updated 3/16/2011 4:19:06 PM ET 2011-03-16T20:19:06

HOUSTON, March 16, 2011 (GLOBE NEWSWIRE) -- Nevada Gold & Casinos, Inc. (NYSE Amex:UWN) today announced financial results for the third quarter ended January 31, 2011.

Third quarter 2011 Financial Highlights Included:

  • Net revenues increased 155% to $13.3 million, compared to $5.2 million in the third quarter ended January 31, 2010;
  • Net income of $0.1 million compared to a net loss of $0.5 million a year ago;
  • Net income per basic and diluted common share of $0.01, compared to a net loss per basic and diluted common share of $0.04 in the year ago period;
  • EBITDA(1) of $514,000 compared to $(316,000) in the third quarter of fiscal 2010;
  • EBITDA(1) of $514,000 compared to $285,000 in the second quarter of fiscal 2011;
  • Adjusted EBITDA(2) of $587,000;
  • Operating income of $0.04 million compared to operating loss of $(0.7) million in the third quarter of fiscal 2010.

"We continue to be on track to hit our 2011 calendar year 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 are in the process of applying for a gaming license in the state of Nevada and continue to be actively reviewing potential acquisition opportunities."

Financial Results

For the third quarter of fiscal 2011, net revenues increased to $13.3 million compared to $5.2 million in the third quarter of fiscal 2010. Operating expenses increased to $13.2 million from $5.9 million in the third 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.

Net income for the third quarter of fiscal 2011 was $0.1 million compared to a net loss of $0.5 million in the third quarter of fiscal 2010. Net income per diluted common share was $0.01, compared to a net loss per diluted common share of $0.04 in the prior year period.

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

Earnings Conference Call and Webcast

The Company will host a conference call to discuss third quarter 2011 financial results today at 5:00 PM ET. The conference call can be accessed live over the phone by dialing (800) 967-7185, or, for international callers, (719) 325-2199. 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 5852785. The replay will be available until Wednesday, March 23, 2011. 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 income to EBITDA is as follows:

Operating income as reported $43,091
Add back depreciation and amortization 470,593
EBITDA $513,684

(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 $513,684
Expenses related to July 2010 acquisition 47,520
Stock options amortization 26,181
ADJUSTED EBITDA $587,385

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 10 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
   January 31,

2011
 April 30,

2010
  (unaudited)  
ASSETS
Current assets:    
Cash and cash equivalents  $ 4,222,240  $ 3,155,736
Restricted cash  1,254,917  5,266,938
Accounts receivable  871,810  66,822
Prepaid expenses  946,280  475,262
Income tax receivable  176,750  1,750,374
Other current assets  282,348  155,796
Total current assets  7,754,345  10,870,928
     
Investments in development projects  208,543  1,418,789
Investment in land 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  16,477,184  10,243,362
Identifiable intangible assets, net of accumulated amortization of $1,541,511 and $729,000 at January 31, 2011 and April 30, 2010  7,672,340  5,101,800
Property and equipment, net of accumulated depreciation of $3,464,418 and $2,978,679 at January 31, 2011 and April 30, 2010, respectively  5,111,234  3,473,051
Deferred tax asset  2,393,453  1,848,419
BVO receivable  4,000,000  4,000,000
Other assets, net of allowances  541,736  376,938
Total assets  $ 49,232,801  $ 42,471,219
     
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:    
Accounts payable and accrued liabilities $ 2,153,097 $ 1,060,017
Accrued interest payable  121,123  70,000
Other accrued liabilities  1,774,206  687,819
Long-term debt, current portion  67,530  -- 
Total current liabilities 4,115,956 1,817,836
     
Long-term debt, net of current portion 15,082,152 10,000,000
Other liabilities 19,671 30,944
Total liabilities 19,217,779 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 January 31, 2011 and April 30, 2010, respectively 1,672,240 1,672,240
Additional paid-in capital 20,020,697 19,859,966
Retained earnings 18,696,824 19,464,972
Treasury stock, 1,171,200 shares at January 31, 2011 and April 30, 2010, respectively, at cost  (10,369,200)  (10,369,200)
Accumulated other comprehensive loss  (5,539)  (5,539)
Total stockholders' equity 30,015,022 30,622,439
Total liabilities and stockholders' equity $ 49,232,801 $ 42,471,219
         
 
Nevada Gold & Casinos, Inc.
Consolidated Statements of Operations
(unaudited) 
         
  Three Months Ended Nine Months Ended
  January 31, January 31, January 31, January 31,
  2011 2010 2011 2010
Revenues:        
Casino  $ 11,507,643  $ 4,469,523  $ 29,275,626  $ 13,443,121
Food and beverage  2,795,998  1,074,962  7,074,052  3,423,638
Other 531,786 223,777 1,299,808 626,648
Management and consulting fees  --   120,968  --   620,968
Gross revenues 14,835,427 5,889,230 37,649,486 18,114,375
Less promotional allowances  (1,573,524)  (683,406)  (4,048,045)  (2,110,972)
Net revenues 13,261,903 5,205,824  33,601,441  16,003,403
         
 Expenses:         
Casino 5,799,412 2,224,130 14,818,844 6,176,833
Food and beverage 1,140,626 613,408 3,037,018 2,337,762
Marketing and administrative 3,694,711 1,413,210  8,922,162  4,089,432
Facility 940,904 292,427 2,425,883 784,458
Corporate expense 779,429 865,978 2,895,495 3,243,043
Legal expense  -- 202 445,038 103,205
Depreciation and amortization  470,593  333,527  1,319,051  996,680
Excise taxes  307,757  79,932  691,836  232,650
Other  85,380  32,109  191,138  102,850
Total operating expenses  13,218,812  5,854,923  34,746,465  18,066,913
Operating income (loss)  43,091  (649,099)  (1,145,024)  (2,063,510)
Non-operating income (expenses):        
Gain on sale/settlement of assets  --   --   384,414  -- 
Interest income  42,865  44,944  131,980  150,012
Interest expense  (387,143)  (246,940)  (1,011,001)  (625,411)
Amortization of loan issue costs  (11,250)  (25,552)  (33,750)  (85,531)
Loss before income tax benefit  (312,437)  (876,647)  (1,673,381)  (2,624,440)
         
Income tax benefit  449,968  330,925  905,233  933,895
         
Net income (loss)  $ 137,531  $ (545,722)  $ (768,148)  $ (1,690,545)
         
Per share information:        
Net income (loss) per common share - basic  $ 0.01  $ (0.04)  $ (0.06)  $ (0.13)
Net income (loss) per common share - diluted  $ 0.01  $ (0.04)  $ (0.06)  $ (0.13)
         
Basic weighted average number of common shares outstanding 12,764,130 12,866,847 12,764,130 12,915,036
Diluted weighted average number of common shares outstanding 12,789,130 12,866,847 12,764,130 12,915,036
CONTACT: Nevada Gold & Casinos, Inc.
         Robert B. Sturges, CEO or Jim Kohn, CFO
         (713) 621-2245
         
         ICR
         Don Duffy
         (203) 682-8200

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