SHFL Entertainment reports “exceptional performance”

For its fourth quarter, the Nevada firm announced that total revenues increased by twelve % year-on-year to usus$ 73.6 million while recurring revenues grew by 14 % when compared with the same period last year to us$31.5 million thanks to growth from its utility, Proprietary Table Game (PTG) and Electronic Table Systems (ETS) segments.

For the year, SHFL Entertainment revealed that revenues had risen by 14 % year-on-year to us$259 million, which represents a company record, while recurring revenues improved by twelve % when set alongside the comparable period in 2011 to us$118.2 million and comprised 46 % of its total revenues.

“We had a strong finish to 2012 with record revenues of us$73.6 million in the fourth quarter driven by the successful execution of our core businesses,” said Gavin Isaacs, Chief Executive Officer for SHFL Entertainment, which was known as Shuffle Master Incorporated until an early-October rebranding.

“For the fiscal year, 14 % growth on the top line, twelve % recurring revenue growth and 25 % growth in adjusted earnings per share demonstrate yet another year of exceptional performance.

“All but one of our product categories witnessed double digit revenue growth [and] that's impressive in any environment and especially in this one.

“As we communicated throughout the year, we have been and intend to continue to invest in our business and look forward to reaping the benefits in the future. Entering the new fiscal year, we believe we are well-positioned for sustainable growth as we benefit from continued MD3 card shuffler placements, global expansion of our slot machine business, improved e-Table offerings and meaningful opportunities created from the power of our specialty table game brands both in bricks-and-mortar casinos and online casinos.”

SHFL Entertainment stated that the fourth quarter saw it pay off its remaining revolving line of credit balance to leave it with total cash and equivalents of us$24.2 million while its net debt now stands at us$17.1 million.

“We reported another very strong quarter and year both operationally and financially as we continue to develop and deliver compelling products to the industry,” said Linster Fox, Chief Financial Officer for Las Vegas-based SHFL Entertainment.

“With no debt on our revolving line of credit and inventory turns at the highest they've ever been, our optimisation of working capital helps us fuel growth and create shareholder value. That growth requires investment in SHFL Entertainment to capitalise on the many organic opportunities for the company particularly in the iGaming space and expanding into markets where we're underrepresented.”