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Share Name | Share Symbol | Market | Type |
---|---|---|---|
PlayAGS Inc | NYSE:AGS | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-0.20 | -2.26% | 8.64 | 8.94 | 8.5853 | 8.84 | 195,206 | 01:00:00 |
LAS VEGAS, Aug. 5, 2021 /PRNewswire/ -- AGS (NYSE: AGS) ("AGS", "us", "we" or the "Company") today reported operating results for its second quarter ended June 30, 2021.
AGS President and Chief Executive Officer David Lopez said, "We were able to leverage our over 15,000 unit domestic EGM installed base, our growing premium game footprint, and the revenue strength witnessed throughout the domestic gaming market to establish new Company records in both domestic EGM revenue per day ("RPD") and domestic EGM gaming operations revenue in the second quarter. Looking ahead, our improved execution and accelerating product momentum across all three of our business segments position us to deliver additional growth and share taking in the coming quarters."
Kimo Akiona, AGS' Chief Financial Officer, added, "The continuous improvement being achieved as a result of our enhanced game content development execution, upgraded product management capabilities, and refined capital deployment processes, sets us on a path to deliver more consistent financial performance, improving our capital returns and leverage profile, and, most importantly, strengthening shareholder value over time."
Summary of the Three Months Ended June 30, 2021, 2020 and 2019 (In thousands, except per-share and Adjusted EBITDA margin data) | ||||||||||||||||||||
Three Months Ended June 30, | ||||||||||||||||||||
% Change | ||||||||||||||||||||
2021 | 2020 | 2019 | 2021 vs | 2021 vs | ||||||||||||||||
Revenues: | ||||||||||||||||||||
EGM | $ | 61,193 | $ | 13,957 | $ | 70,978 | 338.4 | % | (13.8) | % | ||||||||||
Table Products | 2,830 | 674 | 2,420 | 319.9 | % | 16.9 | % | |||||||||||||
Interactive | 2,814 | 2,157 | 1,111 | 30.5 | % | 153.3 | % | |||||||||||||
Total revenues | $ | 66,837 | $ | 16,788 | $ | 74,509 | 298.1 | % | (10.3) | % | ||||||||||
Income (loss) from operations | $ | 7,428 | $ | (28,749) | $ | 1,995 | (125.8) | % | 272.3 | % | ||||||||||
Net (loss) income | $ | (3,883) | $ | (42,639) | $ | (7,557) | (90.9) | % | (48.6) | % | ||||||||||
(Loss) income per share | $ | (0.11) | $ | (1.20) | $ | (0.21) | (90.8) | % | (47.6) | % | ||||||||||
Adjusted EBITDA: | ||||||||||||||||||||
EGM | $ | 29,453 | $ | (2,191) | $ | 35,541 | N/A | (17.1) | % | |||||||||||
Table Products | 1,448 | (126) | 807 | N/A | 79.4 | % | ||||||||||||||
Interactive | 1,202 | 1,164 | (603) | 3.3 | % | (299.3) | % | |||||||||||||
Total Adjusted EBITDA(1) | $ | 32,103 | $ | (1,153) | $ | 35,745 | N/A | (10.2) | % | |||||||||||
Total Adjusted EBITDA margin(2) | 48.0 | % | -6.9 | % | 48.0 | % | N/A | 0bps |
Second Quarter 2021 Financial Results
(1) Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP measures, see non-GAAP reconciliation below. | |
(2) Basis points ("bps"). |
EGM
Three Months Ended June 30, 2021 compared to Three Months Ended June 30, 2020 and 2019 | ||||||||||||||||||||
(Amounts in thousands, except unit data) | Three Months Ended June 30, | |||||||||||||||||||
% Change | ||||||||||||||||||||
2021 | 2020 | 2019 | 2021 vs | 2021 vs | ||||||||||||||||
EGM segment revenues: | ||||||||||||||||||||
Gaming operations | $ | 49,432 | $ | 7,535 | $ | 50,161 | 556.0 | % | (1.5) | % | ||||||||||
Equipment sales | 11,761 | 6,422 | 20,817 | 83.1 | % | (43.5) | % | |||||||||||||
Total EGM revenues | $ | 61,193 | $ | 13,957 | $ | 70,978 | 338.4 | % | (13.8) | % | ||||||||||
EGM Adjusted EBITDA | $ | 29,453 | $ | (2,191) | $ | 35,541 | N/A | (17.1) | % | |||||||||||
EGM unit information: | ||||||||||||||||||||
VLT | - | 512 | 517 | (100.0) | % | (100.0) | % | |||||||||||||
Class II | 11,317 | 12,449 | 12,154 | (9.1) | % | (6.9) | % | |||||||||||||
Class III | 4,129 | 4,833 | 5,750 | (14.6) | % | (28.2) | % | |||||||||||||
Domestic installed base, end of period | 15,446 | 17,794 | 18,421 | (13.2) | % | (16.2) | % | |||||||||||||
International installed base, end of period | 7,879 | 7,969 | 8,596 | (1.1) | % | (8.3) | % | |||||||||||||
Total installed base, end of period | 23,325 | 25,763 | 27,017 | (9.5) | % | (13.7) | % | |||||||||||||
Installed base - Oklahoma | 8,054 | 9,562 | 10,083 | (15.8) | % | (20.1) | % | |||||||||||||
Installed base - non-Oklahoma | 7,392 | 8,232 | 8,338 | (10.2) | % | (11.3) | % | |||||||||||||
Domestic installed base, end of period | 15,446 | 17,794 | 18,421 | (13.2) | % | (16.2) | % | |||||||||||||
Domestic revenue per day | $ | 33.11 | $ | 5.96 | $ | 26.16 | 455.5 | % | 26.6 | % | ||||||||||
International revenue per day | $ | 4.66 | $ | 0.02 | $ | 8.22 | N/A | (43.3) | % | |||||||||||
Total revenue per day | $ | 23.47 | $ | 4.09 | $ | 20.49 | 473.8 | % | 14.5 | % | ||||||||||
Domestic EGM unit sales components: | ||||||||||||||||||||
Casino opening and expansion units | 175 | 83 | 13 | 110.8 | % | N/A | ||||||||||||||
Other | 438 | 64 | 1,040 | 584.4 | % | (57.9) | % | |||||||||||||
Total Domestic EGM units sold | 613 | 147 | 1,053 | 317.0 | % | (41.8) | % | |||||||||||||
International EGM units sold | - | 62 | 128 | (100.0) | % | (100.0) | % | |||||||||||||
Total EGM units sold | 613 | 209 | 1,181 | 193.3 | % | (48.1) | % | |||||||||||||
Domestic average sales price | $ | 16,902 | $ | 19,646 | $ | 18,178 | (14.0) | % | (7.0) | % |
EGM Quarterly Results
Domestic Gaming Operations(3)
International Gaming Operations
Equipment Sales
Product Highlights
(3) "Domestic" includes both the United States and Canada. |
Table Products
Three Months Ended June 30, 2021 compared to Three Months Ended June 30, 2020 and 2019 | ||||||||||||||||||||
(Amounts in thousands, except unit data) | Three Months Ended June 30, | |||||||||||||||||||
% Change | ||||||||||||||||||||
2021 | 2020 | 2019 | 2021 vs | 2021 vs | ||||||||||||||||
Table Products segment revenues: | ||||||||||||||||||||
Gaming operations | $ | 2,793 | $ | 497 | $ | 2,321 | 462.0 | % | 20.3 | % | ||||||||||
Equipment sales | 37 | 177 | 99 | (79.1) | % | (62.6) | % | |||||||||||||
Total Table Products revenues | $ | 2,830 | $ | 674 | $ | 2,420 | 319.9 | % | 16.9 | % | ||||||||||
Table Products Adjusted EBITDA | $ | 1,448 | $ | (126) | $ | 807 | N/A | 79.4 | % | |||||||||||
Table Products unit information: | ||||||||||||||||||||
Table Products installed base, end of period | 4,458 | 3,962 | 3,380 | 12.5 | % | 31.9 | % | |||||||||||||
Average monthly lease price | $ | 207 | $ | 42 | $ | 230 | 392.9 | % | (10.0) | % |
Table Products Quarterly Results
Interactive
Three Months Ended June 30, 2021 compared to Three Months Ended June 30, 2020 and 2019 | ||||||||||||||||||||
(Amounts in thousands) | Three Months Ended June 30, | |||||||||||||||||||
% Change | ||||||||||||||||||||
2021 | 2020 | 2019 | 2021 vs | 2021 vs | ||||||||||||||||
Interactive segment revenue: | ||||||||||||||||||||
Social gaming revenue | $ | 580 | $ | 1,095 | $ | 890 | (47.0) | % | (34.8) | % | ||||||||||
Real-money gaming revenue | 2,234 | 1,062 | 221 | 110.4 | % | 910.9 | % | |||||||||||||
Total Interactive revenue | $ | 2,814 | $ | 2,157 | $ | 1,111 | 30.5 | % | 153.3 | % | ||||||||||
Interactive Adjusted EBITDA | $ | 1,202 | $ | 1,164 | $ | (603) | 3.3 | % | (299.3) | % |
Interactive Quarterly Results
Liquidity and Capital Expenditures
As of June 30, 2021, we had $118.7 million of total available liquidity, comprised of an $88.7 million available cash balance and $30.0 million of revolver availability, compared to total available liquidity of $111.7 million at December 31, 2020. The total principal amount of debt outstanding, as of June 30, 2021, was $619.2 million, predominantly comprised of $618.0 million in first lien term loans, which mature in February 2024.
In May 2020, we issued an additional $95.0 million in secured term loans to increase the Company's cash position and strengthen our financial flexibility in response to the uncertain gaming industry operating environment that emerged following the global spread of the COVID-19 virus. In conjunction with the $95.0 million offering, the Company negotiated a financial covenant relief period through December 31, 2020 related to its net first lien leverage ratio financial covenant and implemented a revised calculation of Adjusted EBITDA to measure the net first lien leverage ratio for the first three quarters of 2021. As of June 30, 2021, our net first lien leverage ratio, measured in accordance with the revised calculation of Adjusted EBITDA described above, was 4.1 times, putting us in compliance with our 6.0 times financial covenant.
Subsequent to quarter end, we successfully extended the maturity on our $30 million revolving credit facility to November 2023 from the prior maturity of June 2022.
Total net debt, which is the principal amount of debt outstanding less cash and cash equivalents, as of June 30, 2021 was approximately $530.5 million compared to approximately $540.8 million at December 31, 2020. Our Total Net Debt Leverage Ratio decreased from 7.5 times at December 31, 2020 to 5.0 times at June 30, 2021 (see Total Net Debt Leverage Ratio Reconciliation below(4)).
Second quarter 2021 capital expenditures totaled $11.5 million, primarily comprised of $6.8 million in growth capital expenditures, which reflect costs associated with the placement of additional units into our leased installed base, and $3.4 million in intangible capital expenditures, inclusive of capitalized internal software development costs. Capital expenditures decreased 23.5% relative to the $15.1 million incurred in the 2019 second quarter, in line with our plans to conservatively manage the use of our cash and only invest in those projects presenting the highest potential return on our investment.
(4) Total Adjusted EBITDA and total net debt leverage ratio are non-GAAP measures, see non-GAAP reconciliation below. |
Conference Call and Webcast
AGS leadership will host a conference call to review the Company's second quarter 2021 results on August 5, 2021, at 5 p.m. EDT. Participants may access a live webcast of the conference call, along with a slide presentation reviewing the quarterly results, at the Company's Investor Relations website http://investors.playags.com. A replay of the webcast will be available on the website following the live event. U.S. and Canadian participants may access the call live by telephone by calling +1 (844) 200-6205, while international participants should call +1 (646) 904-5544 . The conference ID/access code is 715923.
Company Overview
AGS is a global company focused on creating a diverse mix of entertaining gaming experiences for every kind of player. Our roots are firmly planted in the Class II tribal gaming market, but our customer-centric culture and remarkable growth have helped us branch out to become one of the most all-inclusive commercial gaming equipment suppliers in the world. Powered by high-performing Class II and Class III slot products, an expansive table products portfolio, highly rated social casino, real-money gaming solutions for players and operators, and best-in-class service, we offer an unmatched value proposition for our casino partners. Learn more at playags.com.
AGS Investor & Media Contacts:
Brad Boyer, Vice President of Investor Relations, Corporate Development and Strategy
bboyer@playags.com
Julia Boguslawski, Chief Marketing Officer
jboguslawski@playags.com
©2021 PlayAGS, Inc. Products referenced herein are sold by AGS LLC or other subsidiaries of PlayAGS, Inc. Solely for convenience, marks, trademarks and trade names referred to in this press release appear without the ® and TM and SM symbols, but such references are not intended to indicate, in any way, that PlayAGS, Inc. will not assert, to the fullest extent under applicable law, its rights or the rights of the applicable licensor to these marks, trademarks and trade names.
Forward-Looking Statement
This release contains, and oral statements made from time to time by our representatives may contain, forward-looking statements based on management's current expectations and projections, which are intended to qualify for the safe harbor of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements regarding the proposed public offering and other statements identified by words such as "believe," "will," "may," "might," "likely," "expect," "anticipates," "intends," "plans," "seeks," "estimates," "believes," "continues," "projects" and similar references to future periods, or by the inclusion of forecasts or projections. All forward-looking statements are based on current expectations and projections of future events.
These forward-looking statements reflect the current views, models, and assumptions of AGS, and are subject to various risks and uncertainties that cannot be predicted or qualified and could cause actual results in AGS's performance to differ materially from those expressed or implied by such forward looking statements. These risks and uncertainties include, but are not limited to, the ability of AGS to maintain strategic alliances, unit placements or installations, grow revenue, garner new market share, secure new licenses in new jurisdictions, successfully develop or place proprietary product, comply with regulations, have its games approved by relevant jurisdictions, the effects of COVID-19 on the Company's business and results of operations and other factors set forth under Item 1. "Business," Item 1A. "Risk Factors" in AGS's Annual Report on Form 10-K, filed with the Securities and Exchange Commission. All forward-looking statements made herein are expressly qualified in their entirety by these cautionary statements and there can be no assurance that the actual results, events or developments referenced herein will occur or be realized. Readers are cautioned that all forward-looking statements speak only to the facts and circumstances present as of the date of this press release. AGS expressly disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
PLAYAGS, INC. CONSOLIDATED BALANCE SHEETS (amounts in thousands, except share and per share data) | ||||||||
June 30, | December 31, | |||||||
2021 | 2020 | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 88,688 | $ | 81,689 | ||||
Restricted cash | 20 | 20 | ||||||
Accounts receivable, net of allowance of $2,114 and $2,077, respectively | 45,375 | 41,743 | ||||||
Inventories | 26,069 | 26,902 | ||||||
Prepaid expenses | 8,481 | 4,210 | ||||||
Deposits and other | 6,670 | 4,704 | ||||||
Total current assets | 175,303 | 159,268 | ||||||
Property and equipment, net | 74,682 | 81,040 | ||||||
Goodwill | 286,044 | 286,042 | ||||||
Intangible assets | 172,512 | 187,644 | ||||||
Deferred tax asset | 6,850 | 6,762 | ||||||
Operating lease assets | 11,857 | 9,763 | ||||||
Other assets | 9,328 | 10,259 | ||||||
Total assets | $ | 736,576 | $ | 740,778 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 6,919 | $ | 9,547 | ||||
Accrued liabilities | 33,653 | 26,325 | ||||||
Current maturities of long-term debt | 6,923 | 7,031 | ||||||
Total current liabilities | 47,495 | 42,903 | ||||||
Long-term debt | 600,906 | 601,560 | ||||||
Deferred tax liability, non-current | 2,389 | 2,254 | ||||||
Operating lease liabilities, long-term | 11,373 | 9,497 | ||||||
Other long-term liabilities | 28,185 | 30,781 | ||||||
Total liabilities | 690,348 | 686,995 | ||||||
Commitments and contingencies | ||||||||
Stockholders' equity | ||||||||
Preferred stock at $0.01 par value; 50,000,000 shares authorized, no shares issued and outstanding | - | - | ||||||
Common stock at $0.01 par value; 450,000,000 shares authorized at June 30, 2021 and at December 31, 2020; and 36,666,966 and 36,494,002 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively. | 367 | 364 | ||||||
Additional paid-in capital | 384,776 | 379,917 | ||||||
Accumulated deficit | (333,853) | (321,412) | ||||||
Accumulated other comprehensive loss | (5,062) | (5,086) | ||||||
Total stockholders' equity | 46,228 | 53,783 | ||||||
Total liabilities and stockholders' equity | $ | 736,576 | $ | 740,778 |
PLAYAGS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (amounts in thousands, except per share data) | ||||||||
Three Months Ended June 30, | ||||||||
2021 | 2020 | |||||||
Revenues | ||||||||
Gaming operations | $ | 55,039 | $ | 10,189 | ||||
Equipment sales | 11,798 | 6,599 | ||||||
Total revenues | 66,837 | 16,788 | ||||||
Operating expenses | ||||||||
Cost of gaming operations(5) | 9,677 | 5,495 | ||||||
Cost of equipment sales(5) | 5,748 | 4,162 | ||||||
Selling, general and administrative | 16,300 | 8,609 | ||||||
Research and development | 9,009 | 4,931 | ||||||
Write-downs and other charges | 64 | 819 | ||||||
Depreciation and amortization | 18,611 | 21,521 | ||||||
Total operating expenses | 59,409 | 45,537 | ||||||
Income (loss) from operations | 7,428 | (28,749) | ||||||
Other expense (income) | ||||||||
Interest expense | 11,517 | 10,894 | ||||||
Interest income | (276) | (120) | ||||||
Loss on extinguishment and modification of debt | - | 3,102 | ||||||
Other (income) expense | (181) | (35) | ||||||
(Loss) income before income taxes | (3,632) | (42,590) | ||||||
Income tax (expense) benefit | (251) | (49) | ||||||
Net (loss) income | (3,883) | (42,639) | ||||||
Foreign currency translation adjustment | 886 | 575 | ||||||
Total comprehensive (loss) income | $ | (2,997) | $ | (42,064) | ||||
Basic and diluted loss per common share: | ||||||||
Basic | $ | (0.11) | $ | (1.20) | ||||
Diluted | $ | (0.11) | $ | (1.20) | ||||
Weighted average common shares outstanding: | ||||||||
Basic | $ | 36,632 | $ | 35,602 | ||||
Diluted | $ | 36,632 | $ | 35,602 |
(5) Exclusive of depreciation and amortization. |
PLAYAGS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) | ||||||||
Six Months Ended June 30, | ||||||||
2021 | 2020 | |||||||
Cash flows from operating activities | ||||||||
Net (loss) income | $ | (11,653) | $ | (57,058) | ||||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 37,019 | 45,890 | ||||||
Accretion of contract rights under development agreements and placement fees | 3,316 | 3,733 | ||||||
Amortization of deferred loan costs and discount | 2,680 | 1,429 | ||||||
Stock-based compensation expense | 4,862 | 2,993 | ||||||
Provision (benefit) for bad debts | 205 | (199) | ||||||
Loss on disposition of long-lived assets | 191 | 74 | ||||||
Impairment of assets | 653 | 6 | ||||||
Fair value adjustment of contingent consideration | (56) | 794 | ||||||
Benefit for deferred income tax | 49 | (123) | ||||||
Changes in assets and liabilities that relate to operations: | ||||||||
Accounts receivable | (3,844) | 26,174 | ||||||
Inventories | 2,367 | 101 | ||||||
Prepaid expenses | (4,270) | (1,992) | ||||||
Deposits and other | (1,920) | 1,030 | ||||||
Other assets, non-current | 1,706 | 915 | ||||||
Accounts payable and accrued liabilities | 4,588 | (15,900) | ||||||
Net cash provided by operating activities | 35,893 | 7,867 | ||||||
Cash flows from investing activities | ||||||||
Customer notes receivable | - | (2,579) | ||||||
Purchase of intangible assets | - | (925) | ||||||
Software development and other expenditures | (7,210) | (5,530) | ||||||
Proceeds from disposition of assets | 22 | 28 | ||||||
Purchases of property and equipment | (14,191) | (8,057) | ||||||
Net cash used in investing activities | (21,379) | (17,063) | ||||||
Cash flows from financing activities | ||||||||
Repayment of first lien credit facilities | (2,694) | (2,694) | ||||||
Repayment of incremental term loans | (475) | - | ||||||
Payment of financed placement fee obligations | (2,444) | (3,444) | ||||||
Proceeds from incremental term loans | - | 92,150 | ||||||
Borrowing on revolver | - | 30,000 | ||||||
Payment of deferred loan costs | - | (5,744) | ||||||
Payments of previous acquisition obligation | (257) | (284) | ||||||
Payments on finance leases and other obligations | (867) | (669) | ||||||
Repurchase of stock | (788) | (360) | ||||||
Proceeds from stock option exercise | - | 158 | ||||||
Net cash (used in) provided by financing activities | (7,525) | 109,113 | ||||||
Effect of exchange rates on cash and cash equivalents | 10 | (10) | ||||||
Net increase in cash, cash equivalents and restricted cash | 6,999 | 99,907 | ||||||
Cash, cash equivalents and restricted cash, beginning of period | 81,709 | 13,182 | ||||||
Cash, cash equivalents and restricted cash, end of period | $ | 88,708 | $ | 113,089 | ||||
Supplemental cash flow information: | ||||||||
Non-cash investing and financing activities: | ||||||||
Leased assets obtained in exchange for new operating lease liabilities | $ | 3,042 | $ | - | ||||
Leased assets obtained in exchange for new finance lease liabilities | $ | 318 | $ | 338 | ||||
Non-GAAP Financial Measures
To provide investors with additional information in connection with our results as determined by generally accepted accounting principles in the United States ("GAAP"), we disclose the following non-GAAP financial measures: total Adjusted EBITDA, total Adjusted EBITDA margin, total net debt leverage ratio, and Free Cash Flow. These measures are not financial measures calculated in accordance with GAAP and should not be considered as a substitute for net income, operating income, cash flows, or any other measure calculated in accordance with GAAP, and may not be comparable to similarly titled measures reported by other companies.
Total Adjusted EBITDA
This press release and accompanying schedules provide certain information regarding Adjusted EBITDA, which is considered a non-GAAP financial measure under the rules of the Securities and Exchange Commission.
We believe that the presentation of total Adjusted EBITDA is appropriate to provide additional information to investors about certain material non-cash items that we do not expect to continue at the same level in the future, as well as other items we do not consider indicative of our ongoing operating performance. Further, we believe total Adjusted EBITDA provides a meaningful measure of operating profitability because we use it for evaluating our business performance, making budgeting decisions, and comparing our performance against that of other peer companies using similar measures. It also provides management and investors with additional information to estimate our value.
Total Adjusted EBITDA is not a presentation made in accordance with GAAP. Our use of the term total Adjusted EBITDA may vary from others in our industry. Total Adjusted EBITDA should not be considered as an alternative to operating income or net income. Total Adjusted EBITDA has important limitations as an analytical tool, and you should not consider it in isolation or as a substitute for the analysis of our results as reported under GAAP.
Our definition of total Adjusted EBITDA allows us to add back certain non-cash charges that are deducted in calculating net income and to deduct certain gains that are included in calculating net income. However, these expenses and gains vary greatly, and are difficult to predict. They can represent the effect of long-term strategies as opposed to short-term results. In addition, in the case of charges or expenses, these items can represent the reduction of cash that could be used for other corporate purposes. Due to these limitations, we rely primarily on our GAAP results, such as net loss, (loss) income from operations, EGM Adjusted EBITDA, Table Products Adjusted EBITDA or Interactive Adjusted EBITDA and use Total Adjusted EBITDA only supplementally.
The total Adjusted EBITDA discussion above is also applicable to its margin measure, which is calculated as total Adjusted EBITDA as a percentage of Total Revenue.
The following table presents a reconciliation of total Adjusted EBITDA to net loss, which is the most comparable GAAP measure:
Total Adjusted EBITDA Reconciliation
(Amounts in thousands) | % Change | |||||||||||||||||||
2021 | 2020 | 2019 | 2021 vs | 2021 vs | ||||||||||||||||
Net (loss) income | $ | (3,883) | $ | (42,639) | $ | (7,557) | (90.9) | % | (48.6) | % | ||||||||||
Income tax (benefit) expense | 251 | 49 | (52) | 412.2 | % | (582.7) | % | |||||||||||||
Depreciation and amortization | 18,611 | 21,521 | 23,659 | (13.5) | % | (21.3) | % | |||||||||||||
Other expense | (181) | (35) | (46) | 417.1 | % | 293.5 | % | |||||||||||||
Interest income | (276) | (120) | (31) | 130.0 | % | 790.3 | % | |||||||||||||
Interest expense | 11,517 | 10,894 | 9,560 | 5.7 | % | 20.5 | % | |||||||||||||
Loss on extinguishment and modification of debt | - | 3,102 | - | (100.0) | % | N/A | ||||||||||||||
Write-downs and other(6) | 64 | 819 | 5,036 | (92.2) | % | (98.7) | % | |||||||||||||
Other adjustments(7) | 283 | 1,537 | 429 | (81.6) | % | (34.0) | % | |||||||||||||
Other non-cash charges(8) | 2,053 | 2,497 | 2,196 | (17.8) | % | (6.5) | % | |||||||||||||
Legal and litigation expenses including settlement payments(9) | 434 | - | 3 | N/A | N/A | |||||||||||||||
Acquisitions and integration-related costs including restructuring and severance(10) | - | (220) | 394 | (100.0) | % | (100.0) | % | |||||||||||||
Non-cash stock-based compensation | 3,230 | 1,442 | 2,154 | 124.0 | % | 50.0 | % | |||||||||||||
Total Adjusted EBITDA | $ | 32,103 | $ | (1,153) | $ | 35,745 | N/A | (10.2) | % |
(Amounts in thousands, except Adjusted EBITDA margin) | % Change | |||||||||||||||||||
2021 | 2020 | 2019 | 2021 vs | 2021 vs | ||||||||||||||||
Total revenues | $ | 66,837 | $ | 16,788 | $ | 74,509 | 298.1 | % | (10.3) | % | ||||||||||
Adjusted EBITDA | $ | 32,103 | $ | (1,153) | $ | 35,745 | N/A | (10.2) | % | |||||||||||
Adjusted EBITDA margin | 48.0 | % | -6.9 | % | 48.0 | % | (52.0) | % | 0.1 | % |
(6) Write-downs and other includes items related to loss on disposal or impairment of long-lived assets, fair value adjustments to contingent consideration, and acquisition costs. |
(7) Other adjustments are primarily composed of costs and inventory and receivable valuation charges associated with the COVID-19 pandemic, professional fees incurred for projects, corporate and public filing compliance, contract cancellation fees, and other transaction costs deemed to be non-operating in nature, as well as costs incurred related to initial public offering, net of costs capitalized to equity and the cost of related secondary offerings. |
(8) Other non-cash charges are costs related to non-cash charges and losses on the disposition of assets, non-cash charges on capitalized installation and delivery, which primarily includes the costs to acquire contracts that are expensed over the estimated life of each contract, and non-cash charges related to accretion of contract rights under development agreements. |
(9) Legal and litigation expenses including settlement payments consist of payments to law firms and settlements for matters that are outside the normal course of business. |
(10) Acquisition and integration costs primarily relate to costs incurred after the purchase of businesses, such as the purchase of Integrity, to integrate operations and obtain costs synergies. Restructuring and severance costs primarily relate to costs incurred through the restructuring of the Company's operations from time to time and other employee severance costs recognized in the periods presented. |
Total Net Debt Leverage Ratio Reconciliation
The following table presents a reconciliation of total net debt and total net debt leverage ratio:
(Amounts in thousands, except net debt leverage ratio) | June 30, | December 31, | ||||||
2021 | 2020 | |||||||
Total principal amount of debt | $ | 619,193 | $ | 622,509 | ||||
Less: Cash and cash equivalents | 88,688 | 81,689 | ||||||
Total net debt | $ | 530,505 | $ | 540,820 | ||||
LTM Adjusted EBITDA | $ | 106,746 | $ | 71,669 | ||||
Total net debt leverage ratio | 5.0 | 7.5 |
Free Cash Flow
This schedule provides certain information regarding Free Cash Flow, which is considered a non-GAAP financial measure under the rules of the Securities and Exchange Commission.
We define Free Cash Flow as net cash provided by operating activities less cash outlays related to capital expenditures. We define capital expenditures to include purchase of intangible assets, software development and other expenditures, and purchases of property and equipment. In arriving at Free Cash Flow, we subtract cash outlays related to capital expenditures from net cash provided by operating activities because they represent long-term investments that are required for normal business activities. As a result, subject to the limitations described below, Free Cash Flow is a useful measure of our cash available to repay debt and/or make other investments.
Free Cash Flow adjusts for cash items that are ultimately within management's discretion to direct, and therefore, may imply that there is less or more cash that is available than the most comparable GAAP measure. Free Cash Flow is not intended to represent residual cash flow for discretionary expenditures since debt repayment requirements and other non-discretionary expenditures are not deducted. These limitations are best addressed by using Free Cash Flow in combination with the GAAP cash flow numbers.
The following table presents a reconciliation of Free Cash Flow:
(Amounts in thousands) | Six Months | Three Months | Three Months | |||||||||
Net cash provided by operating activities | $ | 35,893 | $ | 9,693 | $ | 26,200 | ||||||
Software development and other expenditures | (7,210) | (3,766) | (3,444) | |||||||||
Purchases of property and equipment | (14,191) | (6,109) | (8,082) | |||||||||
Free Cash Flow | $ | 14,492 | $ | (182) | $ | 14,674 |
(Amounts in thousands) | Six Months Ended | Three Months | Three Months | |||||||||
Net cash provided by operating activities | $ | 7,867 | $ | 18,809 | $ | (10,942) | ||||||
Purchase of intangible assets | (925) | (699) | (226) | |||||||||
Software development and other expenditures | (5,530) | (3,756) | (1,774) | |||||||||
Purchases of property and equipment | (8,057) | (6,150) | (1,907) | |||||||||
Free Cash Flow | $ | (6,645) | $ | 8,204 | $ | (14,849) |
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SOURCE AGS
Copyright 2021 PR Newswire
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