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Nevada Gold Announces Third Quarter 2011 Financial Results

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.
/ Source: GlobeNewswire

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 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:

(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:

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 .

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 or Jim Kohn, CFO (713) 621-2245 ICR Don Duffy (203) 682-8200