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Jul 27, 2017

Nevada Gold & Casinos Reports Fourth Quarter and Fiscal Year 2017 Results

LAS VEGAS, July 27, 2017 (GLOBE NEWSWIRE) -- Nevada Gold & Casinos, Inc. (NYSE MKT:UWN) today announced financial results for the fourth quarter and year ended April 30, 2017.  The Company will host a conference call today at 4:30 PM ET (1:30 PM PT) to discuss these results and provide a corporate update.

For the fourth quarter of fiscal 2017, the Company reported net revenues of $19.8 million compared to $19.9 million in the fourth quarter of fiscal 2016.  Operating income was $1.9 million compared to $0.4 million in the prior year which was impacted by impairment charges of $1.2 million.   Net income was $1.2 million, or $0.07 per share.  Consolidated Adjusted EBITDA was $2.6 million compared to $2.5 million in the prior year period.    

During the fourth quarter, net revenues from Washington state gaming operations increased to $14.9 million from the $14.6 million in the prior year period, while EBITDA decreased slightly to $2.5 million compared to $2.6 million in the prior year period.  Club Fortune net revenues were $3.5 million compared to $3.7 million in the prior year period, while EBITDA increased to a quarterly record of $0.8 million from $0.5 million in the prior period due to improved operating and marketing efficiencies.  South Dakota route operation revenues decreased $214,000 from the prior year period, primarily reflecting 47 fewer units in operation, and EBITDA declined $61,000 for the quarter.  Corporate expenses were $0.6 million in both periods. 

"The fourth quarter saw our luck change in Washington as the table hold percentage improved, and at Club Fortune, our operating and marketing initiatives contributed to significant EBITDA improvement on slightly lower revenues," said President and CEO, Michael Shaunnessy

For the fiscal year 2017, the Company reported net revenues of $74.6 million compared to $70.2 million in fiscal year 2016.  This increase was due to a full year of operations at Club Fortune which was acquired December 1, 2015, which more than offset the decrease in revenues from our Washington segment.  Operating expenses increased $6.0 million primarily due to a full year of Club Fortune operations.  Net income was $0.6 million compared to $1.3 million in the prior year.

"Fiscal 2017 was challenging due to lower table hold percentages in Washington and major road construction at Club Fortune," said President and CEO Michael Shaunnessy.  "With the construction behind us and hold percentages returning to normal, we had a strong fourth quarter to finish out the year and set the stage for 2018."  

Net revenues for the fiscal year from Washington state gaming operations decreased $2.3 million to $54.4 million, while Adjusted EBITDA decreased $2.1 million from a record $9.1 million in the prior year.  Revenues were impacted by approximately $0.8 million due to a lower than expected table games hold percentage.  Club Fortune net revenues were $13.5 million and Adjusted EBITDA was $1.5 million in its first full year of operation.  South Dakota route operation revenues decreased $0.8 million to $6.7 million while Adjusted EBITDA decreased $0.2 million to $0.2 million.  Corporate adjusted EBITDA was negative $2.5 million compared to negative $2.4 million in the prior year.  

During the fiscal year the Company repaid $4.9 million in bank debt and as of April 30, 2017, the outstanding bank debt was $12.3 million and unrestricted cash on hand was $10.6 million.  In July 2016, the Board of Directors authorized a share repurchase program of $2.0 million and during the year we purchased 296,665 shares at an average cost of $1.89.  On July 12, 2017 we announced the purchase of 755,644 shares at a price of $2.15 per share completing this authorization.  The Board has approved an additional $2.0 million share buyback.  

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 grants, non-cash employee stock purchase plan discounts, exclusion of net income or loss from operations held for sale, and net losses/gains from asset dispositions. Adjusted EBITDA does not take into account greater or less than expected hold percentages in the gaming operations. 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.

Net income (loss) reconciliation to Adjusted EBITDA:

  For the three months ended
  April 30, 2017 April 30, 2016
       
Net income (loss) $1,196,560  $(241,290)
Adjustments:      
Net interest expense  149,772   248,893 
Income tax expense  578,237   409,271 
Depreciation and amortization  714,652   869,414 
Club Fortune acquisition expenses  -   12,181 
Write downs and other charges  -   1,185,000 
Deferred rent amortization  5,168   14,430 
Stock compensation amortization  2,980    28,675 
Employee stock purchase discount  -   25 
(Gain) decrease in swap fair value  (23,865)  (26,282)
Loss (gain) on disposal of assets  20,693   5,291 
Adjusted  EBITDA $2,644,197  $2,505,608 
       


  For the fiscal year ended
  April 30, 2017 April 30, 2016
       
Net income $563,964  $1,301,046 
Adjustments:      
Net interest expense  666,543   628,315 
Income tax expense  790,829   1,221,497 
Depreciation and amortization  3,021,280    2,608,616 
Club Fortune acquisition expenses  113,900   641,472 
Write downs and other charges  1,101,472   1,185,000 
Deferred rent amortization  36,068   35,900 
Stock compensation amortization  124,279   164,698 
Employee stock purchase discount  -   4,671 
(Gain) decrease in swap fair value  (250,385)  217,781 
Loss (gain) on disposal of assets  77,183   (158,411)
Adjusted  EBITDA $6,245,133  $7,850,585 
       

Conference Call and Webcast
The Company will host a conference call at 4:30 PM ET (1:30 PM PT) today to discuss the financial results and provide a corporate update. The call can be accessed live by dialing (877) 780-3379. International callers can access the call by dialing (719) 457-2631.

A telephone replay of the conference call will be available after 7:30 PM ET and can be accessed by dialing (844) 512-2921. International callers can access the replay by dialing (412) 317-6671; the pin number is 3065863. The replay will be available through August 3, 2017.

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 9 gaming operations in Washington (wagoldcasinos.com), a local casino in Henderson, Nevada (clubfortune.com), and a slot route operation in Deadwood, South Dakota (dakotaplayersclub.com).  For more information, visit www.nevadagold.com.


 
Nevada Gold & Casinos, Inc.
Consolidated Statements of Operations
 
 
  Three Months Ended
 Twelve Months Ended
  April 30, April 30, April 30, April 30,
  2017
 2016
 2017
  2016
Revenues:          
Casino $17,564,894  $17,625,233  $66,006,576  $62,122,367 
Food and beverage  3,424,377    3,581,609   13,439,326   11,797,939 
Other  517,843   605,067   2,140,113   2,042,519 
Gross revenues  21,507,114   21,811,909   81,586,015   75,962,825 
Less promotional allowances  (1,707,086)  (1,947,459)  (6,959,066)  (5,728,469)
Net revenues   19,800,028   19,864,450   74,626,949   70,234,356 
             
 Expenses:             
Casino  9,076,452   9,374,581   36,404,244   33,421,887 
Food and beverage  1,606,638   1,553,769   6,195,203   5,671,376 
Other  75,845   58,829   291,360   238,794 
Marketing and administrative  5,336,141    5,266,141   20,920,103   18,615,262 
Facility  498,322   514,894   2,126,150   2,025,007 
Corporate  570,581   645,939   2,719,003   3,258,187 
Depreciation and amortization  714,652   869,414   3,021,280   2,608,616 
Loss (gain) on sale of assets  20,693   5,291   77,183   (158,411)
Write downs and other charges  -   1,185,000   1,101,472   1,185,000 
Total operating expenses  17,899,324   19,473,858   72,855,998   66,865,718 
Operating income from continuing operations  1,900,704   390,592   1,770,951   3,368,638 
Non-operating income (expenses):            
Interest income  15,770   19,350   81,011    94,589 
Interest expense and amortization of loan costs  (165,542)  (268,243)  (747,554)  (722,903)
Change in swap fair value  23,865   26,282   250,385   (217,781)
Income before income tax  1,774,797   167,981   1,354,793   2,522,543 
Income tax expense  (578,237)  (409,271)  (790,829)  (1,221,497)
Net income (loss) $1,196,560  $(241,290) $563,964  $1,301,046 
Per share information:             
Net income (loss) per common share - basic and diluted $0.07  $(0.01) $0.03  $0.08 
             
Basic weighted average number of shares outstanding  17,583,101   17,771,800   17,688,229   17,002,728 
             
Diluted weighted average number of share outstanding   17,918,456   17,771,800   17,990,524   17,298,373 
              

 

 
Nevada Gold & Casinos, Inc.
Consolidated Balance Sheets
 
 
  April 30, April 30,
  2017
 2016
     
ASSETS
Current assets:    
Cash and cash equivalents $10,631,903  $11,583,107 
Restricted cash  1,994,312   1,433,728 
Accounts receivable, net of allowances  808,484   665,549 
Prepaid expenses  1,209,507   1,206,825 
Notes receivable, current portion  383,093   208,294 
Inventory and other current assets  423,113    416,022 
Total current assets  15,450,412   15,513,525  
Real estate held for sale  750,000   750,000 
Notes receivable, net of current portion  -   900,775 
Goodwill  16,923,588   18,025,059 
Identifiable intangible assets, net of accumulated      
amortization of $8,869,497 and $7,997,790 at April 30,      
2017 and April 30, 2016, respectively  4,107,328    5,003,981 
Property and equipment, net of accumulated depreciation      
of $7,635,620 and $5,641,733 at April 30, 2017 and      
April 30, 2016, respectively  13,958,715   15,147,061 
Deferred tax asset  1,557,470   2,348,299 
Other assets  70,000   70,000 
Total assets $  52,817,513   $  57,758,700  
       
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:      
Accounts payable and accrued liabilities $1,303,571  $1,702,366 
Accrued payroll and related  1,925,592   2,094,250 
Accrued player's club points and progressive jackpots  2,348,068   1,872,566 
Total current liabilities  5,577,231   5,669,182 
Long-term debt  12,061,411   16,839,148 
Other long-term  liabilities  667,110   881,426 
Total liabilities  18,305,752   23,389,756 
Stockholders' equity:      
Common stock, $0.12 par value per share; 50,000,000      
shares authorized; 18,627,167 and 18,571,693 shares issued
and 17,547,665 and 17,788,856 shares outstanding at April
30, 2017, and April 30, 2016, respectively
  2,235,269   2,228,612 
Additional paid-in capital  27,449,319   27,315,517 
Retained earnings  12,320,814   11,756,850 
Treasury stock, 1,079,502 and 782,837 shares at April 30,
2017 and April 30, 2016, at cost
  (7,493,641)  (6,932,035)
Total stockholders' equity  34,511,761   34,368,944 
Total liabilities and stockholders' equity $52,817,513  $57,758,700 
       


Contacts:

Nevada Gold & Casinos, Inc.Michael P. Shaunnessy / James Meier

(702) 685-1000



Stonegate Capital PartnersPreston Graham

(972) 850-2001

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Source: Nevada Gold & Casinos, Inc.

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NEVADA GOLD & CASINOS, INC.

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