galaxy gaming (glxz) q1 2012 investor presentation

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FIRST QUARTER 2012

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Galaxy Gaming (GLXZ) Q1 2012 Investor Presentation.

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Page 1: Galaxy Gaming (GLXZ) Q1 2012 Investor Presentation

FIRST QUARTER 2012

Page 2: Galaxy Gaming (GLXZ) Q1 2012 Investor Presentation

Safe Harbor Statement: The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by us or on our behalf. Except for the historical information, this offering contains various forward-looking statements which represent our expectations or beliefs concerning future events, including the future levels of cash flow from operations. Management believes that all statements that express expectations and projections with respect to future matters; our ability to negotiate contracts having favorable terms; and the availability of capital resources; are forward-looking statements within the meaning of the Private Securities Litigation Reform Act. We caution that these forward-looking statements involve a number of risks and uncertainties and are subject to many variables which could impact our financial performance. These statements are made on the basis of management’s views and assumptions, as of the time the statements are made, regarding future events and business performance. There can be no assurance, however, that management’s expectations will necessarily come to pass. We will also be discussing certain financial measures such as adjusted EBITDA, which represents a non-GAAP financial measure.

Page 3: Galaxy Gaming (GLXZ) Q1 2012 Investor Presentation

($500)

($250)

$0

$250

$500

$750

$1,000

$1,250

$1,500

$1,750

$781 $752

($35) ($66)

$1,442$1,383

$455

($10)

$1,646 $1,624

$461

($171)

Gross Revenue Gross Profit EBITDA Net Profit

Q1 2011 / Q4 2011 / Q1 2012

Page 4: Galaxy Gaming (GLXZ) Q1 2012 Investor Presentation

Oct-11 YE 2012 YE 2013 YE 2014 YE 2015 YE 2016250

500

750

1,000

1,250

272

408

571

771

964

1,157

21+3 Placements - US

Page 5: Galaxy Gaming (GLXZ) Q1 2012 Investor Presentation

Oct-11 YE 2012 YE 2013 YE 2014 YE 2015 YE 2016250

500

750

1,000

1,250

272

408

571

771

964

1,157

21+3 Placements - US

288

699

MAY 15

END OF Q1

632

Page 6: Galaxy Gaming (GLXZ) Q1 2012 Investor Presentation

Inter-Casino Jackpot Network

Proprietary Games

Enhanced Systems

E-Tables

Page 7: Galaxy Gaming (GLXZ) Q1 2012 Investor Presentation

Performance Metrics

Q1-2011 Q4-2011 Q1-2012Proprietary Table Games

Premium Games $297,967 $573,605 $573,364Side Bets $379,358 $785,177 $901,024

Sub-Total $677,325 $1,358,782 $1,474,388

Enhanced Table Systems Bonus Jackpot System $85,299 $63,731 $65,144Inter-Casino Jackpot System $ 6,108 $2,634MEGA-Share $324 $3,084

Sub-Total $85,299 $70,163 $70,862

e-Tables $78,875 $83,070 TOTAL $762,624 $1,507,820 $1,628,320

Gross Revenue

Page 8: Galaxy Gaming (GLXZ) Q1 2012 Investor Presentation

Performance MetricsUnits In Service

Q1-2011 Q4-2011 Q1-2012Proprietary Table Games

Premium Games 303 401 440Side Bets 1,729 2,182 2,501

Sub-Total 2,032 2,583 2,941

Enhanced Table Systems Bonus Jackpot System 106 106 100Inter-Casino Jackpot System 9 3MEGA-Share 11 11

Sub-Total 106 126 114

e-Tables (Seats) 45 40 TOTAL 2,138 2,754 3,095

Page 9: Galaxy Gaming (GLXZ) Q1 2012 Investor Presentation

Performance MetricsAverage Quarterly Revenue Q1-2011 Q4-2011 Q1-2012Proprietary Table Games

Premium Games $983 $1,430 $1,303 Side Bets $219 $360 $360

Sub-Total $333 $526 $501

Enhanced Table Systems Bonus Jackpot System $805 $601 $651 Inter-Casino Jackpot System $679 $878 MEGA-Share $29 $280

Sub-Total $805 $557 $622

e-Tables (per Seat) $1,753 $2,077 TOTAL $357 $555 $532

Page 10: Galaxy Gaming (GLXZ) Q1 2012 Investor Presentation

$2

$3

$4

$5

$6

$7

$8

$2.07

$2.77 $3.06$3.69

$7.20

Revenues

2008 2009 2010 2011 2012 (Est.)

Page 11: Galaxy Gaming (GLXZ) Q1 2012 Investor Presentation

90%

91%

92%

93%

94%

95%

96%

97%

98%

99%

100%

94.5%

92.5%

95.7%

97.4%

98.7%

Gross Margins

2008 2009 2010 2011 Q1 - 2012

Page 12: Galaxy Gaming (GLXZ) Q1 2012 Investor Presentation

($500)

$0

$500

$1,000

$1,500

$2,000

$2,500

($388)

($170)$2 $84

$2,050

EBITDA

2008 2009 2010 2011 2012 (Est.)

Page 13: Galaxy Gaming (GLXZ) Q1 2012 Investor Presentation

($750)

($500)

($250)

$0

$250

($504) ($448)

($136)

($473)

$0

Net Profit

2008 2009 2010 2011 2012 (Est.)

Page 14: Galaxy Gaming (GLXZ) Q1 2012 Investor Presentation

Company Q1 Revenue

Growth Trend EBITDA Net Profit

(Loss)Market

CapPrice /

RevenuePrice / EBITDA

Price / Earnings

(GLXZ)

$1.6M 111% $0.5M ($0.17M) $11M 1.5 5.5 N/A

(SHFL)

$56.1M 28% $18.1M $7.7M $829M 3.7 11.5 24.4

(DEQ.V)

$1.2M 20% ($0.2M) ($0.94M) $25M 5.2 N/A N/A

Gaming Company Comparison

Page 15: Galaxy Gaming (GLXZ) Q1 2012 Investor Presentation

Q & A