LAS VEGAS, July 28, 2016 (GLOBE NEWSWIRE) -- Nevada Gold & Casinos, Inc. (NYSE MKT:UWN) today announced financial results for the fourth quarter and year ended April 30, 2016.  The Company will host a conference call today at 4:30 PM ET (1:30 PM PT) to discuss these results and provide a corporate update.

For the fiscal year 2016, the Company reported net revenues of $70.3 million compared to $64.3 million in fiscal year 2015. The increase was primarily due to $6.1 million in revenue from Club Fortune which was acquired on December 1, 2015.  Operating expenses increased $5.9 million primarily due to the addition of Club Fortune and impairment charges of $1.2 million.  Net income was $1.3 million compared to $1.8 million in the prior year.  Consolidated Adjusted EBITDA increased $2.2 million, or 38%, to $7.8 million, and Adjusted Net Income was $2.7, an increase of $0.9 million, or 48%.

Adjusted Net Income reconciliation to Net Income (000):
 
   2016   2015 
Net Income$ 1,301  $1,807 
Adjustments (net of tax): 
Impairments  1,066     - 
 Acquisition expanses  423     - 
Gain on asset sale  (110)    - 
       
Adjusted Net Income$ 2,680  $1,807 
       
Adjusted Earnings per share$ 0.16  $0.11 
   

Net revenues from Washington state gaming operations increased $0.8 million, or 1% to $56.7 million, while Adjusted EBITDA increased $1.7 million to a record $9.1 million.  South Dakota route operation revenues decreased $0.9 million to $7.5 million while Adjusted EBITDA decreased $0.2 million to $0.4 million.  Club Fortune net revenues were $6.1 million and Adjusted EBITDA was $.8 million.  Corporate expenses, excluding acquisition costs, increased $0.2 million to $2.5 million.

During fiscal year 2016, the Company sold its Golden Nugget location in Washington recording a gain of $166,000 and also entered into an agreement to sell excess land in Colorado, recording an impairment charge of $350,000.  On December 1, 2015, the Company acquired Club Fortune Casino in Henderson, Nevada.  In the fourth quarter the Company evaluated the carrying value of the South Dakota route operation and recorded a goodwill impairment charge of $0.8 million.

“Fiscal 2016 reflected strong operating performance from our Washington portfolio while our South Dakota operations continue to be pressured by reduced units,” said President and CEO Michael Shaunnessy.  “With the addition of Club Fortune we have strengthened and diversified our cash flow stream. Our conservative financing structure, low interest rates and substantial tax free cash flow, allow us to reduce debt and return capital to shareholders.”

During fiscal year 2016 the Company borrowed $15.5 million to fund the acquisition of Club Fortune, and repaid $5.7 million.  As of April 30, 2016, the outstanding bank debt was $17.2 million and unrestricted cash on hand was $11.6 million.

In July 2016, the Board of Directors authorized a share repurchase program of $2.0 million, which at current trading levels, represents approximately 6% of the outstanding shares.

Fourth Quarter Results.  For the fourth quarter of fiscal 2016, the Company reported net revenues of $19.9 million compared to $16.3 million in the fourth quarter of fiscal 2015.  Consolidated Adjusted EBITDA was $2.5 million compared to $1.6 million in the prior year period.    

During the fourth quarter, net revenues from Washington increased to $14.6 million from the $14.5 million in the prior year period, while EBITDA increased to $2.6 million compared to $2.1 million in the prior year period. South Dakota route operation revenues decreased $112,000 from the prior year period, primarily due to a reduction in units and EBITDA declined from $42,000 to $27,000 for the quarter. Club Fortune net revenues were $3.7 million while EBITDA was $0.5 million.  Corporate expenses were unchanged at $0.6 million in both periods. 

In April of 2106, the Company entered into an agreement to sell its excess Colorado land for $750,000 and recorded an impairment charge of $350,000 related to this transaction. The Company evaluated the carrying value of the South Dakota route operation and recorded a goodwill impairment charge of $0.8 million.  Excluding these impairment charges, adjusted net income for the quarter was $0.8 million, or $.05 per share compared to $0.6 million or $0.04 per share in the prior year period.

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, 2016 and April 30, 2015 are shown below.

Adjusted EBITDA reconciliation to net income (loss):
 
  For the three months ended
    April 30, 2016    April 30, 2015
       
Net income (loss)  $ (241,290)  $ 588,872 
Adjustments:      
Net interest expense   248,893    164,158 
Income tax expense   409,271    292,688 
Depreciation and amortization   869,414    524,438 
(Gain) Loss on asset sales     5,291    (9,006)
Write downs and other charges   1,185,000    - 
Deferred rent amortization   14,430    19,677 
Club Fortune acquisition expenses   12,181    - 
Stock option amortization      28,675       29,943 
Employee stock purchase discount      25       1,977   
Increase in swap fair value      (26,282)      (27,129)
Adjusted  EBITDA $ 2,505,608  $ 1,585,618 
       


 
Adjusted EBITDA reconciliation to net income:
   
  For the fiscal year ended
  April 30, 2016 April 30, 2015
       
Net income  $ 1,301,046   $1,807,077
Adjustments:      
Net interest expense   628,315   587,872
Income tax expense   1,221,497   885,819
Depreciation and amortization   2,608,616   2,168,003
(Gain) / Loss on asset sales    (158,411)  32,694
Write downs and other charges   1,185,000   -
Deferred rent amortization   35,900   23,744
Stock option amortization   114,698   113,526
Employee stock purchase discount   4,671   7,331
Decrease in swap fair value   217,781   10,600
Write off of marketable securities   -   7,539
Club Fortune acquisition expenses   641,472   -
Adjusted  EBITDA $ 7,800,585  $5,644, 205
         

Conference Call and Webcast
The Company will host a conference call at 4:30 PM ET (1:30 PM PT) on July 28, 2016 to discuss the financial results and provide a corporate update. The call can be accessed live by dialing (888) 715-1391. International callers can access the call by dialing (913) 312-1227. 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 3492194. The replay will be available through August 4, 2016. The archived webcast will also be available on the Company's website at http://ir.nevadagold.com/events.cfm.

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 9 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.


    
Nevada Gold & Casinos, Inc.   
Consolidated Balance Sheets   
    
 April 30, April 30,
  2016   2015 
    
ASSETS    
Current assets:   
Cash and cash equivalents $  11,583,107   $  8,541,670 
Restricted cash   1,433,728     1,724,439 
Accounts receivable, net of allowances   665,549     297,316 
Prepaid expenses   1,206,825     845,505 
Notes receivable, current portion   208,294     384,464 
Inventory and other current assets   416,022     377,625 
Total current assets   15,513,525     12,171,019 
    
Real estate held for sale   750,000     1,100,000 
Notes receivable, net of current portion   900,775     1,314,467 
Goodwill   18,025,059     16,103,583 
Identifiable intangible assets, net of accumulated   
  amortization of $7,997,790 and $6,811,799 at April 30,   
  2016 and April 30, 2015, respectively   5,003,981     4,561,377 
Property and equipment, net of accumulated depreciation   
  of $5,641,733 and $4,451,553 at April 30, 2016 and   
  April 30, 2015, respectively   15,147,061     3,990,791 
Deferred tax asset   2,348,299     3,569,796 
Other assets   70,000     70,657 
Total assets $  57,758,700   $  42,881,690  
    
    
    
LIABILITIES AND STOCKHOLDERS’ EQUITY    
Current liabilities:   
Accounts payable and accrued liabilities$1,702,366  $1,222,139 
Accrued payroll and related   2,094,250     1,581,557 
Accrued player's club points and progressive jackpots   1,872,566     1,993,537 
Total current liabilities 5,669,182   4,797,233 
Long-term debt 16,839,148   7,088,677 
Other long-term  liabilities   881,426     570,717 
Total liabilities 23,389,756   12,456,627 
    
    
Stockholders' equity:   
Common stock, $0.12 par value per share; 50,000,000   
shares authorized; 18,571,693 and 17,134,928 shares issued and 17,788,856 and 16,352,091 shares outstanding at April 30, 2016, and April 30, 2015, respectively  2,228,612   2,056,200 
Additional paid-in capital 27,315,517   24,845,094 
Retained earnings 11,756,850   10,455,804 
Treasury stock, 782,837 shares at April 30, 2016 and April 30, 2015, at cost   (6,932,035)    (6,932,035)
Total stockholders' equity 34,368,944   30,425,063 
Total liabilities and stockholders' equity$57,758,700   $42,881,690 

 

 
 
Nevada Gold & Casinos, Inc.
Consolidated Statements of Operations
      
   Three Months Ended Twelve Months Ended
  April 30, April 30, April 30, April 30,
  2016 2015 2016 2015
Revenues:          
Casino $ 17,654,842  $ 14,309,932  $   62,232,898  $   56,710,812 
Food and beverage   3,581,609    2,623,876      11,797,939      10,225,484 
Other   605,067    447,798      2,042,519      1,782,013 
Gross revenues   21,841,518    17,381,606      76,073,356      68,718,309 
Less promotional allowances     (1,938,249)     (1,117,487)     (5,732,351)     (4,368,756)
Net revenues     19,903,269      16,264,119      70,341,005      64,349,553 
             
Expenses:             
Casino   9,727,767    7,767,607      33,924,688      31,504,355 
Food and beverage   1,235,581    1,353,049      5,451,627      5,386,699 
Other   62,650    37,119      265,600      244,253 
Marketing and administrative   5,266,141    4,408,183      18,412,053      17,209,760 
Facility   514,894    533,493      2,025,007      2,059,730 
Corporate   645,939    630,648      3,258,187      2,445,152 
Depreciation and amortization     869,414      524,438      2,608,616      2,168,003 
(Gain) loss on sale of assets     5,291      -       (158,411)     32,694 
Write downs and other charges     1,185,000      (9,006)     1,185,000      -  
Total operating expenses     19,512,677      15,245,531      66,972,367      61,050,646 
Operating income     390,592      1,018,588      3,368,638      3,298,907 
Non-operating income (expenses):            
Interest income     21,165      27,056      94,589      117,639 
Interest expense and amortization of loan costs     (270,058)     (191,214)     (722,903)     (705,511)
Change in swap fair value     26,282      27,129      (217,781)     (10,600)
Write-off of marketable securities     -       -       -       (7,539)
Income before income tax     167,981      881,559      2,522,543      2,692,896 
Income tax expense      (409,271)     (292,688)     (1,221,497)     (885,819)
Net income (loss) $   (241,290) $   588,871  $   1,301,046  $   1,807,077 
Per share information:            
Net income (loss) per common share - basic and diluted $   (0.01) $   0.04  $   0.08  $   0.11 
             
Basic weighted average number of shares outstanding   17,771,800    16,276,403    17,002,728    16,228,396 
             
Diluted weighted average number of share outstanding  17,771,800    16,478,445    17,298,373    16,345,795 


Contacts:
Nevada Gold & Casinos, Inc.
Michael P. Shaunnessy / James Meier
(702) 685-1000

Casey Stegman
Stonegate Capital Partners
(214) 987-4121