Shuffle Master sets records

Dec 18, 2001 7:55 AM

Posting a 23 percent increase in revenue, Shuffle Master reported record earnings of $48 million for the 12 months ended Oct. 31.

The Las Vegas-based game maker also announced record net income of $11.6 million, a 36 percent increase. Even revenues for the terrorist-battered fourth quarter were up ”” $11.8 million vs. $11.5 million a year ago.

“We are particularly pleased with the performance of our table games business and the progress made in slot games, which is indicative of the growing diversity of our revenue streams,’’ said President and CEO Mark Yoseloff. “We are looking for similar total year revenue and earnings increases in fiscal 2002, with even greater diversification of revenues and market opportunities.’’

Ranked 32nd this year among America’s 200 Best Small Companies by Forbes magazine, Shuffle Master enjoyed a gross margin of 74 percent, an operating margin of 35 percent and net margin of 24 percent ”” all records ”” and return on average equity of 34 percent.

Accelerated growth of Three Card Poker led the fiscal year results; Shuffle Master ended 2001 with 570 tables, up 95 percent. Meantime, shuffler sales revenue jumped 35 percent to $10.4 million and shuffler lease revenue climbed 22 percent to $16 million.

Shuffle Master’s financial strength was reflected by the company’s decision to increase cash and investments to $18.7 million and expand its unused credit line to $15 million. In the fourth quarter, the firm repurchased 560,000 shares of stock at an average price of $11.45, totaling $6.4 million.