HOUSTON, Sept. 14, 2011 (GLOBE NEWSWIRE) -- Nevada Gold & Casinos, Inc. (NYSE Amex:UWN) today announced financial results for the first quarter ended July 31, 2011.
First Quarter 2012 Financial Highlights Included:
- Net revenues increased 117% to $14.2 million, compared to $6.5 million in the first quarter ended July 31, 2010;
- Operating income of $0.06 million compared to operating loss of $(0.9) million in the first quarter of fiscal 2011;
- Net loss of $(0.2) million compared to a net loss of $(0.5) million a year ago;
- Net loss 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;
- Adjusted EBITDA(1) of $0.9 million compared to $(0.07) million in the first quarter of fiscal 2011.
"The first quarter of fiscal year 2012 was a great quarter for Nevada Gold. We continue to be on track to hit our 2011 calendar year goals of generating approximately $55 million to $60 million in run-rate revenue and Company-wide consolidated pro forma EBITDA in the range of $4.0 million to $4.5 million," said Robert Sturges, CEO of Nevada Gold. "Fiscal year 2012 is off to a great start with the completion of the Red Dragon mini-casino acquisition and the signing on August 10th of a commitment letter with Wells Fargo Gaming Capital, LLC to refinance our existing debt. Most importantly, our operating results exceeded our expectations in, what is, historically, a seasonally challenged quarter of the year in Washington."
Financial Results
For the first quarter of fiscal 2012, net revenues increased to $14.2 million compared to $6.5 million in the first quarter of fiscal 2011. Operating expenses increased to $14.1 million from $7.5 million in the first quarter of 2011. The increase is primarily due to the Washington acquisitions.
Net loss for the first quarter of fiscal 2012 was $(0.2) million compared to a net loss of $(0.5) million in the first quarter of fiscal 2011. Net loss 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 first quarter of 2012 was 12.9 million versus 12.8 million in the first quarter of 2011.
Subsequent Events
On August 10th, Nevada Gold signed a commitment letter with Wells Fargo Gaming Capital, LLC to refinance the Company's existing debt and pay fees associated with the transaction.
In August, the land encompassing the proposed Las Vegas Speedway project changed ownership. The new manager of the property is Rialto Capital Advisors. Rialto and Nevada Gold are in discussions regarding Nevada Gold's role as manger of a hotel/casino proposed for the site, and technical advisors with a greater equity position. Those negotiations are in progress. No assurances can be given that the negotiations will be successful or that this project will be financed.
Earnings Conference Call and Webcast
The Company will host a conference call to discuss first quarter 2012 financial results tomorrow, September 15, 2011, at 8:30 AM ET. The conference call can be accessed live over the phone by dialing (888) 215-7013, or, for international callers, (913) 312-0823. 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 9643182. The replay will be available until Thursday, September 22, 2011. The call will be webcast live from the Company's website at www.NevadaGold.com under the investor relations section.
(1) 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, and net losses/gains from asset dispositions. 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 US Generally Accepted Accounting Principles ("GAAP") results to compare to the performance of other companies who also publicize this information.
Adjusted EBITDA is not a measurement of financial performance under GAAP and should not be considered as 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 to net income (loss): | ||
| For the period ended | ||
| July 31, 2011 | July 31, 2010 | |
| Net Loss | $ (191,859) | $ (509,072) |
| Add: | ||
| Income tax benefit | (97,734) | (239,524) |
| Net interest expense | 348,914 | 194,113 |
| Loss (gain) on sale of assets | 314 | (384,414) |
| Depreciation and amortization | 479,540 | 313,839 |
| Stock option grants | 289,838 | 116,160 |
| Acquisition expenses | 51,945 | 575,940 |
| Adjusted EBITDA | $ 880,958 | $ 67,042 |
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 11 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, Bothell and Renton, Washington, the Club Hollywood Casino located in Shoreline, Washington, the Royal Casino located in Everett, Washington, the Red Dragon Casino in Mountlake Terrace, 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. 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 | ||
|
July 31, 2011 |
April 30, 2011 |
|
| (unaudited) | ||
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 5,353,620 | $ 5,656,110 |
| Restricted cash | 1,225,732 | 944,359 |
| Accounts receivable | 671,663 | 571,032 |
| Prepaid expenses | 1,023,297 | 785,975 |
| Income tax receivable | 17,428 | 176,750 |
| Other current assets | 352,568 | 326,620 |
| Total current assets | 8,644,308 | 8,460,846 |
| Investments in development projects | 440,305 | 189,692 |
| Real estate held for sale | 3,373,966 | 3,373,966 |
| Notes receivable - development projects, net of allowances | 1,700,000 | 1,700,000 |
| Goodwill | 16,911,417 | 16,187,898 |
| Identifiable intangible assets, net of accumulated amortization of $2,163,596 and $1,852,553 at July 31, 2011 and April 30, 2011, respectively | 7,469,725 | 7,361,298 |
| Property and equipment, net of accumulated depreciation of $3,793,905 and $3,642,277 at July 31, 2011 and April 30, 2011, respectively | 5,038,524 | 4,971,195 |
| Deferred tax asset | 2,300,859 | 2,200,643 |
| BVO receivable | 4,000,000 | 4,000,000 |
| Other assets | 603,538 | 574,339 |
| Total assets | $ 50,482,642 | $ 49,019,877 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Accounts payable and accrued liabilities | $ 2,205,501 | $ 1,603,250 |
| Accrued interest payable | 118,492 | 118,024 |
| Other accrued liabilities | 1,648,763 | 1,686,637 |
| Other current liabilites | 75,000 | 100,000 |
| Long-term debt, current portion | 9,212,867 | 54,148 |
| Total current liabilities | 13,260,623 | 3,562,059 |
| Long-term debt, net of current portion | 6,213,333 | 15,076,507 |
| Other liabilities | 10,056 | 15,683 |
| Total liabilities | 19,484,012 | 18,654,249 |
| Stockholders' equity: | ||
| Common stock, $0.12 par value per share; 50,000,000 shares authorized; 13,994,606 and 13,968,210 shares issued and 13,173,546 and 12,797,010 shares outstanding at July 31, 2011, and April 30, 2011, respectively | 1,679,353 | 1,676,185 |
| Additional paid-in capital | 20,407,929 | 20,086,236 |
| Retained earnings | 16,187,348 | 18,977,946 |
| Treasury stock, 821,060 and 1,171,200 shares at July 31, 2011 and April 30, 2011, respectively, at cost | (7,270,461) | (10,369,200) |
| Accumulated other comprehensive loss | (5,539) | (5,539) |
| Total stockholders' equity | 30,998,630 | 30,365,628 |
| Total liabilities and stockholders' equity | $ 50,482,642 | $ 49,019,877 |
| Nevada Gold & Casinos, Inc. | ||
| Consolidated Statements of Operations | ||
| (unaudited) | ||
| Three Months Ended | ||
|
July 31, 2011 |
July 31, 2010 |
|
| Revenues: | ||
| Casino | $ 12,397,549 | $ 5,759,854 |
| Food and beverage | 2,971,594 | 1,341,621 |
| Other | 530,239 | 225,509 |
| Gross revenues | 15,899,382 | 7,326,984 |
| Less promotional allowances | (1,740,635) | (800,484) |
| Net revenues | 14,158,747 | 6,526,500 |
| Expenses: | ||
| Casino | 5,825,183 | 2,635,552 |
| Food and beverage | 1,133,905 | 674,769 |
| Marketing and administrative | 4,529,561 | 1,772,255 |
| Facility | 577,800 | 347,674 |
| Corporate expense | 1,089,697 | 989,395 |
| Depreciation and amortization | 479,540 | 313,839 |
| Acquisition costs | 51,945 | 575,940 |
| Excise taxes | 308,638 | 118,844 |
| Other | 102,843 | 37,129 |
| Total operating expenses | 14,099,112 | 7,465,397 |
| Operating income (loss) | 59,635 | (938,897) |
| Non-operating income (expenses): | ||
| Gain (loss) on sale/settlement of assets | (314) | 384,414 |
| Interest income | 42,850 | 44,925 |
| Interest expense | (380,514) | (227,788) |
| Amortization of loan issue costs | (11,250) | (11,250) |
| Loss before income tax benefit | (289,593) | (748,596) |
| Income tax (expense) benefit | ||
| Current | (81) | -- |
| Deferred | 97,815 | 239,524 |
| Total income tax benefit | 97,734 | 239,524 |
| Net loss | $ (191,859) | $ (509,072) |
| Per share information: | ||
| Net loss per common share - basic | $ (0.01) | $ (0.04) |
| Net loss per common share -- diluted | $ (0.01) | $ (0.04) |
| Basic weighted average number of common shares outstanding | 12,856,030 | 12,764,130 |
| Diluted weighted average number of common shares outstanding | 12,856,030 | 12,764,130 |