HOUSTON, July 13, 2011 (GLOBE NEWSWIRE) -- Nevada Gold & Casinos, Inc. (NYSE Amex:UWN) today announced financial results for the fourth quarter and fiscal year ended April 30, 2011.
Fourth Quarter 2011 Financial Highlights Included:
- Net revenues increased 140% to $14.4 million, compared to $6.0 million in the fourth quarter ended April 30, 2010;
- Operating income of $0.8 million compared to operating loss of $4.6 million in the fourth quarter of fiscal 2010;
- Net income of $0.3 million compared to a net loss of $3.1 million a year ago;
- Net income per basic and diluted common share of $0.02, compared to a net loss per basic and diluted common share of $0.24 in the year ago period;
- EBITDA(1) of $1.4 million compared to $0.1 million in the fourth quarter of fiscal 2010 and $0.5 million in the third quarter of fiscal 2011.
"The fourth quarter of 2011 was an excellent quarter for Nevada Gold. Our net revenue increased 140% and EBITDA increased 163%. We also fully integrated our Washington II properties, converted all properties into a unified player tracking system, and continued to strengthen our staff of general managers," said Robert Sturges, CEO of Nevada Gold.
"Fiscal year 2011 was a very productive year for Nevada Gold. We completed an acquisition of six mini casinos in Washington, have begun the process of applying for a gaming license in the state of Nevada, and we continue to be on track to hit our 2011 calendar year goal of generating approximately $55 to $60 million in run-rate revenue inclusive of the six recently acquired Washington mini-casinos. We also continue to expect Company-wide consolidated pro forma EBITDA to be in the $4.0 million to $4.5 million range," continued Mr. Sturges. "Fiscal year 2012 is off to a great start with the recent announcement of a signed agreement to purchase the Red Dragon mini-casino in Mountlake Terrace, making that our tenth mini-casino in the state of Washington. We also continue to be actively reviewing other potential acquisition opportunities."
Financial Results
For the fourth quarter of fiscal 2011, net revenues increased to $14.4 million compared to $6.0 million in the fourth quarter of fiscal 2010. Operating expenses increased to $13.6 million from $10.7 million in the fourth quarter of 2010. The increase is primarily due to the Washington acquisitions.
Net income for the fourth quarter of fiscal 2011 was $0.3 million compared to a net loss of $3.1 million in the fourth quarter of fiscal 2010. Net income per diluted common share was $0.02, compared to a net loss per diluted common share of $0.24 in the prior year period.
Basic weighted average common shares outstanding in the fourth quarter of 2011 was 12.8 million versus 12.8 million in the fiscal fourth quarter of 2010. Diluted weighted average common shares outstanding in the fourth quarter of 2011 was 13.3 million versus 12.8 million in the fiscal fourth quarter of 2010.
Earnings Conference Call and Webcast
The Company will host a conference call to discuss fourth quarter and fiscal year 2011 financial results tomorrow, July 14, 2011, at 8:30 AM ET. The conference call can be accessed live over the phone by dialing (888) 857-6931, or, for international callers, (719) 457-2621. 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 6092479. The replay will be available until Thursday, July 21, 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, non-cash goodwill and other long-lived asset impairment charges and write-off of project development costs. The reconciliation of Operating income to EBITDA is as follows:
| Operating income as reported | $809,953 |
| Add back depreciation and amortization | 488,901 |
| Write off of project development costs | 54,406 |
| EBITDA | $1,353,260 |
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. In May 2011, the Company signed an agreement to purchase the Red Dragon mini-casino in Mountlake Terrace, 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. | ||
| Consolidated Balance Sheets | ||
| April 30, | April 30, | |
| 2011 | 2010 | |
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 5,656,110 | $ 3,155,736 |
| Restricted cash | 944,359 | 5,266,938 |
| Accounts receivable | 571,032 | 66,822 |
| Prepaid expenses | 785,975 | 475,262 |
| Income tax receivable | 176,750 | 1,750,374 |
| Other current assets | 326,620 | 155,796 |
| Total current assets | 8,460,846 | 10,870,928 |
| Investments in development projects | 189,692 | 1,418,789 |
| Real estate held for sale | 3,373,966 | 3,437,932 |
| Notes receivable - development projects, net of allowances | 1,700,000 | 1,700,000 |
| Goodwill | 16,187,898 | 10,243,362 |
|
Identifiable intangible assets, net of accumulated amortization of $1,852,553 and $729,000 at April 30, 2011 and April 30, 2010, respectively |
7,361,298 | 5,101,800 |
|
Property and equipment, net of accumulated depreciation of $3,642,277 and $2,978,679 at April 30, 2011 and April 30, 2010, respectively |
4,971,195 | 3,473,051 |
| Deferred tax asset | 2,200,643 | 1,848,419 |
| BVO receivable | 4,000,000 | 4,000,000 |
| Other assets, net of allowances | 574,339 | 376,938 |
| Total assets | $ 49,019,877 | $ 42,471,219 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Accounts payable and accrued liabilities | $ 1,603,250 | $ 1,060,017 |
| Accrued interest payable | 118,024 | 70,000 |
| Other accrued liabilities | 1,686,637 | 687,819 |
| Other current liabilites | 100,000 | -- |
| Long-term debt, current portion | 54,148 | -- |
| Total current liabilities | 3,562,059 | 1,817,836 |
| Long-term debt, net of current portion | 15,076,507 | 10,000,000 |
| Other liabilities | 15,683 | 30,944 |
| Total liabilities | 18,654,249 | 11,848,780 |
| Commitments and contingencies | -- | -- |
| Stockholders' equity: | ||
|
Common stock, $0.12 par value per share; 50,000,000 shares authorized; 13,968,210 and 13,935,330 shares issued and 12,797,010 and 12,764,130 shares outstanding at April 30, 2011, and April 30, 2010, respectively |
1,676,185 | 1,672,240 |
| Additional paid-in capital | 20,086,236 | 19,859,966 |
| Retained earnings | 18,977,946 | 19,464,972 |
| Treasury stock, 1,171,200 shares at April 30, 2011 and April 30, 2010, at cost | (10,369,200) | (10,369,200) |
| Accumulated other comprehensive loss | (5,539) | (5,539) |
| Total stockholders' equity | 30,365,628 | 30,622,439 |
| Total liabilities and stockholders' equity | $ 49,019,877 | $ 42,471,219 |
| Consolidated Results of Operations | ||||
|
The following table sets forth our consolidated results of operations for the three months and fiscal years ended April 30, 2011, and April 30, 2010: |
||||
| Three Months Ended (unaudited) | Twelve Months Ended | |||
| April 30, | April 30, | April 30, | April 30, | |
| 2011 | 2010 | 2011 | 2010 | |
| Revenues: | ||||
| Casino | $ 12,654,276 | $ 5,379,778 | $ 41,929,902 | $ 18,822,900 |
| Food and beverage | 2,969,115 | 1,111,108 | 10,043,167 | 4,534,744 |
| Other | 584,283 | 238,616 | 1,884,090 | 865,264 |
| Management and consulting fees | -- | -- | -- | 620,968 |
| Gross revenues | 16,207,674 | 6,729,502 | 53,857,159 | 24,843,876 |
| Less promotional allowances | (1,780,236) | (706,916) | (5,828,280) | (2,817,888) |
| Net revenues | 14,427,438 | 6,022,586 | 48,028,879 | 22,025,988 |
| Expenses: | ||||
| Casino | 5,825,589 | 2,376,438 | 20,643,008 | 8,562,284 |
| Food and beverage | 1,115,078 | 523,061 | 4,153,342 | 2,851,635 |
| Marketing and administrative | 4,180,525 | 1,474,856 | 13,102,688 | 5,564,288 |
| Facility | 607,438 | 286,475 | 3,033,321 | 1,070,933 |
| Corporate expense | 861,829 | 973,432 | 3,757,323 | 4,216,475 |
| Legal expense | 52,451 | 138,263 | 497,489 | 241,468 |
| Depreciation and amortization | 488,901 | 347,643 | 1,807,952 | 1,344,323 |
| Impairment of assets | -- | 4,347,183 | -- | 4,347,183 |
| Write off of project development costs | 54,406 | 50,486 | 54,406 | 50,486 |
| Excise taxes | 332,847 | 93,752 | 1,024,684 | 362,402 |
| Other | 98,421 | 46,968 | 289,736 | 113,993 |
| Total operating expenses | 13,617,485 | 10,658,557 | 48,363,949 | 28,725,470 |
| Operating income (loss) | 809,953 | (4,635,971) | (335,070) | (6,699,482) |
| Non-operating income (expenses): | ||||
| Gain on sale/settlement of assets | -- | 16,511 | 384,414 | 16,511 |
| Interest income | 41,456 | 42,696 | 173,436 | 192,708 |
| Interest expense | (368,534) | (240,623) | (1,379,535) | (866,034) |
| Amortization of loan issue costs | (11,250) | (11,250) | (45,000) | (58,972) |
| Loss on extinguishment of debt | -- | (91,026) | -- | (128,834) |
| Income (loss) before income tax expense (benefit) | 471,625 | (4,919,663) | (1,201,755) | (7,544,103) |
| Income tax expense (benefit) | ||||
| Current | 95 | (637,992) | (362,505) | (1,546,698) |
| Deferred and change in valuation allowance | 190,409 | (1,223,434) | (352,224) | (1,248,623) |
| Total income tax expense (benefit) | 190,504 | (1,861,426) | (714,729) | (2,795,321) |
| Net income (loss) | $ 281,121 | $ (3,058,237) | $ (487,026) | $ (4,748,782) |
| Per share information: | ||||
| Net income (loss) per common share - basic | $ 0.02 | $ (0.24) | $ (0.04) | $ (0.37) |
| Net income (loss) per common share - diluted | $ 0.02 | $ (0.24) | $ (0.04) | $ (0.37) |
| Basic weighted average number of shares | ||||
| outstanding | 12,773,263 | 12,764,130 | 12,766,382 | 12,878,240 |
| Diluted weighted average number of shares | ||||
| outstanding | 13,343,263 | 12,764,130 | 12,766,382 | 12,878,240 |