HOUSTON, March 17, 2010 (GLOBE NEWSWIRE) -- Nevada Gold & Casinos, Inc. (NYSE Amex:UWN) today announced financial results for the fiscal third quarter ended January 31, 2010.
Quarterly highlights and subsequent events included:
- Net revenues increased to $5.2 million compared to $1.4 million in the third quarter ended January 31, 2009;
- Net loss of $0.5 million compared to a net loss of $0.5 million a year ago;
- Net loss per basic and diluted common share of $0.04, compared to a net loss per basic and diluted common share of $0.04 in the year ago period;
- Signed management and technical services contracts for the development and management of a hotel and casino adjacent to the Las Vegas Motor Speedway in North Las Vegas.
"The third quarter is our seasonally weakest quarter, but we are pleased with our performance. We are also seeing encouraging trends in the Colorado and Washington markets versus this time last year and are very encouraged by our preliminary results from our recently installed player tracking system and nine spot tables in our Washington casinos," said Robert Sturges, CEO of Nevada Gold. "We are also very excited about our recently announced management and technical services contracts for the development and management of a hotel and casino across from the Las Vegas Motor Speedway. Niche opportunities like this development and acquisitions still remain to be a main focus of this management team. We continue to believe that we're in a buyers' market and there are a number of additional interesting prospects that we're actively reviewing."
Financial Results
For the third quarter of fiscal 2010, net revenues increased to $5.2 million compared to $1.4 million in the third quarter of fiscal 2009. The Company had decreased management fees of $0.1 million in the third quarter of 2010 compared to $0.2 million in the third quarter of 2009, due to the termination of the management agreement with SunCruz. Operating expenses increased to $5.9 million from $2.3 million in the third 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 third quarter of fiscal 2010 was $0.5 million compared to a net loss of $0.5 million in the third quarter of fiscal 2009. Net loss per diluted common share was $0.04, compared to a net loss per diluted common share of $0.04 in the prior year period.
Basic and diluted weighted average common shares outstanding in the third quarter of each fiscal year were 12.9 million.
Earnings Conference Call and Webcast
The Company will host a conference call to discuss third quarter 2010 financial results today at 5:00 PM ET. The conference call can be accessed live over the phone by dialing (888) 204-4517, or, for international callers, (913) 312-0666. 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 3419818. The replay will be available until Wednesday, March 24, 2010. 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 Indian 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 and Washington. 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. 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 30, | |||
| 2010 | 2009 | |||
| (unaudited) | ||||
| ASSETS | ||||
| Current assets: | ||||
| Cash and cash equivalents | $3,733,161 | $13,834,544 | ||
| Restricted cash | 6,164,822 | 6,000,000 | ||
| Accounts receivable | 211,056 | 12,342 | ||
| Prepaid expenses | 333,100 | 235,847 | ||
| Income tax receivable | 1,076,249 | 1,872,369 | ||
| Route 66 settlement agreement receivable | 1,597,183 | -- | ||
| Notes receivable, current portion | -- | 1,100,000 | ||
| Other current assets | 149,510 | 46,444 | ||
| Total current assets | 13,265,081 | 23,101,546 | ||
| Investments in development projects | 154,219 | 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 $525,000 and $0 at January 31, 2010 and April 30, 2009, respectively |
5,306,000 | -- | ||
| Property and equipment, net of accumulated depreciation of $2,844,206 and $2,408,595 at January 31, 2010 and April 30, 2009, respectively | 3,595,324 | 1,091,549 | ||
| Deferred tax asset | 1,219,986 | 599,797 | ||
| Other assets | 4,437,762 | 5,915,220 | ||
| Total assets | $46,068,464 | $42,054,986 | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
| Current liabilities: | ||||
| Accounts payable and accrued liabilities | $1,075,453 | $846,062 | ||
| Deferred tax liability | 558,868 | -- | ||
| Other accrued liabilities | 579,826 | 197,833 | ||
| Total current liabilities | 2,214,147 | 1,043,895 | ||
| Long-term debt | 10,000,000 | 6,000,000 | ||
| Other liabilities | 184,493 | 44,487 | ||
| Total liabilities | 12,398,640 | 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 12,764,130 and 12,939,130 shares outstanding at January 31, 2010 and April 30, 2009, respectively | 1,672,240 | 1,672,240 | ||
| Additional paid-in capital | 19,843,574 | 19,297,560 | ||
| Retained earnings | 22,523,210 | 24,213,754 | ||
| Treasury stock, 1,171,200 and 996,200 shares at January 31, 2010 and April 30, 2009, respectively, at cost | (10,369,200) | (10,216,950) | ||
| Total stockholders' equity | 33,669,824 | 34,966,604 | ||
| Total liabilities and stockholders' equity | $46,068,464 | $42,054,986 | ||
| Nevada Gold & Casinos, Inc. | ||||||||
| Consolidated Statements of Operations | ||||||||
| (unaudited) | ||||||||
| Three Months Ended | Nine Months Ended | |||||||
| January 31, | January 31, | January 31, | January 31, | |||||
| 2010 | 2009 | 2010 | 2009 | |||||
| Revenues: | ||||||||
| Casino | $4,469,523 | $1,181,539 | $13,443,121 | $4,176,153 | ||||
| Food and beverage | 1,074,962 | 264,292 | 3,423,638 | 1,117,568 | ||||
| Other | 223,777 | 11,693 | 626,648 | 38,643 | ||||
| Management and consulting fees | 120,968 | 243,382 | 620,968 | 243,382 | ||||
| Gross revenues | 5,889,230 | 1,700,906 | 18,114,375 | 5,575,746 | ||||
| Less promotional allowances | (683,406) | (330,455) | (2,110,972) | (1,087,286) | ||||
| Net revenues | 5,205,824 | 1,370,451 | 16,003,403 | 4,488,460 | ||||
| Expenses: | ||||||||
| Casino | 2,224,130 | 401,371 | 6,176,833 | 1,382,509 | ||||
| Food and beverage | 613,408 | 94,507 | 2,337,762 | 507,092 | ||||
| Marketing and administrative | 1,413,210 | 550,190 | 4,089,432 | 1,909,347 | ||||
| Facility | 292,427 | 85,824 | 784,458 | 270,878 | ||||
| Corporate expense | 865,978 | 857,440 | 3,243,043 | 2,936,036 | ||||
| Legal expense | 202 | 75,979 | 103,205 | 175,108 | ||||
| Depreciation and amortization | 333,527 | 162,685 | 996,680 | 511,028 | ||||
| Write-off of project development cost | -- | 11,580 | -- | 1,215,383 | ||||
| Other | 112,041 | 25,786 | 335,500 | 77,489 | ||||
| Total operating expenses | 5,854,923 | 2,265,362 | 18,066,913 | 8,984,870 | ||||
| Operating loss | (649,099) | (894,911) | (2,063,510) | (4,496,410) | ||||
| Non-operating income (expenses): | ||||||||
| Loss from unconsolidated affiliates | -- | -- | -- | (7,863) | ||||
| Gain on sale of unconsolidated affiliate | -- | 430,510 | -- | 430,510 | ||||
| Loss on sale of assets | -- | -- | -- | (27,123) | ||||
| Interest income | 44,944 | 112,885 | 150,012 | 904,951 | ||||
| Interest expense | (246,940) | (323,514) | (625,411) | (1,123,433) | ||||
| Amortization of loan issue costs | (25,552) | (32,209) | (85,531) | (96,056) | ||||
| Loss before income tax benefit | (876,647) | (707,239) | (2,624,440) | (4,415,424) | ||||
| Income tax benefit | 330,925 | 240,461 | 933,895 | 1,501,244 | ||||
| Net loss | $(545,722) | $(466,778) | $(1,690,545) | $(2,914,180) | ||||
| Per share information: | ||||||||
| Net loss per common share - basic | $(0.04) | $(0.04) | $(0.13) | $(0.23) | ||||
| Net loss per common share -- diluted | $(0.04) | $(0.04) | $(0.13) | $(0.23) | ||||
| Basic weighted average number of common shares outstanding | 12,866,847 | 12,939,130 | 12,915,036 | 12,939,130 | ||||
| Diluted weighted average number of common shares outstanding | 12,866,847 | 12,939,130 | 12,915,036 | 12,939,130 | ||||