Nevada Gold & Casinos Reports Fourth Quarter Results

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| Source: Nevada Gold & Casinos, Inc.

LAS VEGAS, July 29, 2014 (GLOBE NEWSWIRE) -- Nevada Gold & Casinos, Inc. (NYSE MKT:UWN) today announced financial results for the fourth quarter ended April 30, 2014.

For the fourth quarter of fiscal 2014, the company reported net revenues of $16.0 million compared to $16.5 million in the fourth quarter of fiscal 2013. Operating expenses decreased to $14.8 million compared to $15.5 million in the prior year period. Operating income from continuing operations increased to $1.3 million compared to $1.1 million in the prior year period. Income before taxes also increased to $1.0 million compared to $0.7 in the prior year period. Net income from continuing operations was $0.7 million, compared to $0.5 million in the prior year period.

During the fourth quarter, net revenues from Washington were $14.1 million, a slight decrease from the $14.2 million in the prior year period, however, EBITDA improved slightly to $2.3 million compared to $2.2 million in the prior year period. South Dakota route operation revenues decreased to $1.9 million from $2.3 million in the prior year period, primarily due to a reduction in units. EBITDA declined to $83,000 for the quarter, compared to EBITDA of $147,000 in the prior year. Corporate expenses were $0.5 million compared to $0.7 million in the prior year period. On a consolidated basis, adjusted EBITDA was $1.9 million compared to $1.7 million in the prior year period. Net interest expense decreased to $157,000 compared to $393,000, in the prior year period.

"Our fiscal fourth quarter reflects the first full benefit of our debt refinancing completed last December. With the reduced interest expense and solid operating performance, we expect to generate strong earnings growth and free cash flow in fiscal 2015 and forward," said President and CEO Michael Shaunnessy.  

For the full fiscal year 2014, net revenues were $62.8 million compared to $65.9 million in fiscal year 2013. Operating expenses were $60.5 million compared to $63.5 million in the prior year.  Operating income from continuing operations was $2.3 million compared to $2.4 million in fiscal 2013. Income before taxes was $0.7 million compared to $0.7 million in the prior year period.  Net income from continuing operations was $0.5 million compared to $0.1 in the prior year. 

(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 stock grants, non-cash employee stock purchase plan discounts, 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 reconciliations for the three months and fiscal years ended April 30, 2014 and April 30, 2013 are shown below:

Adjusted EBITDA reconciliation to net income:  
  For the three months ended
  April 30, 2014  April 30, 2013
     
Net income $ 646,089 $ 452,434
Add:    
Income tax expense (benefit) 399,239 211,065
Net interest expense (income) 156,669 392,757
Depreciation and amortization 571,245 498,764
Loss on settlements - sale of assets 11,676 986
Deferred rent (3,537) 19,034
Stock option amortization  13,620   13,620
Employee stock purchase discount  1,391  --
Decrease in swap fair value  58,352  --
Relocation expenses  -- 127,029
Adjusted EBITDA $ 1,854,744 $ 1,715,689
   
Adjusted EBITDA reconciliation to net income:  
  For the fiscal year ended
   April 30, 2014  April 30, 2013
     
Net income $ 447,981 $ 36,097
Add:    
Income tax expense (benefit) 282,758 560,052
Net interest expense (income) 1,222,904 1,704,027
Depreciation and amortization 2,263,499 2,126,888
Loss on settlements - sale of assets 27,605 6,081
Deferred rent 14,536 76,136
Stock option amortization 54,479 137,858
Employee stock purchase discount 7,384  --
Loss on debt extinguishment 283,550  --
Decrease in swap fair value  58,352  --
Relocation expenses  -- 127,029
Severance expense  -- 637,868
Impairments, write-offs, recoveries, net  56,959 257,733
Loss on operations held for sale  -- 91,603
Adjusted EBITDA $ 4,720,007 $ 5,762,182

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 & Casinos

Nevada Gold & Casinos, Inc. (NYSE MKT:UWN) of Las Vegas, Nevada is a developer, owner and operator of 10 gaming operations in Washington (wagoldcasinos.com) and a slot route operation in Deadwood, South Dakota (dakotaplayersclub.com). The Company also has a social gaming application, Gold Star Slots, available on Facebook and in the Apple store.  For more information, visit www.nevadagold.com.

Nevada Gold & Casinos, Inc. 
Consolidated Balance Sheets
     
  April 30, April 30,
  2014 2013
     
     
ASSETS
Current assets:    
Cash and cash equivalents  $ 7,738,985  $ 6,723,919
Restricted cash  1,388,995  1,306,487
Accounts receivable  252,504  445,481
Prepaid expenses  829,228  854,092
Deferred tax asset, current portion  98,643  67,123
Notes receivable, current portion  332,973  216,596
Inventory and other current assets  344,686  373,923
Total current assets  10,986,014  9,987,621
     
Investments in development projects  --   56,959
Real estate held for sale  1,100,000  1,100,000
Notes receivable, net of current portion  1,730,246  2,082,853
Goodwill  16,103,583  16,103,583
Identifiable intangible assets, net of accumulated amortization of $5,619,009 and $4,413,439 at April 30, 2014 and April 30, 2013, respectively  5,754,167  6,959,738
Property and equipment, net of accumulated depreciation    
of $3,632,349 and $2,599,940 at April 30, 2014 and    
April 30, 2013, respectively  4,289,178  5,028,122
Deferred tax asset, net of current portion  4,356,972  4,671,250
Other assets  486,466  533,860
Total assets  $ 44,806,626  $ 46,523,986
     
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:    
Accounts payable and accrued liabilities  $ 1,427,010  $ 2,024,465
Accrued interest payable  37,470  34,393
Other accrued liabilities  2,178,317  2,127,140
Long-term debt, current portion  1,625,000  1,280,000
Total current liabilities 5,267,797 5,465,998
Long-term debt, net of current portion 10,725,000 12,930,000
Other long term liabilities  486,870  421,253
Total liabilities 16,479,667 18,817,251
     
     
Stockholders' equity:    
Common stock, $0.12 par value per share; 50,000,000 shares authorized; 16,980,676 and 16,864,122 shares issued and 16,197,839 and 16,081,285 shares outstanding at April 30, 2014, and April 30, 2013, respectively  2,037,689 2,023,705
Additional paid-in capital 24,578,117 24,419,858
Retained earnings 8,648,727 8,200,746
Treasury stock, 782,837 shares at April 30, 2014 and April 30, 2013, at cost  (6,932,035)  (6,932,035)
Accumulated other comprehensive loss  (5,539)  (5,539)
Total stockholders' equity 28,326,959 27,706,735
Total liabilities and stockholders' equity  $ 44,806,626  $ 46,523,986
 
 
Nevada Gold & Casinos, Inc. 
Consolidated Statements of Operations
         
  Three Months Ended Twelve Months Ended
  April 30, April 30, April 30, April 30,
  2014 2013 2014 2013
Revenues:        
Casino  $ 14,093,561  $ 14,651,475  $ 55,332,569  $ 58,393,105
Food and beverage 2,577,761 2,510,539  10,053,883  10,103,913
Other 447,161 443,607  1,742,710  1,808,538
Gross revenues 17,118,483 17,605,621  67,129,162  70,305,556
Less promotional allowances  (1,085,552)  (1,086,239)  (4,321,768)  (4,381,638)
Net revenues 16,032,931 16,519,382  62,807,394  65,923,918
Expenses:         
Casino 7,810,946 8,155,865  32,081,242  33,016,277
Food and beverage 1,292,352 1,270,391  5,114,077  4,838,447
Marketing and administrative 3,991,514 4,095,164  16,369,505  16,652,746
Facility 490,906 564,070  1,951,314  2,270,774
Corporate and legal expense 544,168 795,361  2,384,596  4,051,972
Depreciation and amortization  571,245  498,764  2,263,499  2,126,888
Loss on settlements - sale of assets  11,676  986  27,605  6,081
Write-off of project development costs  --   --   56,959  257,733
Other  59,775  82,525  263,052  310,411
Total operating expenses  14,772,582  15,463,126  60,511,849  63,531,329
Operating income from continuing operations  1,260,349  1,056,256  2,295,545  2,392,589
Non-operating income (expenses):        
Interest income  31,677  34,398  133,404  120,349
Interest expense  (138,929)  (345,512)  (1,097,005)  (1,494,989)
Interest rate swap expense  (26,912)  --   (26,912)  -- 
Decrease in swap fair value  (58,352)  --   (58,352)  -- 
Amortization of loan issue costs  (22,505)  (81,643)  (232,391)  (329,387)
Loss on extinguishment of debt  --   --   (283,550)  -- 
Income before income tax  1,045,328  663,499  730,739  688,562
Income tax expense  (399,239)  (211,065)  (282,758)  (560,052)
Net income from continuing operations  646,089  452,434  447,981  128,510
Net loss from operations held for sale, net of taxes  --   --   --   (91,603)
Net income  $ 646,089  $ 452,434  $ 447,981  $ 36,907
Per share information:        
Net income per common share - basic and diluted for continuing operations  $ 0.04  $ 0.03  $ 0.03  $ 0.01
Net loss per common share - basic and diluted for discontinued operations  $ --   $ --   $ --   $ (0.01)
Basic weighted average number of shares outstanding 16,165,930 16,065,719 16,127,654 15,997,546
Diluted weighted average number of shares outstanding 16,366,283 16,110,304 16,294,487 16,020,789
Nevada Gold & Casinos, Inc.
Michael P. Shaunnessy / James Kohn
(702) 685-1000