PlayAGS Inc (AGS) 2023 Q1 法說會逐字稿

Ladies and gentlemen, welcome to the PlayAGS Inc. Q1 2023 Earnings Conference Call. My name is Glenn, and I'll be the operator for today's call. (Operator Instructions) I will now hand you over to your host, Brad Boyer, SVP of Investor Relations to begin. Brad, please go ahead.

女士們，先生們，歡迎來到 PlayAGS Inc. 2023 年第一季度收益電話會議。我叫格倫，我是今天電話的接線員。 （操作員說明）我現在將把你交給你的主持人，投資者關係高級副總裁 Brad Boyer 開始。布拉德，請繼續。

Thank you, operator, and good afternoon, everyone. Welcome to the PlayAGS Inc. First Quarter 2023 Earnings Conference Call. With me today are David Lopez, CEO; and Kimo Akiona, CFO.

謝謝接線員，大家下午好。歡迎來到 PlayAGS Inc. 2023 年第一季度收益電話會議。今天和我在一起的是首席執行官大衛·洛佩茲 (David Lopez)；和首席財務官 Kimo Akiona。

A slide presentation reviewing our key operational and financial highlights for the first quarter ended March 31, 2023, can be found on our Investor Relations website, investors.playags.com. On today's call, we will provide an overview of our Q1 2023 financial performance and offer perspective on our current financial outlook for the business.

幻燈片演示回顧了我們截至 2023 年 3 月 31 日的第一季度的主要運營和財務亮點，可在我們的投資者關係網站 investors.playags.com 上找到。在今天的電話會議上，我們將概述我們 2023 年第一季度的財務業績，並提供對我們當前業務財務前景的看法。

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.

本次電話會議將使用前瞻性陳述。任何涉及未來事件的預期、預測或其他特徵的陳述，包括財務預測或未來市場狀況，都是基於當今假設的前瞻性陳述。實際結果可能與這些前瞻性陳述中表達的結果存在重大差異，我們沒有義務更新我們的披露。

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.

有關可能導致我們的實際結果與我們的前瞻性陳述產生重大差異的因素的更多信息，請參閱我們今天發布的收益新聞稿以及我們在 10-K 表格的年度報告中描述的風險，特別是在第這些文件標題為風險因素。

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 in isolation from or as a substitute for financial information prepared in accordance with GAAP. Reconciliations between GAAP and non-GAAP metrics for our reported results can be found in our earnings 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.

我們今天的評論還將包括非 GAAP 財務措施。我們相信，使用這些非 GAAP 財務指標為投資者提供了一種額外的工具，可用於評估我們業務的持續經營業績和趨勢。這些措施不應孤立於或替代根據公認會計原則編制的財務信息。我們今天發布的收益報告中可以找到我們報告結果的 GAAP 和非 GAAP 指標之間的對賬。有關更多信息，請參閱我們向美國證券交易委員會提交的文件。有了這個，我想把電話轉給我們的首席執行官大衛洛佩茲。

Thanks, Brad, and good afternoon, everyone. I would like to start off today's call by highlighting 5 of our most noteworthy accomplishments in the first quarter. First, total revenues increased 14% year-over-year to a company record $83 million, with growth achieved across all 3 segments of our business.

謝謝，布拉德，大家下午好。我想通過強調我們在第一季度取得的 5 項最值得注意的成就來開始今天的電話會議。首先，總收入同比增長 14%，達到公司創紀錄的 8300 萬美元，我們所有 3 個業務部門都實現了增長。

Revenues have now increased sequentially for 9 consecutive quarters, supported by a consistent product and operating momentum within the business. Second, adjusted EBITDA approved to a new first quarter record of $36.5 million, up over 11% versus the prior year and ahead of Q1 2019 levels.

在業務內一致的產品和運營勢頭的支持下，收入現已連續 9 個季度連續增長。其次，調整後的 EBITDA 批准創下第一季度 3650 萬美元的新紀錄，比上年增長 11% 以上，高於 2019 年第一季度的水平。

Third, domestic EGM recurring revenue increased 10% year-over-year to a record $47.7 million, nicely exceeding the 6% to 7% average rate of growth in market-wide gross gaming revenue. Our domestic recur business has now set revenue records in 3 of the past 4 quarters.

第三，國內 EGM 經常性收入同比增長 10% 至創紀錄的 4,770 萬美元，遠超整個市場博彩總收入 6% 至 7% 的平均增長率。我們的國內經常性業務在過去 4 個季度中有 3 個季度創下了收入記錄。

Fourth, global EGM sales topped 1,100 units for the second consecutive quarter, up over 15% versus the prior year and nearly 10% ahead of Q1 2019. Based on the latest Eilers data, we believe our unit sales growth outpaced the level of growth witnessed in the broader sales market during the first quarter. Finally, Table products revenue increased by nearly 20% (sic) [15%] versus the prior year, reaching a new record of $4.1 million. Overall, the consistent improvement reflected in our recent financial performance speaks directly to the returns we have realized on the strategic investments in our R&D and operational teams over the past several years.

第四，全球 EGM 銷量連續第二個季度超過 1,100 台，同比增長超過 15%，比 2019 年第一季度增長近 10%。根據最新的 Eilers 數據，我們認為我們的銷量增長超過了見證的增長水平第一季度在更廣泛的銷售市場。最後，Table 產品收入與上一年相比增長了近 20%（原文如此）[15%]，達到 410 萬美元的新紀錄。總體而言，我們近期財務業績的持續改善直接說明了過去幾年我們在研發和運營團隊的戰略投資中實現的回報。

These investments continue to produce greater resiliency and vibrancy in our operating performance today while also strengthening our foundation for long-term growth. As I look ahead, my level of excitement about the long-term prospects for our company is the same as it was when we last gathered a couple of months ago. Since that time, our newest cabinet, Spectra 43 hasn't skipped a beat, extending its run at the top of the Eilers Cabinet report to 7 consecutive months. Spectra's 2 launch titles, Long Bao Bao and Shamrock Fortunes continue to support the cabinet's chart-topping performance with each theme achieving a top 10 ranking for Eilers .

這些投資繼續為我們今天的經營業績帶來更大的彈性和活力，同時也鞏固了我們長期增長的基礎。展望未來，我對公司長期前景的興奮程度與幾個月前我們上次聚會時一樣。從那時起，我們最新的內閣 Spectra 43 從未間斷，連續 7 個月在 Eilers 內閣報告中名列前茅。 Spectra 推出的 2 個主題，Long Bao Bao 和 Shamrock Fortunes 繼續支持櫥櫃的排行榜表現，每個主題都獲得了 Eilers 的前 10 名。

We are excited about the buzz Spectra is creating around the AGS brand and continue to consider our most successful new product launch ever. Looking beyond Spectra, the calculated transformation and expansion of our content creation teams over the past several years has armed the business with the deepest and most diverse game content offering in the company's history. We currently have 7 game development studios creating over 75 titles per year, nearly doubling our game output compared to just a few years ago.

我們對 Spectra 圍繞 AGS 品牌引起的轟動感到興奮，並繼續考慮我們有史以來最成功的新產品發布。除了 Spectra 之外，我們的內容創作團隊在過去幾年中經過深思熟慮的轉型和擴張，為公司提供了公司歷史上最深入、最多樣化的遊戲內容產品。我們目前有 7 個遊戲開發工作室，每年創造超過 75 個遊戲，與幾年前相比，我們的遊戲產量幾乎翻了一番。

In addition to added breadth of our portfolio, we remain laser-focused on ensuring we maintain our reputation as a provider of high-performing content featuring themes and game mechanics players love. This focus was prominently reflected in the most recent Eilers Game Performance Report as AGS titles, including one of our initial game themes and the high denomination category accounted for over 10% of the top 50 new core games.

除了增加我們產品組合的廣度之外，我們仍然專注於確保我們保持作為高性能內容提供商的聲譽，這些內容具有玩家喜愛的主題和遊戲機制。這種關注在最近的 Eilers 遊戲性能報告中得到了突出體現，作為 AGS 遊戲，包括我們最初的遊戲主題之一和高面額類別占前 50 名新核心遊戲的 10% 以上。

Supported by the teams we have in place today we are now able to deliver new high-performing hardware targeting a variety of market segments and an increasingly diverse content portfolio expanding multiple game category types with greater consistency. This consistency positions us for sustainable market share growth in the quarters and years ahead. In addition to leveraging very strong R&D organization, we are also benefiting from the work of our sales and product management teams. By carefully investing in our customer-facing teams, we have successfully increased the frequency of our interactions, resulting in better sell-through of our products.

在我們現有團隊的支持下，我們現在能夠提供針對各種細分市場的新型高性能硬件和日益多樣化的內容組合，以更高的一致性擴展多種遊戲類別。這種一致性使我們能夠在未來幾個季度和幾年內實現可持續的市場份額增長。除了利用非常強大的研發組織外，我們還受益於我們的銷售和產品管理團隊的工作。通過謹慎投資面向客戶的團隊，我們成功地增加了互動頻率，從而提高了我們產品的銷售率。

Along with this, we have deployed a stronger go-to-market strategy which better positions our products for success in the field. During the first quarter, we sold games to over 110 different customers, including 5 of our largest corporate customers, representing an increase of more than 45% versus the prior year. All told, given the diverse array of customer accounts touched, cabinet types sold and market segments penetrated, I consider Q1 2023 the healthiest EGM sales quarter in our company's history.

與此同時，我們還部署了更強大的上市戰略，更好地定位我們的產品，以便在該領域取得成功。第一季度，我們向超過 110 家不同的客戶銷售遊戲，其中包括 5 家最大的企業客戶，與去年同期相比增長了 45% 以上。總而言之，考慮到觸及的客戶賬戶、銷售的機櫃類型和細分市場的多樣性，我認為 2023 年第一季度是我們公司歷史上最健康的 EGM 銷售季度。

Moving outside of EGM sales, the initiatives underway to further strengthen our domestic EGM recurring revenue business continue to deliver consistent results as reflected by our record-setting performance in the quarter. During Q1, we successfully grew our premium EGM footprint for the 13th consecutive quarter, pushing our premium mix to over 15%. Although our premium strategy has come a long way in a relatively short period of time, we continue to see considerable growth opportunities in front of us, supported by new customer activations, game theme launches and hardware introductions. In addition to our success on the premium game front, we continue to leverage the added depth of our game content portfolio and product management team to further optimize our core unit performance.

在 EGM 銷售之外，為進一步加強我們國內 EGM 經常性收入業務而採取的舉措繼續提供一致的結果，正如我們在本季度創紀錄的業績所反映的那樣。在第一季度，我們連續第 13 個季度成功擴大了我們的高端 EGM 足跡，將我們的高端產品組合推高至 15% 以上。儘管我們的高端戰略在相對較短的時間內取得了長足的進步，但在新客戶激活、遊戲主題發布和硬件推出的支持下，我們繼續看到可觀的增長機會擺在我們面前。除了我們在優質遊戲方面的成功之外，我們繼續利用我們遊戲內容組合和產品管理團隊的深度來進一步優化我們的核心部門績效。

The compound benefit of our premium market penetration and optimization initiatives has structurally transformed the composition of our domestic installed base resulting in 8 consecutive quarters of $30-plus domestic RPD performance. Looking beyond EGMs, the momentum building within our Table products business is as strong as it's ever been. Our PAX S single-deck shuffler footprint grew by more than 40% sequentially topping 200 units at the end of the quarter. The competitively priced shuffler's reliability and our service team's laser focus on ensuring a seamless conversion experience continues to resonate with our customers.

我們的高端市場滲透和優化舉措的複合效益從結構上改變了我們國內安裝基礎的構成，導致國內 RPD 業績連續 8 個季度超過 30 美元。放眼 EGM 之外，我們餐桌產品業務的勢頭一如既往地強勁。我們的 PAX S 單層洗牌機佔地面積增長了 40% 以上，在本季度末連續超過 200 台。價格具有競爭力的洗牌機的可靠性和我們服務團隊的激光專注於確保無縫轉換體驗繼續與我們的客戶產生共鳴。

With several multi-site operators currently trialing packs and rebuy momentum amongst early adopters building, we remain in the very early innings of realizing the product's full growth potential. In addition to PAX, we continue to leverage our commitment to being an innovator of choice to expand the reach of our progressive products and operators' table pits. To that end, our Bonus Spin Xtreme footprint equips 500 units at the end of Q1 with units installed across 20 jurisdictions. While BSX is off to a hot start, we see considerable growth in front of us as the product was installed at fewer than 50 casinos at quarter end.

目前有幾家多站點運營商在早期採用者中試用打包和重新購買勢頭，我們仍處於實現產品全部增長潛力的早期階段。除了 PAX，我們還繼續致力於成為首選的創新者，以擴大我們先進產品和運營商桌坑的範圍。為此，我們的 Bonus Spin Xtreme 足跡在第一季度末配備了 500 台設備，並在 20 個司法管轄區安裝了設備。雖然 BSX 開局火爆，但由於該產品在本季度末安裝在不到 50 家賭場，因此我們看到了可觀的增長。

Finally, our interactive business is quickly approaching launch mode. Supported by forthcoming introduction of a new platform, expanded game content portfolio and recent new customer and market activations we continue to expect the growth trajectory within the business to improve in the back half of the year. With a record first quarter behind us, our focus now shifts to Q2 and beyond. While we are acutely aware of the macroeconomic uncertainty in the financial markets today, we believe our ability to leverage the unique growth catalysts I just described, coupled with our outsized recurring revenue mix and strong liquidity position provide a level of resiliency within our business that is grossly underappreciated by investors today.

最後，我們的互動業務正在迅速接近啟動模式。在即將推出的新平台、擴展的遊戲內容組合以及最近的新客戶和市場激活的支持下，我們繼續預計該業務的增長軌跡將在今年下半年有所改善。隨著第一季度創紀錄的落後，我們現在的重點轉移到第二季度及以後。雖然我們敏銳地意識到當今金融市場的宏觀經濟不確定性，但我們相信我們利用我剛才描述的獨特增長催化劑的能力，加上我們龐大的經常性收入組合和強大的流動性狀況，為我們的業務提供了一定程度的彈性今天被投資者嚴重低估了。

These same attributes also provide a path to sustainable multiyear growth, in turn, further balance sheet deleveraging, positioning the company to outperform over the longer term.

這些相同的屬性也為可持續的多年增長提供了一條途徑，反過來，資產負債表進一步去槓桿化，使公司在長期內表現優於大盤。

In closing, I would like to thank our AGS team for their continued hard work, focus and execution, which remains the foundation of our record-setting financial performance. I continue to believe we have the strongest team and the deepest product lineup in my tenure, and I'm encouraged by and look forward to what lies ahead for our company. With that, I will turn the call over to Kimo.

最後，我要感謝我們的 AGS 團隊一直以來的辛勤工作、專注和執行力，這仍然是我們創紀錄的財務業績的基礎。我仍然相信，在我的任期內，我們擁有最強大的團隊和最豐富的產品陣容，我對公司未來的發展感到鼓舞和期待。有了這個，我會把電話轉給 Kimo。

Thank you, David, and good afternoon, everyone. I will start off today's call by reviewing a couple of highlights from the first quarter and providing some perspective on how we see each of our business segments trending as we look ahead into Q2. I will also share some thoughts on our free cash flow outlook for the year and close by addressing a few items related to our balance sheet.

謝謝你，大衛，大家下午好。在今天的電話會議開始之際，我將回顧第一季度的幾個亮點，並就我們展望第二季度時如何看待每個業務部門的趨勢提供一些觀點。我還將分享一些關於我們今年自由現金流前景的想法，並通過解決與我們的資產負債表相關的幾個項目來結束。

Turning first to our domestic EGM gaming operations business, first quarter revenue increased 10% year-over-year to a record of nearly $48 million. As we noted on our Q4 call, the first quarter got off to a strong start in January and trends strengthened throughout the quarter with March revenues reaching an all-time monthly record. During Q1, we expanded our domestic installed base sequentially for the fourth consecutive quarter, supported by our 13th straight quarter of premium unit growth and a relatively stable core unit footprint.

首先轉向我們的國內 EGM 遊戲運營業務，第一季度收入同比增長 10%，達到創紀錄的近 4800 萬美元。正如我們在第四季度電話會議上指出的那樣，第一季度在 1 月份開局強勁，整個季度的趨勢都在加強，3 月份的收入創下了歷史月度記錄。在第一季度，我們連續第四個季度擴大了國內安裝基礎，這得益於我們連續第 13 個季度的優質單位增長和相對穩定的核心單位足跡。

Domestic RPD increased 7% year-over-year, topping $30 for the eighth quarter in a row. Our growing premium unit mix with premium games accounting for over 15% of our installed units at quarter end, further installed base optimization and a generally stable macroeconomic backdrop, all contributed to our improved RPD performance in the quarter. Looking ahead to Q2, the opportunity to simultaneously activate new premium unit customers and broaden our penetration with existing customers, combined with continued stability in our core unit footprint should allow us to expand our domestic installed base for a fifth consecutive quarter.

國內 RPD 同比增長 7%，連續第八個季度超過 30 美元。我們不斷增長的優質單位組合與優質遊戲在季度末占我們安裝單位的 15% 以上，進一步優化安裝基礎和總體穩定的宏觀經濟背景，所有這些都有助於我們在本季度提高 RPD 性能。展望第二季度，有機會同時激活新的優質單位客戶並擴大我們對現有客戶的滲透，再加上我們核心單位足蹟的持續穩定，這將使我們能夠連續第五個季度擴大我們的國內安裝基礎。

Consistent with the expectations we articulated at the start of the year, we continue to believe our ability to leverage multiple company-specific catalysts, including our high-performing Spectra cabinet, increasingly deep and diverse core content portfolio and consistent premium game market penetration momentum should allow us to comfortably sustain domestic EGM RPD above the $30 level throughout the second quarter.

與我們在年初表達的預期一致，我們仍然相信我們有能力利用多個公司特定的催化劑，包括我們的高性能 Spectra 內閣、越來越深入和多樣化的核心內容組合以及持續的優質遊戲市場滲透勢頭應該使我們能夠在整個第二季度輕鬆地將國內 EGM RPD 維持在 30 美元以上的水平。

Shifting to EGM unit sales. First quarter global unit sales increased by more than 15% year-over-year, topping 1,100 units for the second consecutive quarter, growing customer demand for our chart-topping Spectra cabinet with Spectra sales more than doubling versus Q4 2022 levels and over 45% increase in the number of customers sold to complementary sales into international markets and an increase in market-wide purchasing demand paced our improved unit sales performance in the quarter.

轉向 EGM 單位銷售。第一季度全球單位銷量同比增長超過 15%，連續第二個季度超過 1,100 台，客戶對我們排名第一的 Spectra 機櫃的需求不斷增長，Spectra 銷量比 2022 年第四季度增長了一倍多，增幅超過 45%銷售到國際市場的補充銷售客戶數量的增加以及整個市場採購需求的增加加快了我們本季度單位銷售業績的改善。

As we look ahead to Q2, the same set of strategic initiatives underpinning our outsized first quarter unit sales growth coupled with an anticipated normal seasonal lift in operator slot capital spending should allow us to deliver global EGM unit sales volumes that exceed Q1 levels.

展望第二季度，支持我們第一季度單位銷售大幅增長的同一套戰略舉措，加上運營商插槽資本支出的預期正常季節性增長，應該使我們能夠實現超過第一季度水平的全球 EGM 單位銷量。

Moving on to EGM pricing. First quarter global average selling price, or ASP, increased 2% versus the prior year to over 19,500 driven by a greater mix of premium priced Spectra cabinet sales and continued implementation of our price integrity initiatives. Based on our anticipated Q2 unit sales mix, we expect ASPs to look relatively similar to the level achieved in the first quarter.

繼續 EGM 定價。第一季度全球平均售價 (ASP) 比上年增長 2% 至 19,500 多美元，這主要得益於高價 Spectra 櫥櫃銷售組合的增加以及我們繼續實施價格誠信計劃。根據我們預期的第二季度單位銷售組合，我們預計平均售價看起來與第一季度達到的水平相對相似。

Turning to our international EGM business. Recurring revenue increased by more than 15% year-over-year and improved sequentially for the 11th consecutive quarter. The continued strong performance of several established AGS franchise game themes throughout Mexico, further installed base optimization, stable macroeconomic trends and favorable FX movements contributed to our improved recurring revenue performance in the quarter. International RPD topped $8 for the first time since Q2 2019 increasing by more than 30% year-over-year on an as-reported basis and by over 20% when adjusted for FX.

轉向我們的國際 EGM 業務。經常性收入同比增長超過 15%，連續第 11 個季度環比增長。在整個墨西哥，幾個已建立的 AGS 特許經營遊戲主題的持續強勁表現、進一步的安裝基礎優化、穩定的宏觀經濟趨勢和有利的外匯走勢有助於我們改善本季度的經常性收入表現。根據報告，國際 RPD 自 2019 年第二季度以來首次突破 8 美元，同比增長超過 30%，經匯率調整後增長超過 20%。

Exiting Q1, our Mexico recurring revenue business was run rating at approximately 75% of 2019 levels compared to a little over 60% 1 year ago. Supported by the consistent operating trends we continue to observe throughout Mexico, we believe we should be able to further close the 2019 revenue gap during the second quarter. Looking beyond EGMs, our table products business delivered another record quarter with revenues topping $4 million.

退出第一季度，我們的墨西哥經常性收入業務的運行評級約為 2019 年水平的 75%，而一年前略高於 60%。在我們繼續在整個墨西哥觀察到的一致運營趨勢的支持下，我們相信我們應該能夠在第二季度進一步縮小 2019 年的收入差距。放眼 EGM 之外，我們的餐桌產品業務創造了另一個創紀錄的季度，收入超過 400 萬美元。

Card shuffler revenues more than doubled year-over-year, driven by growing customer adoption of our PAX S single-deck shuffler. Progressive revenue increased by more than 10% versus the prior year and we activated our second largest AGS Arsenal site license contract during the quarter. With momentum in the business accelerating, we believe we should be able to improve upon our record-setting Q1 performance in the second quarter.

由於越來越多的客戶採用我們的 PAX S 單層洗牌機，洗牌機的收入同比增長了一倍多。與上一年相比，累進收入增加了 10% 以上，我們在本季度啟動了第二大 AGS Arsenal 站點許可合同。隨著業務發展勢頭的加速，我們相信我們應該能夠在第二季度創紀錄的第一季度業績基礎上有所改善。

Shifting to Interactive. Trends within the business once again proved stable throughout the first quarter as revenue exceeded $2.5 million for the fourth consecutive quarter while the segment continued to generate positive adjusted EBITDA. Real money gaming revenues increased by approximately 5% versus the prior year, supported by continued outsized growth within the North American RMG channel.

轉向互動。該業務的趨勢在整個第一季度再次保持穩定，收入連續第四個季度超過 250 萬美元，同時該部門繼續產生積極的調整後 EBITDA。在北美 RMG 渠道持續大幅增長的支持下，真錢博彩收入比上一年增長了約 5%。

Looking ahead, we expect Q2 segment level revenues to look relatively similar to those achieved in Q1 with a more pronounced lift-off occurring in the back half of the year as payoff from recent investments into our technical and commercial teams and upside from recent new customer activations become better reflected in our quarterly results.

展望未來，我們預計第二季度的細分市場收入與第一季度的收入相似，下半年將出現更明顯的增長，這是因為最近對我們技術和商業團隊的投資帶來的回報以及最近新客戶帶來的好處激活更好地反映在我們的季度業績中。

Turning to margins. first quarter adjusted EBITDA margin was approximately 44%, in line with the expectations articulated on our Q4 call. Although we continue to expect full year adjusted EBITDA margin to land in the 44% to 45% range I would note, seasonal costs associated with our GameOn customer conference are likely to push our second quarter margin slightly below the low end of our targeted full year range.

轉向利潤率。第一季度調整後的 EBITDA 利潤率約為 44%，符合我們在第四季度電話會議上提出的預期。儘管我們繼續預計全年調整後的 EBITDA 利潤率將在 44% 至 45% 的範圍內下降，但與我們的 GameOn 客戶會議相關的季節性成本可能會使我們第二季度的利潤率略低於我們目標全年的低端範圍。

First quarter capital expenditures totaled $14 million. We continue to expect full year capital expenditures to land in the range of $65 million to $70 million, inclusive of anticipated capitalized R&D expenditures. Cash interest in the quarter was approximately $13 million, a level we believe serves as a good run rate for the remainder of the year, barring any material change in market level rates. First quarter free cash flow, defined as net operating cash flow less CapEx and was negative $10 million, inclusive of approximately $7 million related to annual employee bonus payments, which we highlighted on our Q4 call.

第一季度資本支出總計 1400 萬美元。我們繼續預計全年資本支出將在 6500 萬至 7000 萬美元之間，包括預期的資本化研發支出。本季度的現金利息約為 1300 萬美元，我們認為這一水平在今年剩餘時間裡是一個良好的運行率，除非市場利率發生任何重大變化。第一季度自由現金流，定義為淨運營現金流減去資本支出，為負 1000 萬美元，其中包括與年度員工獎金支付相關的約 700 萬美元，我們在第四季度電話會議上強調了這一點。

Additionally, the timing of EGM unit sales in the quarter and an increase in EGM component inventory to allow for timely fulfillment of the demand we see building within the business impacted Q1 free cash flow by a little over $7.5 million. Adjusting for these timing-related items, free cash flow would have been nicely positive for the quarter. Looking out over the remainder of the year, we expect to neutralize a significant portion of the Q1 working capital related impact. That said, when coupled with the relative consistency we continue to observe within our day-to-day operations and our organizational focus on capital deployment discipline, we remain confident in our ability to deliver positive free cash flow over the remainder of 2023, with the level of free cash flow building sequentially as we progress throughout the year.

此外，本季度 EGM 單位銷售的時間以及 EGM 組件庫存的增加可以及時滿足我們在業務中看到的需求，這對第一季度的自由現金流產生了略高於 750 萬美元的影響。對這些與時間相關的項目進行調整後，本季度的自由現金流量將非常積極。展望今年剩餘時間，我們預計將抵消第一季度營運資本相關影響的很大一部分。也就是說，再加上我們在日常運營中繼續觀察到的相對一致性以及我們對資本部署紀律的組織關注，我們仍然相信我們有能力在 2023 年剩餘時間內提供正的自由現金流，隨著我們全年的進步，自由現金流量的水平依次增加。

Finally, turning to the balance sheet. Net leverage at quarter end was 3.8x, consistent with the prior sequential quarter. Supported by our solid first quarter performance, the relative stability we continue to observe across our recurring revenue business channels, the growing demand for our high-performing for-sale products and our confidence in our ability to deliver positive free cash flow over the remainder of the year, we remain on track to exit 2023 with net leverage in the range of 3.25x to 3.75x. I would remind everyone the assumption underpinning the 3.5x midpoint of our targeted leverage range continue to contemplate a modest pullback in prevailing market level conditions as compared to those encountered in 2022 and the 2023 year-to-date period.

最後，轉向資產負債表。季度末的淨槓桿率為 3.8 倍，與上一季度一致。在我們穩健的第一季度業績、我們在經常性收入業務渠道中繼續觀察到的相對穩定性、對我們高性能待售產品不斷增長的需求以及我們對我們在剩餘時間提供正自由現金流的能力的信心的支持下今年，我們仍有望以 3.25 倍至 3.75 倍的淨槓桿率在 2023 年結束。我想提醒大家，支撐我們目標槓桿範圍 3.5 倍中點的假設繼續考慮與 2022 年和 2023 年年初至今期間遇到的情況相比，當前市場水平條件會適度回調。

That said, should the broader market trends remain relatively consistent with those we are currently experiencing we would expect to exit 2023 with net leverage in the bottom half of the range. Finally, it is important to note, we intend to pursue a balanced approach to deleveraging the business supported by a combination of adjusted EBITDA growth and consistent free cash flow generation.

也就是說，如果更廣泛的市場趨勢與我們目前正在經歷的趨勢保持相對一致，我們預計到 2023 年退出時淨槓桿率將處於該範圍的下半部分。最後，需要注意的是，我們打算採用一種平衡的方法來對業務進行去槓桿化，同時調整後的 EBITDA 增長和持續產生的自由現金流相結合。

Operator, this concludes our prepared remarks. We would now like to open the line up for questions.

接線員，我們準備好的發言到此結束。我們現在想開始提問。

(Operator Instructions) Our first question comes from Jeff Stantial from Stifel.

（操作員說明）我們的第一個問題來自 Stifel 的 Jeff Stantial。

Starting off on the game op business. We've heard some operators this earnings cycle call out some softness in kind of select Southern states kind of later in Q1 and into Q2. Just curious if you're seeing any sort of interesting dislocations when you look at your game op business, whether that's by geography, by customer, just any sort of bifurcation and kind of patterns.

開始從事遊戲運營業務。我們聽說一些運營商在這個盈利週期中稱，在第一季度晚些時候和第二季度，部分南部各州的業績有些疲軟。只是想知道當您查看您的遊戲運營業務時是否看到任何有趣的錯位，無論是按地理位置，按客戶，還是任何類型的分叉和模式。

Thanks. So broadly, we see a lot of consistency, right? As far as you're getting into the specifics of jurisdiction by jurisdiction. I think that we've seen a little bit of that up and down a little bit from time to time. But broadly, across the United States, when we look at the nation as a whole we do see the stability and it's continued. And there's nothing in sight right now where we see anything changing in particular.

謝謝。總的來說，我們看到了很多一致性，對吧？就您了解管轄權的具體情況而言。我認為我們不時會看到一些上下波動的情況。但從廣義上講，在整個美國，當我們將整個國家視為一個整體時，我們確實看到了穩定，而且這種穩定還在繼續。現在看不到任何特別變化的地方。

Great. That's helpful. And then for my follow-up, Kimo, I wanted to revisit the capital allocation strategy a little bit. You mentioned several times the deleverage and investment into the business and various growth opportunities as the main priority here. But with that in mind, is there a certain level I guess, where the yield on your stock is just too compelling kind of warrants revisiting potential share repurchases? Just kind of any thoughts there on how you view the calculus would be helpful.

偉大的。這很有幫助。然後對於我的後續行動，Kimo，我想稍微重新審視一下資本配置策略。您多次提到去槓桿化和對業務的投資以及各種增長機會是這裡的主要優先事項。但考慮到這一點，我猜是否有一定的水平，你的股票的收益率太過引人注目，需要重新審視潛在的股票回購？關於您如何看待微積分的任何想法都會有所幫助。

Yes. I mean, we said it once, twice, three times and we'll say it again, right? Like I think our 100% focus is on deleveraging the business. And I think if you look at our outlook for the year, right? Like we gave a pretty broad range, but we said that the midpoint should come in at, call it, 3.5x. And with that, we do have an assumption that to hit that range. We do have some moderation in the back half of the year. But bringing it back to your original question, that's our singular focus. I think does the topic come up? Yes. But I think over and over in our focus is to continue to deleverage the business as opposed to entertaining using free cash flow to do something like buying back stock. Before, like optionality is great, right? So I think accumulating cash on the balance sheet as we move through the year and moving forward into next year of success, puts us in such a great position to have options as well.

是的。我的意思是，我們說過一次、兩次、三次，然後我們會再說一遍，對嗎？就像我認為我們 100% 的重點是去槓桿化業務。我想如果你看看我們今年的展望，對吧？就像我們給出了一個相當廣泛的範圍，但我們說中點應該進入，稱之為 3.5 倍。有了這個，我們確實有一個假設要達到那個範圍。我們在今年下半年確實有一些緩和。但回到你最初的問題，這是我們唯一的關注點。我想這個話題來了嗎？是的。但我一遍又一遍地認為，我們的重點是繼續去槓桿化業務，而不是娛樂性地利用自由現金流來做一些事情，比如回購股票。以前，可選性很好，對吧？因此，我認為在我們度過這一年並邁向成功的明年時，在資產負債表上積累現金，使我們處於如此有利的位置，也可以擁有選擇權。

And that question does come up because, obviously, our valuation is where it is, and we think it's extremely undervalued. So we do ask ourselves the question frequently, but we do come back to the same thing, which is our investors largely, and we believe that deleveraging is the way to go.

這個問題確實出現了，因為很明顯，我們的估值就在那裡，我們認為它被極度低估了。所以我們確實經常問自己這個問題，但我們確實回到了同一件事上，這主要是我們的投資者，我們相信去槓桿化是一條出路。

Our next question comes from Barry Jonas from Truist .

我們的下一個問題來自 Truist 的 Barry Jonas。

David, we've been hearing trends stable for some time now despite all the stock market volatility I guess -- I don't think we've talked about this, but I'm curious to get your perspective on -- at what point do you think gaming operators start tailing back on their spend? Is there sort of like a 10% reduction in GGR. I just would love to get your thoughts that at what point does the stock market volatility be justified by -- because it doesn't seem to make sense today.

大衛，儘管我猜股市波動很大，但我們已經聽到趨勢穩定一段時間了——我不認為我們已經討論過這個問題，但我很想知道你的觀點——在什麼時候您認為博彩運營商會開始縮減開支嗎？ GGR 是否有 10% 的減少？我只是想听聽你的想法，在什麼時候可以證明股市波動是合理的——因為今天這似乎沒有意義。

Sorry, you're asking me to agree with you that it doesn't make sense. I mean, I agree that it doesn't make sense, right? And I think what you're saying is should this thing around the corner show up, right? I mean should things get soft, you're asking when do -- how much do operators pull back on CapEx and other things. And I think that's very difficult to say. I think it's the scale. Again, stock markets all over the place. If this were to come to fruition, what's the scale of it. And I think based on that scale, they would make decisions.

抱歉，您要我同意您的看法，這沒有任何意義。我的意思是，我同意這沒有意義，對吧？我想你的意思是拐角處的這個東西應該出現，對嗎？我的意思是，如果情況變軟，你問的是什麼時候——運營商會在資本支出和其他方面縮減多少。我認為這很難說。我認為這是規模。同樣，到處都是股票市場。如果這要實現，它的規模是多少。我認為基於這種規模，他們會做出決定。

I think they're good true to operators out there. And -- but to date, you're asking of the hypothetical question, but to date, especially in the CapEx space, that's the one thing that's the barometer for what's happening or what they believe might happening, there's no pullback. So the current scenario is operators have not shown us anything to say they believe things are going to get soft. So right now, CapEx is strong. I think their beliefs are strong. I've been following the calls, and I think that overall, it's been a positive tone.

我認為它們非常適合那裡的操作員。而且 - 但到目前為止，你問的是假設性問題，但到目前為止，特別是在資本支出領域，這是正在發生的事情或他們認為可能發生的事情的晴雨表，沒有回調。因此，目前的情況是運營商沒有向我們展示任何他們認為情況會變得疲軟的信息。所以現在，資本支出很強勁。我認為他們的信念很堅定。我一直在關注這些電話，我認為總體而言，這是一個積極的基調。

Okay. Okay. Great. And then last quarter, you announced entrance into 3 new states, Colorado, Mississippi, Missouri, just curious if you can give us any update on how that's trending so far?

好的。好的。偉大的。然後在上個季度，您宣布進入 3 個新州，科羅拉多州、密西西比州和密蘇里州，只是想知道您是否可以向我們提供有關目前趨勢如何的最新信息？

Yes. So I mean, I think it's early in the game, but it will go well for us. We're pleased with where we stand there and how things will go. They're [fair] markets for us. It's all greenfield. They're decent sized markets. So we're excited about it and excited to get in there and do some business. Obviously, we've got some great products. I think that the table games crew is anxious to get in there and start moving product and I'm sure they will. And our slot product with what's going on with the Spectra 43 and our premium business. I think we've got plenty of work to do in there and plenty of progress to pick on. So we're excited about it.

是的。所以我的意思是，我認為現在還處於遊戲初期，但對我們來說會很順利。我們對我們所處的位置以及事情的發展方式感到滿意。他們是我們的 [公平] 市場。都是綠地。它們是規模適中的市場。所以我們對此感到很興奮，也很高興能進入那裡做一些生意。顯然，我們有一些很棒的產品。我認為桌面遊戲工作人員急於進入那裡並開始移動產品，我相信他們會的。還有我們的老虎機產品以及 Spectra 43 和我們的優質業務。我認為我們在那裡有很多工作要做，也有很多進展可以選擇。所以我們對此感到興奮。

We have our next question comes from Chad Beynon from Macquarie.

我們的下一個問題來自 Macquarie 的 Chad Beynon。

Nice quarter. First, just wanted to ask about ASPs. You guys have talked about your price integrity initiatives and ASPs were strong for another quarter particularly in a quarter when you sold record units. So just wondering what the competitive landscape is like? Is anyone discounting? Or if you're putting up the numbers and strong indexing that warrants your ability to continue to raise prices.

不錯的季度。首先，只想詢問有關 ASP 的問題。你們談到了你們的價格完整性計劃，並且平均售價在另一個季度表現強勁，尤其是在你們銷售創紀錄單位的那個季度。所以只是想知道競爭格局是什麼樣的？有人打折嗎或者，如果您提供的數字和強大的指數可以保證您有能力繼續提高價格。

Yes. Yes. I think you answered the question, actually. I think it's a great question and you sort of answered, which is if you're indexing well and you're performing well, like us, you're going to have really good ASPs. If you're not performing that well, I think that there's -- as per usual and any business out there. I think that you've got to discount a little bit. I have not seen any dramatic discounting at all. I'm sure there's some bundling and packaging that you see across different companies. But I haven't seen anything that I would refer to as aggressive or excessive so I think everybody is pretty stable, but you can look at ASPs on Eilers and it sort of gives you a good read on who's performing and what way.

是的。是的。我想你實際上回答了這個問題。我認為這是一個很好的問題，你得到了某種程度的回答，那就是如果你的索引良好並且表現良好，就像我們一樣，你將擁有非常好的 ASP。如果你表現不佳，我認為有——像往常一樣，還有任何業務。我認為你必須打折一點。我根本沒有看到任何戲劇性的折扣。我敢肯定，您會在不同的公司看到一些捆綁和包裝。但我還沒有看到任何我稱之為激進或過度的東西，所以我認為每個人都非常穩定，但你可以看看 Eilers 上的 ASPs，它可以讓你很好地了解誰在表演以及以什麼方式表演。

Great. And then separately, just on Naskila or Texas in general. Is there any update there or anything that we should be mindful of from a opportunity or timing standpoint as we think about our model for the next several quarters here?

偉大的。然後分別在 Naskila 或整個德克薩斯州。在我們考慮未來幾個季度的模型時，從機會或時間的角度來看，是否有任何更新或我們應該注意的事情？

Yes. So Texas, in general, you're asking sort of the Texas question there. Texas, in general, we continue to believe that, that's not a 2023 event, if you will bearing in mind even if it was a '23 event, it happens way down the road. But we do not believe it's something that's happening in 2023.

是的。所以德克薩斯州，總的來說，你在那裡問的是德克薩斯州的問題。德克薩斯州，總的來說，我們仍然相信，這不是 2023 年的賽事，如果你記住，即使這是 23 年的賽事，它也會發生在未來。但我們認為這不會發生在 2023 年。

As far as Naskila goes, no news at the moment, we continue to track it. Obviously, we have very good relationship with them. And so we're just waiting on them to make their final decisions. And I mean just a note as Naskila continues to perform amazingly from at least our side of the business, and I'm sure they're packed to the gills there as usual.

至於納斯基拉的去向，暫時沒有消息，我們繼續追踪。顯然，我們與他們的關係非常好。所以我們只是在等待他們做出最終決定。我的意思是，Naskila 至少在我們的業務方面繼續表現驚人，而且我確信他們像往常一樣被打包到那裡。

Okay. So there's nothing really kind of baked into that 3.25 to 3.75 leverage guide at this point?

好的。那麼此時 3.25 到 3.75 的槓桿率指南中沒有什麼真正的意義嗎？

No, no, no. Yes, no, we didn't do that.

不不不。是的，不，我們沒有那樣做。

Nice quarter guys.

好季度伙計們。

Thanks, Chad. Appreciate it.

謝謝，乍得。欣賞它。

Our next question comes from Edward Engel from ROTH MKM.

我們的下一個問題來自 ROTH MKM 的 Edward Engel。

Really nice quarter on the unit sales. It sounds like 2Q is going to be even stronger. Is there any kind of lumpy items in either of these quarters in terms of expansions or anything? And then typically, 4Q is kind of your biggest quarter of the year. Is 2Q the high watermark? Or do you actually expect a similar seasonality as the past?

單位銷售額的季度非常好。聽起來 2Q 會更厲害。在擴張或其他方面，這兩個季度中的任何一個是否有任何類型的塊狀項目？然後通常，第四季度是您一年中最大的季度。 2Q是高水位嗎？還是您實際上期望與過去類似的季節性？

So I'll start with the lumpy and then I'll turn it over to Brad, so he can sort of fine-tune the rest of those questions there. So nothing terribly lumpy within the quarter. I think you're looking for, hey, did someone come in with a huge buy and no, that is not the case. Again, we sold to a record number of customers for us, right? And we anticipate not only was that a record, but we anticipate that, that will expand going forward into Q2. I think the way to look at that is, again, very little lumpiness going forward as well and sort of going wider and deeper into the customer base. So I think that we can feel comfortable with that, not only in the quarter but going forward. As far as the rest of your question, I'll let Brad talk those through.

所以我會從塊狀開始，然後我會把它交給布拉德，這樣他就可以在那裡微調其餘的問題。因此，該季度內沒有什麼特別起伏的地方。我想你正在尋找，嘿，是否有人帶著大量購買而來，不，事實並非如此。再一次，我們為我們賣給了創紀錄數量的客戶，對吧？我們預計這不僅是一個記錄，而且我們預計這將擴展到第二季度。我認為看待這一點的方式是，再一次，向前發展的腫塊也很少，並且有點更廣泛、更深入地進入客戶群。所以我認為我們可以對此感到滿意，不僅在本季度而且在未來。至於你剩下的問題，我會讓 Brad 來談談。

Yes, Ed. I think it's a little bit early to be thinking too far out as far as what Q4 may or may not look like. I think, as David said, overall demand trends in the market are remarkably consistent on the purchasing side. And obviously, it helps to be in the market with a relation on performing product. As it relates to Q4, a decent factor in Q4 is sort of year-end capital spends of user (inaudible) capital budgets with the operator. So sometimes you don't get some color on that until we get closer to Q4 where we could talk about that a little bit more concretely. But I think from a high level right now, we like what we're seeing out there from a demand perspective, both from the market level and as it relates to the momentum that we have on the product side.

是的，埃德。我認為現在考慮第四季度可能會或可能不會是什麼樣子還為時過早。我認為，正如大衛所說，市場的整體需求趨勢在採購方面非常一致。顯然，在市場上與產品性能相關是有幫助的。與第 4 季度相關，第 4 季度的一個體面因素是運營商的用戶（聽不清）資本預算的年終資本支出。所以有時在我們接近第四季度之前你不會對此有所了解，在那裡我們可以更具體地討論這個問題。但我認為，從現在的高層次來看，我們喜歡我們從需求的角度看到的東西，無論是從市場層面還是與我們在產品方面的勢頭有關。

Helpful. And then it looks like your gross margin on EGM sales was the best it has been within a while. Are you starting to see some of these supply chain issues kind of in the real view mirror?

有幫助。然後看起來您的 EGM 銷售毛利率是一段時間內最好的。您是否開始在真實的鏡子中看到其中一些供應鏈問題？

Yes. So there's 2 factors in there. We talked about this a little last quarter. From a high level, as it relates to supply chain, things are definitely largely speaking, back on track. Prices have not obviously just like in the broader economic sense, not like completely round trip back to, say, pre COVID-type levels. But a lot of the craziness in the market has moderated. Lead times are relatively back to normal. So we're obviously benefiting from that trend.

是的。所以那裡有兩個因素。我們在上個季度討論過這個問題。從較高的層面來看，與供應鏈相關，事情肯定在很大程度上回到了正軌。價格顯然不像更廣泛的經濟意義上的那樣，不像完全往返回到 COVID 之前的水平。但市場上的許多瘋狂情緒已經緩和。交貨時間相對恢復正常。所以我們顯然從這一趨勢中受益。

And then the other thing that you really see from a sequential perspective is that Spectra, as we've said before, is a value-engineered product. And so it has very strong gross margins attached to it as a result. And so as Spectra grows to account for a greater portion of our mix, there will be continued gross margin benefit there. So it's really a factor of those 2 things, Spectra mix and then just continued normalization on supply chain broadly.

然後，從連續的角度來看，您真正看到的另一件事是，正如我們之前所說，Spectra 是一種價值工程產品。因此，它的毛利率非常高。因此，隨著 Spectra 在我們產品組合中所佔比例的增加，毛利率將持續受益。所以這真的是這兩件事的一個因素，Spectra 混合，然後在廣泛的供應鏈上繼續正常化。

Got it. And yes, congrats on that next quarter.

知道了。是的，祝賀下個季度。

Thanks, Ed.

謝謝，埃德。

Our next question comes from David Katz from Jefferies.

我們的下一個問題來自 Jefferies 的 David Katz。

Thanks for working again. Just from a little longer-term perspective, I mean, you're obviously getting a lot of traction with Spectra. And I guess, I apologize, I missed the first 10 to 12 minutes of the call, if you've talked about it. But what's next, right? Is there the sort of Spectra 2.0? Is there some new version, right? What does your pipeline look like so that you can sort of build on the success that you've had so far?

感謝您再次工作。從更長遠的角度來看，我的意思是，你顯然對 Spectra 有很大的吸引力。我想，我很抱歉，我錯過了電話的前 10 到 12 分鐘，如果你已經說過的話。但接下來是什麼，對吧？有那種 Spectra 2.0 嗎？有新版本的吧？你的管道是什麼樣子的，這樣你就可以在你已經取得的成功的基礎上再接再厲？

So I'm going to -- I'll give a little bit on this, David. But so unless we sort of show our product, we don't -- until we see the lights of their eyes, right? Because with our rollout of all our products, one of the things that we have to manage very closely is sort of like that pipeline and that road map. And so at the moment, we always have something coming, right? There's always something that works. We have a specific road map. I think we've been pretty consistent in how we release our products but at this point, we haven't announced anything. That's sort of the official end of that there. So -- but obviously, with every cabinet line, we come out with -- we continue to expand and do new things.

所以我要——大衛，我會對此做一些介紹。但是，除非我們展示我們的產品，否則我們不會——直到我們看到他們的眼睛，對吧？因為隨著我們推出所有產品，我們必須非常密切地管理的事情之一有點像管道和路線圖。所以目前，我們總是有一些事情要發生，對吧？總有一些有用的東西。我們有具體的路線圖。我認為我們在發布產品的方式上一直非常一致，但在這一點上，我們還沒有宣布任何事情。這就是那裡的正式結束。所以 - 但顯然，對於每條櫥櫃線，我們都會推出 - 我們會繼續擴展並做新的事情。

Yes. David, I would just add, as we've said in the prepared remarks, and as you're aware, we have really made some considerable investments in our R&D team over the last 2 to 3 years. And we really feel like both on the content and hardware side, where we need to be. We're in a position now to bring 70, 75 plus games to the market every year across a variety of different channels. And at the same time, we feel like we're in a position to be able to consistently bring some new hardware to the market on an annual basis. So really like where we are from a resource perspective, and I think that sort of puts the pillars in place to support really a nice constant long-term growth trajectory.

是的。大衛，我只想補充一點，正如我們在準備好的發言中所說的那樣，正如你所知，在過去的 2 到 3 年裡，我們確實對研發團隊進行了相當大的投資。我們真的覺得在內容和硬件方面都是我們需要的。我們現在可以每年通過各種不同的渠道向市場推出 70、75 多款遊戲。同時，我們覺得我們能夠每年不斷地向市場推出一些新硬件。所以從資源的角度來看，我們真的很喜歡我們所處的位置，我認為這種支柱已經到位，以支持真正良好的持續長期增長軌跡。

Got it. And can we just talk a bit more about the international opportunities. So many of us, as you're aware, feel like we have our intellectual arms around what goes on in North America relatively well. But the international stuff is just harder, right, in that respect. So David, what can you sort of help us paint a picture of where you're trying to enter, where you think you can penetrate. If you could just give us some continence, we could maybe drill down a little deeper and do some more work around it.

知道了。我們能否多談談國際機會。正如你所知，我們中的許多人都覺得我們對北美髮生的事情擁有相對較好的知識。但在這方面，國際比賽更難，對吧。所以大衛，你能幫我們描繪出你想進入的地方，你認為你可以滲透的地方。如果你能給我們一些節制，我們也許可以更深入地研究並圍繞它做更多的工作。

Yes. So for now, we're definitely, as you know, focused on North America, which is pretty much domestic. Canada, U.S., Mexico is considered domestic in my eyes. So Latin America, all of Latin America, South America, if you will, and the Caribbean is our "international focus" at the moment. And then from there, I don't know if it's going to be Europe or it's going to be Asia or it's going to be in Australia and New Zealand or something of the like. The good news is we have development teams in Australia, they know the market very well. So should we choose to expand into Australia, we're in pretty good position. But we really haven't talked about or made a firm decision on after Latin America what direction we're going to go.

是的。所以現在，正如你所知，我們肯定專注於北美，這幾乎是國內的。在我眼中，加拿大、美國、墨西哥被認為是國內的。所以拉丁美洲，整個拉丁美洲，南美洲，如果你願意的話，還有加勒比地區是我們目前的“國際焦點”。然後從那裡開始，我不知道它是歐洲還是亞洲還是澳大利亞和新西蘭或類似的地方。好消息是我們在澳大利亞有開發團隊，他們非常了解市場。因此，如果我們選擇擴展到澳大利亞，我們處於非常有利的位置。但我們真的還沒有討論或就拉丁美洲之後我們要走的方向做出堅定的決定。

We do get some pretty good inquiries out of Europe as far as our product goes. But we haven't made a decision to enter that market yet. But Latin America/South America and then you can look at, obviously, Europe, Asia and Australia are all optionality for us with Australia maybe being one of the good ones. I guess when you say Australia, you should really say all of Asia Pac, but our teams dial into that, of course, because that's where they reside.

就我們的產品而言，我們確實從歐洲收到了一些很好的詢問。但我們還沒有決定進入那個市場。但是拉丁美洲/南美，然後你可以看看，顯然，歐洲、亞洲和澳大利亞對我們來說都是可選的，澳大利亞可能是其中之一。我想當你說澳大利亞時，你真的應該說整個亞太地區，但我們的團隊當然會撥入那個地區，因為那是他們居住的地方。

Understood. I appreciate it. And nice quarter.

明白了。我很感激。和漂亮的季度。

Thanks, David.

謝謝，大衛。

(Operator Instructions) With our next question comes from David Bain from B. Riley.

（操作員說明）我們的下一個問題來自 B. Riley 的 David Bain。

Great. Thanks so much and echoing the nice quarter. I know you have a lot of runway, but I was hoping to follow up on David Katz's question regarding maybe not new cabinets coming out this year or anything like that. But if you could help us think about new categories that could come out in the next 12 to 18 months, I mean there seem to be a lot that are still white space for AGS like [Macrios] LAP, VLTs, et cetera. Can those be 2024 events? And then can you remind us for Colorado, Missouri and [Minnesota], are those kind of back half of this year? Or are we already starting to see some benefit there?

偉大的。非常感謝並回應這個美好的季度。我知道你有很多跑道，但我希望跟進 David Katz 關於今年可能不會推出新櫥櫃或類似問題的問題。但是，如果你能幫助我們考慮在未來 12 到 18 個月內可能出現的新類別，我的意思是似乎有很多 AGS 仍然是空白的，比如 [Macrios] LAP、VLT 等等。這些可以是 2024 年的事件嗎？然後你能提醒我們科羅拉多州、密蘇里州和[明尼蘇達州]，這些是今年的後半年嗎？或者我們已經開始看到一些好處了嗎？

So I'll start with the categories. Again, I haven't announced anything on the category front either. I think that with the way we're set up as an R&D team and the investments that we made, I think that some of those categories are optionality for us. Nothing to report on at the moment, but we're pretty well positioned, if you will, to pick a new category if we go that route. And then I'll turn it over to Brad on the new jurisdiction front.

所以我將從類別開始。同樣，我也沒有在類別方面宣布任何事情。我認為，根據我們作為研發團隊的建立方式和我們所做的投資，我認為其中一些類別對我們來說是可選的。目前沒有什麼可報告的，但如果你願意的話，如果我們走那條路，我們已經做好了選擇一個新類別的準備。然後我將在新的管轄範圍內將其交給布拉德。

Yes, David, as it relates to the new jurisdictions, just a reminder, in aggregate, Colorado, Missouri and Minnesota are about 40,000 units as a market opportunity. We are currently underway with some of our product testing and would expect to have our initial installs into those markets in the back half, as you said. I think it is important to remember that in the case of 2 of those markets, Colorado, Missouri, they are very heavily dominated by multi-jurisdiction operators who know our product well and with whom we already have existing relationships. So we think we'll be able to hit the ground running in those markets. So really excited about the opportunity there, both on the slot and table side of the business.

是的，大衛，因為它涉及到新的司法管轄區，只是提醒一下，科羅拉多州、密蘇里州和明尼蘇達州總共有大約 40,000 個單位，這是一個市場機會。正如您所說，我們目前正在進行一些產品測試，並希望在下半年對這些市場進行初步安裝。我認為重要的是要記住，在密蘇里州科羅拉多州這兩個市場的情況下，它們在很大程度上由多轄區運營商主導，他們非常了解我們的產品並且我們已經與他們建立了現有關係。所以我們認為我們將能夠在這些市場上取得成功。對業務的老虎機和桌面方面的機會感到非常興奮。

Okay. Awesome. And then if I could -- and I don't know if you already covered this, but given the momentum that you have, and sometimes we've seen this with suppliers in the past when they really start to move higher. It kind of builds on itself. I know Spectra is a big category, high denom, obvious success there. Are you beginning to see customers say kind of what else you got? Or like how does that sort of work towards other products? Is there some sort of add-on effect?

好的。驚人的。然後，如果可以的話——我不知道你是否已經談到了這一點，但鑑於你所擁有的勢頭，有時我們在供應商真正開始走高的時候已經看到了這一點。它有點建立在自己身上。我知道 Spectra 是一個大類別，高面額，在那裡取得了明顯的成功。您是否開始看到客戶說您還得到了什麼？或者像這種對其他產品的作用如何？是否有某種附加效果？

I think that -- I mean I think you nailed it. This is something we've seen in the industry. I think it also, David exists in the table game space. This isn't just restricted to the slot space like table games, where we started with a little bit of content, and we had some takers and then we got into progressives and progressives became a very dominant product. And clearly, we had some takers there. So we got had takers on progressive and content. And now we have shufflers.

我認為 - 我的意思是我認為你成功了。這是我們在行業中看到的事情。我也認為，大衛存在於桌面遊戲空間中。這不僅僅局限於像桌上游戲這樣的老虎機空間，我們從一些內容開始，我們有一些接受者，然後我們進入了累進遊戲，累進遊戲成為了一個非常占主導地位的產品。很明顯，我們在那裡有一些接受者。所以我們得到了進步和內容的接受者。現在我們有了洗牌器。

And so as you know, that momentum, you're referring to in a very accurate way. Momentum starts to build much more than when you have one successful thing within a category, for example, tables. So that's worked for us very well on tables. You can see it in the results. Yes, on the slot side, I think that -- with everything that we've done prior to Spectra, we had a lot of success in various categories, products, titles, et cetera. But I think Spectra is now taking us to another level. And it's our expansion into most customers we sold to ever has to do with obviously some approvals. It has to do with having a better constructed sales team, geography and the quality of the team.

如您所知，您指的是一種非常準確的勢頭。當你在一個類別中有一件成功的事情時，例如，表格，動力開始建立更多。所以這對我們在桌子上非常有效。您可以在結果中看到它。是的，在老虎機方面，我認為——憑藉我們在 Spectra 之前所做的一切，我們在各種類別、產品、標題等方面取得了很大的成功。但我認為 Spectra 現在正在把我們帶到另一個層次。這是我們向我們銷售的大多數客戶的擴張，這顯然與一些批准有關。這與擁有更好的銷售團隊、地域和團隊質量有關。

And of course, I think that as you roll out something like Spectra and it has the success that it had so far, yes, you now have the synergistic momentum from a number of different things. Core products doing very well. Historically, the Orion Portrait being the cabinet that it was then you go Orion Curve with our premium product that's been successful.

當然，我認為當你推出像 Spectra 這樣的東西並且它取得了迄今為止的成功時，是的，你現在擁有來自許多不同事物的協同動力。核心產品做得很好。從歷史上看，Orion Portrait 是櫥櫃，然後您使用我們成功的優質產品選擇 Orion Curve。

And last but not least, what you mentioned, which is Spectra 43. So I think there's that synergistic momentum there for sure. And I think it's helping us sell not just to more customers, but getting a little wider and deeper into each customer. And then, of course, we've picked up some corporates that have been a little bit more of a challenge and now we're breaking into those as well.

最後但並非最不重要的是，你提到的是 Spectra 43。所以我認為那里肯定存在協同勢頭。我認為它不僅幫助我們向更多客戶銷售產品，而且更廣泛、更深入地了解每個客戶。然後，當然，我們已經挑選了一些更具挑戰性的公司，現在我們也正在進入這些公司。

(Operator Instructions) We have no further questions on the line. Ladies and gentlemen, this concludes today's call. Thank you for joining. You may now disconnect your lines.

（操作員說明）我們沒有其他問題了。女士們，先生們，今天的電話會議到此結束。感謝您的加入。您現在可以斷開線路。