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Shuffle Master (SHFL) Posts Record Q2 Revenue, Solid International Demand

|Includes: SHFL entertainment, Inc. (SHFL)

Shuffle Master Inc., a gaming supply company, today announced its results for the second quarter ended April 30, 2011, posting record revenue and noting executive changes.

Total revenue increased 18 percent to a quarterly record of $59.9 million, driven by recurring revenue growth in Utility and Proprietary Table Games, as well as significant sales of Electronic Gaming Machines.

GAAP net income remained consistent at $7.9 million, or $0.14 per share, as compared to $0.15 in the year-ago quarter.

Adjusted EBITDA was $19.0 million, up 5 percent compared to $18 million reported in the comparable quarter of 2010.

Free cash flow was $15.4 million compared to $4.6 million reported for the second quarter of the year prior.

“During the quarter we achieved record quarterly revenue of nearly $60 million, filled some key strategic roles such as a new CEO and general counsel, witnessed yet another quarter of phenomenal EGM performance, and we continued to grow recurring revenue,” Gavin Isaacs, CEO of Shuffle Master stated in the press release.

Net debt was $56.8 million compared to $56.3 million in the prior year period. The company reported that cut $6.0 million of its $200 million senior secured revolving credit facility in the second quarter.

International revenue contributed roughly 59 percent of total revenues in the second quarter; Australia represented 41 percent of total revenues.

“We’re very encouraged with our steadily improving ship share in Australia resulting from customer demand for our new Equinox™ cabinet,” David Lopez, chief operating officer of the company stated. “We attribute this success to our R&D efforts, continued investments in game content, and improved execution.”

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