PlayAGS, Inc.

Hello all and a warm welcome to the Play AGS first quarter 2022 earnings call. My name is Lydia and I'll be your operator today. If you'd like to ask a question at the end of the presentation, you may do so by pressing start followed by the number one on your telephone keypad. It's my pleasure to now hand you over to our host, Brad Boyer, SVP Corporate Operations and Investor Relations. Please go ahead when you're ready.

Thank you, Operator, and good afternoon, everyone. Welcome to the PlayAGS Incorporated First Quarter 2022 Earnings Conference Call. With me today are David Lopez, CEO, and Kimo Akiyama, CFO. A slide presentation reviewing our key operational and financial highlights for the first quarter ended March 31, 2022, can be found on our investor relations website, investors.playags.com. In today's call, we will provide an overview of our Q1 2022 financial performance and offer perspective on our current financial outlook for the business. This conference call will include the use of forward-looking statements. Any statement that refers to expectations, projections, or other characterizations of future events, including financial projections or future market conditions, is a forward-looking statement based on assumptions today. Actual results may differ materially from those expressed in these forward-looking statements TAB, We make no obligation to update our disclosures for more information about factors that may cause our actual results to differ materially from our forward looking statements. TAB, Please refer to the earnings press release we shoot today, as well as risks described in our annual report on form 10 K, particularly in the section of these documents titled risk factors. TAB, or commentary today will also include non gap financial measures. We believe the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends in our business. These measures should not be considered an isolation from or as a substitute for financial information prepared in accordance with GAAP. Reconciliation between GAAP and non-GAAP metrics for our reported results can be found in our earnings press release issued today. Please refer to our filings with the SEC for more information. With that, I would like to turn the call over to our CEO, David Lopez.

Thanks, Brad. Good afternoon, everyone. On several of our recent conference calls, many of you have heard me discuss the foundational improvements we have implemented over the past couple of years. Today, I would like to highlight several first quarter accomplishments that I believe reflect early returns on organizational investments we have made to date. First, We sold a total of 955 EGM units globally in the first quarter, more than three times the number sold in Q1 2021 and a nearly 20% increase over Q4 2021, extending our streak of sequential unit sales growth to five consecutive quarters. Second, our domestic EGM RPD increased 2% sequentially and approximately 14% year-over-year, topping $30 for the fourth consecutive quarter. Third, we achieved sequential growth in our premium product install base for the ninth consecutive quarter, with premium games accounting for 11% of our domestic EGM install base at quarter end compared to 5% just one year ago. Fourth, Our table game business delivered record revenue performance for the third consecutive quarter with revenues increasing by more than 25% year over year to $3.5 million. Finally, net leverage at quarter end was a more approachable 4.2 times compared to 7.4 times at the same time last year, putting us on track to deliver upon our year end net leverage target of less than four times. While the list of accomplishments I just referenced are quite positive, I believe they simply foreshadow what our laser-focused organization can accomplish in the quarters and years ahead. From a product and company performance perspective, these are exciting times at AGS as we look to establish over the past 12 months. And assessing the short term, I imagine the question on the minds of some investors is whether or not the gambler has been or will be impacted by the current macroeconomic challenges. The short answer is that to date, there is no observable change within our recurring revenue business, which once again is proving to be resilient. In addition, we as an industry continue to benefit from a rather consistent and healthy recovery and North American replacement demand. In addition, To the stable underlying trends within our business, we continue to benefit from numerous initiatives and investments in R&D, sales, and product management. In R&D, our accelerated investments have yielded an expanded and industry-leading hardware portfolio, a stable of strong for-sale core games led by the likes of Captain Rich's and Lucky O'Reilly. And a premium portfolio led by that has us poised for growth in the quarters ahead. While R&D has set us in motion for success, our sales and product management teams are reporting wins as follows. We are penetrating the customer base more broadly than ever before. We have dramatically improved our CapEx and cabinet deployment process as we also stay focused on slot real estate optimization. And last but not least, we've consistently grown unit sales over the last five quarters while not compromising our average sales price per cabinet, which is one of the strongest in our competitive set. Turning the tables, the trends are equally as encouraging. Supported by our commitment to providing our customers with innovative value-added products, which without question have improved the profitability of their casino floors. I will briefly highlight some of the recent trends with our consistently growing table product segment. Order momentum continues as BSX, or Bonus Spin Extreme, continues to wow our customers with the ability to link just about every table game type to a single progressive, which is a one-time authoring in the industry. Another highlight for BSX was our recent install of nearly 40 units at the grand reopening of the Palm Blossom space, our largest single site installed to date. PAX, our latest card shuffler, which was recently launched, has been very quiet. Which, the pun is intended, is the machine is quiet and so are the service calls, a coveted combination in the shuffler product space. With this smooth launch, we expect orders to build and install to steadily increase over the coming quarters. Lastly, Our AGS Arsenal site license offerings have combined nicely with PAX and BSX to aid in the continuing momentum we have had over the past year. Finally, in the interactive segment, we have been able to achieve relatively consistent performance as we continue to strategically reposition the business to better take advantage of our strong land-based product portfolio in the North American online market. Although we expect our interactive business to remain stable in the near term, we are currently investing in additional resources to expand our pipeline of games from our land-based business into the online space. We are confident that our customer relationships, along with the proven performance of our games, will lead to a new period of growth when we're able to place more games into the hands of our operators. In the end, I'm encouraged by our consistent and good performance over the last year. That said, I'm most excited about what lies ahead in 2023 and beyond. And while I'm saying that, you might be asking, why are you so excited? And the answer is tied to the overall theme of my prepared remarks, and that is investment and the related return that we have seen and expect to see as we look into the future. The reality is that R&D investments require some patience. And with the time it takes to initiate staff and begin production for multiple new studios, we and you have walked down the path of patience together. Now that those studios are online, we are seeing returns and we'll continue to see leveraged contributions as we layer in new productivity for team members who started 12 to 18 months ago, all of which will further accelerate the growth of our slot business. This growth coupled with Our table game momentum and a promising interactive segment should provide accelerated growth, increased cash flow, and in turn, continue to de-lever our balance sheet. A summary of outcomes which feel heavily discounted in the context of our current share price. With that, I will turn the call over to Kimo to walk you through our first quarter results in greater detail.