Galaxy Gaming Reports Q3 2022 Financial Results
Galaxy Gaming (GLXZ) reported its Q3 2022 financial results, featuring a 12% revenue increase to $5,907K compared to Q3 2021. However, adjusted EBITDA decreased 5% to $2,350K, and the company faced a net loss of $699K, a stark contrast to the net income of $874K in the prior year. For the first nine months of 2022, revenue rose 22% to $17,502K with adjusted EBITDA up 17% to $7,382K, but net loss for the period was $1,828K. The company improved its cash position by 20% to $19,275K, while long-term debt slightly decreased.
- Q3 2022 revenue increased by 12% to $5,907K.
- Year-to-date revenue rose 22% to $17,502K.
- Adjusted EBITDA increased by 17% to $7,382K for the first nine months.
- Cash increased by 20% to $19,275K.
- Long-term debt decreased from $60,500K to $59,550K.
- Q3 2022 net loss was $(699)K compared to a net income of $874K in Q3 2021.
- Net loss for the first nine months was $(1,828)K compared to net income of $1,513K in 2021.
- Adjusted EBITDA decreased 5% in Q3 2022.
LAS VEGAS, Nov. 14, 2022 (GLOBE NEWSWIRE) -- Galaxy Gaming, Inc. (OTCQB: GLXZ), a developer and distributor of casino table games and enhanced systems for land-based casinos and iGaming content, announced today its financial results for the quarter and nine months ended September 30, 2022.
Financial Highlights
Q3 2022 vs. Q3 2021
- Revenue increased
12% to$5,907 K - Adjusted EBITDA decreased
5% to$2,350 K - Net loss of
$(699) K vs. net income of$874 K
9 Months 2022 vs. 9 Months 2021
- Revenue increased
22% to$17,502 K - Adjusted EBITDA increased
17% to$7,382 K - Net loss of
$(1,828) K vs. net income of$1,513 K
Balance Sheet Changes (vs. December 31, 2021)
- Cash increased
20% to$19,275 K - Total long-term debt1 (gross) decreased to
$59,550 K from$60,500 K - Stockholders’ deficit increased to
$(18,506) K from$(17,286) K
Executive Comments
“Despite the continued strengthening of the US dollar, we had an excellent quarter,” said Todd Cravens, President and CEO. “On a constant currency basis, revenue increased by
“Finally, at the end of the quarter, in consideration of a
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1 Includes current portion.
“Exchange rates, interest rates and inflation rates worsened in Q3,” stated Harry Hagerty, Galaxy’s CFO. “The dollar continued to appreciate versus the Euro and the British Pound, and the floating rate upon which our interest expense is calculated increased by 138 basis points in the quarter. Inflation continues to affect us as most of our expenses are denominated in US dollars, and the current quarter reflects a higher-than-normal level of professional services expenses as we strengthen our financial systems and our intellectual property protection. But despite the challenges, the Company is performing well, as Todd’s comments about revenue in constant currency and our G2E performance attest. Our balance sheet improved in the quarter with increased cash balances and modestly reduced debt balances, and we were comfortably in compliance with the financial covenant in our Fortress credit agreement.
“The worsening rates environment requires us to modestly modify our guidance for the remainder of the current year,” Hagerty added. “We now forecast revenue in the midpoint of the previously expressed range of
On November 11, 2022, the Board of Directors reauthorized repurchases of the Company’s common stock of up to
Forward-Looking Statements
This press release contains, and oral statements made from time to time by our representatives may contain, forward-looking statements based on management's current expectations and projections, which are intended to qualify for the safe harbor of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements identified by words such as "believe," "will," "may," "might," "likely," "expect," "anticipates," "intends," "plans," "seeks," "estimates," "believes," "continues," "projects" and similar references to future periods, or by the inclusion of forecasts or projections. All forward-looking statements are based on current expectations and projections of future events.
These forward-looking statements reflect the current views, models, and assumptions of Galaxy Gaming, and are subject to various risks and uncertainties that cannot be predicted or qualified and could cause actual results in Galaxy Gaming's performance to differ materially from those expressed or implied by such forward looking statements. These risks and uncertainties include, but are not limited to, the ability of Galaxy Gaming to enter and maintain strategic alliances, product placements or installations, in land based casinos or grow its iGaming business, garner new market share, secure licenses in new jurisdictions or maintain existing licenses, successfully develop or acquire and sell proprietary products, comply with regulations, have its games approved by relevant jurisdictions, and other factors. All forward-looking statements made herein are expressly qualified in their entirety by these cautionary statements and there can be no assurance that the actual results, events, or developments referenced herein will occur or be realized. Readers are cautioned that all forward-looking statements speak only to the facts and circumstances present as of the date of this press release. Galaxy Gaming expressly disclaims any obligation to update or revise any forward-looking statements, whether because of new information, future events or otherwise.
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 land-based, riverboat, and cruise ship and 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.
Non-GAAP Financial Information
Adjusted EBITDA includes adjustments to net loss/income to exclude interest, taxes, depreciation, amortization, share based compensation, gain/loss on extinguishment of debt, foreign currency exchange gains/losses, 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 Adjusted EBITDA allows investors, regulators, and other stakeholders to view of our operations in the way management does. 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. Finally, Adjusted EBITDA may not be comparable to similarly titled measures used by other companies.
Contact:
| Media: | Phylicia Middleton (702) 936-5216 |
| Investors: | Harry Hagerty (702) 938-1740 |
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| Adjusted EBITDA Reconciliation: | 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Net (loss) income | $ | (698,690 | ) | $ | 874,236 | $ | (1,828,293 | ) | $ | 1,513,428 | ||||||
| Interest expense | 1,896,865 | 129,422 | 5,281,322 | 450,474 | ||||||||||||
| Share redemption consideration | — | 195,482 | — | 586,446 | ||||||||||||
| Interest income | (18,674 | ) | (392 | ) | (23,166 | ) | (1,163 | ) | ||||||||
| Depreciation and amortization | 740,069 | 722,475 | 2,189,789 | 2,160,217 | ||||||||||||
| Share-based compensation | 329,140 | 449,564 | 954,550 | 1,207,649 | ||||||||||||
| Foreign currency exchange loss (gain) | 255,140 | 33,781 | 490,041 | 31,511 | ||||||||||||
| Change in fair value of interest rate swap liability | — | — | — | (66,009 | ) | |||||||||||
| Provision (benefit) for income taxes | (154,944 | ) | (21,186 | ) | (101,941 | ) | 7,000 | |||||||||
| Other non-recurring income | 18,255 | (25,000 | ) | 18,255 | (25,000 | ) | ||||||||||
| Severance expense | — | 8,846 | 28,477 | 12,596 | ||||||||||||
| Special project expense (benefit) - Triangulum | — | 116,798 | (86,959 | ) | 413,024 | |||||||||||
| Special project expense - Other | (17,000 | ) | (20,904 | ) | 459,904 | 12,516 | ||||||||||
| Adjusted EBITDA | $ | 2,350,161 | $ | 2,463,122 | $ | 7,381,979 | $ | 6,302,689 | ||||||||
FAQ
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