U.S.-based casino currency and table gaming equipment supplier Gaming Partners International Corp (GPI) posted net income of US$2.8 million for the three months ended September 30, up from US$0.1 million a year earlier.
The Nasdaq-listed company said revenue for the third quarter rose by 49.8 percent year-on-year to US$20.3 million. Cost of sales for the period grew by 47.3 percent year-on-year to US$13.4 million.
The increase in revenue and net income “was directly attributable to the business generated from our acquisition of the gaming assets of GemGroup and the increase of currency sales in the Asia region,” GPI said in a statement on Wednesday.
The firm paid US$19.75 million for GemGroup Inc, a deal concluded in July. Gemaco Inc, a unit of GemGroup, is a manufacturer of playing cards, casino chips and table layouts.
For the first nine months of 2014, revenue was down 3.3 percent to US$41 million, GPI said. Net income for the period was US$0.5 million, compared to net income of US$0.6 million a year earlier.
“We do not expect any major casino openings for the remainder of 2014 but we are actively working on securing orders for 2015 casino openings,” president and chief executive Greg Gronau said.
GPI in May announced it had received a large order to supply casino currency to an undisclosed casino in Macau.
Following the acquisition of GemGroup, GIP has started to consolidate its card production in Blue Springs, Missouri, in the United States. “This will result in approximately US$0.4 million of pre-tax, one time charges but it will provide significant savings in the manufacturing of cards,” Mr Gronau said.
“This is in line with our overall plan to streamline our operations and reduce our overheads and operating expenses,” he added.
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Amount that each Macau casino operator paid for the circa six-month extension of their respective contract