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
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Nevada Gold & Casinos, Inc. Balance Sheet |
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July 31, 2010 |
April 30, 2010 |
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| (unaudited) | ||||
| ASSETS | ||||
| 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 | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
| 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 | ||
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Nevada Gold & Casinos, Inc. Consolidated Statements of Operations (unaudited) |
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| Three Months Ended | ||||
| July 31, | July 31, | |||
| 2010 | 2009 | |||
| Revenues: | ||||
| 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 | ||
| Expenses: | ||||
| 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 | ||