Gaming Partners International Corp. Reports Operating Results (10-Q)
Gaming Partners has a market cap of $51.4 million; its shares were traded at around $6.41 with a P/E ratio of 13.9 and P/S ratio of 0.8.
Highlight of Business Operations:For the first quarter of 2012, our revenues were $15.4 million, a decrease of $2.4 million, or 13.4%, compared to revenues of $17.8 million for the same period of 2011. For the first quarter of 2012, our net income was $1.3 million, a decrease of $0.5 million, or 26.5%, compared to net income of $1.7 million for the first quarter of 2011.
Cost of Revenues. For the three months ended March 31, 2012, cost of revenues was $10.2 million, a decrease of $1.3 million, or 11.2%, compared to cost of revenues of $11.5 million for 2011. As a percentage of revenues, our cost of revenues increased to 66.1% in 2012, compared to 64.5% in 2011.
Gross Profit. For the three months ended March 31, 2012, gross profit was $5.2 million, a decrease of $1.1 million, or 17.5%, compared to gross profit of $6.3 million for 2011. As a percentage of revenues, our gross profit decreased from 35.5% to 33.9%. This gross profit percentage decrease was primarily related to the sale of lower volumes of European-style chips in Asia in the first quarter of 2012. This resulted in the absorption of overhead over these lower sales volumes. This gross profit decrease was partially offset by an increase in the sale of higher-margin Paulson chips to casinos in the United States in the first quarter of 2012 compared to the same period in 2011.
For the three months ended March 31, 2012, selling, general, and administrative expenses were $3.7 million, a decrease of $0.1 million, or 3.9%, compared to selling, general, and administrative expenses of $3.8 million during the same period in 2011. Selling, general, and administrative expenses increased as a percent of revenue to 23.8% in the first three months of 2012 from 21.5% in the same period in 2011.
At March 31, 2012, working capital totaled $30.5 million, an increase of $2.0 million, or 7.0%, compared to working capital of $28.5 million at December 31, 2011. This increase is due to a decrease in current assets of $34,000, offset by a decrease in current liabilities of $2.0 million. The decrease in current assets was due primarily to a decrease in marketable securities of $1.7 million and a decrease in prepaid expenses of $0.1 million, offset by an increase of $1.1 million in cash and cash equivalents and an increase of $0.8 million in other current assets. The decrease in current liabilities was due primarily to a decrease in customer deposits and deferred revenue of $1.9 million and a decrease in accrued liabilities of $0.6 million, offset by an increase in accounts payable of $0.3 million and an increase in income taxes payable of $0.1 million.
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