HOUSTON, Sept. 14, 2010 (GLOBE NEWSWIRE) -- Nevada Gold & Casinos, Inc. (NYSE Amex:UWN) today announced financial results for the first quarter ended July 31, 2010.

Financial Highlights first quarter included:
  • Net revenues increased 29.1% to $6.5 million, compared to $5.1 million in the first quarter ended July 31, 2009;
  • Net loss of $0.5 million compared to a net loss of $0.7 million a year ago;
  • Net loss per basic and diluted common share of $0.04, compared to a net loss per basic and diluted common share of $0.05 in the year ago period;
  • EBITDA (1) of $(0.6) million compared to $(0.8) million in the first quarter of fiscal 2010;
  • Adjusted EBITDA (2) of $41,000

"While we are very pleased with our first quarter results, they don't reflect the impact from the six additional mini-casinos we acquired in Washington. Our three original Washington mini-casinos and our Colorado property continue to perform well," said Robert Sturges, CEO of Nevada Gold.

"With the acquisition of the additional locations, Nevada Gold has become the largest owner of mini-casinos in the state of Washington with nine such facilities. The synergies amongst our Washington properties will allow us to operate with great efficiency cross market and offer a high level of consistent guest service and promotional incentives," continued Mr. Sturges.

"We continue to be on track to hit our goal of generating approximately $55 to $60 million in pro-forma revenue subsequent to the addition of the six recently acquired Washington mini-casinos. We also expect that our property level pro-forma EBITDA, adjusted for the additional six mini-casinos, will be approximately $7.5 million to $8 million on an annual basis," concluded Mr. Sturges.

Financial Results

For the first quarter of fiscal 2011, net revenues increased to $6.5 million compared to $5.1 million in the first quarter of fiscal 2010. Due to the termination of the management agreement with SunCruz, the Company did not record a management fee during the first quarter of 2011 compared to $0.2 million in the first quarter of 2010. Operating expenses increased to $7.5 million from $6.0 million in the first quarter of 2010. The increase is primarily due to increased casino operating expenses, marketing and administrative expenses, facility and depreciation expense related to the Washington acquisitions and increased legal expenses related to the July 2010 acquisition, offset by reductions of corporate overhead and other legal expenses.

Net loss for the first quarter of fiscal 2011 was $0.5 million compared to a net loss of $0.7 million in the first quarter of fiscal 2010. Net loss per diluted common share was $0.04, compared to a net loss per diluted common share of $0.05 in the prior year period.

Basic and diluted weighted average common shares outstanding in the first quarter of 2011 was 12.8 million versus 12.9 million in the fiscal first quarter of 2010.

Earnings Conference Call and Webcast

The Company will host a conference call to discuss first quarter 2011 financial results today at 5:00 PM ET. The conference call can be accessed live over the phone by dialing (800) 967-7143, or, for international callers, (719) 457-2646. A replay will be available one hour after the call and can be accessed by dialing (888) 203-1112, or (719) 457-0820 for international callers; the conference ID is 4471891. The replay will be available until Tuesday, September 21, 2010. The call will be webcast live from the Company's website at www.NevadaGold.com under the investor relations section.

(1) EBITDA is a commonly used measurement of gaming company results. The term is used to define earnings before interest, income taxes, depreciation, amortization and management fees. The reconciliation of Operating loss to EBITDA is as follows:
Operating loss as reported $(938,897)
Add back depreciation and amortization 313,839
EBITDA $(625,058)

(2)Adjusted EBITDA excludes non-recurring and non-cash expenses related to acquisitions and stock options granted. The reconciliation of EBITDA to Adjusted EBITDA is as follows:
EBITDA $(625,058)
Expenses related to July 2010 acquisition 575,940
Stock option grants 90,000
Adjusted EBITDA     $40,882

Forward-Looking Statements

This release contains forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We use words such as "anticipate," "believe," "expect," "future," "intend," "plan," and similar expressions to identify forward-looking statements. Forward-looking statements include, without limitation, our ability to increase income streams, to grow revenue and earnings, and to obtain additional gaming and other projects. These statements are only predictions and are subject to certain risks, uncertainties and assumptions, which are identified and described in the Company's public filings with the Securities and Exchange Commission.

About Nevada Gold

Nevada Gold & Casinos, Inc. (NYSE Amex:UWN) of Houston, Texas is a developer, owner and operator of gaming facilities in Colorado and Washington. The following properties are wholly owned and operated by Nevada Gold: Colorado Grande Casino in Cripple Creek, Colorado, the Crazy Moose Casinos in Pasco and Mountlake Terrace, Washington, Coyote Bob's Roadhouse Casino in Kennewick, Washington, the Silver Dollar Casinos in Seatac, Mill Creek and Renton, Washington, the Club Hollywood located in Shoreline, Washington, the Royal Casino located in Everett, Washington and the Golden Nugget Casino located in Tukwila, Washington. The Company has an interest in Buena Vista Development Company, LLC which is working with the Buena Vista Rancheria of Me-Wuk Indians on a Native American casino project to be developed in the city of Ione, California. The Company has a signed management agreement including equity participation for development of a casino and hotel immediately adjacent to the Las Vegas Motor Speedway. For more information, visit www.nevadagold.com .

The Nevada Gold & Casinos, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=1552
Nevada Gold & Casinos, Inc. Balance Sheet    
  July 31, 2010 April 30, 2010
Current assets:    
Cash and cash equivalents  $3,452,635  $3,155,736
Restricted cash  441,101  5,266,938
Accounts receivable  462,150  66,822
Prepaid expenses  876,092  475,262
Income tax receivable  1,750,374  1,750,374
Other current assets  268,491  155,796
Total current assets  7,250,843  10,870,928
Investments in development projects  174,764  1,418,789
Investments in development projects held for sale  3,373,966  3,437,932
Note receivable - development projects, net of current  1,700,000  1,700,000
 portion and allowances    
Goodwill  15,953,660  10,243,362
Identifiable intangible assets, net of accumulated amortization of $919,426 and $729,000 at July 31, 2010 and April 20, 2010  8,294,425  5,101,800
Property and equipment, net of accumulated depreciation    
 of $3,081,291 and $2,978,679 at July 31, 2010 and    
 April 30, 2010, respectively  5,416,866  3,473,051
Deferred tax asset  2,087,943  1,848,419
BVO receivable  4,000,000  4,000,000
Other assets, net of allowances  478,538  376,938
Total assets  $48,731,005  $42,471,219
Current liabilities:    
Accounts payable and accrued liabilities 2,388,296 1,060,017
Accrued interest payable  70,000  70,000
Other accrued liabilities  678,443  687,819
Long-term debt, current portion  69,263  -- 
Total current liabilities 3,206,002 1,817,836
Long-term debt, net of current portion 15,118,166 10,000,000
Other liabilities 177,310 30,944
Total liabilities 18,501,478 11,848,780
Commitments and contingencies -- --
Stockholders' equity:    
Common stock, $0.12 par value per share; 50,000,000    
  shares authorized; 13,935,330 shares issued and     
  12,764,130 shares outstanding at July 31, 2010    
  and April 30, 2010, respectively 1,672,240 1,672,240
Additional paid-in capital 19,976,126 19,859,966
Retained earnings 18,955,900 19,464,972
Treasury stock, 1,171,200 shares at July 31, 2010 and    
 April 30, 2010, respectively, at cost  (10,369,200)  (10,369,200)
Accumulated other comprehensive income  (5,539)  (5,539)
Total stockholders' equity 30,229,527 30,622,439
Total liabilities and stockholders' equity $48,731,005 $42,471,219
Nevada Gold & Casinos, Inc. Consolidated Statements of Operations (unaudited)  
  Three Months Ended
  July 31, July 31,
  2010 2009
Casino $5,759,854 $4,185,063
Food and beverage 1,341,621 1,113,766
Management fees  --   250,000
Other 225,509 184,034
Gross revenues 7,326,984 5,732,863
Less promotional allowances  (800,484)  (675,644)
Net revenues 6,526,500 5,057,219
Casino 2,635,552 1,910,945
Food and beverage 674,769 833,582
Casino marketing and administrative 1,772,255 1,240,779
Facility 347,674 260,848
Corporate expense 1,169,179 1,431,698
Legal expense 396,156 64,293
Depreciation and amortization  313,839  145,167
Other  155,973  83,220
Total operating expenses  7,465,397  5,970,532
Operating loss  (938,897)  (913,313)
Non-operating income (expenses):    
Gain on sale of assets  384,414  -- 
Interest income  44,925  58,509
Interest expense  (227,788)  (152,981)
Amortization of loan issue costs  (11,250)  (32,209)
Loss before income tax benefit  (748,596)  (1,039,994)
Income tax benefit  239,524  339,285
Net loss $ (509,072) $ (700,709)
Per share information:    
Net loss per common share - basic  $(0.04)  $(0.05)
Net loss per common share - diluted  $(0.04)  $(0.05)
Basic weighted average number of shares outstanding 12,764,130 12,939,130
Diluted weighted average number of shares outstanding 12,764,130  12,939,130
CONTACT:  Nevada Gold & Casinos, Inc.          Robert B. Sturges, CEO          Jim Kohn, CFO          (713) 621-2245          ICR          Don Duffy          (203) 682-8200

company logo