First Quarter  2022  Highlights:

  • Sold 955 EGM Units Globally; Highest Level Achieved Since Q4 2019
  • Premium EGM Units Increased Sequentially for the Ninth Consecutive Quarter; Accounted for Approximately 11% of Domestic EGM Installed Base at Quarter End
  • Domestic EGM RPD Increased 2% Sequentially; Topped $30 for the Fourth Quarter in a Row
  • Table Product Revenue Reached a New All-time Record of $3.5 Million; Third Consecutive Record-breaking Quarter
  • Recent Debt Refinancing Lowers Borrowing Costs, Extends Key Debt Maturities and Reduces the Principal Amount of Debt Outstanding
  • On Track to Achieve Year-End 2022 Net Leverage Target of less than 4.0x


LAS VEGASMay 5, 2022 /PRNewswire/ -- PlayAGS, Inc. (NYSE: AGS) ("AGS", "us", "we" or the "Company"), a designer and developer of equipment and services solutions for the global gaming industry, today reported operating results for the first quarter ended March 31, 2022.

In addressing the Company's first quarter financial performance, AGS President and Chief Executive Officer David Lopez said, "I am encouraged by the degree to which the operating momentum we established throughout 2021 continued into the first quarter. We have heavily invested in strengthening the foundation of our Company over the past couple of years and are beginning to realize accelerating returns on these investments. To that end, I believe our solid first quarter performance simply foreshadows what our laser-focused organization can accomplish in the quarters and years ahead."

Kimo Akiona, AGS' Chief Financial Officer, added, "Supported by the operational momentum we continue to see within the business, the approximately $10 million of annualized cash interest expense savings we have started to realize as a result of the refinancing transaction, and our organizational commitment to maximizing free cash flow, we remain confident in our ability to deliver upon our year end 2022 net leverage target of less than 4.0x."


Consolidated revenue totaled $72.9 million, marking the fifth consecutive quarter in which we were able to achieve quarterly sequential revenue growth. Q1 2022 consolidated revenue exceeded the level reached in Q4 2021 by approximately 4%, supported by an approximately 15% increase in domestic EGM unit sales, sustained strength within our domestic EGM recurring revenue business, record Table Products performance, and further recovery in our international EGM gaming operations revenue. Q1 2022 consolidated revenue increased approximately 32% year-over-year.
Gaming operations, or recurring revenue, increased to $53.2 million versus $44.4 million and $52.9 million in Q1 2021 and Q4 2021, respectively. In aggregate, recurring revenue accounted for approximately 73% of our consolidated Q1 2022 revenue compared to approximately 80% and 75% in Q1 2021 and Q4 2021, respectively. Changes in our recurring revenue mix reflect outsized consolidated EGM unit sales growth of approximately 230% year-over-year, as we continue to benefit from the increased depth and breadth of our core content catalog, broadening of our customer account penetration, expansion into GLI-approved international jurisdictions, and a steady recovery in core North American replacement unit demand.
Our 2022 first quarter net loss of $12.6 million widened as compared to the $7.8 million net loss incurred in Q1 2021. The year-over-year increase in our reported net loss was predominantly driven by costs associated with the comprehensive debt refinancing transaction which we closed upon in February 2022, partially offset by our improved operating performance. Excluding refinancing-related expenditures, our net loss would have improved versus the prior year.
Total Adjusted EBITDA (non-GAAP)(1) was $32.8 million compared to $26.3 million in Q1 2021 and $32.3 million in Q4 2021. Adjusted EBITDA increased year-over-year within all three of our operating segments.
Total Adjusted EBITDA margin (non-GAAP)(1) was 45.0% versus 47.5% in Q1 2021. Recall, the prior year's quarter benefitted from the high-margin sale of approximately 430 used EGM units to a distributor. Additionally, a greater mix of lower-margin EGM unit sales revenues and higher costs related to global supply chain disruption unfavorably impacted the year-over-year margin comparison.

(1) Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP measures, see non-GAAP reconciliation below.

(2) Basis points ("bps").

see full results at