Nevada Gold & Casinos Reports Fourth Quarter and Fiscal Year 2018 Results
The financial results reflect an adjustment related to progressive liabilities for
FOURTH QUARTER
For the fourth quarter of fiscal 2018, the Company reported net revenues of
During the fourth quarter, net revenues from
FISCAL YEAR
For the fiscal year 2018, the Company reported net revenues of
Net revenues for the fiscal year from
During the fiscal year the Company repaid
STRATEGIC REVIEW
The Company’s Strategic Review is ongoing and has resulted to date in significant steps to restructure the Company’s operations. On
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 reconciliation to Adjusted EBITDA:
For the three months ended | ||||||||
April 30, 2018 | April 30, 2017 | |||||||
Net income | $ | 367,121 | $ | 1,196,560 | ||||
Adjustments: | ||||||||
Net interest expense | 158,955 | 149,772 | ||||||
Income tax expense | 134,930 | 578,237 | ||||||
Depreciation and amortization | 522,261 | 714,652 | ||||||
Write downs and other charges | 358,807 | - | ||||||
Deferred rent amortization | 3,868 | 5,168 | ||||||
Stock compensation amortization | 14,702 | 2,980 | ||||||
Acquisition and sale related expenses | 589,839 | - | ||||||
Increase in swap fair value | (37,575 | ) | (23,865 | ) | ||||
Loss on disposal of assets | 2,090 | 20,693 | ||||||
Adjusted EBITDA | $ | 2,114,998 | $ | 2,644,197 | ||||
For the fiscal year ended | ||||||||
April 30, 2018 | April 30, 2017 | |||||||
Net income | $ | 1,323,425 | $ | 563,964 | ||||
Adjustments: | ||||||||
Net interest expense | 591,146 | 666,543 | ||||||
Income tax expense | 853,426 | 790,829 | ||||||
Depreciation and amortization | 2,370,752 | 3,021,280 | ||||||
Acquisition and sale related expenses | 589,839 | 113,900 | ||||||
Write downs and other charges | 358,807 | 1,101,472 | ||||||
Deferred rent amortization | 9,943 | 36,068 | ||||||
Stock compensation amortization | 104,140 | 124,279 | ||||||
Increase in swap fair value | (171,018 | ) | (250,385 | ) | ||||
Loss on disposal of assets | 7,863 | 77,183 | ||||||
Adjusted EBITDA | $ | 6,038,323 | $ | 6,245,133 | ||||
Conference Call and Webcast
The Company will host a conference call at
A telephone replay of the conference call will be available after
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
About
Contacts:
(702) 685-1000
(972) 850-2001
Nevada Gold & Casinos, Inc. | |||||||||||||||
Consolidated Statements of Operations | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
April 30, | April 30, | April 30, | April 30, | ||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Revenues: | |||||||||||||||
Casino | $ | 16,172,021 | $ | 17,607,040 | $ | 65,767,827 | $ | 65,838,576 | |||||||
Food and beverage | 3,435,099 | 3,424,377 | 13,252,982 | 13,439,326 | |||||||||||
Other | 494,052 | 517,842 | 1,978,619 | 2,140,113 | |||||||||||
Gross revenues | 20,101,172 | 21,549,259 | 80,999,428 | 81,418,015 | |||||||||||
Less promotional allowances | (1,615,610 | ) | (1,707,086 | ) | (6,446,902 | ) | (6,959,066 | ) | |||||||
Net revenues | 18,485,562 | 19,842,173 | 74,552,526 | 74,458,949 | |||||||||||
Expenses: | |||||||||||||||
Casino | 8,779,150 | 9,307,408 | 36,476,733 | 36,488,019 | |||||||||||
Food and beverage | 1,790,000 | 1,606,638 | 6,801,269 | 6,194,698 | |||||||||||
Other | 49,923 | 55,034 | 206,764 | 208,090 | |||||||||||
Marketing and administrative | 4,754,110 | 5,168,141 | 20,715,534 | 20,752,103 | |||||||||||
Facility | 505,787 | 498,322 | 2,008,090 | 2,126,150 | |||||||||||
Corporate | 1,100,004 | 570,581 | 3,009,735 | 2,719,003 | |||||||||||
Depreciation and amortization | 522,261 | 714,652 | 2,370,752 | 3,021,280 | |||||||||||
Loss on sale of assets | 2,090 | 20,693 | 7,863 | 77,183 | |||||||||||
Write downs and other charges | 358,807 | - | 358,807 | 1,101,472 | |||||||||||
Total operating expenses | 17,862,132 | 17,941,469 | 71,955,547 | 72,687,998 | |||||||||||
Operating income from continuing operations | 623,430 | 1,900,704 | 2,596,979 | 1,770,951 | |||||||||||
Non-operating income (expenses): | |||||||||||||||
Interest income | 8,818 | 15,770 | 46,241 | 81,011 | |||||||||||
Interest expense and amortization of loan costs | (167,772 | ) | (165,542 | ) | (637,387 | ) | (747,554 | ) | |||||||
Change in swap fair value | 37,575 | 23,865 | 171,018 | 250,385 | |||||||||||
Income before income tax | 502,051 | 1,774,797 | 2,176,851 | 1,354,793 | |||||||||||
Income tax expense | (134,930 | ) | (578,237 | ) | (853,426 | ) | (790,829 | ) | |||||||
Net income | $ | 367,121 | $ | 1,196,560 | $ | 1,323,425 | $ | 563,964 | |||||||
Per share information: | |||||||||||||||
Net income per common share - basic and diluted | $ | 0.02 | $ | 0.07 | $ | 0.08 | $ | 0.03 | |||||||
Basic weighted average number of shares outstanding | 16,848,182 | 17,583,101 | 16,985,532 | 17,688,229 | |||||||||||
Diluted weighted average number of share outstanding | 17,213,052 | 17,918,456 | 17,350,402 | 17,990,524 | |||||||||||
Nevada Gold & Casinos, Inc. | |||||||
Consolidated Balance Sheets | |||||||
April 30, | April 30, | ||||||
2018 | 2017 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 9,508,931 | $ | 10,631,903 | |||
Restricted cash | 2,369,063 | 1,994,312 | |||||
Accounts receivable, net of allowances | 485,774 | 808,484 | |||||
Prepaid expenses | 1,436,538 | 1,209,507 | |||||
Notes receivable, current portion | - | 383,093 | |||||
Inventory and other current assets | 430,296 | 423,113 | |||||
Total current assets | 14,230,602 | 15,450,412 | |||||
Real estate held for sale | 750,000 | 750,000 | |||||
Goodwill | 16,923,588 | 16,923,588 | |||||
Identifiable intangible assets, net of accumulated | |||||||
amortization of $9,361,189 and $8,869,497 at April 30, | |||||||
2018 and April 30, 2017, respectively | 3,497,779 | 4,107,328 | |||||
Property and equipment, net of accumulated depreciation | |||||||
of $9,260,152 and $7,635,620 at April 30, 2018 and | |||||||
April 30, 2017, respectively | 12,812,411 | 13,958,715 | |||||
Deferred tax asset | 704,044 | 1,557,470 | |||||
Other assets | 204,672 | 70,000 | |||||
Total assets | $ | 49,123,096 | $ | 52,817,513 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable and accrued liabilities | $ | 1,695,495 | $ | 1,303,571 | |||
Accrued payroll and related | 2,049,313 | 1,925,592 | |||||
Accrued player's club points and progressive jackpots | 2,592,456 | 2,348,068 | |||||
Total current liabilities | 6,337,264 | 5,577,231 | |||||
Long-term debt | 7,895,240 | 12,061,411 | |||||
Other long-term liabilities | 637,207 | 667,110 | |||||
Total liabilities | 14,869,711 | 18,305,752 | |||||
Stockholders' equity: | |||||||
Common stock, $0.12 par value per share; 50,000,000 | |||||||
shares authorized; 18,715,985 and 18,627,167 shares issued and 16,848,182 and 17,547,665 shares outstanding at April 30, 2018, and April 30, 2017, respectively |
2,245,927 | 2,235,269 | |||||
Additional paid-in capital | 27,557,151 | 27,449,319 | |||||
Retained earnings | 13,644,239 | 12,320,814 | |||||
Treasury stock, 1,867,803 and 1,079,502 shares at April 30, 2018 and April 30, 2017, at cost |
(9,193,932 | ) | (7,493,641 | ) | |||
Total stockholders' equity | 34,253,385 | 34,511,761 | |||||
Total liabilities and stockholders' equity | $ | 49,123,096 | $ | 52,817,513 | |||
Source: Nevada Gold & Casinos, Inc.