Las Vegas electronic slot- and bingo-machine-maker PlayAGS narrowed its first-quarter loss and posted a 14% rise in first-quarter revenue, both of which topped Wall Street forecasts.
In a statement Wednesday, PlayAGS said its net loss was $334,000, or 1 cent per share, for the three months ended March 31, compared with a net loss of $12.5 million, or 34 cents per share, a year earlier. The latest result topped the consensus 6- cent-per-share loss forecast by analysts surveyed by Seeking Alpha.
Adjusted earnings before interest, taxes, depreciation, and amortization, a cash-flow measure that excludes one-time costs, rose 11.4% to $36.45 million from $32.8 million.
Revenue rose to a record $83.2 million from $72.9 million and topped the $77.5 million forecast of Seeking Alpha-polled analysts. Revenue has risen for nine consecutive quarters.
“Our record-setting first-quarter revenue and adjusted EBITDA performance are yet another testament to the way in which the strategic investments we’ve made in our people and products over the past several years have strengthened the underlying resiliency and vibrancy of our business,” PlayAGS Chief Executive Officer David Lopez said in the statement. “I view (this) as the strongest team and most compelling new-product lineup in AGS’s history.”
Improved business in several PlayAGS segments contributed to the better-than-a-year-earlier results. Table-products revenue rose 17.6% to a record $4.1 million from $3.5 million, as card-shuffler revenue more than doubled. Electronic-game-machine revenue increased 14% year over year to $76.5 million from $66.9 million. Global electronic-game-machine sales topped 1,100 units.
Gaming-operations revenue rose 10% to $58.6 million from $53.2 million.
Chief Financial Officer Kimo Akiona said AGS is focused on reducing balance-sheet debt and is confident the company will exit 2023 with net leverage inside of its targeted 3.25-times-to-3.75 times range. The intermediate-term focus is returning net leverage inside of 3 times, he said.
PlayAGS shares fell 42 cents, or 7.61%, on Wednesday, to close at $5.10 on the New York Stock Exchange. The shares rebounded after hours, climbing 15 cents, or 2.94%, to settle at $5.25. The share price has risen 4.3% for the year.
