Galaxy Gaming pursues recovery, helped by lawsuit conclusion
Galaxy Gaming, a developer and manufacturer of table games and casino systems in Las Vegas, has entered into an agreement with Robert Saucier and Triangulum Partners. It posted net profit in the third quarter, reversing a one-year loss. Cash flow and income have reached new heights.
Galaxy Gaming on the mend
Galaxy filed a 10-Q with the Securities and Exchange Commission on November 15. He said he earned $ 792,520, or $ 0.04 per share, for the third quarter of the year. This contrasts with a net loss of $ 0.07 per share ($ 1.3 million) a year earlier.
Adjusted earnings before interest, taxes, depreciation and amortization, a cash flow measure that excludes one-time costs, fell from $ 36,000 to $ 2.5 million. Revenue more than quadrupled from $ 1.2 million to $ 5.3 million.
Galaxy CFO Harry Hagerty said Galaxy’s resumption of physical activity and online strength has boosted Galaxy’s cash flow. He hopes this trend will continue into the new year.
Todd Cravens, CEO of the company, noted that Galaxy’s increases in the third quarter were due to the shutdown of a “significant portion” of land-based UK customers due to the pandemic. He added, “We expect our land-based businesses to continue to recover from COVID shutdowns and our online business to continue to grow in Europe and North America. “
The trial is finally coming to an end
Perhaps even more important than the profits was the announcement that Galaxy founder Robert Saucier and Galaxy had settled a legal dispute that had lasted more than two years.
Galaxy said on November 7 that it would pay $ 39.1 million to Saucier and Triangulum, plus accrued interest at 2.2% per annum from May 6 to December 31. The latter marks the deadline for raising the necessary funds and paying the settlements.
Galaxy and Triangulum have said they will not initiate a dispute until the settlement is paid. Saucier, Triangulum and Galaxy will not compete for funds for five years after the payment date.
Galaxy, which entered into a term credit agreement with Fortress Credit Corp. on November 15, announced that it will partially use the proceeds to pay Triangulum Partners and Saucier.
The loan is scheduled to mature on November 15, 2026. It requires quarterly amortization payments in the amount of $ 150,000 and an annual sweep to cover 50% of excess cash flow. Galaxy board chairman Mark Lipparelli called the settlement “important”.
He added: “Our board believes that this is an appropriate settlement of the dispute between us and Mr. Saucier and his entity,” he said. “Additionally, we are delighted to see continued progress in the company’s bottom line as our casino and online gaming partners emerge from closures associated with the COVID pandemic. “
Galaxy purchased the 23.3 million common shares held by Triangulum Partners on May 7, 2019. Saucier controls this company. Before the takeover, Saucier was the majority shareholder of Galaxy.
Saucier resigned from the company without explanation in November 2018. In September 2017, he resigned as CEO of Galaxy after nearly losing his application to the Nevada Gaming Control Board (NGCB) for a distribution license of games.