Galaxy Gaming posts loss but rise in revenue for third quarter

November 22, 2022 10:47 AM
  • Matthew Crowley, CDC Gaming Reports
November 22, 2022 10:47 AM
  • Matthew Crowley, CDC Gaming Reports

Revenue rose for Galaxy Gaming, although higher professional-services expenses and inflation’s wearing effects sent the company to a loss in the third quarter, reversing year-earlier income.

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In an 8-K report filed with the Securities and Exchange Commission, Galaxy, a Las Vegas-based casino table-games and enhanced-systems developer, posted a net loss of $698,690, or 3 cents per share, for the three months ended Sept. 30, reversing net income of $874,236, or 4 cents per share, a year earlier.

Adjusted earnings before interest, taxes, depreciation, and amortization, a cash-flow metric that excludes one-time costs, fell 0.4% to $2.4 million from $2.5 million.

Revenue rose 11.3% to $5.9 million from $5.3 million.

In a statement, Chief Executive Officer Todd Cravens said Galaxy Gaming received several commitments for trials of new games and technologies it introduced at October’s Global Gaming Expo in Las Vegas. Cravens didn’t name products or clients involved in these deals, but Galaxy’s G2E offerings included the Galaxy OS table-management system, which features a flexible electronic bonusing platform for real-time, daily-jackpot, and tiered and linked progressives.

Chief Financial Officer Harry Hagerty said the company’s balance sheet improved in the quarter, with increased cash balances and modestly reduced debt balances.

“We were comfortably in compliance with the financial covenant in our Fortress credit agreement,” he said.

Galaxy issued full-year 2022 revenue guidance in the midpoint of the previously expressed range of $22.5 million to $23.5 million and adjusted EBITDA at the low end of the previously expressed range of $10 million to $11 million.

On Nov. 11, Galaxy’s board of directors reauthorized repurchases up to $750,000 in company common stock.
Galaxy shares fell 5 cents, or 2%, Monday to close at $2.45 on the Over-the-Counter Bulletin Board. The share price has fallen 61 percent in 2022.