Shuffle Master earnings up

Jun 1, 2004 5:27 AM

Record revenues and strong earnings from continuing operations were reported by Shuffle Master Inc. (SHFL) for the second quarter that ended on April 30.

Net income for the period rose to $5.3 million or $0.21 per diluted share compared to last year’s $4 million or $0.16 per share. Revenues reached $20.2 million compared to $13.5 million in the same quarter of a year ago.

Two areas of strong growth were cited by Dr. Mark L. Yoseloff, chairman and CEO, as boosting the company’s profits. These were said to be the utility products division and the entertainment products division.

"From a financial and strategic standpoint, our second quarter was outstanding," Yoseloff said.

"Our Utility Products, which include shuffler sales and leases, experienced a 28% increase in revenue while our Entertainment Products, which include table game royalties and sales, showed 83% top line growth," he said.

As for strategic moves made by the company during the current fiscal year, Yoseloff said the company divested "out slot assets at a profit so that we could focus on our core businesses," and acquired two companies, Bet Technologies Inc., in February, and casino products developer CARD, adding proprietary products to its line.

Looking to provide guidance as to future activities, Yoseloff said that "Given the company’s performance and its recent acquisitions, management is increasing its expectations for future earnings growth. Based on the current outlook, management is now forecasting fully diluted earnings per share to be in the range of $0.86 to $0.89 in fiscal 2004 and $1.12 to $1.18 in fiscal 2005."

In April, the company had a 3-2 stock split to shareholders of record on April 5.

Canterbury Park

There won’t be any slots installed at Canterbury Park in the near future, based on the legislature’s recent inaction relative to creating a racino but it appears that they can look forward to doubling the number of card tables at the track.

But even without the additional gaming stations, Canterbury Park Holding Corporation (ECP) reported record quarterly earnings and earnings per share. Net income for the period that ended on March 31 was $1.2 million on revenues of $11.3 million. This compared favorably with last year’s $839,087 in net income on revenue of $9.2 million.

Earnings per share, the company said, were $0.30 in the first quarter. Last year, the earnings per share were $0.21.

Commenting on the report, Randy Sampson, company president, said he was "looking forward to the upcoming 2004 racing season, which begins our tenth year of providing live horse racing entertainment to our loyal fans. Enhancements to the racing experience for 2004 include the recently completed $1.5 million renovation of our club-level facility."