Galaxy Gaming (GLXZ) has reported 585.82 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $0.82 million in the quarter, compared with $0.12 million for the same period last year.
Revenue during the quarter grew 15.87 percent to $3.19 million from $2.75 million in the previous year period. Gross margin for the quarter contracted 1 basis points over the previous year period to 99.16 percent. Total expenses were 67.46 percent of quarterly revenues, down from 83.33 percent for the same period last year. This has led to an improvement of 1587 basis points in operating margin to 32.54 percent.
Operating income for the quarter was $1.04 million, compared with $0.46 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $1.50 million compared with $0.89 million in the prior year period. At the same time, adjusted EBITDA margin improved 1451 basis points in the quarter to 46.97 percent from 32.46 percent in the last year period.
The Company’s chief executive officer Robert B. Saucier added, "When reporting our results, it’s always a pleasure to simply say, ‘the numbers speak for themselves.' But beyond our Company’s fiscal performance, what excites me most are the investments we are making to stimulate a compelling future. The majority of our increased cash flow is being re-invested to develop new innovative products and to escalate our sales and marketing activities. These considerable investments should beneficially increase revenues, profits and cash flow commencing in 2017 and continuing into at least 2018."
Operating cash flow improves significantlyGalaxy Gaming has generated cash of $3.32 million from operating activities during the nine month period, up 44.30 percent or $1.02 million, when compared with the last year period. The company has spent $0.04 million cash to meet investing activities during the nine month period as against cash outgo of $0.04 million in the last year period.
The company has spent $1.99 million cash to carry out financing activities during the nine month period as against cash outgo of $2.71 million in the last year period.
Cash and cash equivalents stood at $1.82 million as on Sep. 30, 2016, up 1,670.01 percent or $1.72 million from $0.10 million on Sep. 30, 2015.
Working capital remains negative
Working capital of Galaxy Gaming was negative $0.17 million on Sep. 30, 2016 compared with negative $4.37 million on Sep. 30, 2015. Current ratio was at 0.96 as on Sep. 30, 2016, up from 0.34 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 1466 days for the quarter from 2663 days for the last year period. Days sales outstanding went down to 55 days for the quarter compared with 58 days for the same period last year.
Days inventory outstanding has decreased to 833 days for the quarter compared with 938 days for the previous year period. At the same time, days payable outstanding went down to 2354 days for the quarter from 3659 for the same period last year.
Debt comes downGalaxy Gaming has recorded a decline in total debt over the last one year. It stood at $9.99 million as on Sep. 30, 2016, down 21.21 percent or $2.69 million from $12.68 million on Sep. 30, 2015. Total debt was 54.25 percent of total assets as on Sep. 30, 2016, compared with 71.95 percent on Sep. 30, 2015. Debt to equity ratio was at 2.58 as on Sep. 30, 2016, down from 5.53 as on Sep. 30, 2015. Interest coverage ratio improved to 4.56 for the quarter from 1.85 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
