Table Trac Reports Strong Q1 2025 Growth Amid Rising Costs and Positive Operating Income

Company Overview: Table Trac, Inc. (PINK: TBTC) specializes in developing information and management systems for casino operations, providing software solutions that enhance operational efficiency and analytics for gaming establishments.

Key Financial Results (Q1 2025 vs Q1 2024):

• Revenues: Increased to $3,535,933 from $2,020,795.
• Cost of Sales: Rose from $544,201 to $932,323, predominantly due to increased installations.
• Gross Profit: Slight improvement with margins of 73.6% compared to 73.1% last year.
• Operating Income: Turned positive at $942,627 from a loss of $12,428.
• Net Income: Jumped to $782,239, compared to only $11,661, with a basic and diluted income per share of $0.17.
• Tax Provision: Increased tax expense to $283,570 from $63,000 due to higher revenues.

Positive Aspects:

• Substantial revenue growth indicating strong demand for systems.
• Improved gross profit margins due to better cost management and productivity.
• Positive operating income suggests robust operational performance.
• Effective cash management as reflected in an increase in cash and cash equivalents by over $3 million during the quarter.

Negative Aspects:

• Cost of sales increased significantly, impacting profit margins despite overall growth.
• Higher selling, general and administrative expenses, totaling $1,660,983, up from $1,489,022, indicating escalated operational costs.
• Only minor gains in net income over the previous year, demonstrating the need for ongoing improvement in profitability.

Liquidity Position: As of March 31, 2025, Table Trac reported cash and equivalents of $5,469,802 and short-term investments of $2,098,215. They have a revolving line of credit totaling $500,000, indicating adequate liquidity for operational needs in the near term.

Outlook: With its innovative offerings and expanding customer base, Table Trac is well-positioned for future growth, though it must navigate escalating operational costs to maintain profitability margins.