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Gaming Partners International Reports Financial Results for the Second Quarter and Six Months of 2009

August 13, 2009 | About:

Press Release: Gaming Partners International Reports Financial Results for the Second Quarter and Six Months of 2009

LAS VEGAS, Aug. 13 /PRNewswire-FirstCall/ -- Gaming Partners International Corporation (Nasdaq: GPIC), the leading worldwide provider of casino currency and table gaming equipment, today announced financial results for the second quarter and first six months of 2009. (Logo: http://www.newscom.com/cgi-bin/prnh/20060127/LAF027LOGO-b) For the second quarter of 2009, the Company reported revenues of $11.3 million, which were down 40% compared to revenues of $18.8 million for the second quarter of 2008. Gross profit for the quarter was $3.1 million, or 28% of revenues, compared to $6.3 million, or 34% of revenues, in the same period a year ago. Net income for the second quarter of 2009 was $0.2 million, or $0.02 per basic and diluted share, down 90% compared to a net income of $1.8 million, or $0.23 per basic and diluted share, in the second quarter of 2008. For the six months ended June 30, 2009, revenues were $20.3 million, which were down 35% compared to revenues of $31.0 million in the first six months of 2008. Gross profit for the period was $5.5 million, or 27% of revenues, compared to $10.0 million, or 32% of revenues, in the comparable period in 2008. Net loss for the six months ended June 30, 2009 was $0.3 million, or $(0.04) per basic and diluted share, compared to net income of $1.4 million, or $0.18 per basic and diluted share, for the six months ended June 30, 2008. As of June 30, 2009, the Company had cash and marketable securities of $18.0 million, compared to $13.1 million as of December 31, 2008. As of June 30, 2009, customer deposits were $7.7 million, compared to $1.4 million as of December 31, 2008. As of June 30, 2009, the Company had $38.9 million of stockholders\' equity, compared to $38.8 million as of December 31, 2008. As of June 30, 2009, our backlog of unfilled orders, which are expected to be filled in 2009, was $10.2 million. The backlog includes the Newport City order for $4.6 million, which shipped in July 2009 and therefore is included in third quarter revenues. The backlog does not include the order for Marina Bay Sands, which we currently expect to ship in 2010. At June 30, 2008, our backlog was $13.7 million. Commenting on the results, Gerard Charlier, President and CEO, said, "The gaming industry continues to face tough economic times, as the worldwide recession negatively impacts our customer\'s business and, therefore, ours. In addition to our continued efforts to reduce costs, we are looking for new products and markets to improve revenue and profitability. We are committed to remaining competitive, as demonstrated with our recent announcement of being awarded an order for two million casino chips for the Marina Bay Sands in Singapore." About Gaming Partners International Corporation GPIC manufactures and supplies (under the brand names of Paulson(R), Bourgogne et Grasset(R) and Bud Jones(R)) casino chips, including plaques and jetons and low frequency and high frequency RFID chips, low and high frequency RFID readers, table layouts, playing cards, dice, gaming furniture, roulette wheels, table accessories, and other products that are used with casino table games such as blackjack, poker, baccarat, craps, and roulette. GPIC is headquartered in Las Vegas, Nevada, with offices in Beaune, France; San Luis Rio Colorado, Mexico; Atlantic City, New Jersey; and Gulfport, Mississippi. GPIC sells its casino products directly to licensed casinos throughout the world. For additional information about GPIC, visit our web site at www.gpigaming.com. SafeHarbor StatementThis release contains "forward-looking statements" based on current expectations but involving known and unknown risks and uncertainties, such as statements relating to anticipated future sales or the timing thereof; the long-term growth and prospects of our business or any jurisdiction, including Macau, the Philippines, and Singapore; the duration or effects of unfavorable economic conditions which may reduce our product sales; and the long term potential of the RFID gaming chips market and the ability of Gaming Partners International to capitalize on any such growth opportunities. Actual results or achievements may be materially different from those expressed or implied. Gaming Partners International\'s plans and objectives are based on assumptions involving judgments with respect to future economic, competitive and market conditions, the timing and its ability to consummate, acquisitions, and future business decisions and other risks and uncertainties identified in Part I-Item 1A, "Risk Factors" of the Company\'s Form 10-K for the period ended December 31, 2008, all of which are difficult or impossible to predict accurately and many of which are beyond its control. Therefore, there can be no assurance that any forward-looking statement will prove to be accurate.

GAMING PARTNERS INTERNATIONAL CORPORATION                      CONDENSED CONSOLIDATED BALANCE SHEETS                                   (unaudited)                       (in thousands, except per share amounts)                                                  June 30,     December 31,                                                    2009          2008                                                    ----          ----    ASSETS    Current Assets:      Cash and cash equivalents                    $7,100        $5,547      Marketable securities                        10,948         7,561      Accounts receivable, less allowance       for doubtful accounts of $411       and $342, respectively                       4,789         5,422      Inventories                                   9,792         9,894      Prepaid expenses                                383           431      Deferred income tax asset                       672           691      Other current assets                          1,538           790                                                    -----         -----          Total current assets                     35,222        30,336    Property and equipment, net                    13,355        14,158    Goodwill                                        1,621         1,599    Other intangibles, net                            773           783    Deferred income tax asset                       1,666         1,666    Long-term marketable securities                   707           696    Inventories                                     1,239             -    Other assets, net                                 353           311                                                    -----         -----          Total assets                            $54,936       $49,549                                                  =======       =======    LIABILITIES AND STOCKHOLDERS\' EQUITY    Current Liabilities:      Current maturities of long-term debt           $541          $523      Accounts payable                              2,263         2,613      Accrued liabilities                           2,932         3,066      Customer deposits                             7,732         1,432      Income taxes payable                            153           312      Other current liabilities                       440           459                                                    -----         -----          Total current liabilities                14,061         8,405    Long-term debt, less current maturities         1,482         1,743    Deferred income tax liability                     525           585                                                    -----         -----          Total liabilities                        16,068        10,733                                                   ------        ------    Commitments and contingencies    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                   19,117        19,033      Treasury stock, at cost; 8,061 shares          (196)         (196)      Retained earnings                            16,984        17,312      Accumulated other comprehensive income        2,882         2,586                                                    -----         -----          Total stockholders\' equity               38,868        38,816                                                   ------        ------          Total liabilities and stockholders\'           equity                                 $54,936       $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       Six Months                                               Ended             Ended                                              June 30,          June 30,                                              --------          --------                                            2009     2008     2009     2008                                            ----     ----     ----     ----    Revenues                              $11,312  $18,856  $20,256  $30,981    Cost of revenues                        8,191   12,523   14,722   20,990                                            -----   ------   ------   ------      Gross profit                          3,121    6,333    5,534    9,991    Product development                        79       36      222       90    Marketing and sales                     1,080    1,151    2,063    2,314    General and administrative              1,890    2,739    4,070    5,577                                            -----    -----    -----    -----      Operating income (loss)                  72    2,407     (821)   2,010    Other income (expense)      Gain (loss) on foreign currency       transactions                           (68)      (9)      25     (268)      Interest income                          72       64      121      120      Interest expense                        (34)     (37)     (62)     (75)      Other income, net                         9       44       26       47                                             ----     ----     ----     ----      Income (loss) before income taxes        51    2,469     (711)   1,834    Income tax expense (benefit)             (119)     619     (383)     396                                             ----    -----    -----    -----      Net income (loss)                      $170   $1,850    $(328)  $1,438                                             ====   ======    =====   ======    Earnings per share:      Basic                                 $0.02    $0.23   $(0.04)   $0.18                                            =====    =====   ======    =====      Diluted                               $0.02    $0.23   $(0.04)   $0.18                                            =====    =====   ======    =====    Weighted-average shares of common stock     outstanding:      Basic                                 8,103    8,103    8,103    8,103                                            =====    =====    =====    =====      Diluted                               8,185    8,184    8,103    8,203                                            =====    =====    =====    =====    See notes to unaudited condensed consolidated financial statements.


Source: PRNewsWire

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