NEVADA GOLD & CASINOS ANNOUNCES SECOND QUARTER RESULTS
HOUSTON, November 13, 2003 -- Nevada Gold & Casinos, Inc. (Amex: UWN) today
announced financial results for the second quarter ended September 30, 2003.
Highlights for the second quarter ended September 30, 2003, compared to the
prior year period included:
-- Revenue increased 171% to $3.7 million
-- Equity in earnings from Isle of Capri-Black Hawk, LLC (IC-BH) increased
13.0% to $2.7 million
-- Net income increased 8% to $2.1 million, or $0.16 per fully-diluted
share
H. Thomas Winn, Chairman, President & CEO of Nevada Gold & Casinos, Inc.
commented, "The second quarter marks the first full quarter of credit
enhancement fees from the River Rock Casino. More importantly, the recently
completed River Rock financing lays the groundwork for substantial growth as
River Rock now has the necessary capital to significantly expand that property's
parking."
For the second quarter of fiscal 2004, revenues increased 171% to $3.7 million
compared to $1.3 million in the second quarter of fiscal 2003. 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 13.0% to $2.7 million from $2.4 million
in the prior year period. Isle of Capri Black Hawk's second quarter earnings
before interest, taxes, depreciation and amortization ("EBITDA"), increased
7.2%, to $9.9 million compared to $9.2 million in the prior year period.
Colorado Central Station generated EBITDA of $2.7 million and Colorado Grande
generated EBITDA of $687,000. A reconciliation of EBITDA to net income is
provided in the attached financial statements.
Net income for the second quarter increased 8% to $2.1 million compared to $1.9
million in the second quarter of fiscal 2003. Net income per diluted common
share was $0.16, equivalent to the prior year period.
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 75 miles north of San Francisco in the California wine
country). Also, UWN has 51% ownership of Route 66 Casinos, LLC, which assisted
the Pueblo of Laguna in the development of the Route 66 Casino 11 miles west of
Albuquerque, New Mexico (opened September 2003). The company was selected and is
in final negotiations to develop and operate a casino for the Muscogee (Creek)
Nation on their property in Tulsa, Oklahoma.
NEVADA GOLD & CASINOS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
<Table>
<Caption>
Three Months Ended
September 30,
--------------------------------
2003 2002
------------ ------------
REVENUES
Gaming Assets Participations:
Dry Creek Casino, L.L.C. $ 1,408,750 $ --
Route 66 Casinos, L.L.C. 971,645 145,516
Other income:
Royalty income 15,134 12,500
Lease income -- 1,400
Gain on land sale -- 561,649
Interest income 1,245,651 620,885
Miscellaneous income 19,330 7,005
------------ ------------
TOTAL REVENUES 3,660,510 1,348,955
------------ ------------
EXPENSES
General and administrative 287,516 159,663
Interest expense 1,001,179 518,012
Salaries 286,551 219,985
Legal and professional fees 528,291 156,135
Write-off of capitalized development cost 23,403 178,437
Other 46,678 45,520
Route 66 Casinos, L.L.C. expense 594,586 94,586
------------ ------------
TOTAL EXPENSES 2,768,204 1,372,338
------------ ------------
EQUITY IN EARNINGS OF ISLE OF CAPRI-BLACK HAWK 2,657,101 2,351,897
MINORITY INTEREST
Dry Creek Casino, L.L.C. (215,632) (21,874)
Route 66 Casinos, L.L.C. (184,759) (24,955)
------------ ------------
Net income before federal income tax provision 3,149,016 2,281,685
Federal income tax provision 1,070,666 354,039
------------ ------------
NET INCOME $ 2,078,350 $ 1,927,646
============ ============
PER SHARE INFORMATION
Net income available to
common
shareholders $ 2,078,350 $ 1,927,646
============ ============
Net income per common share - basic $ 0.18 $ 0.18
============ ============
Net income per common share - diluted $ 0.16 $ 0.16
============ ============
Basic weighted average number of
common shares outstanding 11,251,185 10,898,558
============ ============
Fully diluted weighted average number of
common shares outstanding 13,363,005 12,415,735
============ ============
</Table>
ISLE OF CAPRI CASINOS, INC.
COMPARATIVE FINANCIAL HIGHLIGHTS BY CASINO PROPERTY
(UNAUDITED)
(IN THOUSANDS)
<Table>
<Caption>
--------------------------------------------------------------------------
THREE MONTHS ENDED
--------------------------------------------------------------------------
OCTOBER 26, OCTOBER 27,
2003 2002
--------------------------------------------------------------------------
ADJUSTED ADJUSTED
NET ADJUSTED EBITDA NET ADJUSTED EBITDA
REVENUES EBITDA MARGIN % REVENUES EBITDA MARGIN %
--------------------------------------------------------------------------
BLACK HAWK (1) 27,473 9,900 36.0% 25,919 9,239 35.6%
COLORADO CENTRAL STATION (2) 11,641 2,684 23.1% -- -- --
COLORADO GRANDE (3) 2,281 687 30.1% -- -- --
------- ------- ---- ------- ------- ----
TOTAL $41,395 $13,271 32.1% $25,919 $ 9,239 35.6%
======= ======= ==== ======= ======= ====
</Table>
ISLE OF CAPRI CASINOS, INC.
RECONCILIATION OF EBITDA TO NET INCOME (LOSS) BY CASINO PROPERTY
(IN THOUSANDS)
(UNAUDITED)
THREE MONTHS ENDED OCTOBER 26, 2003
<Table>
<Caption>
-------------------------------------------------------------------
NET
ADJUSTED DEPRECIATION & INTEREST NET
EBITDA AMORTIZATION EXPENSE OTHER(4) INCOME(LOSS)
-------------------------------------------------------------------
BLACK HAWK (1) 9,900 1,709 1,252 477 5,696
COLORADO CENTRAL STATION (2) 2,684 332 1,368 698 286
COLORADO GRANDE (3) 687 71 184 235 197
------- ------- ------- ------- -------
TOTAL $13,271 $ 2,112 $ 2,804 $ 1,410 $ 6,179
======= ======= ======= ======= =======
</Table>
1. As management fees are eliminated in consolidation, the Isle-Black Hawk's
Adjusted EBITDA does not include management fees of $1.2 million for the
three months ended October 26, 2003. If these charges were included, the
Isle-Black Hawk's Adjusted EBITDA would have been $8.7 million and $8.1
million for the three months ended October 26, 2003, and October 27, 2002.
Respectively.
2. The Isle of Capri Casinos, Inc. acquired these properties on April 22, 2003.
As management fees are eliminated in consolidation, the Colorado Central
Station-Black Hawk's Adjusted EBITDA does not include management fees of $0.4
million for the three months ended October 26, 2003. If this charge was
included, the Colorado Central Station-Black Hawk's Adjusted EBITDA would
have been $2.3 million for the three months ended October 26, 2003.
3. As management fees are eliminated in consolidation, the Colorado
Grande-Cripple Creek's Adjusted EBITDA does not include management fees of
$0.1 million for the three months needed October 26, 2003. If this charge was
included, the Colorado Grande-Cripple Creek's Adjusted EBITDA would have been
$0.6 million for the three months ended October 26, 2003.
4. Other adjustments to reconcile Adjusted EBITDA to net income represent
management fees. Additionally, for the Isle-Black Hawk, the Colorado Central
Station-Black Hawk, and the Colorado Grande-Cripple Creek, other adjustments
also include preopening expense, minority interest and income taxes.
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.