PlayAGS, Inc.

Hello and welcome to today's AGS Q3 2022 earnings conference call. My name is Elliot and I'll be coordinating your call today. If you would like to register a question during the presentation, you may do so by pressing star followed by one on your telephone keypad. I would now like to hand over to our host, Brad Boyer, Senior Vice President of Corporate Operations and Investor Relations. The floor is yours. Please go ahead.

Thank you, Operator, and good afternoon, everyone. Welcome to the PlayAGS Incorporated Third Quarter 2022 Earnings Conference Call. With me today are David Lopez, CEO, and Kimo Akiyono, CFO. A slide presentation reviewing our key operational and financial highlights for the third quarter ended September 30, 2022, can be found on our investor relations website, investors.playags.com. On today's call, we will provide an overview of our Q3 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, and 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, please refer to the earnings press release we issued today, as well as risks described in our annual report on Form 10-K, particularly in the section of these documents titled Risk Factors. Our commentary today will also include non-GAAP 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 release issued today. Please refer to our findings with the SEC for more information. With that, I would like to turn the call over to our CEO, David Lopez.

Thanks, Brad, and good afternoon, everyone. I'm extremely pleased with our third quarter as our recent trend of improving financial performance carried over into Q3. While Kimo will walk you through our financial results in greater detail, I would like to draw your attention to five highlights from the quarter. First, domestic EGM recurring revenue topped $45 million for the second consecutive quarter, exceeding prior year levels by over 4%, and beating our Q3 2019 performance by 8%. Thoughtful capital investment, including the expansion of our premium gain footprint for 11 consecutive quarters, continues to drive improved recurring revenue performance as we tactically strengthen the quality of our overall installed base. Second, our global EGM unit sales increased by more than 50% year over year, topping 1,000 units for the first time since Q4 2019. The added depth of our core content portfolio increased customer account penetration and complementary sales into international markets, combining to drive our EGM unit sales growth in the quarter. Third, our table product segment delivered sequential revenue and adjusted EBITDA growth for the ninth consecutive quarter, supported by further customer adoption of our Pax S card shuffler and industry-leading table game progressive technologies. Fourth, supported by our steady improvements in product performance and operational execution, company-wide revenue increased sequentially for the seventh consecutive quarter, while our quarterly consolidated adjusted EBITDA performance improved sequentially for the sixth time in the past seven quarters. Finally, our strengthened operating performance and efficient capital management year-to-date have put us in position to achieve our year-end net leverage target of less than four times. While I'm encouraged by the operating momentum we've established year-to-date, I'm even more excited about what lies ahead for our company and our shareholders. My excitement peaked at last month's Global Gaming Expo, or G2E, in Las Vegas. as we presented our strongest and most diverse new product lineup in my tenure at AGS. My feelings were echoed by many of those in attendance, including our customers, employees, and even some of our competitors, as the improved diversity of our product portfolio was on display for everyone to see. While there were many highlights for us at G2E, the undisputed star of the show was our new Spectra gaming cabinet, the first new offering in our next-gen family of products. Spectra's initial performance has lived up to our high expectations with the cabinet achieving the top spot in the new portrait upright category of the October Eilers Cabinet Report with reported performance at nearly three times house average. With over 30 titles lined up to support Spectra's year one launch, we expect the cabinet to become a must have on every casino operator's floor. In addition to Spectra, We also showcased our first ever games in the high-denom game content segment. These new titles not only improve and expand our core content offering, but they should also turbocharge our installed base performance and provide our sales team with unique product mix opportunity capabilities of expanding our replacement market share. Like Spectra, our first high-denom games appear to be on point, delivering solid performance both inside and outside of operators' high limit rooms. Looking beyond our new cabinet and high-denom content, G2E also further cemented our position in the market's growing premium game segment. Supported by a robust content pipeline, a number of proven AGS brands, and an increasingly diverse array of product configurations, I'm confident we can continue to build on our 11 consecutive quarters of premium unit growth. Finally, G2E served as a coming out party of sorts for our revamped and expanded game development team by providing a formal stage to showcase the team's true potential. With three of our seven content studios unveiling their first games at G2E, the transformation of our recent investments in content creation from conception to commercialization was on display for all to see. The added depth and variety of our content portfolio truly resonated with our customers, helping to change the way they think about the AGS brand. Outside of EGMs, customer interest in our expanded suite of innovative table products was equally as strong. While PAX S, our single-deck card shuffler, garnered most of the attention, our customers continue to look for opportunities to further leverage our industry-leading, progressive technology to optimize their table game operations. I am confident our current table product portfolio, along with our commitment to serve as the innovator and partner of choice within the table product space, should allow us to steadily grow both revenue and adjusted EBITDA for many years to come. All told, while the demand we saw exiting G2E should boost our near-term financial performance, I'm even more encouraged by what the big picture takeaways from the show will mean over the coming years. Here are just a few of those takeaways. We have demonstrated a significant expansion in our core EGM content portfolio. Our premium product quality and momentum are making huge strides. EGM hardware and product innovations are notable and highly competitive within what we saw at the show. Our continued success and industry product leadership in the table product space is getting more recognition each year. And finally, our investments in online real money gaming, along with continued cultivation of the international EGM market, will provide strong opportunities for years to come. These are just a few examples of the successful work we have done to fuel our future growth. And now is the time for our team to execute. With that, I'll turn the call over to Kimo to walk you through our third quarter results in greater detail.