GGRAsia – TransAct sales hit US$18mln in 4Q, reports profit

TransAct sales hit US$18mln in 4Q, reports profit

Mar 09, 2023 Newsdesk Industry Talk, Latest News

TransAct Technologies Inc, a supplier of slot machine printers, casino-player management software and food-safety management technology, reported net sales of nearly US$18.0 million in the fourth quarter of 2022, up 61.4 percent year-on-year. Such sales were flat compared to the preceding quarter, according to a Wednesday filing.

The company reported a net profit of US$260,000 for the three months to December 31, an improvement on the US$823,000-loss a year earlier. The latest quarterly result was however down 50.8 percent from the third quarter.

TransAct reported adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) of nearly US$1.3 million for the fourth quarter of 2022. That compared with a negative figure of just above US$2.2 million in the prior-year period.

The company had reported positive adjusted EBITDA of US$1.2 million in the third quarter this year.

Fourth-quarter casino and gaming segment sales more than doubled year-on-year, to just under US$11.0 million. The figure was up 42.1 percent quarter-on-quarter.

Bart Shuldman, TransAct’s chairman and chief executive, said in prepared comments issued with the results that 2022 “was a record-breaking year in many respects for TransAct”.

“Most notably, casino and gaming market sales reached an all-time quarterly high in the fourth quarter of 2022, increasing market share across the globe and carrying significant momentum into the new year,” Mr Shuldman stated.

He added that the firm was working “to increase production to meet the casino printer demand around the world”.

Despite the better performance at the end of the year, TransAct reported a net loss of US$5.9 million for full-year 2022, compared with a US$4.0-million loss in 2021. The company posted negative adjusted EBITDA of US$5.2 million in 2022, an improvement on the US$7.5-million EBITDA loss in the prior year.

Group-wide sales rose 47.6 percent year-on-year in 2022, to US$58.1 million. Sales in the casino and gaming segment stood at US$30.0 million last year, up 96.2 percent from 2021.

In Wednesday’s filing, TransAct said it expected to record in 2023 aggregate revenue of between US$70 million to US$72 million, with total adjusted EBITDA in the range of US$5.2 million to US$5.4 million.