Galaxy Gaming Reports Q4 2020 and Full Year 2020 Financial Results
Galaxy Gaming, Inc. (OTCQB: GLXZ) reported financial results for Q4 and FY 2020, showing significant declines due to industry challenges. Q4 revenue fell 37% to $3,274K, while FY revenue dropped 52% to $10,230K. Adjusted EBITDA was down 41% at $1,261K for Q4 and an 84% decline for the year at $1,377K. A net income of $1,179K in Q4 contrasts sharply with a net loss of $(2,209)K for FY 2020. Despite these figures, management remains optimistic about future growth, particularly in iGaming, following the acquisition of PGP.
- Galaxy's acquisition of PGP enhances its iGaming capabilities, expected to drive future growth.
- Management anticipates launching new games and technology platforms in 2021.
- Q4 revenue decreased 37% compared to Q4 2019.
- FY 2020 revenue declined 52% compared to FY 2019.
- Adjusted EBITDA decreased 41% in Q4 and 84% for the full year.
- Net loss of $(2,209)K in FY 2020 compared to a net income of $2,943K in FY 2019.
- Cash reserves decreased 38% to $5,993K.
LAS VEGAS, March 31, 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 content, announced today its financial results for the quarter and fiscal year ended December 31, 2020.
Financial Highlights
Q4 2020 vs. Q4 2019
- Revenue decreased
37% to$3,274 K - Adjusted EBITDA decreased
41% to$1,261 K - Net income of
$1,179 K1 vs. net income of$848 K
Full Year 2020 vs. Full Year 2019
- Revenue decreased
52% to$10,230 K - Adjusted EBITDA decreased
84% to$1,377 K2 - Net loss of
$(2,209) K vs. net income of$2,943 K
Balance Sheet Changes (vs. December 31, 2019)
Cash decreased
Total long-term liabilities (gross) increased
Stockholders’ deficit decreased to
Executive Comments
“2020 imposed great stresses on our industry, and Galaxy was not immune,” stated Todd Cravens, Galaxy’s President and CEO. “However, I think we turned some of those stresses to our advantage. We were able to accommodate our clients during their closures and provide timely service to help them reopen, earning very high net promoter scores in an especially challenging time. From a product perspective, we used the downtime to develop new games and a new technology platform, and we will be launching these in 2021 as they are approved by our regulators. Finally, and most significantly, our acquisition of PGP in August made iGaming a much more important part of our business. We expect iGaming to be one of the major growth areas going forward, and we are well-positioned to benefit from those trends.”
“Our motto in the pandemic was “Survive then Thrive,” said Harry Hagerty, the Company’s CFO. “And thanks to the great cooperation and assistance from our friends at Nevada State Bank and the availability of certain government relief programs, we came through 2020 intact. We hope that the first half of 2021 will mark the end of the Survive phase and that the great things that Todd mentioned in his comments will allow us to start Thriving in the second half of 2021 and accelerating 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 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 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 games, bonusing systems, and technology solutions to physical and online casinos worldwide. Galaxy Gaming offers games that are proven to perform developed by gaming experts and backed by the highest level of customer support. Through its subsidiary, Progressive Games Partners, Galaxy Gaming is the world’s leading licensor of proprietary table games to the online gaming industry. Connect with Galaxy Gaming on Facebook, YouTube, Instagram, and Twitter.
Contact:
| Media: | Phylicia Middleton (702) 936-5216 |
| Investors: | Harry Hagerty (702) 938-1753 |
1 Q4 2020 net income includes a gain of
2 Adjusted EBITDA excludes approximately
FAQ
What were Galaxy Gaming's financial results for Q4 2020?
How did Galaxy Gaming perform in FY 2020?
What is the outlook for Galaxy Gaming in 2021?
What were the Adjusted EBITDA figures for Galaxy Gaming in 2020?
