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, 2015

 

 

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):

 

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨	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, 2015 reporting the Company’s financial results for the three and nine months ended September 30, 2015. 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, 2015.

 

  

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, 2015
	By:	/s/ Gregory S. Gronau
		Gregory S. Gronau
		President and Chief Executive Officer

 

 

EXHIBIT INDEX

 

Exhibit No.		Description
Exhibit 99.1		Press release dated November 12, 2015.

 

 

Exhibit 99.1

 

Gaming Partners International Corporation Reports Financial Results for the Third Quarter and First Nine Months of 2015

 

Las Vegas, NV (PR Newswire) (November 12, 2015) — 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, 2015.

 

For the third quarter of 2015, our revenues were $19.9 million, a decrease of $0.4 million, or 2.0%, compared to revenues of $20.3 million for the same period of 2014. For the third quarter of 2015, our net income was $1.7 million, compared to a net income of $2.8 million for the same period in 2014. The decrease in net income was primarily due to an increase in bad debt expense in 2015, and the absence of a tax benefit similar to the income tax benefit recorded in the third quarter of 2014.

 

For the first nine months of 2015, our revenues were $54.7 million, an increase of $13.7 million, or 33.4%, compared to revenues of $41.0 million for the same period of 2014. For the first nine months of 2015, our net income was $3.5 million, compared to net income of $0.5 million for the same period of 2014. The increase was primarily due to the additional revenue generated and synergies created as a result of the GemGroup Acquisition.

 

“We are quite pleased with our results for the first nine months of 2015,” commented Gregory Gronau, GPIC President and Chief Executive Officer. “While casino currency sales fell short of matching 2014’s results, every other product line exceeded 2014, led by playing cards, where sales of $18.2 million nearly doubled 2014 sales, largely due to the GemGroup Acquisition. Further, the synergies we have been able to achieve helped drive the significant increase in net income when compared to the same period last year.” Mr. Gronau continued, “We are now less reliant on new casino openings for revenue and net income growth than at any time in the Company’s recent history.”

 

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/A for the period ended December 31, 2014, 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 and Chief Executive Officer

+1.702.384.2425

 

 

GAMING PARTNERS INTERNATIONAL CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

(in thousands, except share amounts)

 

 

		September 30,				December 31,
		2015				2014
ASSETS
Current Assets:
Cash and cash equivalents		$	12,829			$	8,969
Marketable securities			5,353				3,597
Accounts receivable, net			10,663				10,327
Inventories			10,727				9,063
Prepaid expenses			729				749
Deferred income tax assets			1,389				1,011
Other current assets			2,778				2,273
Total current assets			44,468				35,989
Property and equipment, net			15,142				15,087
Goodwill			10,292				10,292
Intangibles, net			2,575				2,794
Deferred income tax assets			2,149				2,003
Inventories, non-current			380				523
Other assets			1,530				1,706
Total assets		$	76,536			$	68,394
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable		$	4,301			$	3,321
Accrued liabilities			4,165				3,906
Customer deposits and deferred revenue			6,496				2,224
Current portion of long term debt			1,334				10,000
Income taxes payable			841				343
Total current liabilities			17,137				19,794
Long term debt			8,341				-
Deferred income tax liabilities			210				272
Other liabilities			80				63
Total liabilities			25,768				20,129
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 September 30, 2015, and 8,207,077 and 7,916,094 issued and outstanding, respectively, as of December 31, 2014			82				82
Additional paid-in capital			20,042				19,886
Treasury stock at cost: 290,983 shares			(2,263	)			(2,263	)
Retained earnings			34,371				30,881
Accumulated other comprehensive loss			(1,464	)			(321	)
Total stockholders' equity			50,768				48,265
Total liabilities and stockholders' equity		$	76,536			$	68,394

  

 

GAMING PARTNERS INTERNATIONAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(in thousands, except per share amounts)

  

 

		Nine Months Ended								Nine Months Ended
		September 30,								September 30,
		2015				2014				2015				2014
Revenues		$	19,844			$	20,253			$	54,749			$	41,028
Cost of revenues			13,391				13,447				37,338				28,710
Gross profit			6,453				6,806				17,411				12,318
Marketing and sales			1,616				1,840				4,800				4,486
General and administrative			2,565				2,041				7,448				6,151
Research and development			250				324				900				1,178
Operating income			2,022				2,601				4,263				503
Other income, net			127				127				59				232
Income before income taxes			2,149				2,728				4,322				735
Income tax provision (benefit)			474				(40	)			832				252
Net income		$	1,675			$	2,768			$	3,490			$	483
Earnings per share:
Basic		$	0.21			$	0.35			$	0.44			$	0.06
Diluted		$	0.21			$	0.35			$	0.43			$	0.06
Weighted-average shares of common stock outstanding:
Basic			7,929				7,916				7,924				7,916
Diluted			8,049				8,015				8,038				8,016