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Everi Holdings Inc (NYSE:EVRI)
Q1 2019 Earnings Call
May. 7, 2019, 5:00 p.m. ET

Contents:

  • Prepared Remarks
  • Questions and Answers
  • Call Participants

Prepared Remarks:

Operator

Good day, and welcome to the Everi Holdings Incorporated First quarter 2019 Earnings Conference Call. Today's conference is being recorded.

At this time, I'd like to turn the conference over to Mark Labay, Senior Vice President, Finance and Investor Relations. Please go ahead, sir.

Mark Labay -- Senior Vice President, Finance and Investor Relations

Thank you, and welcome to the call. Joining me today are Mike Rumbolz, our President and CEO, Randy Taylor, our CFO, Dean Ehrlich, our Games Business Leader, Darren Simmons, our FinTech Business Leader and Harper Ko, our Chief Legal Officer and General Counsel.

Before we begin, I'd like to remind everyone that the safe harbor disclaimer in our public filings covers this call and our webcast. Some of the comments to be made during this call contain forward-looking statements and assumptions, which are subject to risks and uncertainties, including, but not limited to, those contained in our SEC filings. All of these filings are posted within the Investor Relations section of our corporate website.

These events could cause actual results to differ materially from those described in our forward-looking statements, and they should not be considered an indication of future performance. We do not intend and assume no obligation to update any forward-looking statements. You're cautioned not to place undue reliance on forward-looking statements, which speak only as of today.

This call may also refer to certain non-GAAP measures, such as adjusted EBITDA, adjusted EBITDA margin and free cash flow. We reference these non-GAAP measures because management uses them, in part, to manage the business and to enhance investor understanding of the underlying trends in our business.

These measures also provide better comparability between periods and different years. A full reconciliation of the non-GAAP measures of adjusted EBITDA and free cash flow to their GAAP results is provided in our earnings release and related 8-K, both of which have been filed with the SEC and are available on our corporate website at everi.com within the section captioned Investors

On this call, we may also reference adjusted EBITDA margin for the individual business segments. These amounts are computed as the reported segment adjusted EBITDA, divided by the segment revenue. Management believes this measure is meaningful to investors in evaluating the performance of the company's segments. Finally, this call is being webcast. A link to the webcast has been included within the Investor Relations section of our corporate website, and a replay of the call will be archived.

With that, I'm pleased to introduce our President and Chief Executive Officer, Mike Rumbolz.

Michael D. Rumbolz -- President and Chief Executive Officer

Thanks, Mark. Good afternoon, everyone, and thank you for joining us. This afternoon, we reported our eleventh consecutive quarter of year-over-year revenue and adjusted EBITDA growth, and our fifth consecutive quarter of profitability.

First quarter revenue increased 11.5% to a record $123.8 million, and adjusted EBITDA rose 5.7% to a record $61.3 million. First quarter net income was $5.9 million, or $0.08 per diluted share. Both FinTech revenue and adjusted EBITDA were quarterly records and our Games division also reported a quarterly record for revenue. This included record gaming operations revenue of $44.3 million and our second highest ever equipment sales revenue.

Randy will review the financial results in detail on certain performance metrics in just a few moments. But first, I'd like to focus on the key drivers of our business. We announced the acquisition of certain player loyalty technology and contracts from Atrient late in the first quarter. And given the timing of this acquisition, the initial revenue and adjusted EBITDA contributions from this new line of business were minimal.

This means that nearly all of our first quarter growth, the growth that we've experienced over the last few years and a major portion of the growth the company expects to achieve this year will be organic in nature. This growth is built on the purposeful investments that we've made to improve and expand our Games and FinTech product offerings.

Our recent successes and our prospects for continued growth will be even more evident as I review the first quarter and other recent highlights from the Games and FinTech segments.

In our Games business, adjusted EBITDA of $33.1 million reflects continued growth across the majority of our key performance indicators. We sold a record 1,259 games in the first quarter. This quarter was our fourth consecutive quarterly record for unit sales and the sixth consecutive quarter of sequential growth.

More than 80% of our first quarter sales were comprised of our newest for-sale cabinet, the Empire MPX or E43, together with our always popular Player Classic mechanical-reel games. Now, our mechanical-reel games are industry leading, and we continue to add new innovations to this product to further distinguish it from the competitive set.

The market strength of our Player Classic cabinet is obvious, as we continue to receive significant numbers of orders for new games in the high-denomination mechanical reel segment. We are continuing our robust new content strategy to keep the progress moving forward for these cabinets.

Equipment sales were strong in the first quarter, but our progress in gaming operations is even more noteworthy. I already highlighted the gaming operations revenue hit a quarterly record in the first quarter. We achieved this despite the anticipated year-over-year and sequential quarterly decline in our installed base.

The key driver for our record gaming operations revenue was the significant increase in daily win per unit, which rose nearly 12% to $31.76. The vast majority of the daily win per unit improvement was the result of the success that we're generating from investments in our game content and cabinets.

The $3.36 gain in daily win per unit to reach $31.76, represents our highest ever quarterly daily win per unit total, as well as our highest ever year-over-year increase on both the percentage and an absolute dollar basis. While premium units accounted for a majority of this improvement, we still saw win per unit growth across our entire installed base.

Premium units at March 31st comprised 21.5% of our total installed base compared to 19.8% just a year ago and only 14.5% two years ago. The highest performing units in the premium segment are from our wide-area progressive units. These games are also the fastest-growing component of our premium unit installed base.

At March 31st, we had an installed base of 723 wide-area progressive units, which is up 119 units, or 20% from December 2018 and up 80% on a year-over-year basis. WAP units now comprise a little more than 5% of our total installed base. And this compares to a little less than 3% a year ago and essentially nothing two years ago.

Our Renegade 3600 has been in casinos now for over six months. The average per unit performance for Diamond Blaze, the first title that we've introduced on this platform is still holding strong. Follow-up titles Smokin' Hot Stuff Extra Jackpots and Snoop Dogg Presents The Joker's Wild will be introduced in the second half of the year.

Another premium game that continues to receive strong positive customer and patron feedback is Smokin' Hot Stuff Wicked Wheel. Since its introduction on our new E5527 cabinet, Smokin' Hot Stuff Wicked Wheel has been a consistently strong performer.

Over the past six months, we have installed 375 Smokin' Hot Stuff Wicked Wheel units and we've seen the games average win per unit sustain a rate of three times the host casino's slot floor average. As a result of this strong performance, we have a large installation backlog for this game.

The recent introduction of the Empire Arena platform is our best ever new product launch. Discovery Shark Week is our first series of game themes featuring four popular standard-based video games that include bonus features with actual footage from Discovery Channel's Shark Week.

These games are featured in a linked bank or pod of E5527 cabinets, and include bonus play that is displayed across the entire bank. We introduced Empire Arena with Shark Week titles in the first quarter, and we now have over 125 units installed. The game performance of these units is exceeding the best-performing games in our portfolio.

With Smokin' Hot Stuff Wicked Wheel and the Shark Week titles, both featured in different configurations on our E5527 cabinet, I think it's fair to say that this cabinet is quickly becoming a casino floor favorite. We've had great success with our new platform and game introductions, considering gaming operations' already strong margins that we've told you about and of course, there is more yet to come. Clearly, the investments that we've made and continue to make in our new product development are creating value for our business.

The final part of our Game segment that I want to touch on is our newest business interactive. Our new Remote Game Server or RGS with six initial game themes is now live in New Jersey for real money gaming. Games offered through our RGS, also continued to gain traction in the social gaming space, with continued popularity for our Super Jackpot Slots and High Rollin' Vegas social casinos.

We've just introduced a new game, Cash Money, into the social space. This new game theme was also recently introduced into land-based casino floors on our Core HDX cabinet. Early results are showing great success in the performance of this game in both of those channels. We're being very measured in how we expand this business, and remain focused on keeping our costs aligned with our financial expectations.

To date, the interactive operating results are in line with the plan that we've previously discussed. The initial results that we're achieving in both acquiring and retaining players along with the average revenue per daily active user, reflect the values that our growing library of content can deliver. We still expect positive interactive adjusted EBITDA for 2019.

Turning now to our FinTech business. The 2019 first quarter was a record ninth consecutive quarter in which we generated year-over-year revenue and adjusted EBITDA growth. Transaction volumes and dollars processed continue to increase and we continue to grow our market share. We've been successful in this by leveraging our innovation, integrated solutions, customer service and broad scale to offer customers great value and reliability.

First quarter FinTech adjusted EBITDA of $28.2 million was up 7.2%, and reflected growth across the majority of our key performance indicators. Total face amount processed and the number of transactions were both up for the 18th consecutive quarter and reflects growth in same-store locations.

Over the last six months, we have renewed and extended cash access agreements with four of our five largest cash access customers for average terms of almost four years. Equipment sales revenues in the quarter were up nearly 60% over the prior year quarter.

On our fourth quarter call, we highlighted our belief that we are in the early stages of what we expect will be the start of a refresh cycle for our kiosk equipment. At the beginning of 2019, we estimated approximately 70% of the kiosks that we've sold to our customers are now more than three years old.

If you think about the tremendous volume of self-service transactions these kiosks perform and the critical functionality that they provide on casino floors, it's crucial that these devices are well maintained and functioning properly at all times. We believe this high volume of transactions and interaction with patrons will require our customers to start refreshing their older units and maintain or add service agreements for these devices.

FinTech revenue growth should benefit this year and for the next several years as customers replace and/or maintain these older units. Our acquisition of a new product line related to player enrollment and loyalty also creates a new opportunity for incremental equipment sales.

While it's still early in the integration of Atrient solutions into our product portfolio, we are off to a great start. Our breadth of customer contacts has allowed us to rapidly scale up the introduction of this technology to many new customers that were not previously in Atrient sales pipeline prior to the acquisition.

Our sales team has been very active in the market and has received a very enthusiastic response from the operators, as we've already secured several new agreements from our existing customers. We're currently working through the roll-out timing for these new agreements, as well as for the solid pipeline of business that existed at the time of the acquisition.

Now the final revenue line item for our FinTech segment comes from information and other services. We continue to grow and expand our kiosk maintenance revenues. Additionally, we've added new revenues from the sale of the player loyalty and enrollment software applications to our customers. Now although it's off to a little slower start than we'd anticipated, we should also see revenue growth from our compliance solutions throughout the remainder of 2019.

In March, we provided our initial adjusted EBITDA guidance for 2019. As noted in this afternoon's press release, we're reaffirming that outlook for 2019, which includes year-over-year revenue growth and adjusted EBITDA of approximately $252 million to $255 million.

Our full-year expectation for adjusted EBITDA growth reinforces our view that free cash flow generation will continue to accelerate. We remain on track to approximately double the free cash flow we generated last year and to double the 2019 free cash flow again in 2020. As we've said in the past, the priority for us is to use this free cash flow to pay down debt. We anticipate achieving our deleveraging goals through the combination of debt paydown and consistent growth in adjusted EBITDA.

And with that, I'd like to turn the call over to Randy.

Randy L. Taylor -- Executive Vice President and Chief Financial Officer

Thank you, Mike, and good afternoon, everyone.

For the first quarter of 2019, total revenues were $123.8 million, comprised of $67.5 million from Games and $56.3 million from FinTech. Games revenue increased approximately 12% year-over-year and FinTech revenue increased approximately 11% year-over-year.

Adjusted EBITDA for the first quarter 2019 increased by $3.3 million, or 5.7%, to $61.3 million. Adjusted EBITDA for the Game segment was $33.1 million compared to $31.7 million a year ago, while adjusted EBITDA for the FinTech segment was $28.2 million compared to $26.3 million last year.

In our Game segment, gaming operations revenue increased $4.2 million, or 10.5% year-over-year, to a quarterly record $44.3 million. This includes $4.7 million from our New York Lottery operations and approximately $1 million from our interactive business, which is up over $800,000 when compared to the prior year period.

Installed base declined year-over-year from 14,124 units at March 31, 2018 to 13,644 at March 31, 2019. Decline was primarily driven by the previously discussed sale of approximately 200 units from our installed base to a customer in Indiana, and our decision to remove over 330 of the approximate 400 lower performing units at a multi-property customer in Oklahoma. The remaining units are expected to be removed early in the second quarter 2019.

Factoring in the growth in our installed base at other locations, the net quarterly sequential decline was 355 units. Offsetting the revenue impact of these unit removals and a key factor in our ability to generate record gaming operations revenue in the quarter, was the nearly 12%, or $3.36 rise in daily win per unit to $31.76. This was our highest ever daily win per unit.

It's important to emphasize that despite the unit count reductions experienced in the first quarter, we expected our installed base unit count return to its general cadence of growth. Our interactive business remains on plan to be adjusted EBITDA positive this year.

We expect interactive revenue to increase sequentially throughout the year, as we expand our B2B, real money and social gaming offerings, and expand our direct-to-consumer social gaming platforms of Super Jackpot Slots and High Rollin' Vegas. We expect to have further penetration of this product into real-money jurisdictions in North America over the coming quarters, which should drive interactive revenue growth.

Revenues from electronic game machine sales were $23.1 million for the first quarter of 2019, up 14% year-over-year. Unit sales grew 18% year-over-year to a record 1,259 units. Average selling price was $17,361 in the quarter compared to $17,745 in last year's first quarter. For 2019, we continue to expect double-digit growth in unit sales and for ASP to remain in the $17,000 range.

As we've noted before, our actual unit sales growth in 2017 and 2018, and our expectations for growth this year are outpacing the actual or expected unit sales growth rates for the industry in each of these three years. This translates into growing ship share and floor share at very high rates when compared to most other manufacturers.

Adjusted EBITDA margin for the Game segment was 49% in the first quarter of 2019, compared to 52.7% in the first quarter of 2018. Decline primarily relates to higher SG&A and R&D expenses, which includes the increase in marketing and payroll costs associated with our interactive operations.

The SG&A and R&D spend is more in line with the fourth quarter 2018, which is what we expected based on the investments that we have made in the Game segment throughout 2018. For our FinTech segment, the first quarter marked the 18th consecutive quarter of same-store growth in both transactions and dollars processed. Cash access services revenue increased 6.8% year-over-year. Equipment sales revenue was up 59% in the quarter, primarily from higher sales of our fully integrated kiosks.

Information services and other revenue, which includes kiosk maintenance, compliance products, Central Credit and software sales and support from our newly acquired player loyalty assets, rose 3.7% compared to the prior year period. We continue to expect revenue growth in our FinTech business.

The first quarter revenue growth exceeded our expectations, as cash access services continue to benefit from the overall macro economy, market share gains and growth in same-store transactions. Kiosks and our equipment sales were also strong, and our pipeline looks good for the remainder of the year.

As Mike mentioned over the last six months, we have renewed and extended four of our five largest customers. While these extensions secure a meaningful portion of recurring revenue, there will be slightly higher commission payments to these customers for the core cash advance services, resulting in lower net cash access service revenues. This impact has been factored into our full-year guidance.

While early, we remain very optimistic about potential upside from the Atrient player loyalty solutions, which we continue to integrate into our sales offerings. We're executing on a healthy level of business that was already in the pipeline at the time of the acquisition and we've helped to grow that pipeline. In just the first few weeks since we closed the acquisition, we've already signed an additional couple of million dollars in business, with this revenue likely recognized over the next several quarters as we install the product. We recognized approximately $460,000 in revenue and $255,000 in adjusted EBITDA in the first quarter related to this acquisition, which closed in early March.

For our legacy FinTech operations, we expect FinTech adjusted EBITDA will grow in the mid- to high single-digits compared to 2018, with incremental upside from the acquisition adding to the segment's full-year adjusted EBITDA. We are maintaining modest expectations for the adjusted EBITDA contributions related to the acquired player loyalty assets this year somewhere in the several million dollar range. This is because it is very new business for us, and we will have less than a full year of results, just slightly more than nine months of activity for 2019.

With each day, our conviction grows that there is upside to this estimate and a significant opportunity for growth attributable to the player loyalty business in future years. Adjusted EBITDA margin for the FinTech segment in the 2019 first quarter was 50%, compared to 51.8% for the first quarter 2018. This decrease primarily reflects the higher kiosk revenue sales, which has a lower gross margin and an increase in SG&A and R&D expenses. The SG&A and R&D spend is more in line with the fourth quarter 2018, which is what we expected based on the investments that we've made in the FinTech segment throughout 2018.

Moving to the balance sheet. The outstanding principal on our long term debt was $1.18 billion, and we had no amounts outstanding under our revolving credit facility as of March 31, 2019. The weighted average interest on our total outstanding debt obligation at March 31st was approximately 6.1%.

During the first quarter, we paid down a total of $2.1 million on our term loan. In April 2019, we paid an additional $10 million down on our term loan. This payment was primarily due to the excess cash flow payment required under the agreement.

Our consolidated secured leverage ratio at quarter end was 3.2 times adjusted EBITDA compared to a maximum senior leverage of 4.75 times. As of March 31st, the outstanding balance of ATM cash utilized by us from our vault cash providers was approximately $267 million. For 2019, we expect interest expense of between $83 million and $86 million, which includes interest on vault cash of approximately $7.5 million and $3.6 million in non-cash amortization of capitalized debt issuance costs.

In the first quarter, placement fees totaled $5.3 million, and other capital expenditures totaled $22.2 million. Excluding the placement fees, Games segment CapEx was $19.1 million and FinTech CapEx was $3.1 million.

Games segment capital expenditures related to game and platform design was approximately $7.2 million. Gaming equipment CapEx was approximately $11.5 million. This amount includes equipment upgrades, replacement for existing installed base units and new units placed on trial.

For the full year, we expect placement fees will be approximately $17 million. As a reminder, the quarterly payments of over $5 million related to the placement fee arrangement from 2017 and in the third quarter of 2019. After that third quarter payment, we expect minimal payments, replacement fees to occur for the foreseeable future.

Our estimate for 2000 -- our total 2019 capital expenditures is approximately $107 million, which now includes approximately $3 million to $5 million in CapEx related to our newly acquired player loyalty products. Games CapEx is expected to be approximately $85 million to $88 million, and FinTech CapEx is expected to be $19 million to $22 million. This afternoon, we reaffirmed our outlook for 2019 adjusted EBITDA to be in a range of $252 million to $255 million.

For modeling of shares outstanding, we expect to remain profitable in each of the quarters and the full year. Therefore, diluted shares outstanding is expected to be at least 75.5 million shares. Depending on the actual average share price in the quarter, we would expect fully diluted shares to increase slightly if our stock price increases.

We expect total depreciation and amortization expense in 2019 to be approximately $132 million to $136 million. This includes an initial estimate from our acquisition. But because we have not yet completed our full purchase accounting analysis, that amount could change.

We expect to record an income tax benefit of between $1 million and $2 million, and we expect cash tax payments of approximately $1 million. Finally, we continue to expect that free cash flow will almost double this year, compared to the 2018 free cash flow of nearly $25 million.

With that, I will now turn it back to the operator for questions.

Questions and Answers:

Operator

Thank you. (Operator Instructions) And our first question will come from David Katz with Jefferies.

David Katz -- Jefferies -- Analyst

Hi. Afternoon, everyone.

Michael D. Rumbolz -- President and Chief Executive Officer

Hi, David.

Randy L. Taylor -- Executive Vice President and Chief Financial Officer

Hi, David.

David Katz -- Jefferies -- Analyst

I'm going to apologize for getting on just a couple of minutes late, so I missed a couple of the prepared remarks. But where I -- staring at my model for the outlook for the remainder of the year, in terms of units sold, would you mind just going back and talking about or repeating from your -- what you expect in terms of the arc of units sold, what new game concepts are coming out and when? And give us a long-term vision for what that game sales line item should look like going forward?

Michael D. Rumbolz -- President and Chief Executive Officer

Well, David, I would say, first of all, in the quarter, we did 1,259 units. And we don't really give full-year unit sales. We in our guide have said, they'll be in excess of the prior year. But we did say we would have, I would think in excess of 4,513. Yeah. We had 4,513 last year and we have an increase of -- I thought we said -- did we give the actual increase in our projection for unit sales? I don't think we did. Obviously, we'd be up. So I mean, I know, you want a little more guidance than that. But I think we had a strong quarter. We were up 18% in unit sales. We do expect to be up from last year, but we really haven't given a firm number on the unit sales for the year yet.

David Katz -- Jefferies -- Analyst

Got you. And in terms of, any impact on pricing, whether that's change in mix or any new product introductions? Have you made any comments about what you expect pricing to look like, ASP?

Randy L. Taylor -- Executive Vice President and Chief Financial Officer

So, we said the pricing -- we expect the pricing to remain in that $17,000 price range. So, we don't really expect a lot of change in the ASP.

Michael D. Rumbolz -- President and Chief Executive Officer

But as you know, David, if we have TournEvent, as a larger percentage in any given quarter, then that may change the ASP for the quarter.

David Katz -- Jefferies -- Analyst

Yeah.

Randy L. Taylor -- Executive Vice President and Chief Financial Officer

But we did have a little bit higher last quarter, so the ASP is down sequentially but compared to last year, we're really in line.

David Katz -- Jefferies -- Analyst

Got it. And if I may, just in terms of the cash flow commentary, which I did hear, which should approximate doubling year-over-year. Can you talk about the puts and takes or events that, that may or may not result in that being better than a double or just short of a double? What is still hanging out there variability wise for that?

Michael D. Rumbolz -- President and Chief Executive Officer

So, just a little extra guidance is, is you're kind of looking at your information. We did in the press release kind of give a range there. But I would say a couple of things. Cash interest, we gave a range there. Right now we've kind of updated that and not really expecting any increases for the remainder of the year. We've talked about the placement fees, which will end in the third quarter, so that approximately $5 million a quarter will be done. And then really it's CapEx that's going to drive that differential. We have a little bit more with Atrient, but again, it's our EBITDA guidance of $252 million to $255 million. So between those, you'll see we're kind of giving a range of $47 million to $49 million in the back of the last page of the press release. So, hopefully that gives you the information.

David Katz -- Jefferies -- Analyst

I did read the release, and I'm not a completely blank slate. What I'm taking away from this is, there is a fair amount of confidence around that sort of doubling the free cash flow. And I think that's ultimately what I was getting at.

Michael D. Rumbolz -- President and Chief Executive Officer

Sorry, David. I wasn't sure. Yeah, I know you've got a couple going on, I didn't mean that. I just want to make sure, look, I think we have kind of laid it out there and we feel pretty good about it. I don't know if there's a whole lot of upside over that, but we feel pretty good about it.

David Katz -- Jefferies -- Analyst

It's all good. I appreciate it. Nice quarter.

Michael D. Rumbolz -- President and Chief Executive Officer

Thanks, David.

Operator

Next, we'll go to Barry Jonas with SunTrust.

Barry Jonas -- SunTrust Robinson Humphrey -- Analyst

Hi, guys.

Michael D. Rumbolz -- President and Chief Executive Officer

Hey, Barry.

Barry Jonas -- SunTrust Robinson Humphrey -- Analyst

Now that you're starting to get some traction in the Games business, I'm just wondering if you're seeing more success with bundling or cross-selling between Games and FinTech?

Michael D. Rumbolz -- President and Chief Executive Officer

Barry, we don't really -- we don't really bundle games and FinTech together. We've had a few instances where we've been able to work with a customer that is either looking for Games product and didn't necessarily have enough CapEx available for it, where we can have them pay for it as part of their contracts in the FinTech side and vice versa. But those have been relatively few and we've never bundled the products.

Barry Jonas -- SunTrust Robinson Humphrey -- Analyst

Got it. Okay. That's helpful. And I think in the opening remarks, you commented about slightly higher cash -- cash access commissions coming. But if we look at cash access revenues per dollar processed in the quarter, it looked like they grew for the first time in almost two years. So, just curious what drove that strength in the quarter?

Michael D. Rumbolz -- President and Chief Executive Officer

I'm not sure what you're looking at. I mean, we continue to have increases in transactions processed in dollars, the floor on a same-store basis, Barry. So, that's been pretty consistent and we've had like 18 quarters there. I think what we're -- what I was trying to do, again, remember we report net. So it's -- under the new accounting rules, we net out commissions against our net revenues. And I was just trying to get a little bit of insight there. We had a good quarter, first quarter.

But with these new large customers that we renewed in the last six months, generally, we're going to pay a little bit higher commissions. So hopefully, transactions will continue to offset that and we'll have volume offset. But if everything was consistent, you'd have some issues growing just because of renewing customers that will probably pay a little more commissions. I hope that answers your question, but that's really what I was trying to talk to.

Barry Jonas -- SunTrust Robinson Humphrey -- Analyst

Got it. Yeah. No, that helps. And then just lastly, on the Game segment, for unit sales in the quarter, any new -- anything you'd call out, any large shipments, or specifically new openings, maybe like Encore that you could call out?

Michael D. Rumbolz -- President and Chief Executive Officer

I mean, the one that we talked about is, we did have the -- we did have the -- about 200 units that flipped from installed to sale, so that went out of our installed units, our installed base into sales. So, there was just under 200 units there. But other than that, I think it was pretty much...

Randy L. Taylor -- Executive Vice President and Chief Financial Officer

Across the board.

Michael D. Rumbolz -- President and Chief Executive Officer

...across the board. There wasn't anything major. I mean, we had, I think a one opening in. We also had the one -- I think that one -- the win in blue (ph) was probably last quarter.

Randy L. Taylor -- Executive Vice President and Chief Financial Officer

Right. And then win.

Michael D. Rumbolz -- President and Chief Executive Officer

Of course, yeah. The win.

Barry Jonas -- SunTrust Robinson Humphrey -- Analyst

Got it. Okay. Thanks so much, guys.

Michael D. Rumbolz -- President and Chief Executive Officer

Okay.

Operator

Our next question will come from John Davis from Raymond James.

John Davis -- Raymond James -- Analyst

Hey. Good afternoon, guys.

Michael D. Rumbolz -- President and Chief Executive Officer

Hey, John

John Davis -- Raymond James -- Analyst

Randy, I just wanted to, on the -- on the FinTech business for a second, I think, continue to put up double-digit growth (inaudible) and potentially, all organic in the first quarter. I think, what's the outlook for increased kiosk sales? How sustainable is that double-digit revenue growth there and kind of what should we be thinking about as puts and takes as we go through kind of the rest of the year, anything to call out?

Randy L. Taylor -- Executive Vice President and Chief Financial Officer

Well, look, I think -- we think we're going to be strong in the kiosk sales. I think, as -- and I've been wrong forever, John, so I'm sure you'll call me on this. But I do think that the cash access itself won't be quite as strong as it's been in the past. But I think kiosk, I think we've got upside in compliance we talked about and the Atrient will be -- will be the add in there. So with those three, I still think we feel really good about mid to upper single digits as we stand and then if you add in a trend, I think you'll come up with the -- probably see a better growth than that.

John Davis -- Raymond James -- Analyst

Okay. And then on the FinTech margin. Obviously, I think the kiosk sales weighed on it this quarter. How should we think about it for the full year, especially considering Atrient, how should we think about that impact on the margin, something similar to the impact in the first quarter? Just kind of help us think about the margin on a go-forward basics?.

Michael D. Rumbolz -- President and Chief Executive Officer

I think it will be. I think it will be closer to what we have this quarter. I think, again, we'll have more kiosk sales throughout the year and this will weigh up a little bit. And yeah, we've invested a little bit there. So the R&D and SG&A will be a little bit higher, but in line with what we've had. So, I think it'll be closer to what we've seen this year -- this quarter.

John Davis -- Raymond James -- Analyst

Okay. And then last one for me. The installed base, I think you guys have previously said, it was first (ph) and second quarter. I think it's about 200 (ph) units you would allow. But are you guys still fairly confident that the growth in the second quarter will kind of offset that headwind and we'll start going back in the right direction as far as installed base from kind of the watermark here in the first quarter?

Michael D. Rumbolz -- President and Chief Executive Officer

I would say two things. I would say, I don't want to be so focused on units. We do expect cadence growth throughout the rest of the year. But I'm as excited about really the growth in the win per day. So, I'm focused on, hey, where would we be. And I think we're focused on where we'd be at the end of the year and the total revenue growth. And we still feel very good about being able to hit our targets through both of those levers.

John Davis -- Raymond James -- Analyst

Okay. All right. Thanks, guys.

Michael D. Rumbolz -- President and Chief Executive Officer

Thank you, John.

Operator

Brad Boyer from Stifel has our next question.

Brad Boyer

Hey. Thanks for taking the questions, guys. So, just an extension on JD's question there. So if I back out some of these one-time items that occurred in the first quarter under installed base, so the 200 units flipping in Indiana and the 330 of lower performing units. I mean, is that net number? Is that -- is that like a good solid kind of core growth number that we should think about kind of going forward or any more color you can provide there?

Michael D. Rumbolz -- President and Chief Executive Officer

I mean, it's -- it gives you a target, but the issue is, you always have some, Brad, that will come out. So, it's not like -- we still have 60 that will come out, 60 plus will come out on the one customer. I don't know if you can look at that net being perfect, but I think it's directionally correct that we should be growing in that kind of a range going forward.

Randy L. Taylor -- Executive Vice President and Chief Financial Officer

Brad, I would tell you that if you look at our net backlogs and you don't have any unknown removals or things that are -- that we don't have visibility to today, then we feel very good about what lies down the road for us.

Brad Boyer -- Stifel, Nicolaus & Company -- Analyst

Okay. That's helpful. And then just around your yield performance. I mean, those numbers are pretty staggering. I guess, could you give us some flavor of sort of how games are performing as they sit out in the field? I mean, are some of these newer WAP and premium titles that you have out there, are they sustaining in performance beyond the first several weeks of installed? Can you give us some flavor there? Thanks.

Michael D. Rumbolz -- President and Chief Executive Officer

Yeah. I mean other than -- other than talking about the three time for average performance that we're getting out of our Wicked Wheel, I mean, Dean can speak to some of the backlog we've got. These are doing -- these are among the best products we've ever released and are doing better numbers than any products we've released previously. As a result, we have a lot of customers that are looking for more of these products. But Dean, why don't you speak to the backlogs that we have in these areas of performance?

Dean A. Ehrlich -- Executive Vice President and Games Business Leader

Yeah. I'm not going to go into specifics by each game. But I would tell you if you look at the backlog right now, it's very, very, very strong. I would say stronger than what our installed base is currently for those respective products. But we feel very good about it. Like we talked about before, we can't control unknown removals or anything that we don't have visibility to. But if you snap the chart right now, we feel great about where we're at and how we believe the growth from where we currently sit is going to manifest.

Michael D. Rumbolz -- President and Chief Executive Officer

And Brad, I'd add, we spend a lot of CapEx in '18 and we're refreshing some of the older products. And I think that's what you're also seeing reflected in the first quarter. As Mike talked about, it's not just these new products, which are doing phenomenal. But even just --

Randy L. Taylor -- Executive Vice President and Chief Financial Officer

All of our other products are doing well.

Michael D. Rumbolz -- President and Chief Executive Officer

You just raise them a little bit. And again, very happy with that increase in win per day per unit. And so we know -- we think we've got a lot to look forward through in the second quarter..

Brad Boyer -- Stifel, Nicolaus & Company -- Analyst

Perfect. And then just last one for me. Similar to David, I may have missed some commentary here. But I didn't hear you guys talk much about sort of the cashless product. I know you had a couple of trials out there. Do you have any updates to share there just kind of sort of how that's trending or any progression there would be helpful? Thanks.

Darren D. A. Simmons -- Executive Vice President and FinTech Business Leader

Yeah. So, this is Darren. We continue to work with our travel customers, couple travel customers with respect to the vault and the number of other conversations with other customers on it, where we're in a sort of a lab. So, UAT (ph) with one large travel customer right now and we're hoping to actually be in line with that toward second half of this year.

Brad Boyer -- Stifel, Nicolaus & Company -- Analyst

Thanks, guys.

Michael D. Rumbolz -- President and Chief Executive Officer

Absolutely. Take Care, Brad.

Operator

Our next question will come from Brian McGill from Telsey Advisory Group.

Brian McGill -- Telsey Advisory Group LLC -- Analyst

Good afternoon. Good quarter.

Michael D. Rumbolz -- President and Chief Executive Officer

Hey, Brian.

Brian McGill -- Telsey Advisory Group LLC -- Analyst

How you doing? So, I wanted to talk a little bit, same thing, kind of what they've been talking about the last couple of questions on the win per day, which as everyone has noted, was very good in the quarter. And we were lucky enough today to get two slot companies reporting at the same time.

Michael D. Rumbolz -- President and Chief Executive Officer

We share the same moment.

Brian McGill -- Telsey Advisory Group LLC -- Analyst

Yeah. Fantastic. But I do notice that, that competitor who changed how they disclose things was basically saying, their US, Canada yields came in at $38. And what I'm wondering, as you continue to add more premium games in the play levels Dean was just talking about, would that type of number longer term be a goal?

Michael D. Rumbolz -- President and Chief Executive Officer

I think our goal may be above that number. But remember, they have a lot of the highest grossing wide-area progressive in their units. And that's the best for us as well. And we're only at, as I noted, only at 5% of our installed base in the wide-area progressive currently. So, as we expand that, I would expect the numbers to continue to increase.

Brian McGill -- Telsey Advisory Group LLC -- Analyst

And then I guess, I'm wondering, where are the operators these days in terms of play levels in general of keeping participation games on the floor? I know you just said, three times from any of your newer games that are out there, which is fantastic. But where are they these days on play levels of keeping up participation games?

Michael D. Rumbolz -- President and Chief Executive Officer

Yeah. There's no -- as you know, there's no real rule among them. Each one has a slightly different take on it. But they all view it as a multiple of house average in order to stay on the floor with a premium product.

Brian McGill -- Telsey Advisory Group LLC -- Analyst

And it's still typically above two times, typically at least two usually, right?

Michael D. Rumbolz -- President and Chief Executive Officer

I would say that's typical.

Brian McGill -- Telsey Advisory Group LLC -- Analyst

All right. Thank you.

Michael D. Rumbolz -- President and Chief Executive Officer

Thanks, Brian.

Operator

Well, thank you for your questions today. There are no further questions at this time. So, I'd like to turn things back to Randy Taylor for closing remarks.

Randy L. Taylor -- Executive Vice President and Chief Financial Officer

Well, thanks for joining us today. And we look forward to discussing further progress on our business when we report our 2019 second quarter results in August. Thank you.

Operator

That does conclude our conference for today. Thank you for your participation.

Duration: 46 minutes

Call participants:

Mark Labay -- Senior Vice President, Finance and Investor Relations

Michael D. Rumbolz -- President and Chief Executive Officer

Randy L. Taylor -- Executive Vice President and Chief Financial Officer

Brad Boyer

Dean A. Ehrlich -- Executive Vice President and Games Business Leader

Darren D. A. Simmons -- Executive Vice President and FinTech Business Leader

David Katz -- Jefferies -- Analyst

Barry Jonas -- SunTrust Robinson Humphrey -- Analyst

John Davis -- Raymond James -- Analyst

Brad Boyer -- Stifel, Nicolaus & Company -- Analyst

Brian McGill -- Telsey Advisory Group LLC -- Analyst

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