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Net revenues of $16.4 million
Nevada Gold & Casinos, Inc. (NYSE:UWN) today announced financial results for the second quarter ended October 31, 2014.
For the second quarter of fiscal 2015, the company reported net revenues of $16.4 million compared to $16.3 million in the second quarter of fiscal 2014. Net revenues from Washington increased $0.3 million, while South Dakota net revenues declined $0.3 million. Operating expenses were $15.6 million compared to $15.6 million in the prior-year period. Operating income was $0.8 million compared to $0.7 million in the prior year period. Net income was $0.4 million, or $0.03 per share, compared to $0.2 million, or $0.01 per share in the prior-year period.
During the second quarter, the improved performance in Washington was offset by the continued softness in South Dakota. On a consolidated basis, adjusted EBITDA was $1.4 million, essentially equal to the prior year period. Net interest expense decreased $0.2 million, driving the increase in net income for the period.
The Company paid down $1.8 million in debt in the quarter, using free operating cash flow and $0.7 million collected on the licensing fee advances made to the location owners in South Dakota. The Company’s unrestricted cash balance at October 31, 2014 was $7.8 million, and total outstanding borrowing was $10.2 million.
CEO Michael P. Shaunnessy commented, “We delivered consistent operating results for the second quarter and continued to use free cash flow to reduce debt. So far this fiscal year, we have reduced outstanding debt by $2.2 million, and have $1.4 million available on our revolver.”
Mr. Shaunnessy commented further, “As our financial results continue to improve, our management team is able to dedicate more time to evaluating potential transactions within the gaming sector. Our position as a public company is very attractive to some sellers and over the past 6 months, we have had significant discussions concerning 6 separate potential opportunities. Two of these are still ongoing.”
For the six month period, net revenues were $32.3 million compared to $32.0 million in fiscal year 2014. Operating expenses were $30.8 million compared to $31.3 million in the prior year. Operating income was $1.4 million compared to $0.8 million in fiscal 2014. Net income was $0.8 million, or $0.05 per share compared to $0.0 million in the prior year.
