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Nevada Gold & Casinos posts third-quarter profit

12 March 2013

LAS VEGAS -- Nevada Gold & Casinos, Inc. on Tuesday posted a profit for the third-quarter, as the company continues to pay down debt, adjust operations at its casinos and slot routes, as well as complete its restructuring program.

The gaming company reported net income of $235,356, or 1 cent a share, for the fiscal quarter ended Jan. 31, compared with a loss of $288,047, or 1 cent per share, for the same period last year.

Revenues were $16.2 million, a 20.3 percent increase from the $13.5 million for the prior year period. The company's casinos in Washington contributed $14.4 million, while its South Dakota slot operates contributed $1.8 million in the third quarter.

"We are pleased with the quarter's strong cash flow and the results of our Washington and South Dakota portfolios, both of which performed according to plan," said Michael Shaunnessy, CEO and president of Nevada Gold.

Shaunnessy said Nevada Gold was "in a good position as we move into the fourth quarter" to meet its goal of generating $5 million in adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization.

Nevada Gold's decision last year to move its headquarters from Houston to Las Vegas is expected to be completed by the end of the month. Shaunnessy said the move will allow the company to "expand its footprint and take advantage of future opportunities."

Shaunnessy said the company also reduced its debt outstanding by $1.8 million in 2013. The company last month launched Gold Star Slots, a free-to-play casino app on Facebook.

Shaunnessy told analysts in a conference call that Nevada Gold has seen "a decent response to date," as it uses its social gaming app to "build its brand and introduce our brick-and-mortar properties."

Shaunnessy, a former executive vice president of operations at MGM Resorts International, took over as CEO of Nevada Gold on Dec. 1, replacing interim President Earnest East.

"With the completion of the cost reduction program and organizational changes announced in October 2012, Nevada Gold is also well positioned to explore additional opportunities in the gaming industry," Shaunnessy said.

The company plans to open a regional office in Seattle. Nevada Gold operates 10 casinos in Washington state, a 950-machine slot route in Deadwood, S.D., and owns a 1 percent stake in The Nugget in Reno, which it purchased in February 2011 for $26,000.