Third Quarter 2022 Highlights:
- Global EGM Sales Eclipsed 1,000 Units for the First Time
Since Q4 2019
- Domestic EGM Recurring Revenue Topped $45 Million; Up 4% Y/Y and 8% Ahead of Q3
2019
- Domestic Premium EGM Footprint Increased 18% Sequentially;
Eleventh Consecutive Quarterly Increase
- Domestic EGM RPD Exceeded $30
for the Sixth Consecutive Quarter
- Domestic EGM Installed Base Expanded for the Second Straight
Quarter; Up by over 300 Units YTD
- Table Products Adjusted EBITDA Reached a Record $2.6 Million
- On Pace to Achieve Year-End 2022 Net Leverage Target of less
than 4.0x
LAS
VEGAS, Nov. 8, 2022 /PRNewswire/ -- PlayAGS,
Inc. (NYSE: AGS) ("AGS", "us", "we" or the "Company"), a
designer and developer of equipment and services solutions for the
global gaming industry, today reported operating results for
the third quarter ended September 30,
2022.
Commenting upon the Company's third quarter performance,
AGS President and Chief Executive Officer David Lopez said, "Our third quarter financial
results further reflect the people, product and process-driven
operating momentum building within our business. Given the
encouraging initial customer response to the broader and more
diverse new product lineup we recently unveiled at the Global
Gaming Expo ("G2E"), I am even more excited about what lies ahead
for our Company and its key stakeholders."
Kimo Akiona, AGS Chief Financial
Officer added, "I am extremely pleased with the balance sheet
deleveraging progress we have made year-to-date, as we ended the
third quarter with net leverage at 4.0 times. Supported by the
stable operating trends we continue to observe within the business,
I remain confident in our ability to deliver on our year-end net
leverage target of less than 4.0 times and look forward to further
reducing leverage in the years ahead."
Summary of
the Three Months Ended September 30, 2022 and
2021
|
(In thousands,
except per-share and Adjusted EBITDA margin data)
|
|
|
|
Three Months Ended
September 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022
|
|
|
2021
|
|
|
$
Change
|
|
|
%
Change
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EGM
|
|
$
|
71,620
|
|
|
$
|
61,600
|
|
|
$
|
10,020
|
|
|
|
16.3
|
%
|
Table
Products
|
|
|
4,036
|
|
|
|
3,104
|
|
|
|
932
|
|
|
|
30.0
|
%
|
Interactive
|
|
|
2,603
|
|
|
|
2,573
|
|
|
|
30
|
|
|
|
1.2
|
%
|
Total
revenues
|
|
$
|
78,259
|
|
|
$
|
67,277
|
|
|
$
|
10,982
|
|
|
|
16.3
|
%
|
Income from
operations
|
|
$
|
9,031
|
|
|
$
|
7,011
|
|
|
$
|
2,020
|
|
|
|
28.8
|
%
|
Net income
(loss)
|
|
$
|
476
|
|
|
$
|
(1,829)
|
|
|
$
|
2,305
|
|
|
|
(126.0)
|
%
|
Income (loss) per
share
|
|
$
|
0.01
|
|
|
$
|
(0.05)
|
|
|
$
|
0.06
|
|
|
|
(120.0)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EGM
|
|
$
|
31,331
|
|
|
$
|
29,474
|
|
|
$
|
1,857
|
|
|
|
6.3
|
%
|
Table
Products
|
|
$
|
2,561
|
|
|
|
1,628
|
|
|
|
933
|
|
|
|
57.3
|
%
|
Interactive
|
|
$
|
575
|
|
|
|
806
|
|
|
|
(231)
|
|
|
|
(28.7)
|
%
|
Total Adjusted
EBITDA(1)
|
|
$
|
34,467
|
|
|
$
|
31,908
|
|
|
$
|
2,559
|
|
|
|
8.0
|
%
|
Total Adjusted
EBITDA margin(2)
|
|
|
44.0
|
%
|
|
|
47.4
|
%
|
|
|
(3.4)
|
%
|
|
(340 bps)
|
|
Third Quarter 2022 Financial
Results
- Total revenue increased approximately 16% year-over-year to
$78.3 million. Table Products revenue
advanced 30% versus the prior year, reflecting outsized growth
within our progressive installed base, growing demand for our
PAX S single-deck card shuffler, further adoption of
our AGS Arsenal site license offering, and
the Q1 2022 Lucky Lucky side bet acquisition. EGM
revenue increased by more than 15% year-over-year, paced by EGM
sales revenue growth of over 50%. Global EGM sales topped 1,000
units for the first time since Q4 2019, reflecting successful
execution of our strategy to broaden our global customer account
penetration, continued recovery in North American replacement unit
demand and complementary EGM sales into international markets.
Interactive revenue grew to $2.6
million in Q3 2022 as we continue to benefit from outsized
growth within our Real Money Gaming ("RMG") business. Total revenue
improved approximately 2% over the $76.6
million delivered in Q2 2022, representing our seventh
consecutive quarter of sequential total revenue growth.
- Gaming operations, or recurring revenue, increased 6%
year-over-year to $56.6 million.
Domestic EGM recurring revenue improved by 4% versus the prior
year, topping $45 million for the
second consecutive quarter. Our growing premium game mix, improved
core content execution, further implementation of optimization
initiatives, and a stable domestic gaming macroeconomic backdrop
boosted our Q3 2022 Domestic EGM recurring revenue performance.
International EGM recurring revenue advanced 16% year-over-year,
paced by the consistent macroeconomic recovery underway throughout
Mexico. To that end, International
EGM recurring revenue has now increased sequentially for nine
consecutive quarters. Table Products recurring revenue increased by
more than 25% year-over-year to a record $3.8 million, supported by growth across all
product verticals. Table Products revenue has also increased
sequentially for nine consecutive quarters. In aggregate, recurring
revenue accounted for over 70% of our consolidated Q3 2022 revenue
mix.
- We generated $476 thousand of net
income in Q3 2022 compared to a net loss of $1.8 million in the prior year period. The
year-over-year increase in our reported net income was
predominantly driven by our strong year-over-year revenue growth,
which contributed to Q3 2022 operating income of $9.0 million compared to $7.0 million in Q3 2021. Q3 2022 marked the
second consecutive quarter in which we were able to generate
positive net income.
- Total Adjusted EBITDA (non-GAAP)(1) increased 8% year-over-year
to $34.5 million compared to
$31.9 million in Q3 2021.
Year-over-year Adjusted EBITDA growth within the Table Products and
EGM segments of approximately 57% and 6%, respectively, was
partially offset by a decline within the Interactive segment, as we
continued to incur modest incremental expense in order to
accelerate the flow of new AGS game content into the North American
RMG channel over the coming quarters. Adjusted EBITDA increased
modestly on a quarterly sequential basis relative to the
$34.1 million delivered in Q2
2022.
- Total Adjusted EBITDA margin (non-GAAP)(1) was 44.0% compared
to 47.4% in Q3 2021. The year-over-year change in our Adjusted
EBITDA margin was predominantly driven by a greater mix of EGM unit
sales revenue, which carries a lower gross margin as compared to
EGM gaming operations revenue, further post-COVID normalization in
our discretionary business operating expenses and market-level
inflationary cost fluctuations. Total Adjusted EBITDA margin
compressed modestly versus the 44.6% achieved in Q2 2022, largely a
function of unfavorable changes in revenue and product
mix.
(1)
|
Adjusted EBITDA and
Adjusted EBITDA margin are non-GAAP measures, see non-GAAP
reconciliation below.
|
(2)
|
Basis points
("bps").
|
EGM
|
|
Three Months Ended
September 30, 2022 compared to Three Months
Ended September 30, 2021
|
|
(Amounts in
thousands, except unit data)
|
|
Three Months Ended
September 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022
|
|
|
2021
|
|
|
$
Change
|
|
|
%
Change
|
|
EGM segment
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gaming
operations
|
|
$
|
50,233
|
|
|
$
|
47,705
|
|
|
$
|
2,528
|
|
|
|
5.3
|
%
|
Equipment
sales
|
|
|
21,387
|
|
|
|
13,895
|
|
|
|
7,492
|
|
|
|
53.9
|
%
|
Total EGM
revenues
|
|
|
71,620
|
|
|
|
61,600
|
|
|
|
10,020
|
|
|
|
16.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EGM Adjusted
EBITDA
|
|
$
|
31,331
|
|
|
$
|
29,474
|
|
|
$
|
1,857
|
|
|
|
6.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EGM Business Segment
Key Performance Indicators ("KPI's")
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EGM gaming
operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EGM installed
base:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class II
|
|
|
11,324
|
|
|
|
11,272
|
|
|
|
52
|
|
|
|
0.5
|
%
|
Class III
|
|
|
4,934
|
|
|
|
4,495
|
|
|
|
439
|
|
|
|
9.8
|
%
|
Domestic installed
base, end of period
|
|
|
16,258
|
|
|
|
15,767
|
|
|
|
491
|
|
|
|
3.1
|
%
|
International
installed base, end of period
|
|
|
6,274
|
|
|
|
7,896
|
|
|
|
(1,622)
|
|
|
|
(20.5)
|
%
|
Total installed
base, end of period
|
|
|
22,532
|
|
|
|
23,663
|
|
|
|
(1,131)
|
|
|
|
(4.8)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EGM revenue per day
("RPD"):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic revenue per
day
|
|
$
|
31.13
|
|
|
$
|
31.08
|
|
|
$
|
0.05
|
|
|
|
0.2
|
%
|
International revenue
per day
|
|
$
|
7.34
|
|
|
$
|
5.11
|
|
|
$
|
2.23
|
|
|
|
43.6
|
%
|
Total revenue per
day
|
|
$
|
24.31
|
|
|
$
|
22.40
|
|
|
$
|
1.91
|
|
|
|
8.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EGM equipment
sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EGM units
sold
|
|
|
1,014
|
|
|
|
663
|
|
|
|
351
|
|
|
|
52.9
|
%
|
Average sales price
("ASP")
|
|
$
|
19,146
|
|
|
$
|
18,970
|
|
|
|
176
|
|
|
|
0.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EGM Quarterly Results
Domestic Gaming Operations
- Domestic EGM gaming operations, or recurring revenue, increased
approximately 4% year-over-year to $45.9
million, accounting for approximately 70% of our total Q3
2022 domestic EGM revenue. Continued growth within our domestic EGM
installed base, supported by an over 70% year-over-year increase in
the number of premium EGM units installed, further installed base
optimization and a stable gaming macroeconomic backdrop drove our
improved quarterly recurring revenue performance versus the prior
year. Domestic EGM recurring revenue topped $45 million for the second consecutive quarter
and exceeded Q3 2019 levels by approximately 8%.
- Our domestic EGM installed base expanded to 16,258 units at the
end of Q3 2022, representing an increase of 491 units
year-over-year and 231 units versus the prior sequential quarter.
Our domestic EGM installed base has increased for two consecutive
quarters and has expanded by 319 units year-to-date. Installed base
growth in the year-over-year, year-to-date and quarterly sequential
periods was paced by outsized growth within our premium EGM
footprint, as we continue to leverage our strong game performance,
diverse array of cabinet configurations, enhanced complement of
game mechanics, and deep portfolio of premium game content to
further penetrate the premium EGM segment. Additionally, our
decision to strategically expand our Class II EGM installed base
within the state of Texas
following the favorable Supreme Court ruling in June further
supported our domestic EGM installed base growth in Q3
2022.
- Our premium EGM installed base increased by over 70%
year-over-year, accounting for 14% of our domestic EGM installed
base at the end of Q3 2022 compared to 9% and 12% at the end of Q3
2021 and Q2 2022, respectively. Our premium EGM installed base
increased by approximately 18% on a quarterly sequential basis,
exceeding the 15% sequential growth rate achieved in Q2 2022 and
marking our eleventh consecutive quarter of premium unit growth.
Our premium games continue to deliver superior RPD performance, as
compared to the domestic average, strengthening the per unit
earnings power of our domestic EGM installed base and enhancing the
returns we are able to achieve on our machine-related growth
capital investments.
- Domestic EGM RPD increased modestly year-over-year to
$31.13, exceeding $30 for the sixth consecutive quarter. Outsized
premium unit growth, continued improvement in our core content
execution, further fleet optimization, and a stable gaming
macroeconomic environment paced our improved Q3 2022 domestic EGM
RPD performance.
International Gaming Operations
- International EGM gaming operations, or recurring revenue,
totaled $4.3 million compared to
$3.7 million in Q3 2021 and improved
approximately 1% over Q2 2022 levels, marking the ninth consecutive
quarterly sequential increase.
- Our international EGM installed base totaled 6,274 units at
September 30, 2022, representing a
quarterly sequential decrease of 495 units. During Q3 2022, we
elected to remove the approximately 7% of units previously
classified as inactive from our reported international EGM
installed base as we did not see a high degree of probability the
units would return to operation. Beginning with Q3 2022, and in all
subsequent quarters, we will no longer designate units as active
and inactive, rather it should be assumed all of the reported units
are active.
- International EGM RPD was $7.34,
representing a quarterly sequential increase of approximately 10%
relative to the $6.69 achieved in Q2
2022. A generally stable macroeconomic backdrop in Mexico and the removal of over 470 units
previously classified as inactive from our reported international
EGM installed base paced the sequential improvement in
international EGM RPD performance.
EGM Equipment Sales
- We sold 1,014 EGM units in Q3 2022, representing an increase of
over 50% compared to the 663 units sold in Q3 2021 and our highest
level achieved since Q4 2019. The increased depth and breadth of
our core game content catalog, the strategic broadening of our
customer account penetration, continued success in capturing an
outsized share of Historical Horse Racing ("HHR") sales
opportunities, a steady recovery in core North American replacement
unit demand, and additional complementary international sales
combined to drive our improved EGM unit sales performance versus
the prior year. EGM unit sales increased approximately 9% relative
to the 934 units sold in Q2 2022.
- Average sales price ("ASP") was $19,146 versus $18,970 in Q3 2021, topping $19,000 for the fourth consecutive quarter. Our
ASP performance reflects a greater mix of premium-priced Orion
Curve cabinets and continued successful implementation of
our price integrity initiatives.
- We sold units into 26 U.S. states, four Canadian provinces
throughout Q3 2022, as we continue to successfully implement
strategic initiatives intended to broaden our customer account
penetration, particularly with larger corporate buyers.
Product Highlights
- During Q3 2022, we began to trial our newest gaming cabinet,
the Spectra UR43. As a testament to the product's strong
initial performance, Spectra recently received top
honors in the "New Portrait Upright" category of the October
2022 Eilers-Fantini Cabinet Performance
Report with a reported index of over 2.5x house
average. Spectra is currently trialing across a variety
of different end markets, with its two launch titles, Long
Bao Bao and Shamrock Fortunes, consistently
delivering performance well above house and zone
average. Spectra will soft launch in Q4 2022, with
a full-scale commercial launch planned for Q1 2023. We currently
have over 30 titles under development to
support Spectra during its first year of
commercialization.
- Our first two high-denomination game themes, Mega
Diamond and Gold Inferno, recently went live,
with the initial installs delivering strong game performance both
inside and outside of the high-limit room. High-limit games'
structurally superior win per day dynamics should boost our
domestic EGM fleet optimization initiatives as we are able to build
a critical mass of high-denomination games within our domestic EGM
installed base. Additionally, the expansion of our content offering
into the high-denomination vertical creates unique product
bundling opportunities, which should drive incremental
domestic EGM unit sales volume.
- Our Orion Curve Premium installed base increased by
over 40% on a quarterly sequential basis, as the product continues
to establish critical mass across both Class II and Class III
jurisdictions. The continued strong performance of
our Rakin Bacon Deluxe launch title, our
robust Curve Premium game theme pipeline, consisting of
over 25 titles, and the expanded breadth of our product
configuration and merchandising offerings should allow us to
further broaden our penetration of the higher-yielding premium game
segment.
(3)
|
Domestic" includes both
the United States and Canada.
|
Table
Products
|
|
Three Months Ended
September 30, 2022 compared to Three Months Ended September
30, 2021
|
|
(Amounts in
thousands, except unit data)
|
|
Three Months Ended
September 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022
|
|
|
2021
|
|
|
$
Change
|
|
|
%
Change
|
|
Table Products
segment revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gaming
operations
|
|
$
|
3,756
|
|
|
$
|
2,953
|
|
|
$
|
803
|
|
|
|
27.2
|
%
|
Equipment
sales
|
|
|
280
|
|
|
|
151
|
|
|
|
129
|
|
|
|
85.4
|
%
|
Total Table
Products revenues
|
|
$
|
4,036
|
|
|
$
|
3,104
|
|
|
$
|
932
|
|
|
|
30.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table Products
Adjusted EBITDA
|
|
$
|
2,561
|
|
|
$
|
1,628
|
|
|
$
|
933
|
|
|
|
57.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table Products unit
information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table products
installed base, end of period(4)
|
|
|
4,969
|
|
|
|
3,783
|
|
|
|
1,186
|
|
|
|
31.4
|
%
|
Average monthly lease
price
|
|
$
|
243
|
|
|
$
|
260
|
|
|
$
|
(17)
|
|
|
|
(6.5)
|
%
|
Table Products Quarterly Results
- Gaming operations, or recurring revenue, increased
approximately 7% sequentially to a record $3.8 million. Recurring revenue has increased
sequentially for nine consecutive quarters, supported by growing
customer demand for our industry-leading progressive products,
greater customer adoption of our all-inclusive site license
offering, the AGS Arsenal, and further penetration of the
single-deck specialty game card shuffler market with PAX S.
Recurring revenue grew by over 25% relative to the $3.0 million achieved in Q3 2021.
- Equipment sales revenue was approximately $280 thousand, representing the second highest
level ever achieved within the segment. Sales revenue benefitted
from initial PAX S customer purchases and sales of
other items within our suite of table utility products.
- Our installed base expanded by approximately 180 units on a
quarterly sequential basis to a record 4,969 units(4), led by a
nearly 70-unit increase in our progressive installed base. Our
installed base increased by 1,186 units year-over-year, supported
by growth in all Table Product categories, including progressives,
side bets, premium games, and shufflers, and the addition of units
acquired in conjunction with the Q1 2022 Lucky
Lucky side bet acquisition.
- Our average monthly lease price ("ALP") decreased approximately
7% year-over-year to $243, with the
decline predominantly driven by a higher mix of lower-yielding side
bet units resulting from the Lucky Lucky acquisition
and an increase in trial units in connection with our PAX
S rollout.
- We ended Q3 2022 with 1,800 progressive units installed,
representing a year-over-year increase of approximately 25%. Our
progressive installed base increased by approximately 4%
sequentially, paced by the addition of over 50 units in conjunction
with a single new casino opening. Our Bonus Spin Xtreme
("BSX") progressive installed base expanded by over 40%
sequentially and has increased more than fourfold year-to-date, as
casino operators continue to leverage the product to activate
progressives on latent roulette, craps and specialty game tables,
and further optimize their overall table revenue
performance.
- More than 80 PAX S specialty game card shufflers
were live in 26 unique casinos across twelve different
jurisdictions as of September 30,
2022. We expanded our PAX S footprint by
over 50 units in Q3 2022. Supported by the receipt of additional
jurisdictional regulatory approvals, the product's successful
launch-to-date and the constructive customer feedback we continue
to receive, we expect PAX S demand to accelerate
in the coming quarters.
- We were live with 23 AGS Arsenal site licenses at
the end of Q3 2022 compared to 13 in the prior year period.
The Arsenal's compelling value proposition and our
organizational commitment to investing in Table Product innovation
continue to drive incremental interest in our site license
offering.
- Table Products Adjusted EBITDA increased 57% year-over-year to
a record $2.6 million. Outsized
growth in both equipment sales and recurring revenue, coupled with
an unwavering focus on segment-level cost discipline, produced
strong flow through in the quarter. Adjusted EBITDA margin was
63.5% compared to 52.4% in Q3 2021, with the increase largely
attributable to the operating leverage achieved within the
business.
(4) As a result of a
comprehensive review of our unit counts, the Table Products
installed base and average monthly lease price have been revised in
the prior period to reflect a more accurate count of the products
on lease. The review resulted in no changes to revenues or Adjusted
EBITDA.
|
Interactive
|
|
Three Months Ended
September 30, 2022 compared to Three Months Ended
September 30, 2021
|
|
(Amounts in
thousands)
|
|
Three Months Ended
September 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022
|
|
|
2021
|
|
|
$
Change
|
|
|
%
Change
|
|
Interactive segment
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gaming
Operations
|
|
$
|
2,603
|
|
|
$
|
2,573
|
|
|
$
|
30
|
|
|
|
1.2
|
%
|
Total Interactive
revenue
|
|
$
|
2,603
|
|
|
$
|
2,573
|
|
|
$
|
30
|
|
|
|
1.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interactive Adjusted
EBITDA
|
|
$
|
575
|
|
|
$
|
806
|
|
|
$
|
(231)
|
|
|
|
(28.7)
|
%
|
Interactive Quarterly Results
- Interactive revenue increased modestly year-over-year to
$2.6 million. Our real-money gaming
business accounted for 85% of Q3 2022 segment-level revenue
compared to 78% in Q3 2021.
- RMG revenue increased approximately 10% year-over-year,
supported by the strong performance of player-favorite AGS game
themes in the North American RMG channel, the distribution of AGS
content into new North American jurisdictions, and the broadening
of our B2C operator partner relationships. North American-sourced
RMG revenues accounted for approximately 88% of our Q3 2022 total
RMG revenue mix compared to 70% in Q3 2021. RMG revenue increased
approximately 6% sequentially, driven by the activation of
additional B2C operator partners and the introduction of new AGS
game content into the RMG channel.
- Interactive Adjusted EBITDA was $575
thousand, marking the segment's eleventh consecutive quarter
of positive Adjusted EBITDA performance. Interactive Adjusted
EBITDA declined modestly year-over-year, as we incurred incremental
expense to accelerate the flow of new AGS content into the North
American RMG channel. We expect these incremental investments,
along with recent strategic game development talent acquisition, to
supplement the rate of growth we are able to achieve within our
Interactive business in the coming quarters.
- Our land-based slot content continues to resonate in the North
American RMG channel, as reflected by our top-five supplier slot
indexing ranking in the October 2022
Eilers-Fantini Online Game Performance Report. Notably, our
Capital Gains and Golden Wins
Deluxe game themes achieved top-25 rankings within the
report's "Overall" and "New" performance categories, respectively.
Our online game content catalog, consisting of over 30 proven AGS
land-based titles, is live in the majority of the most prominent
regulated North American online jurisdictions, including PA, MI,
NJ, Ontario, Quebec, and Alberta, and we continue to prepare for
scheduled upcoming launches into additional jurisdictions,
including British Columbia, CT and
WV.
Liquidity and Capital Expenditures
As of September 30, 2022, the Company had an available
cash balance of $33.4 million
and $40.0 million of availability
under its undrawn revolving credit facility, resulting in
total available liquidity of $73.4 million.
The total principal amount of debt outstanding, as of
September 30, 2022, was $572.8 million compared to $615.7 million at December
31, 2021. Total net debt, which is the principal amount
of debt outstanding less cash and cash equivalents, was
approximately $539.4 million as
of September 30, 2022, conveying a total net debt leverage
ratio of 4.0 times compared to 4.2 times as of December 31, 2021(5).
Third quarter 2022 capital expenditures totaled
$19.7 million, bringing
year-to-date capital expenditures through September 30, 2022
to $49.9 million. Gaming
equipment-related investments into our EGM and Table Product
installed bases accounted for approximately 60% of capital
expenditures incurred year-to-date. Driven by unwavering demand for
our high-performing and growing portfolio of premium EGM products
and growing customer interest in our
recently-unveiled Spectra UR43 gaming cabinet
in response to strong initial game performance, we expect to
incur full-year capital expenditures near the upper end of our
previously articulated $62 to
$67 million range.
2022 Net Leverage Target
Supported by our solid operational and financial execution
year-to-date, the accelerating new product momentum developing
across multiple segments of our business and the consistency we
continue to observe within our core day-to-day operations, we
remain on pace to deliver upon our year-end 2022 net leverage
target of less than 4.0 times.
(5) Total Adjusted
EBITDA and Total Net Debt Leverage Ratio are non-GAAP
measures, see non-GAAP reconciliation below.
|
Conference Call and Webcast
AGS leadership will host a conference call to review the
Company's third quarter 2022 results on
November 8, 2022, at 5 p.m. ET.
Participants may access a live webcast of the conference call,
along with a slide presentation reviewing the quarterly results,
at the Company's Investor Relations website
http://investors.playags.com. A replay of the webcast will be
available on the website following the live event. U.S. and
Canadian participants may access the call live by telephone by
calling +1 (833) 927-1758, while international participants should
call +1 (929) 526-1599. The conference call access code
is 151571.
Company Overview
AGS is a global company focused on creating a diverse mix of
entertaining gaming experiences for every kind of player. Our roots
are firmly planted in the Class II tribal gaming market, but our
customer-centric culture and remarkable growth have helped us
branch out to become one of the most all-inclusive commercial
gaming equipment suppliers in the world. Powered by high-performing
Class II and Class III slot products, an expansive table products
portfolio, highly rated social casino, real-money gaming solutions
for players and operators, and best-in-class service, we offer an
unmatched value proposition for our casino partners. Learn more
at playags.com.
AGS Investor & Media Contacts:
Brad Boyer, Senior Vice
President Corporate Operations and Investor
Relations
investors@playags.com
Julia Boguslawski, Chief
Marketing Officer
jboguslawski@playags.com
©2022 PlayAGS, Inc. Products referenced herein are sold by
AGS LLC or other subsidiaries of PlayAGS, Inc. Solely for
convenience, marks, trademarks and trade names referred to in this
press release appear without
the ® and TM and SM symbols,
but such references are not intended to indicate, in any way, that
PlayAGS, Inc. will not assert, to the fullest extent under
applicable law, its rights or the rights of the applicable licensor
to these marks, trademarks and trade names.
Forward-Looking Statement
This release contains, and oral statements made from time to
time by our representatives may contain, forward-looking statements
based on management's current expectations and projections, which
are intended to qualify for the safe 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 include statements regarding the proposed public
offering and other statements identified by words such as
"believe," "will," "may," "might," "likely," "expect,"
"anticipates," "intends," "plans," "seeks," "estimates,"
"believes," "continues," "projects" and similar references to
future periods, or by the inclusion of forecasts or projections.
All forward-looking statements are based on current expectations
and projections of future events.
These forward-looking statements reflect the current views,
models, and assumptions of AGS, and are subject to various risks
and uncertainties that cannot be predicted or qualified and could
cause actual results in AGS's performance to differ materially from
those expressed or implied by such forward looking statements.
These risks and uncertainties include, but are not limited to, the
ability of AGS to maintain strategic alliances, unit placements or
installations, grow revenue, garner new market share, secure new
licenses in new jurisdictions, successfully develop or place
proprietary product, comply with regulations, have its games
approved by relevant jurisdictions, the effects of COVID-19 on the
Company's business and results of operations and other factors set
forth under Item 1. "Business," Item 1A. "Risk Factors" in AGS's
Annual Report on Form 10-K, filed with the Securities and Exchange
Commission. All forward-looking statements made herein are
expressly qualified in their entirety by these cautionary
statements and there can be no assurance that the actual results,
events or developments referenced herein will occur or be realized.
Readers are cautioned that all forward-looking statements speak
only to the facts and circumstances present as of the date of this
press release. AGS expressly disclaims any obligation to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
PLAYAGS,
INC.
|
CONSOLIDATED BALANCE
SHEETS
|
(amounts in
thousands, except share and per share data)
|
|
|
|
September
30,
|
|
|
December
31,
|
|
|
|
2022
|
|
|
2021
|
|
Assets
|
|
Current
assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
33,447
|
|
|
$
|
94,977
|
|
Restricted
cash
|
|
|
20
|
|
|
|
20
|
|
Accounts receivable,
net of allowance of $2,099 and $1,993, respectively
|
|
|
58,051
|
|
|
|
49,426
|
|
Inventories
|
|
|
35,625
|
|
|
|
27,534
|
|
Prepaid
expenses
|
|
|
6,730
|
|
|
|
4,878
|
|
Deposits and
other
|
|
|
9,696
|
|
|
|
8,240
|
|
Total current
assets
|
|
|
143,569
|
|
|
|
185,075
|
|
Property and
equipment, net
|
|
|
79,386
|
|
|
|
74,916
|
|
Goodwill
|
|
|
287,106
|
|
|
|
285,546
|
|
Intangible
assets
|
|
|
146,584
|
|
|
|
160,044
|
|
Deferred tax
asset
|
|
|
7,342
|
|
|
|
7,333
|
|
Operating lease
assets
|
|
|
11,653
|
|
|
|
12,503
|
|
Other
assets
|
|
|
9,783
|
|
|
|
7,394
|
|
Total
assets
|
|
$
|
685,423
|
|
|
$
|
732,811
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
18,274
|
|
|
$
|
9,439
|
|
Accrued
liabilities
|
|
|
35,667
|
|
|
|
39,165
|
|
Current maturities of
long-term debt
|
|
|
6,090
|
|
|
|
6,877
|
|
Total current
liabilities
|
|
|
60,031
|
|
|
|
55,481
|
|
Long-term
debt
|
|
|
550,945
|
|
|
|
599,281
|
|
Deferred tax
liability, non-current
|
|
|
3,476
|
|
|
|
2,653
|
|
Operating lease
liabilities, long-term
|
|
|
10,960
|
|
|
|
11,871
|
|
Other long-term
liabilities
|
|
|
15,788
|
|
|
|
21,954
|
|
Total
liabilities
|
|
|
641,200
|
|
|
|
691,240
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
|
|
|
Preferred stock at
$0.01 par value; 50,000,000 shares authorized, no shares issued and
outstanding
|
|
|
-
|
|
|
|
-
|
|
Common stock at $0.01
par value; 450,000,000 shares authorized at September 30, 2022 and
at December 31, 2021; and 37,704,806 and 36,943,770 shares issued
and outstanding at September 30, 2022 and December 31, 2021,
respectively
|
|
|
377
|
|
|
|
369
|
|
Additional paid-in
capital
|
|
|
405,116
|
|
|
|
392,161
|
|
Accumulated
deficit
|
|
|
(355,666)
|
|
|
|
(344,889)
|
|
Accumulated other
comprehensive loss
|
|
|
(5,604)
|
|
|
|
(6,070)
|
|
Total stockholders'
equity
|
|
|
44,223
|
|
|
|
41,571
|
|
Total liabilities
and stockholders' equity
|
|
$
|
685,423
|
|
|
$
|
732,811
|
|
PLAYAGS,
INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
|
(amounts in
thousands, except per share data)
|
|
|
|
Three Months Ended
September
30,
|
|
|
|
2022
|
|
|
2021
|
|
Revenues
|
|
|
|
|
|
|
|
|
Gaming
operations
|
|
$
|
56,592
|
|
|
$
|
53,231
|
|
Equipment
sales
|
|
|
21,667
|
|
|
|
14,046
|
|
Total
revenues
|
|
|
78,259
|
|
|
|
67,277
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Cost of gaming
operations(6)
|
|
|
10,375
|
|
|
|
9,641
|
|
Cost of equipment
sales(6)
|
|
|
11,857
|
|
|
|
6,805
|
|
Selling, general and
administrative
|
|
|
16,955
|
|
|
|
15,913
|
|
Research and
development
|
|
|
9,702
|
|
|
|
9,269
|
|
Write-downs and other
charges
|
|
|
1,389
|
|
|
|
197
|
|
Depreciation and
amortization
|
|
|
18,950
|
|
|
|
18,441
|
|
Total operating
expenses
|
|
|
69,228
|
|
|
|
60,266
|
|
Income from
operations
|
|
|
9,031
|
|
|
|
7,011
|
|
Other expense
(income)
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
10,291
|
|
|
|
10,700
|
|
Interest
income
|
|
|
(305)
|
|
|
|
(263)
|
|
Loss on extinguishment
and modification of debt
|
|
|
-
|
|
|
|
-
|
|
Other expense
(income)
|
|
|
445
|
|
|
|
1,126
|
|
Loss before income
taxes
|
|
|
(1,400)
|
|
|
|
(4,552)
|
|
Income tax benefit
(expense)
|
|
|
1,876
|
|
|
|
2,723
|
|
Net income
(loss)
|
|
|
476
|
|
|
|
(1,829)
|
|
Foreign currency
translation adjustment
|
|
|
23
|
|
|
|
(1,612)
|
|
Total comprehensive
income (loss)
|
|
$
|
499
|
|
|
$
|
(3,441)
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
income (loss) per common share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.01
|
|
|
$
|
(0.05)
|
|
Diluted
|
|
$
|
0.01
|
|
|
$
|
(0.05)
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
37,244
|
|
|
|
36,725
|
|
Diluted
|
|
|
37,244
|
|
|
|
36,725
|
|
(6) Exclusive of
depreciation and amortization.
|
PLAYAGS,
INC.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS (in thousands)
|
|
|
|
Nine Months Ended
September 30,
|
|
|
|
2022
|
|
|
2021
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
(10,576)
|
|
|
$
|
(13,482)
|
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
56,979
|
|
|
|
55,460
|
|
Accretion of contract
rights under development agreements and placement fees
|
|
|
4,790
|
|
|
|
4,916
|
|
Amortization of
deferred loan costs and discount
|
|
|
2,167
|
|
|
|
3,439
|
|
Write-off of deferred
loan costs and discount
|
|
|
1,586
|
|
|
|
-
|
|
Cash paid for debt
prepayment penalties to prior debt holders
|
|
|
848
|
|
|
|
-
|
|
Stock-based
compensation expense
|
|
|
10,572
|
|
|
|
8,856
|
|
Provision for bad
debts
|
|
|
402
|
|
|
|
313
|
|
Disposal of long-lived
assets
|
|
|
337
|
|
|
|
388
|
|
Impairment of
assets
|
|
|
21
|
|
|
|
653
|
|
Fair value adjustment
of contingent consideration
|
|
|
1,466
|
|
|
|
(56)
|
|
Provision for deferred
income tax (benefit)
|
|
|
936
|
|
|
|
159
|
|
Changes in assets and
liabilities that relate to operations:
|
|
|
-
|
|
|
|
|
|
Accounts
receivable
|
|
|
(8,868)
|
|
|
|
(10,646)
|
|
Inventories
|
|
|
(6,856)
|
|
|
|
945
|
|
Prepaid
expenses
|
|
|
(2,259)
|
|
|
|
(3,862)
|
|
Deposits and
other
|
|
|
(1,266)
|
|
|
|
(3,565)
|
|
Other assets,
non-current
|
|
|
(134)
|
|
|
|
3,054
|
|
Accounts payable and
accrued liabilities
|
|
|
2,429
|
|
|
|
7,625
|
|
Net cash provided by
operating activities
|
|
|
52,574
|
|
|
|
54,197
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
Business acquisitions,
net of cash acquired
|
|
|
(4,750)
|
|
|
|
-
|
|
Proceeds from payments
on customer notes receivable
|
|
|
137
|
|
|
|
-
|
|
Software development
and other expenditures
|
|
|
(15,439)
|
|
|
|
(11,329)
|
|
Proceeds from
disposition of assets
|
|
|
15
|
|
|
|
35
|
|
Purchases of property
and equipment
|
|
|
(34,484)
|
|
|
|
(24,938)
|
|
Net cash used in
investing activities
|
|
|
(54,521)
|
|
|
|
(36,232)
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
Repayment of prior
first lien credit facilities
|
|
|
(521,215)
|
|
|
|
(4,040)
|
|
Repayment of first
lien credit facilities
|
|
|
(2,876)
|
|
|
|
-
|
|
Repayment of
incremental term loans
|
|
|
(93,575)
|
|
|
|
(713)
|
|
Payment of financed
placement fee obligations
|
|
|
(3,917)
|
|
|
|
(3,690)
|
|
Proceeds from term
loans
|
|
|
569,250
|
|
|
|
-
|
|
Payment of deferred
loan costs
|
|
|
(4,838)
|
|
|
|
(848)
|
|
Payment of debt
prepayment penalties to prior debt holders
|
|
|
(848)
|
|
|
|
-
|
|
Payments of previous
acquisition obligation
|
|
|
(445)
|
|
|
|
(416)
|
|
Payments on finance
leases and other obligations
|
|
|
(920)
|
|
|
|
(1,195)
|
|
Repurchase of
stock
|
|
|
(201)
|
|
|
|
(905)
|
|
Net cash used in
financing activities
|
|
|
(59,585)
|
|
|
|
(11,807)
|
|
Effect of exchange
rates on cash and cash equivalents
|
|
|
2
|
|
|
|
(3)
|
|
Net increase in
cash, cash equivalents and restricted cash
|
|
|
(61,530)
|
|
|
|
6,155
|
|
Cash, cash
equivalents and restricted cash, beginning of period
|
|
|
94,997
|
|
|
|
81,709
|
|
Cash, cash
equivalents and restricted cash, end of period
|
|
$
|
33,467
|
|
|
$
|
87,864
|
|
|
|
|
|
|
|
|
|
|
Supplemental cash
flow information:
|
|
|
|
|
|
|
|
|
Non-cash investing
and financing activities:
|
|
|
|
|
|
|
|
|
Leased assets obtained
in exchange for new operating lease liabilities
|
|
$
|
956
|
|
|
$
|
3,042
|
|
Leased assets obtained
in exchange for new finance lease liabilities
|
|
$
|
354
|
|
|
$
|
317
|
|
Non-GAAP Financial Measures
To provide investors with additional information in connection
with our results as determined by generally accepted accounting
principles in the United States
("GAAP"), we disclose the following non-GAAP financial measures:
total Adjusted EBITDA, total Adjusted EBITDA margin, total net debt
leverage ratio, and Free Cash Flow. These measures are not
financial measures calculated in accordance with GAAP and should
not be considered as a substitute for net income (loss), income
from operations, cash flows, or any other measure calculated in
accordance with GAAP, and may not be comparable to similarly titled
measures reported by other companies.
Total Adjusted EBITDA
This press release and accompanying schedules provide certain
information regarding Adjusted EBITDA, which is considered a
non-GAAP financial measure under the rules of the Securities and
Exchange Commission.
We believe that the presentation of total Adjusted EBITDA is
appropriate to provide additional information to investors about
certain material non-cash items that we do not expect to continue
at the same level in the future, as well as other items we do not
consider indicative of our ongoing operating performance. Further,
we believe total Adjusted EBITDA provides a meaningful measure of
operating profitability because we use it for evaluating our
business performance, making budgeting decisions, and comparing our
performance against that of other peer companies using similar
measures. It also provides management and investors with additional
information to estimate our value.
Total Adjusted EBITDA is not a presentation made in accordance
with GAAP. Our use of the term total Adjusted EBITDA may vary from
others in our industry. Total Adjusted EBITDA should not be
considered as an alternative to operating income or net income.
Total Adjusted EBITDA has important limitations as an analytical
tool, and you should not consider it in isolation or as a
substitute for the analysis of our results as reported under
GAAP.
Our definition of total Adjusted EBITDA allows us to add back
certain non-cash charges that are deducted in calculating net
income and to deduct certain gains that are included in calculating
net income. However, these expenses and gains vary greatly, and are
difficult to predict. They can represent the effect of long-term
strategies as opposed to short-term results. In addition, in the
case of charges or expenses, these items can represent the
reduction of cash that could be used for other corporate purposes.
Due to these limitations, we rely primarily on our GAAP results,
such as net income (loss), income from operations, EGM Adjusted
EBITDA, Table Products Adjusted EBITDA or Interactive Adjusted
EBITDA and use Total Adjusted EBITDA only supplementally.
The total Adjusted EBITDA discussion above is also applicable to
its margin measure, which is calculated as total Adjusted EBITDA as
a percentage of total revenues.
The following table presents a reconciliation of total Adjusted
EBITDA to net loss, which is the most comparable GAAP measure:
Total Adjusted
EBITDA Reconciliation
|
|
|
|
Three Months Ended
September 30,
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022
|
|
|
2021
|
|
|
$
Change
|
|
|
%
Change
|
|
Net income
(loss)
|
|
$
|
476
|
|
|
$
|
(1,829)
|
|
|
$
|
2,305
|
|
|
|
(126.0)
|
%
|
Income tax
benefit
|
|
|
(1,876)
|
|
|
|
(2,723)
|
|
|
|
847
|
|
|
|
(31.1)
|
%
|
Depreciation and
amortization
|
|
|
18,950
|
|
|
|
18,441
|
|
|
|
509
|
|
|
|
2.8
|
%
|
Interest expense, net
of interest income and other
|
|
|
10,431
|
|
|
|
11,563
|
|
|
|
(1,132)
|
|
|
|
(9.8)
|
%
|
Write-downs and
other(7)
|
|
|
1,389
|
|
|
|
197
|
|
|
|
1,192
|
|
|
|
605.1
|
%
|
Other
adjustments(8)
|
|
|
585
|
|
|
|
235
|
|
|
|
350
|
|
|
|
148.9
|
%
|
Other non-cash
charges(9)
|
|
|
2,171
|
|
|
|
2,030
|
|
|
|
141
|
|
|
|
6.9
|
%
|
Non-cash stock-based
compensation(10)
|
|
|
2,341
|
|
|
|
3,994
|
|
|
|
(1,653)
|
|
|
|
(41.4)
|
%
|
Total Adjusted
EBITDA
|
|
$
|
34,467
|
|
|
$
|
31,908
|
|
|
$
|
2,559
|
|
|
|
8.0
|
%
|
|
|
Three Months Ended
September 30,
|
|
(Amounts in
thousands, except total Adjusted EBITDA margin)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022
|
|
|
2021
|
|
|
$
Change
|
|
|
%
Change
|
|
Total
revenues
|
|
$
|
78,259
|
|
|
$
|
67,277
|
|
|
$
|
10,982
|
|
|
|
16.3
|
%
|
Total Adjusted
EBITDA
|
|
$
|
34,467
|
|
|
$
|
31,908
|
|
|
$
|
2,559
|
|
|
|
8.0
|
%
|
Total Adjusted EBITDA
margin
|
|
|
44.0
|
%
|
|
|
47.4
|
%
|
|
|
(3.4)
|
%
|
|
(340 bps)
|
|
(7) Write-downs
and other includes items related to loss on disposal or
impairment of long-lived assets and fair value adjustments to
contingent consideration.
|
(8) Other
adjustments are primarily composed of the
following:
|
•
|
Costs and inventory and
receivable valuation charges associated with the COVID-19 pandemic,
professional fees incurred for projects, costs incurred related to
public offerings, contract cancellation fees and other transaction
costs deemed to be non-operating in nature;
|
•
|
Acquisition and
integration related costs related to the purchase of businesses and
to integrate operations and obtain costs synergies;
|
•
|
Restructuring and
severance costs, which primarily relate to costs incurred through
the restructuring of the Company's operations from time to time and
other employee severance costs recognized in the periods presented;
and
|
•
|
Legal and litigation
related costs, which consist of payments to law firms and
settlements for matters that are outside the normal course of
business.
|
(9) Other
non-cash charges are costs related to non-cash charges and
losses on the disposition of assets, non-cash charges on
capitalized installation and delivery, which primarily includes the
costs to acquire contracts that are expensed over the estimated
life of each contract, and non-cash charges related to accretion of
contract rights under development agreements.
|
(10) Non-cash
stock-based compensation includes non-cash compensation
expense related to grants of options, restricted stock, and other
equity awards.
|
Total Net Debt
Leverage Ratio Reconciliation
|
|
The following table
presents a reconciliation of total net debt and total net debt
leverage ratio:
|
|
(Amounts in
thousands, except total net debt leverage ratio)
|
|
September
30,
|
|
|
December
31,
|
|
|
|
2022
|
|
|
2021
|
|
Total principal amount
of debt
|
|
$
|
572,818
|
|
|
$
|
615,743
|
|
Less: Cash and cash
equivalents
|
|
|
33,447
|
|
|
|
94,977
|
|
Total net
debt
|
|
$
|
539,371
|
|
|
$
|
520,766
|
|
LTM Adjusted
EBITDA
|
|
$
|
133,617
|
|
|
$
|
122,587
|
|
Total net debt
leverage ratio
|
|
|
4.0
|
|
|
|
4.2
|
|
Free Cash Flow
This schedule provides certain information regarding Free Cash
Flow, which is considered a non-GAAP financial measure under the
rules of the Securities and Exchange Commission.
We define Free Cash Flow as net cash provided by operating
activities less cash outlays related to capital expenditures. We
define capital expenditures to include purchase of intangible
assets, software development and other expenditures, and purchases
of property and equipment. In arriving at Free Cash Flow, we
subtract cash outlays related to capital expenditures from net cash
provided by operating activities because they represent long-term
investments that are required for normal business activities. As a
result, subject to the limitations described below, Free Cash Flow
is a useful measure of our cash available to repay debt and/or make
other investments.
Free Cash Flow adjusts for cash items that are ultimately within
management's discretion to direct, and therefore, may imply that
there is less or more cash that is available than the most
comparable GAAP measure. Free Cash Flow is not intended to
represent residual cash flow for discretionary expenditures since
debt repayment requirements and other non-discretionary
expenditures are not deducted. These limitations are best addressed
by using Free Cash Flow in combination with the GAAP cash flow
numbers.
The following table presents a reconciliation of Free Cash
Flow:
(Amounts in
thousands)
|
|
Nine Months
Ended
September 30,
2022
|
|
|
Six Months
Ended June 30,
2022
|
|
|
Three Months
Ended
September 30,
2022
|
|
Net cash provided by
operating activities
|
|
$
|
52,574
|
|
|
$
|
34,904
|
|
|
$
|
17,670
|
|
Software development
and other expenditures
|
|
|
(15,439)
|
|
|
|
(9,852)
|
|
|
|
(5,587)
|
|
Purchases of property
and equipment
|
|
|
(34,484)
|
|
|
|
(20,401)
|
|
|
|
(14,083)
|
|
Free Cash
Flow
|
|
$
|
2,651
|
|
|
$
|
4,651
|
|
|
$
|
(2,000)
|
|
(Amounts in
thousands)
|
|
Nine Months
Ended
September 30,
2021
|
|
|
Six Months
Ended June 30,
2021
|
|
|
Three Months
Ended
September
30, 2021
|
|
Net cash provided by
operating activities
|
|
$
|
54,197
|
|
|
$
|
35,893
|
|
|
$
|
18,304
|
|
Software development
and other expenditures
|
|
|
(11,329)
|
|
|
|
(7,210)
|
|
|
|
(4,119)
|
|
Purchases of property
and equipment
|
|
|
(24,938)
|
|
|
|
(14,191)
|
|
|
|
(10,747)
|
|
Free Cash
Flow
|
|
$
|
17,930
|
|
|
$
|
14,492
|
|
|
$
|
3,438
|
|
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SOURCE AGS