updated 12/14/2010 4:17:43 PM ET 2010-12-14T21:17:43

Adjusted EBITDA (2) of $517,000

Company Receives $1.3 Million Income Tax Refund in the Third Quarter of 2011

HOUSTON, Dec. 14, 2010 (GLOBE NEWSWIRE) -- Nevada Gold & Casinos, Inc. (NYSE Amex:UWN) today announced financial results for the second quarter ended October 31, 2010.

Financial Highlights second quarter included:

  • Net revenues increased 141% to $13.8 million, compared to $5.7 million in the second quarter ended October 31, 2009;
  • Net loss of $0.4 million compared to a net loss of $0.4 million a year ago; excluding certain significant items from the comparisons, net loss would have been $0.2 million compared to a net loss of $0.4 million a year ago;
  • Net loss per basic and diluted common share of $0.03, compared to a net loss per basic and diluted common share of $0.03 in the year ago period; excluding certain significant items from the comparisons, net loss per basic and diluted common share would have been $0.02 compared to a net loss per basic and diluted common share of $0.03 a year ago;
  • EBITDA(1) of $285,000 compared to $17,000 in the second quarter of fiscal 2010;
  • Adjusted EBITDA(2) of $517,000.

"The synergies amongst our Washington properties have allowed us to operate with greater efficiency, provide a high level guest service and streamline promotional incentives. We continue to be on track to hit our goal of generating approximately $55 to $60 million in pro-forma run-rate revenue subsequent to the addition of the six recently acquired Washington mini-casinos. We also continue to expect that our property level pro-forma EBITDA, adjusted for the normalization of the additional six mini-casinos, will be approximately $7.5 million to $8 million on an annualized basis," said Robert Sturges, CEO of Nevada Gold.

"We also received a $1.3 million tax refund subsequent to the quarter ending. The added cash will provide us additional financial flexibility," concluded Mr. Sturges.

Financial Results

For the second quarter of fiscal 2011, net revenues increased to $13.8 million compared to $5.7 million in the second quarter of fiscal 2010. Due to the termination of the management agreement with SunCruz, the Company did not record a management fee during the second quarter of 2011 compared to $0.3 million in the second quarter of 2010. Operating expenses increased to $14.1 million from $6.2 million in the second quarter of 2010. The increase is primarily due to increased casino operating expenses, marketing and administrative expenses, and facility expense related to the Washington acquisitions.

The Company incurred certain significant items related to the acquisition of the additional Washington mini-casinos, which were expensed in the second quarter totaling $0.21 million. These items related to severance, legal, travel, training and additional salaries and wages to prepare the financial statements of the Receiver.

Net loss for the second quarter of fiscal 2011 was $0.4 million compared to a net loss of $0.4 million in the second quarter of fiscal 2010. Excluding certain significant items from the comparisons, net loss would have been $0.2 million compared to a net loss of $0.4 million a year ago. Net loss per diluted common share was $0.03, compared to a net loss per diluted common share of $0.03 in the prior year period. Excluding certain significant items from the comparisons, net loss per basic and diluted common share would have been $0.02 compared to a net loss per basic and diluted common share of $0.03 a year ago.

Basic and diluted weighted average common shares outstanding in the second quarter of 2011 were 12.8 million versus 12.9 million in the fiscal second quarter of 2010.

Earnings Conference Call and Webcast

The Company will host a conference call to discuss second quarter 2011 financial results today at 5:00 PM ET. The conference call can be accessed live over the phone by dialing (888) 572-7029, or, for international callers, (719) 325-2298. A replay will be available one hour after the call and can be accessed by dialing (877) 870-5176, or (858) 384-5517 for international callers; the conference ID is 1296072. The replay will be available until Tuesday, December 21, 2010. The call will be webcast live from the Company's website at www.NevadaGold.com under the investor relations section.

(1) EBITDA is a commonly used measurement of gaming company results. The term is used to define earnings before interest, income taxes, depreciation, amortization and management fees. The reconciliation of Operating loss to EBITDA is as follows:

Operating loss as reported $(249,218)
Add back depreciation and amortization 534,619
EBITDA $285,401

(2) Adjusted EBITDA excludes non-recurring and non-cash expenses related to acquisitions and stock options granted. The reconciliation of EBITDA to Adjusted EBITDA is as follows:

EBITDA $285,401
Expenses related to July 2010 acquisition 206,689
Stock options amortization 24,581
ADJUSTED EBITDA $516,671

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

Nevada Gold & Casinos, Inc. (NYSE Amex:UWN) of Houston, Texas is a developer, owner and operator of gaming facilities in Colorado and Washington. The following properties are wholly owned and operated by Nevada Gold: Colorado Grande Casino in Cripple Creek, Colorado, the Crazy Moose Casinos in Pasco and Mountlake Terrace, Washington, Coyote Bob's Roadhouse Casino in Kennewick, Washington, the Silver Dollar Casinos in Seatac, Mill Creek and Renton, Washington, the Club Hollywood located in Shoreline, Washington, the Royal Casino located in Everett, Washington and the Golden Nugget Casino located in Tukwila, Washington. The Company has an interest in Buena Vista Development Company, LLC which is working with the Buena Vista Rancheria of Me-Wuk Indians on a Native American casino project to be developed in the city of Ione, California. The Company has a signed management agreement including equity participation for development of a casino and hotel immediately adjacent to the Las Vegas Motor Speedway. For more information, visit www.nevadagold.com .

The Nevada Gold & Casinos, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=1552

Nevada Gold & Casinos, Inc.
Balance Sheet
  October 31,

2010
April 30,

2010
  (unaudited)  
ASSETS    
Current assets:    
Cash and cash equivalents $2,550,306 $3,155,736
Restricted cash  652,557  5,266,938
Accounts receivable  825,434  66,822
Prepaid expenses  1,177,755  475,262
Income tax receivable  1,154,762  1,750,374
Other current assets  286,416  155,796
Total current assets  6,647,230  10,870,928
Investments in development projects  202,253  1,418,789
Investments in development project held for sale  3,373,966  3,437,932
Note receivable - development projects, net of current

portion and allowances
 1,700,000  1,700,000
Goodwill  16,424,679  10,243,362
Identifiable intangible assets, net of accumulated

amortization of $1,230,469 and $729,000 at

October 31, 2010 and April 30, 2010
 7,983,383  5,101,800
Property and equipment, net of accumulated depreciation

of $3,304,868 and $2,978,679 at October 31, 2010 and

April 30, 2010, respectively
 5,204,324  3,473,051
Deferred tax asset  2,307,017  1,848,419
BVO receivable  4,000,000  4,000,000
Other assets, net of allowances  510,137  376,938
Total assets  $48,352,989  $42,471,219
     
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
Current liabilities:    
Accounts payable and accrued liabilities $1,887,206 $1,060,017
Accrued interest payable  70,000  70,000
Other accrued liabilities  1,338,246  687,819
Long-term debt, current portion  76,316  -- 
Total current liabilities 3,371,768 1,817,836
Long-term debt, net of current portion 15,092,291 10,000,000
Other liabilities 23,541 30,944
Total liabilities 18,487,600 11,848,780
Commitments and contingencies -- --
Stockholders' equity:    
Common stock, $0.12 par value per share;

50,000,000 shares authorized; 13,935,330 shares issued

and 12,764,130 shares outstanding at October 31, 2010 

and April 30, 2010, respectively
1,672,240 1,672,240
Additional paid-in capital 20,008,595 19,859,966
Retained earnings 18,559,293 19,464,972
Treasury stock, 1,171,200 shares at October 31, 2010 and    
 April 30, 2010, respectively, at cost  (10,369,200)  (10,369,200)
Accumulated other comprehensive loss  (5,539)  (5,539)
Total stockholders' equity 29,865,389 30,622,439
Total liabilities and stockholders' equity $48,352,989 $42,471,219
 
Nevada Gold & Casinos, Inc.
Consolidated Statements of Operations
(unaudited) 
         
  Three Months Ended Six Months Ended
  October 31, 2010 October 31, 2009 October 31, 2010 October 31, 2009
         
Revenues:        
Casino $12,008,128 $4,788,536 $17,767,983 $8,973,599
Food and beverage 2,936,433 1,234,909  4,278,054  2,348,675
Other 542,514 218,837  768,022  402,871
Management fee  --   250,000  --   500,000
Gross revenues 15,487,075 6,492,282  22,814,059  12,225,145
Less promotional allowances  (1,674,037)  (751,923)  (2,474,521)  (1,427,567)
Net revenues 13,813,038 5,740,359  20,339,538  10,797,578
         
 Expenses:         
Casino 6,392,339 2,071,139  9,022,758  3,955,094
Food and beverage 1,213,057 887,247  1,893,025  1,721,790
Marketing and administrative 3,455,196 1,435,444  5,227,453  2,676,223
Facility 1,137,305 231,183  1,484,979  492,031
Corporate expense 930,906 945,368  2,100,085  2,377,065
Legal expense 64,863 38,710  461,019  103,003
Depreciation and amortization  534,619  517,985  848,458  663,152
Other  333,971  114,382  489,876  223,632
Total operating expenses  14,062,256  6,241,458  21,527,653  12,211,990
Operating loss  (249,218)  (501,099)  (1,188,115)  (1,414,412)
Non-operating income (expenses):        
Gain on sale of assets  --   --   384,414  -- 
Interest income  44,191  46,559  89,115  105,068
Interest expense  (396,070)  (225,490)  (623,858)  (378,471)
Amortization of loan issue costs  (11,250)  (27,770)  (22,500)  (59,979)
Loss before income

tax benefit
 (612,347)  (707,800)  (1,360,944)  (1,747,794)
Income tax benefit  215,741  263,685  455,265  602,970
Net loss  $ (396,606)  $ (444,115)  $ (905,679)  $ (1,144,824)
         
Per share information:        
Net loss per common share - basic  $ (0.03)  $ (0.03)  $ (0.07)  $ (0.09)
         
Net loss per common share - diluted   $ (0.03)  $ (0.03)  $ (0.07)  $ (0.09)
         
Basic weighted average number of shares

 outstanding
12,764,130 12,939,130 12,764,130 12,939,130
Diluted weighted average number of shares

outstanding
12,764,130 12,939,130 12,764,130 12,939,130
         
         
CONTACT:  Nevada Gold & Casinos, Inc.
          Robert B. Sturges, CEO
          Jim Kohn, CFO
          (713) 621-2245

          ICR
          Don Duffy
          (203) 682-8200

© Copyright 2012, GlobeNewswire, Inc. All Rights Reserved

Discuss:

Discussion comments

,

Most active discussions

  1. votes comments
  2. votes comments
  3. votes comments
  4. votes comments

Data: Latest rates in the US

Home equity rates View rates in your area
Home equity type Today +/- Chart
$30K HELOC FICO 2.79%
$30K home equity loan FICO 5.78%
$75K home equity loan FICO 4.54%
Credit card rates View more rates
Card type Today +/- Last Week
Low Interest Cards 13.57%
13.57%
Cash Back Cards 17.91%
17.91%
Rewards Cards 17.15%
17.15%
Source: Bankrate.com