January 18, 2022 Casino, Legal, Land Based

AGS expects to narrow its net loss in 2021

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Company is exploring a refinancing of its outstanding debt.

PlayAGS on Tuesday announced selected preliminary financial results for the fourth quarter and full year ending December 31, 2021.

The gaming equipment supplier said it expected its net loss for 2021 to be in the range of $19.2m to $24.75m, which would be an improvement over the $85.378m AGS lost in 2020.

Full year revenue is expected to improve from $167m in 2020 to an estimated $258.6m to $261m in 2021.

The fourth quarter of 2021 saw revenue in the range of $68.4m to $70.8m, which the company said made a jump from $46.622m in Q4 of 2020.

Net income for Q4 2020 was negative $17.2m. AGS said it expects its quarterly loss for Q4 2021 to narrow to $6.075 to $11.625m.

Adjusted EBITDA is expected to improve on both a quarterly and full year basis, the company said.

EBITDA for FY 2020 was $71.669m, a figure that is projected to rise to a range of $121.65m to $123.8m. Q4 2020 saw EBITDA of $21.299m, with AGS anticipating last quarter’s number to come it at $30.675m to $32.825m.

In conjunction with the release of its estimated results, the company revealed its intention to explore a refinancing of its outstanding revolving credit facility and term loan credit facilities.

AGS President and Chief Executive Officer David Lopez said a refinancing transaction could include increasing the size of the company’s revolving credit facility, extending its debt maturities and reducing its borrowing costs. In addition, he said the company could look to use a material amount of cash on its balance sheet that could exceed $50m in connection with such refinancing.

“Our preliminary fourth quarter 2021 financial results further reflect the operating momentum we are witnessing across all three segments of our business,” Lopez said in a statement. “I continue to believe we have the best lineup of new products in our company’s history and am excited about the opportunities that lie ahead.”

According to a statement from the AGS legal department, the information for the fourth quarter and fiscal year ending December 31, 2021, included in Tuesday’s release is preliminary, has been prepared by the company's management, has not been reviewed or audited by the company’s auditors, and represents the best estimates of management based on the information available to them as of the date of this release. The company noted it is in the process of completing its audit for the fiscal year ended December 31, 2021, and anticipates releasing its 2021 fourth quarter and full year results on March 10, 2022, after the market close. All information released Tuesday is subject to adjustments, AGS added.

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