LAS VEGAS, Nov. 12 /PRNewswire-FirstCall/ -- Gaming Partners International Corporation , 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.
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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.
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Gaming Partners International Corporation
CONTACT: David W. Grimes of Gaming Partners International Corporation,
+1-702-598-2400, dgrimes@gpigaming.com
Web Site: http://www.gpigaming.com/
