Q4 2012 earnings call v2 gf
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Transcript of Q4 2012 earnings call v2 gf
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2012 EARNINGS CALL
Robert Saucier, CEOGary Vecchiarelli, CFO
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Financial Results
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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
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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
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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
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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)
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($500)
($400)
($300)
($200)
($100)
$0
$100 Annual – 2011 vs 2012 Budget
Gross EBITDAS NetRevenues Income (Loss)
(in thousands)
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($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)
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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
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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
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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
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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
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Growth InitiativesMarket Expansion• Louisiana
• Maryland
• New Midwest State
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Growth InitiativesIncreased Foreign Market Share• United Kingdom
• Ireland
• Europe
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Growth InitiativesLeverage “Bonus Jackpot System”• “MEGA-Share” & “Share The Wealth”
• Inter Casino jackpot System / Galaxy Jackpot Promotions
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Growth InitiativesProduct Development and Deployment• Emperor’s Challenge Upgrade
• New “Texas Hold’em” Game
• “High Card Flush”
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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
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Closing RemarksRobert Saucier, CEO
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Q & A