HOUSTON, March 16, 2012 (GLOBE NEWSWIRE) -- Nevada Gold & Casinos, Inc. (NYSE Amex:UWN) today announced financial results for the third quarter ended January 31, 2012.
Third Quarter 2012 Financial Highlights included:
- Net revenues increased 10.6% to $13.5 million, compared to $12.2 million in the third quarter ended January 31, 2011;
- Operating income from continuing operations of $294,000 compared to operating income of $284,000 in the third quarter of fiscal 2011;
- Net loss from continuing operations of $(0.1) million compared to net income of $0.3 million a year ago;
- Net loss from continuing operations per basic and diluted common share of $0.00 compared to a net income per basic and diluted common share of $0.02 in the year ago period;
- Adjusted EBITDA(1) from continuing operations of $0.8 million compared to $0.7 million in the third quarter of fiscal 2011.
"So far, fiscal year 2012 has been a very productive year for Nevada Gold and the third quarter was no exception. During the quarter we completed the acquisition of A.G. Trucano, Son & Grandsons, Inc., a route operator comprised of 900 slot machines based in Deadwood, South Dakota. We also received approval for our state gaming licenses from the Nevada Gaming Commission and from the South Dakota Commission on Gaming," said Robert Sturges, CEO of Nevada Gold. "We are pleased with these developments and especially look forward to integrating A.G. Trucano into our business. Our operating performance for the quarter improved over last year despite lower than expected hold percentages. It is noteworthy that our business volume and head counts showed solid growth this quarter. We are encouraged by recent trends so far this quarter as hold percentages have begun to normalize and we believe we have positioned the Company for long term success."
Financial Results
For the third quarter of fiscal 2012, net revenues increased to $13.5 million compared to $12.2 million in the third quarter of fiscal 2011. Operating expenses increased to $13.2 million from $11.9 million in the third quarter of 2011. The increase is primarily due to the Red Dragon acquisition in July of 2011.
Net loss from continuing operations was $(0.1) million compared to $0.3 million income in the third quarter of fiscal 2011. Net loss from continuing operations per diluted common share was $0.00 compared to net income per diluted common share of $0.02 in the prior year period. The decrease is primarily due to the $0.4 million tax benefit recorded in the third quarter of 2011 compared to only $58,000 in the third quarter of 2012.
Basic and diluted weighted average common shares outstanding in the fiscal third quarter of 2012 was 15.6 million versus 12.8 million in the fiscal third quarter of 2011.
Outlook
The Company expects its normalized EBITDA, after full integration of the recent A.G. Trucano acquisition and the divestiture of the Colorado Grande Casino to be approximately $5.0 million annually.
Earnings Conference Call and Webcast
The Company will host a conference call to discuss third quarter 2012 financial results today at 8:45 AM ET. The conference call can be accessed live over the phone by dialing (888) 262-8943, or, for international callers, 913-312-4372. 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 5517047. The replay will be available until Friday, March 23, 2012. 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, 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 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 loss: | ||
| For the three months ended | ||
|
January 31, 2012 |
January 31, 2011 |
|
| Net loss | $ (288,047) | $ 137,531 |
| Add: | ||
| Income tax benefit | (57,991) | (367,739) |
| Net interest expense | 425,226 | 354,212 |
| Depreciation and amortization | 472,963 | 422,556 |
| Stock option grants | 24,964 | 12,101 |
| Loss on operations held for sale | 214,725 | 159,621 |
| Acquisition expenses | 25,219 | 22,520 |
| Adjusted EBITDA | $ 817,059 | $ 740,802 |
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 12 gaming operations in Colorado and Washington and a slot route operation in Deadwood, South Dakota. 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, the Golden Nugget Casino located in Tukwila, Washington and the AG Trucano slot route operation in Deadwood, SD. 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. On November 23, 2011, the Company signed an agreement to sell the Colorado Grande Casino. Closing of the transaction is subject to regulatory approval and is expected to take place before the end of the Company's 2012 fiscal year or shortly thereafter. 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 | ||
|
January 31, 2012 |
April 30, 2011 |
|
| (unaudited) | ||
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 5,238,410 | $ 5,656,110 |
| Restricted cash | 1,469,093 | 944,359 |
| Accounts receivable | 516,927 | 571,032 |
| Prepaid expenses | 1,345,950 | 785,975 |
| Income tax receivable | 17,428 | 176,750 |
| Other current assets | 327,923 | 290,433 |
| Assets of operations held for sale | 32,035 | 36,187 |
| Total current assets | 8,947,766 | 8,460,846 |
| Investments in development projects | 651,130 | 189,692 |
| Real estate held for sale | 1,100,000 | 3,373,966 |
| Notes receivable - development projects, net of allowances | 1,700,000 | 1,700,000 |
| Goodwill | 15,862,386 | 13,474,980 |
| Identifiable intangible assets, net of accumulated amortization of $2,815,643 and $1,852,553 at January 31, 2012 and April 30, 2011, respectively | 7,712,313 | 7,361,298 |
| Property and equipment, net of accumulated depreciation of $1,558,821 and $1,189,555 at January 31, 2012 and April 30, 2011, respectively | 5,599,016 | 3,909,157 |
| Deferred tax asset, net | 3,481,845 | 1,460,884 |
| BVD/BVO receivable | 4,000,000 | 4,000,000 |
| Other assets | 1,419,060 | 574,339 |
| Assets of operations held for sale | 4,261,756 | 4,514,715 |
| Total assets | $ 54,735,272 | $ 49,019,877 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Accounts payable and accrued liabilities | $ 2,837,605 | $ 1,442,661 |
| Accrued interest payable | 66,382 | 118,024 |
| Other accrued liabilities | 1,931,306 | 1,518,315 |
| Other current liabilities | -- | 100,000 |
| Long-term debt, current portion | 1,400,324 | -- |
| Liabilities of operations held for sale | 415,982 | 405,249 |
| Total current liabilities | 6,651,599 | 3,584,249 |
| Long-term debt, net of current portion | 15,465,000 | 15,070,000 |
| Total liabilities | 22,116,599 | 18,654,249 |
| Stockholders' equity: | ||
| Common stock, $0.12 par value per share; 50,000,000 shares authorized; 16,676,711 and 13,968,210 shares issued and 15,868,874 and 12,797,010 shares outstanding at January 31, 2012, and April 30, 2011, respectively | 2,001,205 | 1,676,185 |
| Additional paid-in capital | 24,091,732 | 20,086,236 |
| Retained earnings | 13,684,647 | 18,977,946 |
| Treasury stock, 807,837 and 1,171,200 shares at January 31, 2012 and April 30, 2011, respectively, at cost | (7,153,372) | (10,369,200) |
| Accumulated other comprehensive loss | (5,539) | (5,539) |
| Total stockholders' equity | 32,618,673 | 30,365,628 |
| Total liabilities and stockholders' equity | $ 54,735,272 | $ 49,019,877 |
| Nevada Gold & Casinos, Inc. | ||||
| Consolidated Statements of Operations | ||||
| (unaudited) | ||||
| Three Months Ended | Nine Months Ended | |||
|
January 31, 2012 |
January 31, 2011 |
January 31, 2012 |
January 31, 2011 |
|
| Revenues: | ||||
| Casino | $ 11,357,849 | $ 10,272,303 | $ 33,175,572 | $ 24,911,147 |
| Food and beverage | 2,981,314 | 2,530,463 | 8,348,730 | 5,989,892 |
| Other | 623,507 | 515,863 | 1,693,107 | 1,262,280 |
| Gross revenues | 14,962,670 | 13,318,629 | 43,217,409 | 32,163,319 |
| Less promotional allowances | (1,485,186) | (1,134,414) | (4,156,869) | (2,675,871) |
| Net revenues | 13,477,484 | 12,184,215 | 39,060,540 | 29,487,448 |
| Expenses: | ||||
| Casino | 5,680,916 | 4,993,606 | 16,683,807 | 12,401,530 |
| Food and beverage | 1,020,909 | 978,616 | 3,022,294 | 2,377,394 |
| Marketing and administrative | 4,121,286 | 3,954,693 | 12,057,631 | 8,826,340 |
| Facility | 518,156 | 393,676 | 1,529,876 | 970,462 |
| Corporate expense | 866,594 | 731,908 | 2,840,780 | 2,847,975 |
| Legal expense | 36,871 | 25,000 | 64,461 | 263,349 |
| Depreciation and amortization | 472,963 | 422,556 | 1,376,167 | 1,154,803 |
| Acquisition costs | 25,219 | 22,520 | 90,885 | 805,149 |
| Impairment of assets | -- | -- | 2,273,966 | -- |
| Excise taxes | 296,844 | 292,628 | 884,839 | 649,717 |
| Other | 143,813 | 85,387 | 380,927 | 206,130 |
| Total operating expenses | 13,183,571 | 11,900,590 | 41,205,633 | 30,502,849 |
| Operating income (loss) | 293,913 | 283,625 | (2,145,093) | (1,015,401) |
| Non-operating income (expenses): | ||||
| Gain (loss) on sale of assets | -- | -- | (22,654) | 392,243 |
| Interest income | 42,849 | 42,865 | 128,551 | 131,980 |
| Interest expense | (393,177) | (385,827) | (1,152,314) | (1,006,707) |
| Amortization of loan issue costs | (74,898) | (11,250) | (119,484) | (33,750) |
| Loss on extinguishment of debt | -- | -- | (154,270) | -- |
| Loss before income tax benefit | (131,313) | (70,587) | (3,465,264) | (1,531,635) |
| Income tax benefit | 57,991 | 367,739 | 1,381,510 | 857,039 |
| Net income (loss) from continuing operations | $ (73,322) | $ 297,152 | $ (2,083,754) | $ (674,596) |
| Net loss from operations held for sale, net of taxes | (214,725) | (159,621) | (516,758) | (93,552) |
| Net income (loss) | $ (288,047) | $ 137,531 | $ (2,600,512) | $ (768,148) |
| Per share information: | ||||
| Net income (loss) per common share - basic and diluted for continuing operations | $ (0.00) | $ 0.02 | $ (0.15) | $ (0.05) |
| Net loss per common share - basic and diluted for operations held for sale | $ (0.01) | $ (0.01) | $ (0.04) | $ (0.01) |
| Basic weighted average number of shares outstanding | 15,631,040 | 12,764,130 | 13,888,835 | 12,764,130 |
| Diluted weighted average number of shares outstanding | 15,631,040 | 12,789,130 | 13,888,835 | 12,764,130 |