GPIC Gaming Partners International Corp.

LAS VEGAS, May 13 /PRNewswire-FirstCall/ -- Gaming Partners International Corporation (NASDAQ:GPIC), the leading worldwide provider of casino currency and table gaming equipment, today announced financial results for the first quarter of 2009. For the first quarter of 2009, the Company reported revenues of $8.9 million, which were down 26% compared to revenues of $12.1 million for the first quarter of 2008. Gross profit for the quarter was $2.4 million, or 27% of revenues, compared to $3.6 million, or 30% of revenues, in the same period a year ago. Net loss for the first quarter of 2009 was $499,000, or $0.06 per basic and diluted share, compared to a net loss of $412,000, or $0.05 per basic and diluted share, in the first quarter of 2008. As of March 31, 2009, the Company had cash and marketable securities of $16.4 million, compared to $13.1 million as of December 31, 2008. As of March 31, 2009, the Company had $37.6 million of stockholders' equity, compared to $38.8 million as of December 31, 2008. As of March 31, 2009, our backlog of unfilled orders, which are expected to be filled in 2009, was $11.6 million. At March 31, 2008, our backlog was $14.0 million. Commenting on the results, Gerard Charlier, President and CEO, said, "The gaming industry continues to face tough economic times, as the worldwide recession negatively impacts business. We previously announced that we expected the first quarter to be difficult given the current economic environment. Having said that, our continued efforts to reduce costs helped mitigate the impact. Our lower gross margins were a function of a change in product mix, as sales of our high margin European-style casino chips suffered in the first quarter. But we are currently producing the City of Dreams and Newport City orders that are scheduled to ship mid-year, and these orders largely consist of higher margin products. Moreover we feel we are well positioned for additional business with new casinos opening in both the United States and abroad later this year." About Gaming Partners International Corporation GPIC manufactures and supplies (under the brand names of Paulson(R), Bourgogne et Grasset(R) and Bud Jones(R)) casino chips, including plaques and jetons and low frequency and high frequency RFID chips, low and high frequency RFID readers, table layouts, playing cards, dice, gaming furniture, roulette wheels, table accessories, and other products that are used with casino table games such as blackjack, poker, baccarat, craps, and roulette. GPIC is headquartered in Las Vegas, Nevada, with offices in Beaune, France; San Luis Rio Colorado, Mexico; Atlantic City, New Jersey; and Gulfport, Mississippi. GPIC sells its casino products directly to licensed casinos throughout the world. For additional information about GPIC, visit our web site at http://www.gpigaming.com/. Safe Harbor Statement This release contains "forward-looking statements" based on current expectations but involving known and unknown risks and uncertainties, such as statements relating to anticipated future sales or the timing thereof; the long-term growth and prospects of our business or any jurisdiction, including Macau, the Philippines, and Singapore; the duration or effects of unfavorable economic conditions which may reduce our product sales; and the long term potential of the RFID gaming chips market and the ability of Gaming Partners International to capitalize on any such growth opportunities. Actual results or achievements may be materially different from those expressed or implied. Gaming Partners International's plans and objectives are based on assumptions involving judgments with respect to future economic, competitive and market conditions, the timing and its ability to consummate, acquisitions, and future business decisions and other risks and uncertainties identified in Part I-Item 1A, "Risk Factors" of the Company's Form 10-K for the period ended December 31, 2008, all of which are difficult or impossible to predict accurately and many of which are beyond its control. 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) March 31, December 31, 2009 2008 ---- ---- ASSETS Current Assets: Cash and cash equivalents $7,516 $5,547 Marketable securities 8,857 7,561 Accounts receivable, less allowance for doubtful accounts of $424 and $342, respectively 3,096 5,422 Inventories 11,014 9,894 Prepaid expenses 399 431 Deferred income tax asset 887 691 Other current assets 867 790 --- --- Total current assets 32,636 30,336 Property and equipment, net 13,432 14,158 Goodwill 1,538 1,599 Other intangibles, net 779 783 Deferred income tax asset 1,666 1,666 Long-term marketable securities 665 696 Other assets, net 267 311 --- --- Total assets $50,983 $49,549 ======= ======= LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Current maturities of long-term debt $506 $523 Accounts payable 2,545 2,613 Accrued liabilities 3,076 3,066 Customer deposits 4,767 1,432 Income taxes payable 15 312 Other current liabilities 435 459 --- --- Total current liabilities 11,344 8,405 Long-term debt, less current maturities 1,580 1,743 Deferred income tax liability 509 585 --- --- Total liabilities 13,433 10,733 ------ ------ Commitments and contingencies - see Note 6 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, 8,103,401 and 8,103,401, respectively, issued and outstanding 81 81 Additional paid-in capital 19,083 19,033 Treasury stock, at cost; 8,061 shares (196) (196) Retained earnings 16,813 17,312 Accumulated other comprehensive income 1,769 2,586 ----- ----- Total stockholders' equity 37,550 38,816 ------ ------ Total liabilities and stockholders' equity $50,983 $49,549 ======= ======= See notes to unaudited condensed consolidated financial statements. GAMING PARTNERS INTERNATIONAL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (in thousands, except per share amounts) Three Months Ended March 31, --------- 2009 2008 ---- ---- Revenues $8,943 $12,125 Cost of revenues 6,530 8,467 ----- ----- Gross profit 2,413 3,658 Product development 143 54 Marketing and sales 983 1,162 General and administrative 2,180 2,838 ----- ----- Operating loss (893) (396) Other income (expense) Gain (loss) on foreign currency transactions 93 (259) Interest income 49 56 Interest expense (28) (38) Other income, net 17 3 --- --- Loss before income taxes (762) (634) Income tax benefit (263) (222) ---- ---- Net loss $(499) $(412) ===== ===== Earnings per share: Basic $(0.06) $(0.05) ====== ====== Diluted $(0.06) $(0.05) ====== ====== Weighted-average shares of common stock outstanding: Basic 8,103 8,103 ===== ===== Diluted 8,103 8,103 ===== ===== See notes to unaudited condensed consolidated financial statements DATASOURCE: Gaming Partners International Corporation CONTACT: David W. Grimes of Gaming Partners International Corporation, +1-702-598-2400, Web Site: http://www.gpigaming.com/

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