LAS VEGAS, March 31, 2022 (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, 2021.

Financial Highlights

Q4 2021 vs. Q4 2020

Revenue increased 73% to $5,670K
Adjusted EBITDA increased 93% to $2,431K1
Net income of $598K vs. net income of $1,179K2

Full Year 2021 vs. Full Year 2020

Revenue increased 95% to $19,984K
Adjusted EBITDA increased 534% to $8,734K3
Net income of $2,112K vs. net loss of $(2,209)K

Balance Sheet Changes (vs. December 31, 2020)

Cash increased 168% to $16,059K
Total long-term debt4 (gross) increased to $60,500K from $52,051K
Stockholders’ deficit decreased to $(17,286)K from $(24,797)K

Executive Comments

“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 $6.1 million in the fourth quarter, a record. Our iGaming business performed very well, with iGaming gross revenues of $8.1 million 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 $25.0 million, and Adjusted EBITDA in a range of $11.5 to $12.5 million. This forecast assumes no new lockdowns from COVID-19, no impact to our business from the war in Ukraine, and no economic recession.”

Governance Comments

“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% 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% in cash and 40% 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.”

“Using a share price of $4.45, the proposed Board compensation plan would result in 74,157 shares being issued to our five Directors in 2022. Based on the 23,718,968 shares outstanding on March 28, 2022, this represents projected dilution of approximately 3/10ths of one percent. We appreciate shareholders’ interest in and support for Galaxy, and we look forward to the Company’s future success together.”

See complete release with spreadsheet at https://ir.galaxygaming.com/news-events/press-releases/detail/547/galaxy-gaming-reports-q4-and-full-year-2021-financial.