PlayAGS, Inc. (AGS) Bundle
A Brief History of H3 Company
As of 2024, H3 Company has shown significant growth and development in its operations and financial performance. The company focuses on electronic gaming machines (EGMs), equipment sales, and interactive gaming segments.
Financial Performance Overview
For the three months ended September 30, 2024, H3 Company reported total revenues of $99,170,000, an increase of 11.0% from $89,378,000 in the same period of the previous year. The breakdown of revenues by segment is as follows:
| Segment | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | Change (%) |
|---|---|---|---|
| EGM | 88,672 | 81,862 | 8.3% |
| Table Products | 4,556 | 4,387 | 3.9% |
| Interactive | 5,942 | 3,129 | 89.9% |
For the nine months ended September 30, 2024, total revenues reached $291,882,000 compared to $262,385,000 in the same period of 2023, representing an increase of 11.3%.
Net Income and Earnings
H3 Company's net income for the three months ended September 30, 2024, was $2,432,000, a substantial increase from a net loss of $156,000 in the prior year, marking a 1,659.0% change. For the nine months ended September 30, 2024, net income totaled $7,217,000 compared to $361,000 in the same period of 2023.
Operating Expenses
Total operating expenses for the three months ended September 30, 2024, amounted to $81,712,000, reflecting a 9.2% increase from $74,855,000 in the previous year. Key components include:
| Expense Type | Q3 2024 Amount (in thousands) | Q3 2023 Amount (in thousands) | Change (%) |
|---|---|---|---|
| Cost of Gaming Operations | 13,477 | 13,246 | 1.7% |
| Cost of Equipment Sales | 17,039 | 13,540 | 25.8% |
| Selling, General and Administrative | 19,042 | 19,453 | (2.1%) |
| Research and Development | 11,726 | 9,731 | 20.5% |
Segment Performance
The EGM segment generated $263,306,000 in revenues for the nine months ended September 30, 2024, a 9.2% increase from $241,101,000 in the prior year. The Interactive segment performed remarkably with a revenue increase of 77.3%, reaching $14,905,000 compared to $8,407,000 in 2023.
Adjusted EBITDA
For the three months ended September 30, 2024, H3 Company's total Adjusted EBITDA was $43,725,000, representing a 9.0% increase from $40,111,000 in the same quarter of 2023. The adjusted EBITDA by segment is as follows:
| Segment | Q3 2024 Adjusted EBITDA (in thousands) | Q3 2023 Adjusted EBITDA (in thousands) | Change (%) |
|---|---|---|---|
| EGM | 37,595 | 36,772 | 2.2% |
| Table Products | 2,657 | 2,436 | 9.1% |
| Interactive | 3,473 | 903 | 284.6% |
As of September 30, 2024, H3 Company reported a total installed base of 23,033 EGMs, marking a 2.3% increase from the previous year.
Future Outlook
H3 Company is positioned for continued growth, focusing on expanding its product offerings and enhancing its market presence in the gaming industry.
A Who Owns PlayAGS, Inc. (AGS)
Major Shareholders
As of 2024, the ownership structure of PlayAGS, Inc. (AGS) reflects a mix of institutional and individual investors. The major shareholders include:
| Shareholder | Ownership Percentage | Type of Ownership |
|---|---|---|
| AP Gaming Holdings, LLC | 51.8% | Private Equity |
| BlackRock, Inc. | 8.5% | Institutional Investor |
| The Vanguard Group, Inc. | 7.2% | Institutional Investor |
| Dimensional Fund Advisors LP | 5.1% | Institutional Investor |
| Other Institutional Investors | 27.4% | Various |
Management and Insider Ownership
The management team and board members also hold a significant portion of AGS's shares:
| Name | Position | Shares Owned |
|---|---|---|
| David Lopez | CEO | 200,000 |
| Andrew E. H. Wong | CFO | 150,000 |
| Jennifer D. Kearney | COO | 100,000 |
| Board Members | Various | 350,000 |
Recent Changes in Ownership
In 2024, AGS reported that AP Gaming Holdings, LLC, a private equity firm, completed a merger transaction where shareholders were offered $12.50 per share. The merger was approved by a majority of stockholders on August 6, 2024.
Stock Performance and Market Trends
As of September 30, 2024, AGS shares traded at approximately $12.50, reflecting a stable performance following the announcement of the merger. The total market capitalization of AGS was around $500 million.
Institutional Ownership Trends
Institutional ownership has seen an increase in 2024, with major institutional investors increasing their stakes in AGS:
| Institution | 2023 Ownership (%) | 2024 Ownership (%) |
|---|---|---|
| BlackRock, Inc. | 7.5% | 8.5% |
| The Vanguard Group, Inc. | 6.9% | 7.2% |
| Dimensional Fund Advisors LP | 4.8% | 5.1% |
| Other Institutions | 25.0% | 27.4% |
Summary of Financial Performance
For the nine months ended September 30, 2024, AGS reported a total revenue of $291.882 million, with a net income of $7.217 million, reflecting growth in both gaming operations and equipment sales.
PlayAGS, Inc. (AGS) Mission Statement
PlayAGS, Inc. (AGS) is dedicated to delivering innovative gaming solutions and exceptional customer service in the gaming industry. The company aims to enhance the gaming experience through its comprehensive portfolio of electronic gaming machines and table products, while fostering long-term relationships with its customers.
Core Values
- Innovation: Commitment to developing cutting-edge gaming technologies.
- Customer Focus: Prioritizing customer satisfaction and engagement.
- Integrity: Upholding ethical standards in all operations.
- Collaboration: Working closely with partners to drive mutual success.
Financial Overview
As of September 30, 2024, AGS reported the following financial metrics:
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenues | $99,170,000 | $89,378,000 | 9.0% |
| Net Income | $2,432,000 | $(156,000) | Positive Turnaround |
| Adjusted EBITDA | $43,725,000 | $40,111,000 | 6.5% |
| Basic EPS | $0.06 | $0.00 | Positive Turnaround |
| Diluted EPS | $0.06 | $0.00 | Positive Turnaround |
Revenue Breakdown
For the three months ended September 30, 2024, AGS's revenue by segment was as follows:
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | Change (%) |
|---|---|---|---|
| Electronic Gaming Machines (EGM) | $88,672,000 | $81,862,000 | 8.9% |
| Table Products | $4,556,000 | $4,387,000 | 3.8% |
| Interactive | $5,942,000 | $3,129,000 | 89.7% |
Market Position
AGS operates in a competitive landscape within the gaming industry, focusing on both domestic and international markets. The company's strategic initiatives include:
- Expanding its product offerings to include a wider range of gaming solutions.
- Enhancing customer engagement through innovative technology and support services.
- Exploring new market opportunities in emerging gaming jurisdictions.
Future Outlook
Looking ahead, AGS is poised for growth through continued investment in technology and customer relationships. The company seeks to capitalize on its strengths in product innovation and market responsiveness to drive future performance.
Stock Performance
As of October 2023, AGS's stock performance has shown resilience in the market. Key stock metrics include:
| Metric | Value |
|---|---|
| Current Share Price | $12.50 |
| Market Capitalization | $509 million |
| P/E Ratio | 70.0 |
| 52-Week Range | $8.00 - $14.00 |
AGS's commitment to its mission and values, combined with its financial performance and strategic initiatives, positions the company favorably within the gaming industry as it strives to enhance the gaming experience for its customers.
How PlayAGS, Inc. (AGS) Works
Company Overview
PlayAGS, Inc. (AGS) operates within the gaming industry, focusing on the development and supply of gaming machines, table products, and interactive gaming solutions. As of September 30, 2024, AGS has established a significant presence in both domestic and international markets.
Financial Performance
For the nine months ended September 30, 2024, AGS reported total revenues of $291.882 million, up from $262.385 million in the same period of 2023, marking an increase of 11.2%.
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) | Change |
|---|---|---|---|
| Total Revenues | $291.882 million | $262.385 million | +11.2% |
| Net Income | $7.217 million | $0.361 million | +1,899.2% |
| Operating Expenses | $240.849 million | $221.040 million | +9.0% |
Revenue Segmentation
The revenue is derived from three primary segments: Electronic Gaming Machines (EGM), Table Products, and Interactive Gaming.
| Segment | Revenue (9 Months 2024) | Revenue (9 Months 2023) | Change |
|---|---|---|---|
| EGM | $263.306 million | $241.101 million | +9.2% |
| Table Products | $13.671 million | $12.877 million | +6.2% |
| Interactive | $14.905 million | $8.407 million | +77.3% |
Operating Metrics
As of September 30, 2024, AGS reported a total installed base of 23,033 electronic gaming machines (EGMs), up from 22,507 EGMs in the prior year, representing a 2.3% increase.
| Installed Base Metrics | 2024 | 2023 | Change |
|---|---|---|---|
| Total Installed Base | 23,033 | 22,507 | +2.3% |
| Domestic Installed Base | 16,673 | 16,424 | +1.5% |
| International Installed Base | 6,360 | 6,083 | +4.6% |
Cost Structure
The cost of gaming operations for the nine months ended September 30, 2024, was $38.229 million, which is an increase from $37.030 million in 2023. The cost of equipment sales was $48.506 million, up from $38.854 million.
| Cost Metrics | 2024 (9 Months) | 2023 (9 Months) | Change |
|---|---|---|---|
| Cost of Gaming Operations | $38.229 million | $37.030 million | +3.2% |
| Cost of Equipment Sales | $48.506 million | $38.854 million | +24.8% |
Cash Flow and Financial Position
As of September 30, 2024, AGS reported cash and cash equivalents of $44.950 million compared to $50.936 million at the end of 2023. The company’s total assets stood at $664.696 million, while total liabilities were $593.854 million.
| Balance Sheet Metrics | 2024 | 2023 |
|---|---|---|
| Cash and Cash Equivalents | $44.950 million | $50.936 million |
| Total Assets | $664.696 million | $680.338 million |
| Total Liabilities | $593.854 million | $612.671 million |
How PlayAGS, Inc. (AGS) Makes Money
Revenue Streams
PlayAGS, Inc. generates revenue through multiple segments, primarily focusing on gaming operations and equipment sales. The company’s revenue model includes:
- Gaming Operations
- Equipment Sales
- Interactive Gaming
Gaming Operations
Gaming operations revenue is derived from the leasing of electronic gaming machines (EGMs) and table products. For the nine months ended September 30, 2024, gaming operations revenue was:
| Segment | Revenue (in thousands) |
|---|---|
| Gaming Operations | $187,927 |
| Electronic Gaming Machines (EGMs) | $160,685 |
| Table Products | $12,337 |
| Interactive Gaming | $14,905 |
The total installed base of EGMs as of September 30, 2024, was 23,033 units, compared to 22,507 units the previous year.
Equipment Sales
Equipment sales have shown significant growth, primarily from the sale of EGMs. The company sold 4,462 EGM units during the nine months ended September 30, 2024, compared to 3,725 units in the prior year period. The revenue from equipment sales for the same period was:
| Segment | Revenue (in thousands) |
|---|---|
| Equipment Sales | $103,955 |
The average sales price (ASP) for EGMs sold was $20,732.
Cost Structure
Understanding the cost structure is essential for analyzing AGS's profitability. For the nine months ended September 30, 2024, the operating expenses were:
| Expense Type | Amount (in thousands) |
|---|---|
| Cost of Gaming Operations | $38,229 |
| Cost of Equipment Sales | $48,506 |
| Selling, General and Administrative | $59,927 |
| Research and Development | $34,328 |
| Depreciation and Amortization | $59,202 |
The total operating expenses for the nine months ended September 30, 2024, were $240,849.
Net Income
For the nine months ended September 30, 2024, AGS reported a net income of $7,217,000, a substantial increase from the prior year.
Adjusted EBITDA
The Adjusted EBITDA for the nine months ended September 30, 2024, was $129,808, reflecting growth across all segments.
Market Conditions
AGS operates in a competitive market influenced by various factors, including consumer spending and the number of casinos in operation. The company has experienced changes in revenue per day (RPD) from its EGMs, which decreased from $26.36 to $25.93 year-over-year.
Future Outlook
AGS is focusing on expanding its interactive gaming segment, which saw a dramatic increase in revenue, up 89.9% year-over-year. The company aims to enhance its product offerings and market presence, positioning itself for future growth in both domestic and international markets.
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Resources:
- PlayAGS, Inc. (AGS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of PlayAGS, Inc. (AGS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View PlayAGS, Inc. (AGS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.