Supplier News
US – Galaxy Gaming sees revenue increase by 73 per cent in Q4
By Phil - 4 April 2022
Galaxy Gaming, a developer and distributor of casino table games and enhanced systems for land-based casinos and iGaming content, saw its revenues increase by 73 per cent in the fourth quarter to $5,670,000, giving it an increase fr the year of 95 per cent, taking its total to $19,984,000.
“We finished 2021 with positive momentum,” said Todd Cravens, President and CEO. “Even with some of our clients’ properties still affected by COVID-19, we delivered gross revenue of $6.1m in the fourth quarter, a record. Our iGaming business performed very well, with iGaming gross revenues of $8.1m in 2021, also a record. We believe, as the impacts of the COVID-19 pandemic continue to subside for our clients, we will experience a strong recovery in our GG Core business (felt and electronics) and continued growth in our iGaming business.”
“Our financial position is strong,” said Harry Hagerty, the Company’s CFO. “We have significant cash balances and modest debt maturities this year. We are prohibited from paying dividends or repurchasing stock until November of this year due to continuing restrictions imposed by the Main Street Priority Loan repaid last year. While we will remain responsive, we intend to continue to build up our cash position to keep net leverage low. Total Net Leverage is the only financial covenant in our Fortress loan, and we were comfortably in compliance with that covenant at year-end.”
Hagerty added, “For fiscal 2022, we are forecasting revenue (net of iGaming royalties) in a range of $23.5 to $25m, and Adjusted EBITDA in a range of $11.5 to $12.5m. This forecast assumes no new lockdowns from COVID-19, no impact to our business from the war in Ukraine, and no economic recession.”
“As we enter the 2022 calendar year, we look ahead in focusing the Company’s business efforts beyond on the severe negative existential impacts of the pandemic. We also, through substantial efforts of our collective team, set the Saucier litigation and related refinancing in our rear-view mirror in the midst of the tough operating environment of our customers which, in some cases, included complete closures. Additionally, in response to the significant increase in the price of our stock in 2021, we have decided to restructure Board compensation beyond the 35 per cent reduction in equity compensation we recently announced,” stated Mark Lipparelli, Chair of the Galaxy Board.
“We modified our methodology and targeted aggregate annual Board compensation for 2022 at the levels presented below, for all members, and intend to pay such compensation 60 per cent in cash and 40 per cent in stock. Cash compensation will be paid monthly in arrears and stock compensation will be paid quarterly in arrears, with the stock valued at the average daily closing price in the last month of the quarter. Ms. Kondra and Mr. Lipparelli will receive only the compensation presented below for their service as the Audit Committee Chair and Board Chair, respectively.”
