- Non-GAAP Adjusted EBITDA of $67,322 for Q4 FY2021
- Conference Call Scheduled for Today at 11:00 am ET
TOCCOA, GA / ACCESSWIRE / September 17, 2021 / Galaxy Next Generation, Inc . (OTCQB:GAXY) , a provider of interactive learning technology solutions, today announced the Company's operating and financial results for the three months and twelve months for its fiscal year ended June 30, 2021.
Summary Snapshot of Quarter Ended June 30, 2021 (Year-over-Year and Quarter-over-Quarter):
| Q4 2021 (6/30/21) | Q4 2020 (6/30/20) | Q3 2021 (3/31/21) | ||||||||||
Cash on Hand | $ | 541,591 | $ | 412,391 | $ | 742,382 | ||||||
Accounts Receivable | $ | 866,091 | $ | 798,162 | $ | 1,302,764 | ||||||
Inventory | $ | 3,268,667 | $ | 738,091 | $ | 2,207,885 | ||||||
Total Assets | $ | 7,325,197 | $ | 4,498,010 | $ | 6,662,041 | ||||||
Revenue | $ | 1,019,142 | $ | 469,179 | $ | 777,457 | ||||||
Gross Profit | $ | 602,771 | $ | 449,451 | $ | 420,726 | ||||||
Operating Loss | $ | (139,653 | ) | $ | (2,159,446 | ) | $ | (1,276,684 | ) | |||
*Non-GAAP ADJUSTED EBITDA: $67,322
Key Business Highlights for Three Months Ended June 30, 2021 and Subsequent:
- Introduced "One-Touch Solution" to secure schools
- Partnered with HavenLock to expand product offering for school safety and security
- Awarded purchase order from Pearl Public School District in Mississippi
- Added new reseller to accelerate sales in west territory
- Gained approved vendor status for Region 18 from Midland, Texas
- Awarded four catalog discount bids in the state of Texas, including Northwest Independent School District of Dallas/Fort Worth, Texas
- Awarded bid for High School for Health Professions from South Carolina
- Partnered with Aisys Consulting to scale business in Texas
- Received catalog bid award from Richland County School District Two of Columbia, South Carolina
- Awarded catalog discount bid by Charlotte County Public Schools
- Received additional order under its supply agreement from an OEM customer
OEM Customer for Audio Products
Initially signed in July 2020, as a one-year supplier agreement to manufacture and sell audio products. The Company supplied 2,869 units under this agreement during the period through June 30, 2021. The agreement was extended in July 2021 for a one-year term. The agreement can be further extended for one additional year.
Management Commentary
Gary LeCroy, Galaxy's Chief Executive Officer, stated, "We are extremely pleased with our fourth quarter and fiscal year ended June 30, 2021 results, as our team executed in surpassing our own internal forecasts, with $3.8 million in annual revenue and $5.7 million in annual new orders. The past three months were specifically very rewarding and demonstrate our scalability, as we reached a major milestone in generating positive Non-GAAP Adjusted EBITDA for the quarter. All of the announced contracts, awarded catalog bids, new partnerships and new products have enabled us to accelerate our revenue growth and achieve profitability."
Galaxy's Chief Financial Officer, Magen McGahee, commented, "All of our key performance indicators continue to trend in the right direction. Our balance sheet has strengthened with increases in cash and assets and decreases in stockholders' deficit and liabilities. Not only did our revenue increase by 117% for the quarter and 63% for the year, but our backlog and orders remain strong."
McGahee, continued, "We believe that the increase in school budgets will continue to have the biggest impact on revenues in the upcoming reporting periods. We look to continue to successfully build upon our solid year, with a diverse portfolio of products, led by interactive panels, Our Bell, Paging, and Intercom product line, G2 communication software(s) and our related OEM partnerships. We are well-positioned across the country with our corporate, satellite, warehouse and office space spread out from Toccoa, Georgia to Broomfield, Colorado to Jacksonville, Florida to Peoria, Arizona."
Shareholder Update Conference Call
Date: Friday, September 17, 2021
Time: 11:00 AM ET
Dial-in: 1-888-506-0062 (Domestic)
1-973-528-0011 (International)
Entry Code: 598271
Webcast: https://www.webcaster4.com/Webcast/Page/2559/42836
| For those unable to participate during the live broadcast, a replay of the call will also be available through September 17, 2022 by dialing 1-877-481-4010 (domestic) and 1-919-882-2331 (international) and referencing the replay pin number: 42836. |
Financial Results for the Three Months Ended June 30, 2021 :
- Revenue for the three months ended June 30, 2021 was $1.0 million, an increase of $0.5 million or 117%, as compared to $0.5 million for the three months ended June 30, 2020. Additionally, deferred revenue amounted to $0.5 million as of June 30, 2021.
- Gross profit for the three months ended June 30, 2021 was $0.6 million, an increase of $0.2 million or 34%, as compared to $0.4 million for the three months ended June 30, 2020. The resulting gross margin was 59% for the three months ended June 30, 2021.
- Operating loss for the three months ended June 30, 2021 was $0.1 million, a decrease of $2.0 million, or 94%, compared to $2.1 million for the three months ended June 30, 2020.
- Net loss for the three months ended June 30, 2021 was $0.6 million, a decrease of $3.3 million, or 84%, compared to $3.9 million for the three months ended June 30, 2020. The resulting loss per share for the three months ended June 30, 2021 was ($0.00) per diluted share, compared to ($0.01) per diluted share for the three months ended June 30, 2020.
- Of note, there were no non-cash contributing factors for the operating loss incurred for the three months ended June 30, 2020.
- Cash balance of $0.5 million at June 30, 2021.
Noncash contributing factors for the net loss incurred for the quarters ending June 30, 2021 and 2020 is as follows:
a) $0 and $31,699 represent consulting fees and stock compensation and stock issued for services for the quarters ended June 30, 2021 and 2020, respectively;
b) amortization of intangible assets and capitalized development costs for the quarters ended June 30, 2021 and 2020 totaling $206,975 and $88,416, respectively.
Financial Results for the Twelve Months Ended June 30, 2021 :
Revenue for the twelve months ended June 30, 2021 was $3.8 million, an increase of $1.5 million or 63%, as compared to $2.3 million for the twelve months ended June 30, 2020. Revenues increased during the year ended June 30, 2021 due to the increases in the customer base for our products, partially as a result of the pandemic, as well as additional revenues received through our OEM channel.
Gross profit for the twelve months ended June 30, 2021 was $1.7 million, an increase of $0.5 million or 43%, as compared to $1.2 million for the twelve months ended June 30, 2020. The resulting gross margin was 43% for the twelve months ended June 30, 2021, compared to 51% for the twelve months ended June 30, 2020. Gross margin decreased slightly due to amortization of capitalized development costs.
Operating loss for the twelve months ended June 30, 2021 was $6.2 million, a decrease of $3.6 million, or 37%, compared to $9.7 million for the twelve months ended June 30, 2020. Operating loss for the twelve months ended June 30, 2020 included $2.8 million of non-cash stock-based compensation.
Net loss for the twelve months ended June 30, 2021 was $24.4 million, an increase of $10.4 million, or 74%, compared to $14.0 million for the twelve months ended June 30, 2020. The resulting loss per share for the twelve months ended June 30, 2021 was ($0.01) per diluted share, compared to ($0.147) per diluted share for the twelve months ended June 30, 2020.
Noncash contributing factors for the net loss incurred for the years ended June 30, 2021 and 2020 is as follows:
a) $2,778,550 and $2,087,425 represent consulting fees and stock compensation and stock issued for services for the years ended June 30, 2021 and 2020, respectively;
b) amortization of intangible assets and capitalized development costs for the years ended June 30, 2021 and 2020 totaling $474,635 and $605,530, respectively; and
c) impairment charges taken of $2,000,287 for the year ended June 30, 2020.
Use of Non-GAAP Financial Measures
To supplement the Company's financial statements presented on a GAAP basis, Galaxy provides Adjusted EBITDA as a supplemental measure of its performance.
To provide investors with additional insight and allow for a more comprehensive understanding of the information used by management in its financial and decision-making surrounding pro forma operations, Galaxy supplements its consolidated financial statements presented on a basis consistent with U.S. generally accepted accounting principles, or GAAP, Adjusted EBITDA as a non-GAAP financial measures of earnings. Adjusted EBITDA represents EBITDA plus stock-based compensation and change in fair value of derivative liabilities. Galaxy management uses Adjusted EBITDA as financial measures to evaluate the profitability and efficiency of the business model. The Company uses these non-GAAP financial measures to assess the strength of the underlying operations of the business. These adjustments, and the non-GAAP financial measures that are derived from them, provide supplemental information to analyze its operations between periods and over time. Galaxy finds this especially useful when reviewing pro forma results of operations, which include large non-cash amortizations of intangible assets from acquisitions and stock-based compensation. Investors should consider its non-GAAP financial measures in addition to, and not as a substitute for, financial measures prepared in accordance with GAAP.
About Galaxy Next Generation, Inc.
Galaxy Next Generation (OTCQB:GAXY) is a provider of interactive learning technology solutions that allows the presenter and participant to engage in a fully collaborative instructional environment. Galaxy's products include Galaxy's own private-label interactive touch screen panel as well as numerous other national and international branded peripheral and communication devices. Galaxy's distribution channel consists of 22+ resellers across the U.S. who primarily sell the Company's products within the commercial and educational market. Galaxy does not control where resellers focus their resell efforts, although generally, the K-12 education market is the largest customer base for Galaxy products - comprising nearly 90% of Galaxy's sales.
For additional information, please visit our website at: www.galaxynext.us
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are based on the current plans and expectations of management and are subject to a number of uncertainties and risks that could significantly affect the company's current plans and expectations, as well as future results of operations and financial condition. A more extensive listing of risks and factors that may affect the company's business prospects and cause actual results to differ materially from those described in the forward-looking statements can be found in the reports and other documents filed by the company with the Securities and Exchange Commission. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Investors Contact:
IR@GalaxyNext.us
P:888-859-1274
SOURCE: Galaxy Next Generation, Inc.
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