Everi (EVRI) 1 Mar 222021 Q4 Earnings call transcript

Hello everybody and thank you for standing-by. Welcome to Everi Holdings 2021 Fourth Quarter Earnings Conference Call.

During today's presentation, all parties will be in a listen-only mode.

Following the prepared remarks, we will open the call for a question-and -answer session.

As a reminder, this call is being recorded.

the Investor to Relations. turn Vice Pfund, me of President let call Bill over Senior Now Thank sir, you you may begin.

Thank you, operator.

by call begin disclaimer me reminding our that Let safe covers today's and webcast. everyone harbor

the obligation Investors cause filings, call. our forward-looking limited at which statements SEC in to, are from any of risks which differ in Our call X, as earnings and actual corporate on not are uncertainties that to and today, this contains forward-looking results discussed not in release risks and only of today which those website XXXX. section posted everi.com. intend other our involve uncertainties, and to statements, contained do could We made March assume These those are no but materially include, update

You not cautioned on place reliance undue are also forward-looking statements. to

financial and Business Ehrlich, to certain Mark replay Operating General Lowenhar-Fisher, Games Executive recorded. A related A our cash as will Chief found reconciliation a the X-K Chairman Simmons, Financial can Investors are each non-GAAP Officer; is section Dean EBITDA, call earnings to website. today and of section as the Randy of Chief and President Officer; of On call webcast link Chief Business GAAP our comparable as in and Darren be and Officer; the net Rumbolz, Counsel; Fintech a Investors Mike of description measures, being Our call Taylor, today's found in and Labay, website. our our Leader. our Leader; Kate call cash in and position. can release measure free the This directly such webcast be most and flow measure well reference adjusted non-GAAP

to Now, I will the over Mike. call turn

us. Well thank morning, for good and and joining everyone you, you thank Bill,

your the I in role, Chairman will Everi gratitude into to company to Executive X. in addressing executives. like our also support team opportunity last calls as like Randy of outstanding new Officer, lead also CEO. utmost to an and express Board, his for even Before like forward brighter watching to my to be future. of as working today, future. of to take I we you will for quarterly years. not six that Executive us to publicly of would this I leading our time shareholders will participating Taylor all begin beginning confidence Chief continue acknowledge these as welcome these them be the Everi the I'd past our would in my I Randy take our have look I company but all April this

challenges to of quarter Fourth a fourth Now our the And compared streams significantly let metrics began drove impacts financial quarter continued throughout over Everi’s unprecedented and revenue were share level. XXXX. sales the fourth operating This quarterly up an record of me and strength for dramatically with quarter revenues year continued recurring results which XXXX increased few also the and record a our to then XXXX The pre-pandemic capped key that quarter. pandemic and strong substantial highlights year-end. performance year. record had game fourth

record never that In have game global share we supporting and development operations the made of the improvements investments new gaming digital both both team revenues, full business these driving impressive is results high products and also game the outstanding return a full concerted strength It year. net our investments in team new year-over-year remote units. have and and that stronger. for XXXX leadership investments and driving games begin also gaming world are and the our what for priority drivers will the differentiated our record engineer year both and the platform sold steady challenges, and These class iGaming has our we the in continues of player revenues. cabinets, build global results that for and of geographies was the on to Fintech rapidly XXXX. cash operating adjusted to delivered ship business, studios These share continue drove to led Everi growth. these them. expanding guides focus we operation server workforce and despite growth have gains, This been were appealing growth gaming record results of flow. deliver gaming built income a organization consistent The execution ship team place a growth EBITDA key state-of-the-art a by of as our sold portfolio that to execution Strategies of fourth to game machines and share our to Now in it's the of been shipments and the our our for our our a significantly, operators, strategies. growing in Together, level strategies, free most on which driven games quarter our

installed machines level Our also reached record in base of of gaming a year-end. nearly at XX,XXX gaming high operations units performing

games. represented Importantly, the fourth of quarter XXth increase quarter placements consecutive premium the of

our recent gaming are Australia a the by entering for horse studio the to our is a employees game world. future additional entry U.S. with beginning with form the help as States Australia racing agreement place to I our and the investment after of we Everi Melbourne, historical will year our will business, new operations. a developers Atlas core to I the term foundation bring into of game horse that as before in or also to provide Our growing Australian provides the Atlas announcement machine also what recent we stages Gaming entry to certain digital in core and This we market. accelerate engineers who and neighborhood recently investments second of for announced of on largest our acquire niche will And historical say decision FinTech into group This as of of In longer but our market. bringing think leveraging network the end. content the of well machines enter opportunity and the been casinos. continues assets an strength racing swap cash market. in develop our market new for early neural for United And the what build our have digital HHR focused expect access machine to the

the this With and operator benefits continue relationships. in to we products each the which our customer in of casino new place, further of layer features, and enhanced network foundation strengthens

Solutions, same while into new of leader on access, and and for expanding operators the Xpress jurisdictions, acquiring improve innovating the tablet features paramount. accompanies and products that RegTech that time the our As new process Jackpot focus casino streamlines a loyalty includes financial experience, at developing efficiency existing cost providing this development patron the that of geographic is our as major Internally, administrative of jackpots. payout an such new greater products,

as and funding use multiple enables their [reserved] that of easy further It both jurisdictions, enhanced imaging we integrated our across casino on gained autumn. cashless casino to and across the online. of to operators this wallet have meter the properties addition last acquisition capture through the product operations, multiple with as also of entirety includes We of features exciting, features patrons their offer robust well the in assets technology that premises

loyalty solutions continued two already includes acquisitions, also scale search prior focus future and organic record that businesses our growth. provided entry tuck-in the can up Our category. loyalty through We've a and the successful including for our integrate acquisitions into this track our casino for we established for that

Our the loyalty provide Australian provides offerings products geographic growth gaming revenue continue to Most for of a our expansion agreement ecash market. Holdings into recently, our FinTech to business. our FinTech acquire for

and facilities, meet to are have Additionally, that the of of clubs will United in products be North create smaller example meet acquisition America. we Australian our kiosks portfolio developed needs One currently used sector the in perfectly provide our will pubs adding distributed FinTech U.S. demands growth been and of the kiosks in ecash new and certain products their gaming being both gaming offerings This new States. and sector. will the in is Australia. to the to opportunities These the also

flow. a our drive on as penetrated Enabling growth where return able our expectations generate behind getting acquisitions. the will growth, appropriate strategy This stay and products free attention placement we products, driver the free continuing and the strategy course of where technologies not quarter. fees, spending complement dual evaluation be like. the flow investing also or to is nearly million on with were The in core in growth on attractive $XX we that product we're longer tuck-in allocation our this we're heavily emphasizes continued million operating this $XX flow focus which strength currently This Despite term million not businesses. was focus in of for growth, and Given our fourth $XX today. to key allows geographic our focus, talent cash not of free we may to or technologies cash bolt-on our opportunities, the phenomenal high gaming and sheet, quarter, includes development to cash in balance also capital would expansion prioritize another as and that newer CapEx us internal operations

the combined was For free $XXX of cash full year, flow our previous years. the the million five of equal to total

Randy to provide you Now, insight let the me over our more successes. to operational call turn into

Mike, you, everyone. and Thank welcome

as quarter, take for his substantial Before tenure and sharing operating achievements some of CEO. contributions thank like of a to his I'd very moment the meaningful Mike during the

the leadership underpinned great organization, always and new products but out efficiencies needs a our of and I growth focus key expect force of While Mike a many establishment strategies Mike's behind breadth one and the which all and our couple. one that to tenet accomplishments, the company just the can this culture, we diversity the would vision positive driving were of documentary, strength changes of the customers, free today, not our flow at provide just the like worthy special a wide The greater be To with dramatic level, under provide long-term that just of occurred will have call list the of a across would has them value. it's growth is more talent leadership. is our our on cash benefits. in been but is of successful that of our

all in insights by Executive is the continue infrastructure you, I and were our and pleased as I'm your led business, experience leadership personally to transition vast to very Mike. you that and of will the mentorship. from Mike, for Thank your investments Chairman. Everi successful benefit of which As

a our recurring revenue core success grew over currently of and our are FinTech consolidated results, In is that full long-term over fourth basis, was being the quarter investment key fourth XX% accounted margin of believe of XX% for XX% to demonstrated on quarter of revenues recurring continued higher year significant revenue in On worthy have of recurring our valuation that XXXX operations. ascribed. have fourth growth we consistent XXXX the operations and approximately the games of revenues fourth and streams our quarter thesis quarter. quarter Moving our our revenue. across been of a consistent recurring the driver We differentiator demonstrating that These growth. a the in than high our is XX% XXXX segments, a strength is revenue what

strong record video Games The and mechanical we we high. cabinet sold of of A up units believe revenue leading opening in was have of our We games and total level operations. revenue over base operations, XX% the a a base XX%. XXX installed reached quarterly Within continued ago reported game growth wheel installed know games. ship XX% our segment the we until then of segment. approximately will reached a led performance. gaming of new in all to new along its growth the EBITDA the machine revenues And travel our XXX the record completed believe competitors is of of expanding units our in industry along to increase results, to and quarter, added XX% steady than with installation our units. review during at adjusted year of the to array ongoing games, success be to continued That our by three breadth while a driven level were XX,XXX won't growth fourth of game we for quarter it total up performance gaming flex over XXXX. casino quarterly their a units. with XX% increase high driven Delaware sales, share Turning fourth Combined where garnered our our the addition more casinos, by with precise

quarterly this installed We in the QX expect year. base in another nice sequential increase

newer growth fourth units the of of per win the significant of of offset incremental a XXXX. XX% our our in units were result daily as on unit machine in cabinet, drivers of more Our II Placement a placement skyline units. upgrading revolve premium such standard with over Flex of and in Fusion, premium The Class performance along the quarter NATO than installed games jackpots on our of increased as quarter key base cash growth. units cash gold wheel mechanical premium the to standard number

for our top mechanical was Our recent improved category category. last and improved core three Eilers Everi received Gaming in games most performance organic two were week. games, And the further award evidence Award nine honors & business ceremony for including an at in wheel the categories, we for nominations. awarded supplier Krejcik awards held

gaming on both over increased annualized million run year ended $XX.X we of sequential as expect over year-over-year XXX% $XX our full business to for record our million million which quarter XXXX. For strong fourth and Revenues the in led increased year double-digit full digital of growth the And $X.X XXXX. of digital rate XXXX we in basis, business revenues an of XXXX.

These of business, quarterly over EBITDA our to up XX% XX% fourth over FinTech year and prior XXXX XXXX increased Turning year-over-year, strong over XX% were resulting revenues XX% quarter. the total record growth the in adjusted benefited period. the revenues segment and

total driven to fourth primarily increase X% the floors services has Of quarter casino FinTech size the note the total XXXX, XX% XX%. XXXX, by which quarter rising value the led to revenues Within of increased of fourth access activity. financial funds in average transaction transactional XX% increased over over delivered of segment, the

Software of and for contributor services base. year-over-year that behind the the quarter the over software was and regulatory is revenues sales other maintenance strong revenue compliance, and Driving RegTech of growth customer software performance in revenue XXXX. growth services. royalty, software rose fourth subscriptions our equipment key growth in A XX% our

of properties, including end For XX% revenue of customer number by a the loyalty than utilizing more of Like subscription example, we financial have our XXXX, the increased services. the recurring access services our and introduction products since remaining rose XXXX. of recurring large fourth line XX% pre-pandemic below quarter. a sales, over which XXXX component, the this have amounted services software revenue Revenue fourth for item levels, to the of X% from hardware quarter although services,

turn our outlook to Mark to on like Mark. XXXX. I'd perspective call Now share over for the his

Randy. Thanks,

the our the glad In let I of year-end. strides addition sheet. strength to provided as responsibilities like XXXX our as with that prepares Executive shareholder we've new wishes first with our engaged in I his dive operations business and in our improving guidance business balance my start made to Chairman. With the that, highlight his great would And Under building value. discussing I'm outlook, I his that, we strength But leadership, also me he role. will will and truly new remain in he sheet at our to our of best on Mike release, before the take balance into earnings

I strong For don't net operating on year-end, say and towards was de-leveraging. have times. many focused pleased to And only because growth that speak our on topic our I consistent total at progress X.X our that execution, leverage today. I'm Except that to quarters, of

outlook the of for to the year XXXX. on full Moving

$XXX million, in of million increase by range the X% driven to an XX% in be to income income. net expect We to $XXX operating

or of share. certain $XX.X benefit the $X.XX fourth in of tax per of valuation which result quarter diluted a the of created XXXX, As deferred allowances asset reversal a million

taxes. for begin We a to statement record to income expect our income in provision XXXX,

some if normal taxes, of deductions. and our state foreign include purposes, some and modeling operating federal, For for account you

XXXX cause a tax [$X.XX that diluted rate $X.XX] as pre-tax share. to be increase compared a approximately provision income tax earnings. equivalent to impact tax million of between portion in reversed projected tax income the Because of expense. benefit shift $XX reserves could this XX% per expect to We and significant from to income XXXX, we've is This our million $XX valuation in net or expected effective our to

year of to is range full the generate a should that a loss XXXX million of as pre-pandemic $XXX EBITDA expected in will $XXX period pandemic, the on adjusted have between downs our of growth any XXXX. compounded within be from have steady is of viewed and change actual that carryforwards taxes annual books. million. We the believe $XXX growth and including still important impact meaningful on over million not approximately to When our several net XXXX of years, X% paid, X% to approximately XX% The ups last grow and the highlight we cash this this element gross in

share views. Now, the of me these some shape variables let that

in in expect normal classic in the share the game daily related launch generate categories We capital to some due in expect cabinet, business, to operations by keeping We effects, increases also quarterly released the casino growth combination unit the in throughout our believe robust improve seasonal year, machines, spending year. impact the signature, sale for of the full ongoing of our as driven per of traffic our year games additional our pipeline by while casino new our influences. the gaming pandemic which installed newly do also customers. on of to the variability $XX of reflects ship growth mechanical will well our full win contribute and We as rate other range player a and the base

return mentioned, and continue to the we the base just premium units, growing prioritize we units. installed of will steady total we installed not because previously the all As receive on

may units reported contributed daily unit. vary premium the to changes further As per quarter, units thus any win and percentage in quarterly also total a given in to result, of

as the digital activity continue financial addition as positive trend For of new FinTech, of continue, we the rollout the to expect well wallet, including transaction access of our customers.

by software We new for of and other products we strong and the demand steady expect enhanced products services driven stream continued our introduce. and to plan

we benefit financial loyalty from addition, for kiosks, growth our expect to demand of fully and integrated driven equipment in access ongoing sales In year-over-year by FinTech replacements kiosks.

abate supply chain they continue and manufacturing now, XXXX that of games. At present, will we supply While be time and effort begin chain will in to of been teams challenge our FinTech great of throughout XXXX. we supply have the constraints anticipate chain largely the for the believe industry much of both disruptions entire second mitigated a to focus and to some temporary, half in

Excluding non-cash of the current expense operating expenses and percentage expect total of XX%. operating impact total revenues from comp expenses, levels XX% of we to be to the comparable to between the

However, expense, tight our growth labor as we higher which current the well expect of reflects as ongoing slightly payroll support activities, market.

expense of to total should range be in to X.X% is the revenues, continue R&D of rate which to run of X.X% fourth comparable quarter. the the Our

to product $XXX higher expense despite I to new internal that XXXX, remarks XXXX. to XXXX. to only outlook during of will we our R&D million now. expect anticipate on and strong our paid to will year to level I’ll prepared very In flow, a time, focus total, progresses. should now in I’ll in revenue, no spending base operator expenditures, operations since installed the the the $XXX additional million about the for to in which see cash our we At fees as be increasing this note and conclude trend to In pass over it capital and generate free spend and expect million in increased million this the call range regard we gaming million over XXXX. of development, amount be now turn expected continue expect and we capital $XXX between questions. placement to our between given we $X towards million XXXX. is significant $XXX to $XX expect However, end up the And increase for higher

Please Thank with is George first proceed. question Capital you. Our [Operator Group. from Craig-Hallum Sutton Instructions]

what minimal joined previous I of quite with reluctantly mere team ago, out had a you're I from years And product, six it's outlook. look at today. and And Mike, and business And when a you leaving fairly to say pretty impressive, you I remember frankly, you, would Randy retirement. quite my levered Thank somewhat perspective.

congratulations. So

George. Thanks,

on of that's balance has in if in Kind because sense really fundamentals. of prior. haven't our a been position you very interesting the call, you stock that strength will, of of and that improvement a you sheet this frankly, the been you And are overall give in

and position signs, So when lease might next the this at for out, things of see M&A look is Randy with of this as maybe sense, couple a look benefits if we question the strength? better things you this What quarter, did like last us over we some hires, the a quarter give group we and other years. of long-term of

with today. and for technologies it's internally about what you, the think George. pieces be customers, and I two done that on looking patron and talked we've is past, our Thank what Look, other I think, new to going then in -- of which consistent outside we've products investments help experience products the and geographies again will

So like be North again, December, tuck-ins and it. can of in America announced and outside we looking for just bolt-in primarily, that

it's cash with. going think flow in obviously, we're And to game our plan. acquired, the to in So We've don't have that very view, more work to change successful. was tuck-in been we're our small going I

to for look be forward, we've what it's but probably done the going consistent what at we're expand past. So going going looking in we're now to

are up, earnings. for one in of Gotcha. Mike, you in call earned going give gamblers follow on or yourself, shape Rather since new than a form. $X.XX us to this you But most enter this era tip, I'm way as just a gambling

roulette a and had a in nearby million I to EBITDA $XX.X recommendation? there XXXX, in guided growth will you assume just to table but X% You up be EBITDA

George. Yes. you. that, Thank Appreciate

Mark. you, Thank

is next with Katz proceed. David Jefferies. from Our Please question

all or to recall, was job? know. I only everyone. if said, I really I know about it morning, called but need think you and taking don't interim good you're are XXXX. that's Hi, I have Because one I Congrats, you the Mike. question,

tell public the was to reply it's repeat glad the what to your great maybe say been I'll answer going I'm offline. not But, in call, a ride. you I'm No,

a really that ‘XX. that, to and I think would want it cash place, really published maybe And What I to down a starts net look recurring I terms you've program two happens flows As can we it's in rollout what know, to not getting with about is I run spoken kind does mean, kind wanted we cash? to of of start a an to or in intimidating set need ‘XX, might guiding certain return start the just speak CapEx we the capital do -- things. about conjunction is to haven't not But that. like? but ask line, number, you it to and qualitative trend what to see we into way before about the all not some what you're to an about

would real Well, question, and response answer if But why get call I will me, David. my first us being Mark, it to if debt me, you to you take it I it before and, your whatsoever. may was let retired to down part no is later thing, for and up of I I'm and was would up thank say, that, I be

be For doesn't smart consensus, that the to but seem move.

Mark here, it and let be sensibility rather than with me that. over let guy more somebody bad to let So me the answer turn

get to results we will continue below stated of are to generating, leverage, Well David, as though, -- continue our from the two relates we and have too mass on grow to half, naturally, a will the and thanks, no as keep leverage clearly, to our it our expect we we occur we grow where our designs total strong I -- times EBITDA stand, goals to for just three earnings trying Look, benefits Mike. EBITDA think, we leverage far dropping. that

and in So that and products organically that's a earnings invest intended grow in we terms good both growing good in there and keep this of to to acquisitions mentioned business, Randy thing shareholders. intend our out more comments we Mike of to to find terms their in a the those ourselves right And new for business. us business for continuing pipeline to to debt that's looking growth think We us. of importantly, profile stay those kind for within the continue both

excited that front. those we're that opportunities. keeps on about And we happening think So

pandemic, In terms refreshing to COVID and terms little to XXXX we've been just in of of you XXXX one respect that and CapEx, installed more come and occurring. and mentioned portfolio keeping challenged and being back that, base with a aggressive I'll say, the the

So try there's well, to difference the maximizing going as bit our to up we're base investment the little installed side from on ensure return of another make a to we're as well that that we'll make ‘XX kind business, manage we we’ll our of is and where we as our in norm but be of think really move clearly forward. kind I guidance the for think should

let me So covered I think not know. if I'd all your but topics there,

fine. work just Thanks, Mark. Nope, that'll

with Bain Our B. next from Please David proceed. Riley. is question

with you. everyone. and the positioning whole really in phenomenal. XQ along forward Randy. just and the team to And And past the Thank on been Congrats Mike Great. going

is seems great. offer the could I in actually was that them, not my general field go sales into any you're the with be revealed then the you guess that on mistaken, collaborative, agreements so we'll I'm it first operators of operators unless question, I if is which with some process like Okay, larger that sort FinTech the are the almost agreements of insight traction. there that it wondering in begin timing digital customer the already where you process that to to in work feels it's good later. with From see we'll out and like yet you is mid-year a see perspective, to of

the question. for David, thanks

the many that piece is regulatory. question In one the just you me weren't in let that say your lead First, long regulatory item. encompassing jurisdictions, is

I more casinos in at but we're than and Darren, that think to over to them. slot Darren turned speak you cover mind look more as that agree to in what and doing, And so, machines keep we're in jurisdictions just but more ultimately you'll I as space, want anybody this

is in regulatory speaks Mike new all number jurisdiction we're pipeline side, not their Sure. this factor jurisdictions, regulations, is of previously, rollouts. in stated for as cashless before, as as we've the to that we we've And have Thanks, casinos, the so, most digital gaming what stated in they Mike. sometimes David, the and somewhat since jurisdictions, biggest payments. significant moving towards X a generally and -- said, XX terms Yes, in got

And sometimes little it's a ambiguous.

terms is in how is really to our gaming addressing and I we're able customers feedback regulatory market our position that the standpoint. that and the an of say, And in regulator, are really would success and audit So cooperatively we've them important had with ongoing. responsible bringing communicate tremendous to good with work what being to from things the we're

So number months. to signed, collaborative of is, announced. is And effort. mean, point we've this in And what announce And customers. they're about Yes, very partnership and pipeline. got being this. your -- They're got we've would how I methodical agreements we expected very it that's with the this those new those approaching to coming customers call in yes, a that the be a

customers measured their rollout. As you the in know, are very

about in again, I, really good our where terms we're of at feel So progress.

terms like of of the at regulatory all to But, quicker. in the course, rolling Of move side it out. mercy it we'd somewhat we are

to could we question that slot term shift or At they're more versus would helpful. percentage the levels catch a Not it's for almost of seeing normalcy above in replacement a sure of feels be more get ‘XX to potential this are but percentage speak And to than dramatic, one just the and also my we a year, longer we ways least, back it to the real like you're operators, want is longer replacement. your look ‘XX it's at is, were other term on some normalcy It's they in I buying mean, say, view, focused back guess focus potential And then floors where environment? take amenities the this past? seems question. the seeing slot picture translate same, industry in your on in just I broader big really second terms getting when the in but of When on up I games. buying it to

get to know, at. the you, time look I'll have period depending as that over Dean been turn map, which to going on tell And into to I'm of David though, that. Yes, replacement you five-year it cycles, all over you

and we don't As usually machines by an technological five-year a but these like replacement TITO, was was said were always advances necessarily we not out, on that imposed wearing machines industry, just by that it cycle, wearout.

More wear customer's you might question. interest wouldn't importantly, replacement to And that the Dean really let cycles. drives But that's out. what speak

last couple Depending seeing terms years, the a a that. bit Otherwise, on, in more less. technological similar usually on in don't product little maybe levels. spot a progressed to more. throughout We're it's Mike's But a bit of little driver five-year little they have that cycle, property, the of XXXX tired there's the

I refresh standard than more it. phase, call would it's So

Thanks good. very well, Okay, again, guys.

Thanks, David.

question proceed. with Please next Stifel. Jeff Our is Stantial from

here. respective My years. to all. basket morning past with and Great. wish several in roles the great Good definitely the of new Mike everyone you really congratulations you both Randy's work to And you these your been both guys

Jeff. you Thank

could for begin M&A building that going to we on what start recent to you you investment just how a be do timing we was to where second kind curious, you wanted Australia really I I in if get should just ultimately? about the And to want think if side market further think gaming activity. given required the momentum it's to for so the be any, more on and of

it's throwing job with today products can he is that market. great take we that here. of I can out that that's got is he's EBITDA me to And -- nice, a nice [short bring let want that over and Jeff, developed blend Darren running there that and and think because trip] company up we they has a have all I first a hitting a the done in and got at don't ground

want So going let to Dean be me just of do to say are that side? the the our P&L. start actually But in speak included Australian to our that's operations you game

a that I -- build a platform not say us a would down of do well. going XXXX more of would to presence a only into able only bit take what content would call into to into but things would current not but time protocols to couple America to that a expectation leverage that, get market, But I Sure. as end there North be to little we new the leverage to enable our of by implement be also that's studio larger be use. coming able the

Yes Jeff just games see selling I games Australia. Australian style see probably you spread being coming following comment, Dean's on us in you'll -- think yes I U.S. I studio of that out in actually the before

you a end follow curious, seems for out perfect. disruptions noise at And light more weigh some was how minute up clear the right Russia more out as to implications just supply Okay, with But Ukraine want potential now, going more It stands to chain seeing here? clear, call I today, there on a there's and then the tunnel. gross and and times? noise in really the some know, then would it spend my helpful. Are everything any from did you on I the that. up, super and you like be coming clear in That's and potentially in did of a And perspective? sourcing Any impact out? margins lead it just from

there let you our first. sourcing in both I with that covers sourcing last no, not as issue anything from businesses. Well, anything -- from see anything that the us me don't that Russia. one coming all. we're any believe We're chain And would Ukraine take we of at And cause issues know, the don't supply

been perhaps your to ask these Darren But has me speak dealing of has. Dean them more, -- with is think first. redeem both to than I Darren let issues -- go

that going were did anticipating a in solid of games, even really Yes, again, we I to ‘XX, both in job ‘XX think terms and [indiscernible] terms things both happen. to these starting I of back and sides think,

some the And material the looking month, supply to then, impact half, we're of but so that ‘XX. it in far. half one nothing from pushing has that's think continue of I next month somewhat second expect us abate terms Nothing us. It we might things chain for first to impacted through the point. in out there's will be impacting us nothing material this probably again, at

Dean?

only demand forecasting working our the been, through is Also has what is thing in to we've exceeded it obviously increases that of though. I very our we've Yes, add resilient it. would been terms challenges

us say supply do it's of your or a without much times not items, terms collaborate chain side, supply in and so So half a especially but plan, international one chain, you and getting adapt you towards with to if the got let that. long time supply lead

publicly the wouldn't to problem because call great kick bring coverage a I a in to of headwind, how in-house. we've have, it's it's, we terms it out products So much need

So even with will to be resilient challenges. even the respect more

field. product and think, through I to we out work just the get continue to it

Helpful and Randy. all. encouraging and always. Thank And you congrats, Mike once again, as

Thanks, Jeff.

Jeff. Thanks,

Chad proceed. [Operator Beynon Macquarie. Instructions] Our next question from Please with comes

Hi, myself good on morning. everything Mike, question. well. taking Thanks congrats my Randy, for from as

lot as you early just above just good in seen $XX you Regarding maybe the little quarter? so we've is comment kind going that January, the of think guidance, an seems your could to Thanks. operations or for components gaming the premium on we certainly if what been a like conservative take Wondering bit heard there level of be comment on to year any start far represents some the was around partners piece should And usually your a just year it but guess very that your on year, kind else on annualized basis, there start I from that given impact a $XX. anything you $XX of to you've what of can I of that weakness the level Omicron. in wanted on, of yields focus that's this it's comment laid approach around that out, bigger that's improving everything a given in to the in and and early was

on I Mark you you. give read should Sure. Chad. And some this. Thank think

part Yes, first. to latter I'll the go

of You didn't pick respect a Omicron. the started-off We bit. that, January little with through been little would a to January mentioning seen do early operators say seems the bit February have to we've mention some have flowing softer up that numbers

that pandemic behind year, So more getting that ups we're clearly full we've seeing the you lows the been impacts expect optimistic should to of the business. see maybe us. and throughout about the But

in significant again, our slightly $XX caused on the again, we and a big closer actual units wind But somewhat, quarter, a expect see talk daily win, could that impact property base, drop that's we units daily but expect return we issues added installed As the that in mentioned units Oklahoma top base last this the have have a win to towards we bit call out into in the look of installed we'll more out Delaware whether little going certainly that revenue to that growing their line we've great to add we it's good base. see daily quarter to the that going add one number to base And that to our lot range. these that the of or to units. us install and all impact we number that rolling large and installed been the these they're

daily but, that installing health of of above for not focused and some it $XX expect and or to to individual cause we're more we on impact rise. win the the that at see and could influences kind So metric so or gauge it's a dip new of seasonal stay of a year these

HRM makes just sense. that additional the business, mentioned up Okay, XXXX. a And machines? on the just in in also in of terms able kind then is that you're Thanks, you're these to follow you deploy included And how any that of about getting market the terms color thinking of Mark. of timing gaming being any into

that a where in [indiscernible] of of these would longer term But I Working various jurisdictions much bit XXXX. Chad, an and minimal, market. some will impact have I say will up, say plan it's into there, I to you'll water can -- more that units that would of in a be see little take start start

it. Thanks, guys. Appreciate Great.

Chad. Mr. you, Thank

is question proceed. Raymond with James. Davis Our from Please next John

XXXX. the good Hey, here. But versus dependence Mike basis on run some puts But thing each takes far to Randy, ups. morning, quite game I first or how on we guys. have and maybe a been revenue margin, year-over-year on a year. full there's maybe probably And sales game congrats, know the some and and guide margin for you as as My just

modest But be would I you the some kind helpful? any compression. of other you that comments past, think in said expect

we revenues equipment to equipment. And mean, faster, couple not the years lot way lower COVID. much And with profile with in piece depressed sales expect comments access or compression want that game in recurring the in increase last has margin sales a a by I the being financial of gaming the guides in than to is Yes, of or our games obviously operators again, our frame a cash I healthy spending the and stuff much business. growth around ops the of

that the that just in there. healthy businesses recurring were because pretty pandemic periods some sales as the cause should up nice as bit the we expect to blended the downward So that growth [indiscernible] the of the because of I you we little of to move we side percentage of a you bit, But, see said. Again, little business. terms think and to XXXX, draft still compress we've picks a margin exceed had should equipment see a growth we probably expect into strength in revenue of experienced we've where

in if we low XXs, throughout forward not So, the progress the year. high probably XXs, you're as

and inflation, Yes, it's that the et overall just obviously, employee costs, I'd including cetera. say

So I'm think than with Mark, mixed rising costs. I it it's more necessarily, is

to in couple on there small is Atlas and any, for there's million not say but helpful. from a the if any in will ecash relatively contributions just clarify then dollars just Okay, guide, the color be inorganic are baked the and what guide

We're Yes, closed. I right. that's getting these exactly totally think working acquisitions on still

bit selling for of little million in a sale But shop might the as than Australian about more So now, that Atlas ecash a quarter that's contributing an you're EBITDA probably a drag development shops. it's probably be selling market of terms still -- U.S. a I the product, kind of is without right think of in dollars, open. bucks it's near-term looking

as you're net, million it'll U.S. that years. we meaningfully coming up periods picking So think in couple that today. the And up invest in expand pick the probably a business, we and in and business dollars

or not Okay, It call let's Mark $X or clear, included? be whatever, to is. is net million the call included it, that, is just outlook ecash it, the in

short relatively look, that certainly Yes, we here closing order. anticipate in

kind our couple it there, there. a to and the get that's got the to kind again, accelerate And range. opportunity end the extent you And get top there. takes everything. a we're sooner to And growth numbers, in So couple puts how of and of of in the million close that's got probably of able in dollars you've and you the

obviously, Okay, year's me top call just anything end, very million a at and I for think cash then this a question the good higher, touch to CapEx, last of flow free dollars of generation out commentary, side, supply the that'll kind chain was going it and specifically issues, forward, a on soon you CapEx run the to as as helpful? incredible good kind rate of be

we I'll mentioned business. sales. them little But one though ‘XX the questions, be light and spend I'll in equipment I'll under judicious Look, -- of if to choices pressures, the chain the spend the year the CapEx we year in through them as year in call as supply was made growing call I we Certainly with And both cap $XXX with take years ended you our there and a early are earlier, were we ‘XX, earlier of think, one just to relatively the even certainly we throughout I terms we the prioritize progress that million. John. for there, year. were for business,

guiding why So lift are when our a we bit there return of installed where That's for spend that the there's of forward. $XXX look we keep work a see you'll to as in bit next maximum from outstanding. $XXX of we have to for million year moving little base million, CapEx little at you deferred

as would as FinTech do more I as there'll bit John some expense that going there, have say a continues well, Darren to some and to R&D an going standpoint, we're on be the the we're of from things side. beginners to investments internally, there that well little the And make capitalized cap palaces

expecting? It's were those add than little higher maybe we're you So bit what's expecting your together. think we a why I

Okay. All right. Appreciate it as always. Thanks again, guys.

Thanks, JD.

Thanks John.

question. Jonas one will for Securities. Barry time And proceed. that Please with have final be We Truist

in filling for Also, to in my here congrats Patrick thanks you taking to start for new by wishing Randy, wanted guys, best Hey, question. we're saying your Also Mike. the congrats roles. for Barry,

Just couple a level May. on CapEx high by questions

operators to what think and what extent to a you happen to board? taking are needs on and see them larger approach get wait First

[indiscernible].

for again. towards that Once will in more and while the presuming up levels, in the quarters of I that think frame you before else it's it a happens to it that least is at But some bit the returns be again, little to that think this a significantly be other period reasonably refreshed aggressive. nothing operators Say in who upcoming other there have I will XXXX. XXXX best haven't way levels time going some to more

any there's that up, they'll see point know I you as and specifically I -- can look they're when think out a taking panic a it's And wait well. open

in know, they to it's refresh hard but performs. a see how So how see want I a year, was later -- the January the business be it was the on And to what may come said little their is slow. be convenient gate they ‘XX, come bit standpoint, but little we to a to out ‘XX still it'll you close of

So impact that. that may

that will cash side might to side uptake the and and you what kind flow how in the progression were there. think the to we referring And will of happen there if on be weigh cashless

move that obvious a is with to think-- I capital needed there Yes, the it's investment I strategy. mean, forward capital

with their operators are the going again of continued think the from growth which year that planning side I FinTech strategies, I a investments. see digital being think see us. lot for in business how including trends And is the So I but for of it's I part just you're so they're their side, the the say cashless and just would -- like game a think prudent a to

point, Oh, the if cash appreciate potential talked follow then opportunity? curious the updates expanding flows you some all could into Yes, at to for about frame you say will anything that's or a I any for just color great. to it. up, And non-gaming there see help else

at we Darren's beverage, entertainment, can because we if to jump or in on that any the and of only the floor, look in we cashless weeds all to online we online that continue And it. casino resort I obviously, of means look me food the those, cashless operation. can use side, mean, me virtually on Sure, let business throughout at use even retail let that hotel similar gaming. so is a portions casino

for that's absolutely, as you us. now an first, and from premise. The focus and available we beyond operational verticals are also -- so And at right really us, But other throughout question side, casino look what their opportunities where getting casino we're resorts. casinos just do and opportunities a getting we that, on the at to focused up, them look cashless the

much. so guys good luck. again Thanks and Congrats

Thanks.

Thanks Patrick.

question over turn Thank you. like would session. the our Mr. for to and Taylor This conference does remarks. answer back conclude to closing I

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conclude This today's Thank you. does conference.

may you at lines your You disconnect thank participation. time. And this your for