CORRECTION: Nevada Gold & Casinos Announces First Quarter Results
HOUSTON, Aug. 9 /PRNewswire-FirstCall/ -- Nevada Gold & Casinos, Inc. (AMEX:UWN) today announced financial results for the first quarter of fiscal
2005 ended June 30, 2004.
Highlights for the first quarter ended June 30, 2004 included:
-- Revenue increased 12% to $1.8 million from the prior year
-- Equity in earnings from Isle of Capri-Black Hawk was $2.4 million
-- Net income increased 3% to $1.7 million, or $0.12 per fully-diluted
share
-- Memoranda of agreement signed for two additional gaming projects H. Thomas Winn, Chairman, President & CEO of Nevada Gold & Casinos, Inc. commented, "Our financial results improved primarily due to project
contributions from River Rock, which was offset by the disruption we
experienced during the quarter at the Isle of Capri Black Hawk. Importantly,
we continue to make excellent progress on our expansion projects and the new
project development pipeline gives us great confidence in our future." For the first quarter of fiscal 2005, revenues increased 12% to $1.8 million
compared to $1.6 million in the first quarter of fiscal 2004. The revenue
increase was primarily due to a 350% increase in project contributions from
River Rock offset by lower interest income related to the decrease in
outstanding notes receivable from the River Rock project.
The Company's equity in earnings from Isle of Capri-Black Hawk (IC-BH), the
company's joint venture with Isle of Capri Casinos, decreased to $2.4 million
from $2.8 million in the prior year period. IC-BH's first quarter earnings
before interest, taxes, depreciation and amortization ("EBITDA"), decreased to
$11.2 million compared to $13.7 million in the prior year period. A
reconciliation of EBITDA to operating income is provided in the attached
financial statements. The decrease in earnings and EBITDA is solely
attributable to the construction disruption related to the expansion project at
the joint venture's two properties in Black Hawk.
Net income for the first quarter was $1.7 million compared to $1.7 in the first
quarter of fiscal 2004. Net income per diluted common share was $0.12,
comparable to the prior year. Diluted weighted average common shares
outstanding in the first quarter were 15.4 million compared to 15.3 million in
the prior year period.
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.
NEVADA GOLD & CASINOS, INC. Consolidated Statements of Operations
(Unaudited) Three Months Ended
June 30,
2004 2003
Revenues
Gaming asset participation income:
Dry Creek Casino, L.L.C. $1,351,267 $300,458
Other income:
Interest income 465,564 1,307,649
Royalty income 16,903 13,500
Miscellaneous income --- 15,645 Total Revenues 1,833,734 1,637,252 Expenses
General and administrative 259,744 159,805
Interest expense 439,928 1,017,419
Salaries 401,321 273,604
Legal and professional fees 305,994 314,026
Amortization of deferred loan issue cost 175,724 142,623
Write-off of capitalized development costs 180,850 ---
Other 27,136 22,208 Total Expenses 1,790,697 1,929,685 Equity in earnings of Isle of Capri-Black Hawk 2,388,380 2,833,347
Equity in earnings of Route 66 Casinos, LLC 431,605 25,974
Minority interests - Dry Creek Casino, L.L.C. (202,944) (53,292) Income before income tax provision 2,660,078 2,513,596 Federal income tax provision - deferred (936,084) (839,723) Net Income $1,723,994 $1,673,873 Per Share Information
Net income available to common shareholders $1,723,994 $1,673,873 Net income per common share - basic $0.14 $0.15 Net income per common share - diluted $0.12 $0.12 Basic weighted average number of
common shares outstanding 12,519,769 11,171,734 Fully diluted weighted average number of
common shares outstanding 15,410,793 15,251,828
Isle of Capri Casinos, Inc. Comparative Financial Highlights by Casino Property
(In Thousands) THREE MONTHS ENDED
July 25, 2004 July 27, 2003 Adjusted Adjusted
Net Adjusted EBITDA Net Adjusted EBITDA
Revenue EBITDA Margin % Revenues EBITDA Margin %
(A) (B) (B) (A) (B) (B) Black Hawk (C) $26,297 $10,186 38.7% $28,080 $10,649 37.9%
Colorado
Central
Station (C) (D) 8,343 521 6.2% 12,019 2,560 21.3%
Colorado
Grande (C) (D) 2,152 513 23.8% 2,037 514 25.2%
Total $36,792 $11,220 30.5% $42,136 $13,723 32.6%
Isle of Capri Casinos, Inc. Reconciliation of Operating Income (Loss) to Adjusted EBITDA by Casino
Property
(In Thousands) Three Months Ended July 25, 2004 Operating
Adjusted Depreciation & Operating Income (Loss)
EBITDA (B) Amortization Income (Loss) Margin % (E) Black Hawk (C) $10,186 $1,716 $8,470 32.2%
Colorado Central
Station (C) (D) 521 567 (46) (0.6)%
Colorado Grande
(C) (D) 513 101 412 19.1%
Total $11,220 $2,384 $8,836 24.0%
Three Months Ended July 27, 2003 Operating
Adjusted Depreciation & Operating Income (Loss)
EBITDA (B) Amortization Income (Loss) Margin % (E)
Black Hawk (3) $10,649 $1,734 $8,915 31.7%
Colorado Central
Station (3) (4) 2,560 369 2,191 18.2%
Colorado Grande
(3) (4) 514 70 444 21.8%
Total $13,723 $2,173 $11,550 27.4% (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 management fees
and Adjusted EBITDA inclusive of management fees for the three
months and fiscal years ended July 25, 2004, and July 27, 2003: Three Months Ended
July 25, 2004 July 27, 2003
Management Fees (in thousand)
Isle - Black Hawk $1,268 $1,264
Colorado Central Station 264 544
Colorado Grande 101 102 Adjust EBITDA with Management Fees
Isle - Black Hawk $8,918 $9,385
Colorado Central Station 257 2,016
Colorado Grande 412 412 (D) The Isle of Capri-Black Hawk, LLC 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 June 30, March 31,
2004 2004
Assets (Unaudited) (Audited)
Current Assets
Cash and cash equivalents $4,079,397 $3,528,631
Accounts receivable 405,085 216,322
Income tax receivable 2,522,000 2,522,000
Notes receivable from affiliates, current
portion 1,200,000 1,200,000
Other assets 105,675 79,272
Total Current Assets 8,312,157 7,546,225 Joint venture in equity investee:
Isle of Capri Black Hawk, L.L.C. 17,124,315 15,708,324
Route 66 Casinos, L.L.C. 2,279,603 1,852,828
Sunrise Land and Mineral Corporation 371,750 371,750
Investment in development projects:
Dry Creek Casino, L.L.C., gaming
development 1,238,421 1,264,164
Gold Mountain Development, L.L.C., land
development 3,346,059 3,342,207
Goldfield Resources, Inc., mining interest 480,812 480,812
Notes receivable from Dry Creek Rancheria 10,000,000 10,000,000
Notes receivable from affiliates 3,551,548 3,839,586
Notes receivable - other 2,230,250 ---
Deferred loan issue cost 347,198 285,450
Deferred tax asset 1,306,599 ---
Other assets 1,547,212 1,178,958
Furniture, fixtures and equipment, net of
accumulated depreciation of $133,372 in
June 30, 2004 and $124,609 in
March 31, 2004 83,068 80,753
Total Assets $52,218,992 $45,951,057 Liabilities and Stockholders' Equity Current Liabilities
Accounts payable and accrued liabilities $1,231,588 $1,205,241
Deferred tax liability --- 2,517,678
Current portion of long-term debt 3,272,500 ---
Total Current Liabilities 4,504,088 3,722,919 Long-Term Debt
Deferred income 83,333 145,833
Notes payable, net of current portion and
discount 14,394,873 11,029,266
Total Long-Term Debt 14,478,206 11,175,099 Total Liabilities 18,982,294 14,898,018 Commitments and Contingencies --- --- Minority interest - Dry Creek Casino, L.L.C. 279,188 253,719 Stockholders' Equity
Common stock, $0.12 par value,
20,000,000 shares authorized,
13,078,503 and 12,279,352 shares outstanding
at June 30, 2004, and March 31, 2004,
respectively 1,569,420 1,473,522
Additional paid in capital 19,454,173 19,256,200
Retained earnings 11,985,450 10,261,455
Accumulated other comprehensive loss (51,533) (191,857) Total Stockholders' Equity 32,957,510 30,799,320 Total Liabilities and Stockholders'
Equity $52,218,992 $45,951,057 About Nevada Gold & Casinos
Nevada Gold & Casinos, Inc. of Houston, is a developer of gaming properties,
and has real estate interests in Colorado, California, and Nevada. UWN owns a
43% interest in The Isle of Capri-Black Hawk LLC, which owns Isle of Capri
Casino, a 237-room hotel/casino and Colorado Central Station Casino (both
located in Black Hawk, Colo., about 35 miles west of Denver) and Colorado
Grande Casino, located in Cripple Creek, Colo. The LLC is a joint venture with
Isle of Capri Casinos, Inc. (NASDAQ:ISLE). UWN has 69% ownership of Dry Creek
Casino, LLC, which is assisting the Dry Creek Rancheria Band of Pomo Indians
with their River Rock Casino, Alexander Valley, Sonoma County, California
(about 75 miles north of San Francisco in the California wine country). UWN
has 51% ownership of Route 66 Casinos, LLC, which has the right to lease gaming
equipment to the Pueblo of Laguna in their Route 66 Casino 11 miles west of
Albuquerque, N.M., which opened in September 2003. UWN has entered into a
contract to develop and manage a casino for the Muscogee (Creek) Nation in
Tulsa, Okla. For more information, visit http://www.nevadagold.com/ .
CONTACT: Nevada Gold & Casinos, Inc., Houston
H. Thomas Winn or Christopher Domijan, 713-621-2245
or
Integrated Corporate Relations
Don Duffy 203-222-9013
DATASOURCE: Nevada Gold & Casinos, Inc.
CONTACT: H. Thomas Winn or Christopher Domijan, both of Nevada Gold & Casinos, Inc., +1-713-621-2245; or Don Duffy of Integrated Corporate Relations, +1-203-222-9013 Web site: http://www.nevadagold.com/
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