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.