UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
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QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES |
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For the Quarterly Period Ended: June 30, 2004 |
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OR |
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TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES |
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For the transition period from to |
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Commission file number: 0-23588 |
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PAUL-SON GAMING CORPORATION |
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(Exact name of registrant as specified in its charter) |
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NEVADA |
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88-0310433 |
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(State or
other jurisdiction |
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(I.R.S. Employer Identification No.) |
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1700 S. Industrial Road, |
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89102 |
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(Address of principal executive offices) |
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(Zip Code) |
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(702) 384-2425 |
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(Registrant’s telephone number, including area code) |
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Not Applicable |
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(Former name, former address and former fiscal year, if changed since last report) |
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 126-2 of the Exchange Act). Yes o No ý
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. 7,594,900 shares of Common Stock, $0.01 par value, outstanding as of August 10, 2004.
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
PAUL-SON GAMING CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(dollars in thousands)
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JUNE 30, |
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DECEMBER 31, |
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ASSETS |
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Current Assets: |
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Cash and cash equivalents |
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$ |
5,298 |
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$ |
4,186 |
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Marketable securities |
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3,955 |
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2,580 |
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Accounts receivables, less allowance for doubtful accounts of $245 and $382, respectively |
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4,218 |
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3,417 |
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Inventories |
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5,500 |
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5,382 |
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Prepaid expenses |
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372 |
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490 |
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Deferred tax asset |
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160 |
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24 |
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Other current assets |
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519 |
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467 |
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Total current assets |
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20,022 |
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16,546 |
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Property and equipment, net |
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8,978 |
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8,658 |
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Goodwill, net |
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1,374 |
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1,374 |
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Other intangibles, net |
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1,738 |
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1,897 |
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Other assets, net |
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494 |
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121 |
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Total Assets |
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$ |
32,606 |
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$ |
28,596 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current Liabilities: |
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Current maturities of long term debt |
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$ |
1,002 |
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$ |
2,609 |
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Accounts payable |
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2,642 |
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2,135 |
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Accrued expenses |
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2,696 |
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2,103 |
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Customer deposits |
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2,354 |
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1,601 |
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Income taxes payable |
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1,293 |
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297 |
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Other current liabilities |
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194 |
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474 |
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Total current liabilities |
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10,181 |
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9,219 |
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Long term debt, less current maturities |
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3,164 |
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1,563 |
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Deferred tax liability |
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69 |
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— |
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Total liabilities |
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13,414 |
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10,782 |
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Commitments and contingencies |
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Stockholders’ Equity: |
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Preferred stock, authorized 10,000,000 shares, $.01 par value, none issued and outstanding |
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— |
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— |
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Common stock, authorized 30,000,000 shares, $.01 par value, 7,594,900 shares issued and outstanding |
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76 |
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76 |
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Additional paid-in capital |
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14,253 |
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14,253 |
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Treasury stock, at cost; 27,293 shares |
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(196 |
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(196 |
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Retained earnings |
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4,081 |
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2,611 |
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Accumulated other comprehensive income |
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978 |
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1,070 |
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Total stockholders’ equity |
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19,192 |
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17,814 |
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Total Liabilities and Stockholders’ Equity |
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$ |
32,606 |
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$ |
28,596 |
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See notes to unaudited condensed consolidated financial statements.
1
PAUL-SON GAMING CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(dollars in thousands, except per share amounts)
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THREE MONTHS ENDED |
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SIX MONTHS ENDED |
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2004 |
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2003 |
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2004 |
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2003 |
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Revenues |
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$ |
14,843 |
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$ |
10,371 |
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$ |
22,170 |
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$ |
18,131 |
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Cost of revenues |
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8,195 |
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5,902 |
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12,844 |
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11,286 |
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Gross profit |
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6,648 |
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4,469 |
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9,326 |
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6,845 |
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Product development |
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32 |
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39 |
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72 |
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69 |
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Marketing and sales |
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1,050 |
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784 |
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1,915 |
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1,402 |
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Depreciation and amortization |
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486 |
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511 |
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980 |
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1,030 |
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General and administrative |
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2,025 |
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1,913 |
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3,738 |
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3,652 |
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Total operating expenses |
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3,593 |
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3,247 |
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6,705 |
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6,153 |
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Income from operations |
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3,055 |
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1,222 |
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2,621 |
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692 |
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Other income (expense) |
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(4 |
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111 |
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27 |
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2 |
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Interest expense |
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(64 |
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(68 |
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(132 |
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(137 |
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Income before income taxes |
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2,987 |
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1,265 |
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2,516 |
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557 |
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Income tax benefit (expense) |
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(1,047 |
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(68 |
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(1,046 |
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Net income |
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$ |
1,940 |
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$ |
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