AGS ‘excited about what lies ahead’ following land-based Q3 success

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AGS’s land-based sector continues has thrived over the last 12-months as the firm reveals a 30 per cent increase in table products.  

Publishing its third quarter financial results, AGS has revealed that these products increased from $3.10m in the third quarter of 2021 to $4.03m in Q3 2022.

In addition, the firm also experienced a 16.3 per cent growth in its electronic game machines, currently standing at $71.62m this year compared to $61.6m during the same period the year prior. 

Overall, including the 1.2 per cent increase from the company’s interactive division, the revenue growth rate for AGS stood at 16.3 per cent year-on-year to $78.25m (2021: $67.27m).

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, I am even more excited about what lies ahead for our company and its key stakeholders.”

Alongside the firm’s total revenue, AGS reported that its income from operations jumped 28.8 per cent to $9.031m in Q3 2022 compared to $7.011m in the same period in 2021. 

Delving into adjusted EBITDA, table products again experienced a big spike, witnessing 57.3 per cent growth to $2.561m this year when compared to the third quarter of 2021, which stood at $1.628m. 

Money-wise, AGS’s EGM totalled the largest amount in this financial metric, coming it at approximately $31m, a 6.3 per cent increase the year prior. 

Despite its interactive division experiencing a loss of 28.7 per cent – which saw a $231,000 loss compared to 2021, totalling £575,000 in the third quarter this year – the overall adjusted EBITDA for the third quarter stood at $34.476m, an eight per cent increase from last year. 

On an international scale, the third’s EGM recurring revenue has witnessed its ninth consecutive quarter increase, reporting a 16 per cent growth year-on-year, citing the “consistent macroeconomic recovery” happening in Mexico. 

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 x4. 

“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.”

Looking into EGM equipment sales, the firm revealed it sold 1,014 units in Q3, 2022, representing an increase of 50 per cent compared to the 663 units sold in 2021, the company’s highest level achieved since Q4, 2019. 

Average sales price was $19,146 versus $18,970 in Q3, 2021, topping $19,000 for the fourth consecutive quarter. Moreover, the firm sold units in 26 US states, four Canadian provinces throughout the third quarter. 

As of September 30, 2022, the company had an available cash balance of $33.4m and $40m of availability under its undrawn revolving credit facility, resulting in total available liquidity of $73.4m.

The total principal amount of debt outstanding, as of the report publishing, was $572.8m compared to $615.7m at December 31, 2021.