LAS VEGAS, Sept. 14, 2017 (GLOBE NEWSWIRE) -- Nevada Gold & Casinos, Inc. (NYSE MKT:UWN) today announced financial results for the first quarter ended July 31, 2017.
For the first quarter of fiscal 2018, the Company reported net revenues of $18.5 million compared to $18.2 million in the first quarter of fiscal 2017. Operating expenses were $18.2 million in both periods. Operating income was $0.3 million compared to $0.1 million and net income was $0.1 million, or $0.01 per share, compared to a net loss of $0.1 million, or $0.01 loss per share, in the prior year period.
Net revenues from the Washington state gaming operations increased to $13.2 million from $13.1 million in the prior year period. Business volumes were down approximately 2%, or $0.2 million, but a higher table games hold percentage, although normal, was responsible for approximately $0.3 million in additional revenue for the quarter. Higher operating expenses, primarily payroll, caused adjusted EBITDA to decrease to $1.2 million compared to $1.4 million in the prior year.
Club Fortune revenues increased to $3.4 million from $3.2 million in the prior year while EBITDA improved significantly to $0.5 million compared to $0.1 million. South Dakota route revenues were $1.9 million in both periods, and adjusted EBITDA was $0.1 million in both periods. Corporate adjusted EBITDA was negative $0.6 million in both periods and on a consolidated basis, adjusted EBITDA was $1.1 million in both periods.
“Our Washington operations faced 44 consecutive days without rain in Seattle during the quarter, on the way to an all time record of 55 days. Our customers were busy enjoying the beautiful outdoors,” said Michael P. Shaunnessy, President and CEO. “At Club Fortune our operating and marketing initiatives continue to yield improved margins and incremental EBITDA.”
The Company’s outstanding bank debt was $12.3 million as of July 31, 2017, and unrestricted cash on hand was $8.3 million.
On July 12, 2017 the Company purchased 755,644 shares of its stock at a price of $2.15 per share which completed the initial $2.0 million authorization. The Board has approved an additional $2.0 million share buyback.
Conference Call and Webcast
The Company will host a conference call at 4:30 PM ET (1:30 PM PT), today, September 14, 2017 to discuss the financial results and to provide a corporate update. The call can be accessed live by dialing (877) 591-4953. International callers can access the call by dialing (719) 457-2628.
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 8900356. The replay will be available through September 21, 2017.
(1) 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.
The following table reconciles net income (loss) to Adjusted EBITDA for the three months ended July 31, 2017 and 2016:
| For the three months ended | |||||||
| July 31, 2017 | July 31, 2016 | ||||||
| Net income (loss) | $ | 124,002 | $ | (99,573 | ) | ||
| Adjustments: | |||||||
| Net interest expense and change in swap fair value | 152,015 | 217,730 | |||||
| Income tax expense (benefit) | 60,332 | (47,988 | ) | ||||
| Depreciation and amortization | 711,436 | 776,512 | |||||
| Acquisition expenses | - | 113,900 | |||||
| Stock compensation | 62,290 | 72,463 | |||||
| Loss on sale of assets | - | 8,371 | |||||
| Amortization of deferred rent | 724 | 12,498 | |||||
| Adjusted EBITDA | $ | 1,110,799 | $ | 1,053,913 | |||
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 nine 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.
Contacts:
Nevada Gold & Casinos, Inc.
Michael P. Shaunnessy / James Meier
(702) 685-1000
Stonegate Capital Partners
Preston Graham
(972) 850-2001
| Nevada Gold & Casinos, Inc. | ||||||||
| Consolidated Balance Sheets | ||||||||
| July 31, | April 30, | |||||||
| 2017 | 2017 | |||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 8,286,433 | $ | 10,631,903 | ||||
| Restricted cash | 2,043,453 | 1,994,312 | ||||||
| Accounts receivable, net of allowances | 837,167 | 808,484 | ||||||
| Prepaid expenses | 1,875,192 | 1,209,507 | ||||||
| Notes receivable, current portion | 307,120 | 383,093 | ||||||
| Inventory and other current assets | 428,789 | 423,113 | ||||||
| Total current assets | 13,778,154 | 15,450,412 | ||||||
| Real estate held for sale | 750,000 | 750,000 | ||||||
| Goodwill | 16,923,588 | 16,923,588 | ||||||
| Intangible assets, net of accumulated amortization | 3,893,793 | 4,107,328 | ||||||
| Property and equipment, net of accumulated depreciation | 13,718,422 | 13,958,715 | ||||||
| Deferred tax asset | 1,497,138 | 1,557,470 | ||||||
| Other assets | 70,000 | 70,000 | ||||||
| Total assets | $ | 50,631,095 | $ | 52,817,513 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued liabilities | $ | 1,289,222 | $ | 1,303,571 | ||||
| Accrued payroll and related | 1,207,431 | 1,925,592 | ||||||
| Accrued player's club points and progressive jackpots | 2,354,055 | 2,348,068 | ||||||
| Total current liabilities | 4,850,708 | 5,577,231 | ||||||
| Long-term debt | 12,085,771 | 12,061,411 | ||||||
| Other long-term liabilities | 671,797 | 667,110 | ||||||
| Total liabilities | 17,608,276 | 18,305,752 | ||||||
| Stockholders' equity: | ||||||||
| Common stock, $0.12 par value per share; 50,000,000 shares authorized; 18,671,355 and 18,627,167 shares issued and 16,836,209 and 17,547,665 shares outstanding at July 31, 2017, and April 30, 2017, respectively | 2,240,571 | 2,235,269 | ||||||
| Additional paid-in capital | 27,455,708 | 27,449,319 | ||||||
| Retained earnings | 12,444,816 | 12,320,814 | ||||||
| Treasury stock, 1,835,146 and 1,079,502 shares at July 31, 2017 and April 30, 2017, respectively, at cost | (9,118,276 | ) | (7,493,641 | ) | ||||
| Total stockholders' equity | 33,022,819 | 34,511,761 | ||||||
| Total liabilities and stockholders' equity | $ | 50,631,095 | $ | 52,817,513 | ||||
| Nevada Gold & Casinos, Inc. | ||||||||
| Consolidated Statements of Operations | ||||||||
| (unaudited) | ||||||||
| Three Months Ended | ||||||||
| July 31, | July 31, | |||||||
| 2017 | 2016 | |||||||
| Revenues: | ||||||||
| Casino | $ | 16,406,606 | $ | 16,170,503 | ||||
| Food and beverage | 3,159,224 | 3,301,393 | ||||||
| Other | 515,404 | 540,716 | ||||||
| Gross revenues | 20,081,234 | 20,012,612 | ||||||
| Less promotional allowances | (1,592,710 | ) | (1,782,833 | ) | ||||
| Net revenues | 18,488,524 | 18,229,779 | ||||||
| Expenses: | ||||||||
| Casino | 9,415,375 | 9,187,592 | ||||||
| Food and beverage | 1,579,992 | 1,531,837 | ||||||
| Other | 53,452 | 54,951 | ||||||
| Marketing and administrative | 5,286,722 | 5,270,278 | ||||||
| Facility | 465,814 | 533,336 | ||||||
| Corporate | 639,384 | 796,733 | ||||||
| Depreciation and amortization | 711,436 | 776,512 | ||||||
| Loss on disposal of assets | - | 8,371 | ||||||
| Total operating expenses | 18,152,175 | 18,159,610 | ||||||
| Operating income | 336,349 | 70,169 | ||||||
| Non-operating income (expenses): | ||||||||
| Interest income | 12,465 | 22,968 | ||||||
| Interest expense and amortization of loan issue costs | (160,515 | ) | (189,984 | ) | ||||
| Change in swap fair value | (3,965 | ) | (50,714 | ) | ||||
| Income (loss) before income tax expense | 184,334 | (147,561 | ) | |||||
| Income tax (expense) benefit | (60,332 | ) | 47,988 | |||||
| Net income (loss) | $ | 124,002 | $ | (99,573 | ) | |||
| Per share information: | ||||||||
| Net income (loss) per common share - basic and diluted | $ | 0.01 | $ | (0.01 | ) | |||