AGS reports record second quarter 2023 results

PlayAGS, Inc. (AGS), a designer and developer of equipment and services solutions for the global gaming industry, today reported operating results for the second quarter ended June 30, 2023.

The second quarter 2023 highlights include:

• Total revenue increased 17% Y/Y to a record US$89.8 million; growth achieved across all three business segments
• Global EGM sales topped 1,250 units; up 35% Y/Y and 7% ahead of Q2 2019
• Domestic EGM recurring revenue grew 7% Y/Y; third consecutive all-time quarterly record
• Table Product revenue advanced 25% Y/Y to a record US$4.4 million
• Generated net income of US$851,000
• Adjusted EBITDA increased by over 15% Y/Y to a record US$39.6 million
• Cash from operations eclipsed US$25 million; free cash flow reached US$12.6 Million (+38% Y/Y)
• Lowering targeted year-end 2023 net leverage range to 3.25x to 3.50x

Commenting upon the company's second quarter results, AGS President and Chief Executive Officer David Lopez said: "Our record-setting second quarter financial performance clearly demonstrates the strength of our products, team members, and strategy, which is creating significant momentum within all three segments of our business.”

“The unique combination of a growing portfolio of high-performing products and an exceptionally talented team has me excited about what lies ahead for our Company in 2023 and beyond."

Kimo Akiona, AGS Chief Financial Officer added: "During the second quarter we delivered on our commitment to further de-lever our balance sheet through a combination of Adjusted EBITDA growth and free cash flow generation.”

“Supported by our record-setting financial performance through the first six months of the year, the sustained operating momentum we continue to observe across all three business segments, and our confidence in our ability to leverage our capital deployment discipline and improving working capital efficiency to consistently generate free cash flow, we now expect to exit 2023 with net leverage in the range of 3.25 times to 3.50 times."

Source: GMB