Everi Holdings raises FY17 adjusted EBITDA to $209M-$212M
The updated outlook reflects the following key assumptions: the Company continues to expect that full year unit sales for the Games segment will increase 12%-15% from the 2,954 units sold in 2016. Unit sales for the second half of 2017 are expected to be less than the 1,703 units sold in the second half of 2016 as unit sales in the second half of 2016 benefited from 200 units sold to the Alberta Gaming and Liquor Commission in the Q3 of 2016, as well as from a solid level of unit sales to several new casinos that opened in the second half of 2016 with no comparable level of new casino openings expected in the second half of 2017. The installed base for the Games segment at December 31 is expected to be higher than the reported installed base at December 31, 2016. The Company expects to benefit from the continued rollout of its Jackpot Lockdown Class II wide-area progressive product. This growth in the installed base over the balance of 2017 includes the expectation that the Company's remaining third-party Class III units will not change materially throughout the rest of the year and that an estimated 200 Class II units will be removed from certain tribal customer facilities due to changes in tribal gaming compacts with the State of California over the remainder of the year. Based on the expected growth in the Company's installed base in the Q3 and Q4, the expected growth in placements of higher performing WAP and other premium units, and the lessening impact from removals of higher performing third-party Class III units than in prior periods, the Company expects an improvement in the DWPU performance in the second half of 2017 and believes revenue from the installed base portion of gaming operations in the second half of 2017 will exceed the installed base revenue generated in the first half of 2017. Quarterly revenue and Adjusted EBITDA for the Company's Payments segment is expected to grow year over year. The Company expects growth in Payments segment revenues in the mid-single digits and growth in Adjusted EBITDA in the low single digits compared to the second half of 2016. These growth percentages also reflect several new casino wins in the second half of 2016 that have their first anniversary of service in the second half of 2017.