Gaming Partners International Corporation Reports 2011 Fourth-Quarter and Year Results

Mar 29, 2012, 09:00 ET from Gaming Partners International Corporation

LAS VEGAS, March 29, 2012 /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, 2011.

(Logo: http://photos.prnewswire.com/prnh/20110512/LA99804LOGO)

For its fourth quarter of 2011, the Company posted revenues of $14.6 million and net income of $0.6 million, or $0.07 per basic and diluted share. These results compare to revenues of $16.6 million and net income of $1.0 million, or $0.12 per basic and diluted share, for the fourth quarter of 2010. Gross profit for the quarter was $4.2 million, or 29% of revenues, compared to $5.4 million, or 33% of revenues, in the prior year period.

For the year 2011, the Company recorded revenues of $61.1 million and net income of $3.7 million, or $0.45 per basic and diluted share. These results compare to revenues of $59.9 million and net income of $4.4 million, or $0.54 per basic and $0.53 per diluted share for the year 2010. Gross profit for the year was $19.5 million, a decrease of $2.4 million, or 11.0%, compared to gross profit of $21.9 million for 2010. As a percentage of revenues, gross profit decreased from 36.6% to 32.0%, primarily due to high volume, but lower margin plaque and chip sales to several Asian customers during 2011; one-time delivery of non-RFID American-style chips at no cost to the Star Casino in Australia as an accommodation to meet delivery dates, following RFID tag delivery delays related to the fall 2011 Thailand floods; and the sale of higher margin Paulson chips with increased security features to casinos in Pennsylvania, West Virginia, and Delaware in 2010.

The primary reasons for the increase in revenue in 2011 were an increase of nearly $7.7 million in revenue of European-style casino chips for Asian casinos, including the Galaxy™ Macau and Sociedade de Jogos de Macau S.A. casinos, as well as in other parts of Asia, and $1.6 million in RFID solutions revenue. This increase was offset by a $5.4 million decline in American-style casino chip revenue and a $2.7 million decline in furniture, accessories, and layout sales in the United States, due primarily to significant second and third quarter sales to Pennsylvania, Delaware, and West Virginia casinos in 2010.

In December, the Company paid a cash dividend of $1.5 million, or $0.1825 per share, and ended 2011 with $24.1 million in cash, cash equivalents and marketable securities. Also in December, the Company initiated a stock repurchase program to repurchase up to 5% of the Company's stock, or approximately 410,000 shares. During December the Company repurchased over 11,000 shares, at a weighted average cost of $6.31 per share, and, as of March 21, 2012, repurchased an aggregate of approximately 57,000 shares at a weighted average cost of $6.84 per share, under this program.

"We closed out 2011 with a strong year for sales in Asia," commented Gregory Gronau, GPIC President and Chief Executive Officer. "This reflected the opening of the Galaxy Macau casino, with both chip and RFID solution sales, as well as rebranding and replacement sales with Macau, Singapore, and Malaysia casinos.  For 2012, we expect to leverage our expanded chip mold making and design capabilities for our global customers to improve their chip security, branding and promotions.  Additionally, we will continue to pursue potential strategic acquisitions and partnerships to grow our business."

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 gaming-related 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 S.A.R., 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; potential strategic acquisitions and partnerships; and the long term potential of the RFID casino currency solutions 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, 2011, 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)

2011

2010

ASSETS

Current Assets:

Cash and cash equivalents

$               9,282

$             11,400

Marketable securities

14,867

18,350

Accounts receivable, net

5,976

6,838

Inventories

7,749

7,160

Prepaid expenses

1,015

790

Deferred income tax asset

893

949

Other current assets

1,564

1,578

 Total current assets

41,346

47,065

Property and equipment, net

11,836

11,926

Intangibles, net

646

782

Deferred income tax asset

1,740

1,108

Inventories, non-current

160

496

Other assets, net

314

430

      Total assets

$             56,042

$             61,807

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:

Short-term debt

$                    17

$               6,696

Accounts payable

2,376

3,216

Accrued liabilities

5,876

6,204

Customer deposits and deferred revenue

4,585

3,919

Income taxes payable, net

-

273

 Total current liabilities

12,854

20,308

Long-term debt

15

32

Deferred income tax liability

689

491

Other liabilities

-

41

     Total liabilities

13,558

20,872

Commitments and contingencies - see Note 11

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,

8,207,077 and 8,187,764 issued and outstanding, respectively,

as of December 31, 2011, and 8,207,077 and 8,199,016 issued

and outstanding, respectively, as of December 31, 2010

82

82

  Additional paid-in capital

19,401

19,196

  Treasury stock at cost: 19,313 and 8,061 shares

(267)

(196)

  Retained earnings

22,442

20,269

  Accumulated other comprehensive income

826

1,584

Total stockholders' equity

42,484

40,935

Total liabilities and stockholders' equity

$             56,042

$             61,807

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,

2011

2010

2011

2010

Revenues

$    14,638

$    16,641

$    61,084

$    59,875

Cost of revenues

10,404

11,199

41,550

37,961

Gross profit

4,234

5,442

19,534

21,914

Marketing and sales

1,255

1,169

5,095

4,707

General and administrative

2,575

3,455

9,971

10,768

Operating income

404

818

4,468

6,439

Other income and (expense)

107

122

463

352

Income before income taxes

511

940

4,931

6,791

Income tax expense

(44)

(15)

1,262

2,372

Net income

$         555

$         955

$      3,669

$      4,419

Earnings per share:

Basic

$        0.07

$        0.12

$        0.45

$        0.54

Diluted

$        0.07

$        0.12

$        0.45

$        0.53

Weighted-average shares of common stock outstanding:

Basic

8,197

8,199

8,199

8,199

Diluted

8,206

8,205

8,225

8,207

SOURCE Gaming Partners International Corporation



RELATED LINKS

http://www.gpigaming.com