Everi Holdings Inc (NYSE:EVRI) announced its Q3 2023 earnings today, with revenues rising 1% to $206.6 million, driven by a 4% increase in FinTech revenues and a 7% surge in recurring revenues. This was despite a slight 1% decline in Games segment revenues, which fell to $111.5 million.
Net income for the quarter was slightly down, coming in at $26.6 million or $0.29 per diluted share, compared to Q3 2022's $29.4 million or $0.30 per diluted share. Adjusted EBITDA remained unchanged at $96.2 million.
The company's Free Cash Flow was affected by discrete capital expenditures amounting to $6 million for the construction of a new production facility and technology investments, along with increased net cash interest payments of $4.7 million. This resulted in a Free Cash Flow of $34.3 million.
CEO Randy Taylor highlighted the launch of new gaming cabinets and content, and the enhancement of FinTech product offerings as integral parts of Everi's strategic growth plan. The company is also working on integrating recent acquisitions into its operations.
As of September 30, Everi had a cash balance of $209.4 million and continued its share repurchase program, buying back 2.4 million shares for $33.9 million.
In light of these results, Everi updated its full-year 2023 outlook. The company now projects Adjusted EBITDA to be similar to the prior year's figure, with lower operating income offset by reduced net interest expense, taxes, and capital expenditures expected to result in Net income, EPS, Free Cash Flow, and Adjusted EPS at the lower end of the guidance ranges.
InvestingPro Insights
Leveraging real-time data from InvestingPro, Everi Holdings Inc. (NYSE:EVRI) maintains a market capitalization of $1030M, with a P/E ratio of 9.34 as of the last twelve months of Q2 2023. The company's revenue over the same period stands at $818.87M, marking a growth of 13.49%.
In line with the InvestingPro Tips, Everi's high earnings quality is evident as the free cash flow exceeds net income, a fact underlined in the company's recent Q3 2023 earnings report. Additionally, the management's aggressive share buyback strategy is also highlighted, with the company buying back 2.4 million shares for $33.9 million recently.
InvestingPro also emphasizes Everi's impressive gross profit margins, which stand at 78.77% for the last twelve months of Q2 2023. This is an important indicator of the company's financial health, suggesting that it's effectively managing its cost of goods sold and generating significant gross profits.
For those seeking a deeper understanding of Everi's financial performance and investment potential, InvestingPro offers more than 10 additional tips, providing a comprehensive analysis of the company's financial health, market position, and future prospects.
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