Everi Holdings Inc swung to a net loss of $13.5 million in the three months ended March 31, 2020, due mainly to March casino closures caused by the coronavirus pandemic.
In 19Q1, the company reported a net income of $5.9 million.
First-quarter revenue fell 8.5 percent year-on-year to $113.3 million, down from $123.8 million in the prior-year period.
Everi said it saw strong business prior to the outbreak of COVID-19 and took swift action to increase liquidity and reduce cash outflows after the outbreak.
“The significant improvement in our operating metrics in the first two months of 2020, including revenue, earnings, and cash flow, demonstrates the strength in our business prior to the outbreak of the COVID-19 pandemic,” said Michael Rumbolz, Chief Executive Officer of Everi.
“Since the onset of the pandemic and the resulting closure of our customers’ casinos in mid-March, our attention has been on addressing the impact on our employees and their families, our customers and our Company. We acted aggressively to preserve cash and improve our liquidity position to allow the Company to achieve our long-term goals as our customers’ operations begin to reopen. These actions included dramatically reducing our near-term cash burn rate, accessing the capital markets in April for an incremental $125 million term loan, and amending certain financial covenants of our existing credit agreement.”
WIth casinos slowly reopening, the company has now started a phased approach to bring its employees back to work, he said.