Gaming Partners International Corporation Reports Financial Results for the First Quarter of 2013

13 May, 2013, 09:00 ET from Gaming Partners International Corporation

LAS VEGAS, May 13, 2013 /PRNewswire/ -- Gaming Partners International Corporation (NASDAQ: GPIC), a leading worldwide provider of casino currency and table gaming equipment, announced financial results for the first quarter ended March 31, 2013.

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For its first quarter of 2013, the Company posted revenues of $14.8 million and net income of $0.5 million, or $0.07 per basic and diluted share. These results compare to revenues of $15.4 million and net income of $1.3 million, or $0.16 per basic and diluted share, for the first quarter of 2012. Gross profit for the quarter was $4.3 million, or 29% of revenues, compared to $5.3 million, or 35% of revenues, in the same quarter of the prior year.

The primary reasons for the decrease in revenue in the first quarter of 2013 compared to the first quarter of 2012 were a $2.9 million decrease in sales of casino currency without RFID in the Asia-Pacific and European regions and a combined $1.4 million decrease in sales of Paulson chips without RFID and furniture and accessories to casinos in the United States, offset by our initial sale of a new casino currency product with RFID for $3.4 million to an Asia-Pacific casino.

Our gross profit percentage decrease in the first quarter of 2013 from the first quarter of 2012 was primarily related to: (1) a shift in our mix of revenues from our higher-margin Paulson chips toward lower-margin casino currency products; (2) an exceptionally large imbalance in product demand; and (3) the late deferral of the delivery of a major order until later in the year.

The Company ended the first quarter with $24.7 million in cash, cash equivalents and marketable securities and no debt. During the first quarter of 2013, the Company purchased 93,740 shares of its common stock under the current repurchase authorization at a cost of $721,934. Under the current repurchase authorization as of March 31, 2013, the Company may repurchase up to an additional 251,660 shares.

"We are seeing the benefit of our customer-focused R&D efforts, evidenced by the first deliveries of a $3.4 million sale of our new casino currency product to an Asia-Pacific casino in January and our new table furniture product to a new US casino in March," commented Greg Gronau, GPIC President and Chief Executive Officer. "Our quarterly results reflect the variability of our global customers' product demands from quarter to quarter. The adjustment of content or timing of an order can have a dramatic impact on our quarterly results."

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; 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; new products; 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 Further Information Contact:

Gregory S. Gronau, President and Chief Executive Officer Gerald W. Koslow, Chief Financial Officer PH: 702.384.2425 FX: 702.384.1965

 

GAMING PARTNERS INTERNATIONAL CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

(in thousands, except share amounts)

 

March 31,

December 31,

2013

2012

ASSETS

Current Assets:

Cash and cash equivalents

$             16,952

$             14,038

Marketable securities

7,754

13,546

Accounts receivable, net

5,059

5,802

Inventories

6,900

7,337

Prepaid expenses

835

893

Deferred income tax asset

529

2,908

Other current assets

919

1,311

Total current assets

38,948

45,835

Property and equipment, net

11,332

11,190

Intangibles, net

512

540

Deferred income tax asset

4,296

3,857

Inventories, non-current

206

207

Other assets

1,613

1,653

       Total assets

$             56,907

$             63,282

LIABILITIES AND STOCKHOLDERS' EQUITY 

Current Liabilities:

Accounts payable

$               2,727

$               2,842

Accrued liabilities

3,956

5,179

Customer deposits and deferred revenue

1,521

3,037

Deferred income tax liability

-

2,858

Income taxes payable

655

571

Total current liabilities

8,859

14,487

Deferred income tax liability

2,218

2,174

      Total liabilities

11,077

16,661

Commitments and contingencies - see Note 7

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 7,952,164 issued and outstanding, respectively, 

as of March 31, 2013, and 8,207,077 and 8,045,904 issued 

and outstanding, respectively, as of December 31, 2012

82

82

   Additional paid-in capital

19,620

19,563

   Treasury stock at cost: 254,913 and 161,173 shares

(1,972)

(1,250)

   Retained earnings

27,572

27,039

   Accumulated other comprehensive income

528

1,187

Total stockholders' equity

45,830

46,621

Total liabilities and stockholders' equity

$             56,907

$             63,282

 

 

 

GAMING PARTNERS INTERNATIONAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(in thousands, except per share amounts)

 

Three Months Ended

March 31,

2013

2012

Revenues

$      14,768

$      15,425

Cost of revenues

10,488

10,110

Gross profit

4,280

5,315

Marketing and sales

1,505

1,501

General and administrative

2,099

1,873

Research and development

533

397

Operating income 

143

1,544

Other income, net

79

110

Income before income taxes

222

1,654

Income tax (benefit) provision

(311)

383

Net income 

$           533

$        1,271

Earnings per share:

Basic

$          0.07

$          0.16

Diluted

$          0.07

$          0.16

Weighted-average shares of common stock outstanding:

Basic

7,986

8,169

Diluted

8,055

8,184

 

 

SOURCE Gaming Partners International Corporation



RELATED LINKS

http://www.gpigaming.com