Galaxy Gaming reports record financial results

Financial Highlights

Q-4 2013 vs. Q-4 2012

• Revenue of USD2,242K increased 17% or USD329K from USD1,913K.

• EBITDAS of USD1,036K increased 28% or USD229K from USD807K.

• Pre-tax profit of USD374K increased 44% or USD114K from USD260K.

• Net income of USD395K decreased 34% or USD207 from USD602K.

Q-4 2013 vs. Q-3 2013

• Revenue of USD2,242K increased 5% or USD106K from USD2,136K.

• EBITDAS of USD1,036K increased 30% or USD238K from USD798K.

• Pre-tax profit of USD375K increased USD393K from a loss of (USD19K).

• Net income of USD395K increased USD416K, reversing a loss of (USD21K).

12 Months 2013 vs. 12 Months 2012

• Revenue of USD8,218K increased 14% or USD996K from USD7,222K.

• EBITDAS of USD3,434K increased 21% or USD587K from USD2,847K.

• Pre-tax profit of USD633K increased 126% or USD353K from USD280K.

• Net income of USD563K decreased 9% or USD59K from USD622K.

Gary A. Vecchiarelli, Galaxy's CFO stated, "2013 is more than just another record-breaking year for our company and our success isn't just measured by an increase for nine consecutive quarters. The combination of our high-margin recurring revenue business model and our strategy is translating into profitable financial performance as indicated by increases across the board. Of particular note is the direct contribution of increased revenue to EBITDAS. For example, for every dollar of added revenue in 2013, almost 60 cents went directly to EBITDAS. We simply couldn't be more energized and excited about our prospects and potential in 2014 and beyond."

Robert Saucier, Galaxy Gaming's CEO expanded on Vecchiarelli's comments pertaining to the Company's performance. "The positive, record-setting results we posted in 2013 have a very special meaning to me. Those who have followed our company are aware of some of the highly publicized issues we faced in late 2012 and 2013. Throughout these challenges, we took the high road and maintained our integrity and focus. Congratulations are in order to all of our team members who fought through these distractions, keeping their morale at high levels and sticking to the mission of growing our company. The result was that we posted our best year ever. Surpassing USD1,000,000 in EBITDAS for the latest quarter was also an important milestone, but not as important as the tenacity and determination demonstrated by Galaxy Gaming's great group of dedicated employees. I could not be more proud of them."

Focusing on 2014, Saucier continued, "We know that 'success begets success' and coming off of the heels of a great 2013, we are all excited about the prospects for 2014. Most importantly, we have successfully resolved all but one of the diversion items we encountered in the last two years and expect to have that last one also successfully resolved this year. Without these distractions and the expenses associated with them, I can confidently predict that we are on track to make 2014 another record year."