Nevada Gold & Casinos Reports Third Quarter Results

Nevada Gold & Casinos Reports Third Quarter Results  LAS VEGAS, March 18, 2014 (GLOBE NEWSWIRE) -- Nevada Gold & Casinos, Inc. (NYSE MKT: UWN) today announced financial results for the third quarter ended January 31, 2014. The company will host a conference call at 4:30PM EDT today to discuss the financial results and to provide a corporate update. The new dial-in numbers for the conference call will be released on the newswire at 2:30PM EDT.  For the third quarter of fiscal 2014, the company reported net revenues of $14.8 million compared to $16.2 million in the third quarter of fiscal 2013. Net revenues from Washington decreased 8% to $13.3 million, while South Dakota net revenues declined 17% to $1.5 million. Operating expenses were $14.5 million compared to $15.3 million in the prior year period. Operating income from continuing operations was $0.3 million compared to $0.9 million in the prior year period. The net loss from continuing operations was $203,000, which included a $284,000 pre-tax loss on the extinguishment of debt.  During the third quarter, our Washington casino operations produced EBITDA of $1.5 million compared to $2.4 million in the prior year period.Table game drop (amount wagered) was down approximately 4%, while the win percentage, although within the normal range, was at the lower end, while the prior year hold was at the higher end.This spread contributed approximately $0.8 million to the year over year EBITDA decline.Our South Dakota route operation lost $40,000 in EBITDA for the quarter, compared to a $5,000 EBITDA loss in the prior year, reflecting the weather related market softness. Corporate expenses were $0.6 million compared to $0.8 million in the prior year period. On a consolidated basis, adjusted EBITDA was $0.9 million compared to $1.6 million in the prior year period.  "During the third quarter, our table win percentage was at the low end of the normal range and was the significant driver of our year over year performance," said President and CEO Michael Shaunnessy."We also recorded a $284,000 write-off of deferred financing costs related to our refinancing which closed December 18^th.We will see the first full quarter benefit of the reduced interest rates in the coming quarter."  "We continue to focus on the cost side of our business to maintain margins. We are actively searching for new opportunities that fit Nevada Gold & Casinos' investment parameters and enhance shareholder value."  For the nine month period of fiscal 2014, net revenues were $46.8 million compared to $49.4 million in fiscal year 2013. Operating expenses were $45.8 million compared to $48.1 million in the prior year. Operating income from continuing operations was $1.1 million compared to $1.3 million in fiscal 2013.Net loss from continuing operations was $198,000 compared to a loss of $324,000 in the prior year.  (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 nine months ended January 31, 2014 and January 31, 2013 are shown below:  Adjusted EBITDA reconciliation to net income (loss):                                     For the three months ended                                     January 31, 2014 January 31, 2013                                                       Net income (loss)                    $ (203,038)       $ 235,356 Add:                                                   Income tax expense (benefit)         (72,643)          368,673 Net interest expense (income)        270,077           370,981 Impairments/Write offs               283,550           -- Loss on sale of assets               7,412             2,132 Depreciation and amortization        565,030           550,609 Deferred rent                        3,632             19,034 Stock option and ESPP grants         15,282            54,479 (Income) on operations held for sale --                (47,190) AdjustedEBITDA                      $ 869,302         $ 1,554,074   Adjusted EBITDA reconciliation to net loss:                                 For the nine months ended                                 January 31, 2014 January 31, 2013                                                   Net income (loss)                $ (198,108)       $ (415,527) Add:                                               Income tax expense (benefit)     (116,480)         348,987 Net interest expense (income)    1,066,234         1,311,270 Impairments/Write offs           340,509           257,733 Loss on sale of assets           15,929            5,095 Depreciation and amortization    1,692,254         1,628,124 Deferred rent                    18,072            57,101 Stock option and ESPP grants     46,301            124,238 Severance expense                --                725,877 Loss on operations held for sale --                91,603 AdjustedEBITDA                  $ 2,864,711       $ 4,134,501  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. For more information, visit www.nevadagold.com.  Nevada Gold & Casinos, Inc. Consolidated Balance Sheets                                                                                                                   January 31,  April 30,                                                   2014          2013                                                   (unaudited)    ASSETS                                                           Current assets:                                                  Cash and cash equivalents                          $5,686,817  $6,723,919 Restricted cash                                    1,325,924    1,306,487 Accounts receivable, net                           367,780      445,481 Prepaid expenses                                   1,050,304    854,092 Notes receivable, current portion                  298,911      216,596 Other current assets                               345,724      373,923 Total current assets                               9,075,460    9,920,498                                                                 Real estate held for sale                          1,100,000    1,100,000 Investments in development projects                --          56,959 Notes receivable, net of current portion          1,823,272    2,082,853 Goodwill                                           16,103,583   16,103,583 Identifiable intangible assets, net of accumulated amortization of $5,317,616 and $4,413,439 at       6,055,560    6,959,737 January 31, 2014 and April 30, 2013, respectively Property and equipment, net of accumulated depreciation of $3,385,318 and $2,599,940 at       4,498,675    5,028,122 January 31, 2014 and April 30, 2013, respectively Deferred tax asset, net                            4,854,853    4,738,373 Other assets                                       510,222      533,861 Total assets                                       $44,021,625 $46,523,986                                                                 LIABILITIES AND STOCKHOLDERS' EQUITY                             Current liabilities:                                             Accounts payable and accrued liabilities           $1,100,449  $2,024,465 Accrued interest payable                           39,930       34,393 Other accrued liabilities                          2,084,632    2,127,140 Long-term debt, current portion                    1,600,000    1,280,000 Total current liabilities                          4,825,011     5,465,998 Long-term debt, net of current portion             11,150,000   12,930,000 Other long-termliabilities                        432,055      421,253 Total liabilities                                  16,407,066    18,817,251                                                                 Stockholders' equity:                                            Common stock, $0.12 par value per share; 50,000,000 shares authorized; 16,929,085 and 16,864,122 shares issued and 16,146,248 and        2,031,499     2,023,705 16,081,285 shares outstanding at January 31, 2014, and April 30, 2013, respectively Additional paid-in capital                         24,517,996    24,419,858 Retained earnings                                  8,002,638     8,200,746 Treasury stock, 782,837 shares at January 31, 2014 (6,932,035)  (6,932,035) and April 30, 2013, respectively, at cost Accumulated other comprehensive loss               (5,539)      (5,539) Total stockholders' equity                         27,614,559    27,706,735 Total liabilities and stockholders' equity         $44,021,625 $46,523,986   Nevada Gold & Casinos, Inc. Consolidated Statements of Operations                                                                                     Three Months Ended          Nine Months Ended                       January 31,   January 31,   January 31,   January 31,                       2014          2013          2014          2013 Revenues:                                                      Casino                 $12,810,554 $14,290,483 $41,239,008 $43,741,630 Food and beverage      2,606,048     2,527,607     7,476,123    7,593,374 Other                  432,150       436,812       1,295,549    1,364,932 Gross revenues         15,848,752    17,254,902    50,010,680   52,699,936 Less promotional       (1,087,885)  (1,044,757)  (3,194,646)  (3,295,399) allowances Net revenues           14,760,867    16,210,145    46,816,034   49,404,537                                                               Expenses:                                                     Casino                 7,379,668     7,880,140     24,286,561   24,853,463 Food and beverage      1,322,877     1,206,390     3,821,637    3,569,639 Other                  62,053        77,591        187,101      233,254 Marketing and          4,017,777     4,121,894     12,419,561   12,557,581 administrative Facility               489,927       592,905       1,460,408    1,706,704 Corporate expense      638,177       850,664       1,840,428    3,256,611 Depreciation and       565,030      550,609      1,692,254    1,628,124 amortization Write-off of investments in         --          --          56,959       257,733 development projects Total operating        14,475,509   15,280,193   45,764,909   48,063,109 expenses Operating income       285,358      929,952      1,051,125    1,341,428 Non-operating income                                           (expenses): Loss on sale of assets (7,412)      (2,132)      (15,929)     (5,095) Interest income        33,241       85,051       101,727      85,951 Interest expense       (255,393)    (370,913)    (954,456)    (1,149,477) Interest rate swap     (3,620)      --          (3,620)      -- expense Amortization of loan   (44,305)     (85,119)     (209,885)    (247,744) issue costs Loss on extinguishment (283,550)    --          (283,550)    -- of debt Income (loss) before income tax benefit     (275,681)    556,839      (314,588)    25,063 (expense) Income tax benefit     72,643       (368,673)    116,480      (348,987) (expense) Net income (loss) from $(203,038)  $188,166    $(198,108)  $(323,924) continuing operations Net income (loss) from discontinued           --          47,190       --          (91,603) operations, net of taxes Net income (loss)      $(203,038)  $235,356    $(198,108)  $(415,527) Per share information:                                         Net income (loss) per common share - basic   $(0.01)     $0.01       $(0.01)     $(0.02) and diluted for continuing operations                                                               Net income (loss) per common share - basic and diluted for                     $0.00                    $(0.01) discontinued operations in fiscal year 2013                                                               Basic weighted average number of shares       16,136,485    16,028,191    16,115,311    15,975,576 outstanding                                                               Diluted weighted average number of      16,325,594    16,029,921    16,271,238    15,975,576 shares outstanding  CONTACT: Nevada Gold & Casinos, Inc.          Michael P. Shaunnessy / James Kohn          (702) 685-1000  company logo