, the still early cabin of to rolled building we in However, of performance XXX units. and is have end improve. the Sol quarter Dynasty additional teams the rollout. It's fourth sold

start strong top-performing a mentioned, As the is Pop report and Dynasty Sol Dynamite is to as Randy the new Games a Eilers recognized on game. in off April

to declined other on and Moving year million services software access growth Revenue we billion in was services record first sales. the hardware by Fintech. a $XX.X as transactions a in revenue funding offset and to financial Financial X% prior of processed as grew declines record customers' from X.X% XX delivered quarter revenues and access year-over-year operations.

we did second what some into with consistent quarter. been helped access weakness due trends the weather in the financial While to far in has January as thus the quarter disclosing, is operators we see and exited have improved which steady issues,

from compliance Software sales offset loyalty. and by credit and revenue maintenance revenue, kiosk increased a from grew other partially central and was decline other new in but revenues software revenue

timing hardware quarter The sale declined, in decline experience also redemption certain a loyalty customers' sales revenue first to issue of to jurisdictions was of kiosk foreign Loyalty to reflecting a readiness related installations in kiosks the We related ticket in decline declines some did new XXXX. inflation. in software. loyalty accept our our

the loyalty we generally sales new contract to initial have are financial unit of larger lumpy. renewals. discussed typically access to be sales They timing As previously, be and tend contracts or can tied

the lost they recognition the not just quarters. the equipment, due to be readiness are While software operator's of deferred timing revenue for delayed loyalty and can later generally of to acceptance

to points financial margin access revenue For from to operations and by basis sales. and lower-margin consolidated services mix gross quarter, to higher-margin hardware gaming approximately primarily due revenue the gaming XX.X% equipment expanded XX shift

million EBITDA for adjusted EBITDA, trends decline basis. year to fees, from global and digital professional to Moving but $XX.X operating million to the higher and reported was EBITDA onetime revenues lower while year expenses. other first excluded $XX.X the for both costs decline in million result reflective higher These Net for EBITDA $XX.X IGT's quarter operating a expense the and $XX.X R&D from primarily expenses prior Fintech planned retention first The GAAP related and $XX.X operating was adjusted prior interest incurred in and in million, in with businesses. awards to in costs quarter games on expenses. the was year. We from play million have The adjusted from quarter a of been quarter to in prior from decline in expense million is from increase gaming $XX.X the merger $XX.X $XX.X an lower employee our in due the to skew million the higher revenues adjusted $XX expenses. the of million million

is of X.X%. rate As a our cash a a ATM million quarter, fixed our of end X% of average the in the on bulk approximately of weighted interest was arrangements. included reminder, rate expense approximately variable term $XXX at interest. that has cash and fee million borrowing we Also outstanding notes have rate loan the $XXX usage unsecured At of

decline cash in million compared grow flow with the improve primarily ended cash trailing installed million with the compared spending ago. believe million was a of X.Xx first base for leverage $X.X Free the quarter. in unit target X.X capital net expect to over capital the which $XX expenditures of to installed refresh low $XX $X.X important per during Xx was return the and an decline quarter in for to in end the expenditures The paid the result this our quarter prior $XX to million Our base, our million increase bulk expense at win of and daily range. at investment and to increased year We remains EBITDA. million we is the adjusted total was the adjusted EBITDA We year $XX time. cash

on Moving outlook. to our

expected unit growth sales half that Our expectations that assuming current the improve. casino of per back the unit and return win cabinets to as patients, year, content new are and daily with we in will our revenue resonate rebounds,

and return to the remainder expect the software of revenue, volumes, revenues We return growth access year, to hardware a increasing improved to Fintech by driven growth our sales. other over financial in and

Turning expenses. to

proposed debt well to term this expect investment on year. due to expense in We will expenses at people higher first products $X and the year. With any the merger. the significant $XXX X%, incurred repaid related loan quarter, in as costs our operating With we as do in million of repayments remainder net rates due interest have million not of debt our to our for happens the interest the primarily what fixed depend

range effective full our XX% be XX% the to rate between our million. We expect taxes tax in $XX the million and cash and to be $XX year year for to

to Adjusted invest the expenditures content provide segment are headwinds replacing traction be prior gaming. as reflecting but see flow international and are gain and EBITDA begin and expect VLT near-term but in is our the to we the down million the Free we of $XXX.X remain the from primarily expected Games half base. that in with casino like decline prior product building year installed to up improvement floors primarily cabinets will year, as impacting Capital in to from out second the and and cabinets cash customers, to expected expected new XXXX categories year is we to new slightly from in stronger. older be flat hit

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

Operator

Instructions]. [Operator

line Our of comes Stantial first Jeffrey the Stifel. question from with

Unknown Analyst

Ed Stantial. This Jeff on Young is for

Could both think driving So excluding about looks as R&D how the some of a up meaningfully on percentage on EBITDA operating backs that? should heading into nominally of adjusted the and color and the right And OpEx fairly what's give Fintech us starting levels we remainder off It like revenues. XXXX? you add business. were quarter-on-quarter, expenses,

Mark Labay

where we're from that I as there's we're and levels and at for of is looking at level expenses Look, expense Typically, our of but operating other levels a feel impact the how R&D, think forward. terms We R&D in category, in kind tight and payroll you're we're market largest an at we've are. -- very investment pretty we current still QX expense that are talked always from level we today. operating OpEx good like look of headcount what probably headcount labor annual right kind our impacts a reviews, though, labor a going

thinking I'd So of of be of lines. modeling, in a those kind terms consistent lot

I think the percentage in having obviously, in of terms is some impacting the a of revenues, little percentage revenues of of a bit metrics. decline

long-term to we're the in about. now we of to kind the will for close that the year, we normalized revenue get believe properly business and as back second right that talk those growth investing the where of particularly think begins kind are. half we we gap of rebound, again, And of that But levels

Randy Taylor

Yes. I would add.

we're side. think we it still It our said, for a products I that Again, believe you in back customers to grow as business. that then provides better business come it's have -- continues And Mark the will back products. invest help Fintech the comfortable very us and to on we for comes as us line. revenue improved makes up,

Unknown Analyst

it looks here. spot of parts like shipments were a number And year-on-year. recognizing moving down Great. XX% there's I'm

long-term of views Just from curious your to customers be be reps your strategy? confusion the the sales you may extent on to think impacting seeing get the here any would announcement Are sales. merger what Any great. deal on thoughts and

Mark Labay

hard What -- of themes for our with came there's the said expect what late a that look, we quarter I to do. because or right not the just impact new expect remarks, difficult some should are think, of now It's really very out cabinet we hitting we the next it's again new -- in right? it the us grow whether sequentially we the we're one, report. say, we on in help real That's mechanical to say. quarter. Hard just doing deal, a that quantify on think to that brought hopefully would Eilers Yes. should that. we as view, sole to again our well products But we in

to hard just early being that that now it's the there, right not some So deal. by it's to going point there's the you just stage in process not I tell just can't say. thought impacted I'm out but

Operator

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

Barry Jonas

cabinet confidence the you new that wondered on dive which in Maybe I is year, give the what in just up Can maybe financials pretty color you the think will second half of more the you show more. gives soon. momentum

Mark Labay

It's Barry. specifically, in new but investing the there. the out We replaced. we're games we're say Sure, hard know that games we're to in games to getting capital, off getting being lift that are so comparison of

So some in there to the installed first is be to it's base, older and the going units. churn, replace

to going that's a We higher And we're modeling. how it really move in right it that's what per maybe than So day pretty to direction. question straightforward. win think go The the hold? is long is

would the we're interest I the the -- that in say So have Eilers the That's in well us. reports, hit X for new something new seeing themes right? with soul

working point that shoots -- much. would there's It's installed the have difficult Barry, in fact we green of so lift. new we're look, here, we're are how to a So a the should second say that just games, big the to the seeing that far, we're year. a It's placing base. And we But as themes getting one well. improve half

but still takes that going back comfortable we're a of to that so in to the shift very the time. It's we're improve bigger little turn, half And year. a

Barry Jonas

to and companies there businesses early Great. follow-up, closes. know work But the look, And maybe for a work between to we is or deal the independently the together now then the close? just you until deal as ways X any integration need run Great.

Mark Labay

topic look, would I kind we're cover. a to really that's not Barry, Yes, of say, going

limited are can very on You you what do.

to not an So stay give going that I until would from one because we to say said, update we're I'm away there. as going

I at give you. that, Unfortunately, I'll can not Barry. much would I So say it leave

Operator

Jefferies. next our Katz with comes And of question line the David from

David Katz

opportunities sort curious pending as the are feedback or faster sort transaction, result the closing may of be of on I'm just out you slower field that towards getting in a of going progress as kind terms there. of in of you the just what deal

Mark Labay

mean on say got your little I'm with to struggling the positive customers is answer bit would deal. the I how feedback from question. I that we've a

until doing to between So can anything -- I and can antitrust again, a that there's is through you I processes in about at or really not the not talked of remarked couple we've in that regulatory. but do say this a get game you interim, whether we're as Barry, the stage there lot that the

a right? in were customers I think, did cab or the see the We we And customer have we it goes. bring still a they when to want transaction, again, -- evaluation have favorable of our products. to how They

And until point road, that are this you and information, clear process. as customers to supported that says, they've I of guess, not be been David, think as anything together. further I independent down that. expect along continue they really that to of been will else very think and lines we But and operating what we're the that's want other there's both so just have I We've -- I our with come said, to can -- to, really know, product supportive understanding to kind units we are in we we're where

David Katz

may Understood. technology exciting to clearly of of to part which way might some to coming the look all of that Notwithstanding And just Randy, have R&D together, X opportunities your too be this be incremental also end, you melding at early the together I get inside Or started about stage? presume prepared the to what out? remarks, that together, any that cost at is those is some this. those there meld you time enterprises an talked

Randy Taylor

way it's early. David, too just

good success what's is right? company is, expect R&D, to on the going is combined. our don't I drive R&D the change think to as talked before, remarks we and thing this I of that this company

how in right talk just early where in about again, and it's of nature anything to be or going now. area, not forward. back in But definitely neighborhood that of it's my too to to estimation that the going we're David, So at going look that specifically pulling

Operator

question of line Our the from with comes Macquarie. next Chad Beynon

Chad Beynon

iGaming or then know been the side you've in expanding significantly area also your that's focus about I an content U.K., into to Europe of markets. digital quite here ask about the U.S. and continues to and for The of talked things. And I wanted market grow American Latin here. the

So in us can you an how kind of item update that that is then just progressing terms opportunities 'XX. line of for give and business,

Mark Labay

I'll opportunities take now expand think that to quarters. Yes, new actually we and the really have markets great is we what growing mentioned, continues are as one. that something that North But the U.S. Still of taken here we're market our digital Look, of about do into Europe looking U.K. doing has very some And get coming I live gaming Chad, growth, with developed is what and we you to to like America really business, ability and really in our the piece. created also partners channels continue U.K. again, what proven appreciate be we're and U.K. to ability for in there. new the into and an international part stages in early we we've about. a important to excited content business take expand that avenue in

probably XX%, about a growth. just basis of there. growth $X.X We of on think, XX% terms I year-over-year opportunity, terms growth, of performance revenue, in a over million the quarter little in probably a so great ended year-over-year nice So

to grow path expectations. nicely with along continue progressing again, and it's, So our

Chad Beynon

kind out lumpy there you hardware of business? the are And market. this light on And a the coming seasonality you you mentioned the that have harder kind know then been of of rest in side, year just improvements in that I the on with side? a us in for the general that help little Fintech and a to always quarter, kind Can the that's hardware bit big predict. Is and few products outlook for of

Mark Labay

your point, it say. to would I is Chad, lumpy,

have We contracts. signed

placed product we believe get this have will year. do that We

for will are the ramp confident to -- they're very that is of time. rest throughout they only the that, in that at The customers going and ready So we're the take point when unknown year. it

these got something out. signed we So tied again, generally kind of contracts, had cash But access a pushed and are pushed which to quarter are contract. this

it's them just when install and they're for to And when want it. so they ready

of anticipated, very prior we're little hardware still had throughout year. comfortable obviously, should lower in a rest than just that compared we to bit year. But the ramp So the QX,

Operator

comes line next John Raymond the from question Davis Our of with James.

Unknown Analyst

This is to JD. to on areas. second the guys Madison to going this bleed over could some the are I cabinets into where there for Is be some wanted something around touch comments areas to looking an replace process is be on XQ? at you lower-performing just that's not isolated in decision XQ just Or this where other ongoing in the half?

Mark Labay

on revenue fees reasonable choices and a it return not making of going time, always to of for fees that placement out in sure equipment, team operations get a doesn't focused smart make make make either locations to just with we hit to sure rate make we're generating is for revenue. get money or your And placement us looking if in spend I'll money. hurdle sense. money take we X-year sure to sense, terms it we think swapping increased If driving to period to back they want over never any and the X-, that, or make barely makes that are Madison. low-volume that laser we're gaming I addition new in Look, have respect

that. we're So evaluating always

there of some quarter. the larger first I we concentrations Again, think use talked decline. were in about our of

quarters, those expect making yield kind not replace on I saw capital But our them where to. instances And decisions the So not over that of over installed couple to to choices are more maybe the the maximize those base. we opportunity a that, are see of you'll you like XXX level probably the we had here. coming

Randy Taylor

Yes, point out Madison, would were really I that customers. related X those to kind of

have lower other So but it. go a is from were not And This it then performing I somehow some a just units of a yield, look those. there installed decided it. far there after that to throughout tied to were and want we that couple issues sense you don't to base, at customers made

want it look it's primarily our like but throughout to base, don't installed I X So was customers. it just

Unknown Analyst

side. matter, of it. we the appreciate But Got color year hardware then gave or just progressing in quick through here the the on a the that it Okay. a you're as some about the you thinking of or think kind whether on perspective. about components. for what the And yield expecting Fintech to I terms second cash and of volumes are follow-up floor yields XQ how guys half? any be color just you casino from And

Randy Taylor

what say and little think is, really that covered recovered Look, of really and kind it would in so surprising, expected. March. say kind but expected, a in I bit And -- pleasantly than January his softer of not but remarks February early April I been I'd far, than higher we we it was May Mark have

bit single-digit it wait that maybe access So even seems low at but bit right mid budgeting cash we're say, right now volumes and to But to of probably would we'll for to and be access, still look, better, than seeing that I'd I a growth that the think expect see. kind But little we I to cash stay little now, kind say that. on would level. we're a growth and of expecting we're stronger have

Mark Labay

that of even quarter basis. of same-store in still we bit a would I weather look, little the with positive saw, add, we the on ended just January Yes. And headwinds

April into really in -- above patron, and still May, the levels mid- expectation like what very probably the the willing to as of digits in good we're So some May. in consumer our April gaming it just mid-single seems is environment. high mentioned, spend to probably Randy and closer some to kind seeing And strength the into

So April comp what wasn't last impacted wasn't year, bad that May or the so either. horribly

So it's in still it feels up space. very us this like steady holding for

Operator

our the with David And from question of comes B. next Riley. Bain line

David Bain

you of money on more... signal or confidence the deal the question that termination and program. is Does quick the that dividend a of purposes like repurchase A keep for close

Mark Labay

confidence our the at well, hasn't we that talk or the have doesn't deal going really special depending early payable dividend changed. forth. about year We be confidence expenses it's no, the point close we'll to wanted still if out believe end to I a still and of close. on merger-related doesn't -- that operations think It next think what -- it so the signal was our not But of we're year. and we I

And to so where understand we approach we cash that note just to dividend. want shares we cell cover not U.S. into to withholding shareholders And for shares we're changed require make because takes out be think from the which us wanted sure purchasing the away the that not that then would tax also to purposes, to government. pay the to we've going our

their just So we'll pay people would, of this still and that potential versus taxes, sell our should be market, them a our time period use saying dividend. cash the during will help that overall on but open for again, a

manage a well that we're make that could cash be if to to dividend. trying sure So as possible there

it, to kind both the of David. of So aspects that X was kind

David Bain

with any some I good. Very -- originally system Is IGT regard about that, David to to the cashless more know or the pointing and to that space. base then amongst friction perfect. as like, actually you something potential customers out, that the maybe could at spoken a operators accelerated be than That's follow-up, Have has combination. anticipated And systems deal removal you the reaction from and their spoke of they've the generally. specifically applied the you customers as

Randy Taylor

customers. -- we expect wouldn't would to we haven't haven't I specifically -- say Look, I talked Yes. really

kind customers are do. to there they're may thinking what that I of think be going about

Mark Labay

the On system side.

Randy Taylor

but -- we've period had I'm maybe because, to and In forward use opportunity, and of we're again, from But that any I thinking think gives have they I discussions then -- about more that are real us does they thinking system David. in there want change to system, maybe the how to a words, other what they're have would cashless say they've they they're think going operate. I we to probably if operate got this about The go don't IGT side. saying,

Operator

And Craig-Hallum. our from comes with the next George line question Sutton of

George Sutton

question mathematical Mark. for I have a

content. per You your an content. by or to be in daily that to would the to unusual be to -- understand result unusually of unit That the expected sounded to an new of per mentioned new year are sounded unit. grow win units of numbers the impacted as the daily the back be me percentage way Help quickly the win a us improve half

Mark Labay

for we're cabinets making installed as base, new that Well, content there the remember, out of base units, about the in there. are continually It's entire our well. cabins all of not brand just

patrons. more increased improvement, trying content you of well And terms the generally something as on But content cabinets to list of new as So obviously, performance make devices time those the the that drives grow the we're the swaps cabinets over always level and that's well. them. out new as on in new as move is out of we how a swapping needle and and to and little content

anywhere of we've installed first seeing be that $XX, yielding over improvement we've base, new legacy-type the what So is little generally time, on $XX in tired daily may the swap swapping that been a out the doing. in continue focused win more course the older freshest equipment, been there. we've we'll content from units outs a the the with cabinets or and of lower in base value installed Clearly, day on $XX, highest been

terms the So movement expect daily that's the see of in where win. we biggest in bang to the for buck

ahead. Sorry, Randy. just to add, Much it's Go ahead. more -- a it's go

George Sutton

Well, X-pronged what is. the I know need to approach

Randy Taylor

focused and then lift, themes on older, to, the have easier replacing a to have -- themes you're start little replacing gotten look, the of you cabinet. say, have but would that's you bit it, said some I where you but I

lift, cabinets older also the are new lift. a plus is the point new is on probably biggest Mark's themes just think but I cabinets themes So putting

combo. a it's So

George Sutton

view sort missing quiet And improves Ehrlich new wondered expectation with you. should performance what be that reference coming that been on Dynasty there? been expectations, of just the of there was we maybe Got I not What this an you the if Dr. have content. has call. early surprisingly could to might but a meeting address your that, enthusiastic about.

Dean Ehrlich

with. I'll tried the we that enthusiastic out be stuff because we hit of feel the and have that latter lineup part about a of should hits the coming of product huge we it the new hardware a our some very true about pure emphasis just we've of while. And on mechanics. that players familiar on for The bandwidth developing been a on are talking

happening what's months. through coming are liked. deployed, obviously the any to of would to fruition up products here that it's of longer different am lot getting products starting start it's next just few about come have I coming is taken So excited a really out and as that the a bit than us little

see So going Smoke had hard got we've Stuff If to Hot that success to about. hits and do upon name. continued the that you all to to touched give Very I Pop our of length one. just excited We how that's and segment. Randy that Dynamite premium talked

obviously look goes. at couple more a this and forward themes level to see So where same resonate seeing that particular

Mark Labay

I'd launched add X added right, that, on titles. titles. throughout X look, 'XX specific, the with we more about View We now in

total have a We of XX titles.

really obviously It's and those what it view we have focused base, we'll out placed using additional installed be sale. the that again, where, we So I'm that's also VLTs. cabins for our our titles on X for with in

a came those are really excited that, well, about themes lift out. still we but we're where new hey, X provide on, I'm versus So focused

Operator

turn over session. remarks. This closing concludes call to back question-and-answer the our his like Mr. now for I'd Taylor to

Randy Taylor

you appreciate our update an business in forward on on our providing interest today. for Sure. continued your Thank August. joining second for Again, thanks in Everi, We to call look joining us quarter and we us. outlook

Operator

concludes today's teleconference. Thank This you.

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

Everi (EVRI) 8 May 242024 Q1 Earnings call transcript