User Help
Search Forum
keywords

author

GO
SOFTWARE
Company News: Page (1) of 1 - 12/12/12 Email this story to a friend. email article Print this page (Article printing at MyDmn.com).print page

Nevada Gold Announces Second Quarter 2013 Financial Results By Globenewswire


Michael P. Shaunnessy Joins Company as President and CEO

Adjusted EBITDA Increases Fourfold



HOUSTON, Dec. 12, 2012 (GLOBE NEWSWIRE) -- Nevada Gold & Casinos, Inc. (NYSE MKT:UWN) today announced financial results for the second quarter of fiscal 2013, ended October 31, 2012.



Second Quarter 2013 Financial Highlights



  • Net revenues increased 28% to $16.4 million.


  • Adjusted EBITDA(1) from continuing operations increased to $1.3 million from $0.3 million.


  • Net loss per share from continuing operations, including non-recurring items, was $0.04 compared to $0.15 in the prior-year period.



Michael Shaunnessy, who joined Nevada Gold as President and CEO on December 1, 2012, commented, "With the company's newly streamlined organization, enhanced operations and a focus on practical growth options, I believe we are at an important turning point for Nevada Gold. I am excited about working with the board of directors and employees to optimize the collection of assets the company has amassed and to take advantage of new growth opportunities available in today's market."





Ernest East, who served as interim president from September 6, 2012 to November 30, 2012, stated, "We are pleased with the company's substantial increase in adjusted EBITDA during the quarter. Our Washington and South Dakota operations both performed according to plan and we implemented meaningful cost reductions, in excess of $1 million annually. During the quarter we also re-assessed our ongoing development efforts and, given the challenges of securing financing, decided not to pursue the Las Vegas Speedway Project. This quarter's results include the write-off of the $215,000 invested to date in that project as well as approximately $42,000 in other development costs."



William Sherlock, Chairman of the Board of Directors, observed, "We are delighted that the search process the board began in September moved forward so quickly, enabling us to retain a first-class executive for Nevada Gold. Mike's three decades in the gaming and hospitality industry, combined with his outstanding operational and financial skills, position him ideally to lead Nevada Gold to its next stage of development."



Mr. Shaunnessy concluded, "Going forward, the Nevada Gold team will explore opportunities that build on the company's current asset base, offer more immediate rewards, and take advantage of our recent licensing approval in Nevada. As I assume the leadership of Nevada Gold, I look forward to providing further information on our operational and financial goals."



Financial Results



The financial information presented below represents results from continuing operations. Financial information for the second quarter of fiscal 2013 also reflects the company's January 27, 2012 acquisition of a slot route operation in Deadwood, South Dakota. As previously announced, Nevada Gold completed the sale of the Colorado Grande Casino in Cripple Creek, Colorado in May 2012. As a result, the Colorado Grande's results have been reclassified as discontinued operations.



Excluding the non-recurring charges, operating results for the period ended October 31, 2012 reflect an operating income of $0.7 million compared to an operating loss of $0.2 million for the prior-year period. For the second quarter of fiscal 2013, net revenues increased 28% to $16.4 million compared to $12.8 million in the prior-year period. Operating expenses, excluding non-recurring charges, increased 20% to $15.7 million compared to $13.1 million in the prior-year period. The revenue and expense increases are primarily due to the addition of the South Dakota slot route operation. The non-recurring expenses recorded during the quarter ended October 31, 2012 include a $0.3 million non-cash write-off of project development costs, primarily related to the Las Vegas Speedway Project, and a $0.7 million charge for severance related to the former CEO and the elimination of several corporate positions. The annual cost reductions that have been implemented will be reflected in our operating results beginning in the third quarter of fiscal 2013. During the quarter ended October 31, 2011, Nevada Gold recorded a non-cash impairment adjustment of $2.3 million for vacant land the company owns in Colorado. Operating loss for the current quarter totaled $0.3 million compared to an operating loss of $2.5 million in the prior-year quarter. Net loss was $0.8 million compared to a net loss of $2.2 million, which includes the non-recurring charges, and a net loss from discontinued operations of $.1 million in each quarter. On a per share basis, net loss for continuing operations was $0.04 in the 2013 second quarter compared to $0.15 in the prior-year period. On a per share basis, net loss for discontinued operations was $0.01 in both the 2013 and the 2012 quarters.



Diluted weighted average common shares outstanding in the second quarter of fiscal 2013 were 16.0 million compared to 13.2 million in the prior-year period.



Conference Call and Webcast



The Company will host a conference call to discuss second quarter 2013 financial results today at 11:00 AM ET. The conference call can be accessed live over the phone by dialing 855-235-2089 or, for international callers, 778-327-3988. A replay will be available one hour after the call and can be accessed by dialing 877-870-5176, or for international callers, 858-384-5517; the conference ID is #91212. The replay will be available through December 19, 2012. The call will be webcast live from the Company's website at www.NevadaGold.com under the Investor Relations section.



(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 foreign currency transaction gains and losses, non-cash stock option grants, exclusion of net income or loss from operations held for sale, severance costs, 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 reconciliation for the three months ended October 31, 2012 and October 31, 2011:































































































Adjusted EBITDA reconciliation to net loss:

 

 

 

For the three months ended

 

 October 31, 2012

October 31, 2011

Net loss

 $ (819,008)

 $ (2,120,606)

Add:

 

 

Income tax benefit

(108,375)

(1,040,324)

Net interest expense

478,146

369,971

Loss on extinguishment of debt

--

154,270

Impairments/Write offs

257,733

2,273,966

Loss on sale of assets

1,718

22,340

Depreciation and amortization

538,534

464,541

Deferred rent

19,034

--

Stock option and ESPP grants

65,682

20,780

Severance expense

725,877

--

Loss on operations held for sale

138,472

97,924

Acquisition expenses

--

13,721

Adjusted EBITDA

 $ 1,297,813

 $ 256,583

 

 

 


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 MKT:UWN) of Houston, Texas is a developer, owner and operator of 10 gaming operations in Washington ("Washington Gold") and a 950-machine slot route operation in Deadwood, South Dakota ("South Dakota Gold"). The Company also has a gaming license in Nevada and an interest in Buena Vista Development Company, LLC, which is working on a Native American casino project to be developed in Ione, California. For more information, visit www.nevadagold.com.



The Nevada Gold logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=13803

































Contacts:  

Nevada Gold & Casinos, Inc.

Michael P. Shaunnessy 

(713) 621-2245

 

LHA

Harriet Fried / Jody Burfening

(212) 838-3777

hfried@lhai.com

































































































































































































































































Nevada Gold & Casinos, Inc.

Consolidated Balance Sheets

 

 

 

 

 

 

 

 October 31, 2012

 April 30, 2012

 

(unaudited)

 

 

 

 

ASSETS

Current assets:

 

 

Cash and cash equivalents

 $ 5,868,748

 $ 5,200,161

Restricted cash

 2,049,219

 1,787,068

Accounts receivable

 435,859

 653,433

Prepaid expenses

 1,211,394

 909,834

Notes receivable, current portion

 151,583

 20,600

Other current assets

 363,031

 354,817

Assets of discontinued operations

 -- 

 33,601

Total current assets

 10,079,834

 8,959,514

 

 

 

Investments in development projects

 15,750

 255,355

Real estate held for sale

 1,100,000

 1,100,000

Notes receivable, net of current portion

 2,128,417

 -- 

Goodwill

 16,103,584

 16,090,799

Identifiable intangible assets, net of accumulated amortization of $3,810,654 and $3,201,868 at October 31, 2012 and April 30, 2012, respectively

 7,173,667

 7,782,453

Property and equipment, net of accumulated depreciation

 

 

of $2,218,476 and $1,785,064 at October 31, 2012 and

 

 

April 30, 2012, respectively

 5,304,191

 5,399,103

Deferred tax asset, net

 5,270,922

 5,251,236

Other assets

 1,065,924

 1,219,356

Assets of discontinued operations

 -- 

 3,115,097

Total assets

 $ 48,242,289

 $ 49,172,913

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

 

 

Accounts payable and accrued liabilities

$ 2,419,630

$ 2,176,545

Accrued interest payable

 45,191

 61,141

Other accrued liabilities

 2,930,708

 2,632,067

Long-term debt, current portion

 1,885,324

 1,400,324

Liabilities of discontinued operations

 -- 

 23,699

Total current liabilities

7,280,853

6,293,776

Other long term liabilities

 375,916

 337,849

Long-term debt, net of current portion

13,690,000

15,155,000

Total liabilities

21,346,769

21,786,625

 

 

 

 

 

 

Stockholders' equity:

 

 

Common stock, $0.12 par value per share; 50,000,000 shares authorized; 16,802,531 and 16,707,205 shares issued and 16,019,694 and 15,924,368 shares outstanding at October 31, 2012, and April 30, 2012, respectively

2,016,304

2,004,865

Additional paid-in capital

24,303,834

24,155,158

Retained earnings

7,512,956

8,163,839

Treasury stock, 782,837 shares at October 31, 2012 and April 30, 2012, respectively, at cost

 (6,932,035)

 (6,932,035)

Accumulated other comprehensive loss

 (5,539)

 (5,539)

Total stockholders' equity

26,895,520

27,386,288

Total liabilities and stockholders' equity

$ 48,242,289

$ 49,172,913



























































































































































































































































































































































 

 

Nevada Gold & Casinos, Inc.

Consolidated Statements of Operations

(unaudited)

 

 

 

 

 

 

Three Months Ended

Six Months Ended

 

 October 31,

 October 31,

 October 31,

 October 31,

 

2012

 2011

 2012

 2011

Revenues:

 

 

 

 

Casino

$ 14,290,425

$ 10,896,447

 $ 29,051,685

 $ 21,817,723

Food and beverage

2,508,167

2,774,636

 5,065,767

 5,367,416

Other

658,882

554,114

 1,327,581

 1,069,601

Gross revenues

17,457,474

14,225,197

 35,445,033

 28,254,740

Less promotional allowances

 (1,073,786)

 (1,392,611)

 (2,250,642)

 (2,671,683)

Net revenues

16,383,688

12,832,586

 33,194,391

 25,583,057

 

 

 

 

 

 Expenses: 

 

 

 

 

Casino

8,183,837

5,682,762

 16,232,412

 10,995,136

Food and beverage

1,178,027

1,031,703

 2,363,249

 2,009,082

Marketing and administrative

4,012,392

4,018,000

 8,397,620

 7,936,345

Facility

570,178

522,142

 1,113,799

 1,011,721

Corporate expense

1,452,736

891,423

 2,326,510

 1,974,187

Legal expense

40,575

 20,658

 79,437

 27,591

Depreciation and amortization

 538,534

 464,541

 1,077,515

 903,204

Deferred rent

 19,034

 -- 

 38,067

 -- 

Acquisition costs

 -- 

 13,721

 -- 

 65,666

Impairment of assets

 -- 

 2,273,966

 -- 

 2,273,966

Write-off of project development cost

 257,733

 -- 

 257,733

 -- 

Excise taxes

 297,918

 295,743

 610,238

 587,994

Other

 141,771

 134,352

 286,334

 237,172

Total operating expenses

 16,692,735

 15,349,011

 32,782,914

 28,022,064

Operating income (loss)

 (309,047)

 (2,516,425)

 411,477

 (2,439,007)

Non-operating income (expenses):

 

 

 

 

Loss on sale of assets

 (1,718)

 (22,340)

 (2,963)

 (22,654)

Interest income

 -- 

 42,853

 900

 85,702

Interest expense

 (393,064)

 (379,488)

 (778,565)

 (759,137)

Amortization of loan issue costs

 (85,082)

 (33,336)

 (162,625)

 (44,586)

Loss on extinguishment of debt

 -- 

 (154,270)

 -- 

 (154,270)

Loss before income tax benefit

 (788,911)

 (3,063,006)

 (531,776)

 (3,333,952)

Income tax benefit

 108,375

 1,040,324

 19,686

 1,324,251

Net loss from continuing operations

 $ (680,536)

 $ (2,022,682)

 $ (512,090)

 $ (2,009,701)

Net loss from discontinued operations, net of taxes

 (138,472)

 (97,924)

 (138,793)

 (302,765)

Net loss

 $ (819,008)

 $ (2,120,606)

 $ (650,883)

 $ (2,312,466)

Per share information:

 

 

 

 

Net loss per common share - basic and diluted for continuing operations

 $ (0.04)

 $ (0.15)

 $ (0.03)

 $ (0.15)

 

 

 

 

 

Net loss per common share - basic and diluted for discontinued operations

 $ (0.01)

 $ (0.01)

 $ (0.01)

 $ (0.02)

 

 

 

 

 

Basic weighted average number of shares outstanding

15,964,051

13,179,208

15,949,269

13,004,778

 

 

 

 

 

Diluted weighted average number of shares outstanding

15,964,051

13,179,208

15,949,269

13,004,778




Nevada Gold Logo


Page: 1


Keywords: GAMING, EARNINGS, CONFERENCE CALL, WEBCASTPro AV,Presentors,Business Issues,Internet Media,Presentation,Corporate/Company, webcast,USA, Inc.,Financial,Gold,Other,
Related Sites: Digital Producer ,   Digital Webcast ,   Audio Video Producer ,   Presentation Master ,   Oceania ,   DMN Newswire ,   BN - Webcast ,   VideoBasedTutorials
Related Newsletter: DMN Newsletter ,   CMN Newsletter ,   Streamline Newsletter ,   KNews Newsletter ,   DMNForums ,   Tutorial Finder ,   Review Seeker ,   IBN - IT Weekly Newsletter

@ Copyright, 2013 Digital Media Online, AllRights Reserved