Everi Holdings executives say their supply chain hasn’t been disrupted by the coronavirus outbreak.
Everi CEO Michael Rumbolz began the company’s fourth-quarter earnings call Monday by telling investors that Everi has not been affected by the outbreak that is sweeping the globe.
“We’ve certainly noted the virus’ impact on global markets, including the gaming sector,” said Rumbolz, who heads the small Las Vegas-based gaming equipment manufacturer.
“But Everi has not experienced an discernible impact to date,” he said. “At the present time, the guidance presented in our earnings release today does not contemplate any impact from the virus.”
The company predicted free cash flow of between $95 million and $100 million for 2020 in its guidance.
In response to an analyst’s question, Rumbolz added, “We really haven’t seen any real problems in the supply chain yet. We continue to monitor that carefully and we do continue to look to secondary sources in the event that some of our smaller supply needs end up drying up and being impacted by the coronavirus in Asia,” he said. “Currently, we think we’re in good shape for the next couple of quarters.”
Everi, which manufactures the “Shark Week Jaws of Steel” game and produces cabinets and financial technology products, recorded its 14th straight quarter of record revenue and cash flow in the quarter that ended Dec. 31.
The company reported a $4.1 million loss, 5 cents a share, on revenue of $145.2 million for the quarter. That compared with net income of $4.2 million, 6 cents a share, on revenue of $119.5 million for the same quarter a year earlier.
The loss resulted from a one-time $6.4 million pre-tax charge stemming from expenses on the settlement of litigation related to its financial technology division. The company did not elaborate on the litigation.
The company also said Monday that its board of directors has authorized a share repurchase agreement of up to $10 million to enhance shareholder value.
The company missed analyst’s expectations of earnings of 8 cents a share, but surpassed revenue projections of $132.6 million for the quarter.
Everi shares fell 66 cents, 6.3 percent, on volume nearly twice the daily average, to $9.74 a share. After hours, the share price rebounded by 16 cents, 1.6 percent, to end at $9.90 a share.
Contact Richard N. Velotta at [email protected] or 702-477-3893. Follow @RickVelotta on Twitter.
