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Mar 31, 2020

PlayAGS Q1 2020 Earnings Report

Reported a decrease in revenue due to the impact of COVID-19 and casino closures, but implemented cost-saving measures and secured additional financing to strengthen liquidity.

Key Takeaways

AGS reported a decrease in total revenue by 26% to $54.3 million, primarily driven by decreased unit sales and gaming operations revenue in the EGM segment due to COVID-19 related casino closures. The company took early steps to formulate and implement a comprehensive plan that included costs savings through Company-wide salary reductions, layoffs, and furloughs, capital expenditure reductions, and strengthening their liquidity position.

Total revenue decreased 26% to $54.3 million due to decreased unit sales and gaming operations revenue in the EGM segment.

Gaming operations revenue decreased to $42.7 million, a 19% year-over-year decrease.

Net loss increased year-over-year to $14.4 million, compared to a net loss of $0.1 million in the prior year.

Adjusted EBITDA decreased 32% to $24.5 million, driven by decreased revenue from the EGM segment.

Total Revenue
$54.3M
EPS
-$0.41
Gross Profit
$54.3M
Cash and Equivalents
$43.6M
Total Assets
$751M

PlayAGS

PlayAGS

Forward Guidance

AGS withdrew its 2020 annual guidance due to the COVID-19 outbreak and is currently unable to provide updated guidance.