Gaming Partners International Corporation Reports Financial Results for the Second Quarter and First Six Months of 2011

Aug 15, 2011, 09:00 ET from Gaming Partners International Corporation

LAS VEGAS, Aug. 15, 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 second quarter and six months ended June 30, 2011.

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For the second quarter of 2011, the Company posted revenues of $14.8 million and net income of $0.9 million, or $0.11 per basic and diluted share. These results compare to revenues of $19.9 million and net income of $2.7 million, or $0.33 per basic share and $0.32 per diluted share, for the second quarter of 2010. Gross profit for the second quarter of 2011 was $4.6 million, or 31% of revenues, compared to $8.6 million, or 43% of revenues, for the prior year quarter.

The decrease in revenue for the second quarter of 2011, compared to the same prior year period, was due to the significant sales recorded in the second quarter of 2010 to casinos in Pennsylvania, Delaware, and West Virginia, offset by the recognition of $1.0 million in revenue in the second quarter of 2011 from the installation of RFID hardware and software solutions at the Galaxy Macau casino, as well as expanded software maintenance activity.

For the first six months of 2011, the Company posted revenues of $32.6 million and net income of $2.6 million, or $0.32 per basic and diluted share. These results compare to revenues of $30.9 million and net income of $2.7 million, or $0.33 per basic and diluted share, for the first six months of 2010. Gross profit for the first six months of 2011 was $10.9 million, or 33% of revenues, compared to $12.3 million, or 40% of revenues, for the first six months of 2010.

The increase in revenue for the first six months of 2011, compared to the same prior year period, was due primarily to a $3.0 million increase in sales of gaming chips to casinos in Macau and the $1.0 million in revenue in the second quarter of 2011 from the installation of RFID hardware and software solutions, offset by a decrease of $2.3 million in sales of furniture, accessories and layouts in the Americas, mainly due to the significant 2010 sales to casinos in Pennsylvania, Delaware, and West Virginia.  

The Company ended the quarter with $27.1 million in cash, cash equivalents and marketable securities, following the payoff of its $7.0 million French line of credit at the end of the second quarter.

"Our results for the second quarter and the first half of the year were driven by higher revenues in Asia. We created a new subsidiary based in Macau to provide sales and service support in this region, as it currently represents the area of greatest expansion in gaming worldwide," commented Greg Gronau, President and CEO. "Asian results were offset by declining activity in Europe and the Americas, which have been hard hit by the continuing economic downturn.  We have successfully expanded our RFID casino currency solutions through the delivery of RFID hardware and software products to Galaxy Macau.  As this business grows, it has the potential to provide recurring maintenance revenue, while providing substantially enhanced security for our customers' casino currency.  Lastly, we were recently selected to provide gaming chips and plaques for the new Sands Cotai Central Project in Macau.  This order totals nearly $3 million and is scheduled for delivery in 2012."

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; 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, 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

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

(in thousands, except per share amounts)

June 30,

December 31,

2011

2010

ASSETS

Current Assets:

Cash and cash equivalents

$   9,781

$          11,400

Marketable securities

17,312

18,350

Accounts receivable, net

5,037

6,838

Inventories

8,905

7,160

Prepaid expenses

734

790

Deferred income tax asset

496

949

Other current assets

1,148

1,578

 Total current assets

43,413

47,065

Property and equipment, net

12,646

11,926

Intangibles, net

723

782

Deferred income tax asset

1,512

1,108

Inventories, non-current

460

496

Other assets, net

435

430

      Total assets

$ 59,189

$          61,807

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:

Short-term debt

$        16

$            6,696

Accounts payable

2,452

3,216

Accrued liabilities

6,217

6,204

Customer deposits

4,634

3,919

Income taxes payable

221

273

 Total current liabilities

13,540

20,308

Long-term debt

24

32

Deferred income tax liability

595

491

Other liabilities

45

41

     Total liabilities

14,204

20,872

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

19,298

19,196

  Treasury stock, at cost; 8,061 shares

(196)

(196)

  Retained earnings

22,906

20,269

  Accumulated other comprehensive income

2,895

1,584

Total stockholders' equity

44,985

40,935

Total liabilities and stockholders' equity

$ 59,189

$          61,807

GAMING PARTNERS INTERNATIONAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(in thousands, except per share amounts)

Three Months Ended

Six Months Ended

June 30

June 30

2011

2010

2011

2010

Revenues

$ 14,791

$ 19,906

$ 32,612

$ 30,851

Cost of revenues

10,180

11,321

21,750

18,595

Gross profit

4,611

8,585

10,862

12,256

Marketing and sales

1,213

1,190

2,410

2,275

General and administrative

2,293

2,842

4,845

5,437

Operating income

1,105

4,553

3,607

4,544

Other income and (expense)

121

92

231

155

Income before income taxes

1,226

4,645

3,838

4,699

Income tax provision

318

1,979

1,201

1,996

Net income

$      908

$   2,666

$   2,637

$   2,703

Earnings per share:

Basic

$     0.11

$     0.33

$     0.32

$     0.33

Diluted

$     0.11

$     0.32

$     0.32

$     0.33

Weighted-average shares of common stock outstanding:

Basic

8,199

8,199

8,199

8,199

Diluted

8,225

8,207

8,223

8,205

SOURCE Gaming Partners International Corporation



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http://www.gpigaming.com