PlayAGS, a designer and developer of equipment and services solutions for the global gaming industry, reported operating results for the fourth quarter and full year ended December 31, 2023, with notable financial milestones.
The company's strategic financial management has resulted in a notable decrease in net debt leverage ratio from 3.8 to 3.2 times within the year, underscoring a committed path towards financial optimization and growth.
Fourth Quarter 2023 Highlights:
- Total Revenue Increased 15% Y/Y to a Record US$94.2 Million; Eleventh Consecutive Quarter of Double-Digit Y/Y Growth
- Global EGM Sales Reached a Record 1,519 Units; Up by Over 30% Y/Y for the Third Straight Quarter
- Table Products Revenue Surged 24% Y/Y to a New Record; Supported by Accelerating PAX S Adoption
- Interactive Revenue Grew More than 30% Y/Y to a Record US$3.4 Million; Up 8% Versus Q3 2023
* Income From Operations Increased 19% Y/Y to US$16.0 Million; Net Income Totaled US$67 Thousand
- Total Adjusted EBITDA Advanced to a Record US$42.8 Million; Total Adjusted EBITDA Margin Exceeded 45%
- Cash From Operating Activities Totaled US$26.4 Million; Free Cash Flow Topped US$10 Million for the Third Quarter in a Row
- Net Leverage Fell to 3.2x at Quarter End; Targeting Year End 2024 Net Leverage in the Range of 2.75x to 3.00x
Commenting upon the company's fourth quarter financial performance, AGS President and Chief Executive Officer David Lopez said: "The strength in our four quarter results was broad-based, with all three operating segments setting new quarterly records for revenue and Adjusted EBITDA."
"The quality and consistency of our recent financial performance is a true reflection of our incredibly talented and focused team, increasingly deep and diverse product offering across all three segments, and the improving efficiency and effectiveness of our execution."
Kimo Akiona, AGS Chief Financial Officer, added: "We exited 2023 with a total net debt leverage ratio of 3.2 times, down from 3.8 times at the start of the year. Supported by our consistent operating momentum and execution, heightened focus on efficient and effective working capital management, continued capex deployment discipline, and anticipated cash interest savings from our recent debt repricing and repayment; a path to below 3.0 times remains well within our sight."
Source: GMB
