AGS - Earnings call transcript Q4 2017

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day and welcome to the AGS Fourth Quarter and Year End 2017 Earnings Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to AGS's Chief Marketing Officer and Executive Vice President of Investor Relations, Julia Boguslawski. Please go ahead.

Julia Boguslawski

Thank you, and good afternoon everyone. quarter year fourth call. earnings AGS's to and XXXX full conference Welcome me CEO; Lopez, are Kimo With David and today Akiona, CFO. slide the full We financial investor relations be a presentation key our our posted investors.playags.com. operational found highlights on for XXXX fourth year and website, quarter which can reviewing and

financial call Safe outlook. quickly in forward-looking and is other full includes or forward-looking XXXX or Today's disclosures. our performance, characterizations make today. to materially projections of on This our provide these future expressed that based I will expectations, market Harbor. regarding quarter Now a Actual we you to events fourth no including financial forward-looking is our obligation addition those may conference cover the and differ from statements projections update conditions to Any results call assumptions with future information statement statements. year refer in statements

that materially release please actual in of information cause results perspective section on about more our we annual issued differ titled XXXX, that documents to Factors. factors refer Risk as today, XX, and in as particularly report to risks For stated our XX-K well these the statements, described may the forward-looking Form from January earnings

ongoing issued in financial turn be over for the substitute that, more results our found in With for I'd for Our provides between not today. and Lopez. these evaluating release metrics or be that reported non-GAAP to to and with information. commentary an like our investors should results measures. reconciliations financial GAAP, prepared trends. from, measures earnings to SEC considered additional can include call to filings Please refer today operating accordance the David GAAP, in will information the as also with in our non-GAAP financial non-GAAP use measures believe These We use of isolation tool a for

David Lopez

January Hello, XX, earnings everyone on public since call XXXX. first and our going welcome to

our turn operational year an please providing quarter nearly a of to along year-over-year start the that to that fiscal by category; metrics. a of initiatives. growth name highs. every in Slide year revenue, the Slide guidance and overview both, by of EBITDA some X. slide our adjusted fourth of pleased revenue recurring a EGM For annual and by announce across of some fourth review XXXX grew deck, to soared million, revenue, with strategic up drivers QX and XX% records brief highlights last all key over and close punctuated performance was the units approximately the on term I'm those to approximately using our X longer filed out EBITDA, business table up new shows view and were $XX.X XX% to I'll I'll $XX.X outlook update million quarter year. with few,

premium record pleased report we we and the recurring the XX% by were Although that year-over-year. grew achieved Orion million in year. the our cabinet, of In of and Rocket second cabinet, Portrait the in of our acquisitions from Gaming the $XX.X EBITDA revenue revenue sales also double-digit half our assets tremendous underscored gains to the ICON in These continued and fourth performance which revenue quarter, of strategic growth the record I'm core of inclusion Bet achieved

XX% our of EBITDA million million revenue which grew of quarter year-over-year. for cabinet in For milestones industry the $XXX on major proud Orion are which We're where received performance of we the listed innovation. launch in the product and X several XXXX to-date, include the fourth achieved XX% to many and $XXX which Slide our awards most year the first of total was full year approximately eventful XXXX, year-over-year quarter Adjusted XX% an in successful Portrait grew ending recurring.

XXXX a at in over the level recognized and X% second according national the one chip share what sold positive And year brightest AGS half Our broken emerging XXXX. interactive sold work. making the EBITDA fiscal corporate of achieved the over to territory with we AGS record for places was which finally, in and we've with in best Xx We in ended tables is of X,XXX a two to QX December of culture business, respectively. and the EGMs [indiscernible].

our save XXXX successful expense annually. term $X In we mentioned, million followed over initial bang, in immediately a addition loan to a I completing milestones by public with to started offering XXXX interest the repricing

way initiatives always our on quarter. our Our been the that, continue execute drive and shareholders. an this strategic focus new segment has performance value grow to to responsible on provide long-term for With growth I'll sustainable to our we update for and a now in company creation

Turning of yield recurring footprint acquisition EGM of Class units, to-date. on we Gaming's gains. our our Nearly recurring year recurring a the Rocket efforts the largely from million in XX,XXX $X.X XX% segment were Approximately X X,XXX units with ended approximately Slide EGM year-over-year. of came driven optimization the of fourth total to quarter by X, X,XXX XXXX's up base revenue added

single us protect products. What's we loyal as sold our our to field million up base, them total about the providing is approximately orders a recurring the latest units legacy a the units. than sales as that where few. more it Orion's performances that on period. and year just property XXXX Arizona, Indiana of grow products. drove wasn't performing are year we We and X,XXX to for upgraded Nevada, just Orion XXX this over XX% two has placed example XX $XX.X the our XXX% were ICONs. was in sales We revenue is product ICON's great customers support most units see or why EGMs of the this our Orion EGM sizeable you at of plenty volume; signs by people them me, addition, high profitable for of notable everywhere long-term Roughly down. with and a no more prior California, That's slow such and ask order a one a EGMs, quarter, answer revenue XXX were Iowa moment largest is quarter This to initiative when ahead to the my placing by and runways in for Louisiana, Portrait of sold In mostly for in beyond. and the headlined about machines still well new and the that. these name units Mississippi, the It's with rest serves in and

and into titles Orion market number lease of performance house game Portrait's online Xtreme house installed than XX% the Dragon, QX a and Dragon feel are really casino yet on Orion year with this XX% around The XX% X good AGS's had As been consistently and the has all top owned games two content survey Jack week. we these performers Xtreme Jackpots. to Average every Dragons start launch River We we and more Funa-Funu titles sold, for have [ph] Portrait. QX, our over a Xx suppliers. performance that XX on and of Gold Red to Orion to Jackpots non-Big highlighted significant is come average, the and are flat trial. off X,XXX roughly Xtreme X.Xx average been and installing on best additional including and Fireball, plan leading is of our at

us these how spot help performing the out aristocrat. after above positions but think game performance the content And house that stayed we high that exactly will the of second taking rest tell categories. on continue these should I average of the leased we to predict surveys maintain both Xx can year target top Our fare of you put in one

the were Moving good due ranging products to high from largest fourth in premiums on in to in that In million contributors the game about large the marketplace games, contributions to Buster being assets declined and XXX% our bets, the quarter from Spin achieving with X,XXX XX% in of table X; the side new different had Bonus and the block assets $X.X that the quarter quarter to Slide approximately new all of Blackjack the a the Cable In milestone We've recurring we in EBITDA we by with in addition and and and Jackpot Match positive the important our Revenue and Blackjack. progressives nearly signage. Bet starting Bet recognizing assets Blackjack and cable a dye Units Royal part contributed total. reached the highs progress, been the are of fourth installed table October. integrating In segment the Bet traction. making showing chase quarter market X, flush in Super acquired an a in X, full business

very popular product up an slots seasonality from per Just Stacks the has The progressive is revenue main widely yesterday in the QX approval by of hit feature jackpot BXB business. to in the just efforts adoptive by with revenue jurisdictions. been received year-over-year, nearly our all revenue XX% as that years. stacks play in GOI Casino This received newly for X-level marketing Like for in Average phase launched our significant $X.XX improvement XX Top active holiday progressive stability as Journals quarter many and with up in engagement turn to were to innovative player must revenue we continued on system benefiting on and year-over-year. as becoming spend which XX% as see spike and We you QX in or QX increased Most XXXX. December even marketing in $X.X the corner was well daily reporting tables driver optimization Slide positive can and system of is million on expand our Awards we attention retention. user the in breakeven XXXX our recurring X. X% and Gaming which [ph]. BXC ARPDAU fiscal EBITDA reported interactive to increased Ad strong EBITDA XXXX EBITDA we Innovative Technology due in compared was Product approximately results also of in optimizing multiple

including slots launched in and online [ph]. Gorilla, Guard quarter the Golden Jackpots Buffalo Great New

to presence continue existing have In customers for many LAN-based on AGS with significant casino and a are fruitful looking have addition, floors we their of who solutions. social meetings our

seeing we call overall activity, sales a have level of interest our the Kimo materialize With few to we With results. agreements in I year. throughout financial discussion for are over now will the the believe we hand works a of the will the that that, and

Kimo Akiona

Thanks, David and afternoon, everyone. good

were appendix quarter impressive earlier, the noted summary. in Slide a As for year full the David provide results and and comprehensive XX operational our

EBITDA recent million installed our by quarter increased annual million the base, table were total to from from fourth quarter the for million interactive. equipment as interactive. up prior and to XX% our day XXXX third substantial that was the Total $XX.X that XX% a decrease back Rocket increase revenues For The increased $X.X fuelled compared Gaming year opposed domestic for primarily included quarter the million timing by was and were in million Show fourth our product both optimized quarter The $X.X RPD. our In fourth per in $X.X XX% as the million. the of as or period. products quarter table four EGM adjusted revenue as of also which for X, XXXX. primarily during in million increase revenue each an spend $X.X table revenue place segment our revenue in the $X.X primarily EBITDA Revenue table EGMs, was products also were EGM is December to recurring to the approximately during on for on as to acquisition fourth increase well Total segment XXXX EGM and completed from interactive in the the increase Bet acquisition increased revenues acquisition of completed or assets sales $X.X XXXX, in of in $XX.X which increase on $XX.X well took from due of was that from The in recurring quarter million margin revenues, XX% products user GXE EGM and increased August. $X.X million increased from XXXX adjusted million

year-over-year. installed substantial fourth in increase year the record total EGM a equipment XX% than revenues. or domestic lower our and increase in carries that quarter $XX.X due our AGS off million revenues leasing EGM fourth Similar quarter, increase our EGM revenues table RPD, margin product business. equipment to sales the and as revenue grew increased sales and base to which for well capped million The in in up an $XXX with a As increase

user $XX.X acquisition growth, increased revenues, For year-over-year. a revenue year, the attributable optimized growth EBITDA as total million at that EBITDA the total in in was product for spend year record well as adjusted adjusted the million was The XX% or primarily in EGM table $XXX.X increase segments to interactive.

revenue was compared to For our the total lower is XX% large equipment adjusted sales decrease for leasing XXXX, in carries as in year, XX% EGM EBITDA increase business. the attributable the margin than XXXX to margins which

was RPD driven fourth Nevada, roll out primarily optimization for and new remaining to in of gaming in increase Turning The over well primarily XX% revenue to by increased unit initiative, Domestic to Texas, to Approximately quarter asset million. X,XXX led increases organic increase reflects the increased year-over-year quarter $XX.X was X,XXX units quarter Gaming domestic operations grew EGM acquisition, compared by from our XX.X% by XXXX increase of Portrait XX.X%. larger as the record premium Florida our or by that as a $XX.XX fourth segment; cabinet. the our the the California. a the Rocket installed fourth Orion and also the of base

many million XX% grew international compared at XXX to which Revenues slightly from an for to at fourth X prefer million cabinet, in sales equipment our to $XX.X the sequential $X.X X% units ICON our of average decrease units the sold The contributing average our of in offset at success sold which an premium the quarterly On that by or units rather quarter quarter to sales pricing XXX international the sale a released a basis, installed Orion also XXX $X.XX included cabinet. Class or base in quarter last We as units of the over the the of sales by of customer. average as the as cabinet premium our to our price Portrait sales down in XXX success our was Orion or Portrait single driven Unit highest and EGMs. sales than price our quarterly XXXX. growth third customers Our grew market buy due lease or represents well year-over-year significant year penetrating of increased to sales sales by unit $XX,XXX. $XX,XXX XX% unit represented were was a price in XXX% continued revenue EGM RPD. ever fourth increase continued newly

products; in increased XXX million Side nearly units In primarily well EBITDA Buster Bet increased positive base well quarter year-over-year. which product million X,XXX nearly Now as as an contributed by organic due in Bet, to Blackjack. driven units, of the $X.X In Side year-over-year quarter was by in end of installed revenues primarily progressives turning to most Bets. $X.X The table and notably, approximately million of acquisition, product as table XXX in at as to million $X growth revenues table both our saw growth Bet $X.X from The the which fourth segment nearly first increase quarter the

as initiative spend for mentioned our are David focused to flat leveraging quarter at to in for the This interactive, on And business. For to remained relatively BXC continue relationships LAN-based $X.X we quarter. BXB revenues breakeven order business. optimization user as optimize acquisition million we grow EBITDA near our the allowed our in achieve us previously,

capital Moving cash debt update is total structure debt net December XXXX. and as $XXX million to equivalents of a which was principal X; Slide our total of cash amount XX, less on

of During the we total Gaming assets. fourth as the the allotment year of settlement to acquisition underwriter's $XX exercise end. our in a notes fund the result the quarter subsequent and the additional all by term to And XXXX, loans of in million of the full Rocket [indiscernible] primarily debt option increased IPO,

million $XX.X over loan over maintenance which corporate basis million million. $X.X interest CapEx expenditures and February, intangible cash for to $XX.X million the XXX decreased million were total by Capital Our for million full pro from million. fourth able approximately CapEx. and our CapEx, $XX.X reprice of reduce points million successfully growth for lean In to for million for $XX.X LIBOR comprised we're XXX our annual basis $X.X the will quarter for also expenses machine The million debt XXXX term $X $X.X net CapEx, to was year. by forma points $XXX first $XXX

income strategic recorded which And note, income key $X.X as team. our we will installed The income rate corporate And fourth R&D we federal of as a previous further David to XX% during tax extend federal base, do as for a this. continue well our expectations due the closing not non-cash and our is I to EGM reminder, strategy consistent tax flow cash one replaced the now base, tax at advantages tax and pursue as to invest pay new to final With our in our federal reform liabilities tax our our forward, remarks our run prioritize of free currently tax deferred optimize we the level taxes U.S. turn reform installed benefit benefit a back XXXX. XX% call of through on XXXX. in capital cash EGM to that, opportunities tax helps Moving allocation will to corporate grow to remain the tax primarily high provision that represents our rate. income quarter existing for million revaluation the

David Lopez

year XXXX Kimo. great start off of listed already Slide feel outlined our few and on levers good the to as high Thanks, growth we beyond. very is level X. about and I for this a

X% the The Maryland in I'll penetration and to very still few. our are the year and plan Orion talk us first share strategic have content There to a Portrait release is share. about of feel Louisiana, market cabinet on continued of some that for for that York titles of X best to come. name lot Portrait securing Orion a yet New initiative numbers of is markets we off recent California, Slide to XX chip increase shows opportunity and entry to grow are this our significant banks early ICON. room based Nevada, additional and penetration We Mississippi, the of

development R&D Sydney Our months that our including continued the game current to and opened new ensuring in X future vital in are investments launches. cabinet long-term success studio our ago of

market games. is, The and entry second initiative for new table EGMs

within making we Red reported products should Ohio we'll that the we the Ohio days plan shipments in also license of some year. month and last place commercial next our ICON first Just casinos Big to [ph], be and in we XX received [ph] table in Orion, products place in to our

early in and stages and We approval will the in and Colorado promising through in We're these in future. getting are feel our mid-year. hopefully, Pennsylvania jurisdictions currently the and our be going an also process near to good Ontario ramp our rollout expect of We Orion in sometime Alberta this about Massachusetts licenses year license XXXX. believe

demand we with Our sales team the that us up is this in story telling markets more are products AGS point. have pent these given much people familiar that all and at

growth. The initiative new third drive products on centers to

categories offering the the as cabinet to in floor. we we and [ph] a which Slide product rest the of Flint wide, fulfilling an the in happen us ago, initial a core new provide format the approximately weeks went At X cabinet it's on is launch and Orion enabled titles [indiscernible] May. XX-inches this as design picture Orion at footprint for off full sits you ideal and see positioning We players look will we in our that fastest plus XX will which and live throughout category preview X. internal trial commercial sidelines evaluate the Just forward field Orion's builds XX-inches premiums installed to our off XXXX. tall and performance smart plan Flint This service new core expect new configuration is a with [ph] to growing on between floor. unique

Golden Connecticut like distribution Buster Bet the Bonus [ph]. seeing Mexico we only existing Jersey, grow of like and first Woods to are but half not continued in for Block Fox tables, bonus In Nugget we more be will Blackjack Chase drivers believe and new Dye the [ph]. as and For and placements assets, of their year as Ohio, Flush spend momentum from well will New locations footprints and our growth and spend markets for

various half of shuffler, desk second QX we then shuffler single like we the look into forward GOI labs approval to rollout the year anticipated in the the stacks jurisdictions. launch planned followed submit a our highly to For is bench for card business as unit BXB move believe production. expect and of for interactive into a drive by will with extremely our additional April in subsequent also newly growth in XXXX. Interest in high us Nevada in We launched push early to

agreements for on third-party additional our several options more have BXB and to provide other providers working signed the game customers. content we're integrating works We with in

currently our will this XXXX execution, We drive XXXX and the are believe beyond. towards developing money real strategy of backend also gaming for opportunities we

the For our international final expansion. highlights XXXX initiative for for opportunities

cabinet in touched Just ground last video at we make month month these local our Philippines. The that their units halls. will expect bingle Later [ph] several initial this debut gambling

as acceptance will that selective always lower potential drive to we of us about units for market believe made and participation further because positive, given the recurring revenue. which which Brazil of half for Assuming Philippines sense to Live development and ramp the of were second We model The year. the enter helps Go the the international cabinet in jurisdictions

of at have did approval stopped. that the for not the on revised of out wait is just will avenues apparent regulated committee; are which for week has to gaming we Brazil it several for incentive are of the process update interest an considerable to bill this received make being that Speaking legislative There out. but installed the there we explored, process in but still Brazil, play last legalization status it's the not point

we covered, between to produce all to demand position in that Slide our about If $XXX growth that to million way believe think to and EGMs, opportunities I in specifically you many you the will the for products $XX right XX, million. opportunities XXXX million in $XX approximately we EBITDA. Because $XXX annual CapEx million of that the our see across in is many and we're believe segments given just turn

XXXX XXX plan the in well to we priorities has last I right The focused by deliver excited shareholders Q&A; as our AGS, place before new thank to market people have all an for employees new the in that around success for AGS the opportunities of entered thing Our gains, the made the call. globe are that, in gain proved and energized team, as absolute right are the historic performance, long-term want ensure to leading With to for XXXX move X share year our Class and We and market XXXX. the we to working front entries, introductions. business. product against and continued as all who of industry of us we'll during confidence new well the and support XXXX Q&A as us entire and deliver an portion better their even to move work

Operator

Please your question of come from Steven And first go ahead. Instructions] Stifel. [Operator will Wieczynski

Steven Wieczynski

midpoint from of I look huge get you to don't to high if for you high guidance $XXX a to that there that million spread range? even range and for of end huge would Kimo million or guess David and of would look what this know $XXX but get if potentially year, end you the exceeding is the not it's the then that the range, low at at end $XXX of but a million, what this when I you the

David Lopez

pretty is range the that think I of of level our confidence. reflective So

for we great us, our the half You of are year. and very the visibility the feel where off we were about analysts year know where first the strong at all before, started

that's can't with The as things with be performance, midpoint on -- range, releasing expected, is of downside really business and anything we're year positives, that in but we'll that that things forward continue with have think have comfortable could we would think about I us economy comfortable a don't in you're I to like So the very go affect to lot the a There back the the pretty comfortable that of horizon where obviously, but the look talking I I products if some I'm $XXX low million; drive to. would really that that things our that probably end of business, we that to the the lot have rest that predict comfortable. us. and see

Julia Boguslawski

those -- product depending just Steve, example, add pretty they point if what to and your I this kind drive acceptance further be some things really new launches to have towards on end; of could received could we were market that anticipating. we higher the maybe drive well would the Texas significant it growth Shuffler, year, could on Orion so of for than

Steven Wieczynski

So hear came right, pretty if be you you be like would guys you $XXX sounds if disappointed? million, I it -- you'd at in

David Lopez

to that's I fair disappointed, say be will Steve.

Steven Wieczynski

will question; you through you I bit of growth And what year, little then when markets you you see a out second through there guess to off? the did most talked of look the Dave the when think rest this the about and XXXX out but rest looked -- you guys

David Lopez

last been first to like really sort Florida, drive year and and if of our to we've X ahead dissecting be suspects, looking pick going last be what trying at going it's a I months like our ourselves, to questions; we you know, is to we'll say quarter usual California, think business we going interesting the Some it's going and choose to be that, going to were few Nevada, to have Ohio opening it's jurisdictions up. Texas; jurisdictions. that And it's the to

if it's and the couple hesitate think you off the have across the look X, I the jurisdictions customer, out, we at staff for reflective a with is anyone diverse opportunities conservatively and the but would we in the to across jurisdictions to going so States, us I United across to look have largest casinos, prepared and pretty we see spread having see units, X we're space growth we look largest we but great wide sale -- see like But it's I Class we really Class really and fact jurisdictions comfortable spread about number our of there. by be was we're of X always we're opportunity, you had we going say placement in across and We remarks, continued QX we QX pick Class horizon shook be there, on of have speak great even always to that's small it's the the you way that a any lot what a sort was XX like but everywhere. very if it, working we growth matter think board but be in are all games if how in in board back opportunities success, -- some conservative the

Operator

question will from Macquarie. come The go of Chad ahead. Please next Beynon

Chad Beynon

on wanted to you're guidance, the that laid X Orion's you've replenish gains out there purchased backlog; to then wondering I seeing for And you markets? mentioned your prepared was is kind out Class us versus Thanks. any if right in probably I on-trial. able with change that willing I'm start you backlog SX remarks versus sale that if also your lease give higher some in now least in that? you're update if an given you were of know to the in the assuming gains slightly there and what of

David Lopez

especially see if mix second half that look you start of of Class things our at shifting, with in we X. the is, which are sort the do question I'll

that into Class the With mix; pretty goes that XX% eventual as lease. that. you with are a an we sticks like deeper road, a we're everything think the of on into the sale, we gave talked type that consistent do think we out see becomes We stay shift, I XX% we that XX-XX than door fact about that we'll X,

it gotten far Again, -- of -- visibility my forget don't this to changed numbers them goes, because it's having nothing don't about anything first As I don't is certainly Horizon. here has sort had as on backlog have the away on the of wing stronger. remember half gaming, front the that we as and as think year ever the from want but out this much I it's remember visibility, having I call staying it's long as in AGS, year in robust, of me specific if much don't backlog strong, I there, I have XXth really I've

question when backlog, our on the Julia good of product really that's sort the us about cake good on only of on for pointed of to something conservative products icing new Steve pretty I that out it. the feel top going really asked of and feel sort we're releasing I and think launches about I about be So some this

So I still than expect no certainly backlog say strong, road was continue I'd the change it that and there, negative is when we're it's on build. out to stronger to

Chad Beynon

on could your a us And expense, current sheet; of what help just then based for debt help us you projecting on Kimo, based you interest kind yields and refinancing maybe balance the the that are if the XXXX? -- with ballpark you're on of where -- with if could kind

Kimo Akiona

-- second be to your I could interest then, don't our what we range sorry, part interest would for to settled, rate term note-picking be $XX look that's when it it so it now say so, repriced or around loans; million have would Chad? the And I'd say For somewhere anymore, expense, question, we what been use. you somewhere was your the lowered there, our refinanced around that's to I or interest

Chad Beynon

And the kind XXXX expecting CapEx. any for years? $XX upcoming of you let this, taxes to want pay XXXX, That you're the just was cash I for not or confirm out million to

Kimo Akiona

We yes. pay cash not for Confirmed, taxes. expect do

Operator

ahead. be The Please Santarelli from Deutsche of Carlo next question Bank. will go

Carlo Santarelli

foresee David, going you the maybe about bit folks for as new the approval, but kind out into maybe next of horizon little potential jurisdictions and you Ohio -- talk of new of obviously, you recent what's terms lay about in a running it experience think how a on over slew approvals X scope get you in and to aggressively, markets a the of ramped? should next personnel takes have and state, up of X you now get more quarters? the feel right you how to to And here attack do long generally the kind

David Lopez

a new pent-up So Massachusetts I I approval, probably did guess comfortable don't not some these back to in really be is and relatively in [indiscernible] our but have wish core product, year. are and both we're them the -- Ohio and think specifically their this there soon report probably the the with how there year, we sometime that them they've work guys table on seen showroom. and the jurisdictions I have premium when going to lulling as games; demand demand, product, forward on these show, remarks seen when I have the we how ourselves again, predicting jurisdictions to see them, Colorado performing jurisdictions at so so us I of the the is we the no and and -- and crystal later those our in there the have it's get something in come, do comes ball, about Vegas, introduce bit what's where little the get The games, go were side. prepared there they've you the a coming with a in get the sleep they seen Las is looking we're they PA to new slot been in beauty it the all online,

to the weeks there, in but end those the jurisdictions I'm getting long place it it's in going there? the in been more just the there get has door them And but the we very how waiting these we there question your Colorado wait patiently, demand actually Pennsylvania, and is they love get know So jurisdiction forward to sorry, products it certainly customers to door a talking product, in we get Ohio, get to you're can't to it. one on it's the to when be to approvals just in takes months and couple look depends of really

Carlo Santarelli

at you take come I terms a now online, to things in etcetera; of of Yes, right up you sales do feel foresee guess? personal you're or on having just pretty place comfortable to these as more staff optionality do kind

David Lopez

people to in honestly, been XX So X we just fortunate. the days last really really and like X we've added

doing of front going and up excited but stars they I'm add we've it. in we're Parry of they're our people very of sort door culture about and the been, add and we need and and have keep Robert the if back these I we as picked sort I've is adding bringing in. to one the -- couple that the think not talked great ago now rock continue think others, but pay we about I've were we only and Do I we've about, see the commissions, are team, and about recently, also we a we Sales, philosophy fortune, and that sales monitor Company attention really monitor in fortunate what years and we President just things people, keep recruiting we have talked we our another good really road ground running, I just we that And it activated we and hit brought sales monitor on that Robert that. existing a rock to when been have this productivity on way we're excited we add has the it the sales shareholders people hard what dialing potential of of think sales number Senior we turf a do Vice with leadership of person, great

Operator

Please of Jonas The of go next be from Bank America. Barry ahead. question will

Barry Jonas

larger from I will that but fairly fortunately have even some the a specific of on quarters? just some talked fair issues have backend you it be is about larger four think one, have? seasonality they guidance; think maybe loaded the to you First next your peers over it don't say perspective, company

David Lopez

I would with as go. as can customers that we choppiness, some relatively of some some across of know a bigger when orders, it chop we're we create come year of bit right. our say in little far predict And in across that their rather with the So those is smooth what flat numbers, the that we're sales the choppiness, can year

comes units do, in line creates of a way removed scenario come the when quarters. in across they I force think you little the within is they quarter we that bit going decent a but that if our bottom from is and we're proxy QX consistent know forward chop the that for the but free [ph] very

Barry Jonas

update Any [ph] contract? checkers renewing that the on discussions about with

David Lopez

terms active we've relationships and be will and one product priced customer slot honestly just how -- of that Again, I but as our specific at is quite our said head just this in where of in confident and the will are what partners are very as recently. the conversation of world -- be, think time our division our I Nothing it's goes. our best reinforced as most the had far discussions, they is this conversations the greatest before we of those one

to going we're have no very go. we So concerns there, how confident that's

Barry Jonas

environment; growth? on M&A thoughts more do see opportunities you the inorganic general some any David, for

David Lopez

about? M&A as talking far you're as So

Barry Jonas

Yes.

David Lopez

It's organic sorry. or I'm inorganic?

years is inorganic of at said in sort is, we at is I'm way Barry, to growth, growth we about if with there you look you that there last this the space, [ph] If footprints and we -- talking diligence, We a or the lot examples gone than I'm we've and on inorganic we're M&A going has lost in. think Apollo iteration you're go X. M&A done time the us point. for deals, at to we've way our When and line taught sorry something space X the M&A. I which or kissed looked look, for out we've of Xx a or for all put the And time. at lot the more and Xx back fronts of great such all take very a looking to of do if we close our you will, where Xx deals look

a of the it worked that look right fragile can't So of fit to of diligence, line. huge our could and egg got a think he of culture, any for to company it meet the the it's matter that then M&A got we of AGS, egg think opportunities. to the business culture At as criteria, discipline companies, -- is much for we've tons distraction, at very that the tons at I never current we an everything. as lost on of we have our and the at we at do I've it the at when course, I've at that and look to company. answers question it's has look of I because research; distraction just something mindful opportunities I that it's sort it's meet look do financial that We're monitor hope criteria that other something damage pretty can got course company, a growth become of done we it's meet what the we for criteria become we cultures us, and of

Operator

Please David The next of Jefferies. be ahead. Katz go will from question

David Katz

Rocket I a increasing the covered topics lot on And those specifically the I ask to but then acquisition. just win per follow-up. have opportunity You've of for day base to does and about certainly present the a it adds units? installed wanted also It specifically

David Lopez

and If Those roadshow spot-on and to leased with monitor saw you optimization our space and our because obviously you now and question. think opportunities but about how with you're obviously, and dollars it's units; question, your great it's a absolutely we opportunities per day familiar them create deck we space own aware like viewed for we'll very you they if that us our our optimize will. leased make really you're believe great extra

bottom of do, our top and and us. that sort that new analysis we say got obviously we we'll the every them we've just that every in So a go where and there, prioritize the great it levels goes it, all we through so week, at the want the line to great of we that success like all they we offer; are put they day, put into do all in are below doing, what content nerds ones drives they optimize, team for this we -- over are

David Katz

X -- And operating? in are where Class there it other suggesting of is growth in expecting business are growth think markets providers unit Class replace you within domestic already you X; to incremental expansion Class you you that the or is X

David Lopez

California; scenarios. going it's a the going expansion it think of to that to be everything, of I in could be? it's one what's So it like be bit Is little

share that fair Now it's California continues it's I of for operators a an there we an to is that will about Class Texas, board if in us. lot opportunity emerging some to in more X think the from create can we Class as get X our X some California. of it's X units say Oklahoma do Class expansion in of jurisdictions Oklahoma, yes, some Class maybe flip a a success time believe and to will maybe Class Class some but share to had don't conversions expansion case time, We've we across -- about potentially market, the it think still is not Oklahoma. look in in steal of I but you dead X, the market, opportunities expand, to bit like X some well but

Julia Boguslawski

know that we about add even so then [ph] an And the Also, three should with more I expansion; optimization so online, Class through units. opportunity grow to that planned yield or David's to give couple have opportunities coming of the growing of some this a wins to that in just we think point as revenue year the and add Class footprint to to checkers expansions of X I year; think that so things course, X [indiscernible] different mentioned. they with are recurring do two us David have we X addition opening have

David Lopez

that's market share. so I our and and We obviously and depending you shift X% by X% share; you. we're outstripping we shift you even looking beat jurisdiction, on between wins pretty games Rocket our as our a considerably share see, things considering are that pretty did that Thank And of good. of Games great, can good XX% floor think will have XX% which is our the if X between share we

Operator

may end And session. you AGS's lines. year as for ladies disconnect question-and-answer will time At Thank well call. you and quarter session, your this fourth earnings and this XXXX as attending our conclude gentlemen, today's

PlayAGS (AGS) 18 Mar 182017 Q4 Earnings call transcript