Everi to Consolidate and Streamline Production Facilities

Rhea-AI Summary

Everi Holdings Inc. (NYSE: EVRI) announced the construction of a new facility in Las Vegas intended to consolidate its production and distribution operations currently split between Las Vegas and Austin, TX. This 182,500-square foot facility, set to be completed by October 2023, will enhance operational efficiencies in manufacturing gaming machines and FinTech products. The transition will incur approximately $4.5 million in expenses. The facility will emphasize environmental sustainability, aiming for a 3 Green Globes rating, and is designed to support employee wellness. 35 employees affected by the transition will have relocation options.

Positive

• New facility in Las Vegas expected to streamline operations and enhance production efficiency.
• The facility aims for a 3 Green Globes sustainability certification, enhancing corporate social responsibility.
• Transition supports long-term operational needs and growth potential.

Negative

• Expected expense of $4.5 million related to the transition could impact short-term financials.
• 35 employees will be affected by the relocation, potentially impacting workforce morale.

New Facility in Las Vegas to Consolidate Production and Distribution Facilities Currently Located in Las Vegas, NV and Austin, TX

LAS VEGAS, Feb. 28, 2023 /PRNewswire/ -- Everi Holdings Inc. (NYSE: EVRI) ("Everi" or the "Company") announced today that it has begun construction of a new facility that upon completion will consolidate the manufacturing, assembly and distribution of its gaming machines currently done in Austin, TX with its self-service fully integrated cash access kiosks, loyalty kiosks and other FinTech products currently assembled in Las Vegas. The new Las Vegas facility, which will adhere to high levels of environmental and sustainable stewardship during construction and operation, is expected to streamline production and simplify supply chain processes and the distribution of completed products to customers.

The Company currently expects it will record approximately $4.5 million of expense in 2023 related to planned closure and exit costs, relocation, employee retention, and other associated costs for transition of production to the new facility.

The new 182,500-square foot leased facility is located in Las Vegas, the epicenter of the U.S. Gaming industry. In addition to production, receiving and shipping, the new facility will include space to co-locate lab facilities for both Games and FinTech businesses, house service and customer installation teams and administrative staff, and have room for future expansion to accommodate expected growth in the business.

Built for environmental sustainability and as an employee-friendly workplace
The building is expected to be completed in October 2023 and is being built to Everi's specifications to encompass high levels of environmental sustainability and create an employee-friendly working environment. The facility is anticipated to meet the certification level of 3 Green Globes science-based rating system established in accordance with the Green Building Initiative, which demonstrates outstanding success in resource efficiency, reducing environmental impacts and improving occupant wellness. The building will utilize such elements as low-water landscaping, energy-efficient windows, automated LED lighting, high-efficiency plumbing, energy-usage tracking, and solar powered energy to lessen the environmental impact of the building. Occupant wellness features include energy-efficient HVAC that will provide four-season thermal comfort to employees throughout the building, including the manufacturing and distribution areas, low-VOC interior products, shaded parking for all employees, electric recharging stations for vehicles, and waste recycling containers.   

Assembly of the Company's FinTech products at the current Las Vegas facility is expected to transition to the new facility shortly after completion of the building. Production of gaming machines currently done in Austin is expected to transition to the Las Vegas facility in stages over six months following its completion to ensure seamless distribution of products to customers.

"As we assessed our near- and long-term operational needs, it was clear that streamlining all of our manufacturing, assembly and distribution processes into a single facility designed to our specifications would best serve the needs of our large and growing casino customer base," said Randy Taylor, President and Chief Executive Officer of Everi. "Having all of our FinTech and Gaming products assembled and shipped from one new, modern, environmentally-friendly facility in Las Vegas will provide for operational efficiencies while also helping us continue to meet our goals of providing excellent customer service throughout the entire product ordering process."

There are 35 employees affected by the transition, and they are being offered the opportunity to relocate to Las Vegas or to apply for other positions within the Company.

"We have the highest regard for our Austin employees who will be impacted by this initiative. We greatly value their contributions and will strive to make any transition as painless as possible," Taylor concluded. 

Cautionary Note Regarding Forward-Looking Statements
This press release contains "forward-looking statements" as defined in the U.S. Private Securities Litigation Reform Act of 1995. In this context, forward-looking statements often contain words such as "intends," "anticipates," "seek," "expect," "plan," "believe," "goal," "target," "future," "estimate," "may," "should," "well positioned" or "will" and similar expressions to identify forward-looking statements. Forward-looking statements in this press release include, among other things, statements with respect to the anticipated timing for the completion of the transaction and the expected benefits of the transaction, including market share and future operating and financial results.

The forward-looking statements in this press release are subject to additional risks and uncertainties, including those set forth under the heading "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our filings with the Securities and Exchange Commission (the "SEC"), including, without limitation, our Annual Report on Form 10–K for the fiscal year ended December 31, 2021, and subsequent periodic reports, and are based on information available to us on the date hereof. These cautionary statements qualify our forward-looking statements, and you are cautioned not to place undue reliance on these forward-looking statements. Any forward-looking statement contained herein speaks only as of the date on which it is made, and we do not intend, and assume no obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

This press release should be read in conjunction with our most recent reports on Form 10–K and Form 10–Q, and the information included in our other filings with the SEC. Understanding the information contained in these filings is important in order to fully understand our reported financial results and our business outlook for future periods.

About Everi
Everi's mission is to lead the gaming industry through the power of people, imagination, and technology. As one of the largest suppliers of technology solutions for the casino floor that also has an expanding focus in adjacent industries, our commitment is to continually develop products and services that provide gaming entertainment, improve our customers' patron engagement, and help our customers operate their businesses more efficiently. We develop entertaining game content, gaming machines, and gaming systems and services for land-based and iGaming operators. Everi is a leading innovator and provider of trusted financial technology solutions that power casino floors, improve casinos' operational efficiencies, and fulfill regulatory compliance requirements. The Company also develops and supplies player loyalty tools and mobile-first applications that drive increased patron engagement for our customers and venues in the casino, sports, entertainment, and hospitality industries. For more information, please visit www.everi.com, which is updated regularly with information about the Company.

Investor Relations Contacts:

Everi Holdings Inc	JCIR
William Pfund	Richard Land, James Leahy
SVP, Investor Relations	212-835-8500 or evri@jcir.com
702-676-9513 or william.pfund@everi.com
Everi Media Relations
Dona Cassese	Mike Young
VP, Marketing	Corporate Communications Specialist
(702) 556-7133 or dona.cassese@everi.com	(702) 518-9179 or mike.young@everi.com

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SOURCE Everi Holdings Inc.

FAQ

What is the new facility for Everi Holdings Inc. in Las Vegas?

The new facility will consolidate production and distribution operations for gaming machines and FinTech products.

How much will Everi spend on the consolidation process?

Everi expects to incur approximately $4.5 million in expenses related to the transition.

When will the new Las Vegas facility be completed?

The new facility is expected to be completed by October 2023.

How many employees will be affected by the transition to the new facility?

A total of 35 employees will be impacted by the relocation.

What certification is the new facility at Everi aiming for?

The new facility aims to achieve a 3 Green Globes sustainability certification.