EXHIBIT 99.1
NEVADA GOLD & CASINOS ANNOUNCES
FIRST QUARTER RESULTS
Houston, TX - August 9, 2004 - 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:
o Revenue increased 12% to $1.8 million from the prior year
o Equity in earnings from Isle of Capri-Black Hawk was $2.4 million
o Net income increased 3% to $1.7 million, or $0.12 per fully-diluted share
o 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)
<Table>
<Caption>
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
============ ============
</Table>
ISLE OF CAPRI CASINOS, INC.
COMPARATIVE FINANCIAL HIGHLIGHTS BY CASINO PROPERTY
(IN THOUSANDS)
THREE MONTHS ENDED
------------------------------------------------------------------------------
JULY 25, 2004 JULY 27, 2003
------------------------------------- --------------------------------------
NET ADJUSTED ADJUSTED NET ADJUSTED ADJUSTED
REVENUE EBITDA EBITDA REVENUES EBITDA EBITDA
(1) (2) MARGIN %(2) (1) (2) MARGIN %(2)
------- -------- ----------- -------- -------- -----------
Black Hawk(3) $26,297 $10,186 38.7% $28,080 $10,649 37.9%
Colorado Central Station(3)(4) 8,343 521 6.2% 12,019 2,560 21.3%
Colorado Grande(3)(4) 2,152 513 23.8% 2,037 514 25.2%
------- ------- ---- ------- ------- ----
TOTAL $36,792 $11,220 30.5% $42,136 $13,723 32.6%
</Table>
ISLE OF CAPRI CASINOS, INC.
RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED EBITDA BY CASINO PROPERTY
(IN THOUSANDS)
THREE MONTHS ENDED JULY 25, 2004
--------------------------------------------------------
ADJUSTED DEPRECIATION OPERATING OPERATING INCOME
EBITDA & INCOME (LOSS) MARGIN %
(2) AMORTIZATION (LOSS) (5)
-------- ------------ --------- ----------------
Black Hawk(3) $10,186 $ 1,716 $ 8,470 32.2%
Colorado Central Station(3)(4) 521 567 (46) (0.6)%
Colorado Grande(3)(4) 513 101 412 19.1%
------- ------- ------- ----
TOTAL $11,220 $ 2,384 $ 8,836 24.0%
THREE MONTHS ENDED JULY 27, 2003
--------------------------------------------------------
ADJUSTED DEPRECIATION OPERATING OPERATING INCOME
EBITDA & INCOME (LOSS) MARGIN %
(2) AMORTIZATION (LOSS) (5)
-------- ------------ --------- ----------------
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%
</Table>
(1) Net revenues are presented net of complimentaries, slot points expense and
cash coupon redemptions.
(2) 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.
(3) 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 27, 2004 July 25, 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
(4) The Isle of Capri-Black Hawk, LLC acquired these properties on April 22,
2003.
(5) Operating income margin was calculated by dividing operating income by net
revenue.
NEVADA GOLD & CASINOS, INC.
CONSOLIDATED BALANCE SHEETS
<Table>
<Caption>
JUNE 3 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
Route 66 Casinos, L.L.C 17,124,315 15,708,324
Sunrise Land and Mineral Corporation 2,279,603 1,852,828
Investment in development projects: 371,750 371,750
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
============ ============
</Table>
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