Yesterday, Nevada Gold & Casinos, Inc. announced its financial performance for the second quarter of the current fiscal year. The company posted a slight increase in net revenue, totaling $16.4 million. By comparison, the gaming operator generated the amount of $16.3 million in the second quarter ended October 31, 2013.
Washington net revenues marked a $0.3-million rise. Net revenues from South Dakota, however, dropped by $0.3 million. Operating expenditure reached $15.6 million. This time last year, company’s expenses also amounted to $15.6 million. Nevada Gold & Casinos reported operating income of $0.8 million. By comparison, it generated operating income of $0.7 million in the second quarter of the previous fiscal year. As for net income, it totaled $0.4 million for the three-month period ended October 31, 2014. In other words, the gaming operator earned $0.03 per share. This time last year, net income reached the amount of $0.2 million, i.e. $0.01 per share.
During the second quarter of fiscal 2015, the company’s Washington business marked a significant improvement. South Dakota’s performance, on the other hand, was less impressive. Nevada Gold & Casinos reported overall EBITDA adding up to $1.4 million for the second quarter of this fiscal year. The same amount was generated this time last year. Furthermore, net interest expense marked a $0.2-million drop. This led to a growth in net income for the above-mentioned period.
The company’s debt totaled $1.8 million and it was paid by means of free operating cash flow and $0.7 million, collected via licensing fees. The gaming operator’s unrestricted fund balance was $7.8 million by the end of October, 2014. As for its entire outlasting debt, it totaled $10.2 million.
Michael P. Shaunnessy, chief executive of Nevada Gold & Casinos, stated that his company delivered “consistent operating results for the second quarter and continued to use free cash flow to reduce debt.” He pointed out that they managed to reduce the outlasting borrowing by the sum of $2.2 million.
Mr. Shaunnessy also shared that the improvement in financial performance will allow the management team to consider some transactions. He said that the gaming operator’s status of a public company makes it particularly attractive to certain sellers. It seems that Nevada Gold & Casinos has received six different offers over the past six months.
The company’s net revenues reached $32.3 million for the first two quarters of the current fiscal year. By comparison, it generated $32.0 million this time last year. Operating expenditure marked a $0.5-million decrease to $30.8 million. As for operating income, it reached $1.4 million compared to last year’s $0.8 million. Net income totaled $0.8 million ($0.05 per share) for the first two quarters of this fiscal year. Net income of $0.0 million was posted for the the same period of the previous fiscal year.
