GPIC finished a disappointing year on a strong note and a higher backlog:
Gaming Partners International Reports Financial Results for the Fourth Quarter and Year-end 2007
Monday March 31, 5:30 pm ET
LAS VEGAS, March 31 /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 fourth quarter and year ended December 31, 2007.
For the fourth quarter of 2007, the Company reported revenues of $19.9 million compared to revenues of $16.1 million for the fourth quarter of 2006. Gross profit for the quarter was $7.0 million, or 35% of revenues, compared to $4.4 million or 27% of revenues in the same period a year ago. The increase in revenues was due in part to filling a large order for the opening of the MGM Macau.
Net income for the fourth quarter was $903,000, or $0.11 per basic and diluted share, compared to $115,000 or $0.01 per basic and diluted share in the fourth quarter 2006.
For the year ended December 31, 2007, revenues were $58.8 million compared to revenues of $74.0 million in the year ended December 31, 2006. Gross profit for the year was $18.0 million, or 31% of revenues, compared to $24.4 million, or 33% of revenues in 2006. The decline in revenues was due to fewer chip sales to casinos in Macau, although our significant market share of the chip, plaque, and jeton sales in this region remained stable.
Net income for the year ended December 31, 2007 was $240,000, or $0.03 per basic and diluted share compared to net income of $5.1 million or $0.64 per basic and $0.62 per diluted share for the year ended December 31, 2006.
As of December 31, 2007, the Company had cash and marketable securities of $9.4 million, compared to $10.6 million on December 31, 2006.
As of December 31, 2007, our backlog of unfilled orders, which are expected to be filled in 2008, amounted to approximately $11.1 million. At December 31, 2006, our backlog was $5.5 million.
Commenting on the results, Gerard Charlier, President and CEO, said, "Our fourth quarter was our best quarter of the year in terms of both revenue and profit and allowed us to rise just above breakeven for the entire year. Our results in terms of both revenue and profit fell far behind last year. In particular, our sales to casinos in Macau are down significantly from 2006, which was an exceptional year. We are pleased that this year we participated in the openings of the Crown Macau, the Venetian Macau, and MGM Macau, and the Wynn Macau's expansion.
"Longer term, we remain optimistic about the future based on our expectations for the potential in the market for RFID gaming chips worldwide, including our exclusive rights to manufacture and sell RFID gaming chips in the United States. We are particularly excited about our collaboration with Progressive Gaming International Corporation and International Game Technology in winning an order for over one million Paulson 13.56 MHz RFID casino chips to be delivered to MGM Grand at Foxwoods, the new expansion of the Foxwoods Resort Casino, for its opening in mid-May 2008."
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GAMING PARTNERS INTERNATIONAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31,
(in thousands, except share amounts)
2007 2006
ASSETS
Current Assets:
Cash and cash equivalents $4,627 $5,888
Marketable securities 4,730 4,710
Accounts receivable, less allowance
for doubtful accounts of
$327 and $335, respectively 5,811 4,136
Inventories 10,093 9,251
Prepaid expenses 487 404
Deferred income tax asset 893 355
Other current assets 1,459 1,497
Total current assets 28,100 26,241
Property and equipment, net 15,596 14,567
Goodwill 1,680 1,524
Other intangibles, net 1,023 1,245
Deferred income tax asset 1,514 2,093
Long-term investments 736 683
Other assets, net 660 616
Total assets $49,309 $46,969
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Current maturities of long-term debt $689 $1,047
Accounts payable 2,964 2,993
Accrued liabilities 4,418 4,557
Customer deposits 2,715 1,187
Income taxes payable 27 870
Deferred income tax liability - 623
Other current liabilities 406 177
Total current liabilities 11,219 11,454
Long-term debt, less current maturities 2,273 2,749
Deferred income tax liability 455 182
Other liabilities 209 -
Total liabilities 14,156 14,385
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 8,090,901, respectively,
issued and outstanding 81 81
Additional paid-in capital 18,766 18,429
Treasury stock, at cost, 8,061 shares (196) (196)
Retained earnings 12,825 12,690
Accumulated other comprehensive income 3,677 1,580
Total stockholders' equity 35,153 32,584
Total liabilities and
stockholders' equity $49,309 $46,969
GAMING PARTNERS INTERNATIONAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
Years Ended December 31,
(in thousands, except earnings per share)
2007 2006
Revenues $58,821 $73,954
Cost of revenues 40,845 49,580
Gross profit 17,976 24,374
Product development 419 422
Marketing and sales 4,303 4,316
General and administrative 12,392 11,155
Operating income 862 8,481
Other income (expense)
Loss on foreign currency transactions (323) (349)
Interest income 334 410
Interest expense (190) (175)
Other income, net 374 145
Income before income taxes 1,057 8,512
Income tax expense 817 3,383
Net income $240 $5,129
Earnings per share:
Basic $0.03 $0.64
Diluted $0.03 $0.62
Weighted-average shares of
common stock outstanding:
Basic 8,101 7,974
Diluted 8,242 8,226
Selected Quarterly Financial Information
Year Ended December 31, 2007
First Second Third Fourth Total
(in thousands, except per share data)
Net revenues $8,921 $14,779 $15,196 $19,925 $58,821
Gross profit 1,571 4,615 4,822 6,968 17,976
Operating (loss) income (2,373) 289 958 1,988 862
Net (loss) income $(1,490) $440 $387 $903 $240
Net (loss) income per share:
Basic $(0.18) $0.05 $0.05 $0.11 $0.03
Diluted $(0.18) $0.05 $0.05 $0.11 $0.03
Year Ended December 31, 2006
First Second Third Fourth Total
(in thousands, except per share data)
Net revenues $18,297 $19,436 $20,135 $16,086 $73,954
Gross profit 7,194 7,181 5,590 4,409 24,374
Operating income 3,398 2,961 1,623 499 8,481
Net income $2,080 $2,015 $919 $115 $5,129
Net income per share:
Basic $0.26 $0.25 $0.12 $0.01 $0.64
Diluted $0.25 $0.25 $0.11 $0.01 $0.62
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Source: Gaming Partners International Corporation
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