US – Galaxy Gaming suspends billing during casino closuresBy Phil - 22 March 2020
Galaxy Gaming,, a developer and distributor of casino table games and enhanced systems, will suspend billing its customers whose casinos are closed as a result of the Coronavirus crisis. Such suspension will last for the duration of the closures.
“The world has changed drastically in the past week and our customers appear to be among the hardest hit, with mandatory closures in several jurisdictions and more likely to come,” said Todd Cravens, Galaxy’s President and CEO. “These closures will put incredible burdens on our customers with respect to their own customers and employees and we don’t want to add to those burdens. We hope the crisis passes quickly and we look forward to serving our customers again on the other side of this.”
“We will pro-rate Licensing Recurring arrangements for the portion of each month’s billing that the casino is closed,” stated Harry Hagerty, Galaxy’s CFO. “Performance Recurring billing will be unaffected as those invoices are based on the actual usage of the game during the month.
“We have sufficient cash on hand to continue to pay our employees through this limited closure,” Mr. Hagerty continued. “At the same time, we will work with many of our vendors to defer payment until such time as our industry returns to more normal conditions. And we will suspend all non-essential activities until then as well.”
The Company expects to file actual results for the year ended December 31, 2019 on Form 10-K on March 27, 2020. On a preliminary estimated basis, the Company expects to report revenue for FY 2019 of approximately $21.3m and adjusted EBITDA of approximately $8.8m. These figures compare to $18.6m in revenue and $6.6m in adjusted EBITDA for the comparable period in 2018. Further, the company expects to report that, at December 31, 2019, cash was $9.7m and long-term debt was $48m, including $39.1mof subordinated debt issued in connection with the redemption transaction in May 2019. The FY 2019 anticipated results presented in this release are based on preliminary financial data and are subject to change until the year-end financial reporting process is complete.