UWN Nevada Gold & Casinos, Inc.

Nevada Gold & Casinos, Inc. (NYSE Amex:UWN) today announced financial results for the fiscal third quarter ended January 31, 2010.

Quarterly highlights and subsequent events included:

Net revenues increased to $5.2 million compared to $1.4 million in the third quarter ended January 31, 2009;

Net loss of $0.5 million compared to a net loss of $0.5 million a year ago;

Net loss per basic and diluted common share of $0.04, compared to a net loss per basic and diluted common share of $0.04 in the year ago period;

Signed management and technical services contracts for the development and management of a hotel and casino adjacent to the Las Vegas Motor Speedway in North Las Vegas.

"The third quarter is our seasonally weakest quarter, but we are pleased with our performance. We are also seeing encouraging trends in the Colorado and Washington markets versus this time last year and are very encouraged by our preliminary results from our recently installed player tracking system and nine spot tables in our Washington casinos," said Robert Sturges, CEO of Nevada Gold. "We are also very excited about our recently announced management and technical services contracts for the development and management of a hotel and casino across from the Las Vegas Motor Speedway. Niche opportunities like this development and acquisitions still remain to be a main focus of this management team. We continue to believe that we're in a buyers' market and there are a number of additional interesting prospects that we're actively reviewing."

Financial Results

For the third quarter of fiscal 2010, net revenues increased to $5.2 million compared to $1.4 million in the third quarter of fiscal 2009. The Company had decreased management fees of $0.1 million in the third quarter of 2010 compared to $0.2 million in the third quarter of 2009, due to the termination of the management agreement with SunCruz. Operating expenses increased to $5.9 million from $2.3 million in the third quarter of 2009. The increase is primarily due to the addition of three mini casinos in Washington and the addition of table games at the Colorado Grande casino.

Net loss for the third quarter of fiscal 2010 was $0.5 million compared to a net loss of $0.5 million in the third quarter of fiscal 2009. Net loss per diluted common share was $0.04, compared to a net loss per diluted common share of $0.04 in the prior year period.

Basic and diluted weighted average common shares outstanding in the third quarter of each fiscal year were 12.9 million.

Earnings Conference Call and Webcast

The Company will host a conference call to discuss third quarter 2010 financial results today at 5:00 PM ET. The conference call can be accessed live over the phone by dialing (888) 204-4517, or, for international callers, (913) 312-0666. A replay will be available one hour after the call and can be accessed by dialing (888) 203-1112, or (719) 457-0820 for international callers; the conference ID is 3419818. The replay will be available until Wednesday, March 24, 2010. The call will be webcast live from the Company's website at www.NevadaGold.com under the investor relations section.

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

Nevada Gold & Casinos, Inc. (NYSE Amex:UWN) of Houston, Texas is a developer, owner and operator of gaming facilities in Colorado and Washington. The Colorado Grande Casino in Cripple Creek, Colorado, the Crazy Moose Casino in Pasco, Washington, the Coyote Bob's Roadhouse Casino in Kennewick, Washington and the Crazy Moose Casino in Mountlake Terrace, Washington are wholly owned and operated by Nevada Gold. The Company has an interest in Buena Vista Development Company, LLC which is working with the Buena Vista Rancheria of Me-Wuk Indians on a Native American casino project to be developed in the city of Ione, California. For more information, visit www.nevadagold.com.

The Nevada Gold & Casinos, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=1552

 

Nevada Gold & Casinos, Inc.

 

 

Consolidated Balance Sheets

 

 

 

 

 

 

January 31,

April 30,

 

2010

2009

 

(unaudited)

 

ASSETS

Current assets:

 

 

Cash and cash equivalents

$3,733,161

$13,834,544

Restricted cash

 6,164,822

 6,000,000

Accounts receivable

 211,056

 12,342

Prepaid expenses

 333,100

 235,847

Income tax receivable

 1,076,249

 1,872,369

Route 66 settlement agreement receivable

 1,597,183

 -- 

Notes receivable, current portion

 -- 

 1,100,000

Other current assets

 149,510

 46,444

Total current assets

 13,265,081

 23,101,546

 

 

 

Investments in development projects

 154,219

 746,024

Investments in development projects held for sale

 3,437,932

 3,437,932

Notes receivable - development projects, net of current portion and allowances

 1,700,000

 1,700,000

Goodwill

 12,952,160

 5,462,918

Identifiable intangible assets, net of accumulated

amortization of $525,000 and $0 at January 31, 2010

and April 30, 2009, respectively

 5,306,000

 -- 

Property and equipment, net of accumulated depreciation of $2,844,206 and $2,408,595 at January 31, 2010 and April 30, 2009, respectively

 3,595,324

 1,091,549

Deferred tax asset

 1,219,986

 599,797

Other assets

 4,437,762

 5,915,220

Total assets

$46,068,464

$42,054,986

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

 

 

Accounts payable and accrued liabilities

$1,075,453

$846,062

Deferred tax liability

 558,868

 -- 

Other accrued liabilities

 579,826

 197,833

Total current liabilities

2,214,147

1,043,895

 

 

 

Long-term debt

10,000,000

6,000,000

Other liabilities

184,493

44,487

Total liabilities

12,398,640

7,088,382

 

 

 

Commitments and contingencies

--

--

 

 

 

Stockholders' equity:

 

 

Common stock, $0.12 par value per share; 50,000,000 shares authorized; 13,935,330 shares issued and  12,764,130 and 12,939,130 shares outstanding at January 31, 2010  and April 30, 2009, respectively

1,672,240

1,672,240

Additional paid-in capital

19,843,574

19,297,560

Retained earnings

22,523,210

24,213,754

Treasury stock, 1,171,200 and 996,200 shares at January 31, 2010 and April 30, 2009, respectively, at cost

 (10,369,200)

 (10,216,950)

Total stockholders' equity

33,669,824

34,966,604

Total liabilities and stockholders' equity

$46,068,464

$42,054,986

 

 

 

Nevada Gold & Casinos, Inc.

 

 

Consolidated Statements of Operations

 

 

(unaudited)

 

 

 

 

 

 

Three Months Ended

 Nine Months Ended

 

January 31,

January 31,

January 31,

January 31,

 

2010

2009

2010

2009

Revenues:

 

 

 

 

Casino

$4,469,523

$1,181,539

$13,443,121

$4,176,153

Food and beverage

 1,074,962

 264,292

 3,423,638

 1,117,568

Other

223,777

11,693

626,648

38,643

Management and consulting fees

 120,968

 243,382

 620,968

 243,382

Gross revenues

5,889,230

1,700,906

18,114,375

 5,575,746

Less promotional allowances

 (683,406)

 (330,455)

 (2,110,972)

 (1,087,286)

Net revenues

5,205,824

1,370,451

 16,003,403

 4,488,460

 

 

 

 

 

Expenses: 

 

 

 

 

Casino

2,224,130

401,371

6,176,833

1,382,509

Food and beverage

613,408

94,507

2,337,762

507,092

Marketing and administrative

1,413,210

550,190

 4,089,432

 1,909,347

Facility

292,427

85,824

784,458

270,878

Corporate expense

865,978

857,440

3,243,043

2,936,036

Legal expense

202

75,979

103,205

175,108

Depreciation and amortization

 333,527

 162,685

 996,680

 511,028

Write-off of project development cost

 -- 

 11,580

 -- 

 1,215,383

Other

 112,041

 25,786

 335,500

 77,489

Total operating expenses

 5,854,923

 2,265,362

 18,066,913

 8,984,870

Operating loss

 (649,099)

 (894,911)

 (2,063,510)

 (4,496,410)

Non-operating income (expenses):

 

 

 

 

Loss from unconsolidated affiliates

 -- 

 -- 

 -- 

 (7,863)

Gain on sale of unconsolidated affiliate

 -- 

 430,510

 -- 

 430,510

Loss on sale of assets

 -- 

 -- 

 -- 

 (27,123)

Interest income

 44,944

 112,885

 150,012

 904,951

Interest expense

 (246,940)

 (323,514)

 (625,411)

 (1,123,433)

Amortization of loan issue costs

 (25,552)

 (32,209)

 (85,531)

 (96,056)

Loss before income tax benefit

 (876,647)

 (707,239)

 (2,624,440)

 (4,415,424)

 

 

 

 

 

Income tax benefit

 330,925

 240,461

 933,895

 1,501,244

 

 

 

 

 

Net loss

 $(545,722)

 $(466,778)

 $(1,690,545)

 $(2,914,180)

 

 

 

 

 

Per share information:

 

 

 

 

Net loss per common share - basic

 $(0.04)

 $(0.04)

 $(0.13)

 $(0.23)

Net loss per common share --  diluted

 $(0.04)

$(0.04)

 $(0.13)

 $(0.23)

 

 

 

 

 

Basic weighted average number of common shares outstanding

12,866,847

12,939,130

12,915,036

12,939,130

Diluted weighted average number of common shares outstanding

12,866,847

12,939,130

12,915,036

12,939,130

 

 

 

 

 

CONTACT: Nevada Gold & Casinos, Inc.

Robert B. Sturges, CEO

Jim Kohn, CFO

(713) 621-2245

ICR

Don Duffy

(203) 682-8200