2. Disclaimer
2
Forward-Looking Statements; Non-GAAP Financial Measures
Throughout this presentation we make forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the âSecurities Actâ),
Section 21E of the Securities Exchange Act of 1934, as amended (the âExchange Actâ), and the U.S. Private Securities Litigation Reform Act of 1995. We have tried,
wherever possible, to identify such statements by using words such as âanticipate,â âbelieve,â âexpect,â âintend,â âestimate,â âproject,â âmay,â âshould,â âwill,â âlikely,â
âwill likely result,â âwill continue,â âfuture,â âplan,â âtarget,â âforecast,â âgoal,â âobserve,â âseek,â âstrategyâ and other words and terms of similar meaning. Because
forward-looking statements relate to the future, they are subject to inherent risks, uncertainties and changes in circumstances that are often difficult to predict and many
of which are beyond our control. Our actual results and financial condition may differ materially from those indicated in forward-looking statements. Forward-looking
statements include, but are not limited to, statements regarding the following matters: trends in gaming establishment and patron usage of our products; benefits
realized by using our products and services; product development, including the release of new game features and additional game and system releases in the future; and
regulatory approval; gaming regulatory, card association and statutory compliance; the implementation of new or amended card association and payment network rules;
consumer collection activities; future competition; future tax liabilities; future goodwill impairment charges; international expansion; resolution of litigation; dividend
policy; new customer contracts and contract renewals; future results of operations (including revenue, expenses, margins, earnings, cash flow and capital expenditures);
future interest rates and interest expense; future borrowings; and future equity incentive activity and compensation expense. Important factors that could cause our
actual results and financial condition to differ materially from those indicated in the forward-looking statements include, without limitation, expectations regarding our
existing and future installed base and win per day; expectations regarding development and placement fee arrangements; expectations regarding customersâ preferences
and demands for future gaming offerings; expectations regarding our product portfolio; the overall growth of the gaming industry, if any; our ability to introduce new
products and services, including third-party licensed content; gaming establishment and patron preferences; expenditures and product development; changes in gaming
regulatory, card association and statutory requirements; unanticipated expenses or capital needs; technological obsolescence; and those other risks and uncertainties
discussed in our most recent Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission.
Except as required by applicable law, Everi undertakes no obligation to update or publicly revise any forward-looking statement, whether written or oral, that may be
made from time to time, whether as a result of new information, future developments or otherwise. Readers are cautioned not to place undue reliance on forward-
looking statements, which are based only on information currently available to Everi and speak only as of the date of this communication. Our actual results and financial
condition may differ materially from those indicated in forward-looking statements.
Non-GAAP Financial Measures
In order to enhance investor understanding of the underlying trends in our business and to provide for better comparability between periods in different years, we are
providing in this presentation Adjusted EBITDA and Adjusted EBITDA Margin, which are not measures of our financial performance or position under United States
Generally Accepted Accounting Principles (âGAAPâ). Accordingly, these measures should not be considered in isolation or as a substitute for, and should be read in
conjunction with, our net earnings (loss), operating income (loss), basic or diluted earnings (loss) per share and cash flow data prepared in accordance with GAAP. Everi
defines Adjusted EBITDA as earnings (loss) before interest, taxes, depreciation and amortization, non-cash stock compensation expense, goodwill impairment charges,
accretion of contract rights, write-down of note receivable and warrant, loss on the sale of aircraft, acquisition and other costs related to mergers and purchase
accounting adjustments, separation costs related to the Companyâs former CEO, and manufacturing relocation costs less a benefit from one-time legal settlement
proceeds. Everi presents Adjusted EBITDA as it uses this measure to manage its business and considers this measure to be supplemental to its operating performance.
Everi also makes certain compensation decisions based, in part, on its operating performance, as measured by Adjusted EBITDA; and its credit facility and senior
unsecured notes require Everi to comply with a consolidated secured leverage ratio and a consolidated total leverage ratio that include performance metrics substantially
similar to Adjusted EBITDA. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by revenues. A reconciliation of Everiâs most directly comparable GAAP
measure to Adjusted EBITDA and Adjusted EBITDA Margin is included in Everiâs earning releases located on Everiâs website at ir.everi.com. Additionally, a reconciliation of
each segmentâs operating income (loss) to Adjusted EBITDA is also included. On a segment level, operating income (loss) per GAAP, rather than net earnings (loss) per
GAAP, is reconciled to Adjusted EBITDA as Everi does not report net earnings (loss) by segment. In addition, Adjusted EBITDA Margin is provided on a segment level.
Management believes that this presentation is meaningful to investors in evaluating the performance of Everiâs segments.
3. Industryâs Only Games & Payments Provider
3
The Only Single Source Provider of Engaging Games and Robust Payment Solutions
Games Payments
⢠Everi is dedicated to providing state-of-the-art video and mechanical reel gaming content and technology solutions,
integrated gaming payments solutions and compliance and efficiency software to casino operators
⢠LTM 3Q17 consolidated revenue of $944.6 million and consolidated Adjusted EBITDA of $210.9(1) million
⢠Only single source provider of complementary games and payments products
⢠Strong recurring revenues from substantial base of
leased and participation gaming machines plus sales of
gaming machines and related equipment
⢠Games provides the central
determinant system for the
~18,500 video lottery terminals
installed in the State of New York
⢠LTM 3Q17 revenue of
$220.4 million, Adjusted
EBITDA of $117.1(1) million and
Adjusted EBITDA Margin
of 53.1%(1)
⢠Provides cash access services (ATM, cash advance and
check warranty), equipment for cash access and related
services, and other information products (including
credit reporting, compliance and marketing solutions)
⢠Long-term contracts provide base
for strong recurring revenues for
nearly all Payments revenue
⢠LTM 3Q17 revenue of
$724.2 million, Adjusted EBITDA
of $93.8(1) million and Adjusted
EBITDA Margin of 13.0%(1)
1) Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures. Reconciliations to the most directly comparable GAAP measure can be found in applicable earnings
releases located on Everiâs website at ir.everi.com
4. Games Segment Overview
Strong Recurring Revenue Base, Robust Margins
⢠Revenue derived from revenue-sharing arrangements or
daily fixed fee lease arrangements
⢠13,215 gaming units (8,837 Class II and 4,378 Class III)
installed as of September 30, 2017
⢠Recently entered into long-term placement arrangements
covering nearly 50% of total Class II unit installed base for
approximately 7 years
⢠Supplies central determinant system for ~18,500 video
lottery terminals ("VLTs") at 11 locations in the State of New
York
Expanding Proprietary Class II and Class III Offerings
⢠Broad portfolio of gaming machine products, including
TournEvent and Wide-Area Progressive (âWAPâ) games
⢠New slot themes based on licensed, branded content
$207.0 $214.4 $213.3 $220.4
1.4%
3.6%
-0.5%
5.4%
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
$0.0
$50.0
$100.0
$150.0
$200.0
$250.0
2014 2015 2016 LTM 3Q17
Revenue
Revenue Revenue Growth %
4
Note: $ in millions; fiscal year ended December 31
$110.9 $116.0
53.6%
57.3% 54.4% 53.1%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
$0.0
$25.0
$50.0
$75.0
$100.0
$125.0
$150.0
2014 2015(2) 2016 LTM 3Q17
Adjusted EBITDA(1)
Adjusted EBITDA Adjusted EBITDA Margin %
$117.1
Premier Supplier of Exciting Games Across Multiple Platforms
1) Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures. Reconciliations to the most directly comparable GAAP measure can be found in applicable earnings
releases located on Everiâs website at ir.everi.com
2) Adjusted EBITDA for 2015 includes a gain of approximately $4.0 million from the sale of certain assets of PokerTek, which was purchased by Multimedia Games in 2014.
Excluding this gain, Adjusted EBITDA would have been $118.8 million and Adjusted EBITDA Margin would have been 55.4%.
3) Percentage growth represents growth for LTM 3Q17 versus LTM 3Q16
Gaming
Operations,
16%
Machine
Sales, 7%
Payments
Segment,
77%
LTM 3Q17 Consolidated Revenue
$4.0
$118.8
$122.8
(3)
5. Payments Segment Overview
Leading provider of gaming payments solutions in North
America
Long-term contracts provide significant recurring
revenue derived primarily from ATM cash withdrawal,
cash advance and check service fees
⢠Processed 96.3 million transactions totaling $24.4 billion in
cash to the floor in LTM 3Q17
Best-in-class provider of secure payments solutions
enhanced by fully integrated kiosks, credit reporting
services, compliance solutions and casino marketing
services
⢠Allows casinos to reduce labor, coin handling and cage
cash while enhancing compliance and security
$585.6 $612.6 $646.2
$724.2
0.5%
4.6% 5.5%
9.2%
-15.0%
-5.0%
5.0%
15.0%
$0.0
$200.0
$400.0
$600.0
$800.0
2014 2015 2016 LTM 3Q17
Revenue
Revenue % Growth
5
1) Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures. Reconciliations to the most directly comparable GAAP measure can be found in applicable earnings
releases located on Everiâs website at ir.everi.com
2) Percentage growth represents growth from LTM 3Q17 versus LTM 3Q16
$76.0 $77.6
$82.0
$93.8
13.0% 12.7% 12.7% 13.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
$0.0
$20.0
$40.0
$60.0
$80.0
$100.0
2014 2015 2016 LTM 3Q17
Adjusted EBITDA(1)
Adjusted EBITDA Adjusted EBITDA Margin %
Market Leading Provider of Cash Access and Compliance Products and Services
Note: $ in millions; fiscal year ended December 31
Games
Segment, 23%
Check
Services, 3%
Other, 5%
Cash Advance,
29%
ATM, 40%
LTM 3Q17 Consolidated Revenue
(2)
6. Summary of Recent Financial Performance
6
1) Adjusted EBITDA is a non-GAAP measure. Reconciliations to the most directly comparable GAAP measure for historical periods can be found in applicable earnings releases
located on Everiâs website at ir.everi.com
Revenue Adjusted EBITDA(1)
Note: $ in millionsNote: $ in millions
$166.0
$191.9
$56.2
$55.4
$0.0
$50.0
$100.0
$150.0
$200.0
$250.0
3Q16 3Q17
Payments Games
$637.2
$724.2
$209.2
$220.4
$0.0
$300.0
$600.0
$900.0
LTM 3Q16 LTM 3Q17
Payments Games
$22.4 $23.8
$29.2 $29.4
$0.0
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
3Q16 3Q17
Payments Games
$80.4 $93.8
$114.1
$117.1
$0.0
$50.0
$100.0
$150.0
$200.0
$250.0
LTM 3Q16 LTM 3Q17
Payments Games
1.4% Y/Y
Decline
15.6% Y/Y
Growth
5.4% Y/Y
Growth
13.7% Y/Y
Growth
0.7% Y/Y
Growth
6.3% Y/Y
Growth
2.6% Y/Y
Growth
16.8% Y/Y
Growth
$222.2
$247.3
$846.4
$944.6
$51.6 $53.2
$194.5
$210.9
Note: $ in millions Note: $ in millions
7. Key Recent Highlights & Wins
⢠Sold 817 units in 3Q17, up 4% Y/Y; sixth consecutive quarter of Y/Y unit sales growth
⢠Sold 2,721 units in first nine months of 2017, up 34% Y/Y
⢠3Q17 represented the sixth consecutive quarter of Payments revenue and Adjusted EBITDA
growth
⢠Strong level of new Payments customer wins, including new casino openings and competitive take-
outs, drive growth
⢠Twelfth consecutive quarter of same-store transactions and dollars processed growth
⢠Recently entered into agreement with largest customer in Oklahoma to consolidate and
replace prior placement fee arrangements covering approximately 4,300 Class II units for
period of 83 months beginning mid-July 2017
⢠Everi made $10.0 million cash payment in August 2017 and will pay approximately $5.6 million in
placement fees per quarter from January 2018 to July 2019
⢠Secures placement of approximately 48% of Class II installed base and approximately 32% of total
installed base
⢠Provides for greater visibility into future recurring revenue and Adjusted EBITDA
⢠Expanded ATM services in Canada at 29 properties in 3 provinces
⢠Growth in ATM business also includes surcharge increases at several large corporate customers
7
8. Key Recent Highlights & Wins (continued)
⢠Initial 2Q17 launch of Casablanca⢠themed game and 3Q17 Penn & Teller themed game on
WAP link for Class II markets
⢠Introduction of additional Class II video and mechanical reel WAP link content featuring licensed
brands expected beginning in 1Q18
⢠Over 230 units WAP-connected titles deployed as of September 30, 2017
⢠Class III LAP launch of Casablanca⢠themed game in July 2017 and Penn & Teller in
September 2017 with selected operator partners
⢠Company won Payments business for the last three major new casino openings (ilani, MGM
National Harbor, del Lago Resort & Casino)
⢠Everi Compliance revenues have increased 34% in first nine months of 2017 compared to the
similar year-ago period
⢠Indicative of growing need for Anti-Money Laundering (âAMLâ) and tax compliance solutions
8
9. Recently Completed Credit Transactions
⢠Refinanced former First Lien Term Loan and Senior Secured Notes in May 2017
⢠New $820 million Senior Secured Term Loan (the âTerm Loanâ) resulted in approximately $8.0 million in annualized
cash interest savings
⢠Repriced the Term Loan on November 13, 2017
⢠Reduced interest rate by 100 basis points to LIBOR + 3.50% and added six months of 101 soft call protection. LIBOR
floor remains unchanged at 1.00%.
⢠Results in approximately $8.2 million of additional annualized cash interest savings based on current interest rates
and Term Loan balance outstanding of $818.0 million.
⢠Maturity date remains May 9, 2024.
⢠Expected to close on $375 million of new Senior Unsecured Notes on December 5, 2017
⢠Proceeds and cash on hand will be used to refinance the Companyâs existing $350 million 10.0% Senior Unsecured
Notes in their entirety, pay early redemption premium and pay associated transaction fees and expenses
⢠Priced at 7.5%, a 250 basis point reduction from former Senior Unsecured Notes
⢠Optional redemption of Notes includes Non-Call 3, with first call at 103.75 on December 15, 2020,with subsequent
premiums declining ratably to par at December 15, 2022; 40% equity claw-back
⢠Results in approximately $6.9 million of annualized cash interest savings based upon interest rates in effect on the
closing of the refinance transaction
⢠Pro Forma for the transactions, Consolidated Secured Leverage(1) will be 3.6x and
Consolidated Total Leverage(1) will be 5.4x based on LTM 3Q17 Adjusted EBITDA of
$210.9(2) million
9
1) Pursuant to the credit agreement governing the Term Loan and the indenture governing the Senior Unsecured Notes, the amount of cash that can be netted against our funded
debt for purposes of calculating our Consolidated Secured Leverage Ratio and our Consolidated Total Leverage Ratio is capped at $50.0 million
2) Adjusted EBITDA is a non-GAAP measure. Reconciliations to the most directly comparable GAAP measure for historical periods can be found in applicable earnings releases
located on Everiâs website at ir.everi.com
10. Pro Forma Capitalization Upon Closing of
Senior Unsecured Notes Offering
10
Pro Forma Capitalization ($mm) Pro Forma Credit Statistics ($mm)
1) Based upon 66.9 million shares outstanding and $8.74 closing price as of November 20, 2017.
2) Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures. Reconciliations to the most directly comparable GAAP measure can be found in applicable earnings releases located on
Everiâs website at ir.everi.com.
3) Interest expense includes the annualized cash paid for interest on outstanding debt obligations at rates in effect at September 30, 2017 and pro forma for the closing of the Senior Unsecured
Notes Offering plus annualized estimate of the cash usage fees paid pursuant to the Contract Cash Solutions Agreement. Assumed underlying LIBOR for calculation is 1.33%.
4) Pursuant to the credit agreement governing the Term Loan and the indenture governing the Senior Unsecured Notes, the amount of cash that can be netted against our funded debt for
purposes of calculating our Consolidated Secured Leverage Ratio and our Consolidated Total Leverage Ratio is capped at $50.0 million
Pro Forma
9/30/17 At Close
Revolving Credit Facility ($35 million) - -
First Lien Term Loan $818 $818
Secured Debt $818 $818
Senior Unsecured Notes 350 375
Total Debt $1,168 $1,193
Market Capitalization(1) 585 585
Total Capitalization $1,753 $1,778
Pro Forma
9/30/17 At Close
LTM 3Q17 Adjusted EBITDA(2) $211 $211
Adjusted EBITDA/PF Cash Interest Expense 2.4x 2.9x
Consolidated Secured Leverage Ratio(3) 3.6x 3.6x
Consolidated Total Leverage Ratio(4) 5.3x 5.4x
11. Extensive Reach and Scale
11
Everi is Now Licensed in Over 200 Jurisdictions and Serves Over 1,000 Gaming Properties Globally
Core Cash Access
Gaming Segment
⢠Installed base of leased and participation games includes 13,215 units as of September 30, 2017
⢠Licensed in every major jurisdiction in North America
⢠Recently expanded Games and Payments presence to multiple provinces in Canada
⢠Premium game installations, which include WAP and licensed products, have ramped to 18% of installed base
⢠New WAP platform expected to accelerate further premium installations
Payments Segment
⢠Market-leading, best-in-class provider of integrated gaming payments solutions in North America
⢠Processed 96.3 million transactions totaling $24.4 billion in dollar volume in LTM 3Q17
⢠Standard ATM
⢠3-in-1 ATM
⢠Cash Advance
⢠Check Warranty
Everi Has Expanded its Footprint and Diversified its Geographic Reach
Equipment/Kiosks
⢠Fully Integrated 3-in-1 Kiosks
⢠Jackpot Processing
⢠Stand-Alone Kiosks
⢠Mobile Tablets
Information Services
⢠Central Credit
⢠Marketing
⢠Anti-Money Laundering and
Tax Compliance Software
12. Strong Record of Technology Innovation
12
TournEvent
⢠Industry leading, award-winning slot tournament system cited
as the marketâs best slot tournament solution by 61% of
respondents(1)
State of New York VLT System
⢠Developed one-of-a-kind central determinant system for the NY
Lottery, which interfaces with, provides outcomes to, and
manages approximately ~18,500 VLTs at 11 locations
Wide-area Progressive
⢠Development of WAP platform to support branded and
proprietary game links in the Class II and Class III markets
Game Development Studios
⢠Strong game development capabilities, with studios in Austin,
Chicago and Reno
⢠Strategically targeting third-party content such as Casablanca,
Penn & Teller, Fruit Ninja, Buffy the Vampire Slayer, Willie
Nelson, and the Brady Bunch which lend themselves to player
recognition and appeal through innovative game play
Premium Products
⢠Introduced HD dual screens, LCD panels and new top box
technology, growing premium cabinets to 18% of installed base
⢠Developed Everi Betâ˘, a bet configuration software feature that
was named to Casino Journalâs Most Innovative Gaming
Technology Products for 2015
Games
1) EILERS-FANTINI Slot Survey â 4Q16.
13. Strong Record of Technology Innovation
13
Dedication to Network Infrastructure and Security
⢠Strategic investments in infrastructure and security make Everi a
best-in-class provider of secure payments solutions
⢠First casino industry payments provider to be fully end-to-end
Europay, MasterCardÂŽ and VisaÂŽ (âEMVâ) compliant
Innovative Solutions and Enhancements
⢠Developed 3-in-1 Rollover ATM technology which drives
incremental cash to the casino floor
⢠UniversalXchange with Universal Integrated Management
provides enhanced platform for Everiâs fully integrated kiosk
solutions
⢠Jackpot Xpressâ˘, recognized as one of Casino Journalâs Top 20
Most Innovative Technology Products for 2016, allows for
efficient mobile-based slot jackpot processing
⢠CageXchange⢠and RecyclerXchange⢠cash management
solutions designed to accelerate transaction speed and
efficiency, improve cage count accuracy and enhance the overall
customer experience
⢠Everi Cares⢠Giving Module creates opportunity for patrons to
give to charities while reducing coin handling on the casino floor
Evolving Digital Capacity
⢠CashClub Wallet⢠decentralizes payments throughout the
gaming enterprise and offers an enhanced, streamlined player
experience and reduced cash footprint for operators
Payments
14. Successfully Executing on Business Plan
14
Leveraging Long-Term Customer Relationships Across Games and Payments
2015
Scarlett Pearl
⢠New customer
⢠3Q15
⢠Cash Access product suite
⢠76 games sold and/or leased
Desert Diamond Casinos &
Entertainment
⢠New Payments / existing
Games customer
⢠3Q15
⢠Cash Access product suite
⢠214 games sold and/or leased
2016
Alberta Gaming & Liquor
Commission
⢠New Games / existing
Payments customer
⢠3Q16
⢠248 games sold and/or leased
MGM National Harbor
⢠New casino / existing
customer
⢠3Q16
⢠Cash Access product suite
⢠80 Games sold and/or leased
2017
Ilani
⢠New customer
⢠1Q17
⢠Cash Access product suite
⢠150 Games sold and/or leased
Expanding the Product Offering
⢠Expansion of Games offering to include new hardware options (e.g. Core HDX and Empire HDX cabinets), licensed and
branded premium game content, WAP products and digital / interactive offerings
⢠New Payments products to complement existing core cash access services including CageXchange⢠and
RecyclerXchange⢠cash management solution, Jackpot Xpressâ˘, CashClub Wallet⢠and the Everi Cares⢠Giving Module
15. 2017 Outlook(1)
⢠2017 Adjusted EBITDA(2) expected to be at high end of previously
provided range of $209 million - $212 million
⢠Factors in Companyâs 2017(3) outlook include:
⢠2017 unit sales expected to increase approximately 20% Y/Y with unit sales for 4Q17
expected to be comparable with prior year period sales of 920 units
⢠Installed base at December 31, 2017 is expected to grow Y/Y
⢠Company expects to continue to benefit from growth in the premium unit installed base,
including expected growth in Jackpot Lockdown⢠Class II WAP units and new premium
licensed brands that will also be offered as Class III LAP games that will be introduced over
the remainder of 2017.
⢠Company does not expect any material additional Class II unit removals from certain
California tribal customer facilities in the fourth quarter of 2017.
⢠Company expects daily win per unit (âDWPUâ) in 4Q17 to approximate DWPU from year-ago
period and expects revenue from the installed base portion of gaming operations in 4Q17
will exceed the installed base revenue generated in 4Q16
⢠4Q17 Payments segment revenue is expected to increase in the low-double digits Y/Y and
Adjusted EBITDA(2) is expected to grow in the mid-single digits compared to 4Q16.
15
1) The Company provided this 2017 Outlook in its earnings release dated as of October 30, 2017. The Companyâs practice it to provide its outlook, and any applicable updates, in
connection with its quarterly earnings releases. This slide reflects our outlook as of October 30, 2017 and, in accordance with our practice, is not intended, and should not be
construed, as re-affirming or updating such guidance
2) Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures. Reconciliations to the most directly comparable GAAP measure can be found in applicable earnings releases
located on Everiâs website at ir.everi.com
3) The Company provided additional financial metrics for 2017 as part of the Third Quarter earnings press release, which is available on Everiâs website at ir.everi.com
16. Investment Highlights
16
Successfully Executing on Business Plan
Experienced and Seasoned Leadership
Extensive Reach and Scale
Highly Differentiated, Complementary Products
Strong Track Record of Technology Innovation
Stable and Diversified Recurring Revenue Business
Powerful, Long-Term Customer Relationships
Significant Barriers to Entry