Nevada Gold & Casinos Reports Second Quarter Results

Nevada Gold & Casinos Reports Second Quarter Results

LAS VEGAS, Dec. 23, 2013 (GLOBE NEWSWIRE) -- Nevada Gold & Casinos, Inc. (NYSE
MKT:UWN) today announced financial results for the second quarter ended
October 31, 2013.

For the second quarter of fiscal 2014, the company reported net revenues of
$16.3 million compared to $16.4 million in the second quarter of fiscal 2013.
Net revenues from Washington increased 3% to $13.4 million, while South Dakota
net revenues declined 12.8% to $2.9 million. Operating expenses were $15.6
million compared to $16.7 million in the prior-year period. Operating income
from continuing operations was $0.7 million compared to an operating loss of
$0.3 million. Net income from continuing operations was $0.2 million, or $0.01
per diluted share, compared to a net loss of $0.7 million in the prior-year
period.

During the second quarter, our Washington casino operations produced EBITDA of
$1.6 million compared to $1.5 million in the prior year period, a significant
recovery from the difficult first quarter. Our South Dakota route operation
contributed $0.4 million in EBITDA for the quarter, down from the $0.5 million
in the prior year, reflecting the market softness and a reduction of units
during the later part of the quarter. Corporate expenses continued to trend
lower, primarily due to the continuing benefit of the cost savings initiated
in September 2012. On a consolidated basis, adjusted EBITDA was $1.4 million
compared to $1.3 million in the prior year period.

"We delivered solid results for the second quarter in a difficult revenue
environment, and are now moving into the two stronger quarters for our
Washington operations," said President and CEO Michael Shaunnessy. "With our
new financing in place, our future earnings will benefit significantly from
the reduced interest expense resulting from the lower rate and reduced debt
level. Continued strong operating performance, coupled with the reduced
expense levels puts us on track to produce improved results for the fiscal
year."

"In this challenging revenue environment we are focusing on the cost side of
our business to maintain margins while continuing to explore new revenue
opportunities. We are actively searching for new properties and management
contracts that fit Nevada Gold & Casinos' investment parameters and enhance
shareholder value."

For the six month period, net revenues were $32.0 million compared to $33.2
million in fiscal year 2013. Operating expenses were $31.3 million compared to
$32.8 million in the prior year, which included $1.0 million of one-time
charges. Operating income from continuing operations was $0.8 million compared
to $0.4 million in fiscal 2013. Net income from continuing operations was $0.0
million compared to a loss of $0.5 million in the prior year.

Conference Call and Webcast

The company will host a conference call at 4:30PM EST today to discuss the
financial results and to provide a corporate update. The company will host
this call for its shareholders and all members of the financial community
including analysts, brokers and interested investors.

The call can be accessed live by dialing (888) 329-8893. International callers
can access the call by dialing (719) 325-2281. 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 3725255. The
replay will be available through December 30, 2013 at 11:59 pm EST. 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 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 reconciliations for the three months and six months ended
October 31, 2013 and October 31, 2012 are shown below:

Adjusted EBITDA reconciliation to net loss:
                                For the three months ended
                               October 31, 2013 October 31, 2012
                                                
Net income (loss)                $220,757       $(819,008)
Add:                                             
Income tax expense (benefit)     114,524          (108,375)
Net interest expense (income)    399,089          478,146
Impairments/Write offs           56,959           257,733
Loss on sale of assets           4,546            1,718
Depreciation and amortization    565,288          538,534
Deferred rent                    9,878            19,034
Stock option and ESPP grants     15,568           65,682
Severance expense                --               725,877
Loss on operations held for sale --               138,472
AdjustedEBITDA                  $1,386,609     $1,297,813
                                                
Adjusted EBITDA reconciliation to net loss:
                                For the six months ended
                               October 31, 2013 October 31, 2012
                                                
Net income (loss)                $4,930         $(650,883)
Add:                                             
Income tax benefit               (43,837)         (19,686)
Net interest expense (income)    796,158          940,290
Impairments/Write offs           56,959           257,733
Loss on sale of assets           8,517            2,963
Depreciation and amortization    1,127,225        1,077,515
Deferred rent                    14,438           38,067
Stock option and ESPP grants     31,018           69,759
Severance expense                --               725,877
Loss on operations held for sale --               138,793
AdjustedEBITDA                  $1,995,408     $2,580,428

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 and in the Apple store, and a gaming
license in Nevada. For more information, visit www.nevadagold.com.

Nevada Gold & Casinos, Inc.
Consolidated Balance Sheets
                                                               
                                                  October31,   April 30,
                                                  2013          2013
                                                               
                                                  (unaudited)   
                                                               
ASSETS
Current assets:                                                 
Cash and cash equivalents                          $6,844,436  $6,723,919
Restricted cash                                    1,252,046    1,306,487
Accounts receivable, net                           411,565      445,481
Prepaid expenses                                   1,208,146    854,092
Notes receivable, current portion                  283,613      216,596
Other current assets                               327,098      373,923
Total current assets                               10,326,904   9,920,498
                                                               
Investments in development projects                --          56,959
Real estate held for sale                          1,100,000    1,100,000
Notes receivable, net of current portion           1,914,321    2,082,853
Goodwill                                           16,103,583   16,103,583
Identifiable intangible assets, net of accumulated
amortization of $5,016,223 and $4,413,439 at       6,356,952    6,959,737
October 31, 2013 and April 30, 2013, respectively
Property and equipment, net of accumulated
depreciation of $3,123,297 and $2,599,940 at       4,728,995    5,028,122
October 31, 2013 and April 30, 2013, respectively
Deferred tax asset, net                            4,782,211    4,738,373
Other assets                                       390,319      533,861
Total assets                                       $45,703,285 $46,523,986
                                                               
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:                                            
Accounts payable and accrued liabilities           $1,464,368  $2,024,465
Accrued interest payable                           30,555       34,393
Other accrued liabilities                          2,072,596    2,127,140
Long-term debt, current portion                    2,370,000    1,280,000
Total current liabilities                          5,937,519     5,465,998
Other long-termliabilities                        428,421      421,253
Long-term debt, net of current portion             11,550,000    12,930,000
Total liabilities                                  17,915,940    18,817,251
                                                               
                                                               
Stockholders' equity:                                           
Common stock, $0.12 par value per share;
50,000,000 shares authorized; 16,916,947 and
16,864,122 shares issued and 16,134,110 and        2,030,044     2,023,705
16,081,285 shares outstanding at October 31, 2013,
and April 30, 2013, respectively
Additional paid-in capital                         24,489,199    24,419,858
Retained earnings                                  8,205,676     8,200,746
Treasury stock, 782,837 shares at October 31, 2013 (6,932,035)  (6,932,035)
and April 30, 2013, respectively, at cost
Accumulated other comprehensive loss               (5,539)      (5,539)
Total stockholders' equity                         27,787,345    27,706,735
Total liabilities and stockholders' equity         $45,703,285 $46,523,986


Nevada Gold & Casinos, Inc.
Consolidated Statements of Operations
(unaudited)
                                                             
                      Three Months Ended          Six Months Ended
                      October 31,   October 31,   October 31,   October 31,
                      2013          2012          2013          2012
Revenues:                                                     
Casino                 $14,479,974 $14,492,470 $28,428,453 $29,451,147
Food and beverage      2,511,766     2,508,167     4,870,074    5,065,767
Other                  431,354       456,837       863,400      928,119
Gross revenues         17,423,094    17,457,474    34,161,927   35,445,033
Less promotional       (1,073,977)  (1,073,786)  (2,122,020)  (2,250,642)
allowances
Net revenues           16,349,117    16,383,688    32,039,907   33,194,391
                                                             
Expenses:                                                    
Casino                 8,482,388     8,542,487     16,907,336   16,973,323
Food and beverage      1,281,597     1,178,027     2,498,307    2,363,249
Other                  70,576        81,039        125,056      155,661
Marketing and          4,076,583     4,031,426     8,386,524    8,435,687
administrative
Facility               491,720       570,178       970,481      1,113,799
Corporate expense      585,090       1,493,311     1,202,251    2,405,947
Depreciation and       565,288      538,534      1,127,225    1,077,515
amortization
Write-off of project   56,959       257,733      56,959       257,733
development cost
Total operating        15,610,201   16,692,735   31,274,139   32,782,914
expenses
Operating income       738,916      (309,047)    765,768      411,477
(loss)
Non-operating income                                          
(expenses):
Loss on sale of assets (4,546)      (1,718)      (8,517)      (2,963)
Interest income        34,090       --          68,485       900
Interest expense       (345,142)    (393,064)    (699,063)    (778,565)
Amortization of loan   (88,037)     (85,082)     (165,580)    (162,625)
issue costs
Income (loss) before
income tax benefit     335,281      (788,911)    (38,907)     (531,776)
(expense)
Income tax benefit     (114,524)    108,375      43,837       19,686
(expense)
Net income (loss) from $220,757    $(680,536)  $4,930      $(512,090)
continuing operations
Net loss from
discontinued           --          (138,472)    --          (138,793)
operations, net of
taxes
Net income (loss)      $220,757    $(819,008)  $4,930      $(650,883)
Per share information:                                        
Net income (loss) per
common share - basic   $0.01       $(0.04)     $0.00       $(0.03)
and diluted for
continuing operations
                                                             
Net income (loss) per
common share - basic
and diluted for        $--        $(0.01)     $--        $(0.01)
discontinued
operations
                                                             
Basic weighted average
number of shares       16,105,775    15,964,051    16,104,725    15,949,269
outstanding
                                                             
Diluted weighted
average number of      16,208,227    15,964,051    16,171,182    15,949,269
shares outstanding

CONTACT: Nevada Gold & Casinos, Inc.
         Michael P. Shaunnessy / James Kohn
         (702) 685-1000

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