Nevada Gold Announces First Quarter 2013 Financial Results

Adjusted EBITDA Increases 50% Washington Gold and South Dakota Gold Operations Both Perform Well

HOUSTON, Sept. 12, 2012 (GLOBE NEWSWIRE) -- Nevada Gold & Casinos, Inc. (NYSE MKT:UWN) today announced financial results for the first quarter of fiscal 2013, ended July 31, 2012.

First Quarter 2013 Financial Highlights
  • Net revenues increased 31.8% to $16.8 million
  • Operating income of $0.7 million compared to $0.01 million in the prior-year period
  • Net income per share from continuing operations of $0.01 compared to $0.00 in the prior-year period
  • Adjusted EBITDA (1) from continuing operations increased 50% to $1.3 million

"Nevada Gold started the new fiscal year on a strong note," said Interim President Ernest East. "We are very pleased with the performance of the South Dakota Gold slot route business we acquired in January 2012. The many steps we took to re-energize and ramp up its operations had a very positive impact and business during the summer tourism season exceeded our expectations. South Dakota Gold contributed more than $400,000 to the company's adjusted EBITDA in the first quarter, and we remain on track to realize more than $1 million in adjusted EBITDA annually through its operations. This morning's announcement about the addition of The Midnight Star to our Deadwood, SD slot machine route provides additional confirmation of the progress we have made."

Mr. East added, "Our Washington Gold casino operations also performed well, with a solid increase in net revenues and adjusted EBITDA due to a 17% increase in table drop. As expected, our hold percentage in Washington Gold stabilized and met our expectations for the period. Our addition of a tenth mini-casino, the Red Dragon, in July 2011 strengthened our portfolio, contributing to our year-over-year adjusted EBITDA improvement. With a strong first quarter behind us, we continue to work towards achieving Nevada Gold's previously stated operational and financial goals."

Financial Results

As previously announced, Nevada Gold completed the sale of the Colorado Grande Casino in Cripple Creek, Colorado in May 2012. As a result, the Colorado Grande's results have been reclassified as discontinued operations. Financial information presented below represents results from continuing operations.

For the first quarter of fiscal 2013, net revenues increased to $16.8 million compared to $12.8 million in the prior-year period. Operating expenses increased to $16.1 million from $12.7 million in the prior-year period. Operating income totaled $0.7 million compared to operating income of $77,400. Net income was $0.2 million compared to a net loss of $0.2 million in the 2012 quarter. On a per share basis, net income for continuing operations was $0.01 in the 2013 first quarter compared to $0.00 in the prior-year period. On a per share basis, net loss for discontinued operations was $0.00 in the 2013 quarter compared to $0.02 in the 2012 quarter.

Diluted weighted average common shares outstanding in the first quarter of fiscal 2013 were 16.4 million compared to 13.9 million in the prior-year period.

Conference Call and Webcast

The Company will host a conference call to discuss first quarter 2013 financial results today at 11:00 AM ET. The conference call can be accessed live over the phone by dialing (888) 378-4353, or, for international callers, (719) 325-2456. The conference ID is #8908340. A replay will be available one hour after the call and can be accessed by dialing (877) 870-5176, or for international callers, (858) 384-5517; the conference ID is #8908340. The replay will be available through Wednesday, September 19, 2012. The call will be webcast live from the Company's website at www.NevadaGold.com  under the Investor Relations section.

(1) Non-GAAP Information

The term "adjusted EBITDA" is used by us in presentations, quarterly earnings calls, and other instances as appropriate. Adjusted EBITDA is defined as net income before interest, income taxes, depreciation and amortization, non-cash goodwill and other long-lived asset impairment charges, write-offs of project development costs, litigation charges, non-cash foreign currency transaction gains and losses, non-cash stock option grants, exclusion of net income or loss from operations held for sale, and net losses/gains from asset dispositions. Adjusted EBITDA does not take into account greater or less than expected hold percentages in the gaming operations. Adjusted EBITDA is presented because it is a required component of financial ratios reported by us to our lenders, and it is also frequently used by securities analysts, investors, and other interested parties, in addition to and not in lieu of, U.S. Generally Accepted Accounting Principles ("GAAP") results to compare to the performance of other companies that also publicize this information. Adjusted EBITDA is not a measurement of financial performance under GAAP and should not be considered as an alternative to net income as an indicator of our operating performance or any other measure of performance derived in accordance with GAAP. 

Adjusted EBITDA reconciliation for the three months ended July 31, 2012 and July 31, 2011:

Adjusted EBITDA reconciliation to net income (loss):
  For the three months ended
  July 31, 2012 July 31, 2011
     
Net income (loss) $ 168,125 $ (191,859)
Add:    
Income tax expense (benefit) 88,689 (283,927)
Net interest expense 462,144 348,050
Loss on sale of assets 1,245 314
Depreciation and amortization 538,981 438,663
Deferred rent 19,034 --
Stock option and ESPP grants 4,077 289,838
Loss on operations held for sale 321 204,841
Acquisition expenses -- 51,945
Adjusted EBITDA $ 1,282,616 $ 857,865
     

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 MKT:UWN) of Houston, Texas is a developer, owner and operator of 10 gaming operations in Washington ("Washington Gold") and a 950-machine slot route operation in Deadwood, South Dakota ("South Dakota Gold"). The Company also has a gaming license in Nevada and an interest in Buena Vista Development Company, LLC, which is working on a Native American casino project to be developed in Ione, California. For more information, visit www.nevadagold.com

The Nevada Gold logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=13803
Contacts: 
Nevada Gold & Casinos, Inc.
Jim Kohn, CFO
(713) 621-2245
 
LHA
Harriet Fried / Jody Burfening
(212) 838-3777
hfried@lhai.com
 
 
Nevada Gold & Casinos, Inc.
Consolidated Balance Sheets
     
  July 31, 2012 April 30, 2012
  (unaudited)  
     
ASSETS
Current assets:    
Cash and cash equivalents $ 6,265,107 $ 5,200,161
Restricted cash  1,957,114  1,787,068
Accounts receivable  990,919  653,433
Prepaid expenses  1,471,516  909,834
Notes receivable, current portion  104,058  20,600
Other current assets  360,591  354,817
Assets of operations held for sale  --   33,601
Total current assets  11,149,305  8,959,514
     
Investments in development projects  264,360  255,355
Real estate held for sale  1,100,000  1,100,000
Notes receivable, net of current portion  2,239,703  -- 
Goodwill  16,103,584  16,090,799
Identifiable intangible assets, net of accumulated amortization of $3,509,262 and $3,201,868 at July 31, 2012 and April 30, 2012, respectively  7,475,059  7,782,453
Property and equipment, net of accumulated depreciation of $1,965,835 and $1,785,064 at July 31, 2012 and April 30, 2012, respectively  5,238,267  5,399,103
Deferred tax asset, net  5,162,547  5,251,236
Other assets  1,165,861  1,219,356
Assets of discontinued operations  --   3,115,097
Total assets $ 49,898,686 $ 49,172,913
     
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:    
Accounts payable and accrued liabilities $ 2,371,932 $ 2,176,545
Accrued interest payable  56,875  61,141
Other accrued liabilities  2,810,702  2,632,067
Long-term debt, current portion  2,512,573  1,400,324
Liabilities of operations held for sale  145,062  23,699
Total current liabilities 7,897,144 6,293,776
Other long term liabilities  356,883  337,849
Long-term debt, net of current portion 14,045,000 15,155,000
Total liabilities 22,299,027 21,786,625
     
Stockholders' equity:    
Common stock, $0.12 par value per share; 50,000,000 shares authorized; 16,707,205 and 16,707,205 shares issued and 15,960,174 and 15,924,368 shares outstanding at July 31, 2012, and April 30, 2012, respectively  2,009,161 2,004,865
Additional paid-in capital 24,196,108 24,155,158
Retained earnings 8,331,964 8,163,839
Treasury stock, 782,837 shares at July 31, 2012 and April 30, 2012, respectively, at cost  (6,932,035)  (6,932,035)
Accumulated other comprehensive loss  (5,539)  (5,539)
Total stockholders' equity 27,599,659 27,386,288
Total liabilities and stockholders' equity $ 49,898,686 $ 49,172,913
 
 
Nevada Gold & Casinos, Inc.
Consolidated Statements of Operations
(unaudited)
     
  Three Months Ended
  July 31, July 31,
  2012 2011
Revenues:    
Casino  $ 14,761,259  $ 10,921,276
Food and beverage 2,557,601 2,592,780
Other 668,699 515,487
Gross revenues 17,987,559 14,029,543
Less promotional allowances  (1,176,856)  (1,279,073)
Net revenues 16,810,703 12,750,470
     
Expenses:    
Casino 8,048,694 5,312,352
Food and beverage 1,185,087 977,363
Marketing and administrative 4,385,228 3,918,345
Facility 543,621 489,579
Corporate expense 873,774 1,082,764
Legal expense 38,862  6,933
Depreciation and amortization  538,981  438,663
Deferred rent  19,034  -- 
Acquisition costs  --   51,945
Excise taxes  313,320   292,251
Other  143,578  102,856
Total operating expenses  16,090,179  12,673,051
Operating income  720,524  77,419
Non-operating income (expenses):    
Loss on sale of assets  (1,245)  (314)
Interest income  900  42,849
Interest expense  (385,501)  (379,649)
Amortization of loan issue costs  (77,543)   (11,250)
Income (loss) before income tax benefit (expense)  257,135  (270,945)
Income tax benefit (expense)  (88,689)  283,927
Net income from continuing operations  $ 168,446  $ 12,982
Net loss from discontinued operations, net of taxes  (321)  (204,841)
Net income (loss)  $ 168,125  $ (191,859)
Per share information:    
Net income per common share - basic and diluted for continuing operations  $ 0.01  $ 0.00
     
Net loss per common share - basic and diluted for discontinued operations  $ (0.00)  $ (0.01)
     
Basic weighted average number of shares outstanding 15,935,655 12,856,030
     
Diluted weighted average number of shares outstanding 16,355,655 13,916,030

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