Full-Year Adjusted EBITDA Up 36%
Deadwood, SD Slot Route Operation Ramped Up
HOUSTON, July 27, 2012 (GLOBE NEWSWIRE) -- Nevada Gold & Casinos, Inc. (NYSE MKT: UWN) today announced financial results for the fourth quarter and fiscal year ended April 30, 2012.
Fourth Quarter 2012 Financial Highlights
- Net revenues increased 27.0% to $16.6 million
- Excluding the $4.4 million after-tax impact of non-cash charges, net income from the company's continuing operations would have been $0.1 million
- Adjusted EBITDA(1) from continuing operations increased 12.7% to $1.5 million
Full Year 2012 Financial Highlights
- Net revenues increased 30.8% to $55.6 million
- Excluding the $5.9 million after-tax impact of non-cash charges, net loss from continuing operations would have been $0.6 million
- Adjusted EBITDA(1) from continuing operations increased 36.5% to $3.0 million
"Over the past quarter, using our company's proven management techniques, strategies and scale, we completed the ramp up of the AG Trucano slot route business, which for corporate purposes we now refer to as South Dakota Gold," said CEO Robert Sturges. "To re-energize the business and position it for growth, we hired a new general manager and provided in-depth guest service training. In the seasonally slow quarter just ended, South Dakota Gold contributed $0.2 million to adjusted EBITDA, meeting our expectations. While it is still early in fiscal 2013, we are pleased with the business' performance to date and, with the important summer tourism season underway, are on track to meet our goal of adding in excess of $1 million in adjusted EBITDA.
"In our Washington Gold casino operations, business volume and head counts continued to show solid growth although our results were affected by a lower-than-expected hold percentage through much of the year. Our consolidated fourth-quarter financial results were also impacted by $6.6 million of non-cash pre-tax charges resulting from various legacy issues, primarily related to potential gaming projects undertaken in the company's early years. After adjusting for these items, adjusted EBITDA for the fourth quarter improved 12.7% to $1.5 million. It is especially noteworthy that our annual adjusted EBITDA increased 36.5% for the fiscal year.
"This measurable improvement, in addition to the steps we have taken to strengthen our business, restructure our balance sheet and improve our prospects for growth, have brought 2012 to a successful close. With the increased diversification South Dakota Gold is providing, the improved pipeline of opportunities from our new gaming license in the State of Nevada, and the substantial debt reductions resulting from the recent sale of the Colorado Grande Casino and other significant debt reductions, we are poised to make further progress in fiscal 2013. We continue to work toward a goal of $5 million in adjusted EBITDA."
Financial Results
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. All financial information presented below represents results from continuing operations.
For the fourth quarter of fiscal 2012, net revenues increased to $16.6 million compared to $13.0 million in the fourth quarter of fiscal 2011. Operating expenses, including $6.3 million of valuation allowances, increased to $22.4 million from $12.3 million in the prior-year quarter. Operating loss from continuing operations, including the valuation allowances and a $0.3 million non-cash amortization of deferred rent escalation, totaled $5.9 million compared to operating income of $792,000 in the 2011 quarter. Net loss from continuing operations was $4.3 million, or $(0.27) per diluted share, compared to net income of $0.3 million income, or $0.02 in the 2011 period, due to the $4.4 million after-tax impact of the non-cash valuation allowances and amortization of deferred rent escalation. Basic and diluted weighted average common shares outstanding in the fourth quarter of fiscal 2012 were 15.9 million compared to 12.8 million and 13.3 million, respectively, in the prior-year period.
For the full year fiscal 2012, net revenues increased to $55.6 million compared to $42.5 million in fiscal year 2011. Operating expenses, including $8.5 million of valuation allowances, totaled $63.6 million compared to $42.8 million in the prior year. Operating loss from continuing operations, including the valuation allowances and amortization of deferred rent escalation referenced above, totaled $8.0 million compared to $0.2 million in fiscal 2011. Net loss from continuing operations was $6.4 million, or $0.45 per diluted share, compared to a net loss of $0.4 million in fiscal 2011 due to the $4.4 million after-tax impact of the non-cash valuation allowances and amortization of deferred rent escalation in fiscal 2012. Basic and diluted weighted average common shares outstanding in fiscal 2012 were 14.4 million compared to 12.8 million in fiscal 2011.
Conference Call and Webcast
The Company will host a conference call to discuss fourth quarter 2012 financial results today at 8:30 AM ET. The conference call can be accessed live over the phone by dialing (888) 401-4689, or, for international callers, (719) 325-2409. The conference ID is #1485515. 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 #1485515. The replay will be available through Friday, August 3, 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, 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 and fiscal years ended April 30, 2012 and April 30, 2011:
| Adjusted EBITDA reconciliation to net income (loss): | ||
| For the quarter ended (unaudited) | ||
| April 30, 2012 | April 30, 2011 | |
| Net Income (loss) | $(5,328,07) | $281,121 |
| Add: | ||
| Income tax (benefit) expense | (1,994,383) | 184,660 |
| Net interest expense | 432,875 | 337,231 |
| Loss on sale of assets | 32,092 | -- |
| (Income) loss on operations held for sale | 996,649 | (11,367) |
| Acquisition expenses | 82,966 | -- |
| Depreciation and amortization | 628,144 | 442,695 |
| Deferred rent escalation | 337,849 | -- |
| Impairments, write-offs, recoveries, net | 6,264,655 | 54,406 |
| Adjusted EBITDA | $1,452,775 | $1,288,746 |
| Adjusted EBITDA reconciliation to net loss: | ||
| For the fiscal year ended | ||
| April 30, 2012 | April 30, 2011 | |
| Net Loss | $(7,928,50) | $ (487,026) |
| Add: | ||
| Income tax benefit | (3,351,859) | (672,416) |
| Net interest expense | 1,576,122 | 1,245,710 |
| Loss on extinguishment of debt | 154,270 | -- |
| (Gain) loss on sale of assets | 54,746 | (392,243) |
| Loss on operations held for sale | 1,489,290 | 82,210 |
| Acquisition expenses | 173,852 | 805,149 |
| Depreciation and amortization | 2,004,311 | 1,597,498 |
| Deferred rent escalation | 337,849 | -- |
| Impairments, write-offs, recoveries, net | 8,538,621 | 54,406 |
| Adjusted EBITDA | $3,048,701 | $2,233,288 |
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:UWN) of Houston, Texas is a developer, owner and operator of 10 gaming operations in Washington ("Washington Gold") and a 900-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 ;
| Nevada Gold & Casinos, Inc. | ||
| Consolidated Balance Sheets | ||
| April 30, 2012 | April 30, 2011 | |
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 5,200,161 | $ 5,656,110 |
| Restricted cash | 1,787,068 | 944,359 |
| Accounts receivable | 653,433 | 571,032 |
| Prepaid expenses | 909,834 | 785,975 |
| Income tax receivable | -- | 176,750 |
| Notes receivable, current portion | 20,600 | -- |
| Other current assets | 354,817 | 290,433 |
| Assets of operations held for sale | 33,601 | 36,187 |
| Total current assets | 8,959,514 | 8,460,846 |
| Investments in development projects | 255,355 | 189,692 |
| Real estate held for sale | 1,100,000 | 3,373,966 |
| Notes receivable - development projects, net of allowances | -- | 1,700,000 |
| Goodwill | 16,090,799 | 13,474,980 |
| Identifiable intangible assets, net of accumulated amortization of $3,201,868 and $1,852,553 at April 30, 2012 and April 30, 2011, respectively | 7,782,453 | 7,361,298 |
| Property and equipment, net of accumulated depreciation | ||
| of $1,785,0664 and $1,189,555 at April 30, 2012 and | ||
| April 30, 2011, respectively | 5,399,103 | 3,909,157 |
| Deferred tax asset, net | 5,251,236 | 1,460,884 |
| BVD/BVO receivable | -- | 4,000,000 |
| Other assets | 1,219,356 | 574,339 |
| Assets of operations held for sale | 3,115,097 | 4,514,715 |
| Total assets | $49,172,913 | $49,019,877 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Accounts payable and accrued liabilities | $ 2,216,520 | $ 1,442,661 |
| Accrued interest payable | 61,141 | 118,024 |
| Other accrued liabilities | 2,592,092 | 1,518,315 |
| Other current liabilites | -- | 100,000 |
| Long-term debt, current portion | 1,400,324 | -- |
| Liabilities of operations held for sale | 23,699 | 405,249 |
| Total current liabilities | 6,293,776 | 3,584,249 |
| Other long term liabilities | 337,849 | -- |
| Long-term debt, net of current portion | 15,155,000 | 15,070,000 |
| Total liabilities | 21,786,625 | 18,654,249 |
| Stockholders' equity: | ||
| Common stock, $0.12 par value per share; 50,000,000 | ||
| shares authorized; 16,732,205 and 13,968,210 shares issued and 15,924,368 and 12,797,010 shares outstanding at April 30, 2012, and April 30, 2011, respectively | 2,007,865 | 1,676,185 |
| Additional paid-in capital | 24,178,808 | 20,086,236 |
| Retained earnings | 8,174,902 | 18,977,946 |
| Treasury stock, 782,837 and 1,171,200 shares at April 30, 2012 and April 30, 2011, respectively, at cost | (6,969,748) | (10,369,200) |
| Accumulated other comprehensive loss | (5,539) | (5,539) |
| Total stockholders' equity | 27,386,288 | 30,365,628 |
| Total liabilities and stockholders' equity | $49,172,913 | $49,019,876 |
| Nevada Gold & Casinos, Inc. | ||
| Consolidated Statements of Operations | ||
| Twelve Months Ended | ||
| April 30, | April 30, | |
| 2012 | 2011 | |
| Revenues: | ||
| Casino | $ 47,445,348 | $ 35,975,783 |
| Food and beverage | 11,409,426 | 8,669,112 |
| Other | 2,456,028 | 1,828,966 |
| Gross revenues | 61,310,802 | 46,473,861 |
| Less promotional allowances | (5,682,168) | (3,937,559) |
| Net revenues | 55,628,634 | 42,536,302 |
| Expenses: | ||
| Casino | 24,391,072 | 18,485,867 |
| Food and beverage | 4,202,546 | 3,719,073 |
| Marketing and administrative | 16,412,562 | 10,136,618 |
| Facility | 2,112,397 | 2,664,820 |
| Corporate expense | 3,548,276 | 3,709,804 |
| Legal expense | 113,078 | 315,800 |
| Depreciation and amortization | 2,004,311 | 1,597,498 |
| Acquisition costs | 173,852 | 805,149 |
| Deferred rent escalation | 337,849 | -- |
| Valuation allowance of assets | 6,848,870 | -- |
| Excise taxes | 1,205,238 | 967,565 |
| (Recovery) write-off of project development costs | (10,249) | 54,406 |
| Valuation allowance of project development costs | 1,700,000 | -- |
| Other | 594,764 | 303,467 |
| Total operating expenses | 63,634,566 | 42,760,067 |
| Operating loss from continuing operations | (8,005,932) | (223,765) |
| Non-operating income (expenses): | ||
| Gain (loss) on settlements - sale of assets | (54,746) | 392,243 |
| Interest income | 171,075 | 173,436 |
| Interest expense | (1,552,948) | (1,374,146) |
| Amortization of loan issue costs | (194,249) | (45,000) |
| Loss on extinguishment of debt | (154,270) | -- |
| Loss before income tax | (9,791,070) | (1,077,232) |
| Income tax benefit | 3,351,776 | 672,416 |
| Net loss from continuing operations | (6,439,294) | (404,816) |
| Net loss from operations held for sale, net of taxes | (1,489,290) | (82,210) |
| Net loss | $ (7,928,584) | $ (487,026) |
| Per share information: | ||
| Net loss per common share - basic and diluted for continuing operations | $ (0.45) | $ (0.03) |
| Net loss per common share - basic and diluted for discontinued operations | $ (0.10) | $ (0.01) |
| Basic and diluted weighted average number of shares outstanding | 14,381,896 | 12,766,382 |