July 27, 2015

Nevada Gold & Casinos Reports Fiscal 2015 Results

LAS VEGAS, July 27, 2015 (GLOBE NEWSWIRE) -- Nevada Gold & Casinos, Inc. (NYSE MKT:UWN) today announced financial results for the fourth quarter and year ended April 30, 2015.

For the fiscal year 2015, the company reported net revenues of $64.3 million compared to $62.8 million in fiscal year 2014. Operating expenses were $61.1 million compared to $60.5 million in the prior year. Operating income increased by $1.0 million, to $3.3 million compared to $2.3 million in fiscal 2014. Income before taxes was $2.7 million compared to $0.7 million in the prior year period. Net income increased by $1.4 million to $1.8 million, or $0.11 per share, compared to $0.4 million, or $0.03 per share in the prior year.

Net revenues from Washington state gaming operations increased $2.3 million, or 4.3% to $56.0 million, while EBITDA increased $1.1 million to $7.4 million. South Dakota route operation revenues decreased $0.7 million to $8.4 million while EBITDA decreased $0.2 million to $0.6 million. Corporate expenses were unchanged at $2.3 million. Consolidated EBITDA increased $0.9 million, or 20%, to $5.6 million.

"Fiscal 2015 reflects strong operating performance from our Washington portfolio despite continued cost increases for payroll and health care. Our South Dakota operations continue to be pressured by reduced units and a soft gaming and tourist market," said President and CEO Michael Shaunnessy. "Combined, our operations generated an additional $1.0 million of operating income. Our improved financing structure with reduced interest rates and using free cash flow to reduce debt, contributed an additional $1.0 million to our pretax income."

The company reduced its outstanding bank debt by $5.0 million in the fiscal year, and as of April 30, 2015, had unrestricted cash on hand of $8.5 million, and outstanding bank debt of $7.4 million.

The company is progressing on the previously announced acquisition of Club Fortune Casino in Henderson, NV. A financing commitment has been obtained from Mutual of Omaha sufficient to close the transaction. The licensing process in Nevada is under way and we anticipate receiving the necessary regulatory approvals to allow for a closing during the third quarter of our fiscal year.

Fourth Quarter Results. For the fourth quarter of fiscal 2015, the company reported net revenues of $16.3 million compared to $16.0 million in the fourth quarter of fiscal 2014. Operating expenses increased to $15.2 million compared to $14.8 million in the prior year period. Net income was $0.6 million, or $0.04 per share for both periods.  

During the fourth quarter, net revenues from Washington increased to $14.5 million from the $14.1 million in the prior year period, however, EBITDA decreased to $2.1 million compared to $2.3 million in the prior year period primarily due to increased payroll, health care and gaming taxes. South Dakota route operation revenues decreased to $1.7 million from $1.9 million in the prior year period, primarily due to a reduction in units. EBITDA declined to $42,000 for the quarter, compared to EBITDA of $83,000 in the prior year. Corporate expenses were $0.6 million compared to $0.5 million in the prior year period. On a consolidated basis, adjusted EBITDA was $1.6 million compared to $1.9 million in the prior year period. Cash paid interest expense decreased $59,000 compared to the prior year period.

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.

Adjusted EBITDA reconciliations for the three months and fiscal years ended April 30, 2015 and April 30, 2014 are shown below:

     
Adjusted EBITDA reconciliation to net income:    
  For the three months ended
    April 30, 2015  April 30, 2014
     
Net income  $588,872 $646,089
Adjustments:    
Net interest expense  164,158 156,669
Income tax expense  292,688 399,239
Depreciation and amortization 524,438 571,245
(Gain) Loss on settlements - sale of assets (9,006) 11,676
Deferred rent 19,677 (3,537)
Stock option amortization 29,943 13,620
Employee stock purchase discount 1,977 1,391
(Increase) Decrease in swap fair value (27,129) 58,352
Adjusted EBITDA $1,585,618 $1,854,744
   
Adjusted EBITDA reconciliation to net income:  
  For the fiscal year ended
   April 30, 2015 April 30, 2014
     
Net Income $1,807,077 $447,981
Adjustments:    
Net interest expense 587,872 1,222,904
Income tax expense 885,819 282,758
Depreciation and amortization 2,168,003 2,263,499
Write downs and other charges 32,694 84,564
Deferred rent amortization 23,744 14,536
Stock option amortization 113,526 54,479
Employee stock purchase discount 7,331 7,384
Decrease in swap fair value 10,600 58,352
Write off of marketable securities 7,539 --
Loss on extinguishment of debt -- 283,550
     
Adjusted EBITDA $5,644,205  $4 ,720, 007 

Conference Call and Webcast

The company will host a conference call at 4:30 PM ET (1:30 PM PT) on July 27, 2015 to discuss the financial results and to provide a corporate update. The call can be accessed live by dialing (888) 417-8533. International callers can access the call by dialing (719) 785-1765. A simultaneous webcast of the call will be available by visiting http://www.nevadagold.com.

A telephone replay of the conference call will be available after 7:30 PM ET and can be accessed by dialing (877) 870-5176. International callers can access the replay by dialing (858) 384-5517; the pin number is 7930729. The replay will be available through August 3, 2015. The archived webcast will also be available on the company's website at http://ir.nevadagold.com/events.cfm.

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 10 gaming operations in Washington (wagoldcasinos.com) and a slot route operation in Deadwood, South Dakota (dakotaplayersclub.com).  For more information, visit www.nevadagold.com.

 
Nevada Gold & Casinos, Inc. 
Consolidated Balance Sheets
     
  April 30, April 30,
  2015 2014
     
ASSETS
Current assets:    
Cash and cash equivalents $8,541,670 $7,738,985
Restricted cash  1,724,439  1,388,995
Accounts receivable, net of allowances  297,316  252,504
Prepaid expenses  845,505  829,228
Deferred tax asset, current portion  863,366  98,643
Notes receivable, current portion  384,464  332,973
Inventory and other current assets  377,625  344,686
Total current assets  13,034,385  10,986,014
     
Real estate held for sale  1,100,000  1,100,000
Notes receivable, net of current portion  1,314,467  1,730,246
Goodwill  16,103,583  16,103,583
Identifiable intangible assets, net of accumulated amortization of $6,811,799 and $5,619,009 at April 30, 2015 and April 30, 2014, respectively  4,561,377  5,754,167
Property and equipment, net of accumulated depreciation of $4,451,553 and $3,632,349 at April 30, 2015 and April 30, 2014, respectively  3,990,791  4,289,178
Deferred tax asset, net of current portion  2,706,430  4,356,972
Other assets  331,980  486,466
Total assets $43,143,013 $44,806,626
     
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:    
Accounts payable and accrued liabilities $1,222,139 $985,017
Accrued payroll and related  1,581,557  973,328
Accrued player's club points and progressive jackpots  1,993,537  1,684,452
Long-term debt, current portion --  1,625,000
Total current liabilities 4,797,233 5,267,797
Long-term debt, net of current portion 7,350,000 10,725,000
Other long term liabilities  570,717  486,870
Total liabilities 12,717,950 16,479,667
     
Stockholders' equity:    
Common stock, $0.12 par value per share; 50,000,000 shares authorized; 17,134,928 and 16,980,676 shares issued and 16,352,091 and 16,197,839 shares outstanding at April 30, 2015, and April 30, 2014, respectively  2,056,200 2,037,689
Additional paid-in capital 24,845,094 24,578,117
Retained earnings 10,455,804 8,648,727
Treasury stock, 782,837 shares at April 30, 2015 and April 30, 2014, at cost (6,932,035) (6,932,035)
Accumulated other comprehensive loss -- (5,539)
Total stockholders' equity 30,425,063 28,326,959
Total liabilities and stockholders' equity $43,143,013 $44,806,626
 
Nevada Gold & Casinos, Inc. 
Consolidated Statements of Operations
         
  Three Months Ended Twelve Months Ended
  April 30, April 30, April 30, April 30,
  2015 2014 2015 2014
Revenues:        
Casino $14,309,932 $14,093,561 $56,710,812 $55,332,569
Food and beverage 2,623,876 2,577,761  10,225,484  10,053,883
Other 447,798 447,161  1,782,013  1,742,710
Gross revenues 17,381,606 17,118,483  68,718,309  67,129,162
Less promotional allowances (1,117,487) (1,085,552) (4,368,756) (4,321,768)
Net revenues 16,264,119 16,032,931  64,349,553  62,807,394
         
 Expenses:         
Casino 7,813,471 7,810,946  31,795,905  32,081,242
Food and beverage 1,353,049 1,292,352  5,386,699  5,114,077
Marketing and administrative 4,335,361 3,991,514  16,888,629  16,369,505
Facility 533,493 490,906  2,059,730  1,951,314
Corporate expense 629,559 544,168  2,443,805  2,384,596
Other  65,165  59,775  275,181  263,052
Depreciation and amortization  524,438  571,245  2,168,003  2,263,499
Write downs and other charges  (9,006)  11,676  32,694  84,564
Total operating expenses  15,245,530  14,772,582  61,050,646  60,511,849
Operating income  1,018,589  1,260,349  3,298,907  2,295,545
Non-operating income (expenses):        
Interest income  27,056  31,677  117,639  133,404
Interest expense (191,214) (188,346) (705,511) (1,356,308)
Decrease in swap fair value  27,129 (58,352) (10,600) (58,352)
Write-off of marketable securities -- -- (7,539) --
Loss on extinguishment of debt -- -- --  (283,550)
         
Income before income tax  881,560  1,045,328  2,692,896  730,739
Income tax expense (292,688) (399,239) (885,819) (282,758)
Net income $588,872 $646,089 $1,807,077 $447,981
Per share information:        
Net income per common share - basic and diluted $0.04 $0.04 $0.11 $0.03
         
         
         
Basic weighted average number of shares outstanding 16,276,403 16,165,930 16,228,396 16,127,654
         
Diluted weighted average number of shares outstanding 16,478,445 16,366,283 16,345,795 16,294,487
CONTACT: Nevada Gold & Casinos, Inc.

         Michael P. Shaunnessy / James Meier

         (702) 685-1000



         Stonegate Capital Partners

         Casey Stegman

         (214) 987-4121
Source: Nevada Gold and Casinos Inc

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