Nevada Gold & Casinos Reports Fourth Quarter and Fiscal Year 2017 Results

LAS VEGAS, July 27, 2017 (GLOBE NEWSWIRE) -- Nevada Gold & Casinos, Inc. (NYSE MKT:UWN) today announced financial results for the fourth quarter and year ended April 30, 2017. The Company will host a conference call today at 4:30 PM ET (1:30 PM PT) to discuss these results and provide a corporate update.

For the fourth quarter of fiscal 2017, the Company reported net revenues of $19.8 million compared to $19.9 million in the fourth quarter of fiscal 2016. Operating income was $1.9 million compared to $0.4 million in the prior year which was impacted by impairment charges of $1.2 million. Net income was $1.2 million, or $0.07 per share. Consolidated Adjusted EBITDA was $2.6 million compared to $2.5 million in the prior year period.

During the fourth quarter, net revenues from Washington state gaming operations increased to $14.9 million from the $14.6 million in the prior year period, while EBITDA decreased slightly to $2.5 million compared to $2.6 million in the prior year period. Club Fortune net revenues were $3.5 million compared to $3.7 million in the prior year period, while EBITDA increased to a quarterly record of $0.8 million from $0.5 million in the prior period due to improved operating and marketing efficiencies. South Dakota route operation revenues decreased $214,000 from the prior year period, primarily reflecting 47 fewer units in operation, and EBITDA declined $61,000 for the quarter. Corporate expenses were $0.6 million in both periods.

“The fourth quarter saw our luck change in Washington as the table hold percentage improved, and at Club Fortune, our operating and marketing initiatives contributed to significant EBITDA improvement on slightly lower revenues,” said President and CEO, Michael Shaunnessy.

For the fiscal year 2017, the Company reported net revenues of $74.6 million compared to $70.2 million in fiscal year 2016. This increase was due to a full year of operations at Club Fortune which was acquired December 1, 2015, which more than offset the decrease in revenues from our Washington segment. Operating expenses increased $6.0 million primarily due to a full year of Club Fortune operations. Net income was $0.6 million compared to $1.3 million in the prior year.

“Fiscal 2017 was challenging due to lower table hold percentages in Washington and major road construction at Club Fortune,” said President and CEO Michael Shaunnessy. “With the construction behind us and hold percentages returning to normal, we had a strong fourth quarter to finish out the year and set the stage for 2018.”

Net revenues for the fiscal year from Washington state gaming operations decreased $2.3 million to $54.4 million, while Adjusted EBITDA decreased $2.1 million from a record $9.1 million in the prior year. Revenues were impacted by approximately $0.8 million due to a lower than expected table games hold percentage. Club Fortune net revenues were $13.5 million and Adjusted EBITDA was $1.5 million in its first full year of operation. South Dakota route operation revenues decreased $0.8 million to $6.7 million while Adjusted EBITDA decreased $0.2 million to $0.2 million. Corporate adjusted EBITDA was negative $2.5 million compared to negative $2.4 million in the prior year.

During the fiscal year the Company repaid $4.9 million in bank debt and as of April 30, 2017, the outstanding bank debt was $12.3 million and unrestricted cash on hand was $10.6 million. In July 2016, the Board of Directors authorized a share repurchase program of $2.0 million and during the year we purchased 296,665 shares at an average cost of $1.89. On July 12, 2017 we announced the purchase of 755,644 shares at a price of $2.15 per share completing this authorization. The Board has approved an additional $2.0 million share buyback.

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, exclusion of net income or loss from operations held for sale, and net losses/gains from asset dispositions. Adjusted EBITDA does not take into account greater or less than expected hold percentages in the gaming operations. Adjusted EBITDA is presented because it is a required component of financial ratios reported by us to our lenders, 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.

Net income (loss) reconciliation to Adjusted EBITDA:

For the three months ended
April 30, 2017 April 30, 2016
Net income (loss) $1,196,560 $(241,290)
Adjustments:
Net interest expense 149,772 248,893
Income tax expense 578,237 409,271
Depreciation and amortization 714,652 869,414
Club Fortune acquisition expenses - 12,181
Write downs and other charges - 1,185,000
Deferred rent amortization 5,168 14,430
Stock compensation amortization 2,980 28,675
Employee stock purchase discount - 25
(Gain) decrease in swap fair value (23,865) (26,282)
Loss (gain) on disposal of assets 20,693 5,291
Adjusted EBITDA $2,644,197 $2,505,608


For the fiscal year ended
April 30, 2017 April 30, 2016
Net income $563,964 $1,301,046
Adjustments:
Net interest expense 666,543 628,315
Income tax expense 790,829 1,221,497
Depreciation and amortization 3,021,280 2,608,616
Club Fortune acquisition expenses 113,900 641,472
Write downs and other charges 1,101,472 1,185,000
Deferred rent amortization 36,068 35,900
Stock compensation amortization 124,279 164,698
Employee stock purchase discount - 4,671
(Gain) decrease in swap fair value (250,385) 217,781
Loss (gain) on disposal of assets 77,183 (158,411)
Adjusted EBITDA $6,245,133 $7,850,585

Conference Call and Webcast
The Company will host a conference call at 4:30 PM ET (1:30 PM PT) today to discuss the financial results and provide a corporate update. The call can be accessed live by dialing (877) 780-3379. International callers can access the call by dialing (719) 457-2631.

A telephone replay of the conference call will be available after 7:30 PM ET and can be accessed by dialing (844) 512-2921. International callers can access the replay by dialing (412) 317-6671; the pin number is 3065863. The replay will be available through August 3, 2017.

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 9 gaming operations in Washington (wagoldcasinos.com), a local casino in Henderson, Nevada (clubfortune.com), and a slot route operation in Deadwood, South Dakota (dakotaplayersclub.com). For more information, visit www.nevadagold.com.


Nevada Gold & Casinos, Inc.
Consolidated Statements of Operations
Three Months Ended
Twelve Months Ended
April 30, April 30, April 30, April 30,
2017
2016
2017
2016
Revenues:
Casino $17,564,894 $17,625,233 $66,006,576 $62,122,367
Food and beverage 3,424,377 3,581,609 13,439,326 11,797,939
Other 517,843 605,067 2,140,113 2,042,519
Gross revenues 21,507,114 21,811,909 81,586,015 75,962,825
Less promotional allowances (1,707,086) (1,947,459) (6,959,066) (5,728,469)
Net revenues 19,800,028 19,864,450 74,626,949 70,234,356
Expenses:
Casino 9,076,452 9,374,581 36,404,244 33,421,887
Food and beverage 1,606,638 1,553,769 6,195,203 5,671,376
Other 75,845 58,829 291,360 238,794
Marketing and administrative 5,336,141 5,266,141 20,920,103 18,615,262
Facility 498,322 514,894 2,126,150 2,025,007
Corporate 570,581 645,939 2,719,003 3,258,187
Depreciation and amortization 714,652 869,414 3,021,280 2,608,616
Loss (gain) on sale of assets 20,693 5,291 77,183 (158,411)
Write downs and other charges - 1,185,000 1,101,472 1,185,000
Total operating expenses 17,899,324 19,473,858 72,855,998 66,865,718
Operating income from continuing operations 1,900,704 390,592 1,770,951 3,368,638
Non-operating income (expenses):
Interest income 15,770 19,350 81,011 94,589
Interest expense and amortization of loan costs (165,542) (268,243) (747,554) (722,903)
Change in swap fair value 23,865 26,282 250,385 (217,781)
Income before income tax 1,774,797 167,981 1,354,793 2,522,543
Income tax expense (578,237) (409,271) (790,829) (1,221,497)
Net income (loss) $1,196,560 $(241,290) $563,964 $1,301,046
Per share information:
Net income (loss) per common share - basic and diluted $0.07 $(0.01) $0.03 $0.08
Basic weighted average number of shares outstanding 17,583,101 17,771,800 17,688,229 17,002,728
Diluted weighted average number of share outstanding 17,918,456 17,771,800 17,990,524 17,298,373

Nevada Gold & Casinos, Inc.
Consolidated Balance Sheets
April 30, April 30,
2017
2016
ASSETS
Current assets:
Cash and cash equivalents $10,631,903 $11,583,107
Restricted cash 1,994,312 1,433,728
Accounts receivable, net of allowances 808,484 665,549
Prepaid expenses 1,209,507 1,206,825
Notes receivable, current portion 383,093 208,294
Inventory and other current assets 423,113 416,022
Total current assets 15,450,412 15,513,525
Real estate held for sale 750,000 750,000
Notes receivable, net of current portion - 900,775
Goodwill 16,923,588 18,025,059
Identifiable intangible assets, net of accumulated
amortization of $8,869,497 and $7,997,790 at April 30,
2017 and April 30, 2016, respectively 4,107,328 5,003,981
Property and equipment, net of accumulated depreciation
of $7,635,620 and $5,641,733 at April 30, 2017 and
April 30, 2016, respectively 13,958,715 15,147,061
Deferred tax asset 1,557,470 2,348,299
Other assets 70,000 70,000
Total assets $ 52,817,513 $ 57,758,700
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities $1,303,571 $1,702,366
Accrued payroll and related 1,925,592 2,094,250
Accrued player's club points and progressive jackpots 2,348,068 1,872,566
Total current liabilities 5,577,231 5,669,182
Long-term debt 12,061,411 16,839,148
Other long-term liabilities 667,110 881,426
Total liabilities 18,305,752 23,389,756
Stockholders' equity:
Common stock, $0.12 par value per share; 50,000,000
shares authorized; 18,627,167 and 18,571,693 shares issued
and 17,547,665 and 17,788,856 shares outstanding at April
30, 2017, and April 30, 2016, respectively
2,235,269 2,228,612
Additional paid-in capital 27,449,319 27,315,517
Retained earnings 12,320,814 11,756,850
Treasury stock, 1,079,502 and 782,837 shares at April 30,
2017 and April 30, 2016, at cost
(7,493,641) (6,932,035)
Total stockholders' equity 34,511,761 34,368,944
Total liabilities and stockholders' equity $52,817,513 $57,758,700


Contacts: Nevada Gold & Casinos, Inc. Michael P. Shaunnessy / James Meier (702) 685-1000 Stonegate Capital Partners Preston Graham (972) 850-2001

Source:Nevada Gold & Casinos, Inc.