Everi CEO cuts own salary to keep company liquid during downturn
Las Vegas-based Everi Holdings Inc. has furloughed employees, cut salaries and CEO Michael Rumbolz cut his pay to zero in response to the coronavirus outbreak.
The gaming equipment manufacturer said Tuesday that it drew down $35 million of credit and has canceled or delayed capital expenditures to preserve the company’s liquidity.
“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,” Rumbolz said in a release.
In addition to Rumbolz eliminating his salary, the company’s executive team reduced salaries by 70 percent. The company said the effect of those actions lowered the company’s future cash payroll expense to less than $2 million per month.
“The changes we have had to make across our operations are not easy for those impacted,” Rumbolz said. “I, the senior management team and our board of directors are committed to doing whatever is necessary to ensure Everi comes out in a solid position on the other side of this crisis.”
Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on Twitter.
This story has been updated to correct the amount Everi Holdings Inc. had drawn down in credit.