HOUSTON, July 29, 2010 (GLOBE NEWSWIRE) -- Nevada Gold & Casinos, Inc. (NYSE Amex:UWN) today announced financial results for the fourth quarter and fiscal year ended April 30, 2010.
Financial Highlights fourth quarter included:
- Net revenues increased 328% to $6.0 million, compared to $1.4 million in the fourth quarter ended April 30, 2009;
- Non-recurring impairment adjustment of $2.75 million plus a non-recurring valuation allowance of $1.6 million;
- Net loss of $3.1 million compared to a net loss of $1.3 million a year ago; adjusted for non-recurring items net loss was $0.2 million compared to an adjusted net loss of $1.2 million a year ago;
- Net loss per basic and diluted common share of $0.24, compared to a net loss per basic and diluted common share of $0.10 in the year ago period; adjusted for non-recurring items net loss per basic and diluted common share was $0.02 in the fourth quarter of 2010;
- EBITDA* of $0.1 million compared to $(1.5) million in the fourth quarter of 2009
"We are very pleased with our fourth quarter and fiscal year end results when adjusted for non-recurring items. Year-over-year our annual revenues increased 275% to $22 million which is a significant accomplishment for the Company. Our Washington and Colorado locations both continue to perform well," said Robert Sturges, CEO of Nevada Gold. "Last Friday we successfully completed our acquisition of six additional Washington mini-casinos making us the largest owner of mini-casinos in the state of Washington. Niche opportunities like this acquisition will remain a main focus of this management team. With the additional facilities in Washington, we have successfully transformed the Company into an operator of ten casino facilities."
"On an annualized basis we now expect to generate approximately $55.0 to $60.0 million in revenue with the six additional Washington mini-casinos. We also expect that our property level EBITDA will approximate $7.5 to $8.0 million on an annual basis. This will give us an excellent platform to continue to build on as we remain in active dialog regarding a number of other casino acquisition opportunities," concluded Mr. Sturges.
Financial Results
For the fourth quarter of fiscal 2010, net revenues increased to $6.0 million compared to $1.4 million in the fourth quarter of fiscal 2009. The Company did not record a management fee during the fourth quarter of 2010 compared to $0.2 million in the fourth quarter of 2009, due to the termination of the management agreement with SunCruz. Operating expenses increased to $10.7 million from $3.0 million in the fourth quarter of 2009. The increase is primarily due to an asset impairment of the Colorado Grande goodwill of $2.75 million, a valuation allowance of $1.6 million against the Route 66 settlement receivable and the addition of three mini casinos in Washington offset by reductions of corporate overhead and legal expenses.
Net loss for the fourth quarter of fiscal 2010 was $3.1 million compared to a net loss of $1.3 million in the fourth quarter of fiscal 2009. Adjusted for non-recurring items net loss was $0.2 million compared to an adjusted net loss of $1.2 million a year ago. Net loss per diluted common share was $0.24, compared to a net loss per diluted common share of $0.10 in the prior year period. Adjusted for non-recurring items net loss per diluted common share was $0.02 in the fourth quarter of 2010.
Basic and diluted weighted average common shares outstanding in the fourth quarter of each fiscal year were 12.8 million.
Earnings Conference Call and Webcast
The Company will host a conference call to discuss fourth quarter 2010 financial results today at 5:00 PM ET. The conference call can be accessed live over the phone by dialing (888) 715-1394, or, for international callers, (913) 312-1463. 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 4845391. The replay will be available until Thursday, August 5, 2010. The call will be webcast live from the Company's website at www.NevadaGold.com under the investor relations section.
*EBITDA is a commonly used measurement of gaming company results. The term is used to define earnings before interest, income taxes, depreciation, amortization and management fees.
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 following properties are wholly owned and operated by Nevada Gold: Colorado Grande Casino in Cripple Creek, Colorado, the Crazy Moose Casinos in Pasco and Mountlake Terrace, Washington, Coyote Bob's Roadhouse Casino in Kennewick, Washington, the Silver Dollar Casinos in Seatac, Mill Creek and Renton, Washington, the Club Hollywood located in Shoreline, Washington, the Royal Casino located in Everett, Washington and the Golden Nugget Casino located in Tukwila, Washington. 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 has a signed management agreement including equity participation for development of a casino and hotel immediately adjacent to the Las Vegas Motor Speedway. 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. | ||
| Balance Sheet | ||
| (unaudited) | ||
| April 30, | April 30, | |
| 2010 | 2009 | |
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $3,155,736 | $13,834,544 |
| Restricted cash | 5,266,938 | 6,000,000 |
| Accounts receivable | 66,822 | 12,342 |
| Prepaid expenses | 475,262 | 235,847 |
| Income tax receivable | 1,750,374 | 1,872,369 |
| Notes receivable, current portion | -- | 1,100,000 |
| Other current assets | 155,796 | 46,444 |
| Total current assets | 10,870,928 | 23,101,546 |
| Investments in development projects | 1,418,789 | 746,024 |
| Investments in development projects held for sale | 3,437,932 | 3,437,932 |
| Notes receivable - development projects, net of allowances | 1,700,000 | 1,700,000 |
| Goodwill | 10,243,362 | 5,462,918 |
|
Identifiable intangible assets , net of accumulated amortization of $729,000 and $0 at April 30, 2010 and April 30, 2009, respectively |
5,101,800 | -- |
|
Property and equipment, net of accumulated depreciation of $2,978,679 and $2,408,595 at April 30, 2010 and April 30, 2009, respectively |
3,473,051 | 1,091,549 |
| Deferred tax asset | 1,848,419 | 599,797 |
| BVO receivable | 4,000,000 | 4,000,000 |
| Other assets, net of allowances | 376,938 | 1,915,220 |
| Total assets | $42,471,219 | $42,054,986 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Accounts payable and accrued liabilities | $1,060,017 | $846,062 |
| Accrued interest payable | 70,000 | -- |
| Other accrued liabilities | 687,819 | 197,833 |
| Total current liabilities | 1,817,836 | 1,043,895 |
| Long-term debt, net of current portion | 10,000,000 | 6,000,000 |
| Other liabilities | 30,944 | 44,487 |
| Total liabilities | 11,848,780 | 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 April 30, 2010, and April 30, 2009, respectively |
1,672,240 | 1,672,240 |
| Additional paid-in capital | 19,859,966 | 19,297,560 |
| Retained earnings | 19,464,972 | 24,213,754 |
|
Treasury stock, 1,171,200 and 996,200 shares at April 30, 2010 and April 30, 2009, respectively, at cost |
(10,369,200) | (10,216,950) |
| Accumulated other comprehensive loss | (5,539) | -- |
| Total stockholders' equity | 30,622,439 | 34,966,604 |
| Total liabilities and stockholders' equity | $42,471,219 | $42,054,986 |
| Nevada Gold & Casinos, Inc. | ||
| Consolidated Statements of Operations | ||
| (unaudited) | ||
| Fiscal Years Ended | ||
| April 30, | April 30, | |
| 2010 | 2009 | |
| Revenues: | ||
| Casino | $18,822,900 | $5,356,885 |
| Food and beverage | 4,534,744 | 1,395,130 |
| Other | 865,264 | 49,366 |
| Management fees | 620,968 | 493,382 |
| Gross revenues | 24,843,876 | 7,294,763 |
| Less promotional allowances | (2,817,888) | (1,426,511) |
| Net revenues | 22,025,988 | 5,868,252 |
| Operating expenses: | ||
| Casino | 8,562,284 | 1,750,014 |
| Food and beverage | 2,851,635 | 614,779 |
| Marketing and administrative | 5,564,288 | 2,485,881 |
| Facility | 1,070,933 | 362,009 |
| Corporate expense | 4,216,475 | 4,366,670 |
| Legal expenses | 241,468 | 403,694 |
| Depreciation and amortization | 1,344,323 | 627,618 |
| Impairment of assets | 4,347,183 | -- |
| Write-off of project development cost | 50,486 | 1,215,383 |
| Other | 476,395 | 145,018 |
| Total operating expenses | 28,725,470 | 11,971,066 |
| Operating loss | (6,699,482) | (6,102,814) |
| Non-operating income (expenses): | ||
| Loss from unconsolidated affiliates | -- | (7,863) |
| Gain on sale of equity investees | 16,511 | 403,388 |
| Interest income | 192,708 | 975,490 |
| Interest expense | (866,034) | (1,307,296) |
| Amortization of loan issue costs | (58,972) | (128,266) |
| Loss on extinguishment of debt | (128,834) | -- |
| Loss before income tax expense (benefit) | (7,544,103) | (6,167,361) |
| Income tax benefit | ||
| Current | (1,546,698) | (2,265,155) |
| Deferred and change in valuation allowance | (1,248,623) | 285,930 |
| Total income tax benefit | (2,795,321) | (1,979,225) |
| Net loss | $(4,748,782) | $(4,188,136) |
| Per share information: | ||
| Net loss per common share - basic | $(0.37) | $(0.32) |
| Net loss per common share - diluted | $ (0.37) | $(0.32) |
| Basic weighted average number of shares outstanding | 12,878,240 | 12,939,130 |
| Diluted weighted average number of shares outstanding | 12,878,240 | 12,939,130 |