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Nevada Gold announces Q4 results30 July 2012HOUSTON -- (PRESS RELEASE) -- Nevada Gold & Casinos, Inc. (NYSE MKT: UWN) today announced financial results for the fourth quarter and fiscal year ended April 30, 2012. Fourth Quarter 2012 Financial Highlights Net revenues increased 27.0% to $16.6 million Excluding the $4.4 million after-tax impact of non-cash charges, net income from the company's continuing operations would have been $0.1 million Adjusted EBITDA(1) from continuing operations increased 12.7% to $1.5 million Full Year 2012 Financial Highlights Net revenues increased 30.8% to $55.6 million Excluding the $5.9 million after-tax impact of non-cash charges, net loss from continuing operations would have been $0.6 million Adjusted EBITDA(1) from continuing operations increased 36.5% to $3.0 million "Over the past quarter, using our company's proven management techniques, strategies and scale, we completed the ramp up of the AG Trucano slot route business, which for corporate purposes we now refer to as South Dakota Gold," said CEO Robert Sturges. "To re-energize the business and position it for growth, we hired a new general manager and provided in-depth guest service training. In the seasonally slow quarter just ended, South Dakota Gold contributed $0.2 million to adjusted EBITDA, meeting our expectations. While it is still early in fiscal 2013, we are pleased with the business' performance to date and, with the important summer tourism season underway, are on track to meet our goal of adding in excess of $1 million in adjusted EBITDA. "In our Washington Gold casino operations, business volume and head counts continued to show solid growth although our results were affected by a lower-than-expected hold percentage through much of the year. Our consolidated fourth-quarter financial results were also impacted by $6.6 million of non-cash pre-tax charges resulting from various legacy issues, primarily related to potential gaming projects undertaken in the company's early years. After adjusting for these items, adjusted EBITDA for the fourth quarter improved 12.7% to $1.5 million. It is especially noteworthy that our annual adjusted EBITDA increased 36.5% for the fiscal year. "This measurable improvement, in addition to the steps we have taken to strengthen our business, restructure our balance sheet and improve our prospects for growth, have brought 2012 to a successful close. With the increased diversification South Dakota Gold is providing, the improved pipeline of opportunities from our new gaming license in the State of Nevada, and the substantial debt reductions resulting from the recent sale of the Colorado Grande Casino and other significant debt reductions, we are poised to make further progress in fiscal 2013. We continue to work toward a goal of $5 million in adjusted EBITDA." Financial Results 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. All financial information presented below represents results from continuing operations. For the fourth quarter of fiscal 2012, net revenues increased to $16.6 million compared to $13.0 million in the fourth quarter of fiscal 2011. Operating expenses, including $6.3 million of valuation allowances, increased to $22.4 million from $12.3 million in the prior-year quarter. Operating loss from continuing operations, including the valuation allowances and a $0.3 million non-cash amortization of deferred rent escalation, totaled $5.9 million compared to operating income of $792,000 in the 2011 quarter. Net loss from continuing operations was $4.3 million, or $(0.27) per diluted share, compared to net income of $0.3 million income, or $0.02 in the 2011 period, due to the $4.4 million after-tax impact of the non-cash valuation allowances and amortization of deferred rent escalation. Basic and diluted weighted average common shares outstanding in the fourth quarter of fiscal 2012 were 15.9 million compared to 12.8 million and 13.3 million, respectively, in the prior-year period. For the full year fiscal 2012, net revenues increased to $55.6 million compared to $42.5 million in fiscal year 2011. Operating expenses, including $8.5 million of valuation allowances, totaled $63.6 million compared to $42.8 million in the prior year. Operating loss from continuing operations, including the valuation allowances and amortization of deferred rent escalation referenced above, totaled $8.0 million compared to $0.2 million in fiscal 2011. Net loss from continuing operations was $6.4 million, or $0.45 per diluted share, compared to a net loss of $0.4 million in fiscal 2011 due to the $4.4 million after-tax impact of the non-cash valuation allowances and amortization of deferred rent escalation in fiscal 2012. Basic and diluted weighted average common shares outstanding in fiscal 2012 were 14.4 million compared to 12.8 million in fiscal 2011. |