Earnings up for supplier

Friday, Dec. 13, 2002 | 11:06 a.m.

Shuffle Master Inc. reported a 57 percent increase in net income for the fourth quarter driven by increased product sales and improved operating margins.

Net income at the Las Vegas-based company rose from $2.8 million for the fourth quarter and fiscal year ended Oct. 31, 2001, to $4.4 million for the fourth quarter of this year.

On a per share basis, earnings rose from 15 cents per share to 25 cents.

Revenue jumped from $11.8 million to $15.6 million during the same period.

For the fiscal year ended Oct. 31, Shuffle Master reported net income of $14 million, a 21 percent increase from $11.6 million generated in fiscal 2001. Revenue for the year was $56.1 million compared to $48 million a year ago.

The fourth-quarter revenue increase was primarily due to a 64 percent increase in sales of card shufflers and service, a 24 percent increase in table game royalties and a 56 percent increase in slot lease revenue.

Among the company's top accomplishments this year included a gross margin of 75 percent, an operating margin of 37 percent, a net margin of 25 percent and a return on average equity of 31 percent.

"This was another great year for Shuffle Master, demonstrating our ability to diversify our revenue streams while maintaining or improving our margins," Shuffle Master Chairman and Chief Executive Mark L. Yoseloff said.