Galaxy Gaming returns to profit as revenue almost triples in Q3 2021
Land-based supplier Galaxy Gaming has recorded revenue figures of $5.3m for the third quarter of 2021, representing a 194.4% increase on the corresponding period last year.
The entire revenue total for the quarter was derived from licence fees. $2.8m came from Europe, Africa and the Middle East (a 157.7% increase from 2020) while the remaining $2.3m came from North America and the Caribbean (up 250.0%).
Galaxy's expenses for the quarter amounted to $4.1m, up from $2.7m last year. General and administrative costs were the biggest expense with $2.7m, depreciation and amortisation came to $722,475, share-based compensation amounted to $449,565, and research and development costs were $156,768.
Operating income totaled $1.2m, compared to the $898,303 loss suffered in 2020. After $195,482 of share redemption considerations, $129,422 of interest expenses, $33,781 of foreign currency losses and $21,186 of income taxes, net income for the quarter came to $874,236 - up from $1.3m losses last year.
Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) was $2.5m for the quarter - up 6844.4% from 2020.
Galaxy president and CEO Todd Cravens said: “In the third quarter of 2021, the Company showed the potential we have been working toward since early 2020.
“Revenue, Adjusted EBITDA and Adjusted EBITDA Margin all set records, even as a meaningful portion of our UK land-based customers remained closed in the quarter. We expect our land-based business to continue to recover from the COVID closures and for our online business to continue to grow in both Europe and North America.”
“The recovery of our business in the brick-and-mortar space continues, and we are benefitting from strength in the online sector," added Harry Hagerty, Galaxy's CFO. “As a result, our liquidity is improving. We're hopeful that these trends will continue for the balance of 2021 and into 2022.”
Galaxy also announced that it has paid its settlement in full to accounting equipment business Triangulum Partners and the company's former chairman and CEO Robert Saucier. This was achieved by entering a term loan credit agreement with Fortress Credit Corp estimated at approximately $60m.
Triangulum sued Galaxy after Galaxy tried to force Triangulum - a major galaxy shareholder - to sell its shares following a disagreement over regulatory matters.
On the settlement, Cravens said: “The Fortress transaction and the resulting satisfaction of the Settlement Agreement are a major achievement for Galaxy. The expense and uncertainty of the Triangulum litigation are behind us, allowing us to focus all of our efforts on customers, products and business development.
“We appreciate the confidence in us that Fortress has shown, and we look forward to a mutually rewarding relationship. Finally, we are very grateful for the support that Nevada State Bank gave us during the three-plus years of our lending relationship with them, and we look forward to continuing our relationship on the treasury side.”