Gaming Partners International Corporation Reports 2011 Fourth-Quarter and Year Results
LAS VEGAS, March 29, 2012 /PRNewswire/ -- Gaming Partners International Corporation (NASDAQ: GPIC), a leading worldwide provider of casino currency and table gaming equipment, today announced financial results for the fourth quarter and year ending December 31, 2011.
For its fourth quarter of 2011, the Company posted revenues of $14.6 million and net income of $0.6 million, or $0.07 per basic and diluted share. These results compare to revenues of $16.6 million and net income of $1.0 million, or $0.12 per basic and diluted share, for the fourth quarter of 2010. Gross profit for the quarter was $4.2 million, or 29% of revenues, compared to $5.4 million, or 33% of revenues, in the prior year period.
For the year 2011, the Company recorded revenues of $61.1 million and net income of $3.7 million, or $0.45 per basic and diluted share. These results compare to revenues of $59.9 million and net income of $4.4 million, or $0.54 per basic and $0.53 per diluted share for the year 2010. Gross profit for the year was $19.5 million, a decrease of $2.4 million, or 11.0%, compared to gross profit of $21.9 million for 2010. As a percentage of revenues, gross profit decreased from 36.6% to 32.0%, primarily due to high volume, but lower margin plaque and chip sales to several Asian customers during 2011; one-time delivery of non-RFID American-style chips at no cost to the Star Casino in Australia as an accommodation to meet delivery dates, following RFID tag delivery delays related to the fall 2011 Thailand floods; and the sale of higher margin Paulson chips with increased security features to casinos in Pennsylvania, West Virginia, and Delaware in 2010.
The primary reasons for the increase in revenue in 2011 were an increase of nearly $7.7 million in revenue of European-style casino chips for Asian casinos, including the Galaxy™ Macau and Sociedade de Jogos de Macau S.A. casinos, as well as in other parts of Asia, and $1.6 million in RFID solutions revenue. This increase was offset by a $5.4 million decline in American-style casino chip revenue and a $2.7 million decline in furniture, accessories, and layout sales in the United States, due primarily to significant second and third quarter sales to Pennsylvania, Delaware, and West Virginia casinos in 2010.
In December, the Company paid a cash dividend of $1.5 million, or $0.1825 per share, and ended 2011 with $24.1 million in cash, cash equivalents and marketable securities. Also in December, the Company initiated a stock repurchase program to repurchase up to 5% of the Company's stock, or approximately 410,000 shares. During December the Company repurchased over 11,000 shares, at a weighted average cost of $6.31 per share, and, as of March 21, 2012, repurchased an aggregate of approximately 57,000 shares at a weighted average cost of $6.84 per share, under this program.
"We closed out 2011 with a strong year for sales in Asia," commented Gregory Gronau, GPIC President and Chief Executive Officer. "This reflected the opening of the Galaxy Macau casino, with both chip and RFID solution sales, as well as rebranding and replacement sales with Macau, Singapore, and Malaysia casinos. For 2012, we expect to leverage our expanded chip mold making and design capabilities for our global customers to improve their chip security, branding and promotions. Additionally, we will continue to pursue potential strategic acquisitions and partnerships to grow our business."
About Gaming Partners International Corporation (GPIC)
GPIC manufactures and supplies casino table games and equipment to licensed casinos worldwide. Under the brand names of Paulson®, Bud Jones®, and Bourgogne et Grasset®, GPIC provides casino currency such as chips, plaques and jetons; casino tables, furniture and accessories; table layouts; playing cards; precision dice; roulette wheels; and gaming-related RFID technology and applications. Headquartered in Las Vegas, Nevada, GPIC has additional locations in Beaune, France; San Luis Rio Colorado, Mexico; Atlantic City, New Jersey; Gulfport, Mississippi; and Macau S.A.R., China. For additional information, please visit www.gpigaming.com.
Safe Harbor Statement
This release contains "forward-looking statements" based on current expectations 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; the duration or effects of unfavorable economic conditions which may reduce our product sales; potential strategic acquisitions and partnerships; and the long term potential of the RFID casino currency solutions market and the ability of GPIC to capitalize on any such growth opportunities. Actual results or achievements may be materially different from those expressed or implied. GPIC'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 Annual Report on Form 10-K for the period ended December 31, 2011, 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.
For more information please contact:
Gerald W. Koslow, Chief Financial Officer
GAMING PARTNERS INTERNATIONAL CORPORATION
CONSOLIDATED BALANCE SHEETS
Cash and cash equivalents
Accounts receivable, net
Deferred income tax asset
Other current assets
Total current assets
Property and equipment, net
Deferred income tax asset
Other assets, net
LIABILITIES AND STOCKHOLDERS' EQUITY
Customer deposits and deferred revenue
Income taxes payable, net
Total current liabilities
Deferred income tax liability
Commitments and contingencies - see Note 11
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 8,187,764 issued and outstanding, respectively,
as of December 31, 2011, and 8,207,077 and 8,199,016 issued
and outstanding, respectively, as of December 31, 2010
Additional paid-in capital
Treasury stock at cost: 19,313 and 8,061 shares
Accumulated other comprehensive income
Total stockholders' equity
Total liabilities and stockholders' equity
GAMING PARTNERS INTERNATIONAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTHS AND YEAR ENDED DECEMBER 31,
(in thousands, except per share amounts)
Three Months Ended
Cost of revenues
Marketing and sales
General and administrative
Other income and (expense)
Income before income taxes
Income tax expense
Earnings per share:
Weighted-average shares of common stock outstanding:
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