Galaxy Gaming announces leadership change

(PRESS RELEASE) -- Galaxy Gaming, Inc., a developer and distributor of casino table games and enhanced systems for land-based casinos and iGaming, announced today that its Board of Directors has appointed a new President and Chief Executive Officer of the Company. The Company’s Board of Directors has appointed Matt Reback, who will join Galaxy on 13 November 2023.

“We are excited to welcome Matt as the Company’s new President and CEO. The Board carefully considered this change, examined multiple candidates, and ultimately believed it was the right decision to bring a new perspective into the Company as we embark on our next phase of growth,” stated Mark Lipparelli, Chairman of Galaxy’s Board of Directors. “Matt brings to Galaxy a combination of 20 years of leadership skills acquired in the gaming industry from both operator and technology companies. On a positive note, we are making this change with a solid foundation intact, and we are well-positioned going into the 2024 fiscal year.”

“I am looking forward to joining the Galaxy team and continuing what has been a great story in the gaming industry,” stated Matt Reback. “I intend to quickly get up to speed and make sure our 2023 year-end goals and 2024 plans remain on-track, while also taking a fresh look at our opportunities. There is a team of talented people at Galaxy who have demonstrated their ability to compete effectively against companies with more resources as well as their success forming strong industry partnerships. I expect that one of my goals with the Board will be to build on those successes.”

Prior to accepting this role, Mr. Reback served as the founder and President of Bravery Gaming. Prior thereto Mr. Reback held senior management positions in product management, sales, marketing and operations with AGS, Konami Gaming, Red Rock Casinos (formerly Station Casinos) and Caesars Entertainment. Mr. Reback is a graduate of UCLA and University of San Diego School of Law.

Lipparelli added, “We are appreciative of Todd Cravens’ material contributions to the development of Galaxy over the past six years, including navigating successfully the difficult pandemic period. We wish him well in his next endeavor.”

The Company intends to work through a brief transition with Mr. Cravens and expects Harry Hagerty to serve as an interim President and Chief Executive Officer should such a need arise.

The Company expects to release third quarter results on Monday, November 13. It currently expects to report Revenue of $6.1 million and Adjusted EBITDA of $1.5 million for the quarter and Revenue of $21.1 million and Adjusted EBITDA of $7.8 million for the nine months ended September 30, 2023. In the third quarter, revenues from perpetual license sales were approximately $1 million lower than in the first and second quarters of 2023. In the third quarter, the Company significantly increased its allowance for doubtful accounts, principally as a result of financial difficulties at a single customer, and it continued to incur significant legal expenses related to intellectual property registrations around the world. The Company expects to report that, at September 30, 2023, it had $58.7 million in debt and $15.9 million in cash and that it was in compliance with the covenants in its credit agreement. The Company expects to issue fourth quarter guidance of $7.0-$7.5 million in revenue and $2.8 million to $3.2 million in Adjusted EBITDA. Actual reported results may differ from the estimates made here, and it should be noted that these estimates do not include any expenses related to the CEO transition described earlier in this press release.