Gaming Partners International Corporation Reports 2010 Fourth-Quarter and Year Results

Mar 29, 2011, 16:15 ET from Gaming Partners International Corporation

LAS VEGAS, March 29, 2011 /PRNewswire/ -- Gaming Partners International Corporation (Nasdaq: GPIC), a leading worldwide provider of casino currency and table gaming equipment, today announced financial results for the fourth quarter and year ending December 31, 2010.

(Logo:  http://photos.prnewswire.com/prnh/20060127/LAF027LOGO-b)

For its fourth quarter of 2010, the Company posted revenues of $16.6 million and net income of $1.0 million, or $0.12 per basic and diluted share. These results compare to revenues of $15.8 million and net income of $1.7 million, or $0.21 per basic and diluted share, for the fourth quarter of 2009. Gross profit for the quarter was $5.4 million, or 32% of revenues, compared to $5.7 million, or 36% of revenues, in the prior year period.

For the year 2010, the Company recorded revenues of $59.9 million and net income of $4.4 million, or $0.54 per basic and $0.53 per diluted share. These results compare to revenues of $49.5 million and net income of $1.0 million, or $0.13 per basic and diluted share for the year 2009. The Company's 2010 gross profit was $21.7 million, or 36% of revenues, compared to $15.9 million, or 32% of revenues, in 2009.

The primary reasons for the increase in net income in 2010 were a significant increase in gross profit that was driven by higher sales, which caused fixed manufacturing costs to be allocated over higher production volumes, a sales mix shift toward higher-margin chips, and a $1.6 million charge for impairment of goodwill that reduced net income in 2009.

In December, the Company paid a cash dividend of $1.5 million, or $0.1825 per share, and ended 2010 with $29.8 million in cash, cash equivalents and marketable securities, as well as $6.7 million in debt.

"A significant contributor to our increased sales in 2010 was sales from casino openings in Pennsylvania, Delaware and Singapore," commented Greg Gronau, GPIC President and Chief Executive Officer.  "This helped us end 2010 with a very strong cash position and focuses us for potential future growth."

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®, Bud Jones®, and Bourgogne et Grasset®, GPIC provides casino currency such as chips, plaques and jetons; casino tables, furniture and accessories; table layouts; playing cards; precision dice;  roulette wheels; and RFID technology and applications.  Headquartered in Las Vegas, Nevada, GPIC has additional locations in Beaune, France; San Luis Rio Colorado, Mexico; Atlantic City, New Jersey, Gulfport, Mississippi, and Macau SAR China.  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, 2010, 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:

Gerald W. Koslow, Chief Financial Officer

+1.702.384.2425

jkoslow@gpigaming.com

GAMING PARTNERS INTERNATIONAL CORPORATION

CONSOLIDATED BALANCE SHEETS

December 31,

(audited)

2010

2009

ASSETS

Current Assets:

Cash and cash equivalents

$ 11,400

$   3,238

Marketable securities

18,350

15,600

Accounts receivable, net

6,838

7,035

Inventories

7,160

7,173

Prepaid expenses

790

506

Deferred income tax asset

949

707

Other current assets

1,578

1,241

 Total current assets

47,065

35,500

Property and equipment, net

11,926

13,454

Other intangibles, net

782

676

Deferred income tax asset

1,108

1,657

Inventories, non-current

496

1,686

Other assets, net

430

305

      Total assets

$ 61,807

$ 53,278

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:

Current maturities of long-term debt

$   6,696

$      546

Accounts payable

3,216

2,828

Accrued liabilities

6,204

4,165

Customer deposits

3,919

4,698

Income taxes payable

273

569

 Total current liabilities

20,308

12,806

Long-term debt, less current maturities

32

314

Deferred income tax liability

491

623

Other liabilities

41

45

     Total liabilities

20,872

13,788

Stockholders' Equity:

  Preferred stock, authorized 10,000,000 shares, $.01 par value,

 none issued and outstanding

-

-

  Common stock, authorized 30,000,000 shares, $.01 par value,

8,199,016 issued and outstanding

82

82

  Additional paid-in capital

19,196

18,985

  Treasury stock, at cost; 8,061 shares

(196)

(196)

  Retained earnings

20,269

17,346

  Accumulated other comprehensive income

1,584

3,273

Total stockholders' equity

40,935

39,490

Total liabilities and stockholders' equity

$ 61,807

$ 53,278

GAMING PARTNERS INTERNATIONAL CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

FOR THE THREE MONTHS AND YEAR ENDED DECEMBER 31,

(in thousands, except per share amounts)

(unaudited)

(audited)

Three Months Ended

Year Ended

December 31,

December 31,

2010

2009

2010

2009

Revenues

$ 16,641

$ 15,847

$ 59,875

$ 49,527

Cost of revenues

11,259

10,167

38,173

33,631

Gross profit

5,382

5,680

21,702

15,896

Marketing and sales

1,111

1,258

4,474

4,363

General and administrative

3,453

2,342

10,789

8,746

Impairment of goodwill

-

-

-

1,572

Operating income

818

2,080

6,439

1,215

Other income and (expense)

122

90

352

289

Income before income taxes

940

2,170

6,791

1,504

Income tax provision

(15)

466

2,372

457

Net income

$      955

$   1,704

$   4,419

$   1,047

Earnings per share:

Basic

$     0.12

$     0.21

$     0.54

$     0.13

Diluted

$     0.12

$     0.21

$     0.53

$     0.13

Weighted-average shares of common stock outstanding:

Basic

8,199

8,117

8,199

8,107

Diluted

8,205

8,177

8,207

8,189

SOURCE Gaming Partners International Corporation



RELATED LINKS

http://www.gpigaming.com