Galaxy Gaming Reports Q3 2021 Financial Results
Galaxy Gaming (GLXZ) reported strong financial results for Q3 2021, with revenue soaring to $5,282K from $1,798K in Q3 2020. Adjusted EBITDA rose significantly to $2,463K compared to $36K last year, highlighting impressive growth. The company achieved a net income of $874K, a turnaround from a net loss of $(1,298)K. In the first nine months of 2021, total revenue reached $14,314K, with an adjusted EBITDA of $6,303K. Cash reserves increased by 23.5% to $7,402K, while total debt decreased to $50,215K.
- Q3 revenue growth of 194% year-over-year to $5,282K.
- Adjusted EBITDA surged to $2,463K from $36K last year.
- Net income of $874K compared to a loss of $(1,298)K.
- Cash increased by 23.5% to $7,402K.
- Total debt reduced to $50,215K from $51,914K.
- None.
LAS VEGAS, Nov. 15, 2021 (GLOBE NEWSWIRE) -- Galaxy Gaming, Inc. (OTCQB: GLXZ), a developer and distributor of casino table games and enhanced systems for land-based casinos and iGaming (the “Company”), announced today its financial results for the fiscal quarter ended September 30, 2021.
Financial Highlights
Q3 2021 vs. Q3 2020
- Revenue increased to
$5,282 K from$1,798 K - Adjusted EBITDA1 increased to
$2,463 K from$36 K - Net income of
$874 K vs. a net loss of$(1,298) K - Net Income per share (diluted) of
$0.04 vs net loss per share (diluted) of$(0.07)
9 Months 2021 vs. 9 Months 2020
- Revenue increased to
$14,314 K from$6,956 K - Adjusted EBITDA2 increased to
$6,303 K from$116 K - Net income of
$1,513 K vs. a net loss of$(3,387) K - Net Income per share (diluted) of
$0.07 vs net loss per share (diluted) of$(0.18)
Balance Sheet Changes (vs. December 31, 2020)
Cash increased
Total debt (gross) decreased to
Stockholders’ deficit decreased to
Executive Comments
“In the third quarter of 2021, the Company showed the potential we have been working toward since early 2020,” said Todd Cravens, Galaxy’s President and CEO. “Revenue3, Adjusted EBITDA and Adjusted EBITDA Margin all set records, even as a meaningful portion of our UK land-based customers remained closed in the quarter. We expect our land-based business to continue to recover from the COVID closures and for our online business to continue to grow in both Europe and North America.”
“The recovery of our business in the brick-and-mortar space continues, and we are benefitting from strength in the online sector,” said Harry Hagerty, Galaxy’s CFO. “As a result, our liquidity is improving. We’re hopeful that these trends will continue for the balance of 2021 and into 2022.”
Forward-Looking Statements
Certain statements in this release may constitute forward-looking statements, which involve a number of risks and uncertainties. Galaxy cautions readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information due to a number of factors, including those listed from time to time in reports that Galaxy files with the Securities and Exchange Commission.
Non-GAAP Financial Information
Adjusted EBITDA includes adjustments to net income to exclude interest, income taxes, depreciation, amortization, share based compensation, foreign currency exchange loss, change in estimated fair value of interest rate swap liability and severance and other expenses related to litigation. Adjusted EBITDA is not a measure of performance defined in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). However, adjusted EBITDA is used by management to evaluate our operating performance. Management believes that disclosure of the Adjusted EBITDA metric offers investors, regulators and other stakeholders a view of our operations in the same manner management evaluates our performance. When combined with U.S. GAAP results, management believes Adjusted EBITDA provides a comprehensive understanding of our financial results. Adjusted EBITDA should not be considered as an alternative to net income or to net cash provided by operating activities as a measure of operating results or of liquidity. It may not be comparable to similarly titled measures used by other companies, and it excludes financial information that some may consider important in evaluating our performance.
About Galaxy Gaming
Headquartered in Las Vegas, Nevada, Galaxy Gaming (galaxygaming.com) develops and distributes innovative proprietary table games, state-of-the-art electronic wagering platforms and enhanced bonusing systems to the land-based, riverboat, and cruise ship casinos worldwide. In addition, through its wholly-owned subsidiary, Progressive Games Partners LLC, Galaxy licenses proprietary table games content to the online gaming industry. Connect with Galaxy on Facebook, YouTube and Twitter.
1 Adjusted EBITDA excludes expenses related to our litigation with Triangulum of
2 Adjusted EBITDA excludes expenses related to our litigation with Triangulum of
3 Revenue before deducting royalty expenses in the online business was
| Contact: | |
| Media: | Phylicia Middleton (702) 936-5216 |
| Investors: | Harry Hagerty (702) 938-1740 |
Reconciliation of Net Income to Adjusted EBITDA
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| Adjusted EBITDA Reconciliation: | 2021 | 2020 | 2021 | 2020 | ||||||||||||
| Net income (loss) | $ | 874,236 | $ | (1,297,499 | ) | $ | 1,513,428 | $ | (3,387,475 | ) | ||||||
| Interest expense | 129,422 | 162,082 | 450,474 | 506,922 | ||||||||||||
| Share redemption consideration | 195,482 | 195,482 | 586,446 | 586,446 | ||||||||||||
| Interest income | (392 | ) | (1,412 | ) | (1,163 | ) | (25,313 | ) | ||||||||
| Depreciation and amortization | 722,475 | 575,637 | 2,160,217 | 1,499,927 | ||||||||||||
| Share-based compensation | 449,564 | 178,553 | 1,207,649 | 512,818 | ||||||||||||
| Foreign currency exchange loss (gain) | 33,781 | (20,014 | ) | 31,511 | 95,976 | |||||||||||
| Change in fair value of interest rate swap liability | — | (55,330 | ) | (66,009 | ) | (21,650 | ) | |||||||||
| (Benefit) provision for income taxes | (21,186 | ) | 133,708 | 7,000 | (492,807 | ) | ||||||||||
| Other non-recurring income | (25,000 | ) | (15,320 | ) | (25,000 | ) | (15,320 | ) | ||||||||
| Severance expense | 8,846 | (3,243 | ) | 12,596 | 20,058 | |||||||||||
| Special project expense | 95,894 | 183,059 | 425,540 | 836,415 | ||||||||||||
| Adjusted EBITDA | $ | 2,463,122 | $ | 35,703 | $ | 6,302,689 | $ | 115,997 | ||||||||
FAQ
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