Gaming Partners International Reports Financial Results for the First Quarter of 2009

14 May 2009

LAS VEGAS, May 13 /PRNewswire-FirstCall/ -- Gaming Partners International Corporation (Nasdaq: GPIC), the leading worldwide provider of casino currency and table gaming equipment, today announced financial results for the first quarter of 2009.

For the first quarter of 2009, the Company reported revenues of $8.9 million, which were down 26% compared to revenues of $12.1 million for the first quarter of 2008. Gross profit for the quarter was $2.4 million, or 27% of revenues, compared to $3.6 million, or 30% of revenues, in the same period a year ago.

Net loss for the first quarter of 2009 was $499,000, or $0.06 per basic and diluted share, compared to a net loss of $412,000, or $0.05 per basic and diluted share, in the first quarter of 2008.

As of March 31, 2009, the Company had cash and marketable securities of $16.4 million, compared to $13.1 million as of December 31, 2008.

As of March 31, 2009, the Company had $37.6 million of stockholders' equity, compared to $38.8 million as of December 31, 2008.

As of March 31, 2009, our backlog of unfilled orders, which are expected to be filled in 2009, was $11.6 million. At March 31, 2008, our backlog was $14.0 million.

Commenting on the results, Gerard Charlier, President and CEO, said, "The gaming industry continues to face tough economic times, as the worldwide recession negatively impacts business. We previously announced that we expected the first quarter to be difficult given the current economic environment. Having said that, our continued efforts to reduce costs helped mitigate the impact. Our lower gross margins were a function of a change in product mix, as sales of our high margin European-style casino chips suffered in the first quarter. But we are currently producing the City of Dreams and Newport City orders that are scheduled to ship mid-year, and these orders largely consist of higher margin products. Moreover we feel we are well positioned for additional business with new casinos opening in both the United States and abroad later this year."

About Gaming Partners International Corporation

GPIC manufactures and supplies (under the brand names of Paulson(R), Bourgogne et Grasset(R) and Bud Jones(R)) casino chips, including plaques and jetons and low frequency and high frequency RFID chips, low and high frequency RFID readers, table layouts, playing cards, dice, gaming furniture, roulette wheels, table accessories, and other products that are used with casino table games such as blackjack, poker, baccarat, craps, and roulette. GPIC is headquartered in Las Vegas, Nevada, with offices in Beaune, France; San Luis Rio Colorado, Mexico; Atlantic City, New Jersey; and Gulfport, Mississippi. GPIC sells its casino products directly to licensed casinos throughout the world. For additional information about GPIC, visit our web site at www.gpigaming.com.

Safe Harbor Statement

This release contains "forward-looking statements" based on current expectations but involving known and unknown risks and uncertainties, such as statements relating to anticipated future sales or the timing thereof; the long-term growth and prospects of our business or any jurisdiction, including Macau, the Philippines, and Singapore; the duration or effects of unfavorable economic conditions which may reduce our product sales; and the long term potential of the RFID gaming chips market and the ability of Gaming Partners International to capitalize on any such growth opportunities. Actual results or achievements may be materially different from those expressed or implied. Gaming Partners International's plans and objectives are based on assumptions involving judgments with respect to future economic, competitive and market conditions, the timing and its ability to consummate, acquisitions, and future business decisions and other risks and uncertainties identified in Part I-Item 1A, "Risk Factors" of the Company's Form 10-K for the period ended December 31, 2008, all of which are difficult or impossible to predict accurately and many of which are beyond its control. Therefore, there can be no assurance that any forward-looking statement will prove to be accurate.

              GAMING PARTNERS INTERNATIONAL CORPORATION                CONDENSED CONSOLIDATED BALANCE SHEETS                             (unaudited)                (in thousands, except share amounts)                                           March 31,    December 31,                                             2009          2008                                             ----          ----    ASSETS    Current Assets:      Cash and cash equivalents            $7,516        $5,547      Marketable securities                 8,857         7,561      Accounts receivable, less allowance       for doubtful accounts of $424 and       $342, respectively                   3,096         5,422      Inventories                          11,014         9,894      Prepaid expenses                        399           431      Deferred income tax asset               887           691      Other current assets                    867           790                                              ---           ---          Total current assets             32,636        30,336      Property and equipment, net          13,432        14,158      Goodwill                              1,538         1,599      Other intangibles, net                  779           783      Deferred income tax asset             1,666         1,666      Long-term marketable securities         665           696      Other assets, net                       267           311                                              ---           ---          Total assets                    $50,983       $49,549                                          =======       =======    LIABILITIES AND STOCKHOLDERS' EQUITY    Current Liabilities:      Current maturities of long-term       debt                                  $506          $523      Accounts payable                      2,545         2,613      Accrued liabilities                   3,076         3,066      Customer deposits                     4,767         1,432      Income taxes payable                     15           312      Other current liabilities               435           459                                              ---           ---          Total current liabilities        11,344         8,405    Long-term debt, less current     maturities                             1,580         1,743    Deferred income tax liability             509           585                                              ---           ---          Total liabilities                13,433        10,733                                           ------        ------    Commitments and contingencies -     see Note 6    Stockholders' Equity:      Preferred stock, authorized       10,000,000 shares, $.01 par value,       none issued and outstanding              -             -      Common stock, authorized       30,000,000 shares, $.01 par       value, 8,103,401 and 8,103,401,       respectively, issued and       outstanding                             81            81      Additional paid-in capital           19,083        19,033      Treasury stock, at cost; 8,061       shares                                (196)         (196)      Retained earnings                    16,813        17,312      Accumulated other comprehensive       income                               1,769         2,586                                            -----         -----          Total stockholders' equity       37,550        38,816                                           ------        ------          Total liabilities and           stockholders' equity           $50,983       $49,549                                          =======       =======    See notes to unaudited condensed consolidated financial statements.                GAMING PARTNERS INTERNATIONAL CORPORATION             CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS                               (unaudited)                 (in thousands, except per share amounts)                                                        Three Months                                                            Ended                                                          March 31,                                                          ---------                                                       2009       2008                                                       ----       ----    Revenues                                         $8,943    $12,125    Cost of revenues                                  6,530      8,467                                                      -----      -----      Gross profit                                    2,413      3,658    Product development                                 143         54    Marketing and sales                                 983      1,162    General and administrative                        2,180      2,838                                                      -----      -----      Operating loss                                   (893)      (396)    Other income (expense)      Gain (loss) on foreign currency transactions       93       (259)      Interest income                                    49         56      Interest expense                                  (28)       (38)      Other income, net                                  17          3                                                        ---        ---      Loss before income taxes                         (762)      (634)    Income tax benefit                                 (263)      (222)                                                       ----       ----      Net loss                                        $(499)     $(412)                                                      =====      =====    Earnings per share:      Basic                                          $(0.06)    $(0.05)                                                     ======     ======      Diluted                                        $(0.06)    $(0.05)                                                     ======     ======    Weighted-average shares of common stock     outstanding:      Basic                                           8,103      8,103                                                      =====      =====      Diluted                                         8,103      8,103                                                      =====      =====    See notes to unaudited condensed consolidated financial statements

SOURCE Gaming Partners International Corporation