Preliminary financial results

AGS sees momentum in all segments in 2021; will seek outstanding debt refinancing

David Lopez, AGS CEO.
2022-01-18
United States
Reading time 1:54 min

Developer and supplier of casino games and technology PlayAGS shared preliminary results for the fourth quarter and full year of 2021. The company expects total revenue between $68.4 million and $70.8 million for Q4, up from $46.6 million the prior year; and revenue within the $258.6 million-$261 million range for the whole fiscal year, up from $167 million in 2020.

The business also expects a net loss in the range of $11.6 million to $6 million for Q4, versus a net loss of $17.2 million in the same quarter in 2020. In terms of the full year, a net loss in the range of $24.7 million to $19.2 million is anticipated, vastly different from a $85.3 million loss in 2020.

The company also announced its intention “to explore a refinancing” of its outstanding revolving credit facility and term loan credit facilities in a press statement shared on Tuesday. A transaction could include increasing the size of the company’s revolving credit facility, extending its debt maturities and reducing its borrowing costs.

Additionally, as AGS explores a refinancing of its debt, it “could look to use” a material amount of cash on the company’s balance sheet that could exceed $50 million in connection with the transaction.

"Our preliminary fourth quarter 2021 financial results further reflect the operating momentum we are witnessing across all three segments of our business,” said AGS President and Chief Executive Officer David Lopez. “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."

The information provided thus far for the fourth quarter and fiscal year 2021 is preliminary and has not yet been reviewed or audited by the company’s auditors, explains AGS. The company, currently in the process of completing its audit for the period, anticipates releasing final results for Q4 and FY2021 “on March 10, 2022, after the market close.”

The business is also introducing a net leverage target for the year. Supported by the current momentum being witnessed across all three business segments -EGM, table products and interactive-, AGS is targeting to reach a net leverage ratio of less than 4.0x by December 31, 2022.

EGM remains the main vertical for the company: $63 million to $65 million in revenue are expected for Q4, up from $42.3 million in 2020; while $237 million to $239 million are anticipated for FY21, up from $151 million in FY20.

Revenues within $11.7 million and $11.9 million are expected for table products for fiscal year 2021, up from $7.9 million in 2020; while revenue between the $9.9 million to $10.1 million range is expected for FY21, up from $7.2 million in 2020, for the interactive segment.

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