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Best of Howard Stutz

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Howard Stutz
 

Shuffle Master Revenues Up

10 December 2004

LAS VEGAS -- Focusing on its core business as a casino equipment supplier, Shuffle Master said Thursday the company grew its revenues 48 percent in the fourth quarter and 45 percent for fiscal 2004. In addition, Shuffle Master announced a 3-for-2 stock split to take effect in January. Shuffle Master said its results for the quarter and the year produced several records.

"Fiscal 2004 was a pivotal year for Shuffle Master and, entering 2005, we are a much stronger company than anytime in our history,"

Shuffle Master Chairman and Chief Executive Officer Mark Yoseloff said. Shuffle Master manufactures and distributes automated card shufflers and various table game products.

The company is also distributing the TableMaster system, a multiplayer automated table game the operates without a dealer.

Earlier this year, Shuffle Master sold the company's line of slot machine products to International Game Technology, which included its copyrights and related intellectual property associated with its operating system.

The transaction allowed the company to focus on distributing shufflers and proprietary table games, such as Let It Ride and Three Card Poker and Four Card Poker.

Yoseloff said Shuffle Master has "significant growth opportunities" due to the "renaissance" being experienced in the table game segment. He added specialty table games, such as Three Card Poker, are fueling that growth.

For the quarter ended Oct. 31, Shuffle Master reported net income of $6.5 million on revenues of $25.9 million.

For the year, the company reported a net income of $24.1 million on total revenues of $84.8 million. Diluted earnings per share from continuing operations increased 29 percent in the quarter to 27 cents, and 34 percent for the year to 91 cents.

On Thursday, shares of Shuffle Master, which reported its earnings after trading closed, fell 46 cents, or 1.03 percent, to close at $44.27.

"In addition to setting a number of important new financial records, we set the stage for continued growth by further diversifying or product portfolio organically and through acquisitions," Yoseloff said.

Shuffle Master also announced the 3-for-2 stock split, its second this year. Additional shares will be issued Jan. 14 to shareholders as of Jan. 3.

"With our market capitalization having recently surpassed $1 billion, we wanted to provide additional liquidity in our stock as we continue to attract a much broader investor group," Shuffle Master Chief Financial Officer Richard Baldwin said.