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Nevada Gold & Casinos Reports First Quarter 2014 Financial Results

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LAS VEGAS, Sept. 13, 2013 (GLOBE NEWSWIRE) -- Nevada Gold & Casinos, Inc. (NYSE MKT: UWN) today announced financial results for the first quarter ended July 31, 2013 and provided a business update.

For the first quarter of fiscal 2014, the company reported net revenues of $15.7 million compared to $16.8 million in the first quarter of fiscal 2013. Operating expenses were $15.7 million compared to $16.1 million in the prior-year period. Operating income from continuing operations was $0.1 million compared $0.7 million. Net loss from continuing operations was $216,000, or $0.01 per share, compared to a net income of $168,000, or $0.01 per share in the prior-year period.

Michael Shaunnessy, Chief Executive Officer of Nevada Gold commented, "Although we remain quite positive regarding our long term business trends, our revenue decline as compared to the same period in the previous year was a result of a much nicer weather pattern in the Seattle area which caused a decline in the amount of visitors to our casinos in that market. Although revenues declined by 11% in our eight Seattle properties during the quarter, our other two casinos in the Eastern Washington tri-cities area experienced a 6% increase in revenues which we believe is a better indication of our long term business trends."

Mr. Shaunnessy continued, "We continue to focus on our cost structure and we are making significant progress in refinancing our debt to reduce our interest expense and increase our financial flexibility. Our long term focus is 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 while enhancing shareholder value."

Basic and diluted weighted average common shares outstanding in the first quarter of fiscal 2014 were 16.1 million compared to 15.9 million basic and 16.4 million diluted in the first quarter of fiscal 2013.

Conference Call and Webcast

The Company will host a conference call to discuss first quarter 2014 financial results today, September 13, 2013, at 4:30 pm ET. The call can be accessed live by dialing (888) 427-9376. International callers can access the call by dialing (719) 325-2432. A simultaneous webcast of the call will be available by visiting http://www.nevadagold.com/

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 9965319. The replay will be available through September 20, 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 stock option grants, exclusion of net income or loss from operations held for sale, 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 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 Adjusted EBITDA to net income (loss) for the three months ended July 31, 2013 and 2012:

For the three months ended
July 31, 2013 July 31, 2012
Net income (loss) $ (215,827) $ 168,125
Add:
Income tax expense (benefit) (158,361) 88,689
Net interest expense 397,069 462,144
Loss on sale of assets 3,971 1,245
Depreciation and amortization 561,937 538,981
Deferred rent 4,561 19,034
Stock option and ESPP grants 15,450 4,077
Loss on operations held for sale -- 321
Adjusted EBITDA $ 608,800 $ 1,282,616

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, Gold Star Slots, available on Facebook or from the Apple App Store, and a gaming license in Nevada. For more information, visit www.nevadagold.com.

Nevada Gold & Casinos, Inc.
Consolidated Balance Sheets
July 31, April 30,
2013 2013
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 7,198,167 $ 6,723,919
Restricted cash 1,353,907 1,306,487
Accounts receivable, net 757,431 445,481
Prepaid expenses 1,270,838 854,092
Notes receivable, current portion 231,417 216,596
Other current assets 329,854 373,923
Total current assets 11,141,614 9,920,498
Investments in development projects 56,959 56,959
Real estate held for sale 1,100,000 1,100,000
Notes receivable, net of current portion 2,004,008 2,082,853
Goodwill 16,103,584 16,103,583
Intangible assets, net of accumulated amortization of $4,714,831 and $4,413,439 at July 31, 2013 and April 30, 2013, respectively 6,269,489 6,570,882
Property and equipment, net of accumulated depreciation of $2,860,429 and $2,599,940 at July 31, 2013 and April 30, 2013, respectively 4,876,712 5,028,122
Deferred tax asset, net 4,896,735 4,738,373
Other assets 852,398 922,716
Total assets $ 47,301,499 $ 46,523,986
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $ 2,262,812 $ 2,024,465
Accrued interest payable 113,340 $ 34,393
Other accrued liabilities 2,132,393 2,127,140
Long-term debt, current portion 2,320,000 1,280,000
Total current liabilities 6,828,545 5,465,998
Other long-term liabilities 430,123 421,253
Long-term debt, net of current portion 12,520,000 12,930,000
Total liabilities 19,778,668 18,817,251
Stockholders' equity:
Common stock, $0.12 par value per share; 50,000,000 shares authorized; 16,883,390 and 16,864,122 shares issued and 16,100,553 and 16,081,285 shares outstanding at July 31, 2013, and April 30, 2013, respectively 2,026,018 2,023,705
Additional paid-in capital 24,449,467 24,419,858
Retained earnings 7,984,920 8,200,746
Treasury stock, 782,837 shares at July 31, 2013 and April 30, 2013, respectively, at cost (6,932,035) (6,932,035)
Accumulated other comprehensive loss (5,539) (5,539)
Total stockholders' equity 27,522,831 27,706,735
Total liabilities and stockholders' equity $ 47,301,499 $ 46,523,986
Nevada Gold & Casinos, Inc.
Consolidated Statements of Operations
(unaudited)
Three Months Ended
July 31, July 31,
2013 2012
Revenues:
Casino $ 13,790,536 $ 14,761,259
Food and beverage 2,358,309 2,557,601
Other 589,988 668,699
Gross revenues 16,738,833 17,987,559
Less promotional allowances (1,048,044) (1,176,856)
Net revenues 15,690,789 16,810,703
Expenses:
Casino 8,373,184 8,362,014
Food and beverage 1,216,650 1,185,087
Other 106,304 143,578
Marketing and administrative 4,309,941 4,404,262
Facility 478,760 543,621
Corporate and legal expense 617,161 912,636
Depreciation and amortization 561,937 538,981
Total operating expenses 15,663,937 16,090,179
Operating income 26,852 720,524
Non-operating income (expenses):
Loss on sale of assets (3,971) (1,245)
Interest income 34,395 900
Interest expense and amortization of loan issue costs (431,464) (463,044)
Income (loss) before income tax benefit (expense) (374,188) 257,135
Income tax benefit (expense) 158,361 (88,689)
Net income (loss) from continuing operations $ (215,827) $ 168,446
Net loss from discontinued operations, net of taxes -- (321)
Net income (loss) $ (215,827) $ 168,125
Per share information:
Net income (loss) per common share - basic and diluted for continuing operations $ (0.01) $ 0.01
Net loss per common share - basic and diluted for discontinued operations $ - $ -
Basic weighted average number of shares outstanding 16,087,568 15,935,655
Diluted weighted average number of shares outstanding 16,087,568 16,355,655

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

Source:Nevada Gold & Casinos, Inc.