Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 02, 2020 | Jun. 30, 2019 | |
Document Information [Line Items] | |||
Entity Registrant Name | PLAYAGS, INC. | ||
Entity Central Index Key | 0001593548 | ||
Trading Symbol | ags | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | true | ||
Entity Small Business | false | ||
Entity Interactive Data Current | Yes | ||
Entity Common Stock, Shares Outstanding (in shares) | 35,544,601 | ||
Entity Public Float | $ 525,837,748 | ||
Entity Shell Company | false | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Title of 12(b) Security | Common Stock, $0.01 par value |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 13,162 | $ 70,726 |
Restricted cash | 20 | 78 |
Accounts receivable, net of allowance of $723 and $885 respectively | 61,224 | 44,704 |
Inventories | 32,875 | 27,438 |
Prepaid expenses | 2,983 | 3,566 |
Deposits and other | 5,332 | 4,231 |
Total current assets | 115,596 | 150,743 |
Total property and equipment, net | 103,598 | 91,547 |
Goodwill | 287,049 | 277,263 |
Intangible assets | 230,451 | 196,898 |
Deferred tax asset | 4,965 | 2,544 |
Operating lease assets | 11,543 | |
Other assets | 9,176 | 12,347 |
Total assets | 762,378 | 731,342 |
Current liabilities | ||
Accounts payable | 15,598 | 14,821 |
Accrued liabilities | 34,840 | 26,659 |
Current maturities of long-term debt | 6,038 | 5,959 |
Total current liabilities | 56,476 | 47,439 |
Long-term debt | 518,689 | 521,924 |
Deferred tax liability - non-current | 1,836 | 1,443 |
Operating lease liabilities, long-term | 11,284 | |
Other long-term liabilities | 40,309 | 24,732 |
Total liabilities | 628,594 | 595,538 |
Commitments and contingencies (Note 13) | ||
Stockholders' equity | ||
Preferred stock at $0.01 par value; 50,000,000 shares authorized, no shares issued and outstanding | ||
Common stock at $0.01 par value; 450,000,000 shares authorized at December 31, 2019 and December 31, 2018; 35,534,558 and 35,353,296 shares issued and outstanding at December 31, 2019 and 2018, respectively. | 355 | 353 |
Additional paid-in capital | 371,311 | 361,628 |
Accumulated deficit | (235,474) | (222,403) |
Accumulated other comprehensive loss | (2,408) | (3,774) |
Total stockholders’ equity | 133,784 | 135,804 |
Total liabilities and stockholders’ equity | $ 762,378 | $ 731,342 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts receivable, allowance | $ 723 | $ 885 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 450,000,000 | 450,000,000 |
Common stock, shares issued (in shares) | 35,534,558 | 35,353,296 |
Common stock, shares outstanding (in shares) | 35,534,558 | 35,353,296 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Revenues | ||||
Total revenues | $ 304,714 | $ 285,299 | $ 211,955 | |
Operating expenses | ||||
Selling, general and administrative | 61,785 | 63,038 | 44,015 | |
Research and development | 34,338 | 31,745 | 25,715 | |
Write-downs and other charges | 6,912 | 8,753 | 4,485 | |
Depreciation and amortization | 91,474 | 77,535 | 71,649 | |
Total operating expenses | 280,977 | 260,009 | 197,453 | |
Income from operations | 23,737 | 25,290 | 14,502 | |
Other expense (income) | ||||
Interest expense | 36,248 | 37,607 | 55,511 | |
Interest income | (163) | (207) | (108) | |
Loss on extinguishment and modification of debt | 6,625 | 9,032 | ||
Other expense (income) | 4,622 | 10,488 | (2,938) | |
Loss before income taxes | (16,970) | (29,223) | (46,995) | |
Income tax benefit | 5,449 | 8,377 | 1,889 | |
Net loss | (11,521) | (20,846) | (45,106) | |
Less: Net income attributable to non-controlling interests | (231) | |||
Net loss attributable to PlayAGS, Inc. | (11,752) | (20,846) | (45,106) | |
Foreign currency translation adjustment | 1,366 | 29 | 743 | |
Total comprehensive loss | $ (10,386) | $ (20,817) | $ (44,363) | |
Basic and diluted loss per common share: | ||||
Basic (in dollars per share) | $ (0.33) | $ (0.61) | $ (1.94) | |
Diluted (in dollars per share) | $ (0.33) | $ (0.61) | $ (1.94) | |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 35,424 | 34,404 | 23,208 | |
Diluted (in shares) | 35,424 | 34,404 | 23,208 | |
Gaming Operations [Member] | ||||
Revenues | ||||
Total revenues | $ 210,534 | $ 201,809 | $ 170,252 | |
Operating expenses | ||||
Cost of goods and services sold | [1] | 40,955 | 39,268 | 31,742 |
Equipment Sales [Member] | ||||
Revenues | ||||
Total revenues | 94,180 | 83,490 | 41,703 | |
Operating expenses | ||||
Cost of goods and services sold | [1] | $ 45,513 | $ 39,670 | $ 19,847 |
[1] | exclusive of depreciation and amortization |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Noncontrolling Interest [Member] | Total |
Balance (in shares) at Dec. 31, 2016 | 14,931,529 | |||||
Balance at Dec. 31, 2016 | $ 149 | $ 177,276 | $ (156,451) | $ (4,546) | $ 16,428 | |
Net loss | (45,106) | (45,106) | ||||
Foreign currency translation adjustment | 743 | 743 | ||||
Balance (in shares) at Dec. 31, 2017 | 14,931,529 | |||||
Balance at Dec. 31, 2017 | $ 149 | 177,276 | (201,557) | (3,803) | (27,935) | |
Net loss | (20,846) | (20,846) | ||||
Foreign currency translation adjustment | 29 | 29 | ||||
Stock-based compensation expense | 10,933 | 10,933 | ||||
Stock split (1.5543-for-one) (in shares) | 8,276,547 | |||||
Stock split (1.5543-for-one) | $ 83 | (83) | ||||
Reclassification of management shares (in shares) | 170,712 | |||||
Reclassification of management shares | $ 2 | 1,319 | 1,321 | |||
Vesting of restricted stock (in shares) | 112,286 | |||||
Vesting of restricted stock | ||||||
Stock option exercise (in shares) | 74,722 | |||||
Stock option exercise | $ 1 | 773 | 774 | |||
Issuance of common stock (in shares) | 11,787,500 | |||||
Issuance of common stock | $ 118 | 171,410 | $ 171,528 | |||
Balance (in shares) at Dec. 31, 2018 | 35,353,296 | 35,353,296 | ||||
Balance at Dec. 31, 2018 | $ 353 | 361,628 | (222,403) | (3,774) | $ 135,804 | |
Net loss | (11,752) | 231 | (11,521) | |||
Foreign currency translation adjustment | 1,366 | 1,366 | ||||
Stock-based compensation expense | 9,001 | 9,001 | ||||
Vesting of restricted stock (in shares) | 231,543 | |||||
Vesting of restricted stock | $ 2 | (2) | ||||
Stock option exercise (in shares) | 70,288 | 70,288 | ||||
Stock option exercise | $ 1 | 684 | $ 685 | |||
Issuance of common stock (in shares) | ||||||
Issuance of common stock | ||||||
Business acqusitions | 71 | 71 | ||||
Cash distributions to noncontrolling interest owners | (302) | (302) | ||||
Share repurchase (in shares) | (120,569) | |||||
Share repurchase | $ (1) | (1,319) | $ (1,320) | |||
Balance (in shares) at Dec. 31, 2019 | 35,534,558 | 35,534,558 | ||||
Balance at Dec. 31, 2019 | $ 355 | $ 371,311 | $ (235,474) | $ (2,408) | $ 133,784 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parentheticals) | 12 Months Ended |
Dec. 31, 2018 | |
Common Stock [Member] | |
Stock split ratio | 1.5543 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Cash flows from operating activities | ||||
Net loss | $ (11,521) | $ (20,846) | $ (45,106) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||
Depreciation and amortization | 91,474 | 77,535 | 71,649 | |
Accretion of contract rights under development agreements and placement fees | [1] | 6,378 | 4,552 | 4,680 |
Amortization of deferred loan costs and discount | 1,917 | 1,826 | 2,976 | |
Payment-in-kind interest capitalized | 15,935 | |||
Payment-in-kind interest payments | (37,624) | (2,698) | ||
Write-off of deferred loan cost and discount | 3,876 | 3,294 | ||
Stock-based compensation expense | 9,001 | 10,933 | ||
Provision (benefit) for bad debts | 294 | (441) | 651 | |
Loss on disposition of assets | 1,068 | 1,963 | 3,901 | |
Impairment of assets | 5,343 | 6,089 | 584 | |
Fair value adjustment of contingent consideration | 501 | 701 | ||
Deferred income tax | (1,927) | (970) | (7,062) | |
Changes in assets and liabilities related to operations: | ||||
Accounts receivable | (15,033) | (11,488) | (8,348) | |
Inventories | 490 | 4,907 | (1,636) | |
Prepaid expenses | 715 | (895) | (599) | |
Deposits and other | (449) | (748) | (374) | |
Other assets, non-current | 6,565 | 12,204 | (2,290) | |
Accounts payable and accrued liabilities | (6,827) | (6,063) | 8,451 | |
Net cash provided by operating activities | 87,989 | 45,511 | 44,008 | |
Cash flows from investing activities | ||||
Customer notes receivable | (2,382) | |||
Business acquisitions, net of cash acquired | (54,935) | (4,452) | (63,850) | |
Purchase of intangible assets | (6,295) | (1,119) | (1,226) | |
Software development and other expenditures | (14,350) | (10,460) | (7,664) | |
Proceeds from disposition of assets | 450 | 519 | 514 | |
Purchases of property and equipment | (50,420) | (54,602) | (48,585) | |
Net cash used in investing activities | (127,932) | (70,114) | (120,811) | |
Cash flows from financing activities | ||||
Repayment of first lien credit facilities | (5,387) | (5,211) | (2,413) | |
Repayment of senior secured credit facilities | (115,000) | (410,655) | ||
Repayment of seller notes | (12,401) | |||
Payments on equipment long term note payable and capital leases | (1,396) | (2,883) | (2,372) | |
Payment of deferred loan costs | (41) | (3,267) | ||
Payment of financed placement fee obligations | (8,215) | (3,628) | (3,807) | |
Payment of previous acquisition obligation | (1,748) | (128) | ||
Proceeds from stock option exercise | 685 | 774 | ||
Proceeds from issuance of common stock | 176,341 | |||
Proceeds from employees in advance of common stock issuance | 25 | |||
Initial public offering costs | (4,160) | (653) | ||
Repurchase of shares | (1,320) | |||
Distributions to non-controlling interest owners | (302) | |||
Net cash (used in) provided by financing activities | (17,683) | 76,066 | 78,054 | |
Effect of exchange rates on cash, cash equivalents and restricted cash | 4 | (1) | 14 | |
(Decrease) increase in cash, cash equivalents and restricted cash | (57,622) | 51,462 | 1,265 | |
Cash, cash equivalents and restricted cash, beginning of period | 70,804 | 19,342 | 18,077 | |
Cash, cash equivalents and restricted cash, end of period | 13,182 | 70,804 | 19,342 | |
Supplemental cash flow information: | ||||
Cash paid during the period for interest | 33,567 | 35,392 | 35,890 | |
Cash paid during the period for taxes | 1,548 | 1,742 | 1,157 | |
Non-cash investing and financing activities: | ||||
Non-cash consideration given in business acquistion | 500 | 2,600 | ||
Intangible assets obtained under placement fee arrangements | 40,338 | 2,000 | 4,866 | |
Leased assets obtained in exchange for new finance lease liabilities | 1,326 | 1,454 | 368 | |
Leased assets obtained in exchange for new operating lease liabilities | 13,048 | |||
The First Lien Credit Agreement [Member] | ||||
Cash flows from financing activities | ||||
Proceeds from debt | 448,725 | |||
The December Incremental Term Loans [Member] | ||||
Cash flows from financing activities | ||||
Proceeds from debt | $ 29,874 | $ 65,000 | ||
[1] | Non-cash item related to the accretion of contract rights under development agreements and placement fees. |
Note 1 - Description of the Bus
Note 1 - Description of the Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Business Description and Accounting Policies [Text Block] | NOTE 1. PlayAGS, Inc. (the "Company," "PlayAGS," "we," "us," or "our") is a leading designer and supplier of gaming products and services for the gaming industry. We operate in legalized gaming markets across the globe and provide state-of-the-art, value-add products in three Dex S The Company filed a Registration Statement on Form 10 December 19, 2013, 1934, December 19, 2013. January 30, 2018, 10,250,000 $16.00 On February 27, 2018, 1,537,500 Electronic Gaming Machines Our EGM segment offers a selection of video slot titles developed for the global marketplace, and EGM cabinets which include the Alora Orion Portrait, Orion Rise, Orion Upright, ICON, Big Red (“Colossal Diamonds”) Orion Slant Table Products Our Table Products include both internally developed and acquired proprietary table products, side-bets, progressives, and table technology related to blackjack, poker, baccarat, craps and roulette. We have acquired a number of popular proprietary brands, including In Bet Gaming (“In Bet”), Buster Blackjack, Double Draw Poker Criss Cross Poker Dex S second Pax S 2020. Interactive We now offer a platform for business-to-business ( “B2B” third “B2C” Lucky Play Casino Golden Wins, Royal Wheels So Hot. B2B Lucky Play Casino Principles of Consolidation The accompanying consolidated financial statements include the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with GAAP requires the Company to make decisions based upon estimates, assumptions, and factors considered relevant to the circumstances. Such decisions include the selection of applicable accounting principles and the use of judgment in their application, the results of which impact reported amounts and disclosures. Changes in future economic conditions or other business circumstances may Revenue Recognition In May 2014, No. 2014 09, Revenue from Contracts with Customers (Topic 606 August 2015, 2015 14, Revenue from Contracts with Customers (Topic 606 2014 09 December 15, 2017. may January 1, 2018. not not 2017. Revenue Recognition Leasing of equipment in both our EGM and Table Products segments is accounted for under lease accounting guidance in ASC 842, 842 606, The following table disaggregates our revenues by type within each of our segments (amounts in thousands): Year ended December 31, 2019 2018 2017 EGM Gaming operations $ 196,101 $ 187,809 $ 158,335 Equipment sales 93,541 83,216 41,596 Total $ 289,642 $ 271,025 $ 199,931 Table Products Gaming operations $ 9,555 $ 7,377 $ 3,958 Equipment sales 639 274 107 Total $ 10,194 $ 7,651 $ 4,065 Interactive (gaming operations) Social $ 3,319 $ 6,147 $ 7,959 RMG 1,559 476 — Total $ 4,878 $ 6,623 $ 7,959 Gaming Operations Gaming operations revenue is earned by providing customers with gaming machines, gaming machine content licenses, table products, back-office equipment and linked progressive systems, which are collectively referred to as gaming equipment, under participation arrangements. The participation arrangements convey the right to use the equipment (i.e., gaming machines and related integral software) for a stated period of time, which is typically no one three no Under participation arrangements, the Company retains ownership of the gaming equipment installed at the customer facilities and receives either revenue based on a percentage of the win per day generated by the gaming equipment or a fixed daily fee. Thus, in our consolidated financial statements the Company records revenue monthly related to these arrangements and the gaming equipment is recorded in property and equipment, net on our balance sheet and depreciated over the expected life of the gaming equipment. The majority of the Company’s leases require the Company to provide maintenance throughout the entire term of the lease. In some cases, a performance guarantee exists that, if not Gaming operations revenue is also earned from the licensing of table product content and is earned and recognized primarily on a fixed monthly rate. Our B2C B2C B2B Equipment Sales Revenues from contracts with customers are recognized and recorded when the following criteria are met: • We have a contract that has been approved by both the customer and the Company. Our contracts specify the products being sold and payment terms and are recognized when it is probable that we will collect substantially all of the contracted amount; and • Control has been transferred and services have been rendered in accordance with the contract terms. Equipment sales are generated from the sale of gaming machines and table products and licensing rights to the integral game content software that is installed in the related equipment, parts, and other ancillary equipment. Also included within the deliverables are delivery, installation and training, all of which occur within a few days of arriving at the customer location. Gaming sales do not 30 90 12 24 The Company enters into revenue arrangements that may may may Revenue is allocated to the separate performance obligations based on relative standalone selling prices determined at contract inception. Standalone selling prices are primarily determined by prices that we charge for the products when they are sold separately. When a product is not Revenue allocated to undelivered performance obligations is recorded as a contract liability and the balance of our contract liability was not December 31, 2019 2018. Cash and Cash Equivalents Cash and cash equivalents consist primarily of deposits held at major banks and other marketable securities with original maturities of 90 Restricted Cash Restricted cash amounts represent funds held in escrow as collateral for the Company’s surety bonds for various gaming authorities. Receivables, Allowance for Doubtful Accounts Accounts receivable are stated at face value less an allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts related to accounts receivable and notes receivable, which are non-interest bearing, deemed to have a high risk of collectability. The Company reviews the accounts receivable and notes receivable on a monthly basis to determine if any receivables will potentially be uncollectible. The Company analyzes historical collection trends and changes in the customers’ payment patterns, customer concentration, and credit worthiness when evaluating the adequacy of the allowance for doubtful accounts. The Company includes any receivable balances that are determined to be uncollectible in the overall allowance for doubtful accounts. Changes in the assumptions or estimates reflecting the collectability of certain accounts could materially affect the allowance for both accounts and notes receivable. The following provides financial information concerning the change in our allowance for doubtful accounts (in thousands): Allowance for Accounts Receivable, Year ended December 31, 2019 Beginning Balance Charge-offs Provision (Benefit) Ending Balance Allowance for doubtful accounts $ 885 $ (456 ) $ 294 $ 723 Allowance for Accounts Receivable, Year ended December 31, 2018 Beginning Balance Charge-offs Provision Ending Balance Allowance for doubtful accounts $ 1,462 $ (136 ) $ (441 ) $ 885 Allowance for Accounts Receivable, Year ended December 31, 2017 Beginning Balance Charge-offs Provision Ending Balance Allowance for doubtful accounts $ 1,972 $ (1,161 ) $ 651 $ 1,462 Inventories Inventories consist primarily of parts and supplies that are used to repair and maintain machinery and equipment as well as EGMs in production and finished goods held for sale. Inventories are stated at net realizable value. Cost of inventories is determined using the first first December 31, 2019 December 31, 2018, $29.1 $22.3 December 31, 2019 December 31, 2018, $3.8 $5.1 no December 31, 2019 December 31, 2018. Property and Equipment The cost of gaming equipment, consisting of fixed-base player terminals, file servers and other support equipment as well as other property and equipment, is depreciated over their estimated useful lives, using the straight-line method for financial reporting. The Company capitalizes costs incurred for the refurbishment of used gaming equipment that is typically incurred to refurbish a machine in order to return it to its customer location. The refurbishments extend the life of the gaming equipment beyond the original useful life. Repairs and maintenance costs are expensed as incurred. The Company routinely evaluates the estimated lives used to depreciate assets. The estimated useful lives are as follows: Gaming equipment (in years) 2 6 Other property and equipment (in years) 3 6 Financed leased cars and leasehold improvements are amortized / depreciated over the life of the contract. The Company reviews its property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not not When the estimated undiscounted cash flows are not The Company measures recoverability of assets to be held and used by comparing the carrying amount of an asset to future cash flows expected to be generated by the asset. The Company’s policy is to impair, when necessary, excess or obsolete gaming machines on hand that it does not Intangible Assets The Company reviews its identifiable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not not When the estimated undiscounted cash flows are not Certain trade names have an indefinite useful life and the Company tests these trade names for possible impairment at least annually, on October 1, may not not Costs of Capitalized Computer Software Internally developed gaming software represents the Company’s internal costs to develop gaming titles to utilize on the Company’s gaming machines. Internally developed gaming software is stated at cost and amortized over the estimated useful lives of the software, using the straight-line method. Software development costs are capitalized once technological feasibility has been established and are amortized when the software is placed into service. The gaming software we develop reaches technological feasibility when a working model of the gaming software is available. Any subsequent software maintenance costs, such as bug fixes and subsequent testing, are expensed as incurred. Discontinued software development costs are expensed when the determination to discontinue is made. Software development costs are amortized over the expected life of the title or group of titles, if applicable, to amortization expense. On a quarterly basis, or more frequently if circumstances warrant, the Company compares the net book value of its internally developed gaming software to the net realizable value on a title or group of title basis. The net realizable value is determined based upon certain assumptions, including the expected future revenues and net cash flows of the gaming titles or group of gaming titles utilizing that software, if applicable. Goodwill The excess of the purchase price of an acquired business over the estimated fair value of the assets acquired and the liabilities assumed is recorded as goodwill. The Company tests for possible impairment of goodwill at least annually, on October 1, not 0”, not may not not may second 2019, $3.5 4. fourth 2018, $4.8 4. Acquisition Accounting The Company applies the provisions of ASC 805, Business Combinations” 805 may one may Fair Value of Financial Instruments The Company applies the provisions of ASC 820, Fair Value Measurements 820 • Level 1 • Level 2 • Level 3 The carrying values of the Company’s cash and cash equivalents, restricted cash, receivables and accounts payable approximate fair value because of the short term maturities of these instruments. The fair value of our long-term debt is based on the quoted market prices for similar instruments (Level 2 $534.6 $528.1 December 31, 2019 2018, Accounting for Income Taxes We conduct business globally and are subject to income taxes in U.S. federal, state, local, and foreign jurisdictions. Determination of the appropriate amount and classification of income taxes depends on several factors, including estimates of the timing and probability of realization of deferred income taxes, reserves for uncertain income tax positions and income tax payment timing. We account for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. Taxes on income of our foreign subsidiaries are provided at the tax rates applicable to the tax jurisdictions in which they are located. Future tax benefits are recognized to the extent that realization of those benefits is considered more likely than not not The recoverability of certain deferred tax assets is based in part on estimates of future income and the timing of temporary differences, and the failure to fully realize such deferred tax assets could result in a higher tax provision in future periods. We apply the accounting guidance to our uncertain tax positions and under the guidance, we may not 50% We are required to make significant judgments when evaluating our uncertain tax positions and the related tax benefits. We believe our assumptions are reasonable; however, there is no not may Contingencies The Company assesses its exposures to loss contingencies including claims and legal proceedings and accrues a liability if a potential loss is considered probable and the amount can be estimated. Significant judgment is required in both the determination of probability and the determination as to whether an exposure is reasonably estimable. Because of uncertainties related to these matters, if the actual loss from a contingency differs from management’s estimate, there could be a material impact on the results of operations or financial position. Operating expenses, including legal fees, associated with contingencies are expensed when incurred. Concentrations of Credit Risk Financial instruments, which potentially subject the Company to concentration of credit risk, consist primarily of cash and cash equivalents and accounts receivable, net. Cash equivalents are investment-grade, short-term debt instruments consisting of treasury bills which are maintained with high credit quality financial institutions under repurchase agreements. Cash and cash equivalents are in excess of Federal Deposit Insurance Corporation (“FDIC”) insurance limits. As of December 31, 2019 2018, not Revenue from gaming operations is concentrated in the Class II gaming and casino industry, primarily located in Oklahoma and Alabama. For the years ended December 31, 2019, 2018 2017, 9%, 11%, 11% one 8%, 9% 11% December 31, 2019, 2018 2017, December 31, 2019, 2018 2017 9%, 9% 11% As of December 31, 2019, one 11% December 31, 2018, no 10% Foreign Currency Translation The financial statements of the Company’s foreign subsidiaries are translated into U.S. dollars at the period end rate of exchange for asset and liability accounts and the weighted average rate of exchange for income statement accounts. The effects of these translations are recorded as a component of accumulated other comprehensive (loss) income in stockholders’ equity. Advertising Costs Advertising costs are expensed as incurred. Advertising costs for the year ended December 31, 2019, 2018 2017 $0.6 $0.6 $0.7 Research and Development Research and development costs related primarily to software product development costs and is expensed as incurred until technological feasibility has been established. Employee related costs associated with product development are included in research and development. Recently Issued Accounting Pronouncements Adopted in the Current Year In February 2016, 2016 02, Leases (Topic 842 2016 02 2016 02 December 15, 2018, July 2018, 2018 11, Leases (Topic 842 Targeted Improvements 2018 11 January 1, 2019. 840 840 840. no January 1, 2019. not January 1, 2019 15. not no On December 18, 2019, 2019 12, Income Taxes (Topic 740 740, not 2021 2022 not no To be Adopted in Future Periods In June 2016, No. 2016 13, Financial Instruments—Credit Losses (Topic 326 November 2018 No. 2018 19, Codification Improvements to Topic 326, not 326 20, 842. May 2019, No. 2019 05, Financial Instruments—Credit Losses (Topic 326 326. December 15, 2019, first not In August 2018, No. 2018 15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350 40 December 15, 2019, not We do not |
Note 2 - Acquisitions
Note 2 - Acquisitions | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | NOTE 2. In Bet Gaming II During the quarter ended September 30, 2019, $4.0 $1.2 $2.8 9.3 Integrity On February 8, 2019, 2,500 33 The total purchase price consideration for Integrity was as follows: February 8, 2019 (in 000s) Total purchase price for Integrity common stock (35,223,928 shares at CAD $0.46 per share) $ 12,335 Payments to holders of Integrity stock options and restricted share units 441 Repayments of Integrity debt and other obligations 39,806 Total purchase price consideration $ 52,582 The acquisition was accounted for as an acquisition of a business and the assets acquired and liabilities assumed were measured based on our estimates of their fair values at the acquisition date. The acquisition of Integrity was accounted for using the acquisition method of accounting, which requires, among other things, the assets acquired and liabilities assumed be recognized at their respective fair values as of the acquisition date. The property, plant and equipment which fair value was determined based on the cost and market approach (level 2 10 3 The allocation of the purchase price to the fair values of the assets acquired and the liabilities assumed was as follows (in thousands): February 8, 2019 (in 000s) Assets Current assets Cash and cash equivalents $ 1,646 Accounts receivable 1,584 Inventories 159 Deposits and other 26 Prepaid expenses 141 Total Current Assets 3,556 Property and Equipment 12,708 Intangible Assets 30,600 Goodwill 11,380 Total Assets $ 58,244 Liabilities and Equity Current liabilities Accounts payable $ 1,366 Accrued liabilities 2,087 Current portion of long-term debt 151 Total current liabilities 3,604 Other long-term liabilities 1,787 Long-term debt 200 Total liabilities 1,987 Minority Interest 71 Net assets acquired $ 52,582 We recognized $0.6 $1.4 3 The following unaudited pro forma statements of operations give effect to the Integrity acquisition as if it had been completed on January 1, 2018. not January 1, 2018. not not not 1 2 Year Ended December 31, 2019 Year Ended December 31, 2018 Total revenues $ 306,452 $ 303,293 Net loss attributable to PlayAGS, Inc. $ (11,813 ) $ (20,381 ) AGS iGaming During the quarter ended June 30, 2018, We attributed the goodwill recognized to our ability to utilize AGS iGaming’s existing RMG platform to distribute our existing EGM game content into many markets, diversification of our Interactive segment’s product portfolio that now includes a real-money gaming solution and other strategic benefits. The total consideration for this acquisition was $5.0 $4.5 $0.5 18 not $3.7 $2.1 6.7 4 The intangible assets consisted primarily of customer relationships and a technology platform. The customer relationships were valued using the cost approaches (level 3 3 It is not Rocket Gaming Systems On December 6, 2017, 1,500 $56.9 Gold Series ® $1 We have recorded the Rocket assets acquired and liabilities assumed based on our estimates of their fair values at the acquisition date. The determination of the fair values of the assets acquired and liabilities assumed (and the related determination of estimated lives of depreciable and amortizable tangible and identifiable intangible assets) requires significant judgment and estimates. The estimates and assumptions used include the projected timing and amount of future cash flows and discount rates that reflect risk inherent in the future cash flows. The allocation of the purchase price to the fair values of the assets acquired and the liabilities assumed was as follows (in thousands): Inventories $ 354 Property and equipment 3,307 Goodwill 23,217 Intangible assets 30,290 Total Assets $ 57,168 Other long-term liabilities 318 Total purchase price $ 56,850 The total consideration exceeded the aggregate fair value of the acquired assets and assumed liabilities at the acquisition date and has been recorded as goodwill. We attribute this goodwill to our opportunities for synergies through our ability to leverage our existing service network to service the acquired assets, the opportunity to derive incremental revenue through upgrading the EGMs with the Company’s existing game content and platforms and other strategic benefits. The goodwill associated with the acquisition is deductible for income tax purposes. The fair values of identifiable intangible assets include $22.5 $6.9 $0.9 6.4 The fair value of property and equipment assets as well as the fair value of gaming content software was primarily determined using cost approaches in which we determined an estimated reproduction or replacement cost, as applicable. The fair value of customer relationships was determined using the excess earnings method, which is a risk-adjusted discounted cash flow approach that determines the value of an intangible asset as the present value of the cash flows attributable to such asset after excluding the proportion of the cash flows that are attributable to other assets. The contribution to the cash flows that are made by other assets - such as fixed assets, working capital, workforce and other intangible assets - was through contributory asset capital charges. The value of the acquired customer relationship asset is the present value of the attributed post-tax cash flows, net of the post-tax return on fair value attributed to the other assets. The fair values of acquired trade names and gaming technology platforms were primarily determined using the royalty savings method, which is a risk-adjusted discounted cash flow approach. The royalty savings method values an intangible asset by estimating the royalties saved through ownership of the asset. The royalty savings method requires identifying the future revenue that would be impacted by the trade name or intellectual property (or royalty-free rights to the assets), multiplying it by a royalty rate deemed to be avoided through ownership of the asset and discounting the projected royalty savings amounts back to the acquisition date. The royalty rate used in such valuation was based on a consideration of market rates for similar categories of assets. The revenue and net loss of Rocket from the acquisition date through December 31, 2017, not December 2017. From December 6, 2017 through December 31, 2017 (in 000s) Revenue $ 1,139 Net income $ 203 It is not not not In Bet Gaming During the quarter ended September 30, 2017, $9.6 $2.6 The consideration was allocated primarily to tax deductible goodwill for $3.2 $5.5 9 The contingent consideration was valued using scenario-based methods (the Company used level 3 The intangible assets consist of a primary asset that includes the intellectual property acquired, which asset represents the majority of the intangible asset value. This intellectual property was valued using the excess earnings method (the Company used level 3 |
Note 3 - Property and Equipment
Note 3 - Property and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE 3. Property and equipment, net consist of the following (in thousands): December 31, 2019 December 31, 2018 Gaming equipment $ 175,837 $ 141,530 Other property and equipment 23,210 23,304 Less: Accumulated depreciation (95,449 ) (73,287 ) Total property and equipment, net $ 103,598 $ 91,547 Gaming equipment and other property and equipment are depreciated over the respective useful lives of the assets ranging from two six $45.1 $32.4 $27.2 December 31, 2019, 2018 2017, |
Note 4 - Goodwill and Intangibl
Note 4 - Goodwill and Intangibles | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE 4. Changes in the carrying amount of goodwill are as follows (in thousands): Gross Carrying Amount EGM Table Products Interactive(1) Total Balance at December 31, 2017 $ 266,868 $ 6,641 $ 4,828 $ 278,337 Foreign currency adjustments 11 — (182 ) (171 ) Purchase accounting adjustment 200 — — 200 Acquisition — — 3,725 3,725 Impairment — — (4,828 ) (4,828 ) Balance at December 31, 2018 $ 267,079 $ 6,641 $ 3,543 $ 277,263 Foreign currency adjustments 769 — (10 ) 759 Acquisition 11,380 1,180 — 12,560 Impairment — — (3,533 ) (3,533 ) Balance at December 31, 2019 $ 279,228 $ 7,821 $ - $ 287,049 ( 1 December 31, 2019 $8.4 The Company performed a quantitative assessment, or "Step 1" October 1, 2019 10% 14% 3% During the second 2019, 2018. As a result of this triggering event, we performed a quantitative impairment analysis of the associated goodwill and determined that the entire balance of $3.5 3.0% 25% In 2018, $4.8 1” 2018, 1 fourth December 31, 2018, B2C B2B 3.0% 19% Intangible assets consist of the following (in thousands): December 31, 2019 December 31, 2018 Useful Life (years) Gross Value Accumulated Amortization Net Carrying Value Gross Value Accumulated Amortization Net Carrying Value Indefinite-lived trade names Indefinite $ 12,126 $ — $ 12,126 $ 12,126 $ — $ 12,126 Trade and brand names 5 7 14,870 (13,209 ) 1,661 14,730 (10,681 ) 4,049 Customer relationships 5 12 219,788 (120,384 ) 99,404 188,772 (93,358 ) 95,414 Contract rights under development and placement fees 1 7 48,180 (8,888 ) 39,292 19,620 (14,367 ) 5,253 Gaming software and technology platforms 1 7 162,391 (96,193 ) 66,198 151,055 (82,371 ) 68,684 Intellectual property 10 12 19,345 (7,575 ) 11,770 17,205 (5,830 ) 11,375 $ 476,700 $ (246,249 ) 230,451 $ 403,508 $ (206,607 ) $ 196,898 Intangible assets are amortized over their respective estimated useful lives ranging from one twelve $46.4 $45.1 $44.4 December 31, 2019, 2018 2017, Management reviews intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not $0.5 December 31, 2019. December 31, 2018, $1.3 In 2019, may not 25% 3% $0.6 $0.7 $0.4 3 25%. 5% The Company enters into development agreements and placement fee agreements with certain customers to secure floor space under lease agreements for its gaming machines. Amounts paid in connection with the development agreements are repaid to the Company in accordance with the terms of the agreement, whereas placements fees are not not $6.4 $4.6 $4.7 December 31, 2019, 2018 2017, In March 2019, $33.1 $2.1 $40.1 83 The estimated amortization expense of definite-lived intangible assets as well as the accretion of contract rights under development and placement fees, for each of the next five For the year ended December 31, Amortization Expense Placement Fee Accretion 2020 $ 41,191 $ 8,451 2021 29,625 6,596 2022 26,769 6,277 2023 23,277 5,913 2024 21,972 5,389 Thereafter 36,199 6,666 Total $ 179,033 $ 39,292 |
Note 5 - Accrued Liabilities
Note 5 - Accrued Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | NOTE 5. Accrued liabilities consist of the following (in thousands): December 31, 2019 2018 Salary and payroll tax accrual $ 8,691 $ 13,393 Taxes payable 4,151 3,437 Current portion of operating lease liability 2,175 — License fee obligation 1,000 1,000 Placement fees payable 8,346 2,490 Accrued other 10,477 6,339 Total accrued liabilities $ 34,840 $ 26,659 |
Note 6 - Long-term Debt
Note 6 - Long-term Debt | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Long-term Debt [Text Block] | NOTE 6. Long-term debt consists of the following (in thousands): December 31, 2019 2018 First Lien Credit Facilities: Term loans, interest at LIBOR or base rate plus 3.5% (5.2% at December 31, 2019), net of unamortized discount and deferred loan costs of $9.0 million and $10.9 million at December 31, 2019 and 2018, respectively. $ 522,989 $ 526,461 Equipment long-term note payable and finance leases 1,737 1,422 Total debt 524,727 527,883 Less: Current portion (6,038 ) (5,959 ) Long-term debt $ 518,689 $ 521,924 First Lien Credit Facilities On June 6, 2017 ( first $450.0 $30.0 On December 6, 2017, $65.0 “December December An additional $1.0 December $0.9 third On February 8, 2018, $513 550 425 100 On February 8, 2018, third $1.2 $0.4 On October 5, 2018, No. 2 No. 2” No. 2 June 6, 2017, December 6, 2017 February 8, 2018 ( 0.75% 0.25% B1 $30 On October 5, 2018, third $1.5 On August 30, 2019, No. 3 As of December 31, 2019, Equipment Long Term Note Payable and Finance Leases The Company has entered into a financing agreement to purchase certain gaming devices, systems and related equipment and has entered into leases for vehicles that are accounted for as finance leases, as described in Item 15. 6 Scheduled Maturities of Long-Term Debt Aggregate contractual future principal payments (excluding the effects of repayments for excess cash flow) of long-term debt for the years following December 31, 2019, For the year ending December 31, 2020 $ 6,038 2021 6,005 2022 5,768 2023 5,470 2024 510,446 Thereafter — Total scheduled maturities 533,727 Unamortized debt discount and debt issuance costs (9,000 ) Total debt $ 524,727 |
Note 7 - Stockholders' Equity
Note 7 - Stockholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 7. Common Stock Prior to the completion of the IPO, the Company’s common stock consisted of two 1.5543 1 1.5543 On January 30, 2018, 10,250,000 $16.00 February 27, 2018, 1,537,500 $171.5 Prior to the consummation of the IPO, 170,712 April 28, 2014 ( not $1.3 As further clarification of the foregoing, prior to the IPO, shares were held by management that were subject to repurchase rights as outlined in Section 6 During 2019, $50.0 August 11, 2021. |
Note 8 - Write-downs and Other
Note 8 - Write-downs and Other Charges | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Asset Impairment Charges [Text Block] | NOTE 8. The Consolidated Statements of Operations and Comprehensive Loss include various transactions, such as loss on disposal or impairment of long-lived assets and fair value adjustments to contingent consideration that have been classified as write-downs and other charges. During the year ended December 31, 2019, $6.9 $3.5 $1.3 4. $1.1 $0.5 3 $0.5 3 During the year ended December 31, 2018, $8.8 $2.0 $4.8 3 $1.3 3 $0.7 3 During the year ended December 31, 2017, $4.5 $3.2 $0.7 $0.6 3 $0.5 $0.5 3 March 31, 2017. Due to the changing nature of our write-downs and other charges, we describe the composition of the balances as opposed to providing a year over year comparison. |
Note 9 - Basic and Diluted Loss
Note 9 - Basic and Diluted Loss Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | NOTE 9. The Company computes net (loss) income per share in accordance with accounting guidance that requires presentation of both basic and diluted earnings per share (“EPS”) on the face of the Consolidated Statement of Operations and Comprehensive (Loss) Income. Basic EPS is computed by dividing net (loss) income for the period by the weighted average number of shares outstanding during the period. Basic EPS includes common stock weighted for average number of shares issued during the period. Diluted EPS is computed by dividing net (loss) income for the period by the weighted average number of common shares outstanding during the period, increased by potentially dilutive common shares that were outstanding during the period. Diluted EPS excludes all potential dilutive shares if their effect is anti-dilutive. Potentially dilutive common shares include stock options and restricted stock (see Note 11 There were no December 31, 2019, 2018 2017. Excluded from the calculation of diluted EPS for the years ended December 31, 2019, 2018 2017, 616,751, 125,249 77,715 December 31, 2019, 2018 2017 629,866, 849,660 405,774 |
Note 10 - Benefit Plans
Note 10 - Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Compensation and Employee Benefit Plans [Text Block] | NOTE 10. The Company has established a 401 “401 401 may 401 December 31, 2019, 2018 2017 $1.4 $1.2 $1.0 401 On April 28, 2014, 2014 ten may 2,253,735 1.5543 1 January 30, 2018 December 31, 2019, 423,268 On January 16, 2018, 2018 may 1,607,389 December 31, 2019, 518,771 |
Note 11 - Stock-based Compensat
Note 11 - Stock-based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | NOTE 11. All share information is presented after giving effect to the 1.5543 1 January 30, 2018 Stock Options The Company has granted stock awards to eligible participants under its incentive plans. The stock awards include options to purchase the Company’s common stock. These stock options include a combination of service and market conditions, as further described below. Prior to the Company’s IPO, these stock options included a performance vesting condition, a Qualified Public Offering (see Note 7 not no 2018. For the year ended December 31, 2019, $0.9 $8.1 $0.8 $11.9 December 31, 2019 1.9 2.8 For the year ended December 31, 2018, $8.5 $2.4 The Company calculated the grant date fair value of stock options that vest over a service period using the Black Scholes model. For stock options that contain a market condition related to the return on investment that the Company’s stockholders achieve, the options were valued using a lattice-based option valuation model. The assumptions used in these calculations are noted in the following table. Expected volatilities are based on implied volatilities from comparable companies. The expected time to liquidity is based on management’s estimate. The risk-free rate is based on the U.S. Treasury yield curve for a term equivalent to the estimated time to liquidity. There were no 2019. Year Ended December 31, 2019 2018 2017 Option valuation assumptions: Expected dividend yield N/A —% —% Expected volatility N/A 50% 66% Risk-free interest rate N/A 2.71% 1.80% Expected term (in years) N/A 6.3 6.2 Stock option awards represent options to purchase common stock and are granted pursuant to the Company’s incentive plans, and include options that the Company primarily classifies as Tranche A or time based, Tranche B and Tranche C. Tranche A or time based options are eligible to vest in equal installments of 25% 20% first four five not All other option awards are eligible to vest upon the satisfaction of certain performance conditions (collectively, “Performance Options”). On January 16, 2018, 20%, 2.5 2014 first 60 $19.11 60 not 181st 25% 3.0 first 60 $22.93 60 not 181st first $2.9 As of December 31, 2019, 629,866 A summary of the changes in stock options outstanding during the year ended December 31, 2019, Number of Options Weighted Average Exercise Price Weighted Average Remaining Contract Term (years) Aggregate Intrinsic Value (in thousands) Options outstanding as of December 31, 2018 1,515,461 $ 9.11 6.57 $ 22,125 Granted — $ — Exercised (70,288 ) $ 9.74 Canceled or forfeited (62,187 ) $ 8.65 Options outstanding as of December 31, 2019 1,382,986 $ 9.10 5.45 $ 4,793 Exercisable as of December 31, 2019 1,192,671 $ 8.46 5.19 $ 4,527 The following is provided for stock options granted: Year Ended December 31, 2019 2018 2017 Weighted average grant date fair value N/A $ 12.63 $ 5.31 Restricted Stock Restricted stock awards are typically eligible to vest in equal installments of 25% first four 12 first 60 $29.60. A summary of the changes in restricted stock shares outstanding during the year ended December 31, 2019 Shares Outstanding Grant Date Fair Value (per share) Outstanding as of December 31, 2018 287,479 $ 29.26 Granted 709,205 $ 19.37 Vested (231,543 ) $ 17.19 Canceled or forfeited (52,645 ) $ 24.78 Outstanding as of December 31, 2019 712,496 $ 23.66 |
Note 12 - Income Taxes
Note 12 - Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | NOTE 12. The components of loss before provision for income taxes are as follows (in thousands): Year ended December 31, 2019 2018 2017 Domestic $ 1,129 $ (13,814 ) $ (42,185 ) Foreign (18,099 ) (15,409 ) (4,810 ) Loss before provision for income taxes $ (16,970 ) $ (29,223 ) $ (46,995 ) The income tax (benefit) expense is as follows (in thousands): Year ended December 31, 2019 2018 2017 Current: Federal $ (2,726 ) $ (773 ) $ (250 ) State 286 227 47 Foreign (1,084 ) (6,830 ) 5,365 Total current income tax (benefit) expense (3,524 ) (7,376 ) 5,162 Deferred: Federal 343 379 (5,497 ) State 49 48 (372 ) Foreign (2,317 ) (1,428 ) (1,182 ) Total deferred income (benefit) expense (1,925 ) (1,001 ) (7,051 ) Income tax (benefit) expense $ (5,449 ) $ (8,377 ) $ (1,889 ) The reconciliation of income tax at the federal statutory rate to the actual effective income tax rate (benefit) is as follows: Year ended December 31, 2019 2018 2017 Federal statutory rate (21.0 )% (21.0 )% (35.0 )% Foreign rate differential (2.9 )% (3.0 )% 1.5 % Losses of foreign subsidiaries disregarded for US income tax — % (1.3 )% (2.5 )% State income taxes, net of federal benefit 2.9 % (0.8 )% (3.0 )% Nondeductible loan costs — % 0.5 % 1.4 % Nondeductible transaction costs 0.7 % 1.1 % — % Impact of tax liquidation — % 10.4 % — % Tax indemnification charges 7.9 % 9.5 % (1.3 )% Stock Compensation 1.0 % (1.4 )% — % Other differences 4.1 % 2.7 % (2.7 )% Withholding tax 3.3 % 1.7 % 2.5 % Tax credits (2.4 )% (12.0 )% (2.1 )% Uncertain tax positions (26.0 )% (38.0 )% 7.3 % Valuation allowance 0.3 % 22.9 % 47.2 % Rate change - impact of the Tax Act — % — % 19.9 % Repatriation tax - impact of the Tax Act — % (1.0 )% 4.1 % Tax credits - impact of the Tax Act — % 0.6 % (6.0 )% Valuation allowance - impact of the Tax Act — % 0.4 % (35.3 )% Effective tax rate (32.1 )% (28.7 )% (4.0 )% The components of the net deferred tax assets (liability) consist of the following (in thousands): December 31, 2019 2018 Deferred tax assets: Accrued expenses $ 2,411 $ 3,042 Stock Compensation 3,129 2,164 Foreign tax credits 12,189 13,571 Net operating loss carryforwards 46,872 43,637 Research and development credits 6,313 4,530 Other 6,391 4,492 Total deferred tax assets 77,305 71,436 Valuation allowance (41,004 ) (40,857 ) Deferred tax assets, net of valuation allowance $ 36,301 $ 30,579 Deferred tax liabilities: Prepaid expenses and other $ (582 ) $ (511 ) Intangible assets (19,719 ) (19,552 ) Property and equipment, net (12,871 ) (9,415 ) Deferred tax liabilities (33,172 ) (29,478 ) Net deferred tax assets (liabilities) $ 3,129 $ 1,101 Management assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of the existing deferred tax assets. A significant piece of objective negative evidence evaluated was the cumulative loss incurred over the three December 31, 2019 December 31, 2019, $41.0 not no As of December 31, 2019, $12.2 2020 2029. $6.3 2028. not The Company has net operating loss (“NOL”) carryforwards for U.S. federal purposes of $200.0 $10.8 $83.5 2031, 2020. not Utilization of the net operating loss carryforwards and credits may 1986, may The Company has uncertain tax positions with respect to prior tax filings. The uncertain tax positions, if asserted by taxing authorities, would result in utilization of the Company’s tax credit and operating loss carryovers. The credit and operating loss carryovers presented as deferred tax assets are reflected net of these unrecognized tax benefits. The Company had the following activity for unrecognized tax benefits in 2019 2018 December 31, 2019 December 31, 2018 Balance-beginning of year $ 12,580 $ 28,673 Acquisitions 1,244 — Increases based on tax positions of the current year 453 393 Decrease due to tax authority settlements — (10,457 ) Decreases due to lapse of statute (3,225 ) (5,118 ) Increases based on tax positions of the prior years 95 156 Decreases based on tax positions of the prior years (670 ) (1,065 ) Currency translation adjustments 477 (2 ) Balance-end of year $ 10,954 $ 12,580 The Company applies a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The Company recognizes the impact of a tax position in the financial statements when the position is more likely than not The total amount of unrecognized tax benefits as of December 31, 2019 $11.0 $6.6 $3.0 December 31, 2020, The Company accrues interest and penalties for unrecognized tax benefits in income tax expense. Related to the unrecognized tax benefits noted above, the Company reduced penalties and interest by $1.5 2019. December 31, 2019, $5.3 The Company is subject to taxation and potential examination in the United States and various state and foreign jurisdictions. We are subject to examinations in the United States for the 2017 2019 2014 2019 not The Company entered into an indemnification agreement with the prior owners of Cadillac Jack whereby the prior owners have agreed to indemnify the Company for changes in tax positions by taxing authorities for periods prior to the acquisition. An indemnification receivable of $4.2 $9.3 December 2019 2018, On December 22, 2017, 35.0% 21.0% $8.1 fourth 2017. $9.4 21.0%, $1.9 one $2.8 $16.6 118 one fourth 2018, one $0.3 $0.2 $0.1 |
Note 13 - Commitments and Conti
Note 13 - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 13. The Company is subject to federal, state and Native American laws and regulations that affect both its general commercial relationships with its customers, as well as the products and services provided to them. Periodically, the Company reviews the status of each significant matter and assesses the potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount can be estimated, the Company accrues a liability for the estimated loss. If a potential loss from any claim or legal proceeding is considered reasonably possible, the Company discloses an estimate of the possible loss or range of possible loss, or a statement that such an estimate cannot be made. During the third 2019, $1.6 may |
Note 14 - Operating Segments
Note 14 - Operating Segments | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | NOTE 14. We report our business segment results by segment in accordance with the “management approach.” The management approach designates the internal reporting used by our chief operating decision maker (“CODM”), who is our Chief Executive Officer (the “CEO”), for making decisions and assessing performance of our reportable segments. See Note 1 three Segment revenues include leasing, licensing, or selling of products within each reportable segment. Segment adjusted EBITDA includes the revenues and operating expenses from each segment adjusted for depreciation, amortization, write-downs and other charges, accretion of placement fees, non-cash stock based compensation expense, as well as other costs such as certain acquisitions and integration related costs including restructuring and severance charges; initial public offering and secondary offerings costs, legal and litigation expenses including settlement payments; new jurisdictions and regulatory licensing costs; non-cash charges on capitalized installation and delivery; contract cancellation fees; and other adjustments primarily composed of professional fees incurred by the Company for projects, corporate and public filing compliance and other costs deemed to be non-recurring in nature. Revenues in each segment are attributable to third Segment adjusted EBITDA excludes other income and expense, income taxes and certain expenses that are managed outside of the operating segments. The following provides financial information concerning our reportable segments for the years ended December 31: 2019 2018 2017 Revenues by segment EGM $ 289,642 $ 271,025 $ 199,931 Table Products 10,194 7,651 4,065 Interactive 4,878 6,623 7,959 Total Revenues 304,714 285,299 211,955 Adjusted EBITDA by segment EGM 144,718 137,371 107,785 Table Products 3,699 942 (528 ) Interactive (2,355 ) (2,107 ) (416 ) Subtotal 146,062 136,206 106,841 Write-downs and other: Loss on disposal of long lived assets 1,068 1,963 3,901 Impairment of long lived assets 5,343 6,089 1,214 Fair value adjustments to contingent consideration and other items 501 701 (630 ) Depreciation and amortization 91,474 77,535 71,649 Accretion of placement fees(1) 6,378 4,552 4,680 Non-cash stock compensation 9,001 10,933 — Acquisitions and integration related costs including restructuring and severance 3,338 3,644 2,936 Initial public offering and secondary costs 530 2,428 — Legal and litigation expenses including settlement payments 1,844 992 523 New jurisdictions and regulatory licensing costs — — 2,062 Non-cash charge on capitalized installation and delivery 2,700 2,081 1,912 Non-cash charges and loss on disposition of assets — — 1,202 Other adjustments 148 (2 ) 2,890 Interest expense 36,248 37,607 55,511 Interest income (163 ) (207 ) (108 ) Loss on extinguishment and modification of debt — 6,625 9,032 Other expense (income) 4,622 10,488 (2,938 ) Loss before income taxes $ (16,970 ) $ (29,223 ) $ (46,995 ) ( 1 The Company’s Chief Operating Decision Maker (the “CODM”) does not not not two not not The following provides financial information concerning our operations by geographic area for the years ended December 31 ( Year ended December 31, Revenue: 2019 2018 2017 United States $ 258,691 $ 255,256 $ 181,743 Other 46,023 30,043 30,212 $ 304,714 $ 285,299 $ 211,955 Year ended December 31, Long-lived assets, end of year: 2019 2018 2017 United States $ 89,597 $ 80,617 $ 79,301 Other 19,132 14,022 8,608 $ 108,729 $ 94,639 $ 87,909 |
Note 15 - Leases
Note 15 - Leases | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Lessee, Operating and Finance Leases [Text Block] | NOTE 15. Operating Leases We lease office space, warehouses and office equipment which we classify as operating leases. Operating leases with an initial term of 12 not not not not not December 31, 2018 January 1, 2019 Finance Leases We lease vehicles which we account for as finance leases using the effective interest method. Our finance lease agreements do not For the years ended December 31, 2019 2018 not one The following table discloses the operating and finance assets and liability balances recorded under ASC 842 December 31, 2019 840 December 31, 2018 As of December 31, 2019 As of December 31, 2018 (ASC 842) (ASC 840) Leases (in thousands) Classification Assets Operating leases Operating lease assets(a) $ 11,543 N/A Finance leases Property and equipment, net(b) 1,815 1,344 Total leased assets, net $ 13,358 $ 1,344 Liabilities Current: Operating leases Accrued liabilities $ 2,175 N/A Finance leases Current maturities of long-term debt 651 408 Non-current: Operating leases Operating lease liabilities, long-term 11,284 N/A Finance leases Long-term debt 1,086 851 Total lease liability $ 15,196 $ 1,259 (a) $1.5 December 31, 2019 (b) $0.7 $0.4 December 31, 2019 2018 The table below discloses the costs for operating and finance leases for the year ended December 31, 2019 2018: For the Year Ended December 31, 2019 2018 2017 (ASC 842) (ASC 840) (ASC 840) Operating lease costs (in thousands) Classification Operating lease cost - office building Selling, general and administrative $ 1,578 N/A N/A Operating lease cost - R&D Research and development 312 N/A N/A Operating lease cost - warehouses Cost of gaming operations (c) 500 N/A N/A Total Operating Lease cost: $ 2,390 N/A N/A Finance lease cost Depreciation of leased assets Depreciation and amortization $ 649 $ 479 $ 295 Interest on lease liabilities Interest expense 42 23 19 Total Finance Lease cost: 691 502 314 Total Lease Cost $ 3,081 $ 502 $ 314 (c) Subject to capitalization. The table below sets forth the maturity of the operating and financing leases liabilities for five 842: Operating Leases (a) Financing Leases Total Maturity of lease liabilities (in thousands) 2020 $ 2,907 $ 702 $ 3,609 2021 2,486 625 3,111 2022 1,957 384 2,341 2023 1,825 86 1,911 2024 1,808 4 1,812 Thereafter 5,612 - 5,612 Total lease payments $ 16,595 $ 1,801 $ 18,396 Less: interest 3,136 64 3,200 Present value of lease liabilities $ 13,459 $ 1,737 $ 15,196 (a) $14.3 not December 31, 2019 Future minimum lease payments under ASC 840 December 31, 2018 Total (in thousands) For the year ended December 31, 2019 $ 2,817 2020 2,716 2021 2,212 2022 1,470 2023 1,121 Thereafter 5,260 Total $ 15,596 The following table sets forth the weighted average of the lease terms and discount rates for operating and finance leases as of December 31, 2019 2018 As of As of December 31, December 31, 2019 2018 (ASC 842) (ASC 840) Lease term and discount rate Operating Weighted average remaining lease term (years) 7.0 N/A Weighted average discount rate 5.9 % N/A Finance Leases Weighted average remaining lease term (years) 2.3 2.7 Weighted average discount rate 2.6 % 2.6 % Other Information The table below discloses cash paid for the amounts included in the measurement of lease liabilities for the year ended December 31, 2019 2018 Year Ended December 31, 2019 2018 2017 (ASC 842) (ASC 840) (ASC 840) Cash paid for amounts included in the measurement of lease liabilities (in thousands) Operating cash flows from operating leases $ 2,613 N/A N/A Operating cash flows from finance leases $ 42 $ 23 $ 19 Financing cash flows from finance leases $ 630 $ 436 $ 280 |
Note 16 - Selected Quarterly Fi
Note 16 - Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Quarterly Financial Information [Text Block] | NOTE 16. The following tables present selected quarterly financial information for 2019 2018, Quarter ended March 31, 2019 Quarter ended June 30, 2019 Quarter ended September 30, 2019 Quarter ended December 31, 2019 Consolidated Income Statement Data: Revenues $ 73,042 $ 74,509 $ 79,377 $ 77,786 Gross profit[1] 53,899 53,674 55,728 54,945 Income from operations 8,348 1,995 5,579 7,815 Net (loss) income attributable to PlayAGS, Inc. (82 ) (7,557 ) (5,536 ) 1,423 Basic (loss) income per share — (0.21 ) (0.16 ) 0.04 Diluted (loss) income per share — (0.21 ) (0.16 ) 0.04 Quarter ended March 31, 2018 Quarter ended June 30, 2018 Quarter ended September 30, 2018 Quarter ended December 31, 2018 Consolidated Income Statement Data: Revenues $ 64,856 $ 72,822 $ 75,526 $ 72,095 Gross profit[1] 48,599 53,701 52,923 51,138 Income from operations 2,238 11,024 10,110 1,918 Net (loss) income (9,538 ) (5,310 ) 4,347 (10,345 ) Basic (loss) income per share (0.30 ) (0.15 ) 0.12 (0.29 ) Diluted (loss) income per share (0.30 ) (0.15 ) 0.12 (0.29 ) [1] |
Schedule I - Condensed Financia
Schedule I - Condensed Financial Information of the Registrant | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | ITEM 15 2 SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT PLAYAGS, INC. (PARENT COMPANY ONLY) CONDENSED BALANCE SHEETS (in thousands, except share data) December 31, 2019 2018 Assets Current assets Cash and cash equivalents $ 282 $ 13,549 Intercompany Receivables 8 — Prepaid expenses 26 49 Total current assets 316 13,598 Investment in subsidiaries 134,811 122,972 Other long-term assets 8 — Total assets $ 135,135 $ 136,570 Liabilities and Stockholders’ Equity Current liabilities Intercompany payables $ 1,351 $ 766 Total current liabilities 1,351 766 Total liabilities 1,351 766 Stockholders’ equity: Common stock 355 353 Additional paid-in capital 371,311 361,628 Retained earnings (235,474 ) (222,403 ) Accumulated other comprehensive loss (2,408 ) (3,774 ) Total stockholders’ equity 133,784 135,804 Total liabilities and stockholders’ equity $ 135,135 $ 136,570 PLAYAGS, INC. (PARENT COMPANY ONLY) CONDENSED STATEMENTS OF OPERATIONS (in thousands) Year ended December 31, 2019 2018 2017 Revenue Intercompany revenue $ 8 $ — $ — Total Revenue 8 — — Operating expenses Selling, general and administrative 25 $ 30 $ 286 Total operating expenses 25 30 286 Loss from operations (17 ) (30 ) (286 ) Other expense (income) Equity in net loss of subsidiaries (11,807 ) 16,396 28,302 Interest expense — 1,383 16,518 Loss on extinguishment and modification of debt — 3,037 — Other (Expense) Income 72 — — Loss before income taxes (11,752 ) (20,846 ) (45,106 ) Income tax (expense) benefit — — — Net loss attributable to PlayAGS, Inc. (11,752 ) (20,846 ) (45,106 ) Foreign currency translation adjustment 1,366 29 743 Total comprehensive loss $ (10,386 ) $ (20,817 ) $ (44,363 ) PLAYAGS, INC. (PARENT COMPANY ONLY) CONDENSED STATEMENTS OF CASH FLOWS (in thousands, except per share data) Year ended December 31, 2019 2018 2017 Cash flows from operating activities Net loss $ (11,752 ) $ (20,846 ) $ (45,106 ) Adjustments to reconcile net loss to net cash (used in) provided by operating activities: Amortization of deferred loan costs and discount — — 479 Payment-in-kind interest payments — (37,624 ) (1,108 ) Payment-in-kind interest capitalized — — 15,933 Write-off of deferred loan costs and discount — 3,037 — Equity income from subsidiaries 11,807 16,396 28,302 Changes in assets and liabilities that relate to operations: Prepaid expenses 23 5 (14 ) Intercompany payable/receivable 570 365 306 Accounts payable and accrued liabilities — — (36 ) Net cash provided by (used in) operating activities 648 (38,667 ) (1,244 ) Cash flows from investing activities Investment in subsidiaries (13,280 ) (12,100 ) (7,965 ) Distributions received from subsidiaries — — 8,084 Net cash (used in) provided by investing activities (13,280 ) (12,100 ) 119 Cash flows from financing activities Repayment of seller notes — — (6,870 ) Repayment of senior secured credit facilities — (115,000 ) — Proceeds from employees in advance of common stock issuance — — 25 Repurchase of shares (1,320 ) — — Proceeds from issuance of common stock — 176,341 — Proceeds from stock option exercise 685 774 — Net cash (used in) provided by financing activities (635 ) 62,115 (6,845 ) (Decrease) increase in cash and cash equivalents (13,267 ) 11,348 (7,970 ) Cash and cash equivalents, beginning of period 13,549 2,201 10,171 Cash and cash equivalents, end of period $ 282 $ 13,549 $ 2,201 PLAYAGS, INC. (PARENT COMPANY ONLY) NOTES TO FINANCIAL STATEMENTS NOTE 1 The stand-alone parent company financial statements of PlayAGS, Inc., (the “ Parent Company”) should be read in conjunction with the Company’s consolidated financial statements and the accompanying notes thereto. For purposes of these condensed financial statements, the Parent Company’s wholly owned and majority owned subsidiaries are recorded based upon its proportionate share of the subsidiaries’ net assets (similar to presenting them on the equity method). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted since this information is included in the Company’s consolidated financial statements included elsewhere in this Form 10 NOTE 2 The Parent Company is a holding company and, as a result, its ability to pay dividends is dependent on its subsidiaries’ ability to obtain funds and its subsidiaries' ability to provide funds to it. Restrictions are imposed by its subsidiaries' debt instruments, which significantly restrict certain key subsidiaries holding a majority of its assets from making dividends or distributions to the Parent Company. These restrictions are subject to certain exceptions for affiliated overhead expenses as defined in the agreements governing the debt instruments, unless certain financial and non-financial criteria have been satisfied. Long-term debt of the Parent Company consisted of the senior secured PIK notes and the Amaya Seller Note as described below. Senior Secured PIK Notes On January 30, 2018, 11.25% 2024 $152.6 $115 $1.4 $3.0 Concurrently with the redemption of the PIK notes, the Company terminated its amended and restated note purchase agreement (the “A&R Note Purchase Agreement”), dated May 30, 2017, NOTE 3 The Parent Company charged $9.0 $10.9 December 31, 2019 2018, 2018, $4.8 Prior to the consummation of the initial public offering, 170,712 April 28, 2014 ( not $1.3 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
SEC Schedule, 12-09, Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS Tax-related valuation allowance Balance at the beginning of period Charged to tax expense/(benefit) Purchase accounting adjustments Impact of foreign currency exchange rate Balance at the end of period Year ended December 31, 2019 $ 40,857 $ 50 $ 65 $ 32 $ 41,004 Year ended December 31, 2018 $ 33,774 $ 6,814 $ 269 $ — $ 40,857 Year ended December 31, 2017 $ 28,211 $ 5,557 $ — $ 6 $ 33,774 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The accompanying consolidated financial statements include the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with GAAP requires the Company to make decisions based upon estimates, assumptions, and factors considered relevant to the circumstances. Such decisions include the selection of applicable accounting principles and the use of judgment in their application, the results of which impact reported amounts and disclosures. Changes in future economic conditions or other business circumstances may |
Revenue [Policy Text Block] | Revenue Recognition In May 2014, No. 2014 09, Revenue from Contracts with Customers (Topic 606 August 2015, 2015 14, Revenue from Contracts with Customers (Topic 606 2014 09 December 15, 2017. may January 1, 2018. not not 2017. Revenue Recognition Leasing of equipment in both our EGM and Table Products segments is accounted for under lease accounting guidance in ASC 842, 842 606, The following table disaggregates our revenues by type within each of our segments (amounts in thousands): Year ended December 31, 2019 2018 2017 EGM Gaming operations $ 196,101 $ 187,809 $ 158,335 Equipment sales 93,541 83,216 41,596 Total $ 289,642 $ 271,025 $ 199,931 Table Products Gaming operations $ 9,555 $ 7,377 $ 3,958 Equipment sales 639 274 107 Total $ 10,194 $ 7,651 $ 4,065 Interactive (gaming operations) Social $ 3,319 $ 6,147 $ 7,959 RMG 1,559 476 — Total $ 4,878 $ 6,623 $ 7,959 Gaming Operations Gaming operations revenue is earned by providing customers with gaming machines, gaming machine content licenses, table products, back-office equipment and linked progressive systems, which are collectively referred to as gaming equipment, under participation arrangements. The participation arrangements convey the right to use the equipment (i.e., gaming machines and related integral software) for a stated period of time, which is typically no one three no Under participation arrangements, the Company retains ownership of the gaming equipment installed at the customer facilities and receives either revenue based on a percentage of the win per day generated by the gaming equipment or a fixed daily fee. Thus, in our consolidated financial statements the Company records revenue monthly related to these arrangements and the gaming equipment is recorded in property and equipment, net on our balance sheet and depreciated over the expected life of the gaming equipment. The majority of the Company’s leases require the Company to provide maintenance throughout the entire term of the lease. In some cases, a performance guarantee exists that, if not Gaming operations revenue is also earned from the licensing of table product content and is earned and recognized primarily on a fixed monthly rate. Our B2C B2C B2B Equipment Sales Revenues from contracts with customers are recognized and recorded when the following criteria are met: • We have a contract that has been approved by both the customer and the Company. Our contracts specify the products being sold and payment terms and are recognized when it is probable that we will collect substantially all of the contracted amount; and • Control has been transferred and services have been rendered in accordance with the contract terms. Equipment sales are generated from the sale of gaming machines and table products and licensing rights to the integral game content software that is installed in the related equipment, parts, and other ancillary equipment. Also included within the deliverables are delivery, installation and training, all of which occur within a few days of arriving at the customer location. Gaming sales do not 30 90 12 24 The Company enters into revenue arrangements that may may may Revenue is allocated to the separate performance obligations based on relative standalone selling prices determined at contract inception. Standalone selling prices are primarily determined by prices that we charge for the products when they are sold separately. When a product is not Revenue allocated to undelivered performance obligations is recorded as a contract liability and the balance of our contract liability was not December 31, 2019 2018. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents Cash and cash equivalents consist primarily of deposits held at major banks and other marketable securities with original maturities of 90 |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Restricted Cash Restricted cash amounts represent funds held in escrow as collateral for the Company’s surety bonds for various gaming authorities. |
Receivables, Trade and Other Accounts Receivable, Allowance for Doubtful Accounts, Policy [Policy Text Block] | Receivables, Allowance for Doubtful Accounts Accounts receivable are stated at face value less an allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts related to accounts receivable and notes receivable, which are non-interest bearing, deemed to have a high risk of collectability. The Company reviews the accounts receivable and notes receivable on a monthly basis to determine if any receivables will potentially be uncollectible. The Company analyzes historical collection trends and changes in the customers’ payment patterns, customer concentration, and credit worthiness when evaluating the adequacy of the allowance for doubtful accounts. The Company includes any receivable balances that are determined to be uncollectible in the overall allowance for doubtful accounts. Changes in the assumptions or estimates reflecting the collectability of certain accounts could materially affect the allowance for both accounts and notes receivable. The following provides financial information concerning the change in our allowance for doubtful accounts (in thousands): Allowance for Accounts Receivable, Year ended December 31, 2019 Beginning Balance Charge-offs Provision (Benefit) Ending Balance Allowance for doubtful accounts $ 885 $ (456 ) $ 294 $ 723 Allowance for Accounts Receivable, Year ended December 31, 2018 Beginning Balance Charge-offs Provision Ending Balance Allowance for doubtful accounts $ 1,462 $ (136 ) $ (441 ) $ 885 Allowance for Accounts Receivable, Year ended December 31, 2017 Beginning Balance Charge-offs Provision Ending Balance Allowance for doubtful accounts $ 1,972 $ (1,161 ) $ 651 $ 1,462 |
Inventory, Policy [Policy Text Block] | Inventories Inventories consist primarily of parts and supplies that are used to repair and maintain machinery and equipment as well as EGMs in production and finished goods held for sale. Inventories are stated at net realizable value. Cost of inventories is determined using the first first December 31, 2019 December 31, 2018, $29.1 $22.3 December 31, 2019 December 31, 2018, $3.8 $5.1 no December 31, 2019 December 31, 2018. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment The cost of gaming equipment, consisting of fixed-base player terminals, file servers and other support equipment as well as other property and equipment, is depreciated over their estimated useful lives, using the straight-line method for financial reporting. The Company capitalizes costs incurred for the refurbishment of used gaming equipment that is typically incurred to refurbish a machine in order to return it to its customer location. The refurbishments extend the life of the gaming equipment beyond the original useful life. Repairs and maintenance costs are expensed as incurred. The Company routinely evaluates the estimated lives used to depreciate assets. The estimated useful lives are as follows: Gaming equipment (in years) 2 6 Other property and equipment (in years) 3 6 Financed leased cars and leasehold improvements are amortized / depreciated over the life of the contract. The Company reviews its property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not not When the estimated undiscounted cash flows are not The Company measures recoverability of assets to be held and used by comparing the carrying amount of an asset to future cash flows expected to be generated by the asset. The Company’s policy is to impair, when necessary, excess or obsolete gaming machines on hand that it does not |
Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block] | Intangible Assets The Company reviews its identifiable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not not When the estimated undiscounted cash flows are not Certain trade names have an indefinite useful life and the Company tests these trade names for possible impairment at least annually, on October 1, may not not |
Software to be Sold, Leased, or Otherwise Marketed, Policy [Policy Text Block] | Costs of Capitalized Computer Software Internally developed gaming software represents the Company’s internal costs to develop gaming titles to utilize on the Company’s gaming machines. Internally developed gaming software is stated at cost and amortized over the estimated useful lives of the software, using the straight-line method. Software development costs are capitalized once technological feasibility has been established and are amortized when the software is placed into service. The gaming software we develop reaches technological feasibility when a working model of the gaming software is available. Any subsequent software maintenance costs, such as bug fixes and subsequent testing, are expensed as incurred. Discontinued software development costs are expensed when the determination to discontinue is made. Software development costs are amortized over the expected life of the title or group of titles, if applicable, to amortization expense. On a quarterly basis, or more frequently if circumstances warrant, the Company compares the net book value of its internally developed gaming software to the net realizable value on a title or group of title basis. The net realizable value is determined based upon certain assumptions, including the expected future revenues and net cash flows of the gaming titles or group of gaming titles utilizing that software, if applicable. |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill The excess of the purchase price of an acquired business over the estimated fair value of the assets acquired and the liabilities assumed is recorded as goodwill. The Company tests for possible impairment of goodwill at least annually, on October 1, not 0”, not may not not may second 2019, $3.5 4. fourth 2018, $4.8 4. |
Business Combinations Policy [Policy Text Block] | Acquisition Accounting The Company applies the provisions of ASC 805, Business Combinations” 805 may one may |
Fair Value Measurement, Policy [Policy Text Block] | Fair Value of Financial Instruments The Company applies the provisions of ASC 820, Fair Value Measurements 820 • Level 1 • Level 2 • Level 3 The carrying values of the Company’s cash and cash equivalents, restricted cash, receivables and accounts payable approximate fair value because of the short term maturities of these instruments. The fair value of our long-term debt is based on the quoted market prices for similar instruments (Level 2 $534.6 $528.1 December 31, 2019 2018, |
Income Tax, Policy [Policy Text Block] | Accounting for Income Taxes We conduct business globally and are subject to income taxes in U.S. federal, state, local, and foreign jurisdictions. Determination of the appropriate amount and classification of income taxes depends on several factors, including estimates of the timing and probability of realization of deferred income taxes, reserves for uncertain income tax positions and income tax payment timing. We account for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. Taxes on income of our foreign subsidiaries are provided at the tax rates applicable to the tax jurisdictions in which they are located. Future tax benefits are recognized to the extent that realization of those benefits is considered more likely than not not The recoverability of certain deferred tax assets is based in part on estimates of future income and the timing of temporary differences, and the failure to fully realize such deferred tax assets could result in a higher tax provision in future periods. We apply the accounting guidance to our uncertain tax positions and under the guidance, we may not 50% We are required to make significant judgments when evaluating our uncertain tax positions and the related tax benefits. We believe our assumptions are reasonable; however, there is no not may |
Commitments and Contingencies, Policy [Policy Text Block] | Contingencies The Company assesses its exposures to loss contingencies including claims and legal proceedings and accrues a liability if a potential loss is considered probable and the amount can be estimated. Significant judgment is required in both the determination of probability and the determination as to whether an exposure is reasonably estimable. Because of uncertainties related to these matters, if the actual loss from a contingency differs from management’s estimate, there could be a material impact on the results of operations or financial position. Operating expenses, including legal fees, associated with contingencies are expensed when incurred. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentrations of Credit Risk Financial instruments, which potentially subject the Company to concentration of credit risk, consist primarily of cash and cash equivalents and accounts receivable, net. Cash equivalents are investment-grade, short-term debt instruments consisting of treasury bills which are maintained with high credit quality financial institutions under repurchase agreements. Cash and cash equivalents are in excess of Federal Deposit Insurance Corporation (“FDIC”) insurance limits. As of December 31, 2019 2018, not Revenue from gaming operations is concentrated in the Class II gaming and casino industry, primarily located in Oklahoma and Alabama. For the years ended December 31, 2019, 2018 2017, 9%, 11%, 11% one 8%, 9% 11% December 31, 2019, 2018 2017, December 31, 2019, 2018 2017 9%, 9% 11% As of December 31, 2019, one 11% December 31, 2018, no 10% |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation The financial statements of the Company’s foreign subsidiaries are translated into U.S. dollars at the period end rate of exchange for asset and liability accounts and the weighted average rate of exchange for income statement accounts. The effects of these translations are recorded as a component of accumulated other comprehensive (loss) income in stockholders’ equity. |
Advertising Cost [Policy Text Block] | Advertising Costs Advertising costs are expensed as incurred. Advertising costs for the year ended December 31, 2019, 2018 2017 $0.6 $0.6 $0.7 |
Research and Development Expense, Policy [Policy Text Block] | Research and Development Research and development costs related primarily to software product development costs and is expensed as incurred until technological feasibility has been established. Employee related costs associated with product development are included in research and development. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Pronouncements Adopted in the Current Year In February 2016, 2016 02, Leases (Topic 842 2016 02 2016 02 December 15, 2018, July 2018, 2018 11, Leases (Topic 842 Targeted Improvements 2018 11 January 1, 2019. 840 840 840. no January 1, 2019. not January 1, 2019 15. not no On December 18, 2019, 2019 12, Income Taxes (Topic 740 740, not 2021 2022 not no To be Adopted in Future Periods In June 2016, No. 2016 13, Financial Instruments—Credit Losses (Topic 326 November 2018 No. 2018 19, Codification Improvements to Topic 326, not 326 20, 842. May 2019, No. 2019 05, Financial Instruments—Credit Losses (Topic 326 326. December 15, 2019, first not In August 2018, No. 2018 15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350 40 December 15, 2019, not We do not |
Note 1 - Description of the B_2
Note 1 - Description of the Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Year ended December 31, 2019 2018 2017 EGM Gaming operations $ 196,101 $ 187,809 $ 158,335 Equipment sales 93,541 83,216 41,596 Total $ 289,642 $ 271,025 $ 199,931 Table Products Gaming operations $ 9,555 $ 7,377 $ 3,958 Equipment sales 639 274 107 Total $ 10,194 $ 7,651 $ 4,065 Interactive (gaming operations) Social $ 3,319 $ 6,147 $ 7,959 RMG 1,559 476 — Total $ 4,878 $ 6,623 $ 7,959 |
Financing Receivable, Allowance for Credit Loss [Table Text Block] | Allowance for Accounts Receivable, Year ended December 31, 2019 Beginning Balance Charge-offs Provision (Benefit) Ending Balance Allowance for doubtful accounts $ 885 $ (456 ) $ 294 $ 723 Allowance for Accounts Receivable, Year ended December 31, 2018 Beginning Balance Charge-offs Provision Ending Balance Allowance for doubtful accounts $ 1,462 $ (136 ) $ (441 ) $ 885 Allowance for Accounts Receivable, Year ended December 31, 2017 Beginning Balance Charge-offs Provision Ending Balance Allowance for doubtful accounts $ 1,972 $ (1,161 ) $ 651 $ 1,462 |
Property, Plant and Equipment, Useful Life [Table Text Block] | Gaming equipment (in years) 2 6 Other property and equipment (in years) 3 6 |
Note 2 - Acquisitions (Tables)
Note 2 - Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | February 8, 2019 (in 000s) Total purchase price for Integrity common stock (35,223,928 shares at CAD $0.46 per share) $ 12,335 Payments to holders of Integrity stock options and restricted share units 441 Repayments of Integrity debt and other obligations 39,806 Total purchase price consideration $ 52,582 February 8, 2019 (in 000s) Assets Current assets Cash and cash equivalents $ 1,646 Accounts receivable 1,584 Inventories 159 Deposits and other 26 Prepaid expenses 141 Total Current Assets 3,556 Property and Equipment 12,708 Intangible Assets 30,600 Goodwill 11,380 Total Assets $ 58,244 Liabilities and Equity Current liabilities Accounts payable $ 1,366 Accrued liabilities 2,087 Current portion of long-term debt 151 Total current liabilities 3,604 Other long-term liabilities 1,787 Long-term debt 200 Total liabilities 1,987 Minority Interest 71 Net assets acquired $ 52,582 Inventories $ 354 Property and equipment 3,307 Goodwill 23,217 Intangible assets 30,290 Total Assets $ 57,168 Other long-term liabilities 318 Total purchase price $ 56,850 |
Business Acquisition, Pro Forma Information [Table Text Block] | Year Ended December 31, 2019 Year Ended December 31, 2018 Total revenues $ 306,452 $ 303,293 Net loss attributable to PlayAGS, Inc. $ (11,813 ) $ (20,381 ) From December 6, 2017 through December 31, 2017 (in 000s) Revenue $ 1,139 Net income $ 203 |
Note 3 - Property and Equipme_2
Note 3 - Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | December 31, 2019 December 31, 2018 Gaming equipment $ 175,837 $ 141,530 Other property and equipment 23,210 23,304 Less: Accumulated depreciation (95,449 ) (73,287 ) Total property and equipment, net $ 103,598 $ 91,547 |
Note 4 - Goodwill and Intangi_2
Note 4 - Goodwill and Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Schedule of Goodwill [Table Text Block] | Gross Carrying Amount EGM Table Products Interactive(1) Total Balance at December 31, 2017 $ 266,868 $ 6,641 $ 4,828 $ 278,337 Foreign currency adjustments 11 — (182 ) (171 ) Purchase accounting adjustment 200 — — 200 Acquisition — — 3,725 3,725 Impairment — — (4,828 ) (4,828 ) Balance at December 31, 2018 $ 267,079 $ 6,641 $ 3,543 $ 277,263 Foreign currency adjustments 769 — (10 ) 759 Acquisition 11,380 1,180 — 12,560 Impairment — — (3,533 ) (3,533 ) Balance at December 31, 2019 $ 279,228 $ 7,821 $ - $ 287,049 |
Schedule of Intangible Assets and Goodwill [Table Text Block] | December 31, 2019 December 31, 2018 Useful Life (years) Gross Value Accumulated Amortization Net Carrying Value Gross Value Accumulated Amortization Net Carrying Value Indefinite-lived trade names Indefinite $ 12,126 $ — $ 12,126 $ 12,126 $ — $ 12,126 Trade and brand names 5 7 14,870 (13,209 ) 1,661 14,730 (10,681 ) 4,049 Customer relationships 5 12 219,788 (120,384 ) 99,404 188,772 (93,358 ) 95,414 Contract rights under development and placement fees 1 7 48,180 (8,888 ) 39,292 19,620 (14,367 ) 5,253 Gaming software and technology platforms 1 7 162,391 (96,193 ) 66,198 151,055 (82,371 ) 68,684 Intellectual property 10 12 19,345 (7,575 ) 11,770 17,205 (5,830 ) 11,375 $ 476,700 $ (246,249 ) 230,451 $ 403,508 $ (206,607 ) $ 196,898 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | For the year ended December 31, Amortization Expense Placement Fee Accretion 2020 $ 41,191 $ 8,451 2021 29,625 6,596 2022 26,769 6,277 2023 23,277 5,913 2024 21,972 5,389 Thereafter 36,199 6,666 Total $ 179,033 $ 39,292 |
Note 5 - Accrued Liabilities (T
Note 5 - Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | December 31, 2019 2018 Salary and payroll tax accrual $ 8,691 $ 13,393 Taxes payable 4,151 3,437 Current portion of operating lease liability 2,175 — License fee obligation 1,000 1,000 Placement fees payable 8,346 2,490 Accrued other 10,477 6,339 Total accrued liabilities $ 34,840 $ 26,659 |
Note 6 - Long-term Debt (Tables
Note 6 - Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | December 31, 2019 2018 First Lien Credit Facilities: Term loans, interest at LIBOR or base rate plus 3.5% (5.2% at December 31, 2019), net of unamortized discount and deferred loan costs of $9.0 million and $10.9 million at December 31, 2019 and 2018, respectively. $ 522,989 $ 526,461 Equipment long-term note payable and finance leases 1,737 1,422 Total debt 524,727 527,883 Less: Current portion (6,038 ) (5,959 ) Long-term debt $ 518,689 $ 521,924 |
Schedule of Maturities of Long-term Debt [Table Text Block] | For the year ending December 31, 2020 $ 6,038 2021 6,005 2022 5,768 2023 5,470 2024 510,446 Thereafter — Total scheduled maturities 533,727 Unamortized debt discount and debt issuance costs (9,000 ) Total debt $ 524,727 |
Note 11 - Stock-based Compens_2
Note 11 - Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Year Ended December 31, 2019 2018 2017 Option valuation assumptions: Expected dividend yield N/A —% —% Expected volatility N/A 50% 66% Risk-free interest rate N/A 2.71% 1.80% Expected term (in years) N/A 6.3 6.2 |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | Number of Options Weighted Average Exercise Price Weighted Average Remaining Contract Term (years) Aggregate Intrinsic Value (in thousands) Options outstanding as of December 31, 2018 1,515,461 $ 9.11 6.57 $ 22,125 Granted — $ — Exercised (70,288 ) $ 9.74 Canceled or forfeited (62,187 ) $ 8.65 Options outstanding as of December 31, 2019 1,382,986 $ 9.10 5.45 $ 4,793 Exercisable as of December 31, 2019 1,192,671 $ 8.46 5.19 $ 4,527 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value [Table Text Block] | Year Ended December 31, 2019 2018 2017 Weighted average grant date fair value N/A $ 12.63 $ 5.31 |
Nonvested Restricted Stock Shares Activity [Table Text Block] | Shares Outstanding Grant Date Fair Value (per share) Outstanding as of December 31, 2018 287,479 $ 29.26 Granted 709,205 $ 19.37 Vested (231,543 ) $ 17.19 Canceled or forfeited (52,645 ) $ 24.78 Outstanding as of December 31, 2019 712,496 $ 23.66 |
Note 12 - Income Taxes (Tables)
Note 12 - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | Year ended December 31, 2019 2018 2017 Domestic $ 1,129 $ (13,814 ) $ (42,185 ) Foreign (18,099 ) (15,409 ) (4,810 ) Loss before provision for income taxes $ (16,970 ) $ (29,223 ) $ (46,995 ) |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Year ended December 31, 2019 2018 2017 Current: Federal $ (2,726 ) $ (773 ) $ (250 ) State 286 227 47 Foreign (1,084 ) (6,830 ) 5,365 Total current income tax (benefit) expense (3,524 ) (7,376 ) 5,162 Deferred: Federal 343 379 (5,497 ) State 49 48 (372 ) Foreign (2,317 ) (1,428 ) (1,182 ) Total deferred income (benefit) expense (1,925 ) (1,001 ) (7,051 ) Income tax (benefit) expense $ (5,449 ) $ (8,377 ) $ (1,889 ) |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Year ended December 31, 2019 2018 2017 Federal statutory rate (21.0 )% (21.0 )% (35.0 )% Foreign rate differential (2.9 )% (3.0 )% 1.5 % Losses of foreign subsidiaries disregarded for US income tax — % (1.3 )% (2.5 )% State income taxes, net of federal benefit 2.9 % (0.8 )% (3.0 )% Nondeductible loan costs — % 0.5 % 1.4 % Nondeductible transaction costs 0.7 % 1.1 % — % Impact of tax liquidation — % 10.4 % — % Tax indemnification charges 7.9 % 9.5 % (1.3 )% Stock Compensation 1.0 % (1.4 )% — % Other differences 4.1 % 2.7 % (2.7 )% Withholding tax 3.3 % 1.7 % 2.5 % Tax credits (2.4 )% (12.0 )% (2.1 )% Uncertain tax positions (26.0 )% (38.0 )% 7.3 % Valuation allowance 0.3 % 22.9 % 47.2 % Rate change - impact of the Tax Act — % — % 19.9 % Repatriation tax - impact of the Tax Act — % (1.0 )% 4.1 % Tax credits - impact of the Tax Act — % 0.6 % (6.0 )% Valuation allowance - impact of the Tax Act — % 0.4 % (35.3 )% Effective tax rate (32.1 )% (28.7 )% (4.0 )% |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | December 31, 2019 2018 Deferred tax assets: Accrued expenses $ 2,411 $ 3,042 Stock Compensation 3,129 2,164 Foreign tax credits 12,189 13,571 Net operating loss carryforwards 46,872 43,637 Research and development credits 6,313 4,530 Other 6,391 4,492 Total deferred tax assets 77,305 71,436 Valuation allowance (41,004 ) (40,857 ) Deferred tax assets, net of valuation allowance $ 36,301 $ 30,579 Deferred tax liabilities: Prepaid expenses and other $ (582 ) $ (511 ) Intangible assets (19,719 ) (19,552 ) Property and equipment, net (12,871 ) (9,415 ) Deferred tax liabilities (33,172 ) (29,478 ) Net deferred tax assets (liabilities) $ 3,129 $ 1,101 |
Summary of Income Tax Contingencies [Table Text Block] | December 31, 2019 December 31, 2018 Balance-beginning of year $ 12,580 $ 28,673 Acquisitions 1,244 — Increases based on tax positions of the current year 453 393 Decrease due to tax authority settlements — (10,457 ) Decreases due to lapse of statute (3,225 ) (5,118 ) Increases based on tax positions of the prior years 95 156 Decreases based on tax positions of the prior years (670 ) (1,065 ) Currency translation adjustments 477 (2 ) Balance-end of year $ 10,954 $ 12,580 |
Note 14 - Operating Segments (T
Note 14 - Operating Segments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | 2019 2018 2017 Revenues by segment EGM $ 289,642 $ 271,025 $ 199,931 Table Products 10,194 7,651 4,065 Interactive 4,878 6,623 7,959 Total Revenues 304,714 285,299 211,955 Adjusted EBITDA by segment EGM 144,718 137,371 107,785 Table Products 3,699 942 (528 ) Interactive (2,355 ) (2,107 ) (416 ) Subtotal 146,062 136,206 106,841 Write-downs and other: Loss on disposal of long lived assets 1,068 1,963 3,901 Impairment of long lived assets 5,343 6,089 1,214 Fair value adjustments to contingent consideration and other items 501 701 (630 ) Depreciation and amortization 91,474 77,535 71,649 Accretion of placement fees(1) 6,378 4,552 4,680 Non-cash stock compensation 9,001 10,933 — Acquisitions and integration related costs including restructuring and severance 3,338 3,644 2,936 Initial public offering and secondary costs 530 2,428 — Legal and litigation expenses including settlement payments 1,844 992 523 New jurisdictions and regulatory licensing costs — — 2,062 Non-cash charge on capitalized installation and delivery 2,700 2,081 1,912 Non-cash charges and loss on disposition of assets — — 1,202 Other adjustments 148 (2 ) 2,890 Interest expense 36,248 37,607 55,511 Interest income (163 ) (207 ) (108 ) Loss on extinguishment and modification of debt — 6,625 9,032 Other expense (income) 4,622 10,488 (2,938 ) Loss before income taxes $ (16,970 ) $ (29,223 ) $ (46,995 ) |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | Year ended December 31, Revenue: 2019 2018 2017 United States $ 258,691 $ 255,256 $ 181,743 Other 46,023 30,043 30,212 $ 304,714 $ 285,299 $ 211,955 Year ended December 31, Long-lived assets, end of year: 2019 2018 2017 United States $ 89,597 $ 80,617 $ 79,301 Other 19,132 14,022 8,608 $ 108,729 $ 94,639 $ 87,909 |
Note 15 - Leases (Tables)
Note 15 - Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Assets and Liabilities, Lessee [Table Text Block] | As of December 31, 2019 As of December 31, 2018 (ASC 842) (ASC 840) Leases (in thousands) Classification Assets Operating leases Operating lease assets(a) $ 11,543 N/A Finance leases Property and equipment, net(b) 1,815 1,344 Total leased assets, net $ 13,358 $ 1,344 Liabilities Current: Operating leases Accrued liabilities $ 2,175 N/A Finance leases Current maturities of long-term debt 651 408 Non-current: Operating leases Operating lease liabilities, long-term 11,284 N/A Finance leases Long-term debt 1,086 851 Total lease liability $ 15,196 $ 1,259 |
Lease, Cost [Table Text Block] | For the Year Ended December 31, 2019 2018 2017 (ASC 842) (ASC 840) (ASC 840) Operating lease costs (in thousands) Classification Operating lease cost - office building Selling, general and administrative $ 1,578 N/A N/A Operating lease cost - R&D Research and development 312 N/A N/A Operating lease cost - warehouses Cost of gaming operations (c) 500 N/A N/A Total Operating Lease cost: $ 2,390 N/A N/A Finance lease cost Depreciation of leased assets Depreciation and amortization $ 649 $ 479 $ 295 Interest on lease liabilities Interest expense 42 23 19 Total Finance Lease cost: 691 502 314 Total Lease Cost $ 3,081 $ 502 $ 314 As of As of December 31, December 31, 2019 2018 (ASC 842) (ASC 840) Lease term and discount rate Operating Weighted average remaining lease term (years) 7.0 N/A Weighted average discount rate 5.9 % N/A Finance Leases Weighted average remaining lease term (years) 2.3 2.7 Weighted average discount rate 2.6 % 2.6 % Year Ended December 31, 2019 2018 2017 (ASC 842) (ASC 840) (ASC 840) Cash paid for amounts included in the measurement of lease liabilities (in thousands) Operating cash flows from operating leases $ 2,613 N/A N/A Operating cash flows from finance leases $ 42 $ 23 $ 19 Financing cash flows from finance leases $ 630 $ 436 $ 280 |
Lessee, Lease Liability, Maturity [Table Text Block] | Operating Leases (a) Financing Leases Total Maturity of lease liabilities (in thousands) 2020 $ 2,907 $ 702 $ 3,609 2021 2,486 625 3,111 2022 1,957 384 2,341 2023 1,825 86 1,911 2024 1,808 4 1,812 Thereafter 5,612 - 5,612 Total lease payments $ 16,595 $ 1,801 $ 18,396 Less: interest 3,136 64 3,200 Present value of lease liabilities $ 13,459 $ 1,737 $ 15,196 |
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | Total (in thousands) For the year ended December 31, 2019 $ 2,817 2020 2,716 2021 2,212 2022 1,470 2023 1,121 Thereafter 5,260 Total $ 15,596 |
Note 16 - Selected Quarterly _2
Note 16 - Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Quarterly Financial Information [Table Text Block] | Quarter ended March 31, 2019 Quarter ended June 30, 2019 Quarter ended September 30, 2019 Quarter ended December 31, 2019 Consolidated Income Statement Data: Revenues $ 73,042 $ 74,509 $ 79,377 $ 77,786 Gross profit[1] 53,899 53,674 55,728 54,945 Income from operations 8,348 1,995 5,579 7,815 Net (loss) income attributable to PlayAGS, Inc. (82 ) (7,557 ) (5,536 ) 1,423 Basic (loss) income per share — (0.21 ) (0.16 ) 0.04 Diluted (loss) income per share — (0.21 ) (0.16 ) 0.04 Quarter ended March 31, 2018 Quarter ended June 30, 2018 Quarter ended September 30, 2018 Quarter ended December 31, 2018 Consolidated Income Statement Data: Revenues $ 64,856 $ 72,822 $ 75,526 $ 72,095 Gross profit[1] 48,599 53,701 52,923 51,138 Income from operations 2,238 11,024 10,110 1,918 Net (loss) income (9,538 ) (5,310 ) 4,347 (10,345 ) Basic (loss) income per share (0.30 ) (0.15 ) 0.12 (0.29 ) Diluted (loss) income per share (0.30 ) (0.15 ) 0.12 (0.29 ) |
Schedule I - Condensed Financ_2
Schedule I - Condensed Financial Information of the Registrant (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Condensed Balance Sheet [Table Text Block] | December 31, 2019 2018 Assets Current assets Cash and cash equivalents $ 282 $ 13,549 Intercompany Receivables 8 — Prepaid expenses 26 49 Total current assets 316 13,598 Investment in subsidiaries 134,811 122,972 Other long-term assets 8 — Total assets $ 135,135 $ 136,570 Liabilities and Stockholders’ Equity Current liabilities Intercompany payables $ 1,351 $ 766 Total current liabilities 1,351 766 Total liabilities 1,351 766 Stockholders’ equity: Common stock 355 353 Additional paid-in capital 371,311 361,628 Retained earnings (235,474 ) (222,403 ) Accumulated other comprehensive loss (2,408 ) (3,774 ) Total stockholders’ equity 133,784 135,804 Total liabilities and stockholders’ equity $ 135,135 $ 136,570 |
Condensed Income Statement [Table Text Block] | Year ended December 31, 2019 2018 2017 Revenue Intercompany revenue $ 8 $ — $ — Total Revenue 8 — — Operating expenses Selling, general and administrative 25 $ 30 $ 286 Total operating expenses 25 30 286 Loss from operations (17 ) (30 ) (286 ) Other expense (income) Equity in net loss of subsidiaries (11,807 ) 16,396 28,302 Interest expense — 1,383 16,518 Loss on extinguishment and modification of debt — 3,037 — Other (Expense) Income 72 — — Loss before income taxes (11,752 ) (20,846 ) (45,106 ) Income tax (expense) benefit — — — Net loss attributable to PlayAGS, Inc. (11,752 ) (20,846 ) (45,106 ) Foreign currency translation adjustment 1,366 29 743 Total comprehensive loss $ (10,386 ) $ (20,817 ) $ (44,363 ) |
Condensed Cash Flow Statement [Table Text Block] | Year ended December 31, 2019 2018 2017 Cash flows from operating activities Net loss $ (11,752 ) $ (20,846 ) $ (45,106 ) Adjustments to reconcile net loss to net cash (used in) provided by operating activities: Amortization of deferred loan costs and discount — — 479 Payment-in-kind interest payments — (37,624 ) (1,108 ) Payment-in-kind interest capitalized — — 15,933 Write-off of deferred loan costs and discount — 3,037 — Equity income from subsidiaries 11,807 16,396 28,302 Changes in assets and liabilities that relate to operations: Prepaid expenses 23 5 (14 ) Intercompany payable/receivable 570 365 306 Accounts payable and accrued liabilities — — (36 ) Net cash provided by (used in) operating activities 648 (38,667 ) (1,244 ) Cash flows from investing activities Investment in subsidiaries (13,280 ) (12,100 ) (7,965 ) Distributions received from subsidiaries — — 8,084 Net cash (used in) provided by investing activities (13,280 ) (12,100 ) 119 Cash flows from financing activities Repayment of seller notes — — (6,870 ) Repayment of senior secured credit facilities — (115,000 ) — Proceeds from employees in advance of common stock issuance — — 25 Repurchase of shares (1,320 ) — — Proceeds from issuance of common stock — 176,341 — Proceeds from stock option exercise 685 774 — Net cash (used in) provided by financing activities (635 ) 62,115 (6,845 ) (Decrease) increase in cash and cash equivalents (13,267 ) 11,348 (7,970 ) Cash and cash equivalents, beginning of period 13,549 2,201 10,171 Cash and cash equivalents, end of period $ 282 $ 13,549 $ 2,201 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Summary of Valuation Allowance [Table Text Block] | Tax-related valuation allowance Balance at the beginning of period Charged to tax expense/(benefit) Purchase accounting adjustments Impact of foreign currency exchange rate Balance at the end of period Year ended December 31, 2019 $ 40,857 $ 50 $ 65 $ 32 $ 41,004 Year ended December 31, 2018 $ 33,774 $ 6,814 $ 269 $ — $ 40,857 Year ended December 31, 2017 $ 28,211 $ 5,557 $ — $ 6 $ 33,774 |
Note 1 - Description of the B_3
Note 1 - Description of the Business and Summary of Significant Accounting Policies (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | Feb. 27, 2018 | Jan. 30, 2018 | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Number of Reportable Segments | 3 | ||||||
Stock Issued During Period, Shares, New Issues | 1,537,500 | ||||||
Contract with Customer, Liability, Total | $ 0 | $ 0 | $ 0 | ||||
Inventory, Raw Materials, Gross, Total | 22,300 | 29,100 | 22,300 | ||||
Inventory, Finished Goods, Gross, Total | 5,100 | 3,800 | 5,100 | ||||
Inventory, Work in Process, Gross | 0 | 0 | 0 | ||||
Goodwill, Impairment Loss | 3,533 | 4,828 | |||||
Long-term Debt, Fair Value | 528,100 | 534,600 | 528,100 | ||||
Advertising Expense | $ 600 | $ 600 | $ 700 | ||||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer A [Member] | |||||||
Concentration Risk, Percentage | 9.00% | 11.00% | 11.00% | ||||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer B [Member] | |||||||
Concentration Risk, Percentage | 8.00% | 9.00% | 11.00% | ||||
Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | MEXICO | |||||||
Concentration Risk, Percentage | 9.00% | 9.00% | 11.00% | ||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | One Customer [Member] | |||||||
Concentration Risk, Percentage | 11.00% | ||||||
Interactive (Gaming Operations) [Member] | |||||||
Goodwill, Impairment Loss | $ 3,500 | $ 3,533 | $ 4,828 | ||||
Gaming Operations [Member] | Minimum [Member] | |||||||
Lessor, Operating Lease, Term of Contract | 1 year | ||||||
Gaming Operations [Member] | Maximum [Member] | |||||||
Lessor, Operating Lease, Term of Contract | 3 years | ||||||
RMG [Member] | Interactive (Gaming Operations) [Member] | |||||||
Goodwill, Impairment Loss | $ 3,500 | ||||||
Social [Member] | Interactive (Gaming Operations) [Member] | |||||||
Goodwill, Impairment Loss | $ 4,800 | ||||||
IPO [Member] | |||||||
Stock Issued During Period, Shares, New Issues | 10,250,000 | ||||||
Shares Issued, Price Per Share | $ 16 |
Note 1 - Description of the B_4
Note 1 - Description of the Business and Summary of Significant Accounting Policies - Disaggregation of Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Total revenues | $ 77,786 | $ 79,377 | $ 74,509 | $ 73,042 | $ 72,095 | $ 75,526 | $ 72,822 | $ 64,856 | $ 304,714 | $ 285,299 | $ 211,955 |
Gaming Operations [Member] | |||||||||||
Total revenues | 210,534 | 201,809 | 170,252 | ||||||||
Equipment Sales [Member] | |||||||||||
Total revenues | 94,180 | 83,490 | 41,703 | ||||||||
EGM [Member] | |||||||||||
Total revenues | 289,642 | 271,025 | 199,931 | ||||||||
EGM [Member] | Gaming Operations [Member] | |||||||||||
Total revenues | 196,101 | 187,809 | 158,335 | ||||||||
EGM [Member] | Equipment Sales [Member] | |||||||||||
Total revenues | 93,541 | 83,216 | 41,596 | ||||||||
Table Products [Member] | |||||||||||
Total revenues | 10,194 | 7,651 | 4,065 | ||||||||
Table Products [Member] | Gaming Operations [Member] | |||||||||||
Total revenues | 9,555 | 7,377 | 3,958 | ||||||||
Table Products [Member] | Equipment Sales [Member] | |||||||||||
Total revenues | 639 | 274 | 107 | ||||||||
Interactive (Gaming Operations) [Member] | |||||||||||
Total revenues | 4,878 | 6,623 | 7,959 | ||||||||
Interactive (Gaming Operations) [Member] | RMG [Member] | |||||||||||
Total revenues | 3,319 | 6,147 | 7,959 | ||||||||
Interactive (Gaming Operations) [Member] | Social [Member] | |||||||||||
Total revenues | $ 1,559 | $ 476 |
Note 1 - Description of the B_5
Note 1 - Description of the Business and Summary of Significant Accounting Policies - Allowance For Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for doubtful accounts | $ 885 | $ 1,462 | $ 1,972 |
Charge-offs | (456) | (136) | (1,161) |
Provision (benefit) for bad debts | 294 | (441) | 651 |
Allowance for doubtful accounts | $ 723 | $ 885 | $ 1,462 |
Note 1 - Description of the B_6
Note 1 - Description of the Business and Summary of Significant Accounting Policies - Property and Equipment Useful Life (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Minimum [Member] | |
Gaming equipment (in years) (Year) | 2 years |
Maximum [Member] | |
Gaming equipment (in years) (Year) | 6 years |
Gaming Equipment [Member] | Minimum [Member] | |
Gaming equipment (in years) (Year) | 2 years |
Gaming Equipment [Member] | Maximum [Member] | |
Gaming equipment (in years) (Year) | 6 years |
Property, Plant and Equipment, Other Types [Member] | Minimum [Member] | |
Gaming equipment (in years) (Year) | 3 years |
Property, Plant and Equipment, Other Types [Member] | Maximum [Member] | |
Gaming equipment (in years) (Year) | 6 years |
Note 2 - Acquisitions (Details
Note 2 - Acquisitions (Details Textual) $ in Thousands | Feb. 08, 2019USD ($) | Dec. 06, 2017USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Goodwill, Ending Balance | $ 287,049 | $ 277,263 | $ 278,337 | |||||
In Bet [Member] | ||||||||
Business Combination, Consideration Transferred, Total | $ 4,000 | $ 9,600 | ||||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 1,200 | $ 3,200 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill, Total | $ 2,800 | |||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 9 years 109 days | 9 years | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 5,500 | |||||||
Business Combination, Contingent Consideration, Asset, Total | $ 2,600 | |||||||
Integrity Gaming Corp [Member] | ||||||||
Business Combination, Consideration Transferred, Total | $ 52,582 | |||||||
Number of Gaming Machines | 2,500 | |||||||
Number of Casinos | 33 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities | $ 600 | |||||||
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed, Uncertain Tax Position | 1,400 | |||||||
Payments to Acquire Businesses, Gross | 12,335 | |||||||
Business Combination, Consideration Transferred, Liabilities Incurred | 39,806 | |||||||
Goodwill, Ending Balance | 11,380 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 30,600 | |||||||
Integrity Gaming Corp [Member] | Customer Relationships [Member] | ||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years | |||||||
Gameiom Technologies Limited [Member] | ||||||||
Business Combination, Consideration Transferred, Total | $ 5,000 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill, Total | $ 2,100 | |||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 6 years 255 days | |||||||
Payments to Acquire Businesses, Gross | $ 4,500 | |||||||
Business Combination, Consideration Transferred, Liabilities Incurred | $ 500 | |||||||
Deferred Consideration To Acquire Business, Payment Terms | 1 year 180 days | |||||||
Goodwill, Ending Balance | $ 3,700 | |||||||
Rocket [Member] | ||||||||
Business Combination, Consideration Transferred, Total | $ 56,850 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill, Total | $ 30,290 | |||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 6 years 146 days | |||||||
Goodwill, Ending Balance | $ 23,217 | |||||||
Business Combination, Electronic Gaming Machines Acquired | 1,500 | |||||||
Rocket [Member] | Customer Relationships [Member] | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 22,500 | |||||||
Rocket [Member] | Gaming Software and Technology Platforms [Member] | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 6,900 | |||||||
Rocket [Member] | Trade Names [Member] | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 900 |
Note 2 - Acquisitions - Acquisi
Note 2 - Acquisitions - Acquisition (Details) - USD ($) $ in Thousands | Feb. 08, 2019 | Dec. 06, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Goodwill, Ending Balance | $ 287,049 | $ 277,263 | $ 278,337 | ||
Goodwill | $ 287,049 | $ 277,263 | $ 278,337 | ||
Rocket [Member] | |||||
Total purchase price consideration | $ 56,850 | ||||
Inventories | 354 | ||||
Property and Equipment | 3,307 | ||||
Goodwill, Ending Balance | 23,217 | ||||
Total Assets | 57,168 | ||||
Other long-term liabilities | 318 | ||||
Inventories | 354 | ||||
Property and equipment | 3,307 | ||||
Goodwill | 23,217 | ||||
Intangible assets | 30,290 | ||||
Total Assets | 57,168 | ||||
Other long-term liabilities | 318 | ||||
Total purchase price | $ 56,850 | ||||
Integrity Gaming Corp [Member] | |||||
Total purchase price for Integrity common stock (35,223,928 shares at CAD $0.46 per share) | $ 12,335 | ||||
Payments to holders of Integrity stock options and restricted share units | 441 | ||||
Repayments of Integrity debt and other obligations | 39,806 | ||||
Total purchase price consideration | 52,582 | ||||
Cash and cash equivalents | 1,646 | ||||
Accounts receivable | 1,584 | ||||
Inventories | 159 | ||||
Deposits and other | 26 | ||||
Prepaid expenses | 141 | ||||
Total Current Assets | 3,556 | ||||
Property and Equipment | 12,708 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 30,600 | ||||
Goodwill, Ending Balance | 11,380 | ||||
Total Assets | 58,244 | ||||
Accounts payable | 1,366 | ||||
Accrued liabilities | 2,087 | ||||
Current portion of long-term debt | 151 | ||||
Total current liabilities | 3,604 | ||||
Other long-term liabilities | 1,787 | ||||
Long-term debt | 200 | ||||
Total liabilities | 1,987 | ||||
Minority Interest | 71 | ||||
Net assets acquired | 52,582 | ||||
Inventories | 159 | ||||
Property and equipment | 12,708 | ||||
Goodwill | 11,380 | ||||
Total Assets | 58,244 | ||||
Other long-term liabilities | 1,787 | ||||
Total purchase price | $ 52,582 |
Note 2 - Acquisitions - Acqui_2
Note 2 - Acquisitions - Acquisition (Details) (Parentheticals) - Integrity Gaming Corp [Member] | Feb. 08, 2019$ / sharesshares |
Integrity common stock, shares (in shares) | shares | 35,223,928 |
Integrity common stock, per share (in CAD per share) | $ / shares | $ 0.46 |
Note 2 - Acquisitions - Pro For
Note 2 - Acquisitions - Pro Forma Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | |
Integrity Gaming Corp [Member] | |||
Total revenues | $ 306,452 | $ 303,293 | |
Net loss attributable to PlayAGS, Inc. | $ (11,813) | $ (20,381) | |
Rocket [Member] | |||
Revenue | $ 1,139 | ||
Net income | $ 203 |
Note 3 - Property and Equipme_3
Note 3 - Property and Equipment (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Depreciation, Total | $ 45.1 | $ 32.4 | $ 27.2 |
Minimum [Member] | |||
Property, Plant and Equipment, Useful Life | 2 years | ||
Maximum [Member] | |||
Property, Plant and Equipment, Useful Life | 6 years |
Note 3 - Property and Equipme_4
Note 3 - Property and Equipment - Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Less: Accumulated depreciation | $ (95,449) | $ (73,287) |
Total property and equipment, net | 103,598 | 91,547 |
Gaming Equipment [Member] | ||
Property and equipment, gross | 175,837 | 141,530 |
Property, Plant and Equipment, Other Types [Member] | ||
Property and equipment, gross | $ 23,210 | $ 23,304 |
Note 4 - Goodwill and Intangi_3
Note 4 - Goodwill and Intangibles (Details Textual) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2019USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Oct. 01, 2019 | |||||
Goodwill, Impairment Loss | $ 3,533 | $ 4,828 | |||||||||
Goodwill, Ending Balance | $ 277,263 | 287,049 | 277,263 | $ 278,337 | |||||||
Amortization of Intangible Assets, Total | 46,400 | 45,100 | 44,400 | ||||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 500 | 1,300 | |||||||||
Indefinite-lived Intangible Assets (Excluding Goodwill), Ending Balance | $ 12,126 | 12,126 | 12,126 | ||||||||
Accretion of Contract Rights Under Development Agreements and Customer Agreements | [1] | 6,378 | $ 4,552 | 4,680 | |||||||
Placement Fees, Capitalized | $ 33,100 | ||||||||||
Placement Fees, Unamortized Cost | 2,100 | ||||||||||
Present Value and Cash Payments, Placement Fees Payables | $ 40,100 | ||||||||||
Placement Fees, Payment Term | 6 years 330 days | ||||||||||
RMG Customer Relationships, Gaming Licenses, and Game Content [Member] | |||||||||||
Indefinite-lived Intangible Assets (Excluding Goodwill), Ending Balance | 600 | ||||||||||
RMG Technology Platform [Member] | |||||||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 700 | ||||||||||
Indefinite-lived Intangible Assets (Excluding Goodwill), Ending Balance | $ 400 | ||||||||||
Minimum [Member] | |||||||||||
Finite-Lived Intangible Asset, Useful Life | 1 year | ||||||||||
Maximum [Member] | |||||||||||
Finite-Lived Intangible Asset, Useful Life | 12 years | ||||||||||
Measurement Input, Discount Rate [Member] | |||||||||||
Impairment Assumptions, Measurement Input | 19 | 0.25 | 19 | ||||||||
Measurement Input, Discount Rate [Member] | EGM [Member] | |||||||||||
Impairment Assumptions, Measurement Input | 10 | ||||||||||
Measurement Input, Discount Rate [Member] | Table Products [Member] | |||||||||||
Impairment Assumptions, Measurement Input | 14 | ||||||||||
Measurement Input, Long-term Revenue Growth Rate [Member] | |||||||||||
Impairment Assumptions, Measurement Input | 3 | 0.03 | 3 | 3 | |||||||
Royalty Rate [Member] | |||||||||||
Impairment Assumptions, Measurement Input | 0.05 | ||||||||||
Interactive (Gaming Operations) [Member] | |||||||||||
Goodwill, Impaired, Accumulated Impairment Loss | $ 8,400 | ||||||||||
Goodwill, Impairment Loss | $ 3,500 | 3,533 | $ 4,828 | ||||||||
Goodwill, Ending Balance | $ 3,543 | [2] | 3,543 | [2] | $ 4,828 | [2] | |||||
Interactive (Gaming Operations) [Member] | Social [Member] | |||||||||||
Goodwill, Impairment Loss | 4,800 | ||||||||||
Goodwill, Ending Balance | $ 4,800 | $ 4,800 | |||||||||
[1] | Non-cash item related to the accretion of contract rights under development agreements and placement fees. | ||||||||||
[2] | Accumulated goodwill impairment charges for the Interactive segment as of September 30, 2019 were $8.4 million. |
Note 4 - Goodwill and Intangi_4
Note 4 - Goodwill and Intangibles - Changes in Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Goodwill, balance | $ 277,263 | $ 278,337 | |||
Foreign currency adjustments | 759 | (171) | |||
Purchase accounting adjustment | 200 | ||||
Acquisition | 12,560 | 3,725 | |||
Impairment | (3,533) | (4,828) | |||
Goodwill, balance | 287,049 | 277,263 | |||
EGM [Member] | |||||
Goodwill, balance | 267,079 | 266,868 | |||
Foreign currency adjustments | 769 | 11 | |||
Purchase accounting adjustment | 200 | ||||
Acquisition | 11,380 | ||||
Impairment | |||||
Goodwill, balance | 279,228 | 267,079 | |||
Table Products [Member] | |||||
Goodwill, balance | 6,641 | 6,641 | |||
Foreign currency adjustments | |||||
Purchase accounting adjustment | |||||
Acquisition | 1,180 | ||||
Impairment | |||||
Goodwill, balance | 7,821 | 6,641 | |||
Interactive (Gaming Operations) [Member] | |||||
Goodwill, balance | [1] | 3,543 | 4,828 | ||
Foreign currency adjustments | (10) | (182) | [1] | ||
Purchase accounting adjustment | |||||
Acquisition | 3,725 | ||||
Impairment | $ (3,500) | (3,533) | (4,828) | ||
Goodwill, balance | $ 3,543 | [1] | |||
[1] | Accumulated goodwill impairment charges for the Interactive segment as of September 30, 2019 were $8.4 million. |
Note 4 - Goodwill and Intangi_5
Note 4 - Goodwill and Intangibles - Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Indefinite-lived trade names | $ 12,126 | $ 12,126 |
Finite lived, accumulated amortization | (246,249) | (206,607) |
Intangible assets, gross value | 476,700 | 403,508 |
Intangible assets, net carrying value | $ 230,451 | 196,898 |
Minimum [Member] | ||
Intangible assets, useful life (Year) | 1 year | |
Maximum [Member] | ||
Intangible assets, useful life (Year) | 12 years | |
Trade Names [Member] | ||
Finite lived, gross value | $ 14,870 | 14,730 |
Finite lived, accumulated amortization | (13,209) | (10,681) |
Total, Amortization Expense | $ 1,661 | 4,049 |
Trade Names [Member] | Minimum [Member] | ||
Intangible assets, useful life (Year) | 5 years | |
Trade Names [Member] | Maximum [Member] | ||
Intangible assets, useful life (Year) | 7 years | |
Customer Relationships [Member] | ||
Finite lived, gross value | $ 219,788 | 188,772 |
Finite lived, accumulated amortization | (120,384) | (93,358) |
Total, Amortization Expense | $ 99,404 | 95,414 |
Customer Relationships [Member] | Minimum [Member] | ||
Intangible assets, useful life (Year) | 5 years | |
Customer Relationships [Member] | Maximum [Member] | ||
Intangible assets, useful life (Year) | 12 years | |
Contractual Rights [Member] | ||
Finite lived, gross value | $ 48,180 | 19,620 |
Finite lived, accumulated amortization | (8,888) | (14,367) |
Total, Amortization Expense | $ 39,292 | 5,253 |
Contractual Rights [Member] | Minimum [Member] | ||
Intangible assets, useful life (Year) | 1 year | |
Contractual Rights [Member] | Maximum [Member] | ||
Intangible assets, useful life (Year) | 7 years | |
Computer Software, Intangible Asset [Member] | ||
Finite lived, gross value | $ 162,391 | 151,055 |
Finite lived, accumulated amortization | (96,193) | (82,371) |
Total, Amortization Expense | $ 66,198 | 68,684 |
Computer Software, Intangible Asset [Member] | Minimum [Member] | ||
Intangible assets, useful life (Year) | 1 year | |
Computer Software, Intangible Asset [Member] | Maximum [Member] | ||
Intangible assets, useful life (Year) | 7 years | |
Intellectual Property [Member] | ||
Finite lived, gross value | $ 19,345 | 17,205 |
Finite lived, accumulated amortization | (7,575) | (5,830) |
Total, Amortization Expense | $ 11,770 | $ 11,375 |
Intellectual Property [Member] | Minimum [Member] | ||
Intangible assets, useful life (Year) | 10 years | |
Intellectual Property [Member] | Maximum [Member] | ||
Intangible assets, useful life (Year) | 12 years |
Note 4 - Goodwill and Intangi_6
Note 4 - Goodwill and Intangibles - Finite-lived Intangible Assets, Future Amortization Expense (Details) | Dec. 31, 2019USD ($) |
Amortization Expense [Member] | |
2020, Amortization Expense | $ 41,191 |
2021, Amortization Expense | 29,625 |
2022, Amortization Expense | 26,769 |
2023, Amortization Expense | 23,277 |
2024, Amortization Expense | 21,972 |
Thereafter, Amortization Expense | 36,199 |
Total, Amortization Expense | 179,033 |
Placement Fee Accretion [Member] | |
2020, Amortization Expense | 8,451 |
2021, Amortization Expense | 6,596 |
2022, Amortization Expense | 6,277 |
2023, Amortization Expense | 5,913 |
2024, Amortization Expense | 5,389 |
Thereafter, Amortization Expense | 6,666 |
Total, Amortization Expense | $ 39,292 |
Note 5 - Accrued Liabilities -
Note 5 - Accrued Liabilities - Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Total accrued liabilities | $ 34,840 | $ 26,659 |
Accrued Liabilities [Member] | ||
Salary and payroll tax accrual | 8,691 | 13,393 |
Taxes payable | 4,151 | 3,437 |
Current portion of operating lease liability | 2,175 | |
License fee obligation | 1,000 | 1,000 |
Placement fees payable | 8,346 | 2,490 |
Accrued other | $ 10,477 | $ 6,339 |
Note 6 - Long-term Debt (Detail
Note 6 - Long-term Debt (Details Textual) - USD ($) $ in Thousands | Oct. 05, 2018 | Feb. 08, 2018 | Dec. 06, 2017 | Jun. 06, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Gain (Loss) on Extinguishment of Debt, Total | $ (6,625) | $ (9,032) | |||||
Long-term Debt, Total | 524,727 | 527,883 | |||||
Write off of Deferred Debt Issuance Cost | $ 3,876 | $ 3,294 | |||||
AP Gaming I, LLC [Member] | The First Lien Credit Agreement [Member] | Revolving Credit Facility [Member] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 30,000 | ||||||
AP Gaming I, LLC [Member] | The First Lien Credit Agreement [Member] | Term Loan [Member] | |||||||
Debt Instrument, Face Amount | $ 30,000 | $ 65,000 | $ 450,000 | ||||
Debt Issuance Costs, Gross | 1,000 | ||||||
Gain (Loss) on Extinguishment of Debt, Total | $ (1,500) | $ (900) | |||||
Long-term Debt, Total | $ 513,000 | ||||||
Gains (Losses) on Restructuring of Debt | (1,200) | ||||||
Write off of Deferred Debt Issuance Cost | $ 400 | ||||||
Debt Instrument, Conditional Increase in Basis Spread on Variable Rate | 0.75% | ||||||
Debt Instrument, Additional Increase in Basis Spread on Variable Rate | 0.25% | ||||||
AP Gaming I, LLC [Member] | The First Lien Credit Agreement [Member] | Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 4.25% | 5.50% | |||||
Debt Instrument, Basis Floor on Variable Rate | 1.00% |
Note 6 - Long-term Debt - Sched
Note 6 - Long-term Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Total debt | $ 524,727 | $ 527,883 |
Less: Current portion | (6,038) | (5,959) |
Long-term debt | 518,689 | 521,924 |
First Lien Credit Facilities [Member] | Term Loan [Member] | ||
Total debt | 522,989 | 526,461 |
Equipment Long-term Note Payable and Finance Leases [Member] | Notes Payable, Other Payables [Member] | ||
Total debt | $ 1,737 | $ 1,422 |
Note 6 - Long-term Debt - Sch_2
Note 6 - Long-term Debt - Schedule of Long-term Debt (Details) (Parentheticals) - Term Loan [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
First Lien Credit Facilities [Member] | ||
Unamortized discount and costs | $ 9 | $ 10.9 |
First Lien Credit Facilities [Member] | ||
Effective interest rate | 5.20% | |
First Lien Credit Facilities [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Interest rate | 3.50% | 3.50% |
First Lien Credit Facilities [Member] | Base Rate [Member] | ||
Interest rate | 3.50% | 3.50% |
Note 6 - Long-term Debt - Sch_3
Note 6 - Long-term Debt - Scheduled Maturities of Long-term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
2020 | $ 6,038 | |
2021 | 6,005 | |
2022 | 5,768 | |
2023 | 5,470 | |
2024 | 510,446 | |
Thereafter | ||
Total scheduled maturities | 533,727 | |
Unamortized debt discount and debt issuance costs | (9,000) | |
Total debt | $ 524,727 | $ 527,883 |
Note 7 - Stockholders' Equity (
Note 7 - Stockholders' Equity (Details Textual) $ / shares in Units, $ in Millions | Feb. 27, 2018shares | Jan. 30, 2018USD ($)$ / sharesshares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018shares |
Stockholders' Equity Note, Stock Split, Conversion Ratio | 1.5543 | |||
Stock Issued During Period, Shares, New Issues | 1,537,500 | |||
Proceeds from Issuance Initial Public Offering | $ | $ 171.5 | |||
Common Stock, Shares, Issued, Total | 35,534,558 | 35,353,296 | ||
Reclassification From Liabilities to Additional Paid in Capital | $ | $ 1.3 | |||
Stock Repurchase Program, Authorized Amount | $ | $ 50 | |||
Management [Member] | ||||
Common Stock, Shares, Issued, Total | 170,712 | |||
IPO [Member] | ||||
Stock Issued During Period, Shares, New Issues | 10,250,000 | |||
Shares Issued, Price Per Share | $ / shares | $ 16 |
Note 8 - Write-downs and Othe_2
Note 8 - Write-downs and Other Charges (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Cost and Expense, Operating, Total | $ 6,912 | $ 8,753 | $ 4,485 | |
Goodwill, Impairment Loss | 3,533 | 4,828 | ||
Impairment of Intangible Assets, Finite-lived | 600 | |||
Gain (Loss) on Disposition of Assets, Total | (1,068) | (1,963) | (3,901) | |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 501 | 701 | ||
Write-off Prepaid Royalties | 700 | |||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Asset | 500 | |||
Game Titles [Member] | ||||
Impairment of Intangible Assets, Finite-lived | 500 | 1,300 | ||
Gain (Loss) on Disposition of Assets, Total | $ (500) | |||
Interactive (Gaming Operations) [Member] | ||||
Goodwill, Impairment Loss | $ 3,500 | 3,533 | 4,828 | |
Impairment of Intangible Assets, Finite-lived | 1,300 | |||
EGM [Member] | ||||
Goodwill, Impairment Loss | ||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | $ 500 | $ 700 |
Note 9 - Basic and Diluted Lo_2
Note 9 - Basic and Diluted Loss Per Share (Details Textual) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Weighted Average Number Diluted Shares Outstanding Adjustment, Total | 0 | 0 | 0 |
Restricted Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 616,751 | 125,249 | 77,715 |
Share-based Payment Arrangement, Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 629,866 | 849,660 | 405,774 |
Note 10 - Benefit Plans (Detail
Note 10 - Benefit Plans (Details Textual) $ in Millions | Jan. 30, 2018 | Apr. 28, 2014shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 16, 2018shares |
Defined Contribution Plan, Cost | $ | $ 1.4 | $ 1.2 | $ 1 | |||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 1.5543 | |||||
The 2014 Long-Term Incentive Plan [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award, Term | 10 years | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 2,253,735 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 423,268 | |||||
The 2018 Omnibus Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,607,389 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 518,771 |
Note 11 - Stock-based Compens_3
Note 11 - Stock-based Compensation (Details Textual) $ / shares in Units, $ in Thousands | Jan. 30, 2018 | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($) |
Stockholders' Equity Note, Stock Split, Conversion Ratio | 1.5543 | |||
Share-based Payment Arrangement, Expense | $ 9,001 | $ 10,933 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures, Total | shares | 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance | shares | 1,382,986 | 1,515,461 | ||
Share-based Payment Arrangement, Option [Member] | ||||
Share-based Payment Arrangement, Expense | $ 900 | $ 8,500 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 800 | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year 328 days | |||
Share-based Payment Arrangement, Option [Member] | Share-based Payment Arrangement, Tranche A [Member] | Maximum [Member] | Long-term Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | |||
Share-based Payment Arrangement, Option [Member] | Share-based Payment Arrangement, Tranche A [Member] | Minimum [Member] | Long-term Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 20.00% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||
Restricted Stock [Member] | ||||
Share-based Payment Arrangement, Expense | $ 8,100 | $ 2,400 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 11,900 | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years 292 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Threshold Share Price | $ / shares | $ 29.60 | |||
Restricted Stock [Member] | On Each of First Four Anniversaries of Date of Grant [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | |||
Performance Shares [Member] | ||||
Share-based Payment Arrangement, Plan Modification, Incremental Cost | $ 2,900 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance | shares | 629,866 | |||
Performance Shares [Member] | Share-based Payment Arrangement, Tranche B [Member] | Long-term Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Threshold, Internal Rate of Return Percentage | 20.00% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Threshold, Return on Investment Ratio | 2.5 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Threshold Share Price | $ / shares | $ 19.11 | |||
Performance Shares [Member] | Share-based Payment Arrangement, Tranche C [Member] | Long-term Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Threshold, Internal Rate of Return Percentage | 25.00% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Threshold, Return on Investment Ratio | 3 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Threshold Share Price | $ / shares | $ 22.93 |
Note 11 - Stock-based Compens_4
Note 11 - Stock-based Compensation - Valuation Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Expected dividend yield | |||
Expected volatility | 50.00% | 66.00% | |
Risk-free interest rate | 2.71% | 1.80% | |
Expected term (in years) (Year) | 6 years 109 days | 6 years 73 days |
Note 11 - Stock-based Compens_5
Note 11 - Stock-based Compensation - Stock Option Activity (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Options outstanding, number of options (in shares) | 1,515,461 | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 9.11 | |
Options outstanding, weighted average remaining contract term (Year) | 5 years 164 days | 6 years 208 days |
Options outstanding, aggregate intrinsic value | $ 4,793 | $ 22,125 |
Granted, number of options (in shares) | ||
Granted, weighted average exercise price (in dollars per share) | ||
Exercised, number of options (in shares) | (70,288) | |
Exercised, weighted average exercise price (in dollars per share) | $ 9.74 | |
Canceled or forfeited, number of options (in shares) | (62,187) | |
Canceled or forfeited, weighted average exercise price (in dollars per share) | $ 8.65 | |
Options outstanding, number of options (in shares) | 1,382,986 | 1,515,461 |
Options outstanding, weighted average exercise price (in dollars per share) | $ 9.10 | $ 9.11 |
Exercisable, number of options (in shares) | 1,192,671 | |
Exercisable, weighted average exercise price (in dollars per share) | $ 8.46 | |
Exercisable, weighted average remaining contract term (Year) | 5 years 69 days | |
Exercisable, aggregate intrinsic value | $ 4,527 |
Note 11 - Stock-based Compens_6
Note 11 - Stock-based Compensation - Stock Options Granted (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Weighted average grant date fair value (in dollars per share) | $ 12.63 | $ 5.31 |
Note 11 - Stock-based Compens_7
Note 11 - Stock-based Compensation - Restricted Stock Activity (Details) - Restricted Stock [Member] | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Outstanding, shares (in shares) | shares | 287,479 |
Outstanding, grant date fair value (in dollars per share) | $ / shares | $ 29.26 |
Granted, shares (in shares) | shares | 709,205 |
Granted, grant date fair value (in dollars per share) | $ / shares | $ 19.37 |
Vested, shares (in shares) | shares | (231,543) |
Vested, grant date fair value (in dollars per share) | $ / shares | $ 17.19 |
Canceled or forfeited, shares (in shares) | shares | (52,645) |
Canceled or forfeited, grant date fair value (in dollars per share) | $ / shares | $ 24.78 |
Outstanding, shares (in shares) | shares | 712,496 |
Outstanding, grant date fair value (in dollars per share) | $ / shares | $ 23.66 |
Note 12 - Income Taxes (Details
Note 12 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | |
Deferred Tax Assets, Valuation Allowance, Total | $ 40,857 | $ 41,004 | |
Deferred Tax Assets, Tax Credit Carryforwards, Foreign | 13,571 | 12,189 | |
Deferred Tax Assets, Tax Credit Carryforwards, Research | 4,530 | 6,313 | |
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | 200,000 | ||
Deferred Tax Assets, Operating Loss Carryforwards, Foreign | 10,800 | ||
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | 83,500 | ||
Unrecognized Tax Benefits, Ending Balance | 12,580 | $ 28,673 | 10,954 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 6,600 | ||
Decrease in Unrecognized Tax Benefits is Reasonably Possible | 3,000 | ||
Reduced in Income Tax Penalties and Interest | 1,500 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued, Total | 5,300 | ||
Business Combination, Indemnification Assets, Amount as of Acquisition Date | 9,300 | $ 4,200 | |
Tax Cuts and Jobs Act, Income Tax Expense (Benefit), Total | (8,100) | ||
Tax Cuts and Jobs Act, Change in Tax Rate, Income Tax Expense (Benefit), Total | (9,400) | ||
Tax Cuts and Jobs Act, Transition Tax for Accumulated Foreign Earnings, Income Tax Expense | (300) | 1,900 | |
Tax Cuts and Jobs Act, Foreign Tax Credit, Income Tax Expense | 200 | (2,800) | |
Tax Cuts and Jobs Act, Change in Deferred Tax Assets Valuation Allowance, Income Tax Expense | $ 100 | $ (16,600) |
Note 12 - Income Taxes - Provis
Note 12 - Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Domestic | $ 1,129 | $ (13,814) | $ (42,185) |
Foreign | (18,099) | (15,409) | (4,810) |
Loss before income taxes | $ (16,970) | $ (29,223) | $ (46,995) |
Note 12 - Income Taxes - Income
Note 12 - Income Taxes - Income Tax (Benefit) Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Federal | $ (2,726) | $ (773) | $ (250) |
State | 286 | 227 | 47 |
Foreign | (1,084) | (6,830) | 5,365 |
Total current income tax (benefit) expense | (3,524) | (7,376) | 5,162 |
Federal | 343 | 379 | (5,497) |
State | 49 | 48 | (372) |
Foreign | (2,317) | (1,428) | (1,182) |
Total deferred income (benefit) expense | (1,925) | (1,001) | (7,051) |
Income tax (benefit) expense | $ (5,449) | $ (8,377) | $ (1,889) |
Note 12 - Income Taxes - Reconc
Note 12 - Income Taxes - Reconciliation of Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2019Rate | Dec. 31, 2018Rate | Dec. 31, 2017Rate | |
Federal statutory rate | 21.00% | 21.00% | 35.00% |
Foreign rate differential | (2.90%) | (3.00%) | 1.50% |
Losses of foreign subsidiaries disregarded for US income tax | (1.30%) | (2.50%) | |
State income taxes, net of federal benefit | 2.90% | (0.80%) | (3.00%) |
Nondeductible loan costs | 0.50% | 1.40% | |
Nondeductible transaction costs | 0.70% | 1.10% | |
Impact of tax liquidation | 10.40% | ||
Tax indemnification charges | 7.90% | 9.50% | (1.30%) |
Stock Compensation | 1.00% | (1.40%) | |
Other differences | 4.10% | 2.70% | (2.70%) |
Withholding tax | 3.30% | 1.70% | 2.50% |
Tax credits | (2.40%) | (12.00%) | (2.10%) |
Uncertain tax positions | (26.00%) | (38.00%) | 7.30% |
Valuation allowance | 0.30% | 22.90% | 47.20% |
Rate change - impact of the Tax Act (Rate) | 1990.00% | ||
Repatriation tax - impact of the Tax Act (Rate) | (100.00%) | 410.00% | |
Tax credits - impact of the Tax Act | 0.60% | (6.00%) | |
Valuation allowance - impact of the Tax Act | 0.40% | (35.30%) | |
Effective tax rate | (32.10%) | (28.70%) | (4.00%) |
Note 12 - Income Taxes - Compon
Note 12 - Income Taxes - Components of Net Deferred Tax Assets (Liability) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accrued expenses | $ 2,411 | $ 3,042 |
Stock Compensation | 3,129 | 2,164 |
Foreign tax credits | 12,189 | 13,571 |
Net operating loss carryforwards | 46,872 | 43,637 |
Research and development credits | 6,313 | 4,530 |
Other | 6,391 | 4,492 |
Total deferred tax assets | 77,305 | 71,436 |
Valuation allowance | (41,004) | (40,857) |
Deferred tax assets, net of valuation allowance | 36,301 | 30,579 |
Prepaid expenses and other | (582) | (511) |
Intangible assets | (19,719) | (19,552) |
Property and equipment, net | (12,871) | (9,415) |
Deferred tax liabilities | (33,172) | (29,478) |
Net deferred tax assets (liabilities) | $ 3,129 | $ 1,101 |
Note 12 - Income Taxes - Unreco
Note 12 - Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Balance-beginning of year | $ 12,580 | $ 28,673 |
Acquisitions | 1,244 | |
Increases based on tax positions of the current year | 453 | 393 |
Decrease due to tax authority settlements | (10,457) | |
Decreases due to lapse of statute | (3,225) | (5,118) |
Increases based on tax positions of the prior years | 95 | 156 |
Decreases based on tax positions of the prior years | (670) | (1,065) |
Currency translation adjustments | 477 | |
Currency translation adjustments | (2) | |
Balance-end of year | $ 10,954 | $ 12,580 |
Note 13 - Commitments and Con_2
Note 13 - Commitments and Contingencies (Details Textual) $ in Millions | 3 Months Ended |
Sep. 30, 2019USD ($) | |
Insurance Claims [Member] | |
Loss Contingency Accrual, Provision | $ 1.6 |
Note 14 - Operating Segments (D
Note 14 - Operating Segments (Details Textual) | 12 Months Ended |
Dec. 31, 2019 | |
Number of Reportable Segments | 3 |
Note 14 - Operating Segments -
Note 14 - Operating Segments - Financial Information by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Revenue | $ 77,786 | $ 79,377 | $ 74,509 | $ 73,042 | $ 72,095 | $ 75,526 | $ 72,822 | $ 64,856 | $ 304,714 | $ 285,299 | $ 211,955 | |
Adjusted EBITDA | 146,062 | 136,206 | 106,841 | |||||||||
Loss on disposition of assets | 1,068 | 1,963 | 3,901 | |||||||||
Impairment of long lived assets | 5,343 | 6,089 | 1,214 | |||||||||
Fair value adjustments to contingent consideration and other items | 501 | 701 | ||||||||||
Depreciation and amortization | 91,474 | 77,535 | 71,649 | |||||||||
Accretion of placement fees(1) | [1] | 6,378 | 4,552 | 4,680 | ||||||||
Non-cash stock compensation | 9,001 | 10,933 | ||||||||||
Acquisitions and integration related costs including restructuring and severance | 3,338 | 3,644 | 2,936 | |||||||||
Initial public offering and secondary costs | 530 | 2,428 | ||||||||||
Legal and litigation expenses including settlement payments | 1,844 | 992 | 523 | |||||||||
New jurisdictions and regulatory licensing costs | 2,062 | |||||||||||
Non-cash charge on capitalized installation and delivery | 2,700 | 2,081 | 1,912 | |||||||||
Non-cash charges and loss on disposition of assets | 1,202 | |||||||||||
Other adjustments | 148 | (2) | 2,890 | |||||||||
Interest expense | 36,248 | 37,607 | 55,511 | |||||||||
Interest income | (163) | (207) | (108) | |||||||||
Loss on extinguishment and modification of debt | 6,625 | 9,032 | ||||||||||
Other expense (income) | 4,622 | 10,488 | (2,938) | |||||||||
Loss before income taxes | (16,970) | (29,223) | (46,995) | |||||||||
Electronic Gaming Machines, EGM [Member] | ||||||||||||
Revenue | 289,642 | 271,025 | 199,931 | |||||||||
Adjusted EBITDA | 144,718 | 137,371 | 107,785 | |||||||||
Table Products [Member] | ||||||||||||
Revenue | 10,194 | 7,651 | 4,065 | |||||||||
Adjusted EBITDA | 3,699 | 942 | (528) | |||||||||
Interactive (Gaming Operations) [Member] | ||||||||||||
Revenue | 4,878 | 6,623 | 7,959 | |||||||||
Adjusted EBITDA | $ (2,355) | $ (2,107) | $ (416) | |||||||||
[1] | Non-cash item related to the accretion of contract rights under development agreements and placement fees. |
Note 14 - Operating Segments _2
Note 14 - Operating Segments - Geographic Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue | $ 77,786 | $ 79,377 | $ 74,509 | $ 73,042 | $ 72,095 | $ 75,526 | $ 72,822 | $ 64,856 | $ 304,714 | $ 285,299 | $ 211,955 |
Long-lived assets | 108,729 | 94,639 | 108,729 | 94,639 | 87,909 | ||||||
UNITED STATES | |||||||||||
Revenue | 258,691 | 255,256 | 181,743 | ||||||||
Long-lived assets | 89,597 | 80,617 | 89,597 | 80,617 | 79,301 | ||||||
Non-US [Member] | |||||||||||
Revenue | 46,023 | 30,043 | 30,212 | ||||||||
Long-lived assets | $ 19,132 | $ 14,022 | $ 19,132 | $ 14,022 | $ 8,608 |
Note 15 - Leases (Details Textu
Note 15 - Leases (Details Textual) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Operating Lease, Right-of-use Asset, Accumulated Amortization | $ 1.5 | |
Finance Lease, Right-of-use Asset, Accumulated Amortization | 0.7 | $ 0.4 |
Lessee, Operating Lease, Lease Not yet Commenced, Liability, Payments, Due, Total | $ 14.3 |
Note 15 - Leases - Operating an
Note 15 - Leases - Operating and Finance Assets and Liability Balances (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating leases, ASC 842 | $ 11,543 | ||
Finance leases, ASC 840 | 1,344 | ||
Total leased assets, net, ASC 842 | 13,358 | ||
Operating leases, non-current ASC 842 | 11,284 | ||
Total lease liability, ASC 842 | 15,196 | ||
Total lease liability, ASC 840 | 1,259 | ||
Operating lease assets [Member] | |||
Operating leases, ASC 842 | [1] | 11,543 | |
Property and Equipment, Net [Member] | |||
Finance leases, ASC 842 | [2] | 1,815 | |
Finance leases, ASC 840 | [2] | 1,344 | |
Accrued Liabilities [Member] | |||
Operating leases, current ASC 842 | 2,175 | ||
Current Maturities of Long-term Debt [Member] | |||
Finance leases, current ASC 842 | 651 | ||
Finance leases, current ASC 840 | 408 | ||
Operating Lease Liabilities, Long-term [Member] | |||
Operating leases, non-current ASC 842 | 11,284 | ||
Long-term Debt [Member] | |||
Finance leases, non-current ASC 842 | $ 1,086 | ||
Finance leases, non-current ASC 840 | $ 851 | ||
[1] | Operating lease assets are recorded net of accumulated amortization of $1.5 million as of December 31, 2019. | ||
[2] | Finance lease assets are recorded net of accumulated amortization of $0.7 million and $0.4 million as of December 31, 2019 and 2018, respectively. |
Note 15 - Leases - Lease Cost (
Note 15 - Leases - Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating lease cost | $ 2,390 | ||
Total Finance Lease cost: | 691 | 314 | |
Total Lease Cost, ASC 840 | $ 502 | ||
Total Lease Cost | $ 3,081 | 314 | |
Weighted average remaining lease term (years), operating lease (Year) | 7 years | ||
Weighted average discount rate, operating lease | 5.90% | ||
Weighted average remaining lease term (years), finance lease (Year) | 2 years 109 days | ||
Weighted average remaining lease term (years), finance lease ASC 840 (Year) | 2 years 255 days | ||
Weighted average discount rate, finance lease | 2.60% | ||
Weighted average discount rate, finance lease ASC 840 | 2.60% | ||
Operating cash flows from operating leases | $ 2,613 | ||
Operating cash flows from finance leases | 42 | ||
Operating cash flows from finance leases, ASC 840 | $ 23 | 19 | |
Financing cash flows from finance leases | 630 | ||
Financing cash flows from finance leases, ASC 840 | 436 | 280 | |
Selling, General and Administrative Expenses [Member] | |||
Operating lease cost | 1,578 | ||
Research and Development Expense [Member] | |||
Operating lease cost | 312 | ||
Cost of Gaming Operations [Member] | |||
Operating lease cost | 500 | ||
Depreciation and Amortization [Member] | |||
Depreciation of leased assets | 649 | 295 | |
Depreciation of leased assets, ASC 840 | 479 | ||
Interest Expense [Member] | |||
Interest on lease liabilities | $ 42 | $ 19 | |
Interest on lease liabilities, ASC 840 | $ 23 |
Note 15 - Leases - Maturity of
Note 15 - Leases - Maturity of Operating and Financing Leases Liabilities (Details) $ in Thousands | Dec. 31, 2019USD ($) | |
2020, operating leases | $ 2,907 | [1] |
2020, financing leases | 702 | |
2020, operating and financing leases | 3,609 | |
2021, operating leases | 2,486 | [1] |
2021, financing leases | 625 | |
2021, operating and financing leases | 3,111 | |
2022, operating leases | 1,957 | [1] |
2022, financing leases | 384 | |
2022, operating and financing leases | 2,341 | |
2023, operating leases | 1,825 | [1] |
2023, financing leases | 86 | |
2023, operating and financing leases | 1,911 | |
2024, operating leases | 1,808 | |
2024, financing leases | 4 | |
2024, operating and financing leases | 1,812 | |
Thereafter, operating leases | 5,612 | [1] |
Thereafter, financing leases | ||
Thereafter, operating and financing leases | 5,612 | |
Total lease payments, operating leases | 16,595 | [1] |
Total lease payments, financing leases | 1,801 | |
Total lease payments, operating and financing leases | 18,396 | |
Less: interest, operating leases | 3,136 | [1] |
Less: interest, financing leases | 64 | |
Less: interest, operating and financing leases | 3,200 | |
Present value of lease liabilities, financing leases | 1,737 | |
Present value of lease liabilities, operating and financing leases | 15,196 | |
Accrued liabilities and Operating Lease Liabilities, Long-term [Member] | ||
Present value of lease liabilities, operating leases | $ 13,459 | [1] |
[1] | Operating leases payments exclude $14.3 million of legally binding minimum lease payments for leases signed but not commenced as of December 31, 2019. |
Note 15 - Leases - Future Minim
Note 15 - Leases - Future Minimum Lease Payments Under ASC 840 (Details) $ in Thousands | Dec. 31, 2018USD ($) |
2019 | $ 2,817 |
2020 | 2,716 |
2021 | 2,212 |
2022 | 1,470 |
2023 | 1,121 |
Thereafter | 5,260 |
Total | $ 15,596 |
Note 16 - Selected Quarterly _3
Note 16 - Selected Quarterly Financial Data (Unaudited) - Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Revenue | $ 77,786 | $ 79,377 | $ 74,509 | $ 73,042 | $ 72,095 | $ 75,526 | $ 72,822 | $ 64,856 | $ 304,714 | $ 285,299 | $ 211,955 | |
Gross profit[1] | [1] | 54,945 | 55,728 | 53,674 | 53,899 | 51,138 | 52,923 | 53,701 | 48,599 | |||
Income from operations | 7,815 | 5,579 | 1,995 | 8,348 | 1,918 | 10,110 | 11,024 | 2,238 | 23,737 | 25,290 | 14,502 | |
Net (loss) income attributable to PlayAGS, Inc. | $ 1,423 | $ (5,536) | $ (7,557) | $ (82) | $ (10,345) | $ 4,347 | $ (5,310) | $ (9,538) | $ (11,752) | $ (20,846) | $ (45,106) | |
Basic (loss) income per share (in dollars per share) | $ 0.04 | $ (0.16) | $ (0.21) | $ (0.29) | $ 0.12 | $ (0.15) | $ (0.30) | $ (0.33) | $ (0.61) | $ (1.94) | ||
Diluted (loss) income per share (in dollars per share) | $ 0.04 | $ (0.16) | $ (0.21) | $ (0.29) | $ 0.12 | $ (0.15) | $ (0.30) | $ (0.33) | $ (0.61) | $ (1.94) | ||
[1] | Gross profit is total revenues less cost of gaming operations and cost of equipment sales, exclusive of depreciation and amortization. |
Schedule I - Condensed Financ_3
Schedule I - Condensed Financial Information of the Registrant (Details Textual) - USD ($) $ in Thousands | Jan. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Long-term Debt, Total | $ 524,727 | $ 527,883 | ||
Write off of Deferred Debt Issuance Cost | 3,876 | $ 3,294 | ||
APIC, Share-based Payment Arrangement, Option, Increase for Cost Recognition | $ 685 | $ 774 | ||
Common Stock, Shares, Issued, Total | 35,534,558 | 35,353,296 | ||
Management [Member] | ||||
Common Stock, Shares, Issued, Total | 170,712 | |||
Parent Company [Member] | ||||
Write off of Deferred Debt Issuance Cost | $ 3,037 | |||
APIC, Share-based Payment Arrangement, Option, Increase for Cost Recognition | $ 9,000 | 10,900 | ||
Adjustments To Additional Paid In Capital Initial Public Offering | $ 4,800 | |||
Shares and Related Proceeds from IPO Reclassified from Other Long-term Liabilities to APIC | $ 1,300 | |||
Parent Company [Member] | Management [Member] | ||||
Common Stock, Shares, Issued, Total | 170,712 | |||
Payment in Kind (PIK) Note [Member] | Parent Company [Member] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 11.25% | |||
Extinguishment of Debt, Amount | $ 152,600 | |||
Long-term Debt, Total | 115,000 | |||
Debt Instrument, Accrued Interest | 1,400 | |||
Write off of Deferred Debt Issuance Cost | $ 3,000 |
Schedule I - Condensed Financ_4
Schedule I - Condensed Financial Information of the Registrant - Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Cash and cash equivalents | $ 13,162 | $ 70,726 | ||
Prepaid expenses | 2,983 | 3,566 | ||
Total current assets | 115,596 | 150,743 | ||
Other long-term assets | 9,176 | 12,347 | ||
Total assets | 762,378 | 731,342 | ||
Total current liabilities | 56,476 | 47,439 | ||
Total liabilities | 628,594 | 595,538 | ||
Common stock | 355 | 353 | ||
Additional paid-in capital | 371,311 | 361,628 | ||
Retained earnings | (235,474) | (222,403) | ||
Accumulated other comprehensive loss | (2,408) | (3,774) | ||
Total stockholders’ equity | 133,784 | 135,804 | $ (27,935) | $ 16,428 |
Total liabilities and stockholders’ equity | 762,378 | 731,342 | ||
Parent Company [Member] | ||||
Cash and cash equivalents | 282 | 13,549 | ||
Intercompany Receivables | 8 | |||
Prepaid expenses | 26 | 49 | ||
Total current assets | 316 | 13,598 | ||
Investment in subsidiaries | 134,811 | 122,972 | ||
Other long-term assets | 8 | |||
Total assets | 135,135 | 136,570 | ||
Intercompany payables | 1,351 | 766 | ||
Total current liabilities | 1,351 | 766 | ||
Total liabilities | 1,351 | 766 | ||
Common stock | 355 | 353 | ||
Additional paid-in capital | 371,311 | 361,628 | ||
Retained earnings | (235,474) | (222,403) | ||
Accumulated other comprehensive loss | (2,408) | (3,774) | ||
Total stockholders’ equity | 133,784 | 135,804 | ||
Total liabilities and stockholders’ equity | $ 135,135 | $ 136,570 |
Schedule I - Condensed Financ_5
Schedule I - Condensed Financial Information of the Registrant - Condensed Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue | $ 77,786 | $ 79,377 | $ 74,509 | $ 73,042 | $ 72,095 | $ 75,526 | $ 72,822 | $ 64,856 | $ 304,714 | $ 285,299 | $ 211,955 |
Selling, general and administrative | 61,785 | 63,038 | 44,015 | ||||||||
Total operating expenses | 280,977 | 260,009 | 197,453 | ||||||||
Income from operations | $ 7,815 | $ 5,579 | $ 1,995 | $ 8,348 | $ 1,918 | $ 10,110 | $ 11,024 | $ 2,238 | 23,737 | 25,290 | 14,502 |
Interest expense | 36,248 | 37,607 | 55,511 | ||||||||
Loss on extinguishment and modification of debt | (6,625) | (9,032) | |||||||||
Other (Expense) Income | (4,622) | (10,488) | 2,938 | ||||||||
Income tax (expense) benefit | (5,449) | (8,377) | (1,889) | ||||||||
Net loss attributable to PlayAGS, Inc. | (11,521) | (20,846) | (45,106) | ||||||||
Foreign currency translation adjustment | 1,366 | 29 | 743 | ||||||||
Total comprehensive loss | (10,386) | (20,817) | (44,363) | ||||||||
Parent Company [Member] | |||||||||||
Intercompany revenue | 8 | ||||||||||
Revenue | 8 | ||||||||||
Selling, general and administrative | 25 | 30 | 286 | ||||||||
Total operating expenses | 25 | 30 | 286 | ||||||||
Income from operations | (17) | (30) | (286) | ||||||||
Equity in net loss of subsidiaries | (11,807) | 16,396 | 28,302 | ||||||||
Interest expense | 1,383 | 16,518 | |||||||||
Loss on extinguishment and modification of debt | 3,037 | ||||||||||
Other (Expense) Income | 72 | ||||||||||
Loss before income taxes | (11,752) | (20,846) | (45,106) | ||||||||
Income tax (expense) benefit | |||||||||||
Net loss attributable to PlayAGS, Inc. | (11,752) | (20,846) | (45,106) | ||||||||
Foreign currency translation adjustment | 1,366 | 29 | 743 | ||||||||
Total comprehensive loss | $ (10,386) | $ (20,817) | $ (44,363) |
Schedule I - Condensed Financ_6
Schedule I - Condensed Financial Information of the Registrant - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net loss | $ (11,521) | $ (20,846) | $ (45,106) |
Amortization of deferred loan costs and discount | 91,474 | 77,535 | 71,649 |
Payment-in-kind interest payments | (37,624) | (2,698) | |
Payment-in-kind interest capitalized | 15,935 | ||
Write off of Deferred Debt Issuance Cost | 3,876 | 3,294 | |
Prepaid expenses | 715 | (895) | (599) |
Accounts payable and accrued liabilities | (6,827) | (6,063) | 8,451 |
Net cash provided by (used in) operating activities | 87,989 | 45,511 | 44,008 |
Net cash (used in) provided by investing activities | (127,932) | (70,114) | (120,811) |
Repayment of seller notes | (12,401) | ||
Repayment of senior secured credit facilities | (115,000) | (410,655) | |
Proceeds from employees in advance of common stock issuance | 25 | ||
Repurchase of shares | (1,320) | ||
Proceeds from issuance of common stock | 176,341 | ||
Proceeds from stock option exercise | 685 | 774 | |
Net cash (used in) provided by financing activities | (17,683) | 76,066 | 78,054 |
(Decrease) increase in cash and cash equivalents | (57,622) | 51,462 | 1,265 |
Cash, cash equivalents and restricted cash, beginning of period | 70,804 | 19,342 | 18,077 |
Cash, cash equivalents and restricted cash, end of period | 13,182 | 70,804 | 19,342 |
Parent Company [Member] | |||
Net loss | (11,752) | (20,846) | (45,106) |
Amortization of deferred loan costs and discount | 479 | ||
Payment-in-kind interest payments | (37,624) | (1,108) | |
Payment-in-kind interest capitalized | 15,933 | ||
Write off of Deferred Debt Issuance Cost | 3,037 | ||
Prepaid expenses | 23 | 5 | (14) |
Intercompany payable/receivable | 570 | 365 | 306 |
Accounts payable and accrued liabilities | (36) | ||
Net cash provided by (used in) operating activities | 648 | (38,667) | (1,244) |
Investment in subsidiaries | (13,280) | (12,100) | (7,965) |
Distributions received from subsidiaries | 8,084 | ||
Net cash (used in) provided by investing activities | (13,280) | (12,100) | 119 |
Repayment of seller notes | (6,870) | ||
Repayment of senior secured credit facilities | (115,000) | ||
Proceeds from employees in advance of common stock issuance | 25 | ||
Repurchase of shares | (1,320) | ||
Proceeds from issuance of common stock | 176,341 | ||
Proceeds from stock option exercise | 685 | 774 | |
Net cash (used in) provided by financing activities | (635) | 62,115 | (6,845) |
(Decrease) increase in cash and cash equivalents | (13,267) | 11,348 | (7,970) |
Cash, cash equivalents and restricted cash, beginning of period | 13,549 | 2,201 | 10,171 |
Cash, cash equivalents and restricted cash, end of period | $ 282 | $ 13,549 | $ 2,201 |
Schedule II - Valuation and Q_3
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Balance at the beginning of period | $ 40,857 | $ 33,774 | $ 28,211 |
Charged to tax expense/(benefit) | 50 | 6,814 | 5,557 |
Purchase accounting adjustments | 65 | 269 | |
Impact of foreign currency exchange rate | 32 | 6 | |
Balance at the end of period | $ 41,004 | $ 40,857 | $ 33,774 |