Attached files
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| 8-K - FORM 8-K - Gaming Partners International CORP | v438850_8k.htm |
Exhibit 99.1
Gaming Partners International Corporation Reports Financial Results for the First Quarter of 2015
Las Vegas, NV (PR Newswire) (May 10, 2016) — Gaming Partners International Corporation (NASDAQ: GPIC), a leading worldwide provider of casino currency and table gaming equipment, announced financial results for the first quarter ended March 31, 2016.
For the quarter, the Company posted a net loss of $0.1 million, or $0.01 loss per basic and diluted shares, on revenues of $16.1 million, compared to net income of $2.0 million, or $0.25 per basic share and $0.24 per diluted share, on revenues of $18.7 million, for the comparable quarter of 2015. The decrease in our results for the three months ended March 31, 2016 is primarily due to a decline in orders for casino openings/expansions, the postponement of significant orders to future quarters, and manufacturing capacity constraints in our playing card operation related to significant revenue growth.
“We are disappointed with our overall net income for the first quarter. The shortfall can be partially attributed to the continuing decline of business in the Asian market,” commented Gregory Gronau, GPIC President and Chief Executive Officer. “During the quarter, revenues from consumables increased substantially driven largely by playing cards. Our Blue Springs facility, where all our playing cards are manufactured, experienced some growing pains, as production has had to ramp up beyond full capacity at times, resulting in higher scrap rates that reduced margins during the quarter. We also saw a rise in our sales numbers in Europe.”
Mr. Gronau added, “We are in a market driven industry so we continually look to the future. Our facility expansion in Blue Springs, Missouri will allow us to optimize our manufacturing lines to alleviate the difficulties experienced in the first quarter, providing us the ability to profitably meet growing customer demand. In addition, we have entered into a binding letter of intent to acquire the assets of Dolphin Products Ltd. The acquisition should provide us additional market share in our largest currency market.”
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®, Gemaco® and Bud Jones®, GPIC provides casino currency such as chips, plaques and jetons; playing cards; table layouts; gaming furniture and table accessories; dice; and roulette wheels. GPIC pioneered the use of security features such as radio frequency identification device (RFID) technology in casino currency 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; Blue Springs, Missouri; 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; new products; future share repurchases; 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, 2015, 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.
For more information please contact:
Gregory Gronau, Chief Executive Officer and President
+1.702.384.2425
GAMING PARTNERS INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(in thousands, except share amounts)
| March 31, | December 31, | |||||||
| 2016 | 2015 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 17,754 | $ | 17,788 | ||||
| Marketable securities | 1,712 | 3,503 | ||||||
| Accounts receivable, net | 9,242 | 10,677 | ||||||
| Inventories | 11,148 | 10,199 | ||||||
| Prepaid expenses | 827 | 947 | ||||||
| Deferred income tax assets | 1,943 | 1,640 | ||||||
| Other current assets | 1,954 | 1,576 | ||||||
| Total current assets | 44,580 | 46,330 | ||||||
| Property and equipment, net | 14,431 | 14,102 | ||||||
| Goodwill | 10,292 | 10,292 | ||||||
| Intangible assets, net | 2,436 | 2,505 | ||||||
| Deferred income tax assets | 687 | 710 | ||||||
| Inventories, non-current | 688 | 670 | ||||||
| Other assets, non-current | 2,690 | 2,635 | ||||||
| Total assets | $ | 75,804 | $ | 77,244 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 3,404 | $ | 4,498 | ||||
| Accrued liabilities | 5,194 | 6,456 | ||||||
| Customer deposits and deferred revenue | 3,261 | 2,080 | ||||||
| Current portion of long-term debt | 1,351 | 1,343 | ||||||
| Income taxes payable | 510 | 824 | ||||||
| Total current liabilities | 13,720 | 15,201 | ||||||
| Long-term debt | 7,665 | 8,002 | ||||||
| Deferred income tax liabilities | 168 | 170 | ||||||
| Other liabilities, non-current | - | 83 | ||||||
| Total liabilities | 21,553 | 23,456 | ||||||
| Commitments and contingencies - see Note 8 | ||||||||
| Stockholders' Equity: | ||||||||
| Preferred stock, authorized 10,000,000 shares, $.01 par value, | ||||||||
| none issued and outstanding | - | - | ||||||
| Common stock, authorized 30,000,000 shares, $.01 par value, | ||||||||
| 8,219,577 and 7,928,594 issued and outstanding, respectively, as of March 31, 2016, and December 31, 2015 | 82 | 82 | ||||||
| Additional paid-in capital | 20,031 | 20,033 | ||||||
| Treasury stock at cost: 290,983 shares | (2,263 | ) | (2,263 | ) | ||||
| Retained earnings | 37,732 | 37,812 | ||||||
| Accumulated other comprehensive loss | (1,331 | ) | (1,876 | ) | ||||
| Total stockholders' equity | 54,251 | 53,788 | ||||||
| Total liabilities and stockholders' equity | $ | 75,804 | $ | 77,244 | ||||
GAMING PARTNERS INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in thousands, except per share amounts)
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2016 | 2015 | |||||||
| Revenues | $ | 16,093 | $ | 18,656 | ||||
| Cost of revenues | 12,125 | 12,332 | ||||||
| Gross profit | 3,968 | 6,324 | ||||||
| Marketing and sales | 1,525 | 1,800 | ||||||
| General and administrative | 2,173 | 2,416 | ||||||
| Research and development | 307 | 339 | ||||||
| Operating (loss) income | (37 | ) | 1,769 | |||||
| Other (expense) income, net | (82 | ) | 35 | |||||
| (Loss) income before income taxes | (119 | ) | 1,804 | |||||
| Income tax benefit | (39 | ) | (153 | ) | ||||
| Net (loss) income | $ | (80 | ) | $ | 1,957 | |||
| (Loss) earnings per share: | ||||||||
| Basic | $ | (0.01 | ) | $ | 0.25 | |||
| Diluted | $ | (0.01 | ) | $ | 0.24 | |||
| Weighted-average shares of common stock outstanding: | ||||||||
| Basic | 7,929 | 7,916 | ||||||
| Diluted | 7,929 | 8,025 | ||||||