Gaming manufacturer and supplier PlayAGS announced Thursday its results for the first quarter of 2023. For the three-month period ended March 31, the company posted revenue up by 14% to a record $83.2 million, marking the ninth quarter in which quarterly sequential revenue growth was delivered in all segments.
David Lopez, AGS President and CEO, said: "Our record-setting first-quarter revenue and adjusted EBITDA performance is yet another testament to the way in which the strategic investments we have made in our people and products over the past several years have strengthened the underlying resiliency and vibrancy of our business."
"Supported by what I view as the strongest team and most compelling new product lineup in AGS's history, I am extremely excited about what lies ahead for the company and our shareholders," Lopez added.
David Lopez, AGS President and Chief Executive Officer.
Total revenue improved approximately 2% over the then-record $81.7 million delivered in Q4 2022. EGM revenue increased by 14% year-over-year, paced by EGM sales revenue growth of over 20% and the achievement of quarterly record domestic EGM gaming operations revenue for the second consecutive quarter. Global EGM sales topped 1,100 units, an increase of over 15% year-over-year and the highest level achieved since Q4 2019.
During the fourth quarter, domestic EGM revenue increased 10% year-over-year to a record $47.7 million. Meanwhile, the premium game footprint saw a nearly 50% increase year-over-year. Other highlights of the quarter include table products revenue seeing a 15% increase to a record $4.1 million.
The business also managed to cut losses to a net loss of $334 thousand, compared to a net loss of $12.6 million in the prior year, driven by the strong year-over-year revenue growth and the inclusion of approximately $8.5 million in non-recurring costs in the prior year period related to a February 2022 debt refinancing.
Additionally, total Adjusted EBITDA was a record $36.5 million, compared to $32.8 million in Q1 2022, while the total Adjusted EBITDA margin compressed modestly to 43.9% compared to 45.0% in Q1 2022.
Kimo Akiona, AGS Chief Financial Officer, added: "As an organization, we remain singularly focused on optimizing our operating and capital deployment efficiency to further de-lever our balance sheet."
"Supported by our strong first-quarter financial performance, the growing demand for our high-performing for-sale products, and the relative stability observed across our recurring revenue operations, we remain confident in our ability to exit 2023 with net leverage inside of our targeted 3.25 times to 3.75 times range, with an intermediate-term focus on returning net leverage inside of 3.0 times," he concluded.
See AGS' investor presentation with Q1 results here.