AGS reported Wednesday operating results for its fourth quarter and full-year ended December 31, 2019.
As reported by the company, total revenue increased 8% to $77.8 million, driven by EGM sales and increased gaming operations, or recurring revenue, from its EGM and Table Products segments.
Recurring revenue also increased by 5% to $51.6 million, driven by an increase in domestic EGM and Table Products installed base.
"Fourth quarter Adjusted EBITDA growth of 18% year-over-year was driven by strong EGM and Table Products performance, with continued demand for titles on Orion Portrait, as well as our Super 4 Progressive for table games,” AGS President and Chief Executive Officer David Lopez said. “2020 is one of — if not the most — significant product launch years in AGS' history, with the Orion Rise, the Orion Curve, the Starwall, and the Pax S card shuffler all debuting on casino floors this year. We feel confident that this lineup of new products, along with brand extensions and innovative offerings on our current portfolio, will provide meaningful long-term growth opportunities for AGS."
EGM sold units increased 11% to 1,283 compared to 1,159 in the prior year, led by sales of Orion Portrait and the recently introduced Orion Upright.
Net income of $1.4 million increased year-over-year from a net loss of $10.3 million due to an increase in operating income. The prior year also included a non-cash, pre-tax impairment of goodwill of $4.8 million and $2.0 million of debt modification-related expenses, both of which were not present in the current year.
Total Adjusted EBITDA increased 18% to a quarterly record of $37.3 million, driven by increased contributions from our EGM and Table Products segments, in addition to reduced operating expenses in our Interactive segment.
Total Adjusted EBITDA margin increased to 48% in the fourth quarter of 2019 compared to 44% in the prior year, driven by several different factors, most notably due to increased contributions from all three of our segments and reduced operating costs.
2020 Outlook
The company expects to generate total adjusted EBITDA of $148 - $153 million in 2020, representing growth of approximately 1% - 5% compared to the prior-year period. They expect 2020 capital expenditures to be in the range of $67 - $71 million.