AGS says that its first quarter performance serves “as a testament to the resiliency and durability” of the firm, two months after the group asserted that it was better positioned than at any point in its history.
The comments come amid the publication of the Las Vegas-based group’s first quarter report, within which David Lopez, president and CEO of AGS, praised a strengthened organisation alignment around key business objectives following “one of the best corporate strategic planning meetings I have ever participated in”.
Revenue for the period ending March 31, 2021, increased 1.9 per cent to $55.4m (2020: $54.3m), with growth of the EGM, table products and interactive businesses helping to offset the impact of ongoing sluggishness in the North American slot replacement market.
Additionally, the company recognised an additional $2.1m in sales revenue related to units that were strategically pruned and subsequently sold, as compared to the prior year’s quarter.
The EGM, table products, and interactive core reporting segments all reported increases of 0.3 per cent, 11 per cent, and 41.3 per cent to $50.51m (2020: $50.35m), $2.75m (2020: $2.48m), and $2m (2020: $1.4m), respectively.
AGS estimates that approximately 99 per cent of its 15,456-unit domestic installed base and 51 per cent of the 7,985 international unit installations was active as of March 31, 2021. That compares to 90 per cent and 36 per cent, respectively, as of December 31, 2020.
Total adjusted EBITDA jumped 7.4 per cent year-over-year to $26.3m, with increases felt across all three operating segments, led by a $1m, or 4.4 per cent, year-over-year rise in EGM’s.
Kimo Akiona, AGS’ CFO, said: “Our first quarter results once again serve as a testament to the resiliency and durability inherent to our company’s recurring revenue-centric business model.
“I am confident our improving execution and strong liquidity position will allow us to deliver more consistent financial performance and, in turn, further enhance shareholder value.”
First quarter net loss reduced from $14.4m in 2020 to $7.8m this year, which the group says reflects improved revenue performance led recurring revenue businesses, and recognition of lower depreciation and amortisation expense as a result of several intangible assets reaching the end of their useful lives, partially offset by higher interest expense related to our incremental debt financing, which was closed in May 2020.
“I was very pleased with our team’s execution in the 2021 first quarter and am equally as encouraged by the macro level trends and overall sentiment we are seeing across the gaming landscape today,” Lopez added.
“Following one of the best corporate strategic planning meetings I have ever participated in, we are strengthening our organisational alignment around key business objectives, which should allow us to improve our business trajectory and overall operating efficiency.”