HOUSTON, March 11, 2009 (GLOBE NEWSWIRE) -- Nevada Gold & Casinos, Inc. (NYSE Alternext US:UWN) today announced financial results for the third quarter ended January 31, 2009.
For the third quarter of fiscal 2009, the Company's net loss was $0.5 million, which includes a $0.3 million gain on the sale of our 40% interest in Buena Vista Development, compared to net income of $27.0 million in the third quarter of fiscal 2008. In the third quarter of fiscal 2008 the Company recorded a pre-tax gain of $39.2 million on the sale of unconsolidated affiliates including the Company's interest in Isle of Capri-Black Hawk, offset by a $2.4 million impairment of a note receivable and related interest and $8.2 million of income tax expense.
The Company recorded a net loss per basic and diluted common share of $0.04, compared to a net income per basic and diluted common share of $2.08 in the year ago period. When adjusted for the non-recurring items of gain on sale of unconsolidated affiliates and impairment expense, the basic and diluted loss per share would have been $0.06 in the third quarter of fiscal 2009 compared to a basic and diluted loss per share of $0.09 in the third quarter of last year. Net revenues decreased to $1.37 million compared to $1.41 million in the third quarter ended January 27, 2008. Loss before income tax benefit for the third quarter of fiscal 2009 was $0.7 million compared to net income before income tax expense of $35.2 million in the third quarter of fiscal 2008. The Company's cash position of $25.3 million at the end of January 2009 includes restricted cash of $10 million. On March 5, 2009, the Company used $4.0 million of the restricted cash to repay a portion of its long-term debt.
Robert Sturges, CEO of Nevada Gold, commented, "We are very pleased with what our executive team has done during the past two years to restructure our balance sheet, dispose of non-core assets, dramatically reduce our operating expenses and our debt and put this company in a position to grow again. The sale of our interest in Buena Vista gives us substantial liquidity and enhances our ability to effectively pursue our acquisition strategy."
"We are very encouraged by the initial results from our management contract with SunCruz. So far, there has been a dramatic improvement in SunCruz's financial performance, which highlights the talent, experience and discipline our management team has to offer other properties," concluded Mr. Sturges.
Financial Results
For the third quarter of fiscal 2009, net revenues decreased to $1.37 million compared to $1.41 million in the third quarter of fiscal 2008. Operating expenses decreased to $2.3 million from $5.4 million in the third quarter of 2008. The decrease is primarily due to $0.5 million of reduced corporate and legal expenses and a $2.4 million impairment of notes receivable and accrued interest in the third quarter of 2008 related to a development project.
The Company did not record equity in earnings from Isle of Capri-Black Hawk during the third quarter of fiscal 2009 compared to $918,000 for the third quarter of fiscal 2008. The sale of Isle of Capri-Black Hawk was completed January 27, 2008.
Net loss for the third quarter of fiscal 2009 was $0.5 million compared to net income of $27.0 million in the third quarter of fiscal 2008. Net loss per diluted common share was $0.04, compared to net income per diluted common share of $2.08 in the prior year period. In the third quarter of 2008 the Company recorded a pre-tax gain of $39.2 million on the sale of unconsolidated affiliates including the Company's interest in Isle of Capri-Black Hawk, offset by a $2.4 million impairment of a note receivable and related interest and $8.2 million of income tax expense.
Diluted weighted average common shares outstanding in the third quarters of 2009 and 2008 were 12.9 million.
Recent Events
On December 12th the Company announced that it signed an agreement to sell its Class B membership interest in Buena Vista Development Company, LLC and its $14.8 million promissory note due from Buena Vista Development to B.V. ORO, LLC. Under the terms of the agreement, B.V. ORO, LLC has agreed to pay Nevada Gold $20 million, of which $16 million was received immediately and $4 million will be received within two years after the opening of the casino. Interest on any unpaid balance will be at the rate of prime plus 1%. The Company will also receive an amount equal to 5% of the cash distributions on the Class B Membership Interest, excluding receipt of the principal and interest on the $14.8 million promissory note.
Earnings Conference Call and Webcast
The Company will host a conference call to discuss third quarter 2009 financial results tomorrow at 5:00 p.m. EDT. The conference call can be accessed live over the phone by dialing (888) 600-4863, or, for international callers, (913) 312-0375. A replay will be available one hour after the call and can be accessed by dialing 888-203-1112, or 719-457-0820 for international callers; the conference ID is 7122949. The replay will be available until Thursday, March 19, 2008. The call will be webcast live from the Company's website at www.NevadaGold.com under the investor relations section.
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 Alternext US:UWN) of Houston, Texas is a developer, owner and operator of gaming facilities in Colorado, California and the southeastern United States. The Colorado Grande Casino in Cripple Creek, Colorado is wholly owned and operated by Nevada Gold. The Company has an interest in Buena Vista Development Company, LLC which is working with the Buena Vista Rancheria of Me-Wuk Indians on a Native American casino project to be developed in the city of Ione, California. The Company also has a management contract with Oceans Casino Cruises, Inc., owner of SunCruz Casinos, the largest day cruise casino company in the United States. For more information, visit www.nevadagold.com.
The Nevada Gold & Casinos, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=1552
Nevada Gold & Casinos, Inc.
Consolidated Balance Sheets
January 31, April 27,
2009 2008
----------- -----------
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $15,314,233 $ 1,396,313
Restricted cash 10,000,000 13,014,000
Accounts receivable 35,892 2,313,593
Accounts receivable - affiliates 46,174 57,359
Prepaid expenses 195,857 369,025
Notes receivable, current portion 1,100,000 1,100,000
Other current assets 48,175 54,446
----------- -----------
Total current assets 26,740,331 18,304,736
----------- -----------
Investments in unconsolidated affiliates -- 154,969
Investments in development projects 669,740 2,407,562
Investments in development projects held
for sale 3,437,932 3,437,932
Notes receivable, net of current portion -- 1,100,000
Notes receivable - affiliates, net of
current portion -- 3,521,066
Notes receivable - development projects,
net of current portion and allowances 1,700,000 16,510,200
Goodwill 5,462,918 5,462,918
Property and equipment, net of
accumulated depreciation of $2,304,264
and $1,808,883 at January 31, 2009 and
April 27, 2008, respectively 984,700 1,327,275
Deferred tax asset 3,386,970 1,885,726
Other assets 5,892,565 6,780,317
=========== ===========
Total assets $48,275,156 $60,892,701
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $ 535,935 $ 1,097,277
Accrued interest payable -- 115,027
Other accrued liabilities 212,488 203,071
Taxes payable 273,054 3,911,475
------------ ------------
Total current liabilities 1,021,477 5,326,850
------------ ------------
Long-term debt, net of current portion 10,000,000 15,550,000
Other liabilities 47,627 56,505
------------ ------------
Total liabilities 11,069,104 20,933,355
------------ ------------
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 January 31, 2009 and
April 27, 2008, respectively 1,672,240 1,672,240
Additional paid-in capital 19,263,052 19,092,706
Retained earnings 26,487,710 29,401,890
Treasury stock, 996,200 shares at
January 31, 2009 and April 27, 2008,
respectively, at cost (10,216,950) (10,216,950)
Accumulated other comprehensive income -- 9,460
------------ ------------
Total stockholders' equity 37,206,052 39,959,346
------------ ------------
Total liabilities and stockholders'
equity $ 48,275,156 $ 60,892,701
============ ============
Nevada Gold & Casinos, Inc.
Consolidated Statements of Operations
(unaudited)
Three Months Ended Nine Months Ended
------------------------ ------------------------
January 31, January 27, January 31, January 27,
2009 2008 2009 2008
----------- ----------- ----------- -----------
Revenues:
Casino $ 1,181,539 $ 1,446,103 $ 4,176,153 $ 5,141,177
Food and
beverage 264,292 271,979 1,117,568 1,100,990
Other 11,693 18,258 38,643 87,564
Management and
consulting fees 243,382 -- 243,382 40,174
----------- ----------- ----------- -----------
Gross revenues 1,700,906 1,736,340 5,575,746 6,369,905
Less
promotional
allowances (330,455) (324,061) (1,087,286) (1,113,602)
----------- ----------- ----------- -----------
Net revenues 1,370,451 1,412,279 4,488,460 5,256,303
Expenses:
Casino 401,371 492,417 1,382,509 1,452,603
Food and
beverage 94,507 124,636 507,092 529,999
Marketing and
administrative 550,190 708,357 1,909,347 2,208,425
Facility 85,824 92,671 270,878 276,292
Corporate
expense 857,440 1,259,687 2,936,036 4,009,416
Legal expense 75,979 156,814 175,108 595,875
Depreciation
and
amortization 162,685 175,059 511,028 579,439
Impairment of
unconsolidated
affiliate -- -- -- 100,000
Impairment of
note receivable
and related
interest -- 2,361,702 -- 2,361,702
Write-off of
project
development
cost 11,580 -- 1,215,383 --
Other 25,786 15,574 77,489 39,897
----------- ----------- ----------- -----------
Total
operating
expenses 2,265,362 5,386,917 8,984,870 12,153,648
----------- ----------- ----------- -----------
Operating loss (894,911) (3,974,638) (4,496,410) (6,897,345)
Non-operating
income
(expenses):
Earnings (loss)
from
unconsolidated
affiliates -- 917,947 (7,863) 4,061,415
Gain on sale of
unconsolidated
affiliate 430,510 39,208,732 430,510 40,505,155
Gain (loss) on
sale of assets -- (15,207) (27,123) 3,779
Gain on
settlement of
development
project -- -- -- 14,500
Interest
income 112,885 479,277 904,951 1,510,638
Interest
expense (323,514) (1,155,977) (1,123,433) (3,419,507)
Amortization of
loan issue
costs (32,209) (303,247) (96,056) (645,487)
----------- ----------- ----------- -----------
Income (loss)
before income
tax (expense)
benefit (707,239) 35,156,887 (4,415,424) 35,133,148
Income tax
(expense)
benefit
Current -- (8,219,205) -- (8,257,121)
Deferred 240,461 16,957 1,501,244 16,957
----------- ----------- ----------- -----------
Total income
tax (expense)
benefit 240,461 (8,202,248) 1,501,244 (8,240,164)
----------- ----------- ------------ -----------
Net income (loss)$ (466,778) $26,954,639 $(2,914,180) $26,892,984
=========== =========== ============ ===========
Per share
information:
Net income (loss)
per common
share - basic $ (0.04) $ 2.08 $ (0.23) $ 2.08
=========== =========== ============ ===========
Net income (loss)
per common
share - diluted $ (0.04) $ 2.08 $ (0.23) $ 2.08
=========== =========== ============ ===========
Basic weighted
average number
of common shares
outstanding 12,939,130 12,939,130 12,939,130 12,939,130
=========== =========== ============ ===========
Diluted weighted
average number
of common shares
outstanding 12,939,130 12,939,130 12,939,130 12,946,398
=========== =========== ============ ===========