in ,

AGS generates positive operating, free cash flow for the 2nd consecutive quarter

ags-generates-positive-operating,-free-cash-flow-for-the-2nd-consecutive-quarter

A

GS on Thursday reported financial results for the fourth quarter and full year ended December 31, 2020.

Consolidated revenue totaled $46.6 million compared to $77.8 million in the 2019 fourth quarter, representing a year-over-year decrease of 40.1%. The year-over-year decline reflects the COVID-19 pandemic’s negative impact on the supplier’s customers’ operations and, subsequently, its gaming operations revenue and EGM unit sales.

 

Orion Starwall saw over 300 games installed as of December 31, 2020. Installed base of table game progressive products increased by 127 units sequentially in Q4. AGS estimates approximately 90% of its 16,268-unit domestic installed base was active as of December 31, 2020. Internationally, it estimates approximately 36% of its 7,985-unit installed base was active as of December 31, 2020.

Gaming operations revenue, or recurring revenue, totaled $40.0 million compared to $51.6 million in the 2019 fourth quarter. The year-over-year gaming operations revenue decrease reflects the impact of COVID-19 on its EGM and Table Product recurring revenue streams, partially offset by higher Interactive segment revenue, as compared to the prior year.

AGS’ 2020 fourth quarter net loss of $17.2 million declined as compared to net income of $1.4 million in the 2019 fourth quarter. Total Adjusted EBITDA decreased to $21.3 million compared to $37.3 million in the 2019 fourth quarter. A year-over-year decrease in EGM adjusted EBITDA, which is largely attributed to the impact of COVID, was partially offset by higher adjusted EBITDA in our Table Products and Interactive segments, as compared to the prior year’s quarter.

Total Adjusted EBITDA margin decreased to 45.7% in the fourth quarter of 2020 compared to 47.9% in the prior year, reflecting the impact of normalization in its operating cost base to support the anticipated recovery in its revenues from post-COVID lows.

AGS President and Chief Executive Officer David Lopez said: “2020 was a year full of unprecedented challenges, the likes of which required the unwavering commitment of a passionate, loyal, and hardworking team to successfully overcome. To that end, I am extremely honored by and thankful for the tireless efforts put forth by so many of our AGS team members to ensure we not only survived the COVID-19 pandemic, but put ourselves in a position to emerge a stronger, more resilient company.”

And he continued: “Looking beyond the many challenges faced throughout the year, one of the bright spots, to the extent there was one, is that the COVID-19 pandemic slowed down the pace of life. As a company, we used this time to refine our strategy and improve our operating efficiency, with a keen focus on three key areas; people, product, and processes. As a result, I believe we are better positioned today to achieve success across all three of our business segments than at any other point in our company’s history.”

AGS Chief Financial Officer Kimo Akiona stated: “I am incredibly proud of the way our team came together throughout 2020 to face the unprecedented operational and financial hurdles introduced by the spread of COVID-19. Not only were we able to nimbly streamline our business to preserve liquidity at the onset of COVID-19, but we opportunistically shored up our balance sheet in May and successfully ramped operations as our casino operator partners gradually brought their businesses back online. As I look ahead to 2021, I believe our strong liquidity position, improving product portfolio, and organizational alignment position us to achieve improved financial performance.” 

$111.7 Million of Available Liquidity as of December 31, 2020

What do you think?

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

Loading…

0
sigma-postpones-april-event-following-government-announcement

SiGMA postpones April event following government announcement

betting-on-the-2021-nba-all-star-game-mvp

Betting on the 2021 NBA All-Star Game MVP