Shuffle Master profit improves

Friday, May 28, 2004 | 10:37 a.m.

Shuffle Master Inc. of Las Vegas on Thursday reported a 36 percent increase in its fiscal second-quarter profit, to $5.5 million in the three months ended April 30 from $4 million during the same period last year.

On a per share basis, earnings at the Las Vegas company were 21 cents per share compared with 16 cents a year earlier.

Based on the company's performance and recent acquisitions, management increased earnings expectations. The company is expected to earn from 86 cents to 89 cents in fiscal 2004 and from $1.12 to $1.18 in fiscal 2005.

That compares with analysts' estimates of 85 cents in fiscal 2004 and $1.13 in fiscal 2005.

Revenue totaled $20.2 million, a 50 percent increase from last year.

Revenue from shuffler sales and leases rose 28 percent to $10.3 million and entertainment products, including table game royalties and sales, jumped 83 percent to $9.8 million.

The company initiated a three-for-two stock split to shareholders of record on April 5. Last month it also completed a private sale of $150 million in convertible bonds and repurchased shares of stock worth about $58 million.

Some of the proceeds from the sale were used to fund the acquisition of Casinos Austria Research and Development, an Austrian maker of card shufflers and chip sorters. That transaction was completed this month. Earlier this year, the company purchased patents for certain table games including "Fortune Pai Gow," "Casino War" and "Royal Match 21" from privately held BET Technology Inc., adding 1,090 table games to the company's base of installed casino table games.

The company this year divested its slot machine assets in order to focus on its core business of making card shufflers and table games.