September 9, 2013 - 8:56 am
Gaming equipment provider SHFL entertainment, which is being purchased by Bally Technologies in a $1.3 billion buyout, said costs associated with the merger took a toll on the company’s quarterly results.
The Las Vegas-based company said a one-time expense of $3.6 million associated with the buyout drove down both earnings per share in the third quarter that ended July 31.
SHFL reported earnings late Friday but did not host a conference call to discuss the results.
Net income for SHFL was $6.4 million, down 42 percent from a year ago. SHFL said the company’s earnings per share was 11 cents, down from 18 cents per share in the third 2012 third quarter.
SHFL said its total revenues in the quarter grew 16 percent to $73.5 million. The company credited a 79 percent year-over-year increase in sales from electronic table systems.
In July, Bally announced a deal to acquire SHFL for $23.25 per share. The transaction is expected to close early next year. Analysts didn’t expect SHFL’s quarterly results to have any effect on the company’s stock price.
“Given our expectation for the acquisition to close on time, we believe shares will continue to trade in a tightly defined range around the offer price,” Stifel Nicolaus Capital Markets gaming analyst Steven Wieczynski told investors Monday.
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