LAS VEGAS - Gaming Partners International Corporation (NASDAQ: GPIC), a leading worldwide provider of casino currency and table gaming equipment, today announced financial results for the fourth quarter and year ending December 31, 2011.
For its fourth quarter of 2011, the Company posted revenues of $14.6 million and net income of $0.6 million, or $0.07 per basic and diluted share. These results compare to revenues of $16.6 million and net income of $1.0 million, or $0.12 per basic and diluted share, for the fourth quarter of 2010. Gross profit for the quarter was $4.2 million, or 29% of revenues, compared to $5.4 million, or 33% of revenues, in the prior year period.
For the year 2011, the Company recorded revenues of $61.1 million and net income of $3.7 million, or $0.45 per basic and diluted share. These results compare to revenues of $59.9 million and net income of $4.4 million, or $0.54 per basic and $0.53 per diluted share for the year 2010. Gross profit for the year was $19.5 million, a decrease of $2.4 million, or 11.0%, compared to gross profit of $21.9 million for 2010. As a percentage of revenues, gross profit decreased from 36.6% to 32.0%, primarily due to high volume, but lower margin plaque and chip sales to several Asian customers during 2011; one-time delivery of non-RFID American-style chips at no cost to the Star Casino in Australia as an accommodation to meet delivery dates, following RFID tag delivery delays related to the fall 2011 Thailand floods; and the sale of higher margin Paulson chips with increased security features to casinos in Pennsylvania, West Virginia, and Delaware in 2010.
The primary reasons for the increase in revenue in 2011 were an increase of nearly $7.7 million in revenue of European-style casino chips for Asian casinos, including the Galaxy™ Macau and Sociedade de Jogos de Macau S.A. casinos, as well as in other parts of Asia, and $1.6 million in RFID solutions revenue. This increase was offset by a $5.4 million decline in American-style casino chip revenue and a $2.7 million decline in furniture, accessories, and layout sales in the United States, due primarily to significant second and third quarter sales to Pennsylvania, Delaware, and West Virginia casinos in 2010.
In December, the Company paid a cash dividend of $1.5 million, or $0.1825 per share, and ended 2011 with $24.1 million in cash, cash equivalents and marketable securities. Also in December, the Company initiated a stock repurchase program to repurchase up to 5% of the Company's stock, or approximately 410,000 shares. During December the Company repurchased over 11,000 shares, at a weighted average cost of $6.31 per share, and, as of March 21, 2012, repurchased an aggregate of approximately 57,000 shares at a weighted average cost of $6.84 per share, under this program.
"We closed out 2011 with a strong year for sales in Asia," commented Gregory Gronau, GPIC President and Chief Executive Officer. "This reflected the opening of the Galaxy Macau casino, with both chip and RFID solution sales, as well as rebranding and replacement sales with Macau, Singapore, and Malaysia casinos. For 2012, we expect to leverage our expanded chip mold making and design capabilities for our global customers to improve their chip security, branding and promotions. Additionally, we will continue to pursue potential strategic acquisitions and partnerships to grow our business."
Source: Gaming Partners International Corporation
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