Shuffle Master profit up 87 percent

Table game provider Shuffle Master saw its profit jump 87 percent in the third quarter, saying it was able reduce expenses during the challenging economy.

The Las Vegas-based company said Wednesday it had a net income of $5.6 million in the quarter that ended July 31, which translated into earnings of 10 cents per share. A year ago, the company reported net income of $3 million or 8 cents per share.

Analysts surveyed by Thomson Reuters were expecting a profit of 7 cents per share.

During the quarter, Shuffle Master said overall revenue fell 8.9 percent to $45.1 million from $49.5 million a year ago.

“We are continuing to see the real impact on our bottom line of specific cost containment measures initiated earlier this year,” Shuffle Master Chief Executive Officer Tim Parrott said in a statement. He said the company has been able to weather the current economic climate.

“(We) are confident that regional expansions, new openings in Asia, increased momentum in the shuffler replacement cycle and the i-Table rollout this fall are all milestones on the path toward future top line improvements as well,” Parrott said.

Union Gaming Group principal Bill Lerner, in a note to investors before Shuffler Master announced earnings, said the company may be able to capitalize on expansion opportunities in various states seeking to add table games.

“Given a now stable balance sheet, manageable leverage, and decent liquidity, management can focus on its ‘reemergence’ in fiscal year 2010,” Lerner said.

Shuffle Master shares rose 16 cents, or 2.1 percent, to close at $7.69 on the Nasdaq National Market before the results were released. The shares rose another 30 cents, or 3.9 percent, to $7.99 in late trading.

Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871.