TOCCOA, GA / ACCESSWIRE / October 1, 2019 / Galaxy Next Generation, Inc. (OTCQB:GAXY), a provider of interactive learning technology solutions, today announced the Company's operating and financial results for the fiscal year ended June 30, 2019.
Key Financial Highlights for FY 2019
- Revenue of $1.9 million
- Gross Profit of $0.115 million
- Gross Margin of 6%
On September 4, 2019 Galaxy announced their acquisition of Interlock Concepts
Key Financial Highlights for FY, June 30 2019 (unaudited for Interlock Concepts)
- Revenue of $4.4 million
- Gross Profit of $2.1 million
- Gross Margin of 48%
Key Business Highlights for FY 2019
- Launched and highlighted new products G2 Spoke, G2 SLIM and G2 Overlay at ISTE, InfoComm, Future in Educational Technology Conferences
- Reduced consolidated debt by $5 million by divesting of theater business
- Executed agreements with various new resellers, expanding geographically and vertically, including AIOS Group and J.D.B. and Associates
- Awarded contract from Total Package Hockey
- Awarded contract from Lamar County, Georgia
- Awarded contract from Stephen County, Georgia
- Awarded commitment from Brooks County, Georgia school district
- Awarded contract from Marshall County, Alabama
- Awarded contract from Newtown County, Georgia school district
Subsequent to the End of FY 2019
- Awarded district-wide deployment from Thompson School District in Loveland, Colorado
- Closed acquisition of Interlock Concepts
- Completes install with the International School of Louisiana
Interlock Concepts Key Products
- Phoenix Software Suite (Notification and building communication platform)
- Classroom Audio Product Suite (Amplifier, Lanyard Microphone, Handheld Microphone and speakers)
- Intercom Product Suite (Call Buttons, Microphones and Alert Buttons)
- IP Notification Devices (Clock and Speakers)
- Notification Software
- Speakers (Soundbar, In-ceiling and Wall)
"We had a very successful fiscal year 2019 in regards to both our business progress and capital markets strategy," commented, Gary LeCroy, Galaxy's Chief Executive Officer. "We launched several new products in order to offer a more robust and complete total classroom solution. The hard work of our sales and marketing team has been rewarded by many new reseller agreements, contract wins and successful deployments. And most recently, we have closed the acquisition of Interlock Concepts, which we are really excited about in what it brings to us for innovative and unique audio technology and solutions. We believe Interlock Concepts will accelerate our revenue growth over the next year."
LeCroy concluded, "Our sales pipeline of opportunities we have identified and are competing for is as robust as ever. We believe this is just the beginning of a major technology turnover cycle in the K-12 education market and we look forward to being a major participant in it. Our capital markets efforts including attending several investor conferences and increasing our awareness with high net-worth individuals, retail brokers and smaller funds and family offices has improved our stock liquidity."
Financial Results for the Twelve Months Ended June 30, 2019:
Revenue for the twelve months ended June 30, 2019 was $1.9 million, compared to $0.2 million for the three months ended June 30, 2018, representing an increase of 58% on an annualized basis.
Gross profit for the twelve months ended June 30, 2019 was $0.115 million, compared to $0.03 million for the three months ended June 30, 2018. The resulting gross margin was 6% for the twelve months ended June 30, 2019.
Operating expenses for the twelve months ended June 30, 2019 was $5.8 million, compared to $1.4 million for the three months ended June 30, 2018. Operating expenses for the twelve months ended June 30, 2019 included $3.4 million of non-cash expenses, including depreciation, change in fair value of derivative liability, accretion of financing instruments and stock compensation and stock issued for services.
Operating loss for the twelve months ended June 30, 2019 was $5.7 million, compared to $1.3 million for the three months ended June 30, 2018.
Adjusted EBITDA loss, after deducting non-cash operating expenses, for the twelve months ended June 30, 2019 was $2.3 million, compared to $0.7 million for the twelved months ended June 30, 2018.
Net loss for the twelve months ended June 30, 2019 was $6.7 million, an increase of $5.3 million or 386% compared to $1.4 million for the twelve months ended June 30, 2018.
Interlock Concepts Unaudited Financial Results for the Twelve Months Ended June 30, 2019:
Revenue for the twelve months ended June 30, 2019 was $4.4 million.
Gross profit for the twelve months ended June 30, 2019 was $2.1 million. The resulting gross margin was 48% for the twelve months ended June 30, 2019.
Operating expenses for the twelve months ended June 30, 2019 was $2.1 million.
Operating income for the twelve months ended June 30, 2019 was $0.1 million.
Net loss for the twelve months ended June 30, 2019 was $0.1 million.
Use of Non-GAAP Financial Measures
To supplement Galaxy'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, we supplement our 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. Our management uses Adjusted EBITDA, as financial measures to evaluate the profitability and efficiency of our business model. We use these non-GAAP financial measures to access the strength of the underlying operations of our business. These adjustments, and the non-GAAP financial measures that are derived from them, provide supplemental information to analyze our operations between periods and over time. We find 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 our 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.
SOURCE: Galaxy Next Generation, Inc.