The slowdown in the casino industry has hit [t]GPIC[/t] hard. The stock has been cut in half since it reported its first quarter results. At $3.45, it may be a bargain.
Gaming Partners International Reports Financial Results for the First Quarter of 2008
Wednesday May 14, 4:49 pm ET
LAS VEGAS, May 14 /PRNewswire-FirstCall/ -- Gaming Partners International Corporation (Nasdaq: GPIC - News), the leading worldwide provider of casino currency and table gaming equipment, today announced financial results for the first quarter of 2008.
For the first quarter of 2008, the Company reported revenues of $12.1 million compared to revenues of $8.9 million for the first quarter of 2007. Gross profit for the quarter was $3.8 million, or 31% of revenues, compared to $1.6 million or 18% of revenues in the same period a year ago. The increase in revenues was due to increased sales of gaming chips to casinos in Macau, which resulted in higher production and improved margins by allocating fixed costs over the higher production.
Net loss for the first quarter was $412,000, or $0.05 per basic and diluted share, compared to a net loss of $1.5 million or $0.18 per basic and diluted share in the first quarter of 2007.
As of March 31, 2008, the Company had cash and marketable securities of $11.2 million, compared to $9.4 million as of December 31, 2007.
As of March 31, 2008, our backlog of unfilled orders, which are expected to be filled in 2008, was $14.0 million. At March 31, 2007, our backlog was $12.7 million.
Commenting on the results, Gerard Charlier, President and CEO, said, "Our first quarter 2008 results are significantly improved over last year's results, but we posted a loss and our performance is not where we want it to be. We will continue to pursue revenue opportunities but we are addressing our costs as well, such as moving our Las Vegas-based chip manufacturing to our Mexico facility."
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GAMING PARTNERS INTERNATIONAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(in thousands, except share amounts)
March 31, December 31,
2008 2007
ASSETS
Current Assets:
Cash and cash equivalents $4,755 $4,627
Marketable securities 6,437 4,730
Accounts receivable, less
allowance for doubtful accounts
of $392 and $327, respectively 3,128 5,811
Inventories 12,336 10,093
Prepaid expenses 526 487
Deferred income tax asset 944 893
Other current assets 798 1,459
Total current assets 28,924 28,100
Property and equipment, net 16,073 15,596
Goodwill 1,790 1,680
Other intangibles, net 991 1,023
Deferred income tax asset 1,829 1,514
Long-term investments 791 736
Other assets, net 651 660
Total Assets $51,049 $49,309
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Current maturities of long-term debt $564 $689
Accounts payable 2,945 2,964
Accrued liabilities 3,584 4,418
Customer deposits 4,394 2,715
Income taxes payable - 27
Deferred income tax liability 18 -
Other current liabilities 496 406
Total current liabilities 12,001 11,219
Long-term debt, less current maturities 2,225 2,273
Deferred income tax liability 497 455
Other liabilities 224 209
Total liabilities 14,947 14,156
Commitments and contingencies
Stockholders' Equity:
Preferred stock, authorized
10,000,000 shares, $.01 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 18,806 18,766
Treasury stock, at cost; 8,061 shares (196) (196)
Retained earnings 12,413 12,825
Accumulated other comprehensive income 4,998 3,677
Total stockholders' equity 36,102 35,153
Total Liabilities and Stockholders'
Equity $51,049 $49,309
GAMING PARTNERS INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands, except per share amounts)
Three Months Ended
March 31,
2008 2007
Revenues $12,125 $8,921
Cost of revenues 8,330 7,350
Gross profit 3,795 1,571
Product development 54 45
Marketing and sales 1,162 1,093
General and administrative 2,975 2,806
Operating loss (396) (2,373)
Loss on foreign currency transactions (259) (28)
Interest income 56 79
Interest expense (38) (49)
Other income, net 3 20
Loss before income taxes (634) (2,351)
Income tax benefit (222) (861)
Net loss $(412) $(1,490)
Earnings per share:
Basic $(0.05) $(0.18)
Diluted $(0.05) $(0.18)
Weighted average shares of common
stock outstanding:
Basic 8,103 8,094
Diluted 8,103 8,094
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Source: Gaming Partners International Corporation
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