PlayAGS, a designer and developer of gaming solutions, has published its results for the fourth quarter of 2022, demonstrating strong growth across its verticals. The company’s revenues and EBITDA improved significantly as interest in its products grew.
As reported by the company, its total revenue increased to a record $81.7 million, representing a favorable 16% rise. This notably marks the eighth consecutive quarter of growth for the company.
The provider also reported a net income of $2.5 million. Adjusted EBITDA, on the other hand, increased by 16% year-on-year to $37.3 million. This represents a quarterly record for the company, PlayAGS noted. The firm added that it has achieved its year-end 2022 net leverage target of less than 4.0x.
PlayAGS’s EGM revenue skyrocketed both domestically and globally as sales exceeded expectations. With such favorable results, PlayAGS hopes to finish 2023 with net leverage in the range of 3.25x to 3.75x.
As of December 31, 2022, PlayAGS had a total available cash balance of $37.9 million. In addition, the company had $40 million of availability under its undrawn revolving credit, totaling a liquidity of $78 million. The company’s outstanding debt, meanwhile, is now $571.4 million.
The Leadership Is Happy with the Progress
The company’s president and chief executive officer, David Lopez, commented on PlayAGS’ impressive results. He emphasized that the record-setting figures and accelerated returns are all thanks to the company’s investments in the R&D, sales and product management teams.
Lopez added that he is very optimistic about the company’s future and believes that PlayAGS will be able to maintain its momentum.
Looking ahead to 2023, I see a set of company-specific growth catalysts forming within all three segments of our business that should allow our recent operating momentum to continue.
David Lopez, president & CEO, PlayAGS
Kimo Akiona, the company’s chief financial officer, also commented on the matter. He said that the AGS team is excited that it successfully reached its target net leverage of less than 4.0x. Akiona is content with the results and hopes that his team will surpass them in 2023.
As we move forward into 2023, our organization remains squarely focused on maximizing free cash flow and further reducing the amount of leverage on our balance sheet.
Kimo Akiona, CFO, PlayAGS
Yesterday, the PlayAGS leadership hosted a conference call to review the results.
In other news, the company recently expanded its team by adding new chief legal officer. The one up to the task was Robert Ziems, a long-term industry veteran.