AGS ANNOUNCES SELECTED PRELIMINARY FOURTH QUARTER AND FULL YEAR 2021 RESULTS AS THE COMPANY EXPLORES A REFINANCING OF ITS OUTSTANDING DEBT
LAS VEGAS, Jan. 18, 2022 /PRNewswire/ -- PlayAGS, Incorporated (NYSE: AGS) ("AGS" or the "Company") today announced selected preliminary financial results for the fourth quarter and full year ended December 31, 2021 in conjunction with the Company's intention to explore a refinancing of its outstanding revolving credit facility and term loan credit facilities. A refinancing transaction could include increasing the size of the Company's revolving credit facility, extending its debt maturities and reducing its borrowing costs. Additionally, the Company could look to use a material amount of cash on the Company's balance sheet that could exceed $50 million in connection with such refinancing.
AGS President and Chief Executive Officer David Lopez said, "Our preliminary fourth quarter 2021 financial results further reflect the operating momentum we are witnessing across all three segments of our business. I continue to believe we have the best lineup of new products in our Company's history and am excited about the opportunities that lie ahead."
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Preliminary and Unaudited Summary of the Three Months and Twelve Months Ended |
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(Amounts in thousands; except Adjusted EBITDA margin) |
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Three Months Ended December 31, |
Twelve Months Ended December 31, |
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2021 |
2020 |
2021 |
2020 |
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Expected Range |
Actual |
Expected Range |
Actual |
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Revenues: |
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|
EGM |
$ |
63,000 |
$ |
65,000 |
$ |
42,396 |
$ |
237,000 |
$ |
239,000 |
$ |
151,789 |
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|
Table Products |
3,000 |
3,200 |
2,551 |
11,700 |
11,900 |
7,969 |
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|
Interactive |
2,400 |
2,600 |
1,675 |
9,900 |
10,100 |
7,249 |
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Total Revenues |
$ |
68,400 |
$ |
70,800 |
$ |
46,622 |
$ |
258,600 |
$ |
261,000 |
$ |
167,007 |
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Net (loss) income |
$ |
(11,625) |
$ |
(6,075) |
$ |
(17,242) |
$ |
(24,750) |
$ |
(19,200) |
$ |
(85,378) |
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Adjusted EBITDA: |
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EGM |
$ |
28,000 |
$ |
30,000 |
$ |
19,696 |
$ |
112,000 |
$ |
114,000 |
$ |
65,877 |
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|
Table Products |
1,900 |
2,000 |
1,316 |
6,350 |
6,450 |
3,360 |
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Interactive |
775 |
825 |
287 |
3,300 |
3,350 |
2,432 |
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Total Adjusted EBITDA (1) |
$ |
30,675 |
$ |
32,825 |
$ |
21,299 |
$ |
121,650 |
$ |
123,800 |
$ |
71,669 |
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Total Adjusted EBITDA margin (1) |
44.8% |
46.4% |
45.7% |
47.0% |
47.4% |
42.9% |
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Net cash provided by operating activities |
$ |
22,000 |
$ |
25,000 |
$ |
16,451 |
$ |
76,200 |
$ |
79,200 |
$ |
36,170 |
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Free Cash Flow (1) |
$ |
5,500 |
$ |
11,500 |
$ |
2,353 |
$ |
23,430 |
$ |
29,430 |
$ |
458 |
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Total net debt leverage ratio (1) |
4.3x |
4.2x |
7.5x |
4.3x |
4.2x |
7.5x |
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(1) Adjusted EBITDA, Adjusted EBITDA margin, Free Cash Flow, and Total net debt leverage ratio are non-GAAP measures; see non-GAAP reconciliation below |
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Preliminary and Unaudited |
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Key Performance Indicators for the Three Months and Twelve Months Ended December 31, |
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Three Months Ended December 31, |
Twelve Months Ended December 31, |
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2021 |
2020 |
2021 |
2020 |
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Expected Range |
Actual |
Expected Range |
Actual |
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EGM Metrics: |
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Domestic installed base, end of period |
15,850 |
15,950 |
16,268 |
15,850 |
15,950 |
16,268 |
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Domestic revenue per day |
$ |
29.50 |
$ |
30.50 |
$ |
23.26 |
$ |
29.50 |
$ |
30.50 |
$ |
17.66 |
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International installed base, end of period |
7,550 |
7,650 |
7,985 |
7,550 |
7,650 |
7,985 |
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International revenue per day |
$ |
5.40 |
$ |
5.60 |
$ |
2.56 |
$ |
4.40 |
$ |
4.60 |
$ |
2.59 |
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Total EGM units sold |
775 |
825 |
283 |
2,350 |
2,400 |
1,343 |
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Domestic average sales price |
$ |
19,000 |
$ |
19,500 |
$ |
18,035 |
$ |
18,000 |
$ |
18,500 |
$ |
18,068 |
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Table Products Metrics: |
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Table Products Installed Base, end of period |
4,625 |
4,725 |
4,254 |
4,625 |
4,725 |
4,254 |
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Average monthly lease price |
$ |
215 |
$ |
225 |
$ |
182 |
$ |
205 |
$ |
215 |
$ |
149 |
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The information for the fourth quarter and fiscal year ended December 31, 2021 included in this release is preliminary, has been prepared by the Company's management, has not been reviewed or audited by the Company's auditors and represents the best estimates of management based on the information available to them as of the date of this release. The Company is in the process of completing its audit for the fiscal year ended December 31, 2021 and currently anticipates releasing its 2021 fourth quarter and full year results on March 10, 2022, after the market close. As a result, the information for the fourth quarter and fiscal year ended December 31, 2021 included in this release is subject to adjustments, and it is possible that the Company's actual reported financial results may differ from the estimates included in this release due to the completion of audit procedures and final adjustments that may arise between now and the time the Company's financial results for the fourth quarter and fiscal year ended December 31, 2021 are finalized, audited and reported. The Company cannot provide any assurances to you that when the estimated financial information for the fourth quarter and fiscal year ended December 31, 2021 presented in this release is finalized, audited and reported that such financial information will not be materially different from the information presented herein.
The Company is sharing these preliminary financial results with its prospective lenders in connection with a potential refinancing transaction. The Company has not committed to engage in any refinancing transaction and the pursuit of any refinancing transaction is subject to market conditions.
Introducing 2022 Net Leverage Target
Supported by the current operating momentum being witnessed across all three business segments, the Company is targeting to reach a net leverage ratio (Net Debt divided by trailing-12 month Adjusted EBITDA) of less than 4.0x by December 31, 2022. The Company's net leverage ratio target does not contemplate, nor is it dependent upon, a refinancing of its outstanding indebtedness.
The Company is not providing a quantitative reconciliation of its target for trailing 12-month Adjusted EBITDA to net income (loss), which is its corresponding GAAP measure, because this GAAP measure is difficult to reliably predict or estimate without unreasonable effort due to its dependence on future uncertainties, such as the adjustments or items discussed below under the heading "Non-GAAP Financial Measures." Additionally, information that is currently not available to the Company could have a potentially unpredictable and potentially significant impact on its future GAAP financial results.
