Nevada Gold & Casinos Reports Fourth Quarter Results

Nevada Gold & Casinos Reports Fourth Quarter Results  LAS VEGAS, July 29, 2014 (GLOBE NEWSWIRE) -- Nevada Gold & Casinos, Inc. (NYSE MKT:UWN) today announced financial results for the fourth quarter ended April 30, 2014.  For the fourth quarter of fiscal 2014, the company reported net revenues of $16.0 million compared to $16.5 million in the fourth quarter of fiscal 2013. Operating expenses decreased to $14.8 million compared to $15.5 million in the prior year period. Operating income from continuing operations increased to $1.3 million compared to $1.1 million in the prior year period. Income before taxes also increased to $1.0 million compared to $0.7 in the prior year period. Net income from continuing operations was $0.7 million, compared to $0.5 million in the prior year period.  During the fourth quarter, net revenues from Washington were $14.1 million, a slight decrease from the $14.2 million in the prior year period, however, EBITDA improved slightly to $2.3 million compared to $2.2 million in the prior year period. South Dakota route operation revenues decreased to $1.9 million from $2.3 million in the prior year period, primarily due to a reduction in units. EBITDA declined to $83,000 for the quarter, compared to EBITDA of $147,000 in the prior year. Corporate expenses were $0.5 million compared to $0.7 million in the prior year period. On a consolidated basis, adjusted EBITDA was $1.9 million compared to $1.7 million in the prior year period. Net interest expense decreased to $157,000 compared to $393,000, in the prior year period.  "Our fiscal fourth quarter reflects the first full benefit of our debt refinancing completed last December.With the reduced interest expense and solid operating performance, we expect to generate strong earnings growth and free cash flow in fiscal 2015 and forward," said President and CEO Michael Shaunnessy.  For the full fiscal year 2014, net revenues were $62.8 million compared to $65.9 million in fiscal year 2013. Operating expenses were $60.5 million compared to $63.5 million in the prior year. Operating income from continuing operations was $2.3 million compared to $2.4 million in fiscal 2013.Income before taxes was $0.7 million compared to $0.7 million in the prior year period. Net income from continuing operations was $0.5 million compared to $0.1 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 grants, non-cash employee stock purchase plan discounts, 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 fiscal years ended April 30, 2014 and April 30, 2013 are shown below:  Adjusted EBITDA reconciliation to net income:                                               For the three months ended                                              April 30, 2014  April 30, 2013                                                              Net income                                    $ 646,089       $ 452,434 Add:                                                          Income tax expense (benefit)                  399,239         211,065 Net interest expense (income)                 156,669         392,757 Depreciation and amortization                 571,245         498,764 Loss on settlements - sale of assets          11,676          986 Deferred rent                                 (3,537)         19,034 Stock option amortization                     13,620        13,620 Employee stock purchase discount              1,391          -- Decrease in swap fair value                   58,352         -- Relocation expenses                           --             127,029 AdjustedEBITDA                               $ 1,854,744     $ 1,715,689                                               Adjusted EBITDA reconciliation to net income:                                               For the fiscal year ended                                              April 30, 2014 April 30, 2013                                                              Net income                                    $ 447,981       $ 36,097 Add:                                                          Income tax expense (benefit)                  282,758         560,052 Net interest expense (income)                 1,222,904       1,704,027 Depreciation and amortization                 2,263,499       2,126,888 Loss on settlements - sale of assets          27,605          6,081 Deferred rent                                 14,536          76,136 Stock option amortization                     54,479          137,858 Employee stock purchase discount              7,384           -- Loss on debt extinguishment                   283,550         -- Decrease in swap fair value                   58,352         -- Relocation expenses                           --             127,029 Severance expense                             --             637,868 Impairments, write-offs, recoveries, net      56,959         257,733 Loss on operations held for sale              --             91,603 AdjustedEBITDA                               $ 4,720,007     $ 5,762,182  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                                                                                                                   April 30,     April 30,                                                   2014          2013                                                                                                                                 ASSETS Current assets:                                                  Cash and cash equivalents                          $7,738,985  $6,723,919 Restricted cash                                    1,388,995    1,306,487 Accounts receivable                                252,504      445,481 Prepaid expenses                                   829,228      854,092 Deferred tax asset, current portion                98,643       67,123 Notes receivable, current portion                  332,973      216,596 Inventory and other current assets                 344,686      373,923 Total current assets                               10,986,014   9,987,621                                                                 Investments in development projects                --          56,959 Real estate held for sale                          1,100,000    1,100,000 Notes receivable, net of current portion           1,730,246    2,082,853 Goodwill                                           16,103,583   16,103,583 Identifiable intangible assets, net of accumulated amortization of $5,619,009 and $4,413,439 at April 5,754,167    6,959,738 30, 2014 and April 30, 2013, respectively Property and equipment, net of accumulated                       depreciation of $3,632,349 and $2,599,940 at April 30, 2014 and               April 30, 2013, respectively                       4,289,178    5,028,122 Deferred tax asset, net of current portion         4,356,972    4,671,250 Other assets                                       486,466      533,860 Total assets                                       $44,806,626 $46,523,986                                                                 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities:                                             Accounts payable and accrued liabilities           $1,427,010  $2,024,465 Accrued interest payable                           37,470       34,393 Other accrued liabilities                          2,178,317    2,127,140 Long-term debt, current portion                    1,625,000    1,280,000 Total current liabilities                          5,267,797     5,465,998 Long-term debt, net of current portion             10,725,000    12,930,000 Other long termliabilities                        486,870      421,253 Total liabilities                                  16,479,667    18,817,251                                                                                                                                 Stockholders' equity:                                            Common stock, $0.12 par value per share; 50,000,000 shares authorized; 16,980,676 and 16,864,122 shares issued and 16,197,839 and        2,037,689     2,023,705 16,081,285 shares outstanding at April 30, 2014, and April 30, 2013, respectively Additional paid-in capital                         24,578,117    24,419,858 Retained earnings                                  8,648,727     8,200,746 Treasury stock, 782,837 shares at April 30, 2014   (6,932,035)  (6,932,035) and April 30, 2013, at cost Accumulated other comprehensive loss               (5,539)      (5,539) Total stockholders' equity                         28,326,959    27,706,735 Total liabilities and stockholders' equity         $44,806,626 $46,523,986    Nevada Gold & Casinos, Inc. Consolidated Statements of Operations                                                                                     Three Months Ended          Twelve Months Ended                       April 30,     April 30,     April 30,     April 30,                       2014          2013          2014          2013 Revenues:                                                      Casino                 $14,093,561 $14,651,475 $55,332,569 $58,393,105 Food and beverage      2,577,761     2,510,539     10,053,883   10,103,913 Other                  447,161       443,607       1,742,710    1,808,538 Gross revenues         17,118,483    17,605,621    67,129,162   70,305,556 Less promotional       (1,085,552)  (1,086,239)  (4,321,768)  (4,381,638) allowances Net revenues           16,032,931    16,519,382    62,807,394   65,923,918 Expenses:                                                     Casino                 7,810,946     8,155,865     32,081,242   33,016,277 Food and beverage      1,292,352     1,270,391     5,114,077    4,838,447 Marketing and          3,991,514     4,095,164     16,369,505   16,652,746 administrative Facility               490,906       564,070       1,951,314    2,270,774 Corporate and legal    544,168       795,361       2,384,596    4,051,972 expense Depreciation and       571,245      498,764      2,263,499    2,126,888 amortization Loss on settlements -  11,676       986          27,605       6,081 sale of assets Write-off of project   --          --          56,959       257,733 development costs Other                  59,775       82,525       263,052      310,411 Total operating        14,772,582   15,463,126   60,511,849   63,531,329 expenses Operating income from  1,260,349    1,056,256    2,295,545    2,392,589 continuing operations Non-operating income                                           (expenses): Interest income        31,677       34,398       133,404      120,349 Interest expense       (138,929)    (345,512)    (1,097,005)  (1,494,989) Interest rate swap     (26,912)     --          (26,912)     -- expense Decrease in swap fair  (58,352)     --          (58,352)     -- value Amortization of loan   (22,505)     (81,643)     (232,391)    (329,387) issue costs Loss on extinguishment --          --          (283,550)    -- of debt Income before income   1,045,328    663,499      730,739      688,562 tax Income tax expense     (399,239)    (211,065)    (282,758)    (560,052) Net income from        646,089      452,434      447,981      128,510 continuing operations Net loss from operations held for    --          --          --          (91,603) sale, net of taxes Net income             $646,089    $452,434    $447,981    $36,907 Per share information:                                         Net income per common share - basic and      $0.04       $0.03       $0.03       $0.01 diluted for continuing operations Net loss per common share - basic and diluted for            $--        $--        $--        $(0.01) discontinued operations Basic weighted average number of shares       16,165,930    16,065,719    16,127,654    15,997,546 outstanding Diluted weighted average number of      16,366,283    16,110,304    16,294,487    16,020,789 shares outstanding  CONTACT: Nevada Gold & Casinos, Inc.          Michael P. Shaunnessy / James Kohn          (702) 685-1000  company logo  
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