Nevada Gold & Casinos reported USD 19.5 M in net revenues

Nevada Gold & Casinos today announced financial results for the second quarter of the fiscal year 2018, ended October 31, 2017. This quarter, the Company reported net revenues of USD 19.5 M compared to USD 18.5 M in the second quarter of fiscal 2017.

Operating expenses were USD 18.5 M compared to USD 18.2 M in the prior year period. Operating income increased to USD 1.0 M compared to USD 0.3 M, and net income was USD 0.6 M, or USD 0.04 per share, compared to net income of US 0.2 M, or USD 0.01 per share, in the prior year period.

Net revenues from the Washington state gaming operations increased to USD 13.9 M, from USD 13.2 M in the prior year period, and adjusted EBITDA increased to USD 1.7 M compared to USD 1.5 M in the prior year. Although general business volumes were stable, a higher table games hold percentage, although in the normal range, was responsible for the majority of the revenue gain. Operating cost increases were primarily attributable to the increased minimum wage.

Club Fortune revenues increased to USD 3.4 M from USD 3.1 M in the prior year period, and adjusted EBITDA increased to USD 0.4 M compared to USD 0.1 M in the prior year.

South Dakota slot route operations net revenue was relatively steady at USD 2.2 M in the current and prior-year period and adjusted EBITDA was USD 0.2 M for both periods, as well.

On a consolidated basis, adjusted EBITDA was USD 1.7 M, compared to USD 1.2 M in the prior-year period. The Company paid down USD 1.7 M in debt during the quarter. The unrestricted cash balance at October 31, 2017 was USD 9.6 M, and total outstanding borrowing was USD 10.6 M.

During the quarter the Company acquired 32,657 shares for $76,963 including commissions, an average cost of USD 2.32. Approximately USD 1.7 M remains available under the share repurchase authorization.

"Our Washington operations benefited from a higher table games hold and despite the challenge of a higher minimum wage, adjusted EBITDA increased, while Club Fortune recovered nicely from prior year construction disruptions," stated Michael P. Shaunnessy, President and CEO. "We continue to pay down debt and repurchase shares with our free cash flow."

For the six month period, net revenues were USD 38.0 M compared to USD 36.7 M in fiscal year 2017. Operating expenses were USD 36.6 M compared to USD 36.4 M in the prior year. Operating income was USD 1.3 M compared to USD 0.4 M in fiscal 2017. Net income was USD 0.8 M, or USD 0.04 per share, compared to USD 0.1 M, or USD 0.00 per share, in the prior year.