HOUSTON, March 16, 2011 (GLOBE NEWSWIRE) -- Nevada Gold & Casinos, Inc. (NYSE Amex:UWN) today announced financial results for the third quarter ended January 31, 2011.
Third quarter 2011 Financial Highlights Included:
- Net revenues increased 155% to $13.3 million, compared to $5.2 million in the third quarter ended January 31, 2010;
- Net income of $0.1 million compared to a net loss of $0.5 million a year ago;
- Net income per basic and diluted common share of $0.01, compared to a net loss per basic and diluted common share of $0.04 in the year ago period;
- EBITDA(1) of $514,000 compared to $(316,000) in the third quarter of fiscal 2010;
- EBITDA(1) of $514,000 compared to $285,000 in the second quarter of fiscal 2011;
- Adjusted EBITDA(2) of $587,000;
- Operating income of $0.04 million compared to operating loss of $(0.7) million in the third quarter of fiscal 2010.
"We continue to be on track to hit our 2011 calendar year goal of generating approximately $55 to $60 million in pro-forma run-rate revenue subsequent to the addition of the six recently acquired Washington mini-casinos. We also continue to expect that our property level pro-forma EBITDA, adjusted for the normalization of the additional six mini-casinos, will be approximately $7.5 million to $8 million on an annualized basis," said Robert Sturges, CEO of Nevada Gold. "We are in the process of applying for a gaming license in the state of Nevada and continue to be actively reviewing potential acquisition opportunities."
Financial Results
For the third quarter of fiscal 2011, net revenues increased to $13.3 million compared to $5.2 million in the third quarter of fiscal 2010. Operating expenses increased to $13.2 million from $5.9 million in the third quarter of 2010. The increase is primarily due to increased casino operating expenses, marketing and administrative expenses, and facility expense related to the Washington acquisitions.
Net income for the third quarter of fiscal 2011 was $0.1 million compared to a net loss of $0.5 million in the third quarter of fiscal 2010. Net income per diluted common share was $0.01, compared to a net loss per diluted common share of $0.04 in the prior year period.
Basic and diluted weighted average common shares outstanding in the third quarter of 2011 were 12.8 million versus 12.9 million in the fiscal third quarter of 2010.
Earnings Conference Call and Webcast
The Company will host a conference call to discuss third quarter 2011 financial results today at 5:00 PM ET. The conference call can be accessed live over the phone by dialing (800) 967-7185, or, for international callers, (719) 325-2199. A replay will be available one hour after the call and can be accessed by dialing (877) 870-5176, or (858) 384-5517 for international callers; the conference ID is 5852785. The replay will be available until Wednesday, March 23, 2011. 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 income to EBITDA is as follows:
| Operating income as reported | $43,091 |
| Add back depreciation and amortization | 470,593 |
| EBITDA | $513,684 |
(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 | $513,684 |
| Expenses related to July 2010 acquisition | 47,520 |
| Stock options amortization | 26,181 |
| ADJUSTED EBITDA | $587,385 |
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 10 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 | ||
|
January 31, 2011 |
April 30, 2010 |
|
| (unaudited) | ||
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 4,222,240 | $ 3,155,736 |
| Restricted cash | 1,254,917 | 5,266,938 |
| Accounts receivable | 871,810 | 66,822 |
| Prepaid expenses | 946,280 | 475,262 |
| Income tax receivable | 176,750 | 1,750,374 |
| Other current assets | 282,348 | 155,796 |
| Total current assets | 7,754,345 | 10,870,928 |
| Investments in development projects | 208,543 | 1,418,789 |
| Investment in land held for sale | 3,373,966 | 3,437,932 |
| Note receivable - development projects, net of current portion and allowances | 1,700,000 | 1,700,000 |
| Goodwill | 16,477,184 | 10,243,362 |
| Identifiable intangible assets, net of accumulated amortization of $1,541,511 and $729,000 at January 31, 2011 and April 30, 2010 | 7,672,340 | 5,101,800 |
| Property and equipment, net of accumulated depreciation of $3,464,418 and $2,978,679 at January 31, 2011 and April 30, 2010, respectively | 5,111,234 | 3,473,051 |
| Deferred tax asset | 2,393,453 | 1,848,419 |
| BVO receivable | 4,000,000 | 4,000,000 |
| Other assets, net of allowances | 541,736 | 376,938 |
| Total assets | $ 49,232,801 | $ 42,471,219 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Accounts payable and accrued liabilities | $ 2,153,097 | $ 1,060,017 |
| Accrued interest payable | 121,123 | 70,000 |
| Other accrued liabilities | 1,774,206 | 687,819 |
| Long-term debt, current portion | 67,530 | -- |
| Total current liabilities | 4,115,956 | 1,817,836 |
| Long-term debt, net of current portion | 15,082,152 | 10,000,000 |
| Other liabilities | 19,671 | 30,944 |
| Total liabilities | 19,217,779 | 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 January 31, 2011 and April 30, 2010, respectively | 1,672,240 | 1,672,240 |
| Additional paid-in capital | 20,020,697 | 19,859,966 |
| Retained earnings | 18,696,824 | 19,464,972 |
| Treasury stock, 1,171,200 shares at January 31, 2011 and April 30, 2010, respectively, at cost | (10,369,200) | (10,369,200) |
| Accumulated other comprehensive loss | (5,539) | (5,539) |
| Total stockholders' equity | 30,015,022 | 30,622,439 |
| Total liabilities and stockholders' equity | $ 49,232,801 | $ 42,471,219 |
| Nevada Gold & Casinos, Inc. | ||||
| Consolidated Statements of Operations | ||||
| (unaudited) | ||||
| Three Months Ended | Nine Months Ended | |||
| January 31, | January 31, | January 31, | January 31, | |
| 2011 | 2010 | 2011 | 2010 | |
| Revenues: | ||||
| Casino | $ 11,507,643 | $ 4,469,523 | $ 29,275,626 | $ 13,443,121 |
| Food and beverage | 2,795,998 | 1,074,962 | 7,074,052 | 3,423,638 |
| Other | 531,786 | 223,777 | 1,299,808 | 626,648 |
| Management and consulting fees | -- | 120,968 | -- | 620,968 |
| Gross revenues | 14,835,427 | 5,889,230 | 37,649,486 | 18,114,375 |
| Less promotional allowances | (1,573,524) | (683,406) | (4,048,045) | (2,110,972) |
| Net revenues | 13,261,903 | 5,205,824 | 33,601,441 | 16,003,403 |
| Expenses: | ||||
| Casino | 5,799,412 | 2,224,130 | 14,818,844 | 6,176,833 |
| Food and beverage | 1,140,626 | 613,408 | 3,037,018 | 2,337,762 |
| Marketing and administrative | 3,694,711 | 1,413,210 | 8,922,162 | 4,089,432 |
| Facility | 940,904 | 292,427 | 2,425,883 | 784,458 |
| Corporate expense | 779,429 | 865,978 | 2,895,495 | 3,243,043 |
| Legal expense | -- | 202 | 445,038 | 103,205 |
| Depreciation and amortization | 470,593 | 333,527 | 1,319,051 | 996,680 |
| Excise taxes | 307,757 | 79,932 | 691,836 | 232,650 |
| Other | 85,380 | 32,109 | 191,138 | 102,850 |
| Total operating expenses | 13,218,812 | 5,854,923 | 34,746,465 | 18,066,913 |
| Operating income (loss) | 43,091 | (649,099) | (1,145,024) | (2,063,510) |
| Non-operating income (expenses): | ||||
| Gain on sale/settlement of assets | -- | -- | 384,414 | -- |
| Interest income | 42,865 | 44,944 | 131,980 | 150,012 |
| Interest expense | (387,143) | (246,940) | (1,011,001) | (625,411) |
| Amortization of loan issue costs | (11,250) | (25,552) | (33,750) | (85,531) |
| Loss before income tax benefit | (312,437) | (876,647) | (1,673,381) | (2,624,440) |
| Income tax benefit | 449,968 | 330,925 | 905,233 | 933,895 |
| Net income (loss) | $ 137,531 | $ (545,722) | $ (768,148) | $ (1,690,545) |
| Per share information: | ||||
| Net income (loss) per common share - basic | $ 0.01 | $ (0.04) | $ (0.06) | $ (0.13) |
| Net income (loss) per common share - diluted | $ 0.01 | $ (0.04) | $ (0.06) | $ (0.13) |
| Basic weighted average number of common shares outstanding | 12,764,130 | 12,866,847 | 12,764,130 | 12,915,036 |
| Diluted weighted average number of common shares outstanding | 12,789,130 | 12,866,847 | 12,764,130 | 12,915,036 |