Nevada Gold & Casinos, Inc. Announces Fourth Quarter and Fiscal 2006 Results14 July 2006
Nevada Gold & Casinos, Inc. (AMEX:UWN) today announced financial results for the fourth quarter and fiscal year ended April 30, 2006.
For the fourth quarter of fiscal 2006, net revenues increased to $3.2 million compared to $2.0 million in the fourth quarter ended March 31, 2005. The net loss for the fourth quarter of fiscal 2006 was $1.7 million compared to net income of $0.5 million in the fourth quarter of fiscal 2005. The net loss per diluted common share was $0.13, compared to net income per diluted common share of $0.04 in the prior year period.
The fourth quarter of fiscal 2006 compared to prior quarterly periods was impacted by several significant items, including:
-- Certain non-operating expenses, including a $1.6 million
write-off of notes receivable related to two Native American
gaming projects, which reduced diluted earnings per share by
approximately $0.08.
-- The write-off of approximately $0.3 million in project
development costs, which reduced earnings per share by
approximately $0.01.
-- Higher corporate and general and administrative expenses of
approximately $2.3 million that includes $0.8 million in legal
costs, as well as higher costs related to expanded casino
operations and increased overhead costs related to our transition
to an operating business model.
H. Thomas Winn, Chairman and CEO of Nevada Gold & Casinos, Inc., commented, "After carefully evaluating every aspect of our business, we elected to take selective steps designed to enable us to focus on those opportunities most likely to enhance our operating performance over the long term. While our quarterly financial results were negatively impacted by these write-offs, we believe that we are now better positioned to execute our growth strategies and continue our transition to an operating business model. We believe our strong senior management team and solid pipeline of projects will contribute to our success in fiscal 2007 and beyond."
Financial Results
For the fourth quarter of fiscal 2006, net revenues increased to $3.2 million compared to $2.0 million in the fourth quarter ended March 31, 2005. The revenue increase was primarily due to $1.3 million in casino revenues and $0.3 million in food and beverage revenues recorded during the fourth quarter from the Colorado Grande Casino-Cripple Creek, which the Company acquired during April 2005.
Operating expenses increased to $5.9 million from $1.5 million primarily as a result of the inclusion of the casino operations, food and beverage, marketing and administrative, and facility expenses from the Colorado Grande Casino-Cripple Creek and higher corporate expenses. The Company's higher corporate expenses reflect legal fees related to ongoing litigation concerning Route 66 Casinos, LLC, as well as increased expenses related to its pursuit of additional gaming opportunities and higher general and administrative expenses as a result of the Company's transition to an operations focused business model.
The Company's equity in earnings from Isle of Capri-Black Hawk (IC-BH), the Company's joint venture with Isle of Capri Casinos, was $1.6 million for the fourth quarter ended April 30, 2006, compared to $0.4 million a year ago. Results for the fourth quarter of fiscal 2005 were impacted by a $4.0 million impairment charge recorded by the Isle of Capri-Black Hawk, which reduced the Company's equity in earnings from its minority interest by $1.7 million. IC-BH's fourth quarter adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA"), was $14.2 million in fiscal 2006 compared to $10.9 million in the prior year period. A reconciliation of EBITDA to operating income is provided in the attached financial statements.
The net loss for the fourth quarter of fiscal 2006 was $1.7 million compared to net income of $0.5 million in the fourth quarter of fiscal 2005. The net loss per diluted common share was $0.13, compared to net income per diluted common share of $0.04 in the prior year period. Diluted weighted average common shares outstanding in the third quarter were 13.1 million compared to 14.3 million in the prior year period.
During the fourth quarter of fiscal 2006, the Company repurchased 216,200 shares of common stock in the open market at an average price of $9.64 per share.
Financial Presentation
In presenting these results, the Company noted that on June 6, 2005, it changed its fiscal year to end to the last Sunday in April rather than March 31. References in this press release to the fourth quarter of fiscal year 2006 represents the three months ending April 30, 2006, and references to the fourth quarter of fiscal year 2005 represents the three months ending March 31, 2005. Management believes that the three months ended March 31, 2005 provides a meaningful comparison to the fourth quarter of fiscal year 2006.
Earnings Conference Call and Webcast
The Company will discuss fourth quarter financial results via the earnings conference call to be held at 5:00 ET today via the internet at www.nevadagold.com, Investor Relations, Events. If you are unable to participate during the live webcast, the conference call replay will be available by dialing 1-888-203-1112 or 1-719-457-0820 for international callers. The replay access code is 2288474. In addition, the call will be archived on the Company's website, http://www.nevadagold.com, through July 19, 2006.
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 Indian 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. (AMEX:UWN) of Houston, Texas is a developer, owner and operator of gaming facilities and lodging and entertainment facilities in Colorado, California, Oklahoma and New York. The Company owns a 43% interest in the Isle of Capri-Black Hawk LLC, which owns Isle of Capri-Black Hawk and Colorado Central Station, both of which are in Black Hawk, Colorado. Colorado Grande Casino in Cripple Creek, Colorado is wholly owned and operated by Nevada Gold. The Company owns a 40% interest in the Tioga Downs Racetrack and Vernon Downs Racetrack in New York State and has a management contract for both facilities. The Company also works with Native American tribes in a variety of capacities from the right to lease gaming equipment to development and management of their gaming properties. Native American projects consist of River Rock Casino in Sonoma County, California, a casino to be built in Tulsa, Oklahoma for the Muscogee (Creek) Nation, a casino to be built in Pauma Valley, California for the La Jolla Band of Luiseno Indians and a casino to be developed by Buena Vista Development Company, LLC in the city of Ione, California for Buena Vista Rancheria of Me-Wuk Indians. For more information, visit http://www.nevadagold.com.
The Nevada Gold & Casinos, Inc. logo is available at http://www.primezone.com/newsroom/prs/?pkgid=1552
Isle of Capri Black Hawk, L.L.C.
Comparative Financial Highlights on Continuing Operations
(In thousands)
Three Months Ended
April 30, 2006
--------------------------------------
Adjusted
EBITDA
Net Adjusted Margin %
Revenues (1) EBITDA (2) (2)
----------- --------- ---------
Isle-Black Hawk/Colorado
Central Station $ 44,493 $ 14,215 31.9%
Three Months Ended
April 24, 2005
--------------------------------------
Adjusted
EBITDA
Net Adjusted Margin %
Revenues (1) EBITDA (2) (2)
----------- --------- ---------
Isle-Black Hawk/Colorado
Central Station $ 38,340 $ 10,924 28.5%
Fiscal Year Ended
April 30, 2006
--------------------------------------
Adjusted
EBITDA
Net Adjusted Margin %
Revenues (1) EBITDA (2) (2)
----------- --------- ---------
Isle-Black Hawk/Colorado
Central Station $ 161,828 $ 49,981 30.9%
Fiscal Year Ended
April 25, 2005
--------------------------------------
Adjusted
EBITDA
Net Adjusted Margin %
Revenues (1) EBITDA (2) (2)
----------- --------- ---------
Isle-Black Hawk/Colorado
Central Station $ 138,588 $ 39,697 28.6%
Isle of Capri Black Hawk, L.L.C.
Reconciliation of Adjusted EBITDA to Net Income (Loss)
(In thousands)
Three Months Ended Fiscal Year Ended
------------------ -------------------
April 30, April 24, April 30, April 24,
2006 2005 2006 2005
------- ------- -------- --------
Isle-Black Hawk/Colorado
Central Station
Adjusted EBITDA $14,215 $10,921 $ 49,981 $ 39,697
Depreciation and
amortization (3,977) (2,796) (13,850) (9,936)
Interest expense, net (3,717) (3,034) (12,422) (9,390)
Management fee (1,932) (1,957) (7,439) (6,374)
Loss on extinguishment
of debt -- -- (2,110) --
Income tax benefit 585 545 1,213 2,642
Loss on discontinued
operations, net of tax (216) (2,946) (216) (2,946)
------- ------- -------- --------
Net income $ 4,958 $ 733 $ 15,157 $ 13,693
======= ======= ======== ========
Net income margin % (3) 11.1% 1.9% 9.4% 9.9%
======= ======= ======== ========
(1) Net revenues are presented net of complimentaries, slot points
expense and cash coupon redemptions.
(2) EBITDA is "earnings before interest, income taxes, depreciation
and amortization." Adjusted EBITDA for each property was
calculated by adding preopening expense, management fees and
non-cash items to EBITDA. Adjusted EBITDA is presented solely as
a supplemental disclosure because management believes that it is
1) a widely used measure of operating performance in the gaming
industry, and 2) a principal basis for valuation of gaming
companies. Management uses property level Adjusted EBITDA as the
primary measure of the properties' performance. Adjusted EBITDA
should not be construed as an alternative to net income, as an
indicator of the Company's operating performance; or as an
alternative to any other measure determined in accordance with
accounting principles generally accepted in the United States.
The properties have significant uses of cash flows, including
capital expenditures, interest payments, taxes and debt principal
repayment, which are not reflected in Adjusted EBITDA. Also,
other gaming companies that report Adjusted EBITDA information
may calculate Adjusted EBITDA in a different manner than the
Company. Adjusted EBITDA Margin is calculated by dividing
Adjusted EBITDA by net revenue. Reconciliations of net income
(loss) to Adjusted EBITDA are included in the financial schedules
accompanying this release.
(3) Net income (loss) margin was calculated by dividing net income
(loss) by net revenue.
Nevada Gold & Casinos, Inc.
Consolidated Balance Sheets
April 30, March 31,
2006 2005
----------- -----------
ASSETS
Current assets:
Cash and cash equivalents $ 4,296,154 $ 3,846,195
Accounts receivable 1,440,176 794,435
Notes receivable - affiliates,
current portion -- 1,200,000
Income tax receivable -- 113,288
Other current assets 428,532 312,220
----------- -----------
Total current assets 6,164,862 6,266,138
----------- -----------
Investments in unconsolidated affiliates 35,691,747 21,647,329
Investments in development projects 6,876,527 6,801,637
Notes receivable - affiliates,
net of current portion 3,637,099 2,777,136
Notes receivable - development projects 22,667,272 6,562,323
Goodwill 6,350,705 --
Property and equipment, net of
accumulated depreciation of $622,876,
$76,890 and $73,048 at April 30, 2006
April 24, 2005, and March 31, 2005,
respectively 2,580,093 110,549
Deferred tax asset 572,935 618,282
Other 3,601,850 547,120
----------- -----------
Total assets $88,143,090 $45,330,514
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $ 1,550,405 $ 1,029,877
Accrued interest payable 41,737 20,453
Other accrued liabilities 358,159 --
Long-term debt, current portion 3,779,345 3,317,499
----------- -----------
Total current liabilities 5,729,646 4,367,829
----------- -----------
Long-term debt, net of current
portion and discount 56,687,315 9,632,773
Deferred income 406,632 178,835
Other Liabilities 157,633 --
Total liabilities 62,981,226 14,179,437
Commitments and contingencies -- --
Minority interest 278,674 299,884
Stockholders' equity:
Common stock, $0.12 par value per share;
25,000,000 shares authorized; 13,912,330
and 12,970,330 shares issued and
12,970,330 and 12,755,203 shares
outstanding at April 30, 2006 and
March 31, 2005, respectively 1,669,479 1,530,624
Additional paid-in capital 18,122,632 14,817,101
Retained earnings 14,873,589 14,419,719
Treasury stock, 942,000 shares at
April 30, 2006 (9,781,669) --
Accumulated other comprehensive income (841) 83,749
----------- -----------
Total stockholders' equity 24,883,190 30,851,193
----------- -----------
Total liabilities and stockholders'
equity $88,143,090 $45,330,514
=========== ===========
Nevada Gold & Casinos, Inc.
Consolidated Statements of Operations
Fiscal Years Ended
-------------------------------------
April 30, March 31, March 31,
2006 2005 2004
----------- ----------- -----------
Revenues:
Casino $ 5,653,340 $ -- $ --
Food and beverage 1,471,816 -- --
Other 126,078 67,610 97,414
Credit enhancement fee 7,348,651 5,660,909 3,643,037
----------- ----------- -----------
Gross revenues 14,599,885 5,728,519 3,740,451
Less promotional allowances (1,450,664) -- --
----------- ----------- -----------
Net revenues 13,149,221 5,728,519 3,740,451
Operating expenses:
Casino 2,566,306 -- --
Food and beverage 863,703 -- --
Marketing and Advertising 1,935,257 -- --
Facility 276,304 -- --
Corporate expense 5,778,507 4,286,365 2,367,890
Legal Expenses 1,668,311 609,278 1,043,830
Depreciation and amortization 1,018,699 169,133 104,336
Write-off of notes receivable
related to Indian gaming
Projects 1,574,452 120,000 --
Write-off of project
development cost 286,653 180,850 245,356
Other 126,266 -- --
----------- ----------- -----------
Total operating expenses 16,094,458 5,365,626 3,761,412
----------- ----------- -----------
Operating income (loss) (2,945,237) 362,893 (20,961)
Non-operating income (expenses):
Earnings from unconsolidated
affiliates 6,917,818 7,648,802 11,243,466
Gain on sale of marketable
securities and assets 167,948 34,672 --
Interest income (expense), net (2,248,550) (367,460) 677,118
Minority interest (1,308,867) (837,849) (561,697)
----------- ----------- -----------
Income before income
tax expense 583,112 6,841,058 11,337,926
----------- ----------- -----------
Income tax (expense) benefit (211,251) (2,682,794) (3,813,870)
----------- ----------- -----------
Net income $ 371,861 $ 4,158,264 $ 7,524,056
=========== =========== ===========
Per share information:
Net income per common
share - basic $ 0.03 $ 0.33 $ 0.65
=========== =========== ===========
Net income per common
share - diluted $ 0.03 $ 0.29 $ 0.51
=========== =========== ===========
Basic weighted average number
of shares outstanding 12,975,697 12,788,269 11,534,889
=========== =========== ===========
Diluted weighted average number
of shares outstanding 13,577,238 14,672,777 15,425,427
=========== =========== ===========
Nevada Gold & Casinos, Inc.
Consolidated Statements of Operations
Three Months Ended
-------------------------
April 30, March 31,
2006 2005
----------- -----------
Revenues:
Casino $ 1,293,520 $ -
Food and beverage 254,948 -
Other 29,380 16,903
Credit enhancement fee 1,884,690 2,005,254
----------- -----------
Gross revenues 3,462,538 2,022,157
Less promotional allowances (281,342) -
----------- -----------
Net revenues 3,181,196 2,022,157
Operating expenses:
Casino 392,982 -
Food and beverage 193,229 -
Marketing and administrative 452,222 -
Facility 86,798 -
Corporate expense 1,552,052 1,156,040
Legal expenses 793,359 143,385
Write-off of notes receivable
related to Indian gaming Projects 1,574,452 120,000
Write-off project development cost 286,653 -
Depreciation and amortization 556,772 55,679
Other 50,603 -
----------- -----------
Total operating expenses 5,939,122 1,475,104
----------- -----------
Operating income (loss) (2,757,926) 547,053
Non-operating income (expenses):
Earnings from unconsolidated
affiliates 1,230,935 884,797
Gain on sale of marketable
securities and assets 62,574 34,672
Interest income (expense), net (900,911) (114,252)
Minority interest (327,488) (291,577)
----------- -----------
Income before income tax expense (2,692,816) 1,060,693
----------- -----------
Income tax (expense) benefit 957,984 (561,002)
----------- -----------
Net income $(1,734,832) $ 499,691
=========== ===========
Per share information:
Net income per common share -
basic $ (0.13) $ 0.04
=========== ===========
Net income per common share -
diluted $ (0.13) $ 0.04
=========== ===========
Basic weighted average number
of shares outstanding 13,058,095 12,754,303
=========== ===========
Diluted weighted average number
of shares outstanding 13,058,095 14,278,176
=========== ===========
CONTACT: Nevada Gold & Casinos, Inc.
H. Thomas Winn
Alan Greenstein
(713) 621-2245
Integrated Corporate Relations
Don Duffy
(203) 682-8200
Source: primezone
All trademarks and copyrighted information contained herein are the property of their respective owners.
Related Articles
|
