Gaming Partners International Corp. Reports Operating Results (10-K)
Gaming Partners International Corp. has a market cap of $56.6 million; its shares were traded at around $6.9 with a P/E ratio of 11.1 and P/S ratio of 1.1.
Highlight of Business Operations: Most often a casino will order all of its gaming chips, including replacement chips, from a single supplier. Accordingly, we strive to become the original chip supplier to a casino upon its opening, thereby enhancing our position to receive additional sales when the casino places replacement orders. A new casino order will typically include at least five to seven distinct chip denominations, colors and styles, ranging in denominations from $0.50 to in excess of $1 million. Our selling price is variable, based on the customization, quantities, design and security features. Gaming chips can be divided into two basic styles: American-style casino chips and European-style casino chips, known as jetons and plaques. We hold the leading worldwide market share in gaming chips, which accounted for 65% of our total revenues in 2010.
American-style Casino Chips American-style casino chips are used worldwide. There are currently three main manufacturing technologies used to produce these types of chips: injection molding, thermo-compression molding, and sublimation. We produce casino chips using all three of these methods. We sell American-style casino chips under the Paulson®, Bud Jones®, and BG brand names. American-style casino chip prices range between $0.75 and $5.00 for casino-quality chips. Included in this price range is a $1.20 to $2.00 premium per chip for RFID as a feature.
in 1925 and has held a leading position in this market since that time. Jeton prices range between $3.00 and $5.00. Plaque prices range between $6.00 and $20.00.
Gaming Furniture We sell a variety of casino gaming furniture, including tables, bases and pit podiums. Our hand-crafted gaming tables are custom-designed to integrate seamlessly with each casino customers interior and branded design and we offer a variety of base, finish and accessory options. Our tables support our proprietary accessories and RFID systems and are able to incorporate third party casino equipment products, including card shufflers, card readers, monitors, bill validators, and IT products, including RFID systems, as well as our proprietary accessories. Our tables range in price between $2,000 and $8,000, depending on the degree of customization and table type, such as blackjack, roulette, baccarat, and craps. Gaming furniture is typically sold in combination with table accessories and accounted for 6% of our total revenues for 2010.
Dice Our precision dice brands are manufactured in conformity with the strictest standards of gaming regulations and we offer a variety of customization options, including size, finish type, customer logo, color, serialization, and security features, such as laser pigment. The typical sales price of casino dice ranges between $2.50 and $3.70 per pair. In a busy casino, a stick of dice (two and one-half pair) does not generally remain in play for more than eight hours. Dice accounted for 4% of our total revenues for 2010.
Backlog At December 31, 2010, our backlog of signed orders for 2011 was $17.0 million, consisting of $14.1 million for GPI SAS and $2.9 million for GPI USA. At December 31, 2009, our backlog of signed orders for 2010 was $11.8 million, consisting of $8.9 million for GPI SAS and $2.9 million for GPI USA.
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