Shuffle Master sees big profit jump

10 September 2009

By Howard Stutz

LAS VEGAS, Nevada -- Table game provider Shuffle Master, saying it was able reduce expenses during the challenging economy, saw its profit jump 87 percent in the third quarter.

The Las Vegas-based company said Wednesday it had a net income of $5.6 million, or 10 cents per share, in the quarter ended July 31, up from net income of $3 million, or 8 cents per share, a year earlier.

Analysts surveyed by Thomson Reuters were expecting a profit of 7 cents per share.

Quarterly revenue fell 8.9 percent to $45.1 million from $49.5 million.

"We are continuing to see the real impact on our bottom line of specific cost containment measures initiated earlier this year," Shuffle Master Chief Executive Officer Tim Parrott said in a statement.

He said the company has been able to weather the current economic climate.

"(We) are confident that regional expansions, new openings in Asia, increased momentum in the shuffler replacement cycle and the i-Table rollout this fall are all milestones on the path toward future top line improvements as well," Parrott said.

Union Gaming Group principal Bill Lerner, in a note to investors, said the company may be able to capitalize on expansion opportunities in states seeking to add table games.

"Given a now-stable balance sheet, manageable leverage, and decent liquidity, management can focus on its 're-emergence' in fiscal year 2010," Lerner said.

Shuffle Master shares rose 16 cents, or 2.12 percent, to close at $7.69 on the Nasdaq National Market.

Shuffle Master sees big profit jump is republished from iGamingSuppliers.com.