Nevada Gold Announces Third Quarter 2012 Financial Results

HOUSTON, March 16, 2012 (GLOBE NEWSWIRE) -- Nevada Gold & Casinos, Inc. (NYSE Amex:UWN) today announced financial results for the third quarter ended January 31, 2012.

Third Quarter 2012 Financial Highlights included:

• Net revenues increased 10.6% to $13.5 million, compared to $12.2 million in the third quarter ended January 31, 2011;
• Operating income from continuing operations of $294,000 compared to operating income of $284,000 in the third quarter of fiscal 2011;
• Net loss from continuing operations of $(0.1) million compared to net income of $0.3 million a year ago;
• Net loss from continuing operations per basic and diluted common share of $0.00 compared to a net income per basic and diluted common share of $0.02 in the year ago period;
• Adjusted EBITDA⁽¹⁾ from continuing operations of $0.8 million compared to $0.7 million in the third quarter of fiscal 2011.

"So far, fiscal year 2012 has been a very productive year for Nevada Gold and the third quarter was no exception. During the quarter we completed the acquisition of A.G. Trucano, Son & Grandsons, Inc., a route operator comprised of 900 slot machines based in Deadwood, South Dakota. We also received approval for our state gaming licenses from the Nevada Gaming Commission and from the South Dakota Commission on Gaming," said Robert Sturges, CEO of Nevada Gold. "We are pleased with these developments and especially look forward to integrating A.G. Trucano into our business. Our operating performance for the quarter improved over last year despite lower than expected hold percentages. It is noteworthy that our business volume and head counts showed solid growth this quarter. We are encouraged by recent trends so far this quarter as hold percentages have begun to normalize and we believe we have positioned the Company for long term success."

Financial Results

For the third quarter of fiscal 2012, net revenues increased to $13.5 million compared to $12.2 million in the third quarter of fiscal 2011. Operating expenses increased to $13.2 million from $11.9 million in the third quarter of 2011. The increase is primarily due to the Red Dragon acquisition in July of 2011.

Net loss from continuing operations was $(0.1) million compared to $0.3 million income in the third quarter of fiscal 2011. Net loss from continuing operations per diluted common share was $0.00 compared to net income per diluted common share of $0.02 in the prior year period. The decrease is primarily due to the $0.4 million tax benefit recorded in the third quarter of 2011 compared to only $58,000 in the third quarter of 2012. 

Basic and diluted weighted average common shares outstanding in the fiscal third quarter of 2012 was 15.6 million versus 12.8 million in the fiscal third quarter of 2011.

Outlook

The Company expects its normalized EBITDA, after full integration of the recent A.G. Trucano acquisition and the divestiture of the Colorado Grande Casino to be approximately $5.0 million annually.

Earnings Conference Call and Webcast

The Company will host a conference call to discuss third quarter 2012 financial results today at 8:45 AM ET. The conference call can be accessed live over the phone by dialing (888) 262-8943, or, for international callers, 913-312-4372. 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 5517047. The replay will be available until Friday, March 23, 2012. The call will be webcast live from the Company's website at www.NevadaGold.com under the investor relations section.

(1) 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 foreign currency transaction gains and losses, non-cash stock option grants, 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 who also publicize this information.

Adjusted EBITDA is not a measurement of financial performance under GAAP and should not be considered as alternative to net income as an indicator of our operating performance or any other measure of performance derived in accordance with GAAP.

Adjusted EBITDA reconciliation to net loss:
	For the three months ended
	January 31, 2012	January 31, 2011
Net loss	$ (288,047)	$ 137,531
Add:
Income tax benefit	(57,991)	(367,739)
Net interest expense	425,226	354,212
Depreciation and amortization	472,963	422,556
Stock option grants	24,964	12,101
Loss on operations held for sale	214,725	159,621
Acquisition expenses	25,219	22,520
Adjusted EBITDA	$ 817,059	$ 740,802

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 12 gaming operations in Colorado and Washington and a slot route operation in Deadwood, South Dakota. 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, Bothell and Renton, Washington, the Club Hollywood Casino located in Shoreline, Washington, the Royal Casino located in Everett, Washington, the Red Dragon Casino in Mountlake Terrace, Washington, the Golden Nugget Casino located in Tukwila, Washington and the AG Trucano slot route operation in Deadwood, SD. 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. On November 23, 2011, the Company signed an agreement to sell the Colorado Grande Casino. Closing of the transaction is subject to regulatory approval and is expected to take place before the end of the Company's 2012 fiscal year or shortly thereafter. 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.
Consolidated Balance Sheets
	January 31, 2012	April 30, 2011
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$ 5,238,410	$ 5,656,110
Restricted cash	1,469,093	944,359
Accounts receivable	516,927	571,032
Prepaid expenses	1,345,950	785,975
Income tax receivable	17,428	176,750
Other current assets	327,923	290,433
Assets of operations held for sale	32,035	36,187
Total current assets	8,947,766	8,460,846
Investments in development projects	651,130	189,692
Real estate held for sale	1,100,000	3,373,966
Notes receivable - development projects, net of allowances	1,700,000	1,700,000
Goodwill	15,862,386	13,474,980
Identifiable intangible assets, net of accumulated amortization of $2,815,643 and $1,852,553 at January 31, 2012 and April 30, 2011, respectively	7,712,313	7,361,298
Property and equipment, net of accumulated depreciation of $1,558,821 and $1,189,555 at January 31, 2012 and April 30, 2011, respectively	5,599,016	3,909,157
Deferred tax asset, net	3,481,845	1,460,884
BVD/BVO receivable	4,000,000	4,000,000
Other assets	1,419,060	574,339
Assets of operations held for sale	4,261,756	4,514,715
Total assets	$ 54,735,272	$ 49,019,877
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$ 2,837,605	$ 1,442,661
Accrued interest payable	66,382	118,024
Other accrued liabilities	1,931,306	1,518,315
Other current liabilities	--	100,000
Long-term debt, current portion	1,400,324	--
Liabilities of operations held for sale	415,982	405,249
Total current liabilities	6,651,599	3,584,249
Long-term debt, net of current portion	15,465,000	15,070,000
Total liabilities	22,116,599	18,654,249
Stockholders' equity:
Common stock, $0.12 par value per share; 50,000,000 shares authorized; 16,676,711 and 13,968,210 shares issued and 15,868,874 and 12,797,010 shares outstanding at January 31, 2012, and April 30, 2011, respectively	2,001,205	1,676,185
Additional paid-in capital	24,091,732	20,086,236
Retained earnings	13,684,647	18,977,946
Treasury stock, 807,837 and 1,171,200 shares at January 31, 2012 and April 30, 2011, respectively, at cost	(7,153,372)	(10,369,200)
Accumulated other comprehensive loss	(5,539)	(5,539)
Total stockholders' equity	32,618,673	30,365,628
Total liabilities and stockholders' equity	$ 54,735,272	$ 49,019,877

Nevada Gold & Casinos, Inc.
Consolidated Statements of Operations
(unaudited)
	Three Months Ended		Nine Months Ended
	January 31, 2012	January 31, 2011	January 31, 2012	January 31, 2011
Revenues:
Casino	$ 11,357,849	$ 10,272,303	$ 33,175,572	$ 24,911,147
Food and beverage	2,981,314	2,530,463	8,348,730	5,989,892
Other	623,507	515,863	1,693,107	1,262,280
Gross revenues	14,962,670	13,318,629	43,217,409	32,163,319
Less promotional allowances	(1,485,186)	(1,134,414)	(4,156,869)	(2,675,871)
Net revenues	13,477,484	12,184,215	39,060,540	29,487,448
Expenses:
Casino	5,680,916	4,993,606	16,683,807	12,401,530
Food and beverage	1,020,909	978,616	3,022,294	2,377,394
Marketing and administrative	4,121,286	3,954,693	12,057,631	8,826,340
Facility	518,156	393,676	1,529,876	970,462
Corporate expense	866,594	731,908	2,840,780	2,847,975
Legal expense	36,871	25,000	64,461	263,349
Depreciation and amortization	472,963	422,556	1,376,167	1,154,803
Acquisition costs	25,219	22,520	90,885	805,149
Impairment of assets	--	--	2,273,966	--
Excise taxes	296,844	292,628	884,839	649,717
Other	143,813	85,387	380,927	206,130
Total operating expenses	13,183,571	11,900,590	41,205,633	30,502,849
Operating income (loss)	293,913	283,625	(2,145,093)	(1,015,401)
Non-operating income (expenses):
Gain (loss) on sale of assets	--	--	(22,654)	392,243
Interest income	42,849	42,865	128,551	131,980
Interest expense	(393,177)	(385,827)	(1,152,314)	(1,006,707)
Amortization of loan issue costs	(74,898)	(11,250)	(119,484)	(33,750)
Loss on extinguishment of debt	--	--	(154,270)	--
Loss before income tax benefit	(131,313)	(70,587)	(3,465,264)	(1,531,635)
Income tax benefit	57,991	367,739	1,381,510	857,039
Net income (loss) from continuing operations	$ (73,322)	$ 297,152	$ (2,083,754)	$ (674,596)
Net loss from operations held for sale, net of taxes	(214,725)	(159,621)	(516,758)	(93,552)
Net income (loss)	$ (288,047)	$ 137,531	$ (2,600,512)	$ (768,148)
Per share information:
Net income (loss) per common share - basic and diluted for continuing operations	$ (0.00)	$ 0.02	$ (0.15)	$ (0.05)
Net loss per common share - basic and diluted for operations held for sale	$ (0.01)	$ (0.01)	$ (0.04)	$ (0.01)
Basic weighted average number of shares outstanding	15,631,040	12,764,130	13,888,835	12,764,130
Diluted weighted average number of shares outstanding	15,631,040	12,789,130	13,888,835	12,764,130

CONTACT: Nevada Gold & Casinos, Inc.

         Robert B. Sturges, CEO or Jim Kohn, CFO

         (713) 621-2245



         ICR

         Don Duffy

         (203) 682-8200

Source: Nevada Gold & Casinos, Inc.

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