- Net revenues increase 20% to $16.2 million.
- Adjusted EBITDA(1) from continuing operations doubles to $1.6 million
- Net income per share from continuing operations of $0.01
LAS VEGAS, March 12, 2013 (GLOBE NEWSWIRE) -- Nevada Gold & Casinos, Inc. (NYSE MKT:UWN) today announced financial results for the third quarter of fiscal 2013, ended January 31, 2013.
President and CEO Michael Shaunnessy commented, "This quarter's results represent a significant milestone for Nevada Gold. For the first time, we have a full trailing 12 month financial picture that clearly demonstrates the solid cash flow returns being generated by the company's portfolio of assets. For the trailing twelve months, adjusted EBITDA totaled $5.6 million.
"We are pleased with the quarter's strong cash flow and the results of our Washington and South Dakota portfolios, both of which performed according to plan. Based on the company's performance and our outlook for the remainder of fiscal 2013, we believe we are well positioned to meet Nevada Gold's goal of generating $5 million in adjusted EBITDA.
"During the quarter, we continued to use our excess cash flow generation to pay down debt and strengthen our balance sheet. To date in fiscal 2013, we have reduced total debt outstanding by $1.8 million.
"With the completion of the cost reduction program and organizational changes announced in October 2012, Nevada Gold is also well positioned to explore additional opportunities in the gaming industry. We will take a prudent, disciplined approach, focusing on right-sized, near-term opportunities that leverage our current organizational strengths and asset base."
As previously announced, Nevada Gold is in the process of moving its corporate headquarters from Houston, Texas to Las Vegas, Nevada. The move will be completed by April 1, 2013. At that time, the company's new address and contact information will be posted on its website.
Financial Results
The financial information presented below represents results from continuing operations. Financial information for the third 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.
For the period ended January 31, 2013, net revenues increased 20.3% to $16.2 million compared to $13.5 million for the prior-year period. Operating expenses increased 15.9% to $15.3 million compared to $13.2 million in the prior-year period. The revenue and expense increases are primarily due to the addition of the South Dakota slot route operation. Operating income for the current quarter totaled $0.9 million compared to operating income of $0.3 million in the prior-year quarter. Net income for the current quarter was $0.2 million compared to a net loss of $0.1 million in the prior-year period. On a per share basis, net income from continuing operations was $0.01 in the 2013 third quarter compared to $0.00, in the prior-year period.
Net income from discontinued operations for the current quarter was $47,000 or $0.00 per share, due to adjustment of deferred taxes, compared to a net loss from discontinued operations of $215,000 or $0.01 per share, in the prior-year period.
Diluted weighted average common shares outstanding in the third quarter of fiscal 2013 were 16.0 million compared to 15.6 million in the prior-year period.
Conference Call and Webcast
The Company will host a conference call to discuss third-quarter 2013 financial results today at 11:00 AM ET. The conference call can be accessed live over the phone by dialing (719) 325-2454 or (888) 455-2296. A replay will be available one hour after the call and can be accessed by dialing (858) 384-5517 or (877) 870-5176; the conference ID is #6716940. The replay will be available through March 19, 2013. 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 January 31, 2013 and January 31, 2012:
| Adjusted EBITDA reconciliation to net loss: | ||
| For the three months ended | ||
| January 31, 2013 | January 31, 2012 | |
| Net income (loss) | $ 235,356 | $ (288,047) |
| Add: | ||
| Income tax expense (benefit) | 368,673 | (57,991) |
| Net interest expense | 370,981 | 425,226 |
| Loss on sale of assets | 2,132 | -- |
| Depreciation and amortization | 550,609 | 472,963 |
| Deferred rent | 19,034 | -- |
| Stock option and ESPP grants | 54,479 | 24,964 |
| (Income) loss on operations held for sale | (47,190) | 214,725 |
| Acquisition expenses | -- | 25,219 |
| Adjusted EBITDA | $ 1,554,074 | $ 817,059 |
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 Las Vegas, Nevada 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. For more information, visit www.nevadagold.com.
| Contacts: |
| Nevada Gold & Casinos, Inc. |
| Michael P. Shaunnessy / James Kohn |
| (702) 685-1000 |
| LHA |
| Harriet Fried / Jody Burfening |
| (212) 838-3777 |
| hfried@lhai.com |
| Nevada Gold & Casinos, Inc. | ||
| Consolidated Balance Sheets | ||
| January 31, | April 30, | |
| 2013 | 2012 | |
| (unaudited) | ||
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 6,788,028 | $ 5,200,161 |
| Restricted cash | 1,433,148 | 1,787,068 |
| Accounts receivable | 323,909 | 653,433 |
| Prepaid expenses | 1,117,607 | 909,834 |
| Notes receivable, current portion | 175,765 | 20,600 |
| Other current assets | 377,651 | 354,817 |
| Assets of discontinued operations | -- | 33,601 |
| Total current assets | 10,216,108 | 8,959,514 |
| Investments in development projects | 63,885 | 255,355 |
| Real estate held for sale | 1,100,000 | 1,100,000 |
| Notes receivable, net of current portion | 2,141,176 | -- |
| Goodwill | 16,103,584 | 16,090,799 |
| Identifiable intangible assets, net of accumulated amortization of $4,112,065 and $3,201,868 at January 31, 2013 and April 30, 2012, respectively | 6,872,275 | 7,782,453 |
| Property and equipment, net of accumulated depreciation of $2,465,560 and $1,785,064 at January 31, 2013 and April 30, 2012, respectively | 5,196,562 | 5,399,103 |
| Deferred tax asset, net | 4,949,439 | 5,251,236 |
| Other assets | 1,011,262 | 1,219,356 |
| Assets of discontinued operations | -- | 3,115,097 |
| Total assets | $ 47,654,291 | $ 49,172,913 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Accounts payable and accrued liabilities | $ 2,787,661 | $ 2,176,545 |
| Accrued interest payable | 42,144 | 61,141 |
| Other accrued liabilities | 2,453,634 | 2,632,067 |
| Long-term debt, current portion | 1,480,000 | 1,400,324 |
| Liabilities of discontinued operations | -- | 23,699 |
| Total current liabilities | 6,763,439 | 6,293,776 |
| Other long term liabilities | 406,838 | 337,849 |
| Long-term debt, net of current portion | 13,270,000 | 15,155,000 |
| Total liabilities | 20,440,277 | 21,786,625 |
| Stockholders' equity: | ||
| Common stock, $0.12 par value per share; 50,000,000 shares authorized; 16,839,754 and 16,707,205 shares issued and 16,056,917 and 15,924,368 shares outstanding at January 31, 2013, and April 30, 2012, respectively | 2,020,770 | 2,004,865 |
| Additional paid-in capital | 24,382,505 | 24,155,158 |
| Retained earnings | 7,748,313 | 8,163,839 |
| Treasury stock, 782,837 shares at January 31, 2013 and April 30, 2012, respectively, at cost | (6,932,035) | (6,932,035) |
| Accumulated other comprehensive loss | (5,539) | (5,539) |
| Total stockholders' equity | 27,214,014 | 27,386,288 |
| Total liabilities and stockholders' equity | $ 47,654,291 | $ 49,172,913 |
| Nevada Gold & Casinos, Inc. | ||||
| Consolidated Statements of Operations | ||||
| (unaudited) | ||||
| Three Months Ended | Nine Months Ended | |||
| January 31, | January 31, | January 31, | January 31, | |
| 2013 | 2012 | 2013 | 2012 | |
| Revenues: | ||||
| Casino | $ 14,080,278 | $ 11,357,849 | $ 43,131,963 | $ 33,175,572 |
| Food and beverage | 2,527,607 | 2,981,314 | 7,593,374 | 8,348,730 |
| Other | 647,017 | 623,507 | 1,974,599 | 1,693,107 |
| Gross revenues | 17,254,902 | 14,962,670 | 52,699,936 | 43,217,409 |
| Less promotional allowances | (1,044,757) | (1,485,186) | (3,295,399) | (4,156,869) |
| Net revenues | 16,210,145 | 13,477,484 | 49,404,537 | 39,060,540 |
| Expenses: | ||||
| Casino | 7,494,238 | 5,680,916 | 23,726,650 | 16,683,807 |
| Food and beverage | 1,206,390 | 1,020,909 | 3,569,639 | 3,022,294 |
| Marketing and administrative | 4,102,860 | 4,121,286 | 12,500,480 | 12,057,631 |
| Facility | 592,905 | 518,156 | 1,706,704 | 1,529,876 |
| Corporate expense | 785,262 | 866,594 | 3,111,772 | 2,840,780 |
| Legal expense | 65,402 | 36,871 | 144,839 | 64,461 |
| Depreciation and amortization | 550,609 | 472,963 | 1,628,124 | 1,376,167 |
| Deferred rent | 19,034 | -- | 57,101 | -- |
| Acquisition costs | -- | 25,219 | -- | 90,885 |
| Impairment of assets | -- | -- | -- | 2,273,966 |
| Write-off of project development cost | -- | -- | 257,733 | -- |
| Excise taxes | 323,907 | 296,844 | 934,145 | 884,839 |
| Other | 139,586 | 143,813 | 425,922 | 380,927 |
| Total operating expenses | 15,280,193 | 13,183,571 | 48,063,109 | 41,205,633 |
| Operating income (loss) | 929,952 | 293,913 | 1,341,428 | (2,145,093) |
| Non-operating income (expenses): | ||||
| Loss on sale of assets | (2,132) | -- | (5,095) | (22,654) |
| Interest income | 85,051 | 42,849 | 85,951 | 128,551 |
| Interest expense | (370,913) | (393,177) | (1,149,477) | (1,152,314) |
| Amortization of loan issue costs | (85,119) | (74,898) | (247,744) | (119,484) |
| Loss on extinguishment of debt | -- | -- | -- | (154,270) |
| Income (loss) before income tax benefit | 556,839 | (131,313) | 25,063 | (3,465,264) |
| Income tax (expense) benefit | (368,673) | 57,991 | (348,987) | 1,381,510 |
| Net income (loss) from continuing operations | $ 188,166 | $ (73,322) | $ (323,924) | $ (2,083,754) |
| Net income (loss) from discontinued operations, net of taxes | 47,190 | (214,725) | (91,603) | (516,758) |
| Net income (loss) | $ 235,356 | $ (288,047) | $ (415,527) | $ (2,600,512) |
| Per share information: | ||||
| Net income (loss) per common share - basic and diluted for continuing operations | $ 0.01 | $ (0.00) | $ (0.02) | $ (0.15) |
| Net loss per common share - basic and diluted for discontinued operations | $ 0.00 | $ (0.01) | $ (0.01) | $ (0.04) |
| Basic weighted average number of shares outstanding | 16,028,191 | 15,631,040 | 15,975,576 | 13,888,835 |
| Diluted weighted average number of shares outstanding | 16,029,921 | 15,631,040 | 15,975,576 | 13,888,835 |