EX-99.1 5 a09-18449_1ex99d1.htm EX-99.1

Exhibit 99.1

 

FOR IMMEDIATE RELEASE

 

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

 

Las Vegas, Nevada, August 13, 2009 – 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.

 

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®, Bourgogne et Grasset® and Bud Jones®) 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.

 

Safe Harbor Statement

This 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.

 

 

For more Information please contact:

For Gaming Partners International Corporation:

 

GPIC Contact:

David W. Grimes

702-598-2400

dgrimes@gpigaming.com

 

 

# # #

 


 

GAMING PARTNERS INTERNATIONAL CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

(in thousands, except 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 - 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

 

19,117

 

 

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 Ended

 

Six Months 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.