Exhibit 99.1
Nevada Gold & Casinos, Inc.
Unaudited Pro Forma Consolidated Financial Statements
Effective December 31, 2018, Nevada Gold & Casinos, Inc. (the “Company”) and Nevada Gold & Casinos LV, LLC, a wholly-owned subsidiary of the Company (“NGC LV”), completed the sale of substantially all of their assets related to Club Fortune Casino located in Henderson, Nevada (“Club Fortune”) to Truckee Gaming, LLC (“Truckee”). The sale was effected pursuant to a previously announced Asset Purchase Agreement dated as of June 26, 2018 (the “Asset Purchase Agreement”), by and among Truckee, NGC LV, and the Company.
The purchase price was approximately $14.65 million, subject to certain post-closing purchase price adjustments, including a post-closing working capital true-up. A portion of the purchase price was used by the Company to pay in full the outstanding principal and other amounts due under the Company’s credit agreement with Mutual of Omaha Bank.
The following unaudited pro forma consolidated statements of operations for the years ended April 30, 2018 and 2017, and for the six months ended October 31, 2018, give effect to the sale of Club Fortune as if it occurred on the first day of the period presented. The unaudited pro forma financial statements are not necessarily indicative of the results that would have been reported had such transactions actually occurred on the date specified, nor are they indicative of the Company’s future results of operations or financial condition. The unaudited pro forma financial statements are based on and should be read in conjunction with, the historical financial statements and notes thereto of the Company and the historical financial statements and notes thereto of the Company.
The pro forma adjustments eliminate Club Fortune financial results, record the sale of Club Fortune and the resulting repayment of the related debt, and eliminate expenses that would not have been incurred had the sale of Club Fortune occurred at the beginning of the period presented.
Nevada Gold & Casinos, Inc.
Pro Forma Statement of Operations
Six Months Ended October 31, 2018
Historical | Adjustments | AJE | Pro forma | |||||||||||||||
| Revenues: | ||||||||||||||||||
| Casino | $ | 23,504,388 | $ | 23,504,388 | ||||||||||||||
| Food and beverage | 5,009,925 | 5,009,925 | ||||||||||||||||
| Other | 720,310 | 720,310 | ||||||||||||||||
| Net revenue | 29,234,623 | 29,234,623 | ||||||||||||||||
| Expenses: | ||||||||||||||||||
| Casino | 11,342,078 | 11,342,078 | ||||||||||||||||
| Food and beverage | 4,448,208 | 4,448,208 | ||||||||||||||||
| Other | 113,820 | 113,820 | ||||||||||||||||
| Marketing and administrative | 8,868,945 | 8,868,945 | ||||||||||||||||
| Facility | 885,559 | 885,559 | ||||||||||||||||
| Corporate | 2,630,530 | $ | (850,788 | ) | B, C | 1,779,742 | ||||||||||||
| Depreciation and amortization | 244,657 | 244,657 | ||||||||||||||||
| Gain on sale of assets | (34,356 | ) | (9,054 | ) | B | (43,410 | ) | |||||||||||
| Total operating expenses | 28,499,441 | 27,639,599 | ||||||||||||||||
| Operating income | 735,182 | 1,595,024 | ||||||||||||||||
| Non-operating income (expenses): | ||||||||||||||||||
| Interest Income | 16,875 | 16,875 | ||||||||||||||||
| Interest expense and amortization of loan issue costs | (208,443 | ) | 208,443 | C | - | |||||||||||||
| Loss on extinguishment of debt | - | (77,076 | ) | B | (77,076 | ) | ||||||||||||
| Change in swap fair value | 9,020 | (9,020 | ) | C | - | |||||||||||||
| Income from continuing operations before income tax | 552,634 | 1,534,823 | ||||||||||||||||
| Income tax expense | (122,140 | ) | (179,672 | ) | D | (301,812 | ) | |||||||||||
| Income from continuing operations | 430,494 | 1,233,011 | ||||||||||||||||
| Income from discontinued operations, net of taxes | 56,752 | (56,752 | ) | A | - | |||||||||||||
| Net income | $ | 487,246 | $ | 1,233,011 | ||||||||||||||
| Per share information: | ||||||||||||||||||
| Income from continuing operations per common share - basic and diluted | $ | 0.03 | $ | 0.07 | ||||||||||||||
| Income from discontinued operations per common share - basic and diluted | $ | - | $ | - | ||||||||||||||
| Net income per common share - basic and diluted | $ | 0.03 | $ | 0.07 | ||||||||||||||
| Basic weighted average number of common shares outstanding | 16,848,802 | 16,848,802 | ||||||||||||||||
| Diluted weighted average number of common shares outstanding | 17,195,775 | 17,195,775 | ||||||||||||||||
| A Eliminate income from discontinued operations, net of tax | ||||||||||||||||||
| Income from discontinued operations, net of tax | $ | 56,752 | ||||||||||||||||
| Cash | $ | (56,752 | ) | |||||||||||||||
| B Record the sale: | ||||||||||||||||||
| Assets held for sale (excludes cash) | $ | (13,890,758 | ) | |||||||||||||||
| Liabilities held for sale | 925,544 | |||||||||||||||||
| Bank loan | 6,900,000 | |||||||||||||||||
| Broker fee | $ | 293,760 | ||||||||||||||||
| Other fees | 53,268 | |||||||||||||||||
| Cash to seller | 6,672,752 | |||||||||||||||||
| Restricted cash | 732,620 | |||||||||||||||||
| Cash | (1,678,132 | ) | ||||||||||||||||
| (Gain) / loss on sale | (9,054 | ) | ||||||||||||||||
| Swap asset | (143,692 | ) | ||||||||||||||||
| Receivable | 143,692 | |||||||||||||||||
| Loan costs | (77,076 | ) | ||||||||||||||||
| Loss on extinguishment of debt | 77,076 | |||||||||||||||||
| C Reverse expenses May 1 - Oct 31: | ||||||||||||||||||
| Interest expense | $ | (173,056 | ) | |||||||||||||||
| Amortization of loan costs | (27,684 | ) | ||||||||||||||||
| Swap interest | 12,217 | |||||||||||||||||
| Swap mark to market | 9,020 | |||||||||||||||||
| Non-usage loan fee | (19,920 | ) | ||||||||||||||||
| Selling related fees | (1,197,816 | ) | ||||||||||||||||
| Cash | $ | 1,397,239 | ||||||||||||||||
| D Record tax effect of adjustments | ||||||||||||||||||
| Tax expense | $ | 179,672 | ||||||||||||||||
| Deferred income taxes | $ | (179,672 | ) | |||||||||||||||
Nevada Gold & Casinos, Inc.
Pro Forma Statement of Operations
Year Ended April 30, 2018
| A | ||||||||||||||||||||||
Historical | Club Fortune | Adjustments | AJE | Pro forma | ||||||||||||||||||
| Revenues: | ||||||||||||||||||||||
| Casino | $ | 65,767,827 | $ | (12,227,929 | ) | $ | 53,539,898 | |||||||||||||||
| Food and beverage | 13,252,982 | (3,222,190 | ) | 10,030,792 | ||||||||||||||||||
| Other | 1,978,619 | (407,192 | ) | 1,571,427 | ||||||||||||||||||
| Gross revenue | 80,999,428 | (15,857,311 | ) | 65,142,117 | ||||||||||||||||||
| Less promotional allowances | (6,446,902 | ) | 2,299,310 | (4,147,592 | ) | |||||||||||||||||
| Net revenues | 74,552,526 | (13,558,001 | ) | 60,994,525 | ||||||||||||||||||
| Expenses: | ||||||||||||||||||||||
| Casino | 36,476,733 | (6,624,788 | ) | 29,851,945 | ||||||||||||||||||
| Food and beverage | 6,801,269 | (1,529,761 | ) | 5,271,508 | ||||||||||||||||||
| Other | 206,764 | (107,691 | ) | 99,073 | ||||||||||||||||||
| Marketing and administrative | 20,715,534 | (3,373,352 | ) | 17,342,182 | ||||||||||||||||||
| Facility | 2,008,090 | (206,396 | ) | 1,801,694 | ||||||||||||||||||
| Corporate | 3,009,735 | $ | (242,811 | ) | B, C | 2,766,924 | ||||||||||||||||
| Depreciation and amortization | 2,370,752 | (1,412,725 | ) | 958,027 | ||||||||||||||||||
| Loss (gain) on sale of assets | 7,863 | (9,054 | ) | B | (1,191 | ) | ||||||||||||||||
| Write downs and other charges | 358,807 | 358,807 | ||||||||||||||||||||
| Total operating expenses | 71,955,547 | (13,254,713 | ) | 58,448,969 | ||||||||||||||||||
| Operating income | 2,596,979 | (303,288 | ) | 2,545,556 | ||||||||||||||||||
| Non-operating income (expenses): | ||||||||||||||||||||||
| Interest Income | 46,241 | 46,241 | ||||||||||||||||||||
| Interest expense and Amortization of loan issue costs | (637,387 | ) | 637,387 | C | - | |||||||||||||||||
| Loss on extinguishment of debt | - | (104,760 | ) | B | (104,760 | ) | ||||||||||||||||
| Change in swap fair value | 171,018 | (171,018 | ) | C | - | |||||||||||||||||
| Income before income tax | 2,176,851 | 2,487,037 | ||||||||||||||||||||
| Income tax expense | (853,426 | ) | (183,663 | ) | D | (1,037,089 | ) | |||||||||||||||
| Net income | $ | 1,323,425 | $ | 1,449,948 | ||||||||||||||||||
| Per share information: | ||||||||||||||||||||||
| Net income per common share - basic and diluted | $ | 0.08 | $ | 0.08 | ||||||||||||||||||
| Basic weighted average number of common shares outstanding | 16,985,532 | 16,985,532 | ||||||||||||||||||||
| Diluted weighted average number of common shares outstanding | 17,350,402 | 17,350,402 | ||||||||||||||||||||
| A Eliminate Club Fortune | ||||||||||||||||||||||
| B Record the sale: | ||||||||||||||||||||||
| Assets held for sale (excludes cash) | $ | (13,890,758 | ) | |||||||||||||||||||
| Liabilities held for sale | 925,544 | |||||||||||||||||||||
| Bank loan | 6,900,000 | |||||||||||||||||||||
| Broker fee | $ | 293,760 | ||||||||||||||||||||
| Other fees | 53,268 | |||||||||||||||||||||
| Cash to seller | 6,672,752 | |||||||||||||||||||||
| Restricted cash | 732,620 | |||||||||||||||||||||
| Cash | (1,678,132 | ) | ||||||||||||||||||||
| (Gain) / loss on sale | (9,054 | ) | ||||||||||||||||||||
| Swap asset | (134,672 | ) | ||||||||||||||||||||
| Receivable | 134,672 | |||||||||||||||||||||
| Loan costs | (104,760 | ) | ||||||||||||||||||||
| Loss on extinguishment of debt | 104,760 | |||||||||||||||||||||
| C Reverse expenses of fiscal 2018: | ||||||||||||||||||||||
| Interest expense | $ | (432,918 | ) | |||||||||||||||||||
| Amortization of loan costs | (133,829 | ) | ||||||||||||||||||||
| Swap interest | (39,604 | ) | ||||||||||||||||||||
| Swap mark to mkt | 171,018 | |||||||||||||||||||||
| Non-usage loan fee | (31,036 | ) | ||||||||||||||||||||
| Selling related fees | (589,839 | ) | ||||||||||||||||||||
| Cash | $ | 1,056,208 | ||||||||||||||||||||
| D Record tax effect of adjustments | ||||||||||||||||||||||
| Tax expense | $ | 183,663 | ||||||||||||||||||||
| Deferred income taxes | $ | (183,663 | ) | |||||||||||||||||||
Nevada Gold & Casinos, Inc.
Pro Forma Statement of Operations
Year Ended April 30, 2017
| A | ||||||||||||||||||||||
| Historical | Club Fortune | Adjustments | AJE | Pro forma | ||||||||||||||||||
| Revenues: | ||||||||||||||||||||||
| Casino | $ | 65,838,576 | $ | (12,283,402 | ) | $ | 53,555,174 | |||||||||||||||
| Food and beverage | 13,439,326 | (3,368,559 | ) | 10,070,767 | ||||||||||||||||||
| Other | 2,140,113 | (431,208 | ) | 1,708,905 | ||||||||||||||||||
| Gross revenue | 81,418,015 | (16,083,169 | ) | 65,334,846 | ||||||||||||||||||
| Less promotional allowances | (6,959,066 | ) | 2,612,286 | (4,346,780 | ) | |||||||||||||||||
| Net revenues | 74,458,949 | (13,470,883 | ) | 60,988,066 | ||||||||||||||||||
| Expenses: | ||||||||||||||||||||||
| Casino | 36,488,019 | (6,645,654 | ) | 29,842,365 | ||||||||||||||||||
| Food and beverage | 6,194,698 | (1,175,606 | ) | 5,019,092 | ||||||||||||||||||
| Other | 208,090 | (123,496 | ) | 84,594 | ||||||||||||||||||
| Marketing and administrative | 20,752,103 | (3,781,238 | ) | 16,970,865 | ||||||||||||||||||
| Facility | 2,126,150 | (208,217 | ) | 1,917,933 | ||||||||||||||||||
| Corporate | 2,719,003 | $ | 347,028 | B, C | 3,066,031 | |||||||||||||||||
| Depreciation and amortization | 3,021,280 | (1,491,521 | ) | 1,529,759 | ||||||||||||||||||
| Loss (gain) on sale of assets | 77,183 | (58,796 | ) | (9,054 | ) | B | 9,333 | |||||||||||||||
| Write downs and other charges | 1,101,472 | 1,101,472 | ||||||||||||||||||||
| Total operating expenses | 72,687,998 | (13,484,528 | ) | 59,541,444 | ||||||||||||||||||
| Operating income | 1,770,951 | 13,645 | 1,446,622 | |||||||||||||||||||
| Non-operating income (expenses): | ||||||||||||||||||||||
| Interest income | 81,011 | 81,011 | ||||||||||||||||||||
| Interest expense and Amortization of loan issue | (747,554 | ) | 747,554 | C | - | |||||||||||||||||
| Loss on extinguishment of debt | - | (238,589 | ) | B | (238,589 | ) | ||||||||||||||||
| Change in swap fair value | 250,385 | (250,385 | ) | C | - | |||||||||||||||||
| Income before income tax | 1,354,793 | 1,289,044 | ||||||||||||||||||||
| Income tax expense | (790,829 | ) | (17,245 | ) | D | (808,074 | ) | |||||||||||||||
| Net income | $ | 563,964 | $ | 480,970 | ||||||||||||||||||
| Per share information: | ||||||||||||||||||||||
| Net income per common share - basic and diluted | $ | 0.03 | $ | 0.03 | ||||||||||||||||||
| Basic weighted average number of common shares outstanding | 17,688,229 | 17,688,229 | ||||||||||||||||||||
| Diluted weighted average number of common shares outstanding | 17,990,524 | 17,990,524 | ||||||||||||||||||||
| A Eliminate Club Fortune | ||||||||||||||||||||||
| B Record the sale: | ||||||||||||||||||||||
| Assets held for sale (excludes cash) | $ | (13,890,758 | ) | |||||||||||||||||||
| Liabilities held for sale | 925,544 | |||||||||||||||||||||
| Bank loan | 6,900,000 | |||||||||||||||||||||
| Broker fee | $ | 293,760 | ||||||||||||||||||||
| Other fees | 53,268 | |||||||||||||||||||||
| Cash to seller | 6,672,752 | |||||||||||||||||||||
| Restricted cash | 732,620 | |||||||||||||||||||||
| Cash | (1,678,132 | ) | ||||||||||||||||||||
| (Gain) / loss on sale | (9,054 | ) | ||||||||||||||||||||
| Swap asset | 36,346 | |||||||||||||||||||||
| Payable | (36,346 | ) | ||||||||||||||||||||
| Loan costs | (238,589 | ) | ||||||||||||||||||||
| Loss on extinguishment of debt | 238,589 | |||||||||||||||||||||
| C Reverse expenses of fiscal 2017: | ||||||||||||||||||||||
| Interest expense | $ | (510,612 | ) | |||||||||||||||||||
| Amort of loan costs | (95,041 | ) | ||||||||||||||||||||
| Swap interest | (121,861 | ) | ||||||||||||||||||||
| Swap mark to mkt | 250,385 | |||||||||||||||||||||
| Non-usage loan fee | (20,040 | ) | ||||||||||||||||||||
| Cash | $ | 497,169 | ||||||||||||||||||||
| D Record tax effect of adjustments | ||||||||||||||||||||||
| Tax expense | $ | 17,245 | ||||||||||||||||||||
| Deferred income taxes | $ | (17,245 | ) | |||||||||||||||||||
