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Nevada Gold & Casinos Delivers Strong Fourth-Quarter and Year-End 2013 Financial Results

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  • 4Q net income rises to $.03 per share
  • 4Q adjusted EBITDA(1) from continuing operations up 18%
  • 2013 net revenues increase 18.5%
  • 2013 adjusted EBITDA(1) from continuing operations up 70%

LAS VEGAS, July 29, 2013 (GLOBE NEWSWIRE) -- Nevada Gold & Casinos, Inc. (NYSE MKT:UWN) today announced financial results for the fourth quarter and fiscal year ended April 30, 2013.

"We delivered solid results for the fourth quarter of fiscal 2013, bringing the year to a successful close," said President and CEO Michael Shaunnessy. "In recent months, we have taken many steps to optimize the performance of Nevada Gold & Casinos' portfolio of assets, reduce our cost structure and sharpen the company's business focus. The strong operating performance and cash flow we have announced today illustrate the success of these actions.

"We exceeded our financial target for the year and continued deleveraging our balance sheet, positioning us well for fiscal 2014. During 2013 we generated $5.8 million in adjusted EBITDA from continuing operations and reduced our outstanding debt by $2.3 million.

"In the fourth quarter, our Washington casino operations continued to show solid growth, with adjusted EBITDA improving more than 10% to $2.2 million and annual adjusted EBITDA increasing 20.5% to $7.9 million. Our South Dakota route operation contributed $1.1 million in adjusted EBITDA for the year, although performance was relatively flat for the quarter. We recently completed fine-tuning the route and are operating during the important summer season with a better-positioned and more efficient operation. We expect the fine-tuning to contribute to improved results for fiscal 2014.

"With the optimization of our current asset portfolio completed, our focus is on continuing to generate consistent results through effective operations and on exploring new revenue opportunities that complement our gaming properties and diversify our revenue stream. We are actively searching for both new properties and management contracts that fit Nevada Gold & Casinos' investment parameters and will enhance shareholder value."

Financial Results

As previously announced, Nevada Gold & Casinos completed the sale of the Colorado Grande Casino in Cripple Creek, Colorado in May 2012. As a result, the Colorado Grande's results were reclassified as discontinued operations. All financial information presented below represents results from continuing operations.

For the fourth quarter of fiscal 2013, net revenues decreased slightly to $16.5 million compared to $16.6 million in the fourth quarter of fiscal 2012. Operating expenses were $15.5 million compared to $22.4 million in the prior-year period, which included $6.3 million of valuation allowances unrelated to ongoing operations. Operating income from continuing operations was $1.1 million compared to an operating loss of $5.9 million, which included the valuation allowances. Net income from continuing operations was $0.5 million, or $0.03 per diluted share, compared to a net loss of $4.3 million in the prior-year period due to the $4.2 million after-tax impact of the non-cash valuation allowances.

For the full fiscal year 2013, net revenues, including a full year of revenues from the South Dakota slot route operation acquired on January 27, 2012, increased to $65.9 million compared to $55.6 million in fiscal 2012. Operating expenses were $63.5 million compared to $63.6 million in the prior year, which included $8.5 million of valuation allowances. Operating income from continuing operations was $2.4 million compared to a loss of $8.0 million in fiscal 2012, which included the valuation allowances referenced above. Net income from continuing operations was $0.1 million compared to a loss of $6.4 million in the prior year, which included the $5.6 million after-tax impact of the non-cash valuation allowances.

Basic and diluted weighted average common shares outstanding in fiscal 2013 were 16.0 million compared to 14.4 million in fiscal 2012.

Conference Call and Webcast

The Company will host a conference call to discuss fourth-quarter 2013 financial results today, July 29, 2013, at 11:00 am ET. The call can be accessed live by dialing (719) 325-2144 or (888) 523-1225. A simultaneous webcast of the call will be available by visiting http://www.nevadagold.com/.

A telephone replay will be available after 2:00 pm ET and can be accessed by dialing (858) 384-5517 or (877) 870-5176; the pin number is 7997705. The replay will be available through August 6, 2013. The archived webcast will also be available on the company's website at http://ir.nevadagold.com/events.cfm.

(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 foreign currency transaction gains and losses, non-cash stock option grants, 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.

Adjusted EBITDA reconciliation for the three months and fiscal years ended April 30, 2013 and April 30, 2012:

Adjusted EBITDA reconciliation to net income (loss):
For the quarter ended (unaudited)
April 30, 2013 April 30, 2012
Net Income (loss) $ 452,434 $ (5,328,072)
Add:
Income tax (benefit) expense 211,065 (1,994,383)
Net interest expense 392,757 432,875
Loss on sale of assets 986 32,902
Stock option and ESPP grants 13,620 --
Relocation expenses 127,029 --
Loss on operations held for sale -- 996,649
Acquisition expenses -- 82,966
Depreciation and amortization 498,764 628,144
Deferred rent escalation 19,034 337,849
Impairments,write-offs, recoveries, net -- 6,264,655
Adjusted EBITDA $ 1,715,689 $ 1,452,775
Adjusted EBITDA reconciliation to net income (loss):
For the fiscal year ended
April 30, 2013 April 30, 2012
Net Income (loss) $ 36,907 $ (7,928,584)
Add:
Income tax (benefit) expense 560,052 (3,351,776)
Net interest expense 1,704,027 1,576,122
Loss on extinguishment of debt -- 154,270
Loss on sale of assets 6,081 54,746
Severance expenses 637,868 --
Relocation expenses 127,029 --
Stock option and Employee Stock Purchase Plan grants 137,858 339,133
Loss on operations held for sale 91,603 1,489,290
Acquisition expenses -- 173,852
Depreciation and amortization 2,126,888 2,004,311
Deferred rent escalation 76,136 337,849
Impairments,write-offs, recoveries, net 257,733 8,538,621
Adjusted EBITDA $ 5,762,182 $ 3,387,834

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 (wagoldcasinos.com) and a slot route operation in Deadwood, South Dakota (dakotaplayersclub.com). The Company also has a social gaming application on Facebook, Gold Star Slots, and a gaming license in Nevada. For more information, visit www.nevadagold.com.

Contacts:
Nevada Gold & Casinos, Inc.
Michael P. Shaunnessy / James Kohn
(702) 685-1000
LHA
Harriet Fried / Jody Burfening
(212) 838-3777
hfried@lhai.com
Nevada Gold & Casinos, Inc.
Consolidated Balance Sheets
April 30, April 30,
2013 2012
ASSETS
Current assets:
Cash and cash equivalents $ 6,723,919 $ 5,200,161
Restricted cash 1,306,487 1,787,068
Accounts receivable 445,481 653,433
Prepaid expenses 854,092 909,834
Notes receivable, current portion 216,596 20,600
Other current assets 373,923 354,817
Assets of operations held for sale -- 33,601
Total current assets 9,920,498 8,959,514
Investments in development projects 56,959 255,355
Real estate held for sale 1,100,000 1,100,000
Notes receivable, net of current portion 2,082,853 --
Goodwill 16,103,583 16,090,799
Identifiable intangible assets, net of accumulated amortization of $4,413,439 and $3,201,868 at April 30, 2013 and April 30, 2012, respectively 6,570,882 7,782,453
Property and equipment, net of accumulated depreciation of $2,599,940 and $1,785,064 at April 30, 2013 and April 30, 2012, respectively 5,028,122 5,399,103
Deferred tax asset, net 4,738,373 5,251,236
Other assets 922,716 1,219,356
Assets of operations held for sale -- 3,115,097
Total assets $ 46,523,986 $ 49,172,913
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $ 2,024,465 $ 2,176,545
Accrued interest payable 34,393 61,141
Other accrued liabilities 2,127,140 2,632,067
Long-term debt, current portion 1,280,000 1,400,324
Liabilities of operations held for sale -- 23,699
Total current liabilities 5,465,998 6,293,776
Other long term liabilities 421,253 337,849
Long-term debt, net of current portion 12,930,000 15,155,000
Total liabilities 18,817,251 21,786,625
Stockholders' equity:
Common stock, $0.12 par value per share; 50,000,000 shares authorized; 16,864,122 and 16,707,205 shares issued and 16,081,285 and 15,924,368 shares outstanding at April 30, 2013, and April 30, 2012, respectively 2,023,705 2,004,865
Additional paid-in capital 24,419,858 24,155,158
Retained earnings 8,200,746 8,163,839
Treasury stock, 782,837 shares at April 30, 2013 and April 30, 2012, at cost (6,932,035) (6,932,035)
Accumulated other comprehensive loss (5,539) (5,539)
Total stockholders' equity 27,706,735 27,386,288
Total liabilities and stockholders' equity $ 46,523,986 $ 49,172,913
Nevada Gold & Casinos, Inc.
Consolidated Statements of Operations
Three Months Ended Twelve Months Ended
April 30, April 30, April 30, April 30,
2013 2012 2013 2012
Revenues:
Casino $ 14,460,843 $ 14,269,776 $ 57,592,806 $ 47,445,348
Food and beverage 2,510,539 3,060,696 10,103,913 11,409,426
Other 634,239 762,920 2,608,837 2,456,028
Gross revenues 17,605,621 18,093,392 70,305,556 61,310,802
Less promotional allowances (1,086,239) (1,525,298) (4,381,638) (5,682,168)
Net revenues 16,519,382 16,568,094 65,923,918 55,628,634
Expenses:
Casino 8,100,186 8,123,667 32,767,931 25,596,310
Food and beverage 1,270,391 1,084,429 4,838,447 4,202,546
Marketing and administrative 4,095,165 4,692,780 16,652,746 16,750,411
Facility 564,070 582,520 2,270,774 2,112,397
Corporate and legal expense 795,360 756,113 4,051,972 3,661,354
Depreciation and amortization 498,764 628,144 2,126,888 2,004,311
Acquisition costs -- 82,966 -- 173,852
Valuation allowance of assets -- 4,574,904 -- 6,848,870
(Recovery) write-off of project development costs -- (10,249) 257,733 (10,249)
Valuation allowance of project development costs -- 1,700,000 -- 1,700,000
Other 138,204 213,659 558,757 594,764
Total operating expenses 15,462,140 22,428,933 63,525,248 63,634,566
Operating income (loss) from continuing operations 1,057,242 (5,860,839) 2,398,670 (8,005,932)
Non-operating income (expenses):
Loss on settlements - sale of assets (986) (32,092) (6,081) (54,746)
Unrealized gains (losses) on available-for-sale securities -- -- -- --
Interest income 34,398 42,524 120,349 171,075
Interest expense (345,512) (400,634) (1,494,989) (1,552,948)
Amortization of loan issue costs (81,643) (74,765) (329,387) (194,249)
Loss on extinguishment of debt -- -- -- (154,270)
Income (loss) before income tax 663,499 (6,325,806) 688,562 (9,791,070)
Income tax (expense) benefit (211,065) 1,994,383 (560,052) 3,351,776
Net income (loss) from continuing operations $ 452,434 $ (4,331,423) $ 128,510 $ (6,439,294)
Net loss from operations held for sale, net of taxes -- (996,649) (91,603) (1,489,290)
Net income (loss) $ 452,434 $ (5,328,072) $ 36,907 $ (7,928,584)
Per share information:
Net income (loss) per common share - basic and diluted for continuing operations $ 0.03 $ (0.27) $ 0.01 $ (0.45)
Net loss per common share - basic and diluted for discontinued operations $ -- $ (0.06) $ (0.01) $ (0.10)
Basic weighted average number of shares outstanding 16,065,719 15,893,950 15,997,546 14,381,896
Diluted weighted average number of shares outstanding 16,110,304 15,893,950 16,020,789 14,381,896

Source:Nevada Gold