PlayAGS(US:AGS)2024-03-04 16:00Financial Performance - Total revenue increased 15% year-over-year to a record $94.2 million, marking the eleventh consecutive quarter of double-digit growth [4]. - Total revenues for Q4 2023 reached $94.151 million, a 15.2% increase from $81.736 million in Q4 2022 [49]. - Total Adjusted EBITDA advanced to a record $42.8 million, with a margin of 45.4%, surpassing the 45% level for the first time since Q4 2022 [8]. - Total Adjusted EBITDA for Q4 2023 was $42,760,000, reflecting a 14.7% increase from $37,280,000 in Q4 2022 [49]. - Income from operations increased 19% year-over-year to $16.0 million, while net income totaled $67 thousand [5]. - Net income for the year ended December 31, 2023, was $428,000, a significant improvement from a net loss of $8,035,000 in 2022 [41]. - Gaming operations revenue was $59.596 million, up from $57.406 million year-over-year, representing a 3.8% growth [39]. - Free cash flow totaled $11.0 million, up more than 45% compared to the prior year period, marking three consecutive quarters of over $10 million in free cash flow [7]. - Free Cash Flow for the year ended December 31, 2023, was $27,359,000, compared to $10,338,000 in 2022, indicating a strong cash generation capability [57]. Sales and Revenue Growth - Global EGM sales reached a record 1,519 units, up over 30% year-over-year for the third straight quarter [5]. - Equipment sales revenue increased more than 40% year-over-year to a record $34.6 million, driven by strong growth in EGM and Table Products [8]. - Interactive revenue grew more than 30% year-over-year to a record $3.4 million, up 8% versus Q3 2023 [5]. - Total Table Products revenue increased 24% year-over-year to $4.8 million, with gaming operations revenue accounting for over 80% of segment-level revenue [20]. - The company anticipates continued growth in market share and revenue, driven by new product developments and strategic partnerships [35]. Debt and Leverage - Net leverage fell to 3.2x at quarter end, with a target of 2.75x to 3.00x by year-end 2024 [5]. - Total net debt was $515.8 million as of December 31, 2023, with a net debt leverage ratio of 3.2 times, down from 3.8 times in the previous year [25]. - The total net debt leverage ratio improved to 3.2 in December 2023, down from 3.8 in December 2022 [53]. - The Company anticipates exiting 2024 with a total net debt leverage ratio between 2.75 times and 3.00 times, supported by strong performance and operational efficiency [29]. Cash and Liquidity - The Company had an available cash balance of $50.9 million and $40.0 million of availability under its undrawn revolving credit facility, totaling over $90 million in liquidity [24]. - Cash, cash equivalents, and restricted cash at the end of the period increased to $51,180,000 from $37,911,000 at the beginning of the period [41]. Assets and Liabilities - Total assets as of December 31, 2023, were $680.338 million, slightly down from $684.751 million in 2022 [38]. - Total liabilities decreased to $612.671 million in 2023 from $635.390 million in 2022, reflecting a reduction of 3.6% [38]. - Stockholders' equity increased to $67.667 million in 2023, up from $49.361 million in 2022, indicating a growth of 37.1% [38]. Operational Efficiency - The company reported a significant increase in interest expense, net of interest income, which rose by 26.1% to $14,932,000 in Q4 2023 [47]. - Research and development expenses for the full year 2023 were $42.385 million, compared to $39.628 million in 2022, showing an increase of 6.9% [39]. - The Company expects full year 2024 capital expenditures to be in the range of $65 million to $70 million, with growth capital expenditures accounting for approximately 60% of total expenditures [26]. - The international EGM installed base reached 6,126 units at December 31, 2023, with a quarterly increase of 43 units [16].