AGS (American Gaming Systems) has reported its third-quarter financial results, including a total revenue increase of 14% year-on-year to $89.4m. The supplier has seen incremental growth since this time last year, with its electronic gambling machine (EGM) sector performing the best, and accounting for $81.9m of the quarter’s total.
Conversely, table products generated $4.4m in total revenue for the quarter (up 8.7% year-on-year), while the interactive sector generated $3.1m (up 20.2% year-on-year). AGS reported that this figure for the interactive division is a record result.
Equipment sales increased around 31% from Q3 of 2022 to $28.4m, while gaming operations or ‘recurring revenue’ grew 8% year-on-year to reach $61m.
AGS President and CEO David Lopez said, "We delivered another solid quarter of execution, with our product momentum and focused team producing performance that far exceeded the trends observed across the broader domestic gaming landscape.
“Exiting our most exciting Global Gaming Expo (G2E) to date, I believe our deeper and more diverse product portfolio, combined with our passionate team, position us to deliver on this theme of relative outperformance for many quarters to come."
During the third quarter, AGS expanded to Colorado and Missouri with the launch of its Triple Coin Treasures collection and named Bob Blair the company’s new Deputy General Counsel.
Adjusted EBITDA totaled $40.1m, up 16.4%, with EGMs also accounting for most of the total at an adjusted EBITDA of $36.8m. Adjusted EBITDA for table products was $2.4m (down 4.9% annually) and adjusted EBITDA for the interactive segment was $903,000 (up 57% annually).
Income from operations grew 60.8% from Q3 of last year to $14.5m; however, AGS achieved a net loss of $156,000, compare to a net income of $476,000 in the previous year’s third quarter.
AGS CFO Kimo Akiona added, "Our Q3 2023 adjusted EBITDA and free cash flow performance enabled us to reduce our net leverage to 3.4 times at quarter end, placing us inside of our targeted year-end range of 3.25 times to 3.50 times a full quarter ahead of schedule.”
Cash from operations reached $30m, while free cash flow achieved was $12.7m.
