q4 2012 earnings call v2 gf

20
2012 EARNINGS CALL Robert Saucier, CEO Gary Vecchiarelli, CFO

Upload: galaxy-gaming-inc

Post on 20-Jun-2015

278 views

Category:

Documents


1 download

TRANSCRIPT

Page 1: Q4 2012 earnings call v2 gf

2012 EARNINGS CALL

Robert Saucier, CEOGary Vecchiarelli, CFO

Page 2: Q4 2012 earnings call v2 gf

Financial Results

Page 3: Q4 2012 earnings call v2 gf

Se-ries1

$0

$400

$800

$1,200

$1,600

$2,000

754 736 806 783 781 749 734

1,421

1,646 1,790

1,874 1,913

Quarterly Revenues(in thousands)

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q42010 2011 2012

Page 4: Q4 2012 earnings call v2 gf

Se-ries1

$0

$400

$800

$1,200

$1,600

$2,000

754 736 806 783 781

749 734

1,421 1,646

1,790 1,874 1,913

686 602 606748 723

802 827

846

1,103 1,033 995 983

Revenues vs. SG&A Expenses Revenues SG&A

(in thousands)

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q42010 2011 2012

Page 5: Q4 2012 earnings call v2 gf

Se-ries1

($250)

$0

$250

$500

$750

$1,000

(67)

60 80

(54) (27)(130) (184)

488 541

690

778 839

Quarterly EBITDAS (Non-GAAP)(in thousands)

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q42010 2011 2012

Page 6: Q4 2012 earnings call v2 gf

Series1

($250)

($100)

$50

$200

$350

$500

$650

(100)

21 44

(101)

(66)

(176) (221)

(10)

(171)

62 129

602

Quarterly Net Income (Loss)

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q42010 2011 2012

(in thousands)

Page 7: Q4 2012 earnings call v2 gf

($500)

($400)

($300)

($200)

($100)

$0

$100 Annual – 2011 vs 2012 Budget

Gross EBITDAS NetRevenues Income (Loss)

(in thousands)

Page 8: Q4 2012 earnings call v2 gf

($500)

$500

$1,500

$2,500

$3,500

$4,500

$5,500

$6,500

$7,500 7,223

2,847

622

Annual – 2011 vs 2012 Budget vs 2012 Actual(in thousands)

Gross EBITDAS NetRevenues Income (Loss)

Page 9: Q4 2012 earnings call v2 gf

Performance Metrics

As of December 31,2011 2012

Units in Service

Average QuarterlyRevenue

Units in Service

Average Quarterly Revenue

Proprietary Table Games

Premium Games 401 $889 417 $1,444

Side Bets 2,182 $219 2,638 $391

Sub-Total 2,583 $324 3,055 $535

Enhanced Table Systems

Bonus Jackpot System 115 $679 85 $813

MEGA-Share 11 $29 22 $224

Sub-Total 126 $621 107 $692

e-Tables (Seats) 35 $1,560 50 $1,561

TOTAL 2,744 $333 3,212 $556

Page 10: Q4 2012 earnings call v2 gf

Organic Growth

Annual Run Rate of Recurring Revenues:

At December 31, 20111 $5.7mAt December 31, 20122 $7.5m

Increase year-over-year $1.8m

Organic growth 31.6%

1Based on Q4 2011 revenues of $1,429k2Based on Q4 2012 revenues of $1,884k

Page 11: Q4 2012 earnings call v2 gf

Long-Term Debt

• Paid down over $1.4m in 2012

• Expect to pay down an additional $2.1m in 2013

• At 12/31/13 balance will be almost $17m

• Annual Run Rate from PTG Assets = $3.7m

• Favorable terms & interest rates going forward

Page 12: Q4 2012 earnings call v2 gf

The Transformation≤ 2011• Product Introductions / Deployment – Static• Revenues – Low Growth / Flat• Net Losses• Negative Cash Flow

≥ 2012• Increased Product Introductions / Deployment• Revenues – Increasing• Net Income• Positive Cash Flow

Page 13: Q4 2012 earnings call v2 gf

Growth InitiativesMarket Expansion• Louisiana

• Maryland

• New Midwest State

Page 14: Q4 2012 earnings call v2 gf

Growth InitiativesIncreased Foreign Market Share• United Kingdom

• Ireland

• Europe

Page 15: Q4 2012 earnings call v2 gf

Growth InitiativesLeverage “Bonus Jackpot System”• “MEGA-Share” & “Share The Wealth”

• Inter Casino jackpot System / Galaxy Jackpot Promotions

Page 16: Q4 2012 earnings call v2 gf

Growth InitiativesProduct Development and Deployment• Emperor’s Challenge Upgrade

• New “Texas Hold’em” Game

• “High Card Flush”

Page 17: Q4 2012 earnings call v2 gf
Page 18: Q4 2012 earnings call v2 gf

Investor Visibility and Liquidity• Updated Galaxy Branding

• Upgrade Web Presence Investor Information on Web Site Social Media

• Galaxy Gaming Mobile App iPhone / iPad: “Galaxy Gaming” Android: “Galaxy Gaming Finance”

• Expand Presence at Investor Conferences

• Merriman Capital Advisors

Page 19: Q4 2012 earnings call v2 gf

Closing RemarksRobert Saucier, CEO

Page 20: Q4 2012 earnings call v2 gf

Q & A