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Ian Cassel and Artem Fokin have a conversation with Todd Cravens, CEO of Galaxy Gaming. This MicroCap Business Breakdowns discussion aired on May 2nd on the MicroCapClub Community. Galaxy Gaming is the largest independent provider of proprietary casino table games in the world. Galaxy currently has an installed base of over 6,000 gaming tables located in over 600 casinos. The company also licenses its IP with iGaming sites worldwide. In 2022, more than 2 billion wagers were placed on Galaxy iGames across 1000 iGaming sites, representing 2% of US Gross Gaming Revenue. Galaxy Gaming trades on the OTC markets under the symbol GLXZ. Website: https://www.galaxygaming.com GLXZ Time Stamps: 00:00 – Intro 04:30 – Todd’s Background 09:35 – Business Overview 27:24 –Competition 31:33 –Unit Economics 34:30 – Customer Retention 37:40 – Upselling a Customer 38:28 – Confidence in Land Based Business Rebounding 40:41 – Land based Growth Drivers 43:23 – iGaming Expansion 45:22 – iGaming Customer Concentration 48:22 – Acquisition Criteria 51:45 – Acquisition Considerations 53:50 – Galaxy A-Team 55:23 – OpEx Buckets 57:06 – Balance Sheet Leverage 58:50 – Refinancing Debt 1:00:20 – Capital Allocation 1:01:40 – Recession Resistant 1:03:45 – Covid Impact 1:04:47 – iGaming Synergies with Land Based 1:06:03 – M&A Opportunities 1:06:43 – Omni Channel Leverage 1:07:56 – Where do you see Galaxy in 5 years? MicroCap Business Breakdowns (MCBB), powered by MicroCapClub, is a monthly program where we invite leaders of unique microcap businesses to have in depth conversations with the MicroCapClub member/investor that knows the business best. In each conversation we look to drill down into the history, business, strategy, vision, and bull/bear case. The MicroCapClub community can tune in live and ask questions. We publicize each episode 2-4 weeks after the live discussion. Join MicroCapClub https://microcapclub.com/join-now/ Twitter: https://twitter.com/MicroCapClub About Ian Cassel Ian Cassel is the founder of MicroCapClub and CIO of IFCM. Twitter: https://twitter.com/iancassel LinkedIn: https://www.linkedin.com/in/iancassel/ IFCM: https://if.capital About Artem Fokin Artem Fokin is the founder and portfolio manager of Caro-Kann Capital LLC. Artem has been a MicroCapClub member since 2016. LinkedIn: https://www.linkedin.com/in/artem-fokin-1a5479/ Caro-Kann Capital: http://caro-kann-capital.com About MicroCapClub MicroCapClub is an exclusive forum for experienced microcap investors focused on microcap companies (sub $500m market cap) trading on United States, Canadian, European, and Australian markets. MicroCapClub was created to be a platform for experienced microcap investors to share and discuss stock ideas. Since 2011, our members have profiled 900+ microcap companies. Investors can join our community by applying to become a member or subscribing to gain instant view only access. MicroCapClub’s mission is to foster the highest quality microcap investor Community, produce Educational content for investors, and promote better Leadership in the microcap arena. For more information: https://microcapclub.com Disclaimer: The purpose of this presentation is for informational and educational purposes only and should not be construed as a recommendation to purchase or sell any security. MicroCapClub is not a registered investment advisor. MicroCapClub, its partners, members, subscribers, and affiliates may or may not hold positions in one or more of the securities mentioned on this program and may trade in such securities at any time. Do your own due diligence and seek counsel from a registered investment advisor before trading in any security.
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