ISLE Isleworth Healthcare Acquisition Corporation

/FIRST AND FINAL ADD -- DATU046 -- Nevada Gold & Casinos, Inc. Tables/ Isle of Capri Black Hawk L.L.C. Comparative Financial Highlights by Casino Property (In thousands) Three Months Ended January 23, 2005 January 25, 2004 Adjusted Adjusted EBITDA EBITDA Net Adjusted Margin Net Adjusted Margin Revenues(A) EBITDA(B) %(B) Revenues(C) EBITDA(B) %(B) Isle-Black Hawk (C) 24,760 8,526 34.4% 25,148 9,870 39.2% Colorado Central Station (C) (D) 7,228 282 3.9% 10,243 2,192 21.4% Colorado Grande (C) (D) 1,409 (5) (0.4%) 1,677 287 17.1% Colorado Total 33,397 8,803 26.4% 37,068 12,349 33.3% Nine Months Ended January 23, 2005 January 25, 2004 Adjusted Adjusted EBITDA EBITDA Net Adjusted Margin Net Adjusted Margin Revenues(A) EBITDA(B) %(B) Revenues(A) EBITDA(B) %(B) Isle-Black Hawk (C) 76,605 27,564 36.0% 80,701 30,419 37.0% Colorado Central Station (C) (D) 23,644 1,212 5.1% 33,903 7,436 22.2% Colorado Grande (C) (D) 5,512 873 15.8% 5,995 1,488 27.8% Colorado Total 105,761 29,649 28.0% 120,599 39,343 32.6% Isle of Capri Black Hawk L.L.C. Reconciliation of Operating Income (Loss) to Adjusted EBITDA by Casino Property (In thousands) Three Months Ended January 23, 2005 Operating Income Adjusted Depreciation & Operating (Loss) EBITDA(B) Amortization Income (Loss) Margin %(E) Isle-Black Hawk (C) 8,526 1,802 6,724 27.2% Colorado Central Station (C) (D) 282 636 (354) (4.9%) Colorado Grande (C) (D) (5) 115 (120) (8.5%) Colorado Total 8,803 2,553 6,250 18.7% Three Months Ended January 25, 2004 Operating Income Adjusted Depreciation & Operating (Loss) EBITDA(B) Amortization Income (Loss) Margin %(E) Isle-Black Hawk (C) 9,870 1,650 8,220 32.7% Colorado Central Station (C) (D) 2,192 405 1,787 17.4% Colorado Grande (C) (D) 287 72 215 12.8% Colorado Total 12,349 2,127 10,222 27.6% Isle of Capri Black Hawk L.L.C. Reconciliation of Operating Income (Loss) to Adjusted EBITDA by Casino Property (In thousands) Nine Months Ended January 23, 2005 Operating Income Adjusted Depreciation & Operating (Loss) EBITDA(B) Amortization Income (Loss) Margin %(E) Isle-Black Hawk (C) 27,564 5,276 22,288 29.1% Colorado Central Station (C) (D) 1,212 1,864 (652) (2.8%) Colorado Grande (C) (D) 873 325 548 9.9% Colorado Total 29,649 7,465 22,184 21.0% Nine Months Ended January 25, 2004 Operating Income Adjusted Depreciation & Operating (Loss) EBITDA(B) Amortization Income Margin %(E) Isle-Black Hawk (C) 30,419 5,093 25,326 31.4% Colorado Central Station (C) (D) 7,436 1,106 6,330 18.7% Colorado Grande (C) (D) 1,488 213 1,275 21.3% Colorado Total 39,343 6,412 32,931 27.3% Isle of Capri Black Hawk L.L.C. Reconciliation of Net Income (Loss) to Operating Income (Loss) by Casino Property (In thousands) Three Months Ended January 23, 2005 Operating Income tax Net Income Interest Interest Management (provision) Income (loss) Expense Income Fee benefit (Loss) Isle-Black Hawk (C) 6,724 (700) 5 (1,211) --- 4,818 Colorado Central --- --- Station (C) (D) (354) (1,368) 3 (215) 747 (1,187) Colorado Grande (C) (D) (120) (185) 2 (45) 153 (195) Colorado Total 6,250 (2,253) 10 (1,471) 900 3,436 Three Months Ended January 25, 2004 Income tax Net Operating Interest Interest Management (provision) Income Income Expense Income Fee benefit (Loss) Isle-Black Hawk (C) 8,220 (1,252) 34 (1,136) --- 5,866 Colorado Central --- Station (C) (D) 1,787 (1,368) 1 (662) 119 (123) Colorado Grande (C) (D) 215 (186) --- (71) 15 (27) Colorado Total 10,222 (2,806) 35 (1,869) 134 5,716 Isle of Capri Black Hawk L.L.C. Reconciliation of Net Income (Loss) to Operating Income (Loss) by Casino Property (In thousands) Nine Months Ended January 23, 2005 Operating Income tax Net Income Interest Interest Management (provision) Income (loss) Expense Income Fee benefit (Loss) Isle-Black Hawk (C) 22,288 (2,309) 53 (3,683) 16,349 Colorado Central --- Station (C) (D) (652) (4,105) 5 (734) 2,097 (3,389) Colorado Grande (C) (D) 548 (556) 4 (235) 109 (130) Colorado Total 22,184 (6,970) 62 (4,652) 2,206 12,830 Nine Months Ended January 25, 2004 Income tax Net Operating Interest Interest Management (provision) Income Income Expense Income Fee benefit Isle-Black Hawk (C) 25,326 (3,909) 94 (3,644) 17,867 Colorado Central --- Station (C) (D) 6,330 (4,092) 2 (1,563) (332) 345 Colorado Grande (C) (D) 1,275 (552) 2 (283) (170) 272 Colorado Total 32,931 (8,553) 98 (5,490) (502) 18,484 (A) Net revenues are presented net of complimentaries, slot points expense and cash coupon redemptions. (B) 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 (Adjusted EBITDA before corporate expense) as the primary measure of the properties' performance. Adjusted EBITDA should not be construed as an alternative to operating 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 operating income to Adjusted EBITDA are included in the financial schedules accompanying this release. (C) The Adjusted EBITDA for the Isle-Black Hawk, the Colorado Central Station-Black Hawk and the Colorado Grande-Cripple Creek, does not include management fees. The following table shows Adjusted EBITDA inclusive of management fees for the three months and nine months ended January 23, 2005, and January 25, 2004: Three Months Ended Nine Months Ended January 23, January 25, January 23, January 25, 2005 2004 2005 2004 (In thousands) Adjusted EBITDA with Management Fees Isle - Black Hawk 7,315 8,734 23,881 26,775 Colorado Central Station 67 1,530 478 5,873 Colorado Grande (50) 216 638 1,205 (D) The Isle of Capri Black Hawk L.L.C. acquired these properties on April 22, 2003. (E) Operating income margin was calculated by dividing operating income by net revenue. NEVADA GOLD & CASINOS, INC. Consolidated Balance Sheets December 31, March 31, Assets 2004 2004 (Unaudited) (Audited) Current Assets Cash and cash equivalents $2,886,522 $3,528,631 Accounts receivable 455,984 216,322 Income tax receivable 2,510,000 2,522,000 Notes receivable from affiliates, current portion 1,200,000 1,200,000 Other assets 195,921 79,272 Total Current Assets 7,248,427 7,546,225 Joint ventures in equity investees: Isle of Capri Black Hawk, L.L.C. 17,957,858 15,708,324 Route 66 Casinos, L.L.C. 3,085,236 1,852,828 Sunrise Land and Mineral Corporation 371,750 371,750 Investments in development and operating projects: Dry Creek Casino, L.L.C., gaming 1,194,520 1,264,164 Nevada Gold Tulsa, Inc., gaming 1,201,035 744,617 Gold River, L.L.C., gaming 123,358 19,770 Gold Mountain Development, L.L.C., real estate 3,356,958 3,342,207 Goldfield Resources, Inc., mining 480,812 480,812 Other assets, gaming 519,235 414,571 Notes receivable from Dry Creek Rancheria 10,000,000 10,000,000 Notes receivable - gaming projects 5,214,071 --- Notes receivable from affiliates 3,052,121 3,839,586 Deferred loan issue cost, net 410,008 285,450 Deferred tax asset 870,187 --- Furniture, fixtures and equipment, net of accumulated depreciation of $153,931 at December 31, 2004 and $124,609 at March 31, 2004 100,739 80,753 Total Assets $55,186,315 $45,951,057 Liabilities and Stockholders' Equity Current Liabilities Accounts payable and accrued liabilities $1,215,087 $1,205,241 Deferred tax liability --- 2,517,678 Current portion of long-term debt, net of discount 6,516,134 --- Total Current Liabilities 7,731,221 3,722,919 Long-Term Liabilities Deferred income 101,995 145,833 Convertible note, net of discount and current portion --- 11,029,266 Term note payable, net of current portion 3,272,500 --- Note payable on credit facility 13,915,671 --- Total Long-Term Liabilities 17,290,166 11,175,099 Total Liabilities 25,021,387 14,898,018 Commitments and Contingencies --- --- Minority interest - Dry Creek Casino, L.L.C. 263,382 253,719 Stockholders' Equity Common stock, $0.12 par value, 20,000,000 shares authorized, 13,343,603 and 12,279,352 shares issued at December 31, 2004, and March 31, 2004, respectively 1,601,232 1,473,522 Additional paid in capital 20,961,697 19,256,200 Treasury stock, 604,900 shares, at cost (6,608,955) --- Retained earnings 13,920,028 10,261,455 Accumulated other comprehensive income (loss) 27,544 (191,857) Total Stockholders' Equity 29,901,546 30,799,320 Total Liabilities and Stockholders' Equity $55,186,315 $45,951,057 NEVADA GOLD & CASINOS, INC. Consolidated Statements of Operations (Unaudited) Three Months Ended December 31, 2004 2003 Revenues Gaming asset participation income: Dry Creek Casino, L.L.C. $1,238,520 $867,718 Other income: Interest income 444,060 1,795,659 Royalty income 16,903 16,903 Total Revenues 1,699,483 2,680,280 Expenses General and administrative 270,552 295,602 Interest expense 512,355 747,775 Salaries 599,589 333,263 Legal and professional fees 567,788 239,720 Amortization of deferred loan issue cost 63,926 967,124 Other 44,032 50,789 Total Expenses 2,058,242 2,634,273 Equity in earnings of Isle of Capri-Black Hawk 1,477,890 2,457,760 Equity in earnings of Route 66 400,755 418,351 Casinos, L.L.C. Minority interest - Dry Creek Casino, L.L.C. (184,448) (127,156) Income before income tax provision 1,335,438 2,794,962 Federal income tax provision - deferred (507,466) (986,675) Net Income $827,972 $1,808,287 Per Share Information Net income per common share - basic $0.06 $0.16 Net income per common share - diluted $0.06 $0.12 Basic weighted average number of common shares outstanding 12,837,107 11,660,023 Fully diluted weighted average number of common shares outstanding 14,286,637 15,189,664 NEVADA GOLD & CASINOS, INC. Consolidated Statements of Operations (Unaudited) Nine Months Ended December 31, 2004 2003 Revenues Gaming asset participation income: Dry Creek Casino, L.L.C. $3,655,655 $2,576,926 Other income: Interest income 1,370,461 4,348,959 Royalty income 50,708 45,537 Miscellaneous income --- 34,975 Total Revenues 5,076,824 7,006,397 Expenses General and administrative 761,913 667,028 Interest expense 1,330,755 2,809,681 Salaries 1,556,046 893,418 Legal and professional fees 1,248,834 1,082,037 Amortization of deferred loan issue cost 292,915 960,084 Write-off of project development costs 180,850 23,403 Other 142,879 119,675 Total Expenses 5,514,192 6,555,326 Equity in earnings of Isle of Capri-Black Hawk 5,517,108 7,948,208 Equity in earnings of Route 66 Casinos, L.L.C. 1,246,897 636,625 Minority interest - Dry Creek Casino, L.L.C. (546,272) (396,080) Income before income tax provision 5,780,365 8,639,824 Federal income tax provision - deferred (2,121,792) (2,973,753) Net Income $3,658,573 $5,666,071 Per Share Information Net income per common share - basic $0.29 $0.50 Net income per common share - diluted $0.26 $0.39 Basic weighted average number of common shares outstanding 12,799,385 11,361,669 Fully diluted weighted average number of common shares outstanding 14,793,284 15,403,212 PRNewswire-FirstCall -- Feb. 8 END FIRST AND FINAL ADD DATASOURCE: Nevada Gold & Casinos, Inc. Web site: http://www.nevadagold.com/

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