Playags Inc (NYSE:AGS) Q2 2020 Earnings Conference Call - Final Transcript

Aug 05, 2020 • 05:00 pm ET

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Playags Inc (NYSE:AGS) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good afternoon, and welcome to the PlayAGS Second Quarter 2020 Earnings Conference Call. [Operator Instructions]

I would now like to turn the conference over to Julia Boguslawski, Chief Mark Officer and EVP of Investor Relations. Please go ahead.

Executive
Julia Boguslawski

Thank you, and good afternoon, everyone. Welcome to AGS' Second Quarter 2020 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 second quarter in 2020, which can be found on our Investor Relations website, investors.playags.com. Today's call is to provide you with information regarding our Q2 2020 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

Thanks, Julia, and good afternoon, everyone. I want to start this call by recognizing our AGS team. Despite uncertainty and hardship, our team has worked hard and adapted quickly to move our business forward, as well as having exercise discipline to help us protect the balance sheet so that we can navigate the near-term challenges. I'm proud to see our team to rally together to help put AGS in the best possible position to emerge from this pandemic as a stronger and more nimble organization. As we indicated on our last call, the second quarter was extremely challenging as we experienced closures of nearly all casino customers for the entire month of April and most of May due to the COVID-19 pandemic.

This resulted in Q2 revenue down 77% year-over-year and an EBITDA loss of approximately $1.2 million. We started to see casinos reopen in late May, which has led to approximately 75% of our domestic casino customers active in some capacity by June 30, representing around 15,000 EGMs from our domestic installed base with more than 11,000 of those turned on or active at the end of