GGRAsia – TransAct positive quarterly EBITDA, first since 3Q 2019

TransAct positive quarterly EBITDA, first since 3Q 2019

Nov 10, 2021 Newsdesk Industry Talk, Latest News

TransAct Technologies Inc, a supplier of slot machine printers, casino-player management software and food-safety management technology, says it moved to positive earnings before interest, taxation, depreciation and amortisation (EBITDA) for the third quarter of 2021.

According to a report released on Tuesday in the United States, the firm’s EBITDA stood at US$0.7 million for the three months to September 30, compared to a negative performance of US$1.1 million in the same period of 2020, and US$2.5 million in the second quarter of 2021.

It was TransAct’s first positive quarterly EBITDA since the third quarter of 2019.

Nonetheless, the firm saw its third-quarter net loss top US$1.6 million, slightly higher than the net loss of US$1.5 million in the same period of 2020.

Compared to the previous quarter, TransAct’s third-quarter loss improved by 23.8 percent.

The firm posted a loss even as its net sales for the three months to September 30 rose 46 percent from the prior-year period, to just above US$10.6 million. Net sales were also higher than the US$9.3-million figure in the second quarter of 2021.

It was “the highest quarterly net sales since the fourth quarter of 2019”, Bart Shuldman, TransAct’s chairman and chief executive, said in prepared comments issued with the results.

He highlighted “a fantastic rebound in our domestic casino and gaming markets”.

Third-quarter casino and gaming segment sales more than doubled percent year-on-year, to just over US$4 million. The figure was up 15.3 percent quarter-on-quarter.

Food service technology sales in the third quarter rose 39.7 percent year-on-year, and 5.9 percent sequentially, to nearly US$3.3 million, benefitting from demand for TransAct’s food-inventory monitoring and food-service tracking system known as Boha.

The firm completed in August a US$10.6-million public offering of its common stock to fund “the further development of TransAct’s food service technology business”.