Electronic slot- and bingo-machine maker PlayAGS posted a second-quarter loss and missed Wall Street forecasts, although the company’s revenue rose and topped them.
In a 10-K report filed Tuesday with the Securities and Exchange Commission, PlayAGS said it sustained a net loss of $156,000, or breakeven per share, down from net income of $476,000, or 1 cent per share, a year earlier.
The latest result fell short of the 2-cent-per-share consensus forecast of analysts surveyed by Seeking Alpha. PlayAGS said a $4 million increase in debt-service costs, consistent with the recent move higher in market-level interest rates, dampened the most recent results.
Adjusted earnings before interest, taxes, depreciation, and amortization, a cash-flow measure that excludes one-time costs, rose 16.4% to a record $40.1 million from $34.5 million.
Revenue rose 14.2% to $89.4 million from $78.3 million and topped the consensus $87.7 million forecast of Seeking Alpha-polled analysts.
PlayAGS enjoyed revenue increases across its business segments. Year-over-year equipment-sales revenue rose 31% to $28.4 million. Electronic-game-machine sales revenue increased 30% to $27.8 million.
PlayAGS’s domestic electronic-game-machine installed base expanded to 16,424 units at quarter’s end, up 166 units from a year earlier and up sequentially for the sixth consecutive quarter. Total global electronic-game-machine sales reached 1,345 units in the third quarter, a 30%-plus rise from 1,014 units sold a year earlier.
“Our product momentum and focused team (produced) performance that far exceeded the trends observed across the broader domestic gaming landscape,” PlayAGS Chief Executive Officer David Lopez said in the statement.
Chief Financial Officer Kimo Akiona said PlayAGS’ adjusted EBITDA and free-cash-flow performance let the company cut its net leverage to 3.4 times at quarter’s end, inside the company’s targeted year-end range of 3.25 times to 3.5 times. This happened a full quarter ahead of schedule, he said.
PlayAGS shares rose 39 cents, or 4.95%, Tuesday to close at $8.27 on the New York Stock Exchange. The shares skidded after hours, falling 52 cents, or 6.29%, to settle at $7.75.
