Friday, Dec. 10, 2004 | 10:53 a.m.
Shuffle Master Inc., riding a wave of international growth fueled by key acquisitions, reported record fourth-quarter and 2004 fiscal year results Thursday.
The Las Vegas-based casino equipment manufacturer and game leasing company also reported its second three-for-two stock split of the year.
"We are particularly impressed with the growth on the utility products segment, which we would attribute to the popularity of poker as witnessed by sales and placements of the Deck Mate shuffler," said Deutsche Bank Securities gaming analyst Marc Falcone in a report issued today.
Falcone projected continued growth for the company domestically and internationally.
"We currently estimate that international revenues comprise about 20 percent of Shuffle Master's total revenues and we anticipate that this share will grow to 40 percent over time, as table-centric markets like Macau experience tremendous growth," he said.
The company, best known for its production and distribution of automatic card shuffling machines, reported quarterly income of $6.5 million, 27 cents a share, for the quarter ended Oct. 31, beating analysts' forecasts by a penny a share. For the same quarter a year earlier, the company reported income of $5 million, 19 cents a share.
Fourth-quarter revenue was up 48 percent to $25.9 million from $17.6 million a year ago.
"We're entering 2005 stronger than any time in our company's history," said Mark Yoseloff, chairman and chief executive officer, in a conference call Thursday afternoon.
For the fiscal year, the company reported earnings of $24.1 million, 97 cents a share, on revenue of $84.8 million, up dramatically from the $16.9 million, 66 cents a share, on revenue of $58.4 million in 2003. For the year, the company was well ahead of the analysts' forecast of 89 cents a share.
Yoseloff said much of the company's success could be attributed to the worldwide popularity of table games and Shuffle Master's expansion in the international marketplace with its acquisition of Casinos Austria Research and Development in May.
The company also acquired BET Technology Inc., giving it several patents and trademarks for proprietary table games.
Shuffle Master is continuing to make its mark in new technology with the announcement this week of two patents for radio frequency identification technology from ENPAT Inc. for $12.5 million. The company is expected to use the technology to place microchips in casino chips for various new products and processes.
Under terms of the ENPAT deal, Las Vegas-based Mikohn Gaming Corp. and Gaming Partners International Corp. have become licensees of the newly acquired technology.
Yoseloff also disclosed in Thursday's conference call that the company had a record month by signing 70 new leases in November, the first month of the new fiscal year.
The company offered guidance of earnings of 21 cents to 23 cents a share for the first quarter. Analysts are more optimistic, estimating earnings at 25 cents a share for the period.
Shuffle Master's stock split announcement was the second of the year, with a split recorded in March. The company said additional shares would be issued on Jan. 14 to shareholders of record on Jan. 3. The company had 23.3 million shares of stock outstanding at the end of the fiscal year.
archive
