Everi Holdings Inc. has recently made the decision to terminate its stock repurchase program effective May 2, 2024, according to an announcement by the company. The program, which was approved by the Company’s Board of Directors on May 3, 2023, allowed for the repurchase of up to $180 million of the Company’s common stock. Under the program, Everi repurchased 7.5 million shares of common stock for a total of $100 million.
The remaining availability under the Stock Repurchase Program as of December 31, 2023, was $80 million. However, the company has not made any further repurchases since that date. The termination of the stock repurchase program comes as Everi continues to evaluate its financial strategy and allocate resources in line with its business goals.
In addition, Everi has implemented a mandatory sell-to-cover policy to handle tax withholding obligations related to the vesting and settlement of restricted stock units (RSUs) and performance stock units (PSUs). This new policy replaces the company’s previous practice of withholding shares. The change is aimed at retaining cash for the purpose of a potential special dividend.
The decision to implement the sell-to-cover policy will result in Section 16 officers being required to file a Form 4 to report the sale of a portion of their company stock for tax withholdings. This represents a shift from previous years when the company withheld shares to cover tax obligations.
Everi Holdings Inc. is a leading supplier of technology solutions to the casino industry, with a focus on developing innovative gaming content, machines, and systems. The company also provides financial technology solutions and player loyalty tools to enhance the overall casino experience and operational efficiency.
For more information about Everi, its products, and services, visit their official website at www.everi.com. Investors and stakeholders can also access relevant documents related to the company and the proposed transaction with IGT and Spinco through the Securities and Exchange Commission’s website at www.sec.gov.
Everi Holdings Inc.’s announcement to terminate its stock repurchase program raises several questions and potential implications in the market. Let’s explore some of the key aspects and discuss the advantages and disadvantages associated with this decision.
1. Why did Everi terminate the stock repurchase program?
The article does not provide specific reasons for the termination of the program. However, it mentions that Everi is evaluating its financial strategy and allocating resources in line with its business goals. This suggests that the company is reassessing its capital allocation priorities and may be prioritizing other strategic initiatives.
2. What are the advantages of terminating the stock repurchase program?
By terminating the program, Everi can reallocate the funds previously allocated for stock repurchases to other strategic areas of the business. This could include investments in research and development, acquisitions, debt repayment, or returning capital to shareholders through dividends. By evaluating its financial strategy, Everi aims to optimize its resources in alignment with its business goals.
3. What are the disadvantages of terminating the stock repurchase program?
Terminating the stock repurchase program may indicate that Everi does not currently see value in buying back its own shares. This could be interpreted by some investors as a lack of confidence in the company’s future prospects. Additionally, the absence of a stock repurchase program may limit the potential for share price appreciation, as repurchases often help reduce the supply of shares in the market.
4. What are the current market trends and forecasts for Everi and the casino industry?
The article does not provide specific insights into current market trends or forecasts for Everi. However, it is worth noting that the casino industry has experienced significant disruptions due to the COVID-19 pandemic. As restrictions ease and consumer confidence improves, there may be opportunities for growth in the industry. Market trends such as the adoption of cashless gaming systems, enhanced player loyalty programs, and the expansion of online gambling platforms could also impact Everi’s market position.
5. What are the key challenges or controversies associated with Everi’s decision?
Without additional information, it is challenging to identify specific challenges or controversies associated with Everi’s decision to terminate the stock repurchase program. However, such decisions can sometimes face criticism from shareholders who may have expected a stock buyback to enhance shareholder value. Additionally, the absence of a stock repurchase program may impact investor sentiment and potentially lead to increased volatility in Everi’s stock price.
To stay updated on Everi’s latest developments, products, and services, you can visit their official website at www.everi.com. For investors and stakeholders interested in relevant documents, including the proposed transaction with IGT and Spinco, the Securities and Exchange Commission’s website provides access to such information. Simply visit www.sec.gov for more details.