LAS VEGAS, Nov. 15, 2010 /PRNewswire-FirstCall/ -- Gaming Partners International Corporation (Nasdaq: GPIC), a leading worldwide provider of casino currency and table gaming equipment, today announced financial results for the third quarter and first nine months of 2010.
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For its third quarter of 2010, the Company posted revenues of $12.4 million and net income of $0.8 million, or $0.09 per basic and diluted share. These results compare to revenues of $13.4 million and net loss of $0.3 million, or $(0.04) per basic and diluted share, for the third quarter of 2009. Gross profit for the quarter was $4.1 million, or 33% of revenues, compared to $4.7 million, or 35% of revenues, for the third quarter of 2009. The primary reason for the increase in quarterly net income between the quarters was a $1.6 million charge for impairment of goodwill that was recorded in September 2009.
For the first nine months of 2010, the Company recorded revenues of $43.2 million and net income of $3.5 million, or $0.42 per basic and diluted share. These results compare to revenues of $33.7 million and a net loss of $0.7 million, or $(0.08) per basic and diluted share, for the first nine months of 2009. Gross profit for the first nine months of 2010 was $16.3 million, or 38% of revenues, compared to $10.2 million, or 30% of revenues, for the comparable period in 2009. The primary reasons for the increase in net income between the periods was a $1.6 million charge for impairment of goodwill that was recorded in September 2009, as well as a significant increase in year-to-date gross margin percentage due to a shift in mix of sales towards higher-margin chips.
At September 30, 2010 the Company had cash, cash equivalents, and marketable securities of $22.5 million, compared to $18.8 million at December 31, 2009.
"In the third quarter, GPIC continued its sales to Pennsylvania casinos and significantly increased its cash levels based on customer payments on strong second quarter sales," said Greg Gronau, GPIC's President and CEO. "We posted good results for the third quarter, with sales of $12.4 million and net income of $.09 per share."
Mr. Gronau further commented, "Additionally, we have recently achieved several goals that position us for the future. These achievements, along with our strong financial position, will allow us to look at new opportunities as we move beyond 2010. The achievements include:
- In August, GPIC entered into an agreement with IGT to license certain RFID technology and purchased software, enabling the Company to sell RFID hardware and software for cage and portable chip identification for customers to whom it has previously sold RFID chips.
- In the third quarter, GPIC received its first orders from gaming establishments in Mexico, which is an emerging new market for table products.
Along with these achievements, we have decided to establish a local sales office in Macau to better serve the Company's Asian customers."
About Gaming Partners International Corporation (GPIC)
GPIC manufactures and supplies casino table games and equipment to licensed casinos worldwide. Under the brand names of Paulson®, Bourgogne et Grasset® and Bud Jones®, GPIC provides casino currency such as chips, plaques and jetons; gaming furniture and accessories; table layouts; playing cards; dice; and roulette wheels. GPIC pioneered the use of security features such as RFID technology in casino chips and provides RFID solutions including chips, readers and displays. Headquartered in Las Vegas, Nevada, GPIC also has offices Beaune, France; San Luis Rio Colorado, Mexico; Atlantic City, New Jersey, and Gulfport, Mississippi. For additional information, please visit www.gpigaming.com.
Safe Harbor Statement
This release contains "forward-looking statements" based on current expectations involving known and unknown risks and uncertainties, such as statements relating to anticipated future sales or the timing thereof; the long-term growth and prospects of our business or any jurisdiction; the duration or effects of unfavorable economic conditions which may reduce our product sales; and the long term potential of the RFID gaming chips market and the ability of GPIC to capitalize on any such growth opportunities. Actual results or achievements may be materially different from those expressed or implied. GPIC's plans and objectives are based on assumptions involving judgments with respect to future economic, competitive and market conditions, the timing and its ability to consummate acquisitions, and future business decisions and other risks and uncertainties identified in Part I-Item 1A, "Risk Factors" of the Company's Annual Report on Form 10-K for the period ended December 31, 2009, all of which are difficult or impossible to predict accurately and many of which are beyond its control. Therefore, there can be no assurance that any forward-looking statement will prove to be accurate.
For more information please contact: | |
For Gaming Partners International Corporation: | |
| |
Gerald W. Koslow | |
702-384-2425 | |
jkoslow@gpigaming.com | |
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GAMING PARTNERS INTERNATIONAL CORPORATION CONSOLIDATED BALANCE SHEETS (unaudited) (in thousands, except share amounts) | |
|
|
| September 30, |
| December 31, | |
|
|
| 2010 |
| 2009 | |
ASSETS
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|
|
| |
Current Assets: |
|
|
| |
| Cash and cash equivalents | $ 6,051 |
| $ 3,238 | |
| Marketable securities | 16,454 |
| 15,600 | |
| Accounts receivable, less allowance for doubtful accounts of |
|
|
| |
| $252 and $220, respectively | 5,232 |
| 7,035 | |
| Inventories | 6,602 |
| 7,173 | |
| Prepaid expenses | 774 |
| 506 | |
| Deferred income tax asset | 614 |
| 707 | |
| Other current assets | 776 |
| 1,241 | |
|
| Total current assets | 36,503 |
| 35,500 | |
| Property and equipment, net | 12,224 |
| 13,454 | |
| Intangibles, net | 848 |
| 676 | |
| Deferred income tax asset | 1,147 |
| 1,657 | |
| Inventories, non-current | 941 |
| 1,686 | |
| Other assets, net | 391 |
| 305 | |
| Total assets | $ 52,054 |
| $ 53,278 | |
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|
| |
LIABILITIES AND STOCKHOLDERS' EQUITY
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| |
Current Liabilities: |
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| |
| Current maturities of long-term debt | $ 14 |
| $ 546 | |
| Accounts payable | 2,458 |
| 2,828 | |
| Accrued liabilities | 3,705 |
| 3,320 | |
| Customer deposits | 2,134 |
| 4,698 | |
| Income taxes payable | 164 |
| 569 | |
| Other current liabilities | 855 |
| 845 | |
|
| Total current liabilities | 9,330 |
| 12,806 | |
Long-term debt, less current maturities | 36 |
| 314 | |
Deferred income tax liability | 516 |
| 623 | |
Other liabilities | 42 |
| 45 | |
| Total liabilities | 9,924 |
| 13,788 | |
Stockholders' Equity: |
|
|
| |
Preferred stock, authorized 10,000,000 shares, $.01 par value, |
|
|
| |
| none issued or outstanding | - |
| - | |
Common stock, authorized 30,000,000 shares, $.01 par value, |
|
|
| |
| 8,199,016 issued and outstanding | 82 |
| 82 | |
Additional paid-in capital | 19,147 |
| 18,985 | |
Treasury stock, at cost; 8,061 shares | (196) |
| (196) | |
Retained earnings | 20,810 |
| 17,346 | |
Accumulated other comprehensive income | 2,287 |
| 3,273 | |
|
| Total stockholders' equity | 42,130 |
| 39,490 | |
|
| Total liabilities and stockholders' equity | $ 52,054 |
| $ 53,278 | |
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GAMING PARTNERS INTERNATIONAL CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (in thousands, except per share amounts) | |
|
| Three Months Ended |
| Nine Months Ended | |
|
| September 30, |
| September 30, | |
|
| 2010 |
| 2009 |
| 2010 |
| 2009 | |
Revenues | $ 12,383 |
| $ 13,425 |
| $ 43,235 |
| $ 33,681 | |
Cost of revenues | 8,319 |
| 8,743 |
| 26,914 |
| 23,465 | |
| Gross profit | 4,064 |
| 4,682 |
| 16,321 |
| 10,216 | |
|
|
|
|
|
|
|
|
| |
Marketing and sales | 1,088 |
| 1,042 |
| 3,363 |
| 3,105 | |
General and administrative | 1,899 |
| 2,112 |
| 7,336 |
| 6,404 | |
Impairment of goodwill | - |
| 1,572 |
| - |
| 1,572 | |
| Operating income (loss) | 1,077 |
| (44) |
| 5,622 |
| (865) | |
Other income and (expense) | 75 |
| 89 |
| 229 |
| 200 | |
| Income (loss) before income taxes | 1,152 |
| 45 |
| 5,851 |
| (665) | |
Income tax expense (benefit) | 391 |
| 373 |
| 2,387 |
| (9) | |
| Net income (loss) | $ 761 |
| $ (328) |
| $ 3,464 |
| $ (656) | |
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Earnings (loss) per share: |
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|
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|
| |
| Basic | $ 0.09 |
| $ (0.04) |
| $ 0.42 |
| $ (0.08) | |
| Diluted | $ 0.09 |
| $ (0.04) |
| $ 0.42 |
| $ (0.08) | |
Weighted-average shares of common stock outstanding: |
|
|
|
|
|
|
| |
| Basic | 8,199 |
| 8,103 |
| 8,199 |
| 8,103 | |
| Diluted | 8,207 |
| 8,103 |
| 8,205 |
| 8,103 | |
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SOURCE Gaming Partners International Corporation