PART 1: Analysis of the Performance of PlayAGS, Inc.

According to the information provided in the quarterly report of PlayAGS, Inc., the company has experienced a strong performance during the first quarter of 2023. The EGM segment remained the largest contributor to the company's revenue, accounting for 92% of the total revenue for the period. Additionally, the company's Table Products and Interactive segments generated significant revenues through high-margin recurring lease agreements.

The company's leadership team has been focused on expanding its product portfolio to include various niches, which presents growth opportunities for the company. The expansion of EGMs to include products that use historical horse races, along with the addition of table game products, has allowed the company to expand its presence in the market. 

The company's revenue model, which primarily consists of participation agreements or lease agreements has generated a significant amount of recurring revenue. This revenue model has strengthened the company's financial position, and it has allowed the company to utilize its EGM and table game products to capture maximum market share.

Overall, PlayAGS, Inc. has experienced a strong financial performance during the first quarter of 2023, which suggests that the company is on track to achieve its financial goals for the current fiscal year.

PART 2: Forward-Looking Analysis for PlayAGS, Inc.

The casino and gaming industry is a highly competitive market, and PlayAGS, Inc. must remain innovative to stay ahead of its competitors. The company has demonstrated its commitment to innovation by expanding its product range to include proprietary game titles and table game products. This commitment to innovation is crucial for the company to remain competitive in the industry.

According to the CEO of PlayAGS, Inc., David Lopez, the company is continuing to develop its relationship with its customers and is pursuing additional opportunities in existing and new markets. The company will focus on expanding its Interactive segment as it presents a significant opportunity for growth. The company will continue to invest in its digital operations to ensure that it can offer its customers an engaging experience whenever and wherever they choose to play.

Furthermore, the management team has indicated that the gaming machine replacement cycle, which typically takes place every 5-7 years, is expected to increase in frequency due to new regulations and changing consumer behavior. As a result, PlayAGS, Inc. could experience an increase in demand for its EGM and table game products in the coming years.

The company's financial position is expected to remain stable, particularly due to its significant recurring revenue base. The management team is committed to investing in innovation and research, which could lead to further growth in the company's revenue streams.

In conclusion, PlayAGS, Inc. has demonstrated its resilience and innovation in the casino and gaming industry and is well-positioned to achieve long-term growth. The company's focus on expanding its digital operations, along with its commitment to innovation, places it in a strong competitive position amidst a dynamic market.

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Form 10-Q - Quarterly report [Sections 13 or 15(d)]

PlayAGS Inc

PlayAGS Q1 2023 Report: Strong Performance and Innovation Drive Growth Opportunities

PlayAGS, Inc. has reported record-setting first-quarter revenue and adjusted EBITDA, indicating strong growth in the company's equipment and services solutions for the global gaming industry. The company's president and CEO attributed the success to strategic investments in people and products over several years. The company's CFO said they remain focused on optimizing operating and capital deployment efficiency to further de-lever their balance sheet. The company targets a net leverage range of 3.25 times to 3.75 times by the end of 2023, supported by strong first-quarter financial performance and growing demand for its high-performing for-sale products. The capital expenditure in the quarter totaled $13.7 million, primarily for gaming equipment-related investments in EGM and Table Product installed bases, with an anticipated capital expenditure for the year expected to be $65 million to $70 million. Overall, the company's financial outlook appears strong, driven by its customer-centric culture, high-performing products, best-in-class service, and unmatched value proposition to casino partners.

Form 8-K - Current report - Item 2.02 Item 9.01

$AGS reports record-setting revenue and EBITDA for Q1, driven by strategic investments in people and products, with focus on further de-leveraging their balance sheet and strong demand for high-performing products.

Performance Analysis:

PlayAGS, Inc. is a leading supplier of EGMs and other products and services for the gaming industry. The company operates its business in three different segments, EGMs, Table Products, and Interactive. In the year 2022, approximately 72% of the company's total revenue was generated through recurring contracted lease agreements. The COVID-19 pandemic and the related closure of almost all the company's casino customer locations in fiscal year 2020 had a significant impact on the key factors that impact the company's revenues.

The amount of money spent by consumers on the company's domestic revenue share installed base, the amount of daily fees of participation EGMs, and the expansion of existing and new casinos witnessed a slowdown during the closures. The company's revenue from leasing, licensing, and selling products were adversely affected due to such closures. The company had to reduce expenses and capital purchases to adapt to the severity of the pandemic. The company implemented short-term furloughs, company-wide salary reductions, and reduced its workforce by over 10%. As of December 31, 2022, all of the company's customers have reopened; however, some remain under various restrictions.

Forward-looking Analysis:

Looking ahead, the relative competitiveness and popularity of the company's EGMs compared to competitive products offered in the same facilities and general macro-economic factors including levels of and changes to consumer disposable income and personal consumption spending will be the key drivers of revenue. The COVID-19 pandemic may continue to have an impact on the company's financial performance, with the possibility of additional shutdowns or capacity restrictions in the future. 

The company aims to expand its product line-up and grow in markets where it currently has limited or no presence. The company acquired certain intangible assets related to the purchase of table game-related intellectual property and an installed base of table games under the Lucky Lucky trade name from Aces Up Gaming in January 2022. The company's CEO, David Lopez, highlighted that the acquisition is a strategic step towards increasing operational excellence and expanding the company's footprint in the Table Products segment. The company aims to focus on expanding its Interactive segment, which provides growth opportunities, including deploying one or more of our platforms in Canada in 2023, subject to regulatory approval. The company will also continue to focus on cost-saving initiatives and investments in technology and innovation, including the development of new products to meet changing customer demands and preferences. 

In conclusion, PlayAGS, Inc. has been impacted by the COVID-19 pandemic and related closures in the gaming industry. However, with the reopening of all their customers, the company aims to focus on expanding its product line-up and growing in new markets. While the pandemic may continue to have an impact on the company's financial performance, the company's strategic initiatives and investments in technology will help drive growth in the future. Furthermore, the competitive landscape in the gaming industry and general macro-economic factors, including consumer spending, will play a critical role in the company's future financial performance.

Form 10-K - Annual report [Section 13 and 15(d), not S-K Item 405]

EXHIBIT 10.19 - PLAYAGS - DAVID LOPEZ - AR EMPLOYMENT AGREEMENT

EXHIBIT 10.20 - PLAYAGS - KIMO AKIONA AR EMPLOYMENT AGREEMENT

EXHIBIT 10.21 - PLAYAGS - VIC GALLO - TRANSITION AGREEMENT

EXHIBIT 10.22 - PLAYAGS FORM OF AMENDMENT LETTER (MARCH 2023) (LOPEZ)

EXHIBIT 10.23 - PLAYAGS FORM OF AMENDMENT LETTER (MARCH 2023) (AKIONA)

PlayAGS Adjusts to COVID-19 Impact, Aims for Growth in New Markets

Analyst Summary: AGS, a global gaming equipment and service company, reported record fourth quarter results ended December 31, 2022, with Q4 revenue of $89.1 million, an increase of 5% year-over-year. CEO David Lopez attributed the positive financial results to the returns realized on investments made into the company's R&D, sales, and product management teams over the past several years. The company's net leverage inside of 4.0x, which is consistent with the expectations articulated previously. The Company is focusing on maximizing free cash flow and further reducing the amount of leverage on its balance sheet. Looking ahead, the company expects to incur full-year capital expenditures of $65 million to $70 million, inclusive of anticipated capitalized R&D expenditures. The company plans to exit 2023 with net leverage in the range of 3.25 times to 3.75 times. However, forward-looking statements are subject to uncertainty, including the pandemic situation, which could adversely affect the company's business, operating results, and financial condition.

$AGS reports record Q4 results & plans for reduced leverage.

Form SC 13G/A - Statement of acquisition of beneficial ownership by individuals: [Amend]

PlayAGS Q1 2023 Report: Strong Performance and Innovation Drive Growth Opportunities

PlayAGS Q1 2023 Report: Strong Performance and Innovation Drive Growth Opportunities

$AGS reports record-setting revenue and EBITDA for Q1, driven by strategic investments in people and products, with focus on further de-leveraging their balance sheet and strong demand for high-performing products.

$AGS reports record-setting revenue and EBITDA for Q1, driven by strategic investments in people and products, with focus on further de-leveraging their balance sheet and strong demand for high-performing products.

PlayAGS Adjusts to COVID-19 Impact, Aims for Growth in New Markets

PlayAGS Adjusts to COVID-19 Impact, Aims for Growth in New Markets

$AGS reports record Q4 results & plans for reduced leverage.

$AGS reports record Q4 results & plans for reduced leverage.

Announcement: AGS SC 13G/A Statement of acquisition of beneficial ownership by individuals - amendment

Announcement: AGS SC 13G/A Statement of acquisition of beneficial ownership by individuals - amendment

Announcement: AGS SC 13G/A Statement of acquisition of beneficial ownership by individuals - amendment

Announcement: AGS SC 13G/A Statement of acquisition of beneficial ownership by individuals - amendment