Another solid quarter reported by Shuffle Master

Aug 28, 2001 4:28 AM

Shuffler and table game revenues were credited with boosting third fiscal quarter results for Shuffle Master, Inc. (SHFL).

During the period ended on July 31, the company’s revenue of $12.6 million increased 37% over the $9.2 million reported during the corresponding period of a year ago. Also, operating income increased 46% to $4.6 million compared to $3.1 million last year. This amounted to earnings per share of $0.17 compared to last year’s $0.12.

Identifying the highlights for the quarter, Dr. Mark Yoseloff, president and CEO, remarked, “In reviewing our third quarter product line performance, our table game business continues to show remarkable strength, headlined by reaching 500 Three Card Poker tables installed. Shuffler lease revenues turned up from last quarter and are up 22% over last year’s third quarter. As for Shuffler sales, they were up 26% from last year although lower than the second quarter of this year, reflecting, as we have indicated in the past, the potential for quarterly variations in shuffler sales.”

In the slot area, Yoseloff said, unfavorable comparisons for the installed base of cooperative slots were caused by decreases in the Bally version of Let’s Make A Deal in advance of placements of the new IGT version, delays in regulators’ approvals of IGT games in some jurisdictions, and the removal late in the quarter of some of the Three Stooges games. “However,” he added, “we are making progress. As of today, our installed base of cooperative slots stands at 356, up 87 since the end of the quarter, with an additional 67 units pending installation.”

Mandalay Resort Group

There was no surprise last week when Mandalay Resort Group (MBG) reported second fiscal quarter earnings of $0.41 per share since the company had issued a pre-announcement several days earlier.

Explaining the failure to meet expectations of as much as $0.51 a share, President and CFO Glenn Shaeffer indicated that July was a weak month primarily due to the July 4 holiday falling on a Wednesday. Other factors included Native American gaming competition and higher energy costs.

Most of the Las Vegas properties were either flat or slightly lower than in previous quarters, while Reno and Laughlin properties posted declines.

The brightest part of the report involved the company’s Midwest operations that performed strongly during the period. The Grand Victories in Elgin, Ill., a facility that is 50% owned by the company, produced an upturn in operating cash flow in the quarter, reporting $33.7 million against $30.8 million last year. And, in Detroit, the Motor City Casino, 53.5% owned by MBG, posted $24.2 million compared with last year’s $22.8 million.

During the quarter, the company reported $168 million in operating cash flow compared with last year’s $182.9 million.

Following the announcement, Wall Street gaming analyst Robin Farley, UBS Warburg, and Bill Schmitt, CIBC World Markets, both rated the company’s stock as a “hold.”

Acres Gaming

Solid increases in total revenues and earnings were announced by Acres Gaming Incorporated (AGAM) for both the quarter and the fiscal year ended on June 30.

Fiscal year revenue totaled $44.1 million, a 159% increase over the previous year’s $17 million. Net income for the period amounted to $4.2 million, a jump of $8.3 million from the prior year loss of $4.1 million.