Everi Holdings Inc.

Hello, everyone. Thank you for standing by. And welcome to the Every Holdings, Inc. Second Quarter 2023 Earnings Conference Call. During today's presentation, all parties will be in a listen-only mode. Following the prepared remarks, the call will be open for a question-and-answer session. As a reminder, this call is being recorded. Now, let me turn the call over to Ms. Jennifer Hill, Vice President of Investor Relations. Please go ahead.

Thank you, Operator. Let me begin with a reminder that our Safe Harbor Disclaimer, which covers today's call and webcast, contains forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those discussed on today's call. These risks and uncertainties include but are not limited to those contained in our earnings release today and in other SEC filings, which are posted in the investor section of our corporate website at every.com. Because of the potential risk, you are cautioned not to place undue reliance on forward-looking statements. We do not intend and assume no obligation to update forward-looking statements which are made only as of today, August 9th, 2023. We will refer to certain non-GAAP financial measures such as adjusted EBITDA, adjusted EPS, free cash flow, and net cash position. A description of each of these non-GAAP measures and a reconciliation to the most directly comparable GAAP measure can be found in our earnings release and related 8K today. as well as in the Investor section of our website. This call is being webcast and recorded. A link to the webcast and a replay of today's call can be found in the Investor section of our website. On our call today are Landi Taylor, Chief Executive Officer, Mark Labai, Chief Financial Officer, Kate Molenhauer-Fisher, General Counsel, Dean Ehrlich, Games Business Leader, and Darren Simmons, FinTech Business Leader. Now I will turn the call over to Randy.

Thank you, Jennifer. Good morning, and thank you all for joining us. The quarter we reported revenue of $208.7 million, adjusted EBITDA of $96.1 million, and free cash flow of $47.7 million. This brings our year-to-date free cash flow to $87.7 million. During the second quarter, we used the free cash flow generated along with cash from our balance sheet to acquire certain assets of VideoKing and to return $40 million to shareholders through share repurchase. Our fintech business continued its strong revenue growth with a 13% increase over the prior year period. Our games business revenue was relatively flat as compared to the prior year, primarily due to lower unit sales in Q2 of 2023. Our unit sales in the quarter compared to a strong year for new openings and expansions in 2022. Our fintech business continues to perform well with strong double-digit revenue growth driven by growth in dollars delivered to the casino floor for our customers and the expansion of products and services to new and existing customers. This creates a green field of growth opportunity that we believe will provide a runway of high single-digit revenue growth for the full year and is driven by a healthy pipeline of existing signed orders across our diverse, high recurring revenue product line, including payments, reg tech, loyalty, and mobile solutions. As we reinvest for growth, we are executing on our multi-year strategy that centers around maximizing value to both the patron, and the operator through our digital neighborhood of interconnected touch points, which we expect will grow our total addressable market. We are also expanding financial access services across attended, self-service, and mobile channels. We can now fully enable cashless across the casino floor without the need for signups in external apps or through slot system integrations. By leveraging Concierge, our mobile payment product, Quick Ticket, our cashless purchase of a traditional gaming voucher, and now Quick Transfer, which allows patrons to deposit their slot tickets directly back to their bank card, we extend cashless at the tables, slots, and our full-service kiosks. Our digital wallet continues to gain traction, and we work closely with our customers as they adopt digital and cashless capabilities to provide new financial access products and services to their patrons. The wallet data is compelling with the most mature installed properties showing that the wallet accounts for more than 10% of their overall cash to the floor, and the majority of patrons using the wallet have shown a 2.5 times increase in their number of transactions per visit and a 15% to 20% more dollars spent per visit. We've already added additional revenue-generating payment types, including Apple Pay, PayPal, and Quick Transfer, and expect this to grow as patron acceptance of the wallet increases. We remain bullish on the opportunities to grow our business with our recent acquisitions, including eCash, which should drive long-term growth in North American distributed gaming markets. Venue Ties is also contributing to our ongoing mobile-first initiatives that will grow our base of recurring revenues and expand our market into sports, venues, entertainment, retail, hotel, food and beverage by leveraging our combined capabilities with payments and loyalty. All of this will be on display at G2E demonstrating our gold standard digital ecosystem of mission-critical products and services. In our games business, we are executing on our extensive new product roadmap. We are moving forward with the introduction of our next generation family of new premium and for sale cabinets over the next several quarters. At the end of the first quarter, we began selling the first cabinet in our next generation family of cabinets, the Dynasty View. With this new for sale cabinet and a growing portfolio of game themes, we expect sales of Dynasty View to continue to ramp and be an increasing contributor to our game sales in the future. Building on this foundation of additional hardware, we will introduce our next for sale cabinet, the Dynasty Soul and T2E in October. The Dynasty Soul is a portrait-based cabinet with a 49-inch curved screen that includes a more integrated button panel and our most powerful CPU to date. This cabinet will be available for sale beginning in the fourth quarter. However, as we mentioned in our first quarter call, we are seeing slight near-term headwinds. In the for-sale category, these headwinds reflect the highly competitive dynamics of our industry in both video and mechanical games. For example, two of the largest suppliers with a history of success in the mechanical reel segment have introduced new cabinets for the first time in many years. With the continued great performance of our high-denom and low-denom mechanical real games, we expect to continue to be a leader in this segment. Our game content and cabinet roadmap for both video and mechanical games should provide longer-term growth in all our game segments, despite the increased competition. Consistent with the first quarter of 2023, premium cabinets in our installed base continue to experience a slightly higher churn than we originally anticipated. We expect to launch our new premium Dynasty Dynamic and PC Reserve cabinets late in the third quarter. The introduction of these two cabinets was accelerated in our hardware plan so that we could introduce them both ahead of G2E and provide new cabinets, premium cabinets for our install base. Our G2E game content will include the first new game themes developed by our studio in Australia, And we believe this differentiated content will be a great addition to our portfolio of games in the U.S. With a tremendous number of new products in both cabinets and game themes, we are looking forward to another successful showing at G2E. We will continue to utilize a portion of our strong free cash flow to make internal investments in game development, our fintech digital neighborhood, and adjacent categories to set us up well for the future growth. The strategy has returned a 30% year-over-year increase in digital game content revenues as we continue to scale that business. Our cast deployment has also allowed us to expand into Bingo with our acquisition of Video King, continue our expansion into historical horse racing, propel our planned entrance into the distributed gaming markets in 2024, and support the expected launch of Vi, our omnichannel mobile gaming payments and loyalty platform. On May 1st, we closed our asset acquisition of VideoKing, which provides an opportunity for every to leverage our sales force and relationships to grow the existing business and ultimately expand our gaming content into an additional platform. The integration of these assets is well underway. We have already begun to add new customers during the second quarter, and we have seen increased interest from existing every customers in our new bingo products. We expect to continue to integrate every product with those acquired from VideoKing, including offering side games on the Bingo tablets, integrations into kiosks, and ultimately the addition of our cashless wallet solutions to provide incremental growth opportunities. Now let me turn the call over to Mark, who will provide more insight into our second quarter financials and current outlook for the remainder of the year.