Gaming Partners International Corporation Reports Financial Results for the Third Quarter and First Nine Months of 2011

10 Nov, 2011, 09:00 ET from Gaming Partners International Corporation

LAS VEGAS, Nov. 10, 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 third quarter and nine months ended September 30, 2011.

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

For the third quarter of 2011, the Company posted revenues of $13.8 million and net income of $0.5 million, or $0.06 per basic and diluted share. These results compare to revenues of $12.4 million and net income of $0.8 million, or $0.09 per basic and diluted share, for the third quarter of 2010. Gross profit for the third quarter of 2011 was $4.2 million, or 31% of revenues, compared to $4.1 million, or 33% of revenues, for the prior year quarter.

The increase in revenue for the third quarter of 2011, compared to the same prior year period, was due primarily to an approximate $1.0 million increase in sales of European-style casino chips to Asia, particularly to SJM casinos in Macau.  Additionally, the Company realized $0.3 million in RFID solutions revenue in Asia in the third quarter of 2011.

For the first nine months of 2011, the Company posted revenues of $46.4 million and net income of $3.1 million, or $0.38 per basic and diluted share. These results compare to revenues of $43.2 million and net income of $3.5 million, or $0.42 per basic and diluted share, for the first nine months of 2010. Gross profit for the first nine months of 2011 was $15.1 million, or 33% of revenues, compared to $16.3 million, or 38% of revenues, for the first nine months of 2010.

The increase in revenue for the first nine months of 2011, compared to the same prior year period, was due primarily to an increase of nearly $8.3 million in sales of European-style casino chips for the Galaxy and SJM casinos in Macau, as well as in other parts of Asia, and $1.3 million in RFID solutions revenue.  This increase was offset by a $4.3 million decline in American-style casino chip sales and a $2.1 million decline in furniture and accessories sales in the United States.

The Company ended the quarter with $25.2 million in cash, cash equivalents and marketable securities.

"Our results for the third quarter and the first nine months of 2011 were driven by continued higher revenues in Asia," commented Gregory Gronau, GPIC President and CEO. “We have also recently received orders from the Sands Cotai Central Project Parcels 5 and 6 in Macau, the Star Casino in Australia and from the Genting Casinos UK in the United Kingdom, which together include chips and plaques from the Company’s Bud Jones and Bourgogne et Grasset product brands.  Totaling approximately $6.2 million and to be delivered in 2012, these orders reflect our continued efforts to expand our relationships with key operators in every major gaming jurisdiction.”

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:

Gregory S. Gronau, President and Chief Executive Officer 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)

September 30,

December 31,

2011

2010

ASSETS

Current Assets:

Cash and cash equivalents

$               8,521

$             11,400

Marketable securities

16,635

18,350

Accounts receivable, net

5,115

6,838

Inventories

7,973

7,160

Prepaid expenses

1,028

790

Deferred income tax asset

536

949

Other current assets

2,285

1,578

 Total current assets

42,093

47,065

Property and equipment, net

11,857

11,926

Intangibles, net

675

782

Deferred income tax asset 

1,279

1,108

Inventories, non-current 

304

496

Other assets, net 

387

430

      Total assets

$             56,595

$             61,807

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:

Short-term debt

$                    17

$               6,696

Accounts payable

2,943

3,216

Accrued liabilities

5,464

6,204

Customer deposits and deferred revenue

3,136

3,919

Income taxes payable

173

273

 Total current liabilities

11,733

20,308

Long-term debt

19

32

Deferred income tax liability

564

491

Other liabilities

42

41

     Total liabilities

12,358

20,872

Commitments and contingencies - see Note 8

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

19,360

19,196

  Treasury stock, at cost; 8,061 shares

(196)

(196)

  Retained earnings

23,383

20,269

  Accumulated other comprehensive income

1,608

1,584

Total stockholders' equity

44,237

40,935

Total liabilities and stockholders' equity

$             56,595

$             61,807

GAMING PARTNERS INTERNATIONAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(in thousands, except per share amounts)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2011

2010

2011

2010

Revenues

$     13,834

$     12,383

$     46,446

$     43,235

Cost of revenues

9,596

8,319

31,347

26,914

Gross profit

4,238

4,064

15,099

16,321

Marketing and sales

1,194

1,088

3,604

3,363

General and administrative

2,587

1,899

7,432

7,336

Operating income

457

1,077

4,063

5,622

Other income and (expense)

125

75

357

229

Income before income taxes

582

1,152

4,420

5,851

Income tax provision

105

391

1,306

2,387

Net income

$          477

$          761

$       3,114

$       3,464

Earnings per share:

Basic

$         0.06

$         0.09

$         0.38

$         0.42

Diluted

$         0.06

$         0.09

$         0.38

$         0.42

Weighted-average shares of common stock outstanding:

Basic

8,199

8,199

8,199

8,199

Diluted

8,234

8,207

8,226

8,205

SOURCE Gaming Partners International Corporation



RELATED LINKS

http://www.gpigaming.com