Exhibit 99.1
FOR IMMEDIATE RELEASE
Gaming Partners International Reports Financial Results for the Third Quarter and Nine Months of 2008
Las Vegas, Nevada, November 13, 2008 — 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 nine months of 2008.
For the third quarter of 2008, the Company reported revenues of $13.8 million, which were down 9% compared to revenues of $15.2 million for the third quarter of 2007. The decrease in revenues was primarily due to lower sales of casino chips to casinos in Macau in 2008 compared to 2007, offset by increased sales of American-style casino chips to casinos in the United States. Gross profit for the quarter was $4.6 million, or 33% of revenues, compared to $4.8 million, or 32% of revenues, in the same period a year ago.
Net income for the third quarter of 2008 was $1.2 million, or $0.15 per basic and diluted share, and up 200% compared to a net income of $0.4 million, or $0.05 per basic and diluted share, in the third quarter of 2007.
For the nine months ended September 30, 2008, revenues were $44.8 million, which were up 15% compared to revenues of $38.9 million in the first nine months of 2007. The increase in revenues was primarily due to sales of American-style casino chips to casinos in the United States and the strengthening of the euro against the dollar. Gross profit for the period was $14.8 million, or 33% of revenues, compared to $11.0 million, or 28% of revenues, in the comparable period in 2007.
Net income for the nine months ended September 30, 2008 was $2.7 million, or $0.33 per basic and diluted share, compared to net loss of $0.7 million, or $(0.08) per basic and diluted share, for the nine months ended September 30, 2007.
As of September 30, 2008, the Company had cash and marketable securities of $12.2 million, compared to $9.4 million as of December 31, 2007.
As of September 30, 2008, the Company had $37.5 million of stockholders’ equity, compared to $35.2 million as of December 31, 2007.
As of September 30, 2008, our backlog of unfilled orders, which are expected to be filled in 2008, was $9.4 million. At September 30, 2007, our backlog was $14.5 million.
Commenting on the results, Gerard Charlier, President and CEO, said, “We are pleased with our third quarter 2008 profit of $1.2 million, especially given the challenging environment in the gaming industry faced by our customers. Several things went well for us in the quarter, including better operational results due to improved gross margins and lower selling and administrative expenses, as well as a gain on foreign currency transactions and a lower effective tax rate.”
GPIC Announces Third Quarter Results/2-2-2-2
Charlier also remarked, “We are looking forward to the annual Global Gaming Expo next week in Las Vegas where we will be highlighting our expanding product line and displaying our new applications for our RFID casino products.”
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 GPIC to capitalize on any such growth opportunities. Actual results or achievements may be materially different from those expressed or implied. GPIC’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
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(in thousands, except share amounts)
|
| September 30, |
| December 31, |
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|
| 2008 |
| 2007 |
| ||
ASSETS |
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| ||
Current Assets: |
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|
|
|
| ||
Cash and cash equivalents |
| $ | 6,674 |
| $ | 4,627 |
|
Marketable securities |
| 5,500 |
| 4,730 |
| ||
Accounts receivable, less allowance for doubtful accounts of $430 and $327, respectively |
| 4,547 |
| 5,811 |
| ||
Inventories |
| 11,718 |
| 10,093 |
| ||
Prepaid expenses |
| 648 |
| 487 |
| ||
Deferred income tax asset |
| 851 |
| 893 |
| ||
Other current assets |
| 867 |
| 1,459 |
| ||
Total current assets |
| 30,805 |
| 28,100 |
| ||
Property and equipment, net |
| 14,592 |
| 15,596 |
| ||
Goodwill |
| 1,638 |
| 1,680 |
| ||
Other intangibles, net |
| 926 |
| 1,023 |
| ||
Deferred income tax asset |
| 1,517 |
| 1,514 |
| ||
Long-term investments |
| 715 |
| 736 |
| ||
Other assets, net |
| 242 |
| 660 |
| ||
Total Assets |
| $ | 50,435 |
| $ | 49,309 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current Liabilities: |
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Current maturities of long-term debt |
| $ | 530 |
| $ | 689 |
|
Accounts payable |
| 2,537 |
| 2,964 |
| ||
Accrued liabilities |
| 3,355 |
| 4,418 |
| ||
Customer deposits |
| 3,205 |
| 2,715 |
| ||
Income taxes payable |
| 341 |
| 27 |
| ||
Other current liabilities |
| 575 |
| 406 |
| ||
Total current liabilities |
| 10,543 |
| 11,219 |
| ||
Long-term debt, less current maturities |
| 1,902 |
| 2,273 |
| ||
Deferred income tax liability |
| — |
| 455 |
| ||
Other liabilities |
| 485 |
| 209 |
| ||
Total liabilities |
| 12,930 |
| 14,156 |
| ||
Commitments and contingencies - see Note 10 |
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Stockholders’ Equity: |
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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 |
| 18,997 |
| 18,766 |
| ||
Treasury stock, at cost; 8,061 shares |
| (196 | ) | (196 | ) | ||
Retained earnings |
| 15,509 |
| 12,825 |
| ||
Accumulated other comprehensive income |
| 3,114 |
| 3,677 |
| ||
Total stockholders’ equity |
| 37,505 |
| 35,153 |
| ||
Total Liabilities and Stockholders’ Equity |
| $ | 50,435 |
| $ | 49,309 |
|
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, |
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|
| 2008 |
| 2007 |
| 2008 |
| 2007 |
| ||||
Revenues |
| $ | 13,820 |
| $ | 15,196 |
| $ | 44,801 |
| $ | 38,896 |
|
Cost of revenues |
| 9,240 |
| 10,374 |
| 29,961 |
| 27,887 |
| ||||
Gross profit |
| 4,580 |
| 4,822 |
| 14,840 |
| 11,009 |
| ||||
|
|
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|
|
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|
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| ||||
Product development |
| 80 |
| 77 |
| 170 |
| 217 |
| ||||
Marketing and sales |
| 834 |
| 1,194 |
| 3,147 |
| 3,332 |
| ||||
General and administrative |
| 2,348 |
| 2,593 |
| 8,195 |
| 8,586 |
| ||||
Operating income (loss) |
| 1,318 |
| 958 |
| 3,328 |
| (1,126 | ) | ||||
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|
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|
|
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|
|
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Gain (loss) on foreign currency transactions |
| 280 |
| (8 | ) | 12 |
| (87 | ) | ||||
Interest income |
| 61 |
| 89 |
| 181 |
| 250 |
| ||||
Interest expense |
| (30 | ) | (49 | ) | (105 | ) | (147 | ) | ||||
Other income, net |
| 27 |
| 26 |
| 74 |
| 312 |
| ||||
Income (loss) before income taxes |
| 1,656 |
| 1,016 |
| 3,490 |
| (798 | ) | ||||
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Income tax expense (benefit) |
| 409 |
| 629 |
| 806 |
| (136 | ) | ||||
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Net income (loss) |
| $ | 1,247 |
| $ | 387 |
| $ | 2,684 |
| $ | (662 | ) |
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Earnings (loss) per share: |
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Basic |
| $ | 0.15 |
| $ | 0.05 |
| $ | 0.33 |
| $ | (0.08 | ) |
Diluted |
| $ | 0.15 |
| $ | 0.05 |
| $ | 0.33 |
| $ | (0.08 | ) |
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Weighted average shares of common stock outstanding: |
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| ||||
Basic |
| 8,103 |
| 8,103 |
| 8,103 |
| 8,100 |
| ||||
Diluted |
| 8,158 |
| 8,242 |
| 8,186 |
| 8,100 |
|
See notes to unaudited condensed consolidated financial statements.