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Net revenues of $15.8 million
Nevada Gold & Casinos, Inc. (NYSE:UWN) today announced financial results for the third quarter ended January 31, 2015.
For the third quarter of fiscal 2015, the company reported net revenues of $15.8 million compared to $14.8 million in the third quarter of fiscal 2014. Operating expenses were $15.0 million compared to $14.5 million in the prior year period. Operating income improved to $0.8 million compared to $0.3 million in the prior year period. Net income improved to $0.4 million compared to a net loss of $0.2 million in the prior year period, which included a pretax charge of $0.3 related to our debt refinancing.
Net revenues from Washington increased 8% to $14.4 million, while South Dakota net revenues declined 3% to $1.4 million. The increase in revenue from Washington was primarily driven by an increase in table game drop (amount wagered), coupled with a slight year over year improvement in the win percentage. Operating expenses in Washington increased approximately $0.4 million during the third quarter. EBITDA increased to $2.1 million compared to $1.5 million in the prior year period. The South Dakota route revenue decline was offset by operating expense reductions, leading to $10,000 in EBITDA for the quarter, compared to a $40,000 EBITDA loss in the prior year. Corporate expenses were unchanged from the prior period at $0.6 million. On a consolidated basis, adjusted EBITDA was $1.5 million compared to $0.9 million in the prior year period.
“During the third quarter, our improved Washington volumes, coupled with a normal win percentage drove significant year over year improvement,” said President and CEO Michael Shaunnessy. “We paid down an additional $1.4 million in debt, bringing our total debt repayment to $3.6 million for the first nine months of the fiscal year. This has reduced our bank debt to $8.8 million, which coupled with strong operating performance has reduced our leverage ratio below 2.0, further reducing our interest rate.”
For the nine month period of fiscal 2015, net revenues were $48.1 million compared to $46.8 million in fiscal year 2014. Operating expenses were unchanged from the prior period at $45.8 million. Operating income was $2.3 million compared to $1.0 million in fiscal 2014. Net income increased to $1.2 million compared to a net loss of $198,000 in the prior year, which included a pretax charge of $0.3 related to our debt refinancing.
