GPIC Gaming Partners International Corp.

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of

The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported) August 12, 2014

 

Gaming Partners International Corporation

(Exact name of registrant as specified in its charter)

 

Nevada	0-23588	88-0310433
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	Identification No.)

 

1700 Industrial Road, Las Vegas, Nevada		89102
(Address of principal executive offices)		(Zip Code)

 

Registrant’s telephone number, including area code (702) 384-2425

 

(Former name or former address, if changed since last report.)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

o

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

Item 2.02

Results of Operations and Financial Condition.

 

Attached as Exhibit 99.1 and incorporated herein by reference is a copy of a press release dated August 12, 2014 reporting the Company’s financial results for the three and six months ended June 30, 2014. The information set forth under this Item 2.02 is intended to be furnished under this Item 2.02. Such information, including Exhibit 99.1 attached to this Form 8-K, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.

 

Item 9.01

Financial Statements and Exhibits.

 

(d) Exhibits.

 

Exhibit 99.1

Press release dated August 12, 2014.

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

	Gaming Partners International Corporation
Date:  August 12, 2014
	By:	/s/ Gregory S. Gronau
		Gregory S. Gronau
		President, Chief Executive Officer, Treasurer and Secretary

 

 

EXHIBIT INDEX

 

Exhibit No.		Description
Exhibit 99.1		Press release dated August 12, 2014.

 

 

  

Exhibit 99.1

 

Gaming Partners International Corporation Reports Financial Results for the Second Quarter and First Six Months of 2014

 

Las Vegas, NV (PR Newswire) (August 12, 2014) — Gaming Partners International Corporation (NASDAQ: GPIC), a leading worldwide provider of casino currency and table gaming equipment, announced financial results for the second quarter and six months ended June 30, 2014.

 

During the second quarter ended June 30, 2014, the Company posted a net loss of $1.2 million, or ($0.15) per basic and diluted share, compared to a net loss of $0.1 million, or ($0.01) per basic and diluted share, for the second quarter of 2013. During the first six months of 2014, the Company posted a net loss of $2.3 million, or ($0.29) per basic and diluted share, compared to net income of $0.5 million, or $0.06 per basic and diluted share, for the year ended 2013. The decrease in net income for the second quarter and the first six months of 2014 was due to a decrease in sales of our currency products which caused fixed manufacturing costs to be allocated over a lower revenue base, offset by a reduction in selling, administrative and research and development expenses.

 

During the second quarter of 2014, the Company had revenues of $10.2 million, compared to revenues of $14.1 million in the second quarter of 2013. During the first six months of 2014, the Company had revenues of $20.8 million, compared to revenues of $28.9 million in the same period of prior year. The decrease in revenues was mainly due to a reduction in worldwide casino currency sales in 2014 compared to 2013, caused by the lack of openings/ expansions in 2014.

 

“We do not anticipate that we will benefit from any casino openings in the remainder of 2014,” commented Greg Gronau, GPIC President, Chief Executive Officer, Treasurer and Secretary. “We have received a significant order to supply new chips and plaques for a casino expansion in Macau. The order includes nearly 900,000 chips and over 137,000 plaques from the Company's Bourgogne et Grasset® and Bud Jones® brands totaling just under $6.4 million of revenue which should be recognized in the remainder of 2014. In addition, the acquisition of the gaming assets of GemGroup will add the Gemaco® brand playing cards and table layouts to our domestic product portfolio and increase our US market share in both products. It also adds the manufacturing and sale of layouts to our Asia Pacific product offerings.”

 

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®, Bud Jones® and Gemaco®, 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 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 future share repurchases; potential acquisitions and the successful integration of acquired businesses; 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; the duration or effects of unfavorable economic conditions which may reduce our sales; 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, 2013, 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, President, Chief Executive Officer, Treasurer and Secretary

+1.702.384.2425

investorrelations@gpigaming.com

 

 

GAMING PARTNERS INTERNATIONAL CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

(in thousands, except share amounts)

 

		June 30,				December 31,
		2014				2013
ASSETS
Current Assets:
Cash and cash equivalents		$	15,517			$	14,492
Marketable securities			4,989				5,724
Accounts receivable, net			4,195				5,905
Inventories			8,110				7,407
Prepaid expenses			838				965
Deferred income tax asset			630				628
Restricted Cash			10,000				-
Other current assets			2,438				3,054
Total current assets			46,717				38,175
Property and equipment, net			10,139				10,996
Intangibles, net			923				985
Deferred income tax asset			3,264				3,643
Inventories, non-current			509				175
Other assets			2,349				1,475
Total assets		$	63,901			$	55,449
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Demand line of credit		$	10,000			$	-
Accounts payable			2,402				2,291
Accrued liabilities			2,925				2,918
Customer deposits and deferred revenue			1,395				646
Income taxes payable			195				251
Total current liabilities			16,917				6,106
Deferred income tax liability			1,865				1,870
Total liabilities			18,782				7,976
Commitments and contingencies - see Note 9
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			82				82
Additional paid-in capital			19,853				19,771
Treasury stock at cost: 290,983 shares			(2,262	)			(2,262	)
Retained earnings			25,920				28,205
Accumulated other comprehensive income			1,526				1,677
Total stockholders' equity			45,119				47,473
Total liabilities and stockholders' equity		$	63,901			$	55,449

 

 

GAMING PARTNERS INTERNATIONAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(in thousands, except per share amounts)

 

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2014				2013				2014				2013
Revenues		$	10,216			$	14,146			$	20,775			$	28,914
Cost of revenues			7,463				9,761				15,263				20,249
Gross profit			2,753				4,385				5,512				8,665
Marketing and sales			1,343				1,505				2,646				3,010
General and administrative			2,043				2,382				4,111				4,481
Research and development			417				494				854				1,027
Operating (loss) income			(1,050	)			4				(2,099	)			147
Other income and (expense), net			49				(40	)			106				38
(Loss) income before income taxes			(1,001	)			(36	)			(1,993	)			185
Income tax  provision (benefit)			154				18				292				(293	)
Net (loss) income		$	(1,155	)		$	(54	)		$	(2,285	)		$	478
Earnings per share:
Basic		$	(0.15	)		$	(0.01	)		$	(0.29	)		$	0.06
Diluted		$	(0.15	)		$	(0.01	)		$	(0.29	)		$	0.06
Weighted-average shares of common stock outstanding:
Basic			7,916				7,949				7,916				8,038
Diluted			7,916				7,949				7,916				8,116