Vegas casino supplier posts another loss

Monday, Jan. 14, 2002 | 11:02 a.m.

A Las Vegas gaming equipment manufacturer and supplier today reported its second consecutive quarter of losses, citing a continued economic downturn made worse by the Sept. 11 terrorist attacks.

Paul-Son Gaming Corp. reported a loss of $329,000, or 10 cents a share, for the second quarter of the company's 2002 fiscal year, compared with a loss of $466,000, 14 cents per share, for the same period a year ago.

Revenues for the quarter, which ended Nov. 30, were $3.9 million compared with $5.1 million for the same period a year ago.

Although the company said the economy was soft most of last year, it had one profitable quarter in 2001 for the period that ended May 31.

Paul-Son President Eric Endy said that as anticipated in October, the terrorist attacks have exacerbated a general economic downturn.

"We have continued to see some softening since Sept. 11 in purchases of consumable table game supplies, primarily dice, cards and layouts, as a result of decreased gaming play," Endy said. "In addition, the decline in our revenues reflects the lack of any sales for new casino openings in the second quarter of 2001."

Endy said in the statement that the company is "monitoring sales and customer service departments" and has made an 18 percent reduction in overhead expenses compared with the same period the previous year.

Endy could not be reached for comment on the status of merger negotiations or plans to sell the company's headquarters.

The company resumed negotiations in August with Paris-based Etablissments Bourgogne et Grasset, a French gaming supplier and the parent company of Bud Jones Co. Inc. of Las Vegas.

At that time, the company also said it was trying to sell its 60,000-square-foot building on Industrial Road, which it purchased in 1995 for $2 million. The company said at the time that the building was put up for sale following the shift of all manufacturing operations to San Luis, Mexico in 1998.

Paul-Son employs about 60 people in the United States and about 400 in the Mexico manufacturing operation.