The company reported that Adjusted EBITDA increased to US$27m compared to a loss of US$1.2m in the 2020 second quarter. Total revenue reached US$49.3m compared to US$16.8m in the 2020 second quarter. Revenue decreased 37.9% year-over-year, with the decline predominantly attributable to the pandemic’s negative impact on AGS’ customer’s operations and, subsequently, its own gaming operations revenue and EGM unit sales.
AGS President and Chief Executive Officer David Lopez said: “I am extremely proud of how our team came together to offset the challenges brought upon by the COVID-19 pandemic to deliver better than expected third quarter 2020 financial results. Our employees’ experiences throughout the pandemic will only help to strengthen their collective resolve, in turn propelling AGS to emerge a stronger and more nimble company as the world gradually returns to normal.”
“I continue to believe AGS has its strongest pipeline of new product and game themes in the company’s history, positioning our EGM segment for greater success in the quarters ahead. I am particularly enthused about the prospects for our domestic EGM recurring revenue business, supported by the continued outperformance of our initial Starwall installs, and believe improved hardware and game content position us to command our fair share of future unit placements. Additionally, I remain encouraged by the strategic growth opportunities emerging within our table games segment and look for our interactive performance to continue to improve as additional states contemplate the introduction of real money online gaming legislation,” Lopez added.
AGS Chief Financial Officer, Kimo Akiona, also commented: “Our third quarter financial performance improved dramatically compared to the 2020 second quarter, with revenues, net loss, and adjusted EBITDA improving sharply on a sequential basis. Importantly, we were free cash flow positive in the quarter, allowing us to report a strong liquidity position of US$113.2m at quarter end.”
“Given our better-than-expected third quarter financial performance and growing comfort with our resulting liquidity position, we elected to fully repay the US$30m outstanding on our revolving credit facility, subsequent to quarter end,” Akiona concluded.
Source: GMB
