Vegas casino supplier’s earnings, revenues up

Friday, Aug. 23, 2002 | 10:46 a.m.

Shuffle Master Inc. on Thursday reported increases in earnings and revenues for the third fiscal quarter, helped by new card shuffler installations and sales of table game units.

The Las Vegas-based company reported earnings of $3.9 million for the quarter, meeting Wall Street analysts' average estimate of 22 cents per share. That's a 21.9 percent increase from $3.2 million, or 17 cents per share, a year ago.

The company said it expects to earn 23 to 25 cents per share in its fourth fiscal quarter and said fiscal 2003 and 2004 earnings will grow at the company's historical rate of 20 percent to 25 percent.

"In our view, this progress is the direct result of our business model, which generates significant free cash flow on a monthly basis, allowing us to invest heavily in research and development, acquire complementary businesses or game concepts, or buy back shares," Shuffle Master Chairman and Chief Executive Officer Mark Yoseloff said.

Revenues were $15.1 million, a 20.3 percent increase from last year. Operating income increased 27.1 percent for the period, to $5.8 million.

Shuffler installations now exceed 9,000 units, with more than 550 new shufflers installed during the quarter, the company said. Table game units increased 20.5 percent for the year, at 1,476 units.

Separately, Shuffle Master's board of directors has authorized management to repurchase company stock in the open market. Other details on that plan were not available.

Shuffle Master, which also makes slot machines, shipped two new games -- "Hollywood" and "Spider-Man" -- late in the quarter.