LAS VEGAS, July 29, 2014 (GLOBE NEWSWIRE) -- Nevada Gold & Casinos, Inc. (NYSE MKT:UWN) today announced financial results for the fourth quarter ended April 30, 2014.
For the fourth quarter of fiscal 2014, the company reported net revenues of $16.0 million compared to $16.5 million in the fourth quarter of fiscal 2013. Operating expenses decreased to $14.8 million compared to $15.5 million in the prior year period. Operating income from continuing operations increased to $1.3 million compared to $1.1 million in the prior year period. Income before taxes also increased to $1.0 million compared to $0.7 in the prior year period. Net income from continuing operations was $0.7 million, compared to $0.5 million in the prior year period.
During the fourth quarter, net revenues from Washington were $14.1 million, a slight decrease from the $14.2 million in the prior year period, however, EBITDA improved slightly to $2.3 million compared to $2.2 million in the prior year period. South Dakota route operation revenues decreased to $1.9 million from $2.3 million in the prior year period, primarily due to a reduction in units. EBITDA declined to $83,000 for the quarter, compared to EBITDA of $147,000 in the prior year. Corporate expenses were $0.5 million compared to $0.7 million in the prior year period. On a consolidated basis, adjusted EBITDA was $1.9 million compared to $1.7 million in the prior year period. Net interest expense decreased to $157,000 compared to $393,000, in the prior year period.
"Our fiscal fourth quarter reflects the first full benefit of our debt refinancing completed last December. With the reduced interest expense and solid operating performance, we expect to generate strong earnings growth and free cash flow in fiscal 2015 and forward," said President and CEO Michael Shaunnessy.
For the full fiscal year 2014, net revenues were $62.8 million compared to $65.9 million in fiscal year 2013. Operating expenses were $60.5 million compared to $63.5 million in the prior year. Operating income from continuing operations was $2.3 million compared to $2.4 million in fiscal 2013. Income before taxes was $0.7 million compared to $0.7 million in the prior year period. Net income from continuing operations was $0.5 million compared to $0.1 in the prior year.
(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.
Adjusted EBITDA reconciliations for the three months and fiscal years ended April 30, 2014 and April 30, 2013 are shown below:
| Adjusted EBITDA reconciliation to net income: | ||
| For the three months ended | ||
| April 30, 2014 | April 30, 2013 | |
| Net income | $ 646,089 | $ 452,434 |
| Add: | ||
| Income tax expense (benefit) | 399,239 | 211,065 |
| Net interest expense (income) | 156,669 | 392,757 |
| Depreciation and amortization | 571,245 | 498,764 |
| Loss on settlements - sale of assets | 11,676 | 986 |
| Deferred rent | (3,537) | 19,034 |
| Stock option amortization | 13,620 | 13,620 |
| Employee stock purchase discount | 1,391 | -- |
| Decrease in swap fair value | 58,352 | -- |
| Relocation expenses | -- | 127,029 |
| Adjusted EBITDA | $ 1,854,744 | $ 1,715,689 |
| Adjusted EBITDA reconciliation to net income: | ||
| For the fiscal year ended | ||
| April 30, 2014 | April 30, 2013 | |
| Net income | $ 447,981 | $ 36,097 |
| Add: | ||
| Income tax expense (benefit) | 282,758 | 560,052 |
| Net interest expense (income) | 1,222,904 | 1,704,027 |
| Depreciation and amortization | 2,263,499 | 2,126,888 |
| Loss on settlements - sale of assets | 27,605 | 6,081 |
| Deferred rent | 14,536 | 76,136 |
| Stock option amortization | 54,479 | 137,858 |
| Employee stock purchase discount | 7,384 | -- |
| Loss on debt extinguishment | 283,550 | -- |
| Decrease in swap fair value | 58,352 | -- |
| Relocation expenses | -- | 127,029 |
| Severance expense | -- | 637,868 |
| Impairments, write-offs, recoveries, net | 56,959 | 257,733 |
| Loss on operations held for sale | -- | 91,603 |
| Adjusted EBITDA | $ 4,720,007 | $ 5,762,182 |
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 ). The Company also has a social gaming application, Gold Star Slots, available on Facebook and in the Apple store. For more information, visit www.nevadagold.com .
| Nevada Gold & Casinos, Inc. | ||
| Consolidated Balance Sheets | ||
| April 30, | April 30, | |
| 2014 | 2013 | |
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 7,738,985 | $ 6,723,919 |
| Restricted cash | 1,388,995 | 1,306,487 |
| Accounts receivable | 252,504 | 445,481 |
| Prepaid expenses | 829,228 | 854,092 |
| Deferred tax asset, current portion | 98,643 | 67,123 |
| Notes receivable, current portion | 332,973 | 216,596 |
| Inventory and other current assets | 344,686 | 373,923 |
| Total current assets | 10,986,014 | 9,987,621 |
| Investments in development projects | -- | 56,959 |
| Real estate held for sale | 1,100,000 | 1,100,000 |
| Notes receivable, net of current portion | 1,730,246 | 2,082,853 |
| Goodwill | 16,103,583 | 16,103,583 |
| Identifiable intangible assets, net of accumulated amortization of $5,619,009 and $4,413,439 at April 30, 2014 and April 30, 2013, respectively | 5,754,167 | 6,959,738 |
| Property and equipment, net of accumulated depreciation | ||
| of $3,632,349 and $2,599,940 at April 30, 2014 and | ||
| April 30, 2013, respectively | 4,289,178 | 5,028,122 |
| Deferred tax asset, net of current portion | 4,356,972 | 4,671,250 |
| Other assets | 486,466 | 533,860 |
| Total assets | $ 44,806,626 | $ 46,523,986 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Accounts payable and accrued liabilities | $ 1,427,010 | $ 2,024,465 |
| Accrued interest payable | 37,470 | 34,393 |
| Other accrued liabilities | 2,178,317 | 2,127,140 |
| Long-term debt, current portion | 1,625,000 | 1,280,000 |
| Total current liabilities | 5,267,797 | 5,465,998 |
| Long-term debt, net of current portion | 10,725,000 | 12,930,000 |
| Other long term liabilities | 486,870 | 421,253 |
| Total liabilities | 16,479,667 | 18,817,251 |
| Stockholders' equity: | ||
| Common stock, $0.12 par value per share; 50,000,000 shares authorized; 16,980,676 and 16,864,122 shares issued and 16,197,839 and 16,081,285 shares outstanding at April 30, 2014, and April 30, 2013, respectively | 2,037,689 | 2,023,705 |
| Additional paid-in capital | 24,578,117 | 24,419,858 |
| Retained earnings | 8,648,727 | 8,200,746 |
| Treasury stock, 782,837 shares at April 30, 2014 and April 30, 2013, at cost | (6,932,035) | (6,932,035) |
| Accumulated other comprehensive loss | (5,539) | (5,539) |
| Total stockholders' equity | 28,326,959 | 27,706,735 |
| Total liabilities and stockholders' equity | $ 44,806,626 | $ 46,523,986 |
| Nevada Gold & Casinos, Inc. | ||||
| Consolidated Statements of Operations | ||||
| Three Months Ended | Twelve Months Ended | |||
| April 30, | April 30, | April 30, | April 30, | |
| 2014 | 2013 | 2014 | 2013 | |
| Revenues: | ||||
| Casino | $ 14,093,561 | $ 14,651,475 | $ 55,332,569 | $ 58,393,105 |
| Food and beverage | 2,577,761 | 2,510,539 | 10,053,883 | 10,103,913 |
| Other | 447,161 | 443,607 | 1,742,710 | 1,808,538 |
| Gross revenues | 17,118,483 | 17,605,621 | 67,129,162 | 70,305,556 |
| Less promotional allowances | (1,085,552) | (1,086,239) | (4,321,768) | (4,381,638) |
| Net revenues | 16,032,931 | 16,519,382 | 62,807,394 | 65,923,918 |
| Expenses: | ||||
| Casino | 7,810,946 | 8,155,865 | 32,081,242 | 33,016,277 |
| Food and beverage | 1,292,352 | 1,270,391 | 5,114,077 | 4,838,447 |
| Marketing and administrative | 3,991,514 | 4,095,164 | 16,369,505 | 16,652,746 |
| Facility | 490,906 | 564,070 | 1,951,314 | 2,270,774 |
| Corporate and legal expense | 544,168 | 795,361 | 2,384,596 | 4,051,972 |
| Depreciation and amortization | 571,245 | 498,764 | 2,263,499 | 2,126,888 |
| Loss on settlements - sale of assets | 11,676 | 986 | 27,605 | 6,081 |
| Write-off of project development costs | -- | -- | 56,959 | 257,733 |
| Other | 59,775 | 82,525 | 263,052 | 310,411 |
| Total operating expenses | 14,772,582 | 15,463,126 | 60,511,849 | 63,531,329 |
| Operating income from continuing operations | 1,260,349 | 1,056,256 | 2,295,545 | 2,392,589 |
| Non-operating income (expenses): | ||||
| Interest income | 31,677 | 34,398 | 133,404 | 120,349 |
| Interest expense | (138,929) | (345,512) | (1,097,005) | (1,494,989) |
| Interest rate swap expense | (26,912) | -- | (26,912) | -- |
| Decrease in swap fair value | (58,352) | -- | (58,352) | -- |
| Amortization of loan issue costs | (22,505) | (81,643) | (232,391) | (329,387) |
| Loss on extinguishment of debt | -- | -- | (283,550) | -- |
| Income before income tax | 1,045,328 | 663,499 | 730,739 | 688,562 |
| Income tax expense | (399,239) | (211,065) | (282,758) | (560,052) |
| Net income from continuing operations | 646,089 | 452,434 | 447,981 | 128,510 |
| Net loss from operations held for sale, net of taxes | -- | -- | -- | (91,603) |
| Net income | $ 646,089 | $ 452,434 | $ 447,981 | $ 36,907 |
| Per share information: | ||||
| Net income per common share - basic and diluted for continuing operations | $ 0.04 | $ 0.03 | $ 0.03 | $ 0.01 |
| Net loss per common share - basic and diluted for discontinued operations | $ -- | $ -- | $ -- | $ (0.01) |
| Basic weighted average number of shares outstanding | 16,165,930 | 16,065,719 | 16,127,654 | 15,997,546 |
| Diluted weighted average number of shares outstanding | 16,366,283 | 16,110,304 | 16,294,487 | 16,020,789 |
Nevada Gold & Casinos, Inc. Michael P. Shaunnessy / James Kohn (702) 685-1000
