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Nevada Gold & Casinos Reports First Quarter 2018 Financial Results

LAS VEGAS, Sept. 14, 2017 (GLOBE NEWSWIRE) -- Nevada Gold & Casinos, Inc. (NYSE MKT:UWN) today announced financial results for the first quarter ended July 31, 2017.

For the first quarter of fiscal 2018, the Company reported net revenues of $18.5 million compared to $18.2 million in the first quarter of fiscal 2017. Operating expenses were $18.2 million in both periods. Operating income was $0.3 million compared to $0.1 million and net income was $0.1 million, or $0.01 per share, compared to a net loss of $0.1 million, or $0.01 loss per share, in the prior year period.

Net revenues from the Washington state gaming operations increased to $13.2 million from $13.1 million in the prior year period. Business volumes were down approximately 2%, or $0.2 million, but a higher table games hold percentage, although normal, was responsible for approximately $0.3 million in additional revenue for the quarter. Higher operating expenses, primarily payroll, caused adjusted EBITDA to decrease to $1.2 million compared to $1.4 million in the prior year.

Club Fortune revenues increased to $3.4 million from $3.2 million in the prior year while EBITDA improved significantly to $0.5 million compared to $0.1 million. South Dakota route revenues were $1.9 million in both periods, and adjusted EBITDA was $0.1 million in both periods. Corporate adjusted EBITDA was negative $0.6 million in both periods and on a consolidated basis, adjusted EBITDA was $1.1 million in both periods.

“Our Washington operations faced 44 consecutive days without rain in Seattle during the quarter, on the way to an all time record of 55 days. Our customers were busy enjoying the beautiful outdoors,” said Michael P. Shaunnessy, President and CEO. “At Club Fortune our operating and marketing initiatives continue to yield improved margins and incremental EBITDA.”

The Company’s outstanding bank debt was $12.3 million as of July 31, 2017, and unrestricted cash on hand was $8.3 million.

On July 12, 2017 the Company purchased 755,644 shares of its stock at a price of $2.15 per share which completed the initial $2.0 million authorization. The Board has approved an additional $2.0 million share buyback.

Conference Call and Webcast
The Company will host a conference call at 4:30 PM ET (1:30 PM PT), today, September 14, 2017 to discuss the financial results and to provide a corporate update. The call can be accessed live by dialing (877) 591-4953. International callers can access the call by dialing (719) 457-2628.

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 8900356. The replay will be available through September 21, 2017.

(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, 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.

The following table reconciles net income (loss) to Adjusted EBITDA for the three months ended July 31, 2017 and 2016:

For the three months ended
July 31, 2017 July 31, 2016
Net income (loss) $124,002 $(99,573)
Adjustments:
Net interest expense and change in swap fair value 152,015 217,730
Income tax expense (benefit) 60,332 (47,988)
Depreciation and amortization 711,436 776,512
Acquisition expenses - 113,900
Stock compensation 62,290 72,463
Loss on sale of assets - 8,371
Amortization of deferred rent 724 12,498
Adjusted EBITDA $1,110,799 $1,053,913

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 nine 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.

Contacts:

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

Stonegate Capital Partners
Preston Graham
(972) 850-2001


Nevada Gold & Casinos, Inc.
Consolidated Balance Sheets
July 31, April 30,
2017 2017
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 8,286,433 $ 10,631,903
Restricted cash 2,043,453 1,994,312
Accounts receivable, net of allowances 837,167 808,484
Prepaid expenses 1,875,192 1,209,507
Notes receivable, current portion 307,120 383,093
Inventory and other current assets 428,789 423,113
Total current assets 13,778,154 15,450,412
Real estate held for sale 750,000 750,000
Goodwill 16,923,588 16,923,588
Intangible assets, net of accumulated amortization 3,893,793 4,107,328
Property and equipment, net of accumulated depreciation 13,718,422 13,958,715
Deferred tax asset 1,497,138 1,557,470
Other assets 70,000 70,000
Total assets $ 50,631,095 $ 52,817,513
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities $1,289,222 $1,303,571
Accrued payroll and related 1,207,431 1,925,592
Accrued player's club points and progressive jackpots 2,354,055 2,348,068
Total current liabilities 4,850,708 5,577,231
Long-term debt 12,085,771 12,061,411
Other long-term liabilities 671,797 667,110
Total liabilities 17,608,276 18,305,752
Stockholders' equity:
Common stock, $0.12 par value per share; 50,000,000 shares authorized; 18,671,355 and 18,627,167 shares issued and 16,836,209 and 17,547,665 shares outstanding at July 31, 2017, and April 30, 2017, respectively 2,240,571 2,235,269
Additional paid-in capital 27,455,708 27,449,319
Retained earnings 12,444,816 12,320,814
Treasury stock, 1,835,146 and 1,079,502 shares at July 31, 2017 and April 30, 2017, respectively, at cost (9,118,276) (7,493,641)
Total stockholders' equity 33,022,819 34,511,761
Total liabilities and stockholders' equity $50,631,095 $52,817,513

Nevada Gold & Casinos, Inc.
Consolidated Statements of Operations
(unaudited)
Three Months Ended
July 31, July 31,
2017 2016
Revenues:
Casino $16,406,606 $16,170,503
Food and beverage 3,159,224 3,301,393
Other 515,404 540,716
Gross revenues 20,081,234 20,012,612
Less promotional allowances (1,592,710) (1,782,833)
Net revenues 18,488,524 18,229,779
Expenses:
Casino 9,415,375 9,187,592
Food and beverage 1,579,992 1,531,837
Other 53,452 54,951
Marketing and administrative 5,286,722 5,270,278
Facility 465,814 533,336
Corporate 639,384 796,733
Depreciation and amortization 711,436 776,512
Loss on disposal of assets - 8,371
Total operating expenses 18,152,175 18,159,610
Operating income 336,349 70,169
Non-operating income (expenses):
Interest income 12,465 22,968
Interest expense and amortization of loan issue costs (160,515) (189,984)
Change in swap fair value (3,965) (50,714)
Income (loss) before income tax expense 184,334 (147,561)
Income tax (expense) benefit (60,332) 47,988
Net income (loss) $ 124,002 $ (99,573)
Per share information:
Net income (loss) per common share - basic and diluted $ 0.01 $ (0.01)

Source:Nevada Gold & Casinos, Inc.