GPIC finishes a disappointing year with a strong fourth quarter:
Gaming Partners International Reports Financial Results for the Fourth Quarter and Year-End 2009
Press Release Source: Gaming Partners International Corporation On Tuesday March 30, 2010, 6:30 am EDT
LAS VEGAS, March 30 /PRNewswire-FirstCall/ -- Gaming Partners International Corporation (Nasdaq:GPIC - News), a leading worldwide provider of casino currency and table gaming equipment, today announced financial results for the fourth quarter and year ended December 31, 2009.
For its fourth quarter of 2009, the Company posted revenues of $15.8 million and net income of $1.7 million, or $0.21 per basic and diluted share. These results compare to revenues of $15.7 million and net income of $1.8 million, or $0.22 per basic and diluted share, for the fourth quarter of 2008. Gross profit for the quarter was $5.7 million, or 36% of revenues, compared to $5.5 million, or 35% of revenues, for the fourth quarter of 2008.
For 2009, the Company recorded revenues of $49.5 million and net income of $1.0 million, or $0.13 per basic and diluted share. Annual revenues for 2008 were $60.5 million and net income was $4.5 million, or $0.55 per basic and diluted share. The Company's gross profit for 2009 was $15.9 million, or 32% of revenues, compared to $19.9 million, or 33% of revenues, for 2008. Stockholders' equity grew $0.7 million in 2009 to $39.5 million, after the payment of a $1.0 million cash dividend in the fourth quarter.
The results for 2009 include a one-time, non-cash impairment of goodwill charge of $1.6 million ($1.5 million after tax). This charge negatively affected our reported financial results and 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, our adjusted operating income for 2009 would have been $2.8 million, a decline of 48% rather than 77%, from the $5.3 million of operating income for 2008. Adjusted operating income is a non-generally accepted accounting principle measure which management believes facilitates a better understanding of the results of operations for the year.
As of December 31, 2009, the Company had cash, cash equivalents, and current marketable securities of $18.8 million, compared to $13.1 million as of December 31, 2008.
"I am pleased that we were able to finish out the year with a strong fourth quarter," said Greg Gronau, GPI's President and CEO. "2009 proved to be an extraordinarily challenging year for the gaming industry, as the worldwide recession took its toll on our customers' business. Even with the reduction in revenues, our expense reductions helped us through a very difficult year. More importantly, I am excited about new business opportunities in both Delaware and Pennsylvania when these states expand into table games later this year. Internationally, we expect continued sales opportunities in Asia and are looking to expand our market share in South America. We believe we are well positioned to serve customers in all these markets."
Gronau continued, "This year we will continue our efforts to seek new products to complement our existing table game product line which will benefit our customers worldwide. In addition, with our strong cash and low debt position, we are poised to consider potential strategic acquisitions and partnerships that will grow our business."
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Full press release, including numbers |
