Great revenues increase at SHFL Entertainment
Global gaming supplier SHFL Entertainment Incorporated has released its financial results for the three months to the end of April showing that its total revenues for the period grew by 17 percent year-on-year to reach a record $77.4 million.
Las Vegas-based SHFL Entertainment stated that its utility, electronic gaming machine and proprietary table games businesses ‘all saw double-digit growth over the same period last year’ while recurring revenues grew by eight percent year-on-year to $31.2 million.
SHFL Entertainment revealed that quarterly net income improved by 22 percent year-on-year to a record $11.8 million while its gross margin, which it declared was driven by an rise in utility, electronic gaming machine and proprietary tables games earnings, swelled by 40 basis points when compared with the same period in 2012 to 65 percent.
“Our record second quarter results reflect a continuation of the strong worldwide demand for our innovative products, particularly in Australia and Asia,” said Gavin Isaacs, Chief Executive Officer for SHFL Entertainment.
“What's more, we achieved 17 percent year-on-year growth against a strong comparable quarter last year that included over two million dollars in sales from new openings. The MD3 card shuffler helped fuel this quarter's growth with record placements of 520 units, its strongest performance to date. Our slot machine, shuffler and specialty table games businesses continued to gain momentum with each segment reporting record revenues in the quarter. Given the 22 percent increase in net profits that we announced today, we strongly believe that consistent execution against our strategic initiatives is the right blueprint for building long-term sustainable value for our shareholders.”
SHFL Entertainment declared record adjusted earnings before interest, tax, depreciation and amortisation for the quarter of $25.4 million, which represents an improvement of seven percent year-on-year, although free cashflow dropped by $3.1 million when set against the same three-month period in 2012 to $8.6 million.
“Our diverse businesses continue to deliver solid financial results,” said Linster Fox, Chief Financial Officer for SHFL Entertainment.
“We are confident that keeping our IP-rich businesses well-capitalised has been, and will continue to be, our most important use of cash.
“However, given our balance sheet's current strong position, we will continue to look at the best way to manage a balance between investing in our business and capital allocation for potential mergers and acquisitions, stock repurchases and dividends.”