Investigation of PlayAGS, Inc.
You Have Legal Options
PlayAGS, Inc. (AGS) Accused of Misleading Shareholders
On March 5, 2019, PlayAGS announced in its 2019 outlook an expected adjusted EBITDA of $160-$164 million, representing growth of approximately 17%-20% compared to 2018. On May 8, 2019, PlayAGS continued to tout its positive financials, announcing an increase of 13% in total revenue for first quarter 2019 due to “continued growth in [its] [electronic gaming machine] segment, primarily [selling] units in… Michigan, Saskatchewan, Pennsylvania, and Massachusetts.” However, PlayAGS failed to disclose that the Company had been experiencing challenges in Oklahoma that would negatively impact its revenue. This impact was revealed on August 7, 2019, when PlayAGS reported a net loss of $7.6 million for second quarter 2019, including a $3.5 million impairment to goodwill and another $1.3 million impairment in iGaming reporting unit due to extended regulatory timelines that delayed revenues. PlayAGS also cut its 2019 expected adjusted EBITDA to $145-$150 million, now representing growth of only 6%-10% from 2018. On this news, PlayAGS’ stock declined $8.99 per share, or 52%, closing at $8.31 per share on August 8, 2019.