First Quarter 2022 Highlights:
- Sold 955 EGM Units Globally; Highest Level Achieved Since This autumn 2019
- Premium EGM Units Increased Sequentially for the Ninth Consecutive Quarter; Accounted for Approximately 11% of Domestic EGM Installed Base at Quarter End
- Domestic EGM RPD Increased 2% Sequentially; Topped $30 for the Fourth Quarter in a Row
- Table Product Revenue Reached a New All-time Record of $3.5 Million; Third Consecutive Record-breaking Quarter
- Recent Debt Refinancing Lowers Borrowing Costs, Extends Key Debt Maturities and Reduces the Principal Amount of Debt Outstanding
- On Track to Achieve Year-End 2022 Net Leverage Target of lower than 4.0x
LAS VEGAS, May 5, 2022 /PRNewswire/ — PlayAGS, Inc. (NYSE: AGS) (“AGS”, “us”, “we” or the “Company”), a designer and developer of apparatus and companies options for the worldwide gaming {industry}, at this time reported working outcomes for the primary quarter ended March 31, 2022.
In addressing the Company’s first quarter monetary efficiency, AGS President and Chief Executive Officer David Lopez stated, “I’m inspired by the diploma to which the working momentum we established all through 2021 continued into the primary quarter. We have closely invested in strengthening the muse of our Company over the previous couple of years and are starting to comprehend accelerating returns on these investments. To that finish, I consider our stable first quarter efficiency merely foreshadows what our laser-focused group can accomplish within the quarters and years forward.”
Kimo Akiona, AGS’ Chief Financial Officer, added, “Supported by the operational momentum we proceed to see throughout the enterprise, the roughly $10 million of annualized money curiosity expense financial savings we’ve began to comprehend because of the refinancing transaction, and our organizational dedication to maximizing free money circulation, we stay assured in our means to ship upon our yr finish 2022 web leverage goal of lower than 4.0x.”
Summary of the Three Months Ended March 31, 2022 and 2021 |
||||||||||||||||||||||||||||||||
(In hundreds, besides per-share and Adjusted EBITDA margin information) |
||||||||||||||||||||||||||||||||
Three Months Ended March 31, |
||||||||||||||||||||||||||||||||
2022 |
2021 |
$ Change |
% Change |
|||||||||||||||||||||||||||||
Revenues: |
||||||||||||||||||||||||||||||||
EGM |
$ |
66,906 |
$ |
50,518 |
$ |
16,388 |
32.4 |
% |
||||||||||||||||||||||||
Table Products |
3,480 |
2,756 |
724 |
26.3 |
% |
|||||||||||||||||||||||||||
Interactive |
2,471 |
2,085 |
386 |
18.5 |
% |
|||||||||||||||||||||||||||
Total revenues |
$ |
72,857 |
$ |
55,359 |
$ |
17,498 |
31.6 |
% |
||||||||||||||||||||||||
Income from operations |
$ |
5,678 |
$ |
3,415 |
$ |
2,263 |
66.3 |
% |
||||||||||||||||||||||||
Net loss |
$ |
(12,594) |
$ |
(7,770) |
$ |
(4,824) |
62.1 |
% |
||||||||||||||||||||||||
Loss per share |
$ |
(0.34) |
$ |
(0.21) |
$ |
(0.13) |
61.9 |
% |
||||||||||||||||||||||||
Adjusted EBITDA: |
||||||||||||||||||||||||||||||||
EGM |
$ |
30,195 |
$ |
24,403 |
$ |
5,792 |
23.7 |
% |
||||||||||||||||||||||||
Table Products |
1,829 |
1,411 |
418 |
29.6 |
% |
|||||||||||||||||||||||||||
Interactive |
742 |
508 |
234 |
46.1 |
% |
|||||||||||||||||||||||||||
Total Adjusted EBITDA(1) |
$ |
32,766 |
$ |
26,322 |
$ |
6,444 |
24.5 |
% |
||||||||||||||||||||||||
Total Adjusted EBITDA margin(2) |
45.0 |
% |
47.5 |
% |
(2.5) |
% |
(250 bps) |
- Consolidated income totaled $72.9 million, marking the fifth consecutive quarter through which we have been in a position to obtain quarterly sequential income progress. Q1 2022 consolidated income exceeded the extent reached in This autumn 2021 by roughly 4%, supported by an roughly 15% enhance in home EGM unit gross sales, sustained energy inside our home EGM recurring income enterprise, report Table Products efficiency, and additional restoration in our worldwide EGM gaming operations income. Q1 2022 consolidated income elevated roughly 32% year-over-year.
- Gaming operations, or recurring income, elevated to $53.2 million versus $44.4 million and $52.9 million in Q1 2021 and This autumn 2021, respectively. In combination, recurring income accounted for roughly 73% of our consolidated Q1 2022 income in comparison with roughly 80% and 75% in Q1 2021 and This autumn 2021, respectively. Changes in our recurring income combine mirror outsized consolidated EGM unit gross sales progress of roughly 230% year-over-year, as we proceed to learn from the elevated depth and breadth of our core content material catalog, broadening of our buyer account penetration, growth into GLI-approved worldwide jurisdictions, and a gentle restoration in core North American substitute unit demand.
- Our 2022 first quarter web lack of $12.6 million widened as in comparison with the $7.8 million web loss incurred in Q1 2021. The year-over-year enhance in our reported web loss was predominantly pushed by prices related to the excellent debt refinancing transaction which we closed upon in February 2022, partially offset by our improved working efficiency. Excluding refinancing-related expenditures, our web loss would have improved versus the prior yr.
- Total Adjusted EBITDA (non-GAAP)(1) was $32.8 million in comparison with $26.3 million in Q1 2021 and $32.3 million in This autumn 2021. Adjusted EBITDA elevated year-over-year inside all three of our working segments.
- Total Adjusted EBITDA margin (non-GAAP)(1) was 45.0% versus 47.5% in Q1 2021. Recall, the prior yr’s quarter benefitted from the high-margin sale of roughly 430 used EGM items to a distributor. Additionally, a larger mixture of lower-margin EGM unit gross sales revenues and better prices associated to world provide chain disruption unfavorably impacted the year-over-year margin comparability.
(1) |
Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP measures, see non-GAAP reconciliation under. |
(2) |
Basis factors (“bps”). |
EGM |
Three Months Ended March 31, 2022 in comparison with Three Months Ended March 31, 2021 |
(Amounts in hundreds, besides unit information) |
Three Months Ended March 31, |
|||||||||||||||
2022 |
2021 |
$ Change |
% Change |
|||||||||||||
EGM section revenues: |
||||||||||||||||
Gaming operations |
$ |
47,296 |
$ |
39,604 |
$ |
7,692 |
19.4 |
% |
||||||||
Equipment gross sales |
19,610 |
10,914 |
8,696 |
79.7 |
% |
|||||||||||
Total EGM revenues |
$ |
66,906 |
$ |
50,518 |
$ |
16,388 |
32.4 |
% |
||||||||
EGM Adjusted EBITDA |
$ |
30,195 |
$ |
24,403 |
$ |
5,792 |
23.7 |
% |
||||||||
EGM unit info: |
||||||||||||||||
Class II |
11,215 |
11,412 |
(197) |
(1.7) |
% |
|||||||||||
Class III |
4,700 |
4,044 |
656 |
16.2 |
% |
|||||||||||
Domestic put in base, finish of interval |
15,915 |
15,456 |
459 |
3.0 |
% |
|||||||||||
International put in base, finish of interval |
7,197 |
7,985 |
(788) |
(9.9) |
% |
|||||||||||
Total put in base, finish of interval |
23,112 |
23,441 |
(329) |
(1.4) |
% |
|||||||||||
Installed base – Oklahoma |
7,968 |
8,127 |
(159) |
(2.0) |
% |
|||||||||||
Installed base – non-Oklahoma |
7,947 |
7,329 |
618 |
8.4 |
% |
|||||||||||
Domestic put in base, finish of interval |
15,915 |
15,456 |
459 |
3.0 |
% |
|||||||||||
Domestic income per day |
$ |
30.79 |
$ |
27.10 |
$ |
3.69 |
13.6 |
% |
||||||||
International income per day |
$ |
6.17 |
$ |
2.94 |
$ |
3.23 |
109.9 |
% |
||||||||
Total income per day |
$ |
23.13 |
$ |
18.89 |
$ |
4.24 |
22.4 |
% |
||||||||
Domestic EGM unit gross sales elements: |
||||||||||||||||
Casino opening and growth items |
24 |
– |
24 |
N/A |
||||||||||||
Other |
913 |
289 |
624 |
215.9 |
% |
|||||||||||
Total Domestic EGM items bought |
937 |
289 |
648 |
224.2 |
% |
|||||||||||
International EGM items bought |
18 |
– |
18 |
N/A |
||||||||||||
Total EGM items bought |
955 |
289 |
666 |
230.4 |
% |
|||||||||||
Domestic common gross sales value |
$ |
19,232 |
$ |
17,520 |
$ |
1,712 |
9.8 |
% |
||||||||
EGM Quarterly Results
Domestic Gaming Operations(3)
- Domestic EGM gaming operations, or recurring income, elevated to $43.3 million in comparison with $37.6 million in Q1 2021. A larger mixture of higher-yielding premium video games, extra constant core sport content material execution, and a steady gaming macroeconomic backdrop drove our improved quarterly income efficiency. Recurring income accounted for roughly 70% of our complete Q1 2022 home EGM income.
- Our home EGM put in base included 15,915 items on the finish of Q1 2022, representing a rise of 459 items year-over-year and comparatively per the prior sequential quarter. We proceed to leverage our enhanced analytical capabilities to thoughtfully implement our home EGM put in base optimization initiatives, with a purpose of maximizing per unit economics and returns on deployed capital.
- Domestic EGM income per day (“RPD”) of $30.79 elevated roughly 14% year-over-year and exceeded $30 for the fourth consecutive quarter. Continued progress of our higher-yielding premium sport footprint, accelerating core sport content material momentum, additional implementation of our home EGM put in base optimization initiatives, and a steady gaming macroeconomic setting paced the continued energy in our home RPD efficiency. Domestic EGM RPD elevated roughly 2% on a quarterly sequential foundation.
- Our premium sport put in base elevated by roughly 10% on a quarterly sequential foundation and accounted for roughly 11% of our home EGM put in base at March 31, 2022 in comparison with roughly 5% at March 31, 2021. We estimate our premium sport footprint generated over 15% of our Q1 2022 home EGM gaming operations income.
Domestic Equipment Sales
- We bought a complete of 937 home EGM items in comparison with 289 items in Q1 2021. Domestic EGM unit gross sales elevated by roughly 15% versus the 815 items bought in This autumn 2021. The elevated depth and breadth of our core sport content material catalog, profitable implementation of a strategic gross sales initiative to additional broaden our buyer account penetration, continued success in commanding an outsized share of Historical Horse Racing (“HHR”) gross sales alternatives, and a gentle restoration in core North American substitute unit demand have all mixed to drive our improved home EGM unit gross sales efficiency.
- Domestic common gross sales value (“ASP”) was $19,232 versus $17,520 in Q1 2021. Our improved home ASP displays a larger mixture of premium-priced Orion Curve cupboards, which accounted for almost 60% of Q1 2022 complete home items bought, and profitable implementation of our value integrity initiative. Domestic ASP was comparatively constant on a quarterly sequential foundation.
- We bought items into 22 U.S. states and three Canadian provinces all through Q1 2022, with Florida, New Hampshire and Nevada rising as our high three gross sales markets.
International EGM’s
- International EGM gaming operations, or recurring income, totaled $4.0 million in comparison with $2.0 million in Q1 2021 and was up roughly 2% over This autumn 2021 ranges, marking the seventh consecutive quarterly sequential enhance.
- International EGM RPD was $6.17 in comparison with $2.94 in Q1 2021. International EGM RPD improved roughly 11% on a quarterly sequential foundation relative to the $5.55 achieved in This autumn 2021, supported by a rise within the variety of energetic playable video games in casinos, Mexico’s continued post-COVID-19 macroeconomic restoration and the elimination of lower-yielding Philippines items.
- Our worldwide EGM put in base totaled 7,197 items at March 31, 2022, representing a quarterly sequential lower of roughly 450 items. As beforehand disclosed, we made a strategic determination to exit the Philippines market on the finish of calendar yr 2021, which drove the modest sequential lower we skilled inside our worldwide EGM put in base. We estimate roughly 80% of our worldwide EGM put in base was energetic and playable as of March 31, 2022 in comparison with roughly 70% as of December 31, 2021.
- We bought a complete of 18 EGM items internationally in Q1 2022, representing our first worldwide EGM unit gross sales since Q2 2020. We have recognized further alternatives to additional leverage our GLI-approved EGM merchandise in a wide range of worldwide markets.
- We proceed to leverage our improved income efficiency and value self-discipline to drive profitability good points inside our worldwide EGM enterprise. To that finish, our Q1 2022 worldwide EGM Adjusted EBITDA elevated almost threefold versus the prior yr’s stage.
Product Highlights
- Our Orion Curve Premium put in base elevated by greater than 50% on a quarterly sequential foundation, supported by the continued sturdy efficiency of our participant favourite Rakin Bacon Deluxe sport theme in each Class II and Class III jurisdictions. We proceed to develop a various pipeline of latest premium sport content material, enhanced sport play mechanics and cutting-edge {hardware} to additional help our long-term progress initiatives throughout the higher-yielding premium sport section.
- Our steadfast dedication to strengthening our operational basis by means of additional investments in our R&D franchise continues to pay dividends, with our Ultimate Choice Jackpots, Imperial 88 and Coin Bonanza households of video games every that includes a number of high-performing sport themes. Looking forward, we consider the rising range of our content material choices, together with the upcoming launch of our first household of high-denomination sport themes, ought to permit us to broaden our presence on operators’ flooring.
- We anticipate to 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 throughout the steady Class II gaming market.
(3) |
“Domestic” contains each the United States and Canada. |
Table Products |
Three Months Ended March 31, 2022 in comparison with Three Months Ended March 31, 2021 |
(Amounts in hundreds, besides unit information) |
Three Months Ended March 31, |
|||||||||||||||
2022 |
2021 |
$ Change |
% Change |
|||||||||||||
Table Products section revenues: |
||||||||||||||||
Gaming operations |
$ |
3,397 |
$ |
2,727 |
$ |
670 |
24.6 |
% |
||||||||
Equipment gross sales |
83 |
29 |
54 |
186.2 |
% |
|||||||||||
Total Table Products revenues |
$ |
3,480 |
$ |
2,756 |
$ |
724 |
26.3 |
% |
||||||||
Table Products Adjusted EBITDA |
$ |
1,829 |
$ |
1,411 |
$ |
418 |
29.6 |
% |
||||||||
Table Products unit info: |
||||||||||||||||
Table Products put in base, finish of interval |
5,384 |
4,362 |
1,022 |
23.4 |
% |
|||||||||||
Average month-to-month lease value |
$ |
217 |
$ |
208 |
$ |
9 |
4.3 |
% |
||||||||
Table Products Quarterly Results
- Gaming operations, or recurring income, grew to a report $3.4 million, paced by sustained buyer demand for our industry-leading desk sport progressive merchandise, preliminary PAX S specialty sport card shuffler installs, the rising attraction of our all-inclusive AGS Arsenal website license providing, and our Q1 2022 acquisition of the Lucky Lucky facet wager. Recurring income elevated roughly 10% over the earlier report of $3.1 million set in This autumn 2021 and has now grown sequentially for seven consecutive quarters.
- Our put in base expanded by over 680 items on a quarterly sequential foundation to a report 5,384 items, with progress achieved throughout all core segments of our diversified Table Products portfolio, together with facet bets, progressives, premium video games, and card shufflers. Our put in base elevated by over 1,000 items year-over-year.
- Our common month-to-month lease value (“ALP”) was comparatively per the $220 achieved in This autumn 2021 and elevated roughly 4% year-over-year.
- Adjusted EBITDA elevated almost 30% versus Q1 2021, supported by sturdy year-over-year income progress. Adjusted EBITDA margin was 52.6% in comparison with 51.2% in Q1 2021.
- Our progressive put in base grew to over 1,750 items at March 31, 2022, supported by an roughly 55% quarterly sequential enhance within the put in base of our extremely anticipated and differentiated Bonus Spin Xtreme (“BSX”) progressive. We anticipate buyer adoption of BSX to speed up within the quarters forward as operators look to activate progressives on latent roulette tables and as further sport varieties, together with craps, are added to the BSX platform.
- We have been dwell with 17 AGS Arsenal website licenses on the finish of Q1 2022. The Arsenal’s compelling worth proposition and our organizational dedication to investing in Table Product innovation continues to stimulate curiosity in our website license providing amongst our on line casino operator companions.
- As of March 31, 2022, we had 14 PAX S specialty sport card shufflers put in throughout six completely different jurisdictions. We have acquired encouraging buyer suggestions on our preliminary PAX S installs and are excited concerning the product’s future progress potential within the quarters forward.
Interactive |
Three Months Ended March 31, 2022 in comparison with Three Months Ended March 31, 2021 |
(Amounts in hundreds) |
Three Months Ended March 31, |
|||||||||||||||
2022 |
2021 |
$ Change |
% Change |
|||||||||||||
Interactive section income: |
||||||||||||||||
Social gaming income |
$ |
515 |
$ |
709 |
$ |
(194) |
(27.4) |
% |
||||||||
Real-money gaming income |
1,956 |
1,376 |
580 |
42.2 |
% |
|||||||||||
Total Interactive income |
$ |
2,471 |
$ |
2,085 |
$ |
386 |
18.5 |
% |
||||||||
Interactive Adjusted EBITDA |
$ |
742 |
$ |
508 |
$ |
234 |
46.1 |
% |
||||||||
Interactive Quarterly Results
- Total Interactive income elevated roughly 19% year-over-year to $2.5 million, exceeding $2.0 million for the fifth consecutive quarter. Outsized progress inside our real-money gaming enterprise continues to drive our improved Interactive income efficiency.
- Interactive Adjusted EBITDA grew to $742 thousand, marking the section’s ninth consecutive quarter of optimistic Adjusted EBITDA efficiency and additional reinforcing our organizational dedication to profitably scaling our Interactive enterprise.
- RMG income elevated by greater than 40% 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 our outsized year-over-year RMG income progress.
- We not too long ago achieved a high 5 provider slot indexing rating within the April 2022 Eilers and Krejcik Online Game Performance Report. Our on-line sport content material catalog, consisting of over 30 AGS titles, is dwell within the majority of probably the most distinguished regulated North American on-line jurisdictions, together with PA, MI, NJ, Ontario, and Quebec, and we proceed to arrange for scheduled upcoming launches into further jurisdictions, together with CT, WV, British Columbia, and Alberta.
- Social gaming income of $515 thousand was comparatively per the prior sequential quarter, as we proceed to prioritize stability and profitability inside this section of our enterprise. The year-over-year income decline displays the influence of our strategic determination to reasonable participant advertising and marketing spend, per our profitability focus throughout the section.
Liquidity and Capital Expenditures
As of March 31, 2022, the Company had $72.9 million of complete obtainable liquidity, comprised of a $32.9 million money steadiness and $40.0 million of availability beneath the Company’s undrawn revolving credit score facility.
On February 15, 2022, the Company efficiently accomplished the refinancing of its complete debt excellent by means of the issuance of (i) a senior secured first lien time period mortgage in an combination 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 beneath the Company’s current 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, decreased annualized money curiosity expense by roughly $10 million, relative to the extent incurred for the total yr 2021, expanded the Company’s revolver capability to $40.0 million, and prolonged key debt maturities.
The complete principal quantity of debt excellent, as of March 31, 2022, was $575.7 million in comparison with $615.7 million at December 31, 2021. Total web debt, which is the principal quantity of debt excellent much less money and money equivalents, as of March 31, 2022 was roughly $542.8 million, conveying a Total Net Debt Leverage Ratio of 4.2 instances(4).
First quarter 2022 capital expenditures totaled $11.5 million, primarily comprised of $6.7 million in progress capital expenditures, which mirror prices related to the position of further items into the Company’s leased put in base, and $3.9 million in intangible capital expenditures, inclusive of capitalized inside software program growth prices. For the total yr 2022, we anticipate to incur consolidated capital expenditures of $56 million to $62 million.
2022 Net Leverage Target
Supported by our encouraging begin to 2022 and the working momentum we proceed to see throughout 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 under. |
Conference Call and Webcast
AGS management will host a convention name to evaluate the Company’s first quarter 2022 outcomes on May 5, 2022, at 5 p.m. EDT. Participants might entry a dwell webcast of the convention name, together with a slide presentation reviewing the quarterly outcomes, on 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 dwell occasion. U.S. and Canadian contributors might entry the decision dwell by phone by calling +1 (844) 200-6205, whereas worldwide contributors ought to name +1 (929) 526-1599. The convention name entry code is 536847.
Company Overview
AGS is a worldwide firm targeted on creating a various mixture of entertaining gaming experiences for each sort of participant. Our roots are firmly planted within the Class II tribal gaming market, however our customer-centric tradition and noteworthy progress have helped us department out to turn out to be some of the all-inclusive industrial gaming gear suppliers on this planet. 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 bought 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 usually are not meant to point, in any manner, that PlayAGS, Inc. is not going to assert, to the fullest extent beneath relevant regulation, its rights or the rights of the relevant licensor to those marks, emblems and commerce names.
Forward-Looking Statement
This launch comprises, and oral statements made occasionally by our representatives might comprise, forward-looking statements primarily based on administration’s present expectations and projections, that are meant 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 concerning the proposed public providing and different statements recognized by phrases resembling “consider,” “will,” “might,” “would possibly,” “probably,” “anticipate,” “anticipates,” “intends,” “plans,” “seeks,” “estimates,” “believes,” “continues,” “tasks” and related references to future intervals, or by the inclusion of forecasts or projections. All forward-looking statements are primarily based 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 varied dangers and uncertainties that can not be predicted or certified and will trigger precise leads to AGS’s efficiency to vary materially from these expressed or implied by such ahead wanting statements. These dangers and uncertainties embrace, however usually are 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 authorized by related jurisdictions, the results of COVID-19 on the Company’s enterprise and outcomes of operations and different elements set forth beneath 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 may be no assurance that the precise outcomes, occasions or developments referenced herein will happen or be realized. Readers are cautioned that every one forward-looking statements converse solely to the information 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 info, future occasions or in any other case.
PLAYAGS, INC. |
|||||||
CONSOLIDATED BALANCE SHEETS |
|||||||
(quantities in hundreds, besides share and per share information) |
|||||||
March 31, |
December 31, |
||||||
2022 |
2021 |
||||||
Assets |
|||||||
Current belongings |
|||||||
Cash and money equivalents |
$ |
32,932 |
$ |
94,977 |
|||
Restricted money |
20 |
20 |
|||||
Accounts receivable, web of allowance of $2,141 and $1,993, respectively |
54,747 |
49,426 |
|||||
Inventories |
31,362 |
27,534 |
|||||
Prepaid bills |
7,683 |
4,878 |
|||||
Deposits and different |
8,823 |
8,240 |
|||||
Total present belongings |
135,567 |
185,075 |
|||||
Property and gear, web |
72,679 |
74,916 |
|||||
Goodwill |
287,270 |
285,546 |
|||||
Intangible belongings |
156,629 |
160,044 |
|||||
Deferred tax asset |
7,571 |
7,333 |
|||||
Operating lease belongings |
12,932 |
12,503 |
|||||
Other belongings |
6,705 |
7,394 |
|||||
Total belongings |
$ |
679,353 |
$ |
732,811 |
|||
Liabilities and Stockholders’ Equity |
|||||||
Current liabilities |
|||||||
Accounts payable |
$ |
13,154 |
$ |
9,439 |
|||
Accrued liabilities |
37,967 |
39,165 |
|||||
Current maturities of long-term debt |
6,200 |
6,877 |
|||||
Total present liabilities |
57,321 |
55,481 |
|||||
Long-term debt |
552,668 |
599,281 |
|||||
Deferred tax legal responsibility, non-current |
2,891 |
2,653 |
|||||
Operating lease liabilities, long-term |
12,220 |
11,871 |
|||||
Other long-term liabilities |
20,604 |
21,954 |
|||||
Total liabilities |
645,704 |
691,240 |
|||||
Commitments and contingencies |
|||||||
Stockholders’ fairness |
|||||||
Preferred inventory at $0.01 par worth; 50,000,000 shares approved, no shares issued and excellent |
– |
– |
|||||
Common inventory at $0.01 par worth; 450,000,000 shares approved at March 31, 2022 and at |
371 |
369 |
|||||
Additional paid-in capital |
395,837 |
392,161 |
|||||
Accumulated deficit |
(357,493) |
(344,889) |
|||||
Accumulated different complete loss |
(5,066) |
(6,070) |
|||||
Total stockholders’ fairness |
33,649 |
41,571 |
|||||
Total liabilities and stockholders’ fairness |
$ |
679,353 |
$ |
732,811 |
PLAYAGS, INC. |
|||||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS |
|||||||
(quantities in hundreds, besides per share information) |
|||||||
Three Months Ended March 31, |
|||||||
2022 |
2021 |
||||||
Revenues |
|||||||
Gaming operations |
$ |
53,164 |
$ |
44,416 |
|||
Equipment gross sales |
19,693 |
10,943 |
|||||
Total revenues |
72,857 |
55,359 |
|||||
Operating bills |
|||||||
Cost of gaming operations(5) |
10,269 |
8,676 |
|||||
Cost of apparatus gross sales(5) |
9,787 |
3,468 |
|||||
Selling, normal and administrative |
17,951 |
12,608 |
|||||
Research and growth |
10,210 |
8,060 |
|||||
Write-downs and different fees |
93 |
724 |
|||||
Depreciation and amortization |
18,869 |
18,408 |
|||||
Total working bills |
67,179 |
51,944 |
|||||
Income from operations |
5,678 |
3,415 |
|||||
Other expense (earnings) |
|||||||
Interest expense |
9,473 |
10,981 |
|||||
Interest earnings |
(209) |
(288) |
|||||
Loss on extinguishment and modification of debt |
8,549 |
– |
|||||
Other expense (earnings) |
(8) |
147 |
|||||
Loss earlier than earnings taxes |
(12,127) |
(7,425) |
|||||
Income tax expense |
(467) |
(345) |
|||||
Net loss |
(12,594) |
(7,770) |
|||||
Foreign foreign money translation adjustment |
1,004 |
(862) |
|||||
Total complete loss |
$ |
(11,590) |
$ |
(8,632) |
|||
Basic and diluted loss per frequent share: |
|||||||
Basic |
$ |
(0.34) |
$ |
(0.21) |
|||
Diluted |
$ |
(0.34) |
$ |
(0.21) |
|||
Weighted common frequent shares excellent: |
|||||||
Basic |
36,990 |
36,466 |
|||||
Diluted |
36,990 |
36,466 |
(5) |
Exclusive of depreciation and amortization. |
PLAYAGS, INC. |
|||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS (in hundreds) |
|||||||
Three Months Ended March 31, |
|||||||
2022 |
2021 |
||||||
Cash flows from working actions |
|||||||
Net loss |
$ |
(12,594) |
$ |
(7,770) |
|||
Adjustments to reconcile web loss to web money offered by working actions: |
|||||||
Depreciation and amortization |
18,869 |
18,408 |
|||||
Accretion of contract rights beneath growth agreements and placement charges |
1,631 |
1,706 |
|||||
Amortization of deferred mortgage prices and low cost |
920 |
1,104 |
|||||
Write-off of deferred mortgage prices and low cost |
1,586 |
– |
|||||
Cash paid for debt prepayment penalties to prior debt holders |
848 |
– |
|||||
Stock-based compensation expense |
5,825 |
1,632 |
|||||
Provision for dangerous money owed |
105 |
118 |
|||||
Loss on disposition of long-lived belongings |
93 |
71 |
|||||
Impairment of belongings |
– |
653 |
|||||
Provision for deferred earnings tax (profit) |
199 |
59 |
|||||
Changes in belongings and liabilities that relate to operations: |
|||||||
Accounts receivable |
(5,264) |
(3,887) |
|||||
Inventories |
(3,273) |
921 |
|||||
Prepaid bills |
(2,797) |
(4,408) |
|||||
Deposits and different |
(491) |
(408) |
|||||
Other belongings, non-current |
1,930 |
1,339 |
|||||
Accounts payable and accrued liabilities |
(517) |
155 |
|||||
Net money offered by working actions |
7,070 |
9,693 |
|||||
Cash flows from investing actions |
|||||||
Business acquisitions, web of money acquired |
(4,750) |
– |
|||||
Proceeds from funds on buyer notes receivable |
137 |
– |
|||||
Software growth and different expenditures |
(3,853) |
(3,766) |
|||||
Proceeds from disposition of belongings |
5 |
11 |
|||||
Purchases of property and gear |
(7,688) |
(6,109) |
|||||
Net money utilized in investing actions |
(16,149) |
(9,864) |
|||||
Cash flows from financing actions |
|||||||
Repayment of first lien credit score services |
(521,215) |
(1,347) |
|||||
Repayment of incremental time period loans |
(93,575) |
(238) |
|||||
Payment of financed placement price obligations |
(1,287) |
(1,217) |
|||||
Proceeds from time period loans |
569,250 |
– |
|||||
Payment of deferred mortgage prices |
(4,838) |
– |
|||||
Payment of debt prepayment penalties to prior debt holders |
(848) |
– |
|||||
Payments of earlier acquisition obligation |
(154) |
(113) |
|||||
Payments on finance leases and different obligations |
(291) |
(525) |
|||||
Repurchase of inventory |
(10) |
(778) |
|||||
Net money utilized in financing actions |
(52,968) |
(4,218) |
|||||
Effect of trade charges on money and money equivalents |
2 |
(1) |
|||||
Net enhance in money, money equivalents and restricted money |
(62,045) |
(4,390) |
|||||
Cash, money equivalents and restricted money, starting of interval |
94,997 |
81,709 |
|||||
Cash, money equivalents and restricted money, finish of interval |
$ |
32,952 |
$ |
77,319 |
|||
Supplemental money circulation info: |
|||||||
Non-cash investing and financing actions: |
|||||||
Leased belongings obtained in trade for brand new working lease liabilities |
$ |
956 |
$ |
– |
|||
Leased belongings obtained in trade for brand new finance lease liabilities |
$ |
35 |
$ |
288 |
|||
Non-GAAP Financial Measures
To present traders with further info in reference to our outcomes as decided by usually accepted accounting ideas in the United States (“GAAP”), we disclose the next non-GAAP monetary measures: complete Adjusted EBITDA, complete Adjusted EBITDA margin, complete web debt leverage ratio, and Free Cash Flow. These measures usually are not monetary measures calculated in accordance with GAAP and shouldn’t be thought of as an alternative to web earnings, working earnings, money flows, or some other measure calculated in accordance with GAAP, and is probably not corresponding to equally titled measures reported by different firms.
Total Adjusted EBITDA
This press launch and accompanying schedules present sure info concerning Adjusted EBITDA, which is taken into account a non-GAAP monetary measure beneath the foundations of the Securities and Exchange Commission.
We consider that the presentation of complete Adjusted EBITDA is acceptable to offer further info to traders about sure materials non-cash gadgets that we don’t anticipate to proceed on the similar stage sooner or later, in addition to different gadgets we don’t take into account indicative of our ongoing working efficiency. Further, we consider complete Adjusted EBITDA supplies 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 related measures. It additionally supplies administration and traders with further info to estimate our price.
Total Adjusted EBITDA isn’t a presentation made in accordance with GAAP. Our use of the time period complete Adjusted EBITDA might range from others in our {industry}. Total Adjusted EBITDA shouldn’t be thought of as an alternative choice to working earnings or web earnings. Total Adjusted EBITDA has essential limitations as an analytical device, and you shouldn’t take into account it in isolation or as an alternative to the evaluation of our outcomes as reported beneath GAAP.
Our definition of complete Adjusted EBITDA permits us so as to add again sure non-cash fees which can be deducted in calculating web earnings and to deduct sure good points which can be included in calculating web earnings. However, these bills and good points range tremendously, and are troublesome to foretell. They can symbolize the impact of long-term methods versus short-term outcomes. In addition, within the case of fees or bills, this stuff can symbolize the discount of money that could possibly be used for different company functions. Due to those limitations, we rely totally on our GAAP outcomes, resembling web loss, (loss) earnings from operations, EGM Adjusted EBITDA, Table Products Adjusted EBITDA or Interactive Adjusted EBITDA and use Total Adjusted EBITDA solely supplementally.
The complete Adjusted EBITDA dialogue above can also be relevant to its margin measure, which is calculated as complete Adjusted EBITDA as a share of Total Revenue.
The following desk presents a reconciliation of complete Adjusted EBITDA to web loss, which is probably the most comparable GAAP measure:
Total Adjusted EBITDA Reconciliation |
||||||||||||||||||||||||||||||||
Three Months Ended March 31, |
||||||||||||||||||||||||||||||||
(Amounts in hundreds) |
||||||||||||||||||||||||||||||||
2022 |
2021 |
$ Change |
% Change |
|||||||||||||||||||||||||||||
Net loss |
$ |
(12,594) |
$ |
(7,770) |
$ |
(4,824) |
62.1 |
% |
||||||||||||||||||||||||
Income tax expense |
467 |
345 |
122 |
35.4 |
% |
|||||||||||||||||||||||||||
Depreciation and amortization |
18,869 |
18,408 |
461 |
2.5 |
% |
|||||||||||||||||||||||||||
Interest expense, web of curiosity earnings and different |
9,256 |
10,840 |
(1,584) |
(14.6) |
% |
|||||||||||||||||||||||||||
Loss on extinguishment and modification of debt(6) |
8,549 |
– |
8,549 |
100.0 |
% |
|||||||||||||||||||||||||||
Write-downs and different(7) |
93 |
724 |
(631) |
(87.2) |
% |
|||||||||||||||||||||||||||
Other changes(8) |
111 |
(38) |
149 |
(392.1) |
% |
|||||||||||||||||||||||||||
Other non-cash fees(9) |
2,190 |
2,181 |
9 |
0.4 |
% |
|||||||||||||||||||||||||||
Non-cash stock-based compensation(10) |
5,825 |
1,632 |
4,193 |
256.9 |
% |
|||||||||||||||||||||||||||
Total Adjusted EBITDA |
$ |
32,766 |
$ |
26,322 |
$ |
6,444 |
24.5 |
% |
||||||||||||||||||||||||
Three Months Ended March 31, |
||||||||||||||||||||||||||||||||
(Amounts in hundreds, besides Adjusted EBITDA margin) |
||||||||||||||||||||||||||||||||
2022 |
2021 |
$ Change |
% Change |
|||||||||||||||||||||||||||||
Total revenues |
$ |
72,857 |
$ |
55,359 |
$ |
17,498 |
31.6 |
% |
||||||||||||||||||||||||
Total Adjusted EBITDA |
$ |
32,766 |
$ |
26,322 |
$ |
6,444 |
24.5 |
% |
||||||||||||||||||||||||
Total Adjusted EBITDA margin |
45.0 |
% |
47.5 |
% |
(2.5) |
% |
(250 bps) |
(6) Loss on extinguishment and modification of debt primarily pertains to the refinancing of long-term debt, through which deferred mortgage prices and reductions associated to previous senior secured credit score services have been written-off. |
|
(7) Write-downs and different contains gadgets associated to loss on disposal or impairment of long-lived belongings and honest worth changes to contingent consideration. |
|
(8) Other changes are primarily composed of the next: |
|
• |
Costs and stock and receivable valuation fees 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 acquire prices synergies; |
• |
Restructuring and severance prices, which primarily relate to prices incurred by means of the restructuring of the Company’s operations occasionally and different worker severance prices acknowledged within the intervals introduced; and |
• |
Legal and litigation associated prices, which include funds to regulation corporations and settlements for issues which can be exterior the traditional course of enterprise. |
(9) Other non-cash fees are prices associated to non-cash fees and losses on the disposition of belongings, non-cash fees on capitalized set up and supply, which primarily contains the prices to accumulate contracts which can be expensed over the estimated life of every contract, and non-cash fees associated to accretion of contract rights beneath growth agreements. |
|
(10) Non-cash stock-based compensation contains non-cash compensation expense associated to grants of choices, restricted inventory, and different fairness awards. |
|
Total Net Debt Leverage Ratio Reconciliation
The following desk presents a reconciliation of complete web debt and complete web debt leverage ratio:
(Amounts in hundreds, besides web debt leverage ratio) |
March 31, |
December 31, |
|||||
2022 |
2021 |
||||||
Total principal quantity of debt |
$ |
575,727 |
$ |
615,743 |
|||
Less: Cash and money equivalents |
32,932 |
94,977 |
|||||
Total web debt |
$ |
542,795 |
$ |
520,766 |
|||
LTM Adjusted EBITDA |
$ |
129,031 |
$ |
122,587 |
|||
Total web debt leverage ratio |
4.2 |
4.2 |
|||||
Free Cash Flow
This schedule supplies sure info concerning Free Cash Flow, which is taken into account a non-GAAP monetary measure beneath the foundations of the Securities and Exchange Commission.
We outline Free Cash Flow as web money offered by working actions much less money outlays associated to capital expenditures. We outline capital expenditures to incorporate buy of intangible belongings, software program growth and different expenditures, and purchases of property and gear. In arriving at Free Cash Flow, we subtract money outlays associated to capital expenditures from web money offered by working actions as a result of they symbolize long-term investments which can be required for regular enterprise actions. As a consequence, topic to the constraints described under, 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 gadgets which can be in the end inside administration’s discretion to direct, and due to this fact, might suggest that there’s much less or extra cash that’s obtainable than probably the most comparable GAAP measure. Free Cash Flow isn’t meant to symbolize residual money circulation for discretionary expenditures since debt reimbursement necessities and different non-discretionary expenditures usually are not deducted. These limitations are finest addressed by utilizing Free Cash Flow together with the GAAP money circulation numbers.
The following desk presents a reconciliation of Free Cash Flow:
(Amounts in hundreds) |
Three Months |
||
Net money offered by working actions |
$ |
7,070 |
|
Software growth and different expenditures |
(3,853) |
||
Purchases of property and gear |
(7,688) |
||
Free Cash Flow |
$ |
(4,471) |
|
(Amounts in hundreds) |
Three Months |
||
Net money offered by working actions |
$ |
9,693 |
|
Software growth and different expenditures |
(3,766) |
||
Purchases of property and gear |
(6,109) |
||
Free Cash Flow |
$ |
(182) |
View unique content material to obtain multimedia:https://www.prnewswire.com/news-releases/ags-reports-first-quarter-2022-results-301541130.html
SOURCE AGS
https://stockhouse.com/information/press-releases/2022/05/05/ags-reports-first-quarter-2022-results