PlayAGS Inc (AGS) 2023 Q4 法說會逐字稿

Hello, everyone. Thank you for attending today's PlayAGS fourth-quarter and full-year 2023 earnings call. My name is Sierra, and I'll be your moderator for today. (Operator Instructions)

大家好。感謝您參加今天的 PlayAGS 第四季和 2023 年全年財報電話會議。我的名字是 Sierra，我將擔任今天的主持人。（操作員說明）

I would like to pass the conference over to our host, Brad Boyer, Senior Vice President of Investor Relations.

我想將會議交給我們的東道主、投資者關係高級副總裁布拉德·博耶 (Brad Boyer)。

Thank you, operator, and good afternoon, everyone. Welcome to the PlayAGS Incorporated fourth-quarter and full-year 2023 earnings conference call. With me today are David Lopez, CEO, and Kimo Akiona, CFO. A slide presentation reviewing our key operational and financial highlights for the fourth quarter and fiscal year ended December 31, 2023 can be found on our Investor Relations website, investors.playags.com.

謝謝接線員，大家下午好。歡迎參加 PlayAGS Incorporated 第四季和 2023 年全年財報電話會議。今天與我在一起的有執行長 David Lopez 和財務長 Kimo Akiona。您可以在我們的投資者關係網站 Investors.playags.com 上查看幻燈片演示，回顧我們截至 2023 年 12 月 31 日的第四季度和財年的主要營運和財務亮點。

On today's call, we will provide an overview of our Q4 and full-year 2023 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.

在今天的電話會議上，我們將概述我們第四季度和 2023 年全年的財務業績，並就我們當前的業務財務前景提出看法。本次電話會議將包括前瞻性陳述的使用。任何涉及未來事件的預期、預測或其他特徵（包括財務預測或未來市場狀況）的聲明都是基於當前假設的前瞻性聲明。

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 the risks described in our annual report on Form 10-K, particularly in the section of these documents titled Risk Factors.

實際結果可能與這些前瞻性陳述中表達的結果有重大差異，我們沒有義務更新我們的揭露。有關可能導致我們的實際結果與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 表格年度報告中描述的風險，特別是在這些文件中標題為「風險因素」的部分。

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.

我們今天的評論還將包括非公認會計準則財務指標。我們相信，使用這些非公認會計準則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績效和趨勢。這些措施不應孤立地考慮或取代根據公認會計原則準備的財務資訊。我們報告的業績的 GAAP 和非 GAAP 指標之間的調整可以在我們今天發布的收益報告中找到。請參閱我們向 SEC 提交的文件以了解更多資訊。

With that, I would like to turn the call over to our CEO, David Lopez.

說到這裡，我想將電話轉給我們的執行長大衛洛佩茲。

Thanks, Brad, and good afternoon, everyone. The fourth quarter capped off an exceptional year for AGS with revenues and adjusted EBITDA increasing 15% year over year. Q4 represented our 11th consecutive quarter of double-digit growth and our fifth consecutive quarter of double-digit adjusted EBITDA growth.

謝謝布拉德，大家下午好。第四季為 AGS 帶來了非凡的一年，營收和調整後 EBITDA 年成長 15%。第四季是我們連續第 11 季實現兩位數成長，也是我們連續第 5 季調整後 EBITDA 達到兩位數成長。

The strength in the quarter was broad-based with all three operating segments setting new quarterly records for revenue and adjusted EBITDA. The quality and consistency of our financial performance is a true reflection of our incredibly talented and focused team, increasingly deep and diverse product offerings across all three segments, and the improving efficiency and effectiveness of our execution.

本季的強勁勢頭基礎廣泛，所有三個營運部門都創下了收入和調整後 EBITDA 的新季度記錄。我們財務表現的品質和一致性真實反映了我們才華橫溢、專注的團隊、所有三個細分市場日益深入和多樣化的產品，以及我們執行效率和有效性的提高。

Before providing some perspective on the current year, I would like to highlight a few notable achievements for the fourth quarter. First, global EGM sales increased 36% year over year to a record 1,519 units, surpassing the 30% growth level for the third consecutive quarter. Just like Q3, our record performance was not driven by a concentration of sales to any one customer or within a jurisdiction as we sold units to nearly 180 unique customers in the quarter, a new record for the company.

在對今年進行一些展望之前，我想強調一下第四季的一些值得注意的成就。首先，全球EGM銷量年增36%，達到創紀錄的1,519輛，連續第三個季度超過30%的成長水準。就像第三季一樣，我們創紀錄的業績並不是由對任何一個客戶或某個司法管轄區的集中銷售推動的，因為我們在本季度向近180 個獨特客戶銷售了單位，這是公司的新紀錄。

Second, our interactive revenue grew by over 30% versus the prior year to $3.4 million, with strong flow-through of increasing interactive adjusted EBITDA by nearly 160% year over year to a record $1.3 million. Our refreshed and energized interactive team continues to further cement our position as a leading B2B content provider within the global real-money gaming market.

其次，我們的互動收入比上年增長了 30% 以上，達到 340 萬美元，互動調整後 EBITDA 的強勁流量年增近 160%，達到創紀錄的 130 萬美元。我們煥然一新、充滿活力的互動團隊繼續進一步鞏固我們作為全球真錢遊戲市場領先的 B2B 內容提供商的地位。

Third, table product sales and recurring revenue reached new records in the quarter, producing an approximately 20% increase in adjusted EBITDA to a record $2.8 million and pushing full-year adjusted EBITDA to approximately $10 million. I think it is important to remind everyone, our cable segment was doing less than $1 million of annual EBITDA in 2018 with a 60% growth CAGR over the past five years, reflecting the incredible work from our entire tables team.

第三，本季餐桌產品銷售和經常性收入創下新紀錄，調整後 EBITDA 成長約 20%，達到創紀錄的 280 萬美元，並將全年調整後 EBITDA 推至約 1,000 萬美元。我認為有必要提醒大家，我們的有線電視部門 2018 年的年度 EBITDA 不到 100 萬美元，過去五年的複合年增長率為 60%，這反映了我們整個賭桌團隊的出色工作。

Fourth, free cash flow increased more than 45% year over year to $11 million, topping the $10 million for the third consecutive quarter. We are encouraged by the progress made improving the consistency and magnitude of our free cash flow generation over the past several quarters, and I believe our organizational focus on this key metric will continue to drive consistent growth in our free cash flow conversion in 2024 and beyond. Kimo will provide some context around our free cash flow outlook for 2024 in his prepared remarks.

第四，自由現金流年增超過 45%，達到 1,100 萬美元，連續第三個季度突破 1,000 萬美元。我們對過去幾季在提高自由現金流產生的一致性和規模方面取得的進展感到鼓舞，我相信我們組織對這一關鍵指標的關注將繼續推動 2024 年及以後自由現金流轉換的持續成長。Kimo 將在他準備好的演講中提供有關我們 2024 年自由現金流前景的一些背景資訊。

Finally, we ended the year with net leverage at 3.2 times, down from 3.8 times at the start of the year and slightly below the low end of our targeted 3.25 times to 3.5 times range. We have considerably improved our leverage profile over the past several years and will continue to prioritize further deleveraging as our preferred use of excess capital for the foreseeable future with a path to below 3.0 times well within our sight.

最後，我們年底的淨槓桿率為 3.2 倍，低於年初的 3.8 倍，略低於我們目標 3.25 倍至 3.5 倍範圍的下限。在過去幾年中，我們的槓桿率狀況已得到顯著改善，並將繼續優先考慮進一步去槓桿化，作為在可預見的未來我們優先使用過剩資本的方式，我們認為槓桿率有望降至3.0 倍以下。

With all that said, I would like to turn my attention to 2024 and the exciting path forward for our company. As you have heard me say on prior calls, I continue to believe we have the strongest, most diverse product offerings in our company's history. Additionally, the quality of our team across all three operating segments and at the corporate level has never been better.

話雖如此，我想將注意力轉向 2024 年以及我們公司激動人心的前進道路。正如您在之前的電話中聽到我所說的那樣，我仍然相信我們擁有公司歷史上最強大、最多樣化的產品。此外，我們所有三個營運部門和公司層面的團隊品質也達到了前所未有的水平。

Lastly, the consistency and quality of our execution continues to steadily improve, as evidenced by our recent string of record operating performance. Collectively, I believe the three Ps of people, product, and process position us to not only improve upon our record 2023 results in the current year, but also set us up for compelling multi-year growth trajectory.

最後，我們執行的一致性和品質持續穩定提高，我們最近一系列創紀錄的經營業績證明了這一點。總的來說，我相信人員、產品和流程這三個 P 使我們不僅能夠在今年的 2023 年創紀錄業績的基礎上取得進步，而且還為我們奠定了引人注目的多年增長軌跡。

Within our EGM segment, the expanded scale and scope of our game content and cabinets portfolio-focused go-to-market strategy and driven sales team have us well-positioned on both sides of the business.

在我們的 EGM 部門中，我們的遊戲內容和機櫃組合的規模和範圍不斷擴大，以進入市場策略和驅動的銷售團隊為中心，使我們在業務雙方都處於有利地位。

For the first time in the company's history, we've had two high-performing cabinets, Spectra 43 and Spectra 49 with deep game libraries targeting the most in-demand product segment. Additionally, as we progress into the back half of 2024, we remain on schedule to make our initial push into the mechanical reel and jumbo segments with our mech reel cabinet recently receiving GLI approval.

在公司歷史上，我們第一次擁有兩款高效能機櫃：Spectra 43 和 Spectra 49，它們具有針對需求最大的產品領域的深度遊戲庫。此外，隨著我們進入 2024 年下半年，我們仍按計劃首次進入機械捲軸和大型細分市場，我們的機械捲軸櫃最近獲得了 GLI 批准。

Collectively, these two segments account for over 15% of the total units sold into the North American market, dramatically expanding our addressable market. Ultimately, our growth algorithm in slot sales is simple: first, further leverage our focused and targeted sales strategy and the recent strength of our product performance to broaden our customer base; and second, utilize the added diversity and quality of our product offerings to increase the average order size within our activated customers.

總的來說，這兩個細分市場佔北美市場銷售總量的 15% 以上，大大擴大了我們的潛在市場。最終，我們在老虎機銷售方面的成長演算法很簡單：首先，進一步利用我們專注和有針對性的銷售策略以及我們最近的產品性能優勢來擴大我們的客戶群；其次，利用我們產品的多樣性和品質來增加我們活躍客戶的平均訂單規模。

I'm confident the successful execution of our strategy will not only lead to ship share gains in 2024, but it will also set us on a path to becoming a top five supplier of choice for many years to come.

我相信，我們策略的成功執行不僅會在 2024 年帶來船舶份額的成長，而且還將讓我們走上在未來許多年成為排名前五的供應商的道路。

On the recurring revenue side of our domestic slot business, the outlook is equally as compelling. We have demonstrated over the past several quarter our unique mix-driven growth catalysts, including an increasingly powerful premium game offering and more diverse array of core content have armed us with the necessary tools to deliver consistent, modest growth in both domestic RPD and within our domestic EGM installed base.

在我們國內老虎機業務的經常性收入方面，前景同樣引人注目。在過去的幾個季度中，我們展示了我們獨特的混合驅動型成長催化劑，包括日益強大的優質遊戲產品和更多樣化的核心內容，為我們提供了必要的工具，以實現國內RPD 和我們內部的持續、適度成長。

Looking to 2024, I believe the unprecedented depth and diversity of our cabinet and content roadmaps across both the core and premium market segments should allow us to utilize a similar growth algorithm to deliver relative outperformance in domestic gaming operations revenue as compared to the rate of change observed in the market level GGR.

展望2024 年，我相信我們在核心和高端細分市場的內閣和內容路線圖具有前所未有的深度和多樣性，這將使我們能夠利用類似的成長演算法，在國內遊戲營運收入方面實現相對優於變化率的表現在市場水準 GGR 中觀察到。

Moving on to tables. Although we have come a long way over the past five years, I believe our recent momentum will continue throughout 2024 as we further solidify our position as a partner and innovator of choice within the market.

繼續討論桌子。儘管我們在過去五年中取得了長足的進步，但我相信，隨著我們進一步鞏固我們作為市場首選合作夥伴和創新者的地位，我們最近的勢頭將持續到 2024 年。

The enhanced features and functionality of our Bonus Spin Xtreme progressed and continued to be well received as evidenced by the 5% sequential growth in our BSX installed base achieved in the fourth quarter. Additionally, customer adoption of our efficient and effective PAX S shuffler continues to surge with our footprint surpassing 330 units at year-end and a healthy pipeline building for Q1.

我們的 Bonus Spin Xtreme 的增強特性和功能取得了進展，並繼續受到好評，第四季度 BSX 安裝量連續增長 5% 就證明了這一點。此外，客戶對我們高效、高效的 PAX S 洗牌機的採用持續激增，年底我們的佔地面積超過 330 台，第一季的管道建設也健康發展。

Finally, we continue to drive greater adoption of our AGS Arsenal site license offerings with several notable launches lined up for the first quarter. All told, I believe the unwavering strength of our three growth pillars, BSX, PAX, and Arsenal, coupled with our strategic focus on broadening our geographic and customer account reach and our continued progress on the development of a new multi-deck shuffler keep our table game business on a compelling multi-year growth trajectory.

最後，我們將繼續推動 AGS Arsenal 網站授權產品的廣泛採用，並在第一季推出了幾項值得注意的產品。總而言之，我相信我們的三大成長支柱（BSX、PAX 和Arsenal）堅定不移的實力，加上我們擴大地理和客戶客戶覆蓋範圍的戰略重點，以及我們在開發新型多層洗牌機方面的持續進展，使我們能夠繼續保持我們的優勢。

Finally, I'm greatly encouraged by the increasingly consistent and efficient execution with our interactive segment where our run rate of annualized revenue and adjusted EBITDA is now topping $13 million and $5 million, respectively. Although interactive is in the early innings of an outsized, multi-year growth cycle, I think it is important to highlight the February 2024 Eilers industry survey ranked us as the sixth largest provider of slot content to North America online market with a reported market share of approximately 5%.

最後，我們的互動部門日益一致和高效的執行令我深受鼓舞，我們的年化收入和調整後 EBITDA 的運作率現在分別超過 1300 萬美元和 500 萬美元。儘管 Interactive 正處於多年成長週期的早期階段，但我認為重要的是要強調 2024 年 2 月 Eilers 行業調查將我們列為北美線上市場第六大老虎機內容提供商，並報告了市場份額約5%。

Additionally, we produced the fourth best overall slot performance in the report with a reported index of 1.6 times site average with our capital gains team performing at the second best slot overall. Looking ahead, I believe the quality of our interactive team and the great number of strategic growth objectives, and our line of sight positions AGS to emerge as a leading share gainer within the high-growth RMG channel in both 2024 and beyond.

此外，我們在報告中的老虎機整體表現排名第四，報告指數為網站平均的 1.6 倍，而我們的資本利得團隊的老虎機整體表現排名第二。展望未來，我相信我們的互動團隊的品質和大量的策略成長目標以及我們的願景將使 AGS 在 2024 年及以後成為高成長 RMG 通路中領先的份額成長者。

In closing, I would like to thank our team members around the globe for their commitment, focus, and dedication throughout 2023. The record-setting performance we have been able to achieve as a true reflection of the quality products you have developed, the successful strategies you have orchestrated, and the efficient execution of your plan.

最後，我要感謝我們全球團隊成員在 2023 年的承諾、專注和奉獻。我們所取得的創紀錄業績真實反映了您開發的優質產品、您精心策劃的成功策略以及您計劃的高效執行。

With the most exciting lineup of new products and the highest quality team in my tenure as CEO, I remain extremely excited about what lies ahead for AGS and I look forward to sharing our progress with you on future calls.

憑藉我擔任執行長期間最令人興奮的新產品陣容和最優質的團隊，我對 AGS 的未來仍然感到非常興奮，並期待在未來的電話會議上與您分享我們的進展。

With that, I will turn the call over to Kimo.

這樣，我會將電話轉給 Kimo。

Thank you, David, and good afternoon to all of you on the call. As in prior quarters, I will review a couple of highlights from our reported results and provide perspective on how we see each of our business segments trending as we look ahead to the current year. I will also share some thoughts on our free cash flow outlook for 2024 and close by addressing a few items related to our balance sheet.

謝謝你，大衛，祝所有參加電話會議的人下午好。與前幾季一樣，我將回顧我們報告的業績中的一些亮點，並就我們如何看待今年每個業務部門的趨勢提供觀點。我也會分享對 2024 年自由現金流前景的一些想法，並透過解決與資產負債表相關的一些問題來結束。

Turning first to EGM equipment sales. Fourth quarter global unit shipments increased 36% year over year to a record 1,519 units, representing our third consecutive quarter of growth in excess of 30%. Sustained Spectra 43 momentum, supported by the continued strong performance of the cabinets, expanded suite of game content, initial sales of our successfully launched Spectra 49 cabinet, a more than 70% increase in our total customer count to nearly 180 unique customers, and stable market level demand trends once again contributed to our outsized unit sales growth in the quarter.

首先轉向 EGM 設備銷售。第四季全球出貨量年增 36%，達到創紀錄的 1,519 台，連續第三個季度成長超過 30%。Spectra 43 的持續勢頭，得益於機櫃持續強勁的表現、擴展的遊戲內容套件、我們成功推出的Spectra 49 機櫃的首次銷售、我們的總客戶數量增加了70% 以上，達到近180 個唯一客戶，而穩定市場層面的需求趨勢再次推動了我們本季銷售的大幅成長。

Fourth-quarter global ASP was approximately $20,700, up 7% versus the prior year. A greater mix of higher-priced Spectra family cabinet sales, which accounted for over 80% of total unit sales in the quarter, and further implementation of our price integrity initiatives contributed to our improved ASP performance in the quarter. Looking ahead to 2024, current consensus estimates project we should be able to grow Global EGM unit sales by approximately 3% over our just reported full year 2023 total of 5,244 units.

第四季全球平均售價約為 20,700 美元，比去年同期成長 7%。高價 Spectra 系列櫥櫃銷售的更多組合（佔本季總銷量的 80% 以上）以及價格誠信措施的進一步實施，促進了本季 ASP 業績的提高。展望 2024 年，目前的共識估計，我們的全球 EGM 銷量應該能夠比剛剛報告的 2023 年全年銷量 5,244 輛增長約 3%。

That said, we believe our ability to increase average order size through concurrently delivering a variety of high-performing titles on both Spectra 43 and Spectra 49, further activation of new customers, continued outsized share capture within the growing HHR market, our scheduled back-half launch into the mechanical reel and jumbo product verticals, a slightly more robust set of international sales opportunities, and the relatively consistent market level customer purchasing behavior observed 2024 to date should allow us to surpass the level of growth currently reflected in consensus.

也就是說，我們相信我們有能力透過在Spectra 43 和Spectra 49 上同時提供各種高效能遊戲、進一步啟動新客戶、在不斷增長的HHR 市場中持續獲取巨大份額、我們預定的支援來增加平均訂單規模。

From a cadence perspective, we expect 2024 to follow a similar seasonal pattern to 2023 with Q1 serving as our lowest volume quarter of the year and volumes building as we progress throughout the year. With respect to ASP, the $20,000 level should serve as a good proxy for 2024, supported by the premium pricing we continue to command on our Spectra family cabinets and further execution of our price integrity strategies.

從節奏的角度來看，我們預計 2024 年將遵循與 2023 年類似的季節性模式，第一季是我們全年銷售最低的季度，隨著我們全年的進展，銷量將不斷增加。就平均售價而言，20,000 美元的水平應該可以作為 2024 年的一個良好指標，這得益於我們繼續對 Spectra 系列機櫃實行溢價以及進一步執行我們的價格誠信策略。

Shifting to game ops. The positive underlying trends within our domestic EGM gaming operations business continued in the fourth quarter, with RPD comping $30 for the 11th consecutive quarter, while our domestic EGM installed base increased sequentially for the seventh consecutive quarter. Continued growth in our high-yielding premium game footprint, further optimization of our core unit installed base supported by deployment of our Spectra cabinet and increasingly diverse game content library, and relatively stable market level GGR trends push domestic RPD to a fourth quarter record of $31.68.

轉向遊戲操作。我們的國內 EGM 遊戲營運業務在第四季度繼續保持積極的基本趨勢，RPD 連續第 11 個季度達到 30 美元，而我們的國內 EGM 安裝基數連續第 7 個季度連續增長。我們的高收益優質遊戲足跡持續成長，透過部署我們的Spectra 機櫃和日益多樣化的遊戲內容庫來支持我們的核心單元安裝基礎的進一步優化，以及相對穩定的市場水平GGR 趨勢推動國內RPD 達到31.68 美元的第四季記錄。

Looking out over 2024, current Wall Street estimates project full-year market level gross gaming revenue to be flat to up 1% year over year, with Q1 GGR expected to be down 1% to 2% versus the prior year as a result of the heavily discussed weather disturbances in January. As we reflect on the outlook for our gaming, our domestic EGM gaming operations business in 2024, our high-level growth algorithm remains relatively consistent with the prior years.

展望 2024 年，目前華爾街預計全年市場水平博彩總收入將持平至同比增長 1%，其中第一季度博彩總收入預計將比上年下降 1% 至 2%，原因是人們廣泛討論了一月份的天氣幹擾。當我們反思 2024 年我們的遊戲、國內 EGM 遊戲營運業務的前景時，我們的高水準成長演算法與前幾年保持相對一致。

Notably, we expect to leverage our growing suite of premium EGM products with multiple new premium form factors and titles scheduled to launch throughout the year to thoughtfully and consistently expand the mix of higher-yielding premium games within our domestic installed base, building on our 16th consecutive quarter of premium unit growth.

值得注意的是，我們希望利用我們不斷增長的優質EGM 產品套件以及計劃於全年推出的多種新的優質外形規格和遊戲，在我們的國內安裝基礎上深思熟慮、持續擴大高收益優質遊戲的組合，以我們的第16 屆遊戲為基礎。

Additionally, we plan to utilize the enhanced scale and scope of our core EGM cabinet and content portfolio to execute upon the continuous installed base optimization strategies. Combined, we believe these mix-driven initiatives should allow us to once again deliver domestic RPD that outperforms relative to the market level GGR forecast I provided, while also keeping our domestic EGM installed base on a moderate long-term growth trajectory.

此外，我們計劃利用我們核心 EGM 內閣和內容組合的擴大規模和範圍來執行持續安裝基礎優化策略。總而言之，我們相信這些混合驅動的舉措應該使我們能夠再次實現國內 RPD，其表現優於我提供的市場水平 GGR 預測，同時也使我們的國內 EGM 安裝基礎保持在適度的長期增長軌跡上。

Turning to our international EGM business. The continued strong performance of our established AGS franchise game themes throughout the Mexico casino market, further execution of our global installed base optimization initiatives, a stable macroeconomic backdrop and favorable foreign exchange fluctuations contributed to a 16% year-over-year increase in fourth quarter gaming operations revenue. International RPD increased over 15% versus the prior year or approximately 4% on a constant currency basis to a fourth quarter record of $8.86.

轉向我們的國際臨時股東大會業務。我們已建立的 AGS 特許經營遊戲主題在整個墨西哥賭場市場的持續強勁表現、我們全球安裝基礎優化計劃的進一步執行、穩定的宏觀經濟背景和有利的外匯波動促成了第四季度同比增長 16%博彩業務收入。國際 RPD 較上年增長超過 15%，以固定匯率計算約增長 4%，達到第四季度創紀錄的 8.86 美元。

Looking ahead to 2024, we expect our international installed base to remain relatively consistent with year-end 2023 levels, while our ongoing optimization efforts and stable market level trends should contribute a modest growth in constant currency international EGM RPD for the full year.

展望 2024 年，我們預計我們的國際裝機量將與 2023 年年底的水平保持相對一致，而我們持續的優化工作和穩定的市場水平趨勢應有助於全年固定匯率國際 EGM RPD 的適度增長。

Looking beyond AGMs, Table Products revenues increased more than 20% year over year to a record $4.8 million. Greater customer adoption of our reliable and efficient PAX S card shuffler, innovative Bonus Xtreme progressive technology and an all-inclusive AGS Arsenal site license offering pushed recurring revenue to a record of nearly $4 million. Equipment sales revenue also established a new high watermark in the quarter, supported by the sale of more than 20 PAX S units in conjunction with a recent high-profile Las Vegas Strip casino opening.

除了年度股東大會之外，Table Products 的營收年增超過 20%，達到創紀錄的 480 萬美元。越來越多的客戶採用我們可靠、高效的 PAX S 洗牌機、創新的 Bonus Xtreme 漸進式技術以及包羅萬象的 AGS Arsenal 站點許可證產品，將經常性收入推向近 400 萬美元的創紀錄水平。由於超過 20 台 PAX S 設備的銷售以及最近備受矚目的拉斯維加斯大道賭場開業，設備銷售收入在本季度也創下了新高。

Turning to 2024, unwavering PAX interest and demand, a favorable customer response to the enhanced features and functionality recently added to our Bonus Spin Xtreme progressive, targeted jurisdictional expansion opportunities, and a compelling pipeline of Arsenal activations should keep our Table Products lease revenue stream on a trajectory of consistent and predictable growth similar to the one demonstrated in 2023. That said, I would encourage everyone to keep the timing and magnitude of sales revenue related to 2023 new casino opening activity in mind when putting together segment-level projections for the current year.

展望2024 年，堅定不移的PAX 興趣和需求、客戶對最近添加到我們的Bonus Spin Xtreme 漸進式、有針對性的司法管轄區擴張機會中的增強特性和功能的良好反應，以及令人信服的Arsenal 啟動管道，應該會保持我們的Table Products 租賃收入流與 2023 年類似的持續且可預測的成長軌跡。也就是說，我鼓勵大家在對本年度的細分市場進行預測時，牢記與 2023 年新賭場開幕活動相關的銷售收入的時間和規模。

Shifting to interactive, revenues grew by over 30% versus the prior year and 8% sequentially to a record $3.4 million. An accelerating cadence of new game launches, including the introduction of the company's first online, first game theme, Double Shamrock, improving efficacy of our more tactical and targeted business development activities within our B2C operating partners, the continued strong performance of franchise brands, including capital gains in the online channel, and the activation of more than 10 new B2C operator partners globally paced our record-setting performance in the quarter. The outsized revenue growth once again flowed through to segment level EBITDA, which more than doubled year over year to a record $1.3 million.

轉向互動，收入比上一年增長了 30% 以上，環比增長 8%，達到創紀錄的 340 萬美元。新遊戲推出的節奏加快，包括推出公司首款線上遊戲主題《雙三葉草》，提高我們在B2C 營運合作夥伴中更具戰術性和針對性的業務開發活動的效率，特許經營品牌的持續強勁表現，包括線上通路的資本收益以及全球 10 多個新 B2C 運營商合作夥伴的激活，推動了我們本季度創紀錄的業績。營收的大幅成長再次影響了細分市場的 EBITDA，年增一倍多，達到創紀錄的 130 萬美元。

Looking ahead to 2024, we believe the added depth and diversity of our content road map, planned new customer and jurisdictional launches, and increasingly effective business development efforts, put our Interactive business on a path to delivering the highest level of year-over-year revenue growth amongst our three operating segments with consistent sequential growth anticipated as we progress throughout the year.

展望2024 年，我們相信，我們內容路線圖的深度和多樣性的增加、計劃中的新客戶和司法管轄區的發布以及日益有效的業務開發工作，將使我們的互動業務走上同比最高水平的道路隨著我們全年的進步，我們三個營運部門的收入預計將持續連續成長。

Additionally, as demonstrated over the past several quarters, we expect to flow through a significant portion of the incremental revenues generated throughout the year, contributing to a considerable adjusted EBITDA margin expansion and adjusted EBITDA growth within the segment.

此外，正如過去幾季所證明的那樣，我們預計全年產生的增量收入的很大一部分將流入，從而為該部門內的調整後 EBITDA 利潤率大幅擴張和調整後 EBITDA 成長做出貢獻。

Turning to margins. Fourth-quarter adjusted EBITDA margin surpassed 45%, exceeding the expectations articulated on our Q3 call. An improving margin profile within our interactive business, supported by the segment's continued outsized revenue growth, superior gross margins on the highly modular and efficiently designed Spectra family of EGM cabinets, and operating leverage resulting from the over 15% year-over-year increase in total revenues, all contributed to our solid margin performance in the quarter.

轉向邊緣。第四季調整後 EBITDA 利潤率超過 45%，超出了我們在第三季電話會議中闡明的預期。我們的互動業務的利潤狀況有所改善，這得益於該部門持續的超額收入增長、高度模組化和高效設計的Spectra 系列EGM 機櫃的卓越毛利率，以及由於營業額同比增長超過15% 而帶來的營運槓桿總收入，所有這些都為我們本季穩健的利潤表現做出了貢獻。

As it pertains to 2024, we expect to achieve an adjusted EBITDA margin in the range of 44.5% to 45.5%, representing a modest lift over 2023 at the midpoint. Our margin outlook incorporates the revenue growth expectations articulated in my segment-level remarks, which should allow us to realize operating leverage on our corporate SG&A expenditures.

就 2024 年而言，我們預計調整後 EBITDA 利潤率將在 44.5% 至 45.5% 範圍內，較 2023 年中點略有提升。我們的利潤率展望包含了我在分部層級的演講中闡述的收入成長預期，這應該使我們能夠實現公司銷售、管理和行政費用支出的營運槓桿。

With respect to R&D, we expect to reinvest behind growth to ensure we are arming the business with the products and resources necessary to remain on an upward sloping multi-year growth trajectory. As a result, we anticipate 2024 expensed R&D remaining relatively consistent on a percentage of revenue basis at approximately 12%.

在研發方面，我們期望對成長進行再投資，以確保我們為業務提供必要的產品和資源，以保持多年的向上成長軌跡。因此，我們預期 2024 年研發支出將佔收入的比例將保持相對穩定，約 12%。

Finally, we expect to execute upon the sale of approximately $1 million of used Orion family cabinets to a distributor in Q1. These sales, which will not be reflected in our reported KPIs for the quarter, are likely to push first-quarter margin in line with to slightly below the low end of our targeted full-year range. That said, we expect margins to steadily expand as we progress throughout the year, pulling us comfortably into the targeted range by year-end.

最後，我們預計在第一季向經銷商出售約​​ 100 萬美元的二手 Orion 系列機櫃後執行。這些銷售額不會反映在我們報告的本季關鍵績效指標中，但可能會使第一季利潤率略低於我們全年目標範圍的低端。也就是說，我們預計隨著我們全年的進步，利潤率將穩步擴大，到年底將我們輕鬆帶入目標範圍。

Fourth-quarter capital expenditures totaled $15 million, bringing the full year capital spend to just under $62 million. Turning to 2024, we expect full-year capital expenditures, inclusive of anticipated capitalized R&D, to land in the range of $65 million to $70 million. Cash interest in the quarter was approximately $14 million, increasing the full-year cash interest expense to just under $54 million.

第四季資本支出總計 1,500 萬美元，使全年資本支出略低於 6,200 萬美元。展望 2024 年，我們預期全年資本支出（包括預期的資本化研發）將在 6,500 萬美元至 7,000 萬美元之間。本季現金利息約 1,400 萬美元，使全年現金利息支出增加至略低於 5,400 萬美元。

On February 5, 2024, we successfully completed a repricing of our term loan credit facility, which effectively reduced the interest rate spread applied to our term loan borrowings by 35 basis points. Additionally, in conjunction with the repricing transaction, we elected to voluntarily repay $15 million of our total debt outstanding. Combined, the repricing and repayment are expected to reduce our annualized cash interest expense by approximately $3 million at current market level rates.

2024年2月5日，我們成功完成了定期貸款信貸安排的重新定價，有效地將定期貸款的利差降低了35個基點。此外，結合重新定價交易，我們選擇自願償還未償債務總額中的 1,500 萬美元。以當前市場水準計算，重新定價和償還預計將使我們的年化現金利息支出減少約 300 萬美元。

Fourth quarter free cash flow, defined as net operating cash flow plus proceeds from payments on customer notes receivable less CapEx reached $11 million, surpassing the $10 million level for the third consecutive quarter and pushing the full-year 2023 free cash flow to approximately $27 million. Looking ahead to 2024, we believe our consistent operating momentum and execution, heightened focus on efficient and effective working capital management, continued CapEx deployment discipline, and anticipated cash interest savings from our recent debt repricing and repayment should allow us to grow full-year free cash flow by 25% or more with material levels of positive free cash flow generation projected in all four quarters.

第四季自由現金流（定義為淨營運現金流加上應收客戶票據付款收益減去資本支出）達到1,100 萬美元，連續第三個季度超過1,000 萬美元的水平，並將2023 年全年自由現金流推至約2700 萬美元。展望2024 年，我們相信，我們持續的營運動力和執行力、對高效和有效的營運資本管理的高度關注、持續的資本支出部署紀律，以及近期債務重新定價和償還帶來的預期現金利息節省，將使我們能夠實現全年無償成長。

Finally, net leverage fell to 3.2 times at year-end compared to 3.8 times at the start of the year and below the low end of our targeted 3.25 times to 3.5 times range. Supported by the relative resiliency observed across the broader North American gaming complex 2024 to date, both with respect to gross gaming revenue trends and customer purchasing demand, the growing appeal and strong performance of AGS' deeper and more diverse suite of EGM cabinets and game content, the anticipated continued outsized growth in Interactive revenues and unwavering commitment to cost containment and operational efficiency and steadily improving free cash flow conversion, we expect to exit 2024 with net leverage in the range of 2.7 times to 3 times.

最後，淨槓桿率從年初的 3.8 倍降至年底的 3.2 倍，低於我們目標 3.25 倍至 3.5 倍範圍的下限。受2024 年迄今在更廣泛的北美遊戲綜合體中觀察到的相對彈性的支持，無論是在遊戲總收入趨勢還是客戶購買需求方面，AGS 更深入、更多樣化的EGM 機櫃和遊戲內容套件的吸引力不斷增長，表現強勁。 3 倍之間。

Finally, I would like to reiterate our approach to deleveraging remains unchanged as we continue to target a combination of adjusted EBITDA growth and consistent free cash flow generation.

最後，我想重申，我們的去槓桿化方法保持不變，我們繼續以調整後的 EBITDA 成長和持續的自由現金流產生相結合為目標。

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

接線員，我們準備好的發言到此結束。我們現在願意開放提問專線。

(Operator Instructions) Barry Jonas, Truist.

（操作員指示）巴里·喬納斯，真理論者。

Great. Thank you. Guys, what do you see as the implications for AGS from the IGT, Everi deal, I guess, both in the short term and the long term? Thanks.

偉大的。謝謝。夥計們，您認為 IGT 和 Everi 交易對 AGS 的短期和長期影響是什麼？謝謝。

Hey, Barry. Thanks. I think history has instructed us here a little bit on this. And if we look back to that 2012 to 2014 period, where there's a lot of consolidation, it was also a time where we had acquired Cadillac Jack, and neither one of us were very big in Class III. Following that consolidation period, the non-big four suppliers nearly tripled or actually about tripled their ship share from that period going up to about 2017, 2018.

嘿，巴里。謝謝。我認為歷史已經在這方面給了我們一些指示。如果我們回顧 2012 年至 2014 年期間，當時有很多整合，那也是我們收購凱迪拉克傑克的時期，而我們在 III 級車中都不是很大。在那段整合期之後，從該時期到 2017 年、2018 年左右，非四大供應商的船舶份額幾乎增加了兩倍或實際上增加了兩倍。

So we think that this will create a little bit of an air pocket here for some smooth sailing and give us an opportunity to step up, in this case, from a ship share perspective and get more eyeballs from the customers. So we feel pretty good about that.

因此，我們認為這將為順利航行創造一點空間，並為我們提供一個機會，在這種情況下，從船舶共享的角度來看，並獲得更多客戶的關注。所以我們對此感覺很好。

But I think the key is for us is to run our playbook and do what we do best, which is invest in R&D, invest in our sales and product management teams and, obviously, great people across the organization, not just in those three areas and stick to the plan, which is putting out great content, leveraging it not just in the casinos in the online space, but also, eventually, we have a very big opportunity to go abroad with it, and we haven't really gone past Mexico and a bit of Latin America to do so. So we like it for us.

但我認為對我們來說關鍵是運行我們的劇本並做我們最擅長的事情，即投資於研發，投資於我們的銷售和產品管理團隊，顯然，投資於整個組織的優秀人才，而不僅僅是這三個領域並堅持這個計劃，即推出精彩的內容，不僅在在線空間的賭場中利用它，而且最終，我們有一個非常大的機會帶著它出國，而且我們還沒有真正過去墨西哥和部分拉丁美洲也這樣做。所以我們喜歡它。

I think it's probably good for the industry consolidation long term, good for the industry because it does refresh the lower base of the non-big four where you'll start to see some smaller companies pop up and really come up with some good games and some innovation. So that's how I feel about it.

我認為從長遠來看，這可能對行業整合有利，對整個行業有利，因為它確實刷新了非四大公司的較低基數，在那裡你會開始看到一些較小的公司突然出現，並真正推出了一些優秀的遊戲和一些創新。這就是我的感受。

That's great. Really appreciate your thoughts there. And then just a follow-up. I think there's probably some AGS-specific tailwinds set for this year. But maybe, David, maybe talk a little bit about how you see the health of the overall market right now.

那太棒了。真的很感激你的想法。然後只是後續行動。我認為今年可能會出現一些針對 AGS 的有利因素。但大衛，也許可以談談您如何看待目前整個市場的健康狀況。

So I think the health of the market, Q1 is stable. And I think Barry, everything we see looks pretty good there and we don't see a whole lot of change. I think others have commented the same on their earnings calls. But I think what we're focused on is our growth drivers and a little bit of what we said in the prepared remarks, which is this is the first time where we've had two cabinets that are right in the hot spot of what's going on with Spectra 43 and Spectra 49, we have some great opportunities there.

所以我認為第一季市場的健康狀況是穩定的。我認為巴里，我們在那裡看到的一切看起來都很好，而且我們沒有看到很大的變化。我認為其他人在財報電話會議上也發表了同樣的評論。但我認為我們關注的是我們的成長動力以及我們在準備好的發言中所說的一些內容，這是我們第一次有兩個內閣正處於正在發生的熱點問題上繼Spectra 43 和Spectra 49 之後，我們在這方面有一些很好的機會。

So that just gets back to if you look at us on the Eilers report, if you look at our performance on these cabinets, very early days with Spectra 49. But Spectra 43 has really been crushing it, for lack of a better term. The content has been fantastic. I don't think -- or I'm sure that we have never had a situation where we had this many core games.

所以，如果你看看我們的 Eilers 報告，如果你看看我們在這些音箱上的表現，就回到了 Spectra 49 的早期階段。但 Spectra 43 確實碾壓了它，因為沒有更好的術語了。內容非常棒。我不認為——或者我確信我們從來沒有遇到過擁有這麼多核心遊戲的情況。

And on top of that, now we have another premium game that has come hot out of the gates and the performance is, from a premium perspective, the best performance we've ever had in our organization. So yeah, market stable and AGS, I think, better than stable. We're looking pretty good with our product line and the pipeline.

最重要的是，現在我們又推出了另一款熱門遊戲，從高端角度來看，它的表現是我們組織中有史以來最好的表現。所以，是的，我認為市場穩定和 AGS 比穩定更好。我們的產品線和管道看起來相當不錯。

Perfect. Thanks so much.

完美的。非常感謝。

Thanks, Barry.

謝謝，巴里。

David Katz, Jefferies.

大衛‧卡茨，傑弗里斯。

Hi. Afternoon, everyone. Thanks for including me. Look, I wanted to talk about how you think about market share, right? Like we all probably -- I mean, we spent a great deal of time thinking about gaining share, losing share, et cetera. Is it as important as we think it is? Or are you just making games, selling games, driving profits, driving cash flow, and the share does what it does?

你好。下午好，大家好。謝謝你包括我。聽著，我想談談你如何看待市場份額，對嗎？就像我們所有人一樣——我的意思是，我們花了很多時間思考獲得份額、失去份額等等。它真有我們想像的那麼重要嗎？還是你只是製作遊戲、銷售遊戲、增加利潤、增加現金流，而份額就扮演了它的角色？

Yeah. That's a great question. I probably -- we haven't really gotten this one before.

是的。這是一個很好的問題。我可能——我們之前還沒有真正了解過這個。

Thank you.

謝謝。

But it's a good question. I like it because we should be running our playbook, right? And we should do what's best for us. And at the end of the day, creating value, generating free cash flow, improving margins and all the things that you mentioned, right, we've been demonstrating EBITDA growth, revenue growth, free cash flow improvement which has been a huge focus of ours. I think that we don't obsess with ship share, right?

但這是一個好問題。我喜歡它，因為我們應該運行我們的劇本，對吧？我們應該做對我們最有利的事。歸根結底，創造價值、產生自由現金流、提高利潤率以及您提到的所有事情，對吧，我們一直在展示 EBITDA 成長、收入成長、自由現金流改善，這一直是人們關注的焦點我們的。我認為我們並不沉迷於船舶共享，對嗎？

Because if ship share wobbles one quarter versus another quarter and it's not like maybe something that you guys would deem fantastic, we're still looking on our financials, right? And we're looking at the Eilers report, and we're looking at what's going on because the proof is in our performance of our games. And right now, we probably track performance of games a lot closer than we do ship share.

因為如果船舶份額在一個季度與另一個季度之間波動，這可能不像你們認為的那樣美妙，我們仍在關注我們的財務狀況，對吧？我們正在研究艾勒斯的報告，我們正在研究正在發生的事情，因為證據就在我們的遊戲表現中。目前，我們對遊戲表現的追蹤可能比對出貨量份額的追蹤要密切得多。

Long term, yeah, ship share could come -- should just follow that nicely. Should tuck in and draft that very closely over time.

是的，從長遠來看，船舶份額可能會到來——應該會很好地遵循這一點。隨著時間的推移，應該把它塞進去並非常緊密地起草。

Yeah, David, I would just add, this is Brad. Another thing about the ship share metrics that I encourage everyone to keep in perspective is that there are big segments of the market in North America that we currently do not sell into that our competitors are selling a significant number of games into, including the route markets here in the United States and in Canada.

是的，大衛，我想補充一點，這是布萊德。關於船舶份額指標的另一件事，我鼓勵大家保持正確的態度，那就是北美市場有很大一部分我們目前沒有銷售，而我們的競爭對手正在向其中銷售大量遊戲，包括航線市場在美國和加拿大。

Additionally, from a swim lane perspective, we're not fully penetrated at this point. We're making some strides here in the back half of this year, getting into mech reel and jumbo, but there still are some other categories that we're not in.

此外，從泳道的角度來看，我們目前還沒有完全了解。今年下半年，我們在這裡取得了一些進展，進入了機甲捲軸和巨型，但仍有一些其他類別我們沒有進入。

So I think when you view our ship share, I definitely encourage folks to look at it on an adjusted basis relative to the markets that we actually play in.

因此，我認為，當您查看我們的船舶份額時，我絕對鼓勵人們根據我們實際參與的市場進行調整後的基礎上來看待它。

Right. And so naturally the -- I mean, the ship share gives us a reason to call you guys. Naturally, the follow-up is with respect to valuation. And I know management teams shouldn't necessarily be overly focused on it. But yours could be better and has some headroom. How do you think about the possibilities of trying to get a bit more recognition to that end? And how do you and the Board focus on it and think about taking some action?

正確的。所以很自然地——我的意思是，船舶份額給了我們一個打電話給你們的理由。當然，後續是估值方面的。我知道管理團隊不必過度關注它。但你的可能會更好並且還有一些空間。您如何看待為此目的嘗試獲得更多認可的可能性？您和董事會如何關注這項問題並考慮採取一些行動？

I'll tell you. Speaking of recognition, I think one of the things that we took very seriously was this latest $15 million, debt payment. I know it might -- maybe on the surface, it doesn't seem like a move where we're trying to say, hey, we want to see some multiple expansion. But the feedback that we got from investors was fantastic. There's always this question of share buybacks, just keep your powder dry or pay down some debt. And this one is a move that got some serious applause from our investors.

我會告訴你。說到認可，我認為我們非常重視的事情之一就是最新的 1500 萬美元債務償還。我知道這可能——也許從表面上看，這似乎不是我們想說的舉動，嘿，我們希望看到一些多重擴張。但我們從投資者那裡得到的回饋非常棒。總是存在股票回購的問題，只要保持乾燥或償還一些債務。這項舉措得到了我們投資者的熱烈掌聲。

And if you just line that up, maybe with our repricing we did do a bit of a pre-release on Q4. And then that debt pay down, we saw some considerable movement in stock. So as far as like doing it the old fashion way, I think sticking to the plan here and continue to delever is a huge move, right? And I think that as we cross that next leverage barrier of 3.0 times, we'll get some of that recognition there, David.

如果你把它排列起來，也許透過我們的重新定價，我們確實在第四季度做了一些預發布。然後債務償還完畢，我們看到股票出現了相當大的波動。因此，就按照舊時尚的方式去做而言，我認為堅持這裡的計劃並繼續去槓桿化是一個巨大的舉措，對吧？我認為，當我們跨越下一個 3.0 倍的槓桿障礙時，我們將得到一些認可，大衛。

But there's also -- I think that from an IR strategy and some things, I won't bore everybody on the call, but I think we obviously can get more active, in particular, once we get to that 2.9 times, right? When we get to that 2.9 times, we know there's a whole shareholder base that we can speak to again. So that's what I'm excited about talking to more investors and I'm excited to get out there post this payment and really flagging to our investor base and potential investors that we're confident about our free cash flow generation going forward.

但還有- 我認為從IR 策略和某些事情來看，我不會讓電話會議上的每個人都感到厭煩，但我認為我們顯然可以變得更加積極，特別是一旦我們達到2.9 倍，對嗎？當我們達到 2.9 次時，我們知道我們可以再次與整個股東群體交談。因此，這就是我很高興與更多投資者交談的原因，我很高興能夠在這筆付款後走出去，並向我們的投資者基礎和潛在投資者表明，我們對未來自由現金流的產生充滿信心。

I'll agree with that. Thanks. Appreciate it.

我同意這一點。謝謝。欣賞它。

Thanks, David.

謝謝，大衛。

Jeff Stantial, Stifel.

傑夫·斯坦蒂爾，斯蒂菲爾。

Hey. Great afternoon, everyone. Thanks for taking our questions. Maybe starting off here on the EGM business. David, back at G2E, I seem to recall you noted that the testing data -- the initial testing data for the 49C was actually tracking better than the initial data for the UR43. Now that you have some immediately preliminary units on the floor, is that still the case? And I guess, just broadly speaking, how would you characterize performance of the new cabinet maybe versus your expectations heading in the quarter? Thanks.

嘿。大家下午好。感謝您回答我們的問題。也許可以從臨時股東大會業務開始。David，回到 G2E，我似乎記得您注意到測試數據 - 49C 的初始測試數據實際上比 UR43 的初始數據跟踪得更好。現在您已經有了一些初步的單位，情況仍然如此嗎？我想，從廣義上講，您如何評價新內閣的表現與您對本季的預期？謝謝。

I think broadly -- yeah, sorry, I apologize. We have a little bit of delay here and I jumped the gun on you. Yeah, I think broadly 49C is doing fantastic. Upright Spectra 43 has been out a while now and maybe a comparison there might be a tad unfair. But both -- the truth is both cabinets are really kicking butt. And we've got -- again, I refer to core content. We've got some great core content out there. And we keep expanding upon our strongest brands like Rakin' Bacon. And I think that's been a huge help to us.

我的想法很廣泛——是的，抱歉，我道歉。我們在這裡有點耽誤了，所以我突然向你開槍了。是的，我認為 49C 的表現總體來說非常棒。Upright Spectra 43 已經上市有一段時間了，也許這樣的比較可能有點不公平。但事實是，兩個內閣都在爭吵。我們再次強調，我指的是核心內容。我們有一些很棒的核心內容。我們不斷拓展 Rakin' Bacon 等最強大的品牌。我認為這對我們來說是一個巨大的幫助。

Really goes back to our strategy and development and how we carve up our time and what we work on. And we're in a very nice position right now that we've established a couple of brands. We continue to play off those brands. And every brand extension of Rakin' Bacon has been pretty much more successful than previous version of it. We've been all knocked the cover off the ball with that. So we're seeing a lot of success with 49C. And I think that we'll continue to see that. But don't count out Spectra 43. It's still trucking along.

真正回到我們的策略和發展，以及我們如何分配時間和我們的工作。我們現在處於一個非常好的位置，我們已經建立了幾個品牌。我們持續與這些品牌競爭。Rakin' Bacon 的每個品牌延伸都比以前的版本成功得多。我們都被這件事擊倒了。所以我們看到 49C 取得了很大的成功。我認為我們將繼續看到這一點。但不要排除 Spectra 43。卡車仍在行駛。

Great. Thanks, David. And Kimo, in the prepared remarks, you cited some greater international opportunities in the EGM segment for the for-sale business. And I think, David, you hit on this as well in your answer to Barry's first question. Could you just expand on this a bit more? Are you entering new markets, selling more into existing markets? And if it's the former, can you just shed some light on which markets you're planning to expand into? Thanks.

偉大的。謝謝，大衛。Kimo，在準備好的發言中，您提到了待售業務的臨時股東大會部分的一些更大的國際機會。我想，大衛，你在回答巴里的第一個問題時也提到了這一點。能再詳細說明一下嗎？您是否正在進入新市場，向現有市場銷售更多產品？如果是前者，您能否透露您計劃擴展到哪些市場？謝謝。

Yeah. I mean if you think about the way our business has been historically and even up to current, right, I mean international, like Brad just commented on, has predominantly been Mexico, right? We've done sales here and there in different parts of, call it, Latin America or the Caribbean. But going into 2024 and with the launch of our newer cabinets like the Spectra family, we've really put a plan in place to be able to address the broader Latin America market, Central and South, and address the Caribbean.

是的。我的意思是，如果您考慮我們的業務在歷史上甚至目前的情況，對吧，我的意思是國際業務，就像布拉德剛才評論的那樣，主要是墨西哥，對嗎？我們在拉丁美洲或加勒比地區的不同地區進行過銷售。但進入 2024 年，隨著 Spectra 系列等新機櫃的推出，我們確實制定了一項計劃，能夠滿足更廣泛的拉丁美洲市場、中部和南部以及加勒比地區的需求。

So there's a lot of white space there for us to go after these markets in a lot more targeted way than we ever could before, which includes gains that obviously are made for that market or nuance to be able to work in those markets. So we're excited. I mean it's a big white space for us just in that area without even talking longer term about Australia or let's call it Australasia or some of those markets. I don't know if David wants to add, but --

因此，我們有很多空白空間，可以比以前更有針對性地追逐這些市場，其中包括明顯為該市場取得的收益或能夠在這些市場發揮作用的細微差別。所以我們很興奮。我的意思是，對我們來說，在該地區，這是一個很大的空白，甚至沒有談論澳洲的長期發展，或讓我們稱之為澳洲或其中一些市場。我不知道大衛是否想補充，但是--

Yeah. I think Kimo nailed it, and I was actually going to tack on that very bit at the end, which is he's just referring to our current markets and what we've got there. But something we make sure that we mention in almost every earnings call for the past five-year-plus is that, that figure of how many customers we sell to in the North American market, and that's where we've done quite well. I think the number was 183 -- 183. If I'm off, I'm off by a few.

是的。我認為 Kimo 做到了，我實際上打算在最後補充一點，他只是指我們目前的市場以及我們已經擁有的東西。但我們確保在過去五年多的幾乎每一次財報電話會議中都提到我們在北美市場銷售給多少客戶的數字，而這正是我們做得很好的地方。我認為這個數字是 183 - 183。如果我離開了，我就會落後一些。

But that's a number that's way up from what we used to sell. We used to be sub 100 in our number of customers that we sold to. So we're going deeper with more products domestically. We're going wider to more customers. And then we're aiming a little bit more at Latin America. And then we know that our next step, hasn't been talked about yet, but our next step into the international market just opens up that much more white space. I think there's a lot of room to grow here in the future.

但這比我們過去銷售的數字要高得多。我們的銷售客戶數量曾經不到 100 家。因此，我們將在國內推出更多產品。我們正在向更多客戶拓展業務。然後我們的目標更多一點是拉丁美洲。然後我們知道我們的下一步還沒有被討論過，但我們進入國際市場的下一步只是開闢了更多的空白。我認為未來這裡有很大的發展空間。

Great. Very helpful. Thanks, Dave, and thanks, Kimo. I'll pass it on. Thanks.

偉大的。很有幫助。謝謝戴夫，謝謝基莫。我會把它傳遞下去。謝謝。

Thanks.

謝謝。

Thank you.

謝謝。

Chad Beynon, Macquarie.

查德貝農，麥格理。

Hey, guys, this is Aaron on for Chad. Thanks for taking our questions. So I wanted to touch on interactive for a bit. Obviously, a great interactive result this quarter. The business seems to be on a nice trajectory. With regard to the year ahead, how should we think about the major drivers of growth? And any color you can share just on any reinvestments into the business necessary to support your growth there? Thanks.

嘿，夥計們，這是亞倫為查德發言。感謝您回答我們的問題。所以我想談談互動。顯然，本季的互動結果非常好。該業務似乎正處於良好的軌道上。展望新的一年，我們該如何思考成長的主要動力？您可以分享任何支持您的成長所必需的業務再投資的顏色嗎？謝謝。

Yeah, thanks. So obviously, we'll get -- over time, we'll get into more customers. I think that there's probably some pretty straightforward drivers of growth. One is more games and it's just that simple. If we look back a couple of years ago, we definitely had customers that said, your stuff is awesome. Can we just get more games. And we've talked about in the past that we've made the investment there in order to open up the pipeline so we can move more of our brick-and-mortar content online much quicker, and we've accomplished that.

是的，謝謝。顯然，隨著時間的推移，我們將獲得更多客戶。我認為可能有一些非常直接的成長驅動因素。一是更多的遊戲，就這麼簡單。如果我們回顧幾年前，我們肯定有客戶說，你們的東西太棒了。我們可以多玩點遊戲嗎？我們過去曾談到，我們在那裡進行投資是為了開闢管道，以便我們可以更快地將更多實體內容轉移到網路上，我們已經做到了這一點。

And then from there, growth will also come from unique online-only content that we develop, and we're developing that with our very sharp team that we have in place now. We've really expanded that team. But I think forgetting about expansion of the team, the development team, it's about quality. It's just not about quantity of people, but it's about quality. And those folks not only can get our porting done quickly, but they also can -- they can develop games for online only.

然後，成長也將來自我們開發的獨特的線上內容，我們正在與我們現在擁有的非常敏銳的團隊一起開發該內容。我們確實擴大了這個團隊。但我認為忘記團隊、開發團隊的擴張，這與品質有關。這不在於人數，而在於品質。這些人不僅可以快速完成我們的移植，而且他們還可以開發僅在線遊戲。

So I think that's -- and we're exploring partnerships and omnichannel and just -- you got to look at online much like you look at the brick-and-mortar business to figure out where else you can go, whether it's geographies or types of online gaming. We are obviously in social and we're in real money gaming right now. But there's a lot of opportunity out there to drive this, and we don't just have to depend on new states opening up. I think that we have a lot of meat on the bone.

所以我認為，我們正在探索合作夥伴關係和全通路，你必須像關注實體業務一樣關注線上業務，以確定你還可以去哪裡，無論是地理位置還是類型的線上遊戲。顯然，我們現在處於社交領域，而且我們現在處於真錢遊戲之中。但有很多機會可以推動這一進程，而且我們不僅僅依賴新州的開放。我認為我們的骨頭上有很多肉。

And in particular, if you look at our performance, again, we mentioned Eilers so many times, Chad, ringing the bell here. But Eilers, once again -- our performance from a multiple perspective, it's in the prepared remarks, is phenomenal. So I think that we've got -- we've got ourselves in a good position, again to run our playbook on Interactive and to grow the business.

特別是，如果你看一下我們的表演，我們會多次提到艾勒斯，查德，在這裡敲響了門鈴。但艾勒斯，再一次——從多個角度來看，我們的表現是驚人的，正如準備好的發言中所言。因此，我認為我們已經處於有利位置，可以再次在 Interactive 上運行我們的策略並發展業務。

Great. Thanks for the color on that. And then just turning to margins. You talked about 2024 R&D being consistent at around 12% of revenues. Can you just talk about how you got there, what gives you the confidence that that's the right level? And just any color on what could cause you to move outside of that range. Thank you.

偉大的。謝謝你的顏色。然後轉向利潤。您談到 2024 年研發將持續維持在營收的 12% 左右。您能談談您是如何達到這一水平的嗎？以及任何可能導致您超出該範圍的顏色。謝謝。

Yeah. I mean if you look at -- our message has been pretty consistent, right? Like we've always felt that at the heart of our success is our creative team and our R&D team. So over the last couple of years, we've embarked on expanding our studios, expanding the depth of our talent in these different areas. And as we analyze and look at the returns that we've been getting, we look at the opportunities in the front of us next year.

是的。我的意思是，如果你看一下——我們的訊息非常一致，對吧？就像我們一直認為我們成功的核心是我們的創意團隊和研發團隊。因此，在過去的幾年裡，我們開始擴大我們的工作室，擴大我們在這些不同領域的人才深度。當我們分析和審視我們所獲得的回報時，我們會審視明年擺在我們面前的機會。

And we feel that the 12% level is right based on our experience. I think that still allows -- obviously, right, that allows for continued investment in that being that revenue is obviously going to be growing as well. So 12% level is right, and we feel comfortable about that that there won't be, let's call it, like a stair step required, call it, in the short term, right?

根據我們的經驗，我們認為12%的水平是正確的。我認為這仍然允許——顯然，是的，允許繼續投資，因為收入顯然也會成長。所以 12% 的水平是正確的，我們對短期內不會出現這樣的情況感到放心，我們可以這樣稱呼它，就像需要一個樓梯，這樣稱呼它，對嗎？

Great. Thank you very much.

偉大的。非常感謝。

Thanks, Aaron.

謝謝，亞倫。

Jordan Bender, JMP Securities.

喬丹·本德，JMP 證券。

Great. Good afternoon, everyone. EBITDA margin for '24 implied about up 40 basis points. I assume there's a positive impact still coming from Spectra. But can you maybe talk about how mechanical reel and jumbo will impact that sequential margin growth, I guess, compared to more of the organic margin expansion?

偉大的。大家下午好。24 年的 EBITDA 利潤率大約上升了 40 個基點。我認為 Spectra 仍然會產生正面的影響。但我想，與更多的有機利潤擴張相比，您能否談談機械捲軸和巨型捲軸將如何影響連續利潤成長？

Yeah. So we haven't really talked much about what we're projecting here, in particular for 2024 because this is a bit of back-half activity. We know that mech reel opens us up in a couple of markets where we're very strong. We can have an opportunity not just to place new units but really improve our real estate when the situation is right for us.

是的。因此，我們還沒有真正談論我們在這裡的預測，特別是 2024 年的預測，因為這只是後半段的活動。我們知道機甲捲軸為我們打開了幾個我們非常強大的市場。當情況適合我們時，我們不僅有機會放置新單位，而且可以真正改善我們的房地產。

So we know that we can optimize with this product down the road. We know that we'll see growth with the product, and like I said, in jurisdictions where we're very strong. Obviously, we have expectations of getting the market in Class III and the strong mech reel markets.

所以我們知道我們可以在以後優化這個產品。我們知道，我們會看到該產品的成長，就像我說的，在我們非常強大的司法管轄區。顯然，我們期望獲得 III 級市場和強大的機甲捲軸市場。

But jumbo and mech reel, as far as 2024 goes, I'll turn it over to Brad if he has any additional commentary, but we're not really leading ourselves very far on this one just for this year. But we have -- obviously, long term, we got in these -- in this space for a reason. A, we've made the investments in people and B, because of the people we have, we're very well positioned for success in mech reel and, of course, jumbo. And Brad has nothing to add to that. So I think we're good to go.

但是巨型和機甲捲軸，就 2024 年而言，如果布拉德有任何其他評論，我會將其轉交給他，但今年我們在這方面並沒有真正領先太多。但顯然，從長遠來看，我們進入這個領域是有原因的。A，我們在人員方面進行了投資；B，由於我們擁有的人員，我們在機甲捲軸和巨型捲軸方面處於非常有利的位置，能夠取得成功。布拉德對此沒有什麼可補充的。所以我想我們可以走了。

All righty. And then, Kimo, you've given several of the inputs just on free cash flow for the year. But in this post, if you want to call an investment period for the company, 17% free cash flow conversion last year. How should we think about that rate moving forward into '24 and beyond? Thank you.

好吧。然後，Kimo，您僅提供了有關今年自由現金流的一些投入。但在這篇文章中，如果你想稱之為公司的投資期，去年自由現金流轉換為 17%。我們該如何看待 24 世紀及以後的這個比率？謝謝。

Yeah. I mean, so not ready to put out a target or anything, right, but I think what we can say is that we're obviously deadset on improving free cash flow conversion, right? I think in the prepared remarks, we talked -- like I said, we're going to -- we expect to get free cash flow growth of about 25%, right? And I think that would obviously imply that there is sequential improvement year over year and free cash flow conversion.

是的。我的意思是，所以還沒有準備好提出目標或任何東西，對吧，但我認為我們可以說的是，我們顯然在改善自由現金流轉換方面陷入困境，對吧？我認為在準備好的發言中，我們談到了——就像我說的，我們將——我們預計自由現金流將成長約 25%，對嗎？我認為這顯然意味著逐年連續改善和自由現金流轉換。

So we've done a really good job, I think, managing how we invest in the business, right? And obviously, I think if our products have continued to perform every time we place a product in the field, whether it's on lease or sale, we've been able to increase the returns on that investment, right? So going forward, we're very confident that our free cash flow conversion rate will continue to improve year on year.

所以我認為，我們在管理我們的業務投資方式方面做得非常好，對吧？顯然，我認為，如果每次我們將產品投入現場時，無論是租賃還是銷售，我們的產品都能繼續發揮作用，我們就能夠增加該投資的回報，對嗎？因此，展望未來，我們非常有信心我們的自由現金流轉換率將繼續逐年提高。

Great. Thank you very much.

偉大的。非常感謝。

Thanks, Jordan.

謝謝，喬丹。

Thank you. There are no additional questions in queue. (Operator Instructions)

謝謝。隊列中沒有其他問題。（操作員說明）

There are no further questions. With that, we will conclude today's conference call. Thank you all for your participation. You may now disconnect your lines.

沒有其他問題了。至此，我們將結束今天的電話會議。感謝大家的參與。現在您可以斷開線路。