Nevada Gold & Casinos Reports Profit and Revenue Increase for First Quarter 2015 Financial Results

Net Income for Quarter Increases to $354,029

Adjusted EBITDA Increases to $1.2 Million Compared to $0.6 Million for Q1 in the Prior Year

LAS VEGAS, Sept. 15, 2014 (GLOBE NEWSWIRE) -- Nevada Gold & Casinos, Inc. (NYSE MKT:UWN) today announced financial results for the first quarter ended July 31, 2014.

For the first quarter of fiscal 2015, the company reported net revenues of $15.9 million compared to $15.7 million in the first quarter of fiscal 2014. Operating expenses were $15.3 million compared to $15.7 million in the prior-year period. Operating income was $0.6 million compared to $23,000. Income before taxes increased to $0.5 million from a loss of $0.4 million in the prior year and net income was $0.4 million, or $0.02 per share, compared to a net loss of $0.2 million, or $0.01 per share, in the prior-year period.

Net revenues from Washington increased to $13.3 million, up 4% from the $12.8 million in the prior year period and adjusted EBITDA increased to $1.5 million compared to $0.9 million in the prior year. South Dakota route revenues decreased to $2.6 million compared to $2.8 million in the prior year period, and adjusted EBITDA decreased by $86,000. Corporate expenses were $0.6 million, essentially even with the prior year. On a consolidated basis, adjusted EBITDA increased to $1.2 million from $0.6 million in the prior year quarter.

"The revenue improvement in Washington, coupled with very tight cost controls, enabled us to significantly drive EBITDA during the quarter. The reduction in net interest expense added further to the quarterly increase in net income," said Michael P. Shaunnessy, President and CEO. "We will continue to focus on generating consistent operating results and using the free cash flow to reduce debt, while exploring new revenue opportunities that complement our current gaming properties and diversify our revenue stream."

Basic and diluted weighted average common shares outstanding in the first quarter of fiscal 2015 were 16.2 million and 16.3 million respectively, compared to 16.1 million basic and diluted in the first quarter of fiscal 2014.

Conference Call and Webcast

The Company will host a conference call to discuss first quarter 2015 financial results on September 16, 2014, at 4:30 pm ET. The call can be accessed live by dialing (888) 233-8128. International callers can access the call by dialing (913) 312-0982. A simultaneous webcast of the call will be available by visiting

A telephone replay of the conference call will be available after 7:30 pm ET and can be accessed by dialing (877) 870-5176. International callers can access the replay by dialing (858) 384-5517; the pin number is 5553801. The replay will be available through September 23, 2014. The archived webcast will also be available on the company's website at

(1) Non-GAAP Information

The term "adjusted EBITDA" is used by us in presentations, quarterly earnings calls, and other instances as appropriate. Adjusted EBITDA is defined as net income before interest, income taxes, depreciation and amortization, non-cash goodwill and other long-lived asset impairment charges, write-offs of project development costs, litigation charges, non-cash stock grants, non-cash employee stock purchase plan discounts, and net losses/gains from asset dispositions. Adjusted EBITDA excludes the impact of slot and table games hold percentages compared to the prior period. Adjusted EBITDA is presented because it is a required component of financial ratios reported by us to our lender, and it is also frequently used by securities analysts, investors, and other interested parties, in addition to and not in lieu of, U.S. Generally Accepted Accounting Principles ("GAAP") results to compare to the performance of other companies that also publicize this information. Adjusted EBITDA is not a measurement of financial performance under GAAP and should not be considered as an alternative to net income as an indicator of our operating performance or any other measure of performance derived in accordance with GAAP.

The following table reconciles Adjusted EBITDA to net income (loss) for the three months ended July 31, 2014 and 2013:

Adjusted EBITDA reconciliation to net income (loss):
For the three months ended
July 31, 2014 July 31, 2013
Net income (loss) $ 354,029 $ (215,827)
Income tax expense (benefit) 153,029 (158,361)
Net interest expense 139,500 397,069
(Gain) loss on sale of assets (8,032) 3,971
Depreciation and amortization 545,035 561,937
Deferred rent 1,099 4,561
Stock options amortization 13,619 13,620
Employee stock purchase discount 1,243 1,830
Adjusted EBITDA $ 1,199,522 $ 608,800

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 & Casinos

Nevada Gold & Casinos, Inc. (NYSE MKT:UWN) of Las Vegas, Nevada is a developer, owner and operator of 10 gaming operations in Washington ( and a slot route operation in Deadwood, South Dakota ( For more information, visit

Nevada Gold & Casinos, Inc.
Consolidated Balance Sheets
July 31, 2014 April 30, 2014
Current assets:
Cash and cash equivalents $ 8,288,939 $ 7,738,985
Restricted cash 1,517,532 1,388,995
Accounts receivable, net of allowances of $42,098 at July 31, 2014 and April 30, 2014, respectively 683,443 252,504
Prepaid expenses 1,335,317 829,228
Deferred tax asset, current portion -- 98,643
Notes receivable, current portion 338,245 332,973
Inventory and other current assets 345,248 344,686
Total current assets 12,508,724 10,986,014
Real estate held for sale 1,100,000 1,100,000
Notes receivable, net of current portion 1,636,126 1,730,246
Goodwill 16,103,583 16,103,583
Intangible assets, net of accumulated amortization of $5,928,539 and $5,619,009 at July 31, 2014 and April 30, 2014, respectively 5,444,637 5,754,167
Property and equipment, net of accumulated depreciation of $3,866,820 and $3,632,349 at July 31, 2014 and April 30, 2014, respectively 4,193,492 4,289,178
Deferred tax asset, net of current portion 4,315,325 4,356,972
Other assets 462,019 486,466
Total assets $ 45,763,906 $ 44,806,626
Current liabilities:
Accounts payable and accrued payroll $ 2,219,254 $ 1,427,010
Accrued interest payable 38,071 37,470
Other accrued liabilities 2,367,148 2,178,317
Deferred tax liability, current portion 12,741 --
Long-term debt, current portion 1,650,000 1,625,000
Total current liabilities 6,287,214 5,267,797
Long-term debt, net of current portion 10,300,000 10,725,000
Other long-term liabilities 469,662 486,870
Total liabilities 17,056,876 16,479,667
Stockholders' equity:
Common stock, $0.12 par value per share; 50,000,000 shares authorized; 16,993,104 and 16,980,676 shares issued and 16,210,267 and 16,197,839 shares outstanding at July 31, 2014, and April 30, 2014, respectively 2,039,181 2,037,689
Additional paid-in capital 24,602,667 24,578,117
Retained earnings 9,002,756 8,648,727
Treasury stock, 782,837 shares at July 31, 2014 and April 30, 2014, respectively, at cost (6,932,035) (6,932,035)
Accumulated other comprehensive loss (5,539) (5,539)
Total stockholders' equity 28,707,030 28,326,959
Total liabilities and stockholders' equity $ 45,763,906 $ 44,806,626
Nevada Gold & Casinos, Inc.
Consolidated Statements of Operations
Three Months Ended
July 31,
July 31,
Casino $ 14,151,990 $ 13,948,479
Food and beverage 2,368,941 2,358,309
Other 440,107 432,045
Gross revenues 16,961,038 16,738,833
Less promotional allowances (1,052,424) (1,059,109)
Net revenues 15,908,614 15,679,724
Casino 8,203,967 8,418,066
Food and beverage 1,270,650 1,216,650
Marketing and administrative 4,112,620 4,298,876
Facility 483,666 478,760
Corporate 586,447 617,161
Depreciation and amortization 545,035 561,937
(Gain) loss on sale of assets (8,032) 3,971
Other 67,703 61,422
Total operating expenses 15,262,056 15,656,843
Operating income 646,558 22,881
Non-operating income (expenses):
Interest income 31,155 34,395
Interest expense and amortization of loan issue costs (167,763) (431,464)
Interest rate swap expense (21,200) --
Increase in swap fair value 18,308 --
Income (loss) before income tax (expense) benefit 507,058 (374,188)
Income tax (expense) benefit (153,029) 158,361
Net income (loss) $ 354,029 $ (215,827)
Per share information:
Net income (loss) per common share - basic and diluted $ 0.02 $ (0.01)
Basic weighted average number of shares outstanding 16,200,135 16,087,568
Diluted weighted average number of shares outstanding 16,338,534 16,087,568

CONTACT: Nevada Gold & Casinos, Inc. Michael P. Shaunnessy / James Kohn (702) 685-1000

Source:Nevada Gold & Casinos, Inc.