Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 02, 2018 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | Gaming Partners International CORP | |
Entity Central Index Key | 918,580 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Trading Symbol | GPIC | |
Entity Common Stock, Shares Outstanding | 7,954,523 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Current Assets: | ||
Cash and cash equivalents | $ 14,957 | $ 14,064 |
Accounts receivable, net | 8,446 | 7,415 |
Inventories | 14,340 | 15,118 |
Prepaid expenses | 916 | 1,290 |
Other current assets | 2,761 | 2,836 |
Total current assets | 41,420 | 40,723 |
Property and equipment, net | 23,038 | 24,933 |
Goodwill | 10,292 | 10,292 |
Intangible assets, net | 1,647 | 1,676 |
Investment | 383 | 411 |
Deferred income tax assets | 831 | 675 |
Inventories, non-current | 2,044 | 2,453 |
Other assets, non-current | 3,427 | 2,240 |
Total assets | 83,082 | 83,403 |
Current Liabilities: | ||
Accounts payable | 5,126 | 4,743 |
Accrued liabilities | 5,003 | 6,779 |
Customer deposits and deferred revenue | 5,122 | 3,020 |
Current portion of long-term debt | 1,514 | 1,401 |
Income taxes payable | 514 | 693 |
Total current liabilities | 17,279 | 16,636 |
Long-term debt | 2,466 | 5,265 |
Other liabilities, non-current | 183 | 186 |
Total liabilities | 19,928 | 22,087 |
Commitments and contingencies - see Note 10 | ||
Stockholders' Equity: | ||
Preferred stock, authorized 10,000,000 shares, $0.01 par value, none issued and outstanding | 0 | 0 |
Common stock, authorized 30,000,000 shares, $0.01 par value, 8,245,506 and 7,954,523 shares issued and outstanding, respectively, as of June 30, 2018, and 8,223,077 and 7,932,094 shares issued and outstanding, respectively, as of December 31, 2017 | 82 | 82 |
Additional paid-in capital | 19,411 | 19,272 |
Treasury stock at cost: 290,983 shares | (2,263) | (2,263) |
Retained earnings | 46,816 | 44,718 |
Accumulated other comprehensive loss | (892) | (493) |
Total stockholders' equity | 63,154 | 61,316 |
Total liabilities and stockholders' equity | $ 83,082 | $ 83,403 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS [Parenthetical] - $ / shares | Jun. 30, 2018 | Dec. 31, 2017 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares issued | 8,245,506 | 8,223,077 |
Common stock, shares outstanding | 7,954,523 | 7,932,094 |
Treasury stock, shares | 290,983 | 290,983 |
CONDENSED CONSOLIDATED INCOME S
CONDENSED CONSOLIDATED INCOME STATEMENTS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenues | $ 24,677 | $ 16,274 | $ 43,361 | $ 35,187 |
Cost of revenues | 16,341 | 12,416 | 30,090 | 25,510 |
Gross profit | 8,336 | 3,858 | 13,271 | 9,677 |
Marketing and sales | 1,861 | 1,476 | 3,628 | 3,203 |
General and administrative | 2,289 | 1,958 | 4,185 | 4,283 |
Research and development | 1,040 | 348 | 2,043 | 658 |
Operating income | 3,146 | 76 | 3,415 | 1,533 |
Other income (expense), net | 104 | 9 | (162) | (83) |
Income before income taxes | 3,250 | 85 | 3,253 | 1,450 |
Income tax expense | 745 | 36 | 746 | 470 |
Net income | $ 2,505 | $ 49 | $ 2,507 | $ 980 |
Earnings per share: | ||||
Basic | $ 0.32 | $ 0.01 | $ 0.32 | $ 0.12 |
Diluted | $ 0.31 | $ 0.01 | $ 0.31 | $ 0.12 |
Weighted-average shares of common stock outstanding: | ||||
Basic | 7,949 | 7,929 | 7,941 | 7,929 |
Diluted | 8,020 | 8,058 | 8,026 | 8,058 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Net income | $ 2,505 | $ 49 | $ 2,507 | $ 980 |
Other comprehensive income: | ||||
Foreign currency translation adjustment, net of tax | (849) | 909 | (399) | 1,116 |
Total comprehensive income | $ 1,656 | $ 958 | $ 2,108 | $ 2,096 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] |
Balance at Dec. 31, 2016 | $ 57,533 | $ 82 | $ 20,031 | $ (2,263) | $ 42,044 | $ (2,361) |
Balance (in shares) at Dec. 31, 2016 | 7,928,594 | |||||
Net income | 980 | $ 0 | 0 | 0 | 980 | 0 |
Common stock options exercised | 35 | $ 0 | 35 | 0 | 0 | 0 |
Common stock options exercised (in shares) | 3,500 | |||||
Stock compensation expense | 56 | $ 0 | 56 | 0 | 0 | 0 |
Foreign currency translation adjustment, net of tax | 1,116 | 0 | 0 | 0 | 0 | 1,116 |
Balance at Jun. 30, 2017 | 59,720 | $ 82 | 20,122 | (2,263) | 43,024 | (1,245) |
Balance (in shares) at Jun. 30, 2017 | 7,932,094 | |||||
Balance at Dec. 31, 2017 | 61,316 | $ 82 | 19,272 | (2,263) | 44,718 | (493) |
Balance (in shares) at Dec. 31, 2017 | 7,932,094 | |||||
Impact of change in accounting policy at Dec. 31, 2017 | (409) | $ 0 | 0 | 0 | (409) | 0 |
Net income | 2,507 | 0 | 0 | 0 | 2,507 | 0 |
Common stock options exercised | 139 | $ 0 | 139 | 0 | 0 | 0 |
Common stock options exercised (in shares) | 22,429 | |||||
Foreign currency translation adjustment, net of tax | (399) | $ 0 | 0 | 0 | 0 | (399) |
Balance at Jun. 30, 2018 | $ 63,154 | $ 82 | $ 19,411 | $ (2,263) | $ 46,816 | $ (892) |
Balance (in shares) at Jun. 30, 2018 | 7,954,523 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash Flows from Operating Activities | ||
Net income | $ 2,507 | $ 980 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation of property and equipment | 2,336 | 1,886 |
Amortization of intangible assets | 124 | 128 |
(Recovery) provision for bad debt | (70) | (322) |
Deferred income taxes | 76 | (397) |
Share based compensation expense | 0 | 56 |
Gain on disposal of property and equipment | 0 | (9) |
Equity loss in affiliate | 28 | 0 |
Change in operating assets and liabilities: | ||
Accounts receivable | (962) | 4,049 |
Inventories | 1,054 | (4,026) |
Prepaid expenses and other current assets | 413 | (467) |
Other assets, non-current | (1,862) | 447 |
Accounts payable | 326 | 3,383 |
Accrued liabilities | (1,561) | (2,164) |
Customer deposits and deferred revenue | 2,108 | 1,731 |
Income taxes payable | (178) | 85 |
Net cash provided by operating activities | 4,339 | 5,360 |
Cash Flows from Investing Activities | ||
Proceeds from sale of property and equipment | 0 | 9 |
Purchase of licensing rights | 0 | (100) |
Purchase of equity method investment | 0 | (451) |
Capital expenditures | (593) | (1,798) |
Net cash used in investing activities | (593) | (2,340) |
Cash Flows from Financing Activities | ||
Principal payments on long-term debt | (2,686) | (673) |
Proceeds from exercise of stock options | 139 | 35 |
Cash paid for exercise of stock appreciation right | (170) | 0 |
Net cash used in financing activities | (2,717) | (638) |
Effect of exchange rate changes on cash | (136) | 192 |
Net increase in cash and cash equivalents | 893 | 2,574 |
Cash and cash equivalents, beginning of period | 14,064 | 10,604 |
Cash and cash equivalents, end of period | 14,957 | 13,178 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 125 | 122 |
Cash paid for income taxes, net of refunds | 10 | 637 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Property and equipment acquired through accounts payable, accrued and non-current other liabilities | $ 142 | $ 886 |
Nature of Business and Signific
Nature of Business and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Business Description and Accounting Policies [Text Block] | Note 1. Nature of Business and Significant Accounting Policies Organization and Nature of Business Gaming Partners International Corporation (GPIC or the Company) is headquartered in North Las Vegas, Nevada. Our business activities include the manufacture and sale of casino currencies, playing cards, table accessories, table layouts, dice, gaming furniture, roulette wheels, and radio frequency identification (RFID) readers and software, all of which are used with casino table games such as blackjack, poker, baccarat, craps, and roulette. The Company has three operating subsidiaries: Gaming Partners International USA, Inc. (GPI USA) (including GPI Mexicana S.A. de C.V. (GPI Mexicana), our maquiladora manufacturing operation in Mexico, and GPI USA Blue Springs, our manufacturing facility in Missouri); Gaming Partners International SAS (GPI SAS); and Gaming Partners International Asia Limited (GPI Asia). Our subsidiaries have the following distribution and product focus: • GPI USA sells in the United States, Canada, the Caribbean, and Latin America. GPI USA sells our full product line, with most of the products manufactured in either San Luis Rio Colorado, Mexico, or Blue Springs, Missouri. The remainder is either manufactured in France or purchased from United States vendors. We warehouse inventory in San Luis, Arizona; Blue Springs, Missouri; and North Las Vegas, Nevada. We have sales offices in North Las Vegas, Nevada; Atlantic City, New Jersey; Gulfport, Mississippi; and Blue Springs, Missouri. • GPI SAS sells primarily in Europe and Africa out of its office in Beaune, France. GPI SAS predominantly sells casino currencies, including both American-style, known as chips, and European-style, known as plaques and jetons. Most of the products sold by GPI SAS are manufactured in France, with the remainder manufactured in Mexico. • GPI Asia, located in Macau S.A.R., China, distributes our full product line in the Asia-Pacific region. GPI Asia also sells table layouts that it manufactures in Macau S.A.R. We are one of the gaming industry’s leading manufacturers and suppliers of casino table game equipment. We custom manufacture and supply casino currencies, playing cards, table layouts, gaming furniture, table accessories, dice, roulette wheels, and RFID readers and software, all of which are used with casino table games such as blackjack, poker, baccarat, craps, and roulette. Our products fall into two categories – non-consumable and consumable. Non-consumable products consist of casino currencies, gaming furniture, and RFID solutions. These products typically have a useful life of several years or longer. Sales of non-consumables are typically driven by casino openings, expansions, and rebranding, as well as replacements in the normal course of business. Consumable products consist of playing cards, table accessories, table layouts, and dice. These products each have a useful life that ranges from several hours for playing cards and dice to several months for layouts. Casinos tend to buy these products annually if not more frequently. Significant Accounting Policies Basis of Consolidation and Presentation. The accompanying unaudited condensed consolidated financial statements of the Company and its subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) for interim financial information and in the form prescribed by the Securities and Exchange Commission (SEC), and do not include all of the information and notes required by U.S. GAAP for complete financial statements. These statements should be read in conjunction with our annual audited consolidated financial statements and related notes included in our most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2017, filed with the SEC on March 23, 2018. These unaudited condensed consolidated financial statements, in the opinion of management, reflect only normal and recurring adjustments necessary for a fair presentation of results and cash flows for the interim periods presented. The results of operations for an interim period are not necessarily indicative of the results for any other interim period or a full fiscal year. Recently Issued Accounting Standards and Not Yet Adopted. FASB) issued ASU) 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) Recently Adopted Accounting Standards. On December 22, 2017, the SEC staff issued Staff Accounting Bulletin 118 (“SAB 118”), which provides guidance on accounting for the tax effects of the Tax Cuts and Jobs Act (“Tax Act”). SAB 118 was added to the FASB codification in March 2018 with the issuance of ASU 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 . In accordance with the SAB 118 guidance, some of the income tax effects recorded by the Company in 2017 are provisional, including the one-time transition tax and the re-measurement of our deferred tax assets and liabilities. In addition, we are still evaluating the global intangible low-taxed income (GILTI) provisions of the Tax Act and their impact, if any, on our consolidated financial statements. The accounting for these income tax effects may be adjusted during 2018 as a result of our continuing analysis of the Tax Act; additional implementation guidance from the IRS, state tax authorities, the SEC, the FASB, or the Joint Committee on Taxation; and new information from domestic or foreign equity affiliates. As of June 30, 2018, the Company had not finalized its accounting and was still in the measurement period. In March 2017, the FASB issued ASU 2017-17, Compensation — Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . The amendments require that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The amendments are effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. In the first quarter of 2018 the Company adopted this guidance. It had no significant impact to the consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business . These amendments clarify the definition of a business. The amendments affect all companies and other reporting organizations that must determine whether they have acquired or sold a business. The amendments are effective for public companies for annual periods beginning after December 15, 2017, including interim periods within those periods. In the first quarter of 2018 the Company adopted this guidance retrospectively. It had no significant impact to the consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory . These amendments require an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. This guidance indicates that the former exception to income tax accounting that requires companies to defer the income tax effects of certain intercompany transactions would apply only to intercompany inventory transactions. That is, the exception no longer applies to intercompany sales and transfers of other assets (e.g., property and equipment or intangible assets). Under the former exception, income tax expense associated with intra-entity profits in an intercompany sale or transfer of assets was eliminated from earnings. Instead, that cost was deferred and recorded on the balance sheet (e.g., as a prepaid asset) until the assets left the consolidated group. Similarly, the entity was prohibited from recognizing deferred tax assets for the increases in tax bases due to the intercompany sale or transfer. A modified retrospective basis of adoption was required for this guidance. As a result, a cumulative-effect adjustment of approximately $0.4 million has been recorded to accumulated deficit on January 1, 2018, in connection with this adoption. This cumulative-effect adjustment relates to the prepaid expense associated with intra-entity transfers of property and equipment included in prepaid expenses and other current assets in the accompanying condensed consolidated balance sheet at December 31, 2017. In May 2014, the FASB issued ASU 2014-09, Revenues from Contracts with Customers (Topic 606) . This guidance applies to any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. This guidance supersedes existing revenue recognition guidance, including most industry-specific guidance, as well as certain related guidance on accounting for contract costs. To further assist with adoption and implementation of ASU 2014-09, the FASB issued the following ASUs: •ASU 2016-08 (Issued March 2016) - Principal versus Agent Consideration (Reporting Revenue Gross versus Net) •ASU 2016-10 (Issued April 2016) - Identifying Performance Obligations and Licensing •ASU 2016-12 (Issued May 2016) - Narrow-Scope Improvements and Practical Expedients •ASU 2016-20 (Issued December 2016) - Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers The guidance provides for a five-step model to determine the revenue recognized for the transfer of goods or services to customers that reflects the expected entitled consideration in exchange for those goods or services. It also provides clarification for principal versus agent considerations and identifying performance obligations. In addition, the FASB introduced practical expedients related to disclosures of remaining performance obligations, as well as other amendments to guidance on collectability, non-cash consideration and the presentation of sales and other similar taxes. Financial statement disclosures required under the guidance will enable users to understand the nature, amount, timing, judgments, and uncertainty of revenue and cash flows relating to customer contracts. The two permitted transition methods under the guidance are the full retrospective approach or a cumulative effect adjustment to the opening retained earnings in the year of adoption (cumulative effect approach). In the first quarter of 2018, we adopted this guidance using a modified retrospective method. It had no significant impact to the consolidated financial statements. Regarding the contract acquisition cost component of the guidance, the Company’s analysis supports use of the practical expedient when recognizing expense related to incremental costs incurred to acquire a contract, as the recovery of such costs is completed in less than one year’s time. Additionally, incremental costs to obtain contracts have been immaterial to date. Accordingly, the Company does not expect any material changes to the timing of when it recognizes expenses related to contract acquisition costs. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | Note 2. Revenue Recognition The majority of our revenue is derived from selling and distributing manufactured table game equipment to the casino industry. We recognize revenue after we have completed all of the following steps: - Identification of the contract, or contracts, with a customer - Identification of the performance obligations in the contract - Determination of the transaction price - Allocation of the transaction price to the performance obligations in the contract - Recognition of revenue when, or as, the Company satisfies a performance obligation Determining whether these steps have been met may require us to make assumptions and exercise judgment that could significantly impact the timing and amount of revenue reported each period. The majority of our contracts have a similar performance obligation which is the transfer of the individual goods ordered. The Company typically invoices the customer upon shipment. Depending on the size of the customer order we may require deposits that range from 30% to 100% of the total order. On occasion, we may recognize revenue under a bill and hold arrangement. The transfer of occurs at the point the items are ready for physical delivery and the customer is notified – i.e. when the product is manufactured, completed, invoiced, and segregated from our other inventory so that it is not subject to being used to fill other orders. The customer must request a bill and hold arrangement, preferably in writing, and must commit to the purchase. Under the RFID solutions product line, we may recognize revenue from entering into new arrangements which include software and/or multiple elements or deliverables, which include RFID equipment, embedded software licenses, and software maintenance services. In such cases, the Company accounts for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. The Company determines the standalone selling prices based on the Company's overall pricing objectives, taking into consideration historical selling prices, market conditions, costs to provide certain services and other factors. A portion of our revenue under RFID solutions is generated by new or existing software and hardware maintenance arrangements. Under these arrangements, customers pay in advance for the maintenance of the hardware or the software. As of June 30, 2018, the Company had contracts with unsatisfied performance obligations extending throughout 2020. Most of our contracts are for one year and renew on March 1 st The application of our revenue recognition policies and changes in our assumptions or judgments affect the timing and amounts of our revenues and costs, as well as deferred revenue. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 6 Months Ended |
Jun. 30, 2018 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents, and Marketable Securities [Text Block] | Note 3. Cash and Cash Equivalents We hold our cash and cash equivalents in various financial institutions in the countries shown below. Substantially all accounts have balances in excess of government-insured limits. The following table summarizes our holdings (in thousands): June 30, 2018 December 31, 2017 Macau S.A.R., China $ 6,101 $ 2,517 United States (including Mexico) 5,839 4,936 France 3,017 6,611 Total $ 14,957 $ 14,064 |
Accounts Receivable
Accounts Receivable | 6 Months Ended |
Jun. 30, 2018 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | Note 4. Accounts Receivable At June 30, 2018, and December 31, 2017, no casino customer accounted for 10% or more of our accounts receivable balance. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | Note 5. Inventories Inventories consisted of the following (in thousands): June 30, 2018 December 31, 2017 Raw materials $ 10,752 $ 11,637 Work in progress 1,350 2,432 Finished goods 4,282 3,502 Total inventories $ 16,384 $ 17,571 We classified a portion of our inventories as non-current because we do not expect this portion to be used within one year. The classification of our inventories on our unaudited condensed consolidated balance sheets was as follows (in thousands): June 30, 2018 December 31, 2017 Current $ 14,340 $ 15,118 Non-current 2,044 2,453 Total inventories $ 16,384 $ 17,571 |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | Note 6. Property and Equipment Property and equipment consisted of the following (in thousands): June 30, 2018 December 31, 2017 Land $ 669 $ 669 Buildings and improvements 11,204 11,196 Equipment and furniture 40,696 40,714 Vehicles 407 408 Construction in progress 192 529 53,168 53,516 Less accumulated depreciation (30,130 ) (28,583 ) Property and equipment, net $ 23,038 $ 24,933 Depreciation expense for the three months ended June 30, 2018 and 2017 was $1.3 million and $1.0 million, respectively. Depreciation expense for the six months ended June 30, 2018 and 2017 was $2.3 million and $1.9 million, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Disclosure [Text Block] | Note 7. Goodwill and Intangible Assets We had goodwill of $10.3 million as of both June 30, 2018 and December 31, 2017. Intangible assets consisted of the following (in thousands): June 30, 2018 December 31, 2017 Gross Carrying Amount Accum Amort Net Carrying Amount Gross Carrying Amount Accum Amort Net Carrying Amount Estimated Useful Life (Years) Trademarks $ 1,711 $ (761 ) $ 950 $ 1,711 $ (700 ) $ 1,011 10-15 Customer list 1,101 (508 ) 593 897 (353 ) 544 10-15 Patents 542 (537 ) 5 542 (534 ) 8 13-14 Other intangible assets 472 (373 ) 99 472 (359 ) 113 3-10 Total intangible assets $ 3,826 $ (2,179 ) $ 1,647 $ 3,622 $ (1,946 ) $ 1,676 Amortization expense for intangible assets for the three months ended June 30, 2018 and 2017 was $62,000 and $65,000, respectively. Amortization expense for intangible assets for the six months ended June 30, 2018 and 2017 was $124,000 and $128,000, respectively. The increase in the gross carrying value of the customer list is a result of ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. See Note 1 for more details. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Note 8. Debt On June 26, 2015, the Company entered into a Credit Agreement with Nevada State Bank to borrow a combined $15.0 million, consisting of a $10.0 million seven-year term loan and a $5.0 million five-year revolving loan. The Company borrowed the full amount under the term loan and has not drawn on funds under the revolving loan. The term loan will mature on June 26, 2022, and the revolving loan will mature on June 26, 2020. The Credit Agreement contains customary representations, warranties, and events of default, and affirmative, negative and financial covenants. The covenants contain, among other things, limitations on the Company's and its subsidiaries' ability to merge, consolidate, dispose of assets, or incur liens or certain indebtedness. The Company is required to maintain a fixed charge coverage ratio greater than 1.15 to 1.00 and leverage ratio less than 3.00 to 1.00. The Company was in compliance with all financial covenants as of June 30, 2018. Interest on funds borrowed under the term loan and the revolving loan are charged at a rate per annum equal to LIBOR, 2.1% at June 30, 2018, plus 2.25%. The term loan has a straight-line seven-year amortization schedule. In June 2018, we made a $2.0 million early against the outstanding term loan. At June 30, 2018, estimated repayment obligations for the principal balance of long-term debt were as follows (in thousands): Years Ending December 31, Outstanding Debt 2018 (6 months) $ 749 2019 1,546 2020 1,613 2021 72 $ 3,980 |
Stock Appreciation Rights Liabi
Stock Appreciation Rights Liability | 6 Months Ended |
Jun. 30, 2018 | |
Stock Appreciation Rights Liability [Abstract] | |
Stock appreciation rights liability [Text Block] | Note 9. Stock Appreciation Rights Liability At June 30, 2018 and at December 31, 2017 the stock appreciation rights liability was $0.6 million and $1.2 million, respectively. The $0.6 million decrease is due to the period change in the fair value of the outstanding rights for $0.4 million and the payment of $0.2 million of stock appreciation rights, offset by $40,000 for additional stock appreciation rights granted in 2018. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Note 10. Commitments and Contingencies On January 26, 2018, the Company entered into global strategic agreements for development, licensing, and revenue sharing with both BrainChip Holdings Limited (ASX: BRN), a leading developer of software and hardware accelerated solutions for advanced artificial intelligence and machine learning applications, and Xuvi, LLC, developers of an immersive data analytics and automation platform. The companies plan to jointly develop products for worldwide deployment in casino currency security, table game operations, and player behavior applications. The terms require payments to BrainChip Holdings Limited and Xuvi, LLC of approximately $0.6 million and $0.7 million, respectively, and are contingent upon completion of project phases. $1.0 . Operating Lease Commitments The Company has various operating leases that are used in the normal course of business. The operating leases consist of buildings and equipment that expire on various dates through 2023. At June 30, 2018, minimum lease payment obligations were as follows (in thousands): Minimum Lease Years Ending December 31, Payments 2018 (6 months) $ 609 2019 944 2020 670 2021 634 2022 567 Thereafter 339 Total $ 3,763 Legal Proceedings and Contingencies From time to time we are engaged in disputes and claims that arise in the normal course of business. We believe that the ultimate outcome of these proceedings will not have a material adverse impact on our condensed consolidated financial position or results of operations, but the outcome of these actions is inherently difficult to predict. There can be no assurance that we will prevail in any such litigation. Liabilities for material claims against us are accrued when a loss is considered probable and can be reasonably estimated. Legal costs associated with claims are expensed as incurred. |
Geographic and Product Line Inf
Geographic and Product Line Information | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Note 11. Geographic and Product Line Information We manufacture and sell casino table game equipment in one operating segment - casino table game products. Although the Company derives its revenues from a number of different product lines, the Company neither allocates resources based on the operating results from the individual product lines, nor manages each individual product line as a separate business unit. Our chief operating decision maker is our Chief Executive Officer (CEO). The CEO manages our operations on a consolidated basis to make decisions about overall corporate resource allocation and to assess overall corporate profitability. Our CEO is also the chief operating manager for each of our entities in the United States, France, and Macau S.A.R.; that is, the individual locations do not have “segment,” or “product line,” managers who report to our CEO. The following tables present our revenue by geographic area (dollars in thousands): Three Months Ended June 30, 2018 2017 Revenues The Americas $ 16,940 68.6 % $ 13,560 83.3 % Asia-Pacific 6,759 27.4 % 2,087 12.8 % Europe and Africa 978 4.0 % 627 3.9 % Total $ 24,677 100.0 % $ 16,274 100.0 % Six Months Ended June 30, 2018 2017 Revenues The Americas $ 30,807 71.0 % $ 27,823 79.1 % Asia-Pacific 10,821 25.0 % 6,208 17.6 % Europe and Africa 1,733 4.0 % 1,156 3.3 % Total $ 43,361 100.0 % $ 35,187 100.0 % The following tables present our revenue by product line (dollars in thousands): Three Months Ended June 30, 2018 2017 Casino currency without RFID $ 5,671 23.0 % $ 3,498 21.5 % Casino currency with RFID 5,542 22.5 % 1,204 7.4 % Total casino currency 11,213 45.5 % 4,702 28.9 % Playing cards 6,084 24.6 % 6,181 38.0 % Table accessories and other products 2,147 8.7 % 1,591 9.8 % Table layouts 1,522 6.2 % 1,246 7.7 % Gaming furniture 1,384 5.6 % 790 4.9 % Dice 756 3.1 % 723 4.4 % RFID solutions 506 2.0 % 317 1.9 % Shipping 1,065 4.3 % 724 4.4 % Total $ 24,677 100.0 % $ 16,274 100.0 % Six Months Ended June 30, 2018 2017 Casino currency without RFID $ 9,518 22.0 % $ 7,393 21.0 % Casino currency with RFID 9,318 21.5 % 3,962 11.3 % Total casino currency 18,836 43.5 % 11,355 32.3 % Playing cards 11,840 27.3 % 12,516 35.6 % Table accessories and other products 3,611 8.3 % 3,484 9.9 % Table layouts 2,971 6.9 % 2,548 7.2 % Gaming furniture 1,869 4.3 % 1,542 4.4 % Dice 1,441 3.3 % 1,424 4.0 % RFID solutions 961 2.2 % 689 2.0 % Shipping 1,832 4.2 % 1,629 4.6 % Total $ 43,361 100.0 % $ 35,187 100.0 % The following table presents our property and equipment by geographic area (in thousands): Property and equipment, net: June 30, 2018 December 31, 2017 United States $ 12,917 $ 13,708 Mexico 5,678 6,851 France 3,999 3,936 Macau S.A.R., China 444 438 Total $ 23,038 $ 24,933 The following table presents our intangible assets by geographic area (in thousands): Intangible assets, net: June 30, 2018 December 31, 2017 United States $ 1,522 $ 1,634 Asia 125 42 Total $ 1,647 $ 1,676 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Note 12. Earnings Per Share The weighted-average number of common shares outstanding used in the computation of basic and diluted earnings per share was as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Weighted-average number of common shares outstanding - basic 7,949 7,929 7,941 7,929 Potential dilution from equity grants 71 129 85 129 Weighted-average number of common shares outstanding - diluted 8,020 8,058 8,026 8,058 At June 30, 2018, we had certain outstanding stock options to purchase common stock which had exercise prices greater than the average market price. These anti-dilutive options have been excluded from the computation of diluted earnings per share (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Outstanding anti-dilutive options 85 20 58 16 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Note 13. Income Taxes The Tax Cuts and Jobs Act (Tax Act) was enacted on December 22, 2017 and reduces the U.S. statutory federal corporate tax rate from 34% to 21%. The effective date of the tax rate change was January 1, 2018. As a result, we adjusted our annual effective tax rate for the three and six months ended June 30, 2018, as well as adjusted our U.S. net deferred tax asset balance at the lower rates. In the first six months of 2018, the Company did not record an expense or benefit related to the Tax Act. We are subject to taxation in the U.S. and various states and foreign jurisdictions. With few exceptions, the tax years 2014 through 2017 remain open to examination under the statute of limitations by the U.S. Internal Revenue Service (IRS) and various states for GPIC and GPI USA and by the Government of the Macau Special Administrative Region - Financial Services Bureau for GPI Asia. Only tax years 2015 to 2017 remain open to examination under the statute of limitations by the French Tax Administration (FTA) for GPI SAS. In 2015, the FTA started an examination of GPI SAS for tax years 2013 and 2012 that is on-going. In the first quarter of 2018, in connection with the FTA’s examination of GPI SAS for tax years 2013 and 2012, GPI paid €1.4 million to the FTA. While we were legally obligated to pay this amount, which represents the FTA’s calculation of the taxes owed, this payment does not represent a settlement nor the end of the examination and we are actively disputing the findings of the FTA. In addition to the on-going FTA examination of GPI SAS for tax years 2013 and 2012, the Company received notification in August 2017 of a federal income tax examination by the IRS for the 2015 tax year. The examination is substantially completed and as a result, at the end of June 30, 2018, we accrued $0.1 million of additional tax expense. As of June 30, 2018, there was no change to at December 31, 2017. The $0.1 million accrual in relation to the FTA examination is in addition to the unrecognized tax benefit amount. |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Note 14. Subsequent Event On August 1, 2018, the Company issued an 8-K announcing Gregory Gronau’s resignation as Chief Executive Officer, President, Director, Secretary, and Treasurer, effective September 21, 2018. Mr. Gronau’s resignation is for personal reasons, and not a result of any disagreement with the Company or its management. The Company and Mr. Gronau also entered in a consulting agreement pursuant to which Mr. Gronau will provide part-time consulting services to the Company following his date of departure until December 31, 2018 in exchange for payments of $10,000 per month. To ensure continuity going forward, Chief Financial Officer and Chairman of the Board Alain M. Thieffry, age 62, appointed. The Company will begin an executive search for a new CEO and no changes in its goals or objectives are planned. |
Nature of Business and Signif22
Nature of Business and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Basis of Consolidation and Presentation. The accompanying unaudited condensed consolidated financial statements of the Company and its subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) for interim financial information and in the form prescribed by the Securities and Exchange Commission (SEC), and do not include all of the information and notes required by U.S. GAAP for complete financial statements. These statements should be read in conjunction with our annual audited consolidated financial statements and related notes included in our most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2017, filed with the SEC on March 23, 2018. These unaudited condensed consolidated financial statements, in the opinion of management, reflect only normal and recurring adjustments necessary for a fair presentation of results and cash flows for the interim periods presented. The results of operations for an interim period are not necessarily indicative of the results for any other interim period or a full fiscal year. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Standards and Not Yet Adopted. FASB) issued ASU) 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) Recently Adopted Accounting Standards. On December 22, 2017, the SEC staff issued Staff Accounting Bulletin 118 (“SAB 118”), which provides guidance on accounting for the tax effects of the Tax Cuts and Jobs Act (“Tax Act”). SAB 118 was added to the FASB codification in March 2018 with the issuance of ASU 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 . In accordance with the SAB 118 guidance, some of the income tax effects recorded by the Company in 2017 are provisional, including the one-time transition tax and the re-measurement of our deferred tax assets and liabilities. In addition, we are still evaluating the global intangible low-taxed income (GILTI) provisions of the Tax Act and their impact, if any, on our consolidated financial statements. The accounting for these income tax effects may be adjusted during 2018 as a result of our continuing analysis of the Tax Act; additional implementation guidance from the IRS, state tax authorities, the SEC, the FASB, or the Joint Committee on Taxation; and new information from domestic or foreign equity affiliates. As of June 30, 2018, the Company had not finalized its accounting and was still in the measurement period. In March 2017, the FASB issued ASU 2017-17, Compensation — Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . The amendments require that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The amendments are effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. In the first quarter of 2018 the Company adopted this guidance. It had no significant impact to the consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business . These amendments clarify the definition of a business. The amendments affect all companies and other reporting organizations that must determine whether they have acquired or sold a business. The amendments are effective for public companies for annual periods beginning after December 15, 2017, including interim periods within those periods. In the first quarter of 2018 the Company adopted this guidance retrospectively. It had no significant impact to the consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory . These amendments require an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. This guidance indicates that the former exception to income tax accounting that requires companies to defer the income tax effects of certain intercompany transactions would apply only to intercompany inventory transactions. That is, the exception no longer applies to intercompany sales and transfers of other assets (e.g., property and equipment or intangible assets). Under the former exception, income tax expense associated with intra-entity profits in an intercompany sale or transfer of assets was eliminated from earnings. Instead, that cost was deferred and recorded on the balance sheet (e.g., as a prepaid asset) until the assets left the consolidated group. Similarly, the entity was prohibited from recognizing deferred tax assets for the increases in tax bases due to the intercompany sale or transfer. A modified retrospective basis of adoption was required for this guidance. As a result, a cumulative-effect adjustment of approximately $0.4 million has been recorded to accumulated deficit on January 1, 2018, in connection with this adoption. This cumulative-effect adjustment relates to the prepaid expense associated with intra-entity transfers of property and equipment included in prepaid expenses and other current assets in the accompanying condensed consolidated balance sheet at December 31, 2017. In May 2014, the FASB issued ASU 2014-09, Revenues from Contracts with Customers (Topic 606) . This guidance applies to any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. This guidance supersedes existing revenue recognition guidance, including most industry-specific guidance, as well as certain related guidance on accounting for contract costs. To further assist with adoption and implementation of ASU 2014-09, the FASB issued the following ASUs: •ASU 2016-08 (Issued March 2016) - Principal versus Agent Consideration (Reporting Revenue Gross versus Net) •ASU 2016-10 (Issued April 2016) - Identifying Performance Obligations and Licensing •ASU 2016-12 (Issued May 2016) - Narrow-Scope Improvements and Practical Expedients •ASU 2016-20 (Issued December 2016) - Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers The guidance provides for a five-step model to determine the revenue recognized for the transfer of goods or services to customers that reflects the expected entitled consideration in exchange for those goods or services. It also provides clarification for principal versus agent considerations and identifying performance obligations. In addition, the FASB introduced practical expedients related to disclosures of remaining performance obligations, as well as other amendments to guidance on collectability, non-cash consideration and the presentation of sales and other similar taxes. Financial statement disclosures required under the guidance will enable users to understand the nature, amount, timing, judgments, and uncertainty of revenue and cash flows relating to customer contracts. The two permitted transition methods under the guidance are the full retrospective approach or a cumulative effect adjustment to the opening retained earnings in the year of adoption (cumulative effect approach). In the first quarter of 2018, we adopted this guidance using a modified retrospective method. It had no significant impact to the consolidated financial statements. Regarding the contract acquisition cost component of the guidance, the Company’s analysis supports use of the practical expedient when recognizing expense related to incremental costs incurred to acquire a contract, as the recovery of such costs is completed in less than one year’s time. Additionally, incremental costs to obtain contracts have been immaterial to date. Accordingly, the Company does not expect any material changes to the timing of when it recognizes expenses related to contract acquisition costs. |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents [Table Text Block] | The following table summarizes our holdings (in thousands): June 30, 2018 December 31, 2017 Macau S.A.R., China $ 6,101 $ 2,517 United States (including Mexico) 5,839 4,936 France 3,017 6,611 Total $ 14,957 $ 14,064 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories consisted of the following (in thousands): June 30, 2018 December 31, 2017 Raw materials $ 10,752 $ 11,637 Work in progress 1,350 2,432 Finished goods 4,282 3,502 Total inventories $ 16,384 $ 17,571 |
Schedule of Inventory [Table Text Block] | We classified a portion of our inventories as non-current because we do not expect this portion to be used within one year. The classification of our inventories on our unaudited condensed consolidated balance sheets was as follows (in thousands): June 30, 2018 December 31, 2017 Current $ 14,340 $ 15,118 Non-current 2,044 2,453 Total inventories $ 16,384 $ 17,571 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property and equipment consisted of the following (in thousands): June 30, 2018 December 31, 2017 Land $ 669 $ 669 Buildings and improvements 11,204 11,196 Equipment and furniture 40,696 40,714 Vehicles 407 408 Construction in progress 192 529 53,168 53,516 Less accumulated depreciation (30,130 ) (28,583 ) Property and equipment, net $ 23,038 $ 24,933 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Intangible assets consisted of the following (in thousands): June 30, 2018 December 31, 2017 Gross Carrying Amount Accum Amort Net Carrying Amount Gross Carrying Amount Accum Amort Net Carrying Amount Estimated Useful Life (Years) Trademarks $ 1,711 $ (761 ) $ 950 $ 1,711 $ (700 ) $ 1,011 10-15 Customer list 1,101 (508 ) 593 897 (353 ) 544 10-15 Patents 542 (537 ) 5 542 (534 ) 8 13-14 Other intangible assets 472 (373 ) 99 472 (359 ) 113 3-10 Total intangible assets $ 3,826 $ (2,179 ) $ 1,647 $ 3,622 $ (1,946 ) $ 1,676 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Long-term Debt [Table Text Block] | At June 30, 2018, estimated repayment obligations for the principal balance of long-term debt were as follows (in thousands): Years Ending December 31, Outstanding Debt 2018 (6 months) $ 749 2019 1,546 2020 1,613 2021 72 $ 3,980 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual Obligation, Fiscal Year Maturity Schedule [Table Text Block] | At June 30, 2018, minimum lease payment obligations were as follows (in thousands): Minimum Lease Years Ending December 31, Payments 2018 (6 months) $ 609 2019 944 2020 670 2021 634 2022 567 Thereafter 339 Total $ 3,763 |
Geographic and Product Line I29
Geographic and Product Line Information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Revenue from Foreign Countries by Geographic Area [Table Text Block] | The following tables present our revenue by geographic area (dollars in thousands): Three Months Ended June 30, 2018 2017 Revenues The Americas $ 16,940 68.6 % $ 13,560 83.3 % Asia-Pacific 6,759 27.4 % 2,087 12.8 % Europe and Africa 978 4.0 % 627 3.9 % Total $ 24,677 100.0 % $ 16,274 100.0 % Six Months Ended June 30, 2018 2017 Revenues The Americas $ 30,807 71.0 % $ 27,823 79.1 % Asia-Pacific 10,821 25.0 % 6,208 17.6 % Europe and Africa 1,733 4.0 % 1,156 3.3 % Total $ 43,361 100.0 % $ 35,187 100.0 % |
Schedule of Product Revenue [Table Text Block] | The following tables present our revenue by product line (dollars in thousands): Three Months Ended June 30, 2018 2017 Casino currency without RFID $ 5,671 23.0 % $ 3,498 21.5 % Casino currency with RFID 5,542 22.5 % 1,204 7.4 % Total casino currency 11,213 45.5 % 4,702 28.9 % Playing cards 6,084 24.6 % 6,181 38.0 % Table accessories and other products 2,147 8.7 % 1,591 9.8 % Table layouts 1,522 6.2 % 1,246 7.7 % Gaming furniture 1,384 5.6 % 790 4.9 % Dice 756 3.1 % 723 4.4 % RFID solutions 506 2.0 % 317 1.9 % Shipping 1,065 4.3 % 724 4.4 % Total $ 24,677 100.0 % $ 16,274 100.0 % Six Months Ended June 30, 2018 2017 Casino currency without RFID $ 9,518 22.0 % $ 7,393 21.0 % Casino currency with RFID 9,318 21.5 % 3,962 11.3 % Total casino currency 18,836 43.5 % 11,355 32.3 % Playing cards 11,840 27.3 % 12,516 35.6 % Table accessories and other products 3,611 8.3 % 3,484 9.9 % Table layouts 2,971 6.9 % 2,548 7.2 % Gaming furniture 1,869 4.3 % 1,542 4.4 % Dice 1,441 3.3 % 1,424 4.0 % RFID solutions 961 2.2 % 689 2.0 % Shipping 1,832 4.2 % 1,629 4.6 % Total $ 43,361 100.0 % $ 35,187 100.0 % |
Schedule of Property Plant and Equipment by Geographic Area [Table Text Block] | The following table presents our property and equipment by geographic area (in thousands): Property and equipment, net: June 30, 2018 December 31, 2017 United States $ 12,917 $ 13,708 Mexico 5,678 6,851 France 3,999 3,936 Macau S.A.R., China 444 438 Total $ 23,038 $ 24,933 |
Schedule of Intangible Assets and Goodwill [Table Text Block] | The following table presents our intangible assets by geographic area (in thousands): Intangible assets, net: June 30, 2018 December 31, 2017 United States $ 1,522 $ 1,634 Asia 125 42 Total $ 1,647 $ 1,676 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares [Table Text Block] | The weighted-average number of common shares outstanding used in the computation of basic and diluted earnings per share was as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Weighted-average number of common shares outstanding - basic 7,949 7,929 7,941 7,929 Potential dilution from equity grants 71 129 85 129 Weighted-average number of common shares outstanding - diluted 8,020 8,058 8,026 8,058 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | These anti-dilutive options have been excluded from the computation of diluted earnings per share (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Outstanding anti-dilutive options 85 20 58 16 |
Nature of Business and Signif31
Nature of Business and Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ (400) | $ (409) |
Operating Leases, Future Minimum Payments Due | $ 3,763 |
Revenue Recognition (Details Te
Revenue Recognition (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Deferred Revenue, Current | $ 400 | $ 400 | $ 100 | ||
Revenue from Contract with Customer, Including Assessed Tax | 24,677 | $ 16,274 | 43,361 | $ 35,187 | |
Software And Hardware Maintenance Contracts Revenue [Member] | |||||
Revenue from Contract with Customer, Including Assessed Tax | $ 150 | $ 150 | $ 300 | $ 300 |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Cash and Cash Equivalents [Line Items] | ||||
Cash and Cash Equivalents | $ 14,957 | $ 14,064 | $ 13,178 | $ 10,604 |
United States (including Mexico) [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and Cash Equivalents | 5,839 | 4,936 | ||
Macau S.A.R., China [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and Cash Equivalents | 6,101 | 2,517 | ||
France [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and Cash Equivalents | $ 3,017 | $ 6,611 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Inventory [Line Items] | ||
Raw materials | $ 10,752 | $ 11,637 |
Work in progress | 1,350 | 2,432 |
Finished goods | 4,282 | 3,502 |
Total inventories | $ 16,384 | $ 17,571 |
Inventories (Details 1)
Inventories (Details 1) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Inventory [Line Items] | ||
Current | $ 14,340 | $ 15,118 |
Non-current | 2,044 | 2,453 |
Total inventories | $ 16,384 | $ 17,571 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Land | $ 669 | $ 669 |
Buildings and improvements | 11,204 | 11,196 |
Equipment and furniture | 40,696 | 40,714 |
Vehicles | 407 | 408 |
Construction in progress | 192 | 529 |
Property, Plant and Equipment, Gross | 53,168 | 53,516 |
Less accumulated depreciation | (30,130) | (28,583) |
Property and equipment, net | $ 23,038 | $ 24,933 |
Property and Equipment (Detai37
Property and Equipment (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation | $ 1,300 | $ 1,000 | $ 2,336 | $ 1,886 |
Goodwill and Intangible Asset38
Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Gross Carrying Amount | $ 3,826 | $ 3,622 |
Intangible assets, Accumulated Amortization | (2,179) | (1,946) |
Intangible assets, Net Carrying Amount | 1,647 | 1,676 |
Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Gross Carrying Amount | 1,711 | 1,711 |
Intangible assets, Accumulated Amortization | (761) | (700) |
Intangible assets, Net Carrying Amount | $ 950 | 1,011 |
Trademarks [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Estimated Useful Life (Years) | 10 years | |
Trademarks [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Estimated Useful Life (Years) | 15 years | |
Customer List [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Gross Carrying Amount | $ 1,101 | 897 |
Intangible assets, Accumulated Amortization | (508) | (353) |
Intangible assets, Net Carrying Amount | $ 593 | 544 |
Customer List [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Estimated Useful Life (Years) | 10 years | |
Customer List [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Estimated Useful Life (Years) | 15 years | |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Gross Carrying Amount | $ 542 | 542 |
Intangible assets, Accumulated Amortization | (537) | (534) |
Intangible assets, Net Carrying Amount | $ 5 | 8 |
Patents [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Estimated Useful Life (Years) | 13 years | |
Patents [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Estimated Useful Life (Years) | 14 years | |
Other Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Gross Carrying Amount | $ 472 | 472 |
Intangible assets, Accumulated Amortization | (373) | (359) |
Intangible assets, Net Carrying Amount | $ 99 | $ 113 |
Other Intangible Assets [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Estimated Useful Life (Years) | 3 years | |
Other Intangible Assets [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Estimated Useful Life (Years) | 10 years |
Goodwill and Intangible Asset39
Goodwill and Intangible Assets (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization Of Intangible Assets | $ 62 | $ 65 | $ 124 | $ 128 | |
Goodwill | $ 10,292 | $ 10,292 | $ 10,292 |
Debt (Details)
Debt (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Principal Balance | |
2018 (6 months) | $ 749 |
2,019 | 1,546 |
2,020 | 1,613 |
2,021 | 72 |
Total | $ 3,980 |
Debt (Details Textual)
Debt (Details Textual) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended |
Jun. 26, 2015 | Jun. 30, 2018 | |
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Interest Rate Description | a rate per annum equal to LIBOR, 2.1% at June 30, 2018, plus 2.25% | |
Payments for Early Reimbursement Against Outstanding Term Loan | $ 2 | |
London Interbank Offered Rate (LIBOR) [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.10% | |
Nevada State Bank [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 15 | |
Long-term Debt [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Expiration Date | Jun. 26, 2022 | |
Long-term Debt [Member] | Nevada State Bank [Member] | ||
Line of Credit Facility [Line Items] | ||
Long-term Line of Credit | 10 | |
Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Expiration Date | Jun. 26, 2020 | |
Revolving Credit Facility [Member] | Nevada State Bank [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Remaining Borrowing Capacity | $ 5 |
Stock Appreciation Rights Lia42
Stock Appreciation Rights Liability (Details Textual) - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Stock appreciation rights liabilities | $ 600,000 | $ 1,200,000 |
Decrease in Stock Appreciation Liability | 600,000 | |
Stock Appreciation Rights Exercised | 200,000 | |
Fair Value of Stock Appreciation Rights | 400,000 | |
Additional Stock Appreciation Rights Expense | $ 40,000 |
Commitments and Contingencies43
Commitments and Contingencies (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Operating Leases, Future Minimum Payments | |
2018 (6 months) | $ 609 |
2,019 | 944 |
2,020 | 670 |
2,021 | 634 |
2,022 | 567 |
Thereafter | 339 |
Total | $ 3,763 |
Commitments and Contingencies44
Commitments and Contingencies (Details Textual) $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Payments to Develop Software | $ 1 |
Brainchip Holdings Limited [Member] | |
Commitments Made For Software Development | 0.6 |
Xuvi Llc [Member] | |
Commitments Made For Software Development | $ 0.7 |
Geographic and Product Line I45
Geographic and Product Line Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 24,677 | $ 16,274 | $ 43,361 | $ 35,187 |
Sales Revenue, Net [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, Percentage | 100.00% | 100.00% | 100.00% | 100.00% |
The Americas [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 16,940 | $ 13,560 | $ 30,807 | $ 27,823 |
The Americas [Member] | Sales Revenue, Net [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, Percentage | 68.60% | 83.30% | 71.00% | 79.10% |
Asia-Pacific [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 6,759 | $ 2,087 | $ 10,821 | $ 6,208 |
Asia-Pacific [Member] | Sales Revenue, Net [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, Percentage | 27.40% | 12.80% | 25.00% | 17.60% |
Europe and Africa [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 978 | $ 627 | $ 1,733 | $ 1,156 |
Europe and Africa [Member] | Sales Revenue, Net [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, Percentage | 4.00% | 3.90% | 4.00% | 3.30% |
Geographic and Product Line I46
Geographic and Product Line Information (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 24,677 | $ 16,274 | $ 43,361 | $ 35,187 |
Sales Revenue, Net [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, Percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Casino currency without RFID [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 5,671 | $ 3,498 | $ 9,518 | $ 7,393 |
Casino currency without RFID [Member] | Sales Revenue, Net [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, Percentage | 23.00% | 21.50% | 22.00% | 21.00% |
Casino currency with RFID [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 5,542 | $ 1,204 | $ 9,318 | $ 3,962 |
Casino currency with RFID [Member] | Sales Revenue, Net [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, Percentage | 22.50% | 7.40% | 21.50% | 11.30% |
Total casino currency [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 11,213 | $ 4,702 | $ 18,836 | $ 11,355 |
Total casino currency [Member] | Sales Revenue, Net [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, Percentage | 45.50% | 28.90% | 43.50% | 32.30% |
Playing Cards [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 6,084 | $ 6,181 | $ 11,840 | $ 12,516 |
Playing Cards [Member] | Sales Revenue, Net [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, Percentage | 24.60% | 38.00% | 27.30% | 35.60% |
Table accessories and other products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 2,147 | $ 1,591 | $ 3,611 | $ 3,484 |
Table accessories and other products [Member] | Sales Revenue, Net [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, Percentage | 8.70% | 9.80% | 8.30% | 9.90% |
Table layouts [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 1,522 | $ 1,246 | $ 2,971 | $ 2,548 |
Table layouts [Member] | Sales Revenue, Net [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, Percentage | 6.20% | 7.70% | 6.90% | 7.20% |
Dice [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 756 | $ 723 | $ 1,441 | $ 1,424 |
Dice [Member] | Sales Revenue, Net [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, Percentage | 3.10% | 4.40% | 3.30% | 4.00% |
RFID solutions [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 506 | $ 317 | $ 961 | $ 689 |
RFID solutions [Member] | Sales Revenue, Net [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, Percentage | 2.00% | 1.90% | 2.20% | 2.00% |
Gaming furniture [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 1,384 | $ 790 | $ 1,869 | $ 1,542 |
Gaming furniture [Member] | Sales Revenue, Net [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, Percentage | 5.60% | 4.90% | 4.30% | 4.40% |
Shipping [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 1,065 | $ 724 | $ 1,832 | $ 1,629 |
Shipping [Member] | Sales Revenue, Net [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, Percentage | 4.30% | 4.40% | 4.20% | 4.60% |
Geographic and Product Line I47
Geographic and Product Line Information (Details 2) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $ 23,038 | $ 24,933 |
United States [Member] | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 12,917 | 13,708 |
Mexico [Member] | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 5,678 | 6,851 |
France [Member] | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 3,999 | 3,936 |
Macau S.A.R., China [Member] | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $ 444 | $ 438 |
Geographic and Product Line I48
Geographic and Product Line Information (Details 3) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Segment Reporting Information [Line Items] | ||
Intangible assets, net | $ 1,647 | $ 1,676 |
United States [Member] | ||
Segment Reporting Information [Line Items] | ||
Intangible assets, net | 1,522 | 1,634 |
Asia [Member] | ||
Segment Reporting Information [Line Items] | ||
Intangible assets, net | $ 125 | $ 42 |
Geographic and Product Line I49
Geographic and Product Line Information (Details Textual) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Sales Revenue, Net [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, Percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Basic and Diluted Earnings Per Share [Line Items] | ||||
Weighted-average number of common shares outstanding - basic | 7,949 | 7,929 | 7,941 | 7,929 |
Potential dilution from equity grants | 71 | 129 | 85 | 129 |
Weighted-average number of common shares outstanding - diluted | 8,020 | 8,058 | 8,026 | 8,058 |
Earnings Per Share (Details 1)
Earnings Per Share (Details 1) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 85 | 20 | 58 | 16 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) € in Millions, $ in Millions | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018EUR (€) | Dec. 31, 2018 | Dec. 31, 2017USD ($) | Jun. 30, 2018USD ($) | |
Income Taxes Paid | € | € 1.4 | |||
Additional Accrued Income Taxes | $ 0.1 | |||
Unrecognized Tax Benefits | $ 0.3 | 0.3 | ||
Income Tax Examination, Penalties and Interest Accrued | $ 0.1 | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% | |||
Scenario, Plan [Member] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% |
Subsequent Event (Details Textu
Subsequent Event (Details Textual) - Subsequent Event [Member] | Aug. 01, 2018USD ($) |
Effective Date Of Consulting Agreement | Sep. 21, 2018 |
Consulting Services Monthly Fees To Be Paid | $ 10,000 |