LAS VEGAS, NV--(Marketwired - Dec 7, 2015) - After reporting a strong month-to-month increase of 7.6 percent in October 2015, the AGEM Index returned some value in November 2015. The composite index ended the month at 194.33, representing a decline of 2.89 points (-1.5 percent) from the prior month. Compared to a year ago, the AGEM Index reported a gain of 8.74 points (+4.7 percent), which represents the second consecutive month of positive annual growth. Agilysys (AGYS), a technology company that provides software and service to the hospitality industry, was added to the index in the latest period.
In November, 12 of the 14 global gaming equipment manufacturers reported month-to-month declines in stock price, with five down by more than 10 percent. Of the two manufacturers reporting gains in stock price during the month, both were up by less than five percent.
The broader stock markets reported modest improvements from October 2015 to November 2015. The S&P 500 ended the month at 2,080.41, which represents a gain of 0.1 percent. The Dow Jones Industrial Average reported a gain of 0.3 percent, rising to 17,719.92. NASDAQ reported the greatest month-to-month increase of the three major indices, rising 1.1 percent to 5,108.67.
Selected positive contributors to the November 2015 AGEM Index included the following:
- Aristocrat Technologies (ALL) contributed 2.43 points, due to a 1.8-percent increase in stock price to AU$9.49.
- With a stock price of ¥2,881 (+4.5 percent), Konami Corp. (9766) contributed 1.27 points.
Selected negative contributors included the following:
- Scientific Games Corporation (SGMS) reported a stock price of $9.22 (-16.9 percent) and contributed negative 1.60 points.
- Due to a stock price of $15.53 (-4.3 percent), International Game Technology PLC (IGT) contributed negative 1.56 points.
- Ainsworth Game Technology (AGI) contributed negative 1.52 points, due to a 24.5-percent decline in stock price to AU$2.40.
| AGEM | Exchange: Symbol | Stock Price At Month End | Percent Change | Index Contribution |
||||||||
| (Currency) | Nov-15 | Oct-15 | Nov-14 | Prior Period | Prior Year | |||||||
| Agilysys | Nasdaq: AGYS (US$) | 11.10 | 11.37 | 12.28 | (2.37) | (9.61) | (0.07) | |||||
| Ainsworth Game Technology | ASX: AGI (AU$) | 2.40 | 3.18 | 2.24 | (24.53) | 7.14 | (1.52) | |||||
| Aristocrat Technologies | ASX: ALL (AU$) | 9.49 | 9.32 | 6.51 | 1.82 | 45.78 | 2.43 | |||||
| Astro Corp. | Taiwan: 3064 (NT$) | 20.00 | 21.00 | 30.85 | (4.76) | (35.17) | (0.03) | |||||
| Crane Co. | NYSE: CR (US$) | 52.02 | 52.64 | 59.03 | (1.18) | (11.88) | (0.42) | |||||
| Daktronics, Inc. | Nasdaq: DAKT (US$) | 8.67 | 9.70 | 11.93 | (10.62) | (27.33) | (0.48) | |||||
| Everi Holdings Inc. | NYSE: EVRI (US$) | 3.82 | 4.68 | 7.10 | (18.38) | (46.20) | (0.55) | |||||
| Galaxy Gaming Inc. | OTCMKTS: GLXZ (US$) | 0.20 | 0.24 | 0.38 | (16.67) | (47.37) | (0.02) | |||||
| Gaming Partners International | Nasdaq: GPIC (US$) | 8.86 | 9.28 | 8.25 | (4.53) | 7.39 | (0.04) | |||||
| International Game Technology PLC | NYSE: IGT (US$) | 15.53 | 16.22 | 17.03 | (4.25) | (8.81) | (1.56) | |||||
| INTRALOT S.A. | ATHEX: INLOT (EUR) | 1.38 | 1.51 | 1.18 | (8.61) | 16.95 | (0.24) | |||||
| Konami Corp. | TYO: 9766 (¥) | 2,881.00 | 2,758.00 | 2,243.00 | 4.46 | 28.44 | 1.27 | |||||
| Scientific Games Corporation | Nasdaq: SGMS (US$) | 9.22 | 11.09 | 15.14 | (16.86) | (39.10) | (1.60) | |||||
| Transact Technologies | Nasdaq: TACT (US$) | 8.85 | 9.57 | 5.49 | (7.52) | 61.20 | (0.06) | |||||
| Change in Index Value | (2.89) | |||||||||||
| AGEM Index Value: October 2015 | 197.21 | |||||||||||
| AGEM Index Value: November 2015 | 194.33 | |||||||||||
In November 2015, many of the gaming equipment manufacturers released their financial results for the period ending September 30, 2015. Selected performances are noted below.
One quarter removed from its merger with GTECH, International Game Technology PLC (IGT) reported revenues of $1.2 billion in the third quarter of 2015, up 29.5 percent from a year ago. An adjusted EBITDA of $413.8 million also displayed strong gains, up 21.1 percent from the third quarter 2014. However, on a pro forma basis, IGT reported a 17.6-percent year-over-year revenue loss and a 23.5-percent reduction in EBITDA. Net income attributable to IGT was $7.1 million, while total net income on an adjusted basis was $82.5 million. The company delivered $0.04 per diluted share or $0.41 per share on an adjusted basis. IGT's total installed based fell 7.8 percent annually to 59,126 during the quarter, while total machines shipped declined 47.9 percent to 6,622. However, global lottery same-store revenue growth was 6.2 percent during the period.
Continuing the trend of industry consolidation, Everi Holdings Inc. (EVRI) reported third quarter revenue of $208.7 million and adjusted EBITDA of $51.5 million. The company reported a net loss during the quarter of $6.1 million, resulting in a net loss per diluted share of $0.09. The loss is attributable in part to the acquisition of Multimedia Games at the end of 2014, which is still in the process of being digested. However, the payments portion of the business reported positive trends, as revenue rose 6.4 percent to $154.8 million, and both operating income and adjusted EBITDA for the division reported gains.
Agilysys (AGYS) reported second quarter fiscal 2016 revenue of $29.6 million, which is a 12.6-percent improvement from a year ago. Gross margin decreased, resulting in an adjusted EBITDA of $1.5 million compared to the $1.6 million in the same period of last year. The strong growth in revenue can be attributed to the double-digit growth in new customers and a 35-percent increase in subscription revenue, which have value given the predictability and loyalty of customers using these services.
Galaxy Gaming (GLXZ) announced revenues of $2.8 million in the third quarter of 2015, a 9.4-percent increase from last year. Adjusted EBITDA decreased 3.0 percent to $894,000, primarily due to increased regulatory and legal costs. However, net income saw a significant increase of 36.9 percent to nearly $120,000, due to an increase in recurring revenues. Galaxy Gaming's focus on table games has led to strong gross margins in both the second and third quarters of this year. However, with the changing regulatory environment, those healthy margins were offset by a 12.1-percent increase in operating expenses, driven primarily by SG&A and other costs.
The AGEM Index
The Association of Gaming Equipment Manufacturers (AGEM) produces the monthly AGEM Index that comprises 14 global gaming suppliers throughout the world. A total of 9 suppliers are based in the United States and are listed on the NYSE, Nasdaq or OTC market, while two trade on the Australian exchange, one supplier trades on the Athens exchange, one on the Tokyo exchange, and another trades on the Taiwan OTC exchange. The index is computed based on the month-end stock price (adjusted for dividends and splits) of each company and weighted based on approximation of market capitalization. Market capitalizations for manufacturers trading on foreign exchanges have been converted to US dollar-equivalents as of month-end for comparability purposes. The AGEM Index is based on a 100-point value as of January 2005.
About AGEM
AGEM is an international trade association representing manufacturers of electronic gaming devices, systems, and components for the gaming industry. The Association works to further the interests of gaming equipment manufacturers throughout the world. Through political action, tradeshow partnerships, information dissemination and good corporate citizenship, the members of AGEM work together to create benefits for every company within the organization. Together, AGEM and its member organizations have assisted regulatory commissions and participated in the legislative process to solve problems and create a positive business environment.
AGEM Index
The AGEM index and overview is prepared by Applied Analysis (AA). AA is a Nevada-based advisory services firm providing consultation services for public and private entities. The company utilizes extensive experience in economics, information technology and finance to provide a wide range of services, including urban economic consulting, financial advisory services, market analysis, public policy analysis, hospitality industry and gaming consulting, and information system and technology consulting.
AGEM Membership Roster
AGEM Gold Members:
- Ainsworth Game Technology
- Aristocrat Technologies
- Austrian Gaming Industries
- Everi Holdings Inc.
- International Game Technology PLC (IGT)
- Intralot S.A.
- Konami Gaming
- Sega Sammy Creation
- Scientific Games
AGEM Silver Members: Action Gaming, AGS, Aruze Gaming America, Casino Technology, Crane Payment Innovations (CPI), Gaming Partners International (GPI), JCM Global, Merkur Gaming, Ortiz Gaming, Suzo-Happ Group, TCSJohnHuxley and Zitro.
AGEM Bronze Members: Abbiati Casino Equipment, Alfastreet, Amatic Industries, Astro Corp., BetConstruct, Bingotimes Digital Technology, Boss Gaming, Cammegh Limited, Century Gaming Technologies, CG Technology (CGT), Cole Kepro International, DEQ Systems, Euro Games Technology (EGT), FBM, Galaxy Gaming, Gamblit Gaming, Gaming Support, Glory Global Solutions, Gold Club, Grand Vision Gaming, Incredible Technologies, Inspired Gaming, Interblock USA, Intervision Gaming, ISMS, Iverson Gaming Systems, Jumbo Technology, Matsui Gaming Machine Co., Metronia, NanoTech Gaming, NYX Gaming Group, Patriot Gaming & Electronics, Quixant Ltd., Reel Games, Table Trac, U1 Gaming, Wells-Gardner Technologies and Win Systems.
AGEM Associate Members: 3M Touch Systems, Abbott Law Chartered, Advanced Gaming Associates, Adlink Technology, Advantech-Innocore, Agilysys, AMD, Arrow International, Asimex Global, Atrient, Axiomtek, British Group Interactive (BGI), Brown & Brown Insurance of Nevada, Camryn Industries, CardConnect, Carmanah Signs, Casino Connection International, Catapult Global, CDC Gaming Reports, Coloredge, Cooper Levenson, Cybertec Gaming Systems, Daktronics, Digital Instinct, DiTronics Financial Services, DynaGraphic Printing, Eilers Research, Elite Gaming Technology, Esterline Interface Technologies, Fantini Research, Four Corners, Fox Rothschild, G2 Game Design, GAN, Gaming Capital Group, Ganlot, Gary Platt Manufacturing, Gasser Chair Company, Genesis Interactive Technologies, GeoComply USA, Gill's Printing & Color Graphics, Global Experience Specialists (GES), Global Gaming Group (G3), Greenberg Traurig, House Advantage, Howard & Howard, Impact Display Solutions, Intel, IPS, James Industries, James Industry Research Group, JCS Technologies, Joingo, Jones Walker, KEY-BAK, Kontron, Lazcano Sámano, Leap Forward Gaming, Legacy Electronics, Lewis Roca Rothgerber, Lightstone Solutions, McGladrey LLP, Metalcraft, NanoLumens, Olsen Gaming/Spectronix, Outpost Creative, Portilla Ruy-Díaz y Aguilar, Proforma GPS, Randstad Staffing, Regulatory Management Counselors (RMC), Sanmina, SCA Gaming, Sightline Payments, Southwest Manufacturing Services, Spin Games, StylGame USA, Talent Associates, The Bright Group, Touch Dynamic, Tournament One, TOVIS, TransAct Technologies, Vantiv Gaming Solutions, Veridocs, Wells Fargo, Young Electric Sign Company (YESCO) and Zebra Technologies.
Contact Information:
For More Information, Contact:
Marcus Prater
Executive Director
P.O. Box 50049
Henderson, NV 89016-0049
702.812.6932
