PlayAGS Inc (AGS) 2021 Q2 法說會逐字稿

Hello, everyone, and welcome to the PlayAGS Q2 2021 Earnings Call. My name is Charlie, and I'll be coordinating the call today. (Operator Instructions)

大家好，歡迎來到 PlayAGS 2021 年第二季度財報電話會議。我叫查理，今天我將負責協調電話會議。 （操作員說明）

I will now hand over to Brad Boyer, Head of Investor Relations to begin. Brad, please go ahead.

我現在將交給投資者關係主管 Brad Boyer 開始。布拉德，請繼續。

Thank you, operator, and good afternoon, everyone. Welcome to the PlayAGS Inc. Second Quarter 2021 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 second quarter of 2021 can be found on our Investor Relations website, investors.playags.com.

謝謝接線員，大家下午好。歡迎來到 PlayAGS Inc. 2021 年第二季度收益電話會議。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。可以在我們的投資者關係網站 investors.playags.com 上找到回顧我們 2021 年第二季度主要運營和財務亮點的幻燈片演示。

On today's call, we will provide an overview of our Q2 2021 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 2021 年第二季度的財務業績，並提供對我們當前業務財務前景的看法。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。

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 actual results to differ materially from forward-looking statements, please refer to the earnings release that 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.

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。有關可能導致實際結果與前瞻性陳述存在重大差異的因素的更多信息，請參閱我們今天發布的收益發布以及我們在 10-K 表格年度報告中描述的風險，特別是這些部分標題為風險因素的文件。

Our commentary today will also include non-GAAP financial measures. We believe that 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.

我們今天的評論還將包括非 GAAP 財務指標。我們認為，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。

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 指標之間的調節。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. Over the past several weeks, I have frequently been asked by investors and business colleagues. Is this as good as it gets for the U.S. land-based gaming industry. After reflecting long and hard, I often reply with a definitive, maybe. In my over 20-year career in gaming, I cannot recall time in which so many records were being shattered in such a widespread fashion.

謝謝，布拉德，大家下午好。在過去的幾周里，我經常被投資者和業務同事問到。這對美國陸基博彩業來說是最好的嗎？經過漫長而艱苦的思考後，我通常會給出明確的答复，也許吧。在我 20 多年的遊戲職業生涯中，我不記得有哪一次以如此普遍的方式打破瞭如此多的記錄。

It seems that with each domestic gaming operators earnings report, long-standing records for margin or EBITDA are being broken. Similarly, as states report monthly gaming revenue data, more often than not, records are being rewritten.

似乎隨著每家國內博彩運營商的收益報告，利潤率或 EBITDA 的長期記錄正在被打破。同樣，當各州報告每月博彩收入數據時，記錄往往會被改寫。

As it relates to AGS, we're able to leverage our over 15,000 unit domestic EGM installed base to benefit from the market strength throughout the second quarter and, in turn, set some records of our own.

由於與 AGS 相關，我們能夠利用我們超過 15,000 台的國內 EGM 安裝基礎，從整個第二季度的市場實力中受益，進而創造我們自己的一些記錄。

Notably, our second quarter domestic EGM RPD and domestic EGM gaming ops revenue each established new records for the company. Although encouraged by our record-setting gaming ops performance and despite some of the broader market strength continuing into July, we continue to believe that unique macroeconomic factors are influencing the overall domestic gaming market. While we expect the market to eventually graduate to a new normal as support influences taper off, we believe our improved execution and product momentum across all 3 of our business segments position us for growth and share taking in these quarters ahead.

值得注意的是，我們第二季度的國內 EGM RPD 和國內 EGM 博彩業務收入都為公司創造了新的記錄。儘管受到我們創紀錄的博彩業務表現的鼓舞，儘管一些更廣泛的市場力量持續到 7 月，但我們仍然相信，獨特的宏觀經濟因素正在影響整個國內博彩市場。雖然我們預計隨著支持影響逐漸減弱，市場最終會進入新常態，但我們相信我們所有 3 個業務部門的執行力和產品勢頭都得到改善，這使我們能夠在未來這些季度實現增長和份額增長。

As you may remember, I commented on a recent earnings call that I believe we had the best new product lineup in our company's history. While simply a prognostication at the time, I'm proud to say that the enhancement made to our product portfolio, business practices and personnel that gave me the confidence to make my original comment are already beginning to bear fruit.

你可能還記得，我在最近的一次財報電話會議上評論說，我相信我們擁有公司歷史上最好的新產品陣容。雖然當時只是一個預測，但我很自豪地說，我們的產品組合、業務實踐和人員的改進讓我有信心發表我最初的評論，現在已經開始見效。

To that end, a desire to broaden our presence in the lucrative premium recurring revenue slot segment remains one of the most prominent and compelling strategic growth initiatives at AGS. During the second quarter, we achieved 2 major milestones within our premium game business. First, we leveraged our one-of-a-kind LED Canvas display and consistent game performance to grow our Orion Starwall installed base to over 500 games.

為此，擴大我們在利潤豐厚的經常性收入插槽部分的影響力的願望仍然是 AGS 最突出和最引人注目的戰略增長計劃之一。在第二季度，我們在優質遊戲業務中實現了兩個重要里程碑。首先，我們利用我們獨一無二的 LED Canvas 顯示屏和一致的遊戲性能將我們的 Orion Starwall 安裝基數增加到 500 多款遊戲。

As you may recall, we've only been actively placing Starwalls into the field without the overhang of COVID-related casino closures for effectively 2 quarters, making the ascent to over 500 games an impressive accomplishment.

您可能還記得，我們只在 2 個季度內積極地將 Starwalls 投入到該領域，而沒有與 COVID 相關的賭場關閉懸而未決，這使得超過 500 場比賽成為一項令人印象深刻的成就。

More importantly, supported by the steady game performance and the introduction of additional product configurations, demand for the Starwall continues to build, which should allow for further growth in the quarters ahead. As a follow on to Starwall, our team recently executed a thoughtful and successful commercial launch of our second premium game concept, the Orion Curve Premium.

更重要的是，在穩定的遊戲性能和引入更多產品配置的支持下，對 Starwall 的需求持續增加，這應該會在未來幾個季度進一步增長。作為 Starwall 的後續，我們的團隊最近對我們的第二個高級遊戲概念 Orion Curve Premium 進行了深思熟慮且成功的商業發布。

Although early in the product life cycle, initial Curve Premium installs have been performing well above house average, helping to further solidify operator demand for the product. Ultimately, I envision our premium game strategy benefiting our company in 3 unique ways. First, when executed well and as we have witnessed with our initial installs, premium games can deliver RPDs well ahead of our historical game average in both Class II and Class III markets.

儘管在產品生命週期的早期，Curve Premium 的初始安裝表現遠高於平均水平，有助於進一步鞏固運營商對該產品的需求。最終，我設想我們的優質遊戲戰略會以 3 種獨特的方式使我們的公司受益。首先，如果執行得當並且正如我們在初始安裝中所見證的那樣，優質遊戲可以提供遠高於我們在 II 級和 III 級市場的歷史遊戲平均水平的 RPD。

Second, we should be able to leverage the strong RPD performance and the capital efficiency benefits derived from using our core Portrait and Curve screen cabinets to deliver our premium games to dramatically improve our returns on invested capital and free cash flow generation over time.

其次，我們應該能夠利用強大的 RPD 性能和使用我們的核心縱向和曲線屏幕櫃帶來的資本效率優勢來交付我們的優質遊戲，以隨著時間的推移顯著提高我們的投資資本回報和自由現金流產生。

Finally, our premium strategy broadens the overall addressable market for our products as we now have the products to penetrate the over $1 billion domestic premium game market, a capability did not exist prior to the initial COVID outbreak.

最後，我們的優質戰略拓寬了我們產品的整體潛在市場，因為我們現在擁有的產品可以滲透到價值超過 10 億美元的國內優質遊戲市場，而這種能力在 COVID 最初爆發之前是不存在的。

Turning to our core EGM business. I'm encouraged by the early indications of improved execution and accelerating product momentum being achieved throughout our game development organization. To that end, our recently released Captain Riches title, a member of our Ultimate Choice Jackpots family of games and available on our Orion Curve cabinet, achieved a top 15 ranking in the July Eilers game performance reports New Core Video Reel category.

轉向我們的核心 EGM 業務。我對在整個遊戲開發組織中實現改進執行和加速產品勢頭的早期跡象感到鼓舞。為此，我們最近發布的 Captain Riches 遊戲是我們的 Ultimate Choice Jackpots 系列遊戲的成員，在我們的 Orion Curve 機櫃上提供，在 7 月的 Eilers 遊戲性能報告新核心視頻捲軸類別中名列前 15 名。

Looking beyond Captain Riches, we have launched additional game themes that we believe have the potential to help further improve our product momentum and recapture replacement market share. All told, we expect our EGM sales business to recover over the coming quarters, led by our improved game content execution and performance, further strengthening of the North American replacement demand and our continued success in capitalizing upon new product adjacency opportunities such as HHR.

除了 Captain Riches，我們還推出了更多遊戲主題，我們認為這些主題有可能幫助進一步提升我們的產品勢頭並奪回替代市場份額。總而言之，我們預計我們的 EGM 銷售業務將在未來幾個季度復甦，這主要得益於我們改進的遊戲內容執行和性能、進一步加強北美替換需求以及我們在利用 HHR 等新產品鄰接機會方面的持續成功。

Looking beyond EGMs, I'm equally as encouraged by the momentum in our Table game products and interactive businesses, both of which delivered record adjusted EBITDA in the quarter. Within Tables, we continue to leverage our strong performing and expanding suite of unique content to grow our Table Products installed base. Additionally, we were live with 10 AGS arsenal site license contracts at the end of the second quarter with the signed deals generating over $2 million of high-margin and recurring annualized revenue.

除了 EGM 之外，我同樣對我們的桌面遊戲產品和互動業務的發展勢頭感到鼓舞，這兩項業務在本季度都實現了創紀錄的調整後 EBITDA。在 Tables 中，我們繼續利用我們強大的性能和不斷擴展的獨特內容套件來擴大我們的 Table Products 安裝基礎。此外，我們在第二季度末獲得了 10 個 AGS 軍火庫站點許可合同，已簽署的交易產生了超過 200 萬美元的高利潤和經常性年化收入。

Looking ahead, I believe unwavering demand for our core Table Products strengthened by our recently launched Bonus Spin Xtreme progressives, along with the ongoing site license discussions and the pending introduction of our PAX S card shuffler have the potential to steepen the growth trajectory we are able to achieve within our Table Products business.

展望未來，我相信我們最近推出的 Bonus Spin Xtreme progressives 加強了對我們核心 Table Products 的堅定需求，以及正在進行的網站許可討論和我們即將推出的 PAX S 洗牌機，有可能使我們能夠實現的增長軌跡更加陡峭在我們的餐桌產品業務中實現。

With respect to Interactive, we continue to execute our strategy to accelerate growth within our real-money gaming business. RMG revenues and adjusted EBITDA established a new record in the second quarter, driven by successful launches into the new regulated jurisdictions, back-end integrations with additional B2C operators and the introduction of additional AGS content into the online domain.

在 Interactive 方面，我們繼續執行我們的戰略，以加速我們真錢遊戲業務的增長。 RMG 收入和調整後的 EBITDA 在第二季度創下新紀錄，這得益於成功進入新監管管轄區、與更多 B2C 運營商的後端集成以及將更多 AGS 內容引入在線領域。

Importantly, the momentum we saw in the second quarter has continued into July, which highlights our RMG team's improved execution. Although relatively small today in terms of absolute EBITDA dollars generated, we continue to believe that the superior growth attributes and strong pure-play trading multiples should allow our Table product and Interactive businesses to meaningfully enhance shareholder value moving forward.

重要的是，我們在第二季度看到的勢頭一直持續到 7 月，這凸顯了我們 RMG 團隊執行力的提高。儘管今天產生的絕對 EBITDA 美元相對較小，但我們仍然相信，卓越的增長屬性和強大的純遊戲交易倍數應該讓我們的表格產品和互動業務能夠有意義地提高股東價值向前發展。

In closing, I would like to thank all of our AGS team members for their contributions and commitment to the company during what continues to be a uniquely challenging and stressful time for many. Your efforts have not gone unnoticed as AGS was recently named the best and brightest company to work for in both the Atlanta and national categories for the fifth consecutive year.

最後，我要感謝我們所有的 AGS 團隊成員，感謝他們在對許多人來說仍然是一個獨特的挑戰和壓力時期為公司做出的貢獻和承諾。您的努力沒有被忽視，因為 AGS 最近連續第五年被評為亞特蘭大和國家類別中最優秀、最聰明的公司。

Although it's become [in vogue way] for companies to tout strong corporate culture, I believe our recognition by the Best and Brightest program speaks to our employees' dedication and commitment to fostering a welcoming and inclusive corporate work environment.

儘管公司吹捧強大的企業文化已成為 [流行方式]，但我相信我們對最佳和最聰明計劃的認可表明我們的員工致力於營造一個熱情和包容的企業工作環境。

With that, I will turn the call over to Kimo to provide additional perspective on our financial results, liquidity position and current outlook for the business.

有了這個，我將把電話轉給 Kimo，就我們的財務業績、流動性狀況和當前業務前景提供更多觀點。

Thank you, David, and good afternoon, everyone. While an accommodative domestic gaming environment bolstered our second quarter operating results, our performance also benefited from early indication of improved game content development, enhanced product management capabilities and strengthen capital deployment processes.

謝謝你，大衛，大家下午好。雖然寬鬆的國內博彩環境提振了我們第二季度的經營業績，但我們的業績也得益於早期跡象表明遊戲內容開發得到改善、產品管理能力得到增強以及資本部署流程得到加強。

All told, I believe the continuous improvement being achieved in these 3 areas sets us on a path to deliver more consistent financial performance, improving our capital returns and leverage profile and most importantly, strengthening shareholder value over time.

總而言之，我相信在這 3 個領域取得的持續改進使我們走上了實現更一致的財務業績、改善我們的資本回報和槓桿狀況以及最重要的是，隨著時間的推移增強股東價值的道路。

With that said, I would like to start off today's call by reviewing our second quarter results and providing some forward-looking perspective for each of our operating segments. Although not anticipated, it is important to note my forward-looking commentary assumes no material changes with respect to COVID-related operating restrictions or casino closures.

話雖如此，我想通過回顧我們第二季度的業績並為我們的每個運營部門提供一些前瞻性觀點來開始今天的電話會議。儘管沒有預料到，但重要的是要注意我的前瞻性評論假設與 COVID 相關的運營限製或賭場關閉沒有重大變化。

Turning to our results. Total second quarter EGM revenue was $61.2 million, up over 20% on a quarterly sequential basis. We sold a total of 613 units in the quarter, 175 of which were associated with new casino openings and expansions. Domestic average selling price, or ASP, was approximately $16,900, reflecting a higher mix of convert-to-sale units sold in the quarter.

轉向我們的結果。第二季度 EGM 總收入為 6120 萬美元，環比增長超過 20%。我們在本季度共售出 613 個單位，其中 175 個與新賭場開業和擴建有關。國內平均售價 (ASP) 約為 16,900 美元，反映出本季度售出的轉售單位組合較高。

Excluding the convert-to-sale units, we estimate our ASP would have been approximately $18,200. Looking out over the balance of the year, we are encouraged by evidence of operators' recent strong financial performance, accelerating the recovery in industry-wide replacement unit demand.

不包括轉換為銷售單位，我們估計我們的平均售價約為 18,200 美元。展望今年的餘額，我們對運營商近期強勁財務表現的證據感到鼓舞，加速了全行業更換單位需求的複蘇。

Additionally, as our game content execution continues to improve, we believe we could begin to gradually achieve greater replacement unit market share. Finally, we feel we are well positioned to further leverage our exceptional game performance to take advantage of opportunities in existing and soon-to-open HHR markets.

此外，隨著我們遊戲內容執行力的不斷提升，我們相信我們可以開始逐步獲得更大的替換單位市場份額。最後，我們認為我們有能力進一步利用我們卓越的遊戲性能來利用現有和即將開放的 HHR 市場中的機會。

Taken together, we believe these items should allow our second half unit sales to exceed the 902 units sold in the first half of 2021. With respect to ASP, we expect our premium-priced Orion Curve cabinet to increasingly comprise a greater mix of our total units sold, in turn, helping us to achieve a stronger ASP in the back half of the year.

總而言之，我們認為這些項目將使我們下半年的單位銷量超過 2021 年上半年的 902 台。關於平均售價，我們預計我們的高價 Orion Curve 櫥櫃將越來越多地構成我們總銷量的更大組合售出的單位反過來幫助我們在今年下半年實現更強勁的平均售價。

Turning to our domestic gaming operations business. Second quarter RPD reached a new company record of $33.11, up more than 20% over the $27.10 achieved in the first quarter of 2021. Strength in the broader domestic gaming revenue environment, as David discussed earlier in his prepared remarks, a growing mix of higher-yielding premium games within our domestic installed base, improving core content execution and our recent strategic pruning initiatives all contributed to our record domestic RPD performance in the quarter.

轉向我們的國內博彩運營業務。第二季度 RPD 創下了 33.11 美元的公司新紀錄，比 2021 年第一季度的 27.10 美元增長了 20% 以上。正如 David 在其準備好的講話中早些時候所討論的那樣，在更廣泛的國內博彩收入環境中的實力，越來越多的高博彩公司- 在我們的國內安裝基礎中產生優質遊戲、改進核心內容執行以及我們最近的戰略修剪舉措都為我們在本季度創紀錄的國內 RPD 表現做出了貢獻。

Our domestic EGM installed base included 15,446 units at the end of the second quarter, representing a modest quarterly sequential decrease of 10 units. Looking ahead, we expect the combination of a strong initial customer response to our recently released Orion Curve premium cabinet, consistent with demand for our Orion Starwall and scheduled new casino openings and expansions to drive modest sequential growth in our domestic installed base as we progress throughout the year.

截至第二季度末，我們的國內 EGM 安裝基數包括 15,446 台，環比減少 10 台。展望未來，我們預計最初客戶對我們最近發布的 Orion Curve 高級櫥櫃的強烈反應，與對我們的 Orion Starwall 的需求以及計劃中的新賭場開業和擴建相結合，將隨著我們在整個過程中的進展推動我們國內安裝基礎的適度環比增長那一年。

As it pertains to our outlook for domestic RPD although the strength in the broader domestic gaming macro environment has continued into July, we expect trends to moderate towards a new normal over time, triggering a corresponding moderation in our domestic RPD performance.

由於這與我們對國內 RPD 的展望有關，儘管更廣泛的國內博彩宏觀環境的強勁勢頭一直持續到 7 月，我們預計隨著時間的推移趨勢將趨向新常態，從而引發我們國內 RPD 表現的相應放緩。

That said, we believe the structural changes we have already made and intend to make to the composition of our domestic installed base led by our premium game and strategic pruning initiatives could allow us to exceed our 2019 RPD performance in the back half of 2021, even if macro trends were to moderate.

也就是說，我們相信我們已經做出並打算對以我們的優質遊戲和戰略修剪計劃為首的國內安裝基礎的構成進行的結構性改變可能使我們能夠在 2021 年下半年超過我們 2019 年的 RPD 表現，甚至如果宏觀趨勢溫和。

Shifting to our international EGM business. Although we continue to see signs of improvement throughout the Mexico market, the pace of recovery has been much slower relative to what we are experiencing in our domestic business. Second quarter international RPD was $4.66, up nearly 60% over the $2.94 achieved in the 2021 first quarter, but still well below the levels we were achieving prior to COVID.

轉向我們的國際 EGM 業務。儘管我們繼續看到整個墨西哥市場都有改善的跡象，但相對於我們在國內業務中所經歷的，復甦的步伐要慢得多。第二季度國際 RPD 為 4.66 美元，比 2021 年第一季度的 2.94 美元增長近 60%，但仍遠低於我們在 COVID 之前實現的水平。

At the end of the second quarter, we estimate approximately 65% of our 7,879-unit international installed base was active, marking a considerable increase relative to the approximate 36% of units that were active at the start of the year. All told, a less supportive macroeconomic climate and stringent COVID-related operational protocols continue to protract the recovery within our Mexico gaming operations business.

在第二季度末，我們估計我們的 7,879 套國際安裝基礎中約有 65% 處於活躍狀態，與年初約 36% 的活躍單元相比有了相當大的增長。總而言之，不太有利的宏觀經濟環境和嚴格的 COVID 相關運營協議繼續拖延我們墨西哥博彩運營業務的複蘇。

Although indications of improving customer demand have us feeling cautiously optimistic about potential for international RPD to continue to modestly improve as we progress throughout the remainder of 2021. We believe it could require a couple of years for international RPD to return to pre-COVID level.

儘管客戶需求改善的跡象讓我們對國際 RPD 的潛力感到謹慎樂觀，因為我們在 2021 年剩餘時間裡取得了進展。我們認為國際 RPD 可能需要幾年時間才能恢復到 COVID 之前的水平。

Having said that, despite the smaller revenue base, our team has remained extremely diligent at managing expenses within our International segment to ensure the business continues to positively contribute to our consolidated EBITDA performance.

話雖如此，儘管收入基礎較小，但我們的團隊在管理國際部門的開支方面仍然非常勤奮，以確保該業務繼續為我們的綜合 EBITDA 業績做出積極貢獻。

Our Table Products segment remains a model of consistency with second quarter adjusted EBITDA, establishing another all-time record. The Table Products installed base grew to 4,458 units at quarter end, representing an increase of 96 units on a quarterly sequential basis. Looking ahead, we believe growing interest in our suite of industry-leading progressive products and our AGS arsenal site license offering, combined with the highly anticipated launch of our PAX S card shuffler, have the potential to simultaneously expand our Table Products installed base and increase our average lease price as we progress throughout 2021.

我們的餐桌產品部門仍然是與第二季度調整後的 EBITDA 保持一致的模型，創造了另一個歷史記錄。桌上產品安裝基數在本季度末增至 4,458 台，環比增加 96 台。展望未來，我們相信對我們行業領先的先進產品套件和我們的 AGS 軍火庫站點許可證產品的興趣日益濃厚，再加上我們備受期待的 PAX S 洗牌機的推出，有可能同時擴大我們的桌面產品安裝基礎並增加隨著我們在整個 2021 年的進展，我們的平均租賃價格。

Finally, our Interactive segment delivered record revenues and adjusted EBITDA in the second quarter, led by our outsized growth within our real-money gaming business. RMG revenues more than doubled year-over-year to a record $2.2 million, well ahead of the previous $1.4 million record set in the first quarter of 2021. Perhaps more importantly, our Interactive segment delivered positive adjusted EBITDA for the sixth consecutive quarter, supported by improved revenue performance and our commitment to profitably scaling our RMG business.

最後，我們的互動部門在第二季度實現了創紀錄的收入和調整後的 EBITDA，這得益於我們在真錢遊戲業務中的超額增長。 RMG 收入同比增長一倍以上，達到創紀錄的 220 萬美元，遠高於 2021 年第一季度創下的 140 萬美元的紀錄。也許更重要的是，我們的互動部門連續第六個季度實現了調整後的 EBITDA 正值，支持通過提高收入表現和我們致力於擴大我們的 RMG 業務的盈利能力。

Looking out over the remainder of the year, we view our success of integrating our online content with additional B2C operators, introducing additional AGS titles into the online domain, and expanding our suite of online content to include our first online table game offering as the keys to further strengthening our Interactive segment revenue performance. Although we remain focused on profitably scaling our RMG business, investments intended to support our future interactive growth initiatives could temporarily dampen our segment level margins in the back half of the year.

展望今年剩餘時間，我們認為我們成功地將我們的在線內容與其他 B2C 運營商整合，將更多 AGS 遊戲引入在線領域，並擴展我們的在線內容套件以包括我們的第一個在線桌面遊戲產品作為關鍵進一步加強我們的互動部門收入表現。儘管我們仍然專注於盈利地擴大我們的 RMG 業務，但旨在支持我們未來互動增長計劃的投資可能會在今年下半年暫時抑制我們的細分市場利潤率。

Before moving on to your questions, I would like to provide additional color on how we see margins, cash flow and leverage shaping up for the full year. We achieved an adjusted EBITDA margin of 48% in the second quarter, supported by the strength witnessed in our higher-margin gaming operations business and the gradual return of sales and marketing expenses followed the relaxation of COVID travel restrictions.

在繼續回答您的問題之前，我想就我們如何看待全年的利潤率、現金流和槓桿形成提供額外的顏色。我們在第二季度實現了 48% 的調整後 EBITDA 利潤率，這得益於我們利潤率較高的博彩業務表現強勁，以及隨著 COVID 旅行限制的放寬，銷售和營銷費用逐漸恢復。

Looking ahead to the full year, we continue to expect our adjusted EBITDA margin to land nearer to the low end of our targeted 45% to 47% range, as we anticipate making additional investments in our R&D franchise to support our future growth initiatives, experiencing further normalization in sales and marketing expenses and recognizing a greater mix of lower-margin slot sales revenue as the year progresses.

展望全年，我們繼續預計我們調整後的 EBITDA 利潤率將接近我們目標 45% 至 47% 範圍的低端，因為我們預計將對我們的研發特許經營權進行額外投資以支持我們未來的增長計劃，經歷隨著時間的推移，銷售和營銷費用進一步正常化，並確認更多的低利潤老虎機銷售收入組合。

Second quarter CapEx totaled $11.5 million, bringing our year-to-date capital spend to $21.4 million. Through the first 6 months of the year, we generated $14.5 million of positive free cash flow. Looking out over the remainder of 2021, we continue to expect our second half capital spend to increase relative to the level we incurred in the first half of the year.

第二季度資本支出總計 1150 萬美元，使我們年初至今的資本支出達到 2140 萬美元。今年前 6 個月，我們產生了 1450 萬美元的正自由現金流。展望 2021 年剩餘時間，我們繼續預計下半年的資本支出將比上半年的水平有所增加。

Our current CapEx outlook reflects the anticipated timing of new product launches and strengthening customer demand supported by our improved game content execution. Consistent with the first half of the year, we expect to allocate a disproportionate share of our second half capital spend to support our premium game growth initiatives.

我們目前的資本支出展望反映了新產品發布的預期時間以及我們改進的遊戲內容執行所支持的增強客戶需求。與今年上半年一致，我們預計將在下半年分配不成比例的資本支出，以支持我們的優質遊戲增長計劃。

Additionally, we expect to continue to thoroughly analyze all of our new game placement decisions to ensure we are allocating our capital to its highest and best use. For the full year, we believe CapEx should come in slightly below the level incurred in 2019. Although we currently expect CapEx to ramp over the remainder of the year, we would remind investors that we do have discretion over the timing in which the majority of our CapEx is incurred.

此外，我們希望繼續徹底分析我們所有的新遊戲放置決策，以確保我們將我們的資金分配到最高和最佳用途。就全年而言，我們認為資本支出應略低於 2019 年的水平。儘管我們目前預計資本支出將在今年剩餘時間裡增加，但我們會提醒投資者，我們確實可以自行決定大部分時間我們的資本支出發生了。

Therefore, to the extent the broader gaming macroeconomic environment were to deviate materially from the current trend, we could elect to temporarily moderate or suspend the incremental capital spend in favor of bolstering our liquidity position.

因此，如果更廣泛的博彩宏觀經濟環境嚴重偏離當前趨勢，我們可以選擇暫時緩和或暫停增量資本支出，以支持我們的流動性狀況。

Having said all of that, our strong second quarter financial performance, the accommodative North American gaming industry macroeconomic environment and early indications of improving demand for our products provide us with greater confidence in our ability to generate positive free cash flow for the full year.

綜上所述，我們強勁的第二季度財務業績、寬鬆的北美博彩業宏觀經濟環境以及對我們產品需求改善的早期跡象使我們對全年產生正自由現金流的能力更有信心。

Finally, our net leverage at June 30, 2021, was 5x down from 7.5x at the start of the year. Our adjusted net leverage covenant for compliance purposes was 4.1x, placing us firmly in compliance with our 6x leverage covenant. Looking forward, we remain laser focused on restoring the balance sheet flexibility we have prior to the COVID pandemic when our balance sheet was levered well inside of 4x. Additionally, we continue to carefully manage our leverage and liquidity position to ensure we can execute on opportunities to lower our borrowing costs as they present themselves.

最後，我們在 2021 年 6 月 30 日的淨槓桿率比年初的 7.5 倍下降了 5 倍。我們出於合規目的調整後的淨槓桿契約是 4.1 倍，使我們堅定地遵守我們的 6 倍槓桿契約。展望未來，當我們的資產負債表槓桿率在 4 倍以內時，我們仍然專注於恢復 COVID 大流行之前的資產負債表靈活性。此外，我們繼續謹慎管理我們的槓桿和流動性頭寸，以確保我們能夠抓住機會降低我們的借貸成本。

To that end, I am pleased to announce that subsequent to quarter end, we successfully extended our revolver maturity to November 2023. We saw strong interest amongst lenders throughout the revolver extension process, which could bode well as more meaningful refinancing opportunities arise.

為此，我很高興地宣布，在季度結束後，我們成功地將循環貸款期限延長至 2023 年 11 月。在整個循環貸款延期過程中，我們看到貸方表現出濃厚的興趣，這預示著更有意義的再融資機會的出現。

Operator, this concludes our prepared remarks. We would now like to open the line up to 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 David Bain of B. Riley.

（操作員說明）我們的第一個問題來自 B. Riley 的 David Bain。

Great. Very nice quarter. First, if I could, David and Kimo, you mentioned HHR briefly, but twice. And I'm wondering if you could frame the departmental opportunity for AGS. Maybe speak to the potential next year as it kind of differs from the normal replacement of new openings and what that market could look like for you specifically in terms of additional machine market?

偉大的。非常好的季度。首先，如果可以的話，David 和 Kimo，你們提到了 HHR，但是兩次。我想知道你是否可以為 AGS 設計部門機會。也許談談明年的潛力，因為它與正常更換新開口有點不同，特別是在額外的機器市場方面，這個市場對你來說會是什麼樣子？

Thanks, David. We'll stay away from absolute specifics here, but the HHR market for us is it's been strong. And we see that continuing into the second half of the year and a bit more into 2022. In addition to just the existing customers, we see a little bit of expansion there where that expansion into new states lands and when that might happen, is TBD, but we know that there's been a couple more jurisdictions that will come online.

謝謝，大衛。我們將遠離這裡的絕對細節，但對我們來說， HHR 市場一直很強勁。我們看到這種情況會持續到今年下半年，甚至會持續到 2022 年。除了現有客戶之外，我們還看到了一些擴張，擴張到新州的土地以及何時可能發生，是待定的，但我們知道還有幾個司法管轄區將上線。

But with the performance of our games and what we're seeing so far, we just -- we do believe that this will be a continuing trend. It's just really a -- it validates what we did about 1.5 years, 2 years ago when we said, "hey, we're going to continue to find new ways to leverage our content into new areas and performance is fantastic versus the competition in the space, and that's what's driving a lot of what's going on right now.

但是根據我們遊戲的表現和我們目前所看到的，我們只是 - 我們確實相信這將是一個持續的趨勢。這真的是——它驗證了我們大約 1.5 年所做的工作，2 年前我們說，“嘿，我們將繼續尋找新的方法將我們的內容利用到新的領域，並且與競爭對手相比，性能非常出色空間，這就是推動現在發生的很多事情的原因。

Okay. Great. And then switching to -- I guess I have a couple, premium -- the premium footprint. What inning fall in, in your view? And looking at the initial performance and feedback of Curve Premium versus like a Starwall. And you mentioned the launch timing for Starwall. But for the best, you can't compare the 2. It might be helpful just given kind of the potential impact upside, et cetera, to our RPD model. It would be great if you can speak to that.

好的。偉大的。然後切換到——我想我有幾個，溢價——溢價足跡。在您看來，落在哪一局？並查看 Curve Premium 與類似 Starwall 的初始性能和反饋。你提到了 Starwall 的發佈時間。但最好的是，你不能比較這兩個。考慮到我們的 RPD 模型的潛在影響等方面，它可能會有所幫助。如果你能就此發言，那就太好了。

And so we'll try to frame this the best we can. I'll start with sort of how proud I am of the R&D team product management and our sales team to get these -- to just make this happen. Largely, we weren't in the premium space. I know we say that just about every quarter, and now we're just a couple of quarters into it with the exception of Big Red. And we mentioned in the prepared remarks how quickly we've gotten to the number for Starwall. So -- just I think largely, if you just talk about premium, David, it's -- Brad and I were in the bullpen still, if you will, right? It represents a very small percentage of our installed game ops space. It obviously -- it's overweight, as far as you know, it produces much more than the percentage that it occupies. So I think we're in the mid-single digits as far as percentage of base. But as far as revenue goes, it accounts for about 10% of our revenue.

因此，我們將盡我們所能來構建它。首先，我為研發團隊的產品管理和我們的銷售團隊獲得這些而感到自豪——只是為了實現這一目標。在很大程度上，我們不在高端領域。我知道我們幾乎每個季度都這麼說，現在除了 Big Red 之外，我們只做了幾個季度。我們在準備好的評論中提到了我們獲得 Starwall 號碼的速度有多快。所以 - 我認為主要是，如果你只談論保費，大衛，它是 - 布拉德和我還在牛棚裡，如果你願意的話，對吧？它只占我們安裝的遊戲操作空間的很小一部分。很明顯——它超重了，據你所知，它產生的比它所佔的百分比要多得多。所以我認為就基數百分比而言，我們處於中個位數。但就收入而言，它約占我們收入的 10%。

So -- when you think about mid-single digits of our installed base, that means we have a lot of runway ahead of us. And that sort of has proven out as we look forward throughout the second half of the year, a big chunk of our installs are starting to pop up in the corporate space, and that's a very good indication. Our games in Class II, Class II premium is really doing very well for us, and I'm really happy with the results there, which was expected. But now we're breaking in the Class III in the corporate space. So opportunity is great. We look forward to second half of the year and then obviously, 2022 because this is a needle mover. We talk about it in prepared remarks. We know that it's going to continue to move the needle, but mid-single digits is where we're at right now. So there's a lot more runway for us.

所以 - 當你考慮我們安裝基礎的中個位數時，這意味著我們前面有很多跑道。當我們期待整個下半年時，這種情況已經證明了，我們的大部分安裝開始出現在企業領域，這是一個很好的跡象。我們在 Class II 中的遊戲，Class II premium 對我們來說確實做得很好，我對那裡的結果感到非常滿意，這是意料之中的。但現在我們正在突破企業領域的 III 類。所以機會很大。我們期待今年下半年，然後顯然是 2022 年，因為這是一個針鋒相對的推動者。我們在準備好的評論中談論它。我們知道它將繼續移動指針，但我們現在所處的位置是中等個位數。所以我們有更多的跑道。

Our next question comes from Barry Jonas of Truist Securities.

我們的下一個問題來自 Truist Securities 的 Barry Jonas。

Great. David, we've heard commentary from some operators, both around reducing slot floor sizes but also around potentially increasing investment for slots. I know there's a bit of a crystal ball here, but at a high level, I'd love to get any thoughts you have on where you think the market could be headed between now and the next few years.

偉大的。大衛，我們聽到了一些運營商的評論，既有關於減少插槽地板尺寸的，也有關於可能增加插槽投資的。我知道這裡有一點水晶球，但在高層次上，我很想知道你對你認為從現在到未來幾年市場可能走向何方的任何想法。

So we'll hit both those questions. I think those things sort of make sense together. It might sound like as a headline, if an operator were to say, "Oh, this is what we're looking at. I think it makes a lot of sense, reducing the floor, the footprint of slots on the floor. From what I can see, and this is the majority of casinos in the U.S., not all casinos in the U.S. There's a lot of dead floor space. There's machines that are out there that are really just taking up space on the floor to fill out a floor.

所以我們會解決這兩個問題。我認為這些事情在一起有點道理。這聽起來像是一個標題，如果操作員說，“哦，這就是我們正在研究的東西。我認為這很有意義，減少地板，減少地板上插槽的佔地面積。從什麼我可以看到，這是美國的大多數賭場，而不是美國的所有賭場。那裡有很多死區。那裡的機器實際上只是佔用地板上的空間來填充地板.

So if they were to reduce the footprint on the floor, I think that makes things more efficient and effective for them. But to increase spend in the space means they're going to refresh a larger percentage of their floor. And I think that that's great for them. That's great for the supply side. It's just great for the industry in general. So as far as like the crystal ball answer and mine is not perfect, obviously, I could see that -- it going in that direction. And it really -- I know it sounds crazy, but being good -- a little bit good for everybody.

因此，如果他們要減少地板上的足跡，我認為這會使他們的工作更有效率和效果。但增加空間支出意味著他們將翻新更大比例的樓層。我認為這對他們來說很好。這對供應方來說非常好。這對整個行業來說都很棒。所以就水晶球答案和我的答案而言並不完美，顯然，我可以看到——它朝著那個方向發展。這真的——我知道這聽起來很瘋狂，但是很好——對每個人都有一點好處。

Great. That's really helpful. And then I just wanted to touch upon M&A. How active is the pipeline right now for you guys? Are there any specific areas you could be looking to focus on?

偉大的。這真的很有幫助。然後我只想談談併購。你們現在的管道有多活躍？您是否希望關注任何特定領域？

So I think there's sort of 2 ways to look at investment for us right now. Kimo mentioned in his remarks, that we're going to continue to invest in our R&D franchise. We delve in headfirst in Aus -- or well, excuse me, Australia. We dove in headfirst in Australia a couple of years ago now, going back is probably a little bit longer. We knew that, that investment would take time to pan out and show a return just because getting everyone hired, getting everything set up, getting the first games out and then really becoming effective when you get to game 2, 3 and 4 and beyond.

所以我認為現在有兩種方法可以為我們考慮投資。 Kimo 在他的發言中提到，我們將繼續投資於我們的研發專營權。我們首先深入研究澳大利亞——或者，對不起，澳大利亞。幾年前我們在澳大利亞一頭扎進了現在，回去可能要久一點。我們知道，這項投資需要時間才能取得成果並顯示出回報，因為要雇用每個人，準備好一切，推出第一款遊戲，然後在第二、三、四及以後的遊戲中真正發揮作用。

And our team down there, again, really proud of the work they've put in. They're fantastic. And it's just a nice addition to Atlanta and Reno and Austin and the abilities and productivity we get from there. So one way to look at investment is organic investment. And we're going to continue to do that because we know that there's a great return on that. When it comes to M&A, and I know it took me a minute to get to your actual question, but we'd like to focus more on -- from an M&A perspective on the new stuff, which is Interactive and the like. We're always looking -- I think that that's been a discipline we've had over the past 5, 6 years. So we're always active in the space, but nothing imminent. And -- but it's a frame sort of put some guardrails on what we look at, a lot of online stuff is what we're interested in.

我們的團隊再次為他們所做的工作感到自豪。他們太棒了。它只是對亞特蘭大、里諾和奧斯汀以及我們從那裡獲得的能力和生產力的一個很好的補充。因此，看待投資的一種方式是有機投資。我們將繼續這樣做，因為我們知道這樣做會有很好的回報。說到併購，我知道我花了一分鐘時間才回答你的實際問題，但我們想更多地關注——從併購的角度來看，互動等新事物。我們一直在尋找——我認為這是我們在過去 5、6 年中一直遵守的紀律。所以我們一直活躍在這個領域，但沒有什麼迫在眉睫的事情。而且 - 但它是一種框架，可以在我們看到的內容上設置一些護欄，我們感興趣的是很多在線內容。

Our next question comes from Jeff Stantial of Stifel.

我們的下一個問題來自 Stifel 的 Jeff Stantial。

I wanted to start on the gaming ops footprint. It sounds like between the Curve Premium and some of the expansion activity, we should be expecting sequential growth in the back half of the year. If you strip out some of those openings and those expansions, is it fair to think the installed base could largely show sequential growth from here on out. It sounds like Curve Premium, Starwall, et cetera, are all resonating with their customers. But I just want to better understand what's left for the pruning of the footprint and sort of how that plays into the ramp cadence here for your total installs?

我想從遊戲運營足跡開始。這聽起來像是在曲線溢價和一些擴張活動之間，我們應該期待今年下半年的連續增長。如果你剔除其中一些空缺和擴張，那麼認為安裝基數從現在開始可能在很大程度上顯示連續增長是否公平。聽起來 Curve Premium、Starwall 等都引起了客戶的共鳴。但我只是想更好地了解修剪足蹟的剩餘部分，以及它如何影響這裡的總體安裝節奏？

So yes. O&E is going to obviously be part of the second half game ops growth. But you mentioned 2 things, "hey, how is premium going to look in the second half and beyond and then pruning. And it's difficult to say exactly how much we might prune because it just comes down to the effectiveness of going in, removing a unit in various jurisdictions and putting in, let's say, for example, a premium unit. I'd say the best example of that is in Class II. So although we may have a lot of success with premium, some of that might come along with some pruning. So yes, some modest progression and growth there in the second half of the year due to O&E and premium. But from the premium perspective, we're going to watch that very closely and try to be efficient with our footprint to just try to get the best returns we can on our capital. So that will be a little bit of a TBD on the second half year question. But either way, it will be very effective for RPD.

所以是的。 O&E 顯然將成為下半場遊戲運營增長的一部分。但是你提到了兩件事，“嘿，溢價在下半年及以後會如何看待然後修剪。而且很難說我們可能修剪多少因為它只是歸結為進入的有效性，刪除一個單位在不同的司法管轄區並投入，例如，一個高級單位。我想說最好的例子是 II 類。所以雖然我們可能在高級方面取得了很大的成功，但其中一些可能會出現有一些修剪。所以是的，由於 O&E 和保費，今年下半年會有一些適度的進展和增長。但從保費的角度來看，我們將密切關注這一點，並努力提高我們的足跡只是嘗試在我們的資本上獲得最好的回報。所以在下半年的問題上這將是一個待定的問題。但無論哪種方式，它對 RPD 都是非常有效的。

Great. And then for my follow-up, Kimo, I appreciate all the color on margins for the back half of the year. I did want to drill in a little bit more there. Specifically, we've heard some peers call out cost inflation from supply chain friction. Is this something you're seeing, expecting to see you, was this baked into some of your comments on operating cost inflation? Just -- can you help us understand that notion and how that impacts how you're thinking about margins in the back half of the year?

偉大的。然後對於我的後續行動，Kimo，我很欣賞今年下半年利潤率的所有顏色。我確實想在那裡多鑽一點。具體來說，我們聽到一些同行呼籲供應鏈摩擦導致成本膨脹。這是你看到的，期待看到你的東西嗎，這是否融入了你對運營成本通脹的一些評論中？只是 - 你能幫助我們理解這個概念以及它如何影響你對下半年利潤率的看法嗎？

Yes. I think all of the above. I think we're obviously seeing like many people in the industry and not just gaming, right? It's across manufacturing in different sectors, like we are seeing some inflation, whether it's wages or parts and components and whatnot. I think the other part of margin, right, is you break things apart and you look at our commentary, maybe a little bit on moderation of RPD, right, in gaming play levels that plays into part of it. Another part of the equation just naturally as we ramped here, right? And we continue to invest in the business, like David said, and continue to hire in R&D. We continue to back online sales and marketing spend and whatnot. We'll have sequential growth like SG&A. But still, we look to land the year similar to what we said last quarter, we look to land the year closer to call it 45% [consolidated].

是的。我認為以上都是。我認為我們顯然看到了很多業內人士，而不僅僅是遊戲，對吧？它跨越不同部門的製造業，就像我們看到一些通貨膨脹，無論是工資還是零部件等等。我認為保證金的另一部分，對，是你把事情分開，你看看我們的評論，也許有點關於 RPD 的適度，對，在參與其中的遊戲水平上。當我們在這裡傾斜時，等式的另一部分很自然，對吧？正如大衛所說，我們繼續投資於業務，並繼續招聘研發人員。我們繼續支持在線銷售和營銷支出等等。我們將有像 SG&A 這樣的連續增長。但是，我們仍然希望將這一年與我們上個季度所說的相似，我們希望將這一年更接近 45% [綜合]。

(Operator Instructions) Our next question comes from Chad Beynon of Macquarie.

（操作員說明）我們的下一個問題來自麥格理的查德貝農。

I wanted to ask about product sales. Kimo, you noted that you guys are expecting 2H to essentially mirror 1H in terms of sales. Within that comment, can you kind of talk about what your expectations are for market share if you expect to stay the same, increase, decrease? And then related to that, the conversations that you're having with operators, given they've generated significant revenues and EBITDA in the second quarter, do you think the replacement cycle could actually start to improve in the near term, assuming a lot of those conversations will start at G2E, but any initial color there.

我想問一下產品銷售。 Kimo，你注意到你們期望 2H 在銷售方面基本上反映 1H。在該評論中，如果您希望保持不變、增加或減少，您能談談您對市場份額的期望嗎？然後與此相關，你與運營商的對話，鑑於他們在第二季度產生了可觀的收入和 EBITDA，你認為更換週期實際上可以在短期內開始改善，假設很多這些對話將從 G2E 開始，但那裡有任何初始顏色。

So actually in the prepared remarks said, we sort of alluded to H2 looks to be better than H1 for us. And built into that right is sentiment we're seeing from the marketplace, right? We see -- we don't want to exaggerate it, but we do see, right, replacement cycle picking up. We see operators having great performance. So we -- from talking to sales and whatnot, we do see the funnel or the pipeline picking up for the back half of the year. And there's also some new openings and expansions that we'll see in H2 as well.

所以實際上在準備好的評論中，我們有點暗示 H2 看起來比 H1 對我們來說更好。建立在這種權利上的是我們從市場上看到的情緒，對吧？我們看到——我們不想誇大它，但我們確實看到，對，更換週期正在加快。我們看到運營商表現出色。因此，我們——從與銷售等方面的談話中，我們確實看到漏斗或管道在今年下半年有所回升。我們還會在 H2 中看到一些新的開放和擴展。

And then Chad, I think that when we look at second half of the year, we often get the question about, "hey, how do we see the market shaking out? What's going on?" And really, we see the macro trends continuing, and I alluded to it in the prepared remarks that, "hey, is this the best it gets?" And it's like an absolute maybe because who knows what it's going to do from here. We anticipate perhaps a new normal at some point, but I know you commented on market share, but if I only knew the denominator, I can tell you what the share is, but we're going to focus on the numerator, and I think that's what we're really going to focus on is doing what we do best. We're really pleased. Again, give a kudos to the product management, sales and R&D teams that the effective way they've run the business here. So we're going to look forward to an improved second half. And hard to say what that denominator is going to be. But I know G2E will be good for us, the lineup of products that we have this year. I think it is the strongest. I think the games are performing both on the core and premium side. So I am excited to see what the boys have put together and how things go from here.

然後乍得，我認為當我們回顧下半年時，我們經常會問這樣的問題：“嘿，我們如何看待市場震盪？發生了什麼事？”事實上，我們看到宏觀趨勢仍在繼續，我在準備好的評論中提到，“嘿，這是最好的嗎？”這就像一個絕對的可能，因為誰知道它會從這裡做什麼。我們預計在某個時候可能會出現新常態，但我知道你評論過市場份額，但如果我只知道分母，我可以告訴你份額是多少，但我們將關注分子，我認為這就是我們真正要關注的是做我們最擅長的事情。我們真的很高興。再次感謝產品管理、銷售和研發團隊，他們在這里以有效的方式開展業務。所以我們期待下半年的改善。很難說分母是什麼。但我知道 G2E 對我們有好處，我們今年的產品陣容。我認為它是最強的。我認為這些遊戲在核心和高端方面都表現出色。所以我很高興看到男孩們組合在一起的東西以及從這裡開始的事情。

Perfect. I understand. And yes, sorry for that clarification. And then on the Table side, just given it probably wasn't the best time to be selling Table Products, particularly in the socially distanced measures that casino has experienced for some time for the past year. Can you talk about the PAX S shuffler, how that's been received? Maybe if you're still confident you'll be able to deploy that at a number of casinos if that was slightly pushed back just given everything that happened.

完美的。我明白。是的，很抱歉做出這樣的澄清。然後在賭桌方面，考慮到現在可能不是銷售賭桌產品的最佳時機，尤其是賭場在過去一年中經歷了一段時間的社會疏遠措施。您能談談 PAX S 洗牌器嗎？它的反響如何？也許如果你仍然有信心，你將能夠在許多賭場部署它，如果考慮到所發生的一切而稍微推遲的話。

Thanks. So PAX S, and we'll just talk in general about Tables. I think on the Table side, again, pleased with our progress. We believe in this business, I think it's going to be a real contributor. We know it's a small part in absolute dollars of what we do, but we also think that it's a grower. So we're pleased with where we're at. The progressives are out there doing an amazing job. So again, same thing is with the slot team. Our Table team has put together great products. The performance is fantastic, and the sales teams really kicking butt doing what they need to do out there. PAX S, demand for it is going to be fantastic. We've got folks waiting, willing and ready to fire away when the time comes. We've tested it out there in a live environment. And we're going to continue our testing here in the second half and release at the right point, and I'll focus a little bit on my words, the right point. Chad, as you know, I have been down this path before, played through these movies. And the one thing we want to do, and I certainly want the team to do is do a full release at the right time when we're ready because that is what generates the most momentum and the most success for that type of product launch. So I hope that sort of answers your question there, but that's where we see it right now.

謝謝。所以 PAX S，我們只是一般性地談論表。我想在談判桌方面，再次對我們的進展感到高興。我們相信這項業務，我認為它將成為真正的貢獻者。我們知道這只是我們所做工作的絕對美元的一小部分，但我們也認為它是一個種植者。所以我們對我們所處的位置感到滿意。進步人士在那裡做得非常出色。同樣，老虎機團隊也是如此。我們的 Table 團隊已經推出了很棒的產品。表現非常棒，銷售團隊真的很努力地做他們需要做的事情。 PAX S，對它的需求將會非常好。我們讓人們等待，願意並準備在時機成熟時開火。我們已經在現場環境中對其進行了測試。我們將在下半年繼續在這裡進行測試，並在正確的時間點發布，我會稍微關註一下我的話，正確的時間點。查德，如你所知，我以前也走過這條路，看過這些電影。我們想要做的一件事，我當然希望團隊做的就是在我們準備好的時候在正確的時間進行完整髮布，因為這是為此類產品發布帶來最大動力和最大成功的原因。所以我希望這能回答你的問題，但這就是我們現在看到的地方。

Our next question comes from David Katz of Jefferies.

我們的下一個問題來自 Jefferies 的 David Katz。

You've covered a lot. So I just want to spend one second if we can on the Oklahoma installed base. Can you just talk about sort of where that number firms up? Is that a number that grows over time or is relatively stable? And within the RPD, how supportive or stable is that number within it or -- assuming, obviously, the premium games are very, very strong and driving the number higher. But within that, are they accretive, dilutive or neutral, I guess, is the nature of the question.

你涵蓋了很多。所以我只想花一秒鐘時間了解俄克拉荷馬州的安裝基礎。你能談談這個數字在哪裡嗎？這個數字是隨時間增長還是相對穩定？在 RPD 中，這個數字有多支持或穩定，或者 - 顯然，假設優質遊戲非常非常強大並且推動數字更高。但在其中，我想，它們是增值的、稀釋的還是中性的，這才是問題的本質。

So you're asking a premium is sort of accretive in Oklahoma. And so there's a few things here sort of in that question. So I think the installed base itself, David, will be stable to maybe a little bit of modest growth. But the caveat to that is going to be a little bit of what I said earlier. When we go in with more premium into the Class II Oklahoma market, it's sort of a deal where we're going. Some will be replacements, some will be new units. But we want to see how those premium games do versus what it (inaudible). Our product management team, along with sales, is laser-focused on finding the right items to swap or prune. So that installed base, I'll say, will be stable, but it's going to do in many ways what we want it to do as far as a unit quantity goes, but our premium is going to be a big part of improvement. And it's not just that. We are super focused on core. We've got a team in particular, beyond our regular core games. We have a team in Austin and a developer there that's really focused on that market and performing well in that market. So we have hopes and plans to improve RPD there because that's a bit of a needle mover for us if we do that. Again, stable base, improve RPD, improve returns on our cash that's invested there.

所以你要求溢價在俄克拉荷馬州有點增加。所以在這個問題中有一些事情。所以我認為安裝基礎本身，大衛，將穩定到可能略有適度增長。但要注意的是我之前所說的一點點。當我們以更多的溢價進入俄克拉荷馬州 II 級市場時，這就是我們要去的地方。有些將是替代品，有些將是新單位。但我們想看看這些付費遊戲的表現與它的表現（聽不清）。我們的產品管理團隊與銷售人員一起專注於尋找合適的項目進行交換或修剪。因此，我會說，安裝基礎將保持穩定，但就單位數量而言，它將在很多方面做我們希望做的事情，但我們的保費將成為改進的重要組成部分。不僅如此。我們非常專注於核心。我們有一個特別的團隊，超越了我們的常規核心遊戲。我們在奧斯汀有一個團隊和一個真正專注於該市場並在該市場表現良好的開發商。所以我們有希望和計劃在那裡改善 RPD，因為如果我們這樣做的話，這對我們來說有點推動力。同樣，穩定基礎，提高 RPD，提高我們在那裡投資的現金回報。

Ladies and gentlemen, this concludes today's Q&A and, therefore, today's call. Thank you for joining today. You may now disconnect your lines.

女士們，先生們，今天的問答環節到此結束，因此，今天的電話會議也結束了。感謝您今天加入。您現在可以斷開線路。