The management of Everi Holdings Inc. (NYSE: EVRI) took the opportunity at the company’s earnings call to shed some light on how they see the future unfolding. The company’s CEO Mike Rumbolz didn’t mince his words as he said that at this point one area that investors should not take their focus away from is the sales metrics of their product called Core HDX cabinet.
Rumbolz said that demand for Core HDX cabinet continued to strengthen in 2Q2016. During the quarter, the executive said that Everi Holdings Inc (NYSE:EVRI) sold 819 units of Core HDX cabinet, indicating an increase of 10% over the unit sales in the comparable quarter last year.
It is important to note at this juncture that Core HDX cabinet sales accounted for more than 57% of the unit sales that Everi Holdings made in the latest quarter. On top of that, robust demand for Core HDX saw Everi Holdings push up its install base by 222 units between the latest quarter and the prior one.
High conversion rate
The fact that Everi Holdings Inc. (NYSE: EVRI) is seeing high conversion rate in Core HDX cabinet trials further makes the product a key gauge of the company’s future.
Beyond Core HDX cabinet, the other area that Everi Holdings Inc. (NYSE: EVRI) executives feel excited about is the company’s payments business. Higher kiosk sales and increase in cash to the floor added to the gains on the payments side.
Additionally, the company said fraud losses and charges in the payments division were lower in 2Q compared to 1Q. But that is something that the management had anticipated and when it happened, it showed that the management understands the direction of business.
For 2Q2016, Everi Holdings Inc. (NYSE: EVRI) posted EPS loss of $0.16, missing the consensus estimate of EPS loss of $0.10, but improved from EPS loss of $0.19 in the comparable quarter last year. But revenue of $214 million rose almost 4% YoY and exceeded the consensus estimate of $7.08 million.
Can the gains continue for Everi Holdings Inc. (NYSE: EVRI)?
Everi Holdings Inc. (NYSE: EVRI)’s CEO Rumbolz believes that his team is capable of delivering improving financial results going into the future. He only wants his team to keep up with the passion, focus and commitment they have demonstrated since he joined the team.