Q2 2020 PlayAGS Inc Earnings Call
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Let's call. This is Mike what's called Badger meter.
I'd like to US then just lay eggs incorporated earnings outpaced.
Oh.
Yes, what does your name please.
Yeah.
David Brown.
All right.
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Uh huh.
Yes.
Okay, well mumbo jumbo cycle.
[laughter].
Hi, Jeff.
Man pipeline for Star Raw, and we are strategically evaluating and prioritizing the opportunities to determine which installs will yield the greatest ROI.
We're also encouraged by what we're seeing with a few of our latest titles on Orion portrait what performance greater than three times House average. These gains are not only a validation of our talent of our team members, who develop them, but also reinforces our strategy of investing in some of the most creative talent around the world.
Chemo will go through some of the Q2 results in more detail.
I'll provide some high level highlights on our business segment in the quarter.
We face more than 200 recurring class two EG m. units at the new Emerald clean property in Washington, which is approximately 10% of their floor.
And 40% of the class two section.
These units are performing very well and Washington as a whole continues to represent a solid growth market for us over the next several years.
Although impacted significantly by casino closures are table game segment went live with our first sight license at downstream casino in Oklahoma, which provides the casino with the full suite of age yes table content.
100% of Downstreams floors, now agios table content through a two year site license agreement.
We're also pleased to have signed a site license with Foxwood, which will go live in September.
Despite the slower came to the business, we still feel confident about securing more site licenses. As this provides a way to help operators being more efficient with their operations. In addition to providing win them with the best in class Progressive platforms, and a high performing table game content.
And our interactive business, we saw a significant year over year increase to 1.2 million and EBITDA bolstered by revenues in both our social and real money gaming segments.
This is our second quarter EBITDA positive results for the business, where revenue growth was enhanced by our recent launch into Pennsylvania in mid May [noise].
With our games now live and Rush Street, and parse platforms as well as increased momentum in New Jersey.
Before I turn it over to chemo I want to recap the four key priorities for age you asked for the balance of the year, which are outlined on slide three.
First as cash preservation and careful expense and Capex management.
Because there are still many unknowns for the foreseeable future, we will continue to be prudent and how we reintroduced any cost back to our business.
Second we will also focus on the targeted strategic rollout of new games and products to customers, where we can generate the highest ROI.
Third we will focus on getting more of our recurring E gem units back in service, where it was within our control.
Operator capital budgets are deeply constrained for the remainder of the year and as a result, we will lean our initial on initiatives that can strengthen our recurring revenue streams and finally.
We will protect our strong corporate culture to ensure aged yes. Its success for the long wrong with that Sina will walk you through some financials.
Thank you David and good afternoon, everyone.
Turning to slide four as I mentioned last quarter, we adjusted our cost structure and operating model to the new realities of the casino gaming market in order to best position the company for long term stability of success.
Although we saw Reopenings. This quarter, we have maintained tight expense management only ramping departments that are essential to run our business such as field service R&D and manufacturing.
I'm proud of our entire team for their discipline and commitment as we control our monthly cash outflow to approximately 4 million per month as well as debt service costs of approximately 3.8 million.
Our careful approach to expenses, coupled with the drawdown of 30 million on our revolver in March and the closing of an incremental term loan of 95 million in may help to maximize liquidity as well as provide financial stability.
Although it is hard to predict exactly how the pandemic will continue to impact the macro operating environment given all of the measures. We've taken we believe that we have sufficient liquidity to continue to manage through the most challenging time, our industry has ever seen.
More importantly, we believe we are positioned to emerge from this as a stronger and more nimble organization.
Our cash balance was 113.1 million as of June Thirtyth and as approximately 112 million as of the end of July.
Total net debt, which is the principal amount of total debt less cash and cash equivalents was approximately 542.9 million compared to 520.6 million at December 30, Onest 2019.
As a reminder, our first lien term loan and our 95 million incremental loan both mature on February 15, 2024, and our revolving credit facility will mature on June six 2022.
Our total net debt leverage ratio, which is the total net debt divided by adjusted EBITDA for the trailing 12 month period increased from 3.6 times at December 30, Onest 2019 to 5.6 times at June Thirtyth 2020.
Now turning to slide five our second quarter results were significantly impacted due to nearly all casino operations being shutdown for the entire month of April and most of May due to the coal that 19 pandemic.
Total Q2 revenue of 16.8 million was down 77% year over year, driven largely by declines in EG EM revenue.
Recurring revenue of 10.2 million was down more than 43 million year over year, despite increases in our interactive segment.
Net loss attributable to Plagiarising increased 35.1 million year over year due to decreased revenues and was slightly offset by decreases in all operating expenses.
Adjusted EBITDA loss of 1.2 million was a direct result of the declines in both the GM and table product businesses.
Now turning to our segments and beginning with our Gn segment on slide six revenues of 14 million were down 80% in the second quarter and reflect no recurring revenue contribution in April and minimal revenue in may.
209 sold MGM units were down 82% year over year as customer budgets were significantly reduced our frozen as a result of the pandemic.
Domestic sold units went into markets, such as Arkansas, California, and Nevada.
Domestic average selling price or ASP increased 8% to approximately 19600 due primarily to product mix in the quarter, which was comprised mostly of the Orion family, a covenants, including sales of our new Orion curve.
Approximately 60 units were sold into Argentina in the quarter comprised largely of icons and Orion portraits.
The quarter also included a sale of 169 previously leased lower yielding units to a distributor in Oklahoma in line with one of our strategies. We discussed on prior calls regarding our approach to managing our footprint in this market.
These units are not included in the reported sold unit number for Q2, nor in our ASP metric consistent with our presentation in prior quarters.
Our MGM installed base of 25763 units decreased 5% year over year due largely to these strategic sales of nearly 900 previously leased lower yielding units in Oklahoma over the past three quarters.
Domestic MGM RPD was down 77% driven by casinos remaining close for the greater part of the second quarter.
Excluding EG of units that were not active during the period, our domestic RPD was roughly $33.
As David mentioned earlier initial play levels were strong due to pent up demand limited supply and the various federal stimulus benefits provided for under the care Zack.
International RPD was negligible given that nearly every casino in Mexico remain closed throughout the entire second quarter.
In Oklahoma early performance of active units was higher than pre cobot levels. Our near term focus in Oklahoma is to get as many of our unit operational again and to continue to pursue the strategic initiatives, we outline prior to co bid with regards to improving performance.
Those initiatives include continued game convergence strategic selling of certain parts of the installed base, where it makes the most sense and rolling out our new suite of premium products.
We are being very selective and strategic as to how we rollout star wall or Ryan rise and Orion curve into the market allocating capex only to the highest ROI opportunities.
Based on the consistent performance of our initial installs we believe that there continues to be opportunity for these premium products to help improve yield moving forward.
Moving onto our table segment on slide seven in the second quarter revenues of approximately 674000 and adjusted EBITDA loss of 126000 were both down year over year as a direct impact from casino closures.
Our tables installed base grew 17% year over year of which 65 units were added sequentially largely driven by a notable install of super for progressive at the Seminoles Coconut Creek property in Florida in the second quarter.
In our interactive segment on slide seven total revenue was up 94% to roughly 2.2 million driven by increases in revenue in our real money gaming business.
The recent launch of our content into Pennsylvania contributed to this lift as well as the signing of more operators in New Jersey.
RMG revenues also grew year over year due to increased momentum in new markets across Europe.
David mentioned, our launch on both Rush Street and parks platforms in Pennsylvania, and Additionally, we signed several new operators in New Jersey, such as Harris World series of Poker and eight.
Adjusted EBITDA was 1.2 million in the second quarter, driven by revenue increases in combination with appropriate cost management through the period.
We did see play levels positively impacted as a result of cobot 19. However, we believe that Weve reached a REIT scale with our business to continue to be profitable.
Finally.
For the quarter capital expenditures decreased 74% to 3.9 million in the second quarter compared to 15.1 million in the prior year period as we saw a significant reduction of Mgms placed on leads.
The current quarter included growth Capex attributable to the Admiral Queen install that David mentioned earlier.
In terms of what we're seeing over the next six months, we believe customer budgets will continue to be impacted for not only the remainder of the year, but also for 2021.
Post Q2, we've continued to see more of our domestic recurring units turned back on but the impact of the because pandemic may delay any new reopenings and could possibly result, and new closures. If coven 19 cases continue to rise.
Texas remains one of our key jurisdictions that has yet to reopen since the shutdowns occurred back in March.
There is no clear timeframe for when these properties will be operational again, but having those units active will provide a fairly significant lift to recurring revenue.
In our international International segment casinos in Mexico have slowly begun reopening their doors over the past month, but we don't expect a large number of these units to be back active until Q4.
Table business saw approximately 60% of its units in service in the month of June and we're already seeing greater progress with additional additional jurisdictions and unit coming back online in Q3.
For the rest of the year tables will continue to be impacted by limitations to operator budgets as well as it relates to taking new products as well as prohibitive social distancing measures in the pit.
However, as David touched on earlier, we have multiple opportunities for site licenses and we'll see more signed agreements go into effect over the next six months.
Although we've seen healthy increases in our interactive segment, our expectations moving forward our that revenues remained fairly stable and we'll continue to grow the business as we expand into new markets and sign on additional operators.
Overall, despite some of the current challenges we are working hand in hand, with our customers to help maximize their floor mix identify opportunities for efficiencies and determine optimal layout and gain themes to strengthen performance on their floors.
There are still operate opportunities for our high performing content, which has become more important than ever.
Given the current restrictions on the floor.
We remain committed to helping our customers manage through the challenges of the current operating environment and emerge stronger in the long term.
With that we will now move to the Q and a portion of the call.
Thank you.
Well now begin the question and answer session to ask a question you May Press Star then one on the telephone keypad, if you're using a speakerphone. Please pick up your hands questioning the keys.
To withdraw your question. Please press Star then too.
At this time, we will pause momentarily to assemble a roster.
And the first question will come from David Katz with Jefferies. Please go ahead.
Hi, good afternoon, everyone.
I wanted to just go back over some of the commentary in case I missed couple of details and then base just specific about what the cash flow outlook is so that agree that you're going to discuss it right.
Yes.
Should we be expecting that EBITDA is turning positive and what is the trajectory looks like to getting to cash flow.
Neutral.
Next several quarters.
Yes, So we'll take the first part of your question, David So EBITDA breakeven. So when we exited the quarter. So in June we were actually EBITDA breakeven and our expectation for Q3 going forward right is that will be will be above that.
To go your cash flow question, I think as it relates to reaching free cash flow generation are being at the breakeven point I would say they'll be closer towards the ending of the year I would say, we'll exit Q4.
Being EBITDA or sorry free cash flow positive.
That's our expectation.
Got it and with respect to some of the growth that we saw an interactive I know you touched on this a bit.
But would you.
Classify that as we should be thinking about that is accelerating as we move forward from what we saw there right because of the go lives.
So David this this is David.
So I think that our results are aided by the the accounts and go lives that chemo mentioned.
Which is obviously going to help us going forward, there's more openings. If you. If you will our integrations to calm both in Europe, and the U.S. that should be helpful.
As a reminder, I think that its full transparency that some of our numbers are when data and if you want to use a track and field term.
But.
Going forward, how our road to growth and interactive will come just getting more of them online getting more operators more countries.
Online, but any and.
We're confident we can continue to grow the business, but yes of course, there's a piece of that.
That did come from cobot now like a lot of things you hope that some of that has some stickiness right to it if they if they found the online environment I believe a lot folks will stick to it as well.
So if I can just take one more quick follow up right I mean, the wind aided reference I. Appreciate right are you able to gauge or measure or what do you think is a degree to which you know that growth has happened just because the world has been shut down as people are playing all things digital.
I may just swapped back to an in person visit versus share you hope that some of it is sticky, but do you have any sort of measurements are data that you're able to capture yet.
So I think that I think it's a bit tricky to capture exactly what those numbers are all I'm going to point to social and sort of like the example, there.
When we start to look at social we saw a pretty significant lift once kobin hit that said.
Social had actually took a positive turned for us pre code, which.
Sorted.
That throws of a monkey wrench, and our theory and starts to mess with the numbers when you try to do analytics on it. So I think we have to wait and see a little bit and when all casinos are open how it impacts both social and real money gaming we state we've taken a couple looks at its difficult to tell exactly what it is but I.
I think Thats, Social example, that I just gave you a confuses matters a little bit because we are actually beginning to see lift.
Well before cobot head hit us at all.
Got it thank you very much appreciate it.
Thanks. Thanks.
Your next question is from Brad Hoyer with Stifel. Please go ahead.
Yes, thanks for taking the questions guys first one for David or chemo whoever wants to take it just around the rationalization of the Oklahoma install base.
Obviously, we had some more units come out this quarter that was well telegraphed than expected I guess, just trying to get a sense of where are we in that rationalization process.
And how do you sort of balance rationalizing that install base with sort of your.
Renewed and heightened focus around capital efficiency here in light of some of the challenges created by code.
Yes, Thanks, Brad I'll start, meaning chemo can can add a little bit.
We were pretty sure that theres quite a bit of optimization to do there we've talked about in the past how we believe we can go and.
And I'll use in I'll use one of our high flying products as as a as an example that if we go in and we install six star Walsum I say six star AWS, one six pack configuration of Star Wall. If we went in and installed six and removed 10 units that are on the floor on you know we feel pretty strong.
Finally that we can make more money and have fewer units on the floor that the overall thesis I.
I don't know that were too far down the path. There. So we've got a lot of that runway ahead of us coven really put everything on pause.
The unit reductions that you saw had a lot to do with with planned sales that we've discussed on previous calls. So some planned sales there are really what's driving the number and Oklahoma at least the majority of it.
Probably have a little bit more of that and then as we had said in the past with that base are the integrity based on we're going to hold onto the the the stuff that we think will provide cash flow and revenue for us going forward as long as we can and those would be the units that we hold onto.
It's still early in the game, but there's there's there's a little bit more to go we've done some significant selling I guess you'd say over the past I think three quarters, if that makes sense I think three quarters now and so theres a little bit more selling to go and then we'll see where we settle in with exactly we units will keep.
Okay. That's helpful and then.
Just wanted to see if you could provide a little bit more perspective around.
Some of your new products that are out in the market I mean, we all kinda give us some disclosure around star wall.
It sounds like you have some some pretty good new game themes.
On the Orion portrait.
It seems like some of your investments on the R&D front or are finally, starting to bear fruit any any additional perspective or color you could provide around that.
Yes, I appreciate it. Thanks. So so we feel really good about the investment that we've made I think it's been a almost three years ago that that we decided to make the investment in Australia, We decided that we go in Australia.
To establish an R&D team that R&D team there is fantastic and a lot of the things that we see in particular on Orion portrait right. Now that are are doing fantastic come out of our studio there that's not to say that we don't look to big things for big things from both Austin Reno Atlanta.
Et cetera.
You mentioned Orion portray we've got I think now somewhere four or five games that are performing fantastically I think maybe a couple of those games are in the Raycon Bacon sorta category as for as far as performance goes I think it's encouraging to see that we're still putting out hits on portrait that's what our costs.
Customers want that's a big base of units that are sold out there. But then of course, you mentioned Star Wars Starworld doing fantastic I think we've only got three systems in place. If you will on three six packs out there, but we have a number of units in the pipeline a considerable number of units its pipeline as you can imagine.
Right now what we're doing and I you know what we've said in his script as we're prioritizing those I'm looking for those that are sort of the higher RPD are generating units that that will go on first so we got a good pipeline there and then of course, there's rise and curve and I know, we don't talk a lot about rise and curve at the moment, but.
Lots of promise there we feel good about the lineup of games that we've got coming on Kerr rise as well I just actually had a couple update for the call.
But I think this all goes under the umbrella.
We've made these investments we've always felt good about them.
29 team, we didn't really see.
That investment yield yielding a ton of fruit, but.
Yes, timings not great with Kogut in a pandemic bought those games are doing fantastic now and we can really see the depth and breadth of portfolio not just from a cabinet point of view because I don't want to say can make in cabinets as easy, but making games is really the tricky part and that's where we're building a lot of confidence building great portfolio.
Okay helpful. And then one last one from me just I think key theme for everyone through this whole cobot situation has been.
Using a period in which there's really no day to day operations to sort of managing and trying to find inefficiencies in your business is there is there anything you'd like to highlight.
As far as you know just sort of.
Cost efficiency measures that have sort of been born out of this whole unique situation that we are currently living through and that's all for me. Thanks.
Thanks, Brian Hey, so well obviously, there's so many areas we can mention.
Weve, obviously trade shows have been canceled.
But we have taken a very close look at those and I think that Dolby examined closely.
More closely in the future as to what trade shows.
Vendors should be participating in.
Along with that its opex and Capex across the board I guess I'd focus more on Capex.
These from my perspective as to.
Hey.
This has given us pause as to what's worked well first in the past where have we made sort of the right turns and wherever remain the wrong turns and I guess looking back and having time to reflect on it looking cash looking at cash.
With sort of a more discerning hi has been something that we've been doing so I think thats, where were making most of our tweaks in where you'll see those adjustments going forward.
Perfect. Thanks, guys.
Thanks James.
The next question is from Chad Beynon with Macquarie. Please go ahead.
Afternoon. Thanks for taking my question guys.
Regarding your comment on your goal of working with operators to turn on more ends are there opportunities to rework daily fee or Rev share agreements at least in the near term to improve the installed base, particularly given.
Some of the results that you talked about on Star will start well are you willing to do that are the operators willing to have a discussion around that to may be improve kind of your active units on the floor. Thanks.
So Chad will work going is I don't want to say that we're negotiating but I'd say more than anything we're using our relationships.
Theres a number of casinos out there that either half of their units are turned off for a third of their units are turned off.
And what we're doing is we're negotiating using relationships being creative.
We haven't done really any hard core pricing changes we've held the line on on average sale price, although albeit there hasn't been a lot of capital being spent right now but on the lease side, we've held pretty steady and we're just we've just been creative and using our relationships moving things around the floor to.
Try to get as many of our units we'll call it active or on so that we can generate revenue as far starway algos pipelines pretty rich and end to end. The interest is high so mostly that's us being discerning and saying where do we want to go with those right now in the midst of a pan.
Make and where do we want to sorta press pause and be patient.
Okay. Thanks, and then.
On your international business.
You made some comments in terms of where Mexico is I think we're all expecting somewhat of a lag to us in terms of just general businesses being turned on but as we think about how that business should fare I guess is that a can of your assessment that it should be a couple weeks or maybe a couple of months behind the U.S. and then on.
Philippines should we assume that this effort becomes more of a 2021 initiative versus I think what was.
What we expected to be more of a late 2020 initiative. Thanks.
Yes, thanks, So I'll start with Philippines, Thats, probably the more clear picture not a lot going on there right now I'd say, that's more of a delayed topic and good read on that it's going to be more of a 2021 thing than a 2020 item for us to focus on.
We're not really sure when anything is going to become terribly active in the Philippines I at least not at the moment Mexico's got I think between I think it's somewhere between 10 and 12% of our units.
Our active turned on our right now.
Is there a little bit more than a couple of weeks behind us as far as the pandemic goes I think the encouraging things that we've heard is that folks that go down and either have gone down on business or calm down for pleasure has said that by and large in the country, they're taking it very serious a lot of use.
Mask lot of use of social distancing.
You know cleaning everything appropriately so I think that we're probably looking at August and September we'll see more significant reopenings and we'll see that 10% to 12% tick up quite a bit but there definitely a little bit further than a couple of weeks there probably about a month to month.
Behind us on the reopening schedule.
Thanks, David appreciate it.
Thanks Jen.
The next question will be from Barry Jones with Suntrust. Please go ahead.
Hey, guys. This is Jeff on for Barry Thanks for taking your questions.
First off I was just curious in markets, where you are seeing flare ups in case scouts, what's what's been your experience there being any any real meaningful impact to yield or just any color data points. You can provide there would be helpful.
Yeah, you know it's interesting.
I don't see really a correlation and last something just has been shut down.
Outside of being a casino being shut down if the casinos have remained open I believe what I've seen mostly or at least heard.
It's just much more stringent controls by casinos.
In each state I'm not going to mention any state in particular.
It seems like as things have flared up the casinos have really locked down 100% mask usage inside casinos.
You know.
Hand, sanitizer stations everywhere more people on the floor outperforming cleaning social distancing more machine shutdown things like that.
But we can't really correlate anything in particular with our product performance, we've seen things flare up in a couple of states, but at the it hasn't really.
Directly.
Or even indirectly seem to impact the RPD in those states.
Okay, Great and then just.
Just given we've seen a spike in interest in electronic table within cash with wagering and other sort of socially distance offerings are you thinking about maybe development are moving into any kind of new tangential a products are offerings for the gaming floor.
Our open to a lot of things I think that.
You know.
A couple of those items you you mentioned are very you know in particular E tables is a very competitive space.
I think that on the cast aside there a couple of companies that are very focused on it.
We'll monitor over the coming months, you know and quarters in years to see what might make sense for US no immediate plans I think right now we'll stick to.
Stick to what we're good at and we'll stick to table games, and you know our slots and interactive obviously, we're focusing a little bit more energy on interactive right, now, which which obviously is.
Important during the pandemic, but no immediate plans there.
Okay, Great and just last one for me just given the strength in gaming revenues during his recovery relative to non gaming, which seems to be lots of focus for operators a lease in the near term did it could get to see some reallocation of capital by operators to the casino floor for from these other non gaming amenities, whether near term and.
And the recovery phase or even potentially to longer term.
I want to pound my Fest, and shout, yes, but listen I think I will temper my enthusiasm there and say.
That we would certainly hope that over time it would at least returned back to normal levels.
We don't see that prior to the ended the year necessarily but.
Our our aim would be for some of that to come back into play and be at more than normal levels next year would be fantastic then allocating more to the floor.
We'll wait and see I'll talk to more operators over the coming months I think right now.
There there are more focused on just an efficient operation doing the best with what they have on the floor and.
I think it plays into some of the things that we've done which as we go out we're going out there and we're optimizing by swapping out game titles.
Maybe moving machines around the floor, where we think they'll perform better and just trying to be a good partner with the casinos because it obviously, whether it's a purchase gain or at least game flat fee or even a participation games the better we do in that scenario for them.
Better our partner we are long term.
Okay, great. Thanks, that's all for me I appreciate all helpful color.
Thanks.
The next question is from John Decree with Union Gaming. Please go ahead.
Hi, everyone I think most of my questions. We're already answered, but wanted to circle back on the RPD performance of active units that you've seen it's been quite well and I think you've you've alluded to it David in some of the prior questions, but wondering if we could take a little deeper and get a sense of reviews I think in.
Press release are prepared remarks, you talked about pent up demand cares act, but as you watch that RPD trend.
Wondering if you kind of half of view on a level of sustainability.
If you start to kind of plan forget how much you think with pent up demand or lack of entertainment options. Just wondering if you just.
Give us a little bit more detail on your views as to how RPD might play out over the next three or six months based on kind of what you've seen so far.
Right. So so I think.
Obviously, our PD is going to be a fairly mixed bag. If you look at some of our PD numbers. It looks like some of our RPD is up.
20% to 30% in some locations.
So we obviously have to look to the competitive landscape the floor in general and say, how we indexing.
Theres, a couple areas, where we've index to little bit higher.
Hope those aren't anomalies, but thats, where we've also done quite a bit of optimization like in Oklahoma.
On the flip side I think that there's again, we're in we're wind aided a bit the pent up demand you've got the cares Act money you got the lack of entertainment options. Those are all pushing those numbers up higher right. It seems like it to it really pushed our numbers up pretty considerably from our PD point of view that said.
I think that I'll go back to one of the answers I gave on the online side, which is.
In the casinos there are some reports there are some reports that.
We don't have all of our regular customers back right. We don't have a certain band of customers at certain age I'm going to say those that are maybe my age and up not all of them have seem to return to the casino and that some of a younger generation have come. This is anecdotal. This is from just a few operators and I think.
That the hope there would be just like many other things is that when folks are introduced to something because other options aren't available when the world opens up again, maybe I'll say gaming can steal share forget about AIDS, yes, right and forget about any particular vendor, but perhaps we'll see is that gaming.
In general as an entertainment option will take some share from some other things that have been closed over this time.
I think thats, how we view it right now stickiness of that RPD is difficult to say bear in mind. Some of these places only 50% of the machines are open or 30% or close or something of alike. So those are obviously pushing our numbers up higher when the demand is there. The cares act money is there the lack of entertainment options are there.
And then some of the machines are close so we'll wait and see we're watching closely as new machines come back online or I should say I should say older machines come back as life machines.
And we'll watch closely.
Clearly in August here is some of that that cares Act money has has evaporated.
That's helpful. David I appreciate the additional color and just one more on a slightly separate topic, it's probably more than the for sale side.
We've talked already about operators being cash constrained and not really buying slots right now, but with trade shows canceled.
Q2, we and others.
How important are those trade shows to you for the sales process and getting your product out there at this point and as you think of the back half of the year and into next year as some of those capex dollars hopefully come back to slots, but how does the sales process change. It at this point absent those trade shows.
I'll tell you want I think I'll start with our sales team has really been fantastic and being creative and staying in front of our customers and any whatever form that has whether that's some local visits here and there you know mask on of course right or.
Or whether it's been via teams are zoom or anything of the like doing virtual meetings.
As far as the lack of a physical trade show.
We'll be okay. I mean, I think this industry knows how to operate without it if folks start to travel we'll have our show room opened right here at AG asset of course.
On top of that we have some virtual ideas that will explore.
I think the more important topic will just be the return of capital period, if that capital should return.
The vendors in this industry as a whole and ill speak.
As a whole for the industry I think that all of US are very creative were very customer centric very customer focused as an industry and I don't think that the lack of a GTB or any particular trade. So show is going to hurt us anymore than this pandemic has I think the key is just to get that those capital dollars flowing again in general and all of us.
Including age, Yes of course, we'll do our job and get out there and see our folks.
Great. Thanks, again for all the questions and answers.
Ladies and gentlemen, this concludes our question and answer session and thus concludes today's call.
Thank you for joining clean energy second quarter 2020 earnings Conference call. You May now disconnect take care.
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