Online and offline casino games supplier; American Gaming Systems, has today spoken out about how it has offset the challenges the firm faced from the current and ongoing Coronavirus pandemic as it reported its quarter three results.
The results covered the period from July through September and included a net loss of just over eleven million dollars along with operations update of new hardware installations, including 150 Orion Curve Cabinets and around 50 Orion Starwall Seats.
The company’s CEO David Lopez passed comment of how produ he is of how the corporation has handled the Covid-19 crisis and delivered better than expected results, along with the firm’s outlook for the future when the gaming industry returns to normal.
AGS is a leading supplier of slot machine cabinets alongside its strong online portfolio and the company stated that its roadmap of new products aligns it for greater success and results improvement over the coming months.
Despite a slow return for the gaming industry following a global lockdown, AGS witnesses performance improvements this quarter, particularly in comparison to the second quarter of this year.
In addition, cash flow was positive and allowed the firm to report strong liquidity, with a positive oversight for the remainder of the year.
David Lopez, AGS President and Chief Executive Officer spoke about the results and challenges:
“I am extremely proud of how our team came together to offset the challenges brought upon by the COVID-19 pandemic to deliver better than expected third quarter 2020 financial results.
Our employees’ experiences throughout the pandemic will only help to strengthen their collective resolve, in turn propelling AGS to emerge a stronger and more nimble company as the world gradually returns to normal.”
I continue to believe AGS has its strongest pipeline of new product and game themes in the Company’s history, positioning our EGM segment for greater success in the quarters ahead.
I am particularly enthused about the prospects for our domestic EGM recurring revenue business, supported by the continued outperformance of our initial Starwall installs, and believe improved hardware and game content position us to command our fair share of future unit placements.
Additionally, I remain encouraged by the strategic growth opportunities emerging within our table games segment and look for our interactive performance to continue to improve as additional states contemplate the introduction of real money online gaming legislation.”
In the United States and Canada, almost all of American Gaming Systems’ customers had resumed business operation, albeit limited, and the firm’s Mexican client base was at fifty percent reopening with capacity restrictions.
Although revenue figures were down in comparison to last year, the company experiences an increase compared to the second quarter of 2020, showing market improvement and a return to more normal measures.
Kimo Akiona, AGS Chief Financial Officer concluded with comments on the third quarter report and what it means for the company:
“Our third quarter financial performance improved dramatically compared to the 2020 second quarter, with revenues, net loss, and adjusted EBITDA improving sharply on a sequential basis.
Importantly, we were free cash flow positive in the quarter, allowing us to report a strong liquidity position of $113.2 million at quarter end.
Given our better-than-expected third quarter financial performance and growing comfort with our resulting liquidity position, we elected to fully repay the $30 million outstanding on our revolving credit facility, subsequent to quarter end.”