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.
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 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:
(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:
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 .
The Nevada Gold & Casinos, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=1552
CONTACT: Nevada Gold & Casinos, Inc. Robert B. Sturges, CEO Jim Kohn, CFO (713) 621-2245 ICR Don Duffy (203) 682-8200