EXHIBIT 99.1
NEVADA GOLD & CASINOS ANNOUNCES
FOURTH QUARTER AND FISCAL 2003 RESULTS
Houston, TX - June 19, 2003 - Nevada Gold & Casinos, Inc. (AMEX: UWN) today
announced financial results for the fourth quarter and fiscal year ended March
31, 2003.
Highlights for the fourth quarter ended March 31, 2003 compared to the prior
year period included:
o Revenue increased 256% to $1.2 million
o Equity in earnings from Isle of Capri-Black Hawk (IC-BH) increased
5.0% to $2.2 million
o Net income increased 17.5% to $1.3 million, or $0.10 per
fully-diluted share
Highlights for the 2003 fiscal year compared to the 2002 fiscal year included:
o Revenue increased 359% to $4.1 million
o Equity in earnings from IC-BH increased 23.1% to $9.5 million
o Net income, excluding the extraordinary loss on the extinguishment
of debt last year, increased 41.9% to $5.8 million, or $0.46 per
fully-diluted share
H. Thomas Winn, Chairman, President & CEO of Nevada Gold & Casinos, Inc.
commented, "Our financial results continue to be driven by our core asset the
Isle of Capri Black Hawk. The property's results were up despite unusually harsh
weather conditions during the quarter. The acquisition of Colorado Central
Station Casino in Black Hawk and Colorado Grande Casino in Cripple Creek has put
us in a very strong competitive position."
For the fourth quarter of fiscal 2003, revenues increased 256% to $1,194,551
compared to $335,386 in the fourth quarter of fiscal 2002. The Company's equity
in earnings from Isle of Capri-Black Hawk (IC-BH), the company's joint venture
with Isle of Capri Casinos, rose 5.0% to $2,155,074, from $2,052,617 in the
prior year period. IC-BH's fourth quarter earnings before interest, taxes,
depreciation and amortization ("EBITDA"), increased 19.2%, to $10.2 million
compared to $8.6 million in the prior year period. A reconciliation of EBITDA to
net income is provided in the attached financial statements.
Net income for the fourth quarter was $1,287,980 compared to $1,095,673 in the
fourth quarter of fiscal 2002. Net income per diluted common share was $0.10,
compared to $0.10 in the fourth quarter of fiscal 2002. Diluted weighted average
common shares outstanding in the fourth quarter were 12.9 million compared to 12
million in the prior year period.
Fiscal 2003 revenues increased 358% to $4,078,495 compared to $889,433 in fiscal
2002. The Company's equity in earnings from IC-BH, rose 23.1% to $9,450,807,
from $7,676,420 compared to the prior year. IC-BH's earnings before interest,
taxes, depreciation and amortization ("EBITDA"), increased 6%, to $38.9 million,
compared
to $36.6 million in the prior year period.
Net income for fiscal 2003 was $5,808,787 compared to $2,171,476 in fiscal 2002.
Net income in fiscal 2002 included extraordinary losses of $1.9 million due to
the early extinguishment of debt. Net income per diluted common share was $0.46,
compared to $0.19 (or $0.35 excluding the extraordinary losses) in fiscal 2002.
Diluted weighted average common shares outstanding in the fourth quarter were 13
million compared to 12 million in the prior year.
"We expect the Dry Creek Casino, LLC to make a partial first quarter
contribution as we are now receiving income from the project effective June 1st.
We also expect to be able to assist River Rock with obtaining financing for
additional property improvements as well as refinancing all or a significant
portion of the current outstanding debt this fiscal year. We remain excited
about the potential of the River Rock Casino and look forward to its future
contributions to our financial results," concluded Mr. Winn.
Nevada Gold & Casinos, Inc. of Houston, Texas 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, Colorado about 35 miles west of Denver) and Colorado
Grande Casino, located in Cripple Creek, Colorado. 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 70 miles north of San Francisco in the California wine
country). Also, UWN has 51% ownership of Route 66 Casinos, LLC, which is
assisting the Pueblo of Laguna in the development of a Route 66-themed casino 11
miles west of Albuquerque, New Mexico -- planned for opening in 2003.
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)
Year Ended March 31,
-------------------------------
2003 2002
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REVENUES
Royalty income $ 50,000 $ 40,000
Lease income 3,500 5,600
Gaming lease income 493,615 -
Gain on land sales 589,916 14,575
Interest income 2,892,638 739,772
Other income 48,826 89,486
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TOTAL REVENUES 4,078,495 889,433
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EXPENSES
General and administrative 1,002,790 662,710
Interest expense 2,201,685 912,231
Salaries 920,175 722,753
Legal and professional fees 682,391 326,706
Write-off of capitalized
development cost 238,437 42,455
Other 110,997 80,084
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TOTAL EXPENSES 5,156,475 2,746,939
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EQUITY IN EARNINGS OF ISLE OF
CAPRI BLACK HAWK 9,450,807 7,676,420
EQUITY IN EARNINGS OF RCI - -
MINORITY INTEREST (137,175) (36,051)
------------- ------------
Net income before federal income
tax (provision) benefit and
extraordinary item 8,235,652 5,782,863
Federal income tax (provision) benefit (2,426,865) (1,690,411)
------------- ------------
Net income before extraordinary item 5,808,787 4,092,452
Extraordinary loss on extinguishment
of debt, net of applicable income
tax benefit of $989,594 in 2002 - (1,920,976)
------------- ------------
Net income $ 5,808,787 $ 2,171,476
============= ============
PER SHARE INFORMATION
Net income $ 5,808,787 $ 2,171,476
Net income available to
common shareholders $ 5,808,787 $ 2,171,476
============= ============
Net income per common share - basic
Income before extraordinary item $ 0.53 $ 0.39
Extraordinary loss, net - (0.18)
------------ ------------
Net income $ 0.53 $ 0.21
============= ============
Net income per common share - diluted
Income before extraordinary item $ 0.46 $ 0.35
Extraordinary loss, net - (0.16)
------------ ------------
Net income $ 0.46 $ 0.19
============= ============
Basic weighted average number of
common shares outstanding 10,969,287 10,481,129
============= ============
Diluted weighted average number
of common shares outstanding 12,953,797 12,022,225
============= ============
NEVADA GOLD & CASINOS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended March 31,
--------------------------------------
2003 2002
-------------- -------------
REVENUES
Royalty income $ 13,500 $ 12,600
Gaming lease income 145,516 -
Interest income 1,022,416 297,819
Other income 13,120 24,967
-------------- -------------
TOTAL REVENUES 1,194,552 335,386
-------------- -------------
EXPENSES
General and administrative 265,363 151,137
Interest expense 768,917 234,934
Salaries 229,648 153,027
Legal and professional fees 152,491 101,234
Other 16,329 21,517
-------------- -------------
TOTAL EXPENSES 1,432,748 704,305
-------------- -------------
EQUITY IN EARNINGS OF ISLE OF
CAPRI BLACK HAWK 2,155,074 2,052,617
EQUITY IN EARNINGS OF RCI - -
MINORITY INTEREST (4,803) (23,587)
-------------- -------------
Net income before federal income
tax (provision) benefit and
and extraordinary item 1,912,075 1,660,111
Federal income tax (provision)
benefit (624,095) (564,438)
-------------- -------------
Net income $ 1,287,980 $ 1,095,673
============== =============
PER SHARE INFORMATION
Net income $ 1,287,980 $ 1,095,673
Net income available to
common $ 1,287,980 $ 1,095,673
shareholders
============== =============
Net income per common share - basic
Net income $ 0.12 $ 0.10
============= ============
Net income per common share - diluted
Net income $ 0.10 $ 0.10
============= ============
Basic weighted average number of
common shares outstanding 10,969,287 10,481,129
============= ============
Diluted weighted average number
of common shares outstanding 12,882,450 12,022,225
============= ============
NEVADA GOLD & CASINOS, INC.
RECONCILIATION OF IC-BH'S NET INCOME TO EBITDA
(UNAUDITED)
APRIL 27, APRIL 28,
2003 2002
----------------- ------------------
RECONCILE EBITDA YTD TO NET INCOME YTD (IN THOUSANDS) (IN THOUSANDS)
- --------------------------------------
EBITDA 38,856 36,644
Management fees 5,197 4,805
Depreciation and amortization 5,855 4,266
Interest expense (5,629) (9,892)
Interest income 14 171
Income tax provision 210 -
Extraordinary loss - (6,769)(1)
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Net income $ 21,979 $ 11,083
============= ==============
RECONCILE EBITDA 4QTD TO NET INCOME 4QTD
- ----------------------------------------
EBITDA 10,240 8,589
Management fees 1,693 1,189
Depreciation and amortization 1,905 1,160
Interest expense (1,417) (1,474)
Interest income 1 5
Income tax provision 210 -
Extraordinary loss - -
------------- --------------
Net income $ 5,016 $ 4,771
============= ==============
(1) related to refinancing of IC-BH's $75 million loan