Paul-Son Gaming Reports Third Quarter/Nine Months Results for Fiscal 2001

Apr 13, 2001, 01:00 ET from Paul-Son Gaming Corporation

    LAS VEGAS, April 13 /PRNewswire/ -- Paul-Son Gaming Corporation
 (Nasdaq: PSON), a leading manufacturer and supplier of casino table game
 equipment in North America, today reported financial results for its third
 quarter and nine months ended February 28, 2001.
     The net loss for the third quarter was $251,000, equal to $.07 per share,
 compared with net income of $118,000, or $.03 per share, for the corresponding
 quarter of the previous fiscal year.  The loss from operations for the quarter
 was $241,000, versus operating income of $159,000 in the prior year period.
 Third quarter sales were $4,953,000, compared to $6,333,000 one year ago.
     Eric P. Endy, chairman and chief executive officer, commented:  "The sales
 climate continued to be challenging in the third quarter.  Casino chip sales
 declined significantly from the prior year, which also put pressure on gross
 margins due to lower production levels.  On a sequential basis, we achieved
 improvement from the second quarter, narrowing loss from operations by 46
 percent despite modestly lower sales.  The company's expense reduction program
 resulted in a decrease of more than $200,000 in selling, general and overhead
 expenses in the most recent quarter, compared with the third quarter of fiscal
 2000."
     For the nine months ended February 28, 2001, the company experienced a net
 loss of $984,000, equal to $.29 per share, virtually unchanged from last
 year's net loss of $992,000, or $.29 per share for the same months of fiscal
 2000. The prior year period included an income tax provision of $568,000,
 which was recorded to fully reserve a deferred tax asset.  The operating
 losses for the nine months ended February 28, 2001 and February 29, 2000 were
 $917,000 and $407,000, respectively.  In the current fiscal year, sales for
 the nine months decreased to $15,374,000 from $17,595,000 a year ago.
     "We are working very hard to improve our sales and further streamline
 operations to reduce costs going forward.  All of these efforts are directed
 at our primary goal of returning the company to profitability," Endy
 concluded.
     Paul-Son is a leading manufacturer and supplier of casino table game
 equipment in North America with manufacturing facilities in San Luis, Mexico
 and, to a limited extent, Las Vegas, Nevada.
 
     This press release contains certain forward-looking statements which are
 subject to change.  The actual results may differ materially from those
 described in any forward-looking statements.  Additional information
 concerning potential factors that could affect the company's financial results
 are included in the company's form 10-K for the year ended May 31, 2000 and
 the company's form 10-Q for the third quarter ended February 28, 2001 to be
 filed by April 16, 2001.
 
     PAUL-SON GAMING CORPORATION
     Financial Highlights (Unaudited)
 
                            For the 3 months ended   For the 9 months ended
                          02/28/2001    02/29/2000   02/28/2001   02/29/2000
 
     Revenues             $4,953,000    $6,333,000   $15,374,000  $17,595,000
 
     Cost of revenues      3,851,000     4,607,000    11,956,000   13,181,000
 
     Gross profit          1,102,000     1,726,000     3,418,000    4,414,000
 
     Gross profit percentage   22.2%          27.2%        22.2%        25.1%
 
     Selling, general
      and administrative
      expenses             1,343,000     1,567,000     4,335,000    4,821,000
 
     Operating income
      (loss)                (241,000)      159,000      (917,000)    (407,000)
 
     Other, net              (10,000)      (41,000)      (67,000)     (17,000)
 
     Income (loss) before
      income taxes          (251,000)      118,000      (984,000)    (424,000)
 
     Income tax expense           --            --            --      568,000
 
     Net income (loss)     $(251,000)     $118,000     $(984,000)   $(992,000)
 
     Net income (loss)
      per basic and
      diluted share           $(0.07)        $0.03        $(0.29)      $(0.29)
 
     Weighted average diluted
      common shares
      outstanding          3,449,757     3,453,092     3,450,731    3,454,464
 
 
     Balance Sheet (Unaudited)
 
     ASSETS                                        02/28/2001     05/31/2000
 
     Cash and cash equivalents                       $888,000    $ 2,072,000
     Accounts receivable, net                       2,455,000      2,299,000
     Inventories, net                               2,875,000      4,146,000
     Prepaid expenses and other current assets        237,000        265,000
 
     Total current assets                           6,455,000      8,782,000
 
     Property, plant and equipment, net             8,561,000      8,396,000
     Other assets                                     626,000        578,000
 
     Total assets                                 $15,642,000    $17,756,000
 
     LIABILITIES AND EQUITY
 
     Accounts payable and accrued liabilities      $1,888,000    $ 1,597,000
     Customer deposits                                100,000        199,000
     Income taxes payable                              12,000         23,000
     Current portion of long-term debt                737,000      1,900,000
 
     Total current liabilities                      2,737,000      3,719,000
 
     Long-term debt                                   527,000        667,000
 
     Stockholders' equity                          12,378,000     13,370,000
 
     Total liabilities and stockholders equity    $15,642,000    $17,756,000
 
 

SOURCE Paul-Son Gaming Corporation
    LAS VEGAS, April 13 /PRNewswire/ -- Paul-Son Gaming Corporation
 (Nasdaq: PSON), a leading manufacturer and supplier of casino table game
 equipment in North America, today reported financial results for its third
 quarter and nine months ended February 28, 2001.
     The net loss for the third quarter was $251,000, equal to $.07 per share,
 compared with net income of $118,000, or $.03 per share, for the corresponding
 quarter of the previous fiscal year.  The loss from operations for the quarter
 was $241,000, versus operating income of $159,000 in the prior year period.
 Third quarter sales were $4,953,000, compared to $6,333,000 one year ago.
     Eric P. Endy, chairman and chief executive officer, commented:  "The sales
 climate continued to be challenging in the third quarter.  Casino chip sales
 declined significantly from the prior year, which also put pressure on gross
 margins due to lower production levels.  On a sequential basis, we achieved
 improvement from the second quarter, narrowing loss from operations by 46
 percent despite modestly lower sales.  The company's expense reduction program
 resulted in a decrease of more than $200,000 in selling, general and overhead
 expenses in the most recent quarter, compared with the third quarter of fiscal
 2000."
     For the nine months ended February 28, 2001, the company experienced a net
 loss of $984,000, equal to $.29 per share, virtually unchanged from last
 year's net loss of $992,000, or $.29 per share for the same months of fiscal
 2000. The prior year period included an income tax provision of $568,000,
 which was recorded to fully reserve a deferred tax asset.  The operating
 losses for the nine months ended February 28, 2001 and February 29, 2000 were
 $917,000 and $407,000, respectively.  In the current fiscal year, sales for
 the nine months decreased to $15,374,000 from $17,595,000 a year ago.
     "We are working very hard to improve our sales and further streamline
 operations to reduce costs going forward.  All of these efforts are directed
 at our primary goal of returning the company to profitability," Endy
 concluded.
     Paul-Son is a leading manufacturer and supplier of casino table game
 equipment in North America with manufacturing facilities in San Luis, Mexico
 and, to a limited extent, Las Vegas, Nevada.
 
     This press release contains certain forward-looking statements which are
 subject to change.  The actual results may differ materially from those
 described in any forward-looking statements.  Additional information
 concerning potential factors that could affect the company's financial results
 are included in the company's form 10-K for the year ended May 31, 2000 and
 the company's form 10-Q for the third quarter ended February 28, 2001 to be
 filed by April 16, 2001.
 
     PAUL-SON GAMING CORPORATION
     Financial Highlights (Unaudited)
 
                            For the 3 months ended   For the 9 months ended
                          02/28/2001    02/29/2000   02/28/2001   02/29/2000
 
     Revenues             $4,953,000    $6,333,000   $15,374,000  $17,595,000
 
     Cost of revenues      3,851,000     4,607,000    11,956,000   13,181,000
 
     Gross profit          1,102,000     1,726,000     3,418,000    4,414,000
 
     Gross profit percentage   22.2%          27.2%        22.2%        25.1%
 
     Selling, general
      and administrative
      expenses             1,343,000     1,567,000     4,335,000    4,821,000
 
     Operating income
      (loss)                (241,000)      159,000      (917,000)    (407,000)
 
     Other, net              (10,000)      (41,000)      (67,000)     (17,000)
 
     Income (loss) before
      income taxes          (251,000)      118,000      (984,000)    (424,000)
 
     Income tax expense           --            --            --      568,000
 
     Net income (loss)     $(251,000)     $118,000     $(984,000)   $(992,000)
 
     Net income (loss)
      per basic and
      diluted share           $(0.07)        $0.03        $(0.29)      $(0.29)
 
     Weighted average diluted
      common shares
      outstanding          3,449,757     3,453,092     3,450,731    3,454,464
 
 
     Balance Sheet (Unaudited)
 
     ASSETS                                        02/28/2001     05/31/2000
 
     Cash and cash equivalents                       $888,000    $ 2,072,000
     Accounts receivable, net                       2,455,000      2,299,000
     Inventories, net                               2,875,000      4,146,000
     Prepaid expenses and other current assets        237,000        265,000
 
     Total current assets                           6,455,000      8,782,000
 
     Property, plant and equipment, net             8,561,000      8,396,000
     Other assets                                     626,000        578,000
 
     Total assets                                 $15,642,000    $17,756,000
 
     LIABILITIES AND EQUITY
 
     Accounts payable and accrued liabilities      $1,888,000    $ 1,597,000
     Customer deposits                                100,000        199,000
     Income taxes payable                              12,000         23,000
     Current portion of long-term debt                737,000      1,900,000
 
     Total current liabilities                      2,737,000      3,719,000
 
     Long-term debt                                   527,000        667,000
 
     Stockholders' equity                          12,378,000     13,370,000
 
     Total liabilities and stockholders equity    $15,642,000    $17,756,000
 
 SOURCE  Paul-Son Gaming Corporation