Playags Inc (NYSE:AGS) Q3 2019 Earnings Conference Call Transcript

Nov 07, 2019 • 05:00 pm ET

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Playags Inc (NYSE:AGS) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day and welcome to the AGS Third Quarter 2019 Earnings Call and Webcast. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] I would now like to turn the conference over to Julia Boguslawski, EVP of Investor Relations. Please go ahead.

Executive
Julia Boguslawski

Thank you and good afternoon everyone. Welcome to AGS' third quarter 2019 earnings conference call. With me today are David Lopez, CEO; and Kimo Akiona, CFO. We posted a slide presentation reviewing our key operational and financial highlights for the third quarter 2019, which can be found on our Investor Relations website investors.playags.com.

Today's call is to provide you with information regarding our Q3 2019 performance in addition to our financial outlook. This conference call includes forward-looking statements. Any statement that refers to expectations, projections or other characterizations of future events, including financial projections or future market conditions, is a forward-looking statement based on assumptions today.

Actual results may differ materially from those expressed in these forward-looking statements and we make no obligation to update our disclosures. For more information about factors that may cause actual results to differ materially from forward-looking statements, please refer to the earnings release that we issued today as well as risks described in our Annual Report on Form 10-K, particularly in the section of these documents titled Risk Factors.

Our commentary today will also include non-GAAP financial measures. We believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends. These measures should not be considered in isolation from or as a substitute for financial information prepared in accordance with GAAP. Reconciliations between GAAP and non-GAAP metrics for our reported results can be found in our earnings release issued today. Please refer to our filings with the SEC for more information.

With that I'd like to turn the call over to our CEO, David Lopez.

Executive
David Lopez

Thank you, Julia, and thank you everyone for joining AGS's Q3 earnings call. For those using the slide deck, please turn to slide 3. I'll start by providing a brief overview of the third quarter operational highlights and after a financial overview from Kimo I'll provide a few closing comments.

The third quarter was fueled by strong sales volume resulting in 1,391 EGMs sold, the most in our Company's history. Total revenue was a record $79.4 million, up 5% year-over-year, which was a result of continued demand for our Orion family of products, record performance from our table game segment and the Integrity acquisition completed in Q1 of this year.

Net loss of $5.5 million decreased year-over-year from net income of $4.3 million in the prior year period due to increases in depreciation and amortization as well as some tax expenses which Kimo will cover later. Adjusted EBITDA increased 10% year-over-year to $36.8 million, our highest EBITDA quarter-to-date.

Q3 recurring revenue of $52.5 million in the quarter was up 4% year-over-year