Everi Holdings Inc President and CEO Michael Rumbolz has cut his pay to zero and the remainder of the executive team by 70% in a bid to drastically reduce expenses during the COVID-19 pandemic.
The gaming technology and loyalty solutions provider revealed on Tuesday that the reduction of executive salaries would enable Everi to keep payroll expenses to less than US$2 million per month, while the company has also drawn down US$35 million on its revolving credit facility to provide additional near-term liquidity.
The measures come as the American Gaming Association revealed that every commercial casino and most tribal casinos in the United States will have shut its doors as of midday on Wednesday, comprising 973 of the nation’s total 989 casinos. Casinos across most of Europe, the Philippines, Australia, New Zealand and elsewhere also remain closed due to the coronavirus.
“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,” said Rumbolz.
“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.
“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.”
Everi has withdrawn its 2020 guidance provided on 2 March.