GGRAsia – GPI quarterly profit takes hit on debt expenses

GPI quarterly profit takes hit on debt expenses

Nov 17, 2015 Newsdesk Industry Talk, Latest News, World

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.