- 4Q net income rises to $.03 per share
- 4Q adjusted EBITDA(1) from continuing operations up 18%
- 2013 net revenues increase 18.5%
- 2013 adjusted EBITDA(1) from continuing operations up 70%
LAS VEGAS, July 29, 2013 (GLOBE NEWSWIRE) -- Nevada Gold & Casinos, Inc. (NYSE MKT:UWN) today announced financial results for the fourth quarter and fiscal year ended April 30, 2013.
"We delivered solid results for the fourth quarter of fiscal 2013, bringing the year to a successful close," said President and CEO Michael Shaunnessy. "In recent months, we have taken many steps to optimize the performance of Nevada Gold & Casinos' portfolio of assets, reduce our cost structure and sharpen the company's business focus. The strong operating performance and cash flow we have announced today illustrate the success of these actions.
"We exceeded our financial target for the year and continued deleveraging our balance sheet, positioning us well for fiscal 2014. During 2013 we generated $5.8 million in adjusted EBITDA from continuing operations and reduced our outstanding debt by $2.3 million.
"In the fourth quarter, our Washington casino operations continued to show solid growth, with adjusted EBITDA improving more than 10% to $2.2 million and annual adjusted EBITDA increasing 20.5% to $7.9 million. Our South Dakota route operation contributed $1.1 million in adjusted EBITDA for the year, although performance was relatively flat for the quarter. We recently completed fine-tuning the route and are operating during the important summer season with a better-positioned and more efficient operation. We expect the fine-tuning to contribute to improved results for fiscal 2014.
"With the optimization of our current asset portfolio completed, our focus is on continuing to generate consistent results through effective operations and on exploring new revenue opportunities that complement our gaming properties and diversify our revenue stream. We are actively searching for both new properties and management contracts that fit Nevada Gold & Casinos' investment parameters and will enhance shareholder value."
Financial Results
As previously announced, Nevada Gold & Casinos completed the sale of the Colorado Grande Casino in Cripple Creek, Colorado in May 2012. As a result, the Colorado Grande's results were reclassified as discontinued operations. All financial information presented below represents results from continuing operations.
For the fourth quarter of fiscal 2013, net revenues decreased slightly to $16.5 million compared to $16.6 million in the fourth quarter of fiscal 2012. Operating expenses were $15.5 million compared to $22.4 million in the prior-year period, which included $6.3 million of valuation allowances unrelated to ongoing operations. Operating income from continuing operations was $1.1 million compared to an operating loss of $5.9 million, which included the valuation allowances. Net income from continuing operations was $0.5 million, or $0.03 per diluted share, compared to a net loss of $4.3 million in the prior-year period due to the $4.2 million after-tax impact of the non-cash valuation allowances.
For the full fiscal year 2013, net revenues, including a full year of revenues from the South Dakota slot route operation acquired on January 27, 2012, increased to $65.9 million compared to $55.6 million in fiscal 2012. Operating expenses were $63.5 million compared to $63.6 million in the prior year, which included $8.5 million of valuation allowances. Operating income from continuing operations was $2.4 million compared to a loss of $8.0 million in fiscal 2012, which included the valuation allowances referenced above. Net income from continuing operations was $0.1 million compared to a loss of $6.4 million in the prior year, which included the $5.6 million after-tax impact of the non-cash valuation allowances.
Basic and diluted weighted average common shares outstanding in fiscal 2013 were 16.0 million compared to 14.4 million in fiscal 2012.
Conference Call and Webcast
The Company will host a conference call to discuss fourth-quarter 2013 financial results today, July 29, 2013, at 11:00 am ET. The call can be accessed live by dialing (719) 325-2144 or (888) 523-1225. A simultaneous webcast of the call will be available by visiting http://www.nevadagold.com/.
A telephone replay will be available after 2:00 pm ET and can be accessed by dialing (858) 384-5517 or (877) 870-5176; the pin number is 7997705. The replay will be available through August 6, 2013. 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 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, 2013 and April 30, 2012:
| Adjusted EBITDA reconciliation to net income (loss): | ||
| For the quarter ended (unaudited) | ||
| April 30, 2013 | April 30, 2012 | |
| Net Income (loss) | $ 452,434 | $ (5,328,072) |
| Add: | ||
| Income tax (benefit) expense | 211,065 | (1,994,383) |
| Net interest expense | 392,757 | 432,875 |
| Loss on sale of assets | 986 | 32,902 |
| Stock option and ESPP grants | 13,620 | -- |
| Relocation expenses | 127,029 | -- |
| Loss on operations held for sale | -- | 996,649 |
| Acquisition expenses | -- | 82,966 |
| Depreciation and amortization | 498,764 | 628,144 |
| Deferred rent escalation | 19,034 | 337,849 |
| Impairments,write-offs, recoveries, net | -- | 6,264,655 |
| Adjusted EBITDA | $ 1,715,689 | $ 1,452,775 |
| Adjusted EBITDA reconciliation to net income (loss): | ||
| For the fiscal year ended | ||
| April 30, 2013 | April 30, 2012 | |
| Net Income (loss) | $ 36,907 | $ (7,928,584) |
| Add: | ||
| Income tax (benefit) expense | 560,052 | (3,351,776) |
| Net interest expense | 1,704,027 | 1,576,122 |
| Loss on extinguishment of debt | -- | 154,270 |
| Loss on sale of assets | 6,081 | 54,746 |
| Severance expenses | 637,868 | -- |
| Relocation expenses | 127,029 | -- |
| Stock option and Employee Stock Purchase Plan grants | 137,858 | 339,133 |
| Loss on operations held for sale | 91,603 | 1,489,290 |
| Acquisition expenses | -- | 173,852 |
| Depreciation and amortization | 2,126,888 | 2,004,311 |
| Deferred rent escalation | 76,136 | 337,849 |
| Impairments,write-offs, recoveries, net | 257,733 | 8,538,621 |
| Adjusted EBITDA | $ 5,762,182 | $ 3,387,834 |
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 on Facebook, Gold Star Slots, and 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 | ||
| April 30, | April 30, | |
| 2013 | 2012 | |
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 6,723,919 | $ 5,200,161 |
| Restricted cash | 1,306,487 | 1,787,068 |
| Accounts receivable | 445,481 | 653,433 |
| Prepaid expenses | 854,092 | 909,834 |
| Notes receivable, current portion | 216,596 | 20,600 |
| Other current assets | 373,923 | 354,817 |
| Assets of operations held for sale | -- | 33,601 |
| Total current assets | 9,920,498 | 8,959,514 |
| Investments in development projects | 56,959 | 255,355 |
| Real estate held for sale | 1,100,000 | 1,100,000 |
| Notes receivable, net of current portion | 2,082,853 | -- |
| Goodwill | 16,103,583 | 16,090,799 |
| Identifiable intangible assets, net of accumulated amortization of $4,413,439 and $3,201,868 at April 30, 2013 and April 30, 2012, respectively | 6,570,882 | 7,782,453 |
| Property and equipment, net of accumulated depreciation of $2,599,940 and $1,785,064 at April 30, 2013 and April 30, 2012, respectively | 5,028,122 | 5,399,103 |
| Deferred tax asset, net | 4,738,373 | 5,251,236 |
| Other assets | 922,716 | 1,219,356 |
| Assets of operations held for sale | -- | 3,115,097 |
| Total assets | $ 46,523,986 | $ 49,172,913 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Accounts payable and accrued liabilities | $ 2,024,465 | $ 2,176,545 |
| Accrued interest payable | 34,393 | 61,141 |
| Other accrued liabilities | 2,127,140 | 2,632,067 |
| Long-term debt, current portion | 1,280,000 | 1,400,324 |
| Liabilities of operations held for sale | -- | 23,699 |
| Total current liabilities | 5,465,998 | 6,293,776 |
| Other long term liabilities | 421,253 | 337,849 |
| Long-term debt, net of current portion | 12,930,000 | 15,155,000 |
| Total liabilities | 18,817,251 | 21,786,625 |
| Stockholders' equity: | ||
| Common stock, $0.12 par value per share; 50,000,000 shares authorized; 16,864,122 and 16,707,205 shares issued and 16,081,285 and 15,924,368 shares outstanding at April 30, 2013, and April 30, 2012, respectively | 2,023,705 | 2,004,865 |
| Additional paid-in capital | 24,419,858 | 24,155,158 |
| Retained earnings | 8,200,746 | 8,163,839 |
| Treasury stock, 782,837 shares at April 30, 2013 and April 30, 2012, at cost | (6,932,035) | (6,932,035) |
| Accumulated other comprehensive loss | (5,539) | (5,539) |
| Total stockholders' equity | 27,706,735 | 27,386,288 |
| Total liabilities and stockholders' equity | $ 46,523,986 | $ 49,172,913 |
| Nevada Gold & Casinos, Inc. | ||||
| Consolidated Statements of Operations | ||||
| Three Months Ended | Twelve Months Ended | |||
| April 30, | April 30, | April 30, | April 30, | |
| 2013 | 2012 | 2013 | 2012 | |
| Revenues: | ||||
| Casino | $ 14,460,843 | $ 14,269,776 | $ 57,592,806 | $ 47,445,348 |
| Food and beverage | 2,510,539 | 3,060,696 | 10,103,913 | 11,409,426 |
| Other | 634,239 | 762,920 | 2,608,837 | 2,456,028 |
| Gross revenues | 17,605,621 | 18,093,392 | 70,305,556 | 61,310,802 |
| Less promotional allowances | (1,086,239) | (1,525,298) | (4,381,638) | (5,682,168) |
| Net revenues | 16,519,382 | 16,568,094 | 65,923,918 | 55,628,634 |
| Expenses: | ||||
| Casino | 8,100,186 | 8,123,667 | 32,767,931 | 25,596,310 |
| Food and beverage | 1,270,391 | 1,084,429 | 4,838,447 | 4,202,546 |
| Marketing and administrative | 4,095,165 | 4,692,780 | 16,652,746 | 16,750,411 |
| Facility | 564,070 | 582,520 | 2,270,774 | 2,112,397 |
| Corporate and legal expense | 795,360 | 756,113 | 4,051,972 | 3,661,354 |
| Depreciation and amortization | 498,764 | 628,144 | 2,126,888 | 2,004,311 |
| Acquisition costs | -- | 82,966 | -- | 173,852 |
| Valuation allowance of assets | -- | 4,574,904 | -- | 6,848,870 |
| (Recovery) write-off of project development costs | -- | (10,249) | 257,733 | (10,249) |
| Valuation allowance of project development costs | -- | 1,700,000 | -- | 1,700,000 |
| Other | 138,204 | 213,659 | 558,757 | 594,764 |
| Total operating expenses | 15,462,140 | 22,428,933 | 63,525,248 | 63,634,566 |
| Operating income (loss) from continuing operations | 1,057,242 | (5,860,839) | 2,398,670 | (8,005,932) |
| Non-operating income (expenses): | ||||
| Loss on settlements - sale of assets | (986) | (32,092) | (6,081) | (54,746) |
| Unrealized gains (losses) on available-for-sale securities | -- | -- | -- | -- |
| Interest income | 34,398 | 42,524 | 120,349 | 171,075 |
| Interest expense | (345,512) | (400,634) | (1,494,989) | (1,552,948) |
| Amortization of loan issue costs | (81,643) | (74,765) | (329,387) | (194,249) |
| Loss on extinguishment of debt | -- | -- | -- | (154,270) |
| Income (loss) before income tax | 663,499 | (6,325,806) | 688,562 | (9,791,070) |
| Income tax (expense) benefit | (211,065) | 1,994,383 | (560,052) | 3,351,776 |
| Net income (loss) from continuing operations | $ 452,434 | $ (4,331,423) | $ 128,510 | $ (6,439,294) |
| Net loss from operations held for sale, net of taxes | -- | (996,649) | (91,603) | (1,489,290) |
| Net income (loss) | $ 452,434 | $ (5,328,072) | $ 36,907 | $ (7,928,584) |
| Per share information: | ||||
| Net income (loss) per common share - basic and diluted for continuing operations | $ 0.03 | $ (0.27) | $ 0.01 | $ (0.45) |
| Net loss per common share - basic and diluted for discontinued operations | $ -- | $ (0.06) | $ (0.01) | $ (0.10) |
| Basic weighted average number of shares outstanding | 16,065,719 | 15,893,950 | 15,997,546 | 14,381,896 |
| Diluted weighted average number of shares outstanding | 16,110,304 | 15,893,950 | 16,020,789 | 14,381,896 |