Casino equipment maker SHFL reports record revenue
Las Vegas-based SHFL entertainment rode strong demand for its automatic shuffling machines to record second-quarter revenue of $77.4 million, 17 percent ahead of last year's quarter, the company announced today.
"Our record second quarter results reflect a continuation of the strong worldwide demand for our innovative products, particularly in Australia and Asia," Gavin Isaacs, SHFL's CEO said in a release announcing earnings.
The company reported net income of $11.8 million, 21 cents a share, compared with $9.7 million, 17 cents a share, on revenue of $68.1 million for the quarter that ended April 30. Earnings outpaced analysts' estimates by a penny a share.
In today's conference call, Isaacs said the explosive growth of gaming in Macau and higher market share in New South Wales contributed to the company's success. About 55 percent of SHFL's revenue came from leases and sales to casinos outside the United States.
"Given the 22 percent increase in net profit 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," Isaacs said.
Chief financial officer Linster Fox said the company leased 28 fewer i-Deal shufflers during the quarter as a result of an unnamed American company purchasing units after leasing them.
In addition to shuffling machines, SHFL produces table games, slot machines and table management systems.