Las Vegas-based Shuffle Master sets record quarterly profit

VEGAS INC coverage

Las Vegas-based gaming supplier Shuffle Master Inc. on Wednesday reported a record quarterly profit as casinos in Australia stepped up purchases and leases of its products.

Shuffle Master, which makes shufflers, roulette chip sorters, slot machines and other products, said revenue during its third quarter ended July 31 increased 13 percent to $58.3 million.

This was broken down to some $33.5 million in sales and service revenue and $24.8 million in lease and royalty revenue.

The company said 45.6 percent of its revenue came from U.S. sales, down from 54.2 percent in the year-ago quarter. In Australia, it jumped from 25 percent last year to 35 percent this year.

Sales in the United States fell from $27.9 million to $26.6 million. In the largest market, Las Vegas, the last big resort to open was the Cosmopolitan in December.

Shuffle Master’s revenue gain helped drive a 56 percent increase in the company’s profit to $9.1 million or 17 cents per share, up from $5.8 million or 11 cents in the year-ago quarter.

“We achieved record EBITDA ($19.5 million) in the quarter through superior execution on three fronts: product innovation, continued commitment to grow recurring revenue, and disciplined expense management,” CEO Gavin Isaacs said in a statement. “Our biggest accomplishment is how we have positioned Shuffle Master to take advantage of significant opportunities across the globe, providing an even stronger foundation for long-term, sustainable earnings growth.”

EBITDA means earnings before interest, taxes, depreciation and amortization.

The company said it grew the number of leased shufflers to casinos around the world by 18 percent in the quarter to 7,800.

Gaming

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