HOUSTON, Dec. 10, 2009 (GLOBE NEWSWIRE) -- Nevada Gold & Casinos, Inc. (NYSE Amex:UWN) today announced financial results for the fiscal second quarter ended October 31, 2009.
Quarterly highlights included:
* Net revenues increased to $5.7 million compared to $1.5 million in the second quarter ended October 31, 2008; * Net loss declined to $0.4 million compared to a net loss of $1.6 million a year ago. The improvement of $1.2 million is primarily related to the addition of the Washington casino revenue, SunCruz management fees, increased bet limits and extended hours at the Colorado Grande Casino and in the prior year, recording of an after tax write-off of $0.8 million related to an investment deposit; * Net loss per basic and diluted common share of $0.03, compared to a net loss per basic and diluted common share of $0.13 in the year ago period. Last year results include the write-off of the investment deposit. The prior year net loss per basic and diluted common share would have been $0.06 if the write-off had not occurred; * EBITDA* of $17,000; positive for the first time since October 2005, one year prior to the current management team joining the Company in October 2006; * Installation of player tracking systems in all three recently acquired Washington Casinos;
"We are pleased with our performance as this was the first full quarter of increased bet limits and extended gaming hours in Cripple Creek as well as the first full quarter of ownership of the Washington Casinos. In Cripple Creek, we will be remodeling the guest rooms at that location to further enhance the guest experience. In Washington, we just completed the installation of a player tracking system at all three locations," said Robert Sturges, CEO of Nevada Gold. "Importantly, we are reporting positive EBITDA and for the first time since the current management team joined the company. Our efforts have created a sustainable operating asset base from which we can build upon as we continue to look for additional acquisition opportunities."
Financial Results
For the second quarter of fiscal 2010, net revenues increased to $5.7 million compared to $1.5 million in the second quarter of fiscal 2009. Operating expenses increased to $6.2 million from $3.7 million in the second quarter of 2009. The increase is primarily due to the addition of three mini casinos in Washington and the addition of table games at the Colorado Grande casino.
Net loss for the second quarter of fiscal 2010 was $0.4 million compared to a net loss of $1.6 million in the second quarter of fiscal 2009. Net loss per diluted common share was $0.03, compared to a net loss per diluted common share of $0.13 in the prior year period.
Basic and diluted weighted average common shares outstanding in the second quarter of each fiscal year was 12.9 million.
Earnings Conference Call and Webcast
The Company will host a conference call to discuss second quarter 2010 financial results today at 5:00 PM EST. The conference call can be accessed live over the phone by dialing (877) 681-3372, or, for international callers, (719) 325-4803. 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 4346221. The replay will be available until Thursday, December 17, 2009. The call will be webcast live from the Company's website at www.NevadaGold.com under the investor relations section.
* EBITDA is "earnings before interest, income taxes, depreciation and amortization." EBITDA is presented solely as a supplemental disclosure because management believes that it is 1) a widely used measure of operating performance in the gaming industry, and 2) a principal basis for valuation of gaming companies. Management uses EBITDA as the primary measure of the properties' performance. EBITDA should not be construed as an alternative to net income, as an indicator of the Company's operating performance; or as an alternative to any other measure determined in accordance with U.S. generally accepted accounting principles.
A reconciliation of EBITDA to net loss for the second quarter of fiscal 2010 is reflected below:
Net loss $ (444,115)
Interest, net 206,701
Income taxes (263,685)
Depreciation and amortization 517,985
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EBITDA $ 16,886
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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 Amex:UWN) of Houston, Texas is a developer, owner and operator of gaming facilities in Colorado, Washington and the southeastern United States. The Colorado Grande Casino in Cripple Creek, Colorado, the Crazy Moose Casino in Pasco, Washington, the Coyote Bob's Roadhouse Casino in Kennewick, Washington and the Crazy Moose Casino in Mountlake Terrace, Washington are 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
October 31, April 30,
2009 2009
------------ ------------
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 2,818,063 $ 13,834,544
Restricted cash 6,053,355 6,000,000
Accounts receivable 142,529 12,342
Prepaid expenses 307,217 235,847
Income tax receivable 2,414,842 1,872,369
Route 66 settlement agreement
receivable 1,597,183 --
Notes receivable, current portion -- 1,100,000
Other current assets 154,707 46,444
------------ ------------
Total current assets 13,487,896 23,101,546
------------ ------------
Investments in development projects 117,628 746,024
Investments in development projects
held for sale 3,437,932 3,437,932
Notes receivable - development
projects, net of current portion and
allowances 1,700,000 1,700,000
Goodwill 12,952,160 5,462,918
Identifiable intangible assets, net of
accumulated amortization of $350,000
and $0 at October 31, 2009 and
April 30, 2009, respectively 5,481,000 --
Property and equipment, net of
accumulated depreciation of
$2,698,375 and $2,408,595 at
October 31, 2009 and April 30, 2009,
respectively 3,702,971 1,091,549
Deferred tax asset 1,219,162 599,797
Other assets 4,420,464 5,915,220
------------ ------------
Total assets $ 46,519,213 $ 42,054,986
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued
liabilities $ 954,369 $ 846,062
Deferred tax liability 558,868 --
Other accrued liabilities 454,415 197,833
------------ ------------
Total current liabilities 1,967,652 1,043,895
------------ ------------
Long-term debt 10,000,000 6,000,000
Other liabilities 187,928 44,487
------------ ------------
Total liabilities 12,155,580 7,088,382
------------ ------------
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
October 31, 2009 and April 30, 2009,
respectively 1,672,240 1,672,240
Additional paid-in capital 19,839,413 19,297,560
Retained earnings 23,068,930 24,213,754
Treasury stock, 996,200 shares at
October 31, 2009 and April 30, 2009,
respectively, at cost (10,216,950) (10,216,950)
------------ ------------
Total stockholders' equity 34,363,633 34,966,604
------------ ------------
Total liabilities and stockholders'
equity $ 46,519,213 $ 42,054,986
============ ============
Nevada Gold & Casinos, Inc.
Consolidated Statements of Operations
Three Months Ended Six Months Ended
------------------------ ------------------------
October 31, October 31, October 31, October 31,
2009 2008 2009 2008
----------- ----------- ----------- -----------
Revenues:
Casino $ 4,788,536 $ 1,437,662 $ 8,973,599 $ 2,994,615
Food and beverage 1,234,909 406,552 2,348,675 853,277
Other 218,837 13,076 402,871 26,948
Management fee 250,000 -- 500,000 --
----------- ----------- ----------- -----------
Gross revenues 6,492,282 1,857,290 12,225,145 3,874,840
Less promotional
allowances (751,923) (359,037) (1,427,567) (756,831)
----------- ----------- ----------- -----------
Net revenues 5,740,359 1,498,253 10,797,578 3,118,009
Expenses:
Casino 2,071,139 468,456 3,955,094 986,510
Food and beverage 887,247 197,068 1,721,790 407,209
Marketing and
administrative 1,435,444 690,339 2,676,223 1,359,157
Facility 231,183 86,723 492,031 185,053
Corporate expense 945,368 840,742 2,377,065 2,078,076
Legal expense 38,710 47,405 103,003 99,129
Depreciation and
amortization 517,985 183,748 663,152 348,343
Write-off of
project develop-
ment cost -- 1,203,803 -- 1,203,803
Other 114,382 19,112 223,632 52,228
----------- ----------- ----------- -----------
Total operating
expenses 6,241,458 3,737,396 12,211,990 6,719,508
----------- ----------- ----------- -----------
Operating loss (501,099) (2,239,143) (1,414,412) (3,601,499)
Non-operating
income (expenses):
Loss from
unconsolidated
affiliates -- (4,291) -- (7,863)
Loss on sale of
assets -- (21,083) -- (27,123)
Interest income 46,559 312,859 105,068 792,065
Interest expense (225,490) (393,525) (378,471) (799,917)
Amortization of
loan issue costs (27,770) (32,209) (59,979) (63,848)
----------- ----------- ----------- -----------
Loss before income
tax benefit (707,800) (2,377,392) (1,747,794) (3,708,185)
Income tax benefit 263,685 756,094 602,970 1,260,783
----------- ----------- ----------- -----------
Net loss $ (444,115) $(1,621,298) $(1,144,824) $(2,447,402)
=========== =========== =========== ===========
Per share
information:
Net loss per common
share - basic $ (0.03) $ (0.13) $ (0.09) $ (0.19)
=========== =========== =========== ===========
Net loss per common
share - diluted $ (0.03) $ (0.13) $ (0.09) $ (0.19)
=========== =========== =========== ===========
Basic weighted
average number of
shares outstanding 12,939,130 12,939,130 12,939,130 12,939,130
=========== =========== =========== ===========
Diluted weighted
average number of
shares outstanding 12,939,130 12,939,130 12,939,130 12,939,130
----------- ----------- ----------- -----------