AGS REPORTS FOURTH QUARTER AND FULL YEAR 2021 RESULTS

LAS VEGAS, March 10, 2022 /PRNewswire/ — PlayAGS, Inc. (NYSE: AGS) (“AGS”, “us”, “we” or the “Company”), a designer and developer of kit and providers options for the worldwide gaming {industry}, in the present day reported working outcomes for the fourth quarter and full 12 months ended December 31, 2021.

In addressing the Company’s fourth quarter and full 12 months monetary efficiency, AGS President and Chief Executive Officer David Lopez stated, “If 2020 was the 12 months of resiliency inside our enterprise, 2021 was the 12 months of transition. Supported by the foundational adjustments put into place over the previous 18 months and an accommodative macroeconomic backdrop, we have been in a position to set up working momentum inside all three enterprise verticals as we progressed all year long, a pattern that continued into the fourth quarter.”

Mr. Lopez continued, “With our improved 2021 monetary outcomes behind us, our consideration has shifted to making sure we’re finest positioned to realize even better success in 2022. To that finish, I’d characterize 2022 as a 12 months of acceleration for AGS; one through which we’ll look to additional leverage the continual enchancment in our folks, merchandise and processes to strengthen our monetary efficiency.”

Kimo Akiona, AGS’ Chief Financial Officer, added, “I’m happy with the diploma to which we have been in a position to enhance the standard and adaptability of our steadiness sheet all through 2021. Looking forward to 2022, I imagine the operational momentum we proceed to see inside the enterprise, the roughly $10 million of annualized money curiosity expense financial savings we anticipate to comprehend because of our latest refinancing transaction, and our organizational dedication to maximizing free money circulate place us to ship upon our 12 months finish web leverage goal of lower than 4.0x.”

Fourth Quarter 2021 Financial Results

• Given the COVID-19 pandemic’s continued affect on the worldwide gaming {industry} all through This autumn 2020, we’ve got included our This autumn 2019 monetary ends in the tables introduced all through this launch, as we imagine comparisons to This autumn 2019 metrics present extra significant perception into the restoration trajectory of our numerous enterprise segments.
• Consolidated income totaled $70.2 million, marking the fourth consecutive quarter through which we have been in a position to obtain quarterly sequential income development. This autumn 2021 consolidated income exceeded the extent reached in Q3 2021 by roughly 4%, supported by an over 20% enhance in EGM tools gross sales, sustained power inside our home EGM recurring income enterprise, document Table Products efficiency, and additional restoration in our worldwide EGM gaming operations income. This autumn 2021 consolidated income reached roughly 90% of the extent achieved in This autumn 2019, as greater income contributions from our home EGM recurring income, Table Products and Interactive companies have been greater than offset by the extra gradual post-COVID-19 recoveries we’re experiencing inside our EGM tools gross sales and worldwide EGM gaming operations verticals. Although slower to completely recuperate, it is very important be aware EGM tools gross sales elevated sequentially in all 4 quarters of 2021, whereas worldwide EGM gaming operations income has improved sequentially in all six quarters since reaching COVID-19-impacted lows in Q2 2020.
• Gaming operations, or recurring income, elevated to $52.9 million versus $40.0 million and $51.6 million in This autumn 2020 and This autumn 2019, respectively. Relative to This autumn 2019, the expansion achieved inside our home EGM, Table Products, and Interactive recurring income companies was partially offset by a decline in our worldwide EGM recurring income enterprise, as beforehand mentioned. In mixture, recurring income accounted for about 75% of our consolidated This autumn 2021 income in comparison with roughly 86% and 66% in This autumn 2020 and This autumn 2019, respectively.
• Our 2021 fourth quarter web lack of $9.1 million improved as in comparison with the $17.2 million web loss incurred in This autumn 2020. The year-over-year decline in our reported web loss displays our improved monetary efficiency and decrease depreciation and amortization (“D&A”) expense. Our web loss elevated relative to web revenue of $1.4 million realized in This autumn 2019, pushed by the modest decline in our monetary efficiency, greater curiosity expense and decreased revenue tax profit, partially offset by decrease D&A expense.
• Total Adjusted EBITDA (non-GAAP)(1) was $32.3 million in comparison with $21.3 million in This autumn 2020 and $37.3 million in This autumn 2019. Interactive and Table Products Adjusted EBITDA elevated sharply relative to the degrees achieved in This autumn 2019, supported by the profitable execution of our strategic income development initiatives inside every of the segments. EGM Adjusted EBITDA decreased roughly 20% versus This autumn 2019 ranges, because the upside from our improved This autumn 2021 home EGM gaming operations efficiency was greater than offset by the extra gradual recoveries we’re experiencing inside our EGM tools gross sales and worldwide EGM gaming operations companies.
• Total Adjusted EBITDA margin (non-GAAP)(1) was 45.9%, comparatively in step with the 45.7% achieved in This autumn 2020. Adjusted EBITDA margin compressed by roughly 200bps(2) in comparison with the 47.9% reached in This autumn 2019, because the improved profitability achieved inside the Table Product and Interactive segments was greater than offset by a discount in our EGM section Adjusted EBITDA margin, which we attribute to our tactical resolution to permit working bills to normalize to pre-COVID-19 ranges prematurely of a corresponding restoration in EGM revenues to make sure we finest place the enterprise to realize long-term success.

(1) Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP measures, see non-GAAP reconciliation beneath.
(2) Basis factors (“bps”).

EGM

EGM Quarterly Results

Domestic Gaming Operations(3)

• Domestic EGM gaming operations, or recurring income, elevated to $43.4 million in comparison with $34.1 million and $41.6 million in This autumn 2020 and This autumn 2019, respectively. A better mixture of higher-yielding premium video games, extra constant core sport content material execution, and a steady gaming macroeconomic backdrop drove our improved income efficiency. Quarterly home EGM recurring income exceeded corresponding 2019 ranges for the third consecutive quarter.
• Our home EGM put in base grew by greater than 170 items versus the 15,767 items put in at September 30, 2021, marking the second consecutive quarterly sequential enhance in our home EGM put in base. Growing operator demand for our expanded suite of premium recurring income merchandise and, to a lesser diploma, new on line casino opening and growth exercise paced the quarterly sequential unit development. Our home put in base decreased by 329 items and a pair of,429 items versus This autumn 2020 and This autumn 2019, respectively, with the overwhelming majority of the declines immediately attributable to our resolution to strategically prune lower-yielding items.
• Domestic EGM income per day (“RPD”) elevated by greater than 20% in comparison with the $24.97 achieved in This autumn 2019. Continued development of our higher-yielding premium sport footprint, accelerating core sport content material momentum, the strategic pruning of lower-yielding items, and a steady gaming macroeconomic atmosphere drove our improved home RPD efficiency. Domestic EGM RPD exceeded $30 for the third consecutive quarter.
• Our premium sport footprint greater than doubled year-over-year, accounting for about 10% of our home EGM put in base at December 31, 2021 in comparison with roughly 9% and 4% at September 30, 2021 and December 31, 2020, respectively. We estimate our premium sport footprint generated over 15% of our This autumn 2021 home EGM gaming operations income.

International Gaming Operations

• International EGM gaming operations income totaled $3.9 million in comparison with $1.8 million in This autumn 2020 and $6.0 million in This autumn 2019. The decline versus This autumn 2019 displays the diploma to which our Mexico enterprise has been impacted by measures carried out to gradual the unfold of COVID-19, together with the imposition of on line casino capability restrictions. Additionally, in distinction to the United States, Mexico has not supplied any kind of fiscal stimulus to assist its post-COVID-19 financial restoration. International EGM gaming operations income elevated roughly 5% over Q3 2021 ranges, marking the sixth consecutive quarterly sequential enhance following Q2 2020 COVID-19-impacted lows.
• International EGM RPD was $5.55 in comparison with $2.56 in This autumn 2020 and $7.65 in This autumn 2019. International EGM RPD improved roughly 9% on a quarterly sequential foundation from the $5.11 achieved in Q3 2021, supported by a rise within the variety of energetic playable video games in casinos and Mexico’s continued, albeit gradual, post-COVID-19 macroeconomic restoration. We estimate This autumn 2021 worldwide EGM RPD, adjusted to exclude inactive video games, was comparatively consistent with This autumn 2019 ranges.
• Our worldwide EGM put in base totaled 7,643 items at December 31, 2021, representing a modest lower as in comparison with the 7,896 items put in as of September 30, 2021.We estimate roughly 70% of our worldwide EGM put in base was energetic and playable as of December 31, 2021 in comparison with roughly 35% as of December 31, 2020.
• Given the extra gradual income restoration we’re experiencing inside our Mexico enterprise, our staff stays centered on managing prices to protect profitability. To that finish, our worldwide EGM section continued to contribute optimistic Adjusted EBITDA in This autumn 2021.

Equipment Sales

• We offered a complete of 815 home EGM items in comparison with 283 items and 1,173 items in This autumn 2020 and This autumn 2019, respectively. EGM unit gross sales elevated meaningfully versus the 663 items offered in Q3 2021, supported by sustained core sport content material momentum, additional penetration of product adjacencies, comparable to Historical Horse Racing (“HHR”), and continued restoration in core North American alternative unit demand, partially offset by a extra modest opening and growth alternative set. Excluding on line casino opening and growth items, EGM unit gross sales elevated by greater than 35% on a quarterly sequential foundation.
• Domestic common gross sales value (“ASP”) was $19,286 versus $18,035 in This autumn 2020 and $17,833 in This autumn 2019. Our improved home ASP displays a better mixture of premium-priced Orion Curve cupboards, which accounted for over 55% of This autumn 2021 whole items offered, and profitable implementation of our value integrity initiative. Domestic ASP elevated roughly 2% in comparison with the $18,970 achieved in Q3 2021.
• We offered items into 19 U.S. states and three Canadian provinces all through This autumn 2021, with Nevada, Virginia and California rising as our prime three gross sales markets.

Product Highlights

• Our Orion Curve Premium put in base greater than doubled on a quarterly sequential foundation, supported by the sturdy efficiency of our player-favorite Rakin Bacon Deluxe sport themes in each Class II and Class III jurisdictions. We proceed to develop a various pipeline of recent premium sport content material, sport play mechanics and {hardware} to additional assist our long-term development initiatives inside the higher-yielding premium sport section.
• Our distinctive sport efficiency and deep buyer relationships have allowed us to command better share inside the increasing HHR market. The ahead demand image inside the HHR market stays encouraging, supported by growth and additional market penetration alternatives inside present jurisdictions, together with Virginia, Kentucky and Wyoming, and the pending launch of recent jurisdictions, notably New Hampshire.
• We anticipate to materially broaden our core Class II sport content material portfolio all through the primary half of 2022, offering us with the means to additional yield optimize our over 11,000-unit Class II EGM put in base in a capital environment friendly method. Looking past 2022, we proceed to search for alternatives to leverage our intensive expertise, time-tested buyer relationships, distinctive sport play mechanics, and scale-advantaged footprint to additional strengthen our aggressive positioning inside the steady Class II gaming market.

(3) “Domestic” contains each the United States and Canada.

Table Products

Table Products Quarterly Results

• Gaming operations, or recurring income, grew to a document $3.1 million, paced by sustained buyer demand for our industry-leading desk sport progressive merchandise and the rising attraction of our all-inclusive web site license providing, the AGS Arsenal. Recurring income elevated roughly 5% over the earlier document of $3.0 million set in Q3 2021.
• Adjusted EBITDA elevated almost 50% versus This autumn 2020 and roughly 20% on a quarterly sequential foundation to a document $2.0 million. Adjusted EBITDA margin was 61.2% in comparison with 52.4% in Q3 2021 and 51.6% in This autumn 2020.
• Our put in base expanded by over 50 items on a quarterly sequential foundation to a document 4,701 items, with development achieved throughout all core segments of our diversified Table Products portfolio, together with facet bets, progressives, premium video games, and card shufflers.
• Operator curiosity in our industry-leading and increasing desk sport progressive product suite continues to construct, pushing our progressive put in base to over 1,700 items at December 31, 2021. Customer demand for our Royal 9 Baccarat progressive product stays constant, whereas the put in base of our extremely anticipated Bonus Spin Xtreme (“BSX”) progressive greater than doubled on a quarterly sequential foundation. We proceed to obtain constructive buyer suggestions on our preliminary BSX installs and anticipate buyer adoption to speed up within the quarters forward, significantly as operators look to activate progressives on latent roulette tables.
• Our common month-to-month lease value (“ALP”) elevated roughly 4% in comparison with the $212 achieved in Q3 2021 and roughly 21% year-over-year. The roughly 8% decline in ALP versus This autumn 2019 ranges displays the affect of AGS Arsenal on our reported metrics, as this providing is meant to strategically drive down per unit pricing in return for greater whole income and an prolonged contract dedication.
• We have been stay with 16 AGS Arsenal web site licenses on the finish of This autumn 2021 in comparison with 13 on the finish of Q3 2021. Interest in our web site license program continues to develop, supported by our organizational dedication to desk product innovation and on line casino operators’ want to additional improve the effectivity of their desk sport operations.
• Subsequent to quarter finish, we additional strengthened our Table Product content material portfolio via the acquisition of the player-favorite Lucky Lucky blackjack facet guess from Aces Up Gaming. In addition to increasing our facet guess put in base, the Lucky Lucky asset has the potential to strengthen our AGS Arsenal worth proposition and broaden our progressive product portfolio over time.
• We lately obtained GLI approval for our PAX S specialty sport card shuffler and our first income producing items are already stay within the discipline.

Interactive

Interactive Quarterly Results

• Total Interactive income elevated greater than 50% year-over-year to $2.5 million, exceeding $2.0 million for the fourth consecutive quarter. Outsized development inside our real-money gaming enterprise continues to assist our improved Interactive income efficiency.
• Interactive Adjusted EBITDA grew to $816 thousand, marking the section’s eighth consecutive quarter of optimistic Adjusted EBITDA efficiency and reinforcing our dedication to scaling our Interactive enterprise in a worthwhile style.
• RMG income greater than doubled year-over-year to $2.0 million. The profitable integration of our distant gaming server (“RGS”) with further iGaming operators, the growth of regulated iGaming to further North American jurisdictions, together with a number of Canadian provinces, and continued sturdy efficiency of AGS sport content material paced the sturdy year-over-year RMG income development comparability.
• We proceed to broaden our RMG content material catalog with over 30 AGS titles at the moment obtainable for play on-line. Our content material is stay within the majority of essentially the most distinguished regulated North American on-line jurisdictions, together with PA, MI, NJ, Ontario, and Quebec, and we proceed to organize for scheduled upcoming launches into further jurisdictions, together with CT, WV, British Columbia, and Alberta.
• Social gaming income of $550 thousand was comparatively in step with the prior sequential quarter, as we proceed to prioritize stability and profitability inside this section of our enterprise. The year-over-year income comparability displays the buyer’s choice for at-home actions throughout This autumn 2020 in response to the worldwide unfold of COVID-19, mixed with a discount in participant advertising and marketing spend as a part of our profitability focus inside the section.

Liquidity and Capital Expenditures

As of December 31, 2021, the Company had $125.0 million of whole obtainable liquidity, comprised of a $95.0 million obtainable money steadiness and $30.0 million of revolver availability, in comparison with whole obtainable liquidity of $111.7 million at December 31, 2020. The whole principal quantity of debt excellent, as of December 31, 2021, was $615.7 million, predominantly comprised of $614.8 million in first lien time period loans. 

Total web debt, which is the principal quantity of debt excellent much less money and money equivalents, as of December 31, 2021 was roughly $520.8 million in comparison with roughly $540.8 million at December 31, 2020. The Total Net Debt Leverage Ratio decreased from 7.5 occasions at December 31, 2020 to 4.2 occasions at December 31, 2021 (see Total Net Debt Leverage Ratio Reconciliation beneath(4)), inserting the Company properly inside compliance of its 6.0 occasions monetary covenant.

On February 15, 2022, the Company efficiently accomplished the refinancing of its whole debt excellent via the issuance of (i) a senior secured first lien time period mortgage in an mixture principal quantity of $575.0 million due 2029 (the “New Term Loan Facility”), the proceeds of which, along with money available, have been used to repay all quantities excellent underneath the Company’s present time period mortgage services and to pay associated charges and bills, and (ii) a $40.0 million senior secured first lien revolving facility due 2027 (the “New Revolving Credit Facility”), which was undrawn at shut. The refinancing transaction concurrently lowered the principal quantity of debt excellent by roughly $40 million, diminished annualized money curiosity expense by roughly $10 million, relative to the extent incurred for the complete 12 months 2021, expanded the Company’s revolver capability to $40.0 million, and prolonged key debt maturities. Pro-forma for the refinancing transaction, the Company’s whole web debt was roughly $538.3 million. 

Fourth quarter 2021 capital expenditures totaled $15.3 million, primarily comprised of $9.7 million in development capital expenditures, which mirror prices related to the placement of further items into the Company’s leased put in base, and $4.1 million in intangible capital expenditures, inclusive of capitalized inner software program improvement prices. Capital expenditures for the complete 12 months ended December 31, 2021 totaled $51.5 million in comparison with $71.1 million for the complete 12 months ended December 31, 2019. 

2022 Net Leverage Target

Supported by our sturdy end to 2021, the roughly $10 million of annualized money curiosity expense financial savings we anticipate to comprehend along with our latest debt refinancing and the working momentum we proceed to see within the enterprise, we stay assured in our means to ship upon our beforehand issued year-end 2022 web leverage goal of lower than 4.0x.

(4) Total Adjusted EBITDA and Total Net Debt Leverage Ratio are non-GAAP measures, see non-GAAP reconciliation beneath.

Conference Call and Webcast

AGS management will host a convention name to assessment the Company’s fourth quarter and full 12 months 2021 outcomes on March 10, 2022, at 5 p.m. EST. Participants could entry a stay webcast of the convention name, together with a slide presentation reviewing the quarterly outcomes, at the Company’s Investor Relations web site http://investors.playags.com. A replay of the webcast will probably be obtainable on the web site following the stay occasion. U.S. and Canadian contributors could entry the decision stay by phone by calling +1 (844) 200-6205, whereas worldwide contributors ought to name +1 (929) 526-1599 . The convention name entry code is 251701.

Company Overview

AGS is a worldwide firm centered on creating a various mixture of entertaining gaming experiences for each type of participant. Our roots are firmly planted within the Class II tribal gaming market, however our customer-centric tradition and noteworthy development have helped us department out to turn into one of the crucial all-inclusive industrial gaming tools suppliers on the earth. Powered by high-performing Class II and Class III slot merchandise, an expansive desk merchandise portfolio, extremely rated social on line casino, real-money gaming options for gamers and operators, and best-in-class service, we provide an unmatched worth proposition for our on line casino companions. Learn extra at playags.com.

AGS Investor & Media Contacts:

Brad Boyer, Senior Vice President Corporate Operations and Investor Relations
[email protected] 

Julia Boguslawski, Chief Marketing Officer
[email protected]

©2022 PlayAGS, Inc. Products referenced herein are offered by AGS LLC or different subsidiaries of PlayAGS, Inc. Solely for comfort, marks, emblems and commerce names referred to on this press launch seem with out the ® and  TM and SM  symbols, however such references should not supposed to point, in any manner, that PlayAGS, Inc. is not going to assert, to the fullest extent underneath relevant legislation, its rights or the rights of the relevant licensor to those marks, emblems and commerce names.

Forward-Looking Statement

This launch accommodates, and oral statements made on occasion by our representatives could comprise, forward-looking statements based mostly on administration’s present expectations and projections, that are supposed to qualify for the secure harbor of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements embrace statements relating to the proposed public providing and different statements recognized by phrases comparable to “imagine,” “will,” “could,” “would possibly,” “probably,” “anticipate,” “anticipates,” “intends,” “plans,” “seeks,” “estimates,” “believes,” “continues,” “tasks” and comparable references to future durations, or by the inclusion of forecasts or projections. All forward-looking statements are based mostly on present expectations and projections of future occasions.

These forward-looking statements mirror the present views, fashions, and assumptions of AGS, and are topic to numerous dangers and uncertainties that can’t be predicted or certified and will trigger precise ends in AGS’s efficiency to vary materially from these expressed or implied by such ahead trying statements. These dangers and uncertainties embrace, however should not restricted to, the power of AGS to keep up strategic alliances, unit placements or installations, develop income, garner new market share, safe new licenses in new jurisdictions, efficiently develop or place proprietary product, adjust to laws, have its video games authorised by related jurisdictions, the results of COVID-19 on the Company’s enterprise and outcomes of operations and different elements set forth underneath Item 1. “Business,” Item 1A. “Risk Factors” in AGS’s Annual Report on Form 10-Okay, filed with the Securities and Exchange Commission. All forward-looking statements made herein are expressly certified of their entirety by these cautionary statements and there could be no assurance that the precise outcomes, occasions or developments referenced herein will happen or be realized. Readers are cautioned that each one forward-looking statements communicate solely to the details and circumstances current as of the date of this press launch. AGS expressly disclaims any obligation to replace or revise any forward-looking statements, whether or not because of new data, future occasions or in any other case.

 

 

(5) Exclusive of depreciation and amortization.

 

Non-GAAP Financial Measures

To present traders with further data in reference to our outcomes as decided by typically accepted accounting rules in the United States (“GAAP”), we disclose the next non-GAAP monetary measures: whole Adjusted EBITDA, whole Adjusted EBITDA margin, whole web debt leverage ratio, and Free Cash Flow. These measures should not monetary measures calculated in accordance with GAAP and shouldn’t be thought of as an alternative to web revenue, working revenue, money flows, or some other measure calculated in accordance with GAAP, and is probably not similar to equally titled measures reported by different firms.

Total Adjusted EBITDA

This press launch and accompanying schedules present sure data relating to Adjusted EBITDA, which is taken into account a non-GAAP monetary measure underneath the principles of the Securities and Exchange Commission.

We imagine that the presentation of whole Adjusted EBITDA is acceptable to offer further data to traders about sure materials non-cash objects that we don’t anticipate to proceed on the similar stage sooner or later, in addition to different objects we don’t think about indicative of our ongoing working efficiency. Further, we imagine whole Adjusted EBITDA offers a significant measure of working profitability as a result of we use it for evaluating our enterprise efficiency, making budgeting selections, and evaluating our efficiency in opposition to that of different peer firms utilizing comparable measures. It additionally offers administration and traders with further data to estimate our price.

Total Adjusted EBITDA isn’t a presentation made in accordance with GAAP. Our use of the time period whole Adjusted EBITDA could differ from others in our {industry}. Total Adjusted EBITDA shouldn’t be thought of as an alternative choice to working revenue or web revenue. Total Adjusted EBITDA has essential limitations as an analytical software, and you shouldn’t think about it in isolation or as an alternative to the evaluation of our outcomes as reported underneath GAAP.

Our definition of whole Adjusted EBITDA permits us so as to add again sure non-cash expenses which might be deducted in calculating web revenue and to deduct sure beneficial properties which might be included in calculating web revenue. However, these bills and beneficial properties differ significantly, and are troublesome to foretell. They can characterize the impact of long-term methods versus short-term outcomes. In addition, within the case of expenses or bills, these things can characterize the discount of money that may very well be used for different company functions. Due to those limitations, we rely totally on our GAAP outcomes, comparable to web loss, (loss) revenue from operations, EGM Adjusted EBITDA, Table Products Adjusted EBITDA or Interactive Adjusted EBITDA and use Total Adjusted EBITDA solely supplementally.

The whole Adjusted EBITDA dialogue above can be relevant to its margin measure, which is calculated as whole Adjusted EBITDA as a share of Total Revenue.

The following desk presents a reconciliation of whole Adjusted EBITDA to web loss, which is essentially the most comparable GAAP measure:

(6) Write-downs and different contains objects associated to loss on disposal or impairment of long-lived belongings and honest worth changes to contingent consideration.

(7) Other changes are primarily composed of the next: 

• Costs and stock and receivable valuation expenses related to the COVID-19 pandemic, skilled charges incurred for tasks, prices incurred associated to public choices, contract cancellation charges and different transaction prices deemed to be non-operating in nature;
• Acquisition and integration associated prices associated to the acquisition of companies and to combine operations and procure prices synergies;
• Restructuring and severance prices, which primarily relate to prices incurred via the restructuring of the Company’s operations on occasion and different worker severance prices acknowledged within the durations introduced; and
• Legal and litigation associated prices, which encompass funds to legislation companies and settlements for issues which might be exterior the traditional course of enterprise.

(8) Other non-cash expenses are prices associated to non-cash expenses and losses on the disposition of belongings, non-cash expenses on capitalized set up and supply, which primarily contains the prices to amass contracts which might be expensed over the estimated life of every contract, and non-cash expenses associated to accretion of contract rights underneath improvement agreements.

Total Net Debt Leverage Ratio Reconciliation

The following desk presents a reconciliation of whole web debt and whole web debt leverage ratio:

Free Cash Flow

This schedule offers sure data relating to Free Cash Flow, which is taken into account a non-GAAP monetary measure underneath the principles of the Securities and Exchange Commission.

We outline Free Cash Flow as web money supplied by working actions much less money outlays associated to capital expenditures. We outline capital expenditures to incorporate buy of intangible belongings, software program improvement and different expenditures, and purchases of property and tools. In arriving at Free Cash Flow, we subtract money outlays associated to capital expenditures from web money supplied by working actions as a result of they characterize long-term investments which might be required for regular enterprise actions. As a outcome, topic to the restrictions described beneath, Free Cash Flow is a helpful measure of our money obtainable to repay debt and/or make different investments.

Free Cash Flow adjusts for money objects which might be finally inside administration’s discretion to direct, and subsequently, could suggest that there’s much less or additional cash that’s obtainable than essentially the most comparable GAAP measure. Free Cash Flow isn’t supposed to characterize residual money circulate for discretionary expenditures since debt compensation necessities and different non-discretionary expenditures should not deducted. These limitations are finest addressed through the use of Free Cash Flow together with the GAAP money circulate numbers.

The following desk presents a reconciliation of Free Cash Flow:

 

 

SOURCE AGS