Sizzling sales of gambling machines marked a strong quarter for PlayAGS, which narrowed its first-quarter loss and posted higher revenue compared with a year earlier.
After stock exchanges closed Thursday, the Las Vegas-based electronic slot and bingo machine maker, which went public in January, said it lost $9.5 million, or 30 cents per share, for the three months ended March 31. A year agom the company had a net loss of $12.4 million, or 53 cents per share, a year earlier.
The loss was wider than 17 cents per share forecast of analysts polled by Zacks Financial Research.
Revenue rose 35.8 percent to a record $64.9 million from $47.8 million.
Growth in sales of electronic game machines, particularly the Orion Portrait cabinet, spurred the overall revenue increase, the company said. Electronic game machine equipment sales more than doubled to $15.2 million, also a record, with 838 units sold, PlayAGS said.
The company said its installed games base increased by more than 2,500 units year-over-year, driven by the purchase of 1,500 game machines from Rocket Gaming in December.
Adjusted earnings before interest, taxes, depreciation and amortization, rose 39 percent to $34.5 million, boosted by the revenue increase, the company said.
The company revised its EBITDA projections to $126 and $131 million. The company said its capital expenditures forecast remained at $55 to $60 million.
“The first quarter of 2018 was absolutely tremendous for AGS — we achieved records in every key category, including revenue, adjusted EBITDA, average selling price, and recurring revenue,” President and CEO David Lopez said in a statement accompanying the earnings. “With industry-leading game performance and the recent introduction of the new Orion Slant, AGS shows no signs of slowing down and we are confident that 2018 will be our best year yet.”
In a personnel move during the quarter, AGS named Mike McKiski vice president of sales for Western U.S. and corporate accounts. His territory will include California, Nevada, Arizona and Washington state.
PlayAGS shares rose 60 cents, or 2.71 percent, Thursday to close at $22.71 on the Nasdaq. The shares have risen 16.9 percent since Feb. 1.
