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Sep 30, 2023
PlayAGS Q3 2023 Earnings Report
Estimated Revenue:$NaN
Estimated EPS:$NaN
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Key Takeaways
PlayAGS delivered a solid third quarter, with total revenue increasing 14% year-over-year to $89.4 million and Adjusted EBITDA eclipsing $40 million for the first time. The company also achieved record free cash flow and reduced its net leverage to 3.4x, ahead of schedule.
Total Revenue increased 14% Y/Y to $89.4 Million, with strong growth across all three segments.
Adjusted EBITDA reached a record $40.1 Million, expanding its margin by 90bps Y/Y.
Free Cash Flow grew to a record $12.7 Million, supported by strong operating performance and capital efficiency.
Net Leverage fell to 3.4x at quarter end, achieving the targeted year-end range a full quarter ahead of schedule.
PlayAGS
PlayAGS
PlayAGS Revenue by Segment
Revenue by Segment
EGM Revenue
CapyFin.comTable Products Revenue
CapyFin.comInteractive Revenue
CapyFin.com Forward Guidance
PlayAGS remains confident in its ability to exit 2023 with net leverage in the range of 3.25 times to 3.50 times, supported by strong financial performance, growing product appeal, and focus on capital discipline.
Positive Outlook
- Continued strong performance of established AGS franchise game themes in the Mexico casino market.
- Successful implementation of global installed base optimization initiatives.
- Sustained Spectra UR43 demand momentum and strong performance of multiple titles on the cabinet.
- Strategic focus on broadening customer account penetration, particularly with larger multi-site corporate operators.
- Ability to leverage a deeper and more diverse suite of game content and cabinet variety to increase average order size.
Challenges Ahead
- Modest decrease in international EGM installed base versus the prior sequential quarter.
- ASP decreased modestly relative to Q2 2023, largely attributable to product mix.
- Increased debt service costs consistent with higher market-level interest rates.
- Higher allocation of field service expense to the Table Products segment.
- Impact of historically normal seasonality in market-level GGR trends on Domestic EGM RPD.
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Key Statistics
Market Cap
$518M
P/E Ratio
10.47
Sector
Producer Manufacturing
Industry
Industrial Conglomerates
52-Week High
$12.4
52-Week Low
$11.5
Recurring Revenue
$61M
EGM Units Sold
1.35K
Adjusted EBITDA
$40.1M
Domestic EGM Recurring Revenue
$48.6M
International EGM Recurring Revenue
$5.4M