LAS VEGAS, Nov. 30, 2023 (GLOBE NEWSWIRE) — Galaxy Gaming, Inc. (OTC: GLXZ) has announced that it has signed an agreement with leading content provider Pragmatic Play extending the existing term for the licensing of Galaxy table game content across its portfolio of Live Casino and RNG gaming experiences.

Expanding on the existing success of 21+3® and Perfect Pairs® configured on Pragmatic Play’s Blackjack titles, this agreement will also extend Perfect Pairs® across Pragmatic Play’s Baccarat titles and enable further expansion across Galaxy’s catalogue of games. These additions to Pragmatic Play’s portfolio will provide an exciting enhancement to its already popular offerings.

Matt Reback, President and CEO of Galaxy Gaming commented: “We’re thrilled to be extending and expanding our partnership with Pragmatic Play. They deliver a first-class Live and RNG casino environment experience enhanced by our world-famous side bets. Our continued partnership aligns with our long-term strategy to deliver the best table game content to operators and players everywhere.”

Irina Cornides, Chief Operating Officer at Pragmatic Play, said: “Pragmatic Play has enjoyed a successful partnership with Galaxy Gaming, and we’re delighted to deepen our cooperation as part of our continued product expansion.”

About Galaxy Gaming
Headquartered in Las Vegas, Nevada, Galaxy Gaming (galaxygaming.com) develops and distributes innovative games, bonusing systems, and technology solutions to physical and online casinos worldwide. Galaxy Gaming offers games that are proven to perform developed by gaming experts and backed by the highest level of customer support. Through its subsidiary, Progressive Games Partners, Galaxy Gaming is the world’s leading licensor of proprietary table games to the online gaming industry. Connect with Galaxy Gaming on Facebook, YouTube, Instagram, and Twitter.

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About Pragmatic Play
Pragmatic Play, headquartered in Gibraltar, is a leading game supplier providing player favourites to the most successful global brands in the iGaming industry. Powering up new possibilities of play through one single API, Pragmatic Play offers a multi-product portfolio of award-winning slots, live casino, bingo, virtual sports, sportsbook, and more, available in all major regulated markets, languages, and currencies.

This press release contains, and oral statements made from time to time by our representatives may contain, forward-looking statements based on management’s current expectations and projections, which are intended to qualify for the safe harbor of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements identified by words such as “believe,” “will,” “may,” “might,” “likely,” “expect,” “anticipates,” “intends,” “plans,” “seeks,” “estimates,” “believes,” “continues,” “projects” and similar references to future periods, or by the inclusion of forecasts or projections. All forward-looking statements are based on current expectations and projections of future events.

These forward-looking statements reflect the current views, models, and assumptions of Galaxy Gaming, and are subject to various risks and uncertainties that cannot be predicted or qualified and could cause actual results in Galaxy Gaming’s performance to differ materially from those expressed or implied by such forward looking statements. These risks and uncertainties include, but are not limited to, the ability of Galaxy Gaming to enter and maintain strategic alliances, product placements or installations in land based casinos or grow its iGaming business, garner new market share, secure licenses in new jurisdictions or maintain existing licenses, successfully develop or acquire and sell proprietary products, comply with regulations, changes in gaming related and non-gaming related statutes and regulations and/or self-imposed restrictions imposed on and by our customers that affect their revenues in land-based casino and online casino markets, have its games approved by relevant jurisdictions, and adapt to changes resulting from the COVID-19 or other pandemics including without limitation, government imposed shut downs, travel restrictions and supply chain interruptions, and other factors. All forward-looking statements made herein are expressly qualified in their entirety by these cautionary statements and there can be no assurance that the actual results, events or developments referenced herein will occur or be realized. Readers are cautioned that all forward-looking statements speak only to the facts and circumstances present as of the date of this press release. Galaxy Gaming expressly disclaims any obligation to update or revise any forward-looking statements, whether because of new information, future events or otherwise.

Contact:

Media:
Phylicia Middleton (702) 938-1753
Investors:
Harry Hagerty (702) 938-1740

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LAS VEGAS, Nov. 13, 2023 (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 nine months ended September 30, 2023.

Financial Highlights

Q3 2023 vs. Q3 2022

• Revenue increased 3% to $6,104K
• Adjusted EBITDA decreased 36% to $1,510K
• Net loss of $(1,455)K vs. net loss of $(699)K

Nine months 2023 vs. Nine Months 2022

• Revenue increased 20% to $21,052K
• Adjusted EBITDA increased 6% to $7,807K
• Net loss of $(988)K vs. net loss of $(1,828)K

Balance Sheet Changes (vs. December 31, 2022)

• Cash decreased 13% to $15,938K
• Total long-term debt¹ (gross) decreased to $58,673K from $59,740K
• Stockholders’ deficit increased to $(18,077)K from $(17,885)K

Executive Comments

“Despite some challenges in the third quarter, 2023 is shaping up to be a record year for Galaxy,” said Todd Cravens, President and CEO. “We had a sequential decline in revenue in Q3 principally because sales of perpetual licenses were lower in Q3 than in Q1 and Q2. We expect that future sales of these perpetual licenses will make our quarterly results lumpier than in the past. However, we will continue to pursue these sales as they result in substantial increases to our installed base and offer additional recurring revenue opportunities.

“Galaxy became the distributor of EZ Baccarat^TM on September 9 and added approximately 500 tables in approximately 120 casinos to our installed base. This is a significant step in our strategic plan of penetrating other table games families in addition to blackjack. Based on the existing installed base, we believe that the distribution of EZ Baccarat could add more than $3 million to our EBITDA on an annual basis, with upside coming from new installs both in the land-based and online markets.

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“Finally, we had our best G2E show ever, setting us up for increased revenue in fiscal 2024,” concluded Cravens.

“Perpetual license sales were $0.5 million in Q3 as compared to $1.3 million and $1.6 million in Q1 and Q2, respectively,” said Harry Hagerty, CFO. “Excluding those sales, revenue in GG Core was $3.8 million in Q3 ‘23 as compared to $3.9 million in Q3 ‘22. In GG Digital, revenue (net) was $1.8 million in Q3 ‘23 as compared to $2.0 million in Q3 ‘22. GG Digital revenues in Q3 ‘23 exclude approximately $69,000 of deferred revenue that will be realized no later than April of 2024. Gross revenues were flat at $2.5 million in Q3 ‘23 as compared to the same period in 2022, which is a positive result given the reduced license rate we now have with a large customer. Royalty expense (which is a contra revenue item in GG Digital) increased from approximately $516,000 in Q3 ‘22 as compared to approximately $734,000 in Q3 ‘23, reflecting the growth of a game that we license from a third party.

“Our expenses increased year over year due to several factors. Cost of sales and sales commissions increased by almost $200,000, largely related to the perpetual license revenue in Q3 ‘23. Compensation costs increased by approximately $236,000 due to headcount and salary increases which were offset by $103,000 decrease in share-based compensation expense. Legal and regulatory expenses increased due to our continuing efforts to protect our IP worldwide and to increased jurisdictional filings in connection with our EZ Baccarat distribution agreement. Finally, our allowance for doubtful accounts increased by $107,000 in Q3 ‘23 as compared to Q3 ‘22, principally related to financial uncertainties affecting a single customer in the state of Washington.

“Our cash position declined as we purchased over $1 million in equipment to fulfill demand for GoS and EZ Baccarat placements, we prepaid $644,000 in royalty expenses, and cash interest paid on principal payments exceeded Adjusted EBITDA by $413,000” Hagerty continued. “Our loan from Fortress Credit Corp. requires our net leverage not to exceed 6.0x at any of the quarter-ends in 2023, and at the end of Q3 we were at 3.7x, comfortably in compliance. It remains our intention to reduce our net leverage and to pursue refinancing opportunities.

“With respect to the fourth quarter of fiscal 2023, we are forecasting revenue in a range of $7.0-$7.5 million and Adjusted EBITDA in a range of $2.8-$3.2 million. This forecast assumes around $200,000 in perpetual license sales and around $800,000 in net revenues from EZ Baccarat distribution. This forecast assumes no impact to our business from the wars in Ukraine and the Middle East, and no economic recession. Finally, the forecast is based on currency exchange rates that we experienced in the third quarter.”

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The company will update its investor deck to reflect the results this quarter. Investors are encouraged to send questions to management at [email protected] by Wednesday, November 15, 2023. Management will post their answers to investors on November 22.

Forward-Looking Statements

This press release contains, and oral statements made from time to time by our representatives may contain, forward-looking statements based on management’s current expectations and projections, which are intended to qualify for the safe harbor of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements identified by words such as “believe,” “will,” “may,” “might,” “likely,” “expect,” “anticipates,” “intends,” “plans,” “seeks,” “estimates,” “believes,” “continues,” “projects” and similar references to future periods, or by the inclusion of forecasts or projections.  All forward-looking statements are based on current expectations and projections of future events.

These forward-looking statements reflect the current views, models, and assumptions of Galaxy Gaming, and are subject to various risks and uncertainties that cannot be predicted or qualified and could cause actual results in Galaxy Gaming’s performance to differ materially from those expressed or implied by such forward looking statements. These risks and uncertainties include, but are not limited to, the ability of Galaxy Gaming to enter and maintain strategic alliances, product placements or installations, in land based casinos or grow its iGaming business, garner new market share, secure licenses in new jurisdictions or maintain existing licenses, successfully develop or acquire and sell proprietary products, comply with regulations, have its games approved by relevant jurisdictions, and adapt to changes resulting from the COVID-19 pandemic and other factors. All forward-looking statements made herein are expressly qualified in their entirety by these cautionary statements and there can be no assurance that the actual results, events, or developments referenced herein will occur or be realized. Readers are cautioned that all forward-looking statements speak only to the facts and circumstances present as of the date of this press release. Galaxy Gaming expressly disclaims any obligation to update or revise any forward-looking statements, whether because of new information, future events or otherwise.

About Galaxy Gaming

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Headquartered in Las Vegas, Nevada, Galaxy Gaming (galaxygaming.com) develops and distributes innovative proprietary table games, state-of-the-art electronic wagering platforms and enhanced bonusing systems to land-based, riverboat, and cruise ship and casinos worldwide. In addition, through its wholly owned subsidiary, Progressive Games Partners LLC, Galaxy licenses proprietary table games content to the online gaming industry. Connect with Galaxy on Facebook, YouTube   and Twitter.

Non-GAAP Financial Information

Adjusted EBITDA includes adjustments to net loss/income to exclude interest, taxes, depreciation, amortization, share based compensation, gain/loss on extinguishment of debt, foreign currency exchange gains/losses, change in estimated fair value of interest rate swap liability and severance and other expenses related to litigation. Adjusted EBITDA is not a measure of performance defined in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). However, Adjusted EBITDA is used by management to evaluate our operating performance. Management believes that disclosure of Adjusted EBITDA allows investors, regulators, and other stakeholders to view our operations in the way management does.   Adjusted EBITDA should not be considered as an alternative to net income or to net cash provided by operating activities as a measure of operating results or of liquidity. Finally, Adjusted EBITDA may not be comparable to similarly titled measures used by other companies.

¹ Includes current portion.

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LAS VEGAS, Nov. 06, 2023 (GLOBE NEWSWIRE) — Galaxy Gaming, Inc. (OTCQB: GLXZ) (“Galaxy” or the “Company”), a developer and distributor of casino table games and enhanced systems for land-based casinos and iGaming, announced today that its Board of Directors has appointed a new President and Chief Executive Officer of the Company. The Company’s Board of Directors has appointed Matt Reback, who will join Galaxy on November 13, 2023.

“We are excited to welcome Matt as the Company’s new President and CEO. The Board carefully considered this change, examined multiple candidates, and ultimately believed it was the right decision to bring a new perspective into the Company as we embark on our next phase of growth,” stated Mark Lipparelli, Chairman of Galaxy’s Board of Directors. “Matt brings to Galaxy a combination of 20 years of leadership skills acquired in the gaming industry from both operator and technology companies. On a positive note, we are making this change with a solid foundation intact, and we are well-positioned going into the 2024 fiscal year.”

“I am looking forward to joining the Galaxy team and continuing what has been a great story in the gaming industry,” stated Matt Reback. “I intend to quickly get up to speed and make sure our 2023 year-end goals and 2024 plans remain on-track, while also taking a fresh look at our opportunities. There is a team of talented people at Galaxy who have demonstrated their ability to compete effectively against companies with more resources as well as their success forming strong industry partnerships. I expect that one of my goals with the Board will be to build on those successes.”

Prior to accepting this role, Mr. Reback served as the founder and President of Bravery Gaming. Prior thereto Mr. Reback held senior management positions in product management, sales, marketing and operations with AGS, Konami Gaming, Red Rock Casinos (formerly Station Casinos) and Caesars Entertainment. Mr. Reback is a graduate of UCLA and University of San Diego School of Law.

Lipparelli added, “We are appreciative of Todd Cravens’ material contributions to the development of Galaxy over the past six years, including navigating successfully the difficult pandemic period. We wish him well in his next endeavor.”

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The Company intends to work through a brief transition with Mr. Cravens and expects Harry Hagerty to serve as an interim President and Chief Executive Officer should such a need arise.

The Company expects to release third quarter results on Monday, November 13. It currently expects to report Revenue of $6.1 million and Adjusted EBITDA of $1.5 million for the quarter and Revenue of $21.1 million and Adjusted EBITDA of $7.8 million for the nine months ended September 30, 2023. In the third quarter, revenues from perpetual license sales were approximately $1 million lower than in the first and second quarters of 2023. In the third quarter, the Company significantly increased its allowance for doubtful accounts, principally as a result of financial difficulties at a single customer, and it continued to incur significant legal expenses related to intellectual property registrations around the world. The Company expects to report that, at September 30, 2023, it had $58.7 million in debt and $15.9 million in cash and that it was in compliance with the covenants in its credit agreement. The Company expects to issue fourth quarter guidance of $7.0-$7.5 million in revenue and $2.8 million to $3.2 million in Adjusted EBITDA. Actual reported results may differ from the estimates made here, and it should be noted that these estimates do not include any expenses related to the CEO transition described earlier in this press release.

Forward-Looking Statements

This press release contains, and oral statements made from time to time by our representatives may contain, forward-looking statements based on management’s current expectations and projections, which are intended to qualify for the safe harbor of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements identified by words such as “believe,” “will,” “may,” “might,” “likely,” “expect,” “anticipates,” “intends,” “plans,” “seeks,” “estimates,” “believes,” “continues,” “projects” and similar references to future periods, or by the inclusion of forecasts or projections.  All forward-looking statements are based on current expectations and projections of future events.

These forward-looking statements reflect the current views, models, and assumptions of Galaxy Gaming, and are subject to various risks and uncertainties that cannot be predicted or qualified and could cause actual results in Galaxy Gaming’s performance to differ materially from those expressed or implied by such forward looking statements. These risks and uncertainties include, but are not limited to, the ability of Galaxy Gaming to enter and maintain strategic alliances, product placements or installations, in land based casinos or grow its iGaming business, garner new market share, secure licenses in new jurisdictions or maintain existing licenses, successfully develop or acquire and sell proprietary products, comply with regulations, have its games approved by relevant jurisdictions, and adapt to changes resulting from the COVID-19 pandemic and other factors. All forward-looking statements made herein are expressly qualified in their entirety by these cautionary statements and there can be no assurance that the actual results, events, or developments referenced herein will occur or be realized. Readers are cautioned that all forward-looking statements speak only to the facts and circumstances present as of the date of this press release. Galaxy Gaming expressly disclaims any obligation to update or revise any forward-looking statements, whether because of new information, future events or otherwise.

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Certain statements in this release may constitute forward-looking statements, which involve a number of risks and uncertainties. Galaxy cautions readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information due to a number of factors, including those listed from time to time in reports that Galaxy files with the Securities and Exchange Commission.

About Galaxy Gaming

Headquartered in Las Vegas, Nevada, Galaxy Gaming (galaxygaming.com) develops and distributes innovative proprietary table games, state-of-the-art electronic wagering platforms and enhanced bonusing systems to land-based, riverboat, and cruise ship and casinos worldwide. In addition, through its wholly owned subsidiary, Progressive Games Partners LLC, Galaxy licenses proprietary table games content to the online gaming industry. Connect with Galaxy on Facebook, YouTube and Twitter.

Non-GAAP Financial Information

Adjusted EBITDA includes adjustments to net loss/income to exclude interest, taxes, depreciation, amortization, share based compensation, gain/loss on extinguishment of debt, foreign currency exchange gains/losses, change in estimated fair value of interest rate swap liability and severance and other expenses related to litigation. Adjusted EBITDA is not a measure of performance defined in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). However, Adjusted EBITDA is used by management to evaluate our operating performance. Management believes that disclosure of Adjusted EBITDA allows investors, regulators, and other stakeholders to view our operations in the way management does.   Adjusted EBITDA should not be considered as an alternative to net income or to net cash provided by operating activities as a measure of operating results or of liquidity. Finally, Adjusted EBITDA may not be comparable to similarly titled measures used by other companies.

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