Manufacturer and supplier of gaming products PlayAGS has shared its financial results for the first quarter of 2022. The company posted consolidated revenue of $72.9 million -marking the fifth consecutive quarter in which quarterly sequential revenue growth was delivered-, showing an increase of approximately 32% year-over-year.
AGS President and Chief Executive Officer David Lopez, said: “I am encouraged by the degree to which the operating momentum we established throughout 2021 continued into the first quarter. We have heavily invested in strengthening the foundation of our Company over the past couple of years and are beginning to realize accelerating returns on these investments. To that end, I believe our solid first-quarter performance simply foreshadows what our laser-focused organization can accomplish in the quarters and years ahead.”
Consolidated revenue for the first quarter also exceeded the level reached in Q4 by approximately 4%, driven by an approximately 15% increase in domestic electronic gaming machines (EGM) unit sales, the sustained strength within the domestic EGM recurring revenue business, a record table products performance, and further recovery in international EGM gaming operations revenue.
During the first quarter, domestic EGM revenue per day exceeded $30 for the fourth consecutive quarter, while the premium game footprint increased by approximately 10% on a quarterly sequential basis. Furthermore, domestic EGM unit sales increased by approximately 15%.
AGS REPORTS FIRST QUARTER 2022 RESULTS https://t.co/UMWWuG6EOn pic.twitter.com/GrA43RQvsH
— AGS (@playAGS) May 5, 2022
Other highlights of the quarter include table products revenue grew to $3.4 million, and the successful completion of a comprehensive debt refinancing announced on February 15 this year.
The business’ Q1 net loss of $12.6 million widened as compared to the $7.8 million net loss incurred in Q1 2021, which was predominantly driven by costs associated with the comprehensive debt refinancing transaction.
Additionally, total Adjusted EBITDA was $32.8 million, compared to $26.3 million in Q1 2021; while total Adjusted EBITDA margin was 45%, versus 47.5% in Q1 2021.
Kimo Akiona, AGS' Chief Financial Officer
“Supported by the operational momentum we continue to see within the business, the approximately $10 million of annualized cash interest expense savings we have started to realize as a result of the refinancing transaction, and our organizational commitment to maximizing free cash flow, we remain confident in our ability to deliver upon our year-end 2022 net leverage target of less than 4.0x,” stated Kimo Akiona, AGS’ Chief Financial Officer.
