LAS VEGAS, Sept. 13, 2013 (GLOBE NEWSWIRE) -- Nevada Gold & Casinos, Inc. (NYSE MKT: UWN) today announced financial results for the first quarter ended July 31, 2013 and provided a business update.
For the first quarter of fiscal 2014, the company reported net revenues of $15.7 million compared to $16.8 million in the first quarter of fiscal 2013. Operating expenses were $15.7 million compared to $16.1 million in the prior-year period. Operating income from continuing operations was $0.1 million compared $0.7 million. Net loss from continuing operations was $216,000, or $0.01 per share, compared to a net income of $168,000, or $0.01 per share in the prior-year period.
Michael Shaunnessy, Chief Executive Officer of Nevada Gold commented, "Although we remain quite positive regarding our long term business trends, our revenue decline as compared to the same period in the previous year was a result of a much nicer weather pattern in the Seattle area which caused a decline in the amount of visitors to our casinos in that market. Although revenues declined by 11% in our eight Seattle properties during the quarter, our other two casinos in the Eastern Washington tri-cities area experienced a 6% increase in revenues which we believe is a better indication of our long term business trends."
Mr. Shaunnessy continued, "We continue to focus on our cost structure and we are making significant progress in refinancing our debt to reduce our interest expense and increase our financial flexibility. Our long term focus is to generate consistent results through effective operations and on exploring new revenue opportunities that complement our gaming properties and diversify our revenue stream. We are actively searching for both new properties and management contracts that fit Nevada Gold & Casinos' investment parameters while enhancing shareholder value."
Basic and diluted weighted average common shares outstanding in the first quarter of fiscal 2014 were 16.1 million compared to 15.9 million basic and 16.4 million diluted in the first quarter of fiscal 2013.
Conference Call and Webcast
The Company will host a conference call to discuss first quarter 2014 financial results today, September 13, 2013, at 4:30 pm ET. The call can be accessed live by dialing (888) 427-9376. International callers can access the call by dialing (719) 325-2432. A simultaneous webcast of the call will be available by visiting http://www.nevadagold.com/
A telephone replay of the conference call will be available after 7:30 pm ET and can be accessed by dialing (877) 870-5176. International callers can access the replay by dialing (858) 384-5517; the pin number is 9965319. The replay will be available through September 20, 2013. The archived webcast will also be available on the company's website at http://ir.nevadagold.com/events.cfm.
(1) Non-GAAP Information
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 stock option grants, exclusion of net income or loss from operations held for sale, and net losses/gains from asset dispositions. Adjusted EBITDA excludes the impact of slot and table games hold percentages compared to the prior period. 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 that also publicize this information. Adjusted EBITDA is not a measurement of financial performance under GAAP and should not be considered as an alternative to net income as an indicator of our operating performance or any other measure of performance derived in accordance with GAAP.
The following table reconciles Adjusted EBITDA to net income (loss) for the three months ended July 31, 2013 and 2012:
| For the three months ended | ||
| July 31, 2013 | July 31, 2012 | |
| Net income (loss) | $ (215,827) | $ 168,125 |
| Add: | ||
| Income tax expense (benefit) | (158,361) | 88,689 |
| Net interest expense | 397,069 | 462,144 |
| Loss on sale of assets | 3,971 | 1,245 |
| Depreciation and amortization | 561,937 | 538,981 |
| Deferred rent | 4,561 | 19,034 |
| Stock option and ESPP grants | 15,450 | 4,077 |
| Loss on operations held for sale | -- | 321 |
| Adjusted EBITDA | $ 608,800 | $ 1,282,616 |
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 & Casinos
Nevada Gold & Casinos, Inc. (NYSE MKT:UWN) of Las Vegas, Nevada is a developer, owner and operator of 10 gaming operations in Washington (wagoldcasinos.com) and a slot route operation in Deadwood, South Dakota (dakotaplayersclub.com). The Company also has a social gaming application, Gold Star Slots, available on Facebook or from the Apple App Store, and a gaming license in Nevada. For more information, visit www.nevadagold.com.
| Nevada Gold & Casinos, Inc. | ||
| Consolidated Balance Sheets | ||
| July 31, | April 30, | |
| 2013 | 2013 | |
| (unaudited) | ||
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 7,198,167 | $ 6,723,919 |
| Restricted cash | 1,353,907 | 1,306,487 |
| Accounts receivable, net | 757,431 | 445,481 |
| Prepaid expenses | 1,270,838 | 854,092 |
| Notes receivable, current portion | 231,417 | 216,596 |
| Other current assets | 329,854 | 373,923 |
| Total current assets | 11,141,614 | 9,920,498 |
| Investments in development projects | 56,959 | 56,959 |
| Real estate held for sale | 1,100,000 | 1,100,000 |
| Notes receivable, net of current portion | 2,004,008 | 2,082,853 |
| Goodwill | 16,103,584 | 16,103,583 |
| Intangible assets, net of accumulated amortization of $4,714,831 and $4,413,439 at July 31, 2013 and April 30, 2013, respectively | 6,269,489 | 6,570,882 |
| Property and equipment, net of accumulated depreciation of $2,860,429 and $2,599,940 at July 31, 2013 and April 30, 2013, respectively | 4,876,712 | 5,028,122 |
| Deferred tax asset, net | 4,896,735 | 4,738,373 |
| Other assets | 852,398 | 922,716 |
| Total assets | $ 47,301,499 | $ 46,523,986 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Accounts payable and accrued liabilities | $ 2,262,812 | $ 2,024,465 |
| Accrued interest payable | 113,340 | $ 34,393 |
| Other accrued liabilities | 2,132,393 | 2,127,140 |
| Long-term debt, current portion | 2,320,000 | 1,280,000 |
| Total current liabilities | 6,828,545 | 5,465,998 |
| Other long-term liabilities | 430,123 | 421,253 |
| Long-term debt, net of current portion | 12,520,000 | 12,930,000 |
| Total liabilities | 19,778,668 | 18,817,251 |
| Stockholders' equity: | ||
| Common stock, $0.12 par value per share; 50,000,000 shares authorized; 16,883,390 and 16,864,122 shares issued and 16,100,553 and 16,081,285 shares outstanding at July 31, 2013, and April 30, 2013, respectively | 2,026,018 | 2,023,705 |
| Additional paid-in capital | 24,449,467 | 24,419,858 |
| Retained earnings | 7,984,920 | 8,200,746 |
| Treasury stock, 782,837 shares at July 31, 2013 and April 30, 2013, respectively, at cost | (6,932,035) | (6,932,035) |
| Accumulated other comprehensive loss | (5,539) | (5,539) |
| Total stockholders' equity | 27,522,831 | 27,706,735 |
| Total liabilities and stockholders' equity | $ 47,301,499 | $ 46,523,986 |
| Nevada Gold & Casinos, Inc. | ||
| Consolidated Statements of Operations | ||
| (unaudited) | ||
| Three Months Ended | ||
| July 31, | July 31, | |
| 2013 | 2012 | |
| Revenues: | ||
| Casino | $ 13,790,536 | $ 14,761,259 |
| Food and beverage | 2,358,309 | 2,557,601 |
| Other | 589,988 | 668,699 |
| Gross revenues | 16,738,833 | 17,987,559 |
| Less promotional allowances | (1,048,044) | (1,176,856) |
| Net revenues | 15,690,789 | 16,810,703 |
| Expenses: | ||
| Casino | 8,373,184 | 8,362,014 |
| Food and beverage | 1,216,650 | 1,185,087 |
| Other | 106,304 | 143,578 |
| Marketing and administrative | 4,309,941 | 4,404,262 |
| Facility | 478,760 | 543,621 |
| Corporate and legal expense | 617,161 | 912,636 |
| Depreciation and amortization | 561,937 | 538,981 |
| Total operating expenses | 15,663,937 | 16,090,179 |
| Operating income | 26,852 | 720,524 |
| Non-operating income (expenses): | ||
| Loss on sale of assets | (3,971) | (1,245) |
| Interest income | 34,395 | 900 |
| Interest expense and amortization of loan issue costs | (431,464) | (463,044) |
| Income (loss) before income tax benefit (expense) | (374,188) | 257,135 |
| Income tax benefit (expense) | 158,361 | (88,689) |
| Net income (loss) from continuing operations | $ (215,827) | $ 168,446 |
| Net loss from discontinued operations, net of taxes | -- | (321) |
| Net income (loss) | $ (215,827) | $ 168,125 |
| Per share information: | ||
| Net income (loss) per common share - basic and diluted for continuing operations | $ (0.01) | $ 0.01 |
| Net loss per common share - basic and diluted for discontinued operations | $ - | $ - |
| Basic weighted average number of shares outstanding | 16,087,568 | 15,935,655 |
| Diluted weighted average number of shares outstanding | 16,087,568 | 16,355,655 |