Gaming manufacturer and supplier PlayAGS announced Tuesday its results for the third quarter of 2022. For the period ended September 30, the company posted consolidated revenue of $78.2 million, marking the seventh consecutive quarter in which quarterly sequential revenue growth was delivered in all segments, with an overall increase of 16% year-over-year.
AGS President and Chief Executive Officer David Lopez said: "Our third quarter financial results further reflect the people, product, and process-driven operating momentum building within our business. Given the encouraging initial customer response to the broader and more diverse new product lineup we recently unveiled at the Global Gaming Expo, I am even more excited about what lies ahead for our company and its key stakeholders."
David Lopez, AGS President and Chief Executive Officer.
Consolidated revenue for the second quarter also exceeded the level reached in Q2 by approximately 2%, driven by a 50% increase in global electronic gaming machines (EGM) unit sales, the sustained strength within the domestic EGM recurring revenue business, a record table products performance, and further recovery in international EGM gaming operations revenue.
During the second quarter, domestic EGM revenue per day exceeded $31.13 for the sixth consecutive quarter, while the premium game footprint increased by over 70% year-over-year, accounting for 14% of the domestic EGM installed base at the end of Q3.
Other highlights of the quarter include table products revenue seeing a 7% increase to a record $3.8 million, thus marking the ninth consecutive quarter that revenue has increased sequentially.
The business’ net income during the period was $476 thousand, compared to a net loss of $1.8 million in the prior year period, driven by strong year-over-year revenue growth, which contributed to the quarter's operating income of $9.0 million compared to $7.0 million in the prior-year period. Q3 marked the second consecutive quarter in which the company was able to generate positive net income.
Additionally, total Adjusted EBITDA was $34.5 million, compared to $31.9 million in Q3 2021; while total Adjusted EBITDA margin compressed modestly to 44% from the 44.6% achieved in Q2, largely a function of unfavorable changes in revenue and product mix.
Kimo Akiona, AGS Chief Financial Officer, added: "I am extremely pleased with the balance sheet deleveraging progress we have made year-to-date, as we ended the third quarter with net leverage at 4.0 times. Supported by the stable operating trends we continue to observe within the business, I remain confident in our ability to deliver on our year-end net leverage target of less than 4.0 times and look forward to further reducing leverage in the years ahead."