Gaming Partners International Corporation Reports 2012 Fourth-Quarter and Year Results

LAS VEGAS, March 26, 2013 /PRNewswire/ -- Gaming Partners International Corporation (NASDAQ: GPIC), a leading worldwide provider of casino currency and table gaming equipment, announced today financial results for the fourth quarter and year ending December 31, 2012.

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

For its fourth quarter of 2012, the Company posted revenues of $17.5 million and net income of $1.7 million, or $0.22 per basic and diluted share. These results compare to revenues of $14.6 million and net income of $0.6 million, or $0.07 per basic and diluted share, for the fourth quarter of 2011. Gross profit for the quarter was $6.6 million, or 38% of revenues, compared to $4.4 million, or 30% of revenues, in the prior year's fourth quarter.

For the full year 2012, the Company recorded revenues of $62.9 million and net income of $6.1 million, or $0.75 per basic and diluted share. These results compare to revenues of $61.1 million and net income of $3.7 million, or $0.45 per basic and diluted share for the year 2011. Gross profit for 2012 was $22.5 million, an increase of $2.1 million, or 10.6%, compared to gross profit of $20.4 million for 2011. As a percentage of revenues, gross profit increased from 33.3% to 35.8%, primarily due to a shift in sales mix toward higher margin Paulson chips in the Americas during 2012, offset by a decrease in sales of European-style casino chips to Asia Pacific casinos in 2012, compared to 2011, which resulted in fixed manufacturing costs being allocated over lower production volumes in these products.

The primary reasons for the increase in revenue in 2012 were an increase of $6.3 million in sales of American-style chips in the United States, primarily driven by sales of Paulson chips to casinos opening in Ohio, New Jersey, and Maine; and a $1.8 million increase in sales of furniture, accessories, table layouts, and cards to new and expanding casinos in the United States. This increase was offset by a $5.9 million decrease in sales of European-style casino chips for Asia Pacific casinos compared to sales in 2011, which were driven primarily by significant sales to the Galaxy Macau ™ and Sociedade de Jogos de Macau casinos in 2011; and a $0.8 million decrease in sales of RFID solutions to casinos in Asia Pacific, primarily related to the May 2011 Galaxy Macau opening.

In December 2012, the Company paid a cash dividend of $1.48 million, or $0.1825 per share, and at December 31, 2012, had $27.6 million in cash, cash equivalents and marketable securities.

In November 2012, the Company's Board of Directors increased the number of shares authorized under the Company's stock repurchase program to 400,000 shares, an increase of 88,561 shares. The Company purchased 54,600 shares after the November 30, 2012 authorization, leaving 345,400 shares available for repurchase as of December 31, 2012. Since the inception of the original stock repurchase program on December 1, 2011 and through March 13, 2013, the Company has repurchased 240,652 shares at a total cost of $1,726,382.

"We had a strong fourth quarter, with more than $17.0 million in revenues, driven by sales in both the United States and Asia," commented Greg Gronau, GPIC President and Chief Executive Officer. "For the full year, revenues were up slightly from our successful sales year in 2011, but earnings increased substantially as improvements in gross margin due to cost reductions and reduction in our global effective tax rate drove more of our revenue to the bottom line. We also increased our commitment to and spending for research and development with a focus on meeting customer requirements for increased security options for casino currency and the development of a new chip currency that combines features of our European and American chips into a brand new jeton-like chip. We delivered our first order of this new currency in the first quarter of 2013. This continuing commitment to product development will allow us to keep pace with the changing needs of our customers."

About Gaming Partners International Corporation (GPIC)

GPIC manufactures and supplies casino table game equipment to licensed casinos worldwide. Under the brand names of Paulson®, Bourgogne et Grasset® and Bud Jones®, GPI provides casino currency such as chips, plaques and jetons; gaming furniture and table accessories; table layouts; playing cards; dice; and roulette wheels. GPIC pioneered the use of security features such as radio frequency identification device (RFID) technology in casino chips and provides RFID solutions including RFID readers, software and displays. Headquartered in Las Vegas, Nevada, GPIC also has manufacturing facilities, warehouses and/or sales offices in Beaune, France; San Luis Rio Colorado, Mexico; San Luis, Arizona; Atlantic City, New Jersey; Gulfport, Mississippi; and Macau S.A.R., China. For additional information, please visit http://www.gpigaming.com.

Safe Harbor Statement

This release contains "forward-looking statements" based on current expectations that are inherently subject to known and unknown risks and uncertainties, such as statements relating to future share repurchases; anticipated future sales or the timing thereof; fulfillment of product orders; the long-term growth and prospects of our business or any jurisdiction in which we operate; and the long term potential of the RFID casino currency solutions market and our ability to capitalize on any such growth opportunities. Actual results or achievements may be materially different from those expressed or implied. Our plans and objectives are based on assumptions involving judgments with respect to future economic, competitive and market conditions, the timing of and ability to consummate acquisitions, and future business decisions and other risks and uncertainties identified in Part I-Item 1A, "Risk Factors" of our Annual Report on Form 10-K for the period ended December 31, 2012, all of which are difficult or impossible to predict accurately and many of which are beyond our control and are subject to change. 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)

(in thousands, except share amounts)





2012


2011

ASSETS




Current Assets:





Cash and cash equivalents

$ 14,038


$   9,282


Marketable securities

13,546


14,867


Accounts receivable, net

5,802


5,976


Inventories

7,337


7,749


Prepaid expenses

893


1,015


Deferred income tax asset

2,908


893


Other current assets

1,311


1,564



  Total current assets

45,835


41,346

Property and equipment, net

11,190


11,836

Intangibles, net

540


646

Deferred income tax asset

3,857


1,740

Inventories, non-current

207


160

Other assets, net

1,653


314


       Total assets

$ 63,282


$ 56,042







LIABILITIES AND STOCKHOLDERS' EQUITY 




Current Liabilities:





Short-term debt

-


$        17


Accounts payable

2,842


2,376


Accrued liabilities

5,179


5,876


Customer deposits and deferred revenue

3,037


4,585


Deferred income tax liability

2,858


-


Income taxes payable, net

571


-



  Total current liabilities

14,487


12,854

Long-term debt

-


15

Deferred income tax liability

2,174


689


      Total liabilities

16,661


13,558

Commitments and contingencies




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 8,045,904 issued and outstanding, respectively, 





as of December 31, 2012, and 8,207,077 and 8,187,764 issued 





and outstanding, respectively, as of December 31, 2011

82


82

   Additional paid-in capital

19,563


19,401

   Treasury stock at cost: 161,173 and 19,313 shares

(1,250)


(267)

   Retained earnings

27,039


22,442

   Accumulated other comprehensive income

1,187


826



Total stockholders' equity

46,621


42,484



Total liabilities and stockholders' equity

$ 63,282


$ 56,042

 

GAMING PARTNERS INTERNATIONAL CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(unaudited)

(in thousands, except per share amounts)




2012


2011

Revenues

$ 62,896


$ 61,084

Cost of revenues

40,384


40,728


Gross profit

22,512


20,356






Marketing and sales

6,111


5,512

General and administrative

7,252


9,139

Research and development

1,989


1,237


Operating income 

7,160


4,468

Other income, net

290


463


Income before income taxes

7,450


4,931

Income tax provision

1,375


1,262


Net income 

$   6,075


$   3,669






Earnings per share:





Basic

$     0.75


$     0.45


Diluted

$     0.75


$     0.45






Weighted-average shares of common stock outstanding:


Basic

8,122


8,199


Diluted

8,149


8,225

SOURCE Gaming Partners International Corporation



RELATED LINKS
http://www.gpigaming.com

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