Attached files
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| 8-K - 8-K - Gaming Partners International CORP | v232071_8k.htm |
Exhibit 99.1
Gaming Partners International Corporation Reports Financial Results
For the Second Quarter and First Six Months of 2011
Las Vegas, Nevada, August 15, 2011– 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.
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 share amounts)
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June 30,
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December 31,
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2011
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2010
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ASSETS
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Current Assets:
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Cash and cash equivalents
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$ | 9,781 | $ | 11,400 | ||||
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Marketable securities
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17,312 | 18,350 | ||||||
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Accounts receivable, net
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5,037 | 6,838 | ||||||
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Inventories
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8,905 | 7,160 | ||||||
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Prepaid expenses
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734 | 790 | ||||||
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Deferred income tax asset
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496 | 949 | ||||||
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Other current assets
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1,148 | 1,578 | ||||||
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Total current assets
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43,413 | 47,065 | ||||||
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Property and equipment, net
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12,646 | 11,926 | ||||||
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Intangibles, net
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723 | 782 | ||||||
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Deferred income tax asset
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1,512 | 1,108 | ||||||
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Inventories, non-current
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460 | 496 | ||||||
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Other assets, net
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435 | 430 | ||||||
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Total assets
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$ | 59,189 | $ | 61,807 | ||||
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Current Liabilities:
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Short-term debt
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$ | 16 | $ | 6,696 | ||||
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Accounts payable
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2,452 | 3,216 | ||||||
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Accrued liabilities
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6,217 | 6,204 | ||||||
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Customer deposits
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4,634 | 3,919 | ||||||
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Income taxes payable
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221 | 273 | ||||||
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Total current liabilities
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13,540 | 20,308 | ||||||
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Long-term debt
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24 | 32 | ||||||
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Deferred income tax liability
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595 | 491 | ||||||
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Other liabilities
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45 | 41 | ||||||
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Total liabilities
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14,204 | 20,872 | ||||||
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Stockholders' Equity:
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Preferred stock, authorized 10,000,000 shares, $.01 par value, none issued or outstanding
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- | - | ||||||
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Common stock, authorized 30,000,000 shares, $.01 par value, 8,199,016 issued and outstanding
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82 | 82 | ||||||
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Additional paid-in capital
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19,298 | 19,196 | ||||||
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Treasury stock, at cost; 8,061 shares
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(196 | ) | (196 | ) | ||||
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Retained earnings
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22,906 | 20,269 | ||||||
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Accumulated other comprehensive income
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2,895 | 1,584 | ||||||
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Total stockholders' equity
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44,985 | 40,935 | ||||||
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Total liabilities and stockholders' equity
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$ | 59,189 | $ | 61,807 | ||||
GAMING PARTNERS INTERNATIONAL CORPORATION
(unaudited)
(in thousands, except per share amounts)
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Three Months Ended
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Six Months Ended
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June 30
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June 30
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2011
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2010
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2011
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2010
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Revenues
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$ | 14,791 | $ | 19,906 | $ | 32,612 | $ | 30,851 | ||||||||
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Cost of revenues
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10,180 | 11,321 | 21,750 | 18,595 | ||||||||||||
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Gross profit
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4,611 | 8,585 | 10,862 | 12,256 | ||||||||||||
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Marketing and sales
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1,213 | 1,190 | 2,410 | 2,275 | ||||||||||||
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General and administrative
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2,293 | 2,842 | 4,845 | 5,437 | ||||||||||||
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Operating income
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1,105 | 4,553 | 3,607 | 4,544 | ||||||||||||
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Other income and (expense)
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121 | 92 | 231 | 155 | ||||||||||||
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Income before income taxes
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1,226 | 4,645 | 3,838 | 4,699 | ||||||||||||
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Income tax provision
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318 | 1,979 | 1,201 | 1,996 | ||||||||||||
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Net income
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$ | 908 | $ | 2,666 | $ | 2,637 | $ | 2,703 | ||||||||
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Earnings per share:
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Basic
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$ | 0.11 | $ | 0.33 | $ | 0.32 | $ | 0.33 | ||||||||
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Diluted
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$ | 0.11 | $ | 0.32 | $ | 0.32 | $ | 0.33 | ||||||||
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Weighted-average shares of common stock outstanding:
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Basic
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8,199 | 8,199 | 8,199 | 8,199 | ||||||||||||
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Diluted
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8,225 | 8,207 | 8,223 | 8,205 | ||||||||||||