Gaming manufacturer and supplier PlayAGS announced Thursday its results for the fourth quarter and full year of 2022. For the three-month period ended December 31, the company posted record revenue of $81.7 million, marking the eighth quarter in which quarterly sequential revenue growth was delivered in all segments, an increase of 16% year-over-year. As for the full year, AGS posted $309.4 million in revenue.
David Lopez, AGS President and CEO, said: "Our record-setting fourth quarter results reflect the accelerating returns we continue to realize on investments made into our R&D, sales, and product management teams over the past several years. Looking ahead to 2023, I see a set of company-specific growth catalysts forming within all three segments of our business that should allow our recent operating momentum to continue."
David Lopez, AGS President and Chief Executive Officer.
Total revenue in Q4 also improved by approximately 4% over the $78.3 million delivered in Q3 2022. EGM revenue increased by nearly 17% year-over-year, paced by EGM sales revenue growth of over 40% and the achievement of quarterly record domestic EGM gaming operations revenue. Global EGM sales topped 1,000 units for the second consecutive quarter and reached the highest level achieved since Q4 2019.
During the fourth quarter, domestic EGM revenue increased approximately 8% year-over-year to a record $46.8 million. Meanwhile, the premium game footprint saw a nearly 60% increase year-over-year. Other highlights of the quarter include table products revenue seeing a 19% increase to $3.7 million.
The business’ net income during the period was a record $2.5 million, compared to a net loss of $9.1 million in the prior year period, driven by strong year-over-year revenue growth and continued organizational focus on operating expense efficiency, which were partially offset by slightly higher interest expense. The fourth quarter of 2022 was the third in a row that the company produced a positive net income.
Additionally, total Adjusted EBITDA was $37.3 million, compared to $32.3 million in Q4 2021; while total Adjusted EBITDA margin compressed modestly to 45.6% from the 45.9% achieved in Q4, 2021, largely a function of operating leverage realized on the 4% sequential increase in total revenue.
Kimo Akiona, AGS Chief Financial Officer, added: "We exited 2022 with net leverage inside of 4.0x, consistent with the expectations articulated at the start of the year. As we move forward into 2023, our organization remains squarely focused on maximizing free cash flow and further reducing the amount of leverage on our balance sheet."
As for the full-year 2022 results, the $309.4 million in revenue was up by 19.2% compared to 2021, a majority of it generated by the EGM business, which saw a 19.6% rise. Revenue from table products was $14.9 million, up by 25.6%, while revenue from the interactive segment was $10 million, a slight rise of 1.8%. Gaming operations revenue totaled $223.8 million, and equipment sales made up the remainder of the revenue at $85.6 million.