Another casino games supplier has credited the reopened of Las Vegas casinos for saving their second quarter. AGS feels they did better than expected for the last three months, and looks forward to the rest of the year.
The quarter couldn’t be defined as good by any means. AGS saw a net loss of $42.6 million, or $1.20 per diluted share, compared with a net loss of $7.6 million for the same period in 2019. Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization) showed a loss of $1.6 million, a sure mark that things were bad as it was in the positive for $35.7 million in 2019. Overall revenue was down to $16.8 million, a 77.4% drop from $74.5 million in 2019.
“Although casinos started to reopen in the later part of the quarter, we remained disciplined in how we reintroduced cost back into the business, ramping departments that are essential to run our business, such as field service, R&D and manufacturing,” said AGS President and Chief Executive Officer David Lopez.
He also noted in their August 5 announcement that thanks to new products, like Starwall, Orion Rise and Orion Portrait, the future is looking good for AGS. “Given the breadth and depth of our current content portfolio, we believe that the long-term opportunities for AGS remain intact,” he said.
Added Chief Financial Officer Kimo Akiona shared the positive view. “Although it is hard to predict exactly how the pandemic will continue to impact the macro-operating environment, given all of the measures we’ve taken, we believe we are positioned with sufficient liquidity and flexibility to emerge from this a more competitive and more nimble organization,” he said.
In a conference call, AGS also noted that June saw a positive cash flow, indicating that the rest of the year should help bring the company back.
But damage has certainly been done. The number of installed electronic gambling machines (EGMs) have decreased by 627 units. That was only helped by the placement of 210 machines, thanks to a new casino opening.
AGS always knew Q2 was going to be bad. When announcing their Q1 results, which were also down year-over-year, Lopez predicted there would be consolidation in the market as the gambling industry starts to reckon with the long term effects of Covid-19.