HOUSTON, July 24, 2008 (PRIME NEWSWIRE) -- Nevada Gold & Casinos, Inc. (AMEX:UWN) today announced financial results for the fourth quarter and fiscal year ended April 27, 2008.
For the fourth quarter of fiscal 2008 the Company recorded a net loss of $2.2 million compared to a net loss of $1.9 million in the fourth quarter of fiscal 2007 despite a $2.0 million writeoff of a note receivable and accrued interest related to the La Jolla development project, $0.2 million of loss on extinguishment of debt and recording no earnings from unconsolidated affiliates. The Company recorded a net loss per diluted common share of $0.17 compared to a net loss per diluted common share of $0.14 in the prior year period. Net revenues decreased to $1.5 million compared to $1.7 million in the fourth quarter ended April 29, 2007. The net loss before income tax expense for the fourth quarter of fiscal 2008 was $3.4 million compared to income before income tax of $4.0 million in the fourth quarter of fiscal 2007.
The Company also announced it has signed a non-binding Letter of Intent to sell Restaurant Connections International, Inc. ("RCI"), a company that owns 16 Pizza Huts in Sao Paulo, Brazil. Exact terms have not been disclosed, but the proceeds are expected to exceed the $4.7 million debt owed to Nevada Gold as part of a previously announced settlement agreement with RCI. The transaction is subject to customary closing conditions.
Robert Sturges, Chief Executive Officer of Nevada Gold & Casinos, Inc., commented, "We are pleased with our accomplishments in the fourth quarter and throughout fiscal 2008, from both financial and operational perspectives. We have made significant progress disposing of non-core assets, and believe that with legacy issues largely behind us, we are well positioned to focus on a streamlined, growth-oriented portfolio of projects that will ultimately return value to our shareholders. We are excited to move forward with our pending acquisition of the Horizon Casino Hotel, and believe that the improvement in our balance sheet will serve us very well as we look to execute similarly compelling acquisitions in the future."
Financial Results
For the fourth quarter of fiscal 2008, net revenues decreased to $1.5 million compared to $1.7 million in the fourth quarter of fiscal 2007. The revenue decrease is attributable to the impact on our Colorado Grande Casino of the statewide smoking ban enacted in January 2008.
Operating expenses increased to $4.8 million from $4.6 million despite the $2.0 million writeoff of notes receivable and related accrued interest and $0.2 million loss on extinguishment of debt noted above.
The Company did not record equity in earnings from Isle of Capri-Black Hawk during the fourth quarter of fiscal 2008 compared to $1.4 million for the fourth quarter of fiscal 2007. The sale of Isle of Capri-Black Hawk was completed January 27, 2008.
The Company also did not record equity in earnings from American Racing during the fourth quarter of fiscal 2008 compared to a loss of $1.0 million for the same period a year ago. The sale of American Racing was completed during June 2007.
The net loss for the fourth quarter of fiscal 2008 was $2.2 million compared to a net loss of $1.9 million in the fourth quarter of fiscal 2007. The increase in net loss is primarily related to the $2.0 million writeoff offset by the recognition of no equity in earnings from the Isle of Capri-Blackhawk. The net loss per basic and diluted common share for the fourth quarter was $0.17, compared to a net loss per basic and diluted common share of $0.14 in the comparable prior year period.
Basic and diluted weighted average common shares outstanding in the fourth quarters of each fiscal year was 12.9 million.
Conference Call and Webcast
The Company will discuss fourth quarter financial results via the conference call to be held today at 5:00 p.m. ET at www.nevadagold.com, Investor Relations, Events or by dialing (888) 791-4324 or (913) 312-0704 for international callers. If you are unable to participate, the conference call replay will be available by dialing (888) 203-1112 or (719) 457-0820 for international callers. The replay access code is 2163422. The replay will be available until July 31, 2008.
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 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. (AMEX:UWN) of Houston, Texas is a developer, owner and operator of gaming facilities and lodging entertainment facilities in Colorado and California. Colorado Grande Casino in Cripple Creek, Colorado is wholly owned and operated by Nevada Gold. The Company recently reached an agreement to acquire the Horizon Casino Hotel in Vicksburg, Mississippi. The Company also works with Native American tribes in a variety of capacities. Native American projects consist of a casino to be developed by Buena Vista Development Company, LLC in the city of Ione, California for the Buena Vista Rancheria of Me-Wuk Indians. For more information, visit www.nevadagold.com
The Nevada Gold & Casinos, Inc. logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=1552
Nevada Gold & Casinos, Inc.
Consolidated Statements of Operations
-------------------------------------
April 27, April 29, April 30,
2008 2007 2006
----------- ----------- -----------
Revenues:
Casino $ 6,636,652 $ 6,253,491 $ 5,653,340
Food and beverage 1,414,423 1,295,157 1,471,816
Other 101,203 153,305 126,078
Credit enhancement and
management fees 40,174 6,651,304 7,348,651
----------- ----------- -----------
Gross revenues 8,192,452 14,353,257 14,599,885
Less promotional allowances (1,459,539) (1,294,458) (1,450,664)
----------- ----------- -----------
Net revenues 6,732,913 13,058,799 13,149,221
Operating expenses:
Casino 1,935,791 1,655,837 2,566,306
Food and beverage 674,961 721,360 863,703
Marketing and administrative 2,900,887 3,094,554 1,935,257
Facility 377,608 323,906 276,304
Corporate expense 5,001,190 7,203,198 5,778,507
Legal expenses 871,428 1,489,967 1,668,311
Depreciation and amortization 743,783 1,112,718 1,018,699
Write-off of notes receivable
related to gaming projects 4,335,243 3,235,297 1,574,452
Impairment of equity
investment -- 125,000 --
Write-off of project
development cost -- 495,982 286,653
Other 67,439 85,296 126,266
----------- ----------- -----------
Total operating expenses 16,908,330 19,543,115 16,094,458
----------- ----------- -----------
Operating loss (10,175,417) (6,484,316) (2,945,237)
Non-operating income
(expenses):
Earnings (loss) from
unconsolidated affiliates 4,055,446 (3,405,539) 6,917,818
Gain on sale of equity in
investments, marketable
securities and assets, net 40,715,552 42,226 167,948
Gain on termination of
development contract -- 245,499 --
Gain on termination of
development and loan
agreement -- 10,264,006 --
Interest expense, net (2,620,983) (3,553,052) (2,248,550)
Loss on extinguishment of
debt (203,160) -- --
Minority interest -- (4,301,050) (1,308,867)
----------- ----------- -----------
Income (loss) before income
tax expense 31,771,438 (7,192,226) 583,112
Income tax expense
Current 9,949,362 170,347 --
Deferred and change in
valuation allowance (1,885,726) 1,592,827 211,251
----------- ----------- -----------
Total income tax expense 8,063,636 1,763,174 211,251
----------- ----------- -----------
Net income (loss) $23,707,802 $(8,955,400) $ 371,861
=========== =========== ===========
Per share information:
Net income (loss) per common
share - basic $ 1.83 $ (0.69) $ 0.03
=========== =========== ===========
Net income (loss) per common
share - diluted $ 1.83 $ (0.69) $ 0.03
=========== =========== ===========
Basic weighted average
number of shares outstanding 12,939,130 12,937,222 12,975,697
=========== =========== ===========
Diluted weighted average
number of shares outstanding 12,945,151 12,937,222 13,243,750
=========== =========== ===========
Nevada Gold & Casinos, Inc.
Consolidated Balance Sheets
April 27, April 29,
2008 2007
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $ 1,396,313 $ 2,803,560
Restricted cash 13,014,000 1,050,000
Accounts receivable 2,313,593 397,145
Accounts receivable - affilates 57,359 124,685
Prepaid expenses 369,025 474,933
Notes receivable, current portion 1,100,000 --
Notes receivable - development projects,
current portion -- 1,357,904
Other current assets 54,446 55,055
------------ ------------
Total current assets 18,304,736 6,263,282
------------ ------------
Investments in unconsolidated affiliates 154,969 35,201,419
Investments in unconsolidated affiliates
held for sale -- 400,489
Investments in development projects 2,407,562 323,202
Investments in development projects held
for sale 3,437,932 3,914,765
Notes receivable 1,100,000 --
Notes receivable - affiliates 3,521,066 3,521,066
Notes receivable - development projects,
net of current portion 16,510,200 18,012,737
Goodwill 5,462,918 5,462,918
Property and equipment, net of accumulated
depreciation of $1,808,883 and $1,281,191
at April 27, 2008 and April 29, 2007,
respectively 1,327,275 2,063,026
Deferred tax asset 1,885,726 --
Other assets 6,780,317 4,868,442
------------ ------------
Total assets $ 60,892,701 $ 80,031,346
------------ ------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $ 1,097,277 $ 1,540,781
Accrued interest payable 115,027 21,211
Other accrued liabilities 203,071 378,937
Guaranty liabilities -- 4,610,000
Taxes payable 3,911,475 --
Long-term debt, current portion -- 2,066,518
------------ ------------
Total current liabilities 5,326,850 8,617,447
------------ ------------
Long-term debt, net of current portion and
discount 15,550,000 55,021,031
Deferred income -- 8,591
Other liabilities 56,505 742,991
------------ ------------
Total liabilities 20,933,355 64,390,060
------------ ------------
Commitments and contingencies -- --
Stockholders' equity:
Common stock, $0.12 par value per share;
50,000,000 shares authorized; 13,935,330
shares issued and 12,939,130 shares
outstanding at April 27, 2008 and
April 29, 2007, respectively 1,672,240 1,672,240
Additional paid-in capital 19,092,706 18,484,448
Retained earnings 29,401,890 5,694,088
Treasury stock, 996,200 shares at April 27,
2008 and April 29, 2007, (10,216,950) (10,216,950)
Accumulated other comprehensive income 9,460 7,460
------------ ------------
Total stockholders' equity 39,959,347 15,641,286
------------ ------------
Total liabilities and stockholders'
equity $ 60,892,701 $ 80,031,346
------------ ------------