With casino shutdowns set to have far-reaching implications in a multitude of Q2 surveys, Las Vegas based Galaxy Gaming reported financial declines for the second quarter of the year, as predicted.
This follows the developer and distributor of casino table games and enhanced systems that previously expressed high yearly hopes, supplemented by California licence approval and the acquisition of $12,425 m Progressive Games Partners.
Todd Cravens, Galaxy’s president and CEO said: “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.”
For the period, sales fell 15.9 percent to $4.49 million (2019: $5.34 million), adjusted EBITDA fell 25.7 percent from $2.02 million to $1.5 million and net income finished at $117,000, reflecting a 74.7 percent rise from $537,000.
Harry Hagerty, Galaxy’s CFO said: “We were fortunate to have a significant amount of cash when the shutdowns started. In addition, we drew down the full $1m 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 $835,000 in financing under the SBA’s PPP program.”