USA – A slot machine and financial equipment maker based in Las Vegas, Nevada; Everi Holdings, has today announced a series of drastic measures to mitigate the impact of coronavirus, including president and chief executive officer Michael Rumbolz cutting his pay to zero and other executive team members taking a seventy percent cut.
According to reports, the measures are drastic, but necessary for the firm to reduce the expenses during the current Covid-19 pandemic to less than two million dollars per month.
In addition, the company, which is the leading gaming industry supplier of Anti-Money Laundering (AML) compliance software, has drawn down thirty-five million dollars of credit to provide sufficient liquidity to see it through the pandemic.
Michael Rumbolz commented on the news:
“As we face the challenges presented by COVID-19, the health and welfare of our teams, our customers, their guests and people everywhere are of our utmost concern. While revenue for the first two months of the year increased in line with our forecast compared to the same two-month period a year ago, our customers’ ability to operate has been severely impacted by the nearly universal directives to close facilities across North America to protect the public.”
Everi Holdings, previously named Global Cash Access, expanded into the slot machine business by purchasing Texas-based slot maker Multimedia Games for $1.2 billion in 2014, stated:
“With essentially all revenue and the associated workload having been reduced to near zero and limited visibility as to when our customers may reopen for business, we have taken decisive actions appropriate for the current level of business and to prepare our Company to withstand a potentially prolonged period of minimal industry activity.”
“Consequently, we believe these actions are the appropriate steps to preserve our liquidity and manage our business in the current environment. We expect these to be temporary but prudent steps designed to ensure that Everi is best positioned to withstand this disruption and will be prepared to support our customers once they begin to reopen their facilities. We are also reviewing options to obtain additional capital resources on acceptable terms to provide additional financial flexibility.”