PAUL SON GAMING CORP

CIK:0000918580|SEC Filings

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Revenues	$ 87,009	$ 80,602
Cost of revenues	59,974	57,924
Gross profit	27,035	22,678
Marketing and sales	7,469	6,619
General and administrative	10,750	9,016
Research and development	3,996	1,517
Operating income	4,820	5,526
Other expense, net	(215)	(85)
Income before income taxes	4,605	5,441
Income tax provision	888	1,815
Net income	$ 3,717	$ 3,626
Earnings per share:
Basic	$ 0.47	$ 0.46
Diluted	$ 0.46	$ 0.45
Weighted-average shares of common stock outstanding:
Basic	7,970	7,930
Diluted	8,051	8,045

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Cash Flows from Operating Activities
Net income	$ 3,717	$ 3,626
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property and equipment	4,485	4,359
Amortization of intangible assets	248	242
Recovery of bad debt	(120)	(498)
Change in fair value of stock appreciation rights	261	296
Inventory write-down	0	847
Deferred income taxes	948	922
Loss on sale or disposal of property and equipment	151	87
Loss in equity investment	0	40
Change in operating assets and liabilities:
Accounts receivable	(483)	4,175
Inventories	1,217	(2,227)
Prepaid expenses and other current assets	(1,376)	(1,462)
Non-current other assets	(1,445)	290
Accounts payable	(1,309)	1,058
Accrued liabilities and non current other liabilities	(435)	(1,094)
Customer deposits and deferred revenue	1,861	(683)
Income taxes payable	(328)	162
Net cash provided by operating activities	7,392	10,140
Cash Flows from Investing Activities
Proceeds from sale of property and equipment	25	0
Insurance proceeds from damaged property and equipment	296	0
Purchase of equity method investment	(150)	(451)
Purchase of licensing rights	0	(100)
Capital expenditures	(2,505)	(4,374)
Net cash used in investing activities	(2,334)	(4,925)
Cash Flows from Financing Activities
Repurchase of common stock	(3)	0
Principal payments on long-term debt	(6,666)	(1,349)
Dividends paid	(970)	(952)
Proceeds from exercise of stock options	949	35
Cash paid for exercise of stock appreciation rights	(170)	(42)
Net cash used in financing activities	(6,860)	(2,308)
Effect of exchange rate changes on cash	(162)	553
Net increase in cash and cash equivalents	(1,964)	3,460
Cash and cash equivalents, beginning of period	14,064	10,604
Cash and cash equivalents, end of period	12,100	14,064
Supplemental disclosures of cash flow information:
Cash paid for interest	176	249
Cash paid, net of refunds received, for income taxes	831	1,229
Supplemental disclosure of non-cash investing and financing activities:
Stock appreciation rights liability, classified under accrued liabilities	0	898
Property, plant and equipment acquired through accounts payable, accrued and non-current other liabilities	$ 63	$ 62

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Current Assets:
Cash and cash equivalents	$ 12,100	$ 14,064
Accounts receivable, net	8,006	7,415
Inventories	13,885	15,118
Prepaid expenses	1,075	1,163
Other current assets	4,044	2,836
Total current assets	39,110	40,596
Property and equipment, net	22,547	24,933
Goodwill	10,292	10,292
Intangible assets, net	1,523	1,676
Investment	560	411
Deferred income tax assets	320	675
Inventories, non-current	2,219	2,453
Other assets, non-current	3,056	2,240
Total assets	79,627	83,276
Current Liabilities:
Accounts payable	3,410	4,616
Accrued liabilities	6,157	6,485
Customer deposits and deferred revenue	4,873	3,020
Current portion of long-term debt	0	1,401
Income taxes payable	365	693
Total current liabilities	14,805	16,215
Long-term debt	0	5,265
Deferred income tax liabilities	412	0
Other liabilities, non-current	620	480
Total liabilities Total liabilities	15,837	21,960
Commitments and contingencies (Note 11)
Stockholders' Equity:
Preferred stock, authorized 10,000,000 shares, $0.01 par value, none issued and outstanding	0	0
Common stock, authorized 30,000,000 shares, $0.01 par value, 8,376,577 and 8,085,194 shares issued and outstanding, respectively, as of December 31, 2018, and 8,223,077 and 7,932,094 shares issued and outstanding, respectively, as of December 31, 2017	84	82
Additional paid-in capital	20,219	19,272
Treasury stock at cost: 291,383 shares as of December 31, 2018 and 290,983 shares as of December 31, 2017	(2,266)	(2,263)
Retained earnings	47,055	44,718
Accumulated other comprehensive loss	(1,302)	(493)
Total stockholders' equity	63,790	61,316
Total liabilities and stockholders' equity	$ 79,627	$ 83,276