EX-99.1 5 a09-30815_1ex99d1.htm EX-99.1

Exhibit 99.1

 

FOR IMMEDIATE RELEASE

 

Gaming Partners International Reports Financial Results for the Third Quarter
and Nine Months of 2009

 

Las Vegas, Nevada, November 12, 2009 – Gaming Partners International Corporation (Nasdaq: GPIC), 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 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.”

 


 

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)

 

 

 

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.