Gaming Partners International Reports Financial Results for the Fourth Quarter and...

Gaming Partners International Reports Financial Results for the Fourth Quarter
and Year-end 2007

LAS VEGAS, March 31 /PRNewswire-FirstCall/ -- Gaming Partners
International Corporation (Nasdaq: GPIC), the leading worldwide provider of
casino currency and table gaming equipment, today announced financial results
for the fourth quarter and year ended December 31, 2007.
For the fourth quarter of 2007, the Company reported revenues of
$19.9 million compared to revenues of $16.1 million for the fourth quarter of
2006. Gross profit for the quarter was $7.0 million, or 35% of revenues,
compared to $4.4 million or 27% of revenues in the same period a year ago. The
increase in revenues was due in part to filling a large order for the opening
of the MGM Macau.
Net income for the fourth quarter was $903,000, or $0.11 per basic and
diluted share, compared to $115,000 or $0.01 per basic and diluted share in
the fourth quarter 2006.
For the year ended December 31, 2007, revenues were $58.8 million compared
to revenues of $74.0 million in the year ended December 31, 2006. Gross profit
for the year was $18.0 million, or 31% of revenues, compared to $24.4 million,
or 33% of revenues in 2006. The decline in revenues was due to fewer chip
sales to casinos in Macau, although our significant market share of the chip,
plaque, and jeton sales in this region remained stable.
Net income for the year ended December 31, 2007 was $240,000, or $0.03 per
basic and diluted share compared to net income of $5.1 million or $0.64 per
basic and $0.62 per diluted share for the year ended December 31, 2006.
As of December 31, 2007, the Company had cash and marketable securities of
$9.4 million, compared to $10.6 million on December 31, 2006.
As of December 31, 2007, our backlog of unfilled orders, which are
expected to be filled in 2008, amounted to approximately $11.1 million. At
December 31, 2006, our backlog was $5.5 million.
Commenting on the results, Gerard Charlier, President and CEO, said, "Our
fourth quarter was our best quarter of the year in terms of both revenue and
profit and allowed us to rise just above breakeven for the entire year. Our
results in terms of both revenue and profit fell far behind last year. In
particular, our sales to casinos in Macau are down significantly from 2006,
which was an exceptional year. We are pleased that this year we participated
in the openings of the Crown Macau, the Venetian Macau, and MGM Macau, and the
Wynn Macau's expansion.
"Longer term, we remain optimistic about the future based on our
expectations for the potential in the market for RFID gaming chips worldwide,
including our exclusive rights to manufacture and sell RFID gaming chips in
the United States. We are particularly excited about our collaboration with
Progressive Gaming International Corporation and International Game Technology
in winning an order for over one million Paulson 13.56 MHz RFID casino chips
to be delivered to MGM Grand at Foxwoods, the new expansion of the Foxwoods
Resort Casino, for its opening in mid-May 2008."
About Gaming Partners International Corporation
GPIC manufactures and supplies (under the brand names of Paul-Son,
Bourgogne et Grasset and Bud Jones) gaming chips including low frequency and
high frequency RFID chips, jetons and plaques, low frequency RFID readers,
wheels, table layouts, playing cards, dice, gaming furniture, table
accessories and other products that are used with casino table games such as
blackjack, poker, baccarat, craps and roulette. GPIC is headquartered in Las
Vegas, Nev., with offices in Beaune, France; San Luis, Mexico; Atlantic City,
N.J.; and Gulfport, Miss. GPIC sells its casino products directly to licensed
casinos throughout the world. For additional information about GPIC, visit our
web site at http://www.gpigaming.com.
Safe Harbor Statement
This release contains "forward-looking statements" based on current
expectations but involving known and unknown risks and uncertainties, such as
statements relating to anticipated future sales or the timing thereof, the
long-term growth and prospects of our business or any jurisdiction, including
Macau, and the long term potential of the RFID gaming chips market and the
ability of Gaming Partners International to capitalize on any such growth
opportunities. Actual results or achievements may be materially different from
those expressed or implied. Gaming Partners International's plans and
objectives are based on assumptions involving judgments with respect to future
economic, competitive and market conditions, its ability to consummate, and
the timing of, acquisitions and future business decisions, all of which are
difficult or impossible to predict accurately and many of which are beyond its
control. Therefore, there can be no assurance that any forward-looking
statement will prove to be accurate.
Factors that could cause actual results to vary materially from these
forward-looking statements include: any significant reduction in the growth
rate of new and existing casinos in Macau, the failure of the industry to
accept our RFID technology or problems with our RFID technology, any
regulatory action, litigation or liability resulting from the presence of lead
in our products, any significant unfavorable resolution of a law suit against
us, any patent infringement issues, the development of competing technologies
by our competitors, the failure of any supplier to timely deliver key raw
materials for our significant products, any customer cancellation of a
significant order included in our backlog, the loss or retirement of any of
our key employees without finding an acceptable successor, any domestic or
international terrorist incidents, and any unexpected taxes, regulatory
charges, costs or difficulty in the operations of the companies in multiple
locations or the manufacturing of our products. Additional information
concerning factors and risks that could affect these forward-looking
statements and Gaming Partners International's financial condition and results
of operations are included in Gaming Partners International's Form 10-K for
the year ended December 31, 2007.

GAMING PARTNERS INTERNATIONAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31,
(in thousands, except share amounts)

2007 2006
ASSETS
Current Assets:
Cash and cash equivalents $4,627 $5,888
Marketable securities 4,730 4,710
Accounts receivable, less allowance
for doubtful accounts of
$327 and $335, respectively 5,811 4,136
Inventories 10,093 9,251
Prepaid expenses 487 404
Deferred income tax asset 893 355
Other current assets 1,459 1,497
Total current assets 28,100 26,241
Property and equipment, net 15,596 14,567
Goodwill 1,680 1,524
Other intangibles, net 1,023 1,245
Deferred income tax asset 1,514 2,093
Long-term investments 736 683
Other assets, net 660 616
Total assets $49,309 $46,969

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Current maturities of long-term debt $689 $1,047
Accounts payable 2,964 2,993
Accrued liabilities 4,418 4,557
Customer deposits 2,715 1,187
Income taxes payable 27 870
Deferred income tax liability - 623
Other current liabilities 406 177
Total current liabilities 11,219 11,454
Long-term debt, less current maturities 2,273 2,749
Deferred income tax liability 455 182
Other liabilities 209 -
Total liabilities 14,156 14,385
Commitments and Contingencies - -

Stockholders' Equity:
Preferred stock, authorized
10,000,000 shares, $.01 value,
none issued and outstanding - -
Common stock, authorized
30,000,000 shares, $.01 par value,
8,103,401 and 8,090,901, respectively,
issued and outstanding 81 81
Additional paid-in capital 18,766 18,429
Treasury stock, at cost, 8,061 shares (196) (196)
Retained earnings 12,825 12,690
Accumulated other comprehensive income 3,677 1,580
Total stockholders' equity 35,153 32,584
Total liabilities and
stockholders' equity $49,309 $46,969

GAMING PARTNERS INTERNATIONAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
Years Ended December 31,
(in thousands, except earnings per share)

2007 2006

Revenues $58,821 $73,954
Cost of revenues 40,845 49,580

Gross profit 17,976 24,374
Product development 419 422
Marketing and sales 4,303 4,316
General and administrative 12,392 11,155

Operating income 862 8,481

Other income (expense)
Loss on foreign currency transactions (323) (349)
Interest income 334 410
Interest expense (190) (175)
Other income, net 374 145

Income before income taxes 1,057 8,512

Income tax expense 817 3,383

Net income $240 $5,129

Earnings per share:
Basic $0.03 $0.64
Diluted $0.03 $0.62
Weighted-average shares of
common stock outstanding:
Basic 8,101 7,974
Diluted 8,242 8,226

Selected Quarterly Financial Information

Year Ended December 31, 2007
First Second Third Fourth Total
(in thousands, except per share data)

Net revenues $8,921 $14,779 $15,196 $19,925 $58,821
Gross profit 1,571 4,615 4,822 6,968 17,976
Operating (loss) income (2,373) 289 958 1,988 862
Net (loss) income $(1,490) $440 $387 $903 $240
Net (loss) income per share:
Basic $(0.18) $0.05 $0.05 $0.11 $0.03
Diluted $(0.18) $0.05 $0.05 $0.11 $0.03

Year Ended December 31, 2006
First Second Third Fourth Total
(in thousands, except per share data)

Net revenues $18,297 $19,436 $20,135 $16,086 $73,954
Gross profit 7,194 7,181 5,590 4,409 24,374
Operating income 3,398 2,961 1,623 499 8,481
Net income $2,080 $2,015 $919 $115 $5,129
Net income per share:
Basic $0.26 $0.25 $0.12 $0.01 $0.64
Diluted $0.25 $0.25 $0.11 $0.01 $0.62

SOURCE Gaming Partners International Corporation

Laura McAllister Cox of GPIC, +1-702-384-2425, lmcox@gpigaming.com; or Lee
Roth, +1-212-896-1209, lroth@kcsa.com, or Marybeth Csaby, +1-212-896-1236,
mcsaby@kcsa.com, both of KCSA for GPIC