A
GS has posted its third-quarter 2021 results. Throughout the period, net loss improved to $1.8 million compared to $3.9 million in Q2 2021; while adjusted EBITDA Margin surpassed the upper end of the targeted 45% to 47% range.
AGS’ Chief Financial Officer, Kimo Akiona, called the third quarter “solid,” and said given the financial results obtained so far, the company now expects to be “nicely free cash flow positive” for the full year.
The developer and supplier now looks ahead to manage its leverage and liquidity position to ensure it can execute on opportunities to lower its borrowing costs, with an intermediate-term focus “on restoring the balance sheet flexibility” to the one prior to COVID-19.
Consolidated revenue in the quarter totaled $67.3 million, versus $49.3 million and $79.4 million in Q3 2020 and 2019 respectively. Premium game footprint nearly doubled year-to-date, while table products revenue reached an all-time record.
“Looking ahead, I see no signs of momentum slowing as demand for virtually all new table products remains strong,” said AGS President and Chief Executive Officer David Lopez. The latest G2E edition served as a formal opportunity to showcase the newest output. Lopez said, judging from the response, that it appears “operators were collectively supportive” of AGS’ current strategic path.
The CEO addressed during a call with investors inflationary costs and supply chain disruptions, macroeconomic factors affecting the gaming industry. However, Lopez remarked the business took a series of actions to mitigate the possible impact on the company.
The sales leadership has initiated a price integrity program “to limit discounting” on all for sale and recurring revenue products, and measures were undertaken to value engineer slot cabinets. Additionally, the material planning timeline was extended to help lock in future inventory to the best of the company’s ability.
“Although we can’t eliminate the present global supply chain issues, we believe our awesome teams have taken the right actions to mitigate the overall impact on our business,” the CEO concluded.
Breaking down Q3 figures shows that gaming operations accounted for $53.2 million of overall revenue in the quarter, up 46.6% on last year, while equipment sales revenue accounted for $14.0 million, an increase of 7.7% from last year.
In terms of types of games, electronic gaming machines (EGM) remained the primary source of revenue, climbing 36.6% to $61.6 million. Within this segment, EGM gaming operations revenue was at $47.7 million, while equipment sales amounted to $13.9 million.
Original article: https://www.yogonet.com/international//noticias/2021/11/08/60102-ags-cuts-net-loss-and-improves-revenue-in-q3-strong-demand-amid-supply-chain-disruption
