LAS VEGAS, Nov. 8, 2013 /PRNewswire/ -- Gaming Partners
International Corporation (NASDAQ: GPIC), a leading worldwide
provider of casino currency and table gaming equipment, announced
financial results for the third quarter and nine months ended
September 30, 2013.
(Logo: http://photos.prnewswire.com/prnh/20110512/LA99804LOGO)
During the third quarter ended September
30, 2013, the Company posted a net income of $83,000, or $0.01
per basic and diluted share, compared to net income of $1.3 million, or $0.16 per basic share and $0.15 per diluted share, for the third quarter of
2012. During the first nine months of 2013, the Company posted net
income of $0.6 million, or
$0.07 per basic and diluted share,
compared to net income of $4.3
million, or $0.53 per basic
and diluted share, for the first nine months of 2012. The decrease
in earnings for the third quarter and first nine months of 2013 was
caused by lower casino currency sales and higher selling,
administrative, and research and development expenses.
During the third quarter of 2013, the Company had revenues of
$13.5 million, compared to revenues
of $16.9 million in the third quarter
of 2012. The primary reason for the decrease in revenue was a
decrease in casino currency sales in the Asia-Pacific region.
During the first nine months of 2013, the Company posted
revenues of $42.4 million compared to
revenues of $45.4 million in the
first nine months of 2012. Gross profit for the first nine months
of 2013 was $13.1 million, or 31% of
revenues, compared to $15.6 million,
or 34% of revenues, in the same period of the prior year. The
primary reason for the decrease in revenue in the first nine months
of 2013, compared to the first nine months of 2012, was fewer
casino openings in 2013 compared to 2012.
Our gross profit decrease in the first nine months of 2013,
compared with the first nine months of 2012, is primarily related
to: (1) a shift in our mix of revenues from our higher-margin
casino currency products toward lower-margin products such as
cards; and (2) a large imbalance in product demand in the first
quarter of 2013, which significantly affected the utilization of
our production facilities, resulting in one production facility
incurring significant overtime and the other to have low
utilization rates.
The Company ended the third quarter with $19.3 million in cash, cash equivalents and
marketable securities and no debt. During the third quarter of
2013, the Company purchased 15,869 shares of its common stock under
the current repurchase authorization at a cost of $127,517. As permitted by the Plan, on
August 5, 2013, the Board of
Directors elected to terminate the Plan effective August 12, 2013.
"Our results for both the quarter and the nine months are
disappointing," commented Greg
Gronau, GPIC President and Chief Executive Officer. "While
the smaller number of casino openings has certainly hurt, efforts
to better balance production, develop and get regulatory approval
for new product offerings have not progressed as quickly as we
anticipated. On the positive side, we have increased revenues from
sales of RFID solutions and have increased market share in cards
and other consumables, a source of recurring revenue not contingent
on new casino openings."
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® and Bud Jones®, GPIC provides casino currency
such as chips, plaques and jetons; gaming furniture and table
accessories; table layouts; playing cards; dice; and roulette
wheels. GPIC pioneered the use of security features such as radio
frequency identification device (RFID) technology in casino chips
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; 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
future share repurchases; new products; anticipated future sales or
the timing thereof; fulfillment of product orders; 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, 2012, 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.
GAMING PARTNERS
INTERNATIONAL CORPORATION
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(unaudited)
|
(in thousands, except
share amounts)
|
|
|
|
|
September
30,
|
|
December
31,
|
|
|
|
2013
|
|
2012
|
ASSETS
|
|
|
|
Current
Assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
12,877
|
|
$
14,038
|
|
Marketable
securities
|
6,430
|
|
13,546
|
|
Accounts receivable,
net
|
6,758
|
|
5,802
|
|
Inventories
|
7,763
|
|
7,337
|
|
Prepaid
expenses
|
1,027
|
|
893
|
|
Deferred income tax
asset
|
1,407
|
|
2,908
|
|
Other current
assets
|
2,280
|
|
1,311
|
|
Total current assets
|
|
38,542
|
|
45,835
|
Property and
equipment, net
|
11,283
|
|
11,190
|
Intangibles,
net
|
1,015
|
|
540
|
Deferred income tax
asset
|
3,590
|
|
3,857
|
Inventories,
non-current
|
136
|
|
207
|
Other
assets
|
1,579
|
|
1,653
|
|
Total assets
|
|
$
56,145
|
|
$
63,282
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
Liabilities:
|
|
|
|
|
Accounts
payable
|
$
2,488
|
|
$
2,842
|
|
Accrued
liabilities
|
2,997
|
|
5,179
|
|
Customer deposits and
deferred revenue
|
1,668
|
|
3,037
|
|
Deferred income tax
liability
|
-
|
|
2,858
|
|
Income taxes
payable
|
244
|
|
571
|
|
Total current liabilities
|
|
7,397
|
|
14,487
|
Deferred income tax
liability
|
2,246
|
|
2,174
|
|
Total liabilities
|
|
9,643
|
|
16,661
|
Commitments and
contingencies
|
|
|
|
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,
|
|
|
|
|
8,207,077 and
7,916,094 issued and outstanding, respectively,
|
|
|
|
|
as of September 30,
2013, and 8,207,077 and 8,045,904 issued
|
|
|
|
|
and outstanding,
respectively, as of December 31, 2012
|
82
|
|
82
|
Additional paid-in capital
|
19,731
|
|
19,563
|
Treasury
stock at cost: 290,983 and 161,173 shares
|
(2,263)
|
|
(1,250)
|
Retained
earnings
|
27,601
|
|
27,039
|
Accumulated other comprehensive income
|
1,351
|
|
1,187
|
|
Total stockholders' equity
|
|
46,502
|
|
46,621
|
|
Total liabilities and stockholders' equity
|
|
$
56,145
|
|
$
63,282
|
GAMING PARTNERS
INTERNATIONAL CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(unaudited)
|
(in thousands, except
per share amounts)
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
Revenues
|
$ 13,519
|
|
$ 16,939
|
|
$ 42,433
|
|
$ 45,394
|
Cost of
revenues
|
9,095
|
|
11,454
|
|
29,343
|
|
29,745
|
|
Gross
profit
|
4,424
|
|
5,485
|
|
13,090
|
|
15,649
|
|
|
|
|
|
|
|
|
|
Marketing and
sales
|
1,683
|
|
1,413
|
|
4,692
|
|
4,239
|
General and
administrative
|
2,249
|
|
2,140
|
|
6,730
|
|
5,338
|
Research and
development
|
467
|
|
405
|
|
1,495
|
|
1,237
|
|
Operating
income
|
25
|
|
1,527
|
|
173
|
|
4,835
|
Other income and
(expense), net
|
(8)
|
|
185
|
|
30
|
|
313
|
|
Income before
income taxes
|
17
|
|
1,712
|
|
203
|
|
5,148
|
Income tax provision
(benefit)
|
(66)
|
|
455
|
|
(359)
|
|
809
|
|
Net
income
|
$
83
|
|
$
1,257
|
|
$
562
|
|
$
4,339
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
Basic
|
$
0.01
|
|
$
0.16
|
|
$
0.07
|
|
$
0.53
|
|
Diluted
|
$
0.01
|
|
$
0.15
|
|
$
0.07
|
|
$
0.53
|
Weighted-average
shares of common stock outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
7,917
|
|
8,105
|
|
7,950
|
|
8,132
|
|
Diluted
|
8,001
|
|
8,113
|
|
8,033
|
|
8,152
|
For Further Information Contact:
Michael D. Mann, Chief Financial
Officer and Treasurer
PH: 702.384.2425
FX: 702.384.1965
SOURCE Gaming Partners International Corporation