Galaxy Gaming (GLXZ) 2011 Earning Conference Call
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The document provides an earnings review for 2011 that includes the following key points: 1. Financial highlights show increased gross revenue, gross profit, and EBITDA for 2011 compared to 2010, but a net loss. Q4 2011 also saw increases over Q4 2010. 2. Operational highlights include acquisitions, geographic expansion, new products from research and development, and other accomplishments like regulatory approvals. 3. Expectations for 2012 include new product releases from research and development, increased revenue opportunities from expansion, potential acquisitions, and other initiatives.
Galaxy Gaming (GLXZ) 2011 Earning Conference Call
- 2. Today’s Agenda… 1. Financial Highlights 2. Operational Highlights 3. What’s in Store 4. Q&A Safe Harbor Statement: The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by us or on our behalf. Except for the historical information, this offering contains various forward-looking statements which represent our expectations or beliefs concerning future events, including the future levels of cash flow from operations. Management believes that all statements that express expectations and projections with respect to future matters; our ability to negotiate contracts having favorable terms; and the availability of capital resources; are forward-looking statements within the meaning of the Private Securities Litigation Reform Act. We caution that these forward-looking statements involve a number of risks and uncertainties and are subject to many variables which could impact our financial performance. These statements are made on the basis of management’s views and assumptions, as of the time the statements are made, regarding future events and business performance. There can be no assurance, however, that management’s expectations will necessarily come to pass. We will also be discussing certain financial measures such as adjusted EBITDA, which represents a non-GAAP financial measure.
- 4. 2011 2011 vs. 2010 2010 $4,000 $3,685 $3,586 $3,500 $3,055 $2,919 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $84 $2 $0 ($136) ($500) ($473) ($1,000) Gross Revenue Gross Profit EBITDA Net Profit
- 5. Q-4 2011 vs. Q-4 2010 2011 2010 $1,442 $1,500 $1,383 $1,250 $1,000 $783 $735 $750 $455 $500 $250 $0 ($58) ($10) ($101) ($250) ($500) Gross Revenue Gross Profit EBITDA Net Profit
- 6. Q-4 2011 vs. Q-3 2011 Q-4 Q-3 $1,442 $1,500 $1,383 $1,250 $1,000 $734 $717 $750 $455 $500 $250 $0 ($10) ($250) ($191) ($221) ($500) Gross Revenue Gross Profit EBITDA Net Profit
- 8. Gross Margins 100% 2008 2009 2010 2011 2012 (Est.) 99% 97.4% 97.4% 98% 97% 95.7% 96% 95% 94.5% 94% 92.5% 93% 92% 91% 90%
- 9. EBITDA 2008 2009 2010 2011 2012 (Est.) $2,500 $2,050 $2,000 $1,500 $1,000 $500 $84 $2 $0 ($170) ($388) ($500)
- 10. Net Profit 2008 2009 2010 2011 2012 (Est.) $250 $0 $0 ($136) ($250) ($448) ($504) ($500) ($473) ($750)
- 12. E-Tables Enhanced Proprietary Systems Games Inter-Casino Jackpot Network
- 13. 2011 Accomplishments Acquisitions: • TableMAX • Prime Table Games US & UK • Lakes Entertainment
- 14. 2011 Accomplishments Geographic Expansion: • Idaho • Michigan • Europe • British Isles • Caribbean
- 15. 2011 Accomplishments Research & Development: • Bonus Jackpot System – Andromeda 3 • Inter-Casino Jackpot System • Deployed MEGA-Share • Several New Game Titles
- 16. 2011 Accomplishments Other: • Best Response Ever at G2E • Reached 2,500 Table Milestone • Reached 500 Table Milestone • Settled Sherron Litigation • Expanded TableMAX Installations
- 17. What’s in Store
- 18. OCT 21+3 Placements - US 2011 YE 2012 YE 2013 YE 2014 YE 2015 YE 2016 1,250 1,157 964 1,000 771 750 571 500 408 272 250
- 19. OCT 21+3 Placements - US 2011 YE 2012 YE 2013 YE 2014 YE 2015 YE 2016 1,250 1,157 964 1,000 771 750 End of Q-1 632 571 500 408 288 272 250
- 20. 2012 Expectations Research & Development: • Andromeda 4 Release • Triangulum Series Pre-engineering • TableMAX – Model “E” Release • Additional Game Releases
- 21. 2012 Expectations Revenue Opportunities: • Expanded Jurisdictions • Increased Sales Focus on Existing Products • TableMAX – Model “E” • Reduced Removals • Internet and Other Licensing Revenue
- 22. 2012 Expectations Other: • Possible Acquisitions • Brand Licensing • New Web Site • Shareholder Liquidity Program
- 23. Q&A