Exhibit 99.1
FOR IMMEDIATE RELEASE
Gaming Partners International Reports Financial Results for the Fourth Quarter and Year-end 2008
Las Vegas, Nevada, March 30, 2009 — Gaming Partners International Corporation (Nasdaq: GPIC), the leading worldwide provider of casino currency and table gaming equipment, today announced financial results for the fourth quarter and year ended December 31, 2008.
For the fourth quarter of 2008, the Company reported revenues of $15.7 million, which were down 21% compared to revenues of $19.9 million for the fourth quarter of 2007. Gross profit for the quarter was $5.5 million, or 35% of revenues, compared to $6.8 million, or 34% of revenues, in the same period a year ago.
Net income for the fourth quarter of 2008 was $1.8 million, or $0.22 per basic and diluted share, and up 100% compared to a net income of $0.9 million, or $0.11 per basic and diluted share, in the fourth quarter of 2007.
For the year ended December 31, 2008, revenues were $60.5 million, which were up 3% compared to revenues of $58.8 million in the year ended December 31, 2007. Gross profit for the year was $19.9 million, or 33% of revenues, compared to $17.5 million, or 30% of revenues, in 2007.
Net income for the year ended December 31, 2008 was $4.5 million, or $0.55 per basic and diluted share, compared to $0.2 million, or $0.03 per basic and diluted share, for the year ended December 31, 2007.
As of December 31, 2008, the Company had cash and marketable securities of $13.1 million, compared to $9.4 million as of December 31, 2007.
As of December 31, 2008, the Company had $38.8 million of stockholders’ equity, compared to $35.1 million as of December 31, 2007.
As of December 31, 2008, our backlog of unfilled orders, which are expected to be filled in 2009, was $13.0 million. Over $8.0 million of the backlog is for orders from two casinos in Asia that are expected to be delivered in the middle of the year, which the Company previously announced with its press release on January 16, 2009. At December 31, 2007, our backlog was $11.1 million.
Commenting on the results, Gerard Charlier, President and CEO, said, “We are pleased with our fourth quarter and year end results for 2008, especially given the difficult economic environment. This past year was the Company’s second best year in terms of both revenues and net income. Our continuing efforts to reduce costs contributed to these results. The move of our Bud Jones chip production from Las Vegas to Mexico is improving operating margins and we have made staff reductions as well as other cost reductions. However, the challenges facing the gaming industry will make 2009 a difficult year, especially in the first quarter. Nonetheless, we are positioning the company to meet the challenges we face and believe we can find success in the marketplace, such as the large orders we announced in January for the City of Dreams casino in Macau and the Newport City casino in Manila.”
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, 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, 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 |
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GAMING PARTNERS INTERNATIONAL CORPORATION
CONSOLIDATED BALANCE SHEETS
December 31,
(in thousands, except share amounts)
| | 2008 | | 2007 | |
ASSETS | | | | | |
Current Assets: | | | | | |
Cash and cash equivalents | | $ | 5,547 | | $ | 4,627 | |
Marketable securities | | 7,561 | | 4,730 | |
Accounts receivable, less allowance for doubtful accounts of $342 and $327, respectively | | 5,422 | | 5,811 | |
Inventories | | 9,894 | | 10,093 | |
Prepaid expenses | | 431 | | 487 | |
Deferred income tax asset | | 691 | | 893 | |
Other current assets | | 790 | | 1,459 | |
Total current assets | | 30,336 | | 28,100 | |
Property and equipment, net | | 14,158 | | 15,596 | |
Goodwill | | 1,599 | | 1,680 | |
Other intangibles, net | | 783 | | 1,023 | |
Deferred income tax asset | | 1,666 | | 1,514 | |
Long-term investments | | 696 | | 736 | |
Other assets, net | | 311 | | 660 | |
Total assets | | $ | 49,549 | | $ | 49,309 | |
| | | | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | |
Current Liabilities: | | | | | |
Current maturities of long-term debt | | $ | 523 | | $ | 689 | |
Accounts payable | | 2,613 | | 2,964 | |
Accrued liabilities | | 3,066 | | 4,418 | |
Customer deposits | | 1,432 | | 2,715 | |
Income taxes payable | | 312 | | 27 | |
Other current liabilities | | 459 | | 406 | |
Total current liabilities | | 8,405 | | 11,219 | |
Long-term debt, less current maturities | | 1,743 | | 2,273 | |
Deferred income tax liability | | 585 | | 455 | |
Other liabilities | | — | | 209 | |
Total liabilities | | 10,733 | | 14,156 | |
Commitments and contingencies - see Note 10 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 | | 19,033 | | 18,766 | |
Treasury stock, at cost; 8,061 shares | | (196 | ) | (196 | ) |
Retained earnings | | 17,312 | | 12,825 | |
Accumulated other comprehensive income | | 2,586 | | 3,677 | |
Total stockholders’ equity | | 38,816 | | 35,153 | |
Total liabilities and stockholders’ equity | | $ | 49,549 | | $ | 49,309 | |
See Notes to Consolidated Financial Statements
GAMING PARTNERS INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
December 31,
(in thousands, except per share amounts)
| | 2008 | | 2007 | |
Revenues | | $ | 60,546 | | $ | 58,821 | |
Cost of revenues | | 40,671 | | 41,355 | |
Gross profit | | 19,875 | | 17,466 | |
| | | | | |
Product development | | 201 | | 419 | |
Marketing and sales | | 4,263 | | 4,303 | |
General and administrative | | 10,071 | | 11,882 | |
Operating income | | 5,340 | | 862 | |
Other income (expense) | | | | | |
Gain (loss) on foreign currency transactions | | 268 | | (323 | ) |
Interest income | | 252 | | 334 | |
Interest expense | | (137 | ) | (190 | ) |
Other income, net | | 103 | | 374 | |
Income before income taxes | | 5,826 | | 1,057 | |
Income tax expense | | 1,339 | | 817 | |
Net income | | $ | 4,487 | | $ | 240 | |
| | | | | |
Earnings per share: | | | | | |
Basic | | $ | 0.55 | | $ | 0.03 | |
Diluted | | $ | 0.55 | | $ | 0.03 | |
Weighted-average shares of common stock outstanding: | | | | | |
Basic | | 8,103 | | 8,101 | |
Diluted | | 8,184 | | 8,242 | |
See Notes to Consolidated Financial Statements
Selected Quarterly Financial Information
| | Year Ended December 31, 2008 | |
| | First | | Second | | Third | | Fourth | | Total | |
| | (in thousands, except per share data) | |
| | | | | | | | | | | |
Net revenues | | $ | 12,125 | | $ | 18,856 | | $ | 13,820 | | $ | 15,745 | | $ | 60,546 | |
Gross profit (1) | | 3,659 | | 6,333 | | 4,420 | | 5,463 | | 19,875 | |
Operating (loss) income | | (396 | ) | 2,407 | | 1,318 | | 2,011 | | 5,340 | |
Net (loss) income | | $ | (412 | ) | $ | 1,850 | | $ | 1,247 | | $ | 1,802 | | $ | 4,487 | |
Net (loss) income per share: | | | | | | | | | | | |
Basic | | $ | (0.05 | ) | $ | 0.23 | | $ | 0.15 | | $ | 0.22 | | $ | 0.55 | |
Diluted | | $ | (0.05 | ) | $ | 0.23 | | $ | 0.15 | | $ | 0.22 | | $ | 0.55 | |
| | Year Ended December 31, 2007 | |
| | First | | Second | | Third | | Fourth | | Total | |
| | (in thousands, except per share data) | |
| | | | | | | | | | | |
Net revenues | | $ | 8,921 | | $ | 14,779 | | $ | 15,196 | | $ | 19,925 | | $ | 58,821 | |
Gross profit (1) | | 1,441 | | 4,470 | | 4,708 | | 6,847 | | 17,466 | |
Operating (loss) income | | (2,373 | ) | 289 | | 958 | | 1,988 | | 862 | |
Net (loss) income | | $ | (1,490 | ) | $ | 440 | | $ | 387 | | $ | 903 | | $ | 240 | |
Net (loss) income per share: | | | | | | | | | | | |
Basic | | $ | (0.18 | ) | $ | 0.05 | | $ | 0.05 | | $ | 0.11 | | $ | 0.03 | |
Diluted | | $ | (0.18 | ) | $ | 0.05 | | $ | 0.05 | | $ | 0.11 | | $ | 0.03 | |
