PlayAGS forecasts revenue growth and reduced net loss for FY21
Revenue for the 12 months to 31 December is expected to amount to between $258.6m (£190.0m/€228.1m) and $261.0m, meaning an increase of between 54.9% and 56.3%, PlayAGS said in a preliminary results posting.
PlayAGS said electronic gaming machines (EGM) would remain its primary source of revenue, with revenue from this area of the business having an expected range of $237.0m to $239.0m, compared to $151.8m in 2020.
Table product revenue is set to reach between $11.7m and $11.9m, both of which would be higher than $8.0m in the previous year, while interactive revenue is forecast to increase from $7.2m to between $9.9m and $10.1m.
PlayAGS did not publish a full financial breakdown at this stage but did state that it expects adjusted earnings before interest, tax, depreciation and amortisation (EBTIDA) to be in the range of $121.7m to $123.8m, compared to $71.7m in 2020.
Based on expected expenses for the full year, PlayAGS added that net loss should amount to between $19.2m and $24.8m, with this year’s loss being 4.4 times shorter than the $85.4m loss posted in 2020.
Looking at the fourth quarter, revenue is set to increase by between 46.8% and 51.9% year-on-year, with an expected range of $68.4m to $70.8m.
EGM revenue should reach between $63.0m and $65.0m, while table products revenue has a range of $3.0m to $3.2m, and interactive revenue $2.4m to $2.6m.
Adjusted EBITDA for the fourth quarter should range between $30.7m and $32.8m, both up from $21.3m in 2020, while net loss has an expected range of $6.1m to $11.6m, compared to $17.2m in the previous year.
“Our preliminary fourth quarter 2021 financial results further reflect the operating momentum we are witnessing across all three segments of our business,” PlayAGS president and chief executive David Lopez said.
“I continue to believe we have the best line up of new products in our company’s history and am excited about the opportunities that lie ahead.”
Meanwhile, PlayAGS set out plans to explore a refinancing of its outstanding revolving credit facility and term loan credit facilities.
The refinancing transaction could include increasing the size of the provider’s revolving credit facility, extending its debt maturities and reducing its borrowing costs.
PlayAGS said it could also look to use a material amount of cash on its balance sheet that could exceed $50m in connection with refinancing.