Third quarter results for [t]GPIC[/t]:
Gaming Partners International Reports Financial Results for the Third Quarter and Nine Months of 2009
Press Release
Source: Gaming Partners International Corporation
On 5:00 pm EST, Thursday November 12, 2009
LAS VEGAS, Nov. 12 /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 third quarter and first nine months of 2009.
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."
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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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