Nevada Gold Announces Second Quarter 2013 Financial Results

Nevada Gold Announces Second Quarter 2013 Financial Results

           Michael P. Shaunnessy Joins Company as President and CEO
                      Adjusted EBITDA Increases Fourfold

HOUSTON, Dec. 12, 2012 (GLOBE NEWSWIRE) -- Nevada Gold & Casinos, Inc. (NYSE
MKT:UWN) today announced financial results for the second quarter of fiscal
2013, ended October 31, 2012.

Second Quarter 2013 Financial Highlights

  *Net revenues increased 28% to $16.4 million.
  *Adjusted EBITDA^(1) from continuing operations increased to $1.3 million
    from $0.3 million.
  *Net loss per share from continuing operations, including non-recurring
    items, was $0.04 compared to $0.15 in the prior-year period.

Michael Shaunnessy, who joined Nevada Gold as President and CEO on December 1,
2012, commented, "With the company's newly streamlined organization, enhanced
operations and a focus on practical growth options, I believe we are at an
important turning point for Nevada Gold. I am excited about working with the
board of directors and employees to optimize the collection of assets the
company has amassed and to take advantage of new growth opportunities
available in today's market."

Ernest East, who served as interim president from September 6, 2012 to
November 30, 2012, stated, "We are pleased with the company's substantial
increase in adjusted EBITDA during the quarter. Our Washington and South
Dakota operations both performed according to plan and we implemented
meaningful cost reductions, in excess of $1 million annually. During the
quarter we also re-assessed our ongoing development efforts and, given the
challenges of securing financing, decided not to pursue the Las Vegas Speedway
Project. This quarter's results include the write-off of the $215,000 invested
to date in that project as well as approximately $42,000 in other development
costs."

William Sherlock, Chairman of the Board of Directors, observed, "We are
delighted that the search process the board began in September moved forward
so quickly, enabling us to retain a first-class executive for Nevada Gold.
Mike's three decades in the gaming and hospitality industry, combined with his
outstanding operational and financial skills, position him ideally to lead
Nevada Gold to its next stage of development."

Mr. Shaunnessy concluded, "Going forward, the Nevada Gold team will explore
opportunities that build on the company's current asset base, offer more
immediate rewards, and take advantage of our recent licensing approval in
Nevada. As I assume the leadership of Nevada Gold, I look forward to providing
further information on our operational and financial goals."

Financial Results

The financial information presented below represents results from continuing
operations. Financial information for the second quarter of fiscal 2013 also
reflects the company's January 27, 2012 acquisition of a slot route operation
in Deadwood, South Dakota. As previously announced, Nevada Gold completed the
sale of the Colorado Grande Casino in Cripple Creek, Colorado in May 2012. As
a result, the Colorado Grande's results have been reclassified as discontinued
operations.

Excluding the non-recurring charges, operating results for the period ended
October 31, 2012 reflect an operating income of $0.7 million compared to an
operating loss of $0.2 million for the prior-year period. For the second
quarter of fiscal 2013, net revenues increased 28% to $16.4 million compared
to $12.8 million in the prior-year period. Operating expenses, excluding
non-recurring charges, increased 20% to $15.7 million compared to $13.1
million in the prior-year period. The revenue and expense increases are
primarily due to the addition of the South Dakota slot route operation. The
non-recurring expenses recorded during the quarter ended October 31, 2012
include a $0.3 million non-cash write-off of project development costs,
primarily related to the Las Vegas Speedway Project, and a $0.7 million charge
for severance related to the former CEO and the elimination of several
corporate positions. The annual cost reductions that have been implemented
will be reflected in our operating results beginning in the third quarter of
fiscal 2013. During the quarter ended October 31, 2011, Nevada Gold recorded a
non-cash impairment adjustment of $2.3 million for vacant land the company
owns in Colorado. Operating loss for the current quarter totaled $0.3 million
compared to an operating loss of $2.5 million in the prior-year quarter. Net
loss was $0.8 million compared to a net loss of $2.2 million, which includes
the non-recurring charges, and a net loss from discontinued operations of $.1
million in each quarter. On a per share basis, net loss for continuing
operations was $0.04 in the 2013 second quarter compared to $0.15 in the
prior-year period. On a per share basis, net loss for discontinued operations
was $0.01 in both the 2013 and the 2012 quarters.

Diluted weighted average common shares outstanding in the second quarter of
fiscal 2013 were 16.0 million compared to 13.2 million in the prior-year
period.

Conference Call and Webcast

The Company will host a conference call to discuss second quarter 2013
financial results today at 11:00 AM ET. The conference call can be accessed
live over the phone by dialing 855-235-2089 or, for international callers,
778-327-3988. A replay will be available one hour after the call and can be
accessed by dialing 877-870-5176, or for international callers, 858-384-5517;
the conference ID is #91212. The replay will be available through December 19,
2012. The call will be webcast live from the Company's website at
www.NevadaGold.com under the Investor Relations section.

(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 foreign currency transaction
gains and losses, non-cash stock option grants, exclusion of net income or
loss from operations held for sale, severance costs, 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 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.

Adjusted EBITDA reconciliation for the three months ended October 31, 2012 and
October 31, 2011:

Adjusted EBITDA reconciliation to net loss:                  
                                           For the three months ended
                                           October 31, 2012 October 31, 2011
Net loss                                    $ (819,008)      $ (2,120,606)
Add:                                                         
Income tax benefit                          (108,375)         (1,040,324)
Net interest expense                        478,146           369,971
Loss on extinguishment of debt              --                154,270
Impairments/Write offs                      257,733           2,273,966
Loss on sale of assets                      1,718             22,340
Depreciation and amortization               538,534           464,541
Deferred rent                               19,034            --
Stock option and ESPP grants                65,682            20,780
Severance expense                           725,877           --
Loss on operations held for sale            138,472           97,924
Acquisition expenses                        --                13,721
AdjustedEBITDA                             $ 1,297,813      $ 256,583
                                                            

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 MKT:UWN) of Houston, Texas is a developer,
owner and operator of 10 gaming operations in Washington ("Washington Gold")
and a 950-machine slot route operation in Deadwood, South Dakota ("South
Dakota Gold"). The Company also has a gaming license in Nevada and an interest
in Buena Vista Development Company, LLC, which is working on a Native American
casino project to be developed in Ione, California. For more information,
visit www.nevadagold.com.

The Nevada Gold logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=13803

Contacts:
Nevada Gold & Casinos, Inc.
Michael P. Shaunnessy
(713) 621-2245

LHA
Harriet Fried / Jody Burfening
(212) 838-3777
hfried@lhai.com

Nevada Gold & Casinos, Inc.
Consolidated Balance Sheets
                                                             
                                                             
                                            October 31, 2012 April 30, 2012
                                            (unaudited)       
                                                             
ASSETS
Current assets:                                               
Cash and cash equivalents                    $ 5,868,748      $ 5,200,161
Restricted cash                              2,049,219        1,787,068
Accounts receivable                          435,859          653,433
Prepaid expenses                             1,211,394        909,834
Notes receivable, current portion            151,583          20,600
Other current assets                         363,031          354,817
Assets of discontinued operations            --              33,601
Total current assets                         10,079,834       8,959,514
                                                             
Investments in development projects          15,750           255,355
Real estate held for sale                    1,100,000        1,100,000
Notes receivable, net of current portion     2,128,417        --
Goodwill                                     16,103,584       16,090,799
Identifiable intangible assets, net of
accumulated amortization of $3,810,654 and   7,173,667        7,782,453
$3,201,868 at October 31, 2012 and April 30,
2012, respectively
Property and equipment, net of accumulated                    
depreciation
of $2,218,476 and $1,785,064 at October 31,                   
2012 and
April 30, 2012, respectively                 5,304,191        5,399,103
Deferred tax asset, net                      5,270,922        5,251,236
Other assets                                 1,065,924        1,219,356
Assets of discontinued operations            --              3,115,097
Total assets                                 $ 48,242,289     $ 49,172,913
                                                             
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:                                          
Accounts payable and accrued liabilities     $ 2,419,630       $ 2,176,545
Accrued interest payable                     45,191           61,141
Other accrued liabilities                    2,930,708        2,632,067
Long-term debt, current portion              1,885,324        1,400,324
Liabilities of discontinued operations       --              23,699
Total current liabilities                    7,280,853         6,293,776
Other long termliabilities                  375,916          337,849
Long-term debt, net of current portion       13,690,000        15,155,000
Total liabilities                            21,346,769        21,786,625
                                                             
                                                             
Stockholders' equity:                                         
Common stock, $0.12 par value per share;
50,000,000 shares authorized; 16,802,531 and
16,707,205 shares issued and 16,019,694 and  2,016,304         2,004,865
15,924,368 shares outstanding at October 31,
2012, and April 30, 2012, respectively
Additional paid-in capital                   24,303,834        24,155,158
Retained earnings                            7,512,956         8,163,839
Treasury stock, 782,837 shares at October
31, 2012 and April 30, 2012, respectively,   (6,932,035)      (6,932,035)
at cost
Accumulated other comprehensive loss         (5,539)          (5,539)
Total stockholders' equity                   26,895,520        27,386,288
Total liabilities and stockholders' equity   $ 48,242,289      $ 49,172,913



Nevada Gold & Casinos, Inc.
Consolidated Statements of Operations
(unaudited)
                                                            
                     Three Months Ended          Six Months Ended
                     October 31, October 31,   October 31,  October 31,
                     2012         2011          2012         2011
Revenues:                                                    
Casino                $ 14,290,425 $ 10,896,447   $ 29,051,685 $ 21,817,723
Food and beverage     2,508,167    2,774,636      5,065,767    5,367,416
Other                 658,882      554,114        1,327,581    1,069,601
Gross revenues        17,457,474   14,225,197     35,445,033   28,254,740
Less promotional      (1,073,786) (1,392,611)   (2,250,642)  (2,671,683)
allowances
Net revenues          16,383,688   12,832,586     33,194,391   25,583,057
                                                            
Expenses:                                                  
Casino                8,183,837    5,682,762      16,232,412   10,995,136
Food and beverage     1,178,027    1,031,703      2,363,249    2,009,082
Marketing and         4,012,392    4,018,000      8,397,620    7,936,345
administrative
Facility              570,178      522,142        1,113,799    1,011,721
Corporate expense     1,452,736    891,423        2,326,510    1,974,187
Legal expense         40,575       20,658        79,437       27,591
Depreciation and      538,534     464,541       1,077,515    903,204
amortization
Deferred rent         19,034      --           38,067       --
Acquisition costs     --         13,721        --          65,666
Impairment of assets  --         2,273,966     --          2,273,966
Write-off of project  257,733     --           257,733      --
development cost
Excise taxes          297,918     295,743       610,238      587,994
Other                 141,771     134,352       286,334      237,172
Total operating       16,692,735  15,349,011    32,782,914   28,022,064
expenses
Operating income      (309,047)   (2,516,425)   411,477      (2,439,007)
(loss)
Non-operating income                                         
(expenses):
Loss on sale of       (1,718)     (22,340)      (2,963)      (22,654)
assets
Interest income       --         42,853        900          85,702
Interest expense      (393,064)   (379,488)     (778,565)    (759,137)
Amortization of loan  (85,082)    (33,336)      (162,625)    (44,586)
issue costs
Loss on
extinguishment of     --         (154,270)     --          (154,270)
debt
Loss before income    (788,911)   (3,063,006)   (531,776)    (3,333,952)
tax benefit
Income tax benefit    108,375     1,040,324     19,686       1,324,251
Net loss from         $ (680,536) $ (2,022,682) $ (512,090)  $ (2,009,701)
continuing operations
Net loss from
discontinued          (138,472)   (97,924)      (138,793)    (302,765)
operations, net of
taxes
Net loss              $ (819,008) $ (2,120,606) $ (650,883)  $ (2,312,466)
Per share                                                    
information:
Net loss per common
share - basic and     $ (0.04)    $ (0.15)      $ (0.03)     $ (0.15)
diluted for
continuing operations
                                                            
Net loss per common
share - basic and
diluted for           $ (0.01)    $ (0.01)      $ (0.01)     $ (0.02)
discontinued
operations
                                                            
Basic weighted
average number of     15,964,051   13,179,208     15,949,269    13,004,778
shares outstanding
                                                            
Diluted weighted
average number of     15,964,051   13,179,208     15,949,269    13,004,778
shares outstanding

Nevada Gold Logo
 
Press spacebar to pause and continue. Press esc to stop.