Wall Street Transcript Interview with Gavin Isaacs, Chief Executive Officer of SHFL Entertainment, Inc. (SHFL)

Wall Street Transcript

67 WALL STREET, New York - November 30, 2012 - The Wall Street Transcript has just published its Gaming and Leisure Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Hotel Occupancy, Rates and RevPAR Trend Upward - U.S. Regional and Emerging Market Hospitality - Gaming Opportunities In Asian Markets - Macau VIP and Mass Market Gaming

Companies include: Shuffle Master Inc. (SHFL)

In the following excerpt from the Gaming and Leisure Report, the CEO of SHFL entertainment discusses the outlook for his company for investors:

TWST: Please start by introducing readers to SHFL entertainment with a company history and an overview of the business today.

Mr. Isaacs: Although we changed our name last month to SHFL entertainment, we are nearly 30 years old. We started in Minnesota. We're publicly traded on Nasdaq, and we have over 800 employees around the globe. We have several subsidiaries offshore, including a particularly large presence in Australia; we have an office in Macau; and our European headquarters is in Vienna, although we've just opened a Gibraltar office as well for our online business.

We are a leading global gaming supplier, particularly in the table space. We have over 300 gaming licenses. The company was founded by John Breeding, who invented the very first card shuffler as a way to prevent card counting, and from that, we expanded into table games.

In 2006, SHFL acquired a company in Australia called Stargames, which expanded the business segments to include slot machines and electronic tables. Over the last 18 months, we've invested quite heavily in all of our businesses, but also, we've started taking our renowned specialty table game titles and offering them online, so our iGaming arm has officially been added.

We finished our financial year yesterday, October 31. The figures for last year were about $230 million in annual revenue, about half of which is recurring. We generate a lot of cash, approximately $48 million in free cash flow last year. This last quarter, we became net debt free.

We continue to grow. We've enjoyed very good quarter-on-quarter growth for quite some time now. Q3 year to date, we're up 15% on the top line, and our earnings per share were up about 28% year on year, excluding expenses that were associated with the Ongame acquisition. So we're small, but we are a leader in what we do, and we have a great culture in our company as well.

TWST: The company recently changed its name from Shuffle Master, which was its first and namesake product, to SHFL entertainment. What was behind the name change?

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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