Everi reveals Q1 losses, names Rumbolz as new CEO

Everi Holdings has announced the appointment of Michael Rumbolz as its new president and chief executive, while also revealing a year-on-year decline in revenue and income during the three months to March 31.

Rumbolz had been serving in an interim role since the departure of Ram Chary in February, but will now take on the responsibilities on a permanent basis.

Everi did not give a reason for Chary’s exit earlier this year.

Confirmation of Rumbolz’s appointment comes as Everi announced its financial results for the first quarter, during which revenue fell slightly to $205.8 million (€180.3 million).

Everi suffered a sharp drop in operating income, which fell from $28.1 million in the first quarter of last year to just $3.8 million this year, while net income was down from a positive of $500,000 to a loss of $13.2 million.

In addition, adjusted earnings before interest, tax, depreciation and amortisation dropped from $50.6 million to $45.7 million.

Reflecting on the results, Rumbolz said: “Our financial results for the first quarter of 2016 were impacted by several previously identified factors including lower unit sales driven primarily by the timing of field trials for our new Core HDX cabinet late in the fourth quarter 2015 and first quarter 2016, lower year-over-year sales of payments kiosks, and the removal of third party Class III games from our installed base.

“We believe our 2016 first quarter operating results will represent the low mark for quarterly performance this year as we expect to generate improvement in the second quarter and then in the second half of 2016 relative to operating results in the first half of the year

“While our first quarter results show that much work remains to be done, we are starting to make progress on leveraging our product portfolio, industry expertise and compliance infrastructure to accelerate and maximise long-term company-wide growth opportunities.

“Our initial success in these efforts includes: increasing our games and payments product portfolio, adding new distribution capabilities, the ongoing development of new licensed and branded games, and the integration of our games and payments products to provide customers with value-enhancing solutions.”

Related article: Everi removes Chary as CEO, appoints Rumbolz on interim basis