huffle Master reported net income of us$ 4.57 million in the quarter that ended April 30, compared to net income of nearly us$ 3.05 million a year ago. Both figures translated into earnings per share of 9 cents. Revenues, however, were us$ 45.3 million, an 8 % decline compared with us$ 49 million a year ago. “Shuffle Master had a decent second quarter given the magnitude of the economic climate,” Shuffle Master CEO Tim Parrott said in a statement.
Parrott become CEO earlier this year when long-time chief executive Mark Yoseloff retired. The severance paid to Yoseloff and another departed Shuffle Master executive cost the company about 5 cents per share, which accounted for earnings per share to be equal to the prior quarter.
Parrott has spent the first part of his tenure assessing the company’s business and products, including automated card shufflers and table game management systems as well as several table games the company leases to casinos, including Let It Ride, Three Card Poker and Caribbean Stud Poker. “I’m very encouraged about our future based on what I’ve seen and heard spending time with our management team, employees, and customers,” Parrott said.
The economy hurt the company’s revenues. Casinos have slowed their purchasing of new gaming equipment because gaming revenues have declined in many gaming jurisdictions. Sales revenue for automated shufflers fell 9 % but lease and service revenues grew by 9 %.
Meanwhile, revenues for the table games division fell 10 %. As with many gaming companies, Shuffle Master has cut costs to improve liquidity to help the equipment provider operate during in light of the sour economy.
“With almost us$ 15 million in cash, the complete elimination of the convertible notes on our balance sheet and the consistent reduction of debt every quarter, Shuffle Master is well-positioned to weather the recession,” said acting CFO Coreen Sawdon. Shares of Shuffle Master closed at us$ 4.61 on the Nasdaq National Market, up 12 cents or 2.67 %.