LAS VEGAS, Nov. 12 /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 third quarter and first nine
months of 2009. (Logo:
http://www.newscom.com/cgi-bin/prnh/20060127/LAF027LOGO-b) For the
third quarter of 2009, the Company reported revenues of $13.4
million, which were down 3% compared to revenues of $13.8 million
for the third quarter of 2008. Gross profit for the quarter was
$4.7 million, or 35% of revenues, compared to $4.4 million, or 32%
of revenues, in the same period a year ago. Net loss for the third
quarter of 2009 was $0.3 million, or $(0.04) per basic and diluted
share, compared to a net income of $1.2 million, or $0.15 per basic
and diluted share, in the third quarter of 2008. In the third
quarter of 2009, we recognized a one-time, non-cash goodwill
impairment charge of $1.6 million, which is a reflection of the
slowdown in the domestic gaming market which we believe can be
attributed to the economic environment in the United States. If not
for this one-time charge, Operating income would have been $1.5
million, a 15% improvement to the $1.3 million of Operating income
in the third quarter of 2008. Adjusted Operating income is a
non-generally accepted accounting principle measure which
management believes facilitates a better understanding of the
results of our operations. For the nine months ended September 30,
2009, revenues were $33.7 million, which were down 25% compared to
revenues of $44.8 million in the first nine months of 2008. Gross
profit for the period was $10.2 million, or 30% of revenues,
compared to $14.4 million, or 32% of revenues, in the comparable
period in 2008. Net loss for the nine months ended September 30,
2009 was $0.7 million, or $(0.08) per basic and diluted share,
compared to net income of $2.7 million, or $0.33 per basic and
diluted share, for the nine months ended September 30, 2008. As of
September 30, 2009, the Company had cash and marketable securities
of $19.1 million, compared to $13.1 million as of December 31,
2008. As of September 30, 2009, customer deposits were $6.2
million, compared to $1.4 million as of December 31, 2008. As of
September 30, 2009, the Company had $39.3 million of stockholders'
equity, compared to $38.8 million as of December 31, 2008. At
September 30, 2009, our backlog of orders, which is expected to be
filled in 2009, was $11.6 million. This backlog does not include
the order for Marina Bay Sands, which we currently expect to ship
in 2010. Our backlog of orders which is expected to be filled in
the first half of 2010 was $5.3 million. At September 30, 2008, our
backlog for the remainder of 2008 was $9.4 million. Commenting on
the results, Greg Gronau, President and CEO, said, "Although the
gaming industry continues to face tough economic times, with the
worldwide recession negatively impacting our customer's business
and, therefore, ours, I am pleased with our results since we were
able to make money for the quarter before a one-time, $1.6 million
write-off." Gronau continued, "More importantly, I am excited about
the future. I'm looking forward to a busy G2E trade show for us
next week as we demonstrate our many new products we have recently
developed. To begin with, we have expanded our RFID table line,
extended our playing card offerings, and developed the most durable
graphic layout available as we strive to exceed our customers'
expectations. "As the new CEO, I look forward to building on our
past success and exploring new ways to grow the company, whether
that be through internal growth or taking advantage of our high
cash and low debt position to pursue strategic initiatives." About
Gaming Partners International Corporation GPIC manufactures and
supplies (under the brand names of Paulson®, Bourgogne et Grasset®
and Bud Jones®) 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) September
30, December 31, 2009 2008 ---- ---- ASSETS Current Assets: Cash
and cash equivalents $5,909 $5,547 Marketable securities 13,182
7,561 Accounts receivable, less allowance for doubtful accounts of
$406 and $342, respectively 4,388 5,422 Inventories 8,826 9,894
Prepaid expenses 545 431 Deferred income tax asset 582 691 Other
current assets 1,791 790 ----- --- Total current assets 35,223
30,336 Property and equipment, net 13,187 14,158 Goodwill - 1,599
Other intangibles, net 769 783 Deferred income tax asset 1,672
1,666 Long-term marketable securities 732 696 Inventories 1,223 -
Other assets, net 346 311 --- --- Total assets $53,152 $49,549
======= ======= LIABILITIES AND STOCKHOLDERS' EQUITY Current
Liabilities: Current maturities of long-term debt $549 $523
Accounts payable 2,307 2,613 Accrued liabilities 2,873 3,066
Customer deposits 6,189 1,432 Income taxes payable 167 312 Other
current liabilities 730 459 --- --- Total current liabilities
12,815 8,405 Long-term debt, less current maturities 458 1,743
Deferred income tax liability 569 585 --- --- Total liabilities
13,842 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 19,184 19,033 Treasury stock, at cost; 8,061 shares
(196) (196) Retained earnings 16,656 17,312 Accumulated other
comprehensive income 3,585 2,586 ----- ----- Total stockholders'
equity 39,310 38,816 ------ ------ Total liabilities and
stockholders' equity $53,152 $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 Nine Months Ended September 30,
September 30, ------------- ------------- 2009 2008 2009 2008 ----
---- ---- ---- Revenues $13,425 $13,820 $33,681 $44,801 Cost of
revenues 8,743 9,400 23,465 30,389 ----- ----- ------ ------ Gross
profit 4,682 4,420 10,216 14,412 Product development 57 80 279 170
Marketing and sales 1,042 834 3,105 3,147 General and
administrative 2,055 2,188 6,125 7,767 Impairment of goodwill 1,572
- 1,572 - ----- --- ----- --- Operating income (loss) (44) 1,318
(865) 3,328 Other income (expense) Gain on foreign currency
transactions 45 280 72 12 Interest income 69 61 190 181 Interest
expense (29) (30) (91) (105) Other income, net 4 27 29 74 - -- --
-- Income (loss) before income taxes 45 1,656 (665) 3,490 Income
tax expense (benefit) 373 409 (9) 806 --- --- -- --- Net income
(loss) $(328) $1,247 $(656) $2,684 ===== ====== ===== ======
Earnings per share: Basic $(0.04) $0.15 $(0.08) $0.33 ====== =====
====== ===== Diluted $(0.04) $0.15 $(0.08) $0.33 ====== =====
====== ===== Weighted-average shares of common stock outstanding:
Basic 8,103 8,103 8,103 8,103 ===== ===== ===== ===== Diluted 8,103
8,158 8,103 8,186 ===== ===== ===== ===== See notes to unaudited
condensed consolidated financial statements.
http://www.newscom.com/cgi-bin/prnh/20060127/LAF027LOGO-b
http://photoarchive.ap.org/ 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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