As COVID-19 cases spike across the U.S., PlayAGS CEO David Lopez said the gaming equipment manufacturing company is ready to handle another round of casino shutdowns.
Across the U.S., total confirmed coronavirus cases have surpassed 9 million, and new daily infections are rising in nearly every state. New confirmed cases have climbed to an all-time high within the country, with Johns Hopkins University reporting a seven-day average of more than 86,000 per day.
“We don’t necessarily anticipate that global-type shutdown of casinos or … the shutdown of casinos in North America like we did before,” Lopez said. “But should there be, we’ll call it rolling blackout or casinos here and there, those are easier to manage. Should it be anything larger than that, the experiences from the past put us in a good position to know how to move more swiftly through the process.”
Lopez added that AGS has not seen any softening trends so far from an uptick in coronavirus cases.
The Las Vegas-based company reported a net loss of $11 million in the third quarter. Revenue dropped 38 percent to $49.3 million. As of Sept. 30, the company had $113 million in liquidity.
Lopez believes PlayAGS has its strongest pipeline of new product and game themes in its history, which should position its electronic gaming machine segment for growth in upcoming quarters.
“These new game themes, combined with our resilient base of recurring revenue coming back stronger than expected … allowed us to deliver $27 million of adjusted (earnings before interest, taxes, depreciation, and amortization) in the quarter,” Lopez said. “I believe we have the right people, processes and product in place … to emerge a stronger and more nimble company as the world gradually returns to normal.”
PlayAGS shares were up 3 percent Friday, trading at $3.42, on the New York Stock Exchange.
Contact Bailey Schulz at [email protected] Follow @bailey_schulz on Twitter.
Third-quarter revenue and earnings for Las Vegas-based PlayAGS Inc., a gaming equipment and slot machine manufacturer. (NYSE: AGS).
2020: $49.3 million
2019: $79.4 million
2020: ($11.1 million)
2019: ($5.5 million)
Earnings/(Loss) per share