Gaming Partners International Corporation Reports Financial Results For the Third Quarter and First Nine Months of 2012

Nov 08, 2012, 17:00 ET from Gaming Partners International Corporation

LAS VEGAS, Nov. 8, 2012 /PRNewswire/ -- Gaming Partners International Corporation (NASDAQ: GPIC), a leading worldwide provider of casino currency and table gaming equipment, announced today financial results for the third quarter and nine months ended September 30, 2012.

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For the third quarter ended September 30, 2012, the Company earned $0.16 per basic share and $0.15 per diluted share. For the nine months ended September 30, 2012, the Company earned $0.53 per basic share and diluted share.

During the third quarter of 2012, the Company posted revenues of $16.9 million and net income of $1.3 million. These results compare to revenues of $13.8 million and net income of $0.5 million, or $0.06 per basic share and diluted share, for the third quarter of 2011. Gross profit for the third quarter of 2012 was $5.4 million, or 32% of revenues, compared to $4.2 million, or 30% of revenues, for the prior year quarter.

The increase in revenue for the third quarter of 2012, compared to the same prior year period, was due to a $1.5 million increase in sales of European-style casino chips to Asia Pacific casinos and a $1.4 million increase in sales of American-style casino chips, furniture and accessories, primarily to casinos in the United States. The increase in net income for the third quarter of 2012, compared to the same prior year period, was primarily due to an increase in gross profit of $1.2 million on these increased sales.

During the first nine months of 2012, the Company posted revenues of $45.4 million and net income of $4.3 million. These results compare to revenues of $46.4 million and net income of $3.1 million, or $0.38 per basic and diluted share, for the first nine months of 2011. Gross profit for the first nine months of 2012 was $15.3 million, or 34% of revenues, compared to $15.3 million, or 33% of revenues, for the first nine months of 2011.

The decrease in revenue for the first nine months of 2012, compared to the same prior year period, was due primarily to a $6.5 million decrease in sales of European-style casino chips and RFID solutions to Asia Pacific casinos, particularly sales  to the Galaxy ™ and SJM casinos in Macau in the 2011 reporting period, offset by a $5.1 million increase in sales of American-style chips, furniture, accessories, table layouts, and cards primarily to new and expanding casinos in the United States. The increase in net income for the first nine months of 2012, compared to the same prior year period, was primarily driven by a reduction in general and administrative expenses due to the settlement of litigation, as well as a reduction in income taxes from the utilization of foreign tax credits.

The Company ended the quarter with $24.2 million in cash, cash equivalents and marketable securities and no debt.

"We had a strong third quarter with sales of almost $17.0 million and diluted earnings of $0.15 per share," commented Greg Gronau, GPIC President and Chief Executive Officer. "We continued to grow sales in the American market with Paulson chip, furniture and accessories sales driven by casino openings, as well as sales to casinos that were expanding and rebranding.  Additionally, we showed significant increases in Asia Pacific sales in the third quarter, thanks to new and expansion orders."

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 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, 2011, 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.

 

GAMING PARTNERS INTERNATIONAL CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

(in thousands, except share amounts)

September 30,

December 31,

2012

2011

ASSETS

Current Assets:

Cash and cash equivalents

$             12,530

$               9,282

Marketable securities

11,635

14,867

Accounts receivable, net

7,134

5,976

Inventories

6,939

7,749

Prepaid expenses

1,052

1,015

Deferred income tax asset

762

893

Other current assets

2,007

1,564

  Total current assets

42,059

41,346

Property and equipment, net

11,117

11,836

Intangibles, net

566

646

Deferred income tax asset

1,733

1,740

Inventories, non-current

157

160

Other assets, net

1,664

314

       Total assets

$             57,296

$             56,042

LIABILITIES AND STOCKHOLDERS' EQUITY 

Current Liabilities:

Short-term debt

$                      -

$                    17

Accounts payable

2,224

2,376

Accrued liabilities

5,115

5,876

Customer deposits and deferred revenue

2,796

4,585

Income taxes payable

338

-

  Total current liabilities

10,473

12,854

Long-term debt

-

15

Deferred income tax liability

677

689

        Total liabilities

11,150

13,558

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,

8,207,077 and 8,100,504 issued and outstanding, respectively, 

as of September 30, 2012, and 8,207,077 and 8,187,764 issued 

and outstanding, respectively, as of December 31, 2011

82

82

   Additional paid-in capital

19,550

19,401

   Treasury stock, at cost: 106,573 and 19,313 shares

(857)

(267)

   Retained earnings

26,781

22,442

   Accumulated other comprehensive income

590

826

Total stockholders' equity

46,146

42,484

Total liabilities and stockholders' equity

$             57,296

$             56,042

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,

2012

2011

2012

2011

Revenues

$      16,939

$      13,834

$      45,394

$      46,446

Cost of revenues

11,550

9,661

30,045

31,147

Gross profit

5,389

4,173

15,349

15,299

Marketing and sales

1,320

1,273

3,944

3,842

General and administrative

2,542

2,443

6,570

7,394

Operating income

1,527

457

4,835

4,063

Other income and (expense)

185

125

313

357

Income before income taxes

1,712

582

5,148

4,420

Income tax provision

455

105

809

1,306

Net income

$        1,257

$           477

$        4,339

$        3,114

Earnings per share:

Basic

$          0.16

$          0.06

$          0.53

$          0.38

Diluted

$          0.15

$          0.06

$          0.53

$          0.38

Weighted-average shares of common stock outstanding:

Basic

8,105

8,199

8,132

8,199

Diluted

8,113

8,234

8,152

8,226

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

SOURCE Gaming Partners International Corporation



RELATED LINKS

http://www.gpigaming.com