GPI quarterly profit takes hit on debt expenses
Casino currency and table gaming equipment supplier Gaming Partners International Corp (GPI) posted net income of US$1.7 million for the third quarter of 2015, down 39.3 percent from the prior-year period.
“The decrease in net income was primarily due to an increase in bad debt expense in 2015, and the absence of a tax benefit similar to the income tax benefit recorded in the third quarter of 2014,” the firm said in a filing last week.
The company stated it recorded revenues of US$19.8 million for the three months to September 30, down 2.5 percent from a year earlier. The decline in revenue was attributable to a decrease in casino currency sales “largely offset by an increase in consumable products,” GPI said.
The company reported sales in the Asia Pacific region of approximately US$5 million, accounting for 25 percent of total sales in the period. That compares to sales of US$6.9 million in Asia Pacific in the third quarter of 2014.
The company has three operating subsidiaries, including Macau-based GPI Asia Ltd that distributes GPI’s casino currencies, playing cards, and table gaming accessories in the Asia Pacific region.
GPI said it had a backlog of signed orders worth US$13.5 million at the end of September – including US$7.2 million from GPI Asia.
The firm announced in May it had received a US$7.2-million order to supply gaming chips and plaques for a new casino in Macau. The company said it expects all of the orders included in the September 30, 2015 backlog to be shipped to customers by December 31.
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