LAS VEGAS , Dec. 23, 2013 (GLOBE NEWSWIRE) -- Nevada Gold & Casinos, Inc. (NYSE MKT:UWN) today announced financial results for the second quarter ended October 31, 2013 . For the second quarter of fiscal 2014, the company reported net revenues of $16.3 million compared to $16.4 million in the second quarter of fiscal 2013. Net revenues from Washington increased 3% to $13.4 million , while South Dakota net revenues declined 12.8% to $2.9 million . Operating expenses were $15.6 million compared to $16.7 million in the prior-year period. Operating income from continuing operations was $0.7 million compared to an operating loss of $0.3 million . Net income from continuing operations was $0.2 million , or $0.01 per diluted share, compared to a net loss of $0.7 million in the prior-year period. During the second quarter, our Washington casino operations produced EBITDA of $1.6 million compared to $1.5 million in the prior year period, a significant recovery from the difficult first quarter. Our South Dakota route operation contributed $0.4 million in EBITDA for the quarter, down from the $0.5 million in the prior year, reflecting the market softness and a reduction of units during the later part of the quarter. Corporate expenses continued to trend lower, primarily due to the continuing benefit of the cost savings initiated in September 2012 . On a consolidated basis, adjusted EBITDA was $1.4 million compared to $1.3 million in the prior year period. "We delivered solid results for the second quarter in a difficult revenue environment, and are now moving into the two stronger quarters for our Washington operations," said President and CEO Michael Shaunnessy . "With our new financing in place, our future earnings will benefit significantly from the reduced interest expense resulting from the lower rate and reduced debt level. Continued strong operating performance, coupled with the reduced expense levels puts us on track to produce improved results for the fiscal year." "In this challenging revenue environment we are focusing on the cost side of our business to maintain margins while continuing to explore new revenue opportunities. We are actively searching for new properties and management contracts that fit Nevada Gold & Casinos' investment parameters and enhance shareholder value." For the six month period, net revenues were $32.0 million compared to $33.2 million in fiscal year 2013. Operating expenses were $31.3 million compared to $32.8 million in the prior year, which included $1.0 million of one-time charges. Operating income from continuing operations was $0.8 million compared to $0.4 million in fiscal 2013. Net income from continuing operations was $0.0 million compared to a loss of $0.5 million in the prior year. Conference Call and Webcast The company will host a conference call at 4:30PM EST today to discuss the financial results and to provide a corporate update. The company will host this call for its shareholders and all members of the financial community including analysts, brokers and interested investors. The call can be accessed live by dialing (888) 329-8893. International callers can access the call by dialing (719) 325-2281. A simultaneous webcast of the call will be available by visiting http://www.nevadagold.com/ . A telephone replay of the conference call will be available after 7:30 pm ET and can be accessed by dialing (877) 870-5176. International callers can access the replay by dialing (858) 384-5517; the pin number is 3725255. The replay will be available through December 30, 2013 at 11:59 pm EST . The archived webcast will also be available on the company's website at http://ir.nevadagold.com/events.cfm . (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 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 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 six months ended October 31, 2013 and October 31, 2012 are shown below: Adjusted EBITDA reconciliation to net loss: For the three months ended October 31, 2013 October 31, 2012 Net income (loss) $ 220,757 $ (819,008) Add: Income tax expense (benefit) 114,524 (108,375) Net interest expense (income) 399,089 478,146 Impairments/Write offs 56,959 257,733 Loss on sale of assets 4,546 1,718 Depreciation and amortization 565,288 538,534 Deferred rent 9,878 19,034 Stock option and ESPP grants 15,568 65,682 Severance expense -- 725,877 Loss on operations held for sale -- 138,472 Adjusted EBITDA $ 1,386,609 $ 1,297,813 Adjusted EBITDA reconciliation to net loss: For the six months ended October 31, 2013 October 31, 2012 Net income (loss) $ 4,930 $ (650,883) Add: Income tax benefit (43,837) (19,686) Net interest expense (income) 796,158 940,290 Impairments/Write offs 56,959 257,733 Loss on sale of assets 8,517 2,963 Depreciation and amortization 1,127,225 1,077,515 Deferred rent 14,438 38,067 Stock option and ESPP grants 31,018 69,759 Severance expense -- 725,877 Loss on operations held for sale -- 138,793 Adjusted EBITDA $ 1,995,408 $ 2,580,428 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, and a gaming license in Nevada . For more information, visit www.nevadagold.com . Nevada Gold & Casinos, Inc. Consolidated Balance Sheets October 31, April 30 , 2013 2013 (unaudited) ASSETS Current assets: Cash and cash equivalents $ 6,844,436 $ 6,723,919 Restricted cash 1,252,046 1,306,487 Accounts receivable, net 411,565 445,481 Prepaid expenses 1,208,146 854,092 Notes receivable, current portion 283,613 216,596 Other current assets 327,098 373,923 Total current assets 10,326,904 9,920,498 Investments in development projects -- 56,959 Real estate held for sale 1,100,000 1,100,000 Notes receivable, net of current portion 1,914,321 2,082,853 Goodwill 16,103,583 16,103,583 Identifiable intangible assets, net of accumulated amortization of $5,016,223 and $4,413,439 at October 31, 2013 and April 30, 2013 , respectively 6,356,952 6,959,737 Property and equipment, net of accumulated depreciation of $3,123,297 and $2,599,940 at October 31, 2013 and April 30, 2013 , respectively 4,728,995 5,028,122 Deferred tax asset, net 4,782,211 4,738,373 Other assets 390,319 533,861 Total assets $ 45,703,285 $ 46,523,986 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued liabilities $ 1,464,368 $ 2,024,465 Accrued interest payable 30,555 34,393 Other accrued liabilities 2,072,596 2,127,140 Long-term debt, current portion 2,370,000 1,280,000 Total current liabilities 5,937,519 5,465,998 Other long-term liabilities 428,421 421,253 Long-term debt, net of current portion 11,550,000 12,930,000 Total liabilities 17,915,940 18,817,251 Stockholders' equity: Common stock, $0.12 par value per share; 50,000,000 shares authorized; 16,916,947 and 16,864,122 shares issued and 16,134,110 and 16,081,285 shares outstanding at October 31, 2013 , and April 30, 2013 , respectively 2,030,044 2,023,705 Additional paid-in capital 24,489,199 24,419,858 Retained earnings 8,205,676 8,200,746 Treasury stock, 782,837 shares at October 31, 2013 and April 30, 2013 , respectively, at cost (6,932,035) (6,932,035) Accumulated other comprehensive loss (5,539) (5,539) Total stockholders' equity 27,787,345 27,706,735 Total liabilities and stockholders' equity $ 45,703,285 $ 46,523,986 Nevada Gold & Casinos, Inc. Consolidated Statements of Operations (unaudited) Three Months Ended Six Months Ended October 31 , October 31 , October 31 , October 31 , 2013 2012 2013 2012 Revenues: Casino $ 14,479,974 $ 14,492,470 $ 28,428,453 $ 29,451,147 Food and beverage 2,511,766 2,508,167 4,870,074 5,065,767 Other 431,354 456,837 863,400 928,119 Gross revenues 17,423,094 17,457,474 34,161,927 35,445,033 Less promotional allowances (1,073,977) (1,073,786) (2,122,020) (2,250,642) Net revenues 16,349,117 16,383,688 32,039,907 33,194,391 Expenses: Casino 8,482,388 8,542,487 16,907,336 16,973,323 Food and beverage 1,281,597 1,178,027 2,498,307 2,363,249 Other 70,576 81,039 125,056 155,661 Marketing and administrative 4,076,583 4,031,426 8,386,524 8,435,687 Facility 491,720 570,178 970,481 1,113,799 Corporate expense 585,090 1,493,311 1,202,251 2,405,947 Depreciation and amortization 565,288 538,534 1,127,225 1,077,515 Write-off of project development cost 56,959 257,733 56,959 257,733 Total operating expenses 15,610,201 16,692,735 31,274,139 32,782,914 Operating income (loss) 738,916 (309,047) 765,768 411,477 Non-operating income (expenses): Loss on sale of assets (4,546) (1,718) (8,517) (2,963) Interest income 34,090 -- 68,485 900 Interest expense (345,142) (393,064) (699,063) (778,565) Amortization of loan issue costs (88,037) (85,082) (165,580) (162,625) Income (loss) before income tax benefit (expense) 335,281 (788,911) (38,907) (531,776) Income tax benefit (expense) (114,524) 108,375 43,837 19,686 Net income (loss) from continuing operations $ 220,757 $ (680,536) $ 4,930 $ (512,090) Net loss from discontinued operations, net of taxes -- (138,472) -- (138,793) Net income (loss) $ 220,757 $ (819,008) $ 4,930 $ (650,883) Per share information: Net income (loss) per common share - basic and diluted for continuing operations $ 0.01 $ (0.04) $ 0.00 $ (0.03) Net income (loss) per common share - basic and diluted for discontinued operations $ -- $ (0.01) $ -- $ (0.01) Basic weighted average number of shares outstanding 16,105,775 15,964,051 16,104,725 15,949,269 Diluted weighted average number of shares outstanding 16,208,227 15,964,051 16,171,182 15,949,269 CONTACT: Nevada Gold & Casinos, Inc. Michael P. Shaunnessy / James Kohn (702) 685-1000 Source: Nevada Gold & Casinos, Inc.
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