Revenues increased by 14 percent in Q4 and 12 percent for 2012. Diluted earnings per share increased by 6 percent in Q4. Highlights on revenues was the e-Table segment, which increased by 37 percent in Q4, and the specialty game revenue, which increased by 23 percent in Q4.
Gross margins in Q4 were 64 percent, an increase of 110 basis points due to an increase in revenue. The company came closer to its goal of a 25 percent operating profit margin, reaching a 22 percent operating profit margin in 2012.
Shuffle's iGaming strategy includes paid online gambling, such as online poker, and free-to-play games on its operators' websites or standalone game apps to earn chips at a casino. Shuffle has spent $3 million this year to create iGaming. It is creating strategic partnerships to promote iGaming, including a new partnership with Amaya Gaming. Shuffle anticipates investing $10 million into iGaming. The revenue that it hopes to obtain from iGaming will be repetitive and high margin.
Shuffle has also decided to bring its slot machines to select U.S. markets.
The transcript of the earnings conference call can be found on Seeking Alpha at the following link:
http://seekingalpha.com/article/1069721-shuffle-master-s-ceo-discusses-f4q2012-results-earnings-call-transcript?part=single
Copyright 2012 Jaygo's Earnings Conference Call Summaries
This work is licensed under a Creative Commons Attribution-NoDerivs 3.0 Unported License.
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