Casino table games developer and distributor Galaxy Gaming has announced its financial results for the fiscal quarter ended 31 March 2020.
Q1 2020 vs. Q1 2019
Revenue decreased 15.9% to $4,494K
Adjusted EBITDA decreased 25.7% to $1,501K1
Net income decreased 74.7% to $117K
Balance Sheet Changes (vs. 31 December 2019)
Cash increased 14.1% to $11,051K
Total debt (gross) increased 1.2% to $48,613K
Stockholders’ deficit decreased 1.0% to ($27,351)K
“The industry we serve experienced unprecedented disruption beginning in the middle of March. Almost every one of our clients in the physical casino world closed in response to the COVID-19 pandemic. We decided and announced that we would not bill them while they were closed, meaning that we earned no revenue from them in the second half of March. During this time, our focus was on the health and safety of our team who, while working remotely, went above and beyond to assist each other and our clients in working through these new challenges and constraints. We were pleased that online gaming continued to perform well during the shutdown, and we expect this business line to increase in importance to us,” Todd Cravens, President and CEO of Galaxy Gaming, said.
“We were fortunate to have a significant amount of cash when the shutdowns started. In addition, we drew down the full $1 million available on our revolving line of credit to supplement those balances. That liquidity allowed us to keep the team intact and to meet our financial obligations during the shutdown. We were in compliance with the covenants in our bank credit agreement at the end of Q1 2020. Subsequent to the first quarter, we applied for and received $835 thousand in financing under the SBA’s PPP program,” Harry Hagerty, CFO of Galaxy Gaming, said.