SHFL entertainment, Inc. Reports Fourth Quarter and Fiscal Year
Ended 2012 Results
LAS VEGAS, Dec. 17, 2012 /PRNewswire/ -- SHFL
entertainment, Inc. (NASDAQ Global Select Market: SHFL)
("SHFL" or the "Company") today announced its results for the
fourth quarter and fiscal year ended October
31, 2012.
(Logo:
http://photos.prnewswire.com/prnh/20121008/LA88315LOGO)
"We had a strong finish to 2012 with record revenue of
$73.6 million in the fourth quarter,
driven by successful execution of our core businesses. For
the fiscal year, 14% growth on the top line, 12% recurring revenue
growth, and 25% growth in adjusted earnings per share demonstrate
yet another year of exceptional performance. All but one of
our product categories witnessed double digit revenue growth;
that's impressive in any environment, and especially in this one,"
said Gavin Isaacs, SHFL's Chief
Executive Officer. "As we communicated throughout the year,
we have been and intend to continue to invest in our business and
look forward to reaping the benefits in the future. Entering
the new fiscal year, we believe we are well-positioned for
sustainable growth as we benefit from continued MD3 card
shuffler placements, global expansion of our slot machine business,
improved e-Table offerings, and meaningful opportunities created
from the power of our specialty table game brands, both in brick
and mortar casinos and online casinos."
Fourth Quarter 2012 Financial Highlights
- Total revenue increased 12% to a record $73.6 million, up from $65.7 million over the prior year period.
- Recurring revenue grew 14% year-over-year to $31.5 million, due to growth in the Utility,
Proprietary Table Game ("PTG"), and Electronic Table Systems
("ETS") segments.
- GAAP net income increased 11% year-over-year to a record
$10.8 million.
- Diluted earnings per share ("EPS") grew 6% year-over-year to
$0.19. This includes approximately
$1.0 million in one-time rebranding
expenses related to the Company's name change and set-up costs
associated with establishing its new international operations in
Gibraltar and Latin
America.
- Gross margin increased 110 basis points year-over-year to 64%,
due to strong PTG recurring revenue growth and improved ETS
performance.
- Operating income margin remained relatively flat year-over-year
at 22%.
- Adjusted EBITDA increased 6% to a record $23.9 million from $22.7
million.
- Selling, general and administrative ("SG&A") expenses
increased $2.9 million year-over-year
to $21.4 million. The increase
primarily came from $1.1 million in
legal expenses such as increased litigation, patent, and trademark
costs. The year-over-year increase was also due to greater
sales and profit-driven commissions and related expenses, in
addition to the establishment of the Company's new international
operations. Greater total marketing costs predominantly
related to the Company's re-branding also contributed to the
increase.
- Research & Development ("R&D") expenses increased
approximately $1.0 million
year-over-year to $9.1 million
largely due to development costs associated with the Company's
iGaming content delivery platform and online versions of its
proprietary table games, and to a lesser extent, product
enhancement initiatives in the Utility segment.
- Free Cash Flow ("FCF")1, a non-GAAP financial
measure, was $12.3 million, a
decrease of 22% year-over-year primarily due to an increase in cash
taxes paid from increased profitability and our Australian
entities' full utilization of net operating losses in fiscal
2011. To a lesser extent, FCF declined due to an increase in
capital expenditures largely related to the development of the
Company's iGaming content delivery platform and its purchase of
servers for its overseas iGaming operations.
Fiscal Year 2012 Financial Highlights
- Revenue increased 14% year-over-year to $259.0 million – a Company record.
- Recurring revenue grew 12%, or $12
million, to $118.2 million and
comprised 46% of total Company revenue.
- The Company paid off its remaining revolving line of credit
balance in the fourth quarter and its cash and cash equivalents
totaled $24.2 million. On
October 31, 2011 the Company's net
debt (total debt less cash and cash equivalents) was $17.1 million.
- Gross margin increased 110 basis points year-over-year to 64%.
The increase was driven by strong growth in recurring and sales
revenue.
- GAAP net income was a Company record at $38.6 million, compared to $31.6 million in fiscal year 2011. Diluted EPS
increased to $0.68 compared to
$0.57 last year. This includes
one-time rebranding costs associated with the Company's name change
and set-up expenses for its new international operations of
approximately $1.0 million.
Excluding the impact of due diligence expenses associated with the
Company's terminated acquisition of Ongame in the fiscal year, EPS
grew 25% to $0.71.
- Operating income margin increased 110 basis points
year-over-year to 21%. Excluding the impact of due diligence
expenses associated with the Company's terminated acquisition of
Ongame in the fiscal year, operating margin was 22%.
- Adjusted EBITDA grew 17% to $87.0
million, a Company record, from $74.7
million in fiscal year 2011.
- SG&A increased $8.8 million,
or 13% year-over-year, to $77.4
million. Greater compensation and related expenses of
$4.1 million primarily drove the
increase as a result of higher sales and profit-driven commissions
and related expenses, in addition to a full year of compensation
for several executive-level positions that were filled in fiscal
2011. $2.2 million in due
diligence expenses from the terminated Ongame acquisition was also
a key contributor to the increase. Greater legal expenses of
$1.5 million from various litigation
matters, as well as regulatory and licensing expenses associated
with the Company's iGaming segment also contributed to the
year-over-year increase. SG&A as a percentage of total
revenue stayed constant at 30%.
- R&D expenses increased 16% year-over-year to $32.2 million. Development of the Company's
iGaming content delivery platform and online versions of
proprietary table games attributed to the increase, in addition to
new title development for the Equinox cabinet. Additional
investment in ETS and Utility also contributed to the
increase.
- FCF was $43.8 million, a decrease
of 9% year-over-year primarily due to a $17.2 million increase in cash taxes paid.
In fiscal 2012, the Company paid cash taxes as a result of greater
profitability across all of its international subsidiaries as well
as the full utilization of net operating losses in Australia.
In fiscal 2011, the Company received a net refund of approximately
$0.5 million.
- International revenue totaled $144.4
million in 2012 compared to $126.8
million 2011, and represents 56% of total Company
revenue.
"We reported another very strong quarter and year both
operationally and financially as we continue to develop and deliver
compelling products to the industry," said Linster Fox, SHFL's Chief Financial Officer.
"With no debt on our revolving line of credit and inventory
turns at the highest they've ever been, our optimization of working
capital helps us fuel growth and create shareholder value.
That growth requires investment in SHFL to capitalize on the
many organic opportunities for the Company, particularly in the
iGaming space and expanding into markets where we're
underrepresented."
Fourth Quarter 2012 Business Segment
Highlights
Utility
- Total Utility recurring revenue grew 8% to $13.8 million. The increase was driven mainly by
the Company's upgrade initiative and new casino openings in
the United States, resulting in
increased MD3, iDeal, and Deckmate card
shuffler lease placements.
- Total Utility revenue grew to $25.0
million, representing a 5% increase over the same period
last year. Strong recurring revenue growth, partially offset by a
decrease in sales revenue, drove growth during the quarter.
- The leased installed base of 8,285 shufflers at the end of the
quarter represented a 9% year-over-year increase.
- Gross margin remained flat year-over-year at 62%.
- The MD3 total installed base increased by 361 units in
the quarter to 1,742. Of the total installed base, 54% of units are
on lease.
Proprietary Table Games
- Total PTG recurring revenue increased 14% year-over-year to
$12.6 million during the fourth
quarter primarily due to increased placements across all PTG
categories: premium table games (Ultimate Texas Hold'em,
Mississippi Stud), progressive units (Fortune Pai Gow
Poker Progressive, Three Card Poker Progressive), and
side bets (Fire Bet, Fortune Pai Gow Poker, Dragon
Bonus).
- Total PTG revenue increased 23% to $13.8
million driven by strong lease placements and to a lesser
extent, increased sales revenue.
- Gross margin increased 220 basis points year-over-year to 83%
due to an increase in total revenues.
- The progressive installed base increased 333 units
year-over-year to 1,193 units overall. Placements of Three Card
Poker Progressive, Fortune Pai Gow Poker Progressive, and Ultimate
Texas Hold'em Progressive drove installs year-over-year.
Electronic Table Systems
- Total ETS recurring revenue grew 33% year-over-year to
$4.9 million due to strong
participation revenue from Table Master and Vegas
Star.
- Total ETS revenue grew to $9.9
million. The 37% year-over-year increase was driven
primarily by sales of Vegas Star Widescreen upgrades
in Australia in addition to the
growth in recurring revenue.
- Gross margin improved substantially year-over-year to 57% due
to an increase in total segment revenue.
Electronic Gaming Machines ("EGM")
- Total EGM revenue grew 6% year-over-year to $24.9 million. The increase was primarily driven
by sales related to the Equinox Super Top Box, the new slot
title The Flintstones in Australia, as well as sales of 88
Fortunes in Asia.
- Gross margin decreased to 58% from 66% in the prior year
period. This was due mainly to higher manufacturing costs in the
current period as well as an increase in outsourced installation
costs related to the Company's expansion into new market segments
in Australia.
- Total EGM placements fell 8% from 1,256 one year ago to 1,151
units. A decrease in Estar units on lease, offset slightly by sales
of Super Top Box units, was the main driver of the
decrease.
Further detail and analysis of the Company's financial results
for the fiscal year ended October 31,
2012, is included in its Form 10-K, which the Company
intends to file with the Securities and Exchange Commission on or
before December 31, 2012.
Webcast & Conference Call Information
Company executives will provide additional perspective on the
Company's fourth quarter and year-end results during a conference
call on December 17, 2012 at
2:00 pm Pacific Time. Those
interested in participating in the call may do so by dialing (201)
689-8263 or toll-free (877) 407-0792 and requesting SHFL
entertainment's Fourth Quarter and Year End 2012 Conference
Call. A hardcopy of the presentation materials may be printed
from the SHFL entertainment, Inc. Investor Relations website,
http://ir.shfl.com, shortly before the start of the call. In
conjunction with the call, a live audio webcast and a Company slide
presentation highlighting fourth quarter performance may be
accessed at http://ir.shfl.com. In order to access the live
audio webcast please allow at least 15 minutes before the start of
the call to visit SHFL entertainment's Investor Relations website
and download/install any necessary audio/video software for the
webcast. Immediately following the call and through
January 17, 2013, a playback can be
heard 24-hours a day by dialing (858) 384-5517 or toll-free (877)
870-5176; account number is 3055; conference I.D. number is 401649.
Highlights from the conference call can be
accessed on the Company's Investor Relations Twitter account,
www.twitter.com/shfl_news.
About SHFL entertainment, Inc.
SHFL entertainment, Inc. is a leading global gaming supplier
committed to making gaming more fun for players and more profitable
for operators through product innovation, and superior quality and
service. The Company operates in legalized gaming markets across
the globe and provides state-of-the-art, value-add products in five
distinct categories: Utility products, which include automatic card
shufflers and roulette chip sorters; Proprietary Table Games, which
includes live games, side bets and progressives; Electronic Table
Systems, which include various e-Table game platforms; Electronic
Gaming Machines, which include video slot machines; and newly
introduced iGaming, which features online versions of SHFL
entertainment's table games, social gaming, and mobile
applications. The Company is included in the S&P SmallCap 600
Index. Information about the Company and its products can be found
on the Internet at www.shfl.com, or on Facebook, Twitter and
YouTube.
Forward Looking Statements
This release contains forward-looking statements within the
"safe harbor" provisions of the Private Securities Litigation
Reform Act of 1995. All statements included in this release other
than statements that are purely historical are forward-looking
statements. Forward-looking statements in this press release
include, without limitation: (a) the Company's ability to sustain
its growth through successfully implementing its strategic, growth,
and operational initiatives; (b) the Company's belief that EPS,
Adjusted EBITDA and Free Cash Flow are useful widely referenced
performance measures in the Company's industry and the Company's
belief that references to them are helpful to investors; (c) the
Company's estimates of diluted EPS and Adjusted EBITDA and the
assumptions upon which they are based; (d) the Company's belief
that growth requires organic investment in the Company; (e) the
Company's ability to develop products that achieve commercial
success in the very competitive marketplace in which the Company
operates; (f) the fact that the Company competes in a single
industry and is dependent on the success of its customers and the
risks that impact the Company's customers, including a change in
demand for gaming, a downturn in general worldwide economic
conditions, or the gaming industry may adversely impact the Company
or its results of operations. The Company's beliefs, expectations,
forecasts, objectives, anticipations, intentions and strategies
regarding the future, including without limitation those concerning
expected operating results, revenues and earnings are not
guarantees of future performance and are subject to risks and
uncertainties that could cause actual results to differ materially
from results contemplated by the forward-looking statements,
including but not limited to: (a) inability to accomplish the
Company's innovation objectives or unexpected factors that limit or
eliminate the Company's ability to implement its strategic and
operational plans or undertake or complete any of its growth
initiatives including the rollout of the revamped e-Tables or its
suite of new live and online games; (b) inaccuracies in the
Company's assumptions as to the financial measures that investors
use or the manner in which such financial measures may be used by
such investors; (c) reduced demand for or increased competition
with the Company's products that affects its EPS and Adjusted
EBITDA; (d) the Company's inability to suitably manage its organic
growth; (e) the Company's inability to accurately gauge the
commercial appeal of its products; and (f) unexpected changes in
the market and economic conditions and reduced demand for or
increased competition with the Company's products. Additional
information on risk factors that could potentially affect the
Company's financial results may be found in documents filed by the
Company with the Securities and Exchange Commission, including the
Company's current reports on Form 8-K, quarterly reports on Form
10-Q and its latest annual report on Form 10-K, and are based on
information available to the Company on the date hereof. The
Company does not intend, and assumes no obligation, to update any
forward-looking statements. Readers are cautioned not to place
undue reliance on forward-looking statements, which speak only as
of the date of this press release.
1 Free Cash Flow is Adjusted EBITDA less capital
expenditures and cash paid for taxes.
|
|
|
SHFL
ENTERTAINMENT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
(In
thousands, except per share amounts)
(Unaudited)
|
|
|
|
|
Three Months Ended
|
Twelve Months Ended
|
|
October 31,
|
|
October 31,
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
Revenue:
|
|
|
|
|
|
|
|
Product leases and royalties
|
$29,549
|
|
$25,744
|
|
$110,279
|
|
$98,369
|
Product sales and service
|
44,005
|
|
40,002
|
|
148,768
|
|
129,402
|
Total
revenue
|
73,554
|
|
65,746
|
|
259,047
|
|
227,771
|
Costs
and expenses:
|
|
|
|
|
|
|
|
Cost of leases and royalties
|
9,860
|
|
9,583
|
|
37,713
|
|
34,089
|
Cost of sales and service
|
16,888
|
|
15,092
|
|
56,196
|
|
51,127
|
Gross
profit
|
46,806
|
|
41,071
|
|
165,138
|
|
142,555
|
Selling, general and administrative
|
21,448
|
|
18,532
|
|
77,439
|
|
68,609
|
Research and development
|
9,106
|
|
8,134
|
|
32,180
|
|
27,628
|
Total
costs and expenses
|
57,302
|
|
51,341
|
|
203,528
|
|
181,453
|
|
|
|
|
|
|
|
|
Income
from operations
|
16,252
|
|
14,405
|
|
55,519
|
|
46,318
|
|
|
|
|
|
|
|
|
Other
income (expense)
|
|
|
|
|
|
|
|
Interest income
|
146
|
|
206
|
|
575
|
|
635
|
Interest expense
|
(297)
|
|
(605)
|
|
(1,519)
|
|
(2,636)
|
Other, net
|
(324)
|
|
(493)
|
|
(115)
|
|
(997)
|
Total
other income (expense)
|
(475)
|
|
(892)
|
|
(1,059)
|
|
(2,998)
|
Income
from operations before tax
|
15,777
|
|
13,513
|
|
54,460
|
|
43,320
|
Income
tax provision
|
4,979
|
|
3,799
|
|
15,854
|
|
11,730
|
Net
income
|
$10,798
|
|
$
9,714
|
|
$
38,606
|
|
$31,590
|
|
|
|
|
|
|
|
|
Basic
earnings per share:
|
$
0.19
|
|
$
0.18
|
|
$
0.69
|
|
$
0.58
|
Diluted
earnings per share:
|
$
0.19
|
|
$
0.18
|
|
$
0.68
|
|
$
0.57
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
Basic
|
56,444
|
|
54,425
|
|
55,884
|
|
54,344
|
Diluted
|
57,185
|
|
54,959
|
|
56,628
|
|
54,997
|
|
|
|
|
|
|
|
|
|
|
|
|
SHFL
ENTERTAINMENT, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In
thousands, except per share amounts)
(Unaudited)
|
|
|
|
|
|
|
|
October 31,
|
|
|
|
2012
|
|
2011
|
|
|
|
(In thousands, except per share
amounts)
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and
cash equivalents
|
$24,160
|
|
$22,189
|
|
Accounts
receivable, net of allowance for bad debts of $491 and
$402
|
45,708
|
|
39,713
|
|
Investment
in sales-type leases and notes receivable, net of
allowance for bad
debts of $8 and $44
|
9,287
|
|
5,006
|
|
Inventories
|
21,906
|
|
24,335
|
|
Prepaid
income taxes
|
4,053
|
|
3,279
|
|
Deferred
income taxes
|
4,622
|
|
4,911
|
|
Other
current assets
|
6,901
|
|
4,291
|
|
|
Total
current assets
|
116,637
|
|
103,724
|
Investment in sales-type leases and notes
receivable, net of current portion and net
of allowance for bad debts of $0 and $5
|
6,310
|
|
3,704
|
Products leased and held for lease,
net
|
34,639
|
|
35,196
|
Property and equipment, net
|
17,417
|
|
12,849
|
Intangible assets, net
|
62,836
|
|
66,517
|
Goodwill
|
84,950
|
|
85,392
|
Deferred income taxes
|
5,183
|
|
3,038
|
Other
assets
|
3,079
|
|
2,467
|
Total
assets
|
$331,051
|
|
$312,887
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$6,702
|
|
$5,001
|
|
Accrued
liabilities and other current liabilities
|
22,402
|
|
21,135
|
|
Deferred
income taxes
|
16
|
|
96
|
|
Customer
deposits
|
3,383
|
|
3,407
|
|
Income tax
payable
|
4,179
|
|
2,595
|
|
Deferred
revenue
|
4,799
|
|
3,862
|
|
Current
portion of long-term debt
|
-
|
|
508
|
|
|
Total
current liabilities
|
41,481
|
|
36,604
|
Long-term debt, net of current
portion
|
1,303
|
|
38,757
|
Other
long-term liabilities
|
2,004
|
|
2,969
|
Deferred income taxes
|
1,493
|
|
942
|
|
|
Total
liabilities
|
46,281
|
|
79,272
|
Commitments and Contingencies (See Note
15)
|
|
|
|
Shareholders' equity:
|
|
|
|
|
Common
stock, $0.01 par value; 153,368 shares
authorized; 55,973 and
54,196 shares issued and outstanding
|
560
|
|
542
|
|
Additional
paid-in capital
|
135,758
|
|
114,306
|
|
Retained
earnings
|
119,444
|
|
80,838
|
|
Accumulated other comprehensive
income
|
29,008
|
|
37,929
|
|
|
Total
shareholders' equity
|
284,770
|
|
233,615
|
Total
liabilities and shareholders' equity
|
$331,051
|
|
$312,887
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHFL
ENTERTAINMENT, INC.
SUPPLEMENTAL DATA
(Unaudited, in thousands)
|
|
|
|
|
|
FINANCIAL DATA
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
October 31,
|
|
October 31,
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
Cash
Flow Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash provided by operating activities
|
$
15,243
|
|
$
27,277
|
|
$
51,111
|
|
$
63,969
|
|
|
|
|
|
|
|
|
Cash used in investing activities:
|
|
|
|
|
|
|
|
Payments
for products leased and held for lease
|
$
(2,398)
|
|
$
(4,988)
|
|
$(13,625)
|
|
$(16,596)
|
Purchases
of property and equipment
|
(2,427)
|
|
(847)
|
|
(8,279)
|
|
(3,530)
|
Purchases
of intangible assets
|
(217)
|
|
(549)
|
|
(4,550)
|
|
(6,818)
|
Acquisition of business
|
-
|
|
-
|
|
(5,500)
|
|
(6,499)
|
Proceeds
from sale of leased assets
|
845
|
|
1,162
|
|
2,485
|
|
7,402
|
Proceeds
from sale of assets
|
-
|
|
(4)
|
|
-
|
|
82
|
Other
|
(795)
|
|
(227)
|
|
(1,485)
|
|
(928)
|
|
$
(4,992)
|
|
$
(5,453)
|
|
$(30,954)
|
|
$(26,887)
|
|
|
|
|
|
|
|
|
Cash provided by (used in) financing activities
|
$(13,847)
|
|
$(29,159)
|
|
$(19,282)
|
|
$(24,736)
|
|
|
|
|
|
|
|
|
Free cash flow (2)
|
$
12,311
|
|
$
15,876
|
|
$
43,817
|
|
$
48,223
|
|
|
|
|
|
|
|
|
Reconciliation of net income to Adjusted
EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
$
10,798
|
|
$
9,714
|
|
38,606
|
|
$
31,590
|
Other expense (income)
|
475
|
|
892
|
|
1,059
|
|
2,998
|
Share-based compensation
|
1,107
|
|
1,069
|
|
4,170
|
|
3,253
|
Income tax provision
|
4,979
|
|
3,799
|
|
15,854
|
|
11,730
|
Depreciation and amortization
|
6,547
|
|
7,184
|
|
25,204
|
|
25,135
|
Ongame Acquisition Expenses
|
-
|
|
-
|
|
2,152
|
|
-
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (1)
|
$
23,906
|
|
$
22,658
|
|
$
87,045
|
|
$
74,706
|
|
|
|
|
|
|
|
|
Adjusted EBITDA margin
|
32.5%
|
|
34.5%
|
|
33.6%
|
|
32.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.
|
Adjusted
EBITDA is earnings before other expense (income), provision for
income taxes, depreciation and amortization expense, Ongame
acquisition expenses, and share-based compensation. Adjusted
EBITDA is presented exclusively as a supplemental disclosure
because management believes that it is a useful performance measure
and is widely used to measure performance, and as a basis for
valuation, within the Company's industry. Adjusted EBITDA is not
calculated in the same manner by all companies and, accordingly,
may not be an appropriate measure for comparison. Management
uses Adjusted EBITDA as a measure of the operating performance and
to compare the operating performance with those of its
competitors. The Company also presents Adjusted EBITDA
because it is used by some investors as a way to measure a
company's ability to incur and service debt, make capital
expenditures and meet working capital requirements. Gaming
equipment suppliers have historically reported Adjusted EBITDA as a
supplement to financial measures in accordance with U.S. generally
accepted accounting principles ("GAAP"). Adjusted EBITDA
should not be considered as an alternative to operating income
(loss), as an indicator of the Company's performance, as an
alternate to cash flows from operating activities, as a measure of
liquidity, or as an alternative to any other measure determined in
accordance with GAAP. Unlike net income (loss), Adjusted
EBITDA does not include depreciation and amortization or interest
expense and therefore does not reflect current or future capital
expenditures or the cost of capital. The Company compensates
for these limitations by using Adjusted EBITDA as only one of
several comparative tools, together with GAAP measurements, to
assist in the evaluation of operating performance. Such GAAP
measurements include operating income (loss), net income (loss),
cash flows from operations and cash flow data. The Company
has significant uses of cash flows, including capital expenditures,
interest payments, debt principal repayments, taxes and other
non-recurring charges, which are not reflected in Adjusted
EBITDA.
|
2.
|
Free cash
flow is Adjusted EBITDA less capital expenditures and cash paid for
taxes.
|
|
|
|
|
|
|
SHFL
ENTERTAINMENT, INC.
BUSINESS SEGMENT DATA
(Unaudited, in thousands)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
|
October
31,
|
|
October
31,
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
Utility:
|
|
|
|
|
|
|
|
|
Revenue
|
$
24,977
|
|
$
23,834
|
|
$
93,965
|
|
$
82,942
|
|
Gross
profit
|
15,362
|
|
14,689
|
|
57,984
|
|
49,973
|
|
Gross
margin
|
61.5%
|
|
61.6%
|
|
61.7%
|
|
60.3%
|
|
|
|
|
|
|
|
|
|
|
Proprietary Table Games:
|
|
|
|
|
|
|
|
|
Revenue
|
$
13,823
|
|
$
11,220
|
|
$
52,446
|
|
$
43,986
|
|
Gross
profit
|
11,435
|
|
9,032
|
|
43,429
|
|
35,370
|
|
Gross
margin
|
82.7%
|
|
80.5%
|
|
82.8%
|
|
80.4%
|
|
|
|
|
|
|
|
|
|
|
Electronic Table Systems:
|
|
|
|
|
|
|
|
|
Revenue
|
$
9,859
|
|
$
7,216
|
|
$
31,042
|
|
$
33,937
|
|
Gross
profit
|
5,604
|
|
1,880
|
|
14,472
|
|
14,564
|
|
Gross
margin
|
56.8%
|
|
26.1%
|
|
46.6%
|
|
42.9%
|
|
|
|
|
|
|
|
|
|
|
Electronic Gaming Machines:
|
|
|
|
|
|
|
|
|
Revenue
|
$
24,895
|
|
$
23,476
|
|
$
81,594
|
|
$
66,906
|
|
Gross
profit
|
14,405
|
|
15,470
|
|
49,253
|
|
42,648
|
|
Gross
margin
|
57.9%
|
|
65.9%
|
|
60.4%
|
|
63.7%
|
|
|
|
|
|
|
|
|
|
|
Total:
|
|
|
|
|
|
|
|
|
Revenue
|
$
73,554
|
|
$
65,746
|
|
$
259,047
|
|
$
227,771
|
|
Gross
profit
|
46,806
|
|
41,071
|
|
165,138
|
|
142,555
|
|
Gross
margin
|
63.6%
|
|
62.5%
|
|
63.7%
|
|
62.6%
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
as a
percentage of total revenue
|
32.5%
|
|
34.5%
|
|
33.6%
|
|
32.8%
|
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
|
|
|
|
|
|
|
|
as a
percentage of total revenue
|
22.1%
|
|
21.9%
|
|
21.4%
|
|
20.3%
|
|
|
|
|
|
|
|
|
|
|
SOURCE SHFL entertainment, Inc.