Revenues, sales grow at Shuffle Master

May 27, 2003 4:00 AM

Noting strong growth in table games revenue and a significant increase in slot product areas, Shuffle Master Inc. (SHFL) reported major increases in total revenue and net income for the second fiscal quarter that ended on April 30.

Revenue reached $16.2 million, an increase of 21% over the $13.4 million reported in the same period of a year ago. The total set a quarterly record for the company.

Operating income increased 32% to $6.2 million while earnings per diluted share increased to $0.24, a jump of 41% over last year’s $0.17 per share.

Mark Yoseloff, chairman and CEO, called the results "better than expected."

"Several positive developments took place during the second quarter that contributed to our results. Blackjack, which was initiated statewide in Arizona, led to increased leasing activity in our core Shuffler business. In terms of Slot products, our upgrade kit was approved in Nevada and Arizona," he said.

As for the future, Yoseloff stated, "We maintain a positive outlook for the remainder of fiscal 2003 and believe Shuffle Master remains solidly positioned to create value for its shareholders, particularly from these levels."

Among the second quarter highlights, Yoseloff said, were:

Surpassed 10,000 shufflers installed.

Produced the 22nd consecutive quarter of growth in its monthly lease, royalty and service contract revenue totaling $11.8 million.

More than doubled installations of slot upgrade kits during the quarter to 311 units, an increase of 174 net units.

Repurchased 307,000 shares of the company’s common stock at a cost of $5.4 million, an average of $17.52 per share.

Increased rolling four-quarter average return on equity (ROE) to 34% from 27% a year ago.