On April 23, Shuffle Master
• Earnings folded over 71%, while management struggles to generate returns from the recent acquisition of Stargames.
• Shuffle Master was delinquent in its earnings release for the first quarter when it overstated inventory purchased from a subsidiary.
• The Motley Fool CAPS community bets two stars on Shuffle Master, while Gaming Partners International Corporation
(Figures in thousands, except per-share data.)
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$37,341.0 |
$33,318.0 |
12.1% |
|
Net Profit |
$2,025.0 |
$7,353.0 |
(72.5%) |
|
EPS |
$0.06 |
$0.21 |
(71.4%) |
|
Diluted Shares |
35,594.0 |
35,692.0 |
(0.3%) |
Get back to basics with the income statement.
Margin Checkup
|
Q1 2007 |
Q1 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
71.9% |
78.7% |
(6.8) |
|
Operating Margin |
12.6% |
34.3% |
(21.7) |
|
Net Margin |
5.4% |
22.1% |
(16.7) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$3,064.0 |
$40,972.0 |
(92.5%) |
|
Accounts Rec. |
$29,252.0 |
$19,261.0 |
51.9% |
|
Inventory |
$28,627.0 |
$8,293.0 |
245.2% |
|
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$6,441.0 |
$5,074.0 |
26.9% |
|
Long-Term Debt |
$222,608.0 |
$153,103.0 |
45.4% |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$3,919.0 |
$9,748.0 |
(59.8%) |
|
Capital Expenditures |
$3,166.0 |
$2,271.0 |
39.4% |
|
Free Cash Flow |
$753.0 |
$7,477.0 |
(89.9%) |
Free cash flow is a Fool's best friend.
Related Foolishness:
• Gaming Roundup: Macau Continues to Roll
• Shuffling Out of Shuffle Master?
Shuffle Master is a Motley Fool Stock Advisor recommendation. You can find out why with a 30-day free trial to the Gardner brothers' market-beating service.
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.
