UWN Nevada Gold & Casinos, Inc.

Nevada Gold & Casinos, Inc. (NYSE MKT:UWN) today announced financial results for the fourth quarter and year ended April 30, 2018.  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.

The financial results reflect an adjustment related to progressive liabilities for $0.6 million in fiscal 2018 and $0.2 million in the prior year which reduced casino revenue and marketing expense equally with no effect on operating income.  Of this adjustment, $0.1 million related to the fourth quarter of both 2018 and 2017.

FOURTH QUARTERFor the fourth quarter of fiscal 2018, the Company reported net revenues of $18.5 million compared to $19.8 million in the fourth quarter of fiscal 2017.  Operating income was $0.6 million compared to $1.9 million in the prior year.   Net income was $0.4 million, or $0.02 per share. Consolidated Adjusted EBITDA was $2.1 million compared to $2.6 million in the prior year period.    

During the fourth quarter, net revenues from Washington state gaming operations decreased to $13.7 million from the $14.8 million in the prior year period, while EBITDA decreased to $2.1 million compared to $2.5 million in the prior year period.  Club Fortune net revenues were $3.4 million compared to $3.7 million in the prior year period, while EBITDA decreased by $0.2 million to $0.5 million. South Dakota route operation revenues decreased $89,000 from the prior year period and EBITDA declined $11,000 for the quarter. Corporate expenses were approximately $0.6 million in both periods, excluding non-recurring sale transaction expenses. 

FISCAL YEARFor the fiscal year 2018, the Company reported net revenues of $74.6 million compared to $74.5 million in fiscal year 2017.  Operating expenses were $72.0 million compared to $72.7 million in the prior year.  Net income was $1.3 million compared to $0.6 million in the prior year.

Net revenues for the fiscal year from Washington state gaming operations increased to $54.4 million from $54.3 million, primarily due to increased Poker revenue.  Higher wages and marketing expenses contributed to Adjusted EBITDA decreasing to $6.5 million from $7.0 million in the prior year.   Club Fortune net revenues were $13.6 million and Adjusted EBITDA was $1.7 million compared to revenues of $13.5 million and Adjusted EBITDA of $1.5 million in the prior year.  South Dakota route operation revenues decreased $0.1 million to $6.6 million while Adjusted EBITDA decreased to $0.1 million.  We recorded a write down and other charges related to South Dakota of $0.4 million in the current year, compared to $1.1 million in the prior year. Corporate adjusted EBITDA was negative $2.3 million compared to negative $2.5 million in the prior year. 

During the fiscal year the Company repaid $4.3 million in bank debt and as of April 30, 2018, the outstanding bank debt was $8.0 million and unrestricted cash on hand was $9.5 million.  During the year ended April 30, 2018, the Company repurchased 788,301 shares at a weighted average price of $2.16 per share, costing $1,700,291. As of April 30, 2018, $1.7 million remains available under the share repurchase authorization.

STRATEGIC REVIEWThe Company’s Strategic Review is ongoing and has resulted to date in significant steps to restructure the Company’s operations.  On June 30, 2018 the Company completed the sale of its South Dakota slot route operations and on June 27, 2018 executed a definitive agreement to sell the Club Fortune Casino in Henderson, Nevada for $14.6 million.  The Company has previously announced that effective upon closure of the sale of Club Fortune casino, its corporate headquarters will relocate from Las Vegas to the Seattle, Washington area reducing corporate overhead by $1.2 million.  At that time Victor Mena will succeed Michael Shaunnessy as President and Chief Executive Officer.  Mr. Mena has led the operations in Washington since 2009.

Non-GAAP InformationThe 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.

Net income reconciliation to Adjusted EBITDA:

		For the three months ended
		April 30, 2018				April 30, 2017
Net income		$	367,121			$	1,196,560
Adjustments:
Net interest expense			158,955				149,772
Income tax expense			134,930				578,237
Depreciation and amortization			522,261				714,652
Write downs and other charges			358,807				-
Deferred rent amortization			3,868				5,168
Stock compensation amortization			14,702				2,980
Acquisition and sale related expenses			589,839				-
Increase in swap fair value			(37,575	)			(23,865	)
Loss on disposal of assets			2,090				20,693
Adjusted EBITDA		$	2,114,998			$	2,644,197

		For the fiscal year ended
		April 30, 2018				April 30, 2017
Net income		$	1,323,425			$	563,964
Adjustments:
Net interest expense			591,146				666,543
Income tax expense			853,426				790,829
Depreciation and amortization			2,370,752				3,021,280
Acquisition and sale related expenses			589,839				113,900
Write downs and other charges			358,807				1,101,472
Deferred rent amortization			9,943				36,068
Stock compensation amortization			104,140				124,279
Increase in swap fair value			(171,018	)			(250,385	)
Loss on disposal of assets			7,863				77,183
Adjusted  EBITDA		$	6,038,323			$	6,245,133

Conference Call and WebcastThe Company will host a conference call at 4:30 PM ET (1:30 PM PT) today to discuss the financial results and provide a corporate update. The call can be accessed live by dialing (888) 254-3590. International callers can access the call by dialing (323) 994-2093.

A telephone replay of the conference call will be available after 7:30 PM ET and can be accessed by dialing (844) 512-2921. International callers can access the replay by dialing (412) 317-6671; the pin number is 8454743. The replay will be available through August 2, 2018.

Forward-Looking StatementsThis 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 & CasinosNevada 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).

Contacts: Nevada Gold & Casinos, Inc.Michael P. Shaunnessy / James Meier(702) 685-1000Stonegate Capital PartnersPreston Graham(972) 850-2001

Nevada Gold & Casinos, Inc.
Consolidated Statements of Operations
		Three Months Ended							Twelve Months Ended
	April 30,				April 30,				April 30,				April 30,
	2018				2017				2018				2017
Revenues:
Casino	$	16,172,021			$	17,607,040			$	65,767,827			$	65,838,576
Food and beverage		3,435,099				3,424,377				13,252,982				13,439,326
Other		494,052				517,842				1,978,619				2,140,113
Gross revenues		20,101,172				21,549,259				80,999,428				81,418,015
Less promotional allowances		(1,615,610	)			(1,707,086	)			(6,446,902	)			(6,959,066	)
Net revenues		18,485,562				19,842,173				74,552,526				74,458,949
Expenses:
Casino		8,779,150				9,307,408				36,476,733				36,488,019
Food and beverage		1,790,000				1,606,638				6,801,269				6,194,698
Other		49,923				55,034				206,764				208,090
Marketing and administrative		4,754,110				5,168,141				20,715,534				20,752,103
Facility		505,787				498,322				2,008,090				2,126,150
Corporate		1,100,004				570,581				3,009,735				2,719,003
Depreciation and amortization		522,261				714,652				2,370,752				3,021,280
Loss on sale of assets		2,090				20,693				7,863				77,183
Write downs and other charges		358,807				-				358,807				1,101,472
Total operating expenses		17,862,132				17,941,469				71,955,547				72,687,998
Operating income from continuing operations		623,430				1,900,704				2,596,979				1,770,951
Non-operating income (expenses):
Interest income		8,818				15,770				46,241				81,011
Interest expense and amortization of loan costs		(167,772	)			(165,542	)			(637,387	)			(747,554	)
Change in swap fair value		37,575				23,865				171,018				250,385
Income before income tax		502,051				1,774,797				2,176,851				1,354,793
Income tax expense		(134,930	)			(578,237	)			(853,426	)			(790,829	)
Net income	$	367,121			$	1,196,560			$	1,323,425			$	563,964
Per share information:
Net income per common share - basic and diluted	$	0.02			$	0.07			$	0.08			$	0.03
Basic weighted average number of shares outstanding		16,848,182				17,583,101				16,985,532				17,688,229
Diluted weighted average number of share outstanding		17,213,052				17,918,456				17,350,402				17,990,524

Nevada Gold & Casinos, Inc.
Consolidated Balance Sheets
	April 30,				April 30,
	2018				2017
ASSETS
Current assets:
Cash and cash equivalents	$	9,508,931			$	10,631,903
Restricted cash		2,369,063				1,994,312
Accounts receivable, net of allowances		485,774				808,484
Prepaid expenses		1,436,538				1,209,507
Notes receivable, current portion		-				383,093
Inventory and other current assets		430,296				423,113
Total current assets		14,230,602				15,450,412
Real estate held for sale		750,000				750,000
Goodwill		16,923,588				16,923,588
Identifiable intangible assets, net of accumulated
amortization of $9,361,189 and $8,869,497 at April 30,
2018 and April 30, 2017, respectively		3,497,779				4,107,328
Property and equipment, net of accumulated depreciation
of $9,260,152 and $7,635,620 at April 30, 2018 and
April 30, 2017, respectively		12,812,411				13,958,715
Deferred tax asset		704,044				1,557,470
Other assets		204,672				70,000
Total assets	$	49,123,096			$	52,817,513
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	1,695,495			$	1,303,571
Accrued payroll and related		2,049,313				1,925,592
Accrued player's club points and progressive jackpots		2,592,456				2,348,068
Total current liabilities		6,337,264				5,577,231
Long-term debt		7,895,240				12,061,411
Other long-term  liabilities		637,207				667,110
Total liabilities		14,869,711				18,305,752
Stockholders' equity:
Common stock, $0.12 par value per share; 50,000,000
shares authorized; 18,715,985 and 18,627,167 shares issued and 16,848,182 and 17,547,665 shares outstanding at April 30, 2018, and April 30, 2017, respectively		2,245,927				2,235,269
Additional paid-in capital		27,557,151				27,449,319
Retained earnings		13,644,239				12,320,814
Treasury stock, 1,867,803 and 1,079,502 shares at April 30, 2018 and April 30, 2017, at cost		(9,193,932	)			(7,493,641	)
Total stockholders' equity		34,253,385				34,511,761
Total liabilities and stockholders' equity	$	49,123,096			$	52,817,513