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) November 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 November 12, 2014 reporting the Company’s financial results for the three and nine months ended September 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 November 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:  November 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 November 12, 2014.

 

 

 

Exhibit 99.1

 

Gaming Partners International Corporation Reports Financial Results for the Third Quarter and First Nine Months of 2014

 

Las Vegas, NV (PR Newswire) (November 12, 2014) — 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, 2014.

 

For the third quarter of 2014, our revenues were $20.3 million, an increase of $6.8 million, or 49.8%, compared to revenues of $13.5 million for the same period of 2013. For the third quarter of 2014, our net income was $2.8 million, compared to a net income of $0.1 million for the same period in 2013. The increase in our revenues and net income for the three months ended September 30, 2014, was directly attributable to the business generated from our acquisition of the gaming assets of GemGroup and the increase of currency sales in the Asia region.

 

For the first nine months of 2014, our revenues were $41.0 million, a decrease of $1.4 million, or 3.3%, compared to revenues of $42.4 million for the same period of 2013. For the first nine months of 2014, our net income was $0.5 million, compared to net income of $0.6 million for the same period of 2013. The decrease in our results for the nine months ended September 30, 2014, was due to the overall decrease in currency sales and the increase in income tax expense, offset by the business generated from our acquisition of the gaming assets of GemGroup.

 

“We do not expect any major casino openings for the remainder of 2014 but we are actively working on securing orders for 2015 casino openings,” commented Greg Gronau, GPIC President, Chief Executive Officer, Treasurer and Secretary. “Following our acquisition, we have started consolidating our card production in Blue Springs, Missouri. This will result in approximately $0.4 million of of pre-tax, one time charges but it will provide significant savings in the manufacturing of cards. This is in line with our overall plan to streamline our operations and reduce our overheads and operating expenses.”

 

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; costs and benefits of restructuring; 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)

 

		September 30,				December 31,
		2014				2013
ASSETS
Current Assets:
Cash and cash equivalents		$	9,745			$	14,492
Marketable securities			1,597				5,724
Accounts receivable, net			10,628				5,905
Inventories			10,730				7,407
Prepaid expenses			706				965
Deferred income tax asset			619				628
Other current assets			2,454				3,054
Total current assets			36,479				38,175
Property and equipment, net			14,460				10,996
Intangibles, net			2,873				985
Goodwill			10,275				-
Deferred income tax asset			3,220				3,643
Inventories, non-current			443				175
Other assets			2,239				1,475
Total assets		$	69,989			$	55,449
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Demand line of credit		$	10,000			$	-
Accounts payable			4,791				2,291
Accrued liabilities			4,140				2,918
Customer deposits and deferred revenue			2,175				646
Income taxes payable			244				251
Total current liabilities			21,350				6,106
Deferred income tax liability			1,821				1,870
Other liabilities			51				-
Total liabilities			23,222				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			19,877				19,771
Treasury stock at cost: 290,983 shares			(2,262	)			(2,262	)
Retained earnings			28,688				28,205
Accumulated other comprehensive income			382				1,677
Total stockholders' equity			46,767				47,473
Total liabilities and stockholders' equity		$	69,989			$	55,449

 

 

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,
		2014				2013				2014				2013
Revenues		$	20,253			$	13,519			$	41,028			$	42,433
Cost of revenues			13,447				9,095				28,710				29,343
Gross profit			6,806				4,424				12,318				13,090
Marketing and sales			1,840				1,683				4,486				4,692
General and administrative			2,041				2,249				6,151				6,730
Research and development			324				467				1,178				1,495
Operating income			2,601				25				503				173
Other income and (expense), net			127				(8	)			232				30
Income before income taxes			2,728				17				735				203
Income tax  provision (benefit)			(40	)			(66	)			252				(359	)
Net income		$	2,768			$	83			$	483			$	562
Earnings per share:
Basic		$	0.35			$	0.01			$	0.06			$	0.07
Diluted		$	0.35			$	0.01			$	0.06			$	0.07
Weighted-average shares of common stock outstanding:
Basic			7,916				7,917				7,916				7,950
Diluted			8,015				8,001				8,016				8,033